don't do business without it. 8:00 a.m. at intel headquarters in santa clara, california, 11:00 a.m. on wall street. "squawk alley" is live.

♪ ♪ welcome to "squawk alley." i am carl quintanilla with morgan brennan and jon fortt we have full team coverage on another busy day for tech. the dow down 500 points, wiping out thursday's gains amazon, snap, alphabet down on earnings alphabet has the latest version of the iphone. and bob swan sits down with us on another first on cnbc interview you don't want to miss first up, shares of amazon plummeting revenue, q4 guidance short of expectations >> good morning. shares are down 9% in today's trading, on pace for the worst day since october of 2014, adding to a brutal month for the stock. it didn't matter that they notched another record profit or margins are at record highs. investors are focusing on the

disappointing holiday quarter outlook. amazon didn't give clear reason why they guided lower than the street was expecting, saying it was difficult to estimate and they're bullish and ready to roll another point of concern, slowing international growth amazon is pouring money into places like india, but facing stiff competition quarter over quarter. growth this segment is slogan it is posting losses. there were bright spots elsewhere. aws revenue rose 46% amazon's other segment which includes the advertising business posted a third quarter of triple digit growth and sib description services, including prime memberships, added $3.7 billion in revenue. guys, that may be why despite the selloff we are seeing many analysts don't seem worried, many saying they're bullish outlooks. >> thank you snap seeing major declines after announcing they lost 2

million users last quarter julia boorstin has more. >> it is concerns about the second quarterly decline in users, warning it will lose more in the fourth quarter, sending the stock to all time low. shares down dramatically 17% jp morgan rating is slashing price target to $6, criticizing the assumption to add users over 35 in developed markets and in the younger demographic in developing markets, saying we believe that instagram is much more penetrated in these demographics it would be challenging for snap to pull users from instagram noting concern that the rebuilding of the android app is not ready for release, given length of development and high priority on that anticipate. twitter reported user declines and better than expected results. the question for facebook earnings which are tuesday afternoon is whether it will show user stagnation and revenue

growth and how investors will react. carl >> thank you very much, julia. before we get to the earnings panel, breaking news from sue herera regarding suspicious packages >> pete williams citing two law enforcement sources a person of interest has been taken into custody. it is a man. it was in florida. the man is reportedly in his 50s, but pete says these law enforcement sources are telling him they are not close to charging anyone at this point. this is just a person of interest they brought in for questioning. they're not charging this person they are going to hold, department of justice will have a news conference at 2:30 p.m. eastern time as it relates to this particular action so two law enforcement sources say a person has been taken into custody. he is a person of interest in his 50s and apparently was taken

into custody in florida. guys, i'll send it back to you >> sue, thank you for the latest on this developing story sue herera back at hq. alphabet and other earnings stories in tech, joining amazon, snap, seeing shares fall significantly. down 4.5% now. pulling the faang stocks lower in the bigger, broader selloff mark ma [bleehaney joining us shares of amazon are down almost 9% now they're on pace if they keep at the losses to close at worst day since october 24th in terms of single day losses. i get if you bought into the stock beginning of the year, you're up more than 35%. but if you bought into the stock in the last couple of weeks or last couple months and it is not cheap, it is more than $1600 a share, you lost quite a bit of money, what do you say to those

investors? >> i would say to those investors what you have is expectations correction like alphabet they have missed numbers at least on the top line, the stocks will correct. the question is is there fundamental correction in these two names or not alphabet i think emphatically there is not advertising revenue growth which is the bread and butter of google and always has been is growing 21% year over year, the same growth rate as the last seven quarters amazon gave you a slowdown in international markets, but there's thoughtful ex-planetary reasons. comps were tougher they had the acquisition of a company and national holiday timing in india. if you look through that, i think growth rates are consistent you had record high operating margins. i think amazon remains a top line, 20% gross profit grower with expanding operating margins. i think the thesis is there. it is not a back up the truck

