ibm, i'm disappointed yet again. but a year ago when i began to have faith in the turn, ibm stock is at $144, now it's at $161, i think turn arounds take time, so hold on to your ibm, they might get it done. the fact that ibm's turn hasn't happened since 2012, makes me feel that if they don't get it right this year, it might be the year warren buffett will finally bring in the -- >> caller: with the earnings coming out on the 27th, if it's a buy, sell or a hold. >> i think mgm is going to be delivering. the national harbor casino, why i do mention it? because it hurt the earning last quarter, it won't do so this quarter, at $28 i want to buy mgm. jack in georgia, jack. >> caller: hey, jim, this is jack, i had a couple of questions for you about t-mobile stock. >> sure. >> caller: i know t-mobile bought $8 million from -- what are the top three telecommunications stock. >> t-mobile has been my favorite in the group, and it's been that way for a long time. i think john ledger is doing the real thing, even though i have

big pressure on ibm shares.ll talk about that and continue to watch the parade of earnings out this morning with companies like morgan stanley that are reporting. we'll talk to mark grant coming up in just about 25 minutes a lot of things happening. he's been right about a lot of things. everything from trump's election and how that is positive to the markets, to how low treasury yields have been. now he has a knnew thesis. i'm interested in hearing more about these points. wilf, you have been talking about what theresa may said yesterday, even before that announcement he decided this was a time to stare cleeer clear of. we'll talk to the president of the ford foundation, they have something called impact giving, where you change the way you give to fiphilanthropy. when i say bobby brown, who do you think of? >> the makeup artist. >> okay! >> i'm glad you answered that. >> i wasn't sure you were going go with makeup artist or singer. >> i would have gone with neither. i don't know either. >> wilf, i might have g

the ibm 1401 came just after ibm put in an order for the company. the reason for that was getting away from electromechanical devices, which had a high rate of failure. some of the areas we were in in data processing at the time. in differented areas, just outside of paris. two competing designs, european and the new york state line. the majority of the functions that came with the new york design were incorporated with a lot of the technology the french and germans put together. the fortune 01, as i said, the sonar and card reader were roughly the same time. it was a perfect white storm gathering. one was the card reader design. printerign behind the being four times faster than any printer up to that time, and the processing unit staying true and going to transistors. what we see here are four transistors on the card. germanium transistors was a breakthrough in the 1958 timeframe to have these transistors available, and the price frame came down, so we could put this into a business computer. the business computer i defined as one which does payro

ibm is in the midst of an incredibly difficult turp around. while at the same time expanding into faster growing new tech areas that attract a different and morrow bust group of investors. ibm wants to become known as the company that uses watson's platform. watson wants to be viewed as a place to mine data and put it to use, and the more data the better. the problem is that ibm needs to keep signing up new customers for all the rest of its businesses at a pace that's enough to not drag down the whole company's earnings with it.

we're having a fierce debate about ibm.bm has q1 earnings beating expectations, but sales fell short. the company has logged four straight years of quarterly revenue declines. call that an anniversary. the stock down sharply in early trading. the stock now down close to 4.5%. i think got closer to 5 earlier. joining us to talk about this is james wang. ibm has long talked about don't look at the revenue, they're empty calories, it's not the issue, we're looking for a higher margin here, that's the ball game. that's how they want the market to see the ball game. >> and watson. >> how do you see the ball game? >> we found ibm -- we traditionally wouldn't have gone for a name like this we were looking deep into the artificial intelligence field. if you talk about ai, most of the names that come up are stuff you already own. alphabet, facebook, nvidia if you're into hardware. outside of core internet there's not a lot of choices when it comes to investing in ai. it's an exciting field but not a lot of choices. ibm we think is a

ibm can't seem to make this turn. they will make the turn. the question is here and now, what do you pay? what's the right multiple for a declining legacy business. margins that continue to decrease. their margins came in right under expectations? >> you said ten? >> listen, i think you could say ten, obviously the market will get you there. it's probably closer to 12. warren buffet will probably continue to buy stock. he is correct. you have that working for you. again, this doesn't change overnight. it obviously doesn't change over the last five years. >> is there hope somebody will come in and demand more change at ibm? >> i don't know. you have warren buffet there behind the scenes, if he has some thoughts about change he wanted to see. maybe that would happen. i don't know, do you hope the 21st quarter is a charm? i don't know. it's not like it's so crazy cheese that you think, all right, there's got to be a pony here somewhere, something that looks like it's something else? i don't get it, actually. moving on, the end to the cleveland m

