of 2 million dimes from the u.s. mint in philadelphia earlier this year, if you're keeping score, that's $234,000 worth of dimes, that weighs two tons and didn't even get it all. the dimes were strewn across the parking lot. >> heavy take for sure. all right, guys, thanks for watching "power lunch." >> in quarters. >> "closing bell" starts now. >> welcome to "closing bell." i'm santoli. this make or break hour begins, the stocks finding some traction after five straight losing sessions with old industrial economy stocks bouncing on decent results. ankur crawford owns a number of those names. she'll join us with her take coming up. bond yields are steady. we had that ten year click up yesterday. no further real declines in the

yield. oil down for a third straight day. back into the low 80s on wti crude. small caps had been outperforming much of the day. banks, though, continue to lag. they have certainly been pulling up the rear for much of the last several months. we begin with our talk of the tape. is the three-month market pullback driven by macro and interest rate concerns running its course as the final earnings season of the year gets under way or will the bolts remain penned in by higher rates and fears of slowing growth and whatever else we can think of. let's ask adam parker, cnbc contributor. adam, i don't know, people trying to look on the not so negative side. yesterday, a bit of a failed rally. today, yields are quiet, markets able to maybe seize on some of the fundamental news. are weable to go from macro to micro at this point? >> during evenings season, some stocks give you four updates a year. the rest of it is all macro or factor betting.

i think we're getting some mixed to positive results on aggregate for the earnings season. i do think we can get back in this goldy locks period where we can dream they're going to stop raising rates and eventually there will be accommodation? yeah, i do. we'll end up the year higher based on that. >> the key question has always been is it just another growth scare where investors are over anticipating a recession or a steep slowdown or rates going to hasten the day when we have to bring it here now? it is inconclusive evidence. there is nothing to say that the soft landing has been called off. >> yeah. of course. if you wait long enough, you forecast 17 of the last zero recessions and you get one, you can say you're right. i'm not saying you. we'll see. the ten year doesn't keep backing up forever unless growth is good. they're getting closer to the same level and we'll see what that means. i could see people wanting to buy the two-year road of the

ten-year and that will get us back to a normal shape curve. i don't see the ten-year backing up a ton. >> yeah, wouldn't think, or you wouldn't want it, certainly, if that were the case. we have breaking news on qualcomm. kristina partsinevelos here with that. >> qualcomm aims to bring ai to the edge. personal computers, local servers and smartphones. it plans to do so with the announcement of two new chips. first, the snapdragon and secondly the x elite chip for pcs and laptops. both help run generative a.i. applications without having to rely on the internet. my colleague had an exclusive interview with qualcomm executive who said the new smartphone should generate an a.i. image in less than a second versus last year's model which took 15 seconds or so. that means shoppers will no longer be asking how great is my camera, but what is the speed of

these a.i. applications? no mention of apple in this report. the second product is going to be an arm based cpu chip for microsoft powered pcs. the cfo saying it will make them the new cpu leader in mobile computing and says it is 4 1/2 times faster than intel's x 86 chips. and will be introduced in mid-2024. reuters reported that nvidia is building a cpu chip for microsoft-powered pcs, amd as well. that means more competition for intel and apple that is growing in the space with its own custom chip over the last little while. for more on all of these products, qualcomm's ceo will join us on cnbc at 4:00 p.m. eastern for a first. >> chkristina, thank you. what to make of this in a big picture sense where the companies are trying to go closer to the end user in terms of the a.i. capabilities. nvidia with the pc chip

development news as well. >> yeah, look, we're in the early phases of a 120200 to 20- trend. you'll have semiconductors at the center of it. it is not -- nvidia will be best positioned and we'll do the best over time. there are multiple aspects to it. i think the easiest thing to say is everyone wants to compete against intel. they have been basically, let's say, the single worst steward and very easy going and gaining share from them and not surprised to see nvidia mention that yesterday as a superior company over the last ten plus years in a minimum. i think some of the other things on the phone, we'll have to see what the competitive landscape looks like. but, you know, there is a number of companies that will be participating. >> at some level you feel like the added capabilities are kind of table stakes. things get better, they get faster.

