good morning it is 11:00 a.m. at ibm headquarters in new york, 11:00 a.m. on wall street and "squawk alley" is live ♪ ♪ ♪

good monday morning. welcome to "squawk alley." i am carl quintanilla with morgan brennan, jon fortt at post 9 of the new york stock exchange busy morning trying to hang onto a 300 point gain. >> the dow up triple digits. despite surge in tech stocks, nasdaq in correction territory faang stocks some big winners, most of them joining today's rally. joining us to discuss where we're headed with tech stocks, oppenheimerer internet research director jason hellstein and jason meeks. good morning to you both >> good morning. >> jason, i want to start with you, looking at your coverage. amazon outperformed, google outperformed, facebook outperformed, you cut price targets on alphabet and amazon. >> growth is swelling and need to reflect a bit of a lower margin outlook at these price levels, we think it is priced in.

you're basically looking at google and facebook about nine and ten times cash flow each, looking at 19, which is highly attractive for a growth company. if you think they continue growing, stocks are underpriced here >> paul, certainly the selloff in tech has been brought, bloody this month where has the story changed and where do you actually see a buying opportunity >> actually see probably the best buying opportunity that we have seen in many years, you think the stocks have gone up almost uninterrupted out of the great recession in march of '09. i like the faangs. i don't think we know enough about some of the privacy issues with companies like google and facebook and how they're going to permanently impact their business models through higher

expenses that said, i concur that stocks that come down enough that they're probably a great long term buy i can't say with a lot of confidence that this is the bottom of some of those names, but long term names i can say with confidence. >> how do you look at amazon and maybe google and its cloud business in light of the move that ibm is making to buy red hat and some other moves we have seen from enterprise players, trying to push the idea against -- that's an argument against amazon it is the leader the argument is you don't want to be tied into amazon's cloud, keep your options open does this signal strength for amazon that others have to make this argument or do you think it is potential weakness for the aws story down the line that so many are lining up against them? >> i think what you're seeing for most enterprise, they go with two cloud providers

typically have a primary cloud provider and then a secondary provider then there are some that they keep on their own, off prem their own servers. it seems like that's evolving. the idea that amazon or microsoft are going to take over the whole public cloud i think is not the narrative, not what people are expecting it is acknowledgment that the pace you're moving to the cloud, both amazon and microsoft had slowing cloud growth but was still the fastest growing business with very strong margins. >> paul, the point you made about privacy, there's a report in the journal that you have something like a dozen countries around the world considering new taxes, digital taxes on u.s. tech companies how much risk is this, especially if you start to see some taxes tied to things like revenue rather than profit

>> i don't think it is going to be that much of a financial risk to the companies they have huge cash flow generation, very strong balance sheets, but what i do worry about is, and it is not going to be a game killer, but i do worry about what is going to be their added expenses through a tax like this, probably more so through hiring a bunch of people that have to sit around and make pretty good wages cure ating potential fake news. i would like to see how it settles out. i think what happens is these companies go from having awesome, high margins to stellar balance sheets, cash flow statements, income statements. there will be degradation of models but they'll still be superior companies. >> paul, it seems similar to what we saw in the previous era where oracle was buying up applications companies what we're seeing in tech now in

the cloud. i wonder as an investor how you model it we know nobody will go, very few would go all in with one provider but when you have a certain number of players that are dominant in the early stages and others align against them with various strategies to try to diversify the market, how long before you can tell who is winning and what metrics are you watching in that space >> excellent question that you ask. the way i look at this is you have a business that demands scale. and in this situation i think the strong will get stronger, despite the fact that you have maybe oracle trying to climb in the race ibm with red hat i think the price they paid for the acquisition overnight tells you how desperate they are to get back to some semblance of growth in the future i think you will have amazon, microsoft, google, and believe it or not alibaba

that essentially dominate this market space and the strong will get stronger and they will have a bigger market share in my view, the four of them, than they have today. >> we will see before i let you both go, jason, i want your thoughts on facebook given that we have seen a double digit drop in the stock, all of the head winds we get earnings tomorrow what are you looking for >> we think revenues are fine, there are numerous data points that suggest social spending is stable while there's a lot of noise, advertisers have ignored it, consumer usage of particularly instagram is at an all-time high we do think they could miss on expenses in the quarter. that's the risky side. that said, we think expenses pull forward to the extent of expenses are higher third quarter, we think they can guide to lower growth in the fourth quarter. the street is looking for expenses to grow inline or above revenue next year as well as massive amount of capital, cap

