emily: you are going to be chairman of hp inc. how does that work in practice? say hp inc. wants to do a deal with emc or some other company. meg: what we have said is that we did not create these two companies to compete with each other. we created these companies to go after new opportunities that only they can pursue. so at least for some period of time we have well-defined swim lanes. so hp inc. will be all over 3-d print. all over immersive reality. we will be focused on converged infrastructure, software defined data center, our services business, helping customers take their i.t. infrastructure from where it is today to where it has to be. so there is plenty of green field space for these companies. that is the reason i do not think it makes sense to eat the other company. we should take share from our competitors. emily: has it been harder than you thought? have you had moments where you thought i do not know if i can do this? this is hard. meg: it is hard. whenever you come into a turnaround -- and i have done a couple of them -- it is always harder than you think.

hp inc performed well. gained share in virtually every category. had the highest all-time share in the commercial pc segment for a long time. and microsoft windows 10 has not yet provided the capitalist to pc upgrades that everyone anticipates. it's still getting great reviews, but there's nearly 450 million pcs out there that are older than 4 1/2 years. at some point people will upgrade those pcs and hp inc is well positioned when that happens. >> do we have a sence as to how many will be upgraded or how many will say i'm happy with the phone or device or whatever they're using? >> it's hard to know, but many people still do real work and productivity, not just surfing the web. if you have to do real work, it's part of your existence, you will end up upgrading that pc. that business is a cyclical business, always has. and my view is, i think dion's view is that will rebound over the next year or year and a h f half. so tough market, but hp inc has done a good job in competing in a down market. >> since you

hp inc sinking in after hours trade while hp enterprise jumps on a solid profit forecast. uber's global head hints at how the ride sharing firm could be carrying more than just passengers in the future. >> it's part of who we are and this logistics platform is capable of doing more. >> welcome to worldwide exchange. a lot to get through. great conversations coming up julia live in brussels. first let's give you the latest on this story. now the turkish president saying his country will not escalate tensions with russia following the downing of a russian military jet by turkish forces. speaking within this last half an hour he said turkey had shown restraint and didn't know the downed jet was russian. the turkish president also defended the actions of his forces. >> we don't have any intention to escalate the situation. >> what we want is to defend the right of our security and the right of our brothers. there's a wave of frustration at our borders. >> just giving their side of the story there. important also to know it that it's not the first time that you've seen russian

hp lowered by 8% hp inc while hp enterprise is up by 2.5%. mega whitman should be on squawk on the street later on after 9:00 a.m. eastern time. >> now the ride sharing giant uber is facing regulatory challenges in a number of key markets in mar relating to the employment status of its drivers. the 1099 issue forced a number of sharing economy companies to change their employment models as part of our tech transformer series we spoke to the head of global operations and asked for his thoughts on the on going controversy. >> we look at the platform and the partners that we have on the platform, it's essentially very obvious to us that over half of the easing platform. so for this full time discussion it's like that's just not how our platform is used. so when you dig in just one click into the data on how drivers think about using uber to earn supplemental income it's pretty obvious. overtime that will play out. >> is there a point where you think public investors would be more comfortable with your business model just given still the risks th

hp inc will consist of printers, and hpe will focus on servers, networking, data storage and many others to keep the technology up to speed at corporations. this comes after hp said last month it would wind down its public cloud computing offering by the end of january. dropping out of competition with the likes of amazon's aws service. here to give us details on the plan for the future is meg whitman, chairman of hp inc. very nice to have you. congrats. >> it's a thrill to be here. >> 13 months in the making. let me start off asking you a question from something in your press release announcing this this morning. you say we have a unique vision for the future of technology. what is that vision? >> so, every company, whether it is a small company, big company is having to take their legacy i.t. system and transform themselves so that i.t. can be a competitive advantage. how do you turn an idea into reality in warp speed? we are uniquely positioned to help companies do that, we have hardware, software and services and are focusing around a small number of problems that are important for

