david: she does not ask about ibm?hter] ginni: her biggest thing -- this is a funny story about my mom. so this past easter, she was at my house, and i was having to leave in the middle of the day to get to the airport. and my mom says, "hey, before, before you leave, i have your annual report, and i have written you a little set of notes on it." i am like, "great, i'm even going to get a report card for my mother on this annual report." [laughter] ginni: because the first thing, like a mom does, is she looks at the pictures. and then -- but my mom says, "look, i loved this annual report." she goes, "this annual report, i understand what ibm does." and it was 50 vignettes, 50 short little vignettes, about how the world and professions and industries change because of watson, about ai, about cloud computing, and how it will make life better. right? my mom goes, "this is -- now i understand." and then she had some comments about the look and the paper type and other things, so she gave me a report card. david: did you gi

david: lelt's talk about ibm. it is a hardware company, software company, consultant company, what would you say it is today? ms. rometty: keep going. right. when i say first off an enterprise company, right, we uniquely live at that intersection of tech and business. and then as you said, over time, we've built hardware. then we layered it with software. we integrated on to that services. now as i say we're becoming a cloud and a cognitive solutions company. there will be another reinvention of ibm in the future. today it is about that. it isn't about the technology. it's cloud, a.i. right now. it's the why. as i say to all my colleagues, i feel like we're the champion for business. i'll tell you what i mean by that. right now, if you ask me to pick one word what ibm is reinventing around, i would tell you it's the word "data." there is gold in that data and to me we are on the verge of companies being able to use all that. to me this is companies to go on the offense now against start-ups, against disruption. yo

controversial but that's my nature, ibm. >> did you hear the warren buffett interview? >> it sounded like he was selling to me. >> it sounds like there will be big news about ibm not good >> it sounded like part of that was for taxable reasons, that's not necessarily a bad thing. >> okay. >> secondly, he bought that because of the buyback my view on this is what's the catalyst that will move ibm shares higher? they are huge in the two biggest tech trends we have coming up, ai and blockchain. why wouldn't you want some of your portfolio to be in that ibm does not get enough credit for that therefore that's why it's cheap and why i think it's going to get more expensive and this is bk is on to something, tim gave him cukudosn it a week and a half ago maybe they've finally turned this thing around and it's very difficult to be short this stock in this environment into earnings when they potentially have so there's a very good chance ibm, i can't believe i'm saying this, will continue to run into earnings, i think it's 2 1/2

quickly, one of the reasons i think ibm got hit. moirns should have improved this quarter given their businessics in they were down that's disappointing but to answer your question, ibm. >> come out in the conference call and talk a lot about block chain, and that jv with maersk >> i would be a i approximator of ibm boeing has pluses as well. but ibm valuation wise has more upside i think from here on out. >> still ahead, american express thinking after-hours suspending buy backs after taking a tax hit. we will bring you the latest from the call. i'm melissa lee. you are watching cnbc, first in business worldwide >> shot lieu the heart only wreath analysts were so accurate but they aren't. and you won't believe just how off the mark they have been. we'll explain. >>> plus -- >> hey, i'm back >> that's what bitcoin bulls are hoping for the suddenly surging cryptocurrency and a top bitcoin investor says there's something about the bounce that's central signaling more gains the come. he will be here to explain why he will be here to ex

ibm, their results are out >> an exciting quarter for ibm because it's broken its 22-quarter streak ofg revenue. revenue for the fourth quarter coming in at $22.5 billion, that is up 4% surpassing expectations by quite a bit. 22.1 was expected. eps beating by $5.18 $ $5.17 was expected ibm is saying it expects to have revenue growth for all of fiscal year 2018. that may alleviate some concerns among many analysts that this could be a one-time cyclical lift versus a secular inflexion point for the business comparatives says it will be driving the growth, making up 46% of total -- of ibm's total revenue. it was up 17% in the fourth quarter. that's about as high as it's been in a while. the stock is down 2% in after hours. the full year eps coming in at $13.80 that is one cent below the street's expectations. we'll continue to dig through this number. i want to mention there's a $5.5 billion charge not included in adjusted eps that's a charge for tax reform we'll look -- we'll be looking through this some analysts raised concern that tax reform would be a negative for the company we'll be

