cisco has.at right now after this quarter, people are talking about a recovery being very much on track. >> they are indeed. you know, it was tough on cisco overall. they haven't done a lot of layoffs. so that was hard for them to do. in my conversations offline with chambers, he showed he was focused on this. when chambers focuses, he really focuses. >> thank you so much. that'll do it for "closing bell." we appreciate you watching tonight. hope you'll follow me on twitter and on google plus. stay with cnbc. we'll take a short break. then "fast money" begins after that break. see you tomorrow. [ male announcer ] the draw of the past is a powerful thing. but we couldn't simply repeat history. we had to create it. introducing the 2013 lexus gs, with leading-edge safety technology, like available blind spot monitor... [ tires screech ] ...night view... and heads-up display. [ engine revving ] the all-new 2013 lexus gs. there's no going back. hey, it's sandra -- from accounting. peter. i can see th

is that where cisco's winning? >> i think it's more of a time of a product cycle than replaces and switching. juniper actually is our top -- they've got a low downside and favorable upside. i think from a risk reward basis, screaming buy down here. it's going to take a bit of time, but i think juniper is very attractive. over the next four quarters, i think juniper is going to look better than cisco over the next four quarters. that obviously has not been the case over the past year. >> are you getting the sense that john chambers is still the chambers we have known in the past? what is his tone? and listen for it as if that's going to be some sort of bellwether for this sector and the industry? >> sure. i think he's cautiously optimistic. he's one of hey we had a difficult time over the past couple years. i think things are coming around. our strategy is working. they're gaining share in the market place and certain areas. they're really focusing on intelligent areas. i think he feels good about where the company

if dinosaur tech is cisco and it's dying, then what could cisco buy?ould cisco buy, to revive their product cycle? >> yeah, well, you're not going to see anything big, right? if there's anything that's come out of this restructuring is no more grand efforts to penetrate into the consumer marketplace. focus in on your knitting which is the underpinning of the internet. we call cisco a dinosaur, but let's be real. the internet of things, all the connectivity of devices, that's still exploding and cisco's smack in the middle of it. >> what's the biggest metric to look at today? margins? >> yeah. gross margins. >> final comment from you because i know yahoo! is in your universe. this board shakeup, i'm sure it was expected in your world. what do you think, does it make a difference? >> so anyone who think ths board shakeup means there's a greater likelihood of a deal, you might want to think other siwise. if they do stamp a deal, it won't be one investors like. the other part is the asian assets that they're trying to spin-off, that process is going to tak

cisco reports earnings after the bell. we'll talk exclusively with ceo john chambers right after the numbers come out. plus, the first glimpse of grounon's bottom line since going public. the stock has been on a tear in the past month. is it too hot to handle. and we'll dig into whole foods stock and earnings story, straight ahead. live, from the new york stock exchange, this is the final and most important hour of the trading day. >>> and we do welcome you to the bell on this wednesday. i'm bill grif eths. >> hi, everybody, i'm ma pri a bartiromo. the markets right now, we are looking at a situation locked into a tug-of-war here as we enter this final stretch. the wall street looks at a mixed trade going into the final hour. strength in some chips today. the chip sectors providing some support. a barrage of after-the bell earnings tonight from names like cisco, groupon. some investors taking comfort in the fact that eurozone finance ministers will meet tomorrow in brussels to examine and eu imf rescue package for the trou

earnings central, cisco looks to turn itself around.giant beating the street and offering upbeat guidance plus the ipo everyone wants to hear every detail about. facebook disclosing more info on executive compensation. how rich will mark duzuckerberg soon be? it's thursday, february 9th, 2012 and "squawk box" begins right now. ♪ keep on rocking me, baby keep on rocking me, baby keep on rocking me, baby ♪ >>> good morning and welcome to "squawk box" here on cnbc. sh

