what's cool about microsoft, you could go and they would let you be a product tester. t of people in high school would go to microsoft, and they would give you a free mouse. >> you met your cofounders in middle school. >> dylan smith, the first cofounder of box, has been our chief financial officer. we played trumpet together in middle school. neither of us were any good at that. in middle school and high school, i did things on the internet was josh, and later in high school is some kids. >> tell me have box began. >> 10 years ago, not a lot of innovation was happening. it was hard to do basic things. share files, access data from anywhere, collaborate and work with other people. i was in college at the time, and the idea was, what if you could have hard drives in the cloud where you put all your files, then access it from the internet and any device you want to work from? >> tell me about the early days, fondest memories. >> mark cuban was an angel investor in box. that was done by a cold e-mail we sent to mark in 2005. he sent us a $350,000 check to people he never m

what's cool about microsoft is that you can actually go and be a product tester. lot of people from high school would actually go to microsoft and test new products and they would give you a free mouse. >> you met your cofounders in middle school. tell me about that. >> the first cofounder of box, our chief financial officer, we actually played trumpet together in middle school. neither of us were good at that. throughout middle school and high school, i did a lot of stuff on the internet with jeff and later in high school. >> tell me how box began. >> if you go back about 10 years ago, not a lot of innovation happening. it was really hard to do basic things like, how do you share your files and access data from anywhere, and how do you collaborate and work with other people.ago, not a lot of innovan happening. i was in college at the time. what if you could have these sort of hard drives in the cloud that would let you put all your files in these hard drives and access it from the internet and the device you wanted to work from. >> tell me about those early days.

what's cool about microsoft, you could go and they would let you be a product tester. people in high school would go to microsoft, and they would give you a free mouse. >> you met your cofounders in middle school. >> dylan smith, the first cofounder of box, has been our chief financial officer. we played trumpet together in middle school. neither of us were any good at that. in middle school and high school, i did things on the internet was josh, and later in high school is some kids. >> tell me have box began. >> 10 years ago, not a lot of innovation was happening. it was hard to do basic things. share files, access data from anywhere, collaborate and work with other people. i was in college at the time and the idea was, what if you could have hard drives in the cloud where you put all your files, then access it from the internet and any device you want to work from? >> tell me about the early days, fondest memories. >> mark cuban was an angel investor in box. that was done by a cold e-mail we sent to mark in 2005. he sent us a $350,000 check to people he never met. t

no longer about the microsoft stack. this is about being across platform and pushing that harder than ever. i was at a large tomorrow software company here in san francisco and it was a start-up and they said, you know, we love what microsoft is doing for us. you would not hear that in silicon valley two years ago. i think microsoft is on the right track. it's going through a transition. but i think again, when you look at the things that they have now as a catalyst to help at this level, there are multiple things they can still pull out of their hat at this point. >> all right. we see how long this transition lasts. brent from ubs thanks so much. >> thank you. >> when we come back, keeping an eye on the markets. the dow has been down as much as 390 points. "shark tank's" kevin o'leary will give us his take when "squawk alley" continues on this tuesday. >>> microsoft starting off a wave of negative earnings which are heavily weighing on the markets. dow is down about 350 points right now. can apple turn things around when

microsoft. we did not get to talk about this yesterday, the headlines that microsoft makes on other products like thehol holo lens. >> i think they want to show that they are on a cutting edge of innovation. facebook got so much attention for their acquisition of oculist. they have success with things that don't interface with the average consumer or business user. the problem is they are facing a new kind of competition. they are not competing with the old world of technology. they are competing with amazon. they are happy to cut prices many times on a monthly or faster basis. microsoft 365, they are trying to go up against amazon. they are having a much lower margin. >> cori, stay with me. we're going to talk about melissa meyer. what will she do with that big $40 billion stake in alibaba? it's so much money to do so much with. you are looking at the streets of manhattan right now. the travel ban has been lifted. the subway and rail services will begin running again at 9:00. you can get to work in just under an hour. ♪ >> yahoo! ceo marissa mayer, she promises to use this occasion to talk about

