down 82 points s&p down 11. the dow is in positive territory. up 48 points because that is where the performance had been with the sdindustrials. strong results from exxon and chevron. that's it for us today have a great weekend and will see you back here next monday. right now it is time for "squawk on the street. good morning i'm carl quintanilla with david faber and jim cramer apple, amazon and chevron with 10-year dips higher again as core pce jumps .50% we begin with the ongoing tech route. amazon with disappointing guidance apple and intel moves to bell tightening.

plus, the musk era begins. tesla ceo in charge of twitter and former cfo and legal counsel all exit the building. big oil profits. exxon and chevron with robust results for the fourth quarter we talk to mike wirth this hour. let's start with tech. apple with the record revenue for september. despite iphone sales shy of consensus. amazon tumbling after missing on third quarter revenue projecting weaker sales for the holiday quarter. jim? >> there is no doubt about it. amazon did not deliver anywhere near where people thought. what i was trying to do last night, david, trying to figure out how to val thue things. amazon web services is doing $80

billion. now look at the new amazon with the market cap which is lower. you say wait a second. i'm getting pretty much the rest of the company for very little money. the ad business was very, very strong no one disputes that >> retail was not bad. >> projections, i think, were reflecting that some of the customers are not doing that well and giving them some breaks how about that >> what do we make of the slowdown in growth of amazon web services is it because of continued and increasing competition from the likes of google and azure and others or is it a reflection of the slowdown in the overall economy? >> i think it is the latter. i think it is reflection and customersthemselves are hurting. one of the things that is happening is at great speed when the fed raised rates at great speed that the narrative changes

quickly. i think some of the customers are saying, listen, we need a break here. >> step back let's not commit. >> yeah. i think, to me, andy jassy will take care of the situation >> yes >> it is difficult to say there is one person to come in and take care of it. he will take it. he knows how to fire he knows how to right the ship i think amazon web services is under valued in the business >> you said $82 billion run rate 20% year over year excluding foreign exchange impact? >> you have a company valued at $1 trillion. you have this thing at 8 3$830 billion. is the rest worth 70 >> that may be the case. >> apple is more interesting i'm sorry.

go ahead. >> i was going to point out to carl, jim, they said they saw an uptick in customers for amazon web services for folks on controlling costs which is what you anticipate >> i think everybody is sk skittish i didn't think amazon -- when you give a forecast for amazon, you will be wide in what you do. what you want to think about is amazon net share and righting the ship and they are very oversdtaffed still. i thought they made cuts meaningful maybe they were in the wrong place. david, you know they have far too much staff >> amazon hired more in the pandemic than any corporation in history hire. >> and they have to let people go the war's over. >> one notion that is talked about this morning is aws grew out of a fit of start-ups when

money was cheap. that is not going to continue to happen at the same pace. >> i agree with that to some degree i agree that some companies are not doing that well and saying, we need a break here the start-up is a new cause and effect remember, you are not getting the stock at the top look, i guess i want to make a case for this company as a longer term winner, but not something you can say to him will win i think he will make a series of moves that the costs are back in line costs are just out of whack. you can do something about that. demand is not out of whack except for some amazon customers. the actual company of amazon has been demand. they are really overstaffed. >> and continue to be. in your opinion. >> you agree >> i don't know where. i think that may be the case across a lot of tech we talked about it yesterday

specifically, obviously, to parts of meta. given the numbers we've seen and given the fact alphabet hired 12,500 people last quarter when it was not anticipated i do think there is a belief there is some fat to cut, so to speak, that will need to take place. by the way, that lends to people believing next year is not the easy year. >> the layoffs in the country will be centered in silicon valley one of the things that is disconcerning, carl, is when wi asked where they are hiring. they don't know. the company is so big and so many divisions and so many things they are working on that is not panning out amazon has it, too they lost the control of their own internal hiring. >> well u , others would say the company is under staffed in

certain industries, but requires a huge career hop. >> i think -- i'm waiting for a reduction in force in blah, blah, blah they don't do that i had caterpillar on this. you think caterpillar knows how to do this stuff i don't know if they are excellent at firing people, but they know what each division is doing. these companies are like the army the old faang are like the army. >> which means what? >> my dad was in the army. they lost his division >> he was 4p >> he was wearable >> he was on a cruiser they lost the cruiser. it is like the army. where is the 6th army right now? the philippines. that's what it feels like. i listen to the companies. i get the sense it is they have operations they started when things were better and they are

saying what are you doing? what are you doing in health care you know i'm right do you have a health care division what are they doing? is that like a teledoc you have teledoc they have lost control. >> why do you think apple is more interesting than amazon >> okay. i think services is very much like the china and gaming. i think the dollar there -- they hedge. the dollar is horrible when i hear that -- if you go back two weeks ago and we were hearing the stories, i talked to tim cook last night about suppliers and cutting. he said you can't ever judge from those stories because we change supplies constantly take that off the table. one thing i liked that i did not

get from the information is they can't make all of the 14 pros and maxs they are way behind in ordering. that is the watch which is doing incredibly well. the universe when you buy a phone and buy the rest of the ecosystem has just continued to ramp where is buy now pay later you know they have a bogus buy they don't have bad debts. a lot of the buy now pay later is like whoa i have scoop >> you have a great staff this morning. the average household has 1.8 device ios user the more device you have, better long-term the value and return >> services, i suppose, as well. >> 900 million subscribers no bad debt. really doing well in asia.

people talked about this recently what matters to you? indonesia and brazil matters that's what apple is doing well. i thought speaking with tim and luka that this was a very good quarter. given what is happening in china and china numbers were very good one of the few companies with good numbers in china. given the fact the strong dollar obliterated billions of dollars of profit. billions the strong dollar. >> service, gross margin 75%. it was down. it does give you a sense you are reading about that as well as to how profitable the services revenue was >> service revenue is fantastic. people just pay and you get the receipt at the bottom. i'm telling you they want -- the next move is financial and it's

big. >> what does that mean financial and big? >> they want to be -- >> they did that credit card with goldman or whatever >> you are so dismissive >> it has been around for a while. >> i'm saying this is the next big initiative >> what is the next big initiative >> the things you hear about the phone and financial services >> buy now pay later >> yes yes. >> high yield savings. >> yes >> credit card >> everything will be on this. >> really? they will work with a financial institution? they are not going to take over? >> goldman goldman's got this business. >> although the buy now pay later is on their balance sheet. >> it is a -- yes. they have no -- luka said there is no default. one thing and steve said it last night from t-mobile. you will not default no one will have the phone taken away because they didn't pay a

bill use the macy's credit card and decide not to pay macy's all right. i have crown collection agency caught up with me and i had to pay $1 a week for the next 300 years. versus apple they take your phone >> you can't live without that >> you can take my house, which they did, but you can't take my phone. >> took your house >> let's talk about twitter. not for the last time. it is no longer a public company. we told you it would not be one this morning the musk era begins. it was yesterday when i tweeted myself about the fact he had taken charge in a rather dramatic fashion number of the top executives, including ned segel and parag agrawal.

