this morning was a different story. we were about 605 points on the dow at the highs >> the way you begin is not the way you end. if your rurp, you're down. if you're down, you're up. let's see what happens in the next hour. >> close your eyes thanks for watching "power lunch. "closing bell" starts right now. . >> here we go again. thank you, kelly and tyler welcome to "closing bell." i'm sara eisen the wild swings keep coming. the major averages trading in another wide range today, giving up substantial earlier gains nasdaq down more than 1% as we head into the close. >> and i'm wilfred frost good afternoon let let's have a look at what's driving the action tesla and dow inc. on the back of their results some strong data coming in fourth quarter gdp trouncing estimates with a 6.9% print, and weekly jobless claims ticked

lower. netflix is among the biggest s&p 500 winners after bill ackman revealed a major new stake in the company, more on that ahead. 59 minutes left to go in the session. down sharply, sara >> coming up on today's show, apple headlining one of the most important afternoons in all of earnings season. we have it an all-star panel ready to break down the numbers as soon as they come out plus, we'll get results from robinhood, visa, and mondelez among others, and we'll talk exclusively with mondelez's ceo about the quarter and the impact of food inflation before he goes to his company's conference call >> but first, let's get straight to the big story mike santoli is tracking another choppy market session. phil lebeau is tracking the pullback for tesla mike, start usoff with the board of markets and what you're focusing on. >> not a lot of net movement the last few days but a lot of swings twitchy markets intraday

the last three days the s&p 500 has lost a 1% rally at some point from high to low during the trading day. that's the case again today. this area right here, it's almost exactly the minus 10% from the record high threshold yesterday and today. it's roughly where the s&p kind of found just a little bit of traction but it's been hard to trust. you have oversold conditions and already pessimistic sentiment working against the flattening yield curve and the untrusty rally. at least in the short term, month to date, this is potentially a positive, massive underperformance by equities relative to bonds. that means as we get to month end, often, that you might have some rebalancing flows into equities that's a pretty big spread for less than a month in terms of, you know, stocks trailing bonds. also, the end of january is a strong seasonal period you have these new year flows, so maybe for mechanical reasons that's a benefit now, i talked about some of it

being sour, take a look at the weekly aai retail investor poll. number of bulls minus the number of bears when it's below zero, there's a lot more bears than bulls. that's the case now. what's fascinating is we're below where we were right there in the thick of the 2020 crash, the sell-off, so relative to the amount of downside we had in the indexes, it would seem as if people's moods are much more dower than you might expect. we have seen work on that. it also applies to some of the investor sentiment you had this fluky drop in sentiment as well. again, these are just atmospheric conditions t they don't mean the market has to bottom, but it does go into the mix as a net positive on a longer term basis. >> mike, i hear you in terms of saying people are taking profits rather than buying the dip although that only really applies to these two days where the first two days of the week, the opposite was true. with that in mind, where are we

today relative to the intraday lows on monday and how important is it over the next few days we don't break back below those levels >> we're about 100 s&p points above, i would say, in the 4220s is when you got to your lows actually, the s&p futures overnight last night almost got that low so we're talking a couple 3% above that so there's a little bit of a cushion. i don't know that's any kind of special level otherwise, but we have been hovering the last few days, failing to go quite back that far we'll see if that holds up >> thank you tesla is one of the biggest losers right now in the s&p 500 in the wake of its earnings steadily losing stream throughout the day phil lebeau has the details. what happened here i thought it was a pretty decent quarter. >> it was a decent quarter they beat on the top and bottom line they had great numbers even the numbers within the numbers were great in the fourth quarter. this is all about the conference

call and what elon musk outlines in terms of their priorities and the response from investors was, eh, that's the best you can offer us supply chain, that will happen all throughout 2022. the focus this year, driving cash flow, driving efficiency. nothing wrong with that. but investors wanted to hear about new models there will be no new model announcements this year. if you're waiting on a $25,000 car, you're going to be waiting quite a while. >> we're not currently working on the $25,000 car you know, at some point we will, but it's not on our plate right now. >> let's be clear. they're not bringing down their guidance in fact, elon musk said they were comfortably grow by 50% this year. if that's the case, the estimate for 2022 deliveries of almost 1.5 million is something that tesla should hit if they're going to grow by comfortably

50%. as you take a look at shares of tesla, one last note, from the conference call yesterday, what is a priority for tesla in the words of elon musk it isworking on a humanoid robot. i'm serious. a humanoid robot they plan to use to drive greater efficiency within their factories that's not the kind of thing that investors were looking for yesterday. they wanted to hear about the cyber truck and future products. >> yeah, just wondering, it seems like there's a healthy amount of skepticism to what he's promising and looking at some of the past promises now with a bigger grain of salt, is it just the market environment has changed around this company and many others >> i'm not sure that the market environment has changed. i can say this about the full self-driving you read the analyst comments, listen to the questions on the analyst call yesterday we have heard this repeatedly

from elon musk, this year is when we'll have full self driving that is more efficient than drivers on paper, what he says is make sense, but there's a bit of a boy cries wolf situation when many people look to his comments on full self driving could it some day be a huge game changer for tesla and drive profits? absolutely will it happen in the next year? no, nobody believes it will happen in the next year. the analysts today when you read the comments from them, almost all of them say the same thing, we have heard this before. >> phil lebeau, thank you. tesla down 10% lucid down 14% after the break, a rare interview with mullis asset management ceo eric felder on why he says 2022 could present one of the greatest alpha generating opportunities in decades in one specific part of the market we're bringing in the heavy hitters. dow positive again, up 36

points all over the place as we head into the close you're watching "closing bell.

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for stocks today as the markets dijust comments from fed chair jay powell yesterday the two-year yield continues to surge. the ten-year yield goes the other way. the dollar breaks out to new 18-month highs joining us to discuss all of that, eric felder, ceo of moelis asset management great to have you on the show.

i think of you as a fixed income guru with your background and managing the credit funds at moelis tell us what the market message is from fed chair jay powell what we got yesterday and what it's going to mean for the coming months. >> sure. i think he was very transparent as to the path he wants to go on i think what people got surprised by was the speed at which he's likely to be executing everything we're going to very quickly be done with the taper, move directly on to hikes and then directly from there on to shrinking the balance sheet. that's just a tremendous shift from the past decade, essentially, where you had 1,000 rate cuts across the world globally and over $35 trillion of stimulus pumped in and now we're starting to go in reverse. >> what do you think it means for the equity market? some are saying that's the end of the fed put, and no more coming in to buy the dip because the fed doesn't have your back anymore. is that right? >> well, i think that the one

thing we will definitely see is increased volatility across all markets. this is a very big transition to be making. and it's actually happening across the world you're seeing australia, for example, stopping their bond buying you have tightening occurring across the rest of the world as well so that's been a big underpinning very low rates and lower volatility has been the underpinning of a lot of pockets of valuation across the markets and in equities, you have big rotations that have to occur as people have been overweight growth, and that's the equivalent of duration on the equity side. then duration within the bond market and as you can see, so far year to date, there's really been nowhere to hide. every asset class is down across credit and equities with the longer duration suffering the most >> eric, traditionally, of course, when you see the yuld curve flatten has it has done significantly today, people point to it as perhaps the bond market expecting a recession to

come around the corner does that kind of link stand up today, or are there just too many overwhelming technical factors that apply to the bond market given the fed's likelihood of raising rates and running off the balance sheet, or do you think that is what the market is rightly predicting >> i think it's too soon to make that call. we just got gdp this morning at 6.9% a big inventory bill, but consensus for this year is 3.5%, and next year is just over 2%. we're nowhere near being ready to say that we're about to be in a recession. i think the market reaction makes sense, though, because the market, if you went back to november, there were barely any fed hikes priced in. nowl all of a sudden, we have four priced in for this year and you throw on top of that the taper plus the balance sheet reduction. and so clearly, the front end is going to move the most because that's directly linked to what reits are going do you have many more different

