broadcom become the second but company everyone cares about in the crosshairs.luenced by the restrictions. we know nvidia was able to get around the bandwidth less performing gpu. but now there restrictions are more on the wrist in the type of trips restricted -- more onerus on the type of chips restricted. alix: maybe tit for tat before reason. what does vmware do if it is blocked? >> with any antitrust review and it goes to jurisdictions by jurisdiction, they have cleared all the other jurisdictions so they can come up with remedies around what they want, what the chinese regulators want in closing the deal so they can do remedies. but i think the timing of it is influenced by u.s. announcing restrictions on nvidia gpu's and that is probably playing into this. guy: let's turn to nvidia. nvidia pushing back strongly on the impact these rejections are going to have on the future developments for the chips. walk with you the impact you think to see. mandeep: think of it this way. with the patience of ai is moving, everyone wants to train their large land richemon

broadcom is positive and the like. what about tesla here? and, more importantly than tesla specifically, its importance right now to the nasdaq, which you're betting big on. >> it's the first step into understanding what the mega cap names are going to be reporting. i think with tesla, it's about price momentum versus the fundamentals. the fundamentals are on retreat, they're cutting prices so the revenue estimates are down, bryn can correct me if i'm wrong, i think 50% for the quarter, and i think bryn is right. it's about the margins, about the automotive gross margins, do they fall below 20% which there are some expectations they're going to and an environment you're heavily discounting the price of your cars. that doesn't speak towards strong fundamentals. unfortunately for us it's been nothing more than studying momentum. i would almost categorize that as somewhat guilty with the need to prove their innocence. >> netflix today as well. i mean, these are important stocks to get out of the gate before the real parade starts of the mega of

we own broadcom. what do you think about this move, what speculation could suggest? >> the deal is supposed to close end of the month. again, to your point, we don't know if this is speculation, rumors or not. you need the guidance from companies. that's what you need to listen to. and to kristina's point, as it relates to m indnvidia, i would expect the company will guide to what the long term effect will be on chips in china. for vmware and broadcom you have to await for the company itself. >> kristina, thank you for bringing us the news in the chips space. we'll turn to the other big story, the number more than doubling expectations. steve liesman is here with us. steve, this was quite a strong report nearly across-the-board of weakness. >> reporter: overall strength and everybody expected by now the summer boon we've seen would have worked its way through. it hasn't, courtney. for the month of june, sustained itself and now we get the september data and what's happening, courtney, two things. one, people are marking up the gdp, not just for this quarter which i g

broadcom, uric -- down 2.5%.aid it would acquire the cloud computing company in a $61 billion cash and stock deal. the transaction could also be impacted by what we already told you, today's decision by the u.s. to further restrict the sale of nvidia's high-end chips designed specifically for the chinese market. >>> the u.s. department of commerce says the new rules are intended to close loopholes that popped up after last year's restrictions on a.i. chip exports went into effect. those earlier restrictions banned the sale of nvidia h-100. that is the processer of choice for a.i. firms here in the u.s. so chinese companies bought a slightly slower version call the h-800, but that's going to now be banned as well. so is as a i said throughout this hour, because nvidia's considered one of the seven sort of miracle stocks, we've got nvidia down 4.6%. off the lows of the session but down $21 to $43945 a share. intel's lower by 1.6%. advanced micro devices down 1.5%. and there you see vmware, there it is the, it is po

broadcom just got back to me and i'm told they still expect the deal to close october 30th. but what timing given the restrictions today. >> only two weeks to sort if that will be on track. kristina, thank you. >>> it's interesting, adam. do we have to look at this group, at least nvidia, maybe some of the other directly exposed ones as, look, for google, the entire world except for china is the end market, or friction we have to work our way through? did china front load chips or how do we sort it out? >> the immediate reaction were the same, no near term impact but might be medium or long term. it's all about time frame. nvidia, to me, has the best product in the early phases of a 10 to 15 year trend. of course the stock will be way more in two, three and five years. everyone i know wants the thing to go down 20% so they can buy some. it will never go down 20%. >> down close to 18% actually. >> i think they reported -- since they reported the whole nasdaq sold off, too. a relative underperformance of its peers. can china produce the same power and chips on their own? no. t

