that is what cisco does. >> foreign markets often view u.s. espionage and cisco as related. whether fairly or not. that incredible picture of nsa personnel having basically stolen cisco gear, put their software on it, and put it in the sales. a rather incredible photo. >> first of all, none of us know for sure the facts around that. it was a picture, -- none of us know the facts for sure. the major danger there is, if we do not get trust in our supply chain, if businesses and governments -- and remember, 30% of my components come out of china. if our governments do not come together, we have a big problem. secondly, you have no idea what a government does. all espionage is done in different ways. the easiest way to get into a network is a systems administrator. they are the ones who have the keys. they use the same password on a system that they do on facebook. the bad guys get it. the vast majority of espionage issues will be done by employees rogue nation states and , candidly, organized crime. we are going to try to transition to be the number one security company. today,

this a perfect time for cisco because cisco thrives on market transitions. if you look at our history every time there has been a market transition, that is when bend and place to our favor. because this is where enterprises and businesses that will be able to become digital companies and working with service providers be able to connect that, that is the area we have a strengthened. thank you. >> the communicators is on location in las vegas for the annual international consumer technology show. the largest trade show in the world. if you're interested in seeing more of our programming to meet conducted c-span.org -- you can go to c-span.org. >> c-span, created 35 years ago and brought to you

start with john chambers and cisco. if you go back to the 1990s, you'll find one tech company that understood the year. it wasn't intel or microsoft. it was cisco. that's because the iment net was just coming to its own back then. if you were running an enterprise, you wanted to get on the internet or have an internet strategy. you made one phone call. you picked up the phone and called john chambers ceo cisco. i remember john coming by my hedge fund back then to talk about his stock. next thing you know, i was a cisco customer. then i started "the street.com", there wasn't anyone else to turn to because cisco offered a one stop end to end solution to your problems. whether you were shop with ten people or shop with 10,000 people. including every major phone company, the real super highway for remember traffic at the time. that is how cisco became the company with the largest market capitalization in the world. since the heavy super charge days they've had periods of excellent performance and others cyclical in nature.

of cisco. back in a moment. stay with us. >> rose: >> rose: richard price a novelist and screen writer known detective books. he returns with a novel called "the whites," takes a look at new york city cops and the cases that got away from them. pleased to have richard price back at this table welcome. >> thank you. >> rose: stephen king in terms of a blurb on the back of the book, the "the whites" is grim and gutsy and impossible to put down. i began being fascinated and ended being deeply moved. call him price or brandt, he knows everything about police life and plenty about friendship. what your friends do for you and what they sometimes do to you. critics have also been equally full of praise for you. what is it about you and crime? >> i don't know. i'm of the feeling that my instinct has always been to go to an area like the lower east side or harlem or jersey city and what i get interested in is the panorama of theiary and i take thousands and thousands of notes. how do i get all of this in a book without i

speaking of sexy, cisco has been around for 31 years. company is hoping to capitalize on what john chambers called the dawn of the digital era. chambers says it is an era of unprecedented opportunity, but one that will quickly sort out winners and losers. chambers insists that cisco will not be one of those losers. erik schatzker sat down with chambers for what i thought -- i have interview john chambers many times. that was a great interview you had with him today. erik: thank you very much. john chambers is extremely bullish. there are or there have been periods in chambers' career where he has been bullish, and there have been good reasons for it, including more or less all of the 1990's which were extremely kind to cisco and its shareholders, but chambers said cisco has an opportunity today that is almost exactly like what it had back at the dawn of the 1990's, what he calls the information age, which if you think about it and what's is going accomplished ring that decade is pretty remarkable, and almost hard to believe. he is insist

you talk to -- cisco is my partner.ou talk to a third political party, head of finance and they say cisco is our partner. you make it known. you are talk to republicans and that support democrats sometimes. it does not matter which party it is. people grasp what can occur. once you get the references, it gets exciting. you are able to say this was general motors does or what was done in israel. and then you have trust. we have a lot of weaknesses. >> let's talk about the weaknesses. everything sounds exciting. the world is changing probably for the better. and the s&p at the large trades at 17. the market has spoken. it is given a referendum on the vision for cisco's sake of what you want to do with the company. why is there so little multiple happiness for the on your plate and i will like to sell you a connected port. the markets are were read about, we are good on transition. the question is, can we get revenue growth in this area? a small company of 20 people can come right at us. on the other hand, every time, we g