price, but we think you weigh in and buy shares on this kind of correction >> colin, your take on guidance for q4 with amazon seems that shipping is one of the biggest up in the air questionable factors for the quarter, especially with a company saying they're not sure if they have too much capacity or not enough, and what fuel will do as they see a surge of holiday package deliveries >> there's no doubt that there are question marks about q4 and holiday season for almost every company. amazon is typically conservative with guidance, especially in q4, so i think that's explainable. i would agree with what mark described, the report, headline object secures an otherwise very strong report. if you look at amazon on a volume basis, growth remains well above 20% i think that should give investors some sense of relief, even though the stock is reacting this way today. >> mark, given what we are

seeing in the selloff action on alphabet, down more than 4%, amazon down about 9, even facebook which didn't report down nearly 4% this morning at around 145 bucks a share, do investors need to adjust the price target expectations? are we at the point these guys need to be perfect, not just on the bottom line but the top line to get to higher levels. >> near term, probably very much a necessary valuation correction some stocks got well above the average, required a fundamental re-rating in terms of business model, acceleration, revenue to growth, expansion to margin. you have that with two names in the space, netflix and amazon. i look at the names, i think there's indiscriminate selling and diskrim nat selling.

as you work through it, there's a couple names that are interesting. give me netflix of 300, i give you a stock i think can double in three years it is trading on expose's about the company's culture. i don't think it is unusual. there are plenty of other offerings on netflix i think netflix won that game, i am a heavy buyer of netflix at 300. back up the truck price. facebook at 145, trading 14 times earning if you adjust for cash, you buy that trends you hear on advertising from the names say advertising growth rates are consistent. that's the snap, the twitter, the google read. if that's the case with facebook, it isn't pricing revenue growth you buy facebook and buy here. >> facebook is what i want to ask about. they 'tis covered more iranian

information, they're going to disclose details shortly at what point do advertisers say enough >> well, if there were problems of the tracking for campaigns, challenges with roi, yeah. advertisers are trying to get return on ad dollars i don't think rois have changed for google and facebook. those are always going to be -- probably always going to be the two major must buys in internet advertising. i don't see anything in survey work that changes that there are pr and platform security issues that facebook needs to amp up spending and address and i think they're doing it i think it is derisked fundamentally. that's what makes it an interest point here and now. >> talk about alphabet's operating expenses they jump 26% year on year are they making the right investments for future growth? >> yeah. i think clearly they are

if you look at the tail ends of business, obviously mobile is one for a number of years. digital media with youtube, significant cost to build the infrastructure for that as well as for the cloud business. investing in google is a bullish sign for long term growth. i understand the concern over the increase in expenditures long term it bodes well for a number of growth vectors for google >> before i let you go, i need your thoughts on snap. are you sticking with outperformed rating on the stock? >> yes we are we may well be wrong, we upgraded beginning of the year, stock is cut in half, price target is cut in half. if they can't stabilize, the stock will go lower. we don't think there's a growing concern. 1.4 billion in cash and they have two years to get the ship

right, and the ship right is getting dau growth to stabilize and figure out the android issue. this is a company great on vision, lousy on execution if it remains lousy on execution from 12 months, the stock will continue to go down. but we think they can right the ship. >> gentlemen, thanks for joining us from internet to some hardware, shares of apple are lower with the rest of the dow as the company launches the more value priced version of the most expensive phone line, iphone xr. josh lipton joins us my bet that it will be the most popular after the holiday season are over, any intelligence from watching action in the store, listening to what customers have to say >> reporter: i know that's your bet, jon i talked to other analysts that make a different bet let's get to that in a second.

let's start with the stock obviously the market is down you see apple under pressure today, it is under pressure month to date though interestingly not as much pressure as other faang names you guys are talking about that stock is up about 30% year to date. as you mention, jon, we are here at the store outside san francisco because of this. you mention xr is available. $749 you're looking at a 6.1 inch lcd display. it is powered by the a-12 bionic chip advanced camera system, greater battery life to your point, i talked to gene munster and his bet is that the xr is a top seller he thinks it packs in a lot of value. it doesn't necessarily spell bad news for iphone average selling

prices because his bet is when people buy the new xr, they're not buying the base model for 749. he is going to gamble they pay up to greater storage capacity and that would come with higher price tags wait and see the question for investors, is the xr a top seller. if it is, what is the model that they buy, that will have a big impact and can apple make the phones to satisfy. guys, back to you. >> josh, we will see and we have a big show still ahead. former cisco chairman john chambers joins us on what they're saying about navigating volatility in the market. no selloff for intel, earnings are lifting the stock up now 3%. interim ceo bob swan will tell us why he believes 2019 will be another strong year for the company. "squawk alley" continues in less ayitusines mut st wh

