♪ good monday morning. welcome to "squawk alley." joining us this morning is jon brod, confide co-founder and president. john, cay kayla tausche are out. first up, a lot to talk about in tech namely the largest tech deal in history dell agreeing to buy emc in a deal worth $67 billion. michael dell will remain ceo. he talked about their future

plans this morning on "squawk box". >> we are focused on a significant reduction in the debt, which is going to come from certainly the cash flow of the combined companies, which is quite powerful. some cost synergies but importantly the revenue synergies here are about three times larger than the cost synergies. >> delevering, the process is going to be key as there's essentially a new entrant highly e leveraged, jon. a lot of people wonder today if the space can handle that. >> i think it's interesting from a strategic point. you have macro trend allowed start-ups to come in and compete with the status quo. on one hand you have companies like hewlett-packard and e-bay, this is total opposite end, consolidation, leverage. i think that's an interesting

strategic question and history will sort of tell who's on the right side here. >> conference call they argued they've taken share likely from hp i'm guessing, but say they've taken share for 11 straight quarters. can they do this? is there enough room in this? we've been watching people price to zero in this space for a long time. >> i think they can. one of the things i'm concerned about from a structure standpoint one of the knocks on emc is they're a federation approach. if you look at the proposed structure, you've still got vm acting independent, pivotal acting as is emc remains in massachusetts. additional federation under the dell umbrella or will they be able to unify and take significant market share. >> i wonder if anybody else is going to be next. if the old guard tech continues this idea of consolidation instead of splitting, to your point, who's next? does it spark another industry wave of consolidation? do we need to look at companies like hp and cisco to scoop up internet storage. i don't know if there are a lot

of options. >> you've got a lot of these kind of up and comers even aws is no longer a start-up but only been around for a handful of years. it's fascinating. i'm excited about it. >> yeah. even the ensconced players though have had difficulty. that's the challenge, isn't it? >> yeah. >> to see if they can duke it out among some other players obviously been compromised. next up this morning according to recode twitter planning company wide layoffs this week. it's not clear just how much of the staff will be let go, but it's likely to effect most if not all departments. and it comes a week after jack dorsey of course was named permanent ceo. at this time twitter has declined comment on that story, but the stock's down over 5%. there was a sense maybe they'd gotten a little bit fat, as cramer said this morning. >> they went from about 2,000 employees to 4,200 over a few years. that's a lot to absorb. if you look at revenue per employee and they pail in comparison, maybe not surprise google to facebook, obviously to apple who are obviously more

entrenched companies, but i do think it points to the fact there is some fat there that can be trimmed. >> there's a lot that's happened since jack dorsey officially became ceo. that was last monday and then appeared in new york talking at an ad industry conference and now the company going through layoffs. obviously wall street is optimistic. stock rose sharply last week. are you optimistic he can turn it around? >> i am. there was a great article action about re/code about how jack has blossomed over the past two years and some of the changes since he was last at twitter. i think he's coming in strong. he came in launch moments. he's talking about the 140 characters is no longer sack ro sang. we had something at aol, start with strategy, structure then cost structure. this obviously is a lot about cost structure. i would like to see more on the strategy and how does this play into an overall vision for twitter, facebook, medium, et cetera. >> the board took pains to argue

that he basically been ceo, there wasn't much interim about it. so the optimists would argue he's gotten the equivalent of a running start. would you agree with that? >> totally agree. i think the next quarterly earnings are going to be really telling. he's had months and months now of true -- you pointed out ceo not really interim. and has he been able to meaningfully move the numbers. >> i wonder what the metric will be there. you think it's still the monthly average user growth and the fact they can't seem to grow that number? especially in contrast to saying adding employees without adding actual members to the site. >> that's the number. it's all product related. once that grows revenue follows, that's the leading indicator. >> we'll see. i mean, they've been trying to work with wall street navigate them to various metrics over time. we haven't been sure which one to focus. that's the most obvious one. but maybe the story will be engagement or tweets per time line. something like that. >> hard to be in a category with facebook where you continue to see that user growth accelerate

past a billion people. >> finally, check out apple today. the stock having a pretty nice morning still on track for its worst year since 2008 currently up a little over 2% year-to-date. apple news is only available to users in the u.s., but should work for people in traveling overseas. however those trying to use it in china have been getting error messages the past few days. maybe the bigger story is this note from morgan stanley raising their iphone unit expectations from 3% to 7%. they say demand in china, jon, has been surprisingly strong. in fact, the whole s cycle is stronger than we expected it to be. >> unbelievable. considering it's not a 7, it's an s. and to your point they've been doing terrifically well in china. $13 billion in sales in q-3. which is why it's not surprising to me that they would disable the news app in china. they want to be sensitive there particularly for a part of their business that's really still unbaited. it's only in the u.s., it's only in the uk and australia.

