we've heard from amd and we've made that distinction between intel and amd, versus category leader, that is. who else is out there, you think, that maybe the expectations are too high from them we're going to hear that in the next few weeks in a warning or simply the results are going to be a big disappointment. >> so, names that i covered, the memory space is falling apart. you saw that from micron we haven't seen anything from western union yet. i think that's expected. samsung last night came out and gave a disappointing q3 preliminary number i think -- could very well have similar struggles. sticking with that theme, c gate same thing they talked to business rebounding in q4 i'm not sure that there's any q4 rebound. if anything, i think q4 and q1 are the troughs for semis and tech stocks. >> hey, matt, in terms of verticals, it seems like pcs now have fallen victim to what gaming already suffered from what does it mean for the quickest vertical recovery either in autos or about strengthened data center or something else >> so, data center, with enterprise, i'm concerned that you have

i can't blame amd. it was impossible to know how quickly the business would fall off when the home offices were built and people were returning to the office. that's the issue with this moment there is so much that is just plain unknowable where did all the workers go how could demand stop for some goods and be for others. why does it not dissuade spending and how could the labor market stay this strong when so many businesses are struggling we just don't know on days like today we know the fed will hit us with substantial number rate hikes so we're taking our medicine ahead of the illness and boy, does it taste horrible i don't expect an emergency rate hike but would be easy to justify. the inflation got a ton of ammunition and they're going to use it why don't we start the game plan with exactly this issue? we have talks from two major fed officials on monday and i've got to tell you, historically, he's been one of the most dubbish numbers but expect her and evans to out hawk each other if only to kee

in the specific case of amd, i think the weakness is really the pc market. it is kind of the hangover we had once we came out of covid. bc sales which used to be 2 milliona year from an industry perspective, went to 340 million, and now we are trying to get back to what used to be pre-covid levels, and that's what has hurt intel, a lot of memory companies, and now it's amd's turn it's not really a new data point. it's hurting different companies at different times on the positive side, what i will say is that their data center business is holding up well, up over 40% this year. we think they continue to take share from intel going into next year, and i think the valuation at mid teens for one of the leading compute franchises, i think remains compelling we have come to like the stock, we understand consumer weakness could be an over hang. >> pc issue is demand getting pulled forward by the pandemic am i right, which i often am. >> i think there was a lot of demand going forward and in the first half of the year as the industry was starting to come out of the

is down more than 5% now likely due to that amd revised guidance from the september quarter.arning of falling pc demand look, microsoft watchers, they knew this one was coming, microsoft said this summer pc demand began to deteriorate back in june. apple also hurting from that amd report last night on top of samsung's report, it's profit will fall significantly for the september quarter. apple is off more than 3% right now. meta down 4% following a verge report saying the company's metaverse product is full of bugs and it's own employees don't even use it. meta is expected to launch its first new headset since its metaverse pivot next week so the pressure is on for that one. just a few more to mention, sara, with the rest of big tech, amazon is down over 4% and alphabet the strongest of the group today down 2.5% following its pixel phone and smart watch launch yesterday. >> no shortage of catalysts hammering tech thank you. >>> take a look at this pot stocks, they lit up after president biden announced pardons to thousands of convicted -- thousands convicted of marijuana poss

>> we think so for amd.d, we had a pretty massive realignment of our estimates for q3 and in fact our earningsest pat for next year is down 20% and the stock is down 60% year-to-date so we think a lot of bad news is reflected and the way shares are trading, we take a look at valuation and it is trading at trough relative to the trough valuations over the last five years and to that one, amd, we think we've seen a lot of bad news and it is reflected in the way that the shares have traded. we think we have a little more to go potentially and then nvidia, the valuation hasn't coming in as much. we have an estimate cut through but uncertainty around that one. so it is a wait and see. from our perspective, amd we've had a clearing event and we think the stock is setting up well as we get into earnings season if a couple of weeks time. >> on the gardner data, down 19.5% for q3 that follows a 13% decline in q2. i think it was the steepest decline in the history since gardner has been tracking this data from your ex

so, that's why amd is so good.o some bad. >> amd is going to help us chop some wood if that's what you're talking about. as jim said, down in the premarket, cutting its sales forecast chip maker saying it's being hit by the larger-than-expected slump in pcs i think it was stacey of bernstein, that the hit in client revenue is admittedly a bit breath-taking. >> i don't think it's breath-taking. i like him but i think after micron, you had to assume anyone selling pcs going to be destroyed. nvidia is down, but the smh would be down. i think the lead times got long. they kept making them and then there are no -- there's not a lot of new pcs bought. this is another post-covid situation. and lisa su said that gaming was strong people are not ignoring that absolutely strong in the datacenter people are ignoring that what they're focused on is the same thing that happened to micron if you look at micron, when we buried sanjay, we buried him at 48 and the stocks went to 54 this is a clearing event it is -- i don't call it

the semiconductor etf down about 5% check out its two worst performers, amd falling more than 10%, nowevel since july of 2020, marvel is off by about 9% we'll get into what's driving the drop, next "the exchange" is back in two. rvel good luck. td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back. another busy day? td ameritrade. of course - you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want - your team, ours or a mix of both. with the nation's largest ip converged network. from the most innovative company. bring on today with comcast business. po

