phil on porsche and carmax and all things auto-related. for the markets, the good news is, we're off the lows the bad news is that the s&p 500 is down under 2% and the nasdaq down 3% that will do it on qua"squawk on the street "let's send it over to tech check. good thursday morning. welcome to "tek ch check." today, the stocks are getting hit hard nasdaq losing 3%, after rallying to start the week. every s&p sector in negative territory. apple is a big reason for the decline. the stock that accounts for 7% of the s&p, nearly 14% of the ndx, down 4.5% we may be seeing safe haven status shifting in real-time if it is, that could lead to greater losses for the broader markets. here's b of a downgrading apple

last hour. >> the key here, you have to change when the facts change we're seeing consumer spending is slowing down. the demand profile of the customer is changing that's worrisome when you put the numbers together, estimates are too high and apple has been resilient when it comes to estimate revisions. they've been sitting at 645, 650 for most of the past year. and the world around us has changed. as we look at the next year, we think there's significant risk to these numbers that's what we're reflecting in our estimates and our ratings. interesting chat with him. a lot of it is macro based and the house view is recession nair and we talked about the b of a desk has a good chart looking at mohan's history.

when he had a buy, it tended to go up. >> his track record is pretty good his call doesn't have anything to do with what we were talking about yesterday. the potential cuts in expanded production you know, he says, you got to change when the facts change this is not a reaction to that news yesterday he says simply, the consensus estimates are too high they need to come down we're asking the question, again and again. have they come down enough if you look at carmax, overnight, what they said, sales weakened and it happened really quickly. if you think that consumer sentiment, is going to weaken and that can happen on a dime, then apple is at risk here and the stock down nearly 4.5% that's more than the ndx that's really going to change, as karl said, market sentiment >> and apple had been holding up better than everybody else, too. personally, not sure how much is a surprise we were talking weeks ago about, you know, this very idea that

the consumer was spending during the summer, on experiences the shift from product to services at the same time, spending down the savings, wracking up debt. was there going to be a hangover when summer ended? this is september, about to be october. and that hangover appears to be hitting. not only do we see new home sales down refi down. carmax and carvana down big. and iphones, when it comes to consumer technology, they're in the premium category it's not to say that the sales are going to fall apart. but this is the story that we're talking about now, as we've been saying on "tech check" for a few weeks now. we were talking about rates for a while. but we're going to talk about consumer demand, when q4 rolls around and the day after tomorrow, the trading day after tomorrow, it's q4 > >> aren't iphones supposed to be

special? we thought they would be immune. there's an upgrade today, along with that downgrade from a different brokerage house. but the key here, though, is you know, what's happening going forward and that vulnerability that apple was seeming to be immuned from we talked about the max and the pro and the higher-end models, offsetting some of the slower sales of the lower-end models. is that the case has the market been faked out again? >> you mentioned the upgrade of rose rosenblat. target was 160 now 189 they did survey work and asked which model people wanted to buy? the pro max, at 40%, despite the higher base price. it's up to you to look at a.s.p.

>> apple is fine apple stock is not fine near-term. but the company is as healthy as it's ever been >> that has enormous consequences for markets the key question that we've been asking for months, has the market become uninvestable that's taking off this week. today's sell-off adding to public markets the ipo etf, it's down 50% the stocks have gone worse the private markets no better, with proceeds at levels not seen since the global financial crisis our next guest launched 2020 ipos for coin base, and confluence, and aform, darmesh packer good morning to you. >> thanks for having me. i'm a big fan of the show. >> we're so glad that you could join us. we were talking about apple and the broader markets.

you're in some of the names that have been hit hardest this year. >> it's hard to feel positive on a day like this. you have to look at the long picture. we look at when as in the b2b software space for the last three years, 26 companies with more than a billion in revenue that's unprecedented these companies are trying to get to profitability, using profit-led growth, using open source as a way to cut down the r&d cost our expectation is in the b2b software space, where you're over $1 trillion, companies are healthier than they've ever been, and more profitable than they've ever been. when you keep that in mind, it's steady for the market. you can talk about the markets and the cost of capital. we focus on the things we can

