&j, at best expect to tread water. >> j&j down about 3% a little more than that, as you see. up next, the etf's you need to watch right now. that's coming up, next >>> send us your latest stock move and the investment committee will debate it and grade it grade it e-mail u what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq you'll always remember buying your first car. but the things that last a lifetime like happiness, love and confidence... you can't buy those. but you can invest in them. at t. rowe price, our strategic investing approach can help you build the future you imagine. >>> a trdrone targeted a munitions. intelligence officials are quoted in multiple reports blaming israel but no country claimed responsibility out of virginia, a 6-year-old shot a teacher earlier month the principal has been removed from her role and she's not

&j be j&j without band-aids? tough one of the other stocks i like mo mondelez and they have oreo cookies but, no, j&j can continue to grow to that, i would say valmont, in the infrastructure space, there are names where i don't think they're getting the big crowded trade perhaps that j&j is getting, though, with the aaa balance sheet and that dividend, i'm not selling it either. i stick with my j&j you know. >> that sounds like voldemort to me thank you, guys. ron and michael. >> happy new year. >> thank you >>> and costco reporting strong sales and today having its best day since march of 2020. should you buy this stock in bulk we've got that and some other big winners this week coming up in three-stock lunch td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore

j! [laughter] mrs. j. mrs. j. mrs. j! mrs. j! lake: stupid detention. stupid lucas. stupid mrs. j. --give it back! lucas: heh. ok, come and get i lake: hey! grr! we shouldn't be re. lucas:hat, scad? lake: [grunts] ow. [gasps] this isn't really safe. [owl hooting] can we leave? oo lucas: ha ha ha! you got scared of a bird. lake: shut up! [echoing] shut up! lucas? [clanging] who'there? not funny. i'm telling mrs. j. lucas: really? think she'll believe you? la: you woul't. lucas: wat me. [lake gasps] lucas: you thought it'd be that easy? how emrrassing lake: it's becau of you. lucas: really? it's my fault you can't make it to class on time? it's my fault all my friends like me more than you? it's my fault i'm just the better twin? lake: you're not better. you just get me in trouble to make yourself look good. lucas: wt? no. lake: everyone says, "oh, lake, why can't u be more like you brother?" yeah, well, they wodn't say that ifhey knew who you really-- lucas: shut up. you wish you were me. [grunting] [metal clangs] lucas: ow! ow! my ankle. lake: why wouli care? lucas: lake, help me up

j and others sueded by the action. these events happen every couple quarters but how about this? look over a ten-year horizon, you'll find nine times we learned j&jd growth and phenomenal balance sheet and that period of time, the stock went from 163 to 168 and that does not include the very large dividend every one of these uninformed declines a buying opportunity. or to put it another way, the market/journalist industrial complex has been faking you out forever. sometimes you need to take counsel of those who know the real expectations and know they are beaten and buy the stock rather than sell it because of the uninformed and negative action oh, and for the record, what happened well, could have bought j&j at a mice pla nice play because it was unchanged at $168. there is always a bull market somewhere and i promise to find it for you on "mad money." i'm jim cramer see you tomorrow that's egg-cruciating. [excruciating] you can ride it to and from the train station. "i want to be the next scrub daddy." stop the madness. there's more madness! uh-oh. what are you sales? 20 bucks a month. 20 bucks a month? oh! big merchants are going to love this.

j&j is a more than $400 billion company and get into the nitty gritty of how the unit was split off, however the payments, whatever they would amount to be, were guaranteed by the bigger companies we'll see if this stretches across other companies using this maneuvering. >> about $15 billion off of j market cap since that news, meg. thank you very much. >>> ford cutting prices of its mustang mach-e in response to tesla reducing the price of its model y. details of this price war straight ahead. >>> plus sofi soaring and chips chopped when we take you inside chopped when we take you inside the market zone. maybe it's perfecting that special place that you want to keep in the family... ...or passing down the family business... ...or ack to the places that inspire you. no matter your purpose, at pnc private bank, we will work with you every step of the way to help you achieve it. so let us focus on the how. just tell us - what's your why? ♪♪ what if you were a major transit system with billions of passengers taking millions of trips every year? you aren't about to let any cyberattacks slow you down. so you partner with ibm to build a security architecture to keep your data, network, and applications protected. now you can tackle threats so they don't bring you to a grinding halt. let

we saw j&j, that flashed and j&j came in with a beat on earnings per share but i see 23.706 on revenuey're talking about they expect growth in 2023. that's not helping j&j as well this morning. so a lot of numbers just crossing, maria. back to you. maria: i want to say all of the companies are very indicative of the global story. right. you've got ge and 3m, global companies, selling all over the world, cheryl. what you're telling us is you've got good numbers on the surface from ge but underneath the surface wall street is not buying it and it's similar to this op-ed that jerry baker wrote in the journal today, the can davos crowd so sees a new dawn but it may be a false one. there was this optimism about we won't go into recession, maybe we'll have a soft landing. i'm not buying it. i'm not buying it. cheryl: i heard that a lot in davos with you last week. mild recession, repeat, repeat. i don't know. maria: all right. we'll be right back. stay with us. like your workplace benefits... and retirement savings. with voya, considering all your financial choices together... can help you b

