you've got to be careful with that on cisco. a lot is just to retire the stock options that they have lavishly bestowed on executives and employees and they're one of the more notorious cases on masking huge amounts of stock issuance with buybacks so it's not quite as pure. so i think there is some element of this stock following in the footsteps of first microsoft and then intel where these companies are breaking out of these 10, 15-year consolidation ranges not only seeing earnings growth for the first time in a while that's meaningful, but also seeing a rerating in the multiple people are willing to pay more for these companies than they were even a few years ago, and it's not a huge difference in earnings and revenue growth, but it's enough. and the international aspects of these companies very, very important in the context of a global economic recovery these stocks would not be doing what they're doing if you weren't seeing a return to growth in europe and asia and latin america. >> you can see why people continue to put m

cisco certainly has done better than that, but the question is whether cisco's story in the cloud era really gels and makes sense. john chambers talked about how they'd catch market transitions. be interesting to see what they have to say about how cisco is exactly taking care of this one. in this quarter, commercial sales were up from 4% growth to 12%. investors were happy about that, but large enterprise sales were down security did better than expected that business up 8% year over year 5% quarter over quarter. and, of course, they've got some acquisitions they are trying to incorporate, carl, but i think the question is, in this networking era, in this cloud era, you've seen intel making very different bold moves in how they are trying to make these shifts moving toward more programmable semiconductors, moving into autonomous and trying to compete head to head with nvidia. what more does cisco have in the tank >> certainly the price action today popping out to the highest since '01. we'll see what robins says tomorrow >>> seema, how'd europe close up >> check out the price action

tim mentioned cisco was one of the four horsemen, oracle has come roaring back and cisco and intel have been left in the dust will cisco as grasso mentioned be able to retain those highs? >> i don't think so. there's a floor to the stock this is a company that you can absolutely move the needle on, solid free cash flow yield, you talked about repatriation. those are big tail winds for this company intel is a name i would be buying aggressively as well. >> even listening to "braveheart" music >> it gets me every single time, some of mel's best work. >> karen >> i don't know, i think this is interesting, one quarter, i was trying to think about it is it better today, up 5% with the news that we have, than it was this morning at 34-ish not knowing what the earnings would be maybe. maybe. >> we're betting on another loss how many people is -- how much of this is a knee-jerk reaction, oh, jeez, it was a quick turnaround, i'll bet against the law of odds is on my side, and now they're going to miss again, and i'll collect and i'll cover right after it and then they see -- >> tiny shortages, t

cisco has new reporting segments now.hey have what they're calling their structure platform segment. and that includes switching, route, but also wireless and data center. infrastructure platforms revenue decreased by 4%, this call starts at 4:30 eastern, kelly, back to you. >> josh, thank you and don't miss by the way an exclusive interview as chuck robins friday at 9:00 a.m. on squawk on the share. up nearly 4% >> yeah, seems like that's slightly positive guidance, you know, for an uptick, probably with some relief, i think that people are bracing for some of those weaker sectors to maybe have continue weakness, telecom related demand the absence of that kind of may be due for it best it has been kind of consolidated it's gone below the highs. >> we're going to to have more coming up. >>> we have breaking news on the fed to get to here steve leishman, what's happening? >> comments from eric rigdon saying he supports it over the next several years other than that, hawkish than he's been maybe in the past, the economy is

cisco has always been about startups. company acquired dozens and dozens of startups, seeing sales grow from $1 billion to over $40 billion during his years at the helm. we talked to him about startups and what the government can do to encourage startups. john: i think we are viewing this as transactions, not part of a bigger picture. all., we are not at in the first five years of this decade, we all grew our startup community by 12% over five years. our peers like australia, france, india grew by 60% comedy chinese grew by 100%. we are not entitled. we have to disrupt or get disrupted. you are now seeing companies such as france, which was the last place you and i would have done business three or four years ago, become the startup nation of europe. do it byt transactions, they do it by combining the whole picture together. startups, how does that tie into your tax plan your education system, your security? the u.s. is the only company in the world that does not have a national digital piracy -- digital policy. we are be

whether good for economy is debatable but would be for cisco. reported a terrific quarter and predicted could grow revenues sooner than later. possibly 3% increase shocked the street and caused re-evaluation of the stock it's growth stock again and getting credit for cloud deferred revenue, giving company much more highly valued service component. pay more for service than hardware all the is pointing that way and payoff at hand including the security must be taking share and taking names. become must-buy for businesses soared in one day. chuck will be the guest on "squawk on the street" to talk about his fabulous turn in fortunes reminiscent of couple of others. steve easterbrook took over mcdonald's, written off as wayward fast food joint and two years later, guns blazing, offering all-day breakfast, people thought played out, sell it wrong. he reenergized the franchisees they do the heavy lifting. people responsible for day-to-day running of the stores astounding 4% same store sales growth this stock has been a horse. i don't know if you've b