>> i'm not sure where the incremental share gain comes from that. some of it gets priced away. it is fair to say, if you came into this year thinking the semiconductor industry grew, non nominal gdp, compute will gain shares, and i think that's partially why the things are trading at higher multiples because their long-term growth rate will be higher. >> there is a way of telling a story this year in the market in general. you more or less had just kind of a bear market rally or very strong rally off the lows a year ago. and then beyond that, everything else has rolled over where as you had the a.i. story line or anything that touches a.i. and megacap tech has managed to keep things going. we know this, right? if that's true, it would seem to at least allow for the fact that the rest of the stocks, if not to carry the market, that there have to be some opportunities or some bad news already priced in on those levels. >> i think that's true.

i get that question a lot, more of, like, hey, can we give a broadening rally. if you look at our last couple of weeks, i don't think small caps are that cheap. when i parse it out by growth versus value, growth looks expansive, for small and large, value looks cheap for both. i parse it out by quality, the megacap quality is much better than the small cap quality, higher margin, command an asymmetrical higher multiple. i don't think you get that broadening rally until or closer or more in the downturn. blood on the streets phase. you need things much worse. then you can dream the margin expansion that after that will be better. i think they'll have just as good results if not better than the small caps and what makes small caps work is their margins go up more. is it labor, materials, the depreciation, pricing and mix, none of that looks like a great cocktail in its quarter to a relative basis. i'm in the camp that the market goes up and the big seven

participate at least pro rattia. >> it is pretty hard for it to be otherwise. let's bring in cnbc contributor brynn talkington for more on this. brynn, just in general, i know you're an owner of things like what microsoft and nvidia. how you to think they are positioned as we're about to get this latest little update fundamental news. >> i think when i start with the technicals, if you look at the nasdaq, the nasdaq is firmly below the 15 and 100 day and continues to make those lower highs and lower lows. the nasdaq in general doesn't look good. a few standouts like google and meta, which look the best of the magnificent seven from a technical perspective. i go into microsoft's earnings today. you look back the last two quarters, to me the key word that satya and team talked about was optimization. meaning that clients have been optimizing their spend, meaning to me spending less, while last quarter we saw with microsoft

the capex is picking up, mostly going to a.i. i think you a juxtaposition that overall the clients of microsoft are optimizing while microsoft is spending for the future. they're going to spend more today to try to earn more in the future on a.i. so i know that the street is looking for about 8.7% revenue growth. i don't think that microsoft's earnings today are the catalyst to get, like, the tech trade back up and running. i agree with adam, to say if we get a rally november and december, i think tech will keep up. but when i look back, microsoft is flat over the last two years. so ail lthough we love to talk about the year to date performance, if you held microsoft from november of 2021 to today, you're flat. you have seen a reversion and a catch-up of being at that high in 2021. >> yeah, no doubt. look, if you look at a longer

term chart, it looks like it could easily be this big double top. it went right up to the old highs over the summer and pulled back from there. on the other hand, over the course of those couple of years, it has gone from a 34 forward multiple down to 28. it is not cheap. but on some level it seems like microsoft for a while was almost the most important megacap in there because you -- everybody could make an excuse to own it for a while, right? you could be defensive, you could be a growth investor, you could essentially be playing the a.i. theme or just saying these are really good managers and i'm just going to get in the way of every digital trend out there. how do you think that works from here? >> if you think about investing for the future, the yield curve doesn't matter to companies that are executing and can grow through a cycle. with microsoft on the positive side, you satya and team that continue to execute. he is very underrated, i think, in his dominance of a.i. and you also have microsoft, definitely the closest publicly traded company to open a.i.

because of their relationship they have. so i think that investors are going to continue to own microsoft in that a.i. bucket and also don't forget, co-pilot in earnest launches the first week of november. so while it is not going to remotely be embedded in earnings or revenues for the foreseeable future, there will be a lot of excitement talking this quarter and next over how co-pilot is being adopted by all of us that use microsoft. i still think it is a great long-term hold. but i don't think this quarter is going to separate itself and you're going to see a big run outside of just the markets' run itself because of these earnings this quarter. >> adam? >> hey, brynn. nice to see you. i largely agree. i don't love the november 21st comparison. that's the peak of -- we didn't start raising rates until march of '22. a lot of the nasdaq got killed.