cisco. the networking giant that's all about the physical backbone of the internet as well as being a terrific play on online security. cisco just reported a truly terrific quarter after the close. delivering off a 51 cent basis. higher than expected revenues. up 7% year over year. robust for switchers and reuters. it was put simply extraordinary. plus the company gave you a dividend boost which means the stock yields north of 3%. hard to find right now. cisco has them both, which is why i think the stock can trade higher. let's find out more about the quarter and where his company is headed. welcome back to "mad money." >> jim, it's a pleasure to be with you again, but you've got to call me john. >> fair enough john. a lot of people were moaning that united states isn't that strong. many people are bemoaning europe. you had incredible strength in the united states, but amazing strength in europe. what are you offering the other guys don't have? >> well, jim i think you nailed it. i watched

cisco and china can go either way. i wish i could tell you i control my own destiny there but i cannot. they're very smart and predictable. if our countries were able to work out issues, even security issues, there has to be rules of the road on what we will do versus germany and versus china and we have to agree on this. it is not an industry issue in my opinion at all. china could go either way. it is a wildcard. i like india. if you're betting on an emerging market right now, they have the imagination, and the leader has the equivalent of both the house and senate in his terms. if i were betting on one emerging country right now, i would that big-time on india. china? they need 7% to 8% growth. >> do you view -- how would you rate them on a scale of free and open trade with cisco right now? >> [indiscernible] our business is up 30%. having said that, we just achieved one of the top social awards given out in beijing for what we did in the szechuan earthquake. 374,000 people were injured 85,000 died. the chinese know

cisco earned 53 cents a share, 2 cents better than estimates. the company brought in almost $2 billion for revenue topping expectations. cisco also increased its quarterly dividend to 21 cents and shares initially higher on the report. john forth with us. >> i think the one key takeaway with this report is that cisco is seeing stronger growth than e oth peers that sell technology to big companies and it's seeing it even in places where you wouldn't expect it in southern europe. john chambers optimism on the call almost comical, talking about how he ran in the mo then lifted weights. just couldn't contain himself. normally he says with all appropriate caveats he's going to say something positive. he still said stuff like that but there was a lot of optimism here. for a community of investors who saw quite a bit of taking down of guidance given the strong dollar throughout earnings season. >> this is ase hardware company, right? basically. >> they've got quite a bit of software too built in their system. kind of like apple that kinds to try the se

. >> cisco going in the opposite direction.ohn chambers reaction in a moment. >> expedia buying the rival orbitz. both stocks are spiking higher. but first up shares of tesla down sharply after a quarter operating loss of revenues also missed. they say weather, shipping problems affecting deliveryiesdeliveries. tesla ceo elon musk said he's optimistic business will improve in china. >> i have confidence that by the end of the year we'll be in really good shape in china. i'm pretty optimistic about it. i don't think there's some sort of unique missing fissure there. >> earnings revenue, margin expenses cap x, cash flow and then your comparison for them today is no good. >> yeah. the 40th anniversary of the "saturday night live" and the conference call needs to be included in the spoof of how we do business on wall street. a favorite line and customers vacationing, only their customers vacationed and no one else's but the financial -- this is funny. our financials are better than they appear. not worse. that's really the key poin

one thing you can say is that you can't look at cisco and say it is too large.nce upon a time, we thought company's of that size were too large and then carl icahn knocked on tim cook's door. it seems apple was responsive to the kinds of demands that carl icahn made. john chambers and says that will not happen to cisco because he's listening to his shareholders. >> more "bloomberg west" right after this. >> this is "bloomberg west." to our special focus this hour the gaming industry. digging deeper into one hit wonders. niccolo de masi of glu mobile came all the way down the street to be my anchor buddy today. i want to talk about glu mobile. it's really interesting. you have gone from one hit too many hits. -- to many hits. >> we are starting a hollywood trend. celebrities are trying to work directly with people like ourselves to reach their fans and cut out studios, labels other traditional intermediaries. kim is the first of many. we've also sign katy perry. >> $23 million in sales -- $223 million in sales. talk to me about the game. my nine-year-old is limit