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as well. >> for a young generation of investors, john, the volatility is something new but it is not new to you you think back to 2001 when you saw real volatility, how did you process it as an executive >> you need to determine how much of the issues are inflicted by the company themselves, in other words, have they made mistakes, and how much of it are market you then have to assume it will last longer than you think but if your strategy is working well, you're in the right market transition, customers are happy with you, you want to stay the course through it. however, you've got to separate the symptoms from the underlying issues i'm very concerned about the fed putting on the brakes so consistently what you do when you keep doing the right thing like was done in the '70s probably doesn't work in today's times if you already have brakes being applied on trade issues in some economies around the world which by the way i agree we have to solve issues with china in terms of the symptom being the trade

imbalance, but really the practices there we need to address, i think the fed has to be careful continuing to do something that worked 30 years ago and staying the course to long on it long run, however, technology is going to do well. >> i was going to say, sounds like you're a believer if not in the supply side theory at least in productivity theory that technology will allow us to grow while keeping inflation in check. >> carl, you worded it well. the productivity from artificial intelligence, i have two major companies on that, one of them is going to million last year in growth to 80 million this year artificial intelligence will completely change the productivity and outcomes. i think you get productivity going well, you have to not pile the brakes too quickly in other areas. that's why tech is the place to be in the next decade. there will be a rotation, however. some companies that led ten

years ago are clearly not leaders today, some leaders today will not be leaders ten years from now but the companies you talk about today if you do a portfolio across microsoft, apple, netflix, amazon, et cetera, i think they'll be the players you do well in in the next decade. fun thing about being a private investor all of mine are where will the stock be one to three years out. i don't worry about quarterly volatility and that's fun from a leadership perspective. >> interesting you said that, john we have coming into next year a pipeline full of prospective ipos, uber possibly, airbnb. given the selloff in recent weeks of tech, do you think that effects the ipo pipeline >> i think it will effect the pipeline a bit because if technology is on a positive trend, first the ipo prices are higher, more will come in.

what you're seeing is a pretty good flow, looking at 230 ipos on the nasdaq and new york stock exchange this year being the most likely, i think the number needs to be three to five years from now, in the 4 to 700 range like in the '90s to create the jobs and keep the economy going at the level we want per carl's comment about tremendous productivity, machine learning, digitization will drive. i think we have to get startups at a faster pace, not a slower pace. >> i have to get your thoughts on workplace culture yesterday, the google ceo came out with a memo, said 48 employees were let go because of sexual harassment. an article on radical transparency and blunt firings rattling the ranks essentially does big tech have a big culture problem now? >> i think you hit on a very

important issue, whether it is big tech or small tech, i spend a lot of time talking with ceos about everybody gets vision and strategy, everybody gets the ceo's job is about strategy and changing when appropriate. everybody gets the importance of communication, but underlying it is culture and that determines a future as much as strategy and vision. if you begin to lose your culture, everybody makes mistakes but you have to correct it quickly you never have a great company with sustained growth without a strong culture that is owned by the ceo and driven through it. if your culture begins to go amiss, you have to bring it back in line, whether a startup or major high tech company. >> john, we have to explore it next time you're with us we have a busy day here. see you soon >> carl, it is a pleasure. watch out for you, indy. if i bet on one country in

growth in stocks, india would be the place to bet >> see you when you get back >> thank you coming up, intel getting a boost and raising full year guidance stock up 3% now. after the break, the interim ceo bob swan joins us to discuss results and what's next for the chip maker it is the only dow component that's higher. dow is down 430 points dow is down 430 points don't go anywhere. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to eve hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪

welcome back shares of intel are up more than 3%, reporting third quarter revenue beat with fourth quarter guidance solid as well bob swan, interim ceo of intel, joins us here first on cnbc. good morning >> good morning.

