revenue and the big question is can facebook surprise and beat earnings estimates where twitter, microsoft, apple and others have failed and all moved to major

what's funny, i think a lot of these companies like apple microsoft or google, are using this chance as a pr stunt to say hey, america, we're not in the pocket anymore. because that was a complaint about silicon valley, but i totally think that security is priority number one. that's the government's job to let him get in there and get that data so we stay safe. >> add a dam. >> i don't think this is a pr stunt by the tech companies. i've been on the security side. i've got a little heat from that out here. i'm with the government. but i think microsoft, which come plies with the law in all these cases is saying this shouldn't be open ended. we'd like you to clarify this so you u tell us when it's over. i think it's a lot narrower. >> absolutely, you remember how apple presented itself to the world with the play on the 1984 and big brother during the super bowl, but having said that, i don't want government to be unlimited access to their database. there's a specific legal issue, i think companies should step up, but i don't think we give them a blank check. i worry about a governmen

. >> this calendar was designed to compete with apple, microsoft and facebook getting into, darlene, the life management business. your phone is going to tell you, calm your mother. >> telling me what to do. that's what i need. one more. >>> it's 4:51. still to come, what you don't want do at a car wash that could cause an explosion. >>> you may not be able to get ats to hamilton, but hundreds of local students have still the hottest tickets in town today >>> a car wash owner in dallas admits he's neverieeen anything like this. a vac ul exploded in flames. he was trying to suck up spilled gasoline from the trunk. that's a no no. the driver doused the flames with water. that driver could have been electrocuted. who knows what could have happened. luckily, no one was injured. >> you can't be doing that. >> sucking up gasoline with a vacuum, an electric -- >> probably not good idea. >> we're all learning. before. now i know. don't vacuum it. we have a nice a day ahead. it's going to be sunny and dry. no more rain from yesterday. temperatures will be on the cool side. 57 is the high. sti

emily: we talk about apple in respect to this argument. microsoft backed apple. at is microsoft's track record with these issues? have done this before, particularly since snowden. a number of companies have done a lot more to raise this issue and notify customers about encroachments on their privacy. they sued the justice department to report requests like these, secret requests, and a national security context and pushing back national security letters. emily: we know the government dropped their case against apple in san bernardino, but there are other iphones in other parts of the country in question. what is microsoft doing in filing this lawsuit now? they will hit 20 government is down, essentially? that is an interesting point. we saw the tech community rallied around apple. five this he questions are at the forefront of what the tech immunity is concerned about. microsoft has taken advantage. there is a bill going through congress that is looking to amend the 1986 law under which the government is seeking microsoft's assistance and the gag orders. it lines

companies like apple, microsoft and google keep the money overseas, apple hold the most. about $181 billion. steve cook wants to bring the money back but it will cost him too many in federal and state government. >>> here is the news on wall street. the dow is up and the nasdaq down, and the closing bell at 4:00, the s&p 500 up at 2,082. >>> president obama will deliver the commencement address at ruddgers on sunday may 15th, one of three he will give this year, he will speak at howard university a historically black college in washington, d.c. and the air force academy where he spoke in 2012. >>> time to get a check of accuweather and another one of adam's outdoor adventures. lets go to freddy's farm. go ahead and sink the putt. >> not good. come on, come on. yeah! it only took two tries. we are on lookout mountain, i'll tell you this place is phenomenal. it all started with making fresh milk in 1972, by 1991 homemade ice-cream, have you water falls with spectacular views and a driving range on the property and this is the family fun center, you can see why. we have all

other than facebook you had google, apple, microsoft.se are big holdings for portfolio managers and they have really been very, very weak. they haven't been able to catch a bid and i think that has put underlying pressure on the markets. >> we already know twitter had been weak. facebook comes out, it's just dominating, and what does that say? it's almost a traditional narrative, almost not a tech one the way they're growing advertising. >> i hear what you're saying and i'm looking at the amazon numbers, josh lipton will bring them to us, but it looks like a big beat for amazon and it doesn't just have to do with the cloud, so i will let the proflti professional take that over. >> josh lipton, take it away. >> yeah. beat is right, jon. let's get you the numbers. amazon reporting $1.07. the street was looking for 58 cents. $21.1 billion. analyst forecast $27.98 billion. operating income $1.1 billion. guidance, sales of 28 to $30.5 billion. operating income guidance $375 million to $975 million. quickly looking through the segments, it loo