ex spending. we think facebook is a pretty hated stock. it wouldn't take a lot for the stock to act back after earnings >> thank you both for joining us today. >> thank you >> thank you very much and a blockbuster deal in tech we have been talking about, ibm announcing they're acquiring red hat. that's more than a 60% premium for where red hat was trading. josh lipton joins us at post 9, one of the largest deals in tech >> here's why this is important. ibm could be better positioned to capitalize on the hot trend of hybrid cloud computing where red hat is a big player, that's where companies store some data in the public cloud like amazon aws and microsoft azure, and other information in their own private data centers that's often necessary because

of regulatory reasons. the ibm ceo talked about what the $33 billion deal means for her company on cnbc earlier this morning. take a listen. >> for us it's all about resetting the cloud landscape and this is to create the number one company that will be the number one hybrid cloud provider this is how they remove the remaining 80% of work to the cloud. you have to be hybrid, be able to handle multiple clouds, open technologies, multi cloud management, and that's what we can do >> red hat is the largest distributor of the operating tool ibm's bet here, buy red hat, win over developers, establish a stronger beach head in that cloud market will investors be excited? that remains to be seen. some understand the general

strategy here and it is certainly a bold bend, but there are risks they point out, the deal was fairly expensive, a deal of this size is unprecedented for big blue the stock is lower now, well off session lows guys, back to you. >> does this spur more deal making when you look at what deals have been thus far, sales force acquiring, it seems like the latest in a line of deals in this part of tech? >> you can look at that. open source is a big theme in 2018 we have this big deal. microsoft, sales force as well it is interesting to talk about what other acquisitions are. look at the best of the cloud index, argue all of those up for grabs and a ton of startups. who is going to put the money down >> it is 190 cash. what do you make of trading 171 this morning

>> i think it is interesting you can talk about advantages of this we talked about risks pointed out. fairly expensive she said this was a fair deal, what investors make. jon brought up a good risk that maybe investors are thinking about, market strategy, sales force, and competition >> the market puzzles me sometimes. there's even talk about google perhaps coming in. you would think that would make the price higher, not lower. not sure about regulatory risk not like anybody can argue red hat has cornered the market on lenox and open source. i'm not sure. >> one of the eyebrow raisers of the day. good to have you onset we are watching the major averages dow up 244 banks getting a healthy bid. art cashenjoi joins us in a few

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and it's strengthened by xfi pods, which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. dow is up triple digits. stocks up amid continued volatility all 11 s&p sectors are positive. art cashen joins us to talk about the head of steam we got at the open, art, and how that's kind of new, and how the bulls handle it. >> again, the volume was not compelling so i'm going to watch this pull

back that's beginning here, if they get them backunder plus 100, then it will be a real test for the bulls. you know, you had a lot of cross currents merkel, the currency changes, var ie variety of things going on shanghai was weak, despite saying the government was trying to hold up stock prices. i don't think we're quite settled down yet >> we have the world series over with october almost over with seasonally, does the story change in november, december >> yes usually does you have the selling in october. october is famous for bottoms so i'm hoping, but i think we have a bit more movement in this correction and you have two more days to do it. see if we can get it done. >> number of key traders saying the key level is 2700. we're 2686 what do you think?

>> i think you'll see some resistance if they try to go back up. pretty historic day, anniversary of the '29 crash you get october 19 and 29 crash, i don't like to speculate on wild moves, but i think there will be some resistance here and it will take probably a couple of days to really get going. >> you mention europe and merkel we also have the brazil election results which i don't think the results themselves surprised anyone, though the margin was interesting. any aftershocks you see from that or that you expect in the coming days? >> no, i think the market there is going to perk up a little bit. he is certainly promising to improve the economy. we'll see where it can get going. has a budget coming in that was handled by the outgoing team, we'll see if there are any quick

adjustments. >> and finally, midterms are a week from tomorrow does volume dry up >> interestingly to some degree the economy dries up what happens is ceos decide do i want to make a major expenditure of equipment or whatever until i see what's going on, will there be a change in policy. i don't see it as a change in policy, i think republicans will hold onto the senate if they lose the house, it will be a very difficult two years to the president, but that will be mostly investigations, not policy changes see we'll see what happens >> interesting kudlow argued some de-regulatory trend may be reversed. you don't buy that >> a, if you have control of the senate b, he can veto anything he wants. so i think it will be more investigations, trying to hairy him so he won't be able to hold on another term. >> art, we'll see what happens later today.

