it is isn't a dell-only problem. you wonder can michael dell really fix things up at dell?> certainly he has done well enough in the past. but investors have been scratching their heads in the last five years, wondering what is the next great idea michael dell was going to have, rather than trying to put together a small-scale version, if you will, of the ibm software services and hardwareodel. >> susie: i wao ask you about hewlett-packard, because the statement that came out of hewlett-packard, let's pull it up. they said dell has a very tough road ahead. we believe dell's costumers will be eager to alternatives, and h.p. plans to take full advantage of that opportunity. you know what they say about people in glass houses. late today the board came out and said that hewlett-packard is considering breaking itself up. does hewlett-packard stand to gain something in all of this? >> certainly hewlett-packa is talking ou of both ses of its mouth. in the event that hewlett-packard considers going forward with the breakup of the company is that one of the calls might be to silver

it is isn't a dell-only problem. you wonder can michael dell really fix things up at dell? >> certainly he has done well enough in the past. but investors have been scratching their heads in the last five years wondering what is the next great idea michael dell was going to have, rather than trying to put together a small-scale version, if you will, of the ibm software services and hardware model. >> susie: i want to ask you about hewlett-packard, because the statement that came out of hewlett-packard, let's pull it up. they said dell has a very tough road ahead. we believe dell's costumers will be eager to alternatives and h.p. plans to take full advantage of that opportunity. you know what they say about people in glass houses. late today the board came out and said that hewlett-packard is considering breaking itself up. does hewlett-packard stand to gain something in all of this? >> certainly hewlett-packard is talking out of both sides of its mouth. in the event that hewlett-packard considers going forward with the breakup of the company is that one of the calls might b

michael dell will be the majority owner of dell.h silver lake, but nonetheless, he will be the guy in charge. >> stock was -- did have a 14 handle as recently as friday. the 52-week high is 1836. the guys are coming out saying this is not the end-all, be all price, do they have a point? >> often when you do see a 52 week high, the buyout group being silver lake and dell are simply going to make the argument, the unaffected stock price will be -- we're paying a people dwrremium to cash. we're paying $1.30 for every dollar in cash. this is a very uncertain time for this company, this uncertainty. we want to continue to take on this risk, do you, mr. shareholder want to continue to take that risk. they have another 35 days to look for a partner. >> at least we have the news out, that's one problem solved, david, thanks a lot. david faber. the market meantime making a come back after yesterday's triple digit loss, earlier on "squawk" we heard from ron barron make some bullish calls for the market. >> i'm expecting 17% average growth for

dell earned 40 cents per share last quarter. while that's down considerably from a year ago, it is slightly better than wall street estimates. still, business continues to be tough. the lone business dell saw revenue grow last quarter compared to a year earlier was in its server business, up 18%. the other five-- storage, services, software, mobility and desktop p.c.-- all saw revenue shrink. carr lanphier is an analyst with morningstar. carr, what do you think, on the mend? sustainable? what are your thoughts? >> well, i think dell is really carried by its server and networking business. that was really as a result of its acquisitions. softer, and there have been several acquisitions in the last few quarters that drove those revenue gains. i believe networking group, 42%, which led to that growth there. >> tom: that's not that core business that everybody knows about dell, though, the selling of computers, p.c.s, desktops, laptops, and net books. it grew slightly from last quarter, up about 3%, but down 20% from a year ago. the

just so happens the buyer is michael dell. david: dell has stuff besides pc. but there is the demise of pc, everybody going mobile. but perhaps it is premature, there is still some life in the pc market, that is what this seems to show, right? >> i agree. if you look at the laptop business, you can find some nice high-performance laptops for cheaper than an expensive tablets. we have to wonder, at some point consumers are going to figure out what they are getting for what amount of dollar and i think you will see some of that slip back into the pc space. plus you are seeing apple, everybody claw at him, that will be a real problem for apple and bracing for a lot of the pc makers. in truth, microsoft. liz: ashley, don't know if you can see from where you are, what their pc business did, it has been under pressure, i am not seeing it on the wire. >> there was consumer revenue off by 24%, but other than that there hasn't been a whole lot come down. liz: storage revenue. david: we will be going back to mark sebastian, both of which are due to report within this ho

