yesterday carnival shot up its shares by 9% prices are going up including wi-fi effective april 1st. guys, i'll send it back to you. a quick check on the markets. the index is sags. nasdaq and s&p, all down a bit more at 1% energy the only group bouncing that will do it for "squawk on the street." "techcheck" starts right now. >> good morning. welcome to "techcheck. this hour,two giant warnings from two giant tech companies. what amazon and microsoft are saying about the state of the tech sector today. plus the doctor eoceos of and a qualcomm we'll dive into that. good morning, carl

we're going to start with fresh commentary warning that a recovery for tech is still two years away noting extreme growth seen in the pandemic is ripe for a correction in in payroll, investing, and efficiency. >> it's going to be very important to look inside and say are we as efficient as we need to be to be competitive. i mean at the end of the day, just because we have a technology company doesn't mean we're the most efficient at what we do. >> big techs, big warning. also taken further by amazon the ceo confirmed that the company will lay off more than 18,000 workers that's nearly twice than what was originally announced and then there's productivity. it was noted 2022 was the first year with three consecutive

quarters of productivity drops since 1983 still, tech jobs, they continue to pay nearly double the national average, and the industry does have an outsized impact on the economy, accounting for more than 10% of gdp in 2021. steve liesman joins us now for some context steve, i love that gdp number. they make up a very small percentage of the workforce, but the gdp impact is key here. >> yeah. if you look at the unemployment rate or the unemployment numbers for the impact of these tech layoffs, you're looking in the wrong place. you're right to look into the gdp area these jobs as you said pay well. they're also a big part of the productivity that the united states is able to achieve. deirdre, i brought along some back-of-the-envelope numbers for you. what we did here was very rudimentary math look at apple.

look at these numbers, $549,000 of revenue per employee at apple, and look at the average employee we did right there the number of employees divided by gdp 171,000. so your apple employee is generating more than three times the revenue than your average employee in the united states. so that's where you can look for the impact look for the price, the salaries, and the income they gets a well as the productivity. that's why in general -- that's one reason why in general these tech companies are so much more highly valued. they do a whole lot with not a whole lot of employees. >> steve, i wonder what are the chances that these tech layoffs are kind of the canary in the coal mine, something that these companies lean hard into the growth period we were just in, tried to hire a bunch of people

and they were able to because they were willing to pay that top dollar now as things are slowing down, we're seeing the cutting could this be the leading edge of the cuts we're going to see more in the financial services industry, perhaps, and rolling through perhaps the rest of the less productive economy? >> you know, jon, that's the reason i watch "techcheck. i want to understand what's going on in the sector there's conflicting data out there and conflicting ideas. you know as well as i do that some of these tech companies overhired during the pandemic. and when i look at the release about the layoffs, some of them are saying we have to right-size our business through the new reality, which some of the online shopping, some of the online business that was being done has now moved into brick-and-mortar stores or back toward normal areas. that does not worry me what worries me is the cuts that go into the broader or say prepandemic levels of activity

the contraindications on that when you look at the overall market, it looks pretty healthy still. the jobless claims numbers are still, if you look at the four-week moving average, it's actually moving down at a time when you should have it moving up so the interesting thing to follow here, watch the headlines and be mindful of them as what you said, jon, a canary in the coal mine. what we don't know is how many of the tech workers are finding work elsewhere and relatively quickly. there was a ziprecruiter survey that showed 79% are going back to work -- finding jobs, and 37% finding work within a month. that would not be a canary in the coal mine. that would be a coal mine that, i don't know, produces coal. >> steve, a remarkable

intersection between tech and macro. we'll talk more about that later. steve liesman. all of that against the backdrop of the trade show that's where ceos of amd, qualcomm, and crowdstrike look at it. julia boorstin is off on the ground there good morning, jb. >> it's a lot smaller than when we were here in january 2020 after years in which they featured far out robots, this year the focus is more on the practical with a particular focus on transportation sustainability and digital health one example in the digital health, u-vice you stick in your toilet we've seen samsung features flashy giant tvs including a