i think people view hp inc. as the spinoff that maybe was the neglected piece that maybe you wanted to grab hold of. to me it's all about what the market perceives. >> and we should mention hp inc. giving up 3.5% or so on this report while hp enterprise was up about 2.5%. again, there's like five sets of numbers. >> i think people got overly bullish on hp enterprises. i think they got overly bearish on the hp -- did i say it reverse? hp inc. they got overly negative. when they split, you saw the reaction. they just tore off. i think they both settle in now and probably see the real reaction now. >> david? >> yeah, you know, it's going to take a while for each of them to establish a separate investor base. that's in process right now. they are very different, remember. one is really a no-growth business. it's returning most of its capital to shareholders. the other, they're hoping for growth. they've seen it at least in constant currency. man, are they getting hit by the dollar when you look at the real potential

oh, sorry. >> hp inc. or hp enterprise or other? >> and other is a wide open category, isn't it? >> yeah. >> other than i could go red hat, it an other i would go. pete is shaking his head no. microsoft is one. >> look at the way i traded today. >> sales force is another other i would go. so given that -- >> so the bottom line is there are many other things before either of the hps. >> there are interesting things. >> and the interesting names, who is microsoft potentially looking at, everybody is looking at. >> crm. so you say giddy-up to crm. >> giddy-up, indeed. >> good game. >> i try. >> hewlett-packard enterprise kre meg whitman will be on the "squawk on the street" tomorrow with david faber and gang. you don't want to miss that. >>> we have a news alert from meg tirrell. >> just wrapping up now, a panel to the fda have been meeting to discuss a drug to treat muscular dystrophy, they are raising concerns about the efficacy and the safety of the drug echoing concerns laid out by the fda in documents on friday ahead of the panel. that drove the stock down 5% or 6% on friday. d

meg: first of all, hp inc. and hewlett-packard enterprises are quite different businesses.ifferent customers, different competitors, different cost structure. charlie: the same with amazon in terms of retail -- meg: yes, but we had a company that needed to reinvent itself against it we just thought, let's separate these into two different company so we can focus on these two markets because hp inc. has 13030 ises to -- 1/3 of their businesses to consumers. so, we thought let's get the really focused on the enterprise and what we can do for the t.p. professionals -- i. professionals and help them do a number of things that are top of mind to it every cio is thinking i have a legacy ip infrastructure be i have got to get to the new world order. i have to get to the new style of i.t. the cloud. i have got to be more agile. we are unique suited to help companies on that transformation because those big companies, they have got to keep running their legacy ip systems. charlie: who are your customers? app,cio's and vp of operations for anywhere from small to very large companies.

then you've got hp inc. they had inventory issues, built up inventory ahead of the split.dows 10 if it's going to have an impact during the season, that hasn't kicked in yet for them. it kicked in for microsoft. but not hp inc. then you've got printing. i hardly print anything anymore unless i'm at work. i can get it on my mobile device. i don't have to print it. they've got issues where they got to take the cash from businesses and invest it in something else. and they don't seem to have shown what that is yet. >> printing seems to be problematic because it is the lion's share of the profits. that could stabilize in mid-2017 but the secular pattern, you would think, won't reverse itself. >> absolutely. we've been hearing chatter that the printing business is really a prime target for some sort of takeout. i mean, nothing specific, but lots of scuttlebutt that that shouldn't really be an independent business. but, you know, the free cash flow, not great. below expectations with what they announce so it looks problematic all around. >> meantime, comments on the dollar, if y

hp, inc, and hp enterprise.n with the ceo, meg whitman, to talk about the future of the company and what it is now. hewlett-packard, as you know, is splitting into two different businesses. the first is hp inc and hewlett-packard enterprise which is the cloud software and service businesses once really focused at the enterprise and solution selling to help customers take their legacy i.t. system and move it to the next generation and the other is fantastic printers and pcs, ultimately 3-d printing. really just completely different businesses. >> if we're sitting here one year from the split, what do you hope that hp, the two hps, what do you hope they look like, meg? >> well, i hope they continue to look like really strong companies servicing the customers' needs brilliantly and that we are at the top of everybody's list when they are trying to think through on the hewlett-packard enterprise side, you know, what their future i.t. needs ought to look like. i hope we're the first people they think of and i hope th

