cory: the macbook is an amazing machine, working on an intel chip. mr. smith: yes.cory: you saw increase in the average selling price and also in volume. what is going on? mr. smith: yes, so we saw 12% revenue growth. the first half was closer to 15%. generally what we are seeing there is very, very strong cloud market, and that is significantly outperforming expectations we had at the beginning of the year. it is being offset with the data center. this correlates closely with overall economic growth, and that is what we thought when we started the year. to your question, that is consistent with what we have had for several years in the data center. we also see people buying richer configurations, and there is less space, and so you have more computing power per square foot. cory: interesting. the gross margin march, if you will, after taking a big hit, the guidance for next quarter was for a slight degradation in gross margins. mr. smith: i think you have to take a longer-term view of gross margins. our normal gross margin range is between 50% and 60%. as we have d

intel. we will talk to the chip giant. alix: and don't forget about the emerging markets. we are going to get a top fund manager's perspective. but, of course, we are going to take a look at what the markets wound up doing at the end of the day. it was pretty weak overall, down versus its 10-day moving average. the china trade data. joe: the longest streak of andining vix came to it after a nine-day or 10-day of volatility. nothing we saw today was that dramatic, with the seller, we did see that. scarlet: and julie hyman is looking at the numbers. hi, jules. julie: revenue coming in better and the grossed, margins at 63%, in line with the company's own outlook. now, intel, like other chip makers, are trying to diversify away from what is not working, the internet of things, for example, other types of memory chips that power other types of devices, and the ceo was saying they executed well in the are, also talking about a challenging economic environment, and customers are excited about the new core processor, and they also introduced a three-d technology, so a new categor

intel says demand from data center chips from amazon, google, and others is likely to slow.e forecasting $14 billion in revenue. in line with estimates. officer saidance they are performing better than expected. >> what we saw i think is a solid quarter. slightly beat expectations. underneath that, what we saw was continued strong growth in the data center. offset some of the weakness you were talking about any pc segment. it came in a little better than we thought. you are seeing units down. the quarter was a little better than we thought. >> you saw better pricing but lower value. -- would think it would be >> we are doing a lot of innovation leading to high and pcs being sold. saw apple making an announcement, they are taking advantage of technology and that is giving us an uplift. macbook is an amazing machine. working on an intel chip. data center, let's talk about that. a 6% increase. also in volume. where are you seeing that? >> 12% revenue growth. the first half was closer to 15%. generally, we are seeing a strong cloud the market. that is the secular growth driver f

intel is doubling down on this technology. the company announced a deal to buy ultimate tara for $17 billion which could provide the company with moral specialized chips for data centers. that data center the business now accounts for some 30% of intel's revenue and freedman argues that the business should keep growing strongly though he also acknowledges the risks such as competition from rivals like arm holdings. as for the pc industry, it remains under real pressure as consumers make the switch to mobile devices such as smart phones and tablet. os. there's some hope the pc market could get a much need boost from the from windows 10, most's new operating system as well as the new sky lake chip which triples the battery life of a pc. for now, times are tough in the pc industry. research firm idc says that pc shipments in the third quarter fell 11%. investors though are well aware of those headwinds. the challenges plaguing pcs have been going on for some time. intel is a 55 [$]millionpowerhouse so the big friends in computers and data centers will take quarts, even years to play out. the debate between the bulls and bears the tra zwrekt tryst c marke

intel. emily: we are waiting for some new chips this fall. thank you so much.s a democratic candidate as thesident -- democratic candidates go head-to-head, rand paul is hoping a live stream will bring his presidential campaign back from the dead. the kentucky senator has been live streaming his entire day on facebook and new stream. recent polls show paul trailing badly. this is his first time he has tried to give his campaign buzz with stones he hopes will go viral. last month he shot a copy of the u.s. tax code with an assault rifle. in july he took to it with a wood chipper and chainsaw. coming up, twitter is cutting as much as a percent of their work force. the real shocker and how many employees found out they lost their jobs, next. twitter temporarily suspend the accounts of two top sports sites. ♪ emily: i want to tell you about a developing story, according to people familiar with the matter, the chipmar has hired a bank and already received interest sandisk of its rivals, is in talks. any deal would add to what has been the biggest year ever for the s