t telemedicine app there's a new standard protocol being featured to reassure consumers if they invest in products from samsung, apple, google, and others, they'll all work together, this as they project a 2.4% decline in took spending from last year. last year it declined from 2.9%. >> despite the challenges, you know, this is no time to hit the brakes and stop the progress that the tech industry has been making. >> i think tech is very resilient. at the end of the day, people still want to enjoy products, they want the products to make their lives better we're excited to be here. >> and i spoke to the ceo of boat maker brunswick he says he thinks his customers

will keep buying. >> premium products are holding up very strongly, and more value-orientated products are a little bit more under pressure overall boaters want to go boating, and we're seeing them being as resilient as we normally expect them to be. >> there's also a big focus on metaverse and questions about the gadget's growth potential in this kind of economy guys >> julia, i heard ces this year jokingly refer to ces as the auto show. there's so much in terms of gadgets coming from the big tech companies. i'm wondering, is that comeling through on the ground as well? some of the newest most disruptive technology has been in software. are you hearing anything about some of these things, about

being incorporated at ces this year >> absolutely. there are a lot of questions wrapped up in that, deirdre. every year for the past decade, we've seen autos have a bigger presence the last time i was here was 2020 there were a lot of autos on the floor. there's a whole area devoted to electric vehicles here and i was walking around some of them yesterday. the real focus is the idea that every company is a tech company. and autos in particular, they're technical. it's not just tesla. we have some new electric vehicle makers here that are in the spotlight. so i think there's this idea it's not just for tech's sake. it's the way tech can be deployed in all of these different centers. also john deere is here and we're seeing this technology not just in cars but in boats but in other big -- these big devices, whether you're farming or using these devices for other things

so it's certainly a conversation with tech influencing every part of the economy. >> all right, julia boorstin, thank you. meanwhile it's been a rough month with the semi-conductors among the worst performers in that time period, amd, that name, 53% in the past year worngt noting, it's still trading above prepandemic. where's the next leg coming from lisa, great to see you i've got to start off really broad because we've got these comments from some other ceos in the tech industry. as we're heading into 2023, this austerity, belt tightening, what you're hearing from oems,

customers, what's needed during that period? >> first of all, good morning, jon. thanks for having me on. it's always great to talk to you. it's great to be in vegas this year kicking off the new year with ces 2023, and it's also great to be here because we get to talk with a lot of our partners and customers all in one place. as we look at 2023, there's the overall macrobackdrop as you've been commenting on we've always been a very product-focused company. we also have a breadth of markets, so in addition to our data center markets really across all of our embedded markets, as well as tcs, it's an opportunity to invest in the longer term while understanding in the short term, there are these macrothings going on there. we're going to continue to

invest in technology. >> let's talk about some you unveiled today your flagship processor for laptops now has an ai engine in it we talked about this before in terms of heterogenous computing, that you have multiple cores in a chip doing multiple things, hyper-e hyper-efficient, you can turn on what you need. this ai, what is that going to allow economy customers to do. is this a business customer feature or something more mainstream for gamers and consumers? >> it was a great night last night. we launched so many products across our notebooks aswell as our new ai capability, which is the ifrt time we're putting ai directly in our notebook processors i view this as the beginning of a wave, jon.

we talk about sort of the importance of havingthe right computing for the right application. we see that certainly in the cloud and what we're doing in the large data centers, but now also bringing that into the notebook form factor it will allow us to view premium experiences like never before. that's really exciting we see things like making your collaboration much more in real life, improves improving the way you do security for your i.t. department yes, we're very excited about it, but this is the beginning where ai can become mainstream. >> you've got to get software work done both on your end and on your partner's end, right, to

take full advantage of the ai. that's the sort of thing that takes a couple of years. what sort of timeline do you expect to develop differentiation based on these ai engines >> well, our first notebook processors with our resin ai will actually launch in march. you'll see them in laptops this year our largest oems are adopting this technology. i really view this, the way we should think about this, john, it is definitely an opportunity for us to continue to innovate in this area and bring user experiences. we see large opportunities in the cloud. i heard julia talking earlier. you look at all of the interests and how we can use more applications we also previewed one of our

more larger data processors that can be used for large language models that enable some of that ai capabilities. we love the work that we're doing here. >> you know, lisa, i wonder. you point out this open ai and it's about the future and the excitement there's a lot of conversation on the street, for example, the layoffs at amazon -- i'm looking at a morgan stanley note they've long written about head count investment in tech i wonder about head count within amd and among your peers. >> i think the most important thing for us, of course, we have to be prudent, and we recognize that, you know, when the macrois softer, there has to be some adjustment what we're doing is actually