. ♪ ♪ j-j-j-jin j-j-j-jinx challenge ♪ >> jimmy: all right, now here's how it works we read a categoryad a category from the card and then count to three. and we're both going to say something in that category at the same time, okay? >> okay, oh, my gosh >> jimmy: if we say the same thing, it's a jinx, and we want jinxes >> yes, okay, great. >> jimmy: the more jinxes, that's how we win. >> how many tries do we get? >> jimmy: do three tries >> three tries each. okay, here we go >> jimmy: all right, ready let's see what the first category is. okay winter clothing. winter clothing. winter clothing. okay >> i'm ready >> jimmy: one, two, three. hat. >> sweater >> jimmy: okay [ sad tuba ] okay i got it, i got it, i got it >> this is it. >> jimmy: this is it >> and we know this. >> jimmy: are you ready for this >> are you ready for that? >> jimmy: in winter clothing one, two, three. >> together: scarf [ ding ] [ cheers and applause >> yes ♪ >> jimmy: i knew it! >> i knew it >> jimmy: i really knew it too >> oh, my gosh, jimmy. this is good >> jimmy: i love it. all right, we got a jinx >> we g

a court of appeals dismissed j&j's attempt to dismiss the claim. j&j is saying they'll appeal or challenge third circuit ruling they say we continue to stand behind the safety of johnson & johnson baby powder which does not contain asbestos or cause can cancer >> i assume they did a texas two-step >> that is the legal name for the way they sacarved out the liabilities and filed that company for bankruptcy the idea they said was to create this pool that would take care of all of this together and sort of a neat and tidy way they put $2 billion into that. we don't know what the liabilities could mount up to if they have to go through them individually we have seen up to $2 billion for that one award lone. these could mount and get quite large. >> let me be inpolitmpolite here >> johnson & johnson seized this spunoff company with $2 billion and says it's going bankrupt to limb the amount of liability they would have to pay that seems a little too cute to me >> you summarized the third circuit court of appeals decision that was the argument. they say you

j. j. green. >> thanks general rider for doing this question. two quick questions. first. i understand you've explained very well what the patriot system training will be like and who's going to be involved, etcetera. but how does the patriot system for ukraine in the hands of ukrainians? how does it help them? >> sure. so the the the patriot will add to the air defense capabilities of ukraine as we've seen over the last number of months in particular, russia has really intensified its aerial bombardment of ukraine really across the country. and so the patriot will contribute to the air defense capabilities that ukraine already has. it's something that will enable them to take down ballistic, you know, up to ballistic missiles, adversary aircraft really up to them on how they employ it. but this is part of a broader effort by the united states and the international community to provide ukraine with the air defense capabilities that it needs to defend its population and its armed forces. >> and just very quickly, ukraine says the bradley fighting vehicles that they're getting are great and they're very happy about that. they're saying as well though, that they need and want tanks. is there a discussion about that? >> thanks j j so as has been the case since the beginning of this campaign. we maintain a very robust and ongoing dialogue with our ukrainian partners and the international community to look at what ukraine. security assistance needs are based on the conditions on on the battlefield. and so we'll continue to have those conversations will continue to look at what their needs are based on their requests and try to provide them with the capabilities they need to not only defend their country but but to be able to take back territory. thank you. >> all right. thank you. i have two questions. both are unrelated to each other. first one is there going to be a second batch of ukrainians that goes through the patriot missile training? so so -- >> right now we have the first group that will go through. i'm not aware of any additional forces, but again that will be an ongoing discussion based on the needs of ukraine. >> and my second question over a dozen special operation soldiers out of fort bragg are cu

no, not a good j j. just find it goes off with asian . we need news if you want to, which you wish to discuss. miles is on the bus. i see shells at the so i don't see at the so let's go to them. bhaskar for modeling way most of those of is blue music usually to do shouldn't have jo subsidy being like you to use a walk. i wish the whole weekly. i'm like i'm especially if you don't go to school, but you might know school will. he's new thing on the deluxe, the books that they'd stick with lisa to quit, otherwise, i'm going, i mean, that's what i look with some of those i get when you send me sure. i just went to my still, you boys to be used. but if someone wasn't got it, but it's, it's almost too much to say at least post supporters. and last i was, you know, so i'm sure i don't see it as we stay with the just so much but jitter. there's a lot to do. why does she judge from what you have just what i don't know. i did it by reddish the at the 2nd. she's she's good for me now for us to go over the list to let you know in a book or book a lit

