see you in a few moments. >>> chip makers ibm and intel are both expected to report their earnings this week. both companies are in a state of transition focusing more on data centers and transitioning to the cloud but how will the slow demand for computer chip business affect earnings? dan morgan is a portfolio manager. his firm owns shares of both ibm and intel. appreciate you joining us. what's going to be a very busy week. let's start with ibm. this is a company in the middle of a multi-year transition that has to answer to investors on a quarterly basis. i'm wondering what you think investors will hear tonight. >> well, you're right. ibm is definitely in transition. everyone is going to be looking for evidence that this transition is in process. last quarter, their software revenue was a little bit weak and software encompasses about 40% of what they call their strategic imperatives. obviously we would like to see some improvement in the software group going into the quarter, and you know, right now, we are looking at 50% projected in terms of total revenues coming from this strate

ibm and intel could see a move of 5% in either direction. at's more than their average of around 3.5%. and then there's yahoo looking at a more than 6% rally or decline. the company usually moves around 5%. last is microsoft looking at a 5% move in either direction. higher than its average of under 4.5%. melissa, if all these moves were to pan out, that would represent a nearly $40 billion move in market cap. so some big moves potentially next week. melissa? >> thank you, seema and the chart master says one of those stocks could be poised to break out. carter what are you looking at? >> it's microsoft. the last two quarters it's moved that much. it's been about 5% and they have both been up so we'll look at that in a little bit. i wanted to look at the long-term chart of microsoft just to set up the story here. so, you know, this is pretty clear stuff. the all-time peak, the nasdaq bubble, and a whole lot of ways to time. now we recovered to it. 59.97 on december 30th, 1999, here's your line. right? so we will play for a move to the prior pea

and old tech is an interesting example. it's not perceived the same way in terms of safety. intel, ibm cisco have all yielded. >> that's interesting, people say, i thought i was getting a 3% yield. we have todd morgan from bel aire investment advisers. rick santelli joins us out of chicago over at the cme. welcome, everybody. todd, first to you, for a lot of people counting on this safe part of the market dividend players. what are you recommending here. >> well, i think the dividends have been terrific, giving people a handsome return so far this year. there's rotation now going into financials and going into energy because of the surprise move in energy. i've got an old saying that the market will do whatever it can do prove people wrong. in january and february the markets went straight down. subsequently, the markets are going straight up in the face of this. i think part of the reason is there's so much cash on the sidelines. many of my contemporaries, money managers have sent an enormous amount of cashing and they're waiting for the market to correct. obviously, every buy becomes

here's ibm and intel. ottom line, they both ended up at the same point, with managers that are not only -- it's not just underperforming and coming back, but this performance around creative destruction goes to the idea that there is too much stuff out there. are we in an age of oversupply? >> we are in an age of oversupply, and we are moving very fast. this is the pc market. know that i have more phones and tablets and internet connected devices on the go and sitting at a pc isn't the thing anymore. if you want to technological company, you have to keep on reinventing the standard product. there is an oversupply, in the price comes down all the time. if you want to buy a computer that does 20 times more than what it did five years ago, it's almost free, and that's a problem. francine: right. and i understand that this is a barometer, but i would push back against what a lot of economists you look at intel and it tells you the state of the world. clearly intel has a personal computer problem. 50% of its sal

and microsoft today. for the most part, they were hanging in there. there were a lot of disappointments. ibm, intel. ese two guys. and to me, if you look to next week, tuesday and wednesday. we have $1 trillion or close to it between apple and facebook reporting again. apple, i don't think are particularly high. i don't think the stock is going to move a heck of a lot one way or another, unless there is a meaningful downgrade. facebook, that stock rallied in january when they beat on the floor. and that's one that people want to keep in there. in the game here. >> apple is getting into the drifting around aimless levels that we've seen historically. one of the things that keeps it from the bottom falling out. you have ten-times earnings. you have a situation like that. there's not much that can happen to it at this point. a small pullback. facebook, if something bad came out of that, you could see a sharp move. >> that's at the prior peak. you're looking at the trade. we know it was a friday. >> which has failed. >> the qqq. they've gotten back to difficult levels and have backed away. the issue here