how are you today. >> i'm doing well. given a quarter like this, you said you are not looking to be the permanent ceo of intel, but is that still the case >> that's still the case, jon. we had a wonderful quarter, a sign of resilience of the company, and things we're able to accomplish and i look forward to being the cfo for the next ceo of this wonderful company. so nothing has changed on that front. >> one of the major themes heading into the report was restraints on the number of chips you're able to produce for the pc market. you have said in q4 those constraints are going to cap the up side available, particularly when it comes to lower npcs. what i want clarity on, i know you talked about priority chip types, but what do you expect to be constrained what level of pc, and is it the core level of consumer pc that

tends to be popular in q4? >> that's a great question, jon. look, it starts with aswe looked at the beginning of the year, we were looking at decent growth for our company in 2018 and the practical reality is we had explosive growth revenue for the full year will be $6 billion higher than we anticipated a short nine months ago because of demand for high performance compute has been off the charts it is a sign of the role we play in adoption of high performance compute. as we go into the fourth quarter, expectations is the company will grow upwards of 11%. the demand from customers is even greater than that so we're doing the best we can in con jumgs with customers to prioritize a doppler radar conjunction with customers to

prioritize the implications are the lower end of pcs and devices, chips we sell into the internet of things arena, which is a big and growing business for us will be constrained in the fourth quarter as we work to get more and more supply. >> bob, i remember a couple years back you announced strategic realignment you were de-emphasizing the pc, in the mid and lower and emphasizing other areas that were expected to be higher growth. over the course of 2018 we have seen there was some problems with that, still plenty of running room for the pc. are you treating the pc boom as a temporary thing or are you rethinking the streategic realignment and how it is going forward? >> yeah, i would never say that we are de-emphasizing the pc

it is such an important part of our business such a critical component of the scale that we have, it funds the ip it has been a very important part of our business even when you look at the last five or six years, jon, when the market has declined, our pc business has grown top line and dramatically expanded its profitability. what you saw this quarter is a case with modest growth in the industry 1 to 2%. our pc and client business grew 16% on the top line and profitability was up 26%, so it is an extremely important part of our business. that being said we have seen a mat i have opportunity to expand the role we play well beyond the pc so we talked about transforming from a wonderful pc centric

company to go beyond that to what we are characterize as a data center company, so we power not just the technology inside the pcs but the technology inside a data center, technology inside an automobile, the technology inside industrial equipment. so it's not a deemphasis of the pcs, it is an opportunity to expand the technologies and role we play in a much larger tam to fuel the growth of the company going forward. >> now, on the call, bob, you talked about the impact of the trade war with china in terms of head winds and tail winds and you talked about china being a big market i'm wondering what exactly you see as a range of possibilities in 2019 for how this could effect you you said that you have a world class supply chain team you expect to weather the dynamics,

but as we get the prospect of more tariff impact, what's the range of possible impact on intel specifically in the markets you operate in that you expect >> really three key points that we made. one is china has been and will continue to be an important market for us, and we are big proponents of free trade we think it is good for the industry, we think it is good for the global economy and we think it is good for our company. china is important free trade is important. in terms of impact on our business so far, we really haven't been impacted. a third wave of tariffs could impact computers and servers going forward. what we do is fall back on our global supply chain, working with customers around the world

that we can ensure to move product to avoid what eventual impact could be in a world of increasing tariffs, which is higher cost for consumers at point of sale. this is one where a real sophisticated global supply chain of ours and of our customers working together, we're going to mitigate best we can any potential implications the third round of tariffs could have on us or the industry >> bob, is that you saying you can move product to a country of origin so it is coming in and isn'tsubject to tariffs withou major disruption to the way the intel is set up? >> that's the challenge, that's the opportunity, that's the power of having a very sophisticated global supply chain team that we have here at intel. >> does it mean more manufacturing in the u.s.? >> we have a global manufacturing footprint, we