intel. the whole chip industry is looking week.rs yesterday and the outlook and capital expenditures , it's hard to paint a pretty or bright picture coming out of that. angie: doom and gloom. thank you for that. for a look at some of the top corporate stories on the bloomberg terminal. boeing stretch dreamliner airways boost, ava plans to take it a deal. the wide-body version interested in 2013.ed boeing shares jumped more than 2% on the news. vw, 8.5 million vehicles will be recalled. it will restart -- starting january. it will last beyond 2016. shares more than 3.5%. the $6 billion takeover, worth as much as $55 billion, biggest ever for corporate bev.isition, ab in they will send bonds -- sell bonds in multiple currencies with different maturities. angie: the maker of one of the brands,best-known releasing for the first time ever outside australia. we are at the launch. what was it like? angie, not bad at all. event, theyt's gala won't have any trouble at all convincing consumers about its latest collection, 400 people gathered

intel will be investing as much to$5.5 billion to convert memory chips at a factory in china. hares fell sharply on the news. micron actually has a partnership with intel to produce the chip, a type of memory chip. ,e have been watching tesla humble after consumer rts rescinded its top recommendation for the model s after it got customer feedback. tesla is firing back saying its customer service results on the survey were still very sought -- very strong. a quick check of weight watcher --res, rising again today on after more than doubling yesterday on the news oprah was buying a 10% stake. short covering undoubtedly a part of the rally. opera a factor on weight watchers. thank you, julie hyman, at the markets desk. off the $27o spin billion stake in alibaba. anything but a smooth ride for yahoo! shareholder so far. the company lost more than one third of its value so far. to give us a preview, we want to bring in paul sweeney of bloomberg intelligence. paul, they need an oprah. they need something. paul: they thought they had it with marissa mayer. this will probably still be

in june, intel agreed to buy augtera for $17 billion. in all, chipompanies have already announced $104 billion in m&a this year, according to deallogic. last year, in total, it was $38 billion. the chip market is an increasingly mature industry, where there is a lot of competition and growth is harder to come by. that's why financial analysts say consolidation is the right strategy. >> it's the right move because the organic growth is almost impossible to achieve today, given that things are growing at a slow growth rate, but you still need to massively invest in your business, you still need to create new chips, you still need to build new facilities to manufacture those chips. >> for investors, one question is this -- which are the next acquisition targets? the team at b. riley highlights three names to watch -- integrated device technology, intersill and cavium, companies that they argue all boast valuable technologies and competitive mothers. they say the trend of consolidation will continue in the chip sector. big players like intel and texas in

intel did get some benefit from higher chip prices and demand for larger computers. intel exceed analysts forecast, 64 cents a share, that's down two cents from a year ago. expected profit at 59 cents a share. expect to open lower today. stock was down 2-3% in afterhours trading results. >> nicole: delta airlines scheduled to result revenue so far this year. delta has been flat, but over the past 52 weeks the stock is up nearly 49%. how about netflix, it will release third quarter results after close today, analysts decline in earnings per share but increase in revenue for the most recent quarter. netflix to report earnings of 8 cents of share on revenue 1.75 billion for the quarter. >> cheryl: apple could be facing $862 million in damages. after the iphone maker lost patent lawsuit. apple used technology owned by the university licensing arm without permission and chips found in most popular devices. apple will owe in damages. 5 to 6, 6 plus. big decision against those guys. >> nicole: donald trump is doing business with nbc again, he said to host saturday night live

intel. emily: we are waiting for some new chips this fall. thank you so much. as the democratic candidates go head-to-head, rand paul is hoping a live stream will bring his presidential campaign back from the dead. the kentucky senator has been live streaming his entire day on facebook and news stream. recent polls show paul trailing badly. this is his first time he has tried to give his campaign buzz with stumps he hopes will go viral. last month he shot a copy of the u.s. tax code with an assault rifle. in july he took to it with a wood chipper and chainsaw. coming up, twitter is cutting as much as 8 percent of their work force. the real shocker and how many employees found out they lost their jobs, next. twitter temporarily suspend the accounts of two top sports sites. ♪ emily: i want to tell you about a developing story, according to people familiar with the matter, the chipmaker has hired a bank and already received interest from two of its rivals, sandisk is in talks. any deal would add to what has been the biggest year ever for the semi conductor in na.

