broadcom sells a wide range of chips to apple, google, and cisco.to the bloomberg and you will see that they have become a bellwether and also invaded the fate of so many other chip companies which have had a very difficult year. >> the other side of the story a big plunge in chip stocks. >> nvidia took a lot of their peers down in the regular u.s. session. these were significant drops. nvidia took a lot of their peers down because they warned that the new government rules about the exports of artificial intelligence chips, the ai chips to china could hurt the revenue in the range of hundreds of millions of dollars. they warned they have two chips in particular that will require government approval before they can be sold. they followed up with another announcement that they have been given a license to provide support to u.s. customers in china. to phrase one analyst, you can see chip pain for the bigger industry, there are clearly more broad takeaways that the government here in the u.s. is taken the more aggressive approach to software into chip

the action, the story and the trade on broadcom and lululemon. off its highs, on pace for the worst year ever its earnings have beaten the street 18 of the past 20 quarters kristina partsinevelos has the story and david katz, matrix assets investor has the trades >> just in june you had management from broad come say they still anticipate demand to outpace supply they believe near term demand is staying strong still higher than precovid a few barometers you have of course broadcom connectivity we saw their business is primarily based on prescription based model. storage-based chips sector has been weak. can that offset the weakness in storage? >> david, what do you think? what are you looking for and do you expect much commentary on the vm >> we think broadcom is doing well we would not buy the stock in front of earnings because it's been a treacherous earnings system technology has had a lot of misses along with apparel. we're wary about stepping in front of it. if you have a 6 to 12 month time frame it is well positioned at a 13 or 14 times ear

broadcom of course coming out without reserve.ou pair that globally with that slow down -- the blows are interesting and whether this will pay off for those investors, alyx. ♪ when people come, they say they've tried lots of diets, nothing's worked or they've lost the same 10, 20, 50 pounds over and over again. they need a real solution. i've always fought with 5-10 pounds all the time. eating all these different things and nothing's ever working. i've done the diets, all the diets. before golo, i was barely eating but the weight wasn't going anywhere. the secret to losing weight and keeping it off is managing insulin and glucose. golo takes a systematic approach to eating that focuses on optimizing insulin levels. we tackle the cause of weight gain, not just the symptom. when you have good metabolic health, weight loss is easy. i always thought it would be so difficult to lose weight, but with golo, it wasn't. the weight just fell off. i have people come up to me all the time and ask me, "does it really work?" and all i have to s

. >>> coming up, nice gains for broadcom on the back of its earnings stephanie link owns it, icwhh is why she's calling in next. find out what she's doing with that stock when we come back (vo) hi. we're visible. a different kind of wireless company... ...running on a big impressive wireless network. how are we different? we exist only on your phone. so you get unlimited data for just $30/mo, taxes and fees included. plus we have a new plan with 5g ultra wideband. switch today at visible dot com. >>> hello, everybody, i'm contessa brewer. the department of veterans affairs is getting ready to offer abortion counseling and in some cases abortions to pregnant veterans and their dependents. abortions will be offered when the mother's life is in danger or the pregnancy is the result of rape or incest. right now the va does not provide abortion care. republicans are pushing back and point to a 1992 law that prohibits the va from providing abortions. but a '96 law demands that the va provide needed medical care. >>> tropical storm danielle has strengthened into a hurricane. it's the first t

broadcom is fairly credible. they will tell you what they are seeing.he paper scale is still strong, that is positive. if they say things are starting to leak my people would take that as indicative of what is going on. kriti: we are seeing a dollar they get stronger and stronger, hitting a record high today. how much of that weighs on chipmakers bottom lines? stacey: not a lot of direct impact from currencies. almost all companies are priced in u.s. dollars. u.s. products get more expensive but do customers buy less? or do they put cheaper parts in to make cap for differences? there will be some cost impacts. but that is actually a positive when the u.s. dollar is getting stronger. i do not worry about currency for my coverage directly. it is more what is indirect. for european or asian companies, currency movers can be much bigger. jon: appreciate your time, as always. we get ready to watch those broadcom markers and to see the market react. a drop in some price pressures. the details next. this is bloomberg. ♪ jon: this is bloomberg markets. our numb

broadcom seems to be more positive. why? spent an hour on the phone yesterday with analysts saying, are you sure? are you sure? there is a division between the -- related companies where we are seeing -- going away after the pandemic. lots of companies like intel a lot weaker outlook. on the flipside, broadcom is saying infrastructure -- people are still building. companies are still investing in infrastructure. that is why our numbers are good. emily: broadcom is a big apple supplier. what is what they had to say indicate about iphones now? especially with the big apple event coming up? >> absolutely right, that got lost in the mix yesterday. the shipments for our large north american customers that everybody knows -- doubtful -- are going to be what they were at this point last time. and demand is solid. indications from that on a unit basis are -- expecting the next version of the iphone. as good as the previous, which given the environment will be seen as -- emily: bloomberg technology will be coming to you live from the