. >> tom: one of the tech stocks helping fuel the nasdaq rally is cisco. earnings were better than expected, coming in four cents ahead of estimates as revenues and profit margins both were up. grady burkett is an analyst at morningstar. he joins us tonight from chicago. what do you make of this earnings report after some difficulty that cisco had over the past several years? >> this was a very good report for cisco, on the top line they grew 11%, their services revenue and product revenue grew more than 10% in the quarter. year over year. so that shows balance and strength. they had strong balance across their products, so you did see very strong growth from some of their emerging product segments, for instance data center and collaboration, even their security portfolio which has been weak was strong this quarter. and you also saw good operating expense control. so you're right, you really saw a quarter where they beat out expectations, i think they beat most analyst expectations and it was a very solid quarter for the company. >> tom: sounds like you're

but europe did atta tach a condition to cisco buying tanberg, saying cisco had to interoperate.aying what's good for the goose is good for the gander. >> josh brown, we've been here before with rulings for microsoft, have we not? >> this is what microsoft has been doing really for the last 15 years, is defending itself. so i'm sure they'll work something out. i'm not sure that this is market-moving. if you look at how most of the people are looking at what skype is going to add to microsoft, the enthusiasm just not there, anyway. so i don't know if this is a buy or a sell type piece of news. but i guess it's worth watching. >> do you any enthusiasm, steve? microsoft has never been a real name that i get excited about. if you're looking at the upgrade cycle, i've started to give it a little more of an eyeball. i'd probably be a buyer here. >> john, thank you for the breaking news. next on the halftime report we've encovered some unusual activity in a book seller. plus is lululemon's run-up the real thing? d. [ mike ] i always wondered how did an airplane get in the air. at ge avi

cisco doesn't oppose the deal but it wants european regulators to force conditions on microsoft. it thinks skype users should to be able to connect with other web conferencing services like cisco's own web-ex system. cisco likens it to having a cell phone on one service and not being able to call users of a different service. >> susie: in the movie >> susie: in the movie "flashdance," jennifer beals' character wielded a blow torch during the day and danced at night. but what seemed like a novelty in that 1983 film could become more of the norm today. skilled welders are in high demand and that's attracting more women to the trade. diane eastabrook takes us to a program in chicago that is arming women with the skills to complete in what has been a field for men only. >> it's going to be $9.20. >> reporter: on tuesday and thursday nights, jasmine lopez works the cash register and makes sandwiches at a subway restaurant on chicago's south side. but on monday and wednesday nights, she lets the sparks fly. the 21-year-old is in training to become a welder. >> my grandfather was a weld

cisco says they don't oppose the measure but they want acquisitions put on to allow scrip to -- skype to interact with other services. cisco says without restrictions, microsoft could gain full control of video communications over the internet. >>> bay area drivers may be close to paying $5 for a gal be of gas by the time summer starts. right now, the average price in san francisco is kl 3.93 for a gal -- is $3.93 for a gallon in san francisco. in -- oakland, 3.87. >>> thank you for trusting ktvu channel 2 news. we'll see you the next time news breaks. we're always here for you on ktvu.com and mobilektvu.com. thanks for watching. have a great day.

we applaud approximately 35 employees in san but cisco. i never was in front of this commission, and the reason i'm here is to support mario west. i have known him for many years, and from a business perspective, i know that he is a very knowledgeable person. san francisco small business is a complex matter. to do business in san francisco, a person should know legal and taxation peril aspects and operational aspects, and i want to assure that mario is the one who knows the business in san francisco better than anybody else. i mastered in business administration. i met mario, and he explained to me many things. before this, we were talking about pro bono, the lawyers should spend time. mario has done hundreds of hours doing pro bono work. i would say that tomorrow would be a member, this would be the right choice, and we are all lucky that he would decide to spend his time choosing this commission. supervisor kim: i just wanted to recognize the supervisor christina olague has joined us. >> good afternoon, supervisors. good afternoon, chris

it's easy to see that cisco has a dog in this fight. it has a high-end telecom for business, the video conferences systems also appear at smaller businesses. cisco's fear that it hints in a blog post is that microsoft could try to control the future of video communication with skype. what i've been puzzling over for the past couple hours is what does this mean for the stocks involved? one analyst i spoke to said this will probably slow microsoft's efforts to integrate into the platform. there are others apple with facetime, google with google talk. will this move from cisco have an impact on how those systems grow? the head of the skype business unit, tony bates is a former top exec in line for the ceo seat after shane steps down. and cisco itself hasn't always been open with its video systems. the ec had to force them to do that when they bought tanberg not long ago. >> very good point. jon, thank you very much. to breaking news now. philip lebeau, it concerns gm. what you got? >> sue, a couple pieces of news from general motors. we aw

