he said i own ibm and it stinks. are you buying more and why should i hang on to my shares which i've had for decade. give me some hope, please. the follow up question are prngsz areare you buying more shares? i'med in the business of giving hope. you should only own stock if you think you have reasons. whether you own berkshire hathaway or not it's an individual decision. the last thing in the world is you should own it because somebody else own it is. i said it one time in college. it was an annual meeting in jersey city. i was 20 years old. there were only four of us at the meeting. a fellow named lou green a famous figure in wall street said why do you own the stock? and i said i own it because ben graham own it iss it. he said strike one. it was not a good answer even though ben graham was the dean -- it's not a reason. you don't own a stock because somebody else own it is. you own it because you do your own analysis and you decide where the future will be. if you don't know the answer you don't own it. it's a t

two things i'm hoping milk chocolate will be okay at some point, and because you did a lot on ibm, ibm sears were really the owners of prodigy. cbs bailed pretty quickly after they started it. so it was an ibm/sears fiasco i think we'd call it in hindsight. >> i look back on the '90s and all the tech startups i like to say at the time that technology was coming up with answers for which there were no questions yet. you know the technology was there, but we didn't know what to do with it. now we do. that's a big difference between then and now, isn't it? >> well it's interesting. that's true. i like to look at whatever people are doing in the real world and how can we transfer that over to tech. so we're in the shopping business. we think we do it better and more interestingly than what happens in the real world, but look at something like facebook. there's a business that's obviously enormously skuk sesful that's not really a replacement for something. i didn't have the ability to talk to all of my friends as i do. so i think it's a mix even today of inventing new things we didn't know

presented by ibm cloud solutions. and now, here's jimmy kimmel! ♪ [cheers and applause] >> jimmy: how are you guys? everybody all right? welcome to the beautiful, we on the road tonight. thank you. that's very nice. [cheers and applause] goodnight, everybody. ♪ oh, thank you. i really appreciate that. that's very nice, and oh, i'm going to say, how about this. gary clark junior is here with us. thank you for joining us. thanks to all of you. we really appreciate, thank you for lining up to get in here. and happy st. patrick's day, everybody. finally, an excuse for people here in austin to drink. today is st. patrick's day. and tomorrow is throw up in the little trash bin in your hotel room day. we have a cherished st. patrick's day tradition on our show, no matter where we are. i don't know how many years in a row we've observed this one. but the video you're about to see dates back to 2006. it happened about 600 mile's way from here in mobile, alabama where a whole community spun into an all-out frenzy thanks to a real-life leprechaun that was sp

the reason i am saying that ibm may not pull it off is because ibm is not saying, listen, it's a slamk. they're saying anything but. so i feel like if they're reserved about it, i have to be. >> deere, he said faces several tough years ahead. >> something right up front. >> exxon confirmed their exit. also called it one of the greatest investments in berkshire's history. >> but there are other ways -- one of the themes through the letters is that he finds new ways to deploy capital in a better way. people are buying deere, buying deere because he's buying it. he's basically saying i'm lowering numbers. deere, it doesn't matter it's a great manufacturer. you would not buy deere. he made the point over and over again, don't buy because i bought it. go buy an index fund. and i think that made sense because he did leave exxon. he did lose money in tesco. american express has been a terrible performer this year which is one of his big ones. so there are -- you know, he's saying, look my perspective is a 20 30-year perspective. if you're trying to gain me or -- he's not going to do that. i

if you are short ibm, would you buy puts on orcl going into earnings?d a nice day today? >> it did. they report next week. the options implying 5% move. that's how much it moves on average. last quarter they reported cloud revenues up 45% year over year. that was can kicker here. the euro is down 15%. it's in the market. has it down be in sympathy with hewlett and intel? that sort of thing. >> time for the final call. last word from the options pit. >> when a dividend is too good to believe, it usually is. bp. 6.8% yield, i would not trust that. >> when the options premium are higher. sometimes there's a good reason for that. bp is that situation. just buy the july 36th. it looks like our time has expired. i'm melissa lee. for more, check out the website optionsactio optionsactions.com. >> male announcer: the following program is a commercial presentation of total gym fitness. >> my arms are a disaster. >> i'm hoping to gain a bunch of muscles. >> haven't been able to lose that quitting-smoking weight. >> i definitely want to see weight loss. >> i want