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amd expects sales of $5.6 billion. amd says the shortfall is due to weaker than expected market demand and inventory correction actions. shares down 4.76%. the news hit hard by nvidia and intel which is all trading lower in the pre-market action. >>> shares of draft kings popping on a report it is close to signing a partnership w with espn. espn is seeking $3 billion over a set time period to lead to a sports book rebranding itself with the espn name however, our contessa brewer says the source says there is no truth to the report. stock up 8% in pre-market. >>> retail shares of levi is falling short of estimates the company reducing annual forecast for revenue due to what it calls significant incremental headwinds from stronger u.s. dollar as well as macroeconomics conditions and supply chain disruption it could be a trend over the coming weeks. >>> still on deck. talk about lighting up a sector. what president biden just said that is sending pot stocks surging. >> announcer: today's big number $81 billion. that was t

you saw the price reaction, amd's quarter is better.goes higher >> they like the cost discipline on intel tim? >> i'll fade it. i think you have a dynamic where we have preliminary numbers, we know the client segment is going to be 16 or so percent weaker. i think it is something you continue to see. 25% over the last three months i think semis go lower. >> starbucks reporting thursday afternoon, steve what's your take >> you got to fade this one. there is going to be a head winds from the headlines that we're seeing that's going to be a head wind for the stock. it is a risk for the stock i was constructive on the stock. it looked great bouncing off that may level, ran into a brick wall in september. the level that it ran into, sarah, in september, was the january 2020 high. it has since rolled over zero momentum in the name, it is not up for the month the month has been great for a lot of stocks, not for starbucks. fade it. >> why what is the problem here china? didn't apple reassure us on that front today? >> i don't know what the maj

it was really bad for amd.hey sold samsung a big -- a bit short, they make memory but they are also the world's biggest chipmaker. it is bad, it is way worse than we thought. recalibrating people site dictations, no longer looking for the bottom, they are back to worrying about how bad it gets [no audio] . >> you have the white house adding new restrictions on china's access to u.s. chip technology is that making it worse here? >> absolutely, that is an ongoing concern. this is not one isolated incident this is an incremental set of intent -- intensification of dispute between the two world's largest economies. if you are an investor you have to think what will happen next. the trend in security-related, national security-related measures is to intensify. that will place greater restrictions on chipmakers that want to do business in china. >> talk a little more about what is behind the rules from washington and how you expect them to evolve. >> to give you an example, we had a story out earlier this week which,

even though these names are getting hit, there seems to be a consensus that a company like amd is in better fighting shape than intel. mandeep: amd despite taking down guidance last night will still grow 40% this year based on our calculations. next year they will outgrow the overall semiconductor market growth. intel on the other hand, they will be facing declining sales this year and probably they will be flatish next year. they are losing share at this point in time. the big pockets of growth remain a data center, cloud, and auto. those are the main areas where chipmakers now are seeing a lot of growth. that could change. i think there will be a phase where you could see a capex slow down on the loud side, but we have not seen that -- the cloud side, but we have not seen that yet. kriti: now the geopolitical part. from the margins perspective, american-based names are not seeing as much as samsung, which overnight reported a 32% decline in operation margins. factor in geopolitics, export restrictions, maybe one day import restrictions as we talk about manufacturing capacity in thi

m matt, i want to start with amd because lots of people thought the pc market was slowing down, there was inventory stacking up. pat gelsner said that a few months ago a lot of people surprised by kit amd, it's now at levels where it was right before the pandemic hit. what should investors take away from that? >> anyway, first of all, john, thank you for having me on i really appreciate it yeah, it was, it was a shock to the system on thursday night not the direction, necessarily as youpoint out, the pc market has been weakening we pulled in a ton of demand, work from home during covid, and then you had some enterprise refresh on the back of that as people started to return to the office, and now a huge part of the market is upgraded, and we're now on the backside of that, but i think the magnitude of how quickly this is happening is what really surprised folks i think the amd pc revenue was down 50% from the june quarter to the september quarter, and we knew things were weakening, but that was quite a shock to the system, and i think it's going to be felt across the board. we have se