essentially fired and told to get their stuff and get out. >> why was he fired for cause? >> well, there is legal action still ongoing. >> ned segel >> it will continue to be ongoing with mr. musk's belief that the executive team and board were aware of -- of -- of things going on at the company that were not disclosed and should have been with regard to the number of bots on the platform and what the whistleblower knew and when the whistleblower knew it. all of this will end up in court at some point. we will see. one of the reasons why at least, heard they were not willing to take or accept what they say was an offer of lower offer to complete the deal because the ceos in question wanted their golden parachutes and indemnity against future lawsuits. we will see where this goes. >> you weren't surprised that

segel was fired for cause? >> no. it follows along the legal strategy at this point that musk and his team are going to have now, is it worth asking that question you will be pursuing that? it is damaging even if they are the ex-executives. that is damaging to the current company. >> exactly it is not like ned segel was dis disliked he was loved for cause? maybe it doesn't maetter if you are replacing everybody, you replace everybody. >> he laid out a lot of money for twitter. i don't think ned's will cost as much >> you saw mr. segel's tweets about his years and the mental m muscles he developed this is elon musk's show he is the chief at which time. chief twit

he is running spacex and tesla we will have to see what changes he makes and how quickly he makes them there is a belief among the investors who both put in money for the equity or rolled as vin indicated in saudi arabia. $1.89 billion of equity. there is a belief we know he is overpaying for the asset that mr. husk musk will create greate over time. you can't question the possibility that would be the case >> he is not looking at twitter the way we are he has ideas you look at twitter as a canvas. he is painting a different picture than what we think i can't wait now listen, on monday, the real donald trump will be back.

>> advertisers s will no longero the platform the next few weeks, from what i'm told are going to be in some ways difficult mr. musk will be at twitter headquarters, i'm told, with fre frequency as they decide who is staying and leaving. i have not confirmed as many as 7 75% of the staff will leave. there will be a reduction of levels if you want to work from home, you are probably -- that was the case at twitter. i'm surprised to see the pictures of the employees there to greet him so few have been in the building every day. he will make a lot of changes. he needs to do that to try to get what he believes is the app he strdescribed in a place thats a strong one for advertisers

look at all those people that were in the building. >> walter is still shadowing him. a look back at the life as a public company annual return of 8, jim, is lower than the s&p and nasdaq at 15. >> they have no revenue growth we will talk about pinterest later. any little inflection is really positive they had no revenue growth they haven't had it in some time one reason why people want to get in on what musk is doing is because he has a time to rise to the situation. there has to be something more there when what they have been able to do with it anybody who is sdeeldealing wite on an advertising basis, it is impossible to get commerce done. you can't get commerce done with them andrew was talking about earlier

that advertisers don't want to be directly involved there are a lot of advertiser whose want to be in directly i want to isolate 07201. they can't do it in other words, you want to put an ad for san miguel the people in ashland, oregon will go fbuy into that. it is the worst. >> if you ran gm, would you advertise on twitter >> if i ran gm absolutely >> you would >> absolutely. >> even though he is your comp competitor >> he will see your ad strategy. runs tesla >> i think i would do it i think i would do it. there is not that is not c compe competitive. it is educational and necessary. gm has interesting cars and trucks that are worth seeing >> it would be to see if you are

gm and you feel comfortable advertising on the platform givencompetitor. i'll do my ceremonial deleting of twitter on my list of stocks to watch okay let's move on. >> still on the s&p 500 until tuesday. until the 1st. s&p indices. what a run >> what a run. >> public at 26. >> could have been a contender when we come back, moving from tech to big oil mega profits we go inside exxon and chevron don't miss mike wirth. he is on shortly after opening bell as we take stock on the inflation data and consumer sentiment and pending home sales at 10:00 don't go p anywhere.

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plenty to get to opening bell coming up in eight minutes. futures have a little bit of bounce nasdaq will be troubled by tech earnings don't forget llu can listen to the opening be podcast we're back in a moment

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data driven enterprise accelerator. >> announcer: the opening bell is brought to you by nuveen. a leader in income, alternatives and responsible investing. let's get to the mad dash with jim and take you right to the opening bell final day of trading for what has been an interesting week with all of the earnings costco is what you want to

discuss. >> controversial where with earnings have had many different shades and colors i'll give you one that is a start. costco this morning. morgan stanley white space under appreciated. top line market is healthy initial signs of disinflation. good warehouse expansion david, we could be on the verge of what we all like is costco. fee hike and special dividend. it could all be right there for us for those who want to own costco right there. >> okay. it's right there >> yeah. i am saying that's a good news story. >> the stock is down less than the broader market this year >> i tried to come up with something that i thought objectively was a good story to buy. that is what i was interested in trying to come up with anything that was a new thesis that has

never been tried before. i wanted something tried and true costco is the one. >> okay. >> great cfo >> in this market, it does seem as though there is rotation particularly today we had let's call it not a great week for mega cap tech >> you got that part right >> i don't know if you can consider meta mega cap meta and amazon and alphabet and microsoft and apple is a bright spot the rotation into energy names exxon and chevron. >> t-mobile. >> we'll talk about that in a moment >> and down day for caterpillar. this is not the time to come in. these are from analysts who cannot believe how good these companies really are jim appleby, running

caterpillar, and it is how we thought about tech a couple years ago. >> he has a multiple year run. >> deutsche bank says the quarter was good we have to draw a line in the sand they think the backlog is peaked >> peaked? they can't make all that they need and we haven't gotten the federal government orders yet. >> you don't think macro will be a headwind for cat >> the biggest problem is how to meet demand. a nice problem to have >> a key distinction it is not an analyst -- it is not a penguin. >> the problem with cat is yo one is used to seeing it being this well run. they think they will screw it up they won't t-mobile did it is a juggernaut 1.6 million at tnz combined. high speed internet ads.

578,000. that's in your wheel house. >> it is it is fixed wireless which is competing with broadband we talked about it there is limited capacity. they can do that in area where is they are not delivering cell service. it is not across the country, but that's a big number. that is a big quarterly number to add over half a million >> sever told me, you should be concerned. >> it starts adding up that said, our parent company comcast and charter is adding a lot of wireless subscribers. >> morgan stanley today, overweight >> i actually will put that in my pillow and blanket. i need something in my love yolovey blanket. >> they have pricing power

>> i did not think it was pie in the sky. the broadband pricing power. what do you think of that? >> i don't know. it's competitive out there we'll see. t-mobile at a lower price. >> all right [ bell ringing ] >> strong numbers right now. >> we have a market cap that is $25 billion below t-mobile market cap >> extraordinary extraordinary. >> excuse me $30 billion. we just opened >> it changed a second ago >> yeah. a lot of stocks. pioneer is one of my favorites pioneer supposedly missed. this is the $64 billion company. missing on revenue and missing on dividend and earnings the stock is up 4. it's just nothing in tech can do anything right

you cannot do anything wrong if you are in the permean david, you can drink the stuff and not do well with a straw >> i actually almost did it looked like tea >> i tank fracking fluid once. >> that and the permean. >> you drank fracking fluid? it tastes like nitro starbucks nitro. >> we have production down there which is overtaking pipeline capacity >> we got to talk to big mike. mike wirth the aversion of building the pipeline is starting to play a role in our ability -- i know people are saying they are busy trading and don't worry about it selling the spr. by the way, there are people who are defending the spr as being strategic. >> yeah. >> is it strategic, david?

