you know, you will be able to have the bull market conversation if we get up there because it would look textbook to have the bottom knocked over. >> all right, mike we will be staying tuned to your commentary throughout the day. the bank stocks now actually in the green after all of those earnings this morning. that will do it for us on "squawk on the street. "tech check" starts now. >> happy friday ahead this hour, banks back with the market a messy mixed main street rollout takes its toll on wall street lending and loans in focus as earnings season kicks off. we will break down those results and the impact on thin tech today. plus, we are also talking tesla cutting its car prices getting the rare sell call and it's not just elon under pressure this morning.

more details on the proxy at disney and a challenge to microsoft's bid for accuvision from nvidia. >> happy friday, john. it is a mixed day for so far for stocks we have lows. fighting to get into the grain, a positive sentiment number. those are your leaders, utilities and financials the laggers. on the move right now transports and defense. the worst performers on the s&p. tesla and rivian the laggers attempting to crawl back from an early morning decline. they are off the lows. jp morgan chase and citi group just popping their heads into that positive territory. that is where we start today specifically what it could be telling us about what is ahead for the full season and is there a reboot of the economy? >> there is, indeed. and i just want to point out

that we started immediate reaction was sell all the news for the bank stocks. just put them back up again. jp morgan was 135 at the open and it's been opening up in fact, the overall market has been moving up remember, 135 for jp morgan right at the open. what is the gain here? what's going on? the investors are trying to use these banks as proxies for determining the soft landing the way they're doing this is looking for the loan lost provision. these are provisions these banks make to estimate loan losses they may have in the future. these numbers are higher than they were in the previous quarter, but they are not particularly higher on any historic basis we had increases and then they went back in the covid days and they went back down. these numbers while higher than prior quarters are not higher than historic norms out there. if you are looking at this, you have to say so far they are not

anticipating any kind of big recession that's going on. i think people are starting to realize that for tech check and people that like to watch technology stocks as we do, here is the big story. we have had a terrible situation where the earnings have been decimated in the last several months this is now priced into the market these are not typos. amazon down 86% and nvidia down 38%. we know this is happening. here is the big deal for everybody watching tech stocks can the earnings start coming back a little bit in 2023, which is all priced into the market. we're trying to gain the second half of the year here is the technology estimates. as you can see, they're crummy down in the fourth quarter we're essentially down in the second quarter now most of wall street believes in this soft landing hypothesis which involves earnings improving in the second half of the year and particularly in the fourth quarter that's where the big money is

being made and most of the big earnings estimates for this year if there is any positive news at all is all now built into the fourth quarter what side of that soft landing are you on with how optimistic or pessimistic you are. >> right that soft landing crowd has taken the reins to start the year one manager this morning has been quite bearish for the last year, year and a half. he's been right. i asked what he thought of the bank earnings. he said those comments from jimmy diamond were positive. at the end of the day, that's financials technology makes up such a bigger part of the market, and this doesn't really change the thesis for what analysts and investors may be worried about when it comes to azure growth or the enterprise spending world. >> right i think the big problem with technology is a lot of this now becomes sort of built into these systems. in other words, they are getting not as expensive as they used to be so the important thing is

overall, once you start seeing technology stocks sort of incorporating all of this new technology they have been having recently, it sort of gets built into the system, and we need to find newer ways, newer areas of growth that are going on the re-rating has already occurred it is amazing how far the t estimate s have gone down for these tech names some are in the 20s that were in the 40s. that's much more attractive. if you are not getting big margin growth out of it, it is harder to justify the higher multiples. that's what we saw we saw a re-rating of the multiple for these names we have to find new sources out there. we need to find the next aws that's what we really need to find. >> the folks at amazon hoping aws is the next new aws. citi cfo saying it is building

