janet wrelen before the house making additional comments on interest rates. she was urged by alcal congressman brad sherman not to hike rates and was asked about the potential affect on housing. yellen said she expected a gradual rise in rates as if that increase in rates should not hurt housing along it happened in a gradual way. she said the fwrad wal recovery in the economy as well. if you look very quickly at what's happening with the two-we're, you can see a spike on yellen's comments earlier today where she said december is a live meeting, and all of these comments kind of justify or potentially justify a rate hike potentially in december. carl. >> yeah, steve. that two-year high since 2011. we'll keep our eye on that. thank you. >> good morning. it is just past 8:00 a.m. tesla headquarters in paulto although wroe. just past 11:00 a.m. on wall street, and squawk alley is live.

♪ welcome to our once wresh john and kayla are with us. on the day we are watching the markets and talking about media names today. time warner, for instance, falling sharply as the company now warning on the call just moments ago it did beat earnings today. results were helped by strong numbers at warner brothers and hbo. shares of cvs in the green. tom line results under pressure, though, after lower ad sales and licensing fees. then 21st century fox down after revenue misses expectations.

a lack of major movie releases weighing on the studio business along with pressure from a strong dollar, but time warner, for the moment, wraen way, is going to be the lead as they back the full year 15. cable television is losing ground now to streaming, and these things are forcing a lot of big strategic moves. i'm impressed about the execution so far, and i totally get why investors are cautious. there is still a lot of uncertainty left in front of these guys, and i think you can have a lot more confidence than you might have had two or three

years ago about their ability to navigate it, but it's not done, and i think we're going to have choppy quarters for at least the next few years while they get things rebalanced. even when they do, there's a big issue, and that is simply that if they each want to charge subscription fees, that unbundled cord cut version of cable, i think, is going to take some time to execute. they're going to have to -- you know, you can imagine people having, what, ten, 20 different subscription services. that doesn't seem like a super likely thing. comcast had strong results. rev any at 21st century fox is up, and cbs said that cord cutting is overblown. i'm just wondering how we should be looking at this and positioning in the stocks. are there going to be winners? are there going to be losers,

and who are they? >> so, kayla, i think that is exactly the right question. if i am les or any of these executives, i'm actually breathing a sigh of relief because cord cutting has come later than the early advocates constitutinged it would come, and it's come more modestly, but when you step back and look at the numbers, it is incredibly clear that the afternoon video content being consumed on the internet is staggering. huge amounts are locked up in places like youtube, but in terms of minutes of use, the internet has really cut into television. that hasn't prevented the cable companies from successfully raising prices on the various content channels. at the same time it does create a huge problem. i think as i said, i think most of these guys have plans for making the transition. what i'm uncertain about is whether they'll be able to all coexist. i expect at least a couple of them are going to suffer very significant market share losses simply because they don't have

the easy form of distribution. it will be interesting to see whether apple, google, or someone else steps forward with a bundling program that allows a reassembling of cable kind of packages on the internet. >> as soon as we were talking about cord cutting and the end of the bundle, people start rebundling. i wonder, roger, with hbo, all access, they're getting more aggressive sequentially in their bets in that area, but who do you think is playing it the smartest? >> right now i really like what time warner has done. for someone who travels a lot, as i do, you know, and really likes watching john oliver or some other program, you know, silicon valley, the tv show, you know, the -- watching on an ipad is a great experience. being able to binge watch. timewarner got there before the other traditional networks, and

i think their execution has been outstanding. you know, it's all about the content, though. i think at the end of the day this challenge of how do you get consumers to, you know -- who historically have gotten their video for free on the internet to start paying lots of subscription fees, you know, i think they'll pay for a few. whether they'll pay for, you know, $150 a month worth i think that's probably not going to happen. >> yeah. subscription fatigue, as ford likes to call it. >> don't you think? >> i totally agree. totally agree. let's move on to tesla. shares rallying after the company ships more vehicles than expected. tesla raises their current quarter guidance on deliveries. despite the gains tesla posted the biggest loss in the last ten quarters. people obviously, roger, overlooking this cash -- this negative free cash he flow. >> well, let's look at the context. right? i mean, the two big stories besides tesla in automotive over the last 12 months have both

been scandals. the vw diesel engine scandal is, i think, you know -- it's so horrible. you can understand people being really revolted by, it and that followed immediately on the heels of the general motors scandal relative to the problem with cars killing people. you look at these issues. all the sudden you look at tesla, which quite clearly is operating, you know, as the automotive equivalent of apple, right? trying to do something where, you know, they may have a profit motive behind it, but they're leerl trying to get those profits by doing what customers want and need. >> they moved to a mid price --