2000s, where ibm was not cool. the it was still a blue shirt, white shirt kind of company and i think the company has evolved. what it has is big rnd budgets. great legacy of both creating patents and developing new technology. and they have excellent access to facilities. and so, i think collectively, that's attractive for select types of engineer, now, the stock has really underperformed the broader market and certainly, the tech space over the last five years, so i do think that has some impact. burr this is not a new problem for ibm. i think they've been facing this. >> last question on ibm, they guided q2 down materially, but upheld the full year 17 e p ps and free cash flow guide. they're also saying they still reach $40 billion in sales in their new growth businesses by next year. do we believe management or do we have to throw that out and start fresh? >> i think the earnings of at least 1380 is extremely unlikely this year. unless ibm benefits from, from a nonoperational game like tax or sale. >> all right

one of the dow 30 stocks is ibm. ibm is going to be way down this morning.t will take 60 points off the dow. so, if it were not for ibm, the dow industrials would be up almost triple digits. bear that in mind. national house trade director peter navarro, he was on the show yesterday talking taxes, roll tape. >> we need a tax bill that's consistent with president trump's promises and we need that as soon as possible. remember, during the campaign, one of the most important promises was to lower that corporate tax rate so that we could keep companies here and create a bunch of jobs. so, yes, we need tax reform. stuart: ah, did you hear that? corporate tax cuts a priority. guess who is with us, david mcintosh, club for growth, a man who i disagreed with on other issues, but-- >> today we're in total agreement. stuart: tax cuts, i think that the republicans are zeroing in on what is doable and that is a corporate rate tax cut. are you with me? >> i agree. i think they've got to also make sure they call them pass through to small businesses that run on the indivi

confident the ibm company grows again.ke sure we invest in the right places and get the kind of margin high value profile we look for. >> as mentioned, our shares, went up quite a bit. going more into this year, they flat lined a little bit. so i'm mentioned comparatives, and if i have this right, it's now 42% of the trailing revenue for the year which is quite a bit of a big number. obviously, that's where you focus people, so explain to us a little bit does that include the cloud business? is that just part of it? you know, where does watson live? what's the house look like? how much is a growing? >> sure. the strategic comparisons in total encompass our cloud business which is both cloud in a private cloud met trick as well as our ad for service businesses, including analytics business, which had good growth again in the quarter, and analytics contain our watson businesses, if you will, and then they also have in it our mobile and security businesses. watson is a technology is a silver thread that runs through much of t

deirdre bosa takes a look at ibm's quarterly results. >> reporter: this was ibm's 20th straight quarter of declining revenue. the company has been growing at so-called strategic imperative unit, as well as watson, its artificial intelligence unit. this unit makes up 42% of its revenue but not enough to make up for ibm's declining legacy software and services business. bottom line, this past quarter's results indicate that the company's transformation is going to take more time. for "nightly business report," i'm deirdre bosa, san francisco. >> ibm wasn't the only dow component to report. goldman sachs surprised investors with a rare earnings miss. johnson & johnson also disappointed, while united health care reported an upbeat quarter. but the results pressured the broader market. the dow jones industrial average fell 113 points to 25,523. nasdaq lost seven. and the s&p 500 was off six. and of those three dow earnings, the rise in united health care was not enough to offset the losses in johnson & johnson and goldman sachs. >>> goldman's big stumbling block, trading revenues, down from

s&p up 6 as ibm taking a chung out of the dow. >> shares of ibm falling hard. sales coming in short of street estimates for the first quarter despite gains in the cloud, cybersecurity and watson. it does mark a 20th straight quarter of revenue declines at big blue. company cfo, martin schroeder, on cloegz well. >> we have not been solely focused on the top line headline number of when can we print growth. had we wanted to, we wouldn't have divested $8 billion worth of businesses. we would probably reduce our investments overseas where there is a currency impact. that has not been our focus. >> joining us now is credit suisse analyst who has a rating on the $110 price tag. ibm is trying to transform is self. how far of a setback back is this? >> it fundment falamentally tea transition they are going through. we see revenue shrinking through 2019. the second thing, we saw some evidence of that in this quarter. the second issue is this transition towards a cloud or initiatives we think is fundamentally gross margin dill lieu tiff. that's why they are reported as t

ibm joined the party. apple took a full page ad that said welcome ibm, seriously. had very important job of legitimizing personal computers for business. most businessmen looked at these computers like the apple as basically toys, suitable for home or educational environments but not for business. ibm's entry into the field in 1981 to put a stamp of approval and legitimacy on the pc. you could actually do business types of task. ibmm's initial strategy was toll protect the main frame at all costs. that is what was generating their billions of profits. the main frame is a room-sized computer filling up hard drives. the ibmpc was something that would connect to those main frames and later that would stand alone and be used by an individual. we are now in the networking and web gallery. what we have here is google's first web server. so at the time, google was a small company with limited funds. they built their equipment on the cheap and went to a local electronic store and bought compatible circuit boards and mounted them to this large cabinet. it acts like a search