>> they're not nvidia >> i've got broadcom software is 49% of the revenues.y're raising their dividends, buying back a ton of stock, and it trades at half the multiple of nvidia. >> so ask yourself why >> i mean i think to me it's a little bit of a cult thing, right, that's number one and i don't think broadcom is kind of glamorous and sexy >> will he wear a motorcycle jacket for his next presentation because that's what i need >> i have been underweight chip. i sold everyone of them in march. i did buy broadcom back because it got so cheap. >> you make the argument there's so much pent-up economic activity it's going to benefit semis. where is that? >> first off these things have been disastrous. if i start with invid you that multiple has come down a lot it's pretty cheap relative to its growth rate even at 30 times. if you look at something like steps, broadcom or qualcom, those ratios are below 1.0, which means you're getting these things really on the cheek you know why belief there's a lot of economic activity with supply chain, onshoring and infrastruc

and broadcom is issuing a stronger than expected current quarter revenue forecast broadcom's ceo saysy expects strong demand across all of its end markets to continue this quarter and as a result, that stock up by about 2.8% steve? >> hey, becky, educate me on lululemon, unfortunately, i'm not a customer this is high-end stuff >> it's ex-febpensive. >> people buying clothes to go back to the gym and to the office >> they also have pants for men that are an office ware, a casual office wear the abc stuff, that's what joe wear, drawing more and more men into the brand and that's probably what's helping, too the ceo was talking about when they're looking at men, their numbers are up 27% when they're looking at women, the women's business was up 24%. and by the way, they're not offering discounts onthis stuff. pretty strong demand i think something like 30% traffic increases in the stores. up 40% online. avenue m every metric that they ran through. >> i follow all this stuff, becky to get a beat on the consumer and the macro side of it, but the lululemon does not sound like a weakening co

broadcom doesn't have a lot of consumer exposure. the only consumer exposure they have is apple. apple's actually holding up okay most of what they have is infrastructure on the semi side, which is good. they have not been shipping everything their customers have been order they've been deliberately undershipping because they're aware what customer behavior tends to be like around these sorts of cycles. the backlog is $31 million more thain ayear worth of semi revenues got a lot of runway there. enterprise focused software that is much more stable and high margin they're trying to buy vmware right now which will bring the software semi mix to 50% >> broadcom's ticker is what, avgo >> that's right. it used to be ahavingo highest margins, it's one of the cheapest things in the space there are some of these more secular stories that are exposed to -- but they've been punished maybe a little too much. in my coverage i throw in companies like amd and qualcomm into that category av is exposed to some of these markets, but they've been powering through like a champ because their product

>> yeah i do expect broadcoms continue down.dities peaked after the whole ukraine debacle started. crude has been unownable below 95. even more unownable if that is a word, or possible, below 85 and i do think that that bleeds into broadcoms and i think it is a demand issue, not a supply issue. charles: you gave us some sobering realities, and charts back you up. ian, thank you so much. appreciate you. >> have a great one, charles. charles: coming up folks, how long will it take to get down to 2% inflation? history says when inflation goes above five it only take as decade. what are you doing for the next 10 years? i will ask brian wesbury about his timeline. forget the crock pot, folks are asking wedding guests to help them with their mortgage payments. hadley heath manning is here to react after this. ♪. ♪ ♪ ♪ ♪ ♪ ♪ (driver) conventional thinking would say verizon has the largest and fastest 5g network. but, they don't. they only cover select cities with 5g. and with coverage of over 96% of interstate highway miles, they've go

>> a lot of the companies we own, rate guidance though you did a piece on semis, a company like broadcom capital allocation strategy, have grown 35% and they see acceleration in their cloud and enterprise we're focused on some of our help care overweight some of the names like cvs with very strong dividend growth prospects so usually you're getting in the dividend management long term sustainable earnings power so that's where we're focused. we are going to have some companies that will get crunched but generally i thought the second quarter earnings were pretty darned good and some of the guidance as well >> yeah. and certainly dividend growth is an inflation buffer. appreciate the time, nancy as we head to the close the s&p 500 is down about 1.8% had been down closer to 2.5% earlier. on track to close a little bit above the june lows and 3666 was the closing low. here we are about 25 points above that, 3636 was the interday low the u.s. dollar index up a percent and a half on the day, a mega move for the currency index. the russell 2000 was the underperformer down 2.5% as we ride into