art cashen. when we return, tech stocks. the nasdaq looking to avoid a fifth consecutive week in the red. kara swisher after the break if we're gonna steal christmas,

we're gonna need the element of surprise. go team. [ snow crunching ] [ load crunching ] [ whispers ] this is the loudest snow ever. welcome back tech has lead the market lower in october, and the move in stocks mirrored move in sentiment. big tech increasingly the target of regulators. let's bring in recode editor at large kara swisher to weigh in on issues facing big tech. good morning good to see you. >> good to see you. >> my feeling about this tends to be wall street doesn't get silicon valley, and silicon valley tenl valley tends to not get reality. i look at the ibm move buying redhat, and think far from being disrupted, silicon valley and big tech in general is stronger

than it has been at most transition periods, it is not some little guy eating the lunch of the bigger guy any more, snap didn't dethrone facebook, it is big techs are so big that they're changing everything. shouldn't this be bullish for stocks >> there's a lot of sentiment pushing against it, especially regulatory sentiment, global issues that are happening. i think there's reason to be worried about in the short term these stocks, and i think they'll get hit in the next two years on all these issues, so i think people aren't sure what will happen. are consumers going to sour on facebook, are there new trends people are using social media will change, for example, just on facebook. when you look at amazon, they're obviously going to face head winds again regulatory speaking like there's antitrust talk and all these things going on, you're going to see a reflection in the stock market in that case, so i don't think it is a surprise. >> what do you make of at least my premise that the biggest threat facing big tech is not some small startup up start with

new technology that will blow them out of the water, it is other big techs and government that's different than things we have seen the last 15 years. >> we said that, and found google suddenly appear i don't ever discount the startup coming into the situation. so no, i don't agree with you on that >> do you have any in mind >> no, unfortunately, i was just talking about this on my podcast recently, there aren't any a lot of big tech remind me of three giant trucks going down the highway, a three lane highway. say facebook, amazon, and google and they're literally blocking everybody else, so nobody can get by them. it is hard to get around them, there's no true monopoly because they don't compete against each other exactly. so i think it is hard for innovation and i don't know what will change that that said, i never count you never knew facebook would come up or that google would come up or that amazon would come up. i always assume at some point there's going to be another

innovation this time it is not from this country, it will be from china or some other country, india or somewhere else >> ways gets created by israel and bought by google that's been going on for years. >> i think china leads the way in innovation, i think they're investing in computer science, in innovation, in startups that's who we're going to see challenges from in terms of who controls the next internet age of automation, ai, transportation, major critical issues china is the competition. >> do you think we're behind or ahead losing our lead? mix of the two >> i would say it is a mix of the two. i think they're way ahead in terms of where it is going where the puck is going, china is there this country with lack of investment, the administration still doesn't have a head technologist, head science person making any investments in

infrastructure necessary, doing any of the federal stuff that's necessary. and on education, just in education alone and these immigration policies, all spells for disaster ten years down the line as far as i can tell. >> i get all of that, kara, but on the flip side, it is one of the biggest driving longer term things around the trade war and tariffs put in place, too, no? >> i'm sorry, that's an argument over plastic toys. we are talking about the future, investments in ai and everything else i think it is just we're not thinking about where it is going, especially in infrastructure self driving, things like that we need to have real federal movement on some of these technologies and you're not going to see it from this administration at all. i don't imagine they can do this so they are busy obsessing on fake news and the media's fault and all this i think what we need to do is have at least congress or state start to really understand how

important investments in technology are going forward, especially the next technologies, but who's to say i see the short term with the tech companies which are very powerful, it will probably rebound because they're in good position as jon said >> i had to ask you about the piece in the times about tech leaders that are not letting their kids have cell phones, have contracts with nannies to limit social time. a, do you buy it, and b, how much of a tight shift is that in the valley >> it was a great piece, interesting piece. this issue around screens. it was a do as i say, not as i do kind of thing it is an interesting trend i think a lot of people are concerned as parents how to use -- how much screen time kids should have. it will not be surprising tech people are the same way. they don't want their kids immersed in these worlds but it is sort of an interesting irony i guess. >> kara, finally bringing it back to the news of the day,

when you see ibm, redhat and sales force, mule soft, microsoft, get hub, what has been the impact of open source if you draw it through to 2018, and now the fact that everybody is taking it for granted it is not a disruptive so much as hey, it is table sticks >> absolutely. it was a natural buy for ibm an interesting trend you'll see more purchases and people going public as we talked about. this saudi thing will have reverb reverberations will they be succeeded into massive fundings, i think you'll see more deals and it is important one for ibm and it will have reverberations around other companies in the sector, no question. >> thank you, kara swisher always great perspective sticking with news of the day, when we come back, biggest

tech deal of the year. why ibm made red hat the largest acquisition ever is now the time to add big blue to your rtpofolio? two analysts debate that after the break.