cisco now says recurring revenue makes up 32% of total revenue. bryan white of drexel hamilton says that's important for two reasons. it means investors have greater visibility into the future of this business and investors generally sign higher multiples to those countries with stronger recurring revenue. for "nightly business report," i'm josh lipton, san francisco. >>> nelson peltz reportedly wins a board seat at procter & gamble. according to cnbc, the activist hedge fund manager has been elected to p&g's board of directors after a recount showed he won by more than 40,000 votes. p&g says that's subject to review. peltz has a more than $3 billion stake in p&g and has criticized the company. last month p&g said peltz had lost his bid by more than 6 million votes. shares rose in the extended session but finished the regular day down a fraction to $88.23. >>> acorda therapeutics says people died in trials of a medication. it's stopped enrolling new patients in the study and plans to speak with the fda about the treatment. their shares plunged nea

>> no. >> cisco doesn't have it back. where did it go?was never returned. >> but it was brad's own computer examined by the fbi which coughed up the most accusing evidence of all. evidence he'd already lied under oath. >> the kids fell asleep around 9:00 p.m. i fell asleep soon after. >> brad said he was asleep with his daughters when nancy came home from that party friday night. but brad's computer said otherwise. he was online until about midnight when nancy came home. >> he's been awake on his computer. when she comes in shortly after midnight, we think they argued and that a fight ensues and that's when he strangled her. >> and then the closest thing the prosecution had to a smoking gun, a google map search. prosecutors allege brad typed in the numbers 27518. the zip code for cary. then zoomed into the exact location where nancy's body was found. when do they claim he did this? 1:15 in the afternoon on friday july 11th, 2008. the day before nancy went missing. proof of intent? maybe. maybe not. it wasn't much of a search. it lasted ju

night vision goggles were used to find a 34-year-old man from semper cisco who slipped and fell while hiking and mussel rock park. they found the man at the bottom of the 300 foot cliff surrounded by water and rocks. a paramedic was lowered from a helicopter and the hikers pulled to safety. he suffered injuries to his legs but is expected to make a full recovery. >>> a man has been booked on murder charges in connection with a crash that killed a 21- year-old woman. the 35-year-old seen here was driving on lakeville highway. that is north of state route 37 just after 9 pm last night. they say his truck crossed over into the opposite lane and crashed head on with the toyota corolla. the woman in the car was killed. after that crash, another driver a 29-year-old ashley breccia was arrested after the highway patrol said she drove her car past the barricade set up by officers investigating the first crash. her car crashed into an unoccupied cruiser. she faces dui charges. >>> many veterans are wrestling with psychological problems. the best kind of therapy does not happen in a doctor's of

strong earnings from walmart and cisco.are just booming today. >>> plus as you know, the house just voted to pass its version of the tax reform bill is tha

his next chapter as he prepares to step down from cisco.bloomberg. ♪ drum bloomberg world headquarters in new york, i'm david europe. welcome to bloomberg markets, balance of power. david: here are the top stories. president donald trump is in asia kicking off his trip with a message to the japanese prime minister that his nation's economy could be number two in a comes to strength but the president said there's a trade deficit between the two countries and he says it's not fair. a corruption crackdown in saudi arabia. there was a rest of billionaire officials. prosperityor president joins us to tell is why his special interest group says there is still worked a do in the gop tax overhaul proposal. president trump is in japan on the first leg of his 11 day asian tour. he's talking about trade deficits and giving veiled

. >>> the biggest convention of the year is underway in sam cisco. dream force 2017 brings tens of thousands of visitors to the city and also brings big-name speakers. paul chambers is in sever cisco tonight with the convention hosted by salesforce where it has closed streets. >> thinks have wrapped up here behind us for tonight but it will be packed tomorrow. this will be a week full of celebrities and political power houses. today was day one of the four day conference. and it kicked off here with the keynote speech. >> as you walk it to the 15th annual dream force conference one of the main venues has been transformed into a forest. >> going all in to make sure everyone feels the theme. >> is the national park. they use the largest tech employer here to transform the middle into the dream valley. this is where more than 170,000 attendees will get the chance to enjoy music, watch features and climb the wall. all in the middle of downtown. you would not recognize one of the busiest street here. park benches and green turf were used to convert a towe

