ibm is a bunch.e h out, i guess it's bunny. >> let's get to the bottom pitts and quhek in with rick santelli. good morning, rick. >> good morning, carl. virtually a parallel shift of slightly lower rates all of the way from 2s out to the 30-year. but as you look at a two-day of tens, friday we couldn't quite make it up to 2.25. we're hovering within friday's range. if you open the chart up month to date, this is enlightening. not many months you see were 28 basis points down. in the month, you know, two thirds of the way over, that's a big move. also notice that those 28 basis points lower in yield from the high to the low on that chart, that i clusds a settlement on wednesday of last week of 214. today's pivot. that puts it in more perspective. look at a month to date of boons. they drop from high to low. much less, about 17 basis points from 92 to 75. right where they're hovering. things are changing on the southern economies. look at spain, portugal, this is a spain month to date. yes, their ten-y

he's one of ibm's largest shareholders. with today's sell-off, it's estimated that buffett may have lost $1 billion. >> our david faber sat down with ginni rometty today. and despite those earnings and the sharp drop in share price today rometty sounded upbeat about where the company is focusing its efforts right now. >> we're reshaping this company around analytics, around cloud and the term i use engagement, social mobile security, but all for the enterprise. collectively, almost 20% growth improved every single quarter and even individually each of those areas. analytics which ended last year at 16 billion, up in total 8%. a very large number. you take a look at cloud, greater than 50% again. and then social mobile security, every one of them. >> david faber is here with us now with more on his exclusive conversation with ms. rometty. david, welcome, good to have you with us. how big a test is this for ginni rometty? is this her first big one? is her job at stake here if she can't turn it around? what? >> i don't think h

i'm looking at this ibm -- look at the board of ibm.be ageist about it, it's not a young board. for a tech company, it's a relatively old board. i think the youngest person on the board is 54 years old. >> ibm is a tech company? >> what do you think it is? >> i don't think it's a tech company anymore. >> blue chip services. >> maybe that's the problem. >> so far from being at the forefront of tech at this point. it's the problem. >> apparently. >> who are they? who do we got? >> ken chenault is on the board. >> i think shirley ann jackson is on the board. >> yes, here she is. andr andrew libris. joan spiro is on the board. allen vida on the board. michael eskew. used to run u.p.s. and david farce. so it's not -- >> so they're geezers. that's what andrew said. i'm a geezer. i'm not saying it. >> it's substantive boards. these are like the real deal people. on the age thing -- >> what were you saying? >> 54 is the youngest on the board. most in their 60s and some 70s. i'm just saying for what it's worth in a tech company trying to keep up

ibm has made great internal acquisiti acquisitions. >> should ibm become ibm? >> it is not a question of should it and even though it is says it won't, they will have to do something at some point -- >> is that a yes? >> yes. >> you're on the record for a yes. >> we will see you in just a second. >>> your third big story of the day microsoft on a mission to reunify all units into a single corporate org inism. easy for you to say. that is what microsoft ceo told john fortt in an exclusive interview. great, fantastic interview. now go after nadella. >> it is his first tv interview as ceo and interesting transition from ibm. you ask what ibm is, it is an enterprise software company that used people and hardware to deploy the value. now it is in question in the cloud era. microsoft also a software company with a play in enterprise trying to reorganize itself around those issues. first, a couple of years ago steve ballmer trying to flatten it out. take a listen. >> we had actually for many, many years a microsoft structure which is a business unit structure where we

ibm posting

and buffet bought ibm. a lot of it. >> there was a weird trade back in 2007, it's called the yen carry trade. everybody got crushed on that. same with this. these were trades that were on the market betting that this deal, this abbvi shire deal would work out. and the aftermath, short treasuries long oil to commodities that went in the opposite directions. liz: you're very calm today. >> you know, i'm just a little tired. a long weekend. i got a bit of a head cold. ran 12 miles. liz: i didn't say you did. >> you do not have to -- liz: you can't get sick this week. >> no hazmat suit around me. liz: twenty-nine minutes away from the closing bell. investors were forced to hold on for dear life last week as they experienced several of the most volatile days of the year. but our next guest, not concerned at all. he's considered to be the father of volatility. noble prize winner robert engle is our exclusive guest. guess what he's not worried about and guess what he is worried about. and apple pay. will it change