parts of the equation when you get out the curve and you also have technicals as well out the curve that can distort things. i think the front end is getting it exactly right here, which is the fed is going to be aggressive they want to move quickly. they want to tighten financial conditions and they're being very transparent about it. >> what is the corporate bond market telling you for so long, it was no panic, but now we're starting to see a little bit of credit risk elevated, investment grade and in junk bonds. what do you expect to happen there? is that just a preview >> i do think it's a preview i think if you think about financial conditions, 40% of financial conditions are actually triple b credit spreads. so the fed is telling you they want spreads wider the market has been orderly so far. we think you're going to see continued demand for floating rate product things like loans, parts of the preferred market have floating rathe products where you can

eliminate the duration component of it. but in all likelihood, what you're going to have now with inflation where it is is you're finally going to have dispersion we have record low dispersion in the credit market throughout 2021 everything moved together. and now you're going to have sector dispersion and ticker dispersion because event risk is also picking up. you saw the other day around kohl's, the lbo machine is fully running, and now you're going to have companies anddry industrie that can pass through the cost or can't pass through the cost that's a great environment for long short credit investing. it's no longer just long beta trade. it's winners and losers. so far, the credit markets have been hanging in okay liquidity is reasonable. and credit quality is actually very solid because everybody in the past two years took the advantage of the record low rates and the stimulus to push their maturity profiles out and issue bonds so we don't have anything near

term that can really blow that up, but i think the increased volatility is going to be certainly affect the kind of market the same way it has the equity market. >> eric, i had a question for you in your seat as ceo as opposed to investor. which was, i'm sure you saw blackstone's reports, report its earnings earlier today, and the extraordinary inflows it saw in just the space of one quarter, or the four-year, whichever way you look at it to what extent will asset management broadly be a scale game over the course of the next decade do you expect there to be a lot of consolidation going forward >> yeah, look, i think asset management is a scaled game. especially for the products that are very scalable like etfs and all of the very big funds. you then also on the other hand have niche year products that are not uniquely scalable up to the tens of billions where there's still alpha content. i think there are two different

types. you certainly have seen the very large asset managers continue to take in tremendous amount of inflows, whether that's in private equity we have a record amount of private equity, dry powder, and also across pockets of asset management but you just saw just this morning from t.rowe, if you're long only, and that's your only product and it's very focused on growth, that's probably going to be a challenging backdrop for the next one to two years just given what the market dynamics are. again, i think you'll actually have dispersion even within the asset management industry. >> so add it all up for us, eric, as far as the takeaway for investors sitting at home. you see a lot of opportunity for alpha generation, for long short credit, dispersion among credits and sectors. what does that mean for the average investor what should they be thinking about differently? >> i would be warning anyone who

has duration risk across their portfolio, and that can take many forms it could be in things like muni bonds, it could be in treasury bonds. it could be in credit. and then it can also be in equities and i would say you want to take your duration risk down. you want to focus, if you have a spread sector on, we like to look at spread perunit of duration that gives you the most cushion to absorb a rate move. then i think you need to look at floating rate product to replace any of that duration that you take off the similar dynamic on the equity side, which i think will continue to play out, will be lower p.e. value stocks at the expense of some of the growthier names because that's the equivalent of shortening duration on the equity side. that would be my advice. >> yeah, we have seen that energy is up again today tech is down eric felder, know you don't do a

lot of tv interviews we appreciate you coming on. >> thanks for having me. >> so yeah >> during that interview, we have stuck to pretty much lows down 1.5% on the nasdaq, 2.5 on the russell. the dow continues to outperform, but currently down 70 points or so, in the red of course, as well all four of the major averages are still ahead, orange is the new ack. bill ackman disclosing a new position in netflix. we'll lock at how the stock fits into his investing strategy. check out some of today's top searched tickers on cnbc.com tesla tops the list. we'll be right back.

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points on the dow, over 100 on the nasdaq, and 200 on the russell. soft' bank under pressure today. reporting marcelo claure stepping down as c.o.o he had been in discussions to leave the company for months the ceo chose him to revamp, rework in 2019, and reports suggest he's leaving due to compensation desagreements softbank trading down 9% >> chip maker lam research drops on a revenue miss. the stock is down 7% jim cramer talking about lam in his investing club newsletter today, to sign up, head to cnbc.com/investingclub, or point your phone at the -- it's changed. cnbc.com/jointheclub that's new i wonder if/investingclub works too.

>> it's much easier to point your phone all the chips are down, not just lam. intel is down 7%, and they are among the hardest hit in the tech space time for a cnbc news update with rahel solomon. >> here's what's happening at this hour. transportation secretary pete buttigieg says that traffic deaths continue to rise to multi-year highs that's why he's backing a national strategy to lower speed limitsand embrace safer road design like dedicated bike and bus lanes and better lighting and crosswalks he says the plan will be backed with $5 billion in grants to states over the next two years >> the fcc has taken a step closer to making it easier to compare the cost of different broadband services the proposed rule would require mobile and cable providers to standardize pricing data and gives consumers the equivalent of a nutrition label of costs, data allowances, and other important details. the fcc is now seeking public comments as it finalizes the final rules. >> google is expanding benefits

for its workers. employees will get a minimum of four weeks vacation per year, up from three weeks previously. google is also sharply increasing parental and caregiver leave. interesting to see if other companies follow suit. i'll send it back to you >> rahel, thank you. absolutely >> just about one hour left until one of the most important moments of earnings season apple's first quarter report we'll preview the key metrics that should be on your radar next speaking of apple, the company reportedly working on new technology that could spell trouble for the firm formally known as square. we'll tell you about the latest vol volley in the payment wars a check on bonds yields pulling back, at least the ten-year is. the two-year continues its post-fed surge the ten-year down to 1.81% we'll be right back.

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here we go final half hour of trading dow positive again we have been positive and negative all hour long we were up 600, though, on the highs of the day for the dow have given all that back s&p 500 is down about .4%. really seeing strength in utilities and communication services staples, energy, health care, materials all remain positive. you have consumer discretionary, real estate, and tech in the red. the nasdaq down 1.25%. the russell 2000 down more than

2% let's dig into more marking movers at this hour. sirius xf will be the new home to neil young radio starting today. this comes one day after young pulled his music from spotify saying he didn't want it played on the same station as joe rogan. young has accused rogan of spreading vaccine misinformation on his spotify podcast stocks are moving in the opposite direction serious xm getting a boost apple is reportedly working on a new service to allow merchants to turn their iphones into payment devices without the extra hardware currently, small businesses must use payment terminals like block square in order to make transactions on the iphone those stocks are both lower ahead of apple's earnings report coming in the next hour, wilfred. >> we look forward to that immensity. it's probably about 58 minutes away, but i can't be sure without the countdown clock. natural gas prices skyrocketing today. cnbc.com's pippa stevens explains why >> hey, wilf if was a wild final hour of

trading for natural gas with prices surging more than 70% at one point. and then ultimately settling 46% higher at $6.26. however, this is largely because the contract expires today some traders needed to cover positions, and there war thin volume, which then drove this incredible price spike the much more actively traded contract for march delivery ended the day up about 8%. about $2 below that february contract so again, it's not like the market suddenly sees prices north of $6. there is a cold snap coming, though, and again, capital did note a supply crunch ahead of the colder temps calling this a spectacular exploration. a lot of activity here >> thanks so much. energy sector up .6% today the dow just higher while we have about a 1.4% decline on the nasdaq up next, my activist teacher,

shares of netflix up today why bill ackman is going all in on streaming, that's next with more puns coming, too. >> plus, we're less than an hour away from apple earnings 57, 14, 13, 12, all the key metrics to look out for. that's next, too sales are down from last quarter, but we're hoping things will pick up by q3. yeah...uhhh... doug? [children laughing] sorry about that. umm...what...it's uhh... you alright? [loud exhale] [ding] never settle with power e*trade. it has powerful, easy-to-use tools to help you find opportunities, 24/7 support when you need answers, plus some of the lowest options in futures contract prices around. [ding] get e*trade and start trading today.