what about dell's share price on the stock? do you take a flier on this, carr, thinking that michael dell and others will come up with a higher price or do you move out of the way? >> i think you move out of the way. we have a fair value estimate of $14. we think that's a fair bargain. we don't think it is going to go up because the cost of capital is taking on additional liquidity. >> tom: do you have a position yourself indelibly? >> i do not. >> tom: carr lanphier watching dell with morningstar. >> susie: still ahead on the program tonight, from lance armstrong's doping scandal to olympic runner oscar pistorious' murder charges, does nike do enough to protect shareholders from who promotes its products? harsh words today from president obama about budget cuts. he called on congressional republicans to avoid automatic spending cuts, the so-called "sequester" that kicks in on march 1. he said this "meat cleaver approach" will hurt the economy and hundreds of thousands of americans will lose jobs. the president got some backing

dell takes the company private.xt-generation, coming public, adding value by reconfiguring the entity to reflect the higher margin of proprietary business. in terms of verification of this value and this market, the $24.4 billion buyout of michael dell is no vanity plate. dell has to borrow a ton of money. he's got backers much bigger than his personal war chest. he's got microsoft on a couple billion. silver lake a very shrewd private equity firm with a record of investing in out of favor but solid technology companies with good cash flow trying as much as $15 billion. i can't think of a better affirmation what that could be worth and what an in-your-face sign that the personal-computer portion of technology has a few innings left in the game. how about companies that already have a problem? what do we do with those? are they being bought? are these valuations stretched as the younger analysts have repeatedly told us? take virgin media, a company when i was looking at the charts, that's a gigantic european cable co

from office's office to dell's dell, how you can belt on the smart money. best buy. the stock is on fire this year, but should you put your money where richard schultz's mouth is? a good old fashioned street fight. and apple versus goodell. the country's top analyst weighs in. while colin gillis is looking beyond the two for his top pick. first, let's go to the markets. the dow and s&p 500 hitting fresh five-year highs. and it looks like the stocks are breaking out. if you are a believer what is your top breakout trade at this point? josh? >> well, we broke out in mid-january in the wilshire 5,000. we have heavy participation from small and mid caps. the area that i still think has the most room right now is energy. specifically exploration and protection. they have not kept pace over the last couple of years with the rest of this market, so, if you want to own the basket, the ticker is ieo. specific names, look at apache, every one of these charts looks incredible and valuation-wise, they still have room. >> why not go with the refiners? >> what i'm pointing to you

dell and herbalife both set to report. we'll have instant analysis of all those numbers right here on the "closing bell." >> before all that, let's check the markets here as we approach this final hour for the day. the dow jones industrial average up 45 points. just shy of the high of the day. about a third of the% higher at 13,426. nasdaq also strong and technology one of the winners. certainly the nasdaq up a half a percent and the s&p 500 looks like this. take a look. similar chart pattern, just shy of the high of the gain with a gain on the standard & poor's of nine points. >> the s&p coming off an historic week after ending a seventh weekly win, gain. the last time the index opened the year was seven consecutive weekly gains. was in 1967. plus, the dow right now is closing in on its all-time high. roughly we're a little less than 150 points away right now and holding above 14,000 so far. >> in today's closing bell exchange our guests. good to see everybody. >> welcome, everybody. thanks for joining us. >> jonathan, le