reserves on the consumer side tied to the outlook for the economy. could we see the thin tech sector traditionally known for riskier products take a step toward the safer side of things? i think that's in part what we're seeing, is traditional financial companies and thin techs acting more alike. >> yes. >> we're seeing that the trading revenues for requities-wise goin down for these banks but fixed income revenues higher and we're seeing consumers expecting a bit more of a return on their savings it used to be the likes of sofi and robin hood we're talking about crypto you can trade crypto over here now they're talking about the apy on their savings accounts. >> i agree with you here, john it begs the question howdo you value these thin techs going forward? yes, they have come down so much, but they are starting to look more like traditional banks, especially those that are deposit takers

those that acquired a bank and received their banking license they now have deposits to draw on so what's the innovation they're kind of going backwards. but take a look at what banks have done. goldman sachs losing billions of dollars in its consumer lending business over the last few years. are they equipped to do this and is there more consolidation. valuations come down a lot. >> with the traditional banks, we have the loan loss reserves to look at when we think about the risk with the thin techs, it is more of a question. if you look at affirm, a block, how can you tell if they're taking on too much risk before their results tell you. >> short-term lending. >> getting breaking news out of the fed. for that let's go to steve liesman. steve? >> it's statements of how much money it gave to the treasury in 2022 it has fallen substantially and it will fall some more, by the

way. it fell from $109 billion the year before. the fed, what it does, is pays interest reserves. interest rates went up, soared to $102 billion. that's up $96 billion from 2021. federal reserve banks stopped transferring remittances to the treasury by september now the difference between september and now is they registered a loss of nearly $19 billion over that time well to remember, the fed has transferred almost $1 trillion to the treasury in the last ten years. what's going to happen this year is the fed will not be giving much money or any money at all to the treasury because of the amount of money it's paying to the banks in interest on reserve in order to keep that money on reserve at the federal reserve and not have those reserves creating inflation is the idea.

>> right steve liesman, thanks very much. well, from big banks to big ceos in the spotlight, we're taking a look at big players feeling the heat in recent days and recent weeks bob iger entering into a proxy battle and elon musk, of course, always in the spotlight but being forced to cut prices on tesla vehicles with slowing demand as he heads to trial over his 2018 tweets let's kick it off from iger. focussing in on the loss of stock dividends, dwindling free cash flow, total shareholder return disney brought him back into the fold to right the ship but can he weather the storm joining us now new york magazine editor, host of the podcast "and pivot. great to have you. last time we talked, you are a fan of iger. you think he is the right person

for this job but you believe nelson peltz deserves a seat on the board does he think bob iger is the right person he was incredibly critical in that presentation. >> he is, obviously. i think they need a new ceo. iger signed a two-year deal. you want a new ceo he's what they need right now and he certainly did a good job at disney for years. i think it is to calm the waters and i think peltz is looking at what's coming next it will be good to move them faster to where they need to do, to talk about what they're doing in streaming, to talk about someone that could take over for the next ten years, et cetera. so i always think it is good to have a board that's all not in violent agreement with you, who does challenge you and nelson peltz has proven himself to be good on this when he was on other boards i don't think he's a disruptive

force as much as a questioning force. i like questioning forces wherever i go. >> this disrupts the narrative, though, because can you have two white knights riding in on their white horses both of them are claiming to do that bob iger is coming back walking down the street. here's nelson peltz saying i'm going to come back and save this thing because under iger, they were spending too much is the key dynamic whether they can come to a common narrative and save the company together? >> maybe so. they were spending too much in the new economic environment the old one was seen as a good deal, right? and streaming, if they hadn't done that, they would be in bigger trouble everything changed with the economy. that's -- he's obviously got the trust of the employees and the executive. they love him. and wall street, too so he's got a lot of assets in that regard. but it is still a good thing to have pressure to move faster in this environment and figure out what to do i don't think disagreement is a problem. again, as you know