j. j's chagrin. the real inheritor and transformer of the j legacy. however, was william j. who lived this house as a contemporary picture, the john jay homestead, which is a great historic site in westchester county. i encourage you all to go there after you visit the seward house, then go south and. go there, william j inherited lived in the house with his father and with the final two enslaved african-americans to receive their freedom. the mother and clarinda and zopa in ultimately when john jay dies in 1829, by that point, clarinda and are free, but they're servants in the house and william jay inherits the house the grounds all of john jay's papers and the sort of responsibility least he feels to write his father's biography which he sets himself. you know, to doing in the next few years and publishes in 1833. and william jay, much later in his life said and here's in using his words i imbibed his words my antislavery from my father and but the slavery that william jay embraced was a much more radical version of anti-slavery than his father ever did. he threw in with th

j&j. it's almost back to where it traded last june, and they booked a 47% gain over the past years, pippa stevens has the detai details. pippa, what are you watching >> kelly, expectations here are high the stock is up sharply over the last year. the first thing to watch here is how the outlook in north america looks. halliburton is the third of the big three, and we heard from baker hughes today the outlook is uncertain giving a lot of volatility around oil and gas prices then, in the same vein, how did international and offshore look. if things slow down in north america, revenue from international and offshore operations will be that much more important how can halliburton take advantage of those opportunities. and, finally, the dividend given that halliburton does pay a lower different understand that baker hughes and xlv, some investors may be looking for some clarity goods forward expectations are high, so you've got to wonder how will the stock trade tomorrow >> there's that 1% different yield you referenced boris, how do you feel about that >> i am very bullish this one i think has the strongest chance for the up side this is a secular bull story here there's a massive rear surgeonens of energy exploration. governments across the world have changed policy away from being purely green to understanding that energy now is a matter of national security as it is a matter of economic strength therefore, i think you'll see the next two other three years strong flows into the energy sector halliburton is a primary beneficiary of that. you have to love it on a long-term basis. >> so would you be bullish even if the u.s. economy slows or is slowing quite significantly this year >> well, as i said, you're going to have some cyclical slowdowns, but regardless, the longer-term investments will go. it's not a story just here, but a story across the world plus, we don't know if the trend goes back online if the demand would be upset by chinese demand so i think it's a longer-term secular bull story, as energy is becoming, as i said, a matter of national security just rather than economic good and halliburton is a primary player in this space that helps countries all across the world >> and everything you said about the china offset we'll explore more later on, where people are looking to that potential. pippa, thank you. >>> let's turn to the housing sector as a whole, we've been largely range bound, which is kind of impressive, considering the collapse of home sales and falling prices as well we turn to diana olick for the story. >> in this report we have toy laser focused on mortgage rates. in this recent run-up, the peak was at the end of october, when it went over 7%. throughout november and december, that rate came steadily down and sharply down in december. that will be factored into in quarterly report we want to see the commentary on that dr horton is the largest homebuilder in the nation, but they also have the compress homes brand, those an entry-privilege brand. so we want to see if the lower mortgage rate will factor into the new orders, which we expect to be down, but how far down we did see sentiment improve in january because of the lower mortgage rates one more thing we have to watch is cancellation rates. they have been sky high for the builders are they starting to come down all factors to watch, kelly. >> boris, you're not ned -- on the october lows that diana was talking about. >> that's the reason why i'm so hesitant i think dr horton is the bellwether in the segment, and actually its share of the total homes built continues to grow. if you're a long-term investor, i think it's a strong story. it's just that it's bounced so much off the lows. yes, mortgage rates have come down, but we still have the fed that's tightening. and that's obviously hangs over dr short is not as far as demand going forward. i love the stock sort of long term i think it's a much better candidate as a put sale, and, you know, get a very decent position so, to me, it's a safer bet to maybe do that than simply buy the underlying >> and by the way, ten times forward now i don't like it, nope >> the problem with home building stocks is you can't look at them in valuation. they trade more on momentum and sentiment. you have to take that much more into account than the valuation. >> all right there it is on your screen thank you both >>> we turn our attention to johnson & johnson. the ceo made some cautious comments meg tirrell has more hi, meg. >> hey, kelly, it is comments at the jpmorgan healthcare conference caught a lot of attention. the ceo had an carb outlook that he outlines. things going on in china in terms of covid, security measures in europe, all of that. so we'll be watching the 2023 guidance very closely. the company is also in the midst of spinning off the consumers units. what will remain of medical devices, and they expect to see recovery from medical devices when people were not getting procedures done. pharma, closely watched is the covid vaccine. j&j has largely de-emphasized it, or at least cut that back significantly. that will be something to watch really closely as well >> boris, on that note, do you think they're exposed to segments of the markets you want to be in, or would you stay away from the stock >> i think they're a dividend aristocrat their long-term market share is great. so long term they look strong, but there's a damocles hold on them because of the to have lawsuits they have tried to spin away those liabilities by using a texas law and put all of those into an entity that they capitalized, but the plaintiffs are after their balance sheet, which has $25 billion worth of cash on hand the problem is the existential risk as far as the bankruptcy courts will they allow them to do what they just did, which means the risk would go away, but if they nullify that, you probably have a much high are volatility move. to me that is the risk here. >> i feel prepared for the morning. what is the letter grade would you give e