i think, brynn knows this, a lot of it comes down to your investment horizon. if you're saying five years from now, i would like to look back and have something in my portfolio that benefitted from a.i. you have to own nvidia and microsoft. they're the best positioned. and i'm sure ankur will talk about this next. you want to own it. whether you get upside enough, they didn't have upward earnings revisions last report of microsoft and other megacaps did. surely they're well positioned to benefit if you look out one, two, three years. you can start sketching out a scenario where you pay 20, 30 times that. it is all investment horizon. i don't know fwhabout the next months. >> brynn, you mentioned microsoft investing for the future as the customers try to trim back. this is an area of sensitivity along the street with the

companies, meta, everyone fitiate f fixated on the operating guidance. how does that play out? >> i think last quarter they're spending a lot on capex. they're going to -- when i said they're going to continue to -- the clients are optimizing, they are not. they're investing for one, two, five years from now. i think we all understand co-pilot is going to be $30 ahead, so you can do some math and actually see over the next one to two years how that actually trickles down to revenues. i don't think with the other companies that's so clear. i do think between the very close relationship they have with open a.i., co-pilot being $30 ahead, which you could model out if there is broad adoption, that gives another runway for microsoft over the next few years. >> yeah. more broadly, i was noticing the

way exxonmobil and chevron traded lower after making acquisition announcements. it now happens a lot, crude has been in pullback mode. but it seems like these companies in particular cultivated a shareholder base that says kick the cash back to us. that's what we want right here. it is a tricky thing for management and i guess if you want to know what you own, whether you own an empire builder or a show holder return focus management. >> in the near term, you never like that kind of price action, very tactical. you hope when you buy something, the market likes it, i think they're getting assets and pretty low premium, look at chevron situation. any medium or long-term view, i believe you should own a lot of energy and energy stocks. demand looks to me like it will be very steady, with looking at install base of new vehicle sales and capital spending is top left to bottom right.

you can have a lot of other things happening. i think the probability that we have demand above supply is very high in the medium to low term. i would recommend investors own at much energy, equities, or actual direct resources as they can. one of my two highest conviction ideas for our institutional clients. >> you're probably along for that ride to some degree. >> i think we're very exposed to energy. and as a long-term investor, it is great to get the cash back. i get your point, mike. i agree with that. but ultimately i think with both of these pioneer and hess, exxon and chevron are saying one plus one can equal three here. what we're seeing if you look at ford and gm, people don't want to buy evs in aggregate. they want to buy a tesla. they want to buy an experience. so i think these companies are

getting a read from the street. i promise you fossil fuels will be here five decades from now. this whole peak oil, all go solar or go green, that is taking a back seat to the reality of how expensive it is to go green and people still have not going to have a large adoption to evs. i think they'll continue to buy tesla, and this is where to me that narrative for companies with high free cash flow, high shareholder return, squarely sits in the energy camp. i wholeheartedly agree with what adam's view. >> still a cigarette business and still make a lot of money. >> last year was the biggest coal production ever. this will be several years from now. >> i get it. but the oil intensity of gdp is going nothing but down and has gone nothing but down forever. that doesn't mean in the absolute terms demand goes down. >> just to be clear, i'm not talking about the environment. i'm talking about the stocks,

they're cheap with low estimates, tons of free cash flow and everyone hates them. that's a cocktail that lookings good to me every time. >> everyone hates a minus two. >> besides s brynn and i. there is opportunity i think more for us. >> fair enough. good to talk to you. we'll catch up with you again soon. let's get to our question of the day. we want to know which of this week's reports will have the biggest move post earnings? alphabet, microsoft, meta or amazon. we will share results later in the hour. we're just getting started. up next, your tech playbook, ankur crawford is ahead. she'll join me at post nine after this break. s&p up near the highs of the day, 80 basis points.

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renew their registration until outstanding balances are paid. payment assistance is available. visit bayareafastrak.org/ase so go pay your unpaid tolls y and keep your wheels on the ! the nasdaq higher as heavyweights microsoft and alphabet gear up for earnings after the bell. here to preview the report and meta's later this week is ankur crawford, chief executive vice president and portfolio manager at alger. good to see you. >> good to see you too. >> we often talk about these stocks as one big blob, the magnificent seven or faang or whatever it is, as if they're similar energy sources driving them, as if the same things matter to all of them. not always the case. as we sift among the ones reporting this week, what matters? >> i think what matters is

different for every single one of them in part because the end markets and the operating expense discipline is all different for each one of them. for microsoft, what is going to matter is, you know, do they see stabilization in azure or cloud business? how do they think about or how are they guiding us to how a.i. will be with the introduction of co-pilot in q4 and 2024. for meta, it is going to be all about opex. they seem to have a great revenue, we expect revenue beat and probably a raise. but what are they going to say about their -- do they go back to their ways of pre-covid, they spend willy-nilly or maintain the discipline? for google, little bit different. google, it feels like, you know, what is the product cycle? we're looking to see if they say anything about a.i. that can help us bridge the gap in a more uncertain economic environment for a product cycle.