i suspect the stock will work from this value, but that's still two years away. that's going to have a lot of volatility, i think, between here and there. >> nobody is in this stock right now for the profits, right? you are seeing it as. >> look, they have 9.5% growth in the first half of last year to the second half. the question could be to hit this 11.4% growth by delivering 12,000 cars in the back half of the we're, and they're on track to actually exceed that. a very strong year that they've

got shaping up. >> have you ever met a tesla customer who wasn't happy with the car? i never have. of course, out here, you know, there are teslas on every corner, right? there are a lot of people to talk to, and the customer satisfaction is simply off the charts. it's been a long time. i think people are cheering for tesla. i think you're absolutely right, john. they're looking out a couple of years and going this is probably going to work. i mean, why would you bet against these guys? they've done a great job so far, and, you know, there is still huge challenges. >> you're in the car business. >> you're going to have to run a real car business. fine. i would never bet against these people. the really hard part is getting to where they are now. it is truly miraculous what they've done to this point, and i really tip my hat to them.

>> interesting. finally, roger, facebook today, relatively muted action. getting ready to report earnings tonight after the bell. analysts watching growth in video and desk top and mobile advertising. there's some headlines crossing the table about -- reportedly selling a sizable chunk of its stake as part of a 10b51. >> my impression is that the market has been anticipating a very strong number. i had think it has good reason to do so. >> the one in video, i think, is likely to be even better. >> an alternative for television advertising that allows you to assemble huge audiences on demand any time of the year.

weather the expectation is a little high, who knows, but i don't think it's going to matter. i think the fundamentals of the company are locked in for the foreseeable future, and i say this as somebody who is a shareholder, who has been involved for a long time, and, you know, i don't like everything they're doing there, but i don't think earnings are going to be the problem. >> you wonder if there's going to be pressure from analysts, do they have to then lay out a plan to monotize that and break out instagram revenue, which they haven't yet? this is a company that's getting mature and there is a chance that maybe it needs to put up some additional numbers too? >> there will be pressure, kayla. i don't think that's the pressure. the pressure is facebook has been showing we're-over-year growth rate declines every quarter since q1 2014. they said to expect the same thing to continue this quarter, but analysts, you know, consensus-wise don't believe them. the instagram ads opened up.

that happened at the end of the quarter. that won't show up here. they don't have china like apple did to help with wrout perform. the question is can they perform there? what did they say about the holiday quarter? that could help them if instagram has a lot of -- that is a good quarter, after all. >> john, the one thing i would add to that, which i think really matters, is don't forget how big video is in the advertising world in this country. i mean, it's humungous. when you add it on top of a $4 billion quarterly revenue rate, it's still going to be material. i'm not suggesting that i have any visibility into their numbers or whether they'll outperform this quarter or not, but i think that, you know, at $4 billion a quarter they're entitled to have slower rates of growth. yet, i think there will be quarters when they break out simply because of the scale of video advertising. then when the time comes and you start to see the numbers from instagram and you start to see

what'sapp come in, those will be incremental as well, which means the company should sustain above average -- in fact, way above average growth, even from what is now a substantial scale. >> absolutely. i'm looking at six months of 31% versus s&p. >> those guys are wrong on the first amendment, and you were right. >> i felt you would mention it somehow. thanks to you. see you later. >> bye-bye. >> meanwhile, the markets are struggling to notch a third day of gains. all major averages are down. ism services index for october did show a little bit above side. adp private sector jobs were in line, but, of course, all eyes on janet yellen who is testifying on capitol hill and really seeming ready to raise rates at that december meeting. at least that's how the market is interpreting it. meanwhile, the dow is down 60 points. the s&p down nine.

the nasdaq is down about 19 points. meanwhile, shares of etsy after reporting a loss of 9%. that stock down more than 7%. zillow also falling even though revenue topped estimates. the stock down about 6% largely because its wrout look for the fourth quarter came in weaker than expected. the light at the end of the tunnel was supposed to be when that trulia deal closed. we're not there yet. >> when we come back today, a really rough day for groupon. down about 30% on a disappointing fourth quarter outlook. ceo will join us live. plus, exclusive data looking at the changing face of television viewership and what it means for both broadcasters and advertisers. we'll get that. fed chair janet yellen still speaking on capitol hill. we'll get more highlights of what she's saying about december and a live meeting when "squawk on the street" continues. dow down 32.