get $4.7lt, ibm will billion. all of this will come into play in earnings in an hour. >> let me redo the math. what is it? >> $4.7 billion. >> keep the numbers round. 5 divided by 25. 20% of 90 days revenue. huge gains it sees in cloud computing, but it is a little late to the party. everybody does. full disclosure, ibm is one of the things i hold. >> and shares are rising in the premarket. 184 is the current trade. >> let's begin on a call or monday morning with two smart guests. david blue is with us -- woo is with us and alicia shalit. lisa, did you buy on friday in which you acquired this morning? >> absolutely. our perspective is this is a garden-variety albeit highly volatile, market correction. this is part of health and hygiene. >> i like that. we found some very interesting and much more appropriately valued spots. >> david, for you and me, lasted was fun. everything was correlated. this morning, how correlated our markets and how correlated is when theconomics? >> market closed on friday crowds a most pe

our own david faber is at ibm headquarter where he wrapped up that interview with ibm ceo ginni rometty. hi, david. >> hey, carl. disappointing day, the words ginni rometty used a number of times in our interview and on the conference call, a rare appearance for an ibm ceo on a conference call, pointing to the importance she felt in terms of at least communicating with investors about what is a significant well day for the company in many ways. not a good one in the sense of missing earnings, abandoned that road map set in place by her predecessor sam pomsono but as she has done in our previous interviews pointing to the transformation that is under way at ibm, moving into what she calls the higher valued businesses with higher margins and higher growth. although admitting that it was a disappointment. >> third quarter earnings were disappointing. they weren't what we had expected. and we saw some slow downs, we saw slow downs in our services business and services productivity in particular, and in software. but as well as slow down in the month of september we'll talk about. but more i

and it's made with ibm.a we believe outshining the competition tomorrow quires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. so open an account with schwab. and when a market move affects, say, a cloud computing stock you're holding, we can help you decide what to do. with tools that help you see how market activity is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move, wherever you are. and start working on your next big idea. ♪ >>> welcome back to "power lunch." a nice rebound for big oil companies. exxon mobil, conoco all moving nicely higher as a result of the stabilization. >>> important dates in the market. 1929, 1999, 2007 and right now. they all

i challenged him before with ibm. i don't think it was the best move for ibm. i can't agree with jim more. you want to get that value as best as possible. we'll see? november charles a lot of buy backs. with the rest of this earning season. i think it will be good for the market. the bottoms are ready. we have a big rally. could be boosted by that. charles: i'll caution the audience. we'll try to get that income lesson up there. i started at the top of the income statement. when you hear the news x, y, z posting they're starting at the bottom. start at the top of the income statement. >> i agree. and i just want to go back what we said earlier. you look at these companies and you got to look at these buy backs by a case by case scenario. what are they doing with the money? do they did warrant that buy back? is this just to make the ceo rich? you look at wages, employees who have been asked to do a lot with very little for a long time. i'm not a big proponent of giving people money for the sake of giving money. companies have asked their employees to do a lot wi

ibm said yes. ibm off loaded 500 of monitise flows their payroll to enter into an exclusive relationship to market monitise product into the banking sextor. apple expands the market and apple won't get 100% share of the market and apple is in the consumer retail market, monitise is in the banking market. i think that it's still attractive but this is not a typical stock. we like the man. we respect him greatly and think they will make us money before this is all over. >> the story is somewhat tied to apple. part of the conversation we just had a. you're in apple as well. at least you were. >> we are. are you adding your position. >> no. if i listen to my analyst i would add. i'm reasonably fully committed. he thinks it's worth 125, 130. i'll let uncle carl do the heavy-lifting. we're a holder than a buyer. if i listen to my analyst i would buy more. >> understood. lee, i really appreciate you taking the time out of your schedule to join us down there. i know a lot of people certainly want to hear f

we are talking about ibm. david, that shift to cloud computing, the ability to make that pivot quickly, is that now the measuring stick for tech companies? >> it is one of them. there are several changes going on, but clearly, the moderation to cloud is one of them. they define the private clouds and i think remain probably the leading player in the public cloud. their new lower margin competitors like amazon and google and some of the others, fantasy got the right formula because they're competing -- they've got to figure out the right formula because they're competing. they bought a company called software a few years ago. i think they're actually doing some very progressive things related to hire and cloud. >> last week, you wrote a note that said it is possible for ibm to reach its five-year plan to include -- increase profits but you are skeptical about the plane's usefulness. why? $20 epsnk it was the roadmap that was established back in 2010. clearly, the environment has changed quite a bit. we have gon