he is short ibm. ibm is down what? $40 since the -- >> 30% since its peak in 2012.ut to take out the lows just like bp and exxon. >> 20% revenue decline. the street's been looking for some increases, which is totally fiction. >> is it still a short, though? >> oh, sure. it's terrible. >> coming up next, bill ackman is back on the attack. but why were options traders betting so big today on herbalife? we'll tell you when "options action" returns. in our house, we do just about everything online. and our old internet just wasn't cutting it. so i switched us from u-verse to xfinity. they have the fastest, most reliable internet. which is perfect for me, because i think everything should just work. works? works. works! works? works. works. >>> welcome back to "options action." we've got some breaking news here with regard to changes to the s&p 500 that are scheduled to take place next week, guys. first of all, henry schein, currently in the s & p 400, will go into the s&p 500. will replace care fusion corporation. that's going to happen after the close of business tuesd

"if you are short ibm would you buy puts on oracle going into earnings?"ice day today. >> yeah, it did. they report next week. the options market is implying about a 5% move. that's that's how much it's moved on average. last quarter dez 17th, they reported revenue s revenues 5% . the euro as we were just talking about, is down 15%. expect worse guidance. here's the thing. it's kind of in the market. has it been down in sympathy with hewlett, with intel? i think you have to be careful. i wouldn't isolate the event. i would look out to may if you're looking at puts, maybe the may 41s for a buck 15. >> carter. >> when a dividend is too good to believe. it usually is. bp 6.8% yield. i would not trust that. >> mike kuo. >> when the options premiums are higher sometimes there's a really good reason for that. bp is that situation. you don't need to bother with the spread just buy those july 36 puss puts. >> dan math jathn. >> dan math jathn. >> yeah, jpmorgan, april 60-55 put spread. >> looks like our time has expired. thanks so much for watching. i'm melissa le

don't tell that to ibm. they're teaming up with the weather channel to develop forecasting tools for companies. they want to help retailers prepare better for bad weather. we will be finding out more about their joint venture, joined by the ceo david kenny and bob picciano. a mysterious tweet from the founder of tesla. musk says his company will unveil a new product line. it is not a car. people are guessing that it will be batteries for home use. march madness driving some fans to dig deep into their wallets. the average retail price for a ticket to the final four $1900. 25% more than the prior record set last year. those are your top headlines this morning. just hours to go until midnight deadline, negotiators in switzerland may be close twitter limit her deal to limit iran's nuclear program in exchange for sanctions. peter cook has much more on the talks. it looks like things are turning a little bit for the better. are they going to cross the finish line today? peter: they're going to cross some line tod

also, the senior vp of analytic that ibm will be joining me to talk about why this makes sense for ibmhat i want to know about this -- what has changed in the last 10 years? the last 10 years i was working at swiss rate, and we were offering weather derivatives they doing the exact same thing forecasting to look at what earnings might be an hedge against them. betty: it might be in your pocket, brendan. your smartphone. brendan: why? what has changed? betty: now we have so may different touch points will stop our hardware, what we carry these days, our ipads, it is the internet of things. that is giving us more and more accurate weather data, so you are able to pull data -- not just weather of course it all sorts of data from these touch points. that is why i be in himself is spinning $3 billion over the next four years because they want to capitalize on this -- that is why ibm is spending $3 billion over the next four years because they want to capitalize on this. they did not have the capacity to expand this on a broader basis, so this is where ibm comes in because ibm has the cloud

you like ibm? charles: i like ibm here. you know what i like, there's a man named ronald reid.years old never made more than minimum wage. every stock he owned was over 100 years old. eight of them were created in the 1800s. the moral of the story the company has been around for 100 years. they've been through ups and downs. we thought ibm would go out of business two or three decades ago. they're making big improvements. going crazy into artificial intelligence. i think they'll survive. and wall street will jump on the bandwagon 40 points from here, $200 a share, wall street will tell everybody, hey ibm is looking pretty good. >> then they leap onto it. the argument against it is that ibm had its time. they rebounded once when microsoft was eating their lunch. they can't do it again. >> that's the argument. i kind of believe these companies, when they have pedigree plus a lot of money -- neil: they do. people forget that. charles: they can buy their ways into prominence. they need to shift gears. get rid of all the junk that's not working. buy yourself in artificial intelligen