or we can focus on apple, microsoft. you know what i say, you can own those. i'm not telling you not to. let's stay positive, even as we know a portion of the portfolio is deeply embedded in the house of pain. tom in ohio, tom. >> listen to you in the morning and the evening. >> can't get enough of me? >> talk to my wife, she's had it. >> my question for you is horizon pharma. whether to buy more, hold or sell. >> we're in the j & j market, we don't want to full around. the market is putting a premium on high growth. by the way, exxon lost its aaa balance sheets. not many companies can claim that. can i speak to david in new york, please. david? >> i'm calling about louisiana lemon, i know it's nearing # $59. should i buy in now, wait for a pull back. >> i think you buy half now, half later, i think the company, if i were vf corp, i would take a swing at them, even nike. how about todd in ohio, todd? >> caller: double boo-yah to mr. kramer. >> i see your two boo-yahs and raise you a triple boo-yah. >> caller: we learn a tremendous amount from you. your thought

and this is the stock class, alphabet, apple, microsoft, jpmorgan, johnson and johnson and wells fargocisco systems, and gilead, and pfizer and royal dutch shell. each has a minute to make a decision. and doc, on the clock. >> i am going with alphabet not because it is the first on the left there, judge, but because the stock down as it with apple almost the same percentage year the date, and will outperform here until february 3rd next year. the paid clicks were up 29% in this name, and the cost per click, and in other words, to get people to the platform and is so forth, that is down. so i think that those are two positive things for the former google now alphabet, and i think that video facebook owned it this last quarter as far as outperformance, but you know, google has 65% of the search market, and i think that they will continue to thrive on that as well as the youtube videos and so forth, and the self-driving cars are a distraction for now, but i think that it is something that people will overlook going forward. >> and who wants to play mel kuiper jr. and assess the pick? >> w

those are from workers at google, microsoft and apple. >> these are the contradictions of silicon valleyhese tech companies. doesn't mean they really want to redistribute their stock options? no. stuart: okay. that is a reasonable explanation. >> they have to be supporting someone. he is out fundraising. libertarians. >> you sort of have to take him seriously. taking in over 40 million a month. incredible. >> $27. that is how obama beat hillary. >> tried this one. this one is for you. anybody suing ashley madison. having to use their real names. >> for anybody protecting his or her identity. the so-called female participant. supposed to be boxed in a way. stuart: that is the bottom line. a few members of the class action. i am not saying that this is a great day in american history. >> a class-action lawsuit, if that is what it is. >> a need someone to put their name on it. >> somebody will. a lot of money. moving on. joe walsh. james gang, i think he played into. associated with the convention. he thought that this eve at was for that. benefits, to an fact help families of veterans. thi

and apple and microsoft who can kind of force them to take their market share down late bit. depends on exactly the nature of the anti-trust allegations, which part of the business they really focus on. >> it's a funny case. i remember going back into the '90s with microsoft. the real charge was that microsoft then, as in the case of google or alphabet today, was taking advantage of their dominant operating system position, in this case android, to favor other products of theirs that are in their suite -- google maps in this case, google search. but why shouldn't they be able to? are they going to favor somebody >> right, well, this is what the default value, right, the default settings. turns out what are you nudging people towards? that's a powerful contest, how you nudge people. it's great for apple by the way. already apple bigots and i'm a little bit of an apple bigot myself will tell you the android side is a little too fragmented and apple is just wonderful, beautiful, walled garden, everything works great. this might force the android side to be even more fragmented.