so this is a person who has a very good track record in that regard it is not someone who is just sort of coming in and yelling essentially. so i think it is really important to have that kind of pressure on the disney board they finally moved and shifted some of the board members, but most of them are iger aaccolades i know they didn't want to initially bring him on the board, but i don't think they can -- i think they should have him on the board i don't think what pressure they could bring to bear because this isn't helping necessarily. >> how about pressure on m and a. facing resistance from google and nvidia over the desire to buy blizzard they spoke to the ftc over that $69 billion deal nvidia stressed the need for equal access to games but didn't directly oppose the acquisition. microsoft said they are prepared to address issues raised by regulators or competitors to

ensure that the deal closes with confidence now despite that confidence, news will mark the one year anniversary of the acquisition being announced and there isn't a lot of movement. tara, how high are the stakes for microsoft here, though because i don't think anybody is arguing that gaming is the future of microsoft, but it is an awful nice way to load up your cloud. >> 100%. i think gaming is very competitive, so i'm not sure why this particular deal has been focused on so much but of course google and nvidia will pile on this is an opportunity for competitors. that's normal for them to do that i think they have a lot of trouble. i happen to be in germany right now. in europe, the eu hasn't moved yet, of course, the ftc. it will be a difficult acquisition to get through there is a lot of pressure here because it's -- you know, these big companies buying things has been under scrutiny, whether it's microsoft or google

google can't buy much either so i think this is a deal a lot more at risk than i suspect people think it is you know, i don't quite know what they could buy if they can't buy this given the market that the chinese and japanese dominate, the gaming market. it is not microsoft that does. it will be interesting to see what happens and how they handle it, but they may have to get reassurances to regulators it will be much tougher than, say, the at&t deal a couple years ago that the justice department opposed. >> right finally, let's turn to the executive facing professional and personal heat. none other than elon musk. you guessed right. tesla is slashing prices as demand slows for their electric vehicles prompting a sell this morning. right now and during our show musk is fighting to move the trial for his investor loss over his funding secured tweet. can't forget that from 2018.

the stock is of course far from being worth 420 now. losing two-thirds of its value in the past 12 months. how do you judge this situation? i mean, for us especially as we look at public markets, we have just seen this enormous selloff at a critical moment when it is facing more competition coming online what does he do here >> make more trouble i don't know when someone texts me about this, i'm like which lawsuit is it the severance lawsuit or this lawsuit this is how he operates. he likes to get into fights. this is an older lawsuit from the 4/20, the weed reference thing he did he's trying to move the venue from san francisco because they don't like him in san francisco. i don't know what he will use as proof. maybe that dave chapelle situation. he's trying to move it to texas. i think it will go forward the reason they may not like him

is because of the things he's done that's a weird argument to make. you know, i think more of the issue is tesla >> yeah. >> and i guess he's always been feisty and never shied away from a battle, but this time is different. >> i think feisty is different than being a jerk, right there is a thing where you think about whether you want to buy these cars there is more competition and choices. i'm here in germany. tesla is still far ahead in terms of technology and manufacturing and making the cars that people want. but there is huge demand these demands for the evs will go up significantly. he should be focussing on tesla. it is very difficult because people have choices. i joke about it on the pivot i bought a chevy bolt. the price and different things like that. he's got to focus on that because demand is up demand is up in china.

he will face issues there with his chinese committee and subcommittee in congress, so he has a lot of challenges. so he should be -- they never cut prices on teslas, right? so it shows that maybe it is a combination of maybe the way he behaves at twitter there are lots of choices to other things. >> also it shows that when executive start making pot references and their stock prices, be careful folks out there. >> can't resist, though. there will be more. >> maybe he can resist now the way things are turning out. >> he cannot he will not. coming up dilution delusion. plus, despite the drops we are seeing today, the markets are holding on to solid gains for the week the nasdaq is up 3%. we look at the role the retail trader is playing in this rally. we'll be right back.