we've seen that drop dramatically it's losing market share to amd when it comes to data centers.been product launch delays, and you have the mobile ipo that just happened during these market conditions, you would think that the company needs a cash injection, even though the ceo denied that earlier this week, but why go ahead and partner with brookfield asset management to help fund your arizona fab lastly, quite severely, you had looming layoffs that the company is expected to announce either today or in the coming days. i did notice, too, the company has a dividend yield of over 5%, much more than all -- pretty much all of the other chipmakers out there. and there hasn't been a cut to that dividend since 2000 >> all right, kristina, thanks very much. courtney, what do you think of intel? intel in my opinion has far too many headwinds that are still ahead of them, unfortunately we've already seen some competition with amd and nvidia, that they're losing share value, too. and i think that's likely going to continue as we move forward here i think the biggest issue for them is the

partially amd, it's really going to be this language around a.i. and super computing so, for example, we know leading he edge nvidia trading equipment are going to be banned, but what about inference for a.i., for example? this could take another call it quarter of sales off the table here so there are some risks. this may not be completely deri derisked. >>> are there certainly sectors you take a look at that had been huge growth sectors that the industry will no longer sell into i'm thinking of comments of the chairman of xpang, where he said it would hurt the a ton mum driving. that had been a big growth sector if we cut that off in terms of exports to china, is that meaningful >> that is meaningful for many of these players there are internal efforts to the a.i. side beyond hardway china is incredibly good at a.i. software, so they may be able to use those algorithms on internal china-made chips, but chips, for example, from companies like nvidia, even qualcomm, could be at risk here eventually if they were to expand that and impact the ev and

amd releasing and we will get the full numbers.o got negative news with warning signs that a tech downturn may be longer effects on the economy than feared. it is joanne feeney at advisors capitol management. how should we read this story? what is your perspective? joanne: we had a hit when nvidia had the negative outlook sometime ago. we are seeing the slowdown on the consumer side. that could spread to corporate and that maybe what is being read into amd's miss the reported last night. we know the consumer spent a lot and corporations spent a lot when they had to get people working at home. we have been looking for that decline. what does this say about the other side of the businesses, both for nvidia and the data center expansion and that sort of thing? there is concern that could be slowing. there is a concern that companies could put off some investments. kriti: what does it mean for the stock itself, this was the ultimate macro had and you bought commodities and chip stocks and were set for the supply chain crunch story. tho

dashed, actually ended the week high solidly higher i wonder how that sets us up into earnings season amd warning overshadowing us, terrible action there today and fedex as well? >> i think -- a few things shorts squeezed, and why you see exasperating moves as we saw earlier in the week, and then going into earnings. the reason we see knee jerk moves, there's still an underlying feeling the fed has a credibility problem. take me. last time i got chastised for calling back someone onset, learned my lesson. don't do it get. fed chastised enough theyget i now and being extremely transparent what they are going to do. they continue to be data driven, their approach well signaled yet you still seize these bucks to the trend in the market. i think this earnings season you might actually start to see a little bit of the read-through, or the trickle-down effect what the fed has been doing now the posture is starting to change i think, yes, perhaps up a percent, a purse and a half. weak volatility where the focus should be not the absolute number from mondayants it's that time again and could be m

check out amd plunging to a 50-year low today.he delivered disappointing preliminary results for the third quarter, saying they expect revenues to fall short. investors done think this will be an isolated scenario. semiconductor stocks also fell these chapmakers' pain could be your gain. mike is here to show you how to turn a choppy outlook into smooth sailing for your port portfolio. captain mike, take it away. >> captain, i like that. i'll have to share that with some other people. the semis as a group are down about 40% since their highs earlier this year. significant apply more even than the s&p declined if you think that's so bad it's good, you might then take a look at all all of these companies are looking relative to their trailing and their originally forecasted earnings. if we look back about 20 years, the semiconductor on a group are trading pretty close to their cheapest valuations. one of the things i would point out, and i think it's important for them to remember this, cyclical businesses look cheapest from things t

and that's essentially the news we got out of amd.nd that's what we're seeing priced into some of these other stocks that said it's exceptionally challenging to try to press shorts when you're looking at a group of stocks already down 40%. so how do you do that? in this case i was looking out to december, andiest looking at a 185-55 put spread. when i i was looking at that, that's a $30 wide put spread that cost about $7.63. that's about 4% of the current price of smh as a way to make a bearish bet. we are in a situation where we certainly could see for the dips i don't think we're going to resume bull market anytime soon personally, but if we do even get a sharp bear market rally, which is certainly a significant possibility in every bear market, and we've already seen it several times in this one, you want to limit your rick. and i think by risking just 4% of the current etf share price that's a way you can do this >> how does smh look to you, carter >> they're going to get worse. let's look at three charts they're all the same time