so i think it is different for each one. you may see a bifurcation in their reactions of each one of them. >> when it comes to microsoft, there is the, you know, obviously in the azure business, that's a matter of if is demand settling out, margins stable for a while. in terms of what they're doing with a.i., with co-pilot, there is the -- we're going to sell x number of subscriptions seats or whatever, also, how you are running your business differently, presumably. your own business with all these tools. >> yeah. so, it is funny, i think the software companies are not only the enablers of this entire a.i. revolution we're embarking on, but they also are eating their own -- to some extent, they are increasing internal productivity, they're seeing how much productivity is increasing and then selling it. so, they actually get a benefit from both sides, where as the rest of the market will benefit from the productivity increase.

some of these software companies will see a massive increase in pricing power, in part because they're enabling that product to be increased. >> yeah. i guess there is not a real handy way for investors to say we're just going to play that trend. they go to the providers, right? do you think that as people look at other businesses as those companies adopt whatever these productivity enhancing tools are that it actually is making its way into earnings models and things like that? >> i think that is going to be slow relative to, you know, how we want it to establish itself. and in part because these changes take time. however, it takes time relative to the business model that we have on excel in the grand scheme of things. i think by the end of the decade, we'll probably see 40% penetration of gen a.i. type products into the mass market. every single company will have to adopt this.

>> you mentioned for alphabet, you know, one of the questions is what are they going to be able to tell us in terms of their position here and whether they're going to get payback on their investments. as a business right now it seems like they had a little scare, the street thought they were going to be kind of a victim of the a.i. movement and now it is back up toward its highs, seems like it is a consensus hold again. >> and oftentimes i think, you know, consensus is consensus. and oftentimes what you have do is look beyond this quarter. they're going to be reporting in 30 minutes. and we're kind of looking forward six months and saying, you know, the economy is a little bit unstable. the ten-year is over 5% or close to 5%. the consumer is looking a little shakier than it has historically over the last few years. so the end market is eadvertisig driven by the consumer and the

economy. because google, unlike the others, they don't have a product cycle that bridges them through this uncertain environment, it becomes a little bit more difficult to own relative to the other two that do have product cycles. i'm looking over six months, i don't know what happens tonight. >> sure. so does that imply something like a meta? all this focus on the operating expenses, that's because people just take for granted that, you know that advertising engine keeps spinning? >> it is not only the advertising engine that meta has, it is the product cycles under align, the core advertising engines with reels, with direct to connect, with the a.i. platform that they just recently introduced and the monetization of all of these. that is going to drive the top line, but we just have to make sure that they don't spend it all away. >> yeah. >> so we actually realize it in free cash flow. >> yeah.

that will be the focus and i don't know, last time people panicked about the spending at meta, it created a good buying opportunity, but much lower. we'll see how it goes. great to see you. thanks so much. up next, trading the uncertainty, bank of america's chris hyzy highlighting the three sectors he's seeing strength in right now. he'll break down how you should position your portfolio after this break. "closing bell" will be right back.

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welcome back the major averages in the green today as treasury yields stabilize ahead of a flood of earnings reports. here to share where he's finding opportunity is chris hyzy of merrill and bank of america. good to see you. >> great to be with you, mike. >> how are you seeing the big picture action? you could have said coming into this week, markets maybe getting

a little oversold, we're in a better seasonal period, near some kind of potential support levels, maybe the yields can calm down a little bit and make way for something good seasonally as we focus on earnings. does that make sense? are you persuaded by the action today at all? >> i'm not traditionally this stark as it relates to what this week actually means. but this is a big week. the magnificent seven, the narrow leadership has been the news headline for a while. that passed the baton over to the 5% yield on the 10-year treasury and bouncing off of 4200 on the s&p and so many cross currents not to mention the significant rise in geopolitical volatility and risk overall. this mountain of earnings this week is particularly in the tech sector, that has to drive some momentum and a little bit of tailwinds and catalysts to get some of that, i wouldn't call it risk on, but to get some of that