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i was trying to work. we're workin' it too. yeah! work it girl! woo! i want to hear you say it out loud. well, i could switch us to xfinity. those smiles. that's why i do what i do. that and the paycheck. sglr one of the big themes this year has been a focus on profitability.

one measure we looked at is free stock flow uber, doordash and lyft have seen a draw down with the latter two losing two-thirds of their value. if we look at profitability, there is a reason investors may be more bullish. uber has a tighter margin than that of doordash or lyft thomas also looking at dilution based on restricted stock units found that uber is best positioned for the coming year as well. so will uber be able to outpace the competition and which stocks should you trade based on this stat or what do you need to be aware of going into earning season it is great to have you in person thank you. >> great to be here for the first time in a while. >> uber may be best positioned, but it doesn't mean any of them are particularly well positioned when, as i said, the market is looking more towards profitability.

you were part of that business model. so as their stock prices flounder, what do you think that investors need to know about dilution and their prospects over the next year or two? >> yeah. investors have to look at whether they're going to maintain the high level of dilution related to stock based comp right now because the market changed for tech orkers right? tech employees have more leverage than they did last year so if these companies can regulate to get their stock based comp under control while growing crash flow and ebida. >> maybe more of a bigger question to you, you have been critical of uber, but the street likes them so much highly bullish mean price target of $45 where is the disconnect there? what are they saying you're not? >> the analysts have been remarkably consistent on uber with price targets at $60, $70

and so on. i think he is good at communicating about what he's going to do. i still hold the stock and i hold it because i think this service is not going away. it is global it is a verb it is a noun hopefully it should -- it should just work. if it's run efficiently, it should deliver profits but i think wall street is in a show me stage right now. >> i get a sense you are as well does that mean you are holding on to the stock you have is that a vote of confidence >> it is a vote of hope for the team that they can take what they have just done in free cash flow, reduce stock based comp as a percentage and come out the other side of this looking good. >> thanks so much for joining us >> appreciate it. >> john? >> yeah. speaking of the gig economy and side hustles, the irs is delaying its tax reporting rule for payment apps including paypal and venmo

this is a delay but it's coming. >> yes, it is coming it affects a lot of companies. the irs is delaying a rule that would have required these payment platforms to send 10-99 tax forms to customers that earned more than $600 a year that's down from $20,000, which is a huge change the irs saying the forms will start next year instead due to concerns because of the time line confusion are you confused a lot of people are. this delay does not change the tax requirements if you received any business income through a third party payment platform, you owe taxes. only payments labeled as business on these platforms will be taxed if you reimburse a friend for dinner or paid a roommate for rent, it is not subject to tax if you sell something for gain, those are taxed.

if you sell your couch for more than you paid, good for you, you owe taxes. create two separate accounts one for your business. one for your personal so there is less chance your personal payments get reported. you still owe tax no matter what the irs decides to do. it is just the actual oversight of this that's been delayed until next year. >> this is the downside of the convenience of technology, right? is that now big brother, uncle sam, whatever you want to call him, is able to look digitally over your shoulder and say, about that tax you owe me. >> yes they're looking over your shoulder, but it has also allowed more people to get more income that's not taxed. a lot of people were getting cash or getting checks or going to the bank account that was visible to the irs that now is not visible and a lot of people are not reporting income they used to because these apps made it so easy to pay large amounts for businesses and services. they estimated this bill would

have added $1 billion a year in revenue to the irs in the first year $80 billion or $8 billion over 10 years. so there was a lot of money going untaxed because technology allowed that. >> as eddy murphy said at the golden globes, pay your taxes. still a lot of companies using cash. >> and don't slap will smith that was part of it, too. >> that's what i was referring to the end, that was the kicker >> that was the kicker pay your taxes and don't slap will smith i think there was another one, but i can't remember. up negligent, upping appetite for speculative names like bed bath and beyond, up more than nearly 300% since monday take a look at shares of tesla as well getting hit today after the company announced price cuts for some models across europe and the u.s. in an effort to bolster demand it believes the estimates are too bold target goes to $89 we will be right back. hi ladies!

