equipment stocks and their prices are drowned dramatically today and there's kla, the biggest one out there. they're going to be turning down the estimates. 4% for tech in 2023 and now it's going to be 2-1. flat demand destruction and what that will mean. >> thank you >> always a pleasure >> always a pleasure to be with you, as well that will do it for "squawk on the street." "tech check" starts right now. >> good thursday morning i'm carl quintanilla with john fort t t at the new york stock exchange and the nasdaq's down more than 2% and we'll dig into the ugly end of the year. sam bankman-fried extradited from the bahamas as his former colleagues plead guilty to criminal charges and we'll fill you in on the crypto fallout chips take a dive. micron falling after that

disappointing quarterly result we will break down the landscape in semis, john man, what a turn today >> indeed. let's start with the semis at the core of today's sell-off the smh down 4.5%. micron following this morning and not as much as a lot of the others after it missed on the top and bottom lines lower than expected guidance. it also announced a restructuring plan for 2023. that includes reducing head count by 10%, suspending bonuses company-wide and sanjay placing the blame on lower demand in most markets and customers bloated, yes, inventories. micron not even the worst performer and lam research down 9% applied materials and nvidia, kla down sharply, as well. carl, this in a way isn't a surprise and we've been talking about inventory for weeks, month, even because you have the oversupply situation developing

and questions about demand not just from consumer and increasingly as enterprise and we're in two trading days before christmas. it's not clear what the picture is to start 2023 and only now it's becoming clearer and it's ugly adjustments here and i think a question of where do we end up when the smoke clearses in janur because everyone has to work through that before they order more and if that's going to take a while, then customers will have to reduce costs in order to get profits. >> can we at least argue that this is a memory issue, right? people stockpiled a lot of the stuff in hopes that they got other kinds of chips or does this translate to high performance and leading edge >> i think this is all of the way across and of course, there will be pockets of areas where demand is a bit better, right? because the market is relatively small for high performing machines and with something like memory, everybody needs memory in everything. so if the demand is weak for that, it just means you're not

putting as much stuff together because there's not as much demand for stuff so i think the inventory overhang overall is a different issue. so how long does it take to work through that inventory is a question of the combination of the overhang and the demand shah shows up in early '23 which right now is the question. >> we're looking at the lam and the capex and that's why the micron capex guide is so critical last fiscal year, 12 billion and they lowered it to eightand then 7 to 7 1/2 and they get the fallout and the negative halo. the cascades and they see that the demand isn't showing up and you're a company that's responsible and sanjay said we have to cut head count and we have to cut salaries and we have to bring our costs down because our revenues are going to be down and so that's stuff that those people won't be able to buy and micron won't be buying and someone else down the chain has also got to cut their costs and

is the consumer effect in the relatively healthy market elsewhere enough to hold that up or does that cascading effect go through the entire market? >> the pc guide, i mean, i guess on a year on year is not as bad as 22 and it's not getting positive it's not again, that demand question, carl, right? year on year how relevant is that guide anymore? >> right >> they start talking two year, three-year stacks like siloses >> they cut their target on amazon and alphabet, bracing for softer demand on digital advertising, cloud computing and e-commerce in the month ahead. evercore i evercore's mark mahaney joins us walk us to what degree this reflects your tech activity in 2023 >> okay.

first of all, happy holidays and merry christmas to you, carl we have a softening environment and online retail and on-line travel has yet to start weakening and we think that's a strong probability and it will start decelerating from what was a huge year and cloud computing is slowing down and that's an issue for these names and very similar to what you talked about with the chip companies. what investors want to see is if your demand is coming down, you better bring your cost structure down to match that >> amazon was the first country to call this out there was a need to bring in costs and it wasn't aggressive through it yet google, accelerating record-high employees and they have a cost structure issue going into next year and we want to be near-term cautious on revenue names when margins are under pressure it's hard to see the stocks outperforming and i think there's an interesting second half and that's why we're

near-term both cautious on amazon and google despite the long term assets >> the stocks have both been cut roughly in half this year. how much does that discount bad news >> a lot one of the reasons not to get two nuanced to this, and going into next year is multiples have been derisked. estimates have been derisked and for some companies, maybe not these two and for a number of internet companies, 70% of them there have been reduction in force actions taken. the good number of the companies that have gotten this memo and they've 10 out 10% plus of their workforce. what you want to try to do with this sector is be very tactical. you are looking at names that are somewhat recession resilient and the new product offering and that's taken costs out and it's hard not to put netflix at top of the buy list and those are the criteria and those are the right ones