move back into the equity markets to establish these long positions again to set ourselves up for next year. so, this is a big week. >> what are we being set up for into next year is also the question. it seems as if we're a year after there was a near unanimous consensus that there was a recession coming within a year. we didn't get it. it still feels like rolling our anxiety forward every few months that in fact finally is going to be some kind of economic payback period. what is your assumption at this point? >> certainly the assumption is that it is a mixed bag. there is going to continue to be cross currents. the great debate we wrote this report not too long ago, soft landing or any kind of landing? and for what it is worth, i think if you talk to businesses, if you see what is going on generally speaking in the forward-looking projections, what gives it some comfort is the fact that there is slower spending at the consumer level and a little bit of relaxation

of growth overall, we're not in that mode where we're falling down the cliff, yet. the fed hikes that we already have seen are beginning to bite, but there is tremendous resiliency out there. so what gives us comfort, mike, is the fact that profits could actually reaccelerate next year. now, the question still is out, did we actually bottom in earnings? some think we have. i think it is a little bit of a mixed bag. but overall when you look at next year, should be that platform year again, more normal yield curve, more normal economic activity. and the thinking cap that goes on in investors' heads should be more about the latter part of '24, '25 and '26 to establish that long-term sustainable bull market again. >> it is a good ways to look ahead, though we'll see if people can maybe use that as a frame. where within the market seems like it makes sense to try and

position as we head into something like that? >> i think if you look at market internals, we all know you talk about the 493 other stocks and how attractively valued many of them are. even if you look at the s cyclicals, and small caps on a relative and absolute basis, and emerging markets, there are so many ands, ands, ands, thinking forward, when you think about what drives long-term sustainable bull markets eventually you got to look through the storm, the wall of worry is high, when you get that blue sky, it is almost too late, so you stick through it. you be diversified, stay high quality right now, but overall it is productivity, it is a resumption of the profit cycle and it is ultimately falling yields. not collapsing yields, but falling yields which helps support that better attractive foundation in stocks relative to fixed income. we'll touch on fixed income very quickly. a more normal yield curve is on

its way. there is some pain on the way and it is pain extended longer than most people expected. but where real yields are now, fixed income is also attractive. >> you're not concerned necessarily that when you do get the yield curve return to a more normal shape, everyone says that's another building block of the eventual recession? >> well, not if you're coming off of the severe tightness of overall policy and starting to come down. if there is more normal monetary policy, where rates come down a little bit on the front end, after the back end starts to look through and see slower growth, you get a more normal yield curve, something like 3.5% fed funds, 4.5 to 5%. that's the 1990s. we had very good years overall across asset classes in the 1990s. they weren't absent of volatility, but more normal than the days of low rates, low

inflation, quantitative easing all the time. >> we'll see. the fed seems to be in no mood to cut two percentage points anytime soon. we'll see how it goes. chris, thank you very much. >> thanks, mike. up next, we're tracking the biggest movers as we head into the close. kristina standing by with that. >> verizon having its best day since the great financial crisis. and slow demand offset by higher prices from one conglomerate yet again. i'll have that name and much more after the break.

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20 minutes until the closing bell. we have the dow about 240, the s&p up three-quarters of 1%. back to kristina for a key look at the stocks to watch. >> the conglomerate raised its earnings per share outlook citing restructuring and spending control efforts and raised prices. shares up are 5.5% today. general electric is also in the green after handily beating estimates and raising its forecast thanks in large part to increased demand in the aerospace business. shares of ge up 7.5% now. last but not least, verizon is having ibest day since 2008. they raised the free cash flow

forecast for the year, shares up 9%, but still down 13% this year. mike? >> kristina, thank you. another name we're watching this afternoon is gm. this as the uaw expands its strike to a crucial gm plant. phil lebeau here with that. >> a big plant and a big hit for general motors. you're talking about the plant in arlington, texas, where they build all of their large suvs. some perspective just how important this plant is, 5,000 uaw members walked off the job there. this is 20% of gm's u.s. production. it is the largest most profitable plant they have in the united states. not surprisingly, this is news that does not fit well as they come off of an earnings report where they said, look, we're already going to take an $800 million hit, $200 million a week going forward and that was before the announcement came out. they pulled back their guidance, completely for the year, they don't know how much the cost