hewlett-packard and hp inc. report. the newly separated halves of the whole, opaque now. listening to best buy tell a story that wasn't complementally to printers yesterday, i'm not sure how i feel about hp inc. they need an acquisition. i suggest they buy this company. the one capped by meg whitman can paul off a good quarter out of the chute. both stocks cheap. i don't see you getting hurt by either. wednesday's all about agriculture and the king that is john deere. farmers haven't been doing well around the globe, grain prices under serious pressure. avoid deere entirely. we know it's not enough to drive aren't spending. we've seen caterpillar, two other equipmentmakers fall under short-term pressure. deere could be the same. thursday, turkey day. every year i usually do this -- um, -- it's not the telestrator? oh, you have to take one hand off. okay. this is -- time-honored traditional "mad money." our 2,200th show. the little gobble thing. anyway, this is a big day unless you're like my two vegetarian daughters, because we have tofurkey. hope it doesn't burn to the c

one hp, inc., making personal computers and printers and hewlett-packard enterprise. the biggest split in tech company history, now the hard part. to convince customers to buy now that the long struggling company has changed. >> i do think if markets shrink and they can't go together to create great solutions, they'll lose customers and have more layoffs. >> it also changes things for hp investors and there are this a lot of those in the bay area. two separate companies trading on the stock exchange with two separate stock sim boms. this move as they're planning another round of layoffs in the year to come. hp inc., boosted shares of that company by 12% today. back to you. >>> scott, thank you. that impacts a lot of people in the bay area. happening right now, the rain has triggered mudslides in livermore. this is paterson pass road. this video shot a few minutes ago. we're also learning another road has been partially blocked by mud as well. >> terry mcsweeney is on site and will be updating on twitter and facebook. he'll have more on the mud in the 11:00 newscast. >

hp inc. i do think is more interesting. yes they're crunched by apple on one side. but they have also an enterprise business in manage print services that i think gives them a diversified stream. they're not, in my mind, as challenged as hp enterprise is. >> it's interesting to hear you talk about the different strategies of what a bulked up emc dell is doing and what a streamlined hp inc. and hewle hewlett-packard enterprises is doing. now the conversation is already what do each of these units need to buy to get growth. >> right, and i thought her comment this morning was scary. when he brought up cloud, amazon, google, she said, that's not the business we're going to go in. we're too far behind. reminds me of the comments that rim made when apple came out with the iphone. we're not in that silly thing business. we're in this real enterprise. if she's in that business, i don't want to be in her business. >> isn't it being realistic? taking amazon head on, they'd be called foolish. >> i don't think head on is the way to do it but to say we're going to make some sma

we'll preview the numbers for th hp enterprise and hp inc. first to our lead. alibaba's founder in talks to buy a stake in the publisher of the south china morning post a hong kong based english newspaper according to people familiar with the matter. if the deal goes through he would be following in the foot steps of other tech executives getting involved in media businesses. amazon's jeff bezos of course bought "the washington post" in 2013 and chris hughes the facebook cofounder who bought a majority stake in the new republic in 2012. i asked jack ma about this when i traveled to beijing earlier his month. >> i'm interested in many things but i have to care for may shareholders and our strategy. >> would something like that make sense? >> well, yes. a hink media, we invest in lot of online medias. u see, we also invest in -- tional business like people say, well, internet, the offline retailer business, together we rk can do better. if it can be better -- for the media the same thing. we think this might be very interesting to help for us to understand them,

