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good tuesday morning with me, morgan brennan, david faber. carl is on assignment. markets are turning around in a negative way the dow was up earlier. s&p down nearly a half percent and nasdaq down 1% even. turning to tech earnings, major names on deck with apple today, amazon, facebook, microsoft set to report. twitter, snap, alphabet are next week our next guest saying some social names should expect revenue decel. with us now for more, mike and

mike michael nathanson, and senior markets commentator mike santoli. good morning, guys michael nathanson, first, what to look out for with advertising driven names we have been talking so much about china, but these names have little china exposure is it all up side or are there potential points of concern? >> i think this is a proxy for global growth ex-china europe is a big component of digital advertising. the uk is a big component. what i am worrying about is slow down in uk retail sales that filters down to online advertising. germany, italy, france what i am picking up is that outside the u.s., some of the more stable western european markets may have slowed down as fourth quarter played out. so it is not a china issue, it is western european markets, consumer spending is slowing.

>> i am surprised you're not bullish on facebook, given how far it has been in recent months >> we downgraded facebook over the summer we looked at it, said facebook is a terrible setup where you have revenues decel rating 25, 26%, expenses up to 53%. operating profits, there's no operating profit growth. they have to convince me and the market that the move from news feed to stories is a creed oh. maybe sometime you'll get evidence this year whether it is a good trade >> i want to go back to slow dounlz down advertising spending in europe is that a slow down of growth or more gdpr, privacy rules put in place? >> we have not picked up a lot of negativity on gdpr.

to me it is about the economy. consumer confidence and spending talked about a real slowdown in the uk, sounds like consumers have gone on strike in some markets and where you're looking to sell web based or mobile or performance based advertising, if consumers aren't buying, no reason to put money to work when there's not a click to buy that's what's worrying me. it is not the u.s., it is the rest of the world. and china is not my problem. gdpr is in the background but that's not the reason it is happening. >> mike santoli, netflix's report was positive overall. how important are facebook and google, google is next week, but start with facebook since it is this week, sense of market momentum used to be faang was important to that overall. not any more >> i think we broke that theme of faang has to be the leader. obviously all of the stocks are

down quite a bit off highs apple tonight obviously not in traditional faang, but is an interesting test of how low expectations have gotten weak bounce off lows from january 4th. >> still matters, even though it has its own story. >> not because it is a bellwether for the market, but as risk sentiment, i think it matters. facebook is similar situation. it is a change of narrative from these are bulletproof business models that can grow in any environment to check out what sensitivities they have and what are the challenges i don't think it is all or nothing trade, how these go. but the overall market is trying to figure out how much slowdown we priced in across the board and that's what the earnings season is trying to hash out >> can i say it was easy to recommend facebook it was easy. growing 42%, expense growth, margins are expanding fast last year the narrative changed.

we are all trying to figure out what's the new narrative and story line that's a tougher call. i think google is fine >> i mean, the argument on facebook for buying, even with reduced growth and higher expenses, margins are still strong when you look for top line growth rate in double digits, you're going to get it at a reduced multiple. >> i am worried about regulation the question is what does the u.s. government do on regulatory change you have california rules kick in next year, gdpr, are we out of the woods regulatory. we talked last time about potential changes to u.s. policy on privacy that's unknown we need to get through that. that's new for technology. >> what about amazon and its advertising business which we focus on each time it reports earnings is it expanding the pie or cutting into market share? >> so greg miller covers amazon retail for us.

it is a little of both they're also growing the pie from other types of advertising. things like below the lines, in store marketing, coupons, that's going to amazon. i'm not seeing the source of apple of facebook's woes, but that's more aware of like the focus is can this happen, slow down growth more than we think on two of the names. >> mike, you talk a lot about faang stocks but microsoft has been a strong performer in the last couple years. should we be paying attention to their earnings, given that they're more enterprise facing, less consumer facing, less exposed to data and regulatory uncertainty? >> i think we should pay attention to microsoft mostly because it has been such a strong performer and it is revealing what's working in this environment. software in general, other things have fallen away, social media have trailed off, semi

conductors rolled over, it is software that's been that last high ground for the nasdaq >> what i'm wondering about where microsoft is concerned, to what degree the cloud was effective by the china slowdown and some data center issues. it was said that microsoft and amazon both slowed down hardware purchasing during the quarter, and that effected micron and intel and others but did they slow it down just because they bought enough ahead of time or did they slow it down because they saw the top line slowing down >> was it a lull in the investment cycle for cloud and do you think microsoft has an answer to that >> the numbers should give an answer, if their growth rates continue to be strong. do you see similar read throughs or tells in any other stocks in your universe? >> we cover media as well. media, we're looking forward to