run can continue and, in part, that's going to depend on next week's earnings starting with ibm and then intelsoft and alphabet. market strategists say a few big themes are going to define the sector's performance. currency head winds could be a factor. >> the fact that analysts have marked expectations on the companies so heavy after the last earnings season has come back to benefit them now because the dollar has actually fallen so much since the last earnings season. so i do think that the dollar is going to play a heavy part in tech earnings and i would expect that to be a big part of the announcements coming out of the sector in the next several weeks. >> now to adam's point the u.s. dollar index, the measure of the dollar versus a basket of foreign currencies is down about 4% year to date. also china will once again be critical for u.s. tech firms. remember last quarter a number of companies from apple to intel sounded more cautious about the chinese markets so will we hear that same caution again this quarter. and forecast to generate earnings growth of more than 4% what they think the

we'll have instant analysis of results of netflix and ibm and intel as well. of that right here on "the closing bell." but not every insurance company understands the life behind it. for those who've served and the families that have supported them, we offer our best service in return. usaa. we know what it means to serve. get an insurance quote and see why 92% of our members plan to stay for life. >>> welcome back. is the tech story over? that's what the ceo and editor-in-chief of newco says on his latest piece on medium saying technology as a central narrative of change is over and that business now needs to take the lead. john joins us now with more. so curious about what you're deeply implying here, john. i almost can't, you know, separate out tech from business, from capitalism, from all these different things, but you're signature out there in the middle of all of this so how is the world changing as you see it? >> well, i think we for the last 10 or 15 years have really made technology the driving story behind our understanding not only of business but a

and run over in the shorts. if you were short ibm, great call. short intel, great fundamental, and poor stock call. but it doesn't always pay to be long. >> when you are looking at the intels and the ibms of the world, and see these sell-offs as great values or simply value traps in the dynamic of the weakening dollar which is going to hepp the tech earnings because of the amount of revenues they get overseas. >> yes, in intel's case, i don't know fi look if i am look ing a ibm and it is declining quarters of the revenues, and that transition is taking far too long, scott, and in the case of intel, it is not a now story, but further out as well. when i look at the names in the transition, and they are doing everything right, it is microsoft, and cisco, and why i own cisco as a stock. i don't just own the calls, but the stock. i plan on owning it for a long period of time, and back to energy for one second, an even when the oil is down, and sit down decent in the morning, and long before the opening bell, it is down, and the xle once we get the day going, it is barely down at all, scott, and when you

the president of intel earlier in the year brian krzanich and i'm not sure if you are concerned about the numbers with the cloud landscape, and as much as you are about the enterprise as ibmas talking about it, and intel talking about it of how much it will change the overall feeling and environment of how much we expect the enterprises to spend on technology. >> >> kara, your thoughts of that since we are hearing from microsoft that cloud is at a $10 billion run revenue annually? >> well, it is obviously the future, and the question is that there is a big transition going on in the enterprise spending and where it is going, and obviously, microsoft is a big player here, and they have made the ag grgressive and important moves into the cloud. but that run rate was fantastic and impressive, but it is a harder go, and lot more players, and as jon said, you saw the questions from intel and other companies in the space, ibm, and a lot of the companies are sort of re-evaluating how they move, you know, in the spending going in the enterprise space, but microsoft is making the moves a waway from the pcs to the enterprise and cloud. and so i think that it is a surprise, especial

ibm on monday and intel on tuesday. if those things start to fail then you can start connecting the dots as b.k. said. >> we're about 2.5% off the all-time highs on the s&p and the cows. gone through a week where financials came out as the best performing sector this week even though earnings were not in any way spotless, problems with every single earnings report that came out so does this set us up poorly in a way? >> think about what we have to deal with, this weekend. doha and imf world bank meetings, impeachment vote in brazil, rumors of a china policy statement that supported chinese shares this week despite the fact that data was bert out of china. yeah, it's not crazy to think markets could be pulling back next week. got an ecb meeting for a market that's is having to have some positive suppression in the ecb and the fed the following week which you really should be preparing for. as i said, even though they are not going to go, not sure they will go in june. you don't have less fed going forward. you have more