bro broadcom's core business did get weaker, but it's stronger, bridging the gap, so the numbers are fine the core numbers are reset, so it makes numbers easier. and then we'll see if they close vmware next week or not. if they manage to close that, that's not in the ummers even without those numbers, the stock is cheap i'm look at texas instruments, such a bad day in the mark, but it's up. they thought q4 was just modelled wrong, and we thought they would trend down, and they actually guided eight or nine points below, and you can back it out they were implicitly guiding gross margins at 60% or lower. though, it was funny yesterday, the bundling was horrible, outperformed to the broader sector i think there were enough structural headwinds that i understand what they're doing, and why. i think the time frame is fine over the next 12 months, it makes it challenging >> is there a best stock in your orbit that not enough people were talking about >> people kind of talk about everything >> well, not really. you know what i mean it's dominated by amd, nvidia, broadcom. >> the ones that a

br broadcom is getting wrapped up 55% of their revenues is going to be recurring. i think there are opportunities. you asked at the top of the show if you think -- if we think there's a rally into the end of the year, i absolutely do. i think the sentiment is washed out here you're looking at the s&p oscillator, you look at josh's rsi stuff. it's pointing to negative sentiment. i think the fed is done. even if they go one or two more times, they're done. they're in the ninth inning and we're not going into extra innings. i know you were going to ask me that peak rates, we are seeing peak rates. look at the bond market. look at gdp and pce and eci today. it's kind of like in a trading range right now, not exploding higher so i think you're starting to see a peak in rates as well. earnings are coming in better than expected. 2.5%, 3% isn't something to get so excited about but it isn't a negative >> so, jimmy, it's going to depend a lot on rates in terms of late-year rally the fed meeting is beginning today. nothing really expected. there's your market picture, ten y

you see broadcom today? >> some optimism about the vmware dealing getting done. it's helping the market pick look maybe a little bit better. >> quite a bit better. the equal weighted s&p is down a quarter percent. the question is whether you can bank on that relationship, just continuing to spiral higher, meaning the mega cap out performance over the average stock. you can right now above the former highs from 2020 and late 2021, in terms of nasdaq 100 relative to the average large cap stock. could we go higher? sure. at the beginning of the crash in 2000, we were like three or four times higher on a relative basis. so you can get wild, but i think it's a much healthier market if it backs and fells and you have some catchup by the cyclical areas of the market, the stuff that started to work, and it's happened both ways. it's not as if it has to necessarily break a certain direction. you're right, you know, the rotational action has insulated the index from worse wear and tear. it's kept what we've been going

but i can't tell what will happen if it doesn't i know this, broadcom is an inexpensive stock and hok tan is an excellent ceo and he will buy that stock hand over fist if he doesn't get his way with china i'm going to keith in my home state of pennsylvania. keith? >> caller: hello, mr. cramer, how you doing? >> i do, and it was greatly disappointing. but hey, that's philly for you sometimes. >> yeah, yeah. that's true. >> caller: hey, well, mr. cramer, i was wondering if you could give me some wisdom and insight into etsy? >> yeah. >> caller: you recommended it a couple of months ago, and it's been continually in the house of pain will things turn around for the company? thinking is a great question, because i think the company itself, down almost 50% represents great value i think josh silverman is an excellent executive. in the old days when we used to have takeovers, i would have said someone would have bought it here. i'm not going run away from etsy because i think it's one of a kind that said, one of a kind stocks go down too in this kind of market, at least for now the market h

>> the first question, i laid out our view which is the broadcom blissity based on the longstanding support that hamas has on iran and we don't have specific information that ties iran to this attack. at this time we don't have that information. we may gain that information in the hours and days ahead, but we don't presently have it and that's the answer to your first question with respect to intelligence. with respect to the various militia groups across the region, we do believe that they pose an urgent threat and that it is certainly distinctly possible that they choose to try to exploit or take advantage of the situation and we have been sending warnings that doing so would result in a firmer spot than consequences from the united states and that goes across the board, and we have been clear also in sending a message of deterrence through the movement of the care your strike group through the eastern mediterranean as well as through the assurance that we will sustain f-16s, f-35s in theater to be able to deal with any contingency that the united states might have to deal with in the day