first quarter commentary fourth quarter, they don't cancel fourth quarter advertising. with auto sales and political cycle ahead this year, what happens in first quarter we're focused on guide for first quarter for all of the names >> all right thanks former trump adviser roger stone entering a not guilty plea at his arraignment in federal court. eamon javers is at the white house with the latest. hey, eamon >> reporter: good morning. that not guilty plea a couple minutes ago from roger stone's attorney at federal court. look at the federal courthouse where that's going on now. it is an opportunity for roger stone to publicly hear charges against him, which includes one count of obstruction, five counts of false statements, one count of witness tampering seven charges overall. you see the crowd gathered outside the federal courthouse, pro and anti-roger stone

people are in attendance at the courthouse today roger stone's camp is defiant, saying he will fight charges stone says he feels it is politically motivated. we'll wait and see what else he says during the course of the arraignment. but the white house has been distancing itself and the president from his former adviser, roger stone, and their decades long relationship. here's what sarah huckabee sanders said yesterday at the white house. >> charges of that indictment have literally nothing to do with the president and have to do with his communications with congress so in fact i think the further we get into the process, the more and more we see this has nothing to do with president trump. >> reporter: sanders saying it has nothing to do with the president. politically, though, it presents the president with a challenge here, ultimately how does he respond to the arrest and indictment of a former adviser, what does it mean for the future of his presidency. we wait and see what additional

details we get from this, and then the big question is when will robert mueller wrap up the investigation. the acting attorney general suggested yesterday that could be coming soon, but no word on what soon might mean, guys back to you. >> one to watch for. eamon javers, thank you for bringing us the latest on the story. pg&e filing for bankruptcy aditi roy is at their headquarters with more aditi? >> reporter: hi there, morgan. pg&e filing for bankruptcy, a move expected for weeks. in the filing, they requested authorization to continue paying employee wages and benefits, to continue existing customer programs also to maintain operations, they're asking for $5.5 billion in financing with several banks. the interim ceo saying we believe the process will make sure that we have sufficient liquidity to serve our customers and support our operations and

obligations. meantime, california assemblyman chris holden, chair of the utilities and energy committee, it was always my hope to see pg&e not find itself in position where they would file for bankruptcy he will continue to work with lawmakers and the governor to protect fire victims some top investors immediately effected are the largest shareholders, including blackrock, van guard, state street corporation, t rowe price, and others. there were reports that a group of investors, one led by elliott management was pitching a plan to pg&e to prevent it from bankruptcy and also we have been hearing from blue mountain capital that says it will nominate a full slate of directors in coming weeks. they call that bankruptcy filing reckless and irresponsible the filing comes days after pg&e was cleared from responsibility for the 2017 tubs fire which lowered the liability burden to

$10 billion according to some analysts dozens of rate payers showed up at a regulatory meeting yesterday and quite outraged at pg&e the saga continues >> tough business for them thanks. coming up, what former starbucks ceo howard schultz told cnbc last night about his presidential aspirations. and after a dip in chips, tj rodgers is with us on how the sector can get a turnaround. "squawk alley" back after this break. i'm a veteran

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in terms of earnings, 74% of companies beat earnings estimates, 24 have missed. 24 beaten on revenues. earnings misses, again, 24%. that's something to keep an eye on also, developing now, we see a bit of a move in terms of where we're seeing earnings growth coming from. blended earnings overall for the s&p 500 are going to be up by 14%. that means if 76% perform as

expected, we'll see earnings growth fourth quarter. revenue picture up 5.6%. we're seeing a healthy season developing as for sectors to keep an eye on energy, presenting the biggest gains, year over year. up 60% in terms of earnings growth industrials up 26% and consumer staples up around 3% and the biggest laggard in terms of earnings growth or declines is the utilities, down around 11% in all remaining companies there's the status check on earnings it is shaping up well. now, david, it is all about what forward looking guidance is. shares of nvidia extending yesterday's losses after the company lowered revenue guidance for fourth quarter of 2019 you can see another 3% saying it was turbulent and