i don't think they want to ruffle feathers too much. >> a lot of these analysts have been super bullish including jane munster who we talked to last week. we've seen apple rally and since has lagged. whether expectations are running too high for numbers in a few weeks or this idea of large numbers which apple cannot get away from. i'm curious, is that just a wall street phenomenon those kind of worries? >> i think so. obviously there's the backdrop of china and the markets in general. but i'm with you on the large numbers issue. >> we are going to talk to an analyst i believe later this hour. one of the afrrguments they mak is all these relatively small investments in music and television and home kit. >> and watch. >> and health and watch. are trapping users in the ecosystem, right? so rather than migrate or defect to a samsung we know their troubles in phones, they're upgrading. you see a problem with that argument?

>> no, i think that's exactly right. the icloud ecosystem is getting larger and larger. makes switching costs incredibly high and expensive. i think it's a great strategy. >> but it's incremental. had this announcement apple pay is going to expand into starbucks and kfc and chilchili and whether those revenue streams actually start to matter and help grow the top line for apple. that's what appears to be the source of skepticism on wall street, jon. >> you're still wearing yours. >> i love mine. i'm a huge fan. i think we're in any one and once we get into the millions and millions of apps, i think that's going to be really meaningful. >> what did you make op elon musk tweets last week? he said i didn't mean to bash them. it's a beautiful design only until we get to version three is it really going to be commercially significant. >> i think that's right. >> really? >> yeah, we saw that with iphone sales as well. look back they had about a million sales in the first

iterati iteration. it takes time. i love what they're doing. getting to the female market. >> but it's not a mass product. >> no, that's right. the iphone is the bread and butter. we know that. but i think the point about this really creating an ecosystem that will create even more sales for the iphone is important. >> jon, always good to see you. thanks for coming by. jon brod joining us today. now to check on the broader markets. the dow's up 18 points. we're seeing little action in trading today. the big action's actually in the m&a market with the announcement of the biggest technology deal ever. the s&p 500 is flattish. coming off of a strong week best for 2015 for s&p 500. we are watching shares of e lie lily falling after the company discontinued development of late-stage cholesterol drug. expecting to take a $90 million pretax charge to account for that drug's discontinuation. and that is one of the laggards. it's down about 8%, little more than 8% in today's session, carl. >> when we come back, a major announcement moving facebook further into the world of

e-commerce. we'll tell you what to know. and when it comes to investing in early stage companies he is one of the best. the head of angel list invested early in both uber and twitter now getting major money from china. he's with us live. and tesla now a power company, at least for one real estate developer in california. they're going to join us to break down a new state-of-the-art energy program when "squawk alley" continues in a moment. (vo) what does the world run on? it runs on optimism.

it's what sparks ideas. moves the world forward. invest with those who see the world as unstoppable. who have the curiosity to look beyond the expected and the conviction to be in it for the long term. oppenheimerfunds believes that's the right way to invest... ...in this big, bold, beautiful world.

facebook is making a big push to lure more retailers to advertise on its platform. julia boorstin joins us now with the latest. julia, new moves now for facebook to move further into e-commerce. >> that's right. facebook is unveiling its vision today for how commerce will fit into the social network. the goal is to make it easier for brands to reach consumers and drive sales on mobile devices. most notably facebook is testing a shop section, another tab that would sit alongside the news feed pages and groups gathering products listed in the shop sections of brands facebook pages allowing people to make purchases without leaving facebook. now, it will start with products that brands themselves are selling, but the company's also exploring taking those products people are trying to sell to each other like on e-bay this is based on the growing popularity of for sale groups on facebook. now, facebook's also testing an ad unit called canvas which allows users to quickly browse products within facebook to avoid retailers' slow loading