>> i don't know. >> just give it to me. no, actually, jim. it is political. it is the most ever drawn. no, it has been done before. not at this level. trump did it nowhere near the whole thing has been covered. it is like dom deluise when he was triple -- >> you can play me anytime you want you won't be as good as i am playing myself >> are we on the "today" show today? >> i was i talked about elon musk >> i was dialing around. there is faber on the "today" show >> lovely to see them all. >> good. that's good. >> darren woods was on squawk this morning and talked about north american refining. doing quite well basically making the argument, jim, to your point that the white house is giving opec pricing power. you shouldn't be surprised when

they use it. >> yeah. i don't really understand. the white house, i think is trying to come to terms with keeping prices lower trying to come to terms with whether the saudis -- i met with the high level saudi official recently who said we're your friend i know that. i know that. everyone is confused about the u.s. oil policy. everybody. the oil companies, countries, everybody. don't you think, david, the biden oil policy is difficult to get your arms around >> i believe you believe that is the case yes. you have been critical of the biden administration i think i'll join in that criticism by any number of people >> i resent that >> why >> because i'm talking about oil. not the administration sg >> what do you mean? >> you were being critical

>> i don't know. what are you talking about >> you cut the spr down this much and it has never been down this much and it is to keep the prices lower at the pump it is not an oil embargo for those of us who lived through '73. >> we had a war break out which could take millions of barrels off the market >> you sit down with mike wirth and you say what pipelines do you need to produce so we don't deal with opec plus. >> how quickly do they build a pipeline >> two years >> would that impact the market price sooner than that >> yes >> the prospect of the pipelines? >> yes we will talk to mike about that. that's all i'm talking about if ferc -- now one thing that biden people will say is we are pumping at 12. we can pump at 14.

you need to sit down with mike wirth. what will happen then is a photo opportunity when you sit with somebody from big oil. that will not help in the mid-term elections unless you whiteout mike wirth. you hear me? >> i hear you loud and clear. >> what did i say? >> i have no idea. >> thank you >> you're welcome. >> i rest my case. >> we didn't get to intel, jim the guidance looks like a typo street at 66 >> so, this is one of those -- first of all, i will salute pat. mobileye was really good pat gelsinger, the ceo very strong. let's give him there >> sold 5%. >> he told me over and over that would be g.ood. not only was it good, but it was

great. pat did that trerrifically. mobileye is terrific pat said they are taking shares in pcs that i cannot confirm. what i like ed about it was they had more cash flow than i thought. i was concerned about the dividend and now i am less concerned about it. >> because of the cap x? >> yes the cap x is meaningful. pat seemed to be realistic of the problems of the industry no pie in the sky. very straight forward quarter. it was better. it could have been much worse. pcs are horrendous i'll say it, david, pat did a good job >> say it again. what >> pat did a good job. pat gelsinger. >> wow. >> no, it was good it's not that nice >> getting less nice all the time >> he is not as nice as he used to be. i'll tell you that much. >> people are joining us for the first time when jim calls somebody nice

it is all tctually an insult. >> pat used to be a nicer guy. >> we look at iphones in line and auto strong and now samsung says cap x and semis look decent >> semi is down a great deal i did not like how texas handled the conference call. when you talked to companies about what chips people need, it is texas industries. i like what is happening there i wish they ran a better school. let's go back to apple for a second i do have the luxury of having a nice call with tim cook and luka, the cfo, before they report this is something we have been doing for years. the stock service what i was hearing is pretty much insane. apple is constrained in all of the high-end products.

the mac is doing incredibly well the watch. if you were making the watch as a separate company, it would be a 90 pe. the love for apple worldwide, the fact that china was amazingly strong and you are listening and watching -- of course, i'm watching the stock going down, down, down i look at numbers and the iphone is not that strong i'm saying, here is what you do. don't look at the tape don't look at the tape have confidence in yourself. obviously i'm soul searching i still have confidence when i hear something good from people i trust -- >> all right it is up they are telling me to move on >> oh, i was in the solliloquy mode

you are full of sound and furry. >> t-mobile is up a lot. 7% our parent company comcast has given up all of the gains from yesterday. charter with earnings that were below. i want to come back to credit su suisse big story yesterday. little faber report. a lot of components was the restructuring which was anticipated. not the amount of delusion not that $4 billion in new equity raised from the saudi national bank, very wealthy family in switzerland, qataris we did not talk about the disposition of the investment bank in the united states and how that will work i wanted to come back to that quickly. as reports were michael klein, a member of the board, working on

the restructuring. he will now be running the new first boston when that becomes -- starts in the separation of that company which will take place next year. then the actual taking public of what is described as, remember, a boutique, but not a boutique it has capital markets operations it will have $10 billion corporate lending book $10 billion of risk assets a boutique, but leveraged finance underwriting business. asian underwriting business. it has contracts with the old sales and trading cs that will merge with klein and company. michael's advisory boutique. over $1 trillion or $1.3 trillion of volume in the last ten years of deals advising on deals. that's going to become a company

spun off in one fashion or another. split or ipo from cs in 20 this is the expectation you will have klein own a good amount of shares of course, he is merging his company into it. you have the current employees own a decent amount of shares. you have cs own a decent amount. they will get them below 50% you will give out equity to the new hires. that will be the future for what we will begin to call first boston i am told that as part of their efforts, they will raise some money. it will be -- they have been offered what i'm told is $2 billion in what would be a debt security issued by cs that would then convert into equity in first boston it doesn't mean they will take $2 billion

probably a bit over $500 million is what they will take, i'm told a lot of alternative asset investors are involved there and a number of others that's the plan at this point. just wanted to get to that on first boston at the 10:00 hour, leslie and i will talk more about what's going on with credit suisse and reaction of the stock market as you see for the first time in some time positive one i want to move on to chevron you ready? >> sure. >> let's bring in mike wirth chevron shares as you see are higher 1.5% this on the company's earnings beat it did report a profit of $11.2 billion in the third quarter that was just shy of its last quarter which was a record let's bring in mike wirth. the ceo of chevron for a first

on cnbc. mike, good to have you here. thanks for being with us any number of different questions here you know, production was better than expectations. i'm curious, i guess, on that front whether that should continue to be the expectation of the market? that you will mbeat the expectation of what was so far sfwh. >> david, it was a good quarter. we have been growing steadily. we had a record in the permean basis o basin. we had the strongest production from australia natural gas business the world needs more supply and we're delivering that and winning back investors we delivered higher returns. year to date capital of 20%.