now, ibm ceos ginni rometty's pay package is up for debate.r, big blue has had 5 five years of falling revenue. by proxystimate advisors iss and bloomberg is that actual compensation may be understated by as much as half. that is because of ibm's way of thine stock options. our reporter joins us from new york. fascinating reporting. $60 million. is that how much she could actually be getting if we look deeper into the options pricing? >> closer to $50 million, but still quite a hefty premium over the $32.7 million ibm reported in the proxy filing last month. we ran the numbers at that point, and for these options, we got a much higher value than ibm got. iss agreed with us and set these are worth closer to $29 million. caroline: that is quite fascinating. pay on the bloomberg function. she is one of the top earners already. number six currently. number six in the previous year. very highly paid when it comes down to it. we could see shareholders get a little bit angered by this, feeling essentially that she is overpaid when you look at wh

ibm is set to weigh down the dow today.otching the 20th straight quarter of year over year revenue declines. >>> plus, a border tax replacement. the white house considering a elimination of state and local deductions needed to pay for tax cuts. >>> some drama at 21st century fox as advertisers flee. reports that primetime star bill o'reilly is now all but out. it would be the third major departure for the network in the last year. >>> ibm bill's down sharply in the premarket. the miss on the quarterly revenue overshadowing the sales beat. down for 20 straight quarters. ibm had an 11 quarter streak of opening lower on earnings. that was broken last summer. now appears to resume. >> yeah. look, this was a kind of quarter where they actually didn't close certain business anded that they closed -- and had they closed certain business, you know what, things are on target. the gross margins are not done as much as they were. the signings are surprised that they did misit -- miss it. we accept it for qualcomm, they have all the pa

now, ibm's ceo pay package is up for debate.ber, big blue has had five years of falling revenue. the estimate by proxy advisors actualomberg is that compensation may be understated by as much as half. our reporter joins us from new york. fascinating reporting. $60 million. is that how much she could actually be getting? to $50 million, but still quite a hefty premium over the 32 point 7 million dollars ibm reported last month. we ran the numbers, and for these options, we got a much higher value than ibm god. ibm agreed with us and said these are worth closer to $29 million. caroline: i am looking at pay go on the bloomberg function. she is one of the top earners already. currently. number six in the previous year. very highly paid when it comes down to it. we could see shareholders get angered by this, feeling she is overpaid when you look at what she is actually bringing back. >> ibm is in an interesting situation. for the first four years of her 10 year revenue has been sliding. 20 straight quarters. -- first four years of he

first, ibm reporting first-quarter results.evenue fell for a 20th straight quarter, down more than 2%, to this is just under expectations. $18.2 billion. gross margins also trailed analyst predictions. as a result, shares trading lower after-hours. you can see we are down 3.9% in after-hours trading, more than $5 billion in the market cap. it is a 160 billion dollar market value for ibm. let's get a little more analysis for you. we are joined with more reaction. is there any upside here? we see revenue falling, profit margin falling as well. any rays of light amidst the clouds? reporter: the few things i would point out is that pretax margin actually went up quite a bit, due to a severe cutting off sgna. so that is something to talk about positively. caroline: sgna? reporter: saves, administrative, general expenses. it led to pretax profit expansion. the other thing is they are non-gaping guidance of bps for the full year. the thing i would be listening to is to understand the difference why the gross margins declined by such a

caroline: can you talk about the ibm?rspectives of this is a company that set alongside donald trump and said they would be hiring, and it seems they have been making significant layoffs. in october, they laid off 600 people in germany. what are we seeing in terms of employment? reporter: cost-cutting has been one of the big reasons why pretax profit increased this time across most of their divisions.we will be listening and trying to figure out if they are hiding in certain areas, whether it is in watson, artificial intelligence, cloud, are in areas where there is no growth. caroline: i want to talk about the core operating expenditures. suisse has been saying the only way ibm can make earnings per share forecast is by reducing core operating expenditures significantly. apart from layoffs, where else could they be reining in their expenditures? reporter: layoffs is a big expense item.rmb is still healthy. it is really cost-cutting through employee costs. a large portion of that is in the legacy businesses, where there is

ibm exacerbating the look on the dow.market feels as if it has a defensive feel to it. definitely on its heels today after that oil price tumble in the afternoon. so i think that was one other thing. you know, treasury yields were up modestly. we saw very half hearted bounce in the morning, and i think people just don't know if, in fact, this has to be some kind of a deeper flush to get a true -- kind of rebuild of buying power in the market. >> dennis, in the heart of earning season, it is not helping at least for the dow right now. what did you make of goldman's results yesterday? in a way it was more surprising than what we heard from ibm. >> it was. but the expectations had gone up so much, the stock price up so much, obviously reaching all-time hyatt some point not too long ago. so from my perspective it is really sort of a microcosm of what we have seen in the post-trump environment, kelly. it is can those stocks reach the expectations of the market, at least as it comes to goldman, ibm and a large number of others