amd the leadership one down 5 and two-thirds percent.olding hunter biden accountable, new leaked report shows federal prosecutors have enough evidence to charge the president's son with tax crimes. former georgia congressman doug collins is here to weigh in on that and kanye west goes all out on his clintons relationship with his -- with him kardashian and his support for president trump. it is making a buzz this morning. we will bring you to you next. ♪ ♪ ♪ ♪ ♪ maria: welcome back, we want to show you breaking news this morning, the migrant buses continue and we have a first of the morning just pulling up at port authority this morning as you see the illegal migrants getting off of the bus this bus sent from texas and governor greg abbott to port authority, new york city, 50 people typically on these buses and we will tell you where they are going as we learn more about this bus full of migrants from texas. the fbi may finally be closing in on charges against hunter biden as former justice department official says outcome may be eminent

amd is getting absolutely crushed and yeah the miss was bad but worth 12% in the stock?ne of the arguments where a lot of it is in the stock so we buy it today on the close here. tesla has been dropping like a rock, sinking like a stone all week. that company is still firing on all cylinders, pun intended. i think it's great and then krv i should have asked you ahead of time if that was okay to say but let's just go with it >> i love it. >> utilities are still hanging in there, awesome, good, and also, charles, schlumberger, that's a name i gave you about a month ago been really hitting hard lately that's a good area to hedge out that risk that krv talked about the energy side too just in case energy doesn't settle down here. charles: i got a thing, every portfolio has to have exposure to the energy side. for a number of reasons no doubt about that, but you know, it's a dangerous game but that's how you make the big money, when everyone else is selling, and making creating those opportunities. krv, katherine, scott, thank you both very much appreciate it all right folks,

that's the call from a veteran market watcher what's at stake if the central bank gets it wrong amd and marriott scheduled to report earnings, which are buys and sells ahead of results before the break the consumer related stocks hitting new 52-week highs in today's session including campbell soup, general mills and hershey. "power lunch" is back in two at adp, we use data-driven insights to design hr solutions to provide flexible pay options and greater workforce visibility today, so you can have more success tomorrow. ♪ one thing leads to another, yeah, yeah ♪ >>> a key inflation gauge that fed follows closely shows inflation was elevated what does that mean for the fed, and its statement when it meets next let's talk about this and more with cnbc's senior analyst and commentator ron insana welcome. >> thank you. >> you are welcome. >> appreciate that. >> always glad to have you here. you're not expecting the fed to pause on tuesday. >> no. >> are you expecting rhetorical change or what >> i wrote this piece to rebut one notion going around yesterday that the fed would include pivotin

down roughly the same for the year. 56% for nvidia 52% for amd. >> amd's multiple is back to 15. and nvidia, a faster grower, admittedly, you've got one that's double that it is actually 37. so one is cheaper than the other. the one that's cheapest, there's been no sign of any deterioration by advanced micro. i wonder what you think of a chance that there could be a come back for intel. >> are you asking me that question so i can turn around and ask you that question, jim >> yes, exactly. >> that's what i thought >> it was a rhetorical question. someone this weekend asked me, do you and david get along >> i get that all the time do you really like each other? >> i have seen a lot of an tip think. >> it's love >> you're ali mcgraw and he's ryan o'neal. >> amazing book, too >> wait. i want to stop for one second on intel. you did answer it in a way did i miss it? was there a moment when amd market cap passed that of intel, or are they neck to neck same as i did with verizon, t-mobile i mean, the idea that intel would have a smaller market value, or doesn't right now. it's $2 billio

. >> for earnings season ahead of us, warnings from the likes of fedex, micron, amd amd was interesting. seen as an industry leader taking market share. what are some companies out there or sectors that you think will disappoint but haven't yet warned the market? what is their effect going to be >> probably more of the same i think the market is on to it now. consumer discretionary and technology are down the most because those are the areas that we identified overearning the most in the paparazzi, in the lockdowns. so that's where the downside is the greatest for the operating leverage is most severe. the good news is the markets on to it, priced a lot of that, but we think there is more to go i think what we are trying to do is we are trying to find individual companies or sectors where they can defend earnings or trying to find companies where they have already cut the numbers three or four times and that's real, that's a reality check and they have the numbers down there on the positive side, what we like, we'd say it's been health care, it's been companies that have high operationa