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>> janet yellen testified on capitol hill. the house financial services committee. steve liesman has been watching that on hq. steve. s. >> hey, thanks very much. she's taking a question about some of the documents. you may want to listen in in just a bit. it's a hearing about financial regulation and banking regulation, but all the news, carl, as you said, is about monetary policy. she was asked a direct question

about raising rates and whether december was a possibility and let's listen to what she said. >> what the company has been expecting is that the economy will continue to grow to generate further improvements in the labor market and defer to our 2% target over the medium term. our at the same time indicates it would be a live possibility but importantly that we've made no decision about it. the note promises she said when rates go up, it will be gradual. she was asked about the housing market, and yellen said if rates rise gradually, as she suspects, there would not be a big negative impact on housing. on the big banks, she said they were healthier where problems

remain. she fwaukd increasing their capital levels and also talked about issues of compliance and say some of the issues -- problems at the big banks were undermining confidence. carl. >> all right. i'll take it. thanks, steve. up next, shares of groupon deeply discounted this morning. down about 30%. on track for the worst day the company has seen ever in the market. can they turn things around? the new ceo of groupon will join us next on "squawk alley."

>> shares of groupon, down nearly 29% following the company's earnings results and some unexpected leadership changes, but can a new ceo fix the once popular coupon site? let's toss it over to our own julia borstein who brings us a very special guest. julia. >> thanks, kayla. we're joined by rich williams,

groupon's new ceo, who is named just where heed. rich, thanks for talking to us today. >> thanks for having me, julia. >> so, rich, your stock is down nearly 30% since you reported your earnings yesterday. including dramatically lower guidance for 2016. how do you address this massive stock sell-off? >> well, i mean, obviously this is not the fairy tale beginning first day on the job as ceo, but, you know, we gave the markets a lot to digest. we give our investors, our employees a lot to digest yesterday. some big strategic changes we're setting out and big commitments financially to those changes. we feel that there's a right change to make to get the company on a stronger growth path, and that's a growth story that's going to be told over the long-term. that's what me and my role as ceo and the management team now the team at groupon is ultimately focused on. building a xwraet company for the long-term. tapping into that local market opportunity that's just so big and we're the clear leader

today. >> but, rich, there are a lot of questions about the viability of groupon's long-term business. i mean, your user growth is flat since last quarter. you're planning to invest a significant amount in marketing, which is raising a lot of questions from investors. what is your plan? do you have a plan to turn this company around? >> we do have a plan, and there's a couple of pieces there. one is we're taking a very simple approach. we're doubling down on what's working, and we're willing to walk away from what's not. what's clearly working in the business is our customers and we are now at a point where we have los to 50 million customers worldwide. we now have seen that we have, you know, long-term line of sight into very profitable customer relationships over time. the reality is we just haven't been investing enough in those relationships. we haven't been investing enough to bring more of those relationships to the platform, and that's going to be a key piece to get us on to that more exciting trajectory. we have shown over the last couple of years we can grow this

business. you know, groupon, which i voind in 2011 was just a couple of billion dollar company. we're almost twice that size now. we made a lot of progress there. we've shown we can grow the business on lower levels to spend. it's just not exciting growth, and i think that's what the market wants. that's what we want internally from the company, and we think that's more reflective of the overall opportunity. the strategy there to invest more in what's working on a customer side is a key piece of that, and it also means we will continue to develop a better product and experience for customers in the groupon mralt form, and that means doing more to drive technology and advancements in mobile. the act of use aing groupon is as easy as not using one, and we'll continue to drive improvements and supply. >> for the customer who is visiting the groupon product, it looks much like it did two, three years ago. looks like a match-up of power cords and teeth whiteerning services. i'm just wondering what ground work you are laying on the product side that's going to pay off in 2017? that's what investors want to

know. >> we're investing a ton. a couple of quarters ago we started to talk about some of the things that we're doing in the product on more of a hyper local level, to accelerate that product experience, to add new layers and new features into the product, and you can see those things. you know, those things are coming on-line and coming on-line fast. you know, we have things like our health and beauty booking and reservations product. we have our feud and drink takedown and delivery product coming off of an acquisition of a company called order up just about a quarter ago. moving aggressively in that space to add takedown and delivery in a stronger food and drink offering. i think you are seeing the product change quite a bit. are you seeing that the selection and supply, the quality of the inventory, the quantity of the inventory on our platform go up consistently. i would only expect that to continue, and i would only expect that to have, you know, a strong impact on customer behavior over time. >> rich, my math shows and correct me if i'm wrong here, that we are already spending more on marketing versus a year