well a name in the news today, hp inc.tom tumbling on earnings with a pe ratio of just above five. but cheap is in the eye of the beholder. the stock is down more than 30% this year. so a low earnings multiple doesn't always mean a stock is cheap. melissa. >> seema mody, thanks so much. are any of these names worth buying? what is the best discount buy here? >> valero discount is all relative to a sector that has been cranking. and it is a bit of a turn-around story. they have a lot of cash, free cash flow. and margin flow is turning around an the -- and i'll take that all day and the refiners look good. phq, why would you want to go there and printing is in trouble now. not so much. >> i think hp inc. has to prove itself. it was oversold and then you have the overbought, it goes back and forth. so i think it has -- the smoke has to clear on this one. vale valero, they skew the p.e. so it still looks okay. if you believe that crude is going to stay right here. >> so let's go to each of your discount plays. stocks that are

hp, inc. will sell personal computers and printers, while hewlett- packard enterprise will focus on commercial business. starting tomorrow, each will trade separately on the new york stock exchange. by dividing hp into roughly equal halves, each spinoff should produce more than $50 billion in sales next year, according to analysts. >>> open enrollment begins today for cover california. it's a chance for americans to sign up again for federal health insurance under the affordable care act. people did just that today at a health fair in san francisco. more than 20 agents were on hand to help people get the coverage they need. >> what makes cover california successful is if we have everybody sign up for insurance, it actually changes the risk pool and will reduce the cost for californians too. >> if you need insurance, you have until january 31 to sign up. if you want it to take effect by the first of the year, you'll need to enroll by december 15. people who choose to go without could face fines.

hp, inc. will sell personal computers and printers while hewlett- packard enterprise will focus on the commercial business. starting tomorrow, each will trade separately on the new york stock exchange. by dividing hp into roughly equal halves, analysts estimate each spin-off should generate $50 billion in sales next year. >>> vacaville had a turn today to look at the super bowl history of the 49ers and raiders. besides the trophy display, there were plenty of interactive exhibits. children could try to navigate the obstacle course and it's part of the nfl's play 60 health initiative. the 50 tour is making its way around the bay area as part of the buildup to super bowl 50. >>> get this. there are 97 days until super bowl 50 kicks off at levi's stadium. you'll be able to watch it february 7 right here on kpix 5. >>> a big tradition today in mexican culture, the day after halloween known as the day of the dead. but it's not as morbid as it sounds. deiah de los muertos focuses on family. >>> we're

hp inc. will sell personal computers and printers. hewlett-packard enterprise will offer commercial systems. they've struggled to keep pace in the world of smartphones and cloud computing. each will strength separately on the new york stock exchange starting monday. >>> dozens of chipotle restaurants temporarily closed down. coming up, the health warning behind all the shutdowns. restaurants in washington state and oregon are closed, after people got ck >>> closed because of e. coli. this weekend, 43 chipotle restaurants in washington state and oregon are closed after people got sick. three of those people are in the portland area, 19 are in washington, and many of them had to go to the hospital. right now it's not clear where that e. coli came from. it's been traced to at least six restaurants. but chipotle says it closed down all restaurants in the affected areas out of caution until the source of that problem can be found. >>> in the south bay, some kids and families have been trick or treating for hours already at great america in

a prophet you see as for hp ink versus hp enterprise hp inc vs hpt for enterprise? we should not be surprised when the world is going to mobile and away from desktop. in a way, the acquisition, one of the things we talked about in the first bloomberg west ever, i think in 2010, it is interesting to see the stock performance, which has been about equal. up exactly 34% since meg whitman took over. interesting, the three-part. emily: the biggest tech merger ever, hp splitting into two companies. i wonder when we look back, which decision will be smarter. meg whitman has criticized. it is money they are taking away from business critical. michael dell has fired back. i spoke to him. take a listen. year, spent, last more than $4.5 million on sharing purchase dividends and expense. so, if hp were to go private, it would spend, i calculate, about $2.5 million on, i am talking -- it wouldole hp save $2 billion that we could reinvest in our into deep. her argument is ridiculous. be on the is going to right side of history? both, neither, what are the other? >> neither is an