and so obviously we have the two big ones today. we had ibm, intel. there was visa in there. and also verizon, which had a sharp move. one of the reasons this year i've stayed away from trading the xlk, because at&t and verizon are two large holders and thought to be somewhat defensive. but now i think the timing is really interesting to look at the xlk, because next week, we have two stocks that make up about 25% of the weight of this thing. they both disappoint expectations and they both trade lower. they don't even have to trade as badly as microsoft and google did, and the trend is probably broken. the xlk in particular, i think we have a one-year chart here. they couldn't break out at those prior highs from november and december. it just failed. it got down here. the trade i'm looking to do next week, apple's tuesday night. don't do this monday morning. i didn't press it today when the xlk was down. i want to see a little bit of lift on monday or tuesday. so before apple, if you think it can retrace a bit of the 200 moving average, about $42 here, i want to look out to se

ibm and intel. that is not tech. that is not mobile. when cramer said -- netflix. disappointed. >> -- tech. >> it's old. >> call it whatever you want. it's the old guard. they were watching this and wrote the story based on our discussion i think. although print people they don't respect us i think. >> they probably don't watch us. when i worked at the wall street journal it was like an issue to get into the office by 10:00. >> several stock movers up --. american express moving higher after reporting first quarter earnings that topped expectations. now this is a dow component. that is a dow component. the others, i don't know. the credit card company benefitting from strong net interest income. customer spending and fees with card member spending up 6% for the quarter. can it be an american express card on the phone when you are paying? they could transition to the new world. >> they are on my phone already. >> so they will do that. can't you cut them out the middle men? >> there's got to be someone who's processing the middle man. >> yeah right here. >> well you d

. >> and is some of the stocks have been quiet havens for the yield, and you tweeted this morning about the intel, cisco, and ibmtocks are yielding more than the ten-year bonds right now, and you did ask whether the tech cigar butts can continue to burn. >> more than than oir own bonds, because intel debt is more than the 10-year yields now, and this is upside down, and cisco and ibm as well. and so does the bond market have a right to think that the companies are there forever and financial flush or is the stock market not willing to make that bet? it is interesting, because you have investors willing to pay up for other yield stock, and look at coca-cola here today down 4%, showing you that people thought that they were buying the pure yield vehicle, and then an okay market, and the people will take 4% out of it in a hur ru, and this is by the way more than one year's worth of dividends. >> and you look at ibm, and they are cutting overseas so that is going to help the bottom line, and maybe the investors will forgive a lack of revenue growth, and the same with intel growth, and intel is up today on the news t

doors off, facebook blow the doors off and coming off a week where microsoft disappointed and intel disappointing, ibminti disappointing. >> linkedin does not save the market and amazon didn't last year. amazon trades at 120 times and not growing fast enough for that. >> amazon did save the market last year. >> wasn't amazon 50%? >> yeah, amazon, netflix, the market was flat every other stock. >> you talk about this -- >> you ever traded a fang. >> last time -- >> it's a market -- [ laughter ] >> yesterday. >> agree. >> but i ultimately to me if the message is the same that a hand full of stocks are the ones that are driving on the headline and getting people excited when in fact, a lot of other stocks are not performing. that's not going to save. linkedin, expectations so poor, a beat here doesn't get you excited. expedia doing well. the margins can protect margins. there are places where i think you can actually look at earnings and say nothing is happened in terms of a change in theme. i'll put it this way over the last couple days we haven't seen for the last three weeks. >> i'll add amazon expect

, intel, and ibm facing and financial challenges, but up next, more traffic at the intersection of government markets headlined argentina's blockbuster sales. ♪ ♪ erik: this is "bloomberg best." i'm erik schatzker. we dug into the details of the bond sale and its implications going forward. after sitting on the sidelines for more than a decade, argentina is back in the global bond market in a really big way. the company boosted its bond sales to $60.5 billion. it marks the end of its status after it defaulted on $95 billion in debt back in 2001. they are selling more than they expected. >> absolutely. on the street, you are hearing the subscription for the bonds were five times oversubscribed, which is a lot. the majority of this money will go to regain the holdout. l.a. to and others who have held bonds from the last 15 years and have been waiting from a payday billion goes to them. of this 15 the cost your global isolation? minister, when he was in washington, was saying the whole mess has cost the country $120 billion. it is not just about, we have not tapped markets. the policy measures t