we don't have ibm. one of the reasons why is the software companies don't have a legacy hardware business that ibm is saddled with and done a really nice job of marshalling their cash flow and using it for very productive acquisitions getting them into the cloud and position them where they need to be. so that's what we're looking for and agree, dividends especially in the low interest rate environment are very valuable. more so than buybacks. >> all right, guys. thank you. sarah and darren. >> yeah. sorry we had to break away there. we'll send it out to dominic chu here. >> hi. we're watching shares of trinity industries, found guilty of making false claims to the government regarding safety in their et-plus guardrail terminal lining the highways of all 50 states in this country and 60 countries around the world, as well. trinity must pay $175 million judgment. those shares down by about 8.5% on the day's trade. back over to you. >> guys, thanks so much. >>> 20 minutes to go before the bell on this mon

ibm off that much.he s&p climbedz].91% and the nasdaq e1e11.35% as the mar seems to be embracing myfá bottoming thesis outline last friday. ue all know what to do with apple. i've said it over and over again that apple should not be tradedr >> buy, buy, buy! sell, oksell, sell! >> it should bexj( okowned.c i feel no different after thexd company reported an earnings b]$Ñ off xd$1.31 basis which mu higher than expected revenues. you know we care more about that than anything else. that's real growth. 339.5 million iphones sold. in five years. even better, management gave quarter. this is why we don't flip in and out of apple, we own the darn thing and watch it go higher long-term. you have to hopeok that one of these always complaining analysts who follows apple says this is as good as it gets and downgrades the stock. >> sell,>dsell, sell! >>e1 on some not perfect gross margin thesis so you can get in tomorrow. they love playing that game. i hate it!t(fá i think that what's more important,ó[ though, is

this morning ibm's $1.5 billion deal is official. big blue is getting out of the chip news. >> reporter: one of the things we've learned in a statement acquired by abc 7 news is most of those employees will keep their jobs. that deal was made with santa clara based chip maker global foundries who will acquire the chip side of the business while ibm focuses on increasing revenue and new technologies. ibm announced the deal to acquire their micro electronics business athe company continues to transition toward enterprise market and tech research. the deal gives them access to thousands of semi conductor patents as well as ibm operations in other states under the agreement ibm will make payments to the chip processor over three years. they will also receive $200 million worth of assets making the deal $1.3 million. in a statement bm says this agreement expands our long term collaboration with them that star started in 2009. abc 7 news. >> nick, thank you. 6: 6:04, a woman is in serious condition after she was burned insi inside an apart

also, ibm is

ibm will still conduct research into chips.pite all of that news, not many downgrades on wall street today. in fact most analysts not only stood by their ratings but maintained their price target. ubs maintainedded neutral rating at $159. -- $195. citigroup and can'ter to fitzgerald sticking to their price targets. ibm has 19 hold ratings, david. david: adam shapiro, thank you very much. liz: so with so much volatility, many investors are asking themselves, how do you manage your money and where to put your money? our next guest will tell you where to make a profit even if we're heading toward a bear market. david: joining us is kelly wright, investment quality trends chief investment officer and portfolio manager, who by the way outperformed the market during the bull market as well as bear market. first question, kelly, are we heading for a bear market? >> well, at some point, you know, it is very cyclical, david. you're going to have one ever so many years. it is the way our system works. we have expansion, we have contracti

back to the story on ibm. big blue is paying global foundries to take over its unprofitable chipmaking unit. joining us with a look at what this means for the company, is bloomberg intelligence semiconductor analyst. real-timeunique research on injuries. finally ibm was able to offload this unit. what took them so long? >> i think the haggling of the price was an issue. there are details of how long r&d was going to be continuing with another issue. for ibm, i think the focus now is on services going forward. the burden hangover, of the hardware division across pc's and servers. now chipmaking is off the table. ,t is now going forward exclusively focusing on software and services, which is what they have claimed they want to be for a long time. >> yet their stock is plummeting right now. >> there were some issues with sales. there was some weakness. that could be a hangover on the company's sales in the near future. >> in the short term. >> again, going forward, it brings ibm completely away from hardware, chi