hp, inc. bellow the street estimates as it struggles with weak sales.ales of hewlett-packard enterprise rose 2% in extended trading. that company which is lead by meg whitman. >> nicole: data out today includes durable goods, analysts look for a reversal of last year's decline. we will check out new home sales for october could give us clearer picture on the housing market and how the consumer is feeling and we will get the insight on that. >> cheryl: bottom line isn't looking for u.s. farmers, usda farming is expected to fall 38%, that would be the lowest level in more than a decade. federal forecasters blame on crop prices and dairy in markets. >> nicole: disappointing forecast to farmers that's expected to hit quarterly reports when it reports this morning. agricultural equipment industry is on track for worst sales year since 2009. analysts look for deer to report . currencies coming under pressure. watch deere and caterpillar. >> cheryl: there you go. certainly we have to watch headlines. employees saw problems in air bag tests. that's not good new

hp inc. >> that was bad. >> yeah. that was incredible. >> that was last wednesday after the company reported earnings below what was anticipated. >> took my breath away. it was so bad. intel not doing badly. >> ink and printing, where you have the japanese yen -- the dollar conversation we had earlier. the weak yen is making their products competitive on a price level. really bringing things down. hp inc. has to decide where they want to compete and where it doesn't. >> do you think it's right -- i was looking at an aluminum company worried about closing a big factory in south carolina. strong dollar in china. >> what's the alternative? not to have free trade? >> no i want the cheapest product for the consumer. i think that the japanese have debased the currency to the point where we can't compete. >> right. as we said, all these companies reporting constant currency to show what the strong dollar is doing to them. when they had the wind at their back for a decade or more, nobody did that. >>

hp inc. will sell computers to businesses and hp enterprises will focus on software. each could generate $50 billion of revenue. meg whitman who led hp since 2011 is now the ceo of hp enterprise. she rings the opening bell at the new york stock exchange today. she will be speaking with david faber on "squawk on the street." 76 years and they're splitting up hp. you know, this split means more profit on the high margin printer business, right? somebody see as a dinosaur. the fact that hp enterprise hasn't been serving the business customers very well, the cloud, there's a lot in the future of hpe. >> hpe i suppose is up against it but long term that's what the core has been. that's what meg whitman will continue. i agree. putting on the point the fact with the spinoff of the printer business, the hardware business as it were is the margin. i wonder how that's going to trade separate to hpe afterwards. is that going to be a low multiple because it's less long-term growth or high multiple because it's churning off cash. it will be easy to see. >> we're calling it higher

hp inc. which will sell pcs and printers, consumers and businesses, then you have hp enterprise and it will focus on software and services. each could generate more than $50 billion in annual sales. meg whitman who led hp since 2011, now ceo of hp enterprise rings the opening bell of the new york stock exchange. she will speak on "squawk on the street." >>> sprint is looking to slash its expenses by as much as $2.5 billion next year. this includes layoffs and a wide range of cost controls as part of the turn around efforts. sprint says it will provide more details on the job cuts when it reports earnings on tuesday. "the wall street journal" says among the percs are free snacks notice office which include bottled water and yogurt. sprint is trading at the moment in germany down 2.6%. >>> right. off the back of this, while sprint is cutting costs like we said including free snacks, we're asking you what company perks would you hate to see taken away. get in touch with us at worldwide.cnbc -- >>

hp inc.ll continue to sell printers and computers and will deep the hpq ticker symbol of the legacy company. is that stock has risen mostly in nearly two and a half years, in the past two and a half years. hewlett-packard enterprises which will sell server and storage devices is trading under hpe. meg whitman explained why she spear headed this break up on kns earlier. >> we looked at the marked and looked at their strengths and being smaller an more nimble is an advantage. this is a completely different capital structure. two different strategies. we have a lot of confidence that our strategy will be right. >> whitman will be the ceo of hewlett-packard enterprises and share of hp inc. >>>est alloweder is rising the most in more than three years today, better than expected earnings helped by new products and luxury fragrances. they increased their quarterly dividend by 25% to 30 cents a share. there's that consumer again. >> shares of chipotle mexican grill are lower after the chain shutting