you talk to -- cisco is my partner. you talk to a third political party, head of finance and they say cisco is our partner. you make it known. you are talk to republicans and that support democrats sometimes. it does not matter which party it is. people grasp what can occur. once you get the references, it gets exciting. you are able to say this was general motors does or what was done in israel. and then you have trust. we have a lot of weaknesses. >> let's talk about the weaknesses. everything sounds exciting. the world is changing probably for the better. and the s&p at the large trades at 17. the market has spoken. it is given a referendum on the vision for cisco's sake of what you want to do with the company. why is there so little multiple happiness for the company? >> i will address it that way. [laughter] let's go with it. we outperformed the market dramatically this year. we're up about 10% and as dramatically better than the dow. secondly, if you watch our earnings, they are up threefold over the last decade.

powered today by a 9% move in cisco. a deal in the online travel industry and stocks like en envidia. the infamous level of 5,000. the number is synonymous with the dotcom bubble that peaked in march of 2000 and went bust fast. the technology sector is a lot different now than it was then. bertha coombs takes a look. >> reporter: health care anovalan in the nasdaq composite. investor appetite for new tech stocks helped push tin dex within 5% of all time ether net bubble high. at the risk of sounding trite, the new tech boom is different. >> in 2000 you had a power ball move in the nasdaq that s following the tail end of this 15 year secular bull market and now it's been a much steadier healthy move into 5,000 on what we see as the early stages of a new secular bull market. >> reporter: amo biggest differences? bioteches now the biggest driver of gains up 35% in 2014 as companies like gilead have brought big drugs to markets. another big difference? tech valuations. microsoft the biggest weight in the nasdaq 15 years ago

cisco is back with a vengeance. >> the internet of things is one of the four fronts for cisco as a company- foreforonts for cisco as a company. i recently got a device that can turn on my heater on the way home, can keep the washing machine going. what kind of internet of things stop is installed in the chambers' home? >> everything you just that. everything is tied to a central location. we control our heating, cooling the tvs and what you are saying you nailed. every home, every car, every company, every city, every company will become digital. cisco is at the inflection point on that. with the internet of things, we not only tie the data together but we analyze it and get the right information at the right time. no better example than gm. we recently won an enterprise software license from the cloud across the board to security. the first time that we have done that. gm has a leadership team that is reinventing itself. cisco just won the supplier of the year award with them. >> i am so sorry, we have to go to commercial. you know i love the internet of things. great quarter. john chambe

and cisco. all out with earnings after the bell. bring them to you as soon as they cross and go behind the numbers for you. that's straight ahead. asian debt that recognizes the shift in the global economy. you know, the kind that capitalizes on diversity across the credit spectrum and gets exposure to frontier and emerging markets. if you convert 4-quarter p/e of the s&p 500, its yield is doing a lot better... if you've had to become your own investment expert, maybe it's time for bny mellon, a different kind of wealth manager ...and black swans are unpredictable. liz: we're ending the hour just as we began with it only nasdaq. david: it was one of those days when you look at specific stocks that is what we'll dough with nicole. liz: nicole, tesla, stock moved today. we're waiting on that. >> we rin deed. we're waiting for tesla, cisco and whole foods. the stock is down is .7% at 212.78. that will be a featured stock tonight and tomorrow no doubt. david: one stock we've been featuring all day at bottom right-hand side of your scree

cisco earnings which we'll talk about.tart with tesla, shares tumbling after the company reported a quarterly operating loss with fewer vehicle deliveries than analysts expected however ceo elon musk sounded pretty confident on the conference call last night. take a listen. >> if you take this year's revenue around $6 billion or thereabouts and if we're able to maintain a growth rate for ten years, and achieve a profitability number, and have a 20 p/e our monthly cap would be basically the same as apple's today. >> henry, i have to know what you thought about his ambitions, right, and the capability of investors to keep up and have patience for the ambitions. >> tesla has always been a future story. you have to believe in lots of things that are way too far out to sea now going right to justify the price. that is some heroic analysis that elon brought to the table here. he's good. ceos talk about the long-term vision, what they can be worth, that's promming. apple generates $45 billion a year of profit, so to have apple's