disappointing. the global economy decelerated sharply, particularly in china which hurt consumer demand especially for gaming chips. we also heard from tim cook, bob swan those and others >> as we look at what's going on in china, it is clear that the economy began to slow there for the second half, and what i believe to be the case is the trade tensions between the united states and china put additional pressure on their economy. >> whether it is u.s., china trade, whether it is u.s. government shutdown, whether it is brexit, as we enter 2019, we see a little cloudy macro and geopolitical dynamics that weighed on outlook for 2019. >> these are not micron specific industries we expect them to work through over the next couple of

quarters >> joining us, founder and former ceo tj rodgers. nice to have you how important is the chinese market for chip makers here and everywhere >> biggest customer in the world. china, it is where everything gets made. that's where you ship the chips. >> and so what do we make of a slowdown and what do you make of it in terms of how long it may extend and if you want to weigh in on some stock prices, given you saw your shares of ups and downs at cypress semi. >> all right so first, a short anecdote i remember first quarter of 2001, that was the dot com crash, we booked prior quarter, had done a billion dollars in revenue and bookings for first quarter were $87 million book available 0.1

compared to that, there's nothing happening. i heard the word tepid a few minutes ago. that's where it is at. with regard to china, there's two theories one is trump's actions against china are having impact and they're going to have to deal with it. alternatively, china, maker of all electronics for the world is seeing less in demand for electronics and slowing down on chips. i don't know which it is >> tj, you laid out the case that china needs chips in general, will continue to need chips. i guess the question for me and maybe for investors, how many is it going to need near term, given that gaming pcs are slowing down, high end phone sales from apple and others appear to be slowing cloud hardware buying appears to be having a downturn could all of that play out for several quarters in the chip

sector >> well, the new ones going around, semiconductor disease tends to last three quarters if you have it. i wouldn't worry too much about nvidia, they make specialized chips, bitcoin mine, stuff like that okay that's down. apple makes thousand dollar phones, people are careful on thousand dollar phones the one i would watch more carefully because it is a better indicator is micron. they make all kind of memory, biggest memory maker in america in my opinion, the best in the world, and if they're slowing down, you can scale the number of electronic products china will make by watching what they do >> tj, to put a finer point on it, in december on cnbc you said we have been in a tech super cycle for a long time now. i don't see anything fundamentally wrong in the space. is that still the case >> absolutely right.

the semiconductor industry is consolidated, still consolidating. the companies that are left are bigger and much more profitable. one of the things i see is that earnings are better than expectations, and revenue slightly less than expectation but micron was the bottom end of guidance and guidance was tight. intel missed by .4, so the revenues are weak but earnings are fine if you believe in price earnings ratios, things are still fine and will remain fine because the industry is stronger right now >> finally, you bring up a driver of semiconductor sales. how long should investors expect to wait, outside of ip creators that start getting paid up front, for that to drive significant volume in the semi space. >> i don't see that this year. you know, i'm like everybody

else, i have v 4, it works fine. i am in no rush. if i'm nervous about anything, i wait. >> 2020, 2021? >> 2020. start seeing it in 2020. >> all right good answer. specific i like that. >> we appreciate you taking time thank you. >> don't hold me accountable for that, huh? >> only bring you back and remind you of it endlessly, don't worry. major averages are mixed after stocks fell in yesterday's session. s&p and nasdaq breaking three day win streaks. still on pace for the best month in a year. more on this morning's movers straight ahead but first, take a look at the worst performing stocks in the dow so far in today's session. visa, verizon, microsoft among them more "squawk alley" is ahead don't go away. his family. his steinway, which met a burst pipe.

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former starbucks ceo howard schultz speaking to andrew sore kin at abarnes & noble event i new york to promote his new book he spoke about presidential aspirations for 2020 and plans to run as an independent take a listen. >> if i decide to run for president as an independent, i will believe and have the conviction and courage to believe i can win. i can't answer that question today but i'm certainly not going to do anything to put donald trump back in the oval office we will see over the next three months if we can ignite a national movement for a better choice >> schultz also addressed the president's recent texts over twitter. >> i think president trump is a very insecure man and that insecurity is manifested with all of these attacks which i

view as weakness, not as strength so we're not going to get in the mud with him we're going to do everything we can to represent the american people with dignity and respect. it is a question that i understand and people will have a natural feeling, but no one should doubt whatsoever the toughness and rigor and grit that i have to do everything i can to represent the american people well. >> i don't know, sounds a little like he's getting in the mud as he gets ready to throw his hat in the ring. >> that's not muddy, but i wonder about that aspiration, given the politics of today, to stay -- you may not get in the mud, but you're going to have mud all over you i wonder how that sobriety, that sense of remove might play in a general election >> absolutely. i know andrew also spoke to him, asked him multiple times why the decision to be independent rather than to run on a democratic ticket.