what's cool about microsoft is that you can actually go and they let you be a product tester. so a lot of people in high school would actually go to microsoft and test out new products and then they would give you like a free mouse at the end of it. >> ok, you met your co-founders in middle school. tell me about that. >> so, dylan smith, kind of the first co-founder of box who's now our chief financial officer, we actually played trumpet together in middle school. neither of us were any good at that. and then throughout middle school and high school though, i did a lot of stuff on the internet with jeff and later in high school with sam ghods. >> tell me how box began. >> if you go back about ten years ago, not a lot of innovation was happening. so it was really, really hard to do basic things like, how do you share your files, how do you access your data from anywhere, how do you collaborate and work with other people? i was in college at the time. and the original idea was what if you could have these sort of hard drives in the cloud that would let you put all your files in t

get more out of it than you give to it. >> sure. >> oh gosh so much more. >> rose: left me talk about microsoftt microsoft for one third of your time. >> it's about 30% of my time. and you know, the new ceo is taking some new direction. and whatever help he asks for i'm there. >> rose: and you got a new windows 10 coming out. >> yes. they've got well they have an announcement this week. it ships later this year. >> rose: are you optimistic about it? are you excited about it. >> yes. i'm helping get the new strategy in place and there are bright people there full time. i'm enthused about this they stepped back they realized key trends they need to get ahead of. they have brilliant people. >> rose: is that primary mobile. >> well mobile cloud. machine learning. the daptb research work at microsoft has stayed very very strong. and so now mapping that into the office product changing quickly or the way you work across multiple devices changing quickly or being the leader on speech and vision giving you new ways of interacting with information. >> rose: we've been talking about women and poverty. th

there's too much hype about the pcs being dead. i think microsoft made a quiet successful transition to the cloud. it was disappointed last night, the street. >> yeah. and what happened last week, windows ten was being given away for free in terms of upgrades. we knew there was a problem. in terms of the cloud and the commercial space, the pc being weak, even though they're not going away, it still hit everyone hard because the reality was there. and, look, it hit intel. hewlett-packard. across-the-board, it was this rawness to hearing this news. >> we're not talking about what happened in asia too. they're licensing revenue was down. $10.7 billion down from 10.9. it's almost as if they're consolidating in some ways in asia. it's not as strong as it once was. >> and the cloud also. many people think the cloud is an additional product. the cloud is a replacement for getting that disk and loading that up. that's a very important distinction that a lot of investors don't really understand. charles: well, we have to admit, this stock has made an amazing

they might be spending it. >> we're also watching microsoft, for about ten minutes into the earnings . josh lipton is in san jose for us with the latest from the call. >> reporter: that call really just getting started here. satya nadella telling analysts how he saw microsoft's performance. let's take a listen to what he had to say. >> as expected the one time benefit of windows end of life xp refresh cycle has tailed off. we ran into unexpected issues. where there are execution issues we'll address them. where there are macro economic challenges we'll weather them. >> reporter: now nadella of course not surprising talking about some of the positives in the quarter cloud revenue growing 114%, sixth straight quarter of a gain. commercial side of the business as a whole 5% growth. that missed what the street wanted to see. hop back on this and bring you headlines as they cross. back to you. >> thanks very much. >> i was encouraged how decisive he was. not wishy washy. where there are problems we'll address them. he's done everything right so far. the stock is off 2.5% in the after hours

but no, i have to tell you, be i am excited about the new microsoft. i am.hink that, you know, they're just the whole culture is changing. the openness to partnering is changing. you never would see peopwalking around with android phones inside microsoft but now you do. people use what they want because microsoft is developing across all devices. i've been a gamer since i can remember and there is no larger platform for gaming than windows. so, you know, yeah, there's a reason that i'm bullish on windows. yeah. >> all right. duly noted. raul, ceo of unicorn, thanks so much for joining us. >> thank you. >>> let's send is to dominic chu for a market flash. >> we're just calling attention right now to a sharp move in shares of amazon.com. they are up near session highs right now, up by 5% on heavier than average volume. they've already traded about 4.2 million shares, about 4.15 million shares what it trades on a normal day over the course of the past three months. a lot of rumors working through the market right now but wanted to call your attention to the fac