the time we worked together most intensely was after the ibm pc came out.ve had a small group at apple that was doing the macintosh. and he came to us early on and asked us if we would commit resources? so we actually put more people on the project than apple did and did the early application software that used that mouse-graphics interface. and so, it was a huge win both for microsoft and for apple when the macintosh became so successful. david: when your mother first set, -- when your mother said first that i would like you to come and have dinner with me and warren buffett will be here and you should meet him, you didn't seem interested? why is that? bill: i thought he was -- not curing disease or a cool piece of software. and the idea of looking at volume curves -- that is why it was so shocking when i met him. ♪ ♪ david: so your company grows, becomes successful. at what point to you say, i have made a fair money and i don't need to do this anymore? i want to do something else with my life? bill 1995 was the big year where : we shipped the product, had

ibm earnings -- speaking of down earnings, ibm is down 5% in the premarket. cloud not yet offsetting its business. growth margins and operating margins are getting tighter. itsmate helping to lift peers in the premarket. john? jonathan: the big question over in london is who wants another election? prime minister theresa may seems to think she can crush the labour party. if the chamber votes two thirds of majority, they can bypass the parliament act to get the snap election in early june. the prime minister seems to want a good reason. david: there is a method to her madness. morgan stanley back in the u.s. did significantly better in the first quarter. it's fixed income business did better than open sacks. joining us now is laura keller. laura, how good was this news for morgan stanley? laura: they are really relishing it. there has always been this rivalry between morgan stanley and goldman sachs. when you get to be morgan a business yous, restructured, that is great. if you look at trading on either side either fic or equities, goldman trending higher. dav

the head of general motors, ibm and wal-mart will be attending.rlines and damage control after a video come in this video of a passenger tried for this event i will. the airline forcibly removing the man when he refused to leave and overbooked flight to make room for the employees. united shares down 5% in premarket trading. as for the overall market, dow futures down just seven points right now. s&p futures down one and nasdaq futures down two points. that's a look at what's happening now. traitor president trump has gone back to the drawing board as he looks for wide-ranging republican support behind a tax bill. joining us to talk about kirsten hoglund. it sounds like the august deadline may be off the table at the white house doesn't get it done by december, do you think it's over? >> is simply not over. this is something he campaigned heavily on. if we did pass tax reform before the midterm election of 2018, that is a huge win they can go back to districts that and say they got this done. if not off the table. sean spicer as well as senate maj

maria: does ibm fit into that list? >> you know, ibm is more of a legacy player, i don't cover it. i would say these newer entrance that are leading with public loud are taking a lot of incremental share from existing ip players. maria: the quarter has been good in terms of earnings, right, mike, how would you characterize things right now in mike: i think the quarter has been great. we talked about this going into the first quarter that people were just feeling more positive, whether it was the potential for tax cuts or the potential for a probusiness administration, but i think that's where we are getting and two of the biggest companies that can benefit from that are both alphabet and amazon because of the economy grows, business has so many different levers that they can pull to improve profitability, right? >> they are both involved involved in many aspects to have economy, obviously advertising is the lead product of google, we are talking about cloud computing, now with pixel and we are talking about hardware. amazon has a two-prong story. maria: one of the reason that is we

the dow is down because ibm is taking a chunk out of it. the s&p hanging on and the nasdaq is doing the best of the three. why? semiconductors. snapshot, theou a philadelphia semiconductor index, which has been hit lately, is up about 1% thanks to lam research, a maker of chip making equipment whose earnings beat estimates. it is helping applied materials and teradyne. another strong performing group is consumer discretionary, automakers largely higher after european car sales came in at the highest in five, with an 11% increase in registration. market share won and we are seeing a left generally in ford -- lift generally. we are seeing some risk appetite come back into the market. the so-called haven trade, the places people go with a are more concerned about the outlook and a lot of these places have been gaining money lately. not so today. the vix down 5%, under 14. gold coming down 5%. , and thear yield down dollar is gaining versus the japanese yen. it is not enough of a reversal to erase the moves we have seen recently. case in point,

can watson save ibm, a report in decline in revenues for the 20th straight quarter, ibm shares down almost that's going to pressure markets certainly. top story right now, timeline for tax reform. president trump touted his buy american, hire american. >> secretary mnuchin is working to put together a tax reform plan to make our industry more competitive and also to provide a level playing field for our workers, we don't have a level playing field, believe me, you are going to have one very soon. we are in very good shape, we are going to announce it very soon. maria: joining us this morning icm, thanks for joining us. >> thanks, maria. maria: you're close to the action and you have to allocate capital, do you expect tax reform and what kind of impact is that going to have on money? >> i think that investors have pulled forward a lot of gains, in anticipation the quick tax reform bill. maria: and? >> a as result of that, it's ing to be a little delayed in terms of how that possibly impacts this year. maria: do you think the market selloffs because of that? >> the markets will sell ah as pe