we have to hear from broadcom. >> by the way on monday, i can't tell you how many arms call about vmdo you know? are they going to close this thing? are the chinese not going to let them close it? >> what do we know on vm ware, jim? >> i have to tell you -- was as adamant as any time i've ever heard. if this deal closes next week, he's not backing down. >> monday it could be. a lot of surprise investors if, in fact, that thing closes >> look at that, will you. vm ware such a quality company too. >> what do you have on mad tonight? >> i like weyerhauser. we have to see these are the kinds of things that fed chief powell wants to see. you know, i'm still -- i'm still committed to powell, to jassy, right, i'm committed to zuckerberg. >> yes. >> i'm committed to amy hood from microsoft. >> of course. >> and those are some of the people who came out ahead for me this week. >> i'm glad to hear that, jim. >> came out ahead. >> have a good weekend. >> you too. >> i will try. coming up more reaction to the amazon quarter the stock is up quite nicely as you see ov 6%. ept reer.5 in the u.s. we

mike was mentioning the sell-off in the mega cap names, amazon down 4%, broadcom is down, nvidia down near 3%. apple is not down quite as much but the whole area is being just pulled down. tesla is down 2% looking at all the stocks we talk about almost every day. today are buckling. mostly because they host the big five or super seven, even if you look at the peak since july, the profile of all three is vastly different whether you're looking at percentage performance, percentage of names above their 50 or 200-day moving average. it's still scoring relatively well i think right at 60% of members, behind energy, of course, the only defensive name since the market in july. you have to take more of a nuanced approach not just in the current sell-off, not when we get the next bounce but approach the market in any monolithic way, whether it's growth versus value. correlations are still low. you can take opportunities even in sell-offs like this to find what works well with an upcoming earnings season. >> how do you view what will happen in earnings season? we're going to shift our attentio

broadcom and software maker vmware say their merger is on track to close before the november deadlineceiving approval from the chinese regulators. the companies do not disclose how close they may be, but they have stated "there is no legal impediment in closing under u.s. regulations." the agreement between the camesa expires november 22, ed. ed: coming up on "bloomberg technology," all about ai regulation be in the spotlight we will speak to the general partner at crv next, and that a professor in the computer science department at stanford university and a big name the world of ai. this is "bloomberg technology." ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates, exemption certificates or filing returns. avalarahhh ahhh ahhh ahhh what do you see on the horizon? uncertainty? or opportunity. ou see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns...

we are watching broadcom shares followed more than 1.8%.worries of the proposed merger. vmware saying it expects the merger to go through october 30. also watching the energy space, this is the place we've seen excitement in the market today. halliburton shares among those driving this index higher after barclays raising its price target to $55 for that name. brent trying to stay above $90 a barrel. we shall see. we have the israel-hamas war going on. we have that strong consumer. that is what we are playing yet in the markets. guy: simone foxman on what is happening with these markets. plenty still to come. we got united airlines out with numbers. we are going to turn back to the politics. president biden leaving for israel and the house of representatives is convening in a few minutes, noon new york time, because we need to figure out exactly what is happening with the story about whether or not jim jordan, the conservative from ohio, is going to be the next speaker. alix: bloomberg's kailey leinz is joining us on that. jim jordan. talk u

you see broadcom today? up near 5%.y, but then i saw some headlines about the vm ware deal. that's what is moving the stock you think? >> yeah, absolutely. i like the deal. it's going to increase their software mix and incurring revenue mix, as well. at 24 times forward, the stock is trading at a big discount. you can see that multiple rise if they do get the approval. >> what is your find trade, stef? >> amazon. prime day is going really well. aws is stabilizing and the retail margins are just getting going. >> jimmy, what about you? >> cisco systems is a goldilocks stock. it's got great growth, little drama. >> do you miss farmer jim? >> i think i prefer farmer jim. >> jason? >> palo alto networks. the stock keeps going up. >> and reits, they've been up the last couple of days. >> see you in a couple of hours for "closing bell." "the exchange" starts right now. ♪ ♪ >> thank you very much, scott. welcome to "the exchange." i'm kelly evans. here's what is ahead. yields are higher after today's consumer prices came in sl

broadcom almost 7%. tesla almost 8%. >> the leadership remains that until further disproven. cyclical stuff cheap enough? >> you guys are, like, primo value players, right, sarat? the perceived value areas. >> i will consistently say if the -- if we get an economy that's more of a soft landing, the value stocks will do well. >> but are you playing for that now? forget about later. >> i'm playing for it now. >> i will help my friend here. absolutely. i don't think there's any question whether it's airlines or material stock, financials or energy and it's a call on the economy. the atlanta fed have it at 5.1%. is that too high? of course it is. and there's momentum to that. they're dirt cheap. >> energy in a week is nothing. it's flat. >> exactly. >> it gave a lot of it back. you could make the case, wow, after this new risk introduced in the middle east -- >> not getting into the commodity pricing of the stock. whatever time frame you want to use for energy. you can call it a stalwart outperformer. >> good stuff. that's mike santoli with his "midday word." >>> the pepsi pop, s