cash yield to shareholders 7.5% if you take the dividend and buyback together we are delivering lower carbon we trade half of the market multiple energy represents 5% of the s&p 500 by market cap with more than double that in earnings. we're performing well and we intend to continue to do so. >> yeah. it is funny you mentioned the multiple i'm curious the buybacks continue at 3$3.75 billion in te quarter. that was in line with guidance at what point, given the chart right now, you feel my stock is getting less cheap and it's not worth spending that much of shareholder money on buying it back >> david, we're doing it all quarter in and quarter out year after year we raised dividend for 35 years in a row we were up 20% beginning in 2020 when many in our industry cut or

held flat. we had been investing to grow, traditional and new business spend is up 50% versus the same period last year we have a strong balance sheet and bought shares back in 15 of the last 19 years. we have a very balanced approach to capital allocation. we have been consistent and disciplined through the cycles of the business. we intend to continue to stay consistent and disciplined as we go forward >> mike, jim cramer. great to have you on the show. >> good to see you, jim. >> mike, i read the methane report you put out it is rather extraordinary it makes me feel we are thinking of oil companies incorrectly i know there is a view with larry's view from blackrock. oil is good or bad this group is brown and this group is green what you are doing with methane is saying listen, we are taking a leadership role and stamp out

methane wherever we can. this distinguishes to me that chevron is well ahead of everybody else are we ever going to get to the point we will not consider oil companies equal when it comes to getting rid of emissions >> jim, what we are doing is try to meet the world's growing demand for energy and do it in a way that reflects the expect takes for lower emissions and lower greenhouse gas emissions we have been a leader in methane management we design and operate facilities to keep the methane in the pipes. we are seeing effective techniques to identify leaks and emissions and address those. we report transparently. we intend to be part of the future and meet the world's needs today. also invest in new technology and not only methane management, but new fuels. we completed an acquisition with

biofuels the second biggest oil producer in the united states we capture carbon and hydro and other technologies to lower the energy across the economy. i think we have been around for 143 years. we intend to be a very responsible player and methane report is one example of that. >> you and i have talked about that capacity and how important it is. it is not necessarily something that is an issue for the folks in the white house this week, the prices went negative i think chevron has take away capacity not your's specifically. at what point does the government realize we have more to contribute and make us more energy independent we have to join together and make it so we don't have a lack of take away capacity. that's insane. >> well, you know, your point is a good one we need to be able to invest in american energy production we need to be able to invest in

the infrastructure that enables that production. we share, you know, the administration's objectives of stable and affordable fuel supplies over time, as demand grows, that requires investment. we have to be able to get permits and construct facilities the situation in the permean was transient one with the pipeline there. it illustrates the opportunity we have in the country with the resources in the industry to continue to be a very strong and secure supplier of energy in the economy. >> mike, what are your expectations for russian supplies, particularly come, let's call it december will they be impacted? >> well, we have never really seen something like this with the combination of sanctions that have been enacted and are going into effect in early

december in the eu this price cap which the details are still not entirely clear that appears to be coming into effect from the g7 then, of course, russia has indicated that they may not supply buyers in the countries that participate in the cap. there are a convergence of actions that we see and it is difficult to predict what that means other than commodity markets remain volatility and unpred unpredictable. demand is strong despite the restrictions in china with the covid restrictions we have tight supply in the markets with disruption with the things you bring up, david of course, winter weather can be a wild card. th i think markets are difficult to predict in the next few months >> you mention we haven't seen

anything like this what are your expectation on the cap plan for russian oil do you think it can work >> the details have still not been finalized there areplayers there are very complex market. and i think the idea that certain governments can impose floors and caps and really, you know, control that market is -- it's difficult for me to see how that works markets are driven by supply, demand and expectations. and so i'm not sure that -- i'm not sure i understand how the cap really will work >> maybe you can help me i know the administration is saying, listen, we're getting a huge amount of oil out of america but languishing at 12

million barrel since june, despite the price increase 1.1 million below the production peak in march of 2020 and if you look at the my niobrara, the ea, the balanckans, is the administration doing enough to increase drilling or is that the way it's going to be >> to secure energy security, i think the best path is collaboration between the energy sector and policymakers. look, we share the desire to have stable, well-supplied markets. our industry has received mixed signals from the administration and from some in congress. words and the actions don't always align that's what would be helpful, is to get on the same page. i think there are areas of common ground. we've talked earlier about methane emissions, for example,

we've talked about carbon capture, which the inflation reduction act encourages i think there's common ground but we need to see the words and the actions line up. i think that creates an investment environment people would have more confidence in. >> you mentioned the inflation reduction act. has that changed at all the way you're thinking about investments and the amount that you are already committing to various efforts to reduce your carbon footprint >> we've laid outer our plans. we tend to take a long view on our investments. it's a cyclical industry and discipline always matters. good times don't last. difficult times don't last so, you have to have an approach to capital allocation that sees through those cycles there are certain elements in inflation reduction act that would incentivize investment in carbon capture or in hydrogen. those are two areas we're doing

a lot of work and we have a lot of optimism. i think it will help encourage some investments and hopefully bring costs down so these technologies become more competitive. fundamentally, we've outlined the intent to invest $2.8 million in a suite of technologies i don't think the inflation reduction act fundamentally changes our view on where we see the best opportunities >> nor does the pamount of cash flow your company is producing right now? >> you know, we're -- as i said, we're in a cyclical business times are good right now and, look, we've had a very consistent approach to capital allocation we've increased our dividend for 35 years in a row. we're investing to grow. both traditional and new energy. we're maintaining a very strong balance sheet. and we bought shares back 15 of the last 19 years. there's a balanced approach we

take we intend to keep that through the cycles that means as prices cycle down, we intend to maintain that balanced approach to capital allocation. >> understood. message heard loud and clear mike wirth, always a pleasure. >> david, jim, good to be with you. as we go to break, take a look at the bond report. nice little bounce off the open. s&p up 30 points the tech spyder up 2%. the vix right around 26.5. don't go anywhere.