. >> it was a tough pc market, but hp inc. prepared very well.gained share in virtually every category. had the highest all-time share they had in the commercial pc segment for a long time, which is the more profitable segment of that business. can hp turn itself around? we have john fort joining us. to you first, when you hear meg whitman, if you are an investor in hp, what are you hearing today? >> of course, not being an investor, i'm not exactly sure, but i tell you, i look at hp enterprise. it's obviously got a single category where hp enterprise absolutely controls its destiny. you look at industry standard servers. that's been going okay. now you have the server business separated from the business, and it's unclear how the cost of economics of that are going to go forward. network is going better than it was. hp, the size that it's networking business is you hope that it would be growing faster versus the likes of a cisco or a juniper. go on to services to security as down the line. it's a bit of a different beast. if are you looking at t

if you look the stock prices this morning, hp inc. is cratering. nterprise is trading modestly higher but they cap -- gap is so wide. : they do not break up earnings results for the two companies when they split in november. the results from last night was the last time we will get hewlett-packard results. let us take a moment and think about all the wonders enjoys that they have given us in the 20 plus years. what it has been is kind of a disaster. beside 9% year-over-year sales declined under meg whitman's last quarter with the company. is the worst sales declined it seemed quite a long time. the entire business and almost every aspect of the business is shrinking. the hope is you would have two businesses that would be very different. a steady printer business that sells pcs. and supplies and printers and ink. and you have a high-growth business. selling network routers, services, software. but across almost every single metric, and all those business units -- look at software. they spent over $10 billion in software evolution in the past five ye

the first company hp, inc. selling printers and pc's, the second will focus on selling software and hardware . >> dagen: absolutely, that is the future of computing as we know it and what hp is doing is clearly evidence of that. >> keith: if you don't have a strategy, the internet bubble is now the cloud. if you don't have the cloud, what are you doing maria? >> maria: are you poopoing cloud? >> keith: i believe there would be another recession at some point in our lives. >> maria: you said in the next six months. >> keith: i'm on the record for that. we are going to say the cloud. [laughter] >> dagen: i looked at it and went, i can't believe it. >> maria: full swing, we will give you the preview, back in a minute. ♪ ♪ ♪ i accept i'm not the rower i used to be.. i even accept i have a higher risk of stroke due to afib, a type of irregular heartbeat not caused by a heart valve problem. but i won't accept is getting out there with less than my best. so if i can go for something better than warfarin, i will. eliqu

whichever way you slice it, hp inc. is doing much better today. it sells printers and computers.round $26 billion. hewlett-packard enterprises sells servers and storage devices and its market cap is around $27 billion. meg whitman who is the ceo of hewlett-packard as a combined company says she expect a lot of volatility in the next few weeks. it looks like investors are voting for the legacy. business is the one that's doing better today. olivia: you would think software is where it's at. it's very interesting. and business focus but maybe there is a lot of competition on the enterprise side right now. olivia: thank you so much. scarlet: let's check in with mark crumpton. as investigators try to determine what brought down a russian passenger jet over the weekend, there is new information on the risks of flying over the sinai peninsula in egypt. there have been overflight warnings in place. the site of the crash that killed 224 people on board is the metro bus air -- is the metro bus airplane. 26,000 feet is for bitten. russia says it will not stop until all of the bodies of bee

hp inc. has been up all morning, about 12%.ght now down slightly in trading. it looks like already the two companies are going in different directions. we'll be watching this. >> pam, thank you. >>> time is 8:49. sal is watching your commute. your hands are full. >> they are. and i'm just going to show you drive times here, dave. we're going to start on the east shore freeway. 80 westbound has improved. it was more than an hour. now it's just under that time, less than that time. westbound 80 from the carquinez bridge to the mcarthur maze. the bay bridge toll plaza traffic is super busy this morning as you drive into san francisco. i want to mention the dunn barton bridge, thousands of nails have been spilled eastbound. westbound traffic is very slow. we look 580 at greenville. two lanes are blocked. if i didn't mention your commute, it doesn't mean it's great. lauren writes, been driving for two hours already, still not anywhere near my destination. i'm sorry, but what the heck is going on. >> sal, why don't you show my time.