good morning, once again, everyone i am sue herera. here's your cnbc news update at this hour.

another suspicious package addressed to cnn intercepted at an atlanta post office, according to the media president. he says there's no danger to company headquarters. a north carolina high school student fatally shot another over a disagreement, prompting a lockdown and chaotic scene as parents anxiously gather outside the school the suspect quickly arrested the male victim died at a local hospital. a honduran migrant died of a head wound sunday after a group clashed with mexican police on a border bridge between the two countries. u.s. officials say the military is planning to deploy 5,000 troops to the southwest u.s. border in anticipation of the arrival of that migrant caravan. english soccer club confirming its popular owner among five that died when a helicopter crashed next to the stadium over the weekend it happened after a premier league game.

the owner is a thai billionaire, he was 60 years old. that is the news update this hour back downtown to "squawk alley." carl, i will send it back to you. >> sue, thank you very much. we have a programming note this morning with clocks falling back overseas, the european markets close an hour later than usual. catch the global markets report 12:30 eastern time on the half this week before it returns to this hour starting next monday >> get that extra hour of sleep this upcoming weekend. very exciting. rebound rally taking place for tech stocks, sending the nasdaq up. bertha coombs is at the nasdaq with a look at some of today's movers. >> hey, morgan we're seeing a broad market rebound with the most beaten down sectors and asset classes leading the way. the chip sector remains in bear market territory but is fairly strong, down 20% from highs. the communication sector and small caps remain in correction. that's where we're seeing the strength this morning, among big

leaders, small cap names, including e health, the broker extending gains from earnings last week, hitting a four year high teladoc will expand use and reimbursement with medicare plans with seniors large cap tech and communications remain in correction and are mixed facebook still up, apple ahead of its earnings tomorrow, apple will have a product event and earnings thursday. we're seeing highs slipping a bit, seigal eing alphabet down and amazon on pace for the worst lost in a month in ten years responsible for 20% of the nasdaq 100 losses for october. that stock continuing to weighing down the sector and technically very, very weak,

despite fairly good earnings last week, but folks didn't like what they saw in guidance in terms of future revenue growth on the other side, tesla powering higher again with the best monthly gain in four years. up nearly 10% of 2018. elon musk says he is taking a break a few days from twitter, remains unrepentant of the tweets last august about a sale, saying today the $20 million fine from the sec and being required to step down as chairman were, quote, worth it the stock is certainly up. jon? >> that endorsement from larry ellison didn't hurt either ibm and red hat soaring. the ibm ceo discussed how the $34 billion acquisition will help big blue's cloud play. >> we've been investing in cloud a long time. $19 billion cloud right now, and

this is what makes us number one for this next chapter of the cloud. >> joining us now, partner and senior analyst lisa ellis. and hardware analyst that has a buy on the stock welcome to you both. lisa, you have a sell. price target is 140, well under that now and you like this deal so why not a hold? seems like there could be up side if they actually execute. maybe ibm trims back other businesses >> look, there's work of course to work through exactly how the synergies of the deal will weigh out, but the top line is that at the end of the day, despite it being an attractive, compelling large deal, by far the largest one ibm has ever done, it doesn't solve the core problem that ibm has or make a lot of

progress in solving that problem, which is that ibm still has 40% of revenues in structurally declining areas of enterprise it, areas that aren't coming back. they can extend the trend on those areas, but collectively that group of its revenues, this is on premise license software, traditional data center outsourcing, hardware maintenance, it is over 20 billion in revenues, closer to 25 billion, and it is collectively declining 8% not coming back. that's the issue red hat, as much as it helps reposition that cloud portfolio and push more business into that place, only moves the needle slightly adds less than 4% to the top line >> lisa makes a compelling point, but i am reminded of microsoft. it is not like the math changed that much overnight but sentiment changed dramatically because the story changed.