he spoke to that it's going to be interesting we have more people putting their names in the ring now for the 2020 election, and it would seem potentially we have more and more billionaire and self made people putting their names in the ring. i think back to when romney was running against obama, he wasn't a billionaire, but just the fact that he made a lot of money was such a bad thing now you have folks that are coming out potentially on tickets, touting it as a good thing. things have changed in america conversations are changing something to watch >> although we seem to have polarization of both parties what i hear from schultz's camp to the extent he has a camp, it is very early. if he is polling 1% or 5% come 2020, not like he is staying in the race so everybody should calm down.

that's what i'm being told. >> drinking too much starbucks to calm down. european markets are closing. seema mody has the latest on the action today >> european markets are slightly down oh, closed higher as investors are awaiting talks to commence in washington. we have some new data on french consumer confidence which showed that consumer confidence rebounded after a slump in december, due to those yellow vest protests. some earnings in focus, de beers, 20% drop in sales due to slower sales of lower cost stones and analysts point to we weakness in china as a factor. now, french luxury retailer lvmh is reporting results in a half hour the street has been bullish ahead of the release morgan stanley sees three key issues going forward first, competition from online players, particularly in china

competition from you will at that -- from ulta. they have underperformed in the luxury space so far. morgan, sending it back to you >> thank you. let's get to sue herera for a news update. hey, sue. >> good morning, morgan, good morning, everyone. here is what's happening at this hour the director of national intelligence, dan coats, says north korea is unlikely to give up nuclear weapons capabilities, despite recent moves indicating it was open to such actions. he made the comments before the senate intelligence committee a bit earlier this morning an annual report card of government corruption worldwide knocked the u.s. off the list of top 20 cleanest countries. the watchdog group transparency international faulting the u.s. for what it calls threats to the american system of checks and balances > denmark led the survey as the

least corrupt in the world. angela merkel accepting the fulbright prize. the award citing her leadership and strong commitment to international cooperation and peace. and kohl's collaborating with newly rebranded weight watchers international now called ww to test wellness initiatives. the plan includes the debut of the first in store ww studio, which will be in chicago you're up to date. that's the news update back downtown to you guys. morgan, back to you. >> sue herera, thank you when we return, all eyes on apple in today's trading with earnings just hours away it is lower now, down a half percent after being up nearing 1% earlier in the session. tim coats' revenue warning earlier this month, tell you what the street is expecting from q2 guidance this afternoon on the heels of that more "squawk alley" straight ahead. stay with us

welcome back the justice department and the latest >> the crackdown on huawei reached a critical stage, now facing extradition to the u.s., it will play out at the highest levels of governments before trade talks are set to resume. the charges parking lot of a

sweeping set of charges by the trump administration unveiled yesterday, accusing the company of stealing trade secrets and violating sanctions. china hit back overnight the foreign ministry urging the u.s. to stop the, quote, unreasonable suppression of huawei next, canada will review the request from the u.s., then there will be extradition hearing where a canadian judge will decide if the evidence is strong enough for conviction along the way, steps can be subject to appeals american and canadian authorities insisted that the case is a legal matter, but that's been repeatedly undermined president trump said he could intervene if that would help trade talks. just as weak, the canadian ambassador was fired by trudeau saying it would be great if the u.s. dropped the extradition request, suggesting that president trump's political involvement could give him a strong case to fight

extradition. huawei is facing many threats to business around the world, in addition to the u.s. charges the u.s. is pressuring allies to ban equipment on the grounds of security concerns. and one of the largest wireless carriers stopping its huawei purchases. >> this process in terms of extradition sounds like it could stretch a long time. any guidance on what the time frame would entail >> there's a 30 day deadline, where the canadian authorities have to approve that request, and then she's due in court in vancouver to set dates for extradition hearings that happens the beginning of february we'll be watching those along the way. a time line should emerge once she appears in court. >> thank you shifting focus to apple, the company is headed to a crucial earnings report after the bell today, with the stock more than