ibm ending more than a five-year long streak.arter earning sales both coming in above expectations ibm says it took a one-time charge of $5.5 billion as a result of the recent tax reform. here's what sbp martin schroeder told cnbc's jim cramer on "mad money" last night. >> first half to second half which we described back in july kind of played out as we said. that put us on a good base we guidedtowards growing revenue and stable margins when we think about the transformation of ibm i'd say that, yes, now the portfolio is transformed and we've got some momentum going into 2018. >> joining us right now for more on what's been working at big blue is daniel i wves. thanks for being here. >> great to be here. >> do you agree with him, that the turn -- the corner has been turned essentially >> yeah, i'd say partially true. 50% of their business, big data, ai, analytics. i mean, that's grown mid teens that's really been the positive story. the problem is the anchor on the ship the traditional businesses, declining, margins have decline

take the stock of ibm.or years they've been trying to balance out the slow down inity legacy business by bulking up faster-growing businesses. so when they managed to accomplish that, stocks got slammed in afterhours trading. it was up 4% in sectioix years i think the stock upgrade by six points juiced by a couple analysts i got a chance to check in with the former cfo i think we can shed some light on a subject people are taking too lightly. take a look. first, martin, congratulations on your promotion at ibm >> thank you >> is this the quarter that people want the reinvention, they want to get in or should we wait to see about 2018 >> we did just give guidance for us, the quarter played out as we thought it would we did a very strong systems performance. we had a mix that didn't have as much software, but in the bottom line we finished where we wanted and really well in cash. first half to second half which we talked about in july put us on a base. now at the eps line we have some tax headwinds which we'l

what makes you so positive about ibm going forward? >> we're very excited about ibm.t to comment quickly on the move last night, context is important. the move is 10% early this year, compared to the market moving 5% so i sense investors being opportunistic into the news. turnarounds don't happen overnight. what investors should be focusing on with ibm are a couple of things this big shift of what they call strategic imperatives. that's 46% of revenues a lot about cloud, artificial intelligence, blockchain and moving away from the commoditized areas, which this business has been in when we spend a lot of time thinking about future trends, and so much hype about artificial intelligence out there and blockchain out there when you look at real world cham examples, which companies are commercializing, signing agreements, ibm doing a deal with maersk for the port automation, looking at visa sales, we think this really will put the business in a strong position, not necessarily next quarter but on a one to two-year view to see revenue growth and indeed margins movingup quit

derosa has more on ibm's ibm finally breaking its years long streak of declining sales and fuelling optimismor a turn around. it is expecting revenue growth for all of next year perhaps alleviating con this wa a one time lift and not the turn around that the ceo has been working on nearly seven years now. still ibm is a long way from where it was even six years ago when its stock was above $200 and it was the most influential stock in the dow jones industrial index. today it's only the eighth most influentia stock. big blue is making a big bet on next gen rags technology like arti intelligence cloud computing and big data. while its share of total sales has been growing the growth has been choppy andt's uncertain whether it can me up for the slowing legacy busiss. the takeaway, ibm is growing again but the jury is still out on whether it will last. >>> opec is concerned about a flood of new oil from the u.s. the cartel increased its forecast for suppl growth for the second straight month. over the past two years opec has cut production and that has helped ease the ghut. it also caused prices

that's what ibm is >> i get it. ibm has legacy businesses. >> but that's the growth >> the upgrade from rbc, to be fair, cited legacy mainframes which will lead to software and services revenue they said the legacy was a good thing. >> i have not liked ibm for years. collectively we've been right. the last quarter in ibm was shockingly decent. so you have to ask yourself, to bk's point, do people want to sell ibm to january '18 when they report next, with the potential to build upon what was a pretty good quarter? because if they do, instead of being $161 stock, where it currently is, you're probably back to that $182 level. i hear what tim is saying. i'm with bk on this one. >> if you want to go for high quality here, it's a new year, i know people want to try to reinvent themselves. you don't have to necessarily find a new idea. find the ideas that make sense find the companies that have the growth you can make an argument that on a p.e.g. ratio, it's pretty attractive, this is a company trading roughly 40 times,