and interplay with each other. >> do you see more cuts coming? in tech, ibm talked about making cuts overseas, and intely, and have you made all of the cuts that you believe you need to take? >> well, we took john f kennedy's quote that the best time to fix the roof is when the sun is shining. so we did that so that when our financial products will help to put some money in your pocket when the times are tough, so no, we don't see any more divestitures. >> and i had asked you privately when we met about the zenefits, and how is the environment right now, and might you make more acquisitions give n the divestitures? >> well, right now, the market is very vibrant, and trying to solve important products with new techniques, and whether this comes from another competitor that we have known or someone that we have never met before, we allow the platform the work with our products just as our own would. if they become a viable entity we will invite them into the family to result in an acquisition. >> and tell me about the mobile, how many people are getting value out of the the mobile, and more phones than ip

and whether that's going to stay the case. >> if you look at stocks like that, maybe people were buying the intels and ibms, maybe because of what you said but also because of moves in the dollar and a hunt for yield and even whether the recent move in the ten-year will upset those kinds of trades down the road. >> you know, it could mean certainly intel is one that has got a dividend yield that is exciting to many. but 3%, 3.5%, not as high yielding as some utilities or consumer staple stocks we have been talking about so much. the dollar has been a backdrop for the last 18 months. that's going to continue to hit not just the tech sector but basically anything that has an export quotient to it. certainly that includes cyclicals, manufacturing, transports, et cetera. to me, at least, this is more about value starting to outperform and it does have about three percentage points large cap value of year-to-date outperformance versus large cap growth. >> if you are looking for apple to be the savior of tech, what would give you any confidence this is the quarter, the past one, that's going to deliver? we know iphones are slowin

we've hard already from ibm, intel, and they're basically telling you that the old gart is struggling>> i've just seen the google release, but a key question, because of that from microsoft, we had intel's ceo tell you the enterprise overall looked kind of weak, part of it was because of gdp concerns, and part of that was because of a ship to cloud. you hope more of those enterprise customers shifted to azure and office 365. they didn't get hit as heart. >> want to point to what's on the screen there, google, the ticker, alphabet the name. they were looking for possibly a $23 move on either side. this is more in the range of about 40. the eps looks like a miss, but we want to make sure it's apples to apples before we get the the full details. josh limit ton, as he pores through the numbers for us on alphabet. >> those numbers are just out alphabet reporting 750. the street was looking for an eps of 797, and revenue likely 24.96. analysts were looking for -- google's segment revenue at 20.1 billion. other bets revenue, so everything from nets to fiber, aggregate paid clicks up 29%, cos

, intel, and ibm facing strategic and financial challenges. but up next, more traffic at the intersection of government and markets headlined by argentina's blockbuster bond sales. ♪ erik: this is "bloomberg best." i'm erik schatzker. on tuesday, argentina returned to global credit markets in a big way, selling more than $16 billion of bonds, the biggest one-day issuance on record for a developing nation. we dug into the details of the sale and its implications going forward. betty: after sitting on the sidelines for more than a decade, argentina is back in the global bond market in a really big way. the company boosted its planned bond sale to $16.5 billion. it marks the end of its status after it defaulted on $95 billion in debt back in 2001. they are selling more than they expected. >> absolutely. on the street, you are hearing that the subscription for the bonds were five times oversubscribed, which is a lot. of course, the majority of this money is going to go towards repaying the holdouts, those who have helped bonds for the last 15 year

in terms of market cap at its current levels, apple is bigger than intel, ibm, cisco, and adobe combined. as for how products have changed over the years, take a look at how the personal computer has transformed from the apple i to today's mac book air. remember, of course, ipods having all of your music in your pocket was all the rage. now you can basically do anything on your iphone. the first edition was released in 2007. look how far it has come. we've all got one. >> not everybody. a lot of people still have samsungs. >> i mean, 40 years. what an amazing history. >>> still to come on the show, donald trump is struggling, perhaps, to regain footing in the gop race after a stumble this week. will it cloud his path to the nomination? we've got the latest from washington. but first, let's get to today's national weather forecast from the weather channel's jen carfagno. >> sara and wilfred, we finally made it to friday. we've got a strong front continuing to cross the country. heading over to the east coast today, bringing showers, thunderstorms to new york city, possible severe weather