dell is a large enterprise vendor.s standpoint it helps them not just on the windows side of the business but also, the enterprise business in context. so dell could be, has been and could be a very strategic partner going forward. liz: worldwide pc shipments are down 4.5% in q4 alone. you look at this and say, where is the future of this? i hear dell is coming out what i hear are fantastic ultrabooks. they also have a tablet of course. but are they at sort of critical mass where it would make a real difference for microsoft's involvement? so i mean, clearly, the direction for devices is more towards mobility. and, and dell and including microsoft, they haven't really, they're pretty late to the mobile party here and i think from that standpoint what we do have today is a compelling product with windows eight on the tablet and just all the different mobile form factors and i think there is room for both microsoft and dell to do well with these devices. i think that you see some of that kind of play out in this partners

dell did 40 cents. but they said they're not going to give guidance given that they're in midst, the process of trying to go private. silver lake partners trying to take dell private at $13.65 a share. many shareholders saying that's enough, you have to up it considerably in order for us to surrender our shares. and given that backdrop, michael dell was not on the earnings call. and the dell executives on the call said we're not going to talk about the buyout. clearly they wanted get that subject as far away from results as possible. the earnings call was short, less than a half-hour. shorter than usual. what did we learn from the call? a few thing. some of dell's growth markets not growing. china in particular doing a little bit better than the others. dell described it as flattish. india and brazil down considerably. public, the public business which is government, largely hospital and schools but also federal government business. dell saying the margins were thinner than they have been in quite a whi

a dell. >> reporter: today dell employs more than 100,000 employees with a market cap of $23 billionnds impressive but that's way down from dell's peak market value of $100 billion in 2000. so now it's time for one more unconventional move. michael dell is taking his company private after 25 years of publicly trading on the nasdaq exchange. leveraged buyout would cement michael dell's hold on his company, but also free it from public scrutiny at a time when it's competing in a landscape packed with tablets and smartphones. it's not clear it will work. critics say michael dell isn't much of an innovator so he'll never turn dell into an apple or samsung. dell still relies on hardware sales, pc, servers and the like for more than half of its revenue. public or private that makes dell behind the curve in today's tech market. and it's not a done deal yet, carol. shareholders need to give their approval for it. right now shares have been halted for trading on this news. carol? >> interesting, alison kosik reporting live from the new york stock exchange. >>> music's biggest night just days

dell is in a tough spot.o sit there and say the stock could go up to $20, i would argue it could go down to $5 before it goes to $20. >> they made acquisitions, $8 a share, these acquisitions cost. they have not written any down. if they're less valuable than they paid for it, they have not written any down. >> that argument doesn't make any sense. >> hold on. i'm not down. >> they have one of the biggest enterprise businesses out there. everybody knows pcs are falling off a cliff. as you mentioned, it was the first down year but potentially in a major spend cycle by corporate america. guess what, i wouldn't be happy sitting at my desk just working on a tablet. >> true as all that might be, these guys risk pulling a jerry yang. we could have a reverse yahoo! situation where microsoft walked away at a certain point and that was the end of the story. that's the risk is a reverse yahoo!. i think i just coined a new phrase, reverse yahoo!. >> yes. i think we will have to take ownership of that and use it on the s

dell, the next generation, coming public. reconfiguring the entity of higher margin of proprietary business. dell has to borrow a ton of montow get this done. he has microsoft loaning him a couple of bill. and companies close to 15 billion. what an in your face sign that the personal computer portion has a few innings left in the game. are they being bought? are these evaluations stretched as the younger analysts have told us? take virgin media, look at the chart, that is a gigantic european cable company. closed at 38 and change yesterday. too much of a run? isn't that a stock worth selling, fleeing? not if you are john malone. the a man so renowned for his deal savvy, my college, david faber on "squawk on the street" call him the smartest man he ever met. after i had taken a minute of umbridge b i found myself concurring. he is paying mid 40, nts waiting for the dip. mid 40s, possibly 47, 48. david didn't know the exact price. in a total aforemation, europe, it is a european cable company. how do i know about his snbs he do