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welcome back to "squawk on the street." rick santelli live at cme hq with the last breaking news of the week in the form of university of michigan sentiment, our october final read 59.9 replaces 59.6 it is the best read since february and do remember right in the middle in june we were at 50 history low. a nice comeback. if we look at current conditions, 65.6, best expectations by half a point from 65 and sequentially, at least mid-month read was 65.3. once again, we have some improvement. expectations, 56.2 exactly the same as the mid-month read now the inflation numbers. 5% on one-year inflation 5.4 is the high from march this is not coming down very quickly, considering the last several months were under 5%

now, the five to ten year, our mid-month look was 2.9 remains 2.9. high water mark in june of 3.1, the highest since 2011 we'll look at pending home sales for september but for that we head east to diana olick diana? >> reporter: rick, it was a massive miss pending home sales in september dropped much wider than expected 10.2% month-to-month according to the national association of realtors the expectation was for 4% drop. sales down 31% year over year and excluding a brief drop at the start of the pandemic, that is the slowest pace since 2010 signed contracts during the month, so they're a future indicator of closed sales. it reflects buyers shopping in september, that's when the average rate on the 30-year fixed crossed 7% we started this year at 3% rates dropped back slightly in august, which helped a little but that was clearly it for buyers in september. rates are still over 7%.

for potential buyers looking at the median priced home, their monthly payment is now closing in on $1,000 more than it would have been in january for the same house regionally sales fell the most in the northeast and west. realtors say they do not expect rates to come down any time soon does not bode well for the rest of the year. >> thanks for that. good friday morning. welcome to another hour of "squawk on the street. i'm carl quintanilla with leslie picker and david faber the market absorbing all of that data, along with earnings last night and this morning ten-year still below 4 this morning. >> we have positive movers to talk about 30 minutes into the trading session. here are those big movers we are watching starting with apple beating on the top and bottom lines for the latest quarter iphone sales came in slightly below what the street was looking for. we'll have much more on apple

later this hour. t-mobile shares getting a boost, reporting its largest jump in subscriber numbers since its merger with sprint in 2020 that stock up 25% year-to-date up more than 6% this morning and shares of intel rallying despite cutting its full-year sales forecast as the chip giant topped earnings expectations shares up about 8.5% right now next hour, don't miss ceo pat gelsinger on "techcheck. we start with amazon issuing weak q4 guidance shares down about 11% right now. our next guests both lowering their price targets on the stock but maintaining their buy ratings. we're joined by cowens john blackledge maybe we start with the idea of obviously paring back your price target but maintaining that buy rating do you think things will get

worse before they get better and you see this as a longer term secular play for investors >> yeah, things are in the cyclical air pocket right now. i think the cyclical air pocket is slightly more stronger in europe that's where we were wrong the way amazon is disciplined on costs, the way -- and efficiencies and fulfillments are expected early next year they're setting themselves up for a really positive share gaining across all lines advertising, commerce and cloud in the first half of '23, into '23, and that makes us more positive on amazon this is a cyclical air pocket and that's why we are buyers of amazon right now. >> john, i want to get your thoughts on that as well, because this is the second time this year that results have significantly caused a selloff in the stock the same thing happened in april

due to weak second quarter gud answer which spurred about a 14% drop in the stock. ceo andrew jassy mentioned a tough macro environment. do you think it's macro or more idiosyncratic plays that the c-suite could be doing better? >> i think it's all macro, really you know, they called out the weaker consumer demand, kind of more so in europe than in the u.s. and also companies are looking to control costs, which is macro-oriented you saw that show up in aws and a little bit in the ad business towards the end of the quarter yeah, mostly macro the other thing i would say is they're still kind of lingering kind of investment kind of issues that are impacting margins. it's getting better. they told us they're going to lower their fulfillment investment capex by $10 billion this year. they're doing things that -- to try to rein in costs, improve

margins. that's why we have margins doubles neck year and we have investments next year. that's why we stick with outperform as well >> rohit, looking more into the macro environment, one thing that caught investors, perhaps, is fourth quarter guide came in weaker than the street anticipated and they anticipated. this quarter is important because is comprises the holiday shopping season. can we extrapolate any weakness or amazon's expectation about the state of the consumer. >> absolutely. i think what amazon is telling us is probably europe is already in a recession, the way they talked about what happened in september, october and the gap between kind of u.s. and international commerce deals that's been widening international commerce sales have been flattish as it

affects. when it comes to europe, i think they're declining year-on-year move rapidly that's what's happening in q4. u.s. consumer is doing well. i think u.s. e-commerce is holding where it was europe is much more worse than what we thought it would be. that's -- that's an ominous sign for more companies having that exposure u.s. dollar is obviously affecting that, too. the trend line over the last two months is something we need to follow and if europe follows, we're looking at even more worse holiday shopping across u.s. and europe >> john, rohit said he thinks they're doing a good job containing costs do you agree with that what are your expectations when it comes to 2023 when it comes

to this company? >> david, thanks they're trying they talked about $1 billion and essentially fulfillment ops in fixed cost leverage improvements that's going to keep going like i said, we have operating march begins company wide at 4% next year versus 2.3% this year. we fully expect what they're doing and also they talked about, you know, hiring is slowing down you had 5% hiring growth, so it's decelled the last quarter or so. they're taking a lot of steps to rein in costs. the cfo mentioned last night as we head into next year >> just to follow up on that, both of you lowered your price target as we mentioned you cut yours by $45 to $150 a share. is there anything that would cause you to actually downgrade

the stock from a hold to a buy what are you looking for what are the key pieces of the report that make you keep your buy rating on this name? >> yeah. i think -- i was thinking about this relative to alphabet and meta it's been quite a week for amazon, it's all macro-oriented it's not competitive you see some competitive issues with tiktok. for alphabet, youtube and more squarely for meta at core facebook and instagram it's more macro-oriented the company is exiting an historic fulfillment investment cycle. it's usually when you kind of want to be there for amazon shares you have the capital intensity that's going to be coming down next year and the coming years, in our view. so, no, we're buyers for sure. and, again, i think it's more macro and not the competitive issues and expect margin expansion going into next year >> perhaps a buying opportunity on today's weakness.

john, rohit, thank you for being here appreciate it. >> thank you. don't look for twitter on your screen anymore. because you can't. it's gone. it is now a private company. it's a musk company. part of that portfolio of musk companies. obviously, tesla is a public company. but spacex, bought for $44 million. elon musk is in charge essentially the ceo of this company, on an interim basis, perhaps. saying the bird has been freed yes, freed from the public markets. 54 m 54.20 a share is what you got. it cost him quite a bit to free twitter. in fact, a lot more than somebody else might have paid. overpaid by -- we can all sort of try to figure that out. $20 billion, maybe more. leslie, it's what's coming that's of interest, perhaps.