that face book page >> pam: changing the way you will use your piece p ca what we've learned about microsoft windows 10. and what one lawmaker is proposing that could in the daily traffic jams on the rich man san rafael bridge. and are they a of duty? or an accident waiting happened? some shimmering sidewalks on the peninsula may be paved over. you can find a new frontier. there's nothing stopping you and a lot helping you. technology that's with you always. this is our promise. it's never been better to wander because wherever you go, you'll find us doing everything we can, so you can. >> pam: its seemed like come right idea spicing up monday sidewalks with glittering glass. but all that glitters is not gold. some people have complained. those peninsula pathways are sharp and unsafe. now multimillion dollar makeover is in the works. philippe de gaulle and his live in palo alto to outline the problem. >> reporter: the problem is that the decorative glass recently paid into the concrete here in california avenue is popping up when people walk on it some things causing some potential safety ha

the buzz about microsoft new web browser is expected later this year. spartan includes features letting users book mark pages with voice commands. and a share icon making it easier to post on social media. >> landon, thanks. >>> you can learn more about the proposed 2016 budget for county schools today. a press conference highlighting the operation budget. and that take place at 10:00 a.m. at the gate house administration center in falls church. a formal presentation to the fairfax county school board tonight at 7:00 p.m. at jackson middle school. >>> a joint announcement between prince george's county schools and microsoft may be delayed today. schools opening two hours because of the cold. microsoft is bringing in new technology to help students learn and prepare for college. that is part of the challenge through the connect ed initiative. >>> well the first snow stick challenge 20615 is now in the books. >> this means winter is really here. the winner of the best snow hat contest received an official pat collins snow stick. it came down to the final

. >> we've been talking about microsoft's prowess in the cloud. do you think we'll get any news on cloud? >> yes, definitely. cloud has been growing at double digit rates year over year for quite a while now. he figured out microsoft's focus in that area. i think the growth of the cloud is a big part of the reason they have gotten the valuation pop that it has. >> set a lot of those records, but hasn't been back above the 50-day since the beginning of the year. staying with tech, apple and yahoo set to announce their quarterly results on tuesday as the tech sector continues to outsupport the s&p. here to discuss more is richard peterson, senior director at s&p capital iq. you said this last time you were on, keep an yooi on tech. >> our earnings expert crunched the numbers for me. beginning of december, fourth quarter '14, were about a little under 8%, 7.8. now they're bumping up towards 10%. that in the context with the overall s&p has gone down from 6.6% now is deflated to about 4.1%. >> biggest component is apple. >> sure. by far. the apple numb

about this morning? stronger dollar. microsoft earnings -- complained about a stronger dollar.eting over the next few days. will they continue to tolerate a stronger dollar because that really is the only pressure for what has going on in the fx market right now. >> it used to be routed to say that devaluing your currency was the gold. now it seems politicians are happy to admit it. matteo renzi told people at davos that parity with the dollar is his dream. it seems like a big change of tune. >> the thing is the guys that are actually pushing it down, the guys who control monetary policy, it is the boot for them. they do not want to mention it. they always say the fx them exchange rate is not a target for policy, although it does impact price stability, so do the math. if you want a little would have prize stability or inflation the cheap way to do that is to push her currency down. the problem is the risk -- it can create the wrong kind of inflation. you make goods more incentive for your consumers. is that good? no. >> we haven't talked about currency deflation as all-time as

the issue is all of the competition, not just other start-ups, we're talking about microsoft, citrix.itors. >> with a lot of money behind them. i asked the ceo how he's going to differentiate himself for shareholders in the long run. here's what he said. >> we've always had competition in the process. what we do at box is we have the enterprise scaleability, the industry compliance, the regulatory capability and the salability for large enterprises but the solution in our daily lives. >> they've been able to narrow losses over the last nine months. about a year. they are doing much better, much more efficient. as for the current health, ratings rated them 23 out of 100. it's not good. when i asked him about this, this is what he said about the health right now. >> what you see from a financial profile standpoint. they're acquiring customers but built a base of 44,000 enterprises and businesses that will to know pay us if we're doing our job. >> the ceo aaron levee. lori: how old is he? >> 34 years old. they tweeted a congratulations to him. so did tim cook, the ceo of apple, tim cook

. >>> we now know a little more about microsoft's newest operating system. it's been two years since the last one wind dozeows 8 was unveiled. >> now we're getting a preview of upcoming windows 10. as jay gray tells us it comes with some surprises including price. >> today is a big day. >> reporter: microsoft prepares us for windows 10 earlier today. >> we have bigger hopes, higher aspirations for windows. >> reporter: the company announced its new operating system will be free for one year as an upgrade to users of windows 7, windows 8.1 and windows phone 8.1. the move is seen by some as an olive branch after the company's problematic transition to windows 8 in 2013. >> microsoft lost a lot of credibility in the consumer market by the way windows 8 was launched, even though quite honestly the operating system was quite good. >> reporter: microsoft says the new windows 10 will work saeklessly between devices. >> if i exit tablet mode i have regular windows with my full task bar right down here on the bottom. >> reporter: another change is the addition of the