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risk appetite appears to be on the rise as retail investors start to crawl back into the market kate is with us with more. it's been an interesting start to the year. >> it has, yeah. >> it's largely retail. >> it has. a lot of retail returning to the market and risk appetite growing a little bit high growth tech names this week and maybe helping the overall rebound we have seen in stocks we have new data january tends to be seasonally pretty strong for retail inflows. if you look at buys over the past five days, it is trending well above a normal level in a normal year after a dip we saw in december. at the same time, there has been a concentration of retail buying over some of the stocks that led the market this week, suggesting that mom and pop investors are helping lift equities. amazon was some of the top

retail buys and leaders of the s&p this week. institutional investors were positioned a little more cautiously heading into the cpi number yesterday the most buying we have seen has been concentrated around one name, tesla. the ev maker saw it's largest net buys ever on tuesday despite declines in that stock lately it is the second most widely held stock right now behind apple the bankruptcy play book we all remember that it's been revived at bed, bath and beyond saw speculation similar to what we saw in hertz. some of the original stocks gamestop, for example, seen elevated short interest and for some of the top buys. >> as i'm reading a note, they say this could be a lowest conviction rally you will ever see. coming as a surprise to probably nobody, these are mean stock names, high growth names we know what happened last october. but we've got earnings season

coming up. >> october is a great analogy. so we saw retail leading the rally in october, having some of the same dynamics playing out where they were buying higher growth games as far as retail -- excuse me, earnings season, that tends to be seasonally a pretty strong couple of weeks for retail inflows. it is based on volatility. they have seen more upside and you see retail spike around earnings on the flip side, the bigger names have already reported it tends to die off that's another thing about conviction will it last through earnings season. >> earning season will be disappointing because everyone will be holding the bag again. >> tech earnings around the corner with netflix less than a week away. have estimates come down enough? we will ask a top wall street analyst. plus, could google's margins be at risk? that's next.

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welcome back to "tech check. here's what's happening at this hour consumers are starting off the year with rising optimism. the consumer index jumped to 64.6%. that's well above estimates. inflation is the lowest in 20 months delta seeing its stock fall.

the airline says higher labor costs will take a bite out of its first quarter profits. however, delta maintained its guidance for the full year. and tom brown is prevailing in a lawsuit brought against adidas they said his parallel stripe designs for too close to their trademark. a jury disagreed adidas is considering an appeal. that's the latest. >> now let's take a look back at the markets right now. we are off the lows. the major indexes with the nasdaq coming back from a more than 1% loss the nasdaq and s&p both fractionally lower the dow just a little higher, about flat another move higher by netflix after bank of america names it a top pick for 2023. that name is up 6% for the full week and the defense stocks moving to the downside led by goldman

sachs. downgrading with northrop getting a sell date. we started today's show discussing the messy q4 for banks. but with some of the big names in tech reporting over the next few weeks, have estimates come down enough? let's take a closer look with morgan stanley, managing director brian knonovak. how do you reconcile higher than they're currently trading with your overall outlook for this year where you expect slower growth >> good morning. happy friday thanks for having me no i think we're -- we're still generally we like amazon a lot we like alphabet a lot we were more equal weight on the meta side. but stepping back in the big picture. a lot of the issues we see sort of in line to a little revision risk from a top line perspective. but i would argue that the larger risk that we see

tactically heading in is a lot more on the earnings power we see margin risks on alphabet because of hiring over the last couple years we still see margin risk at amazon as they are growing into their over build and this growing aws situation. estimates don't generally look highly beatable. and i think sort of stepping into the next couple of weeks of earnings, i think there is tactically more risk on the profit side than there is the top line across the space. >> given all those risk factors, you saw amazon at $140 it is sub 100 right now. what's going to get it there in a year where we have this recession risk, worries about margins, about aws >> yeah. we think the key for amazon is really to just deliver on core retail profitability and i would just of remind everyone that if you look back to 2021 and 2022, amazon overbilled you know, they made a mistake.