how would you character the deal with dell so far? are you looking at growth? >> i'd give it a solid "b." maybe a b-plus. revenue is better than expected and cash flow expending. ebitda expanding. when you rub that all in, the americans with -- >> one of the issues i've been having with the quarterly numbers is the revenue hasn't necessarily been there. the revenue and the guide answer has not necessarily been anything to write home about, and they are sitting on their cash. michael, are they going to move that cash that these corporations are signature on and actually put it to work this year, do you think? maybe through dels. >> i think there's touch uncertainty right now. think about it, you're an cfo out there, disaster in washington and you see the federal reserve essentially propping up the economy. does it really make sense to spend your cash reserves at this point? there was a comment made earlier about the federal reserve. you know, the reality is. i was talking to someone just a couple hours ago. what's going on in the federal reserve is unflatting th

dell will get his man, because alas his man is dell. virgin media, third biggest deal of the year is once again emblematic of the flaw of the sell the rip strategy, virgin had already ripped and ripped big before it got its bid from liberty. the odds-on move would have been to short this stock, especially in light of weakness at news corps similar properties. who's to argue with john malone? that's like arguing with michael dell or warren buffett. a trio of billionaires. certainly no more than i want to argue with billionaire rich kinder, who is taking advantage of the market's ridiculously low valuation of oil in the ground versus what you're paying at the pump. in order to steal copono, or maybe you want a slugfest or give a lecture to larry ellison for his bizarre purchase of acme packet, a telco stock that had been a free fire zone stock for as long as i can remember. it had been a virtual short sell. i don't feel like arguing with ellison any more than i want to argue with kinder or dell or malone or buffett. i do want to find the

market since michael dell founded the company 30 years ago, the question now is what shape dell will take as a private company. >> tom: susie, dell shares followed the broader market lower. let's get going with tonight's "market focus." >> tom: stocks were lower after hitting five and a half year highs on friday. the s&p 5nd w ureaser pssure from the opening bell. the selling picked up into the ercling bell. the index ended lower by 1.1%.cl volume fell from friday's pace. li3il mon shares traded on the big board.il under 1.9 billion moved on the nasdaq. the technology sector saw the biggest drop, falling 1.6%. the financial and consumer discretionary sectors were wn by more than 1% each. weighing on the market this afternoon was the news we reported at the beginning of the program: the possible federal government civil lawsuit against credit ratings agency standard and poor's over its handling of mortgage bond ratings during the housing boom. s&p 500 parent company mcgraw hill fell about $7 perharen in an hour d .a lfhalf it finished the day down 13.8%. the stock's worst single day n

dell's third largest shareholder, t-rowe price group, believes dell is worth more money. the second largest shareholder, southeastern asset management, also opposes the current dell deal, along with at least six other investors. michael dell is in the process of shopping for better offers. starting today, shoppers can "tweet to buy." american express and twitter are teaming up for a social media shopping experiment. twitter users can now make a purchase just by tweeting a certain hashtag. it has to be linked to an american express account. the strategy will specialize in "flash sales" with certain products. the toy industry is going retro. today wraps up this year's american international toy fair, and we've learned that when it comes to toys, what's old is new again. cabbage patch kids, fraggle rock and my little pony are all making a comeback. companies such as hasbro are re-launching brands to market popular playthings of years past to younger children. toy sales slipped in 2012, down 3.5% from the previous year. we asked a toy industry insider if children have made th

market since michael dell founded the company 30 years ago, the question now is what shape dell will take as a private company. >> tom: susie, dell shares followed the broader market lower. let's get going with tonight's "market focus." >> tom: stocks were lower after hitting five and a half year highs on friday. the s&p 500 was under pressure from the opening bell. the selling picked up into the closing bell. the index ended lower by 1.1%. volume fell from friday's pace. 693 million shares traded on the big board. under 1.9 billion moved on the nasdaq. the technology sector saw the biggest drop, falling 1.6%. the financial and consumer discretionary sectors were down by more than 1% each. weighing on the market this afternoon was the news we reported at the beginning of the program: the possible federal government civil lawsuit against credit ratings agency standard and poor's over its handling of mortgage bond ratings during the housing boom. s&p 500 parent company mcgraw hill fell about $7 per share in an hour and a half. it finished the day down 13.8%. the stock's worst single da