lots of chips that don't cut it are thrown away. intel couldn't even talk about altira, a very good chip maker. that looks like more of a bargain, considering the mergers that have occurred in the category since. a bidding war has broken out this morning over the local pmc sierra, not to mention talks discovered tonight that western digital might be in advance sandisk. no wonder intel is up even though the headlines said it was disappointing. j.p. morgan wasn't much different. the writers picked a negative piece of data, commenting how weakness might continue into the next fourth and manufactured that into a forecast cut. wrong. again, the stock is up nicely from where it traded because it was only that one division. it was no forecast cut. how about netflix? despite a strong belief among skeptics that the company's best domestic growth is behind it, the stock is crawling back up. some are finding credit cards as the explanation. others are reminding themselves of automatic the countries were netflix is still being rolled out. it feels li

fundamentally intel is the cloud right now, they are completely dominant with their xion family of chipets. that really is the opposite side of the weakness in pc, keeping in mind that as workload and technology moves to the cloud it makes for lower demand for more powerful pc clients. it's understandable that that group is under pressure. >> tells you a lot about this company. let's get more detail from jp hi, josh into kelly, intel just reports. intel reporting 64 cents $64 ce 14.4.billion. the street was looking for 59 cents on 14.22 billion. looking through its results, client computing, chips for pc's, 8.5 billion, of course, expectations were reasonable there. pc shipments were down 11% in q3, not much was expected there chips for data sent officer a bit light. that's a big source of optimism for intel bulls, the hope is that growth and data center can offset some of the declines, the pressure we're seeing in pc going to keep looking through this and will get back to you with morehead lines. >> john forde looks like it came in pretty well. >> it's interesting, people were expectin

the chips are down for intel, the world's largest chipmaker sees a tough corner ahead as companies scalethe demand for data centers. using a head, singapore is poised to act entering a technical recession. good day to you, i'm angie lau him a welcome to "first up here cap

intel. we will talk to the chip giant. alix: and don't forget about the emerging markets.g to get a top fund manager's perspective. but, of course, we are going to take a look at what the markets wound up doing at the end of the day. it was pretty weak overall, down versus its 10-day moving average. the china trade data.

intel at its own game. it demonstrated a new product designed for several computers. courts,chipnd it is designed as an alternative for intel processors. and netflix has raised the price of its most popular streaming package in the united states, canada, and latin america. new customers will pay an extra dollar a month, while the plan allows users to have two banks obstructions at once. once. subscriptions at netflix shares closed 2% higher in new york. this is the headlines at the hour. luxury retailers and yet is seeing a global decline in its shoes. it sees consolidation. -- the ceo told me that he remains committed to china and is raising the game in japan and macau. the slowdown among the adjustment -- the slowdown, or the adjustment -- i think china is a consolidation of stores, of locations, but we remain positive into the next year. we are here for the long run. reporter: have you experienced, with the devaluation of the yuan, that perhaps your luxury consumer is going somewhere else to buy? >> in a year like this, surely the markets have been affected. there has been dev

intel this afternoon. interestingly, we have chips down, biotechs down. we're getting a boost from the big cap tech names today. apple has been positive for much of the day. just barely holding on by a nickel there. parent company of google, also that's what's really holding things up. intel, just now slipping into negative territory. what is interesting is a lot of the beaten down stocks have been moving higher today. maybe we have all the brewing news, the coffee brewer is higher. tesla coming off negative analyst ratings today. the "l.a. times" reporting that small business owners who buy a model x can qualify for a $25,000 tax reduction on top of the $9,000 state and federal tax credits for buying an interest car. media stocks today, also seem to be moving higher. again, not any particular sector winning. but bob mentioned the big losers are the airlines. not just jetblue here. jetblue is one that actually got a downgrade but j.p. morgan says they see lower revenue per available seat mile. the did it counters really declining hard. back to you. >> tha

intel would argue the sale of data chips let's them participate in the mobility even if they are notbile phones themselves. that in some truth to the comparison to the pc business. the pc business has smaller margins and does not have a growth potential. quarter of this 7% yearsales were down over year. that is bad news for intel and everybody else and make them more dependent on the data center business. one of the things we will be looking for is growth margins. what we see in terms of growth margins is the place where you want to see strength and see that they are able to sell chips for the high growth margins they have had in the past. the change is not been positive coming into the quarter. there are headwinds these guys are facing. david: a couple of days ago a microsoft bp was showing off the surface computers they plan to release. how much faith is intel putting into that in these microsoft computer selling well? i think intel has a big bet and belief we will have a lot more laptops or combined laptops that you can take the screen off and use as a tablet. we will surely hear