they built too many warehouses, too many square feet open. essentially as e-commerce consumer spending slowed, they had too many feet and not nephew nits to roll over all those square feet. so they are not as efficient as they should be in their overall logistics business as e-commerce grows over the course of the year, we figured we will see better utilization of all those warehouses. and we think that overall profitability for the company is going to start to beat as we get into the spring, summer, fall and back half of the year. >> let's talk alphabet price target of 120. it is also sub 100 you raised the idea that it could face further margin pressure because of the pressure that open ai, its parent company, is putting on alphabet. it could push the company to push out its own ai product faster run through that with us and how alphabet runs higher from here. >> that's right. it gets really important for

everyone to continue to pay attention to all of the rapid innovation and artificial intelligence right now led by open ai. don't forget, alphabet has been aggressively investing in artificial intelligence for years. their product is called lamda that we will become familiar with we think they are more than likely to roll one of those products out over the course of the year to show that they are just as ai equipped as which thegpt is. the key point of this is don't worry about the consumer use case it is a lot more compute intensive and expensive, quote, unquote, for alphabet to run these natural language queries than it is their current search queries. it is a margin risk and there is revenue risk as well we don't worry about chatgpt disrupting google's position at

the top of the search engine. >> well, the tech heavy nasdaq is under pressure, but chinese tech names are in the green, extending a rally they have been having all year. we will break down china's latest regulatory move allowing apps back on line. we will catch up with the ceo of vmware to talk about the outlook for 2023 be right back. theme song: unnecessary action hero! dad: was that necessary? unnecessary action hero: no. neither is missing this deal. with paycom, vacation is yours to manage. unnecessary action hero: not to mention benefits, scheduling, payroll. it's hr in the palm of your hand. dad: wow. unnecessary action hero: ask your employer about paycom. and make the unnecessary, unnecessary. dad: approved!

chinese authorities signaling a pull dback on tech shares of didi on the otc market, remember it was delisted, they are popping this morning. up 3%. it is the latest sign that china's regulatory crackdown on tech that started in 2021 may be starting to thaw didi coming off a rebound after cyber space administration of china imposed a $1.2 billion fine on the company back in july that's the largest since alibaba was fined $2.75 billion. the country's crackdown slicing hundreds of billions of dollars off tech valuations as well as shrinking profits to date. that is the key point here,

john didi, i highly doubt it will look like that company that went public that had all of its prospects above it same goes for ant group. that is one of the most exciting thin tech companies in the world. what does it look like now some might argue it looks like a traditional services company. >> when i try to look at this from an investor perspective, the thing that gets me is, yeah, the chinese government is easing off, but for how long? there is not a lot of clarity from where i siton what the guard rails are and how we know that in six months they're not just going to do the same thing again maybe with the same group of stocks, maybe with education companies again, maybe with some other group, maybe with the same group. you don't know you just take your chances. >> they are already looking at online brokerages. also, the question of how much value has been destroyed

you take a look at the web some of the top holdings are all alibaba. you have to wonder if the next group of winners selected by beijing will change that story and how americans can invest in these companies. >> wmware coming in at number 11 the stock seeing a nice rally over the last three months, up nearly 20% we will talk to the ceo next plus, tim cook is taking a voluntarily pay cut with his compensation coming down 40% details coming up.

welcome back cnbc releasing the just 100 list vmware climbing to number 11 overall, ranking second among software companies in the rustle 1000 leading on some key issues. most notably wages reporting numbers by gender and race something only 14% of rustle 1000 companies do, shedding light on their strategy is their ceo. welcome. the treatment of workers overall is a big part of this ranking. and the data that vmware has

chosen to disclose and the pay analysis that you have done is a big part of that what is the impact on the workers, on moral? >> yeah. so we are very excited about the recognition, and a big part of the recognition, like you the recognition. a big part of the recognition like you pointed out is about how do we treat our employees. this has been consistent to our values and how me measure our leaders. so it's been very well received. we've been steadily working on this aspect of of employee comp scission >> there aren't a lot of things that the just 100 measures really quickly in just a year.