ago. you are spending 8.6% of revenue up from 7.7% a year ago. amazon is also spending more on marketing, but just 6.8% of revenue. given that there's so much bigger than you and given that on-line retailers are having such a hard time competing with amazon certainly on price, but also on loyalty, how can you afford to spend that much more as a percentage of revenue on marketing versus amazon? >> one, i think you have to look at amazon when it was a 7-year-old company and how much you were spending on marketing then. it's the important thing to think about with groupon. yes, we're a scaled e-commerce player, but we're still a 7-year-old company, and we're still early in our development. we're still in the single digits in terms of market penetration on a customer side and merchant side for that matter. the other side is i think you have to look at the broader e-commerce portfolio. if you look at that broader pier set -- i think most people are probably spending anywhere from 10% to 12% of revenues on

marketing. especially when they're in an early stage like us. i think it's important to keep that in mind, but more importantly, the marketing math just works for us, and we shared a lot of that detail, a lot of customer core level detail that many companies wouldn't have shown, and that math is simple. the math is that we have a great return on our investment, on our customers. that investment is now proven to be stable over time, and it's one of those things that we just can't ignore. while i appreciate amazon's more mature market position and they're spending 6% or 7%, our customers in the quality of the customers we can generate dictate we can spend more and spend more profitably. the last thing i say on that front is we have a completely different product than amazon. you know, we do operate in the good space in the shopping space. that's a piece of the groupon experience. we're still pioneering in local.

>> that business indicates there is simply not a market for the kinds of deals that groupon is focused on. how do you address that concern? >> they're exiting a product we -- we saw in 2012 that that business was going to have significant headwinds, that it ultimately wasn't going to be the business that we believed would scale, which is why we started to pivot to becoming more of a local marketplace. deals are a really core piece of that marketplace, and increasingly over time you're going to see more and more local products and service there's that aren't working at a deep, deep discount.

the channel that drives traffic. for us it's the case. e-mail is a small portion. well less than 30%. more of our business comes from search and browse than from e-mail, and the significantly larger portion of it comes from mobile than e-mail. >> it's admittedly not a fairy tail beginning for you at this company, but hopefully you'll come back and see us as the story evolves. thanks to rich williams, incoming ceo of groupon and our julia borestein out in san francisco. europe is about to close here. in fact, it's closing as we speak. mixed with the dax, the -- >> yeah, well, actually just waiting to come on here. i was watching more mobile in europe fall into negative territory. janet wrelen is presumably the reason for that, suggesting the december rate hike from the fed is a live possibility within the last hour. that's brought europe down. germany was negative for much of the session. it's still on underperforming down 1%. the real mover is the euro. if we can take a look at that.

yesterday, of course, you have mario draghi reinvigorating the idea that qe is on the table as far as ecb is concerned. now you have yellen coming in strengthening the dollar with this suggestion that we've got a live rate hike possibility in december. the euro falls 2 cents or more as things stand. hasn't done much for the market overall. many people still very much obsessed with what is going on with volkswagen. this revelation last night that -- this is emissions scandal number two. this is separate. they actually underestimated fuel consumption and, therefore, carbon dioxide emissions for 800,000 cars in europe. not here. now presumably regulated in this country in california will start testing what's happened here as well. you see volkswagen is down 5%. porsche, which is the controlling shareholder also falls. it's been a rough three months as you know. this is different in addition to what we have yet or monday from the epa where they were

suggesting that three liter diesel engines from both them and porsche and audi may have been in breach of the original nitrous oxide emission standard and now today we've had confirmation from vw that those cars have been withdrawn from sale in this country. further to that, you see the rest of the automotive makers around europe follow into negative territory because this is just uncertainty. no one knows where we're going with vw now or indeed other accusations that will presumably have suspicions that we'll have to be cleared up around the rest of the industry. i do want to mention glencore, a top gainer. it's suggesting its liquidity has risen since june, and it is accelerating its debt paydown. you see it's lifted as well. back to you. >> thanks very much for that. when we come back, some media names on the move after reporting earnings today. we've got some exclusive data on the changing face of television and what it means for both broadcasters and advertisers alike. dow down 56. yellen continues to make the tape. don't go away.