especially ibm. out and got out while the getting is good. >> you know who else -- >> we're agreeing together on this. >> we are not agreeing they should -- no. yes. they should change management and not buy back stock and that's the future of these companies. ibm's last buyback at $192. how's that working out for them, kevin? if yahoo! did the same thing -- >> i don't believe in buying back stock. i believe in distributing cash to shareholders. i don't trust management. i want a cash flow from a company. it's disciplined. you don't have to deliver. making a promise, you don't have to do it. you're going to watch ibm probably stop -- >> why do i have to agree with again, kevin? this is a problem. >> we'll come back to the issue in a couple of minutes. kevin, broad thoughts here about the rally and the kind of october that we just had? >> all right. leaving ibm and these disasters that happened, looking at the s&p so far it's wonderful news, kelly. you have got 85% meet or beating but what i really li

ibm. ibm was a love affair.ng ibm. >> apple is a love affair. >> i felt bad for ibm. i almost shed a tear for ibm. it was kind of like you felt like wow, how could you pick on them like that. >> would you buy the stock? >> ibm? no. >> okay. what are you kidding me? >> so i just want to make shedding a tear. >> the parts aren't worth more than the whole. your piece today was great. my sympathy for apple comes from the fact you have guys who are analysts who are very good guy. >> are you going to watch the world series? >> i love the royals. >> do you know where lourd got the name for that song? she saw a picture of george brett signing autographs and came up with the song "royals." >> do you remember the pine tar incident with george brett? we've got to go. >> we don't want to be royals. crystal? >> no. when we come back this morning, a horse on the loose in new york city. plus, find out what $70 million will buy you in the private jet market. ♪ there's confidence... then there's trusting your vehicle maintenance

ibm has a long way to go. they need to transform the services business.oftware business, they need to get that into the era of cloud computing where they arm e moving so much more quickly than they have in the past. they have to get up to speed. they are calling for more m&a and more deals. now that ginni is out from under this roadmap, she needs to figure out with the next steps are for ibm going forward and how they can keep up. >> we hear a lot, the industry is facing change. i hear a lot of buzzwords from her. cloud. social. mobile. david, is ibm really making the right choices to manage that transition to the cloud? >> they have bought some little companies that are clearly good decisions. you just did a great interview. with marc benioff of dream force . 145,000 people came to the conference. that is indicative that we have crossed a chasm faster than old technology companies like ibm thought we would to the in of cloud. that is a serious problem for them would have such high costs to build their hardware. the infrastructure is expensive. that is wh

down asf ibm trading much as 5%.ndoned its forecast for 2014 and plans to come out with a new one in january. between now and then, everybody is scratching his head trying to figure out where the floor is. ibm has been struggling with the shift to cloud computing and the drop has dragged down the dow jones industrial average. it has also turned to the value of the stake owned by the largest shareholder, warren buffett's berkshire hathaway. the company has managed to unload its money-losing chip unit. ibm is paying global foundries $1.5 billion to take that business off its hands. a group of investors plans to make a $2.2 billion for reebok. reebok is currently owned by adidas, the world's second largest maker of sporting goods. a hong kong-based right equity firm and funds affiliated with abu dhabi are going to make the offer. in 2000ought reebok six. reebok as a brand has fallen on hard times since then and is trying to reposition itself as the leader in fitness gear. poll shows it's a dead heat with a week to go be

asking david how much trouble ibm is really in the. there -- if service is going down, that is the biggest news item despite having to pay somebody $1.5 billion to take the chip business off their hands. this is a giant and old conglomerate and an industry that is changing really rapidly and players are becoming specialized. that is a lot of challenges altogether. >> what did you say? is someone he left holding the bag here? he took the ceo spot. >> i am always quoting warren buffett. when a manager's reputation meets a business with a bad reputation, it is the reputation of the business that survives. >> he has lost a big share. >> ibm is in a crummy business and they are trying to get out of it. --y have been undertaking they were trying to double profits. seen, when you see the net income, the actual profits of the business, it has been getting worse and worse for long time. it continues to get worse with this company. they have been trying to make that look better through shared by back. they have been buying money to do shared by

