idc reports global sales of pcs took a double-digit decline in the second quarter. and, ford's sticker shocker: the auto-maker is slashing the price of the 2014 ford focus by 10% to push the plug-in cars out the door. joining us now for trader talk, todd horwitz of average joe options. good morning. - good morning, angie. - did the fed cause traders to hit the pause button? - the fed did absolutely nothing. yesterday's news was just a repeat of what they said six weeks ago. the markets broke six weeks ago, rallied all the way back, and now we're up against a resistance level, which i would think would be a much better selling point, but the overall fanfare and buildup was a big nothing. - is china setting the tone for the market? - china is always a problem. the problem with china is you never get real straight information from them. but certainly if they start to have trouble and start to show it, that can certainly put a little bit of a fly in our ointment here. - coming up on friday we have earnings from j.p. morgan as well as wells fargo. will these be bankable

david: media and entertainment chief at idc. she has been a vocal opponent of the fed's policies. yet she works there. nonetheless she dissented at every meeting so far this year. when does she think is the best time to start tapering the stimulus program? our own peters barnes sitting down exclusively weester george as her first interview as a votings member of the kansas city fed. david: that's a great interview. >> >> also the senate pass ad sweeping immigration reform bill that awaits a vote in the house. we are break down specific companies that could gain and could lose potentially from the historic changes coming out of immigration policy inside the beltway. that is coming up. if you've got it, you know how hard it can be to breathe and man, you know how that feels. copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. you know, spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation po

research firms idc and gardener said shipments dropped 11%, which means that microsoft needs to look for growth in other areas. nokia that uses microsoft software in the phones unveiled the new lumia 1020 today and he is sure he picked the right partner. >> to combat samsung, apple feels like a good place. if you look at the an droid market now and the players in the android market environment, it's a tough slog. >> reporter: how will we really know if microsoft is making the right moves? in a year and a half, we'll see products developed under this new structure, if they are mind blowing steve job will look like a genius. who will be the next microsoft ceo to make big changes? >>> the sharp rise in sales of tablets and smart phones comes at the expense of the old fashioned desktop computer. worldwide shipment ps of personal computers fell for the fifth quart near a year down 11% from april through juniper i didn't do. >>> as pc sales take a serious slide, china unseeded hewlett packard to become the world's number one pc maker. lonovo who bought them back in 2005 controls 17% of the

without current law regarding intangible drilling costs otherwise known as idcs, percentage depletionproducers would not be able to generate capital necessary for domestics correct r growth and production activity. a repealing of producer production for idcs in 2014 could have a 15 to 20% drop in annual domestic drilling and 400 billion of investment from 2014 to 2023. consequently, 65,000 jobs per year would be lost in the oil and gas industry. to me, these figures provide powerful evidence for the need to maintain support of the oil and gas industry as a very positive contributor to our economy and american way of life. i would also like to mention briefly the role of traditional trade restrictions on our business. in today's global economy, it no longer makes sense for our country to cling to the regulatory relics of bygone eras that restrict export of domestic crude oil. u.s. government does not restrict export of gasoline or refined fuels or other domestic energy sources such as coal. in fact, 2011 marked the first time in over 60 years that the u.s. was a net exporter of fuels.

more fiery at us over there now to former ambassador bolton why a this is now a global political and idc get a spreading ambassador? >> i think we are all shocked to learn that there is hypocrisy. but united state shares an incredible amount of intelligence with all the european governments. they share some with us, but by and large they are the net beneficiaries. so when they take a cheap shot like that they should know better. he is a jerk. i think that we need to take these protests in europe with the big grain of salt. this is all for the home crowd. it is not really sincere. neil: well, there is a french political official lecturing anyone on honesty is one thing. the bigger point about t fallout on our financial credibility. what to you think of that? whether this registers an impact in that sense. >> i don't think that it will, and i don't think it will greatly affect. they're mad about how they collect data and how long they're keeping data, but he put not your own free will. we used to make notes of how people got purchases together. they're doing the exa same thing. they are th

idc reported that samsung's share dropped to 30.4% from 32.2% while apple share fell to 13.1% to 16.1%o. >>> pepsi will not longer label naked juices after all natural. after a lawsuit claimed the juices ingredients don't fit those guidelines. they paid $9 million to settle the lawsuit. david: how can naked not be natural. liz: nekkid. david: once you thought i knew about what the government knows and wants to know about you, the u.s. government is demanding that internet companies hand over user's stored passwords. which companies were targeted by the feds? how safe is your confidential information?% liz: liz macdonald knows. list? >> this is story we're talking all today. going little microsoft, yahoo! facebook strenuously denying they're giving the government password information. so now this week we have a house narrowly, narrowly defeating a move that would have cut funding to the nsa surveillance programs. we've got senator ron wyden really upset about this here's the problem. the patriot act section 215 says the government government can ask any private company for any informati