. >>> and ibm shares under pressure we'll tell you what's dragging big blue into the red. it's friday january 19, 2018 "worldwide exchange" ge begbegiw ♪ >>> good morning welcome to "worldwide exchange." i'm wilfred frost. >> i'm courtney reggen in for sara eisen thanks for having me it's a great day to be on wex on friday >> happy friday to everyone watching our top story, countdown to shutdown lawmakers have under 19 hours to pass a spending bill or else the lights go out in washington. the republican-controlled house okayed a temporary funding measure late last night but now the senate must approve it so far it's unclear whether or not they will. senate democrats are holding their ground demanding an immigration deal they have until midnight tonight. the last time we saw a government shutdown was 2013 it lasted for 16 days. we'll have much more on this developing story coming up >> we'll see how the markets are reacting to the d.c. drama a marginally higher open on wall street, the dow higher by 15 points, the nasdaq higher by 21, and s&p 500 higher by about 4. througho

ibm outperform and nike outperform united health buy. >> yeah. i think one of the more interesting is how short the disney little recommendation is today. i mean, there was almost nothing to it. the fox assets and valuation i own disney and i still don't know if i actually believe in the evaluation prospect of this thing right now. seems a little bit rich quite frankly, but i do think that the fact that they did go out there and got these assets, bid for the assets and actually were selected over somebody who was bidding even more makes it very intriguing to me. >> the narrative is now not all about espn. >> right. >> they have taken the focus a bit off that have. >> at least wall street is trying to do their part as well. >> you're right. >> get investors to show somewhere. >> to show what they are doing for the future the one criticism that i had, only once. was bob eiger going aggressively enough to get themselves into the streaming world, to be able to compete with the netflix and everybody else in that space and now i think he's showing he i

>> it sounded like he was selling to me. >> it sounds like there will be big news about ibm not good >> it sounded like part of that was for taxable reasons, that's not necessarily a bad thing. >> okay. >> secondly, he bought that

a few years later ibm joined the party. apple took out a full page add that said welcome ibm. seriously. the pc was not the most advanced computer out there. it has the very important job of legitimizing personal computers for business. until this time, most businessmen looked at the micro processer based computers like the apple as basically toys suitable for home or educational environment. not for business. it took ibm in 1981 with the pc to finally put a stamp of appro and legitimacy on the pc. you could actually do business type of tasks using an ibm pc. ibm's initial strategy being a pur var of mainframe systems was to protect the mainframe. that's what was generating their billions of dollars in profits. mainframe is a room-sized computer filled with spinning drives and hard drives and people running around. the ibm pc was initially viewed as something that would connect tho those main frames and only later was it something that would standalone and be used by an individual. we're nourp in the networking in the web gallery. what we have is google's first web server. at

no here is what i want to say about ibm. there's a tendency at a time like this to say we have to find the next thing and dig under the rubble dogs are dogs, and ibm has been a proven dog for a long time it's a company that needs to remake itself. it's engineered earnings for a long time. what they're doing in mainframe in terms of infrastructure is very good in terms of infratech. in terms of what they're doing in blockchain, i have no idea. i have to say i'm a little surprised it hasn't gotten more of a bid based on the kodak bid. >> right that's why i think they're not getting enough credit for it what ibm is doing in the blockchain space are what are called private chains, basically like when you had the internet, you had intranets within that doesn't get a high a multiple because it may not be as scaleable as people think that being said, it's not that hard to pivot from a private blockchain to a public blockchain that's what people are missing with ibm >>> our next guest says we might be on track for the greatest bull