j&j as they shake off the dark days of covid and paging a positive picture and we will talk to their cfo. the u.s. slowdown slows, pmi still contracted at a slower rate -- pace. it's the big tech test, microsoft reports after the bell and its cloud revenue wrote this expected to slow we will see if the stock is recession resilient. welcome to bloomberg markets. the nyse is reporting that all systems are operational and it halted due to unusual volatility. these were stocks like walmart. guy: we will keep and i on this but there is much more to take away other than all systems are go. in some ways, this is emblematic of an earnings season which will be bumpy and volatile. the market has pushed a lot of stocks a long way but have they taken the stocks too far? alix: it's going to be interesting to see where the upside actually is. do you have the fear of missing out and getting turbo boosted after that pmi's come out from europe? we will be judging the margins on a different kind of metric. guy: arguably, the pmi data points to a larger problem so that is something we will discuss with chris williamson in a moment. in isolation, these data are not great and even the european numbers are not great. it's the direction of travel that i think is important. you need to break it out and figure out it is happening with the individual component parts. inflation is a major part of the narrative we are watching. let's work our way through the numbers and the analysis. let's start with the data and michael mckee is here to break it down. what have we learned? michael: we learned that things are not as bad as anticipated they would be. we seem to be going in the right direction even if we are still seeing signs of contraction. let's start with the united states -- the latest number is the richmond fed manufacturing index, not part of the s&p global one but people follow it -- that one is not so good, down to -11 from a positive 1. in the mid area, things are not eight but the u.s. as a whole, the s&p manufacturing index goes up to 46.8 from 46 .2, the services index, 46.6 and the composite also the same. sequential improvements and we saw much the same and most of europe with a couple of countries in a couple of areas going over 50 due to expansion with french manufacturing and german services and the eurozone as a whole. it's beginning to look like europe is dodging the bullet. the u.k. is the laggard. is the only one that saw a significant decline across the board and that's understandable given their economic outlook area alix: great roundup, thank you. let's get more analysis with crease williamson from s&p 500 global intelligence. what did you make of the input prices? that was the first time we saw them up and growing since may. >> it's a worrying time and we anticipated they would be a cooling of price pressures. this is pretty broad based. his feeding through to the selling price inflation and it seems that while there is a lot of prices that were falling, we are now seeing wage pressures feeding through to hire costs and that's with the central banks want to see. we've had the big deflationary impact on industrial prices cooling and that's left us in a situation where we've got the second round wage pressures kicking in. a lot of the prices historically are very high. we are waiting to see when they can pass on those historically hike cost to customers and it looks like they took the opportunity in january. guy: if i'm an equity analyst watching this data, what is the signal? is it that there is margin pressure are you can pass on this pressure and the top line will outperform the margin line? as an average company in the united states, what is the picture? >> they are trying to up their prices now so what will be interesting is how do sales and orders hold up in the base of those additional selling price inflation rates. they are testing the market, if you like with the buildup of costs they want to push on to their customers. this will be an interesting time in the coming months to see how they will succeed. alix: how will the fed read the data? if prices are still high, what are people paying and the demand is there and it feels like the fed will have to do more to crush demand. >> i think this is a pretty hawkish survey despite that the output numbers are in decline. the rates of contraction have moderated. you look at new order inflows in business confidence, it's pretty smart across the board. as companies look at the latest news flow, it looks like there will not be a hard landing here, it looks soft and maybe no recession at all. they are picking the ball up and running again. i think the policymakers will look at that and say it doesn't look like we've derailed too much. can we afford to hike a bit more? guy: let's talk about the european dates. the january numbers are significantly better than what we saw in december and the rate of change is quite significant. eurozone composite number is going to 50 .2 and that's still a fairly depressed number but the direction of travel is really impressive and europe got lucky. china has reopened and gas prices have come down. is this a eurozone economy that is early cycle? >> you captured it nicely, we seem to be celebrating the fact that we are stalled. that reflects how grim things were a couple of months ago. the fact that there is a soft landing if no recession hit is a good picture compared to what we saw back in tober especially in the euro zone. in the u.k., numbers are coming down further and there is a risk of a q1 downturn in the u.k. but even there, you have forward indicators coming up. is the biggest jump upward and confidence about the year ahead that we've had since the reopening of the connie and 2020. even in the u.k. where they have more pressures, you are seeing the turnaround he could be a shift but i want to stress that there are so many headwinds that persist that i don't really see how we will generate any significant noteworthy growth in europe. if you got policy tightening from the ecb, governments are looking to withdraw their subsidies from the energy crisis. the grasp right -- the gas prices have come down but were -- what does this leave demand looking like? alix: for the u.k. and europe, if the u.s. is looking at a stickier situation and a pass-through, is that the story for the u.k. and europe as far as pricing? >> yeah, on the service sector side, things look stickier than what we want to see at this stage. we would expect inflation to come down as industrial prices feet through lower into things like food and transportation. they are looking stickier and this is predominantly wage influence. this includes costs. that's where the stickiness seems to be. guy: china reopening seems to be taken as a good thing for europe. what are you seeing and supply chains and does that story continued to improve with the china reopening? >> broadly speaking, yeah, the supply chain situation alleviates significantly across the globe. the whole supply situation, we've got the demand situation much collapsing as companies are running down their inventory levels. they accumulated a lot so this is helping ease the situation area we had a little wobble in some countries which is perhaps linked to the additional restrictions in china that were in place be or but that seems to be alleviating now so the reopening i think is on balance and having a disinflationary impact for management globally. guy: always great to catch up. thank you very much indeed. coming up, we will turn to the markets and earnings season will start and we will discuss what we are seeing next, this is bloomberg. ♪ >> it looks so much in the analyst earnings estimates that the fourth quarter was the recession and here we are sitting in the recovery. it actually looks a little like that in financial markets. it would be wonderful if that were really the truth if it weren't just on the leading edge of a hit we will have in profits. of course, how markets traded last year, we are not anticipating this to be some kind of profit nirvana. alix: that was stephen whiting earlier. the question of the day is -- is this the start of an earnings recession? you can look at the pmi data that continues to slow but less slow and you can take a look at the actual earnings which you can get hammered. 