>> so it sounds like you're saying netflix is a place to find anywhere else narrative wise and i know you're saying be tactical and it's a company by company thing and what are some of the signposts that you look for to be able to tell whether a company is in position to do better than others within the areas that you cover >> well, i don't cover a defensive area the internet stocks are not defensive and it is very heavy exposure to consumer discretionary spend. so all of that should make you think they will be decelerating revenue trends through the first half of '23. hopefully just through the first half of '23, but there are a couple of these models that are utility or in the case of netflix, it's incredibly cheap entertainment and you can do a month and you can buy a starbucks at that price. consumers will stick with netflix as you go through whatever challenges we have next year and a probable recession.

another one i think i like is uber and the mobility side of the business is more utility than consumer discretionary spend and we'll still do our social outings and mobility, a group that holds up well and that company got the cost memo and they were forced to during the covid crisis and they've taken up dramatic amounts and those are two names i like going into '23 >> that's pretty good. of the top picks you have, no matter what the cap size, which feels most like an outside pitch right now? >> well, i will also mention meta meta doesn't have a new product stream and it's fully exposed with advertising this company got the cost memo and they took 13% of their employees out and they start getting that hit to the revenue growth much earlier than everybody else so they made this first in, first out. it looks to me like revenue growth has started to stabilize

somewhat at facebook and at meta, and then these comps get so much easier for meta going into next year and the valuation, the 12 times gap earnings are highly asymmetric and it's an outliar and contrarian in the internet space. >> that's a lot of coverage any why we turn to you so often. really good radar on so many important names. if we don't talk before the holidays or the end of the year, a great been to you and your family >> thank you, carl >> clinching the nfl sunday ticket. >> google beating out traditional media companies like disney and other tech giants like apple to win the sunday ticket rights for youtube. a source telling cnbc point com google will pay roughly their 2 billion a year for seven years and that's up from the $1.5 billion a year directv was

paying and we were hoping they'd get up to $3 billion a year. no word yet on how much a subscription would cost. right now it charges $300 for a season if you don't have a youtube tv subscription you can subscribe through the regular old youtube.com. directv would only let you subscribe to sunday ticket if you had a directv satellite package, but now anyone with access to youtube can subscribe to sunday ticket with a bigger audience and it gives them a chance to make money on this with the advertising technology this they may want to inject into the product and it speaks to the size and mine share youtube has and we often leave youtube out of the streaming wars conversation and youtube is right up there with netflix, guys >> how is this different, steve, from the netflix disappointing ad environment conversation that we've been having? >> youtube's been in this game

for a long time and it's sort of the name premium, online video mass market wise, but is this a case where because it's nfl and because it's youtube you've got two of the biggest brands in digital and in media, the expectation is that this is an exception to the rule of what's happening in advertising overall? >> yeah. i think so, because we've seen so many of these services that are the free ad supported ones and kind of taking off with the success and it could be confusing, and it is so understandable and accessible, and it's just a juggernaut it will be a lot easier for people to access to directv. how many of us have satellite dish stapled to the top of the roofs anymore. you don't have to worry about that anymore you just need an internet connection >> not everyone has a comcast. >> its a very viable option just

for the record. >> important story today sam bankman-fried facing a hearing today after being extradited to the united states. our mackenzie sigalos has more >> he is expected in court for his initial hearing. his mother seen arriving in the courthouse in the southern district of new york earlier this morning and more than 100 photogs and journalists crowded outside the courthouse awaiting his arrival. once the hearing gets under way he will enter a plea on eight criminal charges and we'll find out whether they're granting bankman-fried bail two former top execs who were also his roommates at their shared bahamian penthouse were reportedly release said on $200,000 bail after cutting deals with authorities caroline ellison, his ex-girlfriend and gary wang pled guilty that they helped orchestrate this years' long fraud at ftx both are cooperating with

ongoing federal investigators. the charges were released last night as bankman-fried was en route from the bahamas to new york where he faces charges from the same prosecutors at sdny and now working with ellison and wang the cftc and fcc bringing charges against wang and ellison that wang created this software back door in ftx's platform which aloud alameda to divert customer funds for its own trades and accusing ellison of manipulating the native token called ftt in order to mislead investors. notably, wang and ellison's plea deals don't stop federal authorities from pursuing them from tax vile ailgs and it could be a way for prosecutors to keep their options open if further evidence emerges. >> mackenzie, a lot of discussion this morning about how little leverage bankman-fried has if he decides to cooperate although some wonder whether or not he would