what eats he's going to do to create value far in excess of the $44 billion. that's $13 billion in debt, $32 billion in equity, $7 billion he raised outside some money that's been rolled over, i should point out it's still a hefty check that mr. musk has paid here he is determined to create a lot more value than what he paid >> and you bring up a good point. it's not just about creating value for himself as the sole owner. he has other stakeholders. he has equity partners, he's beholden to interest payments on that debt as well as the owner of this company. there was a column about the prospect of twitter actually returning to the public markets. being sold ultimately at one point in time. i wonder whether that is the ultimate end goal. he has said nothing to that effect in terms of his plans, does he actually see a pathway and do

other stakeholders see a pathway to make this company worth more than $44 billion. >> those close to him indicate it could be worth hundreds of billions i'm quoting them, if not as much as travel a trillion, carl perhaps somewhat optimistic. that could take many years at the same time, this is a man who sends, what, every six days, sends a rocket up and has made tesla, you know, worth 12 times that of gm >> yep personally responding to some users today saying he's digging in deeper. today in terms of his office responsibilities and sending tesla engineers to review the code. it's going to be interesting to see, as you said earlier, policy changes. trump responded this morning, saying the platform is back in sane hands that's all going to matter to advertisers. it's not surprising he wrote that letter to them yesterday. >> no, no. as we reported at the time, saying we're going to try to make our advertising a lot more relevant to the users.

there are going to be fewer employees at the company, no doubt about that he is expected to cut heads. there's going to be a transition of some importance over the next two to three weeks where you can expect mr. musk is going to be spending perhaps a preponderance of his time on twitter it is a question how one man can run so many companies that require so many of his attention. >> especially after he reported, and others followed, that he laid off four executives as one of his first moves you also think about the ecosystem that is probably cheering the closing of this deal those would be the deal advisers, about 200 million. then the flip side, there are the banks that are reportedly holding onto this debt they're not syndicating it out, as is typical. they were staring at prices that would make this the largest deal ever, given where the debt

financing markets are and the interest level for at least part of this is high yield. so, there just wasn't that much appetite for junk right now. they're making the decision to hold onto it it allows them to mark things up a little bit higher, perhaps, than had they syndicated it out. that's a wait and see mode for the banks. there are people who are happy about the way this turned out and people who are not so happy. lawyers probably very happy. >> also props to the board and agarwal for defending employees when musk was criticizing them, and delaware, too. they got a lot done. >> they got 54.20 in a market there wouldn't have been anywhere near. we talk oftentimes if twitter was trading today on simple fundamentals, it would not have been anywhere near 54.20 twtr, doesn't exist any longer as we head to break, let's give you a road map for the rest of the hour, including energy giants both exxon and chevron reporting results. we'll go through those numbers. plus, a lot more on this

market rally the dow aiming for its sixth straight day of gains. up more than 300 points. >> a closer look at apple. a rare winner on the tech giants reporting this week as the nasdaq is actually higher on the week don't go anywhere. ♪ ♪ mercedes-benz is turning electric... completely on its head. bringing legendary design... and state-of-the-art technology...

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>> customer was strong and better than we anticipated it would be we're working very hard to fulfill the demand we feel very good about how we performed in q4 and certainly the start of this generation would suggest we're going to be constrained on the 14 pro and 14 pro max but we're working hard to remedy that. >> joining us, both with buy ratings on apple i want to start with services growth it doesn't sound like you're all that concerned, although you're not surprised it was going to be a highlight last night >> carl, that's a great observation. a very smart question. i'm not concerned about it here's why services have a trailing impact when foreign exchange and prices are adjusted

meaning my family, when we suggest to apple one or itunes or apple care, we typically pay on an annual basis as apple starts to increase these prices, and in the past month or so they have, you'll start to see this impact services going forward we believe the bottom of the services growth, which went to 5% growth. in this world of uncertainty, that's very impressive we believe it's going to grow in the quarters ahead and reaccelerate as you know, it's double the profitability of the hardware. we are not concerned about the -- that's going to help with the stock price and valuation, carl. >> that's interesting. >> you got more expensive mix on the hardware obvious recent price increases on the services. how does that square with what we're being told about the macro back drop? >> if you think about apple and you take a look at the results, these were very, very solid results. you compare them to things like metaand other large companies that are reporting, the reality

is the apple brand is one of the most valuable brands in the world. there's a very sticky ecosystem. so, when you take a look at, for example, products and services, people tend to come back over and over again i think there's something like 90 plus percent retention rate that goes with this company. in terms of products and services, you know, to the other guest's observations, i'm not too worried about what's happening. when i look at the macro and the numbers these guys are putting up, it's pretty incredible let one number sink in your mind, 10%, 10%, i repeat, fx headwind year over year basis on the december numbers if you takethat away, or in th near future that becomes a tailwind and the dollar starts to normalize, apple would have had monster quarters >> that is a really interesting stat to follow up on that, in your note you called it an impressive

beacon of stability. are these results indicative of apple being a safe haven, a bright spot within tech as a result of that >> we do believe so. we believe that's a very accurate statement the ecosystem is very much intact their products are stellar let's talk about the iphone, for example. that's a very mature product they keep making minor tweaks, the camera gets better each year, for example, but the retention system is very strong and very sticky. then you take products like the airpods and the watch. there are some meaningful improvements that have happened with those products. tim cook said something like two-thirds of the apple watch users were new users in the last quarter. that's a stunning number that means the wearables ecosystem is massively growing at a phenomenal rate we look at things like that and we look at what is happening in the economy and then you take another step further

you look at the regular pc market, which is absolutely decimated. you look at the regular handset market, absolutely decimated and then you compare apple numbers to that and the results are truly phenomenal when you consider the fx headwinds that exist. >> jim, harsh mentions the economy. i do wonder about that particularly next year we have no real sense but certainly there are those that believe we're going to have a recession, and it may not be that soft a recession, so to speak. what happens to apple then what about their products? obviously many of which carry a very high price point. >> david, my friend, i've known you for years and your questions are always super smart and on track. i have to tell you, the thing about apple is they have a complete ecosystem and a platform products also reaching out into things like enterprise and health care. you and i talked about this off camera a few times when you drop or break your

iphone, you replace it you find a way to do it out of something else in life we simply view this ecosystem of getting stronger and getting broader. yes, there are economic headwinds out there and uncertainty. but we view the smartphone industry and what apple is doing of its premium experience, those people have a little more money to spend on products they want a good experience, whether they're doing a video conference call, maybe even tv, live, like we're doing right now, which i'm doing on my iphone 14 and doing it live right now, this is not a joke. it's live. these are experiences and we believe people will continue to spend on that. >> and you look great. it's doing a nice job for you, the 14. >> thank you i'm flattered. >> finally, doug cass points out net cash is the lowest in 14

years. what do you make of their balance sheet going into this downturn, if that's where we're going? >> apple tends to generate a phenomenal amount of cash each quarter. look at what they're using the cash for they did $25 billion worth of buyback in the last quarter. about $20 or $22 billion the quarter before a huge chunk of the money is actually being returned. that doesn't mean the company is, you know, putting off r&d and cutting off, you know, vital resources for the future they are spending, r & d is going up every quarter they made it clear in response to the questions they will not starve avenues like that i think tim cook had another interesting observation. they make about an acquisition a month. think about that the company is not starved it still manages to generate a ton of cash. in response to your previous question about the recession, should we get into a hard type scenario, hard recession type scenario, i would stick with apple over a lot of other

companies that are large cap that would be the pick we would go with. >> guys, appreciate that obviously such an important print in this earnings season. have a good weekend, guys, appreciate it. >> thank you speaking of a lot of cash, after the break we'll talk energy stocks with both chevron and exxon trinadg higher post results. don't go anywhere.