ibm has not proved it. that's the issue we'll find out very, very shortly if ibm can actually can be, at least a better competitor, and not necessarily a name, but apple, on the other hand, that's strong as a horse >> tim, do you like apple too, or what about ibm? >> first of all, old tech, new tech, they are probably both very nicely falling in both seats. ibm, strangely enough, they are going into the earnings season thursday, tomorrow, actually with the barreltively high between a couple upgrades and fact of the matter is share prices have been juiced from some association with crypto, whether it's real business for them or not, but the deals from this perspective, claim they are right not min the middle of a platform that's independent. you think of a data center, a major capacity for crypto. they are snot grown in 22 quarters, though, hard to believe it turns around overnight. expectations are reasonably high for the number >> all right >> you got your sights on crypto now, like, oh, gosh. >> ibm >> an

so as you'll recall, watson, which is ibm's a.i.as been a central thrust for the company for the last three or four years more recently, over the last 18 months, ibm has been making significant investments in blockchain both are in investment mode. we don't know, ibm doesn't report, but even watson, which is probably a few hundred million in revenues today, it's unclear that's making money. and blockchain revenues certainly are likely to be in the tens of millions of dollars and be an investment for ibm these are both future initiatives. ibm has done a good job in making investments technically, making investments in terms of marketing and raising awareness, but they're a long ways,efe of them are a long ways of being away from thesis changers for an $88 billion company. >> why do you equate blockchain along the lines with watson and a.i. i'm just curious because it seems like the ability to implement blockchain and capture efficiencies in very inefficient markets is right there for the taking the recent jb with maersk shows you tha

selina: what does this mean for ibm's long-term trajectory?t does it mean in the greater turnaround? >> they need to have a lot of growths with positive rates. in almost every quarter, i would want them to have a slight improvement in the growth rates. ibm is trying to position itself as a cloud company. 7%tware spending is around or 8%, so we still have a long way to go. it has to be a gradual process. is investor outlook right now in terms of the turnaround strategy going on here at large? is their skepticism or hope that this could actually improve? >> i would say the playing field is somewhat even at this point. there have been a lot of skeptics over the last five or seven years, but in the last one year, we have seen a lot of analyst outreach as the growth negativecome back from to around 1%. we have to see whether they can maintain this space. selina: thank you, anurag rana of bloomberg intelligence. now another top story we are watching. amazon has narrowed its field for hq two, the proposed second u.s.uarters in the 20 cities made the

we'll also hear from big blue, otherwise known as ibm the dow stock has been on a tear as it moved into blockchain technology this could be the sleeper pick for next week. why? >> maybe it's associated and two thirds of their sales come from outside the u.s., this dollar, have you seen the dixie, the dollar index, last quarter in q3, october 17th, they put up a quarter that surprised people and stop gap up 9% some of the strategic imperatives and faster growing things like cloud and wattson did better than people expected. the stop gap 9% and gave it back now it's back up above the levels you mingsed blockchain blockchain services and hardware related to it was probably a $700 million business in 2017. some research companies estimate they got 30% by 2022 and some are expecting this to be an $8 billion business and ibm seems well positioned here i don't think you get a whole heck of a lot of answers right now about blockchain and what that means for it. if you get these strategic imperatives doing well for the second quarter in a row, they already have a low tax rate. the new tax reform

it's not ibm see what it is next. plus, sarat releases his performance for 2017 when you see the number, you're going to want to follow his portfolio in 2018. the halftime report with scott wap ner and the traders is back in two minutes iving specific ses of out performance. where a rising middle class powers a booming auto industry. a leap into the digital era draws youthful populations to mobile banking and e-commerce. trade and travel surge between emerging markets. everyday our 1,100 investment professionals a a ner withm, the global investment management businesses of prudential. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. hey, what are you guys doing here? we're voya. we stay with you to and through retirement. so you'll still be here to help me make smart choices? well, with your finances that is. we had nothing to do with that tie. voya. helping you to and throug