control. >> if you look at the three-year to five-year timeframe, what is the right valuation? that's what the market is trying to figure out. was it was during the pandemic, when we talked about the digital transformations? or does it ever reach those levels and come back down to earth? what's the proper level for that >> yes come down to earth it might have regressed. the cloud-offering companies are creating revenue, as opposed to 8x or 15x last year. you might ask yourself, have the companies gone out on a 50-month or 60-month in the first place when you're down to the 16x multiple, it will become a -- others are upgrading at 5 to 7 it's regressing. and from here, you can control the revenue growth when companies go from $1 billion to $5 billion and become profitable, the value will increase along with the

operational performance. but i generally feel good about, you know, this 8x, ten-year average, and multiple to sustain. i don't expect the market to go back to 50x multiples that they were last year nor do i expect it to be depressed at 5 or 6x. 8x to 10x seems healthy. >> dharmesh, sometimes we can get too binary bye everything, spend it all, or sell it all. maybe it's not that. let me try out this argument on you. maybe now, tech is more investable than it's been in years because american tech companies are in a really strong position in mobile devices, nobody is challenging apple. there was a time that people were worried about samsung not anymore. in cloud, the u.s. has the top three players. in a.i., pretty strong in industrial iot, enterprise

software, we're not talking about huge challenges from elsewhere coming to bear and guy owe geopolitically, the in ukraine is, europe and u.s. is aligned i don't think maybe will be buying chips from china. doesn't that make a good time to invest >> i agree with your assessment. if you take the cloud software space, for example, we're playing in a market that's $900 billion. and if you look at apple -- amazon web services, microsoft, and dcp, collectively 150 billion, there's 7x for them to grow these companies are growing 30%, 40%. they're healthier than we've ever seen. and in the a.i. space, you see snowflake, at 2 billion, and surge at a billion these companies are bigger than they've ever been. this comes down to a dispersion

between the good and the not so good historically, everybody was benefitting from 30x multiples in public and private markets. in the next five years, the largest players in the market, are going to accrue value, a multiple of the runner-ups and finding those companies in this market, they are consolidating the market that are in categories like security and cloud and data it will be a good investment >> i want to talk about, "the times" has a piece out today, looking at tech start-up investments. they're down 23% in three months that's the steepest fall since 2019 assuming the numbers are somewhere in the realm of the true, you think that's short-lived? >> a lot of the private investing comes down to the crossover investors who write large checks as public markets have seen, a 50%, 60% drawdown, there's been

a vacuum in the late stage investments. in the early series investments, they're as healthy as they've ever been. you tick a 570 review, to launch a product to have a meaningful exit, there's plenty of activity companies from the u.s., europe and israel, coming to the scene at the early stage and that market is as healthy as ever and i expect to see healthy companies, five, seven years from now but the crossover, are not around nearly that >> speaking of ipos, the window has been frozen shut this year and we had general atlantic talk yesterday ceo, talking about the benefits of being public for start-ups. maybe they're not as compelling anymore. what do you think? do you think it's shifting and we'll see different exits like mna? what are you designing your portfolio companies? >> i would disagree. on the b2b software side, that

i'm on the board of 20 companies, there's a benefit of being a public company your largest customers feel more comfortable, riding seven-eight figure deals with you if you're a public company second, you can use the public currency for mna it can be a motivating and retention factor for your employees. on a day like this, it doesn't feel like that but the longer term, being a public company has its benefits. and so, i still think of our companies, think of ipo as the right path for them. i can tell you, my ceos that are looking at, you know, 2023, first half, second half, going public, they're not as worried about whether you have a 20x multiple they are more concerned about the uncertainty in the market. when you go public, you will have more for the four to eight quarters to beat and raise your plan and accomplish a long-term relationship with the base times like this, when rates

could be 5% or 3.5%. might be in a deep recession or a soft landing with so much uncertainty at the macro, it's hard for a ceo or a cfo to plan out the next four quarters they're waiting for more visibility, which i expect to get in the latter half of next year at that point, you go public, with a 10x or 20x, based on the growth rate. and you focus on what you can control. can you draw your revenue from 500 billion to 5 billion and can you go from negative 20% to positive 30%? if you can do that, you will be a healthy company in the public market we're advising our companies to consider that path, if they can. having said that, there's a thousand uniforms. i don't expect all of them to perform. >> a few less, though, than we've seen over the last few years. dharmesh, we hope you come back again. >> thank you so much