inferring that we continue our long-term investments. tech, i've said this before. it's a three- to five-year cycle to develop some of these leading edge capabilities. we can't really adjust that on a quarter by quarter basis, but what we can do is make sure we're cognizant and very prue dejt in ensuring that our overall growth is within the envelope of where thees be is. >> amd ceo lisa su coming to us from ces thank you. meantime a list of growing companies looking to diversify out of china we'll get that information coming up next we still have the ceos of qualcomm and crowdstrike coming up "techcheck" is just getting started.

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our christina joins us what do you think? >> it means completelystoning using china-made semi-conductors. it's also companies like tsmc or intel that have production facilities in china that that means that dell no longer or plans to no longer use the chips. it's not only about sourcing you also have news from a taiwanese newspaper. this would be the commercial times. they're saying dell by 2025 plans to remove their facilities out of china and move to vietnam. so you're going to have a shift in the supply chachblt we've seen this over the last little while among tensions growing between beijing and washington we know the u.s. imposed export controls specifically for high-tech chips to china, yet china retaliated, they

complained to the wto. i say retaliate. i use that word very, very lightly. they haven't actually retaliated, i guess, in a business-type way. it's an ongoing problem. it's not just dell apple, too, just in october, they announced -- i shouldn't say october. it was november. they were talking about shifting production to vietnam with their apple mac books, and in october they did warn, too, they may not be using chips fromwhere mtz, which is a chinese memory maker. i lay that on you. dell's the first one you have apple as well and other companies talking about diversifying their supply chain away from china. >> two things come to mind it's not just about chips but other components that go into the machine. although reshoring is something we celebrate in this country, it's hard to argue that it's going to be deflationary in terms of cost. >> right

exactly. it's the complete opposite even when you have them opening all factory in arizona, that's not going to reduce costs. if anything, this is going to be a huge inflationary factor for the chip factor as a whole this is a concern in two to three years. it's not happening overnight it's why we saw a lot of the chip names drop dramatically in the last couple of months because of the increasing tensions. >> all right the by-creation of the chip industry thanks very much. meanwhile crowdstrike one of the worst performers following a downgrade from jefferies they both join us on the other side of this break stay with us [music - cover of blondie's “dreaming”] [music playing] ♪ imagine something of your very own. ♪

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let's turn now to crowd

strike and take a look at the stock shares they're much lower jeff erreys is outlining their expectations for cybersecurity and the broader threat landscape in a year from now good morning a and thanks for being with us. you said you saw the deal strengthen what is the risk that some of these companies pause adoption altogether what would be the risk more broadly for everyone else? >> well, i think when you think about security, obviously it's something that organizations are going to need, and, in fact, when we see a downturn in the economy, we see some of these layoffs, it's an area that's of great exposure to many companies, and it's a time when adversaries continue their relentless attacks some of from

a cyber perspective, the demand is there there's a lot of regulatory requirements around it the reason we're at ces, this is all about technology, and where there's technology, there's risk and security is needed we continue to see that from smb in terms of the need all the way up to enterprise again, it's managing risk and making sure that companies are secure in a very turbulent time. >> but, george, are you seeing those deal cycles lengthen or adoption pausing any information or color you can give us from the last few weeks? >> well, what we've seen -- and we've talked about this in the past, companies continue to add more layers of approval just because in their own operations they're managing their own budgets. that's what we've continued to see. nothing new to add since our last earnings call. >> okay.

what i'm getting at here, maybe cybersecurity isn't as resilient as the market thought last year. we have seen these lengthening deal cycles, and we know it doesn't necessarily take a vulnerability out of a major company, but it could be a vendor or something way back in the supply chain what would you tell ceos about lengthening that process when they're facing pressure from investors to cut costs >> i'd say a couple of things. first of all, we get caught up in calling it cybersecurity. it really is a matter of cyber safety, consumer safety. you know, we live in a world that's highly connected, highly interdependent where they're relying on every day to get water and health care and communications and transportation is underpinned by a technology base that is basically unsafe so it's absolutely critical that