shares of the ibm plunged in after hours trading corks reported its 20th consecutive quarter of falling revenue. ibm is trying to move away from older products like computers and focusing on cloud computing and artificial intelligence. ibm is based in west chester county here in new york. >>> lower gas prices have put the brakes on electric powered vehicles, triple a survey found 15 percent of americans are likely to buy an electric vehicle as their next car, roughly same percentage as people who plan to buy a pickup truck. triple a ranked the tesla suv as top green car for 2017. >>> google earth is going 3-d, users can see certain location ness three dimensions getting a drone's eye view of the historical, geographical or architectural sites around the world and it includes interactive guided tours. jim and rahel. >> i love that. >> that is interesting. >> i love google earth. now, jill, you know some news publications are doing 360 views of different scenes which is really cool. >> i'm telling you, high tech. >> funny story, one of my friend was in front of the cbs broadcast center he

president and ceo and chairman of ibm.oming up the white house rolling up what it is calling the biggest tax cut in u.s. history. what will it mean for you for the taxpayer. house financial services committee will join us next as we look ahead on sunday morning futures right here live, stay with us finally. hey ron! they're finally taking down that schwab billboard. oh, not so fast, carl. ♪ oh no. schwab, again? index investing for that low? that's three times less than fidelity... ...and four times less than vanguard. what's next, no minimums? ...no minimums. schwab has lowered the cost of investing again. introducing the lowest cost index funds in the industry with no minimums. i bet they're calling about the schwab news. schwab. a modern approach to wealth management. maria: w administration unveiling a sweeping plan and collapses seven track brackets to three and the white house also say that is millions of families would see some much needed relief. i spoke with white house national economic council director gary cohn

look at ibm. ibm is noun a little bit.key as they shift from legacy computers to cloud strategy and artificial intelligence and cybersecurity business as well. we'll leave it there, cross our fingers that earnings give us a positive catalyst. we need it right now. liz: i would say so, we're down 105 points with two minutes before the closing bell. make it three. president trump just insisted buy american but a "barron's" top-ranked financial advisor said not necessarily when it comes to your portfolio. he is right here, ubs senior portfolio manager manager jason katz. you're looking across the atlantic to put some of that two billion in assets you manage to work. why? >> first of all, thanks for having me, liz. not that constructive on u.s., we're very bullish for a number of reasons. the fact of the matter is, european economy arguably improved to a better degree than ours. while the valuations have improved, it hasn't been to the same extent as ours. so from valuation perspective europe looks extremely compelling. liz: o

the earnings report for 20 consecutive quarter, ibm reported a drop in revenue. they are still having some issues converting from being more focused on hardware, software and services, getting deeper into the cloud computing industry. there is some upside. the transformation clearly seems to take longer as the market expected. we also solve this sharp decrease in the price of oil. >> thank you for the analysis. >> that is all from the business desk. back to sarah. >> we believe you now. thank you for watching dw news. see you next time. ♪ >>> this is known as china's silicon valley due to its many electronics factories. it ranked

to create a curriculum for these students going through, and that ibm would hire the students on theide. again,d it time and whether it was from andrew or dow chemical, or jenny from ibm, so many large organizations were looking to cultivate and create in this next generation of graduating students the skills they need. so it is really happening already in a very robust and dynamic way in the private sector because of the need. right now there are over half a million jobs that cannot be filled because the students graduating don't have the skills relevant for those positions. we want to bridge that get, take those programs and grow them in a very real and measurable way. >> one of the things we have to do as part of that is rebrand vocational education. we need to make it something that is honored, as your father has said so often, a skill needs to be honored. fortunate we have someone in evocative who knows a little bit about branding. you have also been a vocal person about the need to empower women in the workforce. and in the workplace. today is equal pay day nationally. how will

lauren: is turning seasons and ibm is one of the stocks to watch this morning. shares plummeting after the latest quarterly revenue came in slightly below the estimate. profit fell 13% from year ago despite gains from ibm's what can artificial intelligence business. earnings from another bank before the bell today. morgan stanley to report sharply higher earnings and revenue from a year ago helped by healthy bond trading business and lower cost overall. american express reported in its latest numbers "after the bell." analysts look for lower results. facing stiff competition from rivals including jpmorgan chase as well as citigroup. lea: democrats falter in their bid to replace republicans from georgia even with $9 billion from outside the state. >> at the wealthier, better educated district where they did not do a spell is made romney did. intellectually, ideologically is perfect for trying and terms of where people stand. lea: will have what is next in georgia. new music being released from the legendary performer prints. we will have some of that for you. let