the tech sector up by a half percent for the year and will be a focus for traders in the coming days. next week, ibm, intelctor earnings expected to show a 5.5% decline, sara, from the same time last year. >>> the yen is weakening for a change. let's get over to rick santelli with the santelli exchange. good morning, rick. >> good morning, sara. indeed, special guest this morning, the new case for gold, we have the author, author of many books this one not only a good read, it's an easy read and an enlightening read. jim, thanks for taking the time this tuesday morning. >> good to be with you, rick. >> early in the book you say gold is not a commodity. gold is an investment. gold is not paper. i ask you, what is gold? >> it's very simple. gold is money. you know, one of the criticisms of gold, you hear from warren buffett, gold has no yield. it's not supposed to have yield. reach in your wallet, take out a dollar bill, hold it up. what's the yield? zero. people say i can put it in the bank and get some yield, now it's not money anymore anymore. money market funds can suspend redemption like a hedge fund, i

look at three names, when was the last time you heard anything about ibm, intel, and cisco?y not the forgotten high-tech companies of yesteryear, so to speak? we've forgotten about them. >> yes, we have, they're depending on their legacy business, they're trying to move into data, cloud and security. they're not getting a lot of traction. stuart: they don't move. they don't move and they're reliant on using their balance sheets to buy back stocks. they need to transition into the spaces. stuart: i remember ibm in the '80s, '90s, not so much the early part of the century, way back when ibm was the king of the hill. >> it's a blue stock dynamic when we hahad the dot-com crash before it makes everything seem so weak. people can still look at the great entities if they canan adapt. like facebook is adapting. can they adapt to the ne world. >> they have a terrible revevene problem and keep declining and declining on revenues. forgotten tech? i like that heaeadline. shall we say-- making the running, amazon, apple, netflix. they're up today. amazon is close to 600 bucks again and

. >> some of the themes you picked up on there and you mentioned specifically intel and microsoft, ibmt is these big cap tech stocks are transitioning themselves. and the new faster, sexier growing businesses like cloud and serve just aren't getting there fast enough to offset the weakness in pc. so what as an investor do you do? do you have to have a longer time horizon with these stocks? >> we do tend to take a longer time horizon. drilling in on specifically microsoft as one you mentioned has this transition ongoing. so it's not as obvious and easy to get one's arms around as is amazon web services, which basically entered the technology business as a cloud company. so microsoft has this massive premise software business that will over time transition to cloud. for me and to us what the most important question is is whether that transition will be successful. there are a lot of tactical things that go around it, but i think microsoft is giving a lot of reasons to believe it will succeed in that transition and will make microsoft a more valuable business and good stock from these lev

and ramy inocencio. what are you watching? >> looking at microsoft, the share prices are down 1.5% in after-hours trading before we get the data tomorrow. the story we are talking about, like ibm or intel, is out with the old and in with the new. from the reliance on personal computers to the internet of things. at least with microsoft, the cloud. the pc market in the first quarter fell 9.6%. if you are putting your chips in one sector, you do not want to put it in the pc market. adjusted eps is expected at $.64. what you alluded to is eps estimates beat in 10 of the last 12 quarters. it will be interesting to see if it holds on for the next quarter. a couple analysts came out with strong recommendations. bmo saying they should not have trouble meeting third-quarter estimates on strength from azure. other saying microsoft is a buy as they make progress on the cloud transition. upbeat potential earnings forecasts for microsoft. looking ahead, we will see what we have 24 hours from now. emily: alphabet as well. we were talking about the android investigation out of europe. are we expecting any more information from google about the case? >> it is unlikely we will get more information on

ibm is also down after-hours. tuesday, we will hear from yahoo! and intel. thursday we have microsoft and alphabet. it for this edition of "bloomberg west." we are focused on the workforce with alec ross. ♪ announcer: imagine having skin that looks this beautiful, this flawless, without having to wear foundation. imagine a product that covers everything, but looks and feels like you are wearing nothing. imagine one product that is clinically shown to make your skin younger looking in just 10 days. and can make you l