dell's a big employer there. and certainly he wants to, you know, go back to the days where he was seen as one of the top thinkers and business leaders in the world. and as the company has fallen from those heights, so has his reputation. >> okay. editor-in-chief of yahoo! finance. great to have you again. we really appreciate your time. >> thank you. i vote for the iron. >> again -- austin, you know, can't understate the importance that he might see for his personal reputation. nevertheless, stick around. we'll have a break. >>> coming up, disney posts blockbuster earns. the company has big plans for "star wars." >>> welcome back to "worldwide exchange." i'm kelly evans. >> i'm ross westgate. >>> disney could be a happy place as they report better than expected earnings and sees brighter days ahead. >>> no imminent privatization for ubs. the talk of selling shares as the u.k. bank confirms it's likely to face significant libor penalties. >>> a mighty surge for the nikkei in japan. the yen swooning on news that b

jason nolan covers dell with rw bar baird. good to see you. do you see any impediments to this deal getting done? >> no, we don't. we expect this to get done by about the middle of the year. silver lake has done deals like this before with seagate and we do think it gets done. >> what does this deal allow dell to do that it could not do as a public company? >> well, it's really more of the same, maybe at a quicker pace, higher level of magnitude. more investment in r&d, m & a continues as is but at a faster clip. it's really a continuation of what they have been doing for the last three or four years. >> what can dell do to get its monlgo back, revitalize its business that it hasn't already tried to do. >> that's the thing. three need to invest more in the client, the pc. tablets are looking more like pcs and pcs more like tablets. it's really investment in the data center, higher growth, companies, security networking and storage. >> jayson noland, rw baird. >> $5 million, that's what they are seeking against ratings agency standard & poor's.

so i think they're green with envy as they look at dell dell taking themselves private. dave i think what it will allow dell to do is get rid of a lot of the burden of being a public company, some of the bureaucracy that comes with that, some of the overhead that comes with that. ashley: right. >> be much more flexible, nimble company but yet of size and focused on cloud computing. that is the future for dell. that is where they want to bring think, they need to catch up. very quickly, brian, we're almost out of time. what is the endgame for michael dell here? could he be leaving, stepping down, sooner rather than later? or could private stakeholders bring in a new ceo? >> he obviously has to perform. he is ceo and chairman of this private company but i do think this is his second act, right? ashley: yeah. >> steve jobs had a second act. i think this is dell's second act. first was pcs. and he wants to make it work in enterprise and the cloud and i think this is his opportunity. ashley: if he could do what steve jobs did he would be very popular up deed. brian white, tha

plus, getting ahead of dell tonight.nd does the buyout price need to go higher? back in a minute. ♪ [ male announcer ] to hold a patent that has changed the modern world... would define you as an innovator. to hold more than one patent of this caliber... would define you as a true leader. ♪ to hold over 80,000... well that would make you... the creators of the 2013 mercedes-benz e-class... quite possibly the most advanced luxury sedan ever. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. through mercedes-benz today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers. we all work remotely so this is a big deal, our first full team gathering! i wanted to

these days you don't want to hear about dell. if it goes public again, it will be more styling with the times. when it comes to tech, you want to hear about the companies that represent the future not the past. stocks with momentum. tonight, we are going off the charts with the help of bob lyon, doing well for us. the founder and senior strategist and my colleague at thestreet.com. he works with me on the realmoney.com pay site. the four names are fang. fang. fang for short. these are the stocks that seem to be moving higher of late. what is fang? facebook, amazon netflix and google. they all take major bites out of the bears. fang was also the dog on "get smart." as we approach one of the most important days of the year for the stock market, my birthday. if you want to date me, i was partial to white fang and soupy sales. back to the fang of tech. what makes bob a fan? they have been powering higher recently. first off, check out facebook, letter "f" for fang. daily chart. a lot of noise and volatility, there is an important flo