placed by the end of this year, inflation numbers are dropping we saw the participation is increasing broadcom, not all semis are created equal. they've been able to deliver in a relent leslie different environment. that's very different from the experience that nvidia is having dividend growth is certainly a benefit if can you guess it. >> i spend a lot of week on -- it tells a very different story. they still talked about longer times to get deals done. >> if you look at the early reporters, they didn't caution we heard the calls from salesforce and others -- >> but they were so much earlier, right now these are all of their customers. >> no, you're right. i think you will see continued decel deceleration so i think some of this has priced in. i do think that some of it is priced in. i, we have been talking about slowing growth for about a year now, so we have defense-i fied or portfolios. we have to be looking forward as investors. it's not necessarily the next 20 days i'm pretty confident in these names. >> i want to get to lulu i think expectations have been so low, but what it told us is

take a company like broadcom, something we have own for a long time.e down nearly 25% year to date. the company has very solid growth. it's chips are 15 weeks out. there is still very strong demand. that's the sort of company that has been beaten up. it is cheap at 13 times were investors can take advantage of paying something -- something that pays and has a fair bit of appreciation attentional. >> what about small caps? we heard that some of those smaller names are pretty cheap compared to their larger counterparts. >> the small-cap names have sold off hard. the reason for that is there's just a lot more uncertainty along smaller cap companies it's harder to understand them, they are less well covered by wall street analysts. you tend to find investors running away from those. consequently, they have become incredibly cheap given the prospects. you still have to confront the fact that businesses are smaller but a lot of those companies can be more domestically oriented. here women look at the global economy and risk, there are more risk to europe and

government is cracking down impacting nvidia and amv but not broadcom. it gave not only as strong forecast for global sales but beat third quarter profit estimates handily raising the stock after hours. a big listing on the screen now. the company is reducing fears that spending on internet is slowing. the company saw solid demand in the fourth quarter. continued investment from customers and data centers. it's a very different story from the demand slump from pcs and phones as consumers price in inflation. the semiconductor index has declined. broadcom among the world's biggest tech companies. that makes it a bellwether. that is what makes this particular news welcome. earlier in the u.s. session nvidia took a lot of tears down in the trading session. it warned about exports of artificial intelligence in china could hurt in the range of hundreds of millions of dollars. >> let's look on the fx front. huge dollar strength will drive the fx future across asia today. manishi raychaudhuri was just talking about how that will impact flows away from emerging m

and later, we have results from broadcom.teresting within the context of nvidia and its ability to export chips to china. liz truss has comments to not introduce any energy rationing if she becomes the next prime minister. she is currently the foreign secretary and she has made commitments during the final conservative party debate last night. joining us now with analysis is ben sills. what is liz truss' plan to tackle the energy crisis? do we have any details other than saying we can do something? >> we are starting to get a few bits of information. our team on the ground has some scoops. we know she is considering business rates for small companies that have been hard-hit by the rise in energy costs. we also know she is planning a rate on some of the energy producers who have the windfall from surging power prices. we are starting to get slightly clearer picture. anna: and that is interesting that you mentioned that rate of renewable energy because she has ruled out rolling more taxes, so how viable is the plan? >> there ar

broadcom, another chipmaker come up 1.3%. unlike nvidia, they seem to be avoiding the slump.hey did announce a positive revenue forecast for the fourth quarter. twitter not doing much in the post market. it didn't do much today. in its intraday trading either. they did announce the edit button. we will be watching the stock for movement but so far, not a lot of movement. emily: all right. emily: fail. thank you for that update. twitter launching the edit button for the first time after years and years of debate. here to tell us more, kurt wagner. this is only a test right now for paying subscribers. >> you get a 30 minutes timer. once you post your tweet, you will have 30 minutes to go and make edits and change before it gets locked more permanently. other users will be able to see a label to shows the tweet has been edited. they will be able to click that to see prior versions. there's a little bit of a track record. to your point, it is only available on twitter blue. you have to currently be a subscriber in order to get access when they roll it out. that could change in th

expects strong demand from businesses going digital to offset the slowdown in the chip industry broadcomakes chips for data centers and routers giving it an edge over rivals with more exposure to pcs and smartphones. and then pager duty with the second quarter revenue beating estimates. shares are up 8% finally, lululemon rallying after beating forecast sales rose 30% in america. lululemon is raising guidance saying it hasn't seen a shift in customer spending habits it is up nearly 10% in the pre-market as you can see. down 17% or so year to date. >>> still on deck here on "worldwide exchange. apple facing the unionization wave whether they could soon face a vote by woerrks. that's next. worldwide future are flat. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. another busy day. and of course it is -elp you're a cio in 2022. so what's on the agenda? you guys have a look at that and see... morning security briefing