cisco released a statement saying a said incident occurred today. the safety and security of our employees is our top priority. >>> the person accused in a shooting of a concorde high school student this week has been charged with murder. 20-year-old christiana -- of concorde shot and killed lawrence jansen near olympic high school monday afternoon. no charges are being filed against the second suspect. 18-year-old brian --. three juveniles were also detained. the suspects targeted the 17- year-old. no word on a motive.>>> a football coach at santa rosa junior college facing murder charges after a car crash that killed a student. logo -- is suspected of driving under the influence. he was near petaluma sunday when his car crossed the double yellow line. he collided head on with a car driven by paulette keep up. the 21-year-old woman from oakland was pronounced dead at the scene. the other drivers were involved in the crash but were not seriously injured. the suspect has a previous drunk driving conviction.>>> how the suspect in sunday's church massa

cisco and walmart both better than expected. major average also on track.dan is right now is raymond james ceo paul riley. so record results for the company congrats to you. what is behind this performance. the biggest factors are what we had had record retention of advisors. we had been a big net recruiter now for five years. that combined with the market going up 25 percent. an interest rate spreads are at an all-time high. they really combined. how do you keep this going. that is a hard thing when you talk to analysts is what is a market can do. i think tax reform will impact that. and certainly in packed that. 70% of our clients are positive on the market said so that just that outlook will impact that. i don't think they will stay there. i think they will start giving up more the interest to clients. and as a pressure going forward but so far it is a good market. and the american net worth is now close to hundred trillion dollars. it's a percentage of gdp. do you worry at all that we might be heading back into some kind of bubble territory that markets

strong earnings from walmart and cisco. both of them are just booming today. >>> plus as you know, the house just voted to pass its version of the tax reform bill is that one of the reasons for this all clear for stocks? we'll talk about that coming up. >>> speaking of taxes, coca cola ceo tells cnbc what he would do with a corporate tax cut we'll have all of those details coming up. >>> then there's best buy, it's sitting out the rally today. down pretty sharply. in fact, it's off the lows right now. less than 4% decline is the iphone to blame, iphone x to blame we have a debate on best buy coming up here. >>> we begin, though, with the breaking news. stocks hitting session highs as the house passes the tax bill. ylan mui, our intrepid reporter on capitol hill has the latest for us right now ylan >> reporter: bill, that final tally is 227-205, that is a comfortable margin of victory for republicans. they said they were going to get this done by thanksgiving. no one really believed them. they were able to pull it off. repub

coming up, our interview with outgoing cisco executive john chambers who spend billions of cisco's moneyartups and now he is applying to those lessons to his own startup. and uber is teaming up with nasa. that's right. nasa, to get its line cars back off the ground. details next. this is bloomberg. ♪ ♪ emily: tech giant cisco has always been involved in startups under ceo john chambers, the company acquired dozens of firms, spending billions of dollars in seen cells grow from $1 billion to more than $40 billion over his 24 years at the helm. johnjohnson spoke with chambers and asked whether the u.s. government gets it when it comes to startups? i think only halfway. we are viewing this as transactions not part of the bigger picture. the u.s. has led in startups, but we are not at all today. in the first five years of this decade, we only grew our startup community by 12% over five years. australia, france, india grew 40% to 60%. the chinese grew by 100%. 500 startupsrew per day. we have to disruptor get disrupted. you're announcing country such as france, which was the last place you are

joining us here at post nine is cisco ceo chuck robbins.ot of things came together this quarter, clearly your cat leice catalyst, you have a double subscription business. all these paying a role or something bigger going on, you're going from hardware to software and that's what people want >> jim, first, thanks for having me, good to see you live as opposed to standing in a studio staring at a camera. but, you know, our strategy is working. we have been hard at it for the last nine quarters and when you think about the fact that we're fundamentally reinvent the networking industry for the future, we're really helping our customers navigate this multicloud environment that they operate in, which is evidence by the google announcement, security is front and center for every customer we have, and we're beginning to see the results in the business model transition that you talked about with some of the software moves making. >> what surprised me, you in the previous quarter, talked about, look, it could be -- be patient, it may be kelly cramer

if you see our life camera looking out towards him with cisco -- toward the san francisco.this is monday morning, 8 pm -- 8 am. notice that is not widespread. the best chance will be in the north bay, you might have some sprinkles around the bay itself. i 12:00 still not a lot of coverage. the south butÃat the cell basement picking up much at all. by late in the afternoon, and into the evening hours we will gradually see more showers worked their way back into the region. this is not a big deal, but a change in your monday forecast. we'll talk more about those rain chances be on monday coming up in a few minutes. >>>he knew it had happened at some point, the 49ers finally won the first game of the season. they beat new york giants, led by their quarterback cj beth -- cj. jason is here from some highlights for this first victory of the season. >>>it was a long time coming, the giants didn't put up much of a fight. a win is a win is a say. and they're more than happy to take it. you have to go back to christmas eve fourthÃmet last year the last time the 49ers won the game. cj