dow is down 430 points nasdaq off a little less than 3% as employers return for a push to the office and workers push for flexibility. there's a new cfo survey frank holland has those results. >> return to office means different things to different companies. a third of our cfos say, employees get to choose when they work in the office, if at all. they can stay 100% remote if they choose to the policies of the s&p 500 companies are bearing quite a bit. workers have to be in on specific days, one quarter say but less than five more than a quarter say workers get to choose the days they come in but less than five. a small percentage, only 5% mandate a five-day workweek in the office flexibility has been a major factor when it comes to finding talent in the labor market more than half of cfos say the

companies are hiring and they expect the headcount to increase only 10% see a reduction in the labor force. this general optimism about the workforce comes as there's mixed opinions about one of the biggest headwins inflation has not peaked 43% says it has peaked we'll get the latest on friday at the same time, the majority of the cfos see rates moving higher and closer to the moves that we saw yesterday, intraday. t two-thirds believe the yield will finish 2023 between 4% and 4.5% levels that put pressure on tech and high-growth stocks only 10 say it will fall from the levels to under 3.5% and important to note, none of them see the yields falling below 3% we also asked their opinion on the mid-term elections coming up in november. 57%. they say they're forecasting the republicans will win the house and the democrats will retain

control of the senate. that's it. karl, back to you. >> that's a ton of insight from one of the most important corporate offices we have. frank, thanks for that still to come this morning, we'll hear from amazon talk about product over there dow, s&p, nasdaq, off the lows but severe losses today. "tech check" is just getting started. ♪ another busy day? of course - you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud.

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telecom, media, entertainment stocks are falling more than most, as the nasdaq continues to slide we have dennis berman on that and his consumer subscription report hey, julia >> thanks so much. dennis, thank you so much for joining us today i know you have this new report out on the subscription industry what's been going on and the forecast ahead first, i want to take a step back looking at the market sell-off today and your broader focus on media, entertainment and telecom. what's your outlook? >> well, it's great to be with

all my old friends nice to see you, julia the conclusions from these economic reports, are squaring quell with what's in the market today. we surveyed and benchmarked 20 companies based around consumer digital subscriptions. we found not the healthiest of pictures the expected growth rate for the companies have gone down on the revenue side from 24% through 2023, through 8% and basically down to zero for the next three years and the stocks are responding accordingly. subscriptions are a good way to understand what's happening in that discretionary spend is being pinched. there's the idea that the consumer would hold on in lots of different ways across the economy. when it comes to subscriptions, subscriptions are not a must-have but nice to have they are choosing to spend less

on those and because of that, the discretionary spend is just contracting. and the companies that are selling the subscriptions have to do business in a different way. >> it gives a good sense of the health of the consumer many of the stocks are trading way down over the past year. wonder if you think the entertainment sector in general is investable right now or if there's too many risks and uncertainties? >> there's a couple different ways to look at this sebctor cit advertising is one of those, related to consumer spend. subscriptions is an area being pinched. travel, experiences, is a bright spot relatively for the entertainment industry you can see that in terms of the number of concerts and how much people are willing to spend. across the sector, we're seeing recalibration because inflation

is changing budgets. when it comes to people making investment decisions, they have to do the best guess it's hard to determine where inflation lands and where consumer behavior holds still. in that context, i'm not surprised that people are choosing to sell as they are today. >> dennis, good to see you what does this mean for the trade-off between profitability and content spend? do we see the streamers and legacy players pull back next year you see an amazon ready to get the boxes with the thursday night football advertisements on it part of the flywheel who pulls back and who doesn't >> i think it's a good question. there's certain companies for whom entertainment and streaming have an opportunity and they're going to make money. those that stand in investment committee meetings and make decisions to buy or sell stocks,

they are asking what is the true profitability of the enterprise being conducted. the growth was the mantra today. i expect two things to come out. one, scaling back of lower cost subsc subscriptions, potential for more mergers and more bundled subscriptions and the way to get back to the cable bundle and, third, i expect there to be the change in who people are willing to target as subscribers. there's less spend trying to acquire each individual customer >> interesting a rebundling of digital services my question is that advertising is crazy about advertising we have disney preparing to launch its a ad-supported service and netflix, as well we see the other companies already have had the

ad-supported services out there, pushing them to the forefront. do you think we're going to see a wholesale shift from consumers to the ad-free to the ad-supported services? and who is best positioned to win here >> you'll see that people are willing to tolerate ads and enjoy entertainment that might be outdated or not on the cultural vanguard. and i expect those trends to continue if you were spending 10, 20, 40, 60, 80 dollar and you would cut that back in half. you are probably going to spend more times watching ads while watching tv. it's all strange we're back to the future here. we have gob through this tremendous transition and we're going to be watching ads that's the world of 2022 >> bundles and ads dennis berman, thanks for joining us >> thanks so much.