ibm is trying hard. it was interesting warren buffett when asked about ibm said i'm not going to talk about stocks we're buying or selling. i don't think he's a seller. i -- that didn't sound like i'm buying a lot of it. >> no, but was what we know he bought more as opposed to -- >> right. >> we had the investor day from the company. >> put on our happy hats on pmi. >> let's put them on. >> nice percentage of the company that's doing well. >> it's growing, yes. >> if you can get that to be a bigger percentage without the pie shrinking. >> that's a key. >> nice storiy. >> how do you make the story moving down the track. >> kraft managed to remake it with heinz. they think that velveeta is fresh as a daisy. >> yes. you and i are ready. our shelter -- yesterday i took your advice stocking up. >> the expiration date on velveeta, i said check the label but i think it's got like a 37-year shelf life. >> that is all. >> i know. i'm raising my shelf life here right now, like an analyst. >> to 45 years. >> 45 yea

plus, ibm teaming up with weather company?ell you what that's about coming up next. ♪ alix: the cable industry continuing to consolidate. charter communications announcing plans to buy a majority stake in bright house networks for $10.4 million. bright house is a consolation prize for charter, which lost out to comcast last year in an effort to buy time warner cable. both deals still pending regulatory approval. alex sherman, who broke the story a few weeks ago joins me now. to be honest, i don't know what bright house is. alex: a lot of people do not know what it is, which is odd because it's worth $10.4 billion. it's the sixth-largest u.s. cable company. as you mentioned, it's a bit of a consolation prize for charter who originally wanted to buy time warner, which you are probably more familiar with. the cable industry does not overlap with each other. they do not compete, and that's why you've never heard of white house, but if you live in california or michigan or florida or a few other states, they would be your local cab

ibm part of the deal is trying to sell apple products.t is definitely perhaps a year ago when they were thinking the deal, things look different. cory: there was a quarter where the mac looked outsold the ipad -- macbook outsold the ipad. tim: the mac had a resurgence last year. cory: is there a notion it does not matter what device you buy? tim: it is a believe they don't mind cannibalizing their other products as long as they are heading told the bigger goal of selling apple items. cory: tim we appreciate it. "bloomberg west" will be right back. ♪ cory: i'm cory johnson. the future of policing in america is starting to look like a tom cruise thriller. >> mr. mark. i'm placing you under arrest for the future murder of sarah marx. >> no, i didn't do anything. sarah. >> give the man his hat. cory: future crime. that's right, "my nor to report." this company -- minority report. his company has the same goal in mind. what crime am i about to commit? besides a lousy interview. tell me about your business. >> we are focused on law enforcement.

tech from apple, ibm, microsoft and cisco.dive ahead. >>> shares of alibaba hitting the lowest since september. sinking more than 30%. bad news piling on the stock. jd.com heating up competition. taiwan asked alibaba to leave the country in six months. so how much more bad news can baba take? let's bring in research analyst gill loria. >> thanks for having me. >> down about 22%. is this mostly at this point, i mean there are all these fundamentals, but the lock up expiration, one is 318, $429 million shares, how much do you think of the decline is that? >> i think it's contributing. a lot of these factors that you mentioned, i've been known since before the ipo, the sentiment was just so positive through the ipo and through singles day. the pendulum swung to a complete positive side. since then, people have had a chance to critique some of these aspects, the authenticity of merchandise and volume reporting, the dealing, the political dealings within china and now within taiwan. as people have had a chance to contemplate that.

ibm has a partnership with the weather channel hoping customers will use data to track buying patternsnd supply chain issues. jay z called on biggest names in music including beyonce and kanye west to relaunch a music streaming service called tidal. they got a piece of the business. it offers millions of songs in high fidelity. >>> the egg mcmuffin isn't just for breakfast anymore. mcdonald's will test sesk breakfast all day at some san diego restaurants neck month. looking for ways to adapt to customers changing tastes and will stop serving chicken raised on antibiotics and adding kael to the menu. >> sultry underwear ads starring david beckham and late night host. have you to see this the old hockey puck ice hatch trick. sports up next. ou ...really close new revlon photoready airbrush effect™ makeup revolutionary formula with light-filtering technology delivers a poreless, airbrushed look. and soft-focus pigments create a luminous finish. your skin has never looked so flawless. new revlon photoready airbrush effect™ makeup so go ahead, let yourself get close revlon. love is on. the