we saw evidence of the last quarter with respect to amd and intel. they made their first rounds of cuts. when we thought it was over there was another round of cuts by micron as well as amd. later on with the geopolitical risk, that's also waiting. emily: would you say a downturn and chips is a leading or lagging indicator for the rest of the technology industry? woo: if we look at pre-covid the chipmakers were an early cycle and has always been an early cycle industry. it was the first one to come down, once covid hit. once we figured out covid was not going to be as bad as we initially thought. they were the first wants to -- ones to come back up from a valuation perspective. it's going to take a while for estimates to catch up. i know there were a couple of rounds of cuts on the chip sector already. even at 14 times, it's still not a trough multiple going back to 2018. it's still 17% premium to trough multiple. there may be another round of earnings to reflect 2023 expectations. emily: which companies are in the worst positions based on which chip

each on friday when we saw amd go lower, this is on news we already knew, that pc sales were slowingyes, i think we're starting to see -- maybe starting to get priced in here starting to get tracked evaluations. they are trading lower on news we already now about can we continue to see that? i don't know what that news would be in all honesty so that makes me think yes, that's be a opportunity and would i have said that last week and we keep having these lower. >> amd hung in there pretty well started off the day very badly, and then it seemed, to you know, find some foot, and it sort of makes me wonder, all right, i mean, this is a lot cheaper than nvidia. >> right. >> and so if i -- would you rather. >> you didn't ask. >> but i'll permit that. >> okay, thank you i did see that interview today though he was very good. >> yeah. >> yes, and i thought oh, i know her. anyway, i would be long amd. >> okay. >> coming up, dear jerome, our kathy wood penning out a letter to jerome saying all the mistakes that they have made and throughout his panic heritage month we're celebrating our own.

in them i can make a case that there will come a time i owned amd, nvidia. >> nvidia and amd, almostdentical performance. >> people worried about intel's dividend you know gelsinger has pretty assured that they're fine but they have to spend a lot of money of capex but you know who keeps coming back as someone who was too bullish? enrique from hbq and apparently, i think felt that things were going to stay strong for a long time yields four. i wouldn't touch it. >> i want to come back to a couple of things kraft heinz is up over 4%. you mentioned at the board, when we did the "mad dash," because downgrade of p&g but goldman saying kraft heinz >> they're at least risky. >> have not been a bad performer this year, only down 6.5%. and we do have cable up a bit, which is not saying much, given the carnage in cable moffett nathan son out this morning, saying, will there be a price war? maybe. weight of cost of capital has gone up for so many of these companies. but their targets are far above where many of these stocks are, at least in the case of charter and our parent company, comcast.

they are continuing to get worse as we move into year end that's what happened with amd.r the space people are worried numbers in general need to come down and the valuations are starting to reflect that you need to know when the bottom is before people can buy actually, stocks in that sense are okay if that's the last cut. i don't know that we're there for a wide swath of the space. >> there's your headline don't think we're there yet. thank you very much from bernstein. less than two minutes to go as the dow is now negative and falling 90 points. we've lost it here. >> about a fourth straight down day after the two-day rally last week it's negative under the surface although not dramatically, three to four to one downside to upside volume, more than 90s on friday take a look at the small versus large. small cap 600 index relative to the top 50, the biggest stocks in the index, year to date, shows you widespread the small caps are to the near the recent lows. either the september or june lows a little bit above that. some distinguishing there. they've taken their medicin

when i build positions because i'm not a trader i'm really more of an investor >> you're looking at amd nvidia. i haven't added to it yet just because i'm look at it technically and i feel this year i don't need to be a hero when i'm adding to a position i'm going to wait to hear. i think with lisa su i want to bet on the jockey there. they're phenomenal, you know, ceos the charts on both still look so bad that i'm just going to wait buzz they continue to make just like the s&p those lower highs and lower lows i'm going to wait until i think they move lower after earnings, but at some point in the next quarter or so i look to add amd because i do think there's structural tailwinds on both companies. >> you've got nvidia and qualcomm, too. you feel better about them here or not >> i think to josh's point these names, again, slaughtered all year up until last week obviously we saw it run this week but they had some down north of 40% inventory is going to continue to be a problem, but i think these are just oversold conditions they got a nice bounce this week it makes sense but for me i'm