have the goods, say, on figures sftx outside of that particular company. how much of of that is getting talked about right now >> the first thing i have to say is the timing of all of this is quite interesting. those guilty pleas were entered by ellison and wang on monday in a sealed hearing and that was ostensibly the day that we would see bankman-fried back on u.s. soil and it wasn't until he was in the air and had given himself up that we found out about the slew of charges and the fact that two of his main deputies were participating with authorities so a lot of questions there about whether there was a thought process to timing it because as you said, sam bankman-fried doesn't have a lot of options wang met him at a summer camp in high school. ellison worked with him and was romantically involved so these people intimately know sam bankman-fried. >> yeah. to say the least >> mackenzie, wow.

our mackenzie sigalos. >> of course, we will stick with today's sell-off major indices at or near session lows and up next, leads a major tech investing firm and general catalyst ceo jns uois. "tech check" is just getting started.

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♪ ♪ ♪ ♪ ♪ ♪ let's get a gut check on e-commerce the november holiday shopping not enough to offset the trends we've been seeing, but as we go into a volatile '23, the firm does see etsy and amazon as the e-commerce to own. both are a bit down on the year and etsy losing most of its earlier gains for the week as the room to save the holiday season is running out. >> you wonder how good or bad a holiday season is priced in. i don't know well, now let's turn to venture capital. our next guest writing in a letter to limited partners, we are living in one of the greatest periods of tech innovation and investment, but venture capitalists are not rise to the occasion.

he says they're too focused on delivering strong returns rather than carefully considering how the companies they invest in might impact the world so where does he see key areas for meaningful investment? artificial intelligence, fintech and crypto joining us is ceo and managing director he was an early investor in stripe, snap and samsara great to have you. >> thanks for having me. >> let's go to a.i. first. how much is the impact of a.i. at least in the median term already priced into some of these publicly traded stocks versus how much opportunity do you think there is right now >> i think there is a significant opportunity going forward especially if you're following the recent breakthroughs that are happening and what they're able to activate from an application from a perspective the bulk of the value will be

captured by the cloud vendors. to develop a.i. you need large compute any data sets and companies like microsoft, are well positioned to be leaders in there. do i think there will be start-ups that get created over the next few years >> we are on the board of samsara and i've been talking about them a lot more recently theirs is an interesting use of a.i. in combination with sensors to really drive efficiency throughout real world logistics and supply chains. why wouldn't you say that the big opportunity is actually there since a lot of investors are already familiar with the hyperscalers and their potential and they have pretty good multiples already? >> i do think that's a great use case where an emerging company is well positioned to take advantage of a.i. and samsara is a market leader in the case you

just laid out. having said that, i think we can think about the cloud members and what they're doing and they're capturing data at scale from large enterprises i think that's why they have some advantages and the application layer and the cases like samsara does, and the portfolio companies that are in the communications area are also well positioned to become great businesses by leveraging a.i. over the next few years. >> a.i.-driven chat bots got a lot of attention in the back half of this year. a lot of theoretical discussion about whether or not onsumers' entry point into the internet changes as a result of some of this technology. do you think that's overstated or is in the realm of the possible over the next five years? >> i think it's possible >> i think when you think about, hey, you want to go online and book travel or you want to go do some other actions as consumers, a.i. is well positioned to give

you a good experience so you can see and try to envision the intelligence bar where you enter the action you want to the see done and in the background, the a.i. systems are able to do that for you. so you go from capturing information to making decisions which will be done for you so it's a great experience and there's a lot of disruptive use cases that are on the way and some of the demos that we've seen from the companies building today and the companies that are remarkable >> what's the real nearer medium-term opportunity in fintech. we're not talking about web 3 as much, it seems crypto, i would argue got overhyped for a while and i don't know how low it has to reset before there's opportunity in building on block chain and crypto technologies again and then you've also got stripe and the opportunities of creating, smoother, freer ways and where is the biggest medium.