a manual and froome cisco both suffer from huntington's disease.o. it is a rare condition typically inherited from a parent or pa rents typically inherited from a parent or parents that typically inherited from a parent or pa rents that destroys typically inherited from a parent or parents that destroys brain cells and can lead to mental or physical impairment. both of them were being treated at the same rehabilitation centre when they started asking questions. translation: i told my mother, i said, "mum, there is a boy who has the same illness as me and he has a clip -- the same illness as me and he has a clip —— left lip." she said he must be my brother. and then she found his dad and that is when our stories came together. the 2-man, adopted as babies by different now reunited as adults completely by chance. it is not all brotherly love. they support different football teams. but the ups are much better than the downs. translation: my father told me. i was very happy because they have a brother and he lives here and i see him every day. translat

there were two yesterday which we knew would classify as dinosaurs, cisco and walmart, and they bothd. cisco has not really grown its top line for a couple of years, and showed some movement in the top line, we are only talking low single—digit is, but even so. and that was greeted well. and then walmart as well, and the rest of the retail sector has been under pressure from amazon. so it has been a bit of an electric kettle to get some of the other retailers to move their businesses online more. that seems to be providing some progress. and moving away from dinosaurs, some other big news this week coming out of norway, trying to move their alliance away from oil and gas. they have said that they will divest from the 6% of their portfolio, their wealth portfolio, probably next year. and it is significant. for them, it is partly because their whole economy is very reliant on oil and gas, but i think also underlying it, it is that hole bogey of stranded assets, and the value of these assets, which had been put really on the back burnerfor had been put really on the back burner for the

david: not bad for cisco.utrage on the left and the right over roy moore, defiant remaining in the alabama senate race. following allegations of sex misconduct with minors. in an hour, he will have a press conference. mike huckabee is here after the break. >> what do you think i'm going to do? why do you think they are giving me this trouble? why do you think i'm being harassed? ♪ ...we've helped our investors stay confident for over 75 years. call us or your advisor. t. rowe price. invest with confidence. lauren: alabama senate nominee roy moore is set to speak at top of the hour following allegations of from minors against moore. as rnc pulled all of its funding from his campaign. here is former arkansas governor, mike huckabee, fox news contributor. the question we want to know, is moore going to drop out of the race? >> i doubt it. sincerely doubt it that roy will say, i will fold. my mother never cursed ever, my dear late mother, she were alive today this is a mell of a hess. and it is. do you believe the

to reorganize cisco.to the days of wayne laboratories and joins us now from paris. wonderful to catch up with you again. i want to talk right away about what you are focused on, which is startup initiatives. sayschristensen at harvard big companies can't do startups. as professor christiansen right? .> i think he's right the majority of big companies have trouble reinventing themselves and to your point , whenwayne laboratories you don't reinvent yourself, a great company can fall from grace rapidly. all job creation for the next decade, whether in the u.s., france, or india where i will be next week talking with government leaders, will be from small to medium business. how you do innovation and how strong is your small to medium business engine will determine the engine of job creation. tom: i guess cisco was never a conglomerate. i will not give you that idiocy. general electric is dealing with the massive headache about the believe in conglomerates. are the conglomerates of an old ge a dinosaur? when

when they set records, that's real. >> 20 seconds left cisco. forgot cisco earnings.>> the stock is poised to break out on a 15 year high. all it needs is one good earnings report. the secret is in acquisitions. they make small acquisitions, not big. they should start to show up. >> thanks for covering that. thanks for watching. "power lunch" starts now >>> i am melissa lee reimagining ge, the industrial giants flashing its dividend, largest cut ever by a u.s. company outside a financial crisis all part of the overall effort the stock getting whacked. inside the turnaround plan. >>> republicans face a critical week for tax reform. where we stand, and why many of the top millionaires and billionaires are calling on congress to raise their taxes, not cut them. >>> media mergers, regulating social media and sexual harassment scandals in hollywood. barr

high-end home goods company porting cisco -- fiscal learning. that was dropping out after hours. 9% since the beginning of the year. a new report says north korea has been quiet. at the longest one of the year. the next guest says president trump must be working. the investor is here to speak out. rocket man is man is on a suicide mission for himself. a major breach is a major win fr identity let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. you won't believe this story. a 500-year-old picture of christ the bidding war spanned nearly 20 minutes. that same painting sold at auction nearly six decades a