mobile sites. then they'll only click out to those sites when it's time to actually make a purchase. facebook's already working to improve its retailers results. it's been testing a buy now button in news feed ads. a carousel format for ads which facebook says cuts the cost per conversion by 30% to 50%. it's also testing what it calls dynamic product ads which target consumers with specific products across the various devices that they're using facebook on. facebook's announcement comes on the heels of youtube, twitter and pinterest all launching ways to make it easier for companies to sell and consumers to buy right on their platforms. now, some of facebook's tests like the shock tab are unlikely to launch widely until next year. but there's no question that this holiday shopping season will be the most social yet. guys, back over to you. >> that's where i wanted to go, julia. i was wondering what the linkage is between social and e-commerce. i know they're all trying it. twitter's interested in it as

well. but has there really been any success with consumers going onto these social websites and actually shopping on them? >> well, the idea here is that it's really actually about advertising more than it is about selling stuff. but for them it's that they want to make their ads so effective that you can quickly remove the friction between seeing an ad and making a purchase. they want you to be able to see an ad. and if you like a product instantly buy it. so for them it's really about driving more advertising revenue even more than it is about generating a cut from sales. >> makes sense. all right, julia boorstin, thanks very much, live in los angeles with the latest on facebook's moves to attract retail advertisers. up next, it might be the largest ever single investment by a chinese private equity firm into a u.s. fund. it's going to a top angel investor who invested early in companies like uber and twitter. he'll join us later this hour to talk about it. "squawk alley" back in a moment.

working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivative pricing model, honey? for all the confidence you need. td ameritrade. you got this.

southwest airlines says its systems are operating normally today after hundreds of flights were delayed by a technical glitch. a computer problem prevented the airline from checking in people who planned to print out boarding passes at the airport. southwest has not yet determined what caused the problem but adds there's no indication that hacking is involved. airlines have had a pretty good morning after the transports had an amazing week last week. best week for the transports in a year even as that index is becoming more heavily represented by airlines. >> and even as the price of oil goes up, which usually hurts art lines. they had a strong week. some industry specific news. southwest, look, these things are becoming more common, they hurt the airline stock and then get fixed. only having issues myself recently they're getting very good with social media. at least they're responding instantly when you have delays and problems and sometimes offering rewards. which i have to say for an industry that gets constantly beaten up by customer service problems, it's an improvement. >> yeah. it's like a giant -- maybe not a help desk but certainly a

consumer response desk. >> they're embracing it. they're embracing technology. meantime it's been a relatively flat day so far here on the u.s. exchanges. we'll see how europe's going to close in about ten minutes. simon hobbs. >> carl, outside the excitement of inbev raising itself, i'm afraid european markets have sunk through the session. not only broken the six-day streak, germany outperforming i'll comment on that in a moment. the situation isn't helped by one of the most important members of the ecb gave an interview to our colleagues in london which has had a great deal of play where he says it's too early to judge whether we need an extension or reinforcement of qe. we're ready to act but we can't make that judgment yet. throughout the session you've seen basic resources fall. glen cois now selling copper mines in australia and chile due to requests. but a sector as a whole has fallen through the session. i mentioned that germany is outperformed. that's because the big utilities

in germany and others have done well today on a government audit, a stress test that basically says the $43 billion that's been put aside to decommission nuclear facilities in germany because of fukushima in japan is sufficient. so those stocks have done well today. another sector that's really moving is within the aircraft maintenance field. on financial times report that following a complaint from willie walsh who runs british airways or iag, the commission is investigating in particular rolls-royce for the contracts to maintain aircraft. and you see other plays within that sector are lower. finally, i want to mention to you today in london the pro europeans launched their fight back against the idea believe it or not that the united kingdom could leave the european union, the former ceo of marks and spencers, you see him there, suggesting people should not turn their back on the world in exiting the eu. there's a referendum to be held as you'll be aware by the end of