nasdaq losses accelerating down 1.4%. netflix is an exception. bill ackman taking a big stake in netflix following the weak earnings report last week. leslie picker with the story and the big move up in the stock, leslie >> yeah, sara. forget netflix and chill today, it is all about netflix and bill the pairing sent shares soaring today, up more than 8%

currently. today's gains helping netflix chip away at a 41% slide in just the last month through yesterday. still on the surface, it's a surprising move by the value oriented activist investor he noted in a letter to his pershings swear investors the recent sell-off provided a, quote, attractive valuation opportunity. as such, he sold most of his interest rate hedge, generating $1.25 billion, although foregoing more gains since the sale those proceeds were used to acquire 3.1 million shares of netflix. he won't be agitating publicly for major changes at least in the short term at least according to his letter and the tweet he sent out. i have long admired reed hastings and the remarkable company he and his team have built. we're delighted the market has presented us with this opportunity. and he's the latest value investor to get into the netflix mix with bill nygren saying earlier this week on "closing bell" that the stock is a smart buy as well. guys >> leslie, to what extent is he

a long-term activist investor that will want a board seat and get involved with what reed hastings is doing, versus this being a bit of a short-term trade, if it bounces a quick 10%, 20%, would he be keen to get out again? >> he said in the letter he is a long-term investor here. and he saw the price declines as an opportunity to get in it's unclear whether he would actually agitate for a board seed the last time he did so, the last proxy battle he was involved with was more than four years ago at adp, and he lost that fight, ever since then, his returns have been amazing because he had a quieter approach, maybe talking with management behind the scenes but nothing very public and no criticisms of management of the company, and especially that seems to be the case so far for netflix. it sounds like he's going to be holding on for a long time it's unclear whether he has plans to actually agitate publicly for changes a long time, of course, is a long time, so we'll see what

happens in the future. >> leslie, thanks so much. let's discuss this further mark mahaney, head of internet research at evercorps isi. great to see you do you agree with bill ackman that netflix is a buy here >> i read his letter, i agree with everything in it. this is a great service, great company, free cash flow tipping point, subscription model. there's a lot -- i agreed with all of it. it's not a buy for me because we had a negative inflection point in terms of the most important metric, subscriber growth. if that is the case, acumen is a genius and he's come in and they called the bottom of the stock i don't have that kind of conviction to me, this is somewhat similar to priceline or booking.com, which was a great phenomenal stock, great phenomenal company. it left premium growth and became a so-so stock that's sorpt of what i expect to happen now with netflix. >> is part of that linked to whatever valuation multiple it

was on before this pullback and perhaps still, was it closer to being in the pelaoton camp of evaluations than the microsoft camp of evaluations? >> somewhere enbetween there look, the market was expecting in terms of units, they were expecting 20 to 25 smillion subs to be added every year it looks like it's 15 million. that could be a head fake, but that was the expectations. in terms of numbers, you had double digit growth year over year that would allow a premial multiple now that you have single digit growth, the way i mapped this out, i think it's $15 in earnings they can generate in 2023, consistent 20% to 30% earnings growth. downside 300, upside 450, the stock at 375-ish now you're kind of right in the middle it seems like a reasonable hold to me. it's a great asset i really hope they have another growth curve initiative coming up in which case bulls can get right back in on the stock, but

i have to see the subscriber numbers revive before i become bullish again. >> so you're not a fan of netflix, mark. any of the other mega cap tech stocks that have gone on sale look appealing to you, given they're in the cross fire with the fed moves? >> well, you talked about a company earlier that i think is kind of very interesting netflix has been a phenomenal stock for a variety of reasons i think some of those reasons apply right now, right here to spotify. so i know it's controversial today because of the neil young/joe rogan controversy. but here's an asset that is still earlier stage than netflix. it's a couple years ago, and it's also got a premium business model. that may be what's really limiting netflix's growth in international markets, the paid subscription market may just be limited in parts of asia pacific and middle east and africa spotify has moved around that by long standing having a premium business model and they're at a gross margin inflection point this year. if i'm right, you could have

nice outperformance by a stock that's been beaten down below $200 i find spotify very interesting. i like the setup, i like the stock. >> mark, i know there's an enormous amount to amazon, but it has overlap with both microsoft, which bounced after earnings and netflix, which of course, did not. are you worried ahead of amazon's earnings report >> yes and one thing in very particular i have been signaling to investors and cnbc for a while the street's too high in terms of operating income for the march quarter. way too high like we thought they were for the december quarter i think the market is starting to appreciate that look, i think there's a recovery in the company's profitability, especially as we go into the back half of '22 i think the profitability needs to be more back end loaded than what's in consensus numbers. we may have a hiccup on the print. you want to own amazon when it's dislocated like this this is one of the two or three highest quality assets, along with google and facebook you're going have the investment return on all this distribution

center spend that they had this last year, you want to be long amazon when you get a big correction like this i'm a big buyer of amazon right here, right now. >> it is outperforming today down 16% for the year. mark, thank you. always good to talk to you >> when we come back, here on "closing bell," intel slipping today following earnings last night. we'll tell you what's pressuring that stock next in the market zone heading into the close the dow is positive, up about 100 points having a little bit of a buying here s&p 500 could go positive as well it's down a little more than .1%. ncer] at southern new hampshire university, we're committed to making college more affordable. that's why we're keeping our tuition the same through the year 2022. - [narrator] i knew snhu was the place for me when i saw how affordable it was. - [narrator] find your degree at snhu.edu.

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welcome back and buckle up for a big second hour of "closing bell. we'll bring you results from apple, one of the most important reports in all of earnings season and break down the numbers with an all-star panel right after. we'll also get numbers from visa and robinhood, which should provide clues about the state of payments and fintech and the ceo of mondelez will join us exclusively on earnings ahead of his call with analysts and peter cochina will talk about the market and the fed and the one place he sees upside right now. all that in the second hour of "closing bell. first, with 13 minutes left in the trading day, we're now into closing bell market zone mike santoli is here to break down the crucial moments of the trading day, and today, we have stephanie link with us as well let's kick things off with a broader market big intraday pullback once again, mike. just end of day mini bounce to

take the dow positive and the s&p almost positive. >> yeah, i mean, i think the technical market term is squirrely. that's how the tape has been this week. just lots of low conviction swings back and forth. we did, as i mentioned earlier, barely hold yesterday's lows i don't know if they're going to be significant it's hard to spin four straight weeks to start a new year negative, a lot of the activity looks like periods when the market was in much more of kind of a bearish regime in terms of just the daily swings, the loss of intraday rallies. but there's not really been that much net ground loss minus 10%, up 20%, isn't really devastating to a longer term trend. i feel as if it's really bruised people's risk appetites and their tactical willingness to get in there in the liquid market >> my question, steph, is to you on all of your cyclical plays and whether you're worried about growth right now