. >> dow dupont is down 7% from when they reported and cisco is not down but had a good number. >> up again today. >> and feel encouraged about the trends and the valuation may the best free cash flow, fourth best free cash flow growth in their history in the quarter. >> u ri. >> i like uri. >> i wouldn't buy it at 150. >> cisco i like. >> i like cisco. >> this is like the old days, 4:00 in the morning, you and steph talking cummins. >> we were also talking cummins last week. >> i'm going to talk about that on my show tonight. >> back to the market, leverage. we don't talk leverage enough. where is the isolated leverage in the market right now? >> options >> we had that conversation, and that's a great point. >> options. >> it's where people are it's where the volumes are. >> hold on one second. that means that the risk then is manageable if you think back to '08, it was about isolated leverage. >> right. >> so we had this conversation last week about do you think the market is going up 5%, down 5% we highlighted the fact that you had a little bit of, you know, a little bit of concern

one name that has not been as talked about his cisco.triggered you sort of looking for maybe overlooked names here? cisco is an internet icon that has kind of been left behind. up 14% year to date, which is a good performance but dwarfs when you look at the tech sector. i am looking at value. they make a lot of money from a trading standpoint, i like the technical setup, the way it has been stuck between $31 and $34, which targets $37 on the upside to julia: you are not looking at a 2019 trade here, only june of next year. alan: not yet. want a little bit of time. volatility is still low. options are very inexpensive, so it is a buy. june is trading at about five dollars. it has plenty of time, seven months of time. it will act like the stock. we get to $37, that option should gain about 50%. julie: it assumes we will continue to see a rally in technology more broadly. do you believe that to be the case? alan: yes, i believe so. it has been an incredible year. but look at the last eight years. since 2009 lows, the tech 100 has moved up 5

could it also be cisco and walmart? we're still waiting for the white house briefing. we'll take you there as soon as we get it started. "countdown" coming right back. our recent online sales success seems a little... strange?nk na. ever since we switched to fedex ground business has been great. they're affordable and fast... maybe "too affordable and fast." what if... "people" aren't buying these books online, but "they" are buying them to protect their secrets?!?! hi bill. if that is your real name. it's william actually. hmph! affordable, fast fedex ground. or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. ♪ ♪ liz: let me put three major indices on your screen. today is definitely not yesterday. today you

slain seven cisco supervisor harvey milk. november 8, 1977 he became california's first openly gay elected official.>> my friend, my boss, my mentor.>> reporter: and was his campaign manager. he laid the groundwork for equal rights.>> he will be so thrilled there is a quality is here to stay. that so many of his friends that are still here are in loving married relationships. we have made huge progress in the last 40 years.>> reporter: and art installation also debuted on this night. it was difficult to see because of the cloud cover. l.e.d. lights beamed into the sky to form what organizers describe as a rainbow halo. the works were created by the nonprofit that is responsible for the light show on the bay bridge.>> they are about celebrating where we have been but pointing a light to where we need to be going.>> reporter: in honor the 20th anniversary of the rainbow flag installation in the castro. jeff work with the late artist gilbert baker to unfold this symbol of inclusion here on november 8 1997.>> reporter: love is ho

explain that to us >> we have great partnerships, amazon, cisco.his is an incredible moment in sales force history. we have a fool relationship with google we have too amazing executives with she rhie dar and diane. he runs the advertising business >> accelerating revenue. >> and diane whose on the google board by runs google cloud, one of my personal heroes for almost three decades. incredible and now sales force and google are coming together for the first time it's the best of both worlds i couldn't be excited. >> why does google need saelsz force? >> well google loves to partner and google cloud loves to partner. sales force is going to zsh the two together do for customers what's not possible of course. we're also generating with sales force and giving a nice way for people to adopt super easily what we hear from our customers when they go to g suite it really transformed their culture. they get more productive, more claptive so, when we can integrate that with all the sale forces products, then all of that productivity goes to all the sales f

cisco and intel are two of your biggest customers. strategy going forward and how do you maintain those two very important relationships? >> very good question. if you are a networking-connectivity company, the number one goal is to serve cisco and intel because they have such huge market share. the success means you win both of them. the flip side is you get some customer concentration, so you have to have a long-term strategy on how you diversify. we have been diversifying into basically the computing industry , providing devices to the service provider market. as that part of our business grows, that will naturally diversify the revenue from this company. we have tremendous growth ahead of us. this is an industry that grows 5% to 6% a year, and looking beyond that, we want to be the solution provider for autonomous driving cars. we will provide the fundamental structure, multi-gig structure , that will make an autonomous driving car viable. that is our longer-term goal and will double or triple the size of the market we address. di