it was ibm yesterday pressuring the dow, goldman sachs before that.ut i don't pay attention to the dow anyway. i pay attention to the s&p. and you mentioned a lot of deentdz -- decent earnings. >> we've got when you see a transport like csx up $2.87 you have to take notice. you're talking about cargos that went well. when you talk about american express you take about consumer spend, it was very good. consumer spend worldwide is rather extraordinary. by the way, i know that they have kind of disappeared from the radar screen, but uh-uhnile was very good. and really interesting, that dovetails with what american express is saying. they call it mexico, this is the second time that mexico has been called out this year. because michael core back called out mexico. you're having strange places doing well. >> mexico a strange place to be doing well? >> well, i think they have received a battering in the press and they're considered to be from our president a country that is -- a failed state to some degree. except for what nafta does for it. and i think tha

ibm revenue falling short.he 20th straight quarterly decline, the stock was down as much as 4% after hours. ramy inocencio will have more on that. let's go into the bloomberg. it geopolitical concerns continue to hang over the market. many strategist talked about the volatility not as bad as 2015, but nearing the high of the year. we will have to see significant gains in the market to offset the recent declines and concerns. betty: let's dig deeper into the earnings side of things. of two tael -- tale banks. >> goldman was a rare stumble in banking, you can see they are down 11%. more than half of that happened today. they ended the day down 5%, but they were down more than that at the low point. why? they reported first-quarter results, weaker interest from clients and commodities and currencies and client activity was challenged. $2.26on the big numbers, billion, on revenue, those numbers bigger than last year. they missed estimates. the 2.4% decline from a year ago and the all-important trading was a big sur

all my life, i was in ibm's.as the chief executive officer of ibm europe, middle east and africa. about 90,000 employees and the only reason i went into politics was i tried to influence the euro policy of the german government, because the euro policy in my view, had a tremendous number of side effects. one is that it led and will lead to unwanted centralization of the eu. it will lead to socialization of banking and government debt, and it will lead definitely to an unacceptable europe. certainly,or of eu, with a concentration of finishing the common market. one of the sad side effects which has been overlooked in the thatcouple of months is policy of the europeans, especially the german government, has also contributed to the brexit. to influence the german government to change its euro policy, so far without success. macron looks as if mr. will win in france, though it is looking tricky at the core. we will have mr. scholz in germany. is that a recipe, if we get a groupingrkel or scholz in france and germany

but 15 years ago, ibm's market cap 154 billion. go in the way back machine, if i told you 15 years ago that apple's market cap will one day be four times as high as ibm, i would have said will you get lost? first stocks are the sum of what investors are willing to pay for future earnings, betting that earnings will grow later. those are the ones who buy tesla stocks every day that to you seem overvalued. we hear about the market's resilience, but the buyers that stepped in today were very dimpl from the buyers who stepped in yesterday. there's no market. they're just individual markets like tesla and ford. you can't bet against a company just because a stock seems overvalued? who are you to determine that? maybe one day in the long run tesla will crash and burn. but do you have that kind of staying power? the greatest economist of all times says in the long run, we're all dead. tesla doesn't fit my cup of tea, i have great discipline, that discipline kept me out of it. you need to stop being hung up on the valuation of individual s

. >>> ibm raised its guidance. it signed with abb to create and develop new industrial products. ibm shares fell 36 cents to $160.39. >>> rite aid says the ongoing merger process with walgreen's negatively impacted its quarterly. still, it managed to top earnings and estimates and says it's working with the federal trade commission to wrap up its merger with walgreen's by mid-summer. shares of rite aid popped 6% to $3.97. >>> lockheed martin posted a rise in sales but missed estimates due to charges that the company booked related to its foreign contracts. but it did raise its revenue forecast for the year. as for profit, the company beat expectations but said it was lowering its outlook for 2017. the shares were off 2% to $270.02. >>> the mining company freeport turned a profit and recorded higher sales, but results fell short of estimates. the company said it will resume operations at its indonesia line for at least six months while it works with that country's government to negotiate a new agreement. freeport shares surged 7% to $13.10. >>> at&t posted lower than expected reve

look what happened to ibm today. the worry is that the first quarter might represent the peak for earnings growth, which is now about 10% for the first quarter. there's no panic yet. this could all change if we get stronger second quarter gdp data. and the fed does indeed raise in june. that would almost certainly push bond yields higher, and a lot of these issues would go away. but for right now, it's a tricky moment for the markets. i'm bob pisani for "nightly business report" at the new york stock exchange. >>> the rally in the markets since last fall may be one reason why individual investors are getting back into the stock market. today, td ameritrade recorded an increase in new accounts which are primarily used by individual investors. it also said the number of trades per day grew. rival discount broker charles schwab yesterday said account openings hit a 17-year high. while it appears smaller investors are going into the market, a survey says fund managers and big investors are getting out of stocks, worried