you got target, nike, amd, fedex, these are note fly-by-nights.hese are masterful companies that have been managed so well throughout the years and they're not just missing numbers, they're missing numbers by gargantuan amounts of numbers. charles: right. >> this gives me pause for companies moving forward. by the way i forgot to mention nvidia, walmart. i'm expecting rough going from the earnings report. not just the report. guidance really worries me w oil prices going up, that is another hook that was unexpected because of opec. charles: there is no doubt we'll probably get fewer, less guidance than normal and probably more warnings. >> yep. charles: so the medicine for all of this has been central banks. i want folks to look at this. developed nations, central banks around the country, around the world, rather, this is how many basis points they have hiked rates, 1525 basis points. let me go back to you, gary, at some point you have never seen anything like this! it feels panicky. yes i know they created this mess how much of this mark cut rou

amd down 50% off those highs. we started talking about different parts of the semi conductor space because they are not all the same because you get into semi already trading 12 or 13 times versus its historical 12 to 18 times. somewhere, you start to look at the second half of next year, that is what the morgan stanley notes said is where you should be buying these stocks somewhere in the next 3 to 6 months. >> makes sense. think about it, this is a $155 stock but not that that matters, but the point is it is obviously more than cut in half. you start to get to levels where even with this guide, you will start talking about amd for the first time in a long time, reasonable on valuation. what concerns me here, and hear from a lot of different people, you have not heard anything from apple and please don't add me on twitter, but you wonder if it is just a matter of time before the signs/into apple, their demand and what they might say going forward but just throwing it out there to create a conversation. >> i think

. >> they were up until recently, and this is more of a pc problem because amd makes chips for thoseting weaker sales, supply chain issues here, and that means they will make less sales, less money per-chip. amd says the sales are short about $1.2 billion, plus or minus $200 million on that estimate but pc's aren't selling well compared to when people were locked at home. remember when you had to refurbish your home office because covid meant you weren't going into the office. what i find surprising is it's dragging down the entire chip space, because i don't think nvidia makes that many chips for pc's more of a gaming graphics chipmaker, but it's interesting that when i look through the actual warning itself from amd, they said gaming was still pretty strong and the rest of their business. stuart: advanced micro devices when it's down 6.5% like that you know somethings going on. >> i don't know why you're obsessed with the two year treasury yield, you can get 4% in six months so put six months of your money in the u.s. government. stuart: that's a very good idea. i've changed my min

>> i think the amd as well as others are a precursor to what we may see for the earnings season. i think the risk here is not on the consumer side. the consumer side is on the d.c. side, that has already been factored in. the big risk going through is is this going to enterprise -- influence of the enterprise side on the chip side? if we look at the data, they are more in line with anything else. the concern is it will affect more chipmakers. emily: is the chip downturn far from over or is it just starting? >> it could be. the only about price spending going forward, there is a risk of downward earnings to reflect the weakness on the enterprise side of the ledger. i do not have a good crystal ball on where the sector will bottom out. i think we will have to start seeing where the enterprise side is going to flesh out as well. emily: the new round of american curb on china's access to u.s. technology. how could that potentially make a bad situation worse and how does that play out over the longer term? >> it will be a longer-term impact. the curves on the ai side is not anything n

rishaad: you look at amd and it is horrible.not put it all down on the thirst -- doorstep on liking pc sales. tim: it's a flagging economy. it's as simple as that. we've had this a chip shortage two years ago about a year ago, we are looking at a lag in memory. we've got rising interest rates and inflation is struggling to get under control and a probable recession. all of these things mean in the next two years people are not rushing out to buy the next phone, the next server, the next playstation, all the things we buy without -- our hard earned cash. the chipmakers are bearing the brunt of it. that a great growth period, but now the penny is dropping. yvonne: tell us more about the chips act we heard from president biden and his team. obviously, we have been telegraphing it for some time, what he think the market has reacted so negatively -- why do you think the market has reacted so negatively? tim: it's also much the chips act does the restriction that they're placing on china. i don't think that will be as impactful on a l

amd is facing slightly weaker demand of pc's in the inventories and the supply chains.ly, greece, poland, and belgium have opposed limiting the cap of prices at europe's biggest trading hub. eu leaders are continuing to discuss the measures after the summit in prague. several countries have previously supported a cap. that is your bloomberg business flash. francine: thank you. coming up, we are joined by the new co-owner of the chelsea football club to discuss his venture into luxury hotels. that is coming up shortly and this is bloomberg. ♪ francine: welcome back to the open. 30 minutes into european trading day. fed officials hammer home the message that tightening will continue. the white house scrambles to respond to opec's dramatic output cost -- cut. plus, chipping away. samsung profits sink by one third after a breathtaking drop in demand. a bit of subdued activities in the markets because the focus is on what we are seeing in the u.s. we are seeing pressure not only on the stocks in europe but on the european stoxx 600 down zero point 8% but u.s. futures also de