welcome back take a look at the spdr energy, xle. a winner from a sector perspective. it's outperformed the s&p, by, get this, 80 percentage points that's just year-to-date and the xle still having a nice morning. why? exxon and chevron both reported results. exxon reported a record $19.6 billion in profits for third quarter. for comparison, though, apple brought in $20.7 billion of course, this is not one of apple's big quarters chevron did beat on the top and bottom lines profits there actually were slightly lower than last quarter. that was just the second best

quarter that company's had on record chevron ceo mike wirth did join us last hour and spoke about production and how to win back investors. take a listen. >> we've been investing steadily in growing our production. we had a record in the permian basin, up 15% year-to-date versus the same period last year we had our strongest ever production out of our australian liquefied natural gas business the world needs more supply. we're delivering that. we're dliring lower carbon and still trade around half of the market multiple. energy represents about 5% of the s&p 500 by market cap, but more than double that in earnings so, we're performing well and we intend to continue to do so. >> we'll continue to buy back stock as well. interesting, of course, because you ask them about cash flow and he says, well, we are -- our cyclical business so we have to prepare for the bad times.

yet, he still seems upset he gets half the market multiple. that's the reason you get half the market multiple. >> we've seen them in our lifetime >> yes, we have. >> you know, two years ago wasn't that long ago we saw energy facing some difficulties. i think chevron's still the best performer in the dow this year >> it well may be right up there. exxon as well. chevron is up 53%. exxon up across 80% this year. >> incredible. i saw between the two, 31 billion in q3 net is what apple and microsoft put together, those two big oil players. pretty amazing what's going on between tech and more of these cyclical legacy industries. still to come, we'll talk more elon musk, now officially in charge of twitter roger mcnamee will join us after the break as the dow is up, on pace for the best month since 1987

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let's turn back to twitter the private company twitter. the musk era officially begins, but what can we expect from the platform under his leadership? let's bring in roger mcnamee of elevation partners, co-founder there, to discuss it roger kanye west's twitter account has already been reinstated there's one thing that has already changed. what else do you believe is going to change? >> david, i think the big question is which elon shows up now. there have been two modes through this process the first we're all familiar with is the engineer elon who sends rockets into space and built out tesla, but there's also jazz elon which says whatever occurs to him and has

been the primary actor in the whole twitter drama we've seen over the last six months to me the key thing is now he has to service $12 billion worth of debt. i suspect that his actions will be more reserved than his words have been to this point. but the thing we should all pay attention to is, first, this shareholders, this is a big win. public market, fantastic outcome. as citizens we have to worry about what comes next. twitter has been a horrifically managed company for a long time, filled with hate speech, disinformation and conspiracy theories, it's been a threat to national security, a threat to public safety and democracy. way before elon musk got involved and the fear is that if jazz elon prevails here, that we're going to see more of the unpleasant side of twitter that's going to be a huge downside and i do think that's a legitimate concern because of the debt, i do think

that's the one -- on this whole thing. and he's going to have to -- i can't imagine willing to pay that out of his pocket, you know what i mean? >> not to mention he's put up $25 bill of his own, 75 plus billion from other investors, guys like larry ellison, marc andreessen, ben falal just rolled in. he may take the other musk you talked about you talked about the fact this has been an underperforming company for, man, as long as we can remember it being a public company. >> i think that's exactly right. twitter is one of the greatest product designs in the history of silicon valley. and yet the management team, each management team has successfully failed to capture a financial return that was commensurate with the import of the product in our society i think that's a huge problem. i'm a big believer in scott

galloway's motion that twitter could be like bloomberg. it could be this premium service with three core markets. it has journalism, politics and celebrity. and those three communities live on twitter for them, having access to a twitter that's less toxic would be enormously valuable the notion those people might spend 1,000, 2,000, $3,000 a year in order to have a platform that was safe for what they want to do, and that everybody could view on twitter for nothing, and that that you would basically have some feed to put tweets up that would reduce the amount of bots and amount of hate speech and disinformation, that model that scott has put forward, i think, is a viable one i've heard not a peep from anyone that that's likely to happen but i do think it's possible i think that the people involved in this, they're smart people. i can't believe they're just doing it to thumb their noses at the rest of the world.

so, we'll have to see what happens. i think action is what we'll have to look at here, not words. >> interesting musk did say in his open letter that, quote, twitter cannot obviously become a free for all healthscape where everything can be said with no consequences i'm curious what exactly is the healthscape threshold for advertisers, for users you've heard all sorts of threats throughout this process, throughout the last six months but where do you actually think the line is? >> that is such an important question when i first became an activist about internet platforms in 2016, my assumption was that the line was something we crossed years ago. that fundamentally advertisers would want to be involved in something that was not full of hate speech, disinformation, conspiracy theories. that is not the case i would have thought politicians, celebrities and journalists would be a better governor of the culture of twitter than they have been.

so i'm terribly afraid there may not be a limit people may just go, you know, i'm going to go along with it no matter what happens. and i do think that's a very real threat here advertisers have shown themselves not to be a diligent protector of society's values. >> roger, on an execution level, assuming it's the musk -- the spacex and tesla musk who shows up to work every day here, does he cut a lot of people does he find a whole new group of software engineers who can actually do things that apparently have not been able to be done previously >> well, to me the big issue is the transition i'm sure there are a lot of fantastic people at twitter. as a group under the management team that was there, they failed to deliver the kind of results that i imagine elon musk would like to deliver or, frankly,

public shareholders have had every right to expect since the year it went public. therefore, i'm not actually troubled by the fact that top leadership is going. what i look at is the morale of the company on the inside. i think the story that came out that said 75% of the employees would be fired you cannot run an issue like twitter without any employees and you can't hire people if they think they're going into an environment where they're just going to be, you know, manipulated and fired very quickly. he does need to find a way to build a positive culture he's done that at his other companies. i do think it's entirely possible again, twitter is this extraordinary product with huge potential and i think if you could give people a vision they could believe in, it would be very successful. i think scott galloway's notion is one option. i'm sure there are other things but we this to find other ones and find it quickly, articulate it in a way employees understand

that's the big problem, david. no one has said a vision we have no idea. >> your point about the transition being very important. even this handful of weeks i'll put you on the spo the. $44 billion is what it cost him, including debt five years from now he's going to take it public. it is a higher number than $44 billion? if so, how much higher >> that's a great question i suspect the over/under, you want to take the under at the end of the day, the notion, he can make this successful i don't think there's any question he can. but i do think he's up against a whole bunch of changes in society that may make social media plat remember in aggregate less valuable than the last ten years. the future is different from the past it's not at all clear to me -- when he you talks about product x, the all-in-one system i do not think there's demand for product like that. particularly the iphone is the

integration layer people like. i think there's an upward bound on what any of these companies can do i think that facebook is experiencing that now with the metaverse. i think twitter will probably experience that over the next few years. >> roger, always appreciate it thank you. coming up after the break, we'll talk the latest around credit suisse and restructuring plans. meantime, take a look at some of the biggest gainers on the week. tech is leading for the week it's cat, visa, honeywell, verizon, as the market has rewarded some earnings companies this week. s&p almost to yesterday's inad hh. ckn three. a passion for new orl. i'm lauren haydel owner of fluerty girl. today, my tiny online shop has grown into eight stores. we're a must-stop shop for unique nola-inspired gifts. lauren doesn't just create cool nola merch; she creates opportunities.