new figures from idc showed the company shipped 72.4 million smart phones during the second quarter,ouble the number shipped by apple. samsung shares did fall, however, overseas. record profits were a little shy of president forecasts were. in euro zone, finance mensters agreed to release another aid payment for greece the bailout payments amounts to 2.5 billion euros. it follows a conference call when greece fulfilled the requirement. a preliminary investigation shows that southwest jet that landed at la guardia nose first time. it actually did happen. it broke the nose wheel. that's where they come in like birds almost. it resulted in a hard landing and ntsb investigators are still trying to determine if pilot error was determined. they land back and slowly you can feel it come down. >> yep. it didn't happen this time around. >> our next guest is making the case for small caps. he says based on his research, the timing couldn't be better, dan barrow is with palisade capital management. he joins us with more. dan, you have interesting statistics i didn't realize, you say the number

new data and research firms idc show pc shipments were down 11% in the second quarter.xpensive tablets are replacing low end pcs in mature markets like the u.s. and becoming the first computing device for many people in emerging markets. la novo is the world's top pc maker and edged out pc by a narrow margin. who will win? e-mail us, worldwide@cnbc.com. tweet us @cnbcwex or direct to me @rosswestgate. currency controls, industrial espionage, these are some issues that officials are discussing at the u.s. china strategic economic dialogue in washington. what does china's counterfeit industry look like? eunice eun has been around to find out. >> reporter: this is what the chinese authorities don't want you to see, open selling of counterfeit goods. >> this is not an apple. so it says -- >> it is not an american made product. so where is your iphone? >> iq phone. >> reporter: designed by americane, assembled in china. this supermarket in beijing feed the perception in the us us that china games the economic system with counterfeits and currency controls, subsidies and indu

quarter over quarter, a little different than the dire expectations or estimates that gardener and idcr this month. >> why was profit down 29%? >> well, there are a bunch of different factors there. one is pc is down year over year in terms of the estimates of the street, the number was okay. so pc is probably down about 7% year over year, perhaps 5%, somewhere in that area. >> we always look at the earnings in regard to what expectations are. i know that's what the stock trades are. when you see profit decline by a third, i mean that is a phenomenal trend, chris. that's something that i have to wonder how concerned analysts are about this. >> it is certainly a slight negative. i would say gross margins last year were fantastic for this company. it was a highly profitable company at the time. things are a little different, a little more normalized now. i would say that was really the exception and not the rule going forward. so pc does seem to weigh here. it will continue to weigh here, but it is still a very profitable company, trading at probably 11.5 times right now. >> do you like

ray is a research analyst in idc and joins us this morning. good morning.really at the lack of innovation from companies because you could have said the same thing about pcs ten years ago. >> that's right. also take a look at the oval trajectory of the market. the smartphone market in even high end smartphone market only slowing down. this is not an out right collapse. if you take a look at the innovations some of the companies like samsung, like apple, you know, take a look at the latest models and latest experiences, a lot of them say, you know what, this is more like future creep. it is not the new splashy features we saw a couple years ago with face time and siri. you get great camera features but camera on the sport smartphone is around a long time. >> is it fair to say what's happened to mobile now is what it took a couple decades to happen to pcs, the market saturated and now there has to be another channel entirely for the companies to create or move into if they want to find renewed growth? >> i think you are right on the money. we're right at the

global threat environment, and one of the things i didn't mention that i should have is according to idcery fortunate, are growing 8% to 10% a year. so we have just built in demand. we have a nice tailwind. we're still losing share though. i'm pleased with our progress but we're still losing share but we're making positive strides. and so our goals over the long term are to get back to the leader of the industry to gain share. >> mr. bennett, 50% of the world's information you back up if i heard that right. if we were talking about the financial system and anyone had that kind of share, they'd be viewed as systemically important, to say the least. what's the potential for regulators to start looking at the big players in this business and thinking they actually have too much exposure? >> probably a better thing for me to have said is that customers use our backup executive and net backup products to back their data up, so we back up 50% of the world's information on their servers and in their environments as opposed to ours. >> all right. steve, you are the top gainer on the s&p today. w