great to see you all as we head to break, we continue to be all over this sell-off the dow is up nearly 500 points. more than 1.5% the s&p off 2.25%. the nasdaq off 3%. that's more than 330 points. check out shares of peloton. it is a big loser today. the company announcing it will begin to sell its products at dick's sporting goods. the first brick and mortar partnership it announced stay with us

welcome back to "tech check.

i'm frank holland. the score pce was revised higher a rarity for those pictures. the cleveland fed president said current fed interest rates are not restricting the economy. concerns about higher prices, weekly ly jobless claim went below than expected carmax is the biggest loser in the s&p 500. now down more than 20% after reporting earnings far below estimates. the company blamed economic factors that make cars less affordable other auto-related stocks are down sharply in germany, porsche rose on the first day of trading the carmaker is one of europe's biggest public offerings ever. >> franks, thanks very much. let's start back to apple. the production pullback is not

swaying our next guest he is keeping an eye on cyber names like z-scaler and palo alto markets. we are glad to have him. welcome. >> good to be here >> you want to talk the broad market or is apple so important >> i think apple is well-covered all morning. i've been watching on and off. broad market, if we want to talk about tech stocks and what's going on with tech stocks, it's impossible to really broach the subject without looking at what's been going on with the mixed income markets until we see some abatement of the supply in bonds, it will be a tough environment going forward for tech stocks. we had the two-year and the ten-year yield move in earnest since beginning of august. some 135 basis points.

in a matter of two months. so, we're above -- i think 4.2% for the two-year the ten-year, around 3.75%, 3.80%. we're seeing the 230 spreads even further that's ominous signs of recession. in the past. we talk about tech, no profit tech tech stocks in mbusiness models. these are not areas of technology where we think investors should be today. and saying that, there's other names that we are very much bulled up on this environment and looking out in the next 12 to 24 months >> is it limited to cyber? we talked about cyber as an island within tech for a long time cyber and the cloud, gets most

of the love from our analysts in our group. but megacap tech, i think that falls into this, where i think megacap tech names like microsoft, one that can't be overlooked we've seen microsoft deliver strong numbers in its most recent quarterly print and if you look at other metrics for microsoft, one can buy microsoft today. its peg ratio is at a trough low. you're looking at 2018 levels. you can buy microsoft, in q4 of 2018, mind you, we were talking ourselves into a recession and stocks were just falling off, just getting wiped out. what happened? stocks didn't go to zero we turned around very quickly in 2019 and started moving higher and microsoft was trading about $100 what the point here is, p.e.s have come down p.e.s relative to growth, we're saying, are a trough multiples

these things make sense. palo alto, z-scaler. they have reported solid prints. >> john may have a question. >> i'm sorry >> those are some of the ones i hope you talk more about i can see the argument in an innovative tech company, whose stock is beaten, up is the worst house in a good neighborhood sure, maybe you can't slip it but if you hold on, you'll be in a good position. here at "tech check" we want to make the viewer smarter about those kinds of stocks. is that the argument you're going to be making with a palo alto? and crowd strike, along with those?

that's a good point. we're saying it will be difficult to buy stuff here and flip out of height in the next three months, nine months. this is a tough environment we're in i don't think it gets easier in the next 12 months investors, i think, need to focus on stocks with very strong modes and sustainable businesses that can endure. the fundamentals are strong. you look at fundamentals with growth some of them are fairly cheap. it behooves investors to look at these strong balance sheets. this is a tough environment. it's been quite some time since we've been in this kind of

environment. i would just go back to q4 of '18. from 2015 to 2018, we raised rates 225 basis points in 2018, the first three to six months, we want back to where we were and the stock market took off. i'm not saying that's going to happen i'm not saying the fed will turn back straight away it's something to consider at the end of q4 at '18, when we thought that stocks were going to go to zero, they did not. and things did happen. we want to highlight some tech stocks with strong fundamentals this morning >> and you've given us good names in sectors like microsoft, cloud, cyber security. the environment was very difference back in the end of 2018 you didn't have inflation at these levels this is more of a place to hide out. is that correct? that begs the question, is the investor better off in cash here