no word on whether the person was affiliated with the cisco.he company did release this statement a short time ago saying, quote, a sad incident occurred today. the safety and security of our employees is our top priority. the situation is contained. >>> we have live team coverage of the rebuilding in the north bay. ktvu's cristina rendon is at at&t for the concert but let's start with tom vacar in santa rosa where the rebuilding there and in the other counties affected by the fire is going to take years. >>> reporter: it is going to take years. but first thing that's happening right now is we are just beginning to start the clean-up. but when you look at the vastness of it, it will be a long time before the rebuilding is done. >>> reporter: today army corps of engineers and epa contractors moved to

seven cisco a quarter of an inch. in just five hundredths of an inch in san jose. we will add to these totals over the next six hours. -- 6 hours. look what is developing a north, we have some showers and thunderstorms developing especially closer to cape mendocino. there's a live doppler sweep. we see the energies drifting closer to the bay area between now, and when he him. rain other -- 1 am. things will be changing rapidly, as the system starts to go close to coastline. it is expected to pick up. it's really quite looking out towards the golden gate bridge. things, will pick up as i mentioned. this is 11:00 tonight and rain increasing in the north bay. as yellows and oranges do indicate a fairly good chance of thunderstorms, this is midnight and then into early monday morning. 3 am and 4 am things should start to back off. between me -- midnight and 3 am we have renewed rain chances increasing thunderstorms as well. we will track the system and we'll talk some more changes in your 5 date in a few minutes. >>>thank you. the weather is making the roadways a littl

details this is bloomberg. ♪ ♪ emily: tech giant cisco has always been involved in startups under ceobers, the company acquired dozens of firms, spending billions of dollars and seeing sales grow from $1 billion to more than $40 billion over his 24 years at the helm. cory johnson spoke with john chambers and asked whether the u.s. government gets it when it comes to startups? john: i think only halfway. we are viewing this as transactions not part of the bigger picture. the u.s. has led in startups, but we are not at all today. in the first five years of this decade, we only grew our startup community by 12% over five years. australia, france, india grew 40% to 60%. the chinese grew by 100%. the chinese grew 4000 startups per day. we have to disrupt or get distracted -- disrupted. you're announcing country such as france, which was the last place you are i would have done business three or four years ago to become the startup nation of europe. you watched president emmanuel macron lead in changing a country. they don't do it by transactions. they do it by combining the whole picture t

cisco, gap, best buy, some companies reporting earnings to beat forecasts we are called lower.he dow down 40 points the nasdaq down a couple points. s&p down 4 points. that gain yesterday seems a little bit temporary week to date, the s&p before today was up fractionally. the nasdaq is up about 0.6%. ten-year treasury note has recovered in the second half of the week in terms of the yield rising the price falling. we did fall to the low 2.3s earlier in the week. up to 2.36 now last friday we closed 2.4% >>> asian equities climbing for a second day following that rebound we saw on wall street. minor losses in china, that's been the story that's persisted this week following some disappointing data check out the bond-based index, moody's upgrading india's sovereign rating, including the largest state bank of india. >> we should mention in shanghai, the shenzhen index, the smaller cap index is down almost 5% this week. there's some feerars that the nw administration is clamping down on credit. the effect on smaller companies and the bond market in china some fears just raising a l

ibm and cisco lead the charge there.&p, telec telecom materials, industrials are strong coming off a down week we'll see ifhe gnsol tai hd. "squawk on the street" will be right back ( ♪ ) whoo! ( ♪ ) woman: class, let's turn to page 136, recessive traits skip generations. ( ♪ ) molly: i reprogrammed the robots to do the inspection. it's running much faster now. see? it's amazing, molly. thank you. ( ♪ ) >>> stocks are up this morning after seeing some cracks in the rally last week. one of the risks being looked at, the historically high leverage on corporate balance sheets, and the risks that high-yield debt poses to stock prices for more, let's bring in michael san tolly, senior markets commentator, and dennis berman joins us nice to see you, mike. a bit of a wobble in high yield debt the question is how big of a warning sign is it for the equity rally >> i think it shows you how things might start to get dicy when the time comes. the bears lost a chance last week, a lot of things going in their favor, but the high corp

cisco up 6 1/2%, $36 a share.>>> at the top of the hour new york congresswoman claudia tenney was with us, she said yes, she is a yes on the tax plan. roll a short sound bite. are you a yes or a no today? >> i'm turned to a yes today. stuart: there you go, that was four seconds worth, but you got the point, okay? republican congressman jason smith of missouri is with us. congressman, are you absolutely sure as of right now you have the 216 votes you need in the house to say yes? >> stuart, grade to be with you. we need 218 in the house. the republicans are excited. it has been 31 years since we reformed the tax code since 1986 and we're already to move america forward. stuart: i have to ask but the senate, because that is the next stop for tax legislation. i know you're not in the senate. i know you're in the house but i have to ask you about it. at this moment there are at least three republican senators sitting on the fence. we don't know whether they're a yes or a no. there are several others are waivering, wha