i know we justgot fourth quarter gdp was a blowout, 6.9% growth was truly very strong, but a big chunk of it was inventory builds from companies which is not something you can rely on. it may even weigh on inflation, which it should. but what's your feeling about growth durable goods unchanged. the federal reserve is about to tighten. fed chair powell sounding very hawkish. do you get concerned about some of the cyclical groups in that environment? >> no, actually, because they have held up better than the growth stocks than the small caps, than the nonearners, believe it or not, on a relative basis. so it doesn't feel good, because everything is going down but they're not going down nearly as much, now the growth question is the question to ask. of course, we're not going to see a repeat of 6.9% in gdp. yeah, it was very much aided by inventory, but it was a consumption number of 3.3%, which is pretty decent too the reason we're going to see a slowdown especially in the first quarter is because omicron

right? it was the peak of omicron in the first kwauquarter. the end of the fourth quarter into the first quarter i think you are going to see a slowdown, much like we saw delta variant in the third quarter hit gdp and then you're going to see, i believe, pent-up demand the retail consumer, they have spent 25% higher, retail sales 25% higher than pre-covid. they have got $4 trillion on the sidelines in money markets and sure, they're not feeling as wealthy from the equity markets and not getting the checks from the government, but wages are going higher that's part of the reason the fed is doing what they're doing, right? so wages are going higher. and jobs are plentiful i think you are going to see 6%, 7%, 8% growth, no way. but 3%, 4%, maybe 4.5%, there's a very good chance that's going to be driven by the services economy, which is much bigger than the goods side of the economy. in terms of the cyclicals, there's all kinds of cyclicals to own, for sure energy is a cyclical, the best

performing group year to date and i'm overweight there financials are a cyclical, they have been terrific i bet you any day every day they're down the management are in buying stock because they have a ton of capital and a ton of authority and authorizations to do so industrials are a little more mixed but you are seeing pricing power there. so i am watching very closely on that side of things, and where would say within discretionary, i want to own reopened they have kind of stalled out, but i believe pent-up demand will lead to better results there. so you have to remember why the fed is doing what they're doing. the fed is doing what they're doing because they need to normalize policy, and for interest rates and a taper is normalizing policy then they're going to watch and see what the data says to them the data we're going to be focused on this year all year is inflation. >> i knew you would make the case, the bull case for growth and you did. stephanie. intel, let's hit the chips one of the worst performers on the dow today.

it's down more than 6%, despite an earnings beat, intel's overall profit and margin declines are weighing on the stock. ceo pat gelsinger was on tech check, with an optimistic tone >> we're following what we call smart capital, where we need to build shelves and then we'll decide how we populate them for our products or for foundry customers, but overall, that build-out of the manufacturing capacity, the semi-conductor industry is going to double over the course of the decade and we're going to be positioned to capitalize on that. >> watching intel, investors aren't having it lam research, steph, tear adine is down 24%. are these individual stories or something broader to worry about with chips >> well, i think lam research certainly is supply chain issues and thankfully, i sold the position last week i'm not 200% in two years time, so you have to take profits

along the way. i think that one is going to be just fine. in fact, the supply chains for lam probably extend the cycle. you could make the argument. taradine is a mess, and intel is a value trap gross margins have to come down, and the reason the stock is down so much is because they lowered guidance for 1q in terms of gross margins because they're spending so much, because they're spending so much to gain share from tsmc, but they're not going to come close to tsmc. they're spending $40 million to $44 billion this year in spending, and intel is spending about $22 billion to $25 billion. how are they going to take market share they have to lower price gross margins will be down, so on february 17th, they have an analyst day, and i think they're going to lower the '22 guidance. i don't think you want to be anywhere near the stock ahead of that >> we have 6 1/2 minutes left and we're down to .4% on the s&p. apple due to report first quarter results.

expectations are for apple to report eps of $1.89 and record high revenue of $118.6 billion it follows apple's previous earnings report where they missed earnings estimates for the first time since 2016. analysts will be watching for any commentary on supply chain issues and holiday demand. higher today was higher earlier in the session, is just fractionally lower now by .3%. it's down 12.5% so far for the month, as a whole, and mike, interesting to see it move around we're talking with mark muhana about how some companies have reacted to earni ings so far. this one is as richly valued as they come for the mega caps and it doesn't have as good a growth out outlook, but it hasn't brought it down in the past. >> it's richly valued as much as apple has been in many years and it's up there in the upper reaches. 27 times forward earnings. something like that. the stock actually has performed

a little bit better than some of the peers. i mean, it's still chart looks decent, trading above where it was in early september a lot of the nasdaq has given up most of last year's gains. there's a stability bid in here, just the idea it's a massive behemoth the story goes that now that services are becoming a material part of the business and a big chunk of the growth, that justifies how it's valued right now. that's the longer term fundamental story, but it gets kind of lost in the mix when it is a relatively slow top line growth hardware kind of story otherwise. >> let's hit robinhood because it's also one of the big names set to report results after the bell kate rooney with a preview for what has been a big disappointment, kate, since going public for investors >> yeah, that's right. it's been a tough couple months here for robinhood the big thing to watch, though, today is account growth. the stock trading app reported a dip in total clients in the last earnings print

q3, and robinhood had guided for about 660,000 new accounts for the quarter which we'll hear about today, which is q4 wall street is expecting a 45 cent loss on eps after being profitable a year ago, which of course, was the height of the gamestop saga. growth has suffered in the absence of viral market events and meme stocks to bring in new traders. we're also looking for revenue diversification and guidance is also the big thing analysts are watching there's also a search for any signs that robinhood is becoming that full suite of financial services for millennials and gen z and not just a brokerage back to you. >> kate rooney, thank you. mike, what does robinhood need to prove here a year after, you know, the meme craziness and things have really died down and gone the other way. >> well, i think they have to prove some level of engagement of their retail customer that's not purely trading secondary crypto coins or the meme stocks.

they're trying with these new products that look a lot more like a robeo adviser. it's not anywhere near scale to me, it's how low does the market value have to get before we're talking just about the franchise value. what is the brand worth within maybe another company? you could make the argument that they have already kind of discounted a pretty dire situation. all of the inputs you could look at in the real world, the retail options trading volume and all the rest of it have not been moving in the right direction. crypto, but we know that, and so in theory, it should already be reflected somewhat in the stock price. >> we are just slipping a little bit again. the dow is basically flat. the nasdaq, though, down 1.3%. there's some movement going on under the surface with what's winning and losing we still have more than half the sectors higher as we do approach that close mike, what does this intraday action really tell us again? i mean, it's ended up being a big intraday pullback like

yesterday. monday, tuesday were the opposite >> yeah, i mean, first of all, it shows you just very much a lack of conviction seeing a lot of studies that the liquidity levels are very low right here because volatility has gone up, dealers are just not willing to take the other side and i think a lot of the kind of fundamental thesis for getting long the reflation and cyclicals looked great for five days and it fell apart. and people having this macro doubt right here as the same time the speculative stuff won't stop going down. it still doesn't seem washed out. you see ark, the russell small cap growth still for sale today. we have absorbed a lot, and the s&p is holding those lows so far. we'll see if that plays out. >> what about the internal snz. >> pretty negative started out, again, kind of with a bid on the new york stock exchange to have positive breadth. has not played out that way. more than 2-1 declining value. look at the u.s. dollar index,

part of the fed story. markets racing to make a pretty dramatic new high toward 100 in the dollar index multiyear, not very high, but down the six-month, it looks quite aggressive volatility index not able to relax. if you lose a percent and a half intraday rally every day, the vix is going to stay elevated. we're above 30 we're not getting incrementally more agitated now, but you probably want to see that recede that's going to take the market itself to calm down. >> down 1.3% on the nasdaq, as we head into the close looks like a 3% decline for the week and now the nasdaq is about 17.5% off its highs. take a look at the dow into the close, making a few attempts to go positive in this final hour of trade. but we were up 600 points earlier and lost all of that rally. biggest positive contribution is unh, united health care, microsoft, and dow boeing, intel, and american express the biggest drags. american express had a great day