that was a risky bet. >> yeah. >> ibm was as well.nd that's holding you back. >> well, not as much as bp. but i think what you're pointing at here, this really is a trading game. it's one year long. it's five stocks. you've got to pick five stocks that have catalysts. you can't wait and have a five-year plan on these stocks. jcpenney came to fruition quickly. we sold it. that was a good trade. i still think it's going to be a good long-term investment, but it was a trade. ibm, they have to show me this quarter some good results for it to stay in the portfolio. bp i'm giving it a little bit more leash, but not a lot more. i mean, it's really disappointing right now. >> you've got citi in there as well as does pete. so all joking aside, pete, american express did not work. >> yeah. the costco news really kind of crushed me on that one. ups, what crushed that one was the holiday quarter. the reason i want to stick with ups is i don't think that repeats for them, judge. i think they have made mistakes every holiday quarter for the last fe

ibm has an interesting take on the space.say we have massive customer relationships in the world's largest businesses. they have partnerships with players like apple and twitter which are saying, maybe we can add value to existing technology that is not enterprise ready. i would say what ibm and the team there is doing is fascinating to watch. i would not count them out. charlie: do you have a moat around your company? aaron: our moat is in a couple of forms. as we go in to a couple of industries, we have box for industry where we power content management and collaboration for health care companies like stanford hospital, m.d. anderson, eli lilly. when we go into a specific industry, what we do is more institutions use box to collaborate and share information. that creates a network effect where if you are collaborating with other partners, more and more players adopt the platform. it has been true and health care and life sciences. that has been true in media and entertainment. the same is going to be true in retail, financi

one thing that was kind of omitted was ibm. and that had some eyebrows raised on wall street today. >> it was ibm, here's a company that they opened for quite a while. you know that the revenues have been declining. that stock investors have been dumping out of it. yet warren buffet says he likes it. and there are many ropes they're sticking with it. he didn't give too many specifics but said if it keeps going lower, he'll buy more. it's a matter of time where the markets right, or oracle omaha made the right call. >> as much as he normally does. >> very quickly, no dividend coming anytime soon. >> you know he said in 10 to 20 years, maybe. i think he was just sort of telegraphing a message to the next ceo, if you decide you need a dividend it's okay by me. >> there you go. suzy thanks so much for joining us. >> thank you. >>> sotheby's a big drop in fourth quarter earnings. suzy can read this easily. the auction house saw its profits fall as expenses rose. this is as it faces pressure from shareholders. the revenue did rise an

the ibms of the world. ibm has a lot of money. but apple.y're opening up a couple of data centers that maybe could have opened here. but a dollar in taxes and other things. what do you feel? >> at first i thought, strong dollar, strong country. now, when you reflect back on earnings, and you say, 3m and united technologies or ibm or general electric, they say, oh, in 2016 we'll do 1.75 a share. that's based on the eurodollar being 1.20 for the euro. that means the general electric will be killed. now we hear rumblings that the ceo -- charles: but they haven't done anything in 20 years. that's their excuse. >> the question is, can we find an equilibrium? is that possible. charles: that's the question i'm asking. >> that's the question. can we do that? can we import and be just as successful? this is why warren buffett doesn't like us to have a strong dollar obviously. >> warren buffett stocks have a lot bigger problem than a strong dollar. matt: wells fargo should be fine. a lot of manufacturers, almost every district said they saw exports fa

matt: ibm wants to attract more customers to its analytics business. sales have fallen for three straight years because the man has dropped for computer hardware and services. olivia: more now on iran. to associate us have just under eight hours before a self-imposed deadline to reach a broad nuclear deal. also joining us is peter cook down at the white house where officials are monitoring those talks closely. what can we expect over the next few hours? the russian minister has just rest back to join the talks. >> the latest news we have is that love rob has arrived but we don't know if he has joined the talks yet. he has at least arrived in geneva. sources have told us that basically the plan is to come out with a framework understanding. whether that would be bullet points or a general overview of the major points of the deal of the two sides can agree on without going into too many details. that would give them a chance to have three more months until the june 30 deadline to work on the technical aspects and the detailed part of the accord but they