3m is really suffering so let's get insight from the goldman sachs investment strategist. are we facing an earnings recession? >> i think we will see pressure on earnings for sure. this might look like a 2008 were a 2020 we see negative earnings revisions going forward but i don't think that's a giant surprise. many of us anticipated earnings usher going into the holiday season with the amount of discounting and sales in the retail side and i think that will continue. we will see companies struggle passing through the margin and it will translate into more difficult earnings. alix: especially if you are exposed to the consumer. equity markets have done really well. there's been a lot of money going into europe as well. is there afomo thing happening? >> that's an interesting way to put it. i have trouble the last couple of nixon the one thing i've noticed is that there seems to be a different risk at the site -- risk appetite. there seems to be some who are looking to put money back in but staying more defensive in the u.s. not a lot of public flows into the equity markets. one anecdote is that we are seeing lots of flows into em equities but i'm not hearing that from our u.s. institutional markets. i don't think they have that feeling quite yet. guy: what would it take for them to get that feeling? european equities are surging and emerging markets are having a good run. at some point, will they be pulled off their hands? >> i don't think there's anyone trigger but one way to get people to get back into a market that's been out of favor is to not have another alternative. a reverse of what we saw last decade. when the risk reward becomes less compelling and fixed income markets, maybe people will look back to the equity markets. that goldman sachs, we assume a good case this year will be flat on the s&p at the end of the year. that's not a super compelling reason to get your toe back into the water in the u.s. alix: based on that, if investors are de-and for investors are dipping their toes into europe, what will it take for u.s. investors to get more constructive? >> on the institutional side, it might be strategic asset allocations. if there is some bumps in the fixed income or credit markets, there will be next year. we've had a goldilocks scenario and there will be certain companies that have a difficult time with the higher cost of capital and the same thing on the equity side. in the fixed income markets, i think there has been a lot of on buying lately and it's been an interesting month. i don't think the whole story has played out on the fed. that looks like we will get three increases and a pause but we cannot be certain. we still not have's the seat -- we haven't seen the trust and the equity market to be sure that inflation has cool. guy: let's talk about that from a tech perspective. tech got beaten up earlier on. one of the factors was what we saw on rates being raised higher. since the beginning of this year, it has been on fire. tech stocks are surging. can you walk me through your thinking around that and whether that something people should involved with? >> for now, we believe there is still value to be had in value stocks and long-duration stocks like the tech sector have been shells but it doesn't mean that will happen forever. they will be an opportunity to get back into those markets. we are more focused on the type of stocks to take advantage of this new on me and these new trends that came out of covid versus the old economy and what we knew were the popular new hot things five or 10 years ago. if you have an edge in those markets and you think you have something to play, by all means, but we would tilt toward the value site. alix: at what point does tech become value? is energy still a value stock or a value play? >> if you are thinking about it from an asset allocation perspective and you have those buckets to fill, that might be more of the question i would be asking but for now, i would think about what sort of stocks can really pass through these increases to the consumers. i think energy can and some parts of the tech sector should be able to do that, those with sticky customer bases and tools we cannot live without every day and there are other parts of the spectrum we have seen, a lot of headwinds that may play out but i don't know that reclassifying any stock from one to the other makes it a buy case. alix: how much do you anticipate interest picking back up into europe? how sticky will the flow be considering we have had so much interest in the u.s. in the past decade? >> i think the dollar might play into that. we could see if peak later this year that could provide a tailwind for u.s. assets. europe is tricky because with china coming back online and some of the energy pressures, it might be difficult but there will be opportunities there on the value side in different parts of europe, i think with china coming back online, you want to look for countries that are commodity exporters. maybe that takes you to other regions of the world but i think this might be a major inflection point for country diversions. i think you have to look at the u.s. which is not a situation we been in for the last decade. alix: and not all e.m. is like china, thank you very much. we appreciate your time today. guy: breaking news -- huge pressure on berlin. we been given a heads up and it looks like germany will give poland the ok to reexport the leopard tanks that poland originally bought from germany that were made in germany and export them to poland. poland looks like it will get the green light from berlin to export those tanks to ukraine. obviously, these are the tanks the ukraine wants. they are reasonably well used across europe. if they want the heavy tanks, the u.k. has gone down this road and we are about to see roland doing it as well. next, we will look at the earning story. we are waiting for microsoft to kick off the earnings season after the bell. we will discuss what we should be watching next. this is bloomberg. ♪ thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh guy: 24 minutes past seven on the west coast but is still time for the startup. the tech world it's holding its breath, waiting for microsoft after the bell this evening. what should we be looking for ed ludlow? ed" microsoft goes first. the forecast is for eps to drop for 9% which is the biggest drop since 2016 microsoft fares a little better at 7.5%. you have to go back 20 two quarters for the first time that microsoft had top line growth below 10%. it's expected to be around 2%. we will just we want to know how they will fare from this pandemic gary to the recessionary environment in the late of 10,000 people last week. they have a one point $2 billion charge off. a lot to look out for this evening but we are bracing. alix: we got elon musk in court yesterday so how did he do? ed: he kept his cool but he said unequivocally, the saudi arabia public -- public fund was private and there was little documentary evidence of that. he also recalled several dinners and tried to paint a picture of this being in the works for some time despite being any concrete binding agreement. he doubled down on what we talked about, the doubt -- that you should not take his tweets as it relates to volatility. alix: we will get all the details there. thank you for joining us. jseeing higher full-year earnings and we will talk to the cfo coming up. this is bloomberg. ♪ as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to 60% a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. hi, i'm jason and i've lost 202 pounds on golo. so the first time i ever seen a golo advertisement, i said, "yeah, whatever. there's no way this works like this." and threw it to the side. a couple weeks later, i seen it again after getting not so pleasant news from my physician. i was 424 pounds, and my doctor was recommending weight loss surgery. to avoid the surgery, i had to make a change. so i de