nicole: hp, inc. and hp enterprises. it's the last time they report together.ewlett-packard, hpq, down 12 1/2%, no one wants pc's anymore. revenue dropped 14% and it's down five quarters in a row. they cut their forecast, that's the big loser. on the other hand, we did see up arrows here for hewlett-packard enterprises, which is business and enterprise software, so that's a winner on the other side of the coin. i'm thinking santa might walk by behind me as well, but we do have santa here today for macy's parade. stuart: looks like a lot of tourists going past you right there on the new york stock exchange. that's all good. welcome to new york, everybody. big tech names, we check them every day and start with apple. where are we this wednesday morning? well, apple is virtually unchanged at 118. it's been dead flat for a couple of months now. 112, 118, that's the range. how about netflix, it was getting awfully close to a new record high just in the last-- netflix, yeah, at 124 this morning, it's up a buck 40. do we have facebook, please? last time i checked, it

hp inc.l sell personal computers and printers while l hewlett-packard enterprises will have networking. will they have to play catchup with some of the other giants. let's bring in eric hesselbell. thanks for coming in this morning. >> good morning. >> the reason for the split is what? >> well, hp was too big a company. it was -- when you talk to meg whitman she uses the phrase smaller, nimbler, and basically what it meant was the pc and printing business was dragging down the larger, allegedly healthier enterprise by which has potential for growth. that's a complicated question. that's the large reason for it. she decided they were better apart. >> which of these two companies do you think is in the good position. we've seen cbs and viacom. everybody thought viacom was in the best position and cbs took off. >> the real question is which one is meg whitman running? >> you do remember it was the opposite. viacom was a great example. is it possible that the pc business turns out to be the bette

inc. tumbled. they say it expects first-quarter earnings lower than estimates. hp enterprise shares are basically flat. earnings in the first quarter. those will also be below estimate. anding us now is crawford in the studio, cory johnson who has been digging through the numbers. what are the key takeaways? any time towas ever not listen to analyst estimates, it is now. we see a business that is shrinking on every count. profitability is shrinking. and when you go under the covers and look at some of the businesses, like pcs or printers, they are down. i went back to look at every model and there has never been a big decline ever. that is the cash on the machine. are weak and the future is that also. software sales are down double-digit year-over-year. -- have spent are there any bright spots that we are not seeing? crawford: there are. margins in services were actually up considerably to the height they have been since 2011. but he would have expected that because that is where most of the cuts had been. also, where they have application to business services , th

brian womack covers hp for us joins us and still with us, jeff clavier, our guest host for the hour. brian, you spoke to meg whitman this morning. if you look at the shares, h.p. inche p.c. company did much better than h.p. enterprise. >> it did. actually, it is interesting. she gave a spirited defense of two is better than one. we're going to be smaller and go after these markets. but i asked her about these stock markets moving all over the place. at one point, the enterprise part of the business dropped fast. she said look, there's going to be a lot of volatility. we don't know what is going to happen. give it a few weeks, even a month. the we will know where market thinks these share prices should be. emily: any nostalgia for the good old days? jeff: it sort of makes sense for those guys to split. the question is what is the long-term business for those in a low margin shrinking sort of business? both end up being interesting in the short term, cash cows, i heard in the report, but how can they stay competitive. acquisitionnext that hp enterprises is going to pull out in order to stay ahead of the competition? emily: the stock hasn't moved much since meg whitm