apple. microsoft continuing its decline. labs is declining and verizon is also sliding.verall, a mixed picture here it individually with stocks, a mixed picture. >> we did hit a market milestone today. >> matching the second-longest bull market run ever. tomorrow, presuming nothing will androng, we will exceed it it will be the second-longest bull run ever. we see it going back to march 2009, more than a 20% surge. whether this is going to continue depends if you are in the bowl or bear camp -- bukk camp.bear the s&p 500 is in white. and you have the stimulus purple. in blue, earnings per share for the s&p 500. there are schools of thought that say this upsurge is only because of stimulus be have seen from the fed and it is not going to continue. been there are those who have watched profits go up. profits areur -- now coming down to some extent. there in lies the debate if we continue to see this bull run. >> thank you so much. the entrepreneur who cofounded twitter and the publishing platform media is back in the spotlight. for more, let's handed over to emily chang in

go where someone calls to claim to be with microsoft, apple, dell, h.p. the goal is to make you pay money to fix a virus that doesn't exist. >> the better business bureau says there are two versions of this scam. one with they will call you on the phone. the other is a pop-up on your p.c. >> they are doing something on the internet and a word document and a pop-up comes up and says warning, you have a virus. >> an dra with the better business bureau says no legitimate company is checking your computer unless it's a virus program that you purchased. so hang up or close the pop-up. remember, they are slick. >> they are frightening. >> bottom line microsoft, apple, dell will never call or e-mail you unannounced about your computer so ignore the alerts so you don't get trapped and waste your money. i'm john matarese, abc7 news. leon: a fire department in shock. one rescuer dead. another injured. both shot on a routine call. nightmare. leon: why the man who pulled the trigger is not charged with a crime yet. plus -- >> a no win is what it boils down to. leon:

apple is in a bear market. we stay with technology. microsoft down 7%. it did miss estimates coming out after the bell yesterday. gartner, for example, saying there is a contraction in the market. 9.6% in terms of pc sales. alphabet also missing estimates. starbucks trailing estimates, down by little more than 5% there. revenue did rise, by about 9.4%, vacations, which were a lid -- expectations, which were a little bit more than five alien dollars. energy -- $5 billion. nymex crude up. some western energy up -- look at that, nearly 13.5%, beating earnings estimate. range resources and chesapeake sympathetic, and rising on the news. carol: dimension technology, energy -- but big moves in the industrial space today. ramy: specifically with transports. i want to talk about american airlines, united, al -- as well as alaska. -- for for -- her available seat -- that is fallen across the board, taking the stock price down for american airlines. now down about 4%. they expect revenue per seat to fall 620% in this quarter -- fall 6.2% in this quarter. a similar

will facebook save the day for tech earnings after apple, google, microsoft all missed?et involved with us. we want to hear your opinions. lots of votes already coming in. >> and it's wilfred's question. >> it is my question. you didn't have to point that out to everyone that you often -- >> -- so good. >> still to come, diamonds are still a girl's best friend. well actually rifrd and sara's best friend. but a new report shows the bid isn't letting up. stay with us. we were born 100 years ago into a new american century. born with a hunger to fly and a passion to build something better. and what an amazing time it's been, decade after decade of innovation, inspiration and wonder. so, we say thank you america for a century of trust, for the privilege of flying higher and higher, together. ♪ >>> the tech wreck continues. here. last week twitter and apple adding their names to the pile later. the dow called lower about 45 points right now. shares of apple. that is the big story this morning. down about 7% in pre market trade. all eyes on apple, on twitter and on facebook wh

emily: the microsoft case is very different from the apple cases, but what you see as the role of microsoftpple in defining the next decade of cyber law? hillery: very good question. i think in some ways, they are pushing congress to move forward. that is what needs to happen. this law that microsoft is challenging came out in 1986. this will disclose my age. i recall 1986, getting music cds and disposable cameras, and that was the extent of technology. whenever you got outdated laws and emerging technologies, you are going to get some sort of result that is not what the original drafters of the legislation intended and not something that can be sustained if we are going to keep our rights under the constitution, balance them with predictability in technology space, and also have relationships with consumers that makes sense. 1986, decades before the cloud. hillery nye, alex webb, and shira ovide is sticking with me. coming up, arianna huffington opens up about how the ceo built his uber empire and how it is hurting donald trump. our interview, next. ♪ emily: in this week's edition of studi