2017. in the meantime i think a lot of people in brussels are quite bemused. back to you. >> simon, thank you very much. simon hobbs. when we come back, he led early investments in both uber and twitter and now getting a major investment from china. a top angel investor is with us. plus, story of the morning dell buying emc in the largest tech deal in history. our di vang di vaavid faber wil break down that deal in just a moment. [ male announcer ] some come here to build something smarter. ♪ some come here to build something stronger. others come to build something faster... something safer... something greener. something the whole world can share. people come to boeing to do many different things. but it's always about the very thing we do best. ♪

hello everyone. i'm sue herera. here is your cnbc news update at this hour. russia announcing it has foiled a terrorist plot detaining several men it says were trained in syria by isis militants. its counterterrorism agency raided an apartment on sunday and found unidentified explosives. amateur video emerging showing a security balloon in afghanistan falling to the ground after being hit by nato aircraft. a british military helicopter crashed in that vicinity killing five crew members and injuring five others. nbc news unable to verify that aircraft was actually involved in the incident with that balloon. israeli police say a palestinian woman slightly wounded an israeli officer in a stabbing attack in jerusalem. the latest in a series of clashs that have plagued the city in recent weeks. the attacker was shot by the wounded officer. her condition is not known.

and 70 years after the end of world war ii some former u.s. prisoners of war revisiting japan and observing a memorial service for fallen soldiers. the service was held in yokohama. the pows are in japan on a week-long friendship tour aimed at reconciliation. that is the cnbc news update this hour. back to "squawk alley" now. all right. sue herera, thank you very much. it is being called the largest technology deal in history. dell agreeing to buy data storage company emc in a deal worth $67 billion. our david faber has been reporting all weekend. he's here at post nine with more. seriously, this is creating a behemoth when it comes to enterprise storage technology. >> it is. and what will be a privately controlled although potentially publicly held privately controlled dell. i know, if you can follow me there. but as sarah said an enormous deal. we spent a lot of time reporting on potential terms last week and they are as much as we thought they'd be. it is worth at least dell would

say about 33.13 per emc square. and then this tracking stock we told you about on friday that will track the public equity of vm wear, that's kind of a first. often when we've seen these tracking stocks they track a unit at a company. for example, think john mall loan has used frequently. a stock that tracks performance of qvc. but not here. this will track already exists publicly. 81% of which is owned by emc which will then be owned by dell, but then dell will then issue a tracker to track 53% of the overall float or the overall shares in the company. the hope is that they will trade very close to each other in value although some would say that the tracker being issued by dell will actually trade at a 10% or so discount. time will tell who's right on that front of course. will create a lot more liquidity in vm shares who would like to

own them and of course you have a board of directors so you are kind of more comfortable perhaps in a corporate governance stance. emc control all of vmware, that's a question we put to michael dell earlier on "squawk box". >> we also built an incredible server business. and that's an important part of this combination. remember, what's going on with virtualization, certainly where vmware has a unbelievably strong position, the way to containerization vmware also well positioned for, you're seeing this sweep across the entire data center. the anchor tenant in all of that is the compute engine. >> vmware as you might expect a very important component of this overall deal which will remove emc from the public markets when it's done. there will be an antitrust review that takes at least six months although there are those who believe it will get done in that short of timeframe.

chinese antitrust may potentially be an issue, but dell does have an awful lot of employees where employees a lot of people in china, that will help them with the so-called review. we shall see. vm for its part people might have noticed trading down sharply. it is the effective way to hedge it if you're an investor. you can hedge what you're going to get from dell against current vmware and that's one of the key reasons why that stock is performing so poorly though emc for its part is up ever so slightly of course news of this potential transaction having leaked out last week and we provided a number of details along the way. perhaps the most interesting, sara, is simply the huge borrowing that has to take place here. $45 billion will be raised from banks and from the capital markets and both investment grade and high yield. >> helps that interest rate. >> dell and silver lake putting in another $3.5 billion in equity rolling ownership of dell

into the transaction. but that is an amazing number. amazing that the capital markets are there for it. the banks have already committed. there is a $6 billion term fee should dell be unable to get that money together. highly unlikely that will be the case. they fully expect they will be able to finance it. there's the go shop provision as well though we don't expect to see any other potential bidders. >> what's also interesting here is just the strategic rationale behind this. the fact dell is in this business that is in secular decline, that is personal computer markets, and what it is trying to transform itself into. what it has transformed itself into in the last two years since being private and then going after emc. and then bhast the goal? is it to compete with hewlett-packard? >> i think to a certain extent that is the key. we did hear from hewlett-packard. i don't know if we have that statement, but they took the opportunity to go after dell as you might have expected. they've done this before talking about the potential for them to be focused on other things than running their core business.