the dow really being dragged lower yesterday by ibm and those disappointing numbers. futures better up 46 1/2 points this morning. s&p up 7. nasdaq futures are up about 19 points. we have more earnings to talk to you about, including amex last night. better numbers. as for overnight action in asia. better numbers when it comes to japanese exports. it's an important sign of global demand, potentially picking up. the nikkei ended the day flat, but hong kong and shanghai rebounded a bit from what has been a lower week for both markets. hong kong up a percent. shanghai flat. as for the early action in europe, mostly positive, especially in france which we're watching closely ahead of the first round voting on sunday. the cac is leading the charge, up 1%. the ftse 100 in the uk underperforms again on the back of a stronger pound. very interesting to see after the prime minister theresa may surprisingly called that snap election. strong pound hurting the exporters particularly, and the ftse 100, mostly a better tone across asia and europe. >> deutsche bank saying potentiall

morning as the president meets with top executives in washington this morning including the heads of gm, ibmblackstone ceo steve schwartzman on the agenda trade, infrastructure, budget and education. our kayla tausche is on the ground with all of the latest. >> reporter: good morning. just a few moments ago we saw the president leaving the west wing going over to the eisenhower executive office building to meet with those some 20 ceos of some of the largest multinational companies based here in the u.s. we are getting some headlines based on the comments that he has made on an introductory basis to this group saying the administration is going to have pleasant surprises on nafta and notified the senate that he negotiated. the nafta headline is one we want to discuss further. this group has been convened to discuss tax reform, to discuss trade, to discuss infrastructure, education, and this whole host of issues that cabinet level secretaries have been in small groups with all of these ceos discussing at a more granular level throughout the morning. we'll see exactly what the president says an

and ibm soon as they come out. david? david: expectations of a great earnings season driving markets a lot higher yesterday but today, a little bit of reality settling in. a pair of disappointing reports shaving most of the points off of the dow. particularly into the end of the trading season although it is way off its lows. let's go straight to lori rothman on the floor of the new york stock exchange. at one point, lori, i thought the market would stay down under 200 points but it did recover from that low. reporter: i saw that a little after 2:00 eastern. i think a technical buy someone here on floor told me, why we came back down 113. we've sort of been at this level all day. we were up about this level on the dow yesterday. we're looking at treading water. so much for markets to digest. bad news with the geopolitics and tax plan being postponed. earnings were supposed to be the bright spot for investors. those two this morning goldman sachs and johnson & johnson huge dispointments. look at goldman sachs versus how th

can ibm reverse that? reports earnings after the bell we'll get you ready for that report but the restaurant industry still struggling but people are still eating out. which trainz chains will 408d up the best? we'll give you recommendations. president trump is arriving in wisconsin promoting that buy american, hire american all that coming up next on power lunch. with e*trade's powerfulrading tools, right at your fingertips, you have access to in-depth analysis, level 2 data, and a team of experienced traders ready to help you if you need it. ♪ ♪ it's like having the power of a trading floor, wherever you are. it's your trade. ♪ ♪ e*trade. ♪ ♪ start trading today at etrade.com let's[ whimpers ] dog. find ping-pong. okay, let's go. find your awesome with the xfinity x1 voice remote. that's amazing! your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty m

look at ibm, 161, $160 billion and say nothing should be bigger in tech than ibm, i'm referencing when first got in the business it was inconceivable a microsoft or intel could surpass. it tesla builds 500,000 cars and they sell you would understand why this is, i'm not trying to rationalize. i'll go the other way on this. i think this has more to do with ford and gm one of the lower priced companies in the s&p because people believe it's peak autos. go back over from phil lebeau said yesterday and you have an answer for why ford and gm, their price to earnings global are sinking because the numbers were terrible. is tesla overvalued? if they make 500,000 cars, no. if they -- >> right now they're making 100,000, rate of 100,000 a year. 25,000 a less quarter. >> certainly not 500,000. >> not yet, no. >> there's a guy who knows cars, a man who knows cars, and that man is jay leno and jay leno said there and said name me another car company that's been successful in terms of the ford, chrysl chrysler, gm. i think back to what he said. if you are a believer in growth you believe in him. ob