apple and microsoft say their employees are equally compensated.en still earn only 76 cent on average for every dollar a man makes. >> if you are headed to starbuck on the way to work there are changes to the rewards program. here is that story in the money report. jane? >> good morning. we are starting the day positive and gaining a little momentum with the doug up 84 and nasdaq up 5 and we just starting the earnings season, not spoused to be that great this area but, really, underway after the close on yesterday. as women fight what is the battle for equal pay they face another factor: being penalized because though corsairsless of whether they will, have children. studies show much of the public discussion of the wage gap is focused around women getting equal pay for the same work the quiet pregnancy penalty is less attention because it is difficult to measure. some sergeant that the possibility of a woman having a baby is enough to push her to the back of the line. >> star picks revamps the free loyalty program rewards customs get for purchases

twitter, apple, microsoft, google, all of these big tech companies that have disappointed this quarter continues. apple is set to lose a couple of twitter's at the open. [laughter] down,g us to break it kristina hooper, u.s. investment applegist the menu card, weighing on stocks, crude very much in focus and the fed, but to kick it off with number one, the company we have been talking about all morning, a terrible quarter for apple. they are forecasting another declined in the current quarter. beyond apple and the wider sector at the moment, the market has been dead right? the numbers underneath the earnings we just got, they tell me china was not great. do you expect to see much more of that? christina: we have to watch china carefully because there are a lot of question marks. there is still rumors in china that the consumer is more solid but also more picky. wilson you to focus on with the, not just for this company, but in general is the impact of currency. that is a theme we have seen a lot of any earnings reports. -- in the earnings reports. david: what are your numbers telling y

apple called the mobile revolution correct the. it built the iphone and capitalized. microsoftmuch missed it. didle played defensive and the android business and has been trying to catch up. it is a winner take all market in this world and apple got first mover advantage. tom: but what is microsoft's new plan besides xbox? where do you see microsoft in three years or five years? >> microsoft, they've replaced their ceo. what he's trying hard to do is shift the market over to cloud oriented business. that has been the business. that is the future of the business. the mobile business has been a disaster. the nokia action wasn't good. lumia sales are down. the pc market is going down. you've seen the battle that intel is facing because intel also made the wrong call on that. microsoft is trying to play catch-up and win in the cloud business. it is doing a good job, but it is still very distant compared to amazon. microsoft lumps all their businesses in the cloud together. last quarter, they were at $9.4 billion run rate and now they are at $10 billion run rate. does thislarry, how

he says google, apple, starbucks, microsoft, they're each engaged in assets hiding. buying up the west coast of u.s. and canada. the amounts low in terms of the individual behavior. and also points out this is only one side of the story in terms of the leak. the law firm involved specializes in setting up offshore companies in tax havens. and they claim that they haven't done anything wrong. so important that we get all the details as this story continues to be rolled out. barry wants to know how much copper annually will be needed in the future to globally manufacture the growing number of electric and hybrid automobiles. i don't know, but it's a really good question, whether or not the price of copper going up because of, for example, tesla and the likes. >>> coming. here on the show, f1 petro heads landing in bahrain as the season gets under way. find out which racer crossed the checkered flag first. that coming up in just a couple of minutes. you can't predict... the market. but at t. rowe price, we can help guide your investments through good times and bad. for

getting back to tech in general, look across the board, apple, twitter, microsoft, alphabet, all these companies reported pretty disappointing results. melissa: right. >> facebook is only one, only big tech bellwether that has done well this earnings season. melissa: jonathan, what do you think is the magic behind that? that is something we used to say about apple. other companies would blame the environment, blame the economy, blame other countries. if you look around the world, number for the fourth quarter, how many people go and log in daily, who are users, went up to 1.65 billion from 1.59 billion. that is a staggering number? >> it is amazing. you can't put apple down, melissa. something like 40% of all silicon valley's profits this year go straight to apple's bottom line. so they have innovated as well. the market, keep in mind is always looking forward. unlike apple which came up with the apple watch but not widely adopted just yet. facebook's innovations are almost immediately adopted. this is essentially advertising company. you can not run advertising product, can't roll out