>> that's a great question for investors. something every investor should be thinking about. when they're looking at, you know the cash accounts do i want to buy stocks or be in cash hiding out, i'm not sure it's not just about hiding out. given from the levels that we've come from, we think investors should be buying these stocks today. i don't think they're necessarily hiding out things can change. markets are dynamic. we take our best educated guess what may happen. having said that, we think that in instead of being in cash, one should be in the cloud and cyber names, and megacap names like microsoft, that's gotten pounded recently we think these are all better alternatives than being in cash today. >> thanks for coming in. >> thanks for having me.

more on today's sell-offs. we'll be right back.

a call on amazon, off of the marathon product announcement yesterday. i spoke to the senior vice president at amazon, dave lynde, about the lineup, including the flagship kindle that you can

write on >> a new product, that is my favorites, kindle scribe a 10.3" paperwhite display and the magical thing, it acts like a pen there's no charging or syncing you write on it. it has a feel of pen to paper. you can have notes and add sticky notes to books. if i was reading a nonfiction book, i can write a note to myself and it's a fun product that the team was able to invent. the notes will be synced to the cloud and will be able to have the ability to share those that will be a couple months down the road. we will add that just as if you had highlights today. since the inception of kindle, people have read trillions of pages of books it is our most loved devices >> amazon's sleep tracker, halo rise watches you sleep, for 140 bucks.

>> the nice thing about it, it's contactless. there's nothing to wear on your wrist. there's nothing to worry about interrupting your sleep. you go to bed. even if there's a dog in the bed or your partner, it will sense where you are sleeping and give you highly accurate sleep signals. it has built into it an alarm clock. no cameras or microphones but a light that you can wake up to smartly a sunrise. artificial sunrise you can wake up in a great way >> we talked about logistics and supply chain challenges, with q4 a trading day and a half away. >> supply is starting to free up there's hot spot areas transportation and joe listics are still a little tough and unpredictable. i'd say, just general supply is becoming more available. at least for the products that are in our purview

it's hard to predict what q4 will look like in this economy >> sure is amazon announced updates to its fire tv line new echoes and in an uncertain holiday corner and google's consumer event is a week from today. >> these amazon devices, they've got to be on the more discretionary side of things, the first that consumers will opt out. that's not the point for amazon. it feeds into the core business, the prime flywheel it will be interesting to see if that encourages or underlines that value proposition that's been successful over time. talking about the macro softbank that's next. don'gowa t ay.

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you look at the softbank holdings that are public they have stakes in. it's brutal. not just today but for the year. these are the names that have been sold off really hard in the current environment. we'll take a look at them. doordash, grab, wework opendoor c compass. we look at a lot of these. still looking for a third vision fund >> i thought 20% was the magic number does it mean something that we're going up to 30%? >> well, we talked about how bill gurley sees small cuts. you get 5% to 10% reduction and you get all the pain an none of the gain that's what gurley would say >> indeed. >> we'll see if the market responds in a way that bails softbank out of this hole that it's in. it was the poster child for investing in growth and growth is not the name of the game for the markets right now.

>> karl, one more thing, if you want to connect us to the macro picture. the market took a slide down this is companies with real layoffs. we talk about hiring freezes but a 30% cut is a big one perhaps some of the pain the fed wants to see we'll see, jobs friday, not too far from now still to come, micron has a report later on today. we'll talk about what to expect from those results, as we try and save some losses s&p back to 38 at fidelity, your dedicated advisor will work with you

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welcome back we heard thoughts from cfos on remote work earlier this yhour but what about the impact of a recession? our next guest sees demand gues strong and also doubling down on hiring despite the broader slow down let's bring in the zoom ceo henry shock. henry, welcome so i'm actually curious, though, about growth rates in a slower growth environment and whether you're going to have to lean into mna your stock and your results have put you in a relatively strong position are you going to lean into that and consolidate? >> yeah, thanks for having me, john the first think we think about in your business is not just growth but growing and profitability. and i think that focus in our

business is what has put us in good spot or better spot we've been focused on the top line and bottom line last quarter we grew 54% on the top line we did that with 40% operating margins, which is very rare in a tech company. that puts us in a good position to do a lot of things, hiring. i think today we're focused on providing the best product to our customers, sales, teams, marketing teams. and if we see a company out there that accelerates our product road map we are going to be opportunistic on mna. >> what about that classic land and expand motion in enterprise tech how much opportunity in your existing portfolio do you have to expand within your current customer set and continue growing revenue that way