challenges you have a geopolitical risk that will correct because it's being void by that, and then broadcom, you can sit and no guarantee good yield with good balance sheets and business models that are sustainable. that's the new theme >> so dividend stocks have out performed the s&p 500 broadly. we're not talking in any way, shape or form here about massive out performance. the vig is down 8% year to date. i am not talking about ridiculous out performance, and it could be counterintuitive as well, and you are looking for yield, but now there's alternatives for yield in the fixed income market. if you think rates are going to go up, should i still be hunting for yield and dividend stocks. >> there has been a lot, and i think one of the things you are seeing is an expression of the fact that the dividend indexes versus the s&p 500, there's certainly less profitability or low profitability companies, and our view is that we are looking for dividends that could grow over time. to your point, i think one of the things we are seeing is you could see, actually, a rotation over to dividend stocks

>> broadcom is training roughly with earning ands pays you -f% dividend and growing 6% annually and what's hurting them is not trying up and they have a $31 billion backlog and china has agreements with them they can't cancel it. the problem with broadcon looking at apple. this market is kristin by the ets and apple is one of the biggest in the s&p at 7.1%. when apple goes, it'll take the chips with it. if you look at broadcon down about 30% off the highs and 12 times earnings and 3.7% and growing and business year over year has grown 30% and reported numbers that were spectacular but this is a market moving in sympathy. you cannot have the largest stock in the s&p that's a technology in nasdaq and in that goes, it's taking all technology stocks down with it. liz: i want to look at apple's stock because in the last let's call it 1.5 minutes -- less than that of trade here, it's starting to move here. it's down just under 5% but i don't know if these are, you know, people who are scooping up at a cheaper price, but as you look at overall market picture, where do you see it going? we had a r

sew we like broadcom. they're seeing acceleration in their cloud and enterprise business.harles: yeah. >> on the chip side in the fourth quarter. -- where -- charles: i would just pick up on that because they had a remarkable quarter, folks. this is what you got to remember. these companies told you they were killing it if their stock comes down, guess what? it might be a gift. nancy, david, critical day. thank you so much for your expert tease. talk to you again soon. love to hear from you, we love your questions or comment. tweet me: @cvpayne. steven said where do people want to be on the other side presumed recession? expecting losses over the next six to 18 months, where best to go to position one self for recovery? steven, the most important thing be nimble and selective. do not panic. it will not be as bad as you think. the buying opportunity will come when everyone else is selling. meanwhile legendary ray trader larry williams is here. he will give us some of his secrets of success. you will want to hear this. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ at fidelity, your dedicated adviso

. >>> look at lulu lemon, there with the tech names, gut check on chips, shared of broadcom up this morning, the company beating top and bottom tanks to robust demand across cloud, service provider and enterprise, also issuing strong guidance expecting demand to continue into q4. and then there's nvidia, hitting 52 week lows but cathie wood is buying, scooping up almost $32 million worth of the name, dee. >> i mean, it has fallen a lot so -- >>> meanwhile, volatile morning for pagerduty after a big pop on better than expected quarterly results, 7% jump in total paid customers compared to a year ago, and issuing strong guidance ceo jennifer tejada joins us to discuss. good morning, it's good to see you. >> good morning, grade to see you too, deirdre. >> the call, duration extension for larger deals, could you give us more color, what kind of budget scrutiny are you guys seeing at the moment >> we continue to execute really well in the quarter. i'm proud of the results we delivered, growth up 34% this is our fourth quarter at or above 32% growth with significant operating margin improvements,

we're just getting started here at post 9 at the new york stock exchange and it is good to be back broadcomwe'll have those reports the moment they drop and the most important things you need to know as an investor in the meantime let's get right to our talk of tape. september is a historically hard

breaking earnings coming, too, you're not going to want to miss lululemon reporting in "overtime" and broadcomspace is under fire of late this is going to be the most recent read for all of you on the back of what's been a real flurry of negative news around that space so we'll see what they deliver i'll see all of you, i hope,a few hours' time. some final trades and you have a little bit of time to give me more reasoning on why you like what you do. keri >> i pick cme group. cme benefits from volatility they run the biggest exchange for derivatives and, of course being commodities. and they will have higher earnings than expected if this continues for the rest of the year, earnings estimates have been increasing and so we think that it's a stock that over the next couple of quarters will outperform and it hasn't been a good performer this year it's down year to date that's my pick today. >> good stuff. thank you for that jason snipe? >> yes, i like abbvie here i think it's important to take a defensive posture in a very difficult market again, 8% free cash flow yield dividend yield of a littl