. >> cisco boss john chambers going bruce willis saying he's killing it now.s he blowing smoke or right? our traders will separate fact from fiction. we begin with the markets, stocks higher on the cease-fire in ukraine, some very interesting deal news here at home, yet another run for apple, another letter from carl icahn, a conversation with me, we'll get into in a minute and perhaps even prospects of a deal in greece. joe, you a lot of things coming together. >> you do. i think the macro cloud, the uncertainty that was so much pervasive during january has kind of lifted, seems as though this is a repeat of 2014 where we had to deal with issues in january and they smooth out and february is clear sailing once again. i think what that does and what it sets up for is it allows investors money managers and traders alike to focus on bottom up type names and it seems as though right now the growth names are the ones that are being rewarded. the material names, the technology names, you can go back to stock picking, macro isn't as important. that's a good thing. >

this is a perfect time for cisco, because cisco thrives on market transitions. if you look at our history that's where we've caught the market at the bend and really accelerated. so now with the internet of everything, we're actually, i feel, at this market transition and inflection point which i think plays to our favor because this is where enterprises or businesses who are going to be adopting operational technology or becoming digital companies and working with service providers to be able to connect that, that's the area that we actually have a strength in. and that ooh's a perfect -- that's a perfect sweet spot for cisco. >> host: and kelly ahuja is the senior vice president for cisco, thank you for your time. >> guest: thank you. >> host: constituters is in las vegas -- "the communicators" is in will las vegas for the ces show largest trade show in the world. if you're interested in see aing more of our programming go to c-span.org/communicators. >> c-span, created by america's cable companies 35 years ago and brought to you as a mix service by your -- as

a new threat to cisco.k coming out today saying they have designed even further a piece of networking equipment. the reason why this is important is what facebook tends to do it's done to some extent with servers and now also with networking equipment, is they design this equipment for their own huge data centers and then they allow these blueprints to be used for free by anybody who wants to use them. microsoft, facebook the likes of apple, google and others are huge customers now in this cloud era and there are certain areas they're choosing to come mod advertise. you might hear questions from anesthetists to cisco about players now like facebook coming in with their own designs threatening to come momd advertise a high margin business. >> will that be your foremost question? >> i think jon hit the nail on the head. there's a convergence across the data center with cyber security with next gen data center and investors are really starting to look into 2015 and trying to understand which path this is going

the best antitrust regulators are suing cisco to prevent a takeover of u.s. foods. cisco in u.s. foods are the largest companies in the broad line food market. customers include schools, hospitals, restaurants and hotels. sysco says it would fight the case in court. pentagon is planning an adventure to retake iraq's second-largest city from the islamic state. up to 25,000 iraqi troops will be sent to recapture the city of mosul. u.s. advisors will have to train the iraqi soldiers. there are up to 2000 islamic state fighters in mosul. in a few moments angela merkel and francois hollande are going to meet in paris to discuss the situation in ukraine. we are expecting them to speak at any moment and it comes one year ago since more than 50 protesters were killed in independence square. hans nichols is live in brussels. we are also following the showdown on greece as finance ministers work to strike that deal. as we just heard, one eu official says it is not likely we will see a deal tonight. >> we have three bits of important news in last hour. the eu official is saying it is unlike

starbucks howard schultz, cisco's john chambers and lorkl. still at the controls today. >> the reason they've lasted is because they've learned to adapt. >> reporter: they aren't afraid and innovators like besos. and change the way we think about coffee. ellis changed corporations by software bundling it rather than selling it piecemeal. >> is leadership important? >> i think it's really important. >> reporter: these ceos rare not only because of long-term success but long terms they've served their companies. the conference takes the average ten year at 9.7 years. these four have run their companies for 20 years or more. in part because they understand something very important according to professor bill cleffer. >> ceos not only look to maintain current portfolio of offerings but at the same time look to reinvent what it is they're doing because of what the future holds for them but their customers need. >> reporter: a serial entrepreneur besos is not afraid even with a relentless focus on creating customers happy. >> we've created a lot of