what does this mean for ibm's long-term trajectory?ot of need to have a these quarters with positive growth rates, and almost every quarter i want them to have slight improvement in the growth rates. ibmou were to look at it, is trying to position itself as a cloud, software company. we still have a long way to go from a zero to 1% growth rate. it has to be a gradual process. >> what is the investor outlook right now in this turnaround strategy? is there skepticism or hope that this could improve? >> i would say the playing field is somewhat even at this point. drive-in skeptics in the last several years. --have seen analyst upgrade the growth rate has come up from negative 2021%. that is the if they making the space. >> now another top story well watching. amazon has narrowed its field for its proposed second headquarters in the u.s.. 20 cities make the cut, among them new york, chicago, miami, and boston. it is supposed to cost -- and 50,000 jobs. big data to help modern recruiters acquire talent -- so spencer, i want to start with y

>> ibm is old technology. cloud computing, they made some strides but if you look at this earnings report they failed to pick up any momentum this quarter. when you have the first revenue increase in 202 quarters that does not leave me to be very optimistic on ibm. the fact they had a wall on cloud computer concerns me greatly. stuart: newark fabulous. ibm forget it. thank you. now this. a company that is working to fight the opioid crisis created a wearable ultrasound the not only reduces pain but helps heal, they say. the ceo of that company is with us and brother device with him. he will see it. more than 7 million americans with long-term care insurance are seeing major rate increases, details coming up. we are joined by travis allen, one of the republicans running for governor in california. i want to know how he will take on the democrats. we are still waiting for the white house press briefing on the shutdown. i don't want to read too much into it but why is it delayed 40 minutes? we will see. mitch mcc

ibm's revenue rose for the first time and warned that higher tax rate would eat into profits, ibm sharesed 10% on hopes of turnaround for the company sell more than 3% after the closing bell. meanwhile shares of american express fell nearly 3% in extended trading, the company reported first quarterly lose in 26 years because of $2.4 billion charge relate today tax reform and said it will halt its share buyback program for the first half of the year. >> which we heard from many companies about fourth quarter issues, maybe the stock may level out a little bit. >> we will see. cheryl: amazon another stock to watch, they put out short list of potential headquarters, what do we have? >> the list is hot, amazon has narrowed it down from 20 cities from 238, big cities like new york, boston and chicago, toronto, the only nonu.s. city on the list and surprise candidates like columbus, ohio and indianapolis, amazon said that it would work with candidate locations to examine proposals more closely and evaluate feasibility of a future partnership. amazon plans to decide on a city this year. lauren:

ibm only has private cloud business services i believe that's holding them back ibm has better encryptionives them a real edge when it comes to cyber security and it's a good celling point if you ask me ibm has reinvented itself many times in the long history. i'll bet they'll do it again, we just don't know how long it will take and they're not doing it fast enough for many portfolio managers including warren buffett who has been jettisoning the stock in spectacular fashion. the stock can hunt at 3.5% yield for protection, i think ibm is a buy. finally, last and sadly, really least, is general electric it's down 45% last year. yeah, you heard me, 45 it takes a special kind of industrial to lose that much value during the best economy in ages first, let's be clear. ge refuses to be introspective about what went wrong. that's a bummer and i hope the new ceo explains why the company couldn't earn the two bucks this year that it forecasted at the end of 2016. if he walks us through it and takes the big writedown we've all been expecting i think we'll be greeted positively, but tough thing fo