we haven't seen what dell will do.hat they have started their process of going private, it is interesting to see their strategy but i think she landed some pretty powerful blows. >> okay. thank you for joining us today. great to have you. in the meantime, hack aattack. seems like everyday for the last two weeks there is a story about some company being hacked. par for the curse these days. joining us from wired magazine, is matt honen. matt is this just coincidence or is there really a noted rise in hacking right now? >> there's more. there's more than there has been in the past and it is more public too. a few years ago see if jeep or burger king was hacked, you wouldn't know about it. but today because of their twitter feed, everyone knows about it. >> is this copy cats or coordination between the attacks the last two weeks. >> i think both. if you look at the attacks that new york times and washington post revealed, those are coordinated attacks, likely by the same entity. but there are a lot of people doing differe

did last year and dell doing it now. dell did it but hewlett-packard has to do something. >> i think it's the only way they survive, quite frankly. i don't think they survive if they stay a publicly traded company. >> what can they really do as a private company they can't do in the public spotlight? >> they have to meet quarterly numbers under u.s. law to be a security to trade. that's what's killing them. they can't make the big spend without the street saying forget it, they're doing a jcpenney here. all in bet. >> distinguishing between a stock and company. the company can survive better because they won't be refer vaged like they will be after the deal. if you bring hewlett-packard, the last i looked at public holdings, that was a good position. i don't think the stock goes higher without competing. >> if you bought the stock, right, somebody watching the show, probably more than one has held dell some time. maybe they bought it five or ten years ago. they sat and watched the stock go down and now dell wants to take

now, at one point, dell was the largest p.c. maker in the world, boasting market capitalization of more than $100 billion. now, it sits behind apple, hewlett packard and lenovo, valued a fifth of what it once was. ruben ramirez begins are coverage. >> reporter: michael dell admits he missed the consumer shift away from the p.c. to tablets and smartphones, but today's announcement his company is going private doesn't necessary address how dell is going to try to capture

dell went private to buy themselves some time.otentially they are going to be more aggressive in the market, not less aggressive in the marketplace, but never forget that hp's supply chains, their distribution channels, are a huge competitive advantage to them, and once you start to rip apart those supply chains, you lose some of that advantage. >> right. your thoughts on the dell lbo. i mean, was it a wise decision to go private? everybody is pointing to the $15 billion debt load that they will have to service which many feel takes away their flexibility, but at the same time wouldn't you as ceo rather have had a private company rather than having a publicly traded company with everybody looking over your shoulder? >> yeah. i actually think it was a very smart move on michael dell's part. it was clearly a bold move. obviously they have to perform, but i think what going private gives them the opportunity to do is to invest more deeply in r & d without the scrutiny of the public market and pressure of quarterly earnings, and i als

ceo michael dell established the company in 1984.e said he will acquire the company with an investment fund and in partnership with microsoft. the software giant wil invest $2 billion in the deal to forge closer ties with the pc maker. dell expanded his business through a produce to order system that required no inventory. his company was once the world's largest manufacturer of personal computers. but the popularity of smartphones and tablet computers put pressure on his firm and its share price tumbled. dell says the buyout will allow him to turn his company around without subjecting shareholders to market fluctuations. the deal is set to close this summer. >>> fewer drivers in ufrp have been heading to dealerships to buy vehicles lately because of the region's fij troubles. but the auto market in russia is in high gear. new vehicle sales last year topped 2.9 million units, closing the gap with the largest european market, germany. people from vladivostok, who work in the industry, have long lived in the shadow of those from moscow