for 50 years, every two years, the speed of a computer chip doubled and if you're intel and any otherto kick in as long as you kept producer. we've reached the point where physics limits the amount of speed you can get because we're down to the atomic size. they can't get any smaller. and at the same time, what the computing world needs out of a chip is changing very much. you know, it used to be you needed to make a calculation, human instructions were there, the computer executed them. now, we're talking about cars that drive themselves. we talked earlier about facial recognition on the phone. this means that you need chips with a lot more memory in them and maybe less logic. so, the whole design has to change. there are going to be serious winners and losers, and we handicap the winners and the losers in the upcoming issue. >> you know what's interesting, even in the semi industry, you're seeing m and a and i think it speaks exactly to what you're talking about because the growth has slowed down quite a bit. >> it has slowed down and because the technology changed, some of the big

intel also reports third quarter numbers after the close today. the chip maker is forecast to earn 59 cents a share on revenue of about $14.25 billion. both figures are down from year ago results. intel could still be hurt by weak demand for pcs but shipments show growth in the third quarter. the company could benefit from microsoft's roll out of windows 10. intel shares are up 10% in the past three months out performing the dow. >> thank you so much for that. which earnings do you think act as the best for the u.s. economy? e-mail us. and we have twitter and our personal handles are at the bottom of the screen. i think walmart. >> that's a good gauge. i don't think energy companies or construction companies are the best. i think the banks but not the investment banks. some of the smaller regional players but some of those are better indicated. >> i would look for yields as well. just tell me where the yields are and whether investors pick them up. it's a yield environment. especially with utilities doing so well since we're seeing such low rates but i rea

chip maker did manage to beat expectations. revenue of 14.5 billion and the street had been expecting 59 crepts on 14.2 billions so a beat there on the bottom and the top for intel. the internals of the report were interesting. it's client computing group which includes chips for pcs generated revenue of 8.5 billion and that was up sequentially but down 7% year over year. investors aren't surprised by a challenged pc market and that 8.5 billion is better than wall street had forecast. then there was the business of chips for data centers. now that generated 4.1 billion and that undershot what analysts had modelled. that group is a big source of optimism for intel bulls who hoped that the data center business can offset declines in a challenged pc industry. turning to guidance, intel is telling investors to expect q-4 revenue of 14.8 billion plus or minus 500 million. that's in line with what analysts expected to see. for cnbc in san francisco. >> staying with technology, apple has a patent lawsuit to the university of wisconsin. they find that the iphone maker used technologies owned by the university's licensing arm. apple could be facing up to $862 million in

number two, intel is feeding -- feeling the slump in sales. fell 15%,of chips5%. here is the issue that we have. intel is switching from pc to servers. it is almost like a computer is just a terminal for the mainframe. everyone is moving to the cloud. david: it is the same with dell. they can't make money anymore or get growth out of pcs. volkswagen is shifting gears -- that was nice. of then the middle scandal, it is cutting back on diesel vehicles. toyota is aiming to cut out gasoline cars by 2050. it will only use of electric cars. that is amazing. toyota is also predicting that hybrids reach 1.5 million. -- whoie: and author likes to call out that guys, what do you make of this? >> it is unfortunate. it seems to me that this is something that the government should have been ahead of. to find out that you put these emissions standards in place, and it comes through a whistleblower, somebody should have been thinking about this ahead of time. they should have been on it sooner. how, when you design regulation, do you prevent that. >> that is why you need peop

we've got companies as diverse as intel which is obviously one of the leading high-tech innovators. it is one of the chipufacturest and inventors. they are -- not only are they doing the right thing in the production of the products, they are facilitating along with some of their suppliers the ability for us to pursue the data that we need for companies to become even more energy efficient. we've got big utes like pg and e that have been at the forefront making it economic for the customers to get clean energy. one of the things we discussed is the importance of us getting a smarter grid and transition so that we are able to work to get energy from one part of the country to another part of the country in an efficient way that doesn't have a lot of leakage but can end up really feeding an increasing demand on the part of customers for clean energy. we've got chocolate companies that are doing the right thing in terms of how they are getting their inputs and farmers who are doing a wonderful job in california and recognizing in light of changing temperature what they need to do to be much more energy and