that's why ibm created verse.erful analytics to uncover hidden patterns in your email, calendars and social feeds. it continuously learns how you work. and helps you prioritize the people and projects you need to focus on. there's a new way to work and it's made with ibm. >>> bertha coombs is keeping a close eye on the action at the nasdaq today in these final ten minutes of trade. bertha? >> we're seeing momentum in terms of we're near the highs of the session. we're seeing strong volume at the nasdaq. folks seem to be eyeing that number. it would be the third time ever if we close at these levels at the nasdaq. chips very much part of the story today. that nxp deal really has the whole chip sector moving higher today. we're seeing a number of new highs. what's interesting is when you look at some of the biggest big caps in the chips that have been here since 2000 like broadcom intel, they have not taken out their all-time highs and that brings me to the index itself the philadelphia semi-conductor index. this is

ibm struggling. when it comes to incumbents versus startups, how does it play out?aron: so, every couple of decades, you have this sort of changing of the guard as it were. startups that are really optimized for that disruption have an opportunity to take advantage of that and potentially build the next era of ibm and hp and microsoft. at the same time, you do have incumbents that have a lot of cash. they are led by incredibly smart and astute leaders that understand this change. the changes you are seeing are driven specifically because they know they are being disrupted. emily: peter teel said to me for example, hp is not a technology company anymore. it is a bet against innovation. aaron: that is a provocative statement. but i think in terms of relevance, you have leaders of these companies that are recognizing that their previous strategy would have lead to irrelevance and they have to change that. we have this view that everything is zero sum. ibm does not have to lose for apple to win. or for salesforce to win. emily: what about microsoft? a company that you g

there's a new way to work and it's made with ibm. hey, girl.occer trophy is talking to you right now? it kinda is. it's as crazy as you not rolling over your old 401k. cue the horns... just harness the confidence it took you to win me and call td ameritrade's rollover consultants. they'll help with the hassle by guiding you through the whole process step by step. and they'll even call your old provider. it's easy. even she could do it. whatever, janet. for all the confidence you need td ameritrade. you got this. >>> you're watching cnbc "squawk on the street" live from the financial capital of the world. opening bell if over two minutes. a lot going on. euro extending its losses as we get to a new 12-year low. a lot of people thinking about the fed, gold for instance three-month low, lowest since december. last night jim, on "mad money," you talked about why this market is punishing good stocks, in your view that's why you're not hot on the overall end. >> qualcomm david broke the story, one of the largest buy backs in history and the stock fin

it is ibm's software that has a secure smart unit that they bought last year.ntially itaps -- apps andlly it wraps voice calls are encrypted as well so that they cannot be attacked by malware. the company says that devices will be usable for more than one an ibm:cause there is troy and got 63% of officials need to use devices to access -- that shows that 63% of officials need to use these devices to access sensitive information. so they have not really been taking up much use of these encrypted devices. blackberry is hoping that a device like this, a secure tablet will bridge personal and business use so you can do both things, filing the business stuff into a separate compartment and making it a more useful device. "first up this is --rishaad: this is trying to reinvent itself by moving into software but this is a curious blend. tablet.alled a secu what about the pricing? it is being looked at to see if it could be used for classified german information. companies are expecting something like 10,000 units to be shipped. germany has been shipped and devices for

that's why ibm created verse.analytics to uncover hidden patterns in your email, calendars and social feeds. it continuously learns how you work. and helps you prioritize the people and projects you need to focus on. there's a new way to work and it's made with ibm. ♪ >>> good wednesday morning, welcome back to "squawk on the street." carl quintanilla with sara eisen, simon hobbs, david faber at new york stock exchange. dows down 137. thurn thurn turning out to be the big of the two-day loss since january 27th and 28th, true for all major averages. oil trying to hang on to 50. >> our road map for the next 60 minutes. alibaba trading near its post ipo lows $60 billion of value destroyed as investors worry about sales number what happen to do with the stock now? a tale of two teen retailers. abercrombie, deep in the red, while american eagle gets a big boost. find out what american eagle is doing right. >> find out why despite falling oil prices storage for crude is nearly running out in the country. >> rick santell