. >>> ibm singing the blues, down 4% despite earn agency beef last night. >>> plus, got a question ofourse you do send us a tweet to @"options action." if it's nice, we will wreath if it's nice, we will wreath read it later in the show. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, much that's lesson one. education to take your trading to the next level. only with td ameritrade. after this you know what's awesome? gig-speed internet. you know what's not awesome? when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids, and these guys, him, ah. oh hello. that lady, these houses! yes, yes and yes. and don't forget about them. uh huh, sure. still yes! xfinity delivers gig speed to more homes than anyone. now you can get it, too. welcome to the party. i'm not really a, i thought wall street guy.ns. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey,

ibm always manages over the long-term.t is going to free up our capitol so we can invest on par with our competitor. >> jim, you tweeted last night wait until you hear the interview because you could get hurt and it ended up being good advice >> yes i don't want to call hit belligerent but it is consistent where is this 40 cents going come from or is it going get to the level without a gross margin improvement? i did want people to wait for the interview. could not trade the 13 at earnings i think revenue is going to be up it is an in expensive story. it is a working process. >> you are not concern, i guess the quarter as well was aided by the lower tax rate than had been anticipated. >> yes, there is gross margin and i did not like of lower expenditure and they shipped the frame and almost every airline uses she's saying ibm is apart of the mix when she does her survey of chief investment ibm, a lot of peel feel struggling for relevance in a world of silicon valley. they don't use block chain they don't play the block cha

. >>> ibm singing the blues, down 4% despite earn agency beef last night. >>> plus, got a question ofourse you do send us a tweet to @"options action." if it's nice, we will wreath if it's nice, we will wreath read it later in the show. much more "options action" right after this traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum -- just to help you improve your skills. boom! that's lesson one. education to take your trading to the next level. only with td ameritrade. we rbut we are not victims.ack. we are survivors. we are survivors. we are survivors. and now we take brilinta. for people who've been hospitalized for a heart attack. we take brilinta with a baby aspirin. no more than one hundred milligrams... ...as it affects how well brilinta works. brilinta helps keep platelets from sticking together and forming a clot. in a clinical study brilinta worked better than plavix®. brilinta reduced the chance of another heart attack. or dying from one. don't stop taking brilinta without talkin

somebody that's very similar to ripple that has a deal with ibm. and i can get bigger margins or at least i can make more money like moneygram wants to do and the partnership with ibm, that's very important here we talked about how ibm doesn't get enough credit for what they're doing. now let's look at the chart. let's look at what's going on here okay so stellar, here you go. you have this big, big run that's all on the ibm news boom, we're down here. it's trading at about 55 to 60 cents or so. i think you get another jump up there as more news starts to come out and more people start to look to use this technology >> hi, bk. >> hi. >> question for you. how big is the market cap of stellar right now relative, and where do you think those would potentially converge or what do you think the future upside could be >> yeah, well, so the market cap on all of these things are somewhat outrageous. and by that i mean outrageous when it comes to stock parameters we're talking about currencies here so they can grow to the size that they need to grow ripple

ibm i think you want to make a bullish bet.i think you want to define your risk, so february call spreads >> our time expired. i'm melissa lee. check out the website for more option action. "mad money" is up next - [narrator] the following is a paid advertisement for the 3 week yoga retreat. brought to you by beachbody. - are you a woman of a certain age? if you are, pull up a chair and sit with me, because this is for you. i'm leeza gibbons and it was a big year for me, i turned 60, and i'm all about aging gracefully with empowerment, and all of that, but let's be real, there are some parts about getting older that are just hard. - all the symptoms of menopause from a to z, i have them. - my body is changing. - i'm not as flexible as i used to be. - i'm anxious, i don't sleep.

you could have said valuation at any point in time for ibm. they've always been a serial buyback in terms of the stock. what is interesting is they talk about the hybrid cloud, all kinds of different things. >> this is the rbc today >> in terms of ibm to guy's point, valuation, very cheap. they actually have growth. that's the difference between the two. if you say, would you rather, i would definitely say micron. i own both but micron is the better name. >> good for guy, who has been talking about micron for a long time if you look at the numbers they just gave us, they had a chance to give people fresh data points they talked about the pricing guy referred to. their business looks absolutely fine calling these guys the underdogs, i'm going to play some rope-a-dope here. >> i don't even know what that is it's down 10%. oh, i see what you're saying >> my point is if you look at how the market has responded, yes, we had seen the rotation into some value and some industrials. what's gotten out of the gates has been high cyclicality, high momentu