produce products around the globe, we have significant manufacturing here in the u.s. in oregon and arizona, we're investing in arizona now to build out a new fab for new capacity we announced earlier in the year we're a big global employer but very big r&d and manufacturing presence here in the u.s., and getting bigger because of growth of the company and opportunities we see going forward >> bob, you talked about your progress, how that will be ready next year to show up in retail products you touched slightly on seven nanometer. some competitors are moving to that you said progress will have impact on cap x in 2019. what are the range of possibilities you see on that? has the progress you talked about in the call on ten made

you feel better about seven or are there still significant hurdles on seven that need to be cleared? do you expect an update maybe in the spring on how much progress we'll see on seven nanometer in 2019 >> yes first, process leadership to enable product leadership is always an important, critical part of intel. we're doing wonderful things with 14 nanometer now, we're making good progress on ten nanometer as we exit 2018 and go to 2019. but we're looking for the next note, investing in that next one to keep us alive and well. as we evolve through the course of '19, we'll begin to share more about what we see for the seven nanometer process leadership and talk more about that then. >> bob, the action obviously in

stock and volatility, has it changed your view how you'll treat buy backs in the year ahead? >> the way we looked at buy backs over time is twofold we are blessed with a wonderful balance sheet and strong cash flows. what we told investors is we will always offset from the comp. based programs, but in addition to that we will be opportunistic if we believe the value of the firm is not fully reflected in how we're trading this year we bought back $8.5 billion in stock, and the reason is that as we think about our business, the momentum we are building, how we see the future, we are trying to opportunistically reduce capital, if we don't believe progress and momentum is fully reflected in terms of how we

trade. that's been part of our capital allocation philosophy for awhile and i don't anticipate that to change going forward >> bob, intel is one of the few lone bright spots in the sector in terms of earnings season so far. some folks watch semi conductors as a leading indicator of economic growth. given that you are such a global company and given that there are concerns about potential for slowing global economic growth, from your lens running intel, what do you see going into next year >> you know, for us there's two things in particular that we're excited about. one, the demands and you have been talking about it on the program, the demand for digital services for consumers and the needs for corporates to access, analyze, store, retrieve more and more data, we don't think that's going to slow down.

all of that digital services and that needs for data puts more and more demand on compute and compute is where we perform extremely well the second thing that we see is more a function of how we have been laying out strategy in the course of the last several years, which is we just play in a much larger market today as jon asked earlier, the primary focus before was selling microprocessors into a p.c today we sell them into everything and it is not just microprocessors, it is modems and memory and fpgas, so the opportunity for us and expanse of markets we serve tomorrow are much bigger than we served historically so we have a tail wind of demands for data and digital services, for consumers and for

businesses, and we invested dramatically to expand the role we play and increasing needs for data and services. so we're pretty bullish through choppy waters, this is a very resilient company. we believe we'll stand relatively tall regardless of the overall macro economic characteristics and dynamics >> bob, speaking of one of those areas that wasn't a focus ten years ago, i believe you had something like 50% growth in cloud. you said you don't expect necessarily that growth rate to continue, but given the mega scale cloud providers that are out there, many, perhaps all of whom you supply, what kind of cycle are you seeing in demand from them specifically and should investors prepare themselves for it? do you expect demand from them to be relatively study for the foreseeable future or will there be ebbs and flows? >> well, we think again their

demand is largely a function of digital services and needs for either consumers or companies to analyze and retrieve more data so the way we have always looked at the tam of what the cloud services provide is two-thirds of that growth is new markets, created by new things, new services for consumers so that's what's really drove the explosive growth of cloud services and in turn our business a share is up almost 50% in cloud services, it is a big part of growth and big part of diversification of the data center business overall. now, we don't expect 50% growth to continue, but we do expect it to be a good source of growth for our customers and a good source of growth for us going forward.