the park is the backyard for every one that lives in san and cisco. and i think that it is important for all of you in the park to be expected to follow strong rules about security in cleanup. thank you for your time. supervisor mar: thank you. >> i am william [unintelligible] i have lived [inaudible] late '60s. i live one block from golden gate park. i am addressing only our lands and the noise. earlier there were two remarks that were made. i am all for having it at mclaren park. you mentioned being a neighbor in getting along. selling the family home, there are issues involved. it is not as simple. there is a noise ordinance. the city itself identifies noises as an environmental pollutant. unwanted, excessive, and avoidable moist. the recommended home level is 45 decibels. at 90 decibels, extreme exposure may result in hearing loss. your damage can occur at 110 decibles within 15 minutes of exposure. regular exposure to more than one minute risk permanent hearing loss. that is from the chair -- children's hearing institute. 110 to 120. [tone] 12.5%

but on microsoft, cisco and others set to fall back to earth. and i think we can forget the big boys for a minute. it's stock screener friday on "street signs." we have five mid cap names, low p/es and no debt. those names ahead, mandy. >> indeed they are. good afternoon, everybody. i'm mandy drury. happy friday. the house and the senate get it done two weeks ahead of the deadline. they've passed an extension of the payroll tax cut through the end of the year. the measure now goes to president obama for his signature. meantime, u.p.s. is trying for a $6.7 billion acquisition. the company botched by tnt express but discussions are still going on. and fresh from the collapse of a deutsche deal, sources say nyse next is among those to put in a bid to buy lme exchange. cme group also among bidders. >> we've been on a great run lately, but since it's almost friday the 13-k, we want to look at spooky similarities between this market and two other big runs and drops in the past. the s&p 500 hit a high of about 1552 in march of 2000. then got crushed as

the story this morning cisco. the world's largest maker of computer networking equipment reports earnings of 47 cents a share, 4 cents ahead of estimates, revenues also beating the streets and it raised its dividend. restoring investor confidence in cisco and ceo john chambers was on cnbc yesterday and this is what he had to say. >> the growth is a record and the earnings per share were up dwap and nongap 48% and 24% so a very solid quarter. it goes way beyond routing and switching which is also good. it goes into collaboration. it goes into cloud. it goes into the data center and it goes into an architecture so we were pleased with the quarter. >> chambers expects revenue in the just started quarter to raise 5% to 7% that tops current consensus and, guys, with a lot of people thinking -- given facebook, the nasdaq at 11-year highs, we're on the verge of a mini tech bubble starting to grow and for those who remember cisco 11 years ago, it was the -- one of the -- >> they were supposed to be a trillion dollar compa

i am the new president of the latin business network in said it cisco, and i wish to support mario west, a wonderful very responsible person who is also a great father. he served in the air force in the past, and now, he is here trying to serve the community and help the community in terms of business owners and youth. i know that mario west has great goals and ambitions for the community to support the business owners and bring more business to the communities. i believe he would be a good candidate to be a commissioner supervisor. again, he has great plans for the communities. anyway, thank you for your time. appreciate it. supervisor kim: thank you for being here. >> hello, how are you? and very happy to be here. first of all, i want to say that i'm here today to support mario west, one of the applicants. thank god you have two seats because it is going to be very hard to pick. they all have good qualifications, and it will be on you to decide who are the people that eat thick. i personally know mario west for over 10 years. our daughters went to the same school. i know how dedicated

could we see a big win from cisco? >> we could.nk that pulling through with the threat overall on earnings, although it's been modestly less robust than people had hoped for, roughly 60% of companies are beating and i think that's coming off on a relatively difficult fourth quarter. the headlines in the fourth quarter were very difficult. i don't think the consumers were out there nearly to the degree other than, obviously, buying apple products, that they hoped to be. but we're coming into a new year here where there seems to be a lot of momentum going. and i think that may propel earnings going forward. >> and that's interesting that you highlight the consumer. we had those numbers out from disney yesterday, as well. the heavy knews were a little light. the consumer is out there and the consumer is spending. so that would be a positive for the first quarter of this year. right, ken? >> yeah. and if you go back to the tech story, there are consumers of gadgets, too. there are others that feel they're missing the technology bubble