liz: warren buffett famously sold a third of his ibm shares in november. smarter than you or has he some very bad timing here? >> he is very much smarter than i am, however -- liz: don't sell your short, chris. >> warren buffett, he doesn't publish his performance numbers unlike us mortals in the investment business who live and die bit. we have a different standard. liz: tell me what do you think overall, we'll continue to drive the market, if at same pace or more quickly than what we saw in 2017? we have gotten off to a roaring start for the first three sessions of 2018? >> the one caution would be it is going to be back and forth between a more, fed that actually is more bullish, and, the earnings. and if you have a fed that is, raises three or four times i think it will be a war between the two. and certainly my view is that the earnings will win. we should be up nine to 10%. i think we could do maybe 140 on the s&p for earnings. so that calculates out to somewhere around the, you know, 3,000 on that and 27,000 five on the dow. liz: interestingly we bl

turn it over to ibm. ibm, the story there was really to watch for the revenues. so after-hours, ibm is down 1.7%, dow component. these earnings are weighing on this stock after hours, looking at the big picture here, on the earnings per share, 5.18. bp s5 .17. estimate, 22.06. so a beat there. it is year over year numbers we're also watching. we haven't seen ibm's year-over-years exceeding cloud revenues. it is all about cloud computing. revenues increased there 30%, to $5.5 billion. 52 weeks, ibm is pretty flat. it is about 1% gain for the stock. so if you own this particular tech stock, unlike some other great ones of 2017 you sort of missed out on a great rally. it has been relatively flat. it is down 1.8% right now. american express, dow component. back to you. david: expectations are high. thank you, nicole. melissa. melissa: clock it ticking on republicans voting on short-term spending bill to avoid a government smutdown. blake burman is here with the latest on it. blake? reporter: couple different messages on air force one that president was heading to pen

. >> yes, that's good because you've got to have both sales -- ibm, everyone is a sales person because you're selling big cap stock. so good for martin i am congratulating him. >> let's get to the opening bell and s&p, at the big board, bdx capital and at the that is gac u.n. secretary general of human rights promoting the u.n.'s new global lgbti equality standards for business there's going to be a lot to watch here we mentioned facebook. some of the rebalancing we're going to see this year on tech as they combine these high flying faang names with more traditional telecom names. >> when you look at verizon, last few weeks was good but the at&t run, none

ibm, oracle. >> ibm is leading the dow up almost 2%, ge is up a full%. >> ge? allowed to go up that's interesting. >> your point about the south side research, this is their moment, i guess. >> ibm, main frame performance and adopting the hybrid cloud environment, that's all from the note and i come back and say, okay, what's -- this is what's going to happen. what is still down that i can buy? it's interesting united technologies is not down but relatively it's down relatively something is down that's a -- you can get caught up in that game. >> yeah, i saw this yesterday nearly half of the s&p are within 5% of their 52-week high. >> that's unbelievable. >> but there's still a lot 20% away and a lot remain oil -- >> yeah, and those are -- look, oil is very tough situation because a lot of these guys have sold forward you can't -- we need growth may not have the growth. i do think at a certain point we're going to say -- people are going to say how much more can i keep paying for united technologies and some of the stocks that have already run i'm thinking in th

roma teague to namejust a bird and ibm's ginny roma teague to name just a few. equality is a big theme this year. 0nly dealmaking, gender equality is a big theme this year. only 21% of davos delegates are women. there are high profile campaigns under way notjust to tackle sexual harassment in the workplace but also to bring an end to unfair pay. davos is often criticised as being a talking shop for the world's elite, so the big question is, can it bring about any lasting change? as sally mentioned in that report from asia, the highest profile attendee is narendra modi, the indian prime minister, it's his first time at the elite gathering and the first visit by an indian leader in more than two decades. for more on what india will look to get out of this summit i am joined from them by by our business reporter. what is mr modi expected to say in this world economic forum? well, rico, before leaving yesterday on monday, prime minister and the renderer modi said he wanted to share his vision to the international community for india's position, india's ability to do