term opportunity, do you think >> so when you think about how money moves globally, there's still a lot of friction and if you think about how the currencies were -- have been designed sort of moving money for businesses that's difficult and this is where stripe comes in there's a lot of opportunity continuing around b to b marketplaces and they start to act more like fintech companies and we're looking at opportunities there. i think the convergence of traditional fintech with block chain technologies in a way that interoperates with fiat, especially in countries where they don't have resilient currencies. >> how much of a headwind are regulators and antitrust actions going to present to that because now you have those hyperscalers you mentioned off the top who would do well who a lot of people might argue will be

walled off from buying some of those innovative technologies and that could limit the investment in those technologies in helping them grow >> look, i think, to some extent regulation is necessary in this area we talk about a.i. and fintech obviously, sovereign nations are going to want to make sure these new systems are creating a way that they interoperate with the currencies, and i think in a.i., even as you receive the technologies, you see these interesting cases that expand your imagination and then you also see them at the same time if we're not being intentional about having the framework and how the technologies are brought to market you will see unintended consequences again just like we saw in social media. to some extent, regulatory as well as self-regulatory framework that we call responsive innovation is

necessary bringing these out to market in these next few years >> i wonder what you make of the argument that's beenmade you were seeing headcount reduction in large tech companies and ostensibly that will create a new generation of start-ups and small businesses and the attention in '23 is really going to turn to private companies and private valuations and venture capital. private equity do you think that's fair >> look, there's always a correction in the private sector six to nine months after the public markets correct themselves so it's very hard to value business and the growth stages in the venture capital legal system today so that probably is why a lot of the investment is, and having said that it's a great time to be building new businesses so the capital -- the human capital that's getting a lock from all these companies and this is when they go and start businesses so we are actively investing in early stage companies and having

been around for 20+ years and if you look at the '08 timeframe, those are the businesses that are created and i do think the ecosystem will be pretty active in new company creation and it will struggle to figure out how to value the companies that had, perhaps, you know, inflated valuations over the last few years during the pandemic and other reasons. >> that's what folks like brett taylor and stu butterfield will do >> absolutely. >> hey hemat from general catalyst thank you. >> thanks for having me. as we said earlier, sam bankman-fried facing the music as he arrives back in this country. a former fcc attorney joins us next as to what the tech future will look like as "tech check" returns in just a couple of minutes.

>> welcome back to "tech check." i'm carl quintanilla with john fortt and let's get a news upon date with berthsa ka kooms. >> hedge fund bill tepper is leaning short on equities and he's concerned markets are not prepared for more rate hikes >> c.b. and the fed and the boe have signaled future tightenings. so, yeah we'll have a lot more tightenings. sometimes they just tell you what they're going to do and you've got to believe them i kind of believe them >> senators have reached a deal on the spending package to fund

the federal government major lead are -- majority leader schumer announcing the agreement on the senate floor. he says voting on amendments will begin soon. >> nearly 115 million americans are under winter where alerts. ha harshs are snarling air traffic on one of the busiest travel days of the year across the country more than 1700 flights have been canceled and that according to tracking site flight aware about a third of the cans cancellations are out of denver and chicago airports a lot of folks may not make home for christmas. not really >> that includes some senators, maybe. wooe we'll see. thank you, bertha coombs you're looking at a live shot. news overnight that two of his top associates are now

cooperating with prosecutors former special counsel for the sec. alma, thank you so much for the time it's good to see you i wonder, people are trying to suss out what bankman-fried's options are now that wang and ellison have claims. >> i was wondering why they were able to move so quickly and now we know. i don't think he's going to have a lot of options if they -- because they're very close to him. these are very low-level people sayingin saying what they think the ceo knew these were senior executives very close to him. seems to me like he's going to have a hard time refuting the government's con tensions. >> i wonder what you make of these sort of collision of activity between the southern district and the sec and the

cftc is this as about as efficient as we could have hoped given the fact that congress hasn't made clear who is the tip of the spear here >> it really is. there is historically a lot of collaboration between the cftc and the sec and both of them with the department of justice and i think this is between the speed and the efficiency of this process. it shows a real collaboration and important given the fact that each of these agencies and the justice department has an interest in this area and congress hasn't sorted it out yet. so i think they're all coming together to give investors some comfort that somebody's watching, and somebody will do what they need to do >> yeah. this ftx story is an important

in and of itself, but also, you can't help, but wonder how many facts are going to come to light that affect the rest of the crypto industry. what do you think prosecutors want to know here and are potentially going to be able to find out in the near-term that's going to have broader implications for crypto. >> so i think they're going to want to see what the interactions were between ftx and some of the other exchanges and hedge fund, but i think been of the more important effects of this and the results of this is that should make it clear that beyond the institutions, for transparency for controls and for all those things that stop fraud that help accompany to put the controls in place so that somebody can't do something