so far we have seen blockbuster deals from microsoft, 69 billion for activision, broadcom vmware, 61 billion along with smaller deals. private equity firms like vista. google koopg up mandiant for six. the question for investors is who is next. adobe's productivity play could spell chdanger for for when you consider the concurrent pressure to buy back shares. how does buyback and m&a co-exist in this environment >> yeah, and i'm not saying asana or sam sarah are going to do deals they are found are led i was talking to the founder and ceo of sam sarah a couple of days ago it's interesting the reason why the deals are happening. we talked about the defensive and aggressive nature of this adobe deal for figma opening up new markets, maybe transitioning some existing users who are out there in the marketplace into a deeper relationship with their software if you look at pro core, for example, which is in construction management cloud and saas and look at something like an autodesk, which is in another part of that value chain, you can see how some of these things could hypothetically fi

. >>> all right, broadcom bouncing higher today the after semiconductor maker beat analyst estimates provided a better than expected outlook for its october quarter. high demand for cloud service providers helped boost revenue for the quarter. we were just talking about that in the last segment. that stock up almost 1.75%. and ford is actually down but just slightly. the automaker reported year-over-year sales growth 27%, electric vehicle sales up a whopping 307%. including the sale of 2300 of its, the big guy, you call it, the f-150 lightning if evs. they're gorgeous, just gotta say that. ford had to issue two separate recalls in this week that affected about half a million vehicles. still, you've got to check out the lightning, it's cool. >>> all right, sky-high inflation wilting even the most beautiful things. the ceo of 1-800-flowers.com here to tell us how sending that bouquet to the one that you love comes with even more of a financial arrangement. and let's take a look at crypto as we go to break with, get you off those markets for a minute. bitcoin still below $20,000, and et

ahead of us because we have the double ordering and we haven't begun to see it that much i think broadcoms a special situation. you know my take on tech i have value, some growth. ibm, meta, and those trading at times estimates. they've simplified the story and on the growth side i only own two names. they both continue to crush it they've been doing a lot of nna. i'm selective within tech, but i have my eyes open obviously on any bigger pullbacks not here >> yeah, i have my eyes open, too, at the bottom right corner of your screen, everybody, where the dow is down 900. jason snipe, the issue of buying this pullback, which is rather dramatic in some of the stocks you own. >> absolutely, scott so i think for me i think it's hard to buy the dip here with a fed that's very much engaged you mentioned earlier, you know, apple trading at 25 times with a market at 17.5 you know, it's hard to buy names or buy the dip i should say right now. but, you know, there are areas as stef mentioned there are areas of i like in tech. cyber security is a place i really like, palo alto, 25% revenue growth in

sector are the growthier stef oil has been killed all week, metals and mining, semiconductors strong, broadcom okay, so they tend to move inseriously. cathie wood's ark innovation started off strong now it's down. health care has been lagging it's not been a good week for energy global demand has been perceived to be lower. but today's reversing a bit. these are high beta names. they're all to the up side as to where we are right now, let's just call the jobs report, if you're a bull, looking for inflation to come down, i'll call it a step in the right direction. slower job growth, slower wage growth that's exactly what everybody wants, because it adds to the peak inflation data. it doesn't mean there's going to be rate cuts, but at least it adds to the peak inflation thesis what's nexts what's going to slowly add to this the cpi will come out on september 13th i don't usually pay that much attention to it, but i think it's -- next week, just one week from here, just this week alone we've have a number of major conferences. citi's glob tech conference. and what happens at they conferences is i

to see, decelerating demand, and for social spending is high and you see the chip demand stories, broadcoms up, and the sentiment is not an nvidia or devices. amd unchanged. we will see of the price action goes throughout the day. lululemon coming out and saying the higher income shoppers will bear the ones -- they're the ones they keep our company afloat. shares of 9.6%. it is the retail story but yes there is inflation, there are a retail inventory buildups but the higher income chopper rescuing that. moderna about unchanged as well, one high earlier in the session thanks to the omicron boosts which are hitting clinics across the country. per helps -- perhaps helping modernity bottom line. and bed, bath & beyond shares are down about 6%. the turnaround plan, still not impressing investors. tom: thanks so much. bed, bath & beyond i believe is one of the meme stocks. this is a joy for me personally because aerospace engineering matters. if you do aerospace engineering, you are denominator based, looking at the change in time. that has been the hallmark of record on economics --carl riccado