will be from this strike. here is ceo mary barra during the conference call talking about the state of negotiations. >> current offer is the most significant that gm has ever proposed to the uaw. they demanded a record contract and that's what we offered for weeks now. a historic contract with record wages that have increases that are substantial, record job security, and world class healthcare. as an offer that rewards our team members but does not put the company and their jobs at risk. accepting unsustainably high costs is something i will not do. >> we will get ford results after the bell on thursday. and stellantis, it had a plant that was hit yesterday by the -- by friday, by the uaw, they will now have 525 workers that they

are laying off, the ripple effect we have been talking about. more than 7,000 workers between gm, ford and stellantis has been laid off. that shows you this goes beyond the people that have walked off the job. it is impacting others at plants that are still in operation, though at a reduced rate. >> that will certainly start making its way into the broader economic numbers. gm stock peaked today around 10:00 a.m. after those earnings. down 4% since then as we're talking about this new plant closure. the question again, does this seem to just get everybody else dug in, in the same positions or moving the process along at all? >> two arguments here. you'll hear people say this is an indication that the uaw is flushing it out toward the end that we may be close to a resolution if you will. but i get no sense that this is, you know, we're going to seeing some announced within the next

week or so. i just don't get that sense from talking with people who are close to the process. and one other thing to keep in mind, mike, gm shares also under pressure because of the news out of california with the dmv and cruise. cruise in the future potentially could be a big moneymaker for gm. this is not good news coming out of california. if you buy into the idea that cruise and autonomous driving will help gm's bottom line. >> phil, thanks so much. last chance to weigh in on our question of the day. we askeded which of this week's reports will have the biggest impact. we'll bring you the results after this break.

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let's get the result of our question of the day. we asked which of this week's reports will have the biggest move post earnings. microsoft in the lead. the largest of them all. 38% of you said that's going to have the biggest move. amazon right behind it. up next, the earnings setup, we're breaking down what to watch when alphabet, microsoft, snap and visa all report in overtime. all that and much more when we take you insidthmaeton e e rk ze. in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses move to the cloud. - so, the question is... - cyber attack! as cyber criminals expand their toolkit, we must expand as well.

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we are now in the closing bell market zone. as the indexes hang near the highs of the day. there is a wave of major earnings out in overtime today. we're bringing you what to watch for each of them. deirdre bosa has alphabet. steve kovach on microsoft. julia boorstin on snap. and kate rooney on visa. d, alphabet or it is only less than 2% from its highs, it is up 6% this month. does that mean expectations are high? >> it does mean expectations are high. this is a stock that is favored by the long onlies. the long hug of megacaps. the first was characterized by more of the promise of artificial intelligence, what it was going to do there. the second half has been back to basics, the fundamentals. alphabet's core business is still very much so in advertising story. nearly 80% of revenue comes from search and other ads.

so that's what analysts are going to be looking at. the street will be look at. we're expecting 10% top line growth, which is really the epitome of growth, growth at a reasonable price. when you look at alphabet, it feels like one of the safest stories in megacap out there. the stocks have grown so large, could have an outsized impact if it does miss. as you said, expectations are high. and, remember, also, that alphabet does not guide. that's important to keep in mind. >> absolutely. i also wonder if there is anything to be said, any color on any of the various legal challenges they're facing or other big investments or something that could be beyond the advertising story. >> yeah. you know, moon shot project, right, the x division is interesting. this has been losing a lot of money for a lot of time. you wonder if there will be more discipline there. what is interesting there is headlines that came out of cruise. waymo owned by google is a major

competitor and that driver less car race and the fact that its main rival in san francisco has had its driverless operation sus suspended, i wonder if that's a chance for waymo to pull further ahead. we'll see if there is any commentary on the call. >> thanks so much. steve, microsoft, another consensus favorite, what are we expecting? >> yes, so, look, it is not necessarily going to be about selling a.i. tools, it is about talking about the demand for a.i. tools. so a week from today, microsoft is going to start selling co-pilot, a.i. assistant we have been talking about for so many months now. it goes on sale for $30 per user per month. there is hundreds of millions of potential users for this product. we haven't heard too much specifics from microsoft, though, on when to expect real sales. they said maybe sometime next year. but then again, they're launching it sooner than many expected. so, listen to the call for any kind of color commentary on how demand is backing up for the product when it launches next week.