really bad or really stupid, and i think that is sort of the important thing to come out of this i think we've already seen some blowback from affiliated entities and certainly the justice department will be looking at who, what other entities or companies might have been involved in this either knowingly or unknowingly as for bankman-fried can you tell our viewers what goes into a judge's calculous in determining if someone is a flight risk? >> well, they usually -- they usually look at do they have ties to other countries and mr. bankman-fried clearly has ties to the bahamas and do they look at if they have economic resources to leave the country which is not always the case and sometimes the representation from their lawyers that they're not going to flee will help depending on who the counsel is in the case.

so it's a multi-faceted decision, but it's -- it's mostly do they have the opportunity and do they have somewhere to go. >> interesting maybe some of those questions get filled in today, this afternoon. we'll see. there is still a lot we're waiting to find out. alma, good to have you again >> good to see you >> alma angotti. the atlassian company falling fast after baer cut the price target on the stock to 210 target on the stock to 210 "tech check" will be right back. . hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®.

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>> it's been weaker lately and one of the dominating strains of 2022 is the dollar on how global tech stocks has been performing. dom chu has more >> a lot of those tech-related stocks do get revenues outside the u.s. and it's what exposes themselves to the strength of the u.s. dollar which makes it harder and more expensive to bring home profits if you take a look at the s&p 500 overall, we do know it's been facing headwinds and not

the least of which has been fed interest rate hikes and everything else that has come with regard to valuations. it attracts the value of the dollar and it's been rolling over as of late and up 9% over the course of the last year though i would point out it's been a 9% decline since the peak earlier this fall. still generally higher and the analyst team at goldman sachs put out a note taking a part of the s&p 500 better than most exposed. technology and materials stood out as the two sectors because those two sectors get at least half their revenues outside the u.s. according to them, technology gets 59% of its business and revenues outside the u.s. and the materials sector gets about 50 they're the only two sectors that have at least half of the revenues outside the u.s within technology, computer chips are also a big focus and there's a debate about whether or not computer chips are

accurately reflecting the dollar and they sell to foreign makers who sell to finished products making those chips themselves and nuance there for some investors and one place in communication services you will want to keep a close eye on is netflix, meta platforms and alphabet because that team took a look at revenues and you're talking about 15% of the overall revenues outside the u.s. and for alphabet 54% and three very large, very important names, carl, john that could be exposed for that there are trade i'll send things back over to you. >> dom, is there a double jeopardy issue here, too there is a war in europe which they're very conscious of and zelenskyy and china covid lockdowns. not only do you have dollar concerns, right? you've got some regional issues in two of the biggest overseas markets that you're a global company. the geopolitical risk is a big

part of that discussion and overall when it comes to a slowdown in china, you're talking about a key manufacturing hub and greater china specifically that has a lot of gearing toward that technology trade remember, for a lot of these chip stocks, you're talking about u.s. chip companies that then sell their wares for a foreign maker and a tablet maker that then use those chips that make products that get sold to the u.s. so there is this risk of supply chains and everything else exposure wise to it, but you're absolutely right, jon, these issues facing the world right now there are specific places in geographies that make it difficult to tell where the prospects of these sectors are going especially when it comes to tech and tech-related sector out there. >> we talked to paul mccollum that argue that europe has a stickier inflation problem, we

might get more dollar relief, so to speak which feeds a soft landing argument on the other hand we are bombarded with the argument, dom, that the market looks past fx dynamics. how do you balance those two >> everything in the markets has become a relative trade and it has been since the market inception and the real issue is the exact currency translation exposure and whether or not some of those moves are indicative of weakening economies relative to the u.s. we've been talking a lot about the prospects for possible recession and whether there's a soft landing for some in the u.s. and if there is a slowdown afoot in key markets and user markets like in europe and some of the other places in asia, specifically china if those slowing economies really are a factor and it's not just the currencies that are an issue and it's in demand overall in those products and yes, the

currencies are a big part of the story and if people aren't buying as much stuff is the bigger problem the fact that they're not buying as much stuff, that will be the big debate, guys >> check the major indices, because when you're at session lows, the dow is down 500 points and the s&p carl, art cashin was telling you last hour, that's right about where we are as we approach noon. tesla taking another tumble this morning after a rocky few months for that stock it has lost a third of its value in just the past three weeks "tech check" is ckn coleba ia up of minutes this is not just l. this is laundry that's smarter than the dial, with ge profile smarter wash technology. more care for your cashmere. more power for your workout gear. this is smarter sensing and dispensing. fully optimized cleaning, no more guessing. getting the best out of everything that goes in. ♪♪