the sunnyvale chipmaker is struggling as it loses market share to intel and yet to see traction in its chipesign. they have 10,000 employees so it will be about 500 laid off. >>> the stock market is falling on the jobs report. let's take a look at the big board. dow dropping 216 points. nasdaq is also falling lower by 57. s&p down 23. a lot of pressure on financial stocks, big banks, also like wells fargo, schwab, they have been looking for interest rates to rise. low interest rates have crimped their profits in recent years. frank and michelle, back to you. >> thank you, jason brooks from kcbs news. >>> time now 6:45. palo alto's downtown library will be closed today so pest sniffing dogs can check it out for bedbugs. the city decided to inspect all four of its libraries after bedbugs were found last week at the mitchell park library. more bedbugs were found at the rinconada branch this week. both were closed and treated and will be reinspected. library officials think a visitor may be to blame. >> since we found it on the furniture on a chair, it's likely brought in by somebody sitting in

intel. the company posted a 6% drop in net income and revised down it's outlook sending shares in the chip maker lower after hours. investors shrugging off the better than expected third quarters earnings per share of 64 cents. the stock is down over 3% in frankfurt trade. >> okay. let's talk about the stage and the big stage last night in las vegas with the democratic presidential candidates locking horns in their first debate of the 2016 primary season. front runners hillary clinton, bernie sanders seizing the spotlight with both garnering strong reviews from pundents. >> greed and recklessness and illegal behavior on wall street where fraud is a business model helped to destroy this economy and the lives of millions of people. check the record. in the 1990s and all due respect, in the 1990s when i had the republican leadership and wall street spending billions of dollars in lobbying, when the clinton administration, when allen greenspan dead what a good idea it would be to have these big banks merge. bernie sanders fought them. today it's my view that when you have the three largest banks in

chips selling. big server, web that does better for intel. ted in the report today, versus consumer-based chips and laptops and tablets and things like that. yes, windows 10, satya nadella will help momentum. neil: not like old days. >> it was awesome. yes, i remember. i had aol. neil: before the time they had pcs, daddy. >> typewriters, right? neil: that was fine. that was my high school graduation present. >> that is really cool. neil: you don't even know what it is. it is in the smith sownian. >> snapchat, is a what you mean? neil: go. do you believe this woman? can you believe the debate last night. a lot of folks are saying, joe, no rush to get in. in fact you don't even have to get in. really? after this. ♪ ♪ (charge music) you wouldn't hire an organist without hearing them first. charge! so why would you invest without checking brokercheck? check your broker with brokercheck. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up

intel has had the factory since 2010 and will update to produce memory chips, this comes after for pcent. appear to be looking for a comeback. this after shares plunged and were suspended from trading. the chairman appeared on national television, and said well done, wishing you success. it is not clear from the video what he was praising. in may whenspended the stock lost $90 billion in less than half an hour. sportsld's most famous car maker is hitting the road of the new york stock exchange after raising its ipo. ferrari generated a lot of interest. for the shares, those more demand for this stock then there was a supply. the owner was able to offer the top end of the range of shares offered at $52. the initial price was between $48 and $52. and gives ferrari enterprise value of a billion dollars. it will start trading on the new york stock exchange under the ticket code race. raise $4 billion by taking the company public. really needs this money as it attempts to finance a 48 billion investment program focus on expanding its other programs included the maserati name. we are expecting

chips for data centers, remember that is a big source of optimism for intel bulls. the data center has to grow strongly to o set the challenging pc market. data revenue of $4.1 billion and undershot what the analyst were looking for. call getting started right now. i'm going to hop on it. and see about pc demand and the color about the deal for altera. back to you. >> josh thank you so much. for intel it has been a great 12 months compared to the semiconductor industry. but to date it has been beat up. >> when you look at the group, the $4.5 billion number is still off 12% year-over-year. they are looking at where the growth will be and fact that the pcs was better as awful as everybody expected i look at this quarter as impressive. but is a lot of that already built in. you look at where it was a week and a half ago, it was well underneath the average and it mas made a spike and now we're at $32 a share where we close coming in. >> let's bring in analyst chris roland. he has a $38 price target. and he joins us here listening to the conference call on the red phone.

intel third quarter profit was down 6% from a year earlier but the company got help from higher chipngs of $0.64 a share better isn't the expectations of $0.59. futures indicate a weaker start, but get futures standing weakest at the open, down 5 points, the s&p very close to the flat line. we saw weakness in europe, down students downside most of the day, the attack around and dax index down, asia went higher overnight. snow apparently is coming, accu-weather says waves of cool air through the northwest could be enough to bring the first snowfall of the season this weekend. >> a strikeout, a win, heading to the national league championship. maria: then there is this, the first time ever the chicago clubs closed at as series with a win in their own ballpark, beating out the same those cardinals with 6-4. not suggest at the end messaging for the nets, they lost to the dodgers last and going to l.a. for game 5 of the series. that is the top story right now, democrats folding their first debate last night, blake berman and las vegas with the highlights. >> the focus for the democrats la