you can disclose some things but they're not going to look so good unless you're working on them environment is another area where you score relatively high. 100% renewable energy that you use through operations as we move through energy prices being really high how has it affected your ability to hedge and take advantage of even then falling prices in some cases >> as a company our conduction is not so large that it requires very complicated hedging strategies but the most exciting thing about what we do is technology naturally lends itself to our customers becoming efficient and we have built sustainability metrics into our products so

when a customer reuses our products to run our data centers, then they can automatically adjust how their data centers operate to optimize our energy consumption that is a big, big step forward and managing their own energy expenses so that's a key reason why we jump >> i don't see broadcomm on this just 100 list. they're in the process they hope of acquiring you what happens to this process if that acquisition goes through? >> we're excited about the acquisition and we've been collaborating with broadcom on a number of issues this is one of the areas we're excited by they've got a strong esg program on their own so we're very

excited about our philosophies aligning >> we've got to ask you about customer demand and enterprise >> by the way, our q4 is still in progress. so speaking at a high level here's the interesting thing we're seeing suddenly now in the category customers undertaking -- >> all right, thank you. >> thank you >> and coming up this isn't something you hear too often, a ceo cutting his own pay. that's right, tim cook giving himself a pay cut. plus, if you miss part of the show do not forget to follow and

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a lot of criticism of

executive compensation out there these days in corporate america. tim cook perhaps feeling the pressure, voluntarily taking a 40% pay cut. steve covack is here to explain. >> cook's pay cut comes in response to a dramatic drop in shareholders approval of his compensation package last year and as a result cook's 2023 compensation will be $49 million, down 40% from the target of $84 million last year. his new pay breaks down like this, $3 million in base pay, 6 million in cash incentive and $40 million in equity awards 75% will be tied to performance. before 60% of his stock rewards were best over time even if cook retired. so if cook was planning to retire soon he has less incentive to do so now based on the new stock award future and apple saying they'll keep

cook's future compensation in the 80th to 90th person tile among his peers. this all comes from scrutiny bob iger got a pay cut that's far below the $65 million a year he was making at one point, john. >> now, steve, all these stocks are trading well below where they have recently so while you might say that they're taking less money, if they're gearing more of that toward performance they might still end up with more money >> yeah, that's right, we also can't lose sight of the fact shareholder approval for tim cook's comp scission just fell dramatically it was something like 95% approval in previous votes and a year ago when they voted on it was 64%. a huge drop in what apple said

in their filing caused them to invest more with investors >> investors tend to feel like if i'm not making more from the company you shouldn't be either. >> we're going to closeout with earnings banks today of course netflix going to kick off the tech parade next week nasdaq, though, climbed back earlier loss said. we were at the flat line for a little bit but still under water by about a third of 1% what does it tell us about the upcoming earnings season if they were decent and the markets are still largely lower on this, doesn't bode well to especially that retail driven rally. >> well, it seems to me like the banks set aside more for loan loss reserves which people initially read as uh-oh, but then on the calls they're saying, wait a minute, the consumer still looks pretty good so, yeah, we're doing this so

don't read too much into it, but we're going to read more into the economy as we get these earnings numbers and perhaps people will rethink that reversal we got today. >> absolutely. and it's something we talk a lot about is enterprise spending, right? so in that case we're going to be looking over quarter earnings, perhaps not the year over year. all something to look forward to in the weeks ahead, john, as we'll be busy. let's get to scott wapner is and the half welcome to the half time report front and center this hour, the risk reward for stocks has it gotten better or not this week we'll discuss and debate that with the investment committee. joining us at the table steve weiss, jim labenthal, joe t terranova. right now we're almost flat across therd