but not cisco-- shares dropped 2%. volume was extremely heavy, more than three times normal. still, apple shares hit new highs. reports a new ipad will be unveiled early next month encouraged buyers, and analysts were encouraged by continued strong iphone sales. a big tech buyout-- business software giant and serial acquirer oracle will spend almost $2 billion for taleo. that's a cloud computing human resources software firm. oracle shares were up a fraction. this is its second acquisition in three months. taleo stock shot up 17%, closing just shy of oracle's purchase price of $46 per share. pepsi is taking aim at coke, cutting jobs and using some of the savings to boost marketing. pepsi has been lagging coke, especially in the u.s. it will eliminate 8,700 jobs worldwide. earnings in the fourth quarter were better than expected. but the pepsi c.e.o. called 2012 a "pit-stop year to refuel." shares certainly hit the brakes, falling almost 4% on heavy volume. the company rejected calls for it to split its beverage business from its frito-lay snack division. it's a different stor

i stand before you today just over a year in office, saying that 7 cisco's economic recovery is under way, and after years of deepening unemployment for families, we are turning deployment -- turning the corner. my message to our neighborhoods and our constituents is this -- the economic policies and strategies that we have been pursuing an working on have been putting us back on track, but we also must stay that course. and though our revenues have surged from our economic growth, we must not be tempted to go back to spending habits and spending sprees that delay the hard choices that we continue to want to make and that we have been accustomed -- and we have got to make the hard choices that we have been accustomed to making the past few years. i think my hardest job for the next few months is going to be making sure that we do not return to those spending habits, and that we make short-term choices that get us -- and that we do not make short-term choices that get us into more trouble than we have experienced in the past. we have, for example, in our economy a requirement now by la

but every value guy i know between cisco, oracle, intel, hewlett-packard, dell and microsoft and applethey own two or three of those and they're all sort of cheap. and so congrats on hewlett-packard and we think dell is interestingly cheap. >> they see limited up side given the fact the stock has moved more than 20%. you disagree. >> certainly i'm lessen news i can't say tick at 18 rather than 20. at 18, any actual got $4.5 a share. >> jcpenney another one of your winning bets. there are so many stocks that you have long bets on at this point that have moved so significantly higher as the overall market has, as well. it's your fourth biggest position. how much offer play there has to do with ron johnson? >> i'd say that's 90% of it at this point. >> so you're betting the house on ron johnson. >> initially we bet on them doing smart things and the key smart thing was hiring ron john so that. and as we looked in to him and what did he at apple, we said, wow, take a look at this. it's not a bad company, but it has quite low sales, high expenses relative to peers. jcpenney spends twice as

we are more like cisco foor othr companies like that.y investors while i was not in silicon valley. i am glad we had that conversation, made the investment. we had a good run here. we just finished a quarter of $200 million, $800 million run rate. we hope to pass $1 billion soon and we soldier forward as we move into our new headquarters in downtown san francisco. >> we would not be here celebrating a police announcement without a building. i encourage you all to look at what 680 folsom street looks at today, juxtaposing it with these renderings. it is not only good for the economy, but for the urban landscape. i want to thank michael for his work to date for helping to transform this location. >> this is about the 20th project we have done in san francisco. it is visually challenged in its current state, but we think we have put together a great design. our partners and others have hired the best architects with som -- one of the best, sorry. we are pleased with the design. both jerry and his company had decided to go here, but it was a

we haven't even touched on cisco. >> cisco trading up 85 cents when the number came over and sure enoughthere's always one line that matters more than anything else, which is the growth rate. john chambers took the growth rate down and it was kind of shocking to me given the fact the momentum of the company. i think he's being too conservative. that's been his lot of late and i don't think the stock is nearly as negative. >> downgrades, by juniper. >> juniper is owned be i my charitable trust, i'd love to think that juniper is holding in there. cisco is taking some share for juniper, but juniper has a series of products that would make 2012 a stronger year. >> that's the reason they missed the most recent quarter is timing of the new product. so theoretically with the new products out, they would be able to ramp up and regain that. >> several times he's come on the show of "mad money" and have been saying, look, there is -- we've got a very big 2012 coming, it did not seem that chambers said he had a big 2012 coming. at the same time, there's good cloud stuff they're doing. >> oracle buy