there it is. real opportunity for h.p., two of our largest competitors are attempting a highly distracting multi-year merger just as we're announcing two new focus -- >> but it is. they're getting smaller while this company is getting bigger. totally opposite strategy. >> it's true. and emc and hewlett-packard had spoken about a potential deal little over a year ago. emc has been on the road to try to sell itself for quite some time. this is the deal it wound up. with certainly a novel structure to say the least. >> we'll talk to vmware tomorrow on "squawk alley." thanks, david. meantime republican front runner donald trump speaking in manchester, new hampshire today. eamon javers has been watching that for us. >> donald trump is speaking before this no labels convention in new hampshire. as you say he's moved on to the question and answer portion of his remarks here, but this is a bipartisan group really focused on problem solving and getting rid of all the partisan infight thag we see in washington.

so what we see here is different audience for donald trump and a bit of a different speech for trump. he began by citing successes in development talking about his ability to work with new york city, city councils and working with public unions, all of those elements he says of his ability to do deals and get a problem solved. that an appeal to this group which is expressly about just exactly that. also this morning donald trump teasing the debate organizers of the democratic party debate, which is happening tomorrow night saying their ratings are likely to be a lot lower than the republican ratings were when he was in it saying they might want to have donald trump in that debate as well. of course as we know, carl, that's not going to happen. >> we can't wait for the debate. of course rapidly approaching october 28th. eamon javers in washington. thank you. as the co-founder and ceo of angel one of the most respected investors in silicon valley. he just raised $400 million from a private equity firm in china. where does he plan to invest that money? he joins our josh lipton this morning from one market.

hey, josh. >> hey, carl. so, naval, thank you for joining us. as carl mentioned csc group handing you $400 million. talk to us about what that will mean for your platform. >> angel list funds lps and private equity firms to follow best angels in silicon valley, new york and boston as they write their own checks. we call that syndicates. so csc group's money in addition to about half a dozen l.p.s we already have on the platform will back. so gives them committed reliable institutional capital very similar to what small vcs would have and scale the platform further as we deploy and capital behind hundreds of these blue chip angel investors when they write their own checks. >> let's talk, naval, about where you're going to employ that capital. you've invested or advised some 150 start-ups in your career. but you're also in that group that says you look across silicon valley and you do see a

lot of froth you say investors have to be price sensitive. if there is a lot of froth involved, has that changed your investment thesis? are you looking for different kinds of start-ups in this market? >> valuations are up and there's money going to the so-called u unicorns. we believe early stage has been far lower than later stage. the closer you get to being a public company, the more people can see the metrics and more they bid up the prices. you do have to be price sensitive and we have great data on that. planning to point this capital slowly and perhaps saving for downturn scenario and being very price sensitive with early stage start-ups. secondly, i think it's always good advice, but it takes ten years to build a great company. so you want to look for entrepreneur who is are in it for the very, very long haul. they have a lot of conviction. they don't spend a lot of money. and they're dedicated to seeing business through almost no matter what the circumstances. it's common to think that people get lucky this story of, you know, you find product market just works out.

but most great entrepreneur haves to spend years walking through the desert before they can find something that works. >> is your advice, naval, right now in a frothy environment what are you telling those start-up founders coming to you in guidance? how are you walking them through this environment? >> the beauty is today it takes very, very few people to do anything in the tech business. you have incredible embedded leverage through the technology. you open source software, platforms, mobile phones, so it takes a very, very small number of people to do anything great. if you look at us at angellist we're the world's largest seed fund. we also run the world's largest start-up recruiting marketplace with over 10,000 start-ups and hundreds of thousands of candidates. we have 30 people. so you can do it with a lot of leverage. you can help a lot of people. you can create a big ecosystem around yourself. doesn't take a lot of humans to do it. we have robot armies working for us in data centers, servers, that's the way technology businesses should be built. >> let me ask you too, naval, one of your colleagues sounding

the alarm on high flying start-ups where gurle was skeptical. he mentioned ship where you're an adviser. do we not understand some of the business models of these start-ups? we talk about the unit economics. are they actually stronger than maybe we assume? >> they could be. i mean, if you look at ship backed by -- hopefully someone has done the detail. but i agree with bill that microeconomics, but macro economics don't matter so much. one position you don't want to be in right now is you don't want to be a company burning tens of millions a year and hoping to raise about another $200 million around the corner. after the recent market correction my sense late-stage investing is slowing down as well. >> we talked about how you were an early investor in twitter, uber, but you also passed up some opportunities. didn't invest in square or pinterest when you had the chance. what did you learn, naval, about those missed opportunities?