that's why ibm created verse.analytics to uncover hidden patterns in your email, calendars and social feeds. it continuously learns how you work. and helps you prioritize the people and projects you need to focus on. there's a new way to work and it's made with ibm. ♪ >>> welcome back to "squawk box," everybody. we've been watching shares of best buy this morning. getting a boost after the retailer's earnings came in better than expected. the company now announcing a special dividend of 51 cents a share and raising its dividend regular dividend by 21%. >>> and the downturn in the energy sector late last year hitting a number of private equity firms with exposure to oil and gas companies created distressed debt opportunities at the same time. let's jump on that topic now with our guest host david rubenstein. you had some energy. >> we've been a long energy investor for quite a while. >> so you had it killed on one side of this. >> i wouldn't say killed. it's part of our legacy business being relatively small in ene

there's a new way to work and it's made with ibm. we believe in the power of active management. every day, our teams collaborate around the world, to actively uncover, discuss and debate investment opportunities. which leads to better decisions for our clients. it's a uniquely collaborative approach you won't find anywhere else. put our global active management expertise to work for you. mfs. there is no expertise without collaboration. so this is a great opportunity for an upgrade. sound good? great. because you're not you, you're a whole airline... and it's not a ticket you're upgrading, it's your entire operations, from domestic to international... which means you need help from a whole team of advisors. from workforce strategies to tech solutions and a thousand other things. so you call pwc. the right people to get the extraordinary done. ♪ >>> welcome back and inside the market on this historic day where the index crossed above 5,000 for the first time since 2000. a beautiful shot here and still ahead be the nasdaq hitting the 0

put the brand name with current products, you have a success. >> ibm was late to the cloud, but theye enough cash in the executive suites, if they can't get their way there organically they'll buy their way there. >> they get they're behind the curve. they're investing huge amounts of money to degree thgrowthe business. kodak didn't realize they were behind the curve. buying and holding is right. you have to make sure the companies are -- >> avoid the kodaks. >> when you go to the store, when scottie nell how do youhow doscottie nellhuge supermarket and say, i'm not using kodak anymore. i have a digital camera. that's their sell signal. it's about people connecting the dots of their lives into their investment lives. i think they're interconnected if we attune ourselves to it. >> i want to go back to the kodak. i use this in my speeches. i talk about, if they're fat, dumb, and happy, they don't look out at the market trends, digital photography, their management team failed to recognize -- >> no, they actually invented digital cameras. someone said wit, let's go digital. >> how the v

obviously you've got the apple-ibm partnership.erry making a lot of the partnership that they have with ibm. where does that leave you, if potentially we're using tablets more at work and presumably therefore that has a knock-on effect generally to how people will behave? >> yeah. it's interesting, if you look at tablets, in the fourth quarter of last year global tablet shipments dropped for the first time. so at the same time you've got still the phone installations if you will growing at a rapid clip. so it's going to be interesting to see what happens there. but we might have reached a kind of plateau with tablet where is the replacements are not coming in at anywhere near the rate that we're going with a phone or maybe now still with the laptop. >> what's your sense on mobile payments? do you think that they're really being widely adopted here? do you guys track how many you're using now that apple pay started? >> yeah we used to say that it was a solution in search of a problem. at least in the u.s. because i think that the u.

ibm does not have to lose for apple to win. or for salesforce to win.mily: what about a company like microsoft? a company that you grew up with. aaron: i think there are specific product areas that could potentially lose or be harmed by some of this transition, but then there is an entire company at the macro level that does not necessarily have to lose. emily: so companies like microsoft, google, amazon are dropping the price of cloud storage. how much of a threat is that to box? aaron: we love that. the same unit of storage is now a 40th the price as it was 10 years ago. on the supply side of our business. so the cheaper that storage gets, the more data that we can store for a customer, and the more we can deliver unique experiences around their content. emily: you recently took on $150 million in funding from tpg and coatue. the company is now valued at $2.4 billion. why did you take that money? aaron: as you may have seen, we have filed to go public in march of this year. and then basically about a week after we filed to go public, there was a bit o

ibm, it could be caterpillar, mcdonald's, the dow would have to write leadership to rally.look at this, by the way, this is the top of the channel, to rally up there. that would be 19,000. all right, guys. let's talk about this for a moment. technically, louie, you use any charts in your work? >> subconsciously, yes. i guess i'm a closet technician. >> minimalist, they don't like to admit they glance to the chart from time to time. >> i usually buy stocks on a dip in their channel. i have a center deviation range. as long as they stay in their range, i'm buying. >> you can see the dow has a perfect perfect channel right now like most of these indices. >> very healthy. matt: i use the charts every day. between 119 and 120, you had the old high. the 50 day moving average. great buying opportunity. pull back a couple bucks. dow 17250. bounce right off that in the last pull back. that's the level i'm watching. if you pull back -- >> that was the october pull back, the big one. >> yes. >> what was the similarity between the beanie babies craze and some other things. the author o