yesterday. s&p 500 down about .5% into the close. looks like you still have strength in groups like utilities and staples, energy doing well today, materials. but consumer discretion arand technology are lower small caps got hit the hardest today. russell 2000 going to close down about 2.3% and the nasdaq in the eye of the storm again with all this talk of fed tightening, down 1.4% in the close. >> welcome, everybody, to the "closing bell. i'm wilfred frost, along with sara eisen and mike santoli, cnbc senior markets commentator. get ready for a huge hour of earnings apple, visa, robinhood, and mondelez moments away from releasing their results. >> plus, mondelez ceo dirk van de put will break down his company's results before he speaks to analysts on the conference call. steph link is with us, peter cocheaney joins the

conversation mike, i have to come to you first, and the story of the day has to be tesla, closes at $829. down 11.5%, below, by the way, its intraday low from earlier in the week, which the rest of the indices didn't break below and that's despite decent earnings and a conference call that went down well initially. i guess just something to keep in mind ahead of those reports that i just teased in a few minutes. >> i would chalk it mostly up to kind of this speculative unwind. a lot of people, fast money trapped above $1,000 a share huge option flows up at those levels and then it kind of unspooled from there nvidia stocks have been joined at the hip for several months now. so tesla often kind of doesn't really do well with encounters with its own fundamentals. i know that sounds glib, but that's the way it is it's mostly about the longer term trend and people getting excited and kind of enjoying being part of the revolution as opposed to what are we going to earn this year, especially when

they didn't promise any new models as many people hoped. >> peter, you have been expecting this downturn for a while. now you're turning tactically bullish. what does that mean? >> hi, sara. yeah, we talked around christmas time, the theme we had here has been higher inflation would eventually lead to a hawkish fed pivot. came a couple months later than we expected. but the damage from inflation to company margins, for example, is starting to show this quarter with the company's reporting so far. as are the supply chain disruptions. when market correct, which i think we're in the beginning of a longer correction, we have shifted into a sell the rally kind of mode, but let me correct. there are going to be opportunities to take advantage of oversold conditions and i think that's where we are now.

we had a three-day vix futures curve inversion from first to second months. and i have some soft indicators i use, which is called the number of calls i get from media about whether a bear market has started or not, and i have gotten a number of those today as well. l lastly, all the people who never saw the possibility of the market taking a turn for the worst are now seemingly onboard with the fact it ought to on a hawkish fed pivot. when you combine all those things and everybody is on the bearish bandwagon now, my experience has been that that means it's bea bit over done >> i want to dive into that in more detail, but i want to get robinhood's numbers. kate has them for us and the stock is sliding >> we have a mixed quarter for robinhood and it looks like a miss on guidance the company reporting 49 cents for eps, that was a loss of 49 cents. that's the gap number there. we don't have a comparable number quite yet on that but on revenue, it looks like a

slight beat here $363 million for fourth quarter revenue. that was slightly above what analysts were looking for. we don't have full year guidance, but for q1, it looks like robinhood is expecting less than $340 million for the quarter. that was well below what the street was looking for, which was $448 million for revenue also talking about operating expenses increasing here by about 15% to 20% year over year. that's in large part because of head count, the company has hired. i also caught up with cfo jason werenic, he said they were planning to outline some of the plans for 2022, including retirement accounts. they're rolling that out in mid-year, he said. also talked about crypto wallets r that we should get a better picture of the plan here for robinhood. i asked him as well about m&a rumors he said they are committed to growing as a stand-alone company. shares getting hit here, about 10% now down 10% after hours

>> kate, thanks so much for that mike santoli, not a good time for a company that is not making any money yet to miss on guidance >> especially when it seems to show that the users are kind of pulling away and less active and lessen gauged. the average revenue per user was $64. down from $106 a year earlier. so that clearly shows you in the recent quarter just lower levels of trading activity in kriptdo and options and equities that's what we're looking at right here it came at a very, very aggressive valuation at the absolute peak moment for its business when it did do an ipo so they're seeing pretty sharp hangover effect from all that. >> want to pivot back to the broader market discussion we were having. and peter, just whether the kind of two intraday moves we have seen over the last couple days then made you reconsider your

short-term tactical buyer argument i know we had two very big intraday sell-offs, bounces to start the week, and now the opposite has happened. >> yeah, well, as with anything when it comes to these tactical calls, they're quite tricky. normally, these bottoms are pretty sloppy. and they usually take one or two retests. you typically would like to see a higher low on the retest so i'm going to take a look at that more closely when we get off air. but my view is, again, when the story stocks start to unwind and the narrative gets to a point where the correction looks to actually have accounted for more than the bad news that has already come out, the bottom feeders will come in, and there will be a rally. that said, wilf, you know, this has been a long time coming. as you know, i felt extreme valuations have kept this market vulner erable for a long time,

really the two catalysts needed were inflation, which we got we started writing up that in early march, and then the fed's final admission inflation existed and then a hawkish pivot toward it. the other thing that's important is fiscal stimulus is now inert. it's been spent. household savings is down from $6 trillion to $1.2. and the consumer simply doesn't have that to fall back on anymore. >> just want to hit the mondelez numbers quickly, which you see flashing across the screen the snack giant reporting an earnings miss. just a slight miss, 71 cents per share versus 72 cents estimated. sales were a beat. revenue, $7.66 billion estimate was around $7.5 billion. organic revenue growth of 5.2% healthy growth mondelez gets the bulk of its sales overseas that's where the strength was, in latin america u.s. business was a bit of a slower story, olumes were down there.

we're going to talk about it soon with dirk van de put, the ceo of mondelez, as far as guidance, i'll give you one number, 3% organic net revenue growth that's something they have been promising. the other thing standing out to me right now is the adjusted gross margin fell two points, weighed down by raw materials and transportation costs the thing with these staples, they have acted well, especially during some of the market turbulence but there are questions about whether they have pricing power and they can pass along some of these higher costs that are still a problem. >> well, on the positive side, you said the organic number at 5.2 is way better than people expected the high number on the street is 4.7 for organic, so that was pretty impressive. they're taking market share and they actually implemented price increases last year. so it's starting to work it's not going to help on the input cost side and labor shortages side just yet. but obviously, throughout the year, if you do think the fed is successful and you think supply

chains improve and people go back to work to some degree, that should actually improve you know, 23 times forward for a steady growing company like this in a turbulent market time, there's something to be said about that, right? with a great balance sheet, and i will say this one thing, that the theme for earnings so far this quarter, across the gamut, free cash flow free cash flow has been so much stronger than expectations that leads me to say, guess what, you can use that free cash flow to increase your divdns more by backe buy backs higher and mondelez is doing all the right things unfortunately, the macro is hurting them i have no problem owning this stock. >> mondelez is flat. robinhood is trading lower visa numbers are crossing. mike, how do they look >> looks like a beat, wilf adjusted eps, $1.81 a share for visa forecast was about $1.70 revenues also beat, $7.06 billion for the quarter.