>> bob swan, incident rterim cef intel. thanks for being with us >> thanks, jon, appreciate it. dow down 539 we are 200 points above that sue herera has a news update. here is what's happening at this hour. more developments on the case that we have been following. federal authorities have taken a man in his 50s into custody in florida in connection with suspected explosives sent in packages to top democrats and critics of the president nbc news reports the man has been arrested and will face charges. police officers are examining a white van in the parking lot of a business in plantation, florida. a strong 6.8 magnitude earthquake off a greek tourist island felt as far away as athens mow major damage or injuries are reported they say the main harbor for the

island was damaged but it is still functional japanese prime minister abe meets with chinese president xi in beijing they will discuss strengthening business and trade links between the two countries. that meeting will mark a steady recovery in relations that hit a low in 2012, amid a dispute over east china sea islands. and ver gin orbit revealing the first images of the rocket it will be strapped to the bottom of a converted virgin atlantic plane and thrown to 30,000 feet where thrusters will engage and take it to outer space. you're up to date. the department of justice, carl and morgan, will be having a news conference this afternoon on the developing story, we will carry it back to you. >> the president tweeting that he will talk about this in about 15 minutes >> right we'll keep an eye on this developing story. european markets are closing minutes ago. seema mody has today's action.

>> you can see behind me, stocks falling sharply, dragged down by lackluster tech earnings we're seeing in the u.s. and europe. one specific market is the ftse 100, falling to the lowest level since december of 2016 it wraps up a brutal week for european markets which are on track for the worst month of trade since august, 2015 still, better than the s&p 500 over the past five days. two of the hardest-hit sectors in europe, tech and basic resources, down about 4%, 5% for technology today it is autos in focus, down more than 2% french auto supplier leading the group to the down side after cutting guidance on what it said was an increasingly weak global car market, and cited a slow dounlz down in china. they slashed it due to weak nnes

the stock posting the worst day in more than three decades it follows a number of profit warnings in recent months from other names like daimler, volvo, continental, even michelin focus today turns to italy we are awaiting the update on the credit outlook amid budget concerns, this after the italian deputy stepped up sharp rhetoric saying that the president, mario draghi, created poisoned atmosphere and adding that the government would take the necessary counter measures to stem the rise in italian bond yields they have seen the past couple of weeks. at the same time, german ten year yield drops to a seven week low as investors take a risk off approach and retail sales, pmi will likely get a lot of attention as well carl, back to you. >> thank you for that. when we come back, a lot of earnings movers to discuss in

the tech sector. negativity in tech continues we breakdown their quarters later this hour. check where we stand in the markets, well off session lows dow down 365, and s&p down 51.

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we debate the best moves right now for your money. and hedge fund manager said two weeks ago stocks could fall 40 to 50% for fair value he is back live with the selloff intensifying. just because there's red all over the place doesn't mean there's nothing to buy call of the day, zeroing in on a specialty retailer we tell you which one and we will do that at noon a little more than ten minutes away see you then. >> see you then. thanks. rick santelli has the santelli exchange. rick >> good morning, carl. one of the key features of interest rates really for 2018 and 2017 is this notion that a good aspect of the behavior is already baked in the cake. very few re-tracements, a fed determined to normalize, we can debate how much more normal, how do you get to neutral, what is neutral. will we recognize it when we get there? all these things are very

important. some things change this week call it a cumulative effect. finally treasuries are taking notice, not only of the volatility but the direction of the volatility in the equity markets. and charts bear it out as a matter of fact, not only do they bear it out, they pretty much let investors know where you need to be most cautious so let's go to the board we start the chart may 1st there's about ten trading days in may that gave us all of the clues for the rest of the year in treasuries, and what i'm referring to is around the 17th when we made the first high yield close at 311 things happened quickly. between the 17 and the end of the month, 29th, covered a lot of ground and made what i call the most important bottom of the year at 278. the market jostled, you remember how crazy it was in february, it moved around but never traded on a closing basis any closer than 281. which means that it should hold

all re-tracements. after we made that 323 high, and you go to the 311 high, what you find is today is the day it looks as though we're going through that level wednesday, we closed at 310. it is not science. give me a little slippage on 311. the point is if we now close below that high unlike how we behaved on the key bottom, things could change a bit. also, remember, stocks aren't closed anything under 308 most likely we're going to go back and test 3% morgan, back to you. >> rick santelli, thank you. the nasdaq falling sharply again is on pace for its fourth straight negative week bertha coombs is at the nasdaq and joins us with an update. small caps are a big part of the nasdaq's decline notching a six-week losing streak it's the breakdown in the large cap tech sector that has seen