cisco ceo john chambers knows how to do it. you are going to hear from him in a few minutes from now. good morning, everybody. it is a friday here in new york city. >> stephanie ruhle. i was out sick yesterday. >> i would say that brendan greeley and lisa a berlitz filled in greatly. carts thanks for all the twitter love yesterday. -- >> think for all the twitter love yesterday. you were so nice yesterday. i'm going to step it up today. here is the bulletin with the top business stories of the morning. it is a showdown in brussels between greece and germany. european prime minister's are meeting right now to discuss the greeks request to extend financial grade for six months. the government has art economized on many issues. here, just an hour ago, we had this. >> i trust that we are going to have one. the greek government has gone the extra mile and we are expecting parliament to meet us halfway or 1/5 of the way. i have no doubt that this will be a very cordial discussion and , hopefully, at the end of this, we come out with

sued to block cisco's acquisition of u.s. boots -- foods. it would hurt competition and raise prices. the ftc making these comments today in a statement, also saying this combined cisco u.s. boots would control 75% of the national market for broad light distribution services. -- cisco-u.s. foods. cisco has tried to take steps to prevent this from happening. it has tried to sell some of the operation -- that does not seem to have placated the ftc. it is extremely rare for the ftc to sue in these sorts of situations. you look at some number of 2013 the only sued in 1% of the mergers and acquisitions that have been put before it. this is not a regular occurrence. look at the stock reaction we are seeing in sysco. overall, shares down 2% on the day. they have remained steadily down around those levels. perhaps this is something investors thought could be a possibility. mark: thank you. let's get you some of the day's top stories we are following at this hour. walmart will begin paying its u.s. hourly workers at least nine dollars

for cisco, that means a beat.want to hear what an optimistic ceo sounds like, take a listen to john chambers on the call here. >> our results this quarter, which were the best results in three years, reflects the increased relevancy of cisco around the world. the cisco brand is the strongest it's ever been. >> when cisco gave that guidance, the stock popped after hours. you can see it's up nearly 5%. part of the key here is order growth, which was up 5%, particularly strong in enterprise. it was up 10% now by contrast last quarter. growth overall was up just 1%. so chambers, a lot to be excited about there, and the guidance pretty excited. also the gross margin guidance, 61% to 62%. >> all right, john, thank you so much for that. john chambers, keep in mind, this is a guy who is pretty reticent when it comes the talking about the future. >> he was pretty excited. >> exactly. >> they put a few quarters together now. the stock has been steadily moving to the upside, pushing not that far away from the 52-week highs.

brendan: cisco has a bigger problem than apple did. cisco is facing an existential challenge.xes that sit at the heart of the internet. increasingly technology pushed by facebook and google, is at the edge of the network, instead of inboxes that cisco can sell. erik: john chambers would say, who owns the edge? cisco owns the edge. he talked plenty about yesterday. software defined networking will not be the death knell for cisco. virginie: i think things are moving very fast. i think with clouds and internet and things, as we discussed, and the ongoing need for security i think things are moving very fast. i see a company like cisco however, has the resilience and the talent to create innovation. will they do it? erik: or buy it? $40 million of his cash is trapped outside the united states. he cannot be a player in silicon valley if he does not have the money to spend. is that a problem? virginie: for me it all depends on valuation and growth gap. is this the best way to look? there is a convergence of technology not only with i.t. but health care and consumer and that is real