$6.8 billion or thereabouts was the forecast you see the stock responding, up a couple percent pretty well off the highs with the other payments and fintech stocks >> jumping a couple percent, as you said, mike and i guess the question here for visa when we get to the call is whether they're seeing any kind of cyclical slowdown. we got a little bit of a hint that maybe retail sales tailed off halfway through december and into january that will be the short term question >> that's always a big one as well as cross border volumes thad has been a hang-up for visa hard to know if that will be a big change in the latest quarter. but this is a stock that used to have super premium valuation very much a hedge fund crowded trade, and it has come off enough to where it's 25 times free cash flow, pretty much the range it was in for most of the kind of years before covid so it's sort of taken a little bit of the excess off the

valuation. >> and really underperformed american express, a competitor we have to leave the conversation there stephanie and peter, thank you both for joining us. on a busy earnings day we're just getting started here on the second hour of "closing bell." up next, we will discuss mondelez's earnings and the outlook for inflation and consumer spending when we're joined by ceo dirk van de put. >> plus, we're just minutes away from apple's earnings. instant analysis of that highly anticipated report coming up in less than 19 minutes we're back, though, on "closing bell" in just two. bill, mary? hey... it's our former broker carl. carl, say hi to nina, our schwab financial consultant. hm... i know how difficult these calls can be. not with schwab. nina made it easier to set up our financial plan. we can check in on it anytime. it changes when our goals change. planning can't be that easy. actually, it can be, carl. look forward to planning with schwab. schwab! ♪♪

mondelez just out with its quarterly results. beating on revenue, missing sliezly on the bottom line shares are down almost 3%. joining us for an exclusive interview ahead of the conference call, mondelez ceo dirk van de put. a lot to get through here. it looks like the sales growth was very strong, more than 5% organic growth though margins being hit by some of those cost inputs like we're

seeing across the board with inflation. talk to us about how you're characterizing the quarter >> well, we see it as a good quarter. in the sense that our top line was excellent. and that was a mix between volume growth and price. and in the last quarter, q4 of last year, we didn't price that much yet that is still to come. and that led us to a reasonable margin yes, i know the percentage margin went down, but we still grew our margin in dollars by close to 3.6%, which is really what we're looking for in a typical year we like to grow our gross profit dollars at 4%. we were at 3.6%, just below, and able to increase our bottom line by 5.8% for the year from a financial perspective, we feel pretty good seeing the circumstances of high inflation, supply chain disruption, and so on. and then on top of that, we have market share increases

we had very solid cash flow. we returned $4 billion to our shareholders in dividends and share buybacks, and we were able to increase our investment in our brands, in sustainability and so on, versus 2020 so healthy financials, good investments, good fascflow a little shaky on the cost side, but i think we'll get through that with price increases and cost management. overall, we feel good. >> i was just going to say, so how sustainable is this kind of sales growth, which you're seeing, very strong in many parts of the world, and are you getting that kind of pricing power that you need? >> yes and yes the categories we're in, which are mainly biscuits and chocolate, throughout the pandemic, have seen an acceleration, and we see that continuing into the new year and where we have priced, which is largely in emerging markets,

you can see very strong results. more than double digit growth for us the price increase in the u.s. has just started in january. europe, you will probably see the effect of price increases in q2 but overall, i would say what we see from the consumer is that they are very aware of the fact that there in inflation and that prices are going up. but their spending has changed they like to snack more. they're buying more biscuits and chocolate. the price elasticity is very low. there's not much effect on volume when you increase your prices we thick it's sustainable. we believe in the second half of this yearflation will start to ease so there won't be a need for these big price increases and then we will gradually return to a more normal situation. we expect fully to deliver on our financial algorithm, also in 2022 while we continue to increase our investments in our brands and in our people and in our

sustainability >> dirk, do you expect to see any opportunities to add to your portfolio in the volatility that might exist ahead? >> yes, yes, we do we have to be financially astute and disciplined, but yes, we think that there are opportunities. we have good track record. we have added four companies to our portfolio during the past year i think the founders often stayed in and they're working with us. they're happy with the relationship they have with us so we think we have a nice record of results. a nice track record of being good partners. so i think the opportunities will be there for us to keep on adding to our portfolio, as long as the value ations remain reasonable >> dirk, what's happening in the u.s. market, where we saw some softness in volumes, and where is that going to go as we're

potentially looking at a bumpier year >> yeah, the u.s. is affected by supply chain disruption. if you look at our customer service levels, which normally have to be -- we measure that through something which is called on-shelf availability, we're at 90% throughout the year we like to be well above 95% so if you go to the store, you cannot find often the products that you would like. and that is because it is dpr difficult for us to produce and deliver for many reasons so that is affecting our sales the second thing that we have to take into account is that the u.s. had very strong growth, more than double digit growth last year. and we are lapping that growth you see a little bit of an effect there we expect that the first quarter and the second quarter of this year you will still see a little bit of a bumpy ride in the u.s., but then in the second half of this year, things will start to

improve. third reason i would like to give is that we have not yet increased prices, while some of our competitors did. so that affects our overall sales growth number you see, while we don't have the benefit from that yet. so i think you will see gradually improving numbers for the u.s. going forward >> and i just have to ask you, because with all the fed tightening talk, the dollar is now at the highest level in kw kwaeng months. you get 18% of your sales overseas how problematic is this for coming quarters? >> we're kind of used to that. '21 was an abnormal year, where we had a bit of a tailwind coming from the foreign currencies in '22, it looks like we're going to be back into normal territory, i would say, what we have been seeing every year for most of the years in the last ten years. but it means that we expect this moment that our top line will be affected by about 2.5 points of

currency effect. we will still organically deliver against our algorithm, which is 3% plus top line. and nen from an eps perspective, we're expecting about 8 cents at this stage, at current exchange rate of a negative headwind on our eps results for the year so yes, it will affect us, but it's not more than it has been in previous years. >> good to get that color. as always, dirk van de put, we'll let you go to the dconfere call >> with wilfred, the stock coming back off the lows down about 1.5%. >> a slight decline after hours. >> robinhood, though, down sharply, after reporting a larger than expecting loss up next, we'll get reaction from analysts who think the stock could double from its current level, but down 15% at the moment we'll be right back.

shares of robinhood singing after hours on a wider than expected loss in first quarter guidance coming in below estimates. joining us, dan doleth from mu muzulo we're slipping further from that

as we speak. dan, the trends there, quarter over quarter on both users and profitability, don't look good >> yeah, i think the headline -- thanks for having me again the headlines i don't think are very exciting, especially because consensus was high they missed estimates in their guidance, but if you peel the onion and look beneath the surface, you're seeing signs of stabilizing arpu, stabilizing users. the first derivative is starting to look really interesting here. >> maybe i'll go again dan, your price target of $20, how do you reach that? and why do you think we're seeing another big slide tonight, down below $10? >> i think we're seeing a big slide tonight because obviously every time you miss consensus

estimates, there is a bad reaction they are -- an extravaganza of last year. this might be the bottom as you head to the second part of the year, i think that might start to look really interesting. we put down a price target, but the multiple right now is actually fairly, you know, not aggressive at all given where it was before so i could see it getting better on that end as well. >> what, dan, is the growth here for them stabilizing users is one thing, but where does the growth come from how do they get back to the glory days we saw a year ago >> a great question, right i think one that is most important is you're seeing

users, you're seeing them trending down but they're stabilizing. this trend has come down, if those stay at 17 and then start creeping up, they need to do more advertising they're investing in, that's why the ebitda was negative again this quarter if you're getting more investment, more users and lower the arpu by selling more product, more services, you'll see weighting with more regulatory approval, so all this together, higher arpu and more users is the path to growth. i'm actually quite optimistic heading into the second part of the year they're lapping really tough comps. people forget, but this was the epicenter of the meme stocks in january of last year so it makes it a lot of sense that you would see this sort of disappointment right now i actually think this has to be the bottom for robinhood in mew view >> all right

well, putting yourself out there. interesting call dan, thank you for joining us. dan dolev on robinhood do not go anywhere because apple's earnings are just moments away we have an all-star panel to break down theestshe losing bell" comes right back. what happens when we welcome change? we can transform our workforce overnight out of convenience, or necessity. we can explore uncharted waters, and not only make new discoveries, but get there faster, with better outcomes. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change-- meeting them where they are, and getting them where they want to be. faster. vmware. welcome change.