we come to cybersecurity, cyber safety, with a much more sustainable approach what does that mean? that means that technology companies who for decades have been creating products and software that are fundamentally insecure, they need to start creating products that are secure by design and secure by default with safety features baked in you can think about it like ought moe actives that come with seatbelts and anti-lock brakes and crumple zones and airbags. we've somehow normalized the fact that we've accepted that technology software and products come with dozens and hundreds and thousands of defects, and we've normalized the fact that we've placed the burden of cyber threats on consumers who least understand the threat and are least prepared to deal with it cybersecurity will continue to be a big industry, and crowd

strike is a great partner, but at the enend of the dayer, the cybersecurity is created we need to fundamentally change that if we're going to change the approach to a defensive cyber system. >> right we've seen the ramp-up george, the message feels clear here that cybersecurity or cyber safety isn't just nice to have it's needed to have. at the same time as companies look to potentially pull back, how are you looking at your own business in terms of hiring plans in the year ahead or perhaps mna activity, consolidation in the space >> well, we do think there's going to be a lot of consolidation in the space with $2.5 billion, it requires patience we've talked about the valuations of public markets

going down and that'srippling into the private markets as a consolidator of one of the big platform communities, we see the opportunity. at the same time we continue to manage the cost of our own business and flatten out head count growth and really making sure that, you know, we're in a position to succeed as we go through this downturn and the tech industry goes through this downtur turn and make sure we come out even bigger and stronger on the other side of it so we do think it's a great opportunity. as you know, many great companies have done really, really well with downturns again, security is a must-have as i've talked about many, many times. >> right you've mentioned that many times, yes, indeed thanks so much for being with us from ces. >> thank you we continue to watch shares of tesla, down again today more than 4% at this point after posting its worst year ever, the company reporting september

sales of cars that fell to the lowest level in five months. that selloff continues to pick up steam as strong jobs data shows that the fed is likely to stay areivggsse. qualcomm coming up with more on the other side of this break l w. in the kind of work that i do, you are surrounded by people who are all younger than you. i had to get help somewhere along the line to stay competitive. i discovered prevagen. i started taking it and after a period of time, my memory improved. it was a game-changer for me. prevagen. healthier brain. better life.

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there is a sur jens to kick off the new year we add to this week's bull calls. julia boorstin is here to discuss from ces we're looking at disney today, jb, saying that they do expect iger to make pretty decisive moves early. >> there's so much to talk about in the media space i think what's interesting is for comcast and charter comcast, our parent company, they don't have anything to do with the media business they're just part of the business we're in. much more demand for high-speed data the idea that broadband is not only going to be in demand but that it will continue to grow. and we've gotten past this point of pull forward demand because of the pandemic and now we're into a new growth cycle there. i think that's interesting to identify there when it comes to the broadband piece of this, there's so much conversation about the advertising business this is traditionally where

advertising negotiations start off. those negotiations continue through the up front presentations and threaten are a lot of ad deals done ces is really part of the ad ecosystem as well. one thing i'm hearing a lot about is a lot of enthusiasm it plays into netflix and disney, especially netflix as they crack down on password sharing. that should be a big driver on the subscription, carl. >> meantime i know warner's cfe said 2023 would be a year of rebuilding i wonder, you know, we talk about a lot about these tech companies taking tough medicine on head count and making write-offs of different sorts. i wonder if you can make the argument that the media's already got some of it under their belt >> they do have some of itunde

their belt but i'm hearing 2023 is going to be a tough year or what some call a transition year not necessarily a growth year, but stabilizing. i know you're a close watcher of this as well is how consumers respond. those upgrades of comcast and charter are about increasing demand and high-speed broadband. we know that's important you have to look at the other consumer spending. are we going to see people switching from ad-free to ad-supported, are they going to cut back from here this is going to be a year of transition as some of the new servaiss launch. will we see other consolidations will we see more changes with hulu but i don't think we're expecting a lot of growth. then i'm hearing about a lot of growth in 2024. >> that's a great way to frame ces as well. de, go ahead, i'm sorry.