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good morning. i'm sue herrera, and here is your cnbc news update at this hour. a russian built cargo plane with passengers on board crashed after taking off super south sudan, killing more than 40 people on the flight and on the ground. according to a sudanese spokesman, a crewmember and a child on board survived. swrap knees automaker --

partsmaker takata promising not to repeat problems involving its defective airbag. this follows u.s. safety regulators saying they would fine the company up to $200 million over the way it handles the recall. >> let girls learn initiative. and that is the cnbc news update. you are up-to-date. john, back to you. >> all right. thanks, sue. meanwhile, data shows the internet is boosting tv consumption, but fewer people are watching tv live. these trends could change the

advertising community. >> people are time shifting and especially -- the internet is now more than they're watching television live or time shifted. >> the -- it follows the data and it's really not going to get paid for it.

we're really optimistic that video on demand all the way to streaming content and watch it, the data is really going to boo boost. >> that's the question. what is the impact of these trends on the business of content, the business of television. does it mean that the attention shifts to big live events like sports? i guess that happens for a while, but then over time where does the money go? >> well, remember, there's an awful lot of television content, you know, beyond sports. an incredible number of new shows are being introduced. again, they're being watched on a lot of different platforms, and the industry just needs to have a measurement of it.

>> it's taking about taking it from basic cable and pript. do you see a problem with that? >> there is an issue of the degree to which cable is still going to be able to retain its subscribers, and that's why you see the emergence of these packages of ott shows that cbs, for example, even espn, hbo are offering. i think they kind of -- it's a very difficult transition to manage because you are getting paid so much money from the cable networks -- excuse me, from the cable carriers that you don't want to accelerate the cord cutting there, but you do want to get some revenue.

>> if he were red cross a cable company, he -- he said i wouldn't be letting hulu cannibalize my product. easy to say where he is sitting from. what did you make of that comment? >> yeah. that's -- it's an interesting comment. again, i think it's getting caught in the middle between the cord cutters and i think there's some valid issue there about -- i don't think it's occurring as fast as they would have one believe. it is happening to some degree. some is economic in nature, and when those people are viewing the content on another platform.

>> the streaming of that television content, that's being viewed via the internet. >> yes. thanks so much for that perspective. co-founder of comstore. of course, we should mention cnbc is owned by comcast, which has a dog in that fight, broadband-wise. of course. carl. >> meantime, our dog of the yellen coverage is steve liesman back at hq. >> okay. no problem. yellen was asked about the potential problems the united states will have in financing its debt and in the process answering that question she said there's -- the forecast has no intention of doing additional quantity takive easing or buying additional assets. she was also asked about china's selling treasuries and the

response to that was china is selling treasuries not because it's dumping -- doesn't want to hold them, but because its currency was under pressure, and that was the means that it used to prop up its currency and keep it from deappreciating too much. it's a hearing on banking regulation and ultimately what's making news here is the stuff on monetary policy. carl. >> i'll take it from there. steve liesman, we know you'll have more for us later on. what is a very, very newsy hearing. coming up on "squawk alley" we are going one-on-one with the executive leading the business that could be google's next multibillion dollar unit. that's coming up later on. don't go away. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings.

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sdmrimplts coming up on the halftime show. facebook earnings at all-time highs. what do investors want to see to keep that rally going? plus, as core shares jump retail expert dana shares the names on her shopping list right now, and the battle over whole foods ahead of tonight's earnings. the brothers battling it out on that beaten down name. carl will also have the very latest on the fed shares' testimony and everything that's moving as a result. back to you. >> it is a busy day, scott. speaking of which let's get to the cme group and rick santelli and get the santelli exchange. >> my guest is jim bianco. you were shocked when i asked did you watch janet, and you said yes, but she wasn't supposed to be testifying. can you explain? >> the dodd frank bill that was passed five years ago created a

new position at the head of supervision. the head of supervision was supposed to speak to today. >> a large reason you and i and others think the ecb and the bank of japan are the problem. inherent in this monster that's been created from a nudging bank, to a powerful entity, the head of supervision, one of the key aspects of dodd frank, the president hasn't appointed anybody in five years. that's the sense of urgency. >> that and he hasn't even filled out all the governors. we're supposed to have seven federal reserve governors, and we don't have a splat of vote. there's no urgency in doing this, and the only conclusion is they must like it the way it is. >> do you think there's any way that any entity on the planet is ever going to be able to model the next disaster?