the nasdaq fall down more than 10% from a new record high at the start of the month though the nasdaq 100 are still the only major indices up for the year, earnings have proven to be a negative catalyst. today's biggest losers really stemming from disappointing revenue numbers for the most part, storage maker western digital, that's weighing on sea gate third quarter sales and fourth quarter outlook and, of course, amazon slowing revenues, seeing the stock, also right below its long-term 200-day moving average support level. that breakdown in amazon now means the f.a.n.g. stocks that have driven this market higher -- facebook, amazon, netflix, alphabet are all in bear market, down about 20% from highs. the chip sector is in bear market as well with this week's declines on pace for the worst quarter right now since the third quarter of 2011. mellanox is bucking the trend with reports of a potential

sale amd and texas instruments punished again after disappointing results. intel holding up the real stock of the week that i want to show you is tesla. having its seventh best week ever in terms of gains, the best since 2011 after posting that surprise profit. and now back positive for the year and is providing the biggest uplift for the nasdaq 100 for the quarter. the trouble is, jon, the nasdaq is down over 770 points to the down side for the month. back to you. >> as you mentioned, bertha, rough waters intel and tech earnings a big story amid the sell-off and the continued volatility bob pisani is with us. break it down, bob >> it's been a tough week, a

tough month. particularly after some high-profile misses on revenue from amazon and alphabet today you heard a moment ago the forward p/e multiple on the s&p 500 is now below 15 and the 10% earnings growth is in some doubt. in fact, it may only be half that declining unemployment a slowing china, tariffs and an overly aggressive fed are imminent threats to the top and bottom line. tech is the big issue. you heard from bertha, it's been an ugly month across the board the semiconductor sector some broader slowdown and i'm not sure it does semiconductors are down on what appears to be a cyclical downturn in demand

they tend to have very high multiples. they would be sold immediately they're all facing much greater regulations. i want to put up, if we can, the s&p 500. a nice rally in the last 20 minutes. these are amazing moves that would have been a big topic of conversation we don't notice anymore. notice here the vix, we were at 28 and the vix has collapsed in the last 20 minutes down 25 or so we've seen some really enormous put call ratios this morning 1.5 put to every call that is short-term panic that signals a

short-term bottom. i think that may have been a factor in the rally we saw here. >> given the fact it is friday and what we've seen really mostly all of this week are these big moves in the markets coming into the close. >> this is a really hard one to call right now in theory we are so stupidly oversold in the key sectors, in and in materials the only sector we are not oversold is health care and consumer staples and reits in theory we should get a bounce in 40% of the s&p is way oversold like the two-week numbers that i watched, the trend like two standard deviations past. technically we should get a bounce right now when you get the short-term panics, the market goes against

you. nobody is making any money up 400, down 400, up 400, down 400. show me a trend so we can make money more than 30 minutes we don't know what is going on that's the whole street saying, what should we do? models tell us we should be buying something here because the technical levels are so stupidly oversold that historically they bounce here and then they don't bounce >> that's definitely what's new, what's new about this month. that's true, bob bob pisani and microsoft, alphabet, twitter, intel, a few of the tech names that have reported earnings this week we're going to take a look at the biggest winners. place, the xfinity xfi gateway.

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...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. wrapping up today with the losers far outpacing winners all lower for the week positive action for tesla. all of this will continue next week with apple, spotify, alibaba, gm, ge, got a jobs number friday. >> the trends we saw this week interesting to see which ones follow through some mixed messages. >> in terms what has worked

versus what hasn't, the outperforming sectors, real estate, consumer staples and utilities. >> the worst run right now home depot close to an 11-month low as the flooring company had pretty miserable quarter let's get over to the judge. i'm scott wapner is the correction now closer to running its course why one stock more than any other may hold the answer to that question. a friday volatility spike. we're set to go on another big down day for the markets the billion dollar question, where's the bottom and can apple's earnings next week be the catalyst for an upsurge? "the halftime report" starts right now. welcome. good to have you with us on this friday here to debate the biggest