>> i was going to thank julia and get a quick check of the market the nasdaq is down more than 1% today. let's get you an update with bertha coombs. >> here's what's happening at this hour. any minute president biden is expected to detail plans to address the border crisis including new enforcement measures to increase security and expand pathways for legal migration. he's also expected to tell congress to take action and that without funding and reform, the system will remain broken. biden is planning to visit el paso, texas, on sunday, his first trip to the border since taking office. payroll grew by 235,000 with companies adding far more positions than expected. according to the adp, that growth comes even amid tightening we'll find out more when the

governor releases the monthly jobs report. wall stregreens reporting better-than-expected earnings on strength of flu season sales there's been a dip in a demand for covid vaccines and home tests. back over to you. >> bertha, thank you so much one key mover this morning is bed bath and beyond. their stocks are getting crushed as they explore bankruptcy shares down 25%. plus the ceo of qualcomm on its big push into the ev market. [office sounds] ♪upbeat music♪ ♪♪ ♪when the day that lies ahead of me♪ ♪♪ ♪seems impossible to face♪

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welcome back mixed signals in the holiday season on consumer spending. new data from adobe this morning showing online holiday sales hit a record number in 2022, but that came at a cost. overall sales were up 3.5% through the two-month period of november and december and costing a total of $211 billion, but discounting was a huge driver of the traffic. so there are big questions here, dee, about how much profit, what was the impact on margins of all of that, and we've seen it in these after-christmas sales, right? i don't know what you're seeing in your inbox, but i'm seeing like 30% on top of 60% off and

75% off. i mean, hey, that doesn't show a consumer that really wants to spend that. >> i mean, it's just been a deluge for the last few months, certainly the discounts being thrown out you have to look at the impact of inflation as well, guys, right? it does beg that question, something we talked about at the start of the show. if dwroes margins, profit m margins are going down, how are the companies going to make up the operational efficiency it's a good question for retailers. >> it's been pretty remarkable the number of downgrades of retailer names it was target yesterday. today tapestry, nordstrom, gap, shopify, jon, jefferies goes to a hold, citing a slowdown in e-commerce it's definitely something you would expect if you're looking for the consumer to rein in spending as last summer has been

depleted. >> we're in a weird middle space not just when it comes to consumer spending but also when it comes to jobs, who's hiring versus not in these adp numbers that we got this morning, it's so interesting to see all of the hiring was in small businesses large businesses were actually cutting back what does that mean? does that mean the smaller businesses that couldn't get people are now able to find those people because we're at the end of the tight labor market circle? i don't know. >> that's an argument you hair a lot in san francisco finally these companies have a larger opportunity to get some of these engineers and talent from others. also this trend between services, right? goods and services we've been seeing spending holdup we talked about traveling and china. that's where the spending is happening right now. >> yeah, well, somebody had to man that clearance rack. watch shares of oracle this

morning. jefferies upgrading that to a buy, why they have their mojo back stocks down 1% that call and others behind the day let's movers you can catch that live on cnbc.com and ceo of qualcomm on the other side of this break, live from the consumer electronics show in vegas. we have some more to talk about. don't go anywhere.

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welcome back to "techcheck." earlier this hour we spoke to amd's ceo lisa su. she said some adjustments will be necessary our next guest says his company is going to continue to set the pace, increasing investment in electric vehicles. qual qualcomm's ceo joins us from las vegas. happy new year you've got an interesting car behind you, but i've got to start on the macro we heard from the ceo of microsoft not long ago, hours ago saying there's a need for short-term efficiency despite his long-term bullishness for demand in tech how quickly have you at qualcomm have to shift your posture toward some targeted job cuts and a hiring freeze, and how

much is the landscape still shifting >> happy new year to you, too, jon. maybe i'll go back to what we said in the last earnings call we had about three vectors on our business one was the channel coming from supply chain constraints and then you have the china lockdown we had indicated at that time we're going to be very active with operating skexpenses, but we're kind of on our plan, and, you know, the silver lining, i think one of those three factors, china lockdown seems to be going into a better direction. so maybe, you know, hence the market could show signs of improvement. we don't know. we'll see. you know, in fact, as we continue to diversify the

company, we're actually hiring in some areas. >> okay. so let's talk about what you're announcing there at ces. snapdragon ride flex now, you were here for your auto investor day here in new york a few months ago you were talking about your work on evs also on automated driving systems. this is putting that digital cockpit into one chip. why is that important based on what customers are demanding >> well, let me step back a little bit to answer this question we are all in auto we have been very committed to diversifying the company one of those vectors that has become a very important -- we're all in you see the qualcomm concept car. you would not expect a company