sense when a number of tech giants report financial results next week that includes ibm, intel, yahoo! microsoft and alphabet. in q1 tech companies are expected to see earnings drop about 7% versus a drop of 9% for the markets. so less bad. on the other happened, revenue is expected to fall 5% and that would be worse in the overall market. tech analysts get more optimistic in the back half of the year, which is why full year estimates look stronger for the sector as a whole. one big theme this earnings season will be currency, where a weakened dollar could give big cap tech a boost. >> now that that's the currencies have clearly turned and you're seeing a moderation in the dollar, absolutely that's the benefit for large cap tech that generates so much of its profits in revenue from outside the u.s. >> also investors want to see how f.a.n.g. performs, facebook, amazon, netflix and google. so far this year the lager in that group is amazon where we know investors were concerned about the online retailers disappointing q4 results and increasing competition in the cloud. more of that competition coming

, if intel is trying to pivot, is it too late for qualcomm and what are the earnings going to be tomorrow. i would be more scared for qualcomm tomorrow. >> the pivoters, the intels, microsofts, ibms microsoft understood what they needed to do. that's why he was the right person to put in that role. because he understood the process and he was coming from the cloud. i say the same thing and we brought it up today on the halftime, cisco, i love what robbins is doing that, and that's happening even faster. i like the pace they're moving as well. >> he's probably taking share from juniper. >> absolutely no doubt. i think they're gaining share. i think the problem for intel is they are still strapped for the latent business. they have to get the transition, the whole thing has to happen faster. the internet thing is going to be huge. a lot of that is tied to the -- >> i think they're doing it. i think, again, data center is growing -- >> intel is doing it? >> not fast enough. >> well, it's a major turn. and these are people -- intel was going to miss mobile, too. they slowly remade their business. pc will be worse than we thought. so we thought we were down 11%. probably going to be h

. >> tomorrow morning we get goldman in the afternoon, intel and yahoo!. do you think ibml set the tone or is it company specific? >> i think it's very company specific. i don't expect intel to be any better. they have their own internal struggles too. >>> that does it for us today. thank you so much. "fast money" begins right now. >>> "fast money" starts right now. live from the nasdaq market site overlooking times square. tim, steve, dan and guy, tonight on fast. after-hours, netflix and ibm falling on earnings. those calls are now under way. we have full team coverage throughout the hour tonight. we'll also get reaction from the co-founder of that company. plus, stocks may have hit year-to-date highs today, but one trader seeing an eerily similarity to 2008. and later, the world's biggest oil producers can't agree on a cut. why did crude rally so far off the

ibm is also done after-hours. -- down after-hours. tuesday, we will hear from yahoo! and intel. have microsoft and alphabet. that does it for this edition of "bloomberg west." we are focused on the workforce with alex roth. ♪ charlie: every presidential candidate was in new york this week and the democrats faced off for a fiery final debate in the brooklyn navy yard. all of this comes days before the crucial tuesday primaries. for more, we turn to major garrett, he has been covering the republican primaries. i am pleased to have him here and we will talk about where we are. new york is crucial? >> new york is important. it will be a place for donald trump to reset.

and 4 million in china. it's current levels apple bigger than intel, ibm, isis corks qualcomm and adobe and yes that's combineded over the years. take a look how the personal computer has transformed from the apple 1 to today's macbook air. you can basically do everything on your iphone. the first edition was released in 2007. that company could have been owned by ge. we found out yesterday -- >> that was at a different time. wouldn't have been this because it was before jobs came back. different scenario. >> we could have bought it. >> andrew couldn't have because he's younger than apple. >> true. a little bit. one year younger. >> my professor when i was in grad school bought, i think 1978 and he bought, that was an apple 1 or 2. all i knew how to do was play this really cool game. >> wozniak edition. it had his signature on it. >> it is an antique. >> as a child. >> this is the final countdown. but investing isn't about achieving average. it's about achieving goals. and invesco believes doing that today requires the art and expertise of high-conviction investing. translation? it's time to bench the benchmar