is this a story change moment for ibm? how long before we know for sure >> this deal has the potential i think to re-cast ibm from being an all legacy anchored company to something more tied to the customer narrative and hybrid and off premise solutions. i think fundamentally this recast that narrative to transform the story. how soon would you know it deal doesn't close until mid 2019 i think you have to see until then to see the fruits of the transaction. >> lisa, ibm's culture is a storied one. we look at companies that are used to doing big deals and integrating them or leaving them alone. sort of have reflexes.

i have questions how this sales force goes to market with red hat, which product is for who. is that an issue to be concerned about? >> that's the top issue. if you listen to their call today, the majority of questions on the call were coming at that question different ways because the challenge is on one hand by far the biggest synergy should be the ability to leverage massive ibm sales and distribution engine. on the other hand, red hat is switzerland, it has major partnerships with ibm competitors in cloud, aws, google, microsoft azure, so the company is trying to walk a careful line saying we're not going to integrate red hat, we're going to leave it stand-alone, maintain the partnerships with other players, but at the same time get all of these revenue synergies from selling it through the distribution engine. the devil is in the details. which is it going to be.

>> we are asking why red hat is not trading closer to 190. >> i will say two things, the deal doesn't close for nine or twelve months. there's a bit of a time lag. second, on these larger transactions, on china approval and i think those are questions we have seen on why the deal is trading at discount. on china, our understanding, we don't think they need china approval to get the deal done. >> lisa, same question to you that i raised earlier this hour. is this going to spur more deal making more broadly >> that's a good question. it may certainly where we have been looking for more deal making potentially is in the services space because as ibm highlighted and part of the impetus of the

deal now is that cloud and digital are sort of moving out of the early phase and into the steep part of the s curve, beyond that first 20% of adoption, which was more cios trying out technologies and they're going to full scale adoption when you move in that zone, all of a sudden maybe the smaller companies suddenly needy no enou scale. we're looking at it on the software and services side that's another area that will be interesting for ibm to look at acquisition would be on the services side to boost their services capabilities around cloud and digital. >> along those lines, one of the themes i see emerging this year is multi cloud and how to manage it we saw it with microsoft launching opendata with adobe, sap a month ago. we see it with sales force, dealing with multiple clouds

how do you think this plays out, does it take big customers choosing multi cloud strategy, saying we want open data or we're going to go with a provider that can let us play in these spaces before we see who ends up winning, choose our solution for flexibility. >> you know, this is a big thing going after the red hat deal enterprise customers getting to what you would call chapter two of the narrative, they need not to be locked in. they don't want to be locked in to microsoft or google at this point. anything that gives them flexibility to jump across infrastructures becomes crucial. red hat is one of the few to enable you to do that. for large enterprises, avoiding lock in is very, very important. >> all right thank you. we're going to see how it works

out. coming up, nhl striking a partnership with mgm the commissioner gary bettman and jim murren join us but first, rick santelli what are you watching? >> only subtle, but watching interest rates from a three and a half i don't see yield close friday interest rates remain buoyant. how are they effected moving forward with the jobs data we'll talk about that after the break.

scott walker here's what's coming up top of the hour debating the market's next move. one market firm makes a call on the next direction it is a story you need to see. and for shares, one analyst makes -- ford shares, one analyst makes a call and john rogers here for an exclusive on names he is picking up in the selloff. carl, about 15 away. see you at the top of the hour >> scott, thanks. let's get over to cme, get the santelli exchange. good morning, rick >> good morning, carl. the big news today is that interest rates, although they fell to a level we haven't closed at since early october, 3.08 close friday, they're under 3.11, which by all technical accounts seems to be one of the important, pivotal areas for interest rates keep in mind simple issues like

the 3% level itself is big psychologically. we look at what's going on in europe, rates are lower than they finished last year. and starts to hit home we close at 43, on boones, trading under 40 trading at a level of 3.10, which is only 13 basis points away from a seven year high yield close. this is despite all of the volatility whether it is central bank meetings or big jobs report, gdp reports, the biggies, we see a blip, an ekg of the bond market. it wouldn't be out of the ordinary to go into wednesday's adp and friday job report. if it is strong or wages pick up, likely we jump back up to the high three teens many believe 3% is the down side

support should the jobs report disappoint the other big deal, issues of exit when you consider how wide disparity is in our rates versus key rates of japan, china, germany, it is going to be a big job having the central banks try to get along in an exit like the u.s. you think of what's going on with trdraghi, how he is likely gone in 2019, angela merkel not running for party chairmanship in december, likely we'll see major power changes. with angela merkel and mario draghi, what it underscores is a dynamic around the globe that traders need to pay attention to, whether it is tea party, whether it is brexit, whether it is what's going on in italy, whether it is what's going on in general about big government versus less more localized government and national trends that go with it, these certainly

seem as strong as ever, and certainly angela merkel paid a price. as a famous first female chancellor, she goes down in history with good marks. how will the economy fair in her absence. jon, back to you >> thank you. up next, nhl making a bet on sports gambling with the tie-up with mgm reports, gary bettman and jim muenrr in less than three minutes. more "squawk alley" after the break. i am a family man.