you know, but ibm -- neil: big blue, not black swan. >> ibm they haven't had a revenue increase. the stock hasn't budged. we are moving into the holiday shopping season. certainly you don't want ebola out there scaring shoppers away. neil: this did scare the market, but not a lot so the fear is that ibm is just pressaging something. >> they look at ibm as bell wear. if they're not buying stuff, that's not good for global worth. ibm is behind the eight ball. not to mention they tripled their debt to purchase stocks. they've made some mistakes along the way. heads roll in upper management because of this. maybe there should be. neil: you had a conversation about this? >> we did. >> actually i know ibm can be a bellwether. i don't think in this case we should overreact or read too much into the earnings report. i don't think ibm's experience is going to be representative of the rest of the market at this point as liz said they've had a revenue decline over the past years and it's not something i will project on the rest of the market. not just yet. i don't think ibm is showing us th

ibm. the big caps are among the performers.the small caps are coming on fairly strong as well. and what's very interesting today is with w today's gains look at the russell. it topped out at an all time high back on july 1st and has been in bear territory for quite a bit of time. really in a correction territory for a while. and it has really come off of that correction territory with today's gains. having some folks think maybe it is time again for the small caps. they have been really beaten up. particularly last week when we closed out and we had a bounce back. they diverge prd td from the re the market but today in sync. an old chip company, txn, texas instruments. -- thanks so much. bertha kooms at the nasdaq. >> music identification service shazam let's folks answer the age old questions "who sings this?" . what's next for the company? rich riley is the ceo. and joins frus the robinhood investors company. rich, good to see you. >> yaet to see you too. >> what's next for the company beyond music? >> well shazam wants to co

that would allow them key technology and ibm chips for its systems. under the agreement ibm will make payments for the chips over three years and will receive $300 million worth of assets making the value of the deal $1.3 billion. ibm has said it will release its earnings offerings today around 7:00 a.m. pacific standard time and announce a separate deal e. >> happening today, cal trans leaders are set to meet about the next step about a minor project that turned into a disaster on friday's commute on the bay bridge. traffic was backed up for miles in every direction. drivers slowed way down to go over two steel plates near the harrison and freemont street off-ramps on the western span. they were installed as part of a maintenance project. after friday's back up, they halts the project and removed the plates for now. our reporter will have a full report coming up in the next half hour. >> traffic is flowing smoothly on the lower deck of the bay bridge in morning following an unusual accident. a truck got stuck after trying to take the exit over inner

ibm and twitter announcing a partnership during the hour. twitter stock spiked about half a percent when the news came out and it's come down a little since then. they are talking about data intensive capabilities for the enterprise, saying they are going to develop applications around twitter and figuring out what is going on out in the real world. and specialized enterprise consulting as well. interesting because it is an area both companies want to goet into. >> seems partnerships is the way ibm is going these days. apple and now twitter. >> and figuring how to cook stuff with its technology. looking at all the fire hose or twitter data and turning it into something good for business. also smart. >> smart ahead of the elections next week. twitter is going to be a big network for that with all the data. and with the dow now in positive territory that is all for "squawk alley." let's send it over to the halftime report. >>> thanks very much. let's meet the starting lineup. john najarian. steven weiss, josh brown, mike murphy is the ceo of r

the dow being dragged down by ibm.ing the kind of many expected to make last quarter, that hurt the dow industrials. price of oil around $82 per barrel, just about 82. the family of the second nurse diagnosed with ebola hiring a lawyer they say claims acted recklessly are not true following cdc guidelines. all rise, judge andrew napolitano are here. if they can to be sued by various entities. speaker that is a reasonable expectation. i don't think she expects to sue anyone, she recently anticipate the people with whom she came in contact who lost 21 days of their lives, locked up in their homes for 21 days are going to sue her for the fair market value of that economic loss. if they do sue her, who will bear the financial responsibility for defending her, paying a settlement if there is any, paying a judgment if there is any, the homeowners insurance company. if she rents and has rental insurance, has homeowners insurance, almost all of them have a clause four out of the home behavior of this nature. it shifts financia

ibm earnings out yesterday.both big warren buffett names. >> 16% in coca-cola. >> 9% outstanding? he is quite significant. enormous companies. when it comes to ibm, the whole theme of the marketplace which we heard from ebay, hewlett-packard and we heard yesterday from ibm. >> tesco in the u.s. the market was moving too fast to respond. >> coca-cola weighing on the dow. the company's conference call is wrapping up. his long day of doing it himself starts with back pain... and a choice. take 4 advil in a day or just 2 aleve for all day relief. honey, you did it! baby laughs! it's in this spirit that ingu u.s. is becoming a new kind of company. ing u.s. is now voya. changing the way you think of retirement. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. and only national is ranked highest in car rental customer satisfaction by j.d. power. (aaron) purrrfect. (vo) meee-