>> no. i don't think that they could even model next quarter's gdp. even wall street can't do that, let alone model the next disaster. >> what you are saying is since we have revisions on almost every number and modelling something as large as systemic risk and stress tests is light years beyond that. then if you can't do one, you certainly can't do the other. >> absolutely. you should know enough that you can't do it in the first place, but that hasn't stopped them from facing the entire premise of monetary policy on forecasting stuff that they can't do very well. you have the solution. can you explain? >> the fed fund futures is the market's assessment of whether or not the fed is going to raise. about 52%, 54%. now, he would have to get above 60 to stay above 60. >> why? >> because then you not only have -- the fed rate hike, but it starts to get priced in. >> let me get this straight. we all know the markets are somewhat broken and i think they're somewhat broken because

there's sfroo why -- because the broken market said we're not ready for it, and they said okay. you're not ready for it, and financial conditions are such we won't raise rates? >> call it brokeback martin. >> jim, thank you. john, back to you. >> all right. thanks, rick. up next, google's new strategy to take on microsoft outlook revolves around working together. a top voice from google will join us to explain that. up in just a moment.

>> our next guest -- the outlook to google, but says they can co-exist just fine, but the question we're asking is can g mail really be the answer to fixing workplace communication? the president of google for work, and he joins us now fresh off the web summit. it's great to have you. >> great to be here, kayla. >> we learn this week that google for work has two million companies that are paying for its services. give us some context around what that means for employees that are engaging with the product and what types of products.

>> from the billion people already using windows. do you market to the g mael user, the drive user? how do you get the new customer? >> we actually market to all users. we get a lot of our user from people who might be using our products in their consumer life or in schools. as they come into work, they want to use those products because they are beautiful and simple

simple. >> they actually do use this with these solutions. >> amitt, level with me. why couldn't you beat microsoft? i mean, they've caught up with 365 this latest version. has some of that real-team changes that google has had for a long time. they continue to make billions and billions of dollars off this software. you are out well ahead of them. with g mail, you manage to gain the most share with chrome. you've done incredibly well, but in productivity, you have not beaten microsoft. why not? >> most of the productivity is still out there. you can look around us, and it's still mostly working on your laptop, tethered to a desk, and that is yet to move. that shift is now accelerating. we offer a very different alternative. an alternative that's pure, first of all. pure cloud. it's not a hybrid approach, which is costly, expensive.

>> much mosh productive. >> you have a new promotion that users of google for work can use it for free if they are still under contract with a competitor. it's yol trying to get the customer to leave microsoft, to leave amazon, ibm. limited time offer. how will that move the needle?

>> typically what we've found is companies say, look, already on this platform, i need sh time, and i don't want to double pay. we will pay for you to move from that product to our product. we actually are paying that to help them with the conversion. >> amit, we're hoping to learn a lot more about what you are doing at google as we start peeling back the layers on some of alphabet's businesses. stay tuned. we will. >> thank you. >> amit, the head of google for work. >> when we come back, a lot more on microsoft's move into the cloud and then later today drop box ceo drew houston sits down with kayla for an exclusive interview. that's coming up on "power lunch." dow down about 40 points.

>> microsoft and red hat are teaming up. microsoft's cloud computer platform will have a hands to speak with microsoft peggy johnson. here's what she had to say about this new alliance and the joint

support that they've got to make it work better together. take a listen. >> we believe that the world is what our customers are facing, and so the complications of going both on prim and cloud are something that our customers are asking for, and if we can do that in a more seamless way, for instance, we're going to offer joint support, red hat and microsoft together, so that when the customers dial in with a question, they don't have to know whether it was on the red hat side or the microsoft side. now microsoft working together with red hat. of course, red hat and amazon already have an alliance, but this is a tighter relationship than microsoft has. >> it is quite an arms race in that space. >> new 52-week high for

microsoft. it tries to get back to 60. we all remember late 1999. hasn't been able to set a record high in recent weeks. that's it for us. let's get to the judge and the half back at hq. >> all right, gisz. thanks. welcome to the halftime show. let's meet our starting line-up for today. joe teranova and josh brown and john and pete nagarian. big game hunting as cabela's gets an upgrade. the retail trade with coors surging at this hour. we speak to industry expert dana on the names to bag hfd the holidays. we do have some breaking news at this hour. fed chair yellen continuing to testify on the hill and seems to be once again laying the ground work