ibm is a great example. pete mentioned last week i thinkt stock has bounced and bounced off 155 a couple times. the buyback has done nothing for the stock. the one recent one real quick, look what qualcomm said a couple weeks ago, a $15 million stock we purchased. here we are at 69. since july, the stock has not traded well at all. >> i love companies that do buybacks because i think it's a great discipline capital allocation, they don't do something stupid in terms of an acquisition with the money. it shows confidence in their story. but to me, to try to get in and in front of a blackout period for a buyback just seems sort of, you know, i would leave that to someone like pete, maybe there's something to do in the options there. >> you are cute, pete. >> you are too cute by half, feet. >> you know, i think the problem is when we go through the ennine earnings announcements we look for opportunities. i think a buyback plays into it later. obviously it can. to your point, karen, i'm not going to try to outsma

the same songsung s10 tablet using ibm software with a secure microsd.sically means that it is working -- blackberry is trying to move more into this field to improve. what it will do is say that it is putting this information away so you can use the device on more than one thing you can use it for secure purposes and personal use, other applications that you may need. 63% of government officials need to access their sensitive data on their mobile devices and are given in encrypted devices but they are not very popular because you have to only use that device for getting access to sensitive information. you can't make phone calls very easily. they aren't very popular because you can't just have one device only for this and have to use other devices for personal life or other things. this is what blackberry is trying to get into and they think it might be quite popular. angie: it's an interesting strategy. it's what blackberry was known for, but it has been a troubled company as of late. they had an interesting relationship with samsung. is this part of b

maybe bad news, certainly not good news for ibm. >> well, they need something to sell. >> thank you very much. "bloomberg west" will be right back. ♪ >> this is "bloomberg west." i'm cory johnson. uber started value at more than $40 billion is starting a new search called decarta. this is a big deal, perhaps signaling an arms race in the world of mapping. a lot of the functionality they see in the uber app is highly reliable. uber once solely relied on google maps, now they will utilize a blend of mapping technology including google maps, apple maps, and others. this is the first information they have publicly disclosed. earlier i spoke with marc prioleau about what this means. >> it may be early to be a war but they may be skirmishes. i think what is happening is google maps is 10 years old. they really developed a great property and everyone went to them by default. but i think as a business means, especially big companies like uber, what they are finding is relying on google maps interface -- which is essentially designed as a consumer interface -- could be the start of a trend. >> re

there's a new way to work and it's made with ibm.m has your back.s, over the last 10 years we've helped one million business owners get started. visit legalzoom today for the legal help you need to start and run your business. legalzoom. legal help is here. now with the you can watch live tv anytime. it's never been easier with so many networks all in one place. get live tv whenever you want. the xfinity tv go app. now with live tv on the go. enjoy over wifi or on verizon wireless 4g lte. plus enjoy special savings when you purchase any new verizon wireless smartphone or tablet from comcast. visit comcast.com/wireless to learn more. >>> a look at the markets. it is a down day, third consecutive down week for stocks and much of the story as you know continues to focus on currencies and crude oil. crude is about to touch or about a dollar or so away from its 2015 low and the euro after a one-day respite yesterday has been sinking throughout this day as well. and that really remains the story that's day as well. that remains the story t

ibm watson can not only read this data, but understand it. it's trained by doctors.s always learning. it can help find hidden correlations and help your doctor recommend treatment options for you. there's a new way to work and it's made with ibm. >>> welcome back. a look at the markets. sector board in particular shows red across the board. utilities and this tells you a lot about what's happening today. off nearly 3%. consumer staples down 1.5%. anything that's dividend sensitive, rate sensitive, in other words under pressure this morning. meanwhile financials and techs and the cyclical parts holding off better. dow off 183 points. the s&p off 18. the nasdaq off 32. it's a strong dollar kind of day, a lot of discussion about the fed moving in june as you guys heard from yan this morning, perhaps markets aren't if fully ready and pricing in. not only that move but could come in the next couple years and today they might be making some of the moves and that's why we're seeing pressure on markets. >> financials were the best performing sector they were in the green thi