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out this is onlyhe underperforming ibm unit. so how much trouble are they in? cory johnson with me in the studio, and a reporter who covers ibm. also, david kirkpatrick who set down with the ceo. how much trouble are they in? it sounds pretty big. >> several things. if services are going down, that is probably the biggest news item despite the glitzy thing about paying someone $1.5 billion to take the chip business off their hands. this is a giant, conglomerate in an industry where layers are becoming increasingly specialized or that is a lot of challenges altogether. left holding the bag? is this something that was put into play before she took the ceo? >> i always quoting warren buffett. good manager meets a business with a bad reputation, it is the repetition of the business that survives. you mentioned the prophets, they said they will double profits. they said they would double earnings per share. have been getting worse and worse for a long time here. it continues to get worse for this company. they have in painting that,

could this be a revenue generator ibm has been looking for? >>> you may remember watson, the super compute there made headlines a few years ago. big blue is betting big on watson with a new home and some new applications. >> reporter: remember ib m's watson? that's the intelligence, ibm opened up headquarters for watson in downtown new york surrounded by google and other hit companies. why the move? ibm is rolling out applications for watson and wants to attract the young hip sound developers to write apps for it. several deals announced today. the founder of travelocity, a company that will allow travel agents and consumers to use a natural language interface so consumers and travel professionals will be able to talk naturally about travel plans and it will make recommendations on flights and hotels and places and destinations. it's part of a very hot area of technology called cognitive computing, something like artificial intelligence. they don't think by themselves but capable of learning. they can interact and propose solutions and the tec

ibm you could argue that ibm has major problems on how to continue to grow revenue in the future. but disney i would love to own a boat load at the lower price. >> i totally agree about stock selection. if you i think united technologies and ge are two interesting names they brought up and they are down for good reason. united technologies last quarter was a mess it. took me three days to figure out what their bottom line was. they cleaned up their act and doing good things in terms of m and a. and they are in aerospace and commercial construction. i like their end markets. ge i think is a 2015 story. as me shrinks that financial services piece and gets more industrial. my toint point, big blue chips that haven't done well if they have big restructuring stories and i think it can be a buy. >> and these aren't blue chips. the ones they put on that list are not blue chips anymore. they were. what does warren buffett buy? stocks screaming oth upside? anybody remember him doing that? no. except when he buys them out. he buys them when they are too cheap. like bank of america. so what

not as irrelevant as ibm. how much is ibm down today? look at that, stabilization. >> for the month down 14%. you know what's getting hammered again? coke. >> it should be. going through all the stories this morning. people obviously recognize the company is challenged. on the earnings call, hey, man, hang in there, you're doing well. pepsi co. remains the one that i felt had the coca-cola is so anemic it really deserves to have a discount the way that a general mills has, not a premium. that has to change. the price to earnings multiple has to shrink in coca-cola. the dividend won't protect it. it's not where to be. pepsi co. is where to be. >> do you think this series of up days we've had have been because there have been no new cases of ebola? is it jawboning by the ecb? >> i think the fact that germany looks like it's blinked -- >> you do? >> yes, i don't think herbert hoover -- you know, it went viral that merkel in a pants suit is herbert hoover. she seems to be changing to a little more fdr-like. i think the fact the cdc, which we

ibm, big blue and of course coca-cola worldwide.happens when your brand begins to deteriorate? coca-cola in united states anyway, now means unhealthy food. the very brand it built its value is shrinking. does that mean maybe it is time to cell? >> that is challenge for the business model, right? warren is not participating in those kind of decisions. he will evaluate. david: he is not. but his decision is whether to hold it or sell it. >> he has the stock since 1988 or 1989. berkshire is up very well, up 12 times compared to then. it is a sticky stock. they will hold it through tough times. if they deteriorate it will sell. that will be the most difficult decision. liz: perhaps ibm is better example. the first big technology company. he famously stayed away from tech saying i don't understand it. i'm wonder with his two new investors, ted wexler and todd combs, the guys he brought in, he doubled town. he added to position of ibm. it's a money loser. do they have their fingerprints on this and more stock-pickers and traders than he h