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if you look at broadcom, it looks expensive. but valuation, was it reasonable.en you compare it to some of those other names. so this is a stock that's had a tremendous run but quite frankly given devaluation i think the report in december. this could continue to grow and higher. >> tim, what do you think? >> i'll talk a little bit about at&t. and i'll talk about the perilous folks. you are seeing really solid trends -- three solid post paid and at&t still beating t-mobile by a lot. -- i will say the competitive landscape seems to have calmed out a little bit, but again, people are holding on to their phones longer. there is less pressure. term rates are so low, i think, at&t mobile has stolen so much better for everybody. but for at&t we don't about that sharp recovery. really a does no-show. it's going to be a decent quarter and the core business. >> steve, how about you? >> i'll talk about tesla since the other gentlemen cover the other two. tesla, everybody support about deliveries. what we've seen in the last couple of weeks, last month, tyler, is their abi

broadcom and vmware say their $ 61 billion merger is on track to close before a november 26 deadline. say how close they might be for an approval from chinese regulators, their last major hurdle, but they say there is no legal impediment under u.s. merger regulations. petrochina says its third-quarter profit rose 21%, despite china's lackluster economic recovery. net income jumped more than $1 billion from a year ago following the firm's record profit the first half of this year. petrochina fitted from discounted crew from russia as well as beijing's relaxation of natural gas price controls. bank of china saw 3% increase in its third-quarter profits. net profit rose to $7.5 billion while net interest margin narrowed. china's $56 trillion banking industry has been battling shrinking margins and rising bad loans since they were drafted by authorities to backstop the economy and prevent spillover from its sluggish property sector. haidi: gm has reached a tentative deal with the auto workers union to end a six-week strike that upended u.s. auto production. the terms still need to be appro

again, broadcom says, no. and their expectation is they're going to be closing this deal within the next two weeks but the market seems to be thinking differently when you think about $158 stock and a $183 price potentially. not very far away. >> on the bullish side of the ledger for china today, we do have las vegas sanldds as one o the biggest gainers in the s&p 500. the company swung pack to a profit in the end of the third quarter. last year, they were at a loss and things were shut down. the commentary recovery story is happening in singapore. the ceo said it's not fully there in terms of air travel and accessibility, but it's on its way, and i think what also might be happening to the stock as we see here is authorization of a $2 billion buyback plan. that stock down this year into the print getting a nice lift today. there was also that really bearish -- did you see that article in the "wall street journal" about china and the debt problems and how in a normal economy, you might be more concerned about

tesla is in the red as is meta, alphabet, amazon, broadcom barely hanging on. >> one of the things that the micro cap etf is kind of in freefall. they are the ones that generate cash and don't have to soak up capital and liquidity. i guess that still matters for now. to me it's about macro for the moment is, but investors deeply want to i think turn their sights to company specific stuff starting at about a weeks a time when you start to get the earnings coming through and all that. those macro worries up with the russell. so keep your eyes there. looks like we're going to go out modestly in the red. sets us up for tomorrow and you up for "o.t." >> stocks ending fractionally lower but pairing the worse of the losses in today's trading as treasury yields edged lower. that is the scorecard on wall street. the action just getting started. i'm morgan brennan. jon fortt will join us with highlights from his conversation with hedge fund founder jeff oven from inclusive capital partners. ahead this hour, katie stockton breaks down the key levels to watch in thep s&p 500 s&p follow

two out of the three might be on -- broadcom is holding in there, but by a thread.the smh rolls over, the broader market has to follow. >> you talk about geopolitical, that's the thing that i'm worried most about, but the market can't quantify that. i think the chip space would be impacted to a very large extent -- >> even more so than it has been? >> i think things are going to get worse before they get better. nvidia is up 188% year to date, so, if you look at where it's support, it's closer to 400 than 420. bull if but if you look at micron, micron was looked to be affected by china to the tune of 20% of its revenue. it's probably more like 13%. look at the chart. it's the same year to date performance at intel, but micron's chart looks better to me, if you are looking for a cheaper way to play the chip space that's more d-ram dependent versus nan. >>> there's a lot more "fast money" to come. here's what's coming up next. >>> spilling the tea. and a netflix fee. a cellular surge for at&t, as earnings come in hot. and a huge boost for netflix, as more price hikes