10:00, business inventories, and eric rosengren is speaking this afternoon on the earnings front, ciscoystems, l brands and target don't miss an interview with brian cornell today at 10:00 eastern. >>> senate republicans launching a new push to end a key part of obamacare as they try to pass tax reform gop lawmakers tacking on a new provision that would repeal the affordable care act's individual mandate. republicans say the move will lower the cost of the tax package and allow for more middle class tax breaks. the new senate plan would make corporate tax cuts permanent we will get reaction from house speaker paul ryan, that's coming up today on squx sd"squawk box"0 a.m. eastern time. house republicans have said this will not be in their plans how they reconcile that, we'll see. >> we'll see in a couple weeks the reconciliation continues yesterday goldman sachs increased the probability of -- >> 80% >> a significant move. your take on that is seeming a bit optimistic >> i will say in the healthcare debacle from this spring and this summer, all of those odds proved wildly incorrect. whet

. >>> stocks closed higher today with strong earnings from tech companies including cisco systems.he dow was up 187. nasdaq was up 87. the s&p gained 21. walmart also posted a big gain in its quarterly results boosting the market. >>> tesla is set to unveil its latest vehicle in less than 90 minutes. ceo elon musk will show off the company's new electric semi truck expected to have self-driving capability and be ready for sale by 2019. the event will begin at 8:00 tonight in hawthorne, california, and will be streaming online. >>> rain in the bay area means snow in the sierra. >> kids were out of school and thought we would come up and enjoy the snowfall. >> a look at the conditions ascii resorts get ready to open. >> it's snowing up there right now. the snow levels will drop as it cools off tonight not just for the mountains but around here. overnight lows looking chilly. valley fog a possibility. and more rain shows up in that five-day forecast. we'll show it to you after the break. >>> a winters storm in the sierra ahead -- a winter storm in the sierra ahead of a foot of snow to

home depot, and cisco systems will report.ater none the week, huge for retail, walmart, best buy, target, they will all report on their latest quarterly numbers. coming up next week on "wall street week." we'll talk with robert kaplan. have a great rest of the week everybody. i will see you again next time. thanks for watching. [♪] >> i'm bob massi. for 35 years, i've been practicing law and living in las vegas, ground zero for the american real-estate crisis. but it wasn't just vegas that was hit hard. lives were destroyed from coast to coast as the economy tanked. now it's a different story. the american dream is back, and nowhere is that more clear than the grand canyon state of arizona. so we headed from the strip to the desert to show you how to explore the new landscape and live the american dream. i'm gonna help real people who are facing some major problems, explain the bold plans that are changing how americans live, and take you behind the gates of properties you have to see to believe. at the end of the show,

exciting it's always great to see walmart and cisco. congratulations mr.tomorrow, chuck robinson he's got to dress up. >> we can't wait. >> when we come back, coke's james quunsy outlining its growth strategy. dow is up 133. it's not just a pay check, you actually like what you do. even love it. and today, you can do things you never could before. ♪ ♪ you're developing ai applications on the cloud. finding insights hidden in decades of medical documents. and securing millions of iot sensors. so get back to it. and do the best work of your life. ♪ ♪ and do the best work of your life. the amazing new iphone 8 is at at&t... and we know you'll love it. because we know you want more. more great camera features and more power. and more than just unlimited data, we give you unlimited plans with hbo included for life. because you deserve more entertainment. and more spokespeople. talking like this, saying the word more. at&t. it's time for more. am i too close? i feel like i'm too close. get the iphone 8 and with all at&t unlimited plans, get hbo for life. only fr

in 1984, she and her then husband started cisco systems.ound a way to link networks of computers the foundation of the internet. but six years later, venture-capital people were running cisco. >> how to get fired from a company that you started? >> basically got taken to the cleaners. part of it was if you do not have an employment contract. i got fired by the same guy that fired steve jobs. [laughter] >> lerner had a second act. she started a cosmetics company called urban decay. with edgy colors for women like her. and in 1996, she bought this farm. >> it has historically been people that have disposable income that make strides in farming. like thomas jefferson. >> this is a pretty girl. >> she raises -- scotch highland and the turkeys that she says taste better because of the lives that they lead. >> how much is this turkey compared to what i would get in the grocery store? >> our turkeys are expensive. they are between thing running this year about $150-$200. >> at those prices there are questions about how to make this kind of farming