we will speak to the cisco facebook -- ceo john chambers. >>

these companies like cisco are not doing very well.nue growth in the last 12 months. i see john chambers talking about how well they are doing but if you have no revenue growth, i will not give you five stars. >> the software defined network -- cisco sells routers hardware. you have machines defining -- you cannot sell boxers and routers anymore. >> cisco's three-year dividend growth is 46.85%. i would call that financial engineering based on the revenue. >> cisco is -- >> this is the debate. >> cisco is bribing you as a potential investor. >> is ibm doing that? >> yeah. >> said minutes coming out today -- fed minutes coming out today? >> they do. at 2:00. i'm not sure how interesting these minutes will be. we are in a bit of a hold. the fed kept to their standard line that low inflation was due to transitory effects. they continue to see improvement in the economy. they are monitoring international developers. there is a debate withe -- >> several, a few, some come a couple -- how do we get -- how do we get to where we are parsing sev

cisco is other side of the coin. stock is hitting highs we haven't seen in seven years on their earnings so it is a tale of two names on the dow. david: i not only shop at whole foods but i am a stockholder, so i'm a happy guy today. the stock is way up on earnings. >> right. that's a new high. only one-year high. i took a peek at it. so certainly dates back to years back but certainly is a great number. the stock is up 5.25%. you love shopping there, buying the stock, whatever it is, you're happy today. liz: all it took was announcement of one big deal in the online travel world it lifted all the boats. >> new high for expedia, orbitz, whole group. trip advisor. there may be more consolidation. [closing bell ringing] >> charles barkley. david: this is fun day for traders. seen more spectacular rallies. more triple digits on the dow. well into the green. start at very bottom. the russell 2000. that is about a one .25% gain on the russell. small and mid-sized stocks doing just as well as big guys. dow jones industrial

let's focus on cisco. back then many good things were happening and cisco was providing the backbone of the internet for a ton of cell providers. many disaed and were written down or written off. the client base that was robust eevaporated eevaporated, i do not see the same thing happening to apple. unless we have a real life investigation of stephen king's "the stand," in that case, who cares about stocks. next is google i'm concerned about google they are so quick to spread their bets. they have been acting like death for ages. it acts you feel a. however, with google trading at 19 times earnings and more if you back out the cash you are not dealing with anything too expensive. in fact, google was cheap. i wish they put people to work in europe. the eu investigation is punitive and it's not going away and the company is tone deaf of what is happening on the whole the continent continent, back in 2000 micro microsoft was the second largest company. and their market cap was assuming they were going to be t

liz: cisco is too big to move sometimes. kind of smack in the middle of its annual high and its annual low. let's go back to tim. cisco is a large cap. define fairly valued or fully valued? people say the market is looking a little bit fully valued and maybe rich? >> yeah. well i think, part of it is, obviously the earnings. right now if you look at the s&p 500, you're getting an earnings yield, profit yield of a little under 6% which is not far off the historical norm. when you compare that to what's the different alternatives to stocks like bonds and real estate. bonds earning two, real estate and rental pass-throughs earning maybe four, stocks at 6% yield look fairly valued. they don't look cheap anymore. they look fairly valued. i think we should have average returns moving forward for equities. we see greater values international like europe and some other areas trading at pretty substantial discounts to comparable u.s. companies. overall we expect higher returns coming from there. david: todd, let's talk about the econ

cisco... ...tomorrow starts here. sir, we're going to need you on the runway later.old you back. get theraflu... ...with the power of three medicines to take on your worst pain and fever, cough and nasal congestion. it breaks you free from your toughest cold and flu symptoms. theraflu. serious power. ♪ >>> in "heart of darkness," conrad writes about the greed of the belgian colonizers. they grabbed what they could get for the sake of what was to be got. it was just robbery with violence, aggravated murder on a great scale. and after 75 years, the congolese had had enough. but independence came quickly. when the new country managed to inaugurate their first democratically elected leader, patrice lamumba, the cia and the british working through the belgians, had him killed. we helped to install this miserable bastard in his place -- joseph mobutu. he stole billions of dollars from his people and pretty much became the template for despotism in africa. needless to say, this deteriorated over the next 30 years. by the time he was done, the congo was mired in a series of