welcome back we are awaiting results from apple. a reminder, apm closed a little lower today, about .3% lower it's down about 10.3% for the year, which means it's actually held up a lot better than some of the other big cap tech stocks and the high growth stocks as is often seen as very defensive the key with apple always, the iphone growth, of course the services growth as well. apple shares a little higher after hours. let's go to julia with though results. julia. >> apple beating expectations on both the top and bottom line driven by outperformance of those new iphones. the company reported 11 percent revenue growth to 123.9 billion dollars. that's ahead of the $118.7 billion that analysts estimated. earnings per share were $2.10, beating estimates of 1.89. and the company's gross margin of 43.8% beat expectations of

41.7%. the company beat estimates in all categories with the sole exception of the ipad, which was severely supply constrained. the upside was driven by outperformance for the iphone 13 which launched in september. this was the first full quarter with those results iphone revenues grew to $71.6 billion versus the refly $68 billion anticipated. and with the new macbrook pro on the market, mac revenues grew to $10.8 billion, more than a billion more than projections. services also hitting a record, up to $19.5 billion. that's also nearly up billion more than anticipated. looking at total cash on hand, that number has risen to $200.26 billion. apple shares trading up nearly 2% guys >> julia, thanks so much for that have to say, a stunning quarter,

all things considered, a big beat on revenue. a nice beat on the bottom line, and broad as well. only ipad missed all the other lines with comfortable beats, led by iphone let's discuss further with our panel. stefy link from hightower, dan ives, and colin gillis all with us. mike, of course, with us as well dan, i'll come to you first of all. what is your take on these numbers? >> they should frame this quarter in cupertino i mean, if you look at given the chip shortage, to have a number that's a $5 billion beat, and especially the iphones, that would have been another $6 billion beat if not for the chip shortage all around for margins across the board, it just shows in terms of navigating the chip shortage, this is beyond what bulls were hoping for. it comes down to guidance, but this is a life raft in a market storm. a huge quarter from cook and

kupecoupe cupertino. >> it makes a big difference as well to broad sentiment and valuations overnight >> it does i mean, obviously, what you're paying for is steadiness you're paying for $100 billion in net income per year that's what they're on pace for again. i do think it is very solid across the board you know, i am not sure that apple, because it is so unique and so dominant, has really coat tailed in terms of the rest of tech sort of taking heart in their performance. apple is as apple does, as opposed to necessarily being a direct bellwether, but it's not going to hurt sentiment that this operating environment was good enough for them to perform like this. >> strong sales growth across the board. let's get back to julia for more on apple's results julia. >> well, sara, i spoke to apple's ceo tim cook about this record quarter now, there company didn't give any guidance, but i asked him about sales trends over the course of the quarter for that better than expected iphone

growth in particular on iphone demand, tim cook told me, quote, the last two weeks of the quarter were the best two weeks for iphone customer demand during the quarter he said that's not odd because that is associated with gift giving but it bodes well to the momentum we grew by 9% for the quarter, which we were proud of, and that's despite having supply constraints during the quarter i also asked tim cook about the biggest pain points for the supply chain, which he said is constraints on chip supply particularly withlegacy notes, that has the largest impact on ipads. he told me, quote, the good news is there is good news in here, is that the december quarter was worse than the previous quarter, we were projecting march to be better than the december quarter. and that's in terms of supply constraints. i also asked him about how they're reacting to inflationary pressures, if they plan to raise prices he said that they try to price their products based on their value, that they deliver it sounds like we could hear more about those inflationary pressures on the call and that

call does start at the top of the our. guys >> julia boorstin, very valuable thank you. up about 2% after hours. colin, so for a company that didn't give guidance, cook gave julia good color as to what they were seeing, the last two weeks the best for demand, but does bode well for momentum do you expect them to get into more detail as far as the outlook, or apple just doesn't do that anymore? >> they don't do that anymore. you kno, but what we do know is that clearly they're still strong demand for the iphone and what's even more impressive is that we're seeing apple and tim cook doing what they do best, which is releasing a new phone and then driving those margins higher taking advantage of the consistent form factors. the 43.8% gross margin is a fantastic print. so demand is not an issue for apple. particularly for the iphone. >> what's your take on this

performance, i know as dan said, we're waiting for the guidance, but you just can't really complain with what they did in that past quarter. >> not at all. the quarter is fantastic you have to be a little concerned you're getting into more difficult compares with the march and june quarter there may be some short-term price volatility if you're a longer term holder, there's nothing broken with apple. there's nothing wrong with this company. they continue to fire away on all cylinders. it would be nice to see new products, new services get layered in just to help continue to drive that revenue momentum but the company is executing >> services number was a beat at $19.5 billion, steph the china, greater china revenue is up 21%. also impressive given what's been going on in that region what stands out to you >> well, i have to be honest i'm not surprised they had a strong quarter because we had been hearing all throughout the quarter that the supply chain

situation was easing, from weeks to days, right in terms of availability and the other important note is last quarter, they got hit $6 billion in total revenue because of the supply chain, and they guided higher for this quarter so you knew they were kind of conservative to begin with that being said, it was a great print. i like that it was very broad based. love the gross margin story, and cash flow, my goodness, $202 billion. you now know they're going to announce a big buy back in april. that's coming, and it's probably going to be something like another $90 billion. i think they can buy 2% to 3% of their shares outstanding for the next few years easily, so that's why this company is such a defensive position good balance sheet $1.65 billion plus in stall base you have some products coming. we don't know what ar/vr in terms of the next iphone and what that's going to do, but that's positive. and services, yeah, it continues to hum i don't know if we're going to get guidance i would be surprised if we do, but it's against tough compares.

i think we'll look through it. >> dan ives, how significant was it, what julia told us, that tim cook was seeming to guide to her that the supply chain issues got worse in the past quarter but will get better in the quarter coming forward >> yeah, i was ackohl going to hit on that. i think that's something not just for apple but for the market and for tech tomorrow those comments which cook will talk about, i think it's the most important thing from this quarter. supply chain getting better for apple. remember, they're at the front of the line. they have the best view. that's huge especially after what we have heard from tesla and others in terms of the supply chain you combine that with the next year, that was the big concern for apple. especially now, 250 million iphones that haven't been upgraded in 3 1/2 years. this is a one-two punch of good news for a market that really needed it. >> steph, you have also been looking at some of the catalysts for the stock. like the september launch, but

what else are you watching >> yeah, i mean, you get the capital return is going to come in april that's going to be a big one, as i mentioned. i think it could be as high as $90 billion, especially if they think their stock price is cheap. then june, you get the wwdc conference, nuggets out from each company there, and then of course, september, the next launch i think that's what we're going to be looking forward to i think second quarter, i don't know if we're going to pay attention to the guidance. tough comps is probably where they're going to settle out at, but this is a really good story. for a portfolio manager like myself, i'm looking for defensive companies, but i want a play in the tech space this is perfect. other than it trades a little bit rich at 28 times forward, but deservedly so. it's almost like a consumer staples company. i think my friend jim cramer talked about that all the time in terms of comparison, but they're very steady and doing an amazing job and everybody wants their phones and products >> what, colin, could go wrong