they will develop new cloud services with ibm. if anything happel's quarter might actually help ibm, excuse me, when the markets open tomorrow morning. we'll see. >> cheryl, thank you for that. >> you bet. gerri: well the latest headline for apple, a promise the revolution the way you shop and one that could drive the company in the future, apple pay starts today. the new software touted by apple touts consumer convenience and security and will it do either? we have the editor-in-chief of contently and founder of identity theft 9/11. joe, i will start with you. what do you make of this technology? will it make a big deal? >> it is a lot more exciting than a smart watch to me. people, they aren't excited about mobile payment devices necessarily but they do love to buy things. gerri: that's right. >> they do love to save time. if you love convenience this brings all three things. gerri: adam, to you, i know you looked at this. i actually did it today. i went out to a store and did it. we'll show you video in just a second. what do y

>> ibm. let's talk about what is wrong there. probably the best way to look at what is wrong is to look at what they are trying to do to fix it. too many people, too much hardware, too little cloud. they said they are going to open up more enterprise app stores and make it easier to get what you want. they want to have vertically integrated units, security, retail. they want to make services organization more efficient which is hard because at one point they said we laid off a bunch of people in services and then figured out we couldn't get the work done. so part of what is happening with cloud in the enterprise is competitors are coming in saying we have the services and you can go online and get them from us. we will turn them on for you. it is doing the basic stuff that ibm is used to using people to do what they call back office services but the cloud folks can do it for cheaper. ibm making money on higher end services where they add value but in the lower end stuff they are losing. in hardware they are losing. >> what was yo

look at ibm. i believe that is a new two-month low.g the dow to the tune of 200 points. lots of stocks on the move today. a fabulous quarter for apple. revenue forecast to about over a quarter of a trillion dollars in the next year. mcdonald's, their numbers were not good this morning. it looks like numbers are turning away from mcdonald's. show full day, sales up. they say that their growth rate is going to slow down. they have also been downgraded. a warning from coca-cola's management. you get all of this bad news from big names. let's get to the election. less than two weeks ago, mark stein still here, stein has a new book. it is called the undocumented mark stein. let's talk about the elections for a second. >> i think you had a big wave in 2010. if you have a situation, you had a fantastic election that had no consequences. i really find that the most disturbing aspect of the mood a couple weeks out. it is kind of a fatalism. enough to call the gop in this or that. you do not feel the overwhelming energy and populace pushed back

look for earnings today from ibm, apple and chipotle. the dow rising 263 points on friday to 1,16,380. and apple pay begins today and is available through a software update. apple says it is secure and the company won't track or correct what people buy. >> the financial times reports that ford's new car has sensors to determine if someone is having a heart attack. >> incredible innovation. >> heavy rains and mudslides in new mexico killed at least six people there. three dozen communities in the area are currently under a statement of emergency while more than 4,000 people have evacuated to shelters. but good news if you are planning a trip to hawaii. hurricane ana is now just a tropical storm. the eye left-hands seem to be damage free since the eye of the storm never hit land. forecasters say the tropical storm could gain strength and be upkbraded again to a hurricane. >> something something to track. it mightin snare you, it might not. how are things looking this morning? >> i think it should be okay today, which means you're free to w

. >> and ibm is shelling out $1.5 billion too santa clara based global foundries in order to shed its costly chip division. ibm took a $4.7 billion write-off for losses. >> apple uses the latest iphone to let people make credit and debit payments without their wallets. they say it is secure and people's financial information is not exchanged. >> your commute this morning may be a welcome surprise. you shouldn't see the same gridlock that kept people on the bridge for hours on friday. stephanie chuang is live in san francisco. folks were hitting the brakes when they saw those steel plates on the bridge and that always leads to a backup. >> absolutely. cal thereto transhas removed those still three. >> they stel when you looked at them lasting for as long as it did, as far as it did, they now this current project is expected to be done pi the end of the year. live in san francisco, stephanie chunk, if this as we get a live look outside. >> it's going to be a wild ride, christina. >> i see steel plates and i think damage to my tires. mike has more on that as well. he has more insight tha