amazon above its high, and then you got cisco. cisco at a new high since 2007.n you look at the big names, part of the reason the drag has been for the nasdaq to get back to the 5,000 level, cisco is down 50% from y2k. microsoft down after a big recovery over the last year. big names still have not gotten to the highest levels they could be. back to you. >> all right thank you very much. >>> courtney raig p with the market flash. >> thank you, tyler. shares of power plant company aes, strong earnings report of 41 cents a share, beating estimates. they announced a $4 00 million stock buy back program will be in place. the ceo says it reflects confidence in the company's ability to grow the cash flow. shares up nicely 5 .5%. back to you. >> thank you very much. >>> bond market now with rick santelli. hi, rick. >> hi, tyler. indeed, we had a sloppy auction reflected in the fact it was a bit of selling afterwards looking at the intraday a the 7 year maturity of the auction, you can clearly see. year to date of ten year we see selling there. we continue to hover at 2

and the san for cisco bass group is raising awareness for the pedestrian say sun servers cisco streetsctive map. and highlights the city's most dangerous streets. <

cisco. still 70s around the tri-valley towards walnut creek and santa rosa near 61 degrees. look at the trend heading into the evening. wind gust ace approaching 30 miles per hour. that's the cool canadian air conditioning sweeping down the coast. the difference with this incoming weather system. got a lot of cold air behind it. temperatures will drop into tomorrow. a chance of showers here in the bay area starting tomorrow. lingering on into saturday and there you see that much-needed snow in the sierra. so the five-day trend tomorrow begins to bring showers back in for friday. saturday, seeing showers to start the weekend and turning drier and breezy once against towards sunday. another check of the thursday commute over to mike. >> canadian air conditioning the a.c. -- a. -- never mind. san mateo bridge might make it worse, worse than the joke as far as slower driving. suggesting that. east bay, show you the map and slowdown you see. southbound 880, just past dakota where the dumbarton br

cisco, not so much. is san jose's largest private employer, and because it sells tech infrastructure it's a really good canary in a coal mine to tell us about the health of silicon valley. and cisco turned in very healthy numbers. that say, sam and laura, here is cisco's new -- is it sexy or what? needs a new name. you got the model x or the blah, blah, blah, blah. >> you can have that box or you can have a new tesla car. i'm still on the fence on that. >> cherry red? pick out your color. >> one is a chick magnet. the other is router. >> thank you very much. >>>. >>> what would you rather have this morning at 5:55? let's check in with meteorologist christina loren with your microclimate forecast. >> i think everybody would like to have a comfortable day outdoors. that's what we're serving up today. whether you drive a tesla or a 2001 vehicle like myself, conditions always going to be nice for everybody out there for the next couple days. 75 degrees in the south bay, 75 on the peninsula and 71 in san fran

he goes, it's cisco. now, nobody thought that back then. but when you look at the chart without the name on it, completely different story. people are enamored by certain things, enamored by things that say you've got to have it, own it, some go to zero. >>> coming up next, the apple watch is coming and dan nathan has the one name shaping up to be the casualty of the launch, the stock fell 11% today and says activists might circling soon. we'll tell you the name, next. >>> and leer another look back at the dot-com bubble. we'll accepted guy back out to the streets to see if folks can identify some of the most famous tech devices from the 2000s. a pager, anyone? tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops, tdd# 1-800-345-2550 even on the go. tdd# 1-800-345-2550 open a schwab account, and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 so when a market move affects one of your positions, tdd# 1-800-345-2550 schwab can help you decide what to do. tdd# 1-800-345-2550 with to

cisco, fireeye. a lot more.et's go to nicole petallides on the floor of the new york stock exchange. nicole. >> charles, we saw that back and forth action today. we saw the nasdaq squeezing out the gain. technology stocks were the shining star. right? and we'll get to apple in a moment. s&p, dow ended up lower. dow ended up lower six points. still focusing on greece. earnings in focus. cisco, tesla, whole foods to name a few. today, apple record new high. carl icahn said the stock is worth $216. he's touting apple and tim cook and the innovation there. pepsico beat the profit. that was the winner. peer one got crushed. they have to change their financial chief. that was certainly one under pressure. (?) aol came under pressure. concerns about subscribers. the big picture though is that we finished relatively flat after a losing day. we had been down over 100 points. back to you. charles: thank you so much, nicole, appreciate it. here to help us out. another big, big session. a new face. tim specie. icener amner.