for example looking at apple, microsoft, big names considered slow tech have pretty good runs because valuation has perceived to be not as onerous as some of the unicorns or smaller names. david: with the exception of facebook -- if you look over the last few months a lot of those big ones did not do so well. nick: that's right. a group that only in the last couple of weeks of the quarter began to catch a tailwind. we are thinking that continues into q2. the big issue is a lack of growth anywhere else in the global economy. if you need to run a growth portfolio you need to be in tech. flat.his is gone flat anyone along the banks is covering their eyes refusing to look at the bond market. is that trend set to continue? nick: to bital you see the yield curve as the economy matures and goes in the later stages of growth. i think it does. stephanie: people cover their eyes invested in banks. many have said financials look cheaper and cheaper. do they if you consider return on equity? at the are alook 7%for the big banks, 5%, 6%, . not enough to cover the cost of capital. that is a gating

we are talking about apple and microsoft. ier in the program, they had a technical bear situation. that 20%? ? down 20% what needs to get turned around? there are reports in production cuts. the big issue with apple is that people are worried that the iphone product cycle is getting long in the tooth, it is 68% of sales right now than it was last quarter. it is even a higher percentage than profits. if you get the product line rolling over, apple has a problem. they really don't have had good onboard to the iphone right now. they have a lot of stuff in the works, a good pc business. the tablet business has been doing ok, it is volatile. david: but it is not a growth business. so if you are running apple, your tim cook right now, do you double down on hardware for the new iphone, or do you go somewhere else like in software? reporter: content, software, services. there pushing hard on the services in particular with apple pay, apple music. they are trying a lot, they are going to do more. they need time. david: it is still a ze

this after disappointing numbers from apple, twitter, netflix and microsoft. t's get reaction from mike sorrentino. and scott kessler from s&p global intelligence. >> mike, here with facebook. >> always something fun to talk about. something now google and apple yesterday, i can't find a flaw in these numbers so far. >> so, what does that tell you, the fact that they're able to do well in an environment where few others apparently are? >> well it's a continuation of the story for years now, they continue to execute. facebook is a company that has arguably one of the most valuable assets. they know everything about everybody. every day we give them more information voluntarily. and they're going to continue to monetize this on, frankly, a daily basis. >> scott, how expensive is this company now as an investment? >> you read my mind, kelly. when i think about facebook, this is a stock that's been trading 35 to 40 time forward estimates. not all that extensive given the fact that the company just posted 52% revenue growth, and that's not accounting for currency. a

technology and telecom names are bringing markets down today, specifically names le amazon, apple, ebay, microsoft, yahoo, a lot of you h have in your portlio, they are coloring these screens but look at the nasdaq. a lot of stocks are traded on the nasd, it is down 86 points lower, we could be dropping further, we will see if any of this turns around, verizon is slamming the tao down 2% but you can see it is a problem at the moment collectively. european central bank chief mario druggie spoke a few moments ago, issuing a big warning, worried we are not seeing enough inflatioion. he is also worried about the global situation as far as all economies are concerned. it wasas revealed yesterday in d minutes from the most recent meeting but it is what he said at he said a couple hours ago, it is causing major bearishness in the markets but the tao has just come up off of those lows, down 218 points. mcdonald's shares breaking upupo a lifetime high, second new lifetime high for mcdonald's this month, mcdonald's trading at 1 $27.87. the market drop atat the stock exchange, laurie rothman grabbed a few of

. >>> and kevin o'leary traded ap apple for microsoft, and he tempted to get back in after the drop? as we go to break, we are looking at the map. s&ps are up a couple, and the "halftime report "si back after this. >>> we are back on the "halftime report" and another big mover is apple. the stock is down 9% or thereabouts for the week. almost giving up another percent today. kevin o'leary, this is clearly the biggest stock story in the market this week, at least until facebook, but you will get the picture. you traded it. so to speak. for microsoft months ago and you said it right here on the program. >> yes, i actually disclosed it to you in the third week of september, and we are rule-based investors and concerned about the balance sheets, and looked at the increase of debt repatriating because of the crazy tax laws stateside, and bringing it to europe to come back to distribute the d dividends, and that is going to break our rules for manifested september. that's when we sold the stock. and, of course, you know, obviously, you love it when you get it right like this. this has been