>> first of all, egos are very expensive. usually when i look back there was some egotistical reason i didn't invest and better to be aware of that now. but i think this angel investing market is different than later stage and even venture investing. more about omission than commission. so if you're to make a small investment, the worst case lose $25, $50 or $100,000 but you might make $500,000. you can actually afford to place for bets. that said you have to figure out how to evaluate these companies, help these companies and that's where platforms come in like angel list. if i see a great team going after a big idea and i trust them to stick it out for the long haul usually more inclined to write the check than not. >> if there is this great deal of froth in silicon valley, how do you see it playing out? is it a soft landing? >> i think it's fairly soft in the amount of capital deployed is far, far lower than in 1999, that was far more capital

deployed in much shakier companies. secondsly, these companies are small and don't need much capital leaving aside the unicorns for a second average start-up they've got three to five people, they're like cockroaches. they can keep a low burn rate. they can survive. when push comes to shove these companies really can survive and they're very, very resilient. these are young people with low burn rates and high ambitions. i think it's a very different sort of environment than it was last time around. >> all right. naval, thank you so much for your time. we appreciate it. >> thanks for having me. >> carl, back to you. >> i'll pick it up. interesting conversation. thank you. josh lipton out in san fran. up next, shares of apple as you can see there's a flat line today, still on track for their worst year since 2008. our next guest is sticking with optimistic call expecting a strong holiday season into 2016. he'll make his case next when "squawk alley" comes right back.

i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it helps pick up some of what medicare doesn't pay. and could save you in out-of-pocket medical costs.

to me, relationships matter. i've been with my doctor for 12 years. now i know i'll be able to stick with him. [ male announcer ] with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. so don't wait. call now and request this free decision guide to help you better understand medicare... and which aarp medicare supplement plan might be best for you. there's a wide range to choose from. we love to travel - and there's so much more to see. so we found a plan that can travel with us. anywhere in the country. [ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans

help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now - and down the road. i have a lifetime of experience. so i know how important that is. halftime show with stox at a seven-week high. we debate growth versus value. and the five-star fund manager jumps into emerging markets for the first time in 18 months. he'll tell us why. and our all-star analyst week kicks off today with the street's top name in oil. is the crude collapse finally over? sara, all that and much more in about 20. >> that would be a big prediction. looking forward to it, scott wapner. let's move to nasdaq. index flat but there are movers, bertha. >> there are some very big

movers here today. a lot of things flat ahead of a big earnings week, but today it's a little bit of a halo effect from the fallout from lily's drug trial not being successful. lily doing -- trying to develop a drug that would help boost good cholesterol and lower the bad cholesterol. they abandoned that drug. and take a look what's soaring today as a result. regeron, one of the makers of the so-called pcsk9. these are the injectable cholesterol drugs approved this year that a lot of folks are very excited about from people who don't respond very well to statins. so the lily drug might have been a competitor to this treatment. take a look at the others that's helping to boost biotech somewhat although not a strong day overall for biotechs. but some of the other players,

amgen also getting a boost on the news they won't be seeing that competition from lily's drug in that space. meantime, on a day like today when you've been hearing about all those problems with southwest airlines and its airline glitch, computer glitch, the airlines today are all very strong. they've been doing pretty well on the day. and interestingly emc although it's up fractionally not creating much of a halo effect when it comes to storage players. they're among the weakest players here on the nasdaq 100 today. back to you. >> bertha, thanks very much. we're going to zero in on one of those movers right now. shares of apple remaining relatively flat today, but continuing to struggle for the year putting the company on track actually for its worst performance since 2008. should investors be worried about apple's stock performance? joining us now to discuss is an analyst at jnp securities buy rating on apple $160. you're reiterating bullishness. make the case and explain why apple has been such a laggard this year.