like you were starting to get competitive wins you mention a seven-figure competitive win against cisco and virtualized datacenter deal and cisco displacement security, they talk about a symantec displacement and checkpoint displacement very big deals how come you're winning them >> well, you know, jim, we've been winning at a high rate for a very long time we're one of the largest security companies in the world and still growing much faster than the market itself and all the competition. you know, the reason for that what we're bringing to the table is highly automated prevention in a real platform that is super important these days because we're fighting a very automated adversary who is sophisticated you can't use legacy technologies, you can't smash together old technologies. you have to take a new approach and start over which is what we did a decade ago and paying off ever since. >> when someone -- when you win over a customer that's been using someone else and use the platform i mean is that a land and expand or literally rip out what they have and put in your platform and every

run cisco, from walmart -- it is a good sign. >> couple of days of consolidation.>> let us talk about this individual names. walmart trading with its best day since 2008. biggest and more than eight years. walmart keeping pace with amazon. barnes and noble got a big leg that it wasort getting a buyout proposal from barnes & noble confirmed that it did, in fact, get that offer. get the chairman on board with that plan. best buy coming in with a downer. i should not say up, but down 6%. in texas,ricanes florida, and puerto rico, as well as earthquakes in mexico. charles and david koke, billionaire brothers, are backing meredith's bid according to people familiar with the matter. >> i am struck that there is a yet, you rally, and are seeing compression in the gap between united states 10 year and two-year yields. these two rates, asse two inch mark rates, collapsed at the lowest level since 2007. an increasing amount of money managers are expecting this gap to collapse to zero. that means no extra yields to own two year treasuries next year. that is amazing. this also

you're buying cisco. you're buying a name that's at a valuation. even be buying intel what am i buying here? i'm not saying that i think we're going into a down market if we're all at this point of the market, especially on a show like today where we're saying, what do you do here, you go for a cisco. you go for a cap tech at a multiple i feel safer there >> we brought up ibm i think ibm is okay, an interesting play there's no growth there right now. and this ai, that's the buzzword around every company right now i want to see it sort of take hold and move. >> the reason i bring it up, yesterday on "halftime," jim leventhal bought it after five years, now dan niles after five years takes a look at ibm and buys it. >> i don't think there's downside risk to the story but i don't see it shooting up like a rocket and having a trajectory path to the upside that's meaningful until they start to execute. execution is huge. >> and i just think people are buying stuff, i'm not saying this is the case with ibm, i prefer to be agnostic on ibm, people say i ha

strong quarterly earnings from walmart and san jose-based cisco. >>> time for a check of our weather with neda. >> yes. let's check in on our hi-def doppler. you can see it across the south bay here. it is coming down very strong, dangerously strong for a lot of drivers being careful out there make sure windshield wipers are working. we'll need that through the winter. rear seeing a lot of rain through santa cruz so the roads will be dangerous. sunnyvale getting more rain. santa clara, as well. we saw sunnyvale getting up to 3/4" of rain per hour, strong out further east near milpitas. just got a band coming through. livermore also just saw this intense rain coming through as it moved out further east past pleasanton and dublin but there's more right behind it. south san francisco right now easing up a bit but still strong for daly city, bayview district at this hour getting some intense rain along with burlingame. the north bayonne still seeing rain. it's calmed down though in napa and santa rosa. the north bay, yountville still seeing rain. venado got the most a rain over three inc

clouds tomorrow and several cisco. at lunchtime 64. san francisco please honey. partly cloudy and partly sunny and 66. tomorrow will be a nice day. the yellow is 70s. take a look at the forecast high -- 70 brentwood. 70 antioch. i would suggest -- i would go -- i think that is such an unused.>> i'm thinking fort mason. >> anywhere you go there is fault along the coast. it is going to be an outstanding day again. if you do get a chance and you are at the coast. you won't miss it. but to the west. the sunsets have been off the charts.>>> coming up stanford -- seven ranked florida in college basketball.>>> three games in the nfl with major playoff implications. all of that coming up in sports.>>> a homeless vet in philadelphia uses left $20 to fill up a gas can for a woman ran out of gas on 95. the woman started a gofundme campaign. her name is kate mclaren. she has been posting updates. they have since taken johnny to shop for essentials and put him in a hotel for the weekend. where -- they will decide where his new home will be. she was hoping to raise $10,000. th