new cfo on the call i like cisco calls. because the ceo gives you a near term and long-term out look and he is articulate of what is going right and wrong. the numbers, that story is told by frank, never fear cramer is here. kelly cramer the new cfo and i bet they tell a darn good story about how cisco is at the heart of the revolution. don't forget with the good numbers on twitter, people are buzzing. whole foods feel like a company that is down so much that the risk is well defined skpimpt have to tell you, what irwin simon said last year on the show. business is strong i'm looking for an up side. and finally tesla. i keep thinking that tesla is part of a trica, that have truly caught fire after time with inventory. that is the same place that tesla has been spending time. you know i'm a demon about that natural and organic space, i'm urging you to use the price break in chipotle and buy. and they have got some european exposer too. but i think the stock is down down from the highs and it that is been punished enough. all

what is cisco doing right there? >> maybe atsen easy comparison but if you're going to make the move toward cost savings, it is an important way to generate labor cost savings and you ideally would be trying to find ways of mitigating that. >> let me ask you a quick question before we move to apple. do you have a buy on the stock because the comps are so easy or because the fundamental story is getting better. >> the last six months the stock traded on multiples and the comps are easier. what happens next is things like internet of things haven't really shown up from a financial perspective. sis coe in prime position for that. if it comes through we could start seeing financials bear fruit in the last 12 months. we've seen a huge increase in complexity in this industry and sis coe is offering to do hardware software services and bring it end to end and for many companies someone can take some of the risk and complexity away from you it's hugely appealing. better gross margin business than in the past and they can sta

is that something cisco is involved in? >> absolutely. as you think about the internet of everything. >> is this technology or did it follow? >> that is an interesting thing. the government innovates and then also follows in technology. i think we do both. >> is the government a major contract for cisco? >> it is part of our business but not a significant part. >> in washington one thing being talked about is the issue of intellectual property. would you like to voice on that? >> we believe to be able to successful you have to invoit and when you do that you have to build that portfolio and we have been building it for 30 years to be able to protect our assets more than anythingential -- anything else. trends are affecting the entire industry industry. everyone from consumers to service providers. there are multiply transitions happening. does that create a boom? for some areas you may consider it to be a boom and others may consider it to be a very good constructive force to drive. depending on the lens you may determine whether it is as

i want you to think cisco, as a terrific internet guru. look, i know you can call me out there with this jason statham thing, but only if you haven't heard this new greek finance minister talk or looked a to the guy. you can say i'm off the reservation with the costco analogy. with these stocks you can't call me late. i am ahead of the curve. maybe way ahead. and if i'm wrong, the gloom and doom is already built in so are the hazards of the strong dollars. they've all reported these companies. we know what's wrong, but you might want to ask yourself what can go right? i say, plenty. why don't we go to janet in connecticut, please. janet? >> caller: jim, the cybersecurity cybersecurity concerns in the news today with sony what is your view on imperva? >> i don't know imperva. i like cisco. next week has cyberterrorism writ large. george in florida, please? >> caller: hi, jim! from daytona beach florida! >> nice volusia county a little hello! >> caller: yes, sir. i want to talk about yum brands which includes kfc, pizza hut, taco bell and yu

of cisco, he was there when the internet was in its infancy. part of me leaves the idea that bridges and pipe lines will warn you that they'll be damaged and things will go wrong. there's a danger. has anyone quantified the danger internet? >> people are starting to wrap their minds around it. chambers makes the point that, you know, there's no such thing as a secure data center. this is a guy in the business for a long time. to have a specialist admitting it will be a leaky boat. thinking about all the cops. the auto industry is one of these that stands to benefit from the internet of things. incredible things you can do connecting 50 to 80 sensors built in. those companies are going to be in charge of making sure stuff doesn't get hacked. those are companies with no experience. a report coming out, the senator, casually pulled about 20 different automakers about the susceptibility to hacking. there was an industry-wide administration that they'll have no idea. no ability to detect it. we are talking about all the industries diving into the se

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