>> well, we believe that apple is heading into another banner holiday season. and we think investors should get into this stock ahead of that. you know, out of the chute very strong $13 million in sales for the iphone 6s once again. another bar raised in terms of unparalleled smartphone performance. we think there's plenty of run rate out there for apple to continue taking share. it's up beyond 44% share in the u.s. and trending higher. and we think you can get there globally which means the story could still double from here in terms of smartphone sales. and that is fundamentally why jnp is recommending apple right now. >> alex, can we close the debate on whether or not december goes negative on iphones? >> carl, we will be able to do that until we actually put up the sales numbers. >> yeah. >> but i think they're off to a strong start. and there's nothing in the market that suggests that the competition is closing. android is putting out some capable phones, but the number two player in the smartphone

market after apple, samsung, is in big trouble struggling and that leaves apple to do things really uncontested in the market. we're bullish on apple and its suppliers. names like sky ware, all of these can benefit from apple as well as just increase performance in smartphones globally. >> some of the specifics in terms of the numbers and the concerns going into the quarter average selling prices i've read about. and just tough comparisons with last year in the 6 release. >> it's been tough comparisons for apple every year because they just keep taking market share. and if you look back historically the s series in these phones tend to be the stronger ones because they add new features. and they've ironed out some of the kinks. in this case the stronger chassis, now the force touch. a lot of things happen with the s rev of these phones. and again we're still only one year, a little bit one-year plus into selling into china, the largest fastest growing opportunity in the world right

now. and we're adding other things around smartphone appeal in terms of the internet of things. you now have companies like irobot with the roomba, really friendly smartphone devices in the market all run better on apple devices. so we're bullish. >> do you think this iphone cycle's being driven by some of your rivals on the sell side say it's china, obviously there's a collection of various tools like music and things that are helping the ecosystem. others say it's the 12-month upgrade plans that they rolled out. is it one of those, all of those and to what degree? >> yeah, carl, i think it's all of those. i mean, a lot of things going right for apple right now. uncontested in the market by any other brand right now, new 12-month cycle, big opportunity in china. the u.s. they're now up beyond 44% market share. if you want to look at how far that might be able to go, you can look at japan where it's 60%

market share right now. so a lot of opportunities on every front. and we think apple is doing a great job of executing to those opportunities. >> all right. sticking with the bull case. thank you very much for joining us. alex guana from jmp securities a price target of $160 on apple stock. when we come back this morning, from electric car maker to full-on power company, we're going to go behind the latest move in tesla in just a moment.

really needed to transition the world to sustainable energy, is this actually possible? is this something within is wit ability of humanity to do or insurmountable, super difficult, impossible thing? >> it's not. so with 160 power packs you can transition the united states. >> that was tesla cofounder and ceo elon musk this past may. today one california based real estate company announced it plans to create a fleet of hybrid electric buildings. the irvine company is teaming up with advanced microgrid solutions so install the battery systems at up to 24 of its office buildings. joining us now from one market in san francisco, the ceo and cofounder of advanced microgrid solution, susan kennedy. good morning. good to have you with us. >> great to be here. thanks.

>> this is what has let some on the wall street sell side to post very ambitious price targets for tesla down the road. how did you come to this plan and how does it work? >> well, tesla is really moving the needle when it comes to stationary storage that can be used in buildings. and the irvine company is doing something pretty revolutionary. they're the first ones to take an entire fleet of building, equip them with energy storage so they can control their energy consumption. by doing that they're going to cut their costs and provide a critical grid support for the electric utility. >> these are buildings that might otherwise have been used for what? >> well, these are regular commercial office buildings. they're taking 250,000 square foot office buildings and campuses and they're putting in mega watts of energy storage that are small, sleek, and scaleable. and turning the entire building into a reserve capacity for the utility. so they're shaving their peak

consumption by 25%. they're safing as much as 10% on electricity cost for the entire fleet. and the utilities, southern cal edison is, going to be able to call on ten mega watts of that capacity when they need energy for the grid without having to build a peaker plant. >> i mean, i don't know a lot about utilities and the way power generation works. but it sounds like what you're trying to do is pretty ambitious and change the way the grid works. are you trying to disrupt the electric utility business? >> you know, the electric grid was designed around the whole concept that you cannot store energy. and energy storage is about to change the electric grid in the same way energy storage changed the entire communications industry. and so this is a big deal and irvine company is the first one to really have the foresight to think about how do they take their entire fleet of energy, i mean, of buildings in this area and turn them into energy

storage units. >> if i'm a real estate developer, how would this compare to the return of capital i might get if i just rented it out? >> right now the elect strict grid is incredibly inefficient. we just throw electrons and consume them and we have layer upon layer of reserve requirement because you don't know exactly how much you're going to need to use on a day when the weather is really hot or the grid is in trouble in certain areas. so having energy storage as part of a building, turns that building into like a hybrid electric car where it can go from grid to battery, grid to battery, so it controls its own energy consumption in response to conditions on the grid. so it's actually a fairly simple notion. but irvine company is smart enough to invest at scale and to really do this in a big way. >> it seems like you're obviously a fan of what tesla is doing on the battery side, partnering with them, buying from them.