revenue and the big question is can facebook surprise and beat earnings estimates where twitter, microsoft, apple and others have failed and all moved to major moves in the stock price. apple and twitter ones to watch at the open to see how they trade. both trading sharply down of course in the pre market. leaves us with about .25% client with the s&p and the dow and the nasdaq down about 1%. and the all of that and lots more coming up on "worldwide exchange" today. big big political discussion as both hillary clinton and donald trump all but secured the nominations. they took big, big steps towards getting the nominations for their parties. and one final thing, we got some diamonds onset today. more on that in "worldwide exchange" in what, seven minutes time. >> now is our reasonable time to buy u.s. treasuries. this from fund manager jeffrey gundlach. we'll give you a look at that there. what's fascinating for me is what's goingen the for inflation expectations. the break evens there in the u.s. for the 10 year it is something like august. so despite the mixed data, expectations are rising. int

a: can facebook save the tec wrwrk, after the closing bell today gooe, microsoft, apple and twitter have reported disappointing first-quarte resus but analts expect fabook treport a 48% increase in n revevenuover last ar and a risin profit, mobile advertising is fueling fabook's success from mobile ads in the first qrter, facebook shares are up 33% in thpast year. laurenthe federal reserve wraps up its meeting in th general feeling there will not be an interest re increase. there is no news confence e scheduled, t fed policy statement will bunder close scruny for signals of a rate hike at t the fed next meeting june. the statement will be releleas at 2:00 p.m. eastete time. lea: we arare looking at stock mamarket futures, the us ahead the decision on n race and monetary pololicy and in the ra of the tech earnings last night. looking at the nasdaq, i it is 1% decline in ththe premarket a 45 points, lkiki at the dow jonenes it is down 0.2%.. looking at keyey c commodities and gold, oil above $4 yesterday, now is s climbi oser to 45, up 2%,old up $4 to247 a troy ounce. uber lauren: coast is

>> now it is apple and now microsoft. >> when i first heard the story. 5700 requests from law enforcementosoft, my first thought is who is paying for all of. this as a share holder i don't want to pay and as a tax prayer i don't either. microsoft is arguing that the request itself and not being able to notify their customers that their files are being searched, they think that that violates the responsibility to the end client. all they are doing is going through the legal process to go to another judge and let them hear the argument and deputy through all of the appeal process. i back this totally. i am not saying they are right. but they have a right to exhaust their legal remmidy. >> they can protect themselves legally? >> i would le to think that microsoft is looking out for our rights. but i don't think it is done in our self intchlt the cloud is an important advancement in technology. it is important to put information on the cloud and share with all of their employees and they are concerned that if companies are worried that the government is looking at the files they will not use

microsoft and apple tanking on earnings this week, could reports from apple and facebook be the next shoes to drop for tech? let's get in the money right now. dan, how do we set up? >> i think, listen, when you think about technology underperformance this week, it came into the end of the week we saw $50 billion shaved off between google and microsoft today. they were hanging in there, but if you think about it, there were a lot of disappointments this week. ibm, intel in the past week. these two guys, so to me, i think as you look to next week, tuesday and wednesday, we're going to have $1 trillion, or close to it, in a market cap between apple and facebook reporting again. apple, i don't think expectations are particularly high and i don't think the stock will move a heck of a lot one way or the other unless there is a meaningful downgrade. facebook, that stock rallied 15.5% in late january when they beat on the q-4. that seems to be one that people really want to keep in the game here. >> i agree with you. apple is definitely getting into those sort of drifting around aimless leve

microsoft -- i expect virtual reality to take off starting next year and be a $200 billion business. who knows, we may get another apple emerging out of it. microsoft is also large in the business. theirs of course is more augmented reality. and certainly with their holo lens and whatever they've done a terrific job of starting off and getting people interested in it. particularly from a corporate point of view. so i would say that they have a big jump in front of the competitors. granted a small piece of microsoft, although certainly mike soft is going through a creative destruction process with a new ceo in the company. i look for progress. >> you say high max is a name you like. why do you like that name? based out of taiwan. >> yes. high max makes, for the various going on be a headsets used in virtual reality, used by a lot of different companies that are in essence getting into the business. they make the chips, the intergreated circuits, the electromechanical devices, cameras. everything comes out of that company. and i think they're really posed to explode. naturally they're not cheap and they've had a big run.