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consider adding this. call unitedhealthcare today about an aarp medicare supplement plan. if we told you at the beginning of the week we would go through letdowns from meta, alphabet, amazon, you might not expect the markets to be higher on the week but it is.

info tech up 306, your best sector this morning. as you said, david, market can con found expectations >> it certainly has. there has been some rotation the largest market cap company is up over 7%, that being apple. that certainly helps leslie and i have been reporting on credit suisse for some time as of late yesterday was an important day for that swiss-based bank with a large presence in the united states we watched its shares decline almost as much as 20% yesterday after it announced a restructuring plan that announced $4 billion equity infusion and plan to spit off u.s. investment bank added some details to that on an earlier report in terms of the separation in 2023 the fact they'll raise at least $500 million, but they have demand for as much as $2 billion in a debt security issued by

credit suisse that would convert into first boston equity the new entity to be run by michael cline, his advisory firm to be spun into it and you'll get equity and spin or split some time in 2024 so many different moving pieces here the market obviously did not respond well to it yet primarily one would anticipate as a result of that massive dilution taking place because of that equity that's being bought by the saudi national bank, very wealthy family in switzerland, the qataris and others, i'm told. >> there are certain holes, uncertainty surrounding whether or not they will be able to fill, based on this restructuring plan the $6 to $9 billion capital hole that analysts have basically estimated they need to fill. there's also information holes there's lots of parts of this

plan people were hoping for a bit more detail specifically surrounding its securitized products group, they have -- they're dividing the investment backe into three parts, one is the u.s. investment piece you were talking about, cs first boston and the noncore assets, what goes in there, what's the ultimate terminal value of those assets, are you working to dispose that and the capital, on and off again discussion, mostly through leaked reports, that have created all of this uncertainty. all of that together creates a lot of restructuring risk. do you want to be the investor that's basically saying, we're going to go along with this and take that chance that's why you saw a huge drop yesterday as people were trying to figure out the math and all the moving pieces. >> it will be interesting to watch the creation of a first boston, so to speak, that may trade publicly, although some time from now, by mr. klein, by current employees, employees

they bring in and perhaps own as much as 50%, but they would like to get that lowered by cs itself center bridge was right there until the end as the expected buyer but apollo came in with a much broader offer given they own that insurance company and they can do various things we're still not at the finish line to your point, there seemed to be some disappoint you just got what was expected on top of that >> it's kind of a microcosm of restructuring a bank like this at this point in time, given everything that's going on in the macro environment, which also begs the question, as you look to separate ultimately that cs first boston, especially here in the u.s it's going to be a pure play on advisory -- si >> and some capital markets. they were talking, leverage finance, underwriting business, perhaps underwriting in asia and connection to sales and trading. >> you're looking for a lot from

those backers. >> yes. >> you're looking for them to take on a lot of risk at what we've seen broadly speaking overall in the u.s. with investment banking, what we've seen overall in capital markets these days it's not a pretty time to be putting out your hand and asking for money to back this pure for play adds tothe restructuring risk little bit that said, you know, their peers in europe have done similar things before. with a twist, so we'll see if this one is able - >> carl, there is no doubt the wealth management franchise there is a significant one that's what those who are positive on this would say, simply continues to be vastly undervalued. >> long way from last spring and the spac craze that's for ure coming up on "tech check," a lot more on apple and amazon post results moving in opposite directions a big interview with intel's pat gelsinger. that stock getting a boost, as

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welcome back major indices rallying today the dow aiming for its sixth straight day of gains, currently looking at almost 600 points higher on the day. bob pisoani has more on the action interesting to see such strength here >> it would have been, yes it's nice to see tech holding up, apple's pleasant surprise. you look at the sector leaders today. technology is holding up not just apple microsoft and some of the semi-conductors are holding up this is kind of a defensive tone you have consumer staples and health care holding up energy for a change is lagging a little bit some of the consumer discretionary stocks are lagging, but there's been a definite change in tone this months as we end the month or ending on monday but you look at the new high

list today, it's really value that's ruling here we have exxon, historic high chevron, these amazing numbers they reported. we have humana, a bunch of health care stocks, industrials like lockheed martin energy, health care, some industrials, these are stocks associated with the value play, and a lot of quips made this week earlier that exxon is the new faang these days that would be amusing six months ago, but there's some truth in that energy is the big leader here, and industrials and health care. these are associated with value play tech is not doing terrible but up only 7% communication services, as you ski, are really notably lagging here it's little wonder energy is so big when you see the cash these companies are returning. look at the numbers that chevron put up this morning, for example. the dividend is 3.1% they're 2.7 billion dollars. that's an impressive amount of money to return to shareholders.

buybacks, $3.75 billion. that's 1% of shares outstanding and they're going to keep doing that they're in the middle of a $15 billion buyback. their shares keep going up so it's getting expensive to buy these things back. they're going to do the same thing in the fourth quarter, buy less shares because the prices are higher nonetheless, a lot of cash to return to shareholders finally, i just want to point out energy is really powering the earnings if you look at the s&p for the third quarter, we're still up. if you take out energy, we would be down 3.5% that's how big the earnings are. finally, people were asking about amazon wasn't that a real problem for the third quarter, the amazon numbers. yes, in fact, the s&p 500 earnings up 4.1%, but if you were to take out amazon, guys, it would be up 5%. amazon is a whole percentage point drop in the s&p 500 because of the numbers they recently put up. guys, back to you. >> bob, thank you.

bob pisani yeah, that rotation and energy and a broader market, and apple alone, 7.5%, $10 on apple, i'll wait for statisticians but it looks like they added in verizon in market cap. >> which after tech losing $800 billion in market cap going into today is good news >> we'll end it here and send it to "tech check." >> good friday morning welcome to "tech check." today, call it a big tech train wreck. google, murk soft, meta, and now amazon taking it on the chin amazon alone losing $200 billion in market cap. what comes next and what should you do with the rest of the names? apple's the only mega cap so far to see green post results. record revenues for a september quarter, and don't think we forgot about twitter deirdre is live on the ground as the musk era begins. we're going to discuss all of that in a moment