[closing bell ringing] david: we didn't talk about microsoft. techs getting killed. are ringing on wall street. liz: let's see how stocks finished. dow industrials getting hurt, i wouldn't say crushed but down earlier 390 points, the worst percentage drop since 2011 of the of the russell 2000 down half a percent. what does that mean? that means the small caps don't have as much exposure to stronger u.s. dollar. david: that's a great point. that there are other bright spots in the mixed picture. we've seen a lot worse today. the question is what will we see from apple? we'll know in 30 minutes. we'll take you there. "after the bell" starts right now. liz: 15 and 3 -- 4 spike in the fear index. david: wow. z:

we will be talking about microsoft's results, that guidance that disappointed and finally, forget aboutking forward to apple, apple save the tech sector out after the bell today. we'll take a look at the preview coming up on "squawk alley." if you're running a business legalzoom has your back. over the last 10 years we've helped over one million business owners get started. visit us today for legal help you can count on to start and run your business. legalzoom. legal help is here. push your enterprise and you can move the world. ♪ ♪ but to get from the old way to the new you'll need the right it infrastructure. from a partner who knows how to make your enterprise more agile, borderless and secure. hp helps business move on all the possibilities of today. and stay ready for everything that is still to come. . >>> heading south on 8th avenue. what's this guy's deal? new jersey. otherwise just emergency vehicles. times square coming into view. by the way, it hasn't snowed a flake since i started walking. just letting everybody know. not not often do you get this opportunity to walk throug

microsoft declined to comment about that analysis. it's up to nodela to prove to his investors that gaming isn't just an important source of entertainment, but makes strategic and financial sense for microsoft's future. josh lipton in silicon valley. >>> investors were not impressed. we begin with the market focus. the industrial conglomerate's earnings were in line. but missed estimates. it gave a down beat profit and sales outlook citing the negative effect of the stronger dollar and pension discount rate headwinds. shares initially dropped after the bell. before the close stock fell 1%. texas instruments also failed to wow investors with its after-hours report. fourth-quarter results matched estimates and its guidance for the current quarter, also in line. shares were volatile after the release, before the close shares were off by just a penny to close at $55.05. d.r. horton saw the revenues jump as it delivered more homes in the first quarter. the home builders beat on both the top and bottom lines. >>> the big railroad norfolk sou

[closing bell ringing] david: we didn't talk about microsoft. techs getting killed. microsoft down almost 9%. but bells are ringing on wall street. liz: let's see how stocks finished. dow industrials getting hurt, i wouldn't say crushed but down earlier 390 points, the worst percentage drop since 2011 of the of the russell 2000 down half a percent. what does that mean? that means the small caps don't have as much exposure to stronger u.s. dollar. david: that's a great point. that there are other bright spots in the mixed picture. we've seen a lot worse today. the question is what will we see from apple? we'll know in 30 minutes. we'll take you there. "after the bell" starts right now. liz: 15 and 3 -- 4 spike in the fear index. david: wow. liz: extremely fearful and volatile day on wall street. one day does not entire trend make. jamie cox is with us, from harris financial group. he says now is the time to look overseas. drew hoarder, here to tell us where to invest during the day or a season of market weakness. phil flynn the price futures group at the cme. nicole w

microsoft. >> so you met your cofounders in middle school, tell me about that. our chief financial officer and be played trumpet together in middle school, neither of us were good. i did a lot on the internet with jeff. >> tell me how box began. ago,u go back 10 years there was not a lot of -- time,in college at the and the idea was that if you have these hard drives in the cloud where you put these files in the hard drives and you can access it from any device you want to work from. >> telling about the early days tell me about the early days. >> mark cuban was an early investor, and he sent a 350,000 dollars check to people he didn't met -- people he had met. this gave us the idea to pursue this full-time. freak out our parents by dropping out of college, then we convinced our other friends to drop out of college. we all settled together in berkeley and moved to a renovated garage. i am not sure that it was legal day workingent all on the software model, marketing, everything. it was kind of disgusting, really, akin to a sweatshop. >> you tweeted a picture of