this is really the best of the bunch, if you look at hp, microsoft, ibm earnings. you know, 6% ex-currency. so i would call this a step in the right direction. and it definitely seems like cloud and 12c are helping put fuel in the oracle tank. >> walk me through why everybody is getting all hyped up about cloud, when it's only 6% of revenue. if they get that cloud business, does that mean that they can sell through other services? >> that's the key. i mean, they are as well positioned to any of these big tech players in the data center. they have the full stack. so with larry ellison and we believe some potential acquisitions, they have of all of these, what i call the big uglies, the best chance to escape where the puck is going, be successful on cloud. we're not talking going to 10% growth, but can they get to mid-single digit growth, see operating margin expand, and the multiple really could expand here, you know, where you could see a stock going to the high 40s, you've seen a huge sentiment shift away from microsoft, toward oracle and large cap enterprise tech

the names that we all know and are familiar with here in the dow. 3m about a 6% weighting, same with ibmbig blue, those pretty much stayed the same here. boeing remains in that top five with the near 6% weighting as well. apple rounds out the top five. it will be buy estimates using today's prices. those can change by march 18th. as of right now, apple would be the fifth biggest stock in the dow so again, visa goes through its own split, that's going to happen in the next couple weeks, apple goes in, apple becomes the fifth largest stock by weighting in the dow, scott. back over to you guys. >> dominic chu, thanks so much from back at headquarters. one of your strategy guys put out a note, i want to quote from it, plays to what dom chu was talking about, with the addition of apple and factoring in the visa split the volatility of the dow will increase by 4%, currently a $1 move in any dow jones industrial average member moves the dow jones index 6.5 points or thereabouts. after the change, that same dollar moves the dow about 6.75 points. so you want to speak to this notion of this incre

worth more than $700 billion, but only ranks fifth in dow weighting below companies like goldman sachs, ibm boeing and henry, you've been tweeting about apparently not a big fan of price weighted indices. >> absurd the price per share. come up with the craziest way to do an index that would be it. it's been that way forever. no need for innovation there. congratulations. >> i was going to say, the dow has critics but they were first by 150 years or so and they've got history on their side. >> and more interesting, apple's tv announcement, i don't know how you all looked at it, but potentially a very big deal, it's like the first big attractive cord cutting option for folks who like sports and so forth, could be a big business down the road and people are missing a lot of it which is a lot are going to goes to this. hard it to get you guys on this, right. >> right. >> the report. excuse me. >> the report. >> yeah. i mean, what i wonder is, how apple's movements will influence the dow or not and whether the dow will stabilize apple's movements and moments of great rumor. the biggest apple mov

. >> the dow is down more than the other indices and ibm is by far down the most among the stocks.at as being currency related because so much of ibm's business is outside the u.s. >> absolutely. you know, it's the multinationals and ibm's out there as a star in that field so yeah, no, i think that's there. also, the concerns arising out of intel and, you know, where is the technology world going, is it finally slowing down, so that adds in with the international trade too. >> apple will join the dow next week, i believe. what effect could have that on the market as we watch volatility which looks like it's not ending any time soon? >> you know, given apple's price, it will have a larger than normal influence in the dow, so all i can guarantee is, volatility in all likelihood will increase because we all have higher priced stocks outweighing lower priced stocks and things will move around fast. >> mean time, the euro goldman today, 80 cents by the end of 2017. that would suggest we're in the middle of this narrative, nowhere near the end. >> yeah. no, it has all that likelihood and

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alix: ibm may be turning to bitcoin. allow customers to make payments or transfers without going through a bank. you're the bitcoin resident expert. is this a big deal? matt: it is a big deal to see a big smart company like ibm saying it is going to adopt block chain technology. it is the building block of bitcoin, and it will help the currency go beyond being used as money. they are not going to use it in a decentralized way that block chain is supposed to be used, so they do not know what is going on with bitcoin. alix: cory? cory: bitcoin is so revolutionary and so important is the price does not matter one bit. the bill obtained all -- the block chain technology is it so important. the potential for this to really change the way that money works around the world is all about that watching technology. that is the innovation, that is why it is hottest investment sector in silicon valley. you will really change how money will move, history of contracts, it will be revolutionary. alix: get excited, the bbc is developing