how widely adopted do you see their battery becoming? >> well, we were lucky enough to be able to look at pretty much every battery manufacturer on the planet when we got this enormous contract from southern california edison. there's no question that tesla is the market leader on this. they designed their batteries so their they're dense, scaleable, modular. we can put them on almost any setting and our buildings will take up about maybe five parking spaces and it will power an entire 250,000 square foot office build for a portion of their peak. so there really making a play to be the market leader on both koo cost, efficiency, and, you know, sleekness. i mean, these are sleek looking batteries. >> can't wait to see some of the zoning codes on some of these building '. susan -- >> it actually doesn't change. >> i was going to say, maybe it doesn't change. we're out of time. please come back. it's going to get interesting here. susan kennedy is the ceo of

advanced microgrid solutions. thank you. with the dow here up about 47 points. let's get over to seema modi at the market flash desk. >> energy which has been one of the winning sectors so far this month is selling off today. the s&p energy sector down 1 1/2% as oil prices move lower. some big that names drag on the index, chesapeake energy, southwestern, transocean, and consol down 6 to 7% in today's trade. >> seema, thank you. when we come back, a strong open for steve jobs at the box office. ♪ today, we're seeing new technologies make healthcare more personal with patient-centric, digital innovations; from self-monitoring devices that can interpret personal data and enable targeted care, to cloud platforms that invite providers to collaborate with the patients they serve. that's why over 90% of the top 25 global pharmaceutical companies

are turning to cognizant. our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way clinical research sites collaborate with pharmaceutical companies, and enhancing patient engagement with innovative platforms and solutions. our population's growing healthcare needs present growing opportunities for our clients: to advance the future of medicine with digital, and improve the quality of lives. ♪

(vo) wit runs on optimism.un on? it's what sparks ideas. moves the world forward. invest with those who see the world as unstoppable. who have the curiosity to look beyond the expected and the conviction to be in it for the long term. oppenheimerfunds believes that's the right way to invest...

...in this big, bold, beautiful world. universal long anticipated steve jobs opening in limited this weekend. we have a look at how it did and what to expect. hey, julia. >> hey, carl. steve jobs opened in limited release this weekend from universal ahead of nationwide release in october 23rd. it brought in $130,000 plus per screen. that's the best average so far this year. almost double the previous record holder which made $67,000 per screen last month. there's been a huge amount of buzz about the danny boyle

directed steve jobs written and based on the biography released of course by universal. but the studio opted for gradual or platform release to avoid going head to head with fox' klt the marshatiamartian." it does bode well for the big opening as does the conversation and controversy about how accurate the movie is or is not. one other advantage of delaying the wide release is that it means that the feel should be more top of mind for the academy and golden globe voters when they're putting in their votes for the nominations for films. back over to you guys. >> all right. julia b julia, but very much. reviews for the market are bet getting better by the minute. earning season is going to kick off tomorrow with jpmorgan. later in the week, citi, goldman, general electric. the list of all-time high is getting fatter with starbucks

being added today. >> consumer stapings on that list. as well, the give debd payers, that's the trade today. utilities in the lead. treasury yields are moving lower. we've got a little mixed action here when it comes to stocks and bonds. >> see what happens went bonds markets reopen tomorrow. that does it for us though. thanks for stopping by. wets get over to headquarters and scott wapner and "the half." >> all right, guys, thanks. welcome to "the halftime show." steve wise is here along with is jim, pete najarian and rob, one of baron's top 100 financial advisers. we're happy to him alongside yet again. our game plan today looks like this. all-star analysts. the best of the best joining us all week. the crude crushes ending. buy them as in buying the emerging markets. that's which one well-known portfolio nanlg manager is doing. here's here live today to