as for the core business and looking back, azure cloud growth important for the company, we have seen it slip from that -- around 50% growth mark over two years ago, it slipped down, analysts expecting 26% growth and the real question about azure, mike, is whether or not that has bottomed out and we'll start seeing growth accelerate again for azure. and then finally, i'll point out for a good read on consumer electronic demand, look at windows revenue. that's the money microsoft makes every time a third party like lenovo or samsung sells a pc with windows license as a gauge of pc demand which we know has been cratering all year. >> absolutely. that's been certainly the soft spot. steve, we'll catch up with you soon once the numbers are out. julia, snap, i would imagine investors really have a little bit of skepticism toward this. what do you expect? >> snap shares did gain nearly 3% today into the close. the stock is down about 23% since the last earnings three

months ago. on concerns about two consecutive quarters of declining revenue. the company's earnings are expected to swing to a 4 cent per share loss from 8% share gain. so the key question here is when will snap forecast a turn around to its revenue growth? analysts are looking for 2.6% revenue growth in the fourth quarter. the other key issue is user engagement in light of the ongoing popularity of tiktok and others. going into earnings, 73% of analysts have a hold rating on the stock, 15% have the sell and 12% have a buy. mike? >> yeah, and, ulall i wonder about snap's pla in the industry. how are they -- have they been saying they might be able to gain more scale or prove their resilience in the face of all that. >> snap has been arguing it is a

different use case. it is where friends communicate with each other. now it is offering people this a.i. assistant, this a.i. tool that is integrated into that communication experience. but they also have that entertainment element for when you're waiting for your friend to respond to you. what snap says it is really about friends staying in touch, where as instagram might be following people you don't know at all or as well. and tiktok is more about pure entertainment. they argue they have a different use case and they're digging deep into that. >> and they hope room for everybody for now. julia, thank you. kate, visa has sort of been a bit of a proxy on overall consumer spending. how is that looking? >> we're talking about visa, a relative safe haven or it has been lately. we're expecting 10% revenue growth for the quarter. visa's fiscal year wrapped up. we'll get some new outlook from visa, the annual outlook in this

report today. you're going to get that glimpse into the health of the consumer and really set the bar high, delivering pretty strong growth, talked about the consumer being resilient. look for commentary by these on a similar vain talking about consumer trends, health of the consumer. amex gives us a preview, but the higher end customer. that consumer spending commentary, that's going to come through, guidance a little more of that color on the analyst call. >> and, kate, in addition to it just being obviously this huge play, this platform that just goes up and down with consumer activity, there is a debate going on about its long-term place, the payment networks in the whole industry. maybe there is less leverage to overall consumer spending than there used to be because of alternative ways of paying. and you've seen this boom/bust phase with challengers in fintech, but it is unclear how

much that had an impact. >> that's a great call. fed now, the idea that you could move money in a cheaper faster way throughout the banks, getting rid of the need for an intermediary like visa, you had a lot of those competitive challenges, also things like pricing pressure, there is that perennial conversation about fees and what the credit card networks are charging here. also regulatory discussions. visa had a major acquisition of plaid they had to call off because of doj pressures. they're hamstrung when it comes to growth through m&a. so we'll see. but absolutely more competition, more pricing pressure and the macro environment too that weighs on it. >> you wonder if they're sorry they weren't allowed tobuy plaid. we'll see how it goes. kate, thanks so much. appreciate it. 30 seconds still to close. we'll be going out with a three quarter percent gain.

nasdaq slightly outperforming. we have oil prices in retreat. down a couple of a percent today as bond yields -- we have the ten-year down to 4.82%. as we get ready for all the megacaps, growth stock earnings, that's going to do it for "closing bell." to "overtime" with morgan brennan and jon fortt. live from cnbc's live summit in new york. >> i'm morgan brennan. >> that is the score card on wall street. winners stay late. i'm jon fortt from cnbc's technology executive council summit in new york. >> and i'm morgan brennan at cnbc headquarters. it is a make or break hour for tech as microsoft, alphabet, texas instruments and snap get