microsoft sued the justice department over alleged violations of a 1986 privacy law. cnbc's geoff cutmore has more from london. this comes on the heels of the big fbi fight with apple. so what exactly is microsoft claiming in this case? >> yeah, absolutely. the real question here is, what price privacy? and microsoft are making the case that the federal government's ability to get your data from its cloud system or devices should be revealed to the users whose data the government is going after. and this is why they filed the suit, because they say not informing the users that the fbi or other federal agencies are looking at microsoft users' information would be a dereliction of their duty. so again, it is this privacy issue that is seeing these technology juggernauts butting heads with the justice department. so we'll watch and wait for an outcome. >>> i want to touch on the markets briefly before i get back to you. the markets as you know are at new highs since december. the s&p and the dow in particular seem to be cheerleading some better economic numbers and we have had three strong days for the dollar here. but keep your eyes on the middle east. that's where inv

apple. after we saw the declines in microsoft and other names, apple is not the best barometer but still a huge>> it's a widely owned stock. it's going to be a tell how the consumer is feeling for starters as well as how stock investors are feeling. i agree with what stephanie said. there's a waiting in the wings. i was literally just on the phone with somebody saying this almost so far felt like a vacation week. >> in some ways there was. plenty of spring breaks happening. >> new york state, public schools, this is the week off. it's scattered throughout the month or two. people are on vacation. people are making moves. they want to know more about the fed. they are looking to japan. they want to get into these earning details. >> one of the other things this morning, perrigo, stephanie, its shares were down because the ceo is leaving to go run valeant. but it talked about drug pricing. that environment has changed. changed for the worse as far as they are concerned, more difficult to pass on any kind of price hikes. how does that ripple through one of the most loved sectors. >> perrigo is ver

then you saw manufacturing numbers like cat for example, microsoft, google, apple were bad.ook was very good. we didn't think the first draqu going very strong. there's been weakness the last few months. if you think about the next half of the year. starting in june on, if you have a weaker dollar, energy pricers are obviously higher and stable gdp with some consumer spending. you could start to see gdp numbers looking better. so i think more about the second half of the year than this quarter. >> and you hope they get better. sounds like we're only going to get about 7/10 of growth. is there any brightening on the horizon. >> there is. we are gdp trackers. we're a little above the consensus. five of last six years, first quarter was terrible, followed by much stronger growth in the second, third and sometimes fourth quarters. we think second quarter will go up to around 2.5 percent this year as last year and the year before. so the gdp numbers are a little squirrelish shall we say. in the sense that i don't really trust them that much. they don't have the seasonals right. w

arabia sold this part, they could buy four of the biggest companies in the united states, microsoft, walmart, appleberkshire hathaway, and still have some cash over. turned into a public holding company which will be at a later stage. it is a cheap valuation. 10 -- $2 trillion of their violation would be at oil at $10 a barrel. it is for time. be remnants of aramco will transferred to the sovereign world fun. it is the country's reliance to try to get away from its reliance on oil. the deputy crown prince saying by 2020, he thinks they can live without oil. they will need it, but they can live without it. let's see what else he said about saudi arabia's reliance on the commodity. >> we have all developed an unhealthy oil addiction in saudi arabia and this is dangerous. it has hampered development in many sectors during the past years. arabiahow was saudi going to move forward without the dependence on oil? juliette: they will cut back on wasteful spending. one of the areas he mentioned was overhauling the military. he said when he goes and looks in the saudi military -- he's his opulence. he sees m

scarlet: but it's not just apple, twitter and microsoft round out the tech bonanza.g in our tv audience. my guest joins us from the janus global technology fund, a big tech investors -- big tex investor. what is it in particular you like about amazon? it does not throw off a ton of free cash flow. let do you like about it? when it comes to amazon, the thing we are most excited about is the amazon web services business. growthshown exceptional for the size of the asset that it is. it is over a $10 billion run rate, growing high double digits and it is incredible. white do they take such a big profit there? it is so not like amazon. think it is a function of where the market is at right now. if you look at the cloud computing market, amazon at a $10 billion run rate, the closest competitor is microsoft somewhere south of $2 billion and google, which is south of a billion dollars. effectively, the market is there. all three companies have had conferences where they have highlighted their strategies but the scale benefit amazon has, it just seems to be remarkable. >> how