&j j&jre's a rotation going on against health care and i think if you want to buy j&j, that's a great opportunity. that stock was up because it was good but it's now down because it's part of the rotation so i say you have to start going against the rotation soon. because it's getting absurd. >> how about microsoft later today? still a juggernaut, is it not? >> well, i am still trying to figure out why they took -- this is like when they did that mysterious currency in a quarter and it was bad now they did these layoffs i think when -- i think people are going to say look, pcs aren't that good that's not really the story. the story is growth in cloud and web services maybe someone is going to say it's a little bit of a downtick. people want stocks down at this moment you have toaccept the fact, give them a couple days, but i think microsoft is doing very well it's just -- it's so is ge, so is y & j, and the stocks act as if things are bad. maybe we're in a rough patch after a great run. >> t

so i think it should be me was happier, one r t j o l l, my shoes, j j. obama c e c. i markup um okay al auto mall my she j a couple more than 20 i dont know. as well as confronting a 300000 strong, professional army and to further 100000 government back militias. the pdf also have to contend with life in the jungle with its endemic malaria. and for no, no, the dangers extend to those he left behind. i don't see a teacher more common. she didn't tell me that with the a day chinese. i think i yeah i to because when i had to turn with here from core, i knew she did a she by no. no, it's 1st mission in the media was an assault on a police outpost, which he filmed on his phone. i don't know if it's come or if i didn't know if you'd get a movie on, you might generally we have to buy a dealing with joe. we know that you michael nazzo, diana as well. no. annette. like giving my choice uncle dan by that means you know, you're a beach. she by exhausted volunteers guard against surprise attacks. don't you know he can get a note and need a no one? no, no, no monday, loud undernea

j&j am i diversified >> wow, very, very interesting and i want to thank her of course for being a club member, which is fantastic consultant company, let's say with some tech, franco, gold company doing well j and apple, own it, don't trade it and some were saying something how they are first in everything. fantastic. i got a great one, tech, entertainment, consulting, gold and drug and i'm going to say fantastic. a lot of those are indeed names from the chart b itable trust fantastic work let's go to -- that's rachel's portfolio. let's go to trey in texas, trey? >> jim, it's trey in texas thanks for taking my call. so i got five stocks for you today. one of which i know you're not a big fan of but they are as follows. palantier, data dog, sweet green and wing stop. am i diversified >> wow, no first of all, palantir you're right is a contractor, defense contractor and a terrible company. okay just terrible. snow flake is frank who is an amazing guy. it's renting the cloud which i think is fantastic wing stop and sweet green are both restaurant chains so we can't do that. data dog is an excellent company. i like monogo db and data dog. data dog is a way to code better these are both tech. so