chip deals. wherein tell ather intel and al, we're talking about $100 billion in m and a so far in this industry. >> sky works went down pretty heavily after that deal. >> it was not a stock deal, so did not impact the overall value. >> i like the deal because sky works was very centered on handheld. verycentered on apple. these have been kind of hostage and hostage and hostage and xpi to a certain extent. so it would be kind of ironic sky works lost it and started going higher. >> yeah, exactly. by the way, they do potentially have a timing advantage. they say they don't need chinese antitrust approval and that takes a long time. they say this deal could close if they did an exchange offer as soon as december. so we'll see how they perform here as they combat against the far larger sky works with this existing deal. all right. let's get to rick santelli from the cme group in chicago. >> good morning. home bases 2%, earnings are upon us. we have some important data throughout the month especially around the time of our debate, we'll be be looking at ggdp. all of these issues of course continue to

flash memory maker is down on a number of analyst downgrades following intel's plans announced yesterday to make flash memory chipsmicron closed down 10.8% yesterday. bank of america is out with an underperform from neutral downgrade and also putting out a $12.50 price target. needham & co. cut from a hold to a strong by. shares are up more than 50% relative to the stock. the philadelphia stock exchange semi conductor exchanges off a little more 3%. alix: thank you so much. shares rising as much as 17% in early trading to an initial price of $52. that price is a top end of its range. fiat chrysler limited the number of shares available in the offering to about 9% of the company. joining us as matt miller who spent the morning at the new york stock exchange talking with happy automakers. matt: and big owners. i'm enthralled by the brand as are millions of people around the world. it was interesting to see the nyse carry out the ipo so smoothly and quickly. within 15 minutes they had the stock opened and within five they had traded 10 million shares. a really interesting story. the history of for robbery -- the hist

this follows reports yesterday that intel is planning on entering the flash memory chip business in chinal start making those flash memory chips in direct competition to micron. as a result we have seen downgrades, be of a to neutral -- b of a to neutral. all of this comes the background of a difficult year for this stock. shares are down as much as 63% from its december peak. today, down once again. that is all. scarlett: thank you. abigail doolittle reporting. it is insane with technology companies -- there was no silver lining out of yahoo!'s result. they're wondering if yahoo! will exist in the next year or two. i think this company will probably be sold in the next 12-24. this is a soap opera that has gone on too long. >> i cannot figure out who buys it? scott: verizon, aol, one of the cable companies. scarlett: cory johnson joins me from san francisco to talk about yahoo!. what did we learn about these results? bristol myer, -- marissa mayer, as ceo is struggling with the company. johnson: this is a ceo who got to do what she wanted with the company. she tried to get expensive big n

intels results were above expectations but below last year. weak demand for pc chips was offset in this case by strength in it's data center and internet of things and asml shares down this morning. the company is a major supplier. earnings fell short of estimates and new orders dropped more than expected. cxs posted better than expected earnings. cost cuttings and lower fuel costs. the company cautions it's significant coal head winds will continue into next year. >> let's get a check on the markets this morning. yesterday you saw the markets pull back slightly. it broke a seven day winning streak for the dow. this morning there's red arrows but these are modest declines. the dow futures down close to 16 points. s&p futures down close to 3 and the nasdaq off by 7.5. if you take a look at early trading in the european markets there's red arrows across the board. biggest decliner seems to be the dax down by .9%. also overnight i asia you can see that the markets closed lower. >> let's get back to jp morgan. ceo jamie dimon is calling the results descent. joining us to

in union intel agreed to buy altera for $17 billion. chip companies have now already announced $104 billion in m&a this year. last year in total it was $38 billion. chipmakers are consolidating because this is an increasingly mature industry where there's a lot of competition and growth is harder and harder to come by. as you asked, mandy, which chipmakers are the next logical acquisition targets. i caught up with craig ellis of b. riley. he gives us three names. integrated device technology, intersil and cavium saying they boast value technologies. >> josh, thank you very much. he's one of the most high-profile activist investors, carl icahn, now taking his activism to a new level into a new realm forming a super pac to push for corporate tax reform. scott wapner broke the news. he spoke with mr. icahn in the last hour and he's here to fill us in with the details. >> and a whole new arena as well. you know carl icahn, usually taking on some of the biggest companies in this country. now he is taking that fight to washington, d.c., forming hi