. >> dell's deal to go priet. >> dude, you're getting a dell. >> an announcement could come as soon asergers and acquisitions, computer conso consolidation and private equity. >> light's out for the 49ers. the baltimore ravens are world champs. we have the highlights and the low lights as the second hour of "squawk box" kicks off right now. >>> good morning, welcome to "squawk box" on cnbc. i'm andrew ross sorkin. take a look at the futures. see how the market is setting up this week. dow looks like it will open up above about 44 points. s&p 500, almost off five points and the nasdaq off about four points. on friday the dow closed above the closely watched 14,000 level for the first time since 2007. now just 154 points from its all-time closing high. >>> dell expected to announce a deal perhaps as soon as today to take the company private. we're going to keep our eyes on that mn dan primack is going to talk about this deal and whether or not we're going to see more consolidation in the computer industry. steve? >> thanks, andrew. some other stories, here are your morning headlines. jap

southeastern says both dell -- say dell is worth more than $20 billion, $20 dollars a share.rent bid is $13.65 per share. boeing says the weekend test flight of the 787 jet was uneventful. it was the first flight since all 787s were grounded more than three weeks ago. boeing wanted to test the 787 lithium-ion batteries under flight conditions. >>> carnival's triumph cruise is being towed to port after an engine fire sunday cut power to the propulsion system. there were no injuries reported and the ship does have electricity from generators along with food and water. thank goodness for that. customers will be given a full refund. now let's head over to bertha coombs. >> they should be given a lot more than that. >> want another cruise? >> the headline we were just talking about, there is a carnival cruise ship floating in the gulf. i was like, well, good. they're supposed to float. if they're not floating -- wouldn't there be more of a story if it wasn't floating? that would be much bigger, i thought, anyway. >> bertha coombs is tracking the latest in the aftermath of the nort

we have to mention dell. yes, we do.hares on a massive leverage buyout, the worst kept secret, talked about it for weeks, more than 24 billion, and the stock's up a percent. not exciting. the buyout for $13.65 a share. founder, michael dell, taking back majority control, and at 14.33 that's a message to silver lake partners and microsoft involved that people are not that excited about this right now. here's who is excited. hp, okay, howard, hp's spokesperson saying with all the debt, quote, del will leave innovation and customers at the curb adding dell's customers will explore alternatives and hp plans to take advantage of that. moving higher by three and a quarter percent. yeah, that's as exciting you see it gets in silicon valley taking advantage of this. we have leverage buyouts better than expected earnings wetting the appetites of the bulls. will the dow finish above 14,000? to the trade show, cme group, and imex. are you a believer in the rally considering we lost this amount yesterday on the dow? >> well, i think

more opposition to dell's $24 billion payout. john fortt is in silicon valley.et's start with apple first, john. is an iwatch coming? >> the basic answer is, i don't know. but i know apple executives liked some of the modifications around the ipod nano, making watch faces for that. we have seen apple get interested in wearable technology. tim cook wearing nike and the jawbone is up and the nike plus system. rarg arguably where this is probably the only place on your body to wear a screen. nike tried the spot watch a decade ago and it flopped. this makes it like the tablet was preipad. big question, how does apple turn a small screen into important connective real estate and how can apple connect us with a screen pretty much too small for navigation. >> let's talk more about what this watch means for apple and what indeed the company can do with all that cash. let's talk about the cash pile, and john, the expectation there in advance of this, these conference or analyst conference tomorrow with tim cook, exactly what he could say, john, that could move the stock.

the texas company will be acquired by dell founder and a private equity firm. microsoft is also taking part in the deal with a $2 billion loan. dell is the number 3 computermaker in the world but has been losing market share to competitors, including hp. >>> san francisco's two championship teams are battling it out on the links in pebble beach. the 49ers and giants are competing in a charity golf event. the giants' lineup features bruce bochy and matt cain and ryan vogelsong. the 9ers are being represented by brent jones, dwight howard, former players. >>> phil mickelson will attempt to tie amare's record at mental beach. last week, he moved past sam sneed and jack nicklaus for second on the all-time list. >>> singer chris brown could find himself in more trouble. the los angeles district attorney says brown likely faked his community hours following a sentence for assaulting rihanna. the d.a. noted in one case he was claiming community service in virginia when he was really on a private jet to cancun. the d.a. is asking a judge to reject brown's hours and mak