i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome.

the nhl announcing a sports betting partnership with mgm this morning we've been covering that story from the beginning and joins us from new york. hi, eric >> reporter: that's right, carl. here we are with commissioner gary bettman of the nhl and mgm chairman and ceo jim murren fresh off announcing their official sports betting partnership between the organization and the league, it's the first one that the nhl has done thank you for coming me. commissioner bettman, no secret you were against sports betting for many years the supreme court made their decision and now you're doing this deal. is this more than just money >> this is a recognition of what the state of the world is and it's an opportunity for us to engage our fans in new and

different ways and maybe attract new fans the supreme court ruled. we have to adjust. >> reporter: jim, you did a deal with the nba none is exclusive. it allows your competitors to get involved, too. how does it make you feel you haven't locked up the category >> we feel access is everything. we never entered into a discussion about exclusivity this is about fan engagement, about creating a great fan platform and just like a great hockey team, mgm wants to win on the ice. i like our chances against our competitors. >> reporter: commissioner bettman, the nhl has many more canadian teams how do you balance a deal that's more domestic than the entire nhl footprint? >> you have to deal with the realities of the law of the legal environment in the u.s. has recently changed and we've had to adjust. in canada we've been dealing with the provincial lotteries that control the betting in

their provinces. it's been done on a paramutual basis. number of bets at a time there are a number of things whether it's national television rights or sponsorships where we have to do things that are specific to each country >> reporter: you did the nba and now the nhl. the logical question, who is next are you trying to collect all four >> today is all about hockey >> reporter: commissioner bettman, the players, there's been some concern that maybe their privacy might be at risk because people want injury data or they will want more information about players playing and their behavior what do you tell the nhlpa to keep them safe >> we've been in discussions about tracking data for years because you're view had to invent it and it's still being worked on was about a brad cast

enhancement and another screen experience where fans could connect and get data on the game this is more a secondary usage we've been in discussions. the players share 50/50 in the revenues we developed. having a direct relationship with an mgm gives us ability to control how the data is being used which is vitally important to us and we assume to the players. >> reporter: our morgan brennan has a question >> thank you, eric this question is for jim i want to dig into these partnerships a little bit more deeply be it the nhl today, the nba, what does this mean for investors? when will they see profit from this >> well, we believe the fan engagement is everything we're in the for profit business and expect to make money in this

venture. it is not the end game the end game is to develop a closer relationship whether they're hockey fans or not so they visit our resorts i think the whole direction whether it's content of sports or live entertainment is going to be the future for mgm >> jim, i know you're not reporting earnings until after the bell tomorrow. given the fact there has been so much potential slowdown in china, what is your perspective on the gaming market right now >> as we've said all year, we expect to be -- have a very strong year in 2019 and we still believe that >> commissioner bettman, jim

murren, so we know this is still early gains, early in the post-supreme court decision. what is the best scenario in this partnership >> you were at the announcement. this is broader than just sports betting. this is an opportunity for us to bring our brands together. this is a resort destination, official category designation for mgm as well. we're going to reach out to our fans and customers and work together for the satisfaction of both >> reporter: thank you for coming on cnbc and announcing this brand-new partnership it's a whole new world carl, back to you. >> eric, thank you the dow hanging on to a 150-point gain jpmorgan leading up 3% amazon below 1,600 for the first time since may

apple will be holding its second product event in new york city where the city is expected to announce new versions of i d ipaipa ipads. be sure to tune in tomorrow on

"squawk alley. i will be there reporting live from the event >> i think it's the first new york city event for apple since 2002 it's like a big deal, right? >> it should be interesting. amazon not helping today we'll see if the dow holds its gains. let's get to the judge the big call on the street that says a big rebound is coming and what that might mean to your money. it is noon and this is "the halftime report. is today your opportunity to buy the big dip? the note that says it may be safe to get back in the game setting set for a new round of big cap earnings and the call of the day, the other stocks in the driver's seat "the halftime report" starts right now. welcome. good to have you with us on this