intel and here's why. the company highly dependent on pc sales. that is where most of its computer chips have gone. they're trying to get into the cloud business but not quite as lucrative. we're looking revenues. estimate 14.22 billion. the year ago was 14.55. you see all of this declining as the company continues to struggle. the actual, 14.5 billion. those are the numbers. this company's shares have gone up recently but for the year they're down 11%. we'll see what happens in the coming moments. melissa, back to you. melissa: thank you, gerri. david: let's bring in gary kaltbaum, fox business contributor. gary, expectations were pretty low. in after-hours the stock was up a little bit. it actually beat some expectations even though it was way down, earnings per share over last year. >> most important thing is look, there is a thing called beat the number on wall street. throughout the quarter expectations come down and then you beat. but bottom line sales are down year-over-year, earnings are down year-over-year and that is just a recipe for a stock to do absolutely nothing on upside and maybe g

chip maker largest is forecasting a slowdown in corporate server demands, a right spot for intel.hey been hurt by the personal computer slump. ease in china signals more weakness. retail inflation is below the target of 3%, opening the door to possibly more stimulus. francine: thank you. just got in from a listener, i was wrong. elliott of def leppard supports one of the chef phil teams, and the bass player does another sheffield team. a correction. francine: a correction on baseball, i am happy. more on china and what a slowdown means for europe. that spring in hans nichols. teamnot know what football a support, or if they look at football in china. when you look at european growth, it is slower than expected. do withs it have to inside, emerging markets, and china. and: i was negative concerned with the data until yesterday. we got the luxury auto sector numbers from china. theaw mercedes up 53% in month of september, that is not a chinese consumer that is concerned about spending. even audi which is part of up.swagen, is it looks like there is a rebound. i've more concerned wit

we've got companies as diverse as intel which is obviously one of the leading high-tech innovators. it is one of the chip manufacturest and inventors. they are -- not only are they doing the right thing in the production of the products, they are facilitating along with some of their suppliers the ability for us to pursue the data that we need for companies to become even more energy efficient. we've got big utes like pg and e that have been at the forefront making it economic for the customers to get clean energy. one of the things we discussed is the importance of us getting a smarter grid and transition so that we are able to work to get energy from one part of the country to another part of the country in an efficient way that doesn't have a lot of leakage but can end up really feeding an increasing demand on the part of customers for clean energy. we've got chocolate companies that are doing the right thing in terms of how they are getting their inputs and farmers who are doing a wonderful job in california and recognizing in light of changing temperature what they need to do to be much more energy

intel. that's a big move. and then we have the chip maker. sandisk.t looks like it's putting itself up for sale and investors like that. up 12%. how about twitter, it's named google's new chair, and the price of the stock is shy of $30 a share, 29.49. shah galani, you wouldn't touch this with a ten foot pole. >> i wouldn't touch it, wouldn't need to. they've had internal problems, changes at the top doesn't mean the condition is going to sell itself or-- >> you're just-- take a look the trip advisor. it is up big. it's got a deal with priceline to book hotels. can you believe it? up 22% because it's got a deal in now, that's interesting. netflix, it reports numbers after the closing bell today, but everybody is going to be looking for, does it have more subscribers? that's the number to watch, number of new subscribers and where they are, by the way. in advance of that i see netflix up. >> they're hoping to add 1 1/2 million subscribers here in the u.s. 2.4 million customers internationally. there's definitely a momentum behind the subscribership. and

chips away from them. this issue is not something that the house will have to confront intel a new house is elected in november of 16 and is sworn in january of 17 and confronted in march of 17. >> you are right about that. judge, thank you very, very much. the bottom line, how are they making these numbers work? you could suspend that. former congressional budget office director says what really comes down is how committed you are to fiscal resolve. it is good to have you back. a number of goals here. some radio spectrum auctions. we will get that one in a second here. it sounds like they are looking for money under couch cushions here. without being specific, where are they going to get it? >> the thing to focus on is does overall spending go down? in this case, to raise the defense line. that is the president talking. you have to have some cuts elsewhere. >> what they did specify -- $80 billion through september september 2017. 50 billion of that. >> they have allocated where money will go. where are they taking money from? >> later in the budget window. they're taking some out of social security and disabi