turns out old tech names like intel, microsoft, apple, and texas instruments were among the top performers on earnings, as they're reliable long-term bets. the laggards, names like hp, ebay, and qualcomm tend to lose ground. just a historical look there, not based on the analysis going into this period of quarterly earnings. but for more, go to cnbc.com and check out cnbc pro. >>> right. let's get back to markets today. joining us to discuss more is paul donovan, managing director at ubs. a very good morning to you. thanks for joining us. let's kick off on the big global story of the day. china gdp coming out overnight. it's clear things have stabilized there since the start of the year, both in term of growth and sentiment. what's the main driver for that improvement? is it sustainable? >> so i think it's quite clear the chinese authorities very definitely want growth to be comfortably over 6% this year. reform essentially has been sacrificed on the altar of a decent growth number. so what we're seeing is policy stimulus really coming through in these numbers. if you look at the credit gr

that's what we're running into with the fbi versus apple or microsoft versus the government.ing to be a decade of change that's going to be necessary in our laws and practices. >> good on you, aaron levy, 31. you dropped out of college. you have a $1.5 billion company. your parents said, great, son, you'rett that. but ultimately, they were fine with the proposition. probably up until about five years in, my mom kept asking me when i was going get a degree. that's since subsided. >> doing a-okay. thank you. >>> best-selling author john grisham offers up a plot twist. >> i don't view my books as important. i view my books as entertainment. first and foremost as entertainment. "the tumor" is the only book i've written with the potential of advancing some technology that will have a profound impact on the lives of millions of people. >> ahead, john grisham talks with chip reid about the >>> john grisham has told more than 300 million copies of his books worldwide. while he's popular for his legal thrillish, his latest explores mo modern health care. chip reid talked about it and

microsoft and apple that deep in the red in the premarket.ecasts.lysts' look at the tech earnings we have had so far. it is a story across the board about valuations and investors getting a little too excited about the prospect of some of these companies. >> you can make that argument from one end, it is probably too early to tell. the most back in both microsoft and google are in the area of what they were forecasting. >> they are still growing. but that is all associated with the cloud at this point? >> the cfo is sandbagging a guidance -- lowering guidance of the can beat that. doing a lot better than expectations, but that is because guidance was set so low. >> profit growth. imagine that? [laughter] >> and growing. >> biggest profit growth they had seen in a year. >> how about alphabets? their stock was down. boy, they are growing. >> this was a really strong order for google. in the secondary strong quarter across all things. there were more losses in the other categories. the revenue was higher there, too. erik: we will have much more

apple. they are now facing microsoft.y are trying to stop the authorities from taking customers e-mails without their knowledge. step the most aggressive in a two-year feud. the department of justice is not alloww to microsoft to notify customers. sell servicesto that customers can trust. critics call the law outdated. i shares falling. sources say the nomination committee will meet this afternoon to discuss personnel changes, including new directors to the board. we've been talking about retailer scrambling to fill this power vacuum after its ceo step down last week. the management of people comes as daniel loeb has called for restructuring or disbursement of less profitable units while backing iaka. loeb accused the chairman of saka so hisemove i own son could take over the company. we will continue to watch that meeting. bank of america says it is go it further cost cuts as reported first-quarter results, expenses down to $14.8 billion. that has helped an offset in revenue and net income and sent the stock higher for a

he pulled in $95,000 from workers at microsoft. 8,500 from apple. this according to the center for responsive pi responsive. >>> hot spring for the housing market. existing home sales jumped 5.1%. that drop was due to a lack of affordability. the median sale price topped $222,000. that is up almost 6% in the past year. mortgage rates are low. that should help move properties in the busy buying season. demand is strong. inventory is lower. more people could list properties to help meet demand. what you are hearing, people cannot find a house. they have a low mortgage rate. >> going back to the story on bernie sanders and silicon valley. one reason the sanders campaign is not changing its tone or throwing in the towel. they think california is a great state for them. they can win big on the very last day of the primary season. >> silicon valley is the extreme of income inequality. >>> "early start" continues right now. the presidential campaign trail heads to the mid-atlantic. donald trump and hillary clinton hoping momentum from new york follows them