33% from the october highs josh lipton has more on what to expect from apple. >> morgan, apple preannounced q1 results this month investor attention turns that forecast the street looking for revenue of $59 billion some analysts say that seems conservative enough. others aren't sure i did catch up with gene munster to get his take. he thinks apple could miss that q2 bogey in part because many miss being themes apple emphasize continue, and that could keep rippling through the financial results he says. i spoke with apple ceo tim cook about china specifically take a listen. >> what's going on in china. it is clear the economy began to slow there for the second half and what i believe to be the

case is the trade tensions between the united states and china put additional pressure on their economy. >> they're heading into the print. some analysts wonder if other factors are at work beyond the macro. they wonder if chinese consumers are starting to balk at higher iphone prices, wonder if they're angry at the trade war, boycotting some high profile american products. we will have some insight when apple reports after close today. >> josh lipton, thank you. for more, let's bring in managing director of equity research dan ives and steven manulovich dan, i will start with you in terms of the warning from apple, have they set the bar low enough or do you anticipate more pain to come >> i think more pain to come,

specifically around china. they decide to cut prices or not, what the street is looking for, it is really about the price cuts i think given lack of transparency, this is going to rise and fall with china 20% of all upgrades for the iphone i think blaming the macro card like cook did is frustrating investors want them to take blame, take the medicine, and what's the strategy going forward is the key for investors. >> what are your thoughts, what are you looking for from apple after the bell >> i would be cautious you've got three issues to address. what's going on in china, is it just the economy or shared loss, deceleration in services the bulls aren't pushing services but it is decelerating. and third, even in developed countries, you have weak upgrades that's people holding on to phones longer. i think the stock might react

relatively well if they don't guide below 57% of revenue, but i think it is range bound. >> do you know how apple is calculating service margins, what goes into the cost line for that if you're talking about the app store or talking about apple care >> you said the number one thing are high margins on services given more about how they're calculating arduous margins, double that of hardware march jin -- margins, we view the service business on stand-alone basis, worth 400 billion. the only way you get there where the street gives credit, more transparency on the margin it all starts tonight. >> are they going to give more detail on margins?

>> we believe they will, specifically on the services side if they do not, that would be a major gut punch to the multiple and the stock, given that units metrics was taken away the services margin, take away everything, that's the focus that's the key to valuation. >> steve, cook communicated around lowered guidance significantly, did a few interviews with jim cramer and the like, and a call do you expect there will be more communication than typical in this call as well? >> i think they have to explain themselves perhaps more than they have in the past. i think investors are concerned, maybe they lost a little control of the company apple it sounded like they expected iphone growth to continue in the foreseeable future and that's not happening. just today, a note is out saying next year's iphone units are probably high. you have new customers declining, and i don't think you'll get enough upgrades to make up the difference more transparency would be great

here >> dan, everything that's going on around huawei now, adding to tensions between the u.s. and china, is there any reason to believe that can have blow back or impact on a company like apple? >> we think 80% is apple specific 20% of it is a backlash that you're seeing inside china head winds have hurt apple but i think that's why right now cook is speaking for a lot of u.s. tech companies tonight where investors are focused. given nvidia and intel, china is the key and apple is caught in the crossfire. i do think backlash impact versus pricing is what investors are trying to parse out. >> steve, my read given what we heard from nvidia about high end gaming chips being on the slowdown, what we heard from intel seems less an apple specific issue than it did three or four weeks ago.

what's your sense of that? >> i think there's a number of things going on. china is weak for everybody. there's question with nvidia and others whether hyper scalers are slowing purchases, which doesn't effect apple too much. the other issue that is apple specific or relative to their market is the consumer market. we call it watch the gap we're in a bit of a gap period in terms of new consumer technology we see 5g, foldable phones, ar glasses which cook refers to, but it is still a few years away, and apple is not likely to be a leader in the next set of phones for fall. there are a number of trends, and some of them apply to apple. >> is apple behind the ball on 5g >> they're behind the ball on 5g clearly in terms of late to the game, what's going to happen in 2020 where they're late to the game is content in our opinion that's been the major misstep for cook and apple and they're paying for it. we continue to believe, even