like qualcomm that shows everything possible with the snapdragon digital chassis and we show the snaps. we announced the product we had a momentum for a next generation snapdragon ride, which is our gen 24 economy. we announced a partnership with salesforce they're going to be interacting with their customers through those screens. it's a great opportunity >> what impact do you expect this macro slow down to have on ev and automated driving adoption are oems going to slow that down

at all, pace it out the way we see so many enterprise customers trying to pace out their technology deployment? >> look, i'll say that in a very simple way when you look at the future of the auto motive industry and where investors expect auto motive companies to be, and what is going to define the winners of the future of auto motive is really two things. are you moving to electrification, and are you becoming digital the car is really becoming a connected computer on wheels and i don't think that is going to slow down because it's a necessity for the car company. >> we haven't had to talk about 5g in the context of a slow down how much of a driver is 5g going to be in 2023? >> we have seen 5g impacted by

the size of the market with that we actually brought our numbers down based on the fact the mobile market is smaller because of the macro but that had not stopped the transition to 5g as a percentage of devices so devices continue to upgrade to 5g, and we continue to see the strength we've been talking about. the next phone people buy they expect it to be a better phone >> they you've got a bigger share of the dollar build in those phones when they've got 5g, i recall ceo of qualcomm, thank you for joining us >> thank you >> and coming up a continued resurgence for chinese tech stocks to kick off 2023, the catalyst behind that reversal u next follow and subscribe to our podcast. listen anytime, anywhere, wherever you download podcasts chhe iba ia mer. te ccks ckn mont ♪♪ choosing miracle-ear was a great decision. like when i decided to host family movie nights.

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off to its best start since 2018 and that is adrs shares listed here in the u.s. they are following suit

they're all up double digits this year despite being mixed today. but take a look at this data from bespoke these names all the names i mentioned are either overbought or extremely overbought. raising the question can this out-performance continue there has been a sentiment change as beijing signals a possible ending on its crack down on tech or at least some sectors of tech in addition to those loosening covid restrictions also additional support for the sector but as always is for chinese stocks it's going to be a bumpy ride you still have that question is this a trade or are these stocks investable >> i know you know the morgan stanley desk wrote about revenge travel in china right now because the chinese new year's begins on january 2nd. with the year on year up spend order up 2% year on year we're going to watch that at

least where travel is concerned. >> we want to closeout the show where we started the slow down in the macro and effect on tech. we spoke with the ceos of amd and crowd strike earlier in the hour, got their take on this recent downturn. >> we have to be prudent and we recognize when the macro is softer there has to be some adjustment what we're doing, though, is we're actually ensuring we continue our long-term invegsments. you know, tech i've said this before it's a 3 to 5 year cycle to develop some of these leading edge capabilities. we can't really adjust that on a quarter by quarter basis but what we can do is make sure we're cognizant and we're always prudent in terms of ensuring our overall growth is within the envelope of where our business is >> at the same time we continue to manage the costs of our own business and flatten out head count growth and really making sure we're in a position to succeed as we go through this

downturn and the tech industry goes through this downturn and make sure we come out even bigger and stronger on the other side of it so we do think it's a great opportunity. >> my take away from that, it's about to get real in about two to three weeks in earnings margins and guidance what is going to happen? you've got to kind of place your bets, put your positions in now, right? >> yeah, it's going to get real, and who's best positioned to sort of weather the incoming storm if that's what you think it is going to be. we talked about consolidation. if you're a platform play in this environment perhaps there is an opportunity. chip makers, they've got to look at that secular growth which can be hard in this market environment. >> a lot of the desk guys said maybe the pre-likely hoods go

down and maybe you get some stabilization. before we go, don't miss another big day from ces tomorrow. that's coming up, very big show tomorrow look forward to that for now dow down 420 let's get to the judge and the half all right, carl, thank you very much. and welcome everybody to "the halftime report. too hot to handle that's the message today. we'll debate what it means for the fed and your money on day three of our annual stock summit joining me for the hour today steve weiss, shannon and jason snipe. we're pretty much the lows of the session. dow is down 422, that's where the nasdaq is as well and there is the yield on the ten-year a