>> yeah, great question. we are very underpenetrated within our customer base just within the enterprise segment of our business we see an over billion dollar opportunity in seats alone, expanding just on seats. i think what weir seeing from an economy perspective, though, sales are getting longer in international deals. in q2 one of the largest technology companies in the world came to us and said, hey, in q2 we've frozen all spending across the enterprise. and we had a large expansion deal to get across the line, and that deal usually gets done at it business unit level what we in that deal we have to get approval and that's not a normal situation for us. and it elongigates the sales cycle, but we're still getting those deals down we're just seeing those deals

take longer they have historically >> how about for supplies? is it a different world than it was 12 months ago? >> it is absolutely a different world than it was 12 months ago. a lot of these companies were raising these huge rounds and huge evaluation and they were able to entice people to say, look, when we're a $200 billion company, and people were being enticed into these companies burning dollars and now realize the companies have a long staying power are those that can grow but do that efficiently >> there's still some stock element to comp. >> how are you finding hiring? are you seeing anymore tightness in the labor market now than you were a few months ago? >> no, i think we're seeing hiring -- we're seeing a much

looser hiring environment. we're having a lot of luck hiring people at zoominfo. the environment today to hire folks is a lot different than it was 12 months ago. >> what's your investment in technology yourself when it comes to spending on the cloud, spending on multicloud-type efficiencies are you spending more in the coming year than you did in the current? i i don't know how you want to measure it >> we're absolutely spending more on the cloud in the current year than we did in the last year part of that is part of the function of the business growing. we use google cloud, amazon cloud. we use snowflake, amazon bit query. we expect to have significant growth across those platforms as well

>> finally, one thing we begin to talk about today is dollar strength and how that affects your pricing decisions overseas. can you describe what the thinking is right there? >> yeah, today overseas is a small part of our business it's about 13% it's the fastest growing segment, growing about 85% a year, so continue to see the opportunity to grow there but not creating the headwind problem to companies exposed internationally. >> thank you >> meanwhile, guys, markets have clawed back some ground. the dow still off about 300 points, nasdaq off about 2%. more on chips in a moment. tech check back in a moment. bringing venezuelan flavors to new york. people love our yoyos and cachapas. we've become a foodie destination. larry doesn't just create mouthwatering dishes; he creates opportunities. small businesses like larry's open doors

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let's get a check on coinbase that tock is down more than 8% amid wells fargo sell-off. the banks saying it'll likely continue to struggle from retail price declines and competition from the likes of ftx and binance, both still private exchanges. we are likely to see more reg rlgzulation, they say that hurts

coinbase's volume and revenue. by the way, we haven't checked in on crypto this hour bitcoin is holding about 19,000. >> indeed. of course on that overweight at wells looking for 15% down side. guys, we've talked about kind of the light week it's been in earnings, but tonight we will get too big ones, nike on the consumer front and nicron. amd, nxp one of the worst laggards the micron ceo is going to join us on squawk on the street tomorrow in the 9 a.m. it's going to be interesting to ask him about pricing and spenning overall. it'll be great to get insight on that, and i'm usually interested in nike because of the setup for the consumer heading in, again, to q4. tomorrow the last trading day before q4 starts, and boy, are there questions about this one >> i mean both these names, guys, are going to be really important for us to figure out

that consumer sentiment. remember micron caught investors off-guard last month by warning of rapidly declining computers what these two are certainly going to determine the direction for tomorrow and maybe head. >> s&p now reporting three quarter losses let's get to the judge enand the half i'm scott wapner front and center megacrushed big cap tech getting slammed yet again and heading for another down week. are the stocks in the market now in even bigger trouble than we thought? steve weiss. let's go to wall, check the markets. 12:00 noon in the east and we do have losses. we have losses across the board. dow is down 377. s&p down almost 2% the nasdaq, though, that's where the focus remains. 2.5% decline