though it is not their dna, large acquisition of a content player, traditional studio means they'll be pressured into. >> why are they pressured into it >> because fundamentally service is the key to the story. look what's happening on services side, given what's on the installed base, you need more services to put in the installed base right now talk about streaming music and gaming in our opinion it is content stand-alone streaming content service. that's something where they missed the ball on that's another thing tonight to see in terms of cook, will there be tea leaves on content, how they're focused on it, in the contents arms race with netflix and others. >> inventories, how important are those given what apple warned about specifically, i imagine that will play big into what their guidance is and what it means >> yes they're not giving us information any more on units or giving a sense f inventory and channel is hopefully they'll give

qualitative around that. clearly there's inventory they had to work down in the quarter and caught revenue on a sell in basis. clearly that will effect march guidance people have to get comfortable beyond march, have to think about the next product set, are they going to have more services my view is stocks should be valued on a parts basis. i think it is opposite the whole is worth more than the sum of the parts i don't expect a big content acquisition. not sure it is necessary they have to have a new hardware at some point in the future. >> more will be revealed in the next couple hours. thank you nor joini thank you for joining us shares of game stock getting crushed. we'll tell you why next. first, rick santelli, what's on your mind today? >> you know, with the partial closure now in the rearview mirror, we heard from the ceo of the congressional budget office. there was a lot of information

how much it cost but also lots of information about the debt and deficits. after the break, we're going to talk about the notion of deficits are we really serious about tackling them? you may be surprised nen tethbrk.

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square shares reeling. is it a golden opportunity to buy thatstock or a warning to stay away. and steve liesman tells us what jay powell is likely to say and what it means to your money, all coming up at noon on the we'll see you then sounds good. as we head to break look at the nasdaq which is down about 1%. amd, nvidia, electric art, microsoft and amazon leading that indexow ler we have more squawk alley after this break a luxury car more teched out than silicon valley? with a cockpit fit for aspaceship. hang on. radar that senses things the human eye can't. busted. and the ability to make a thousand decisions before you even make one. was all this, really necessary? what do you think? ♪

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simple. easy. awesome. losing circulation in my fingertips just looking at that scene. let's get to the cme in chicago where the wind chill is expected to be below 50 below zero. rick santelli. >> frigid temps, that's for sure about four weeks ago every one of you watching or listening on radio probably made a new year's resolution the thing about resolutions is we have the best of intentions but most of the time we don't make it this far before we realize that what we wanted to do isn't what we're going to do as much as something we want to

do i look at deficits and actually tackling them in a similar way consider this. i'm not picking on mr. schultz, former head of starbucks and potential candidate for president. the issue i have to showcase him is that moderate to many americans is good. no matter which side of the center line you are, moderate to the left, moderate to the right, centurists candidates probably have place in the landscape. i continue to say there's been various market moves that give us a glimpse that investors understand that the pile in washington has huge imply kaicas for the economy and the market in order to tackle deficits has to tackle entitle ms mr. schultz talked about the 21

plus trillion deficit and how free things like health care just aren't real istic. the notion is it can't fall on the backs of the government. it has to be carved out better you can't have free over here and then talk about fighting deficits over here because they are really in many ways polar opposites. this is just like a big new year's eve resolution for the country. everybody especially during this administration and after tax reform is all about deficits i hate deficits. deficits are something we need to pay attention to but at the end of the day this is the most popular word in politics right now. i defy you to tell me that's not true it's on the opposite of the spectrum i'm going fast the numbers, i'm just going to macro the numbers between medicare, medicaid and social security you're talking over two trillion in spend and roughly a

four trillion budget that's a budget that has a deficit because we don't take in that much. only about 15, 16% is discretionary spending we've had senator allen simpson on everybody wants discretionary spending because entitlements are the third rail i defy you as a viewer to tell me how can we do both. we can't are we going to get serious about tackling entitlements? i'm in the sure. the word free isn't a good sign. back to you. thank you. getting a check on where we stand across the major averages right now, it's a mixed picture. the dow is back in the green up 77 points. s&p is down. nasdaq is the big laggard. we got more squawk alley if less than three minutes ♪ ♪ let's go from plans... to full-blown production.

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welcome back to squawk alley. shares of gamestop policemlumme.

the stock is down 27%. the story of the day is what comes out with apple earnings later after the bell stocks been moving out of green. we'll be bringing you instant analys analysis that will do it for squawk alley. >> ignore the noise and buy stocks that's the call today from a top money manager who is here to make his case. it's 12:00 noon. this is the halftime report. >> earnings cast a shadow on the market but one big investor says we're shooting higher. he'll make his case today. plus, what the fed may do tomorrow to move the market. battleground nvidinvidia from square to see is a to amex to