the outage. >> microsoft second quarter profit fell 10% as they hurt demand for window's software and the company vugelled with the impact of the stronger dollar. revenue grew. talking abouts microsoft had pfizer procter & gamble and apple all reporting today. facebook out after the bell. thursday our attention will turn to alibaba reporting before the open. google amazon take a turn in the tech spotlight when they report later this week as well. >> meanwhile, you're also seeing some earnings being delayed because of the storm. coach is one of hem. they delayed the release of earnings today to thursday of course to the severe weather expected. they reported a day early while boston properties postponed results until later in the week. >> joining us from seattle is cole smead. thank you for getting up early with us. you're also missing out on the winter storm hitting the northeast right now but i want to start with weather. will this have financial or economic impact on the u.s.? are there any weather trades out there? we were talking about some of the retail names that could see a surge in sales given that more people are buying winltter clothes. what are your thoughts? >

knowing and moving -- and we have 45% of offices three knowing and moving to the cloud. >> what about microsoft5.5 billion per year is what the rate will be for cloud but half of your commercial licensing big businesses used to be. cloud is nowhere near where the this is unit is very it is going to double. you have xbox selling records. xbox one doing very well. even the lumia phones. surface pro 3 is outselling. the consumer is moving to office as well. office is now 365. an apple product. you do not have to how microsoft hardware to install microsoft software and that is a big change. this is a company that has not lost his entrepreneurial spot and is bringing in windows 10 and will be cheaper. there's one to be a tylenol voice activated assistance that will help salespeople at work asked -- and work asked what calls you have made and tablets. even the hologram. it is a company that is inspirational of what it is doing. at the moment, the big money spender is licensing and it is coming to an end. >> caroline hyde. >> the red army liberated auschwitz where nazis murdered 6 million jews who die

we have to watch the semiconductors like kla ten corps had a miserable today, but it's all about amazon, microsoftogle -- charles: we talked about that yesterday, hillary. i'm telling you, these internet names, google's coming on strong, amazon. i think people want to make money. i think they're okay with chasing because they're not making any money in the bank. >> maybe you've got the companies that give stuff away free also like box does -- [laughter] give it away for free. charles: we've heard that before. hey, everyone on wall street is bullish, yet every single day there are a lot more downgrades than upgrades. the conflicting message from wall street and what it means for you and your portfolio. me and the panel, we're going to break it down next because it must be driving you crazy and losing you money. we'll be back in three minutes to fix that. ♪ ♪ the lightest or nothing. the smartest or nothing. the quietest or nothing. the sleekest... ...sexiest, ...baddest, ...safest, ...tightest, ...quickest... ...harshest... ...or nothing. at mercedes-benz, we do things one way or we don't do them a

after the close it will be about microsoft and texas instruments.nt to update you on a story, of course we've been following the developments out of greece. we're learning that alexis will be sworn in as prime minister of greece today. that will come in at 9:00 a.m. eastern. that's according to the president's office. this of course after syriza the anti-austerity party won the greek election. syriza will be greece's first left wing government seen in europe since the second world war. but uncertainty around what syriza meaning the greek election means. that seems to be weighing on investor sentiment. let's talk with the founder and president -- a pleasure to have you on. we're looking at u.s. futures down across the board. does that happen to do with the greek election? the syriza party? investors trying to understand what the win means for europe? >> well, actually the uncertainty definitely starts to exit the conversation. at least we have a result but i think that the economy as a whole is probably more of the general reason why we're going to s

microsoft, google and emc have recognized that opportunity. they've aggressively gone after it from a model. >> which company does box have to worry about? there is microsoft, the tech giant offers storage like box, but also a product called share point, and this is a platform used by workers in many fortune 500 companies, allows them to organize and manage their content. you're also going to see pressure coming from emc. its product simplicity offers and allows workers to securely store and share and edit files. emc, one important difference there to take note of, allows workers to share content in the cloud, but if they have worries about security or compliance issues, they can also do that in their own data centers. despite all these rivals like microsoft and emc, box remains confident about its own strong competitive advantage. they'll argue their tools allowing workers to store and share and collaborate on content on the most simple, easy to use and secure and a lot of the companies do agree, box boasts 44,000 paying customers, everyone from general electric to eli lily and with this company going public, can they keep winning over t