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you have curtailing amd sales and demand in the near term. the long-term, nvidia saying it is not going to hurt them. right now, we have to keep in mind that some ai chips into china are fairly low and there is access to some chips that china can gain from amd to bypass some sanctions. tom: it was fascinating to hear from a startup in china and how it is going to impact them potentially. thank you for that analysis, bloomberg intelligence senior analyst on semi conductors and china. coming up, slow down concerns. we will discuss with citi next. this is bloomberg. ♪ millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service. and now, introducing, the best price for two lines of unlimited. just $30 per line. there are millions of happy campers out there. and this is the perfect time to join them... add a line to your existing plan, or see for yourself how easy it is to save by talking to our helpful switch squad at your loca

most directly amd. >> yes, amd, which has by the way, been taking market share in certain segments fromone last week so inventory, a build up of inventory seems to be the name of the game. the question is going to be whether this is an early indicator of recession or global economic slowdown or whether this is kind of a reversion to the mean to pre pandemic levels with the pull forward we saw with some of these devices >> then you have the interesting phenomenon of a lot of these companies investing heavily. >> yes very capital intensive like space >> like this what we do here. and you've got a little bit of the tail wind of that $50 billion, the chips act we've got more than one hour left in the trading day. it's kind of the witching hour, i suppose. stocks have been trading in a range a little up, a rilittle down look at the difference s&p 500, just flat as you can get. nasdaq higher by nine points so a lot of action beneath the waves, but the waves right now sort of calm >> the waves are calm. energy is the best performing sector in the s&p. consumer staples are right behind it and p

nutrient formula recommended by the national eye institute to help reduce the risk of moderate to advanced amdgression. "preservision is backed by 20 years of clinical studies" "and its from the eye experts at bausch and lomb" so, ask your doctor about adding preservision. and fill in a missing piece of your plan. like i did with preservision" it was my intention. my intention to run again. >> doctor biden is for it. >> yes, president. >> doctor biden thinks, my wife think that we are doing something very important.aw and thatay i should not walk awy from it.pear >> that was president biden appearing to zone out this week. answering questions about hisei cognitive ability. the latest fox news powerca rankings show republicans capturing 232 seats in thehous house.o more than enough to secure the majority. joining me right now is claudia. congresswoman, it is good to seh you this morning. thank you very much for being here. what is your reaction to joeth biden in that interview. and the impact of this. r >> this is reallemy sad, but he reminds me of a wax figure. he delivers talking points that

we heard from samsung and amd last week. walk us through how those things don't square up or do? we're trying to balance the supply chain to the demand environment. and what we start to see is demand crunch starting to happen on the consumer side. i think we knew that going in, and what we're starting to see from the preannouncement and the negative outlook is that it has extended to enterprise. now we have this global supply situation and you start to see pricing come down as well as you can see chips, other chips come down. some of the inflationary drivers may start to ease in the near term. >> certainly something we will keep an eye on. we thank you both as always. you can listen to joe every day on his radio program, coming up at 5:00 p.m. eastern on bloomberg radio. we are seeing some movement, the s&p 500 bouncing off session lows and spiking higher. at the same time you see a little bit of a fade in the bloomberg dollar index. something you want to keep an eye on despite the bond market being closed. we will keep you apprised of all the movements. for now, this is bloomber

amd reports. why? they preannounced the numbers. i want to know if the intel ceo was right when he talked about how he was destroying competition around him, taking share and didn't mention amd by name no longer as nice as he used to be, which is why i like him more everything wednesday will be drowned out by the fed which is too bad because we some very attractive companies reporting human that, my health care provider and cvs which is going down they have good numbers cvs pulled back harshly. it's considered a covid play human that is a post covid darling. the semis may need to em ploid -- implode if they continue and qualcomm but given how fact they have fallen, i wouldn't be surprised -- this will shock you. i wouldn't be surprised if you got a guidance cut and the stock went up $5.38. i like to be precise thursday starbucks reports and it could be a surprise to the upside because it's one of the few companies in the world that's been able to thrive in china during the lockdown phase, made in china, for china numbers are strong

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you've got amd, as we just showed on the screen, estee lauder, intercontinental exchange, mondelez what >> estee lauder, actually. one of the things that we -- we don't have a lot of discretionary exposure, scott. and this is a prestige brand that we think has the opportunity to continue to grow its market share and margin over time, even though it is valued at, you know, a pretty pricey p\e. the problem here is that they really are relying on china. and the covid restrictions have been an overhang so getting some perspective on how much they continue to see that weighing on their business next year will be important. >> let's take a quick break, come back, do final trades on the other side (desert wind blowing) sand. (engine revving) (cheering) we like sand, don't we? between the toes and such, and, in other places. (glass jar breaks) (shoes tapping on floor) expedia tracks the price of your flight, and lets you know when it's best to book. ♪♪ so you can go see all the sandiest sand. and never wonder if you booked at the right time. because, you did. ♪♪ good luck. td ameritrade, this i