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let's get a gut check on amc. the box plunging after the company announced that $110 million capital raise converting its units into equity and that move to reduce the company's debt load by $100 million. amc announcing a stock split pending shareholder approval and shares now down 14%. with that move, the stock is back to right around where it was trading in 2020 like that meme stock phase, jon. it never happened. >> a couple of years in the making >> as new products come out,

another bash have to fall by the wayside. the wall street journal will be here on how it will pan out and what that means for tech that's in just a moment. at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect.

2022 saw the end of tech's

incredible bull run. that downturn in the market also leading to some significant hardware cuts from decades old tech from products in the market for just a few months. joanna, these down turns have a way of shaking out those consumer hardware plays that just weren't that serious. >> it's true sometimes you just have to say good-bye to some gadgets >> yeah, but it's easy to say good-bye so what is most significant for some of these easy to say good-bye to because most of us never said hello to them in the first place? >> i do think it is kind of easy to say good-bye to that one. this suz snap's self-flying drone and it lasted five months. this was a fun play by snap.

it was a camera you could fly in the air. i called it a flying sell fee stick and played into snap's camera and into the app and lens so sort of made sense for snap, but it couldn't weather the headwinds. this thing could not fly against the macro environment. it could not fly against the downturn in ads for snap, so they killed this hardware product. though snap has said they'll continue to look at augmented reality hardware, specifically the glasses and that sort of hardware >> let me try to make a broader market point here because it seems like in 2007, 2008, and back in 2001 even there were a companies trying to use ad as marketing as a way to seem hip, to get into the consumer market and shake things up, and then they just decided hardware is hard when things get rough in a way this is a cyclical

call, isn't it >> it is, right? the margins are low on these products in this case on the snap drone they were charging $209 worth. it was a decent piece of hardware, battery life wasn't great, but it was a pretty advanced type of tech and it actually bought a company before that to make this thing. to your point there wasn't much turn there for snap-in this. doesn't necessarily drive more usership of the app. it was a fun thing for them. and it's similar when you look at facebook this was their video calling device and the idea was to get more people to use facebook's video calling feature, right but turns out that didn't resonate. >> it's kind of nice, the ipod

is great example. >> the ipod dies because there was the iphone and streaming music services, right? so no one really misses the ipod anymore, though at one point it was the thing. it changed and revolutionized. you've got the ipod, which apple said, okay, we're not going to make these anymore, but you can still buy them, by the way then you've got the other side snap and meta taking things off the market because they're just not -- doesn't make sense for them they've got to cut costs and people aren't buying them. >> parents miss the ipod because it used to be you didn't have to give your kid like a phone or internet connected device for them to listen to music. now lites oika pandora's box, anything they can listen to and

that can access anything >> to me this is their big differentiator amazon and google had products like that. when you look at vr, meta is the dominant player. they have 90% of the market. so they continue to go there it has been a best selling device in the holidays sure we've got the meta quest now, but that quest 2 which they said they're going to update to the 3 in 2023 it still sells and building this big play for the metaverse and something again that differentiates them >> all right, i've got 90% of the market involve >> don't forget to follow and

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get a quick check on the markets. it's turning into a tough thursday nasdaq down nearly 3% this morning. s&p down 2 we've been talking about 3800 being an important support line. >> you know what's down, apple which to me is quite interesting because of how well it was holding up for most of the year compared to the major indices overall, much less the nasdaq, also microsoft down about 3.5% right now. but tesla down 8% on a day when visa is down just 1.25 and wal-mart is perhaps about to have a bigger market cap than tesla. tesla could break down below $400 million and there it will find wal-mart. so question both about growth, highly valued stocks in this environment and retail stocks in this environment >> you could argue to some

degree some worry about tesla being vulnerable we'll see what happens this afternoon obviously. let's get to the half and sully. starts now thanks very much welcome to the half time report, everybody. and if you don't like red on the screen, you might want to turn away selling returning across the board nearly every sector, nearly every stock is down and one of the world's best own investors says he's still leaning short on this market tech really hit hard you heard it on tech check micron results rocking semiconductors so where exactly is the bottom for this beating up area we're godebate that and much more let's first though get a check on the markets and