about disney. they do not have the dollar headwinds that some of the others we listed like proctor and microsoft talked about. it is a fairly do midwest indicated company. this super cycle they have between marvel and lucas films and pixar. this is a long-term trade. when they reported in november, there was disappointing results out of the media. that is espn and advertising. i think we see a continuation of that. i want to look at a short-term trade. if it went back to october lows, i would be in the lower or middle 80s. given the market we are in. options look cheap to me. when the stock was 92. i bought 92 half and 87 half for $1.50. that is my max risk. i sold one at the fed at 60 cents. i can make 350 between 97 .50. look at how quickly the stock dropped in the afternoon today. this is the set up they think the stocks need a reset. disney can have it next week. >> you think it could see low 80s? >> that seems aggressive. if a stock is in a perfect uptrend, the only way a good thing can end is that it gets too hot or starts to go skplimp roll over. this has done neither it. hasn't gotten expensive

about disney. they do not have the dollar head winds that proctor and microsoft talked about in their reports last week. it's a fairly domesticated company here and this is also a company you do not want to step in front of. between marvel entertainment and pixar and stuff this is going to be a long-term trade. in november there was disappointing results out of the media and that's primarily espn and advertising. we see a continuation of that. i want a short-term trade. if this stock was back to the october lows i would be a buyer in the low 80s or mid 80s but looking at that earnings event right now options look cheap to me. when the stock was $92 today i bought the february 92 half, 87 half put spread. i told one of the 87.5 puts for 60 cents. i like that risk-reward given the market that we're in. look at how quickly this stock dropped in the afternoon today. this is the sort of set up that i think these stocks, some of them need a reset. >> carter, do you think it could ceelo 80s? that's $10 from here or so. >> we were talking about this earlier in the show if a stock is in the perfect up tren

about the weaker hands. obviously there is some danger if you are trading at the higher end of the multiple range in your space. >> in terms of nasdaq and technology's resilience. >> the issue, microsoft, apple, big names, only about 6% of the s&p, 26% of the nasdaq. it's not so much about their percentage in the s&p, it's going to break the confidence in the market. >> some will be stock specific stories. microsoft announcing windows 10. i thought it was interesting because the direction they need to go with their products they are going. i think it's going to be symptom specific. >> i want to add one thing. the top ten holding make up 50% of the weight of the qqq. equal to $2.5 trillion. that's more than the rest of the 90 in that index. a lot of those stocks have been doing a lot of the heavy lifting for the last year or sochl it's really going to be important what sort of guidance we get out of these stocks going forward and that will be the trend for q 1. >> you've got a trade specifically on ba ba. >> i want to look at aly baba, it's not the largest, the 4th largest. here is a company pretty new to us, publicly tradedentity, public in september. did report one quarter in early n

what do think was the best thing about this quarter for microsoft? >> the -- definitely in areas like cloud. cloud going up 114% and consumer cloud also growing and perhaps surface and lumia sales.' all the relative high pointsse were -- all of these were relative high points. >> what was the worst thing? >> windows oem revenue was dropping. it is a concerning sighn. -- sign. windows 10 is critical ended success is critical but people still want to see performance at a windows. >> i also noticed that the sales to existing cloud clients look like it was down. >> part of it is they were a victim of their own success. cloud is still a piece of overall revenue. that is -- in order for that to get taken to the next level, a lot of it is dependent on the windows 10 upgrade cycle and dependent on what we will see out of pc's in terms of this headwind that is forming and currency and some of the softness they talked about with china and japan in the conference call. they will be going through the transition but when it comes through, it will be the microsoft

you're in luck because next week it's make or break time for apple, google, microsoft and maybe even your money. and talk about change. well, not that strange. but the vix has been doing some funky stuff. all the traders are here in time square and it is make or make time for technology. what will it mean for the rally? an what are you expecting? >> i think the first week -- -- we've rallied out of this meeting here and things feel a little bit better. it put somewhat of a dire note on earnings here. those stocks are about $2 trillion in market cap. i do believe if we can get some sort of trend out of that, that's probably going to be reflective of the market in the next several weeks. >> especially compared to a lot of their peers were off the charts high. the downdraft we saw in the stock was kind of telling. obviously there is some denver if you are trading at the higher end of the multiple range in your space. >> in terms of nasdaq -- >> it's not so much about their percentage in the s&p, it's about what they're going to do for sentiment. >> microsoft announcing their windows 10 this week. the direction th