banks will dominate, but we'll also hear from big blue, otherwise known as ibm the dow stock has been on a tear this year as it moved into blockchain technology. dan says this could be the sleeper pick for next week >> this is a massively underperforming last year, one of the worst performing stocks in the dow some of the early year performance, maybe it's associated to a dog to the dow obviously two-thirds of their sales come from outside the u.s. this dollar, you've seen the dixie, the dollar index, it's making multimonth lows here. last quarter, in q3, october 17th, they put up a quarter that surprised people the stock gapped up 9% some of the faster growing things like cloud and watson did better than people expected. the stock went up, gave it all back, and is now up above those levels you mentioned blockchain blockchain services and some hardware related to it was probably a $700 million business in 2017. some research companies estimate these guys got 30% of it by 2022. some research companies are expecting this to be almost an $8 billion business. ibm seems well positioned her

the ibm cloud. the cloud for smarter business. the♪ibm cloud.aning floors with a mop and bucket is a hassle, meaning you probably don't clean as often as you'd like. for a quick and convenient clean, try swiffer wetjet. there's no heavy bucket, or mop to wring out, because the absorb and lock technology traps dirt and liquid inside the pad. it's safe to use on all finished surfaces tile, laminate and hardwood. and it prevents streaks and hazing better than a micro fiber strip mop, giving you a thorough clean the first time. for a convenient clean, try swiffer wetjet with a money back guarantee. brand power. helping you buy better. >>> welcome back to "worldwide exchange." futures pointing higher after a two-day selloff. down 1.4% on the dow yesterday but expected to open higher by 74 points this morning let's bring in lindsay piezza. let's start with the state of the union. reaction to that we got some numbers on infrastructure, many comments on the economy. what was your take on topics like that, economy-focused >> i think the president remains

. >> that looks pretty good, too >> still ahead, ibm singing the blues. the stock down 4% today despite an earnings beat last night. is there any hope for a turnaround in sight. plus, got a question of course, you do. send us a tweet to @optionsaction. much more "options action" right after this two,that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum -- just to help you improve your skills. boom! that's lesson one. education to take your trading to the next level. only with td ameritrade. moderate to severe rheumatoid arthritis was intense. my mom's pain from i wondered if she could do the stuff she does for us which is kinda, a lot. and if that pain could mean something worse. joint pain could mean joint damage. enbrel helps relieve joint pain, and helps stop further damage enbrel may lower your ability to fight infecti

david: let's talk about ibm for a moment. ginni: we are the champions for business. are meeting with president trump or other presidents, do you see that ceos are willing to say, mr. president, that is not a good idea? ginni: my experience is people are respectfully honest and give their opinions. david: do you feel a certain responsibility? ginni: women do need role models. we are still a small minority that run these companies. david: in the stay fit category. ginni: i do box with a person. the difference is he does not get to hit me. [laughter] >> would you fix your tie, please? david: people wouldn't recognize me if my tie was fixed, but ok. just leave it this way. alright.

ibm is a loser. amex was the second biggest loser reporting its first quarterly loss in 25 years due to a $2.6 billion charge related to the new tax law changes. it's down to the quarter-point spread that charge also caused the company to hold share buyback program in order to rebuild capital lost. we are watching american expens express. it's about $97. call this what you want, but the schumer shut down as republicans have in their talking points and what they're calling it is the white house labeling the looming shutdown pinning it directly on the senate minority leader. he left the white house after meeting with president trump around 2:30 p.m. eastern. he did make those comments regarding the meeting to our cameras which we will play for you in a second. the omb director, office of management and budget, before that blasted the democrats accusing them of holding the government hostage over the dreamers saying there's absolutely no reason we need to include immigration reform in the short-term spe