market is -- the long knives are out for the market j&j was up $1.50 when they reported its with a very exciting quargter the market turned off. >> yep >> j&j, one of the few firms this morning to guide above adjusted gps for the year. a beat on the quarter and revenue. of all the names we talk about today, jim, the only stocks that are up premarket are going to be horton and lockheed. >> lockheed went down almost daily because of the republican pledge to cut the deficit and horton, the orders were weaker no doubt about it, the rates going up hurt them but the extraordinary amount of money that they're still making from the homes shows me that this is one why wr a lot of people are short it rolled over this is a giant home builder and there is a note out saying housing could be troughing is that troughing? is that troughing? i think the trough was maybe when peaked in october >> jim, i would like to come back to the broader market we have seen a numberst companies reporting numbers, particularly the industrial related companies down in the premarket perhaps when we open 20 minutes from now. but we're up 4.7% in the s&p 500. 8.5% on the na

j j, just a shout to tracy, we use joseph payroll. i t p for that only in the a math tutor when it been a found wanting me from to frederick beach o. p t. thank ah change. he knew nachos is tomorrow. when know you what you got going on from the country attorney, could you wait? yeah, hold on a penny, going to make to the the new summit. my cinci ha ha made you push out my job. with friends. aha, the wife call after chance. have from she that woman with you so. so we will you partner wave a magic ball tour that your friends or gail? when did you just say you only get cannot mix yourself all one to leave you got a bit convinced that button to quit for you. so would you attribute gave all the chicken some is she some kill with a friendly kiss. catch up on the phone with you. i'm a plan for palm. your francois. they were say say you see or issue the order or to touch. so the whole show you how to move a lot of fun with ah, the below is on the w. i love i now live wobble. lena was always put on you when i was a killer. good, good enough shoes anyway, but when i'm with the up. c be about and you called i was how he just wanted to talk when those made the trip to a seminar, i don't well talk why don't say not who called all back the right shipment jenny, about saddle. sure. sancho a should talk to their aid. you know, find yourself friends. so you know, to hadn't immature somebody else in between much less coach or i me and said, oh my name is either a, [000:00:00;00] a ah, see, to the, to so busy. i'm going to come back me up when know mom in the years. so with how many me can't what done since old only. oh, wait. some one that you didn't. yeah. think almost 100 booster white you i'm a one with it was let's move. it goes a so much i wish him. i knew it may come home. so bellow jana, so by so much white you that she and her name is caesar. she said he yeah, thomas may pump it while mom. so her 20th time i, i will follow up with me teeth and he adds a mil. melanie, my yeah, it causes her lip. she it by mail or, ah, what's a? 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don't really do the, i'll know maria, thanks a lot boy. and then yes, i had vento and a way of which just to show his a gem which is foolish to reject which will come with that there with them. or would you give them that would be amazing. the 3 la washington to none. don't. after the sooty from the how much you oh wow. you need your oh lord, i hear her notes in the cook. hey john jolly is such a wedding. this is joe luis and i have both of your friends. but if you do close at 6 and so yes, and when i went to work, it does it the up by the about the way that you went from one great, great bands. i think the all bodies in the land are gonna leave out on the high that, you know, i, we're not all that cabin is how much they haven't gotten. imagine leak. okay. yeah . for them. okay. yeah. and it's just a little more money. mm hm. and when you don't want a bizarre, you any money much longer marijuana left. so the kind of closing i have a share with, you know, it sounds like the funny about that is that you make the glove on the back 11? no, yep. it also comes with that's $3000.00 units in the law. now chantani logged in and said to me as a tow done sounds on that to the u. d. until that i'm on 1000000 down and your hold to the pamela. the nice what you like the put up all yours in the den. she's a near lighted tennis judge is in need of the volume in my galloping i la descendant applicant. oh la neil had sha to girl was eyes blad, needs ality dahlia down to that said, yell amid mailand. wow, good ya, ya to the deep she let me pull up but so tallulah said she had our dave, i say the mother called dave on the watch. highest echoed about a minute h to the move. sire, deep sleep in dia talbot, the mahogany bag. aiyona lee timothy with dads of all me up on them. they do some machines with ah, ah, me who placement to suit your last question is somebody joseph jen? it's a dock and so she'll chin to my machine cheney. i assure chimney pie so closer to, to need to good doing in the morning to please have been and i'm a sensation. one channel i your cooper in the tooth each at country teach the white africa with o y e o. ah, to me as you can, yes. can hear all as are shallow here my new york, your the you know, you know when a man with a shoe on time i get just book until july, the 10th with a monday. i'd be glad to walk with ease of use up regarding a, a, a, a, a with huh. what you did, they receive a fax with lab 5th with your wi fi, with that equipment with that machine. what's out is solely to transition, which was a little bit of what kinds of anemia dollar coma all woman you so for like joseph she is. i mean it was a 1000 line which is it. so shall my ears, i'm sure. then i 18 travel time z. she'll need that ish. yes. research here. sure, sure, sure, sure. but i'm not a whole lot about nbc chisher over there. what didn't that she but this put them up and that believe it even live at the top digest room of an india knight to pass on or off all the old number which was in the history of the top. susan, lately soniega from dover, the white you maybe. but how to shoes once it shoots it on monday, you to you for the ha. nissan ceo. those um brooklyn has session forties and shanghai say a new round of testing. we'll decide whether neighborhoods can begin opening up. most of the cities 25000000 residents remain locked down. it's sparked, i got ad protests in the commercial center here, many pots and pans from their apartment. when doors one more screen. give me back my freedom. on the whole day, yahoo! i shall soon see you will you should have had charles. oh, off. well then you have money trisha, should i ask men, bob? suppose aleman noble hutch with a dense hummer. might weigh salaries, are you sure it might have a p? i am a fence to be out in the mail, mucous pushing them. you shim has the 81 muscles humble from you if you felt so can you just so you. so wish it happened. that's the d phone i cation that, that i typed but not isolate ship, something to make a census pin. i one horny, horny senior alcohol by mail. one is why, as long as yeah, you got all the way and i my lab id of one man leader, j genuine, julio, where r o y, it's g, g i n g m a y, ah, ah, hasn't, she's any shoes or something i might do, announced kush with ah say eat, eat, eat, eat, eat those up occasionally city cation this year. he sent you those a how are you i'm only so she come to ah, she hearing. bab, oh, we are a generation of can people but very ambitious, very united, very puts it and i'm very good, but you might be comfortable right now, but not for long. you will soon feel the same. his, we feel every day from cuba, hong kong and uganda, 3 women grapple with the impact of their frontline activists, fear future children on a jessie examining the headlines. how big a breakthrough is this a story moment for all towers, research, unflinching journalism. i can see the part of the tree where 2 of the bullets there about my head, high sharing personal stories with a global audience. nature is so much more than income for shareholders. it's the library else. my people explore an abundance of world class pro