in fact, ibm the worst performer on the dow, on its earnings today. so the perfect storm brooi brewing for stocks. steve, what do you say? >> when you look at crude, you look at the prism of the $50 mark. the stocks, the actual commodity. but i have been negative on krudz and crude stocks, feeling at the saudi aramco potential ipo has been a real setup. it's the biggest head fake for me. because every analyst, every buy side is looking to get a piece of it. every sell side is looking to buy into that event. it's setting up literally for a perfect storm. i'm negative. there can be the market and crude but i do believe that it's time to take profits for everything that you just mentioned. i do believe that tax policy has taken a little bit too long. i believe that gdp. we thought those kroger policies were going to spark it are on hold. so i do believe it's time to take some profits. >> i look at crude oil, i actually look at brent. i think it's universal, i think you have a dynamic here, every time you get a bad inventory number. i think there could be

sees the rise and deal june 2017.occur in joe: a quick look at ibm earnings which came out after ibmnd are also not good. the stock down 3.1%. 18.4 the estimate of million. etf, slightly beat. .he adjusted margin you can see this, the stock not doing good after hours. a week margin, the stock down over 3% after hours. "what'd you miss?" prime minister theresa may calling for an election on june 8. this, as she heads into brexit talks with the european union ph he made the announcement earlier this morning. >> we need a general election and we need one now. we have, at this moment, of one off-chance to get this done while the european union agrees before the detailed talks begin. only i have recently and reluctantly come to this conclusion. jumped on the announcement, moving up of the moving average. this chart goes back to last year -- june. you can really see if you're at the end, the big spike. markets really liking the announcement from may. for more analysis, i want to bring in nina, associate director for henry strategy. there was some debate that this could be a possibility for

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ibm shaving about 60 points off the dow. that is painting the overall markets red even as half the dow components are actually higher. let's bring in chief investment officers with matrix asset advisers and bruce mccain, chief investment strategist with key private bank. david, i will start with you. you have been an aggressive buyer of financials. goldman sachs fell 5%. are you still aggressive buying on the financials? >> remember, we've talked about financials for the last six months. we were early and right. they've had a great run. what we've said if there's any sort of pullback we would start to aggressively buy. our favorites would be a jpmorgan or wells fargo. we like morgan stanley today. we think that stock has good upside. we don't own goldman sachs but if you wanted another financial we don't think their model is broken. it's at a good price that will do well along with the group over the next 6 to 12 months. >> david, would you how would you characterize earnings even though the numbers were quite good year over

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president trump is meeting with about 20 chief executives, including the heads of general motors, ibm, walmart. let's go and listen in to what we just got from the meeting. >> this is an incredible group of world-class business leaders. that's what you are. also joining us are secretary betsy devos, secretary wilbur ross, scott pruitt and my budget director mitch maulvaney. such an easy job. the easiest job of anybody in the world. at the top of our agenda is the creation of high paying jobs for american workers. we've made a lot of progress. you've seen the numbers. we've created over 600,000 jobs already in a short period of time, and it is really going to start catching on now. some of the things that we've done are bigly and they are catching on. already, we've created more than almost 600,000 jobs. yesterday, toyota just announced that it will invest more than $1.3 billion -- it's probably going to be $1.9 billion -- into its georgetown, kentucky, plant. an investment that would not have been made if we didn't win the election. we have a lot of work to do. the last two decades, o

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volume 3.5 billion shares, dow dragged lower by ibm, ibm shares plunging 5% after revenue fell for a20th straight quarter, morgan stanley shares up 2% after a boost in bond trading, and listen to my reports 3 times a day coast-to-coast on the salem radio network. up next, democrats in denial after failing to flip georgia's 6 congressional district. >> we have a lot of wind at our back that the progressive energy out there is palpable and volunteers are out there and we'll be knocking on doors and the dnc is all in. lou: man, talk about a string of cliches. the beginning of the problems of what -- that is what it looks like to me, that is the subject of myself commentary, dems looking to imminent sanctuary policy state wide, republicans fighting back, we'll tell you how that is going, a full report next. i just want to find a used car without getting ripped off. start at the new carfax.com show me used trucks with one owner. pretty cool. [laughs] ah... ahem... show me the carfax. start your used car search at the all-new carfax.com. you totanobody's hurt, new car. but there will still

julie: if altering of the run weeks earlier in the day, the down 60 points, that is the toll ibm is takingmore on the dow, and that is for it responsible underperforming versus the other major averages. this is a relatively familiar pattern for ibm even though the company has heat on sales in recent quarters. the stock is not out for. reports the last 11 after we have seen the stock go down, it has gone down in this same range on a not in freak basis here. sales are down for 20 consecutive quarters although the latest drop was a steeper one than estimated, which was in contract -- in contrast with recent quarters. movers we're watching on the upside includes intuitive surgical, the maker of the surgical robot and one reason the nasdaq is outperforming today. that topic posting its fastest procedure growth since 2013, led by u.s. general surgery and worldwide urology. shares 7%. the chipmaker coming in with numbers beating estimates and competitors are rising as well. is rising after it was to reflecter rbc improved fundamentals in the north american container board market. i also want to t