intel. profits fell amid weaker demand on pcs. dow component cutting their current quarter guidance for the chip business. delta beat the street. richard anderson on squawk today saying they're buying on the open market now. conservative when it comes to fuel buying. >> that was an unbelievable quarter. free cash flow is extraordinary. the capacity, going 0 to 2% next year. when i listen to delta, i said this should not sell at ten times earnings. the first quarter you have huge fuel. 40% of this is international. surprised this did so well. this is a strong buy right here right now. intel, once again, the narrative, stacy, i love you, brian, you're fantastic, guys, get the story right. pcs might be bottoming. the data center, the gross margins. when you get those factories working, the yield is better, you could get up to 67, 68 gross margin margins. brian, just get more excited about your business. >> the worry is that there's weakness in the enterprise. >> 15% growth down to 12% for data center. if it was at 25 where it was august 24th, the stock would be up 3 bucks. stacy, i think stacy should h e have -- i was going over m

chips which got tanked. some of this might be concurrent. it may be a look forward. this is something you need to continue to consider. i look at texas and intele are not places to shave these stocks. they are at the top of ranges that are significant ranges. texas around $59 or $60, you don't need to chase it. >> when you talk about the haves and have-knots. nvidia up 38%. you lean towards a gaming stock, they are doing everything right. when you look at the chart, there is no pullback. stick with that chart versus bottom fishing. >>> next up, gopro plunging, falling a huge revenue miss. stock hitting an all-time low breaking below $25 the first time ever. the stock within $1 of its ipo price of $24. wi >> i think the session was impactful to our business this year. if session had been stronger out of the gates, if we hadn't mispriced it and backed it up with the marketing it deserves, we would have had a different earnings call yesterday. >> he is admitting to execution issues. >> he is learning it. he's been rewarded a lot of times with incredible stock prices. i would have missed all of that escalation. i was never a believer in the stock.

chips for cars. then in may, avago will acquire broad com. this combination is going to provide the most diversified communication platform in the semi industry. and in june, intelgreed to by altera, that was an all crash transaction valued at $17 billion. maybe we'll get more color on that. intel reporting tomorrow. some analysts like pacific crest argue that some of the same kind of mergers in the semiconductor space, they will see that ram up up in the i.t. market. because many of the companies, where they are selling storage and services or networking equipment, strong cash flows and cheaper valuations so that could mean a wave of consolidation is coming. melissa, back to you. >> josh lipton, thank you. >>> so what two companies do you think would be a match made in deal -- heaven. tim. >> i think coke has taken a bite. they need to figure out what to do in the food and beverage space. i know green mountain is on the skids but this deal makes sense. >> pete, what do you say? >> i'm going to put together the international -- intercontinental exchange, the ice and match that up with the cboe. i think these two exchanges have huge power. >> it is the ice. but i

intel. take a look at midship space at sandisk. put itself up -- sandisk put itself up for sale at micron may be interested, so those are big movers in the chipoday. in the internet space, trip advisor has announced a partnership with priceline. two goodbyes are customers will be able to book directly from priceline at the booking.com website for hotels, flights, what have you, and it is up 27%. huge game for trip advisor today. one other story to touch on, twitter, as you know, even though in has a four letter ticker symbol, but google trades here. twitter just hired a new comesive chairman who from google. he was the chief business officer over at google and something that julie pointed out that i thought was interesting, i hope i'm not stealing her vendor, there has often been talk about it cap of google and twitter. google has over 100 billion dollars of cash and twitter has a market cap of $19 billion, exactly what facebook paid. betty: thank you. matt miller at the nasdaq. just a reminder of that breaking news i came out moments ago on walmart which is taking the shares tumbling down. the company being hit by that stronger dollar but th

chip makers are in merger talks. that followed news that fair child semi-conductor as well as sandisk have hired banks to explore potential sales. intel agreeing to buy altera for $17 billion. avago saying in may it would buy broad come. the semi-conductor is maturing. gartner forecasts worldwide shipments of personal computers, tablets, smart phones are l. grow 1.5% this year. fewer devices mean fewer chims. chip sales will dip 1% in 2015 to $338 billion. that's according to mrk hong a research vice president at gartner n response chip makers are exploring consolidation as one real strategic option. the hope of course a combined company scales the business, cuts costs and boosts profit margins. rbc suggests that the next likely take out candidates could be company boasting relatively high gross margins, roughly 60% and where there's room for cost cutting on operating expenses, names that fit the bill, maxim integrated products, sem tech cooperation, power integrations. power integrations and cyprus declining to comment. guys, back to you. >> okay. joshua, thank you. our josh lipton. out on the west coast. 13 minutes to go, the dow is