. >>> when we usually hear from bill gates, it's about the latest microsoft innovation. about making computers too smart.female vo: i actually have a whole lot of unused vacation days, but where am i gonna go? i just don't have the money to travel right now. i usually just go back home to see my parents so i can't exactly go globe-trotting. if i had friends to go with i'd go but i don't want to travel by myself. someday. male vo: there are no more excuses. find the hotel you want, and the flight you want, and we'll find the savings to get you there. >>> hollywood called it the rise of machines in "the terminator." now bill gates is saying if humans don't manage smart machines well those machines could become a threat to our very existence. gates isn't the only tech giant who shares that perspective. cnn's samuel burke joins us with more. >> some of the most intelligent and influential people of our time. stephen hawking was among the first, saying artificial intelligence may be the biggest event in human history and maybe the last. elon musk who co-founded paypal said it

i had a chance to talk with russell wilson about how the microsoft surface tablet is helping change thehe team draws plays. every time russell wilson does this, the nfl is watching and so is microsoft. this season, the nfl introduced digital the custom microsoft surface tablet on the sidelines. way up here in the catacombs are where cameras capture the images but the cameras are controlled by the nfl. the league takes the image. the team approves the image and 70, sends it to the server, and then shows up on the sidelines. years ago, black-and-white on a crummy printer. today, coaches and players are cheering on digital transformation. >> my rookie year, we used paper. with the old system, you only had two pictures. he's going to have him in a flat and cover him man-to-man. with this, you have a lot more views. >> but it's a bureaucratic process negotiated by the league and the techies. a guy from nfl films sits in the sidelines in this little booth. he has a computer where he manipulates the images, captures the images and press them on a laser printer and hands them onto the coaches.

microsoft executives talked about windows 10, the new version of its operating system. this is going to be this single operating system running across the pc, tablet, smartphones, and microsoft today is talking about the skumpl experience, the consumer features of windows 10. windows for pc are -- that's the personal digital assistant sort of microsoft answer to apple's siri. windows 10 on phones and tablets, it's going to have office. word, excel, power point will be included on phones and small tablets. microsoft also, though, taking the time to introduce a new hardware today, including virtual reality headsets that are going to be available, they say, in the windows 10 time frame. of course, in technology there's no hotter trend than virtual reality. facebook, sony, samsung. everybody hopping into this space. this is a critical test for the ceo. windows 10 needs to be a hit. remember, this is still the flagship product. it accounts for 25% of microsoft's revenue. even more profits. he did just start speaking, so i'll listen to the event where you have more headlines a

about all this hour? the possibilities of extraordinary improvements in the lives of people around the world. >> the memo i wrote for microsofts about this agent that will perfect your memory and remind you to do things at the right time. whenever you are using the -- the computer, it will help you do the input. software, there is still a lot that can be done there. hopefully that inspires microsoft to do things. earlier this week i spent a day with medical scientists. that was so amazing, because despite what you see in how many new drugs have come out the last three years, medical science is really on the verge of some very big breakthroughs. not just for the belt -- developing world diseases. the various ways of attacking cancer, stem cell, immunotherapy this period will be so incredible in terms of those medical advances. i am optimistic about a lot of areas, but those two i get a front seat on, the medical breakthroughs and these i.t. breakthroughs, really do generate a lot of things. the i.t. piece is the enabler. you have to go out to the great teachers and learn from them but it's wonderful that that is not anywhere n

about 80. that was because of microsoft's news last night and utx. t's been happening in those industries and foreign exchange. a lot more of that this morning with all of the dow components that have been under pressure. joe rattled off the list. caterpillar, pfizer procter & gamble pfizer. right now dow futures down 230 points. s&p off 17 nasdaq down 51. we'll talk a lot more about this this morning. when we come back biggest stock movers of the morning. they are about all losers as you might guess. we're watching a selloff here. "squawk box" will be right back with much more. the real storm this morning has to be the storm in the futures markets, not necessarily on the streets of manhattan. there's a difference when you trade with fidelity. one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade we looked for the best price and the trade went through. do the other guys guarantee that? didn't think so. open an account and find more of the expertise you need to be a better investor. e f