intel. the flip around from 30 off of bad numbers, frankly and moved to the upside. ibm, just the opposite. numbers come out, they sell it off. i think the real leader in the market is energy and materials, right? you look at oil each and every day. now it's traded up to 45 today. conoco, philips, chevron, exxon, everybody moving to the upside. if the second half of the year is any better at all, which i think we're seeing, or projections are we'll see some of that, i think that's -- >> a lot of these companies, we are getting to a place their business is very commoditized. not a bad thing. >> up next, the most important question on investors' minds right now. how should apple be valued. the surprising take after the break. plus, move over earnings, bank of america said there's something much bigger. we'll tell you how to play it. you're looking at a live shot of bill ackman getting grilled on capitol hill. he's just had an interesting response to one of the senator's questions. meg terrell is there. she'll bring us all the headlines. much more "fast money" right after t

and yahoo!. do you think ibm will set the tone or is it company specific? >> i think it's very company specific. i don't expect intel to be any better. they have their own internal struggles too. >>> that does it for us today. thank you so much. "fast money" begins right now. >>> "fast money" starts right now. live from the nasdaq market site overlooking times square. tim, steve, dan and guy, tonight on fast. after-hours, netflix and ibm falling on earnings. those calls are now under way. we have full team coverage throughout the hour tonight. we'll also get reaction from the co-founder of that company. plus, stocks may have hit year-to-date highs today, but one trader seeing an eerily similarity to 2008. and later, the world's biggest oil producers can't agree on a cut. why did crude rally so far off the lows today. tim has an interesting explanation for that. first, on a day that saw the dow break 18,000 for the first time since july, the results we're seeing from netflix and ibm and morgan stanley, justifying the fierce rally we have seen in stocks. steve grasso? >> i don't know if it's justifying it. i think yel

intel, yahoo, ibm yesterday all these old stalwart tech companies in a vulnerable transition case. >> some investors love it andnty others staying away. >>> we have 15 minutes to go and a market that's still in the green but we are certainly off the highs of the session, the dow is up 39, the s&p 5 and nasdaq still negative. >> oil breaking a four day losing streak today, will energy be one of the sectors that can lead the market to the next leg higher to those all time highs. that's next. or not in vests. this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade. >>> welcome back. president obama is heading to saudi arabia amid a long simmering tension between the two nations. eamon javers has the latest. >> the president was wheels up for saudi arabia from andrews air force base a couple minutes ago but before he left he poured a little cold water on the september 11th bill that's moving up on capitol hill. that bill would make it easier for american victims of the september 11th attack

and interesting plans now for the future. >> it's really interesting, carl, because we just saw ibm report a quarter where they talked about weakness in latin america, particularly brazil doing some cuts overseas. now intel coming in saying the pc market is weak, but also the data center enterprise demand was weak, it's cloud demand that's stronger. makes you wonder overall when it comes to the end user whether that end user is sitting at home or in a business or even at a data center that the business controls, what really is happening to demand for devices that run on intel chips. >> of course stacy smith, cfo is going to lead a lot of this charge in manufacturing, operations and now this cost cutting, jim, they're looking at saving $750 million this year. >> we really got to go over this because stacy smith's in charge of leading sales, leading manufacturing in the operations, what does that leave? i mean, what's brian doing? >> sounds like a ceo job. >> right. now look, this was the quarter where people say why isn't the stock down bigger? the answer is if you take out this many costs and the revenue is good, we're still up. it's a very profitable company. and we can't forget that it's profitable. bu

ibm is horrible but is that technology? no. intel, is that technology anymore? kind of. >> -- not great. >> -- yeah you look at the fang stuff. that's technology now. andven stuff that aren't public yet. and social media. that's what he referred to. certainly not talking about hewlett packard. the world isn't dependent on hult -- or i dare say yahoo. >> well we spend too much time talking about yahoo. >> that's my? >> yes. >> i don't know why. >> the media and silicon valley's obsession with yahoo and. because it's the original. because it is the first and because it was sort of iconic everybody thinks it's somehow fixable. >> because we all know -- >> -- everything else is gone. excite is gone. even aol. thank god verizon -- i don't know what it costs to put that out of its misery. and now --. >> we'll see given the state of the auction but that auction may also change a little bit after these earnings. yahoo posted yesterday topped estimates but revenue tumbled in a big way in the pharm's latest quarter. take a look at shares of yahoo there. 36.58. even was hoping for comments on the company's search for a suitor. mars ra miissa mayer saying it p pri