, ladies and gentlemen, please welcome our host, the 43rd mayor of the city and county of san been cisco, the honorable edwin m. lee -- the 43rd mayor of the city and county of san francisco. [applause] mayor lee: wow, welcome to city hall. and thank you, beach blanket babylon. what a wonderful performance. let's give her another hand. that was just fantastic. when i started being mayor of the city, i turned to our protocol officer and said, "you know, charlotte, we are going to do a lot of work this year, but these years forthcoming, as we work hard, i want to also have fun. isn't this fun? all right. [applause] this is our 50th anniversary of the wonderful song, "i left my heart in san francisco." tony, it is wonderful for you to be here and grace us and honor us with your presence. your 17 grammys are just so unprecedented. you just won two more this past week, and what a wonderful career. congratulations, tony. i want to thank our school of the arts. i want to thank our boys and girls choruses. thank you. wonderful performances. it is a fitting tribute that our boys and girls choruse

cisco. six months ago they were really, really hurting.ut they've bounced back as they've grabbed market share back and people realize it's not just a cisco issue in networking, there were some overall issues. f-5 has continued to do well and akamai delivering all that content from various providers trying to stream it. finally, old school is not so uncool anymore. remember seagate, the hard drivemaker? they've dodged the bullet on thailand. continue to get those out there at a good margin. dell performing well these days. and yahoo! with the new ceo and potential of selling those asian assets, not the dog it once was stockwise. sue. >> jon, thanks a million. all right. stocks soaring on the latest jobs report. the dow crossing the closing high of 12,810 reached on april 29th. and it's just points away from the intraday high. so, how should investors play this market right now? let's bring in our power player, barbara. >> nice to see you. >> do you think this rally is durable? do you think it will continue or is it going to be one of these

best of all the company keeps taking share from cisco, juniper, checkpoint.tinet's eating their lunch. and i actually think it would make a ton of sense as a takeover target for a company like cisco, giving them more exposure to the fastest-growing part of the network security business. here's the bottom line. yes, fortinet's expensive, but i think the speculative cyber security play makes a tochb sense on any pullback, like the one that began today. because its prospects are terrific. especially ahead of this legislation being introduced in the senate next week that i'm sure will have everyone atwitter about ftnt. after the break i'll try to make you even more money. >> coming up, battle of the beds. cramer rarely gets shuteye. but tonight by request he's finding out which mattress maker could help you build the portfolio of your dreams and wake up with mad money. all coming up on "mad money." i love that my daughter's part fish. but when she got asthma, all i could do was worry ! specialists, lots of doctors, lots of advice... and my hands were full. i coul

of cisco which cisco is a company that has forty three billion dollars parked overseas he says no way is he going to bring that back with the rate that foreign earnings are profits are taxed at he says it's easier right now to do business in canada the u.k. russia china india that it is in the united states so how would you get companies to bring any business back here without dealing with issues like that but he's lobbying for tax cuts so of course he's going to say that the labor costs are far and away more important than the tax treatment obviously he maybe doesn't know it but he still has a lot of business in the united states so someone should tell him that you should ask themselves for their tax treatment. such that it makes them profitable to be here having a huge effect on the rolls of prices and they're always going you know obviously they always complain they want you'd rather pay less taxes so of course if you could post story there you know lower my taxes or you know never open another factor in the us well one would you say that i hear you there that's a fair point really

cisco are tremendously indebted to them for. trust me. -- average folks in san francisco are tremendously indebted to them for. trust me. this is a tremendous honor. thank you. >> to present this evening's first award is the commanding officer of the northern station. >> as the chief said, it is a great honor. this is the highest honor we get as commanding officers. i will recount the events that led up to this evening. i do not want to miss anything so i will read it. on the night of july 23, 2010, a woman was driving home. she noticed a group of people involved in an altercation near her home. she backed into her driveway when the subject approached the driver's side window of her car. she locked her car doors afraid for her safety. the suspect, a subject at that point, yelled at her to get out of the car. he produced a gun and finally struck the window shattering it. the victim. for her life got out. the suspect fled in her car. the same suspect accompanied by another attempted an additional carjacking prior. carjacking is wh