>> the stock of the day is amd. amd after the bell yesterday, they posted a huge warning. top line, bottom line margin. this morning had to downgrade at barclays, raymond james, benny hannah and wells fargo. that's the beginning of the list and the thing right now is if you miss, you'll pay a huge, heavy price for it and i hope people watching this show there's people with cash making critical decisions and this is the quarter where you're going to get a chance to sift through all the numbers out there and let management lay it out and running into a guy positively and it's going to be a road map into what you might want to own. maria: do you want to avoid the multinationals charles because the dollar has been on such fire over the last several months? the dollar has got to be an issue for earnings. >> dollar is a huge issue particularly for technology companies warning anything else and materials and it was interesting, some of the consumers staples with that kind of exposure and they're seeing something of the safe haven if you will and you can raise the price of cheerio

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>> the -- that's the -- amd and intel are on the way out >> okay.s sells me on the second one >> is that just last-in, first-out? >> that's a statement on you you believe the last thing you heard. >> you just agreed with becky on that >> the last thing he heard >> yeah -- >> that's the joke >> i'm easy. you're going to do my request on the most important on the other hand at all? >> you got me. i'll think about that one. >> to be or not to be. >> i'm cribbing off of shakespeare this whole idea. hamlet did it first. maybe halloween i'll come in here dressed as hamlet -- >> he took his time. and then he screwed everything up >> yeah. >> people died >> just don't bring my uncle in here >> scary >> john, thank you. >>> coming up, we got a top imf official who is going to be joining us live and it's perfect timing for that because we are watching what's been happening with the british pound right now. it's up by 1 1/3%. our colleagues reporting that uk officials are working on a u-turn for liz truss's tax cut plan the pound is now up by about 1.5% i just

right now the naz sdaq a quarter lows we'll look ahead to amd and qualcomm later this week finally, the street going opposite directions on roku and paramount today. julia will break down some of the sell calls we got earlier this morning, jon. >> carl, let's start with the market set upfor the week ahead. a lot of semiconductor names headlines this week's earnings, as you mentioned let's bring in mike santoli who has more on how we're trading. hey, mike. >> hey, jon. well, in the past week or so we're trading without much mercy for any companies that disappoint, as we have seen pretty starkly with net microsoft, amazon, some of those you mentioned. but it's really been a story of discernment, too, between these companies that are disappointing and still do have two expensive valuations for not being reliable and the rest of them here you have apple trading on year to date basis right in line with what's this it's not part of the nasdaq. it's the low volatility etf, the stocks that have demonstrated the lowest volatility of all the index members. really the stability premium that's been

we're going to get amd midweek we'll learn some more. >> i'll have lisa on, and i think that when youo back over intel, intel was a surprise last week, but i'm putting intel into the not as -- i don't know what the acronym would be here. not as horrible as we thought, so therefore it's okay maybe we can come up with an acronym. i don't have one on the tip of my tongue. >> that's a bit of a mouthful, that one >> meantime, david, the meme people are back. isn't that just great? >> what are they back on >> they're moving bed bath based on nothing, gamestop >> the old names >> and amc in particular based on nothing but you know what? they have their day in the sun, and it's today >> only today? >> well, i mean, we're in kind of a brutal market fundamentals matter. >> it's not quite what it once was. >> exactly >> 4% on bed bath at a $4 stock is not exactly lighting the world on fire. >> it's not a gamestop up 10% on absolutely nothing, but they -- i think those people's ranks are thinning now, amazon's ranks are thinning, and the memesteres' ranks are thinning they should just go into cra

josh, they say meta is expected to be a big arista networks customer you've got nvidia, amd, which makespus for meta, already provides the flash storage for meta should we think of this spending in a reverse way what's bad for meta is good for these chip names >> you know, it's an interesting question i don't think that will turn out to be the case because i think there is a recession happening in tech. it's not everywhere within tech, but this is not an environment where even as companies say they're going full speed ahead i wouldn't believe them because i just don't think the demand is going to be there. so as consumers have continued to move away from goods and towards services and that shows no sign of reversal anytime soon, i just don't think you're going to have a great year for growth in the semis. so i still think the semis are a good bet here. they're down substantially i like them as a group there are some names absolute outright buys right now, but as a group i just think share prices are reflecting a much worse situation. but that doesn't mean all of a sudden you know what, m