on the earnings call or surprise people >> we want to hear, we want to see where the iphone demand is coming from. historically, over the last two quarters, we have seen strong demand both from the upgrade cycle, the replacement cycle as well as new customers. so any commententary around peoe coming into the ecosystem is something we'll watch out for. in terms of supply chain issues, i would comment that, you know, if you're a supplier to apple, you're going to take care of them so positive commentary from apple about easing of supply chain woes may not translate to other companies that are further down on the pecking order. >> what about you, dan what do you want to hear on the call >> cook is a tactician when it comes to these conference calls. he has had the golden touch, given investors focus on the supply chain, but china, that's the linchpin of growth we're seeing in terms of iphone

demand giving the street more comfort there, combined with services. i services alone is worth $1.5 trillion that's the key this is a stock the street is really going to absorb and digest huge bullish indicator, not just for apple but the whole tech food chain >> dan, colin, stephanie, thank you all for joining us great to get your initial reaction on apple shares, which are now up by 3% or 4%, in fact. >> visa shares, meantime, also moving higher earlier. let's have a look at that. 5% higher now, improving as the time has passed since they reported we will get reaction from analysts who think it can rally 30% from here. >> and take another look at the carnage in robinhood it was down as much as 15% it's down 11%, and we'll be right back to discuss that as well you need to hire. i need indeed. indeed you do.

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integrity. and that person will be the first black woman ever nominated to the united states supreme court. >> the president says he'll make his decision about a nominee by the end of february. >> could be a couple of inches, could be a couple feet that's essentially still what the weather models are saying about this nor'easter bomb cyclone bearing down on the east coast. 40 million people now under winter storm watches from the carolinas up to maine. forecasters say blizzard conditions are possible on saturday with wind gusts expected in some areas to be upwards of hurricane strength. and tonight, brinksmanship on the border in ukraine as russia responds to what the state department calls a serious diplomatic path forward to end the standoff that's tonight on the news, right after jim cramer, 7:00 eastern, cnbc. back to you. >> shep, thank you we'll see you then shep smith >> shares of visa are higher after reporting just moments ago. up next, we'll dig in on that move with an analyst who is

bullish on the stock it's up 6.3% after hours plus, we're counting down to the calls. apple, robinhood, mondelez and more are gearing up for conference calls in just a few moments. we'll tell you what to listen meba" r when "closing bell cos ck it's your future. so you don't lose sight of the big picture, even when you're focused on what's happening right now. and thinkorswim® is right there with you. to help you become a smarter investor. with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform. because we take trading as seriously as you do. thinkorswim® by td ameritrade

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we've got an earnings alert on western digital kristina partsinevelos has the numbers for us >> unfortunately, shares of western digital are down about 12% right now. the data storage company did beat on revenues sxurnings, but the quarterly revenue guidance came in below estimates. it also sees adjusted eps of $1.50 to $1.88 for q3 which is much lower than the street anticipated. the company also warned of supply chain headwinds to continue in the near term for the firm, and in a separate release, the company announced a new cfo who will resume the role on february 7th or assume the role he previously worked add dialogue semi-conductor. you can see shares of western digital now down about 11%, almost 12% back to you. >> kristina, thank you >> visa shares going the other way, popping right now after

reporting earnings that beat on the top and bottom lines quarterly revenue topping $7 billion for the first time payment volume strong, up 20%. joining us now, david holt, has a $270 price target on the stock. you like it, david and the commentary in the release is bullish like it and commentary says they don't think the omicron surge will hurt the recovery and fell well-positioned for the cross border travel. what were your take aways? >> thanks for having me. visa's quarter overall is similar to what you saw from counterpart mastercard reported this morning, beating top and bottom lines, really good and what stood out to us, driving shares across shares in volume as we look forward to travel. >> what about the threats that

they face from fintech competitors which we've seen trade back significantly from recent highs, some halved in value, are those threats going away or stronger than ever >> i think those threats are always there, you're seeing that with the push down there, it's been removed with the overhang on shares coupled with the pandemic, overall, we think the fundamentals are strict, and look for cross border travel, kind of heading into the quarter, they were track ago head of expectation -- tracking ahead of expectations. 75% pre-pandemic levels. we'll see what they do with their investments which

unde underwhelm in the past quarter see this they redeem themselves, looks like they have been this quarter. >> thanks so much. visa up 5% after hours robinhood conference call set to kick off in a few minutes, we'll listen for the headlines an discuss big movers in both direction when we return sales are down from last quarter, but we're hoping things will pick up by q3. yeah...uhhh... doug? [children laughing] sorry about that. umm...what...it's uhh...

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we're back with a news alert on home depot. >> the retailer has a new ceo, ted decker been with the company since 2000 will take over the role of ceo as well as president as of march 1st. the current ceo will only stay on as chair of the board shares down quarter of a percent right now. back to you guys. >> yeah some continuity coming from the coo role. christina thank you. >> thanks. >> let's check in on individual after-hour movers a lot of earnings, apple share winner, beat on both the top and bottom line

robinhood plunging after r having larger than expected loss visa, strong payment volumes, up 20%. mondelez the bottom line miss, stronger than expected sales organ ic grothe -- growth less than 5% and western digital after weak guidance michael beat on revenue for iphone, for services, not so much for ipo. we know about supply chain constraints and interesting commentary how supply chain is improving and consumer demand momentum looks strong heading into the quarter that's going to be a biggie. what's the read through? >>yeah, very consistent quarte pretty much outperforming on all of the lines company bought back $20 million in stock that's a consistent

part for apple the nasdaq 100 held up better than the nasdaq today, those have served as growth plays and defensive stability type option. with apple it is interesting, warren buffett owns 5.5% he's not selling and they buy back 3.5% every year, very consistent in it is almost 7% of the s&p 500. >> mike, do you think that's the most important sentiment setter overnight? there's other quite significant decliners as well as robinhood obviously visa to the upside alongside apple >> yeah it's certainly one that one might fixate on over others but don't think apple is a situation where it's a macro tell, no, it's not telling us anything we didn't know about

the consumer supply chain, i think we're a step on that already. i think it's going to help but we're dealing with a whippy market the close today for the next few sessions is seasonal market, late january, pretty consistent, maybe the market can make some of that after a couple failed rallies which had a lot of wear and tear on short-term sentiment and the fact half of nasdaq stocks have been cut in half shows that individual investors are getting despondent, contrary fashion, it should help eventually, even if it's not tomorrow. >> i what was going to say where we stand on technical level, with nasdaq down and s&p down even with the dip buying we saw come in at those lows that crazy day we were down more than 1,000 points on dow and ended

higher. >> it's tenuous, from a long term basis, it's a plausible place to hang in because of the climatic activity low on monday and coming in today up seven straight days extremely rare and net positive, in other words, the market performs better next several and days and weeks from that point on. again just grabbing pieces of sentiment out there. and keep in mind the bond market is price in to what the fed told us they might give us in terms of rate hikes. has that been digested fully very difficult to say. so far it's not really causing stress fact yours in other parts of the market, credit is okay at this point >> started to impact the dollar over last couple training sessions mike, finally, tesla will of course be watched tomorrow after double digit percentage deline

today. >> that's another one. on a 12-month basis tesla is flat had a massive run higher, well off the highs above 1200 that's a retail sentiment tell more than anything else, don't think it's the crowded hedge fund trade, we'll see if it can make a stand at the flat line. >> this roller coaster week continues we're out of time on close, "fast money" starts now. live from new york's time square this is "fast money" tonight's trader lineup, guy adami, karen and dan and tonight -- stock on robinhood, breaking with any fresh headlines. move has come nearly a year to the date since rocking the market on stopping trading on retail stops a year later a 21 years old investor just awde