broadcom and vmware say their merger is on track to close before november 26, the deadline.companies did not say how close they might be to an approval from chinese regulators, their last major hurdle to completing the deal. but they say there is no legal impediment under u.s. merger regulations. quick look at u.s. futures, dow futures turned around a few minutes ago. s&p 500 futures may be signaling we will see some kind of decline tomorrow after a bounce out of correction territory today. the s&p rallied 1.2% in the monday session. plenty more to come on daybreak: asia. this is bloomberg. ♪ >> we are getting japanese economic data. the jobless rate at 2.6% as anticipated, a little bit less tight than the 2.7% of the previous month. japan's jobless rate coming in at 2.6% in september. we also have the job to applicant ratio, unchanged at 1.29. that means 120 nine jobs offered in september for every 100 applicants. the bank of japan will be watching this very closely. a tight job market key to higher wages. that's an area the governor and prime minister are watching closely.

remember it is in a deal to be acquired by broadcom.he expectation is that's not far away, but will china try to put up some problems for them? let's leave it at that. i don't want to go too far here. take a look at what that looks like, in terms of approvals, what will it mean? what do they need to get there? >> will there be a response from china in some way to this latest action by the u.s. when it comes to advanced ai chips. sara, that's one thing i'm keeping an eye on. the other is a hostile in the hotel industry. talking about choice hotels proposing to acquire wyndham, 90 bucks a share. it's a cash and stock deal. 4950 in cash, the remainder in shares of choice. never that easy to push a hostile when a lot of it is made up of stock. the ceo of choice was a guest earlier on "squawk box." he talked about what they're willing to pay and why they were willing to pay that $90 number. take a listen. >> over the past five years since they've been a separate stand-alone company, we've had effectively a two times multiple advantage over t

but that could happen and if that happens, then broadcom, the travel trust in, you would raise numberswhich is why we bought it. they could buy back or raise it. it's bad day for the market because jay powell is a forgiving man and doesn't -- he's worried about the working person. this is -- it's a secular they are really huge, by the way in ai, they partnered, put air quotes around that, with -- with -- with jensen huang and nvidia. no more than marvel technology. >> we'll watch that one. interesting headline. china invited our defense secretary to their defense forum which jpmorgan said biggest olive branch of the year? >> absolutely. i think there's movement. i think there's some movement because i think that there's a recognition that maybe things are getting out of control. i still think that kissinger's talk must be watched. because -- this is -- kissinger more with it at 100 than most at 50 and basically saying is, there's got to be some movement here. and i think that's movement. i want movement. i've been very -- only because i want movement. not because i don't like the chine

. >> you know, the folks jim has talked about as well, this is a deal to require broadcom that thereas a lot of doubt because they had not received antitrust from the chinese they still haven't, and this morning we did a get a press release very early saying, we expect we'll close it soon. >> very soon >> soon. my understanding, jim, is the top ten or the ceo who has spent a lot of time in china and been there recently believes this is not political which would in many ways perhaps signal a more significant delay, but is bureaucratic, it's simply perhaps another agency taking their time working its way through, and therefore soon means in the next few days now i would also add i don't care how deep you think you are in china in terms of understanding what's going on. it's still a black box. >> very true. >> he expected to be able to close today and that was wrong. >> i agree with you, and let's use a chess neanalogy. i don't think that hock tan is a pawn in this, u.s. versus china. i do believe there's a tremendous amount of paperwork to be done however, i think that if you want to t

out the turmoil we think is likely to persist a little while longer, whether that's a cisco or a broadcom>> would you ever tell your clients to put a lot of money in bonds, long-duration bonds? or do you just like stocks all the time? >> no. we do both here. i help manage the balance strategy. clients with their adviadvisers whether in-house or with advisers are able to select their own equity fixed mixture. right now our fixed income team is having a lot of opportunities that they're finding doing their credit analysis. we're not long duration here. we're actually maybe duration of three, four, fivish years. right now you don't want to go too long because interest rates are going to come down at some point. that could be a good thing. you want to lock in some yield while you can. so that sort of duration a little shorter than the average corporate bond is a good opportunity. >> got to go, joanne, thanks. time for "squawk on the street." make sure to join us tomorrow. ♪ >>> good tuesday morning. welcome to "squawk on the street." i'm david faber with jim cramer. carl has an assignment tod