j&j. travel trust reports anything on tuesday, i bet the stock would fly. j&j is splitting off the consumer products business so the remaining company that's pharma and medical devices can shine. the $168 stock could be worth $200 don't be dissuaded that it acted so badly this week but we have a gigantic rotation out of health care and tech. now, here is one we have union pacific as well. that's going to be put on a clinic on the state of american commerce and then after the close, we learn whether those layoffs microsoft announced this week are grounded in disappointment or prudence also, after the close, we know the fed wants to see real devastation in housing before it stops raising interest rates and much lower prices. giant home builder dr horton play ball with that thoesis we'll find out they say housing went up another 20%. you won't get a quarter point, quarter point. a full point over the course of the year wednesday, we might get boeing get this it might have the first week not kidding. she thinks i'm joking. i'm not. we'll get boeings first good qu

j&j is great capital and part of my charitable trust and we're sticking with it unless something totally nuts happens it bet it sees 200 here is the bottom line, look at the best performers in the dow, i bet chevron, honeywell, proctor and gamble, travelers and jll repeat their excellent performances in 2023 "mad money" is back after the break. >> announcer: coming up, boom, bust and around the horn again last year commodities couldn't seem to make up their mind but a new year is underway, next meet jessica moore. jessica was born to care. she always had your back... like the time she spotted the neighbor kid, an approaching car, a puddle, and knew there was going to be a situation. ♪ ♪ ms. hogan's class? yeah, it's atlantis. nice. i don't think they had camels in atlantis. really? today she's a teammate at truist, the bank that starts with care when you start with care, you get a different kind of bank. >>> as we kick off the new year, we have to talk commodities. this year remains hostage to the prices and that's a huge part of what i think is important for whether the fed will be done or not. i'll remind you of something important. at the end of the day, commodity is the end of the boom and bust. not like wage inflation. we have a harsh les

no, j. j pseudo be sure to make a gospel that to me that a g economy. each name is on bush on that domain. yes. so it goes on, is that why the most? not tom? yes. because i know you spoke changed yellow bar go via how was supposed to be more the flow g e. then it says join your sports range for swaby. are you scared go downstream. jungle? yes. continue with the all. all peaceful your is danny, soon he please consult. female, mundane, son is the 2nd. talked us, we'll try to shelf his college or controller and domino political controller ask about this. ah, for example, germany and france to a lesser extent. exploiting the weak members of the european union greece employ anywhere where germany can make big business. that is a form of exploitation, and the greek economy be considered ruined by the european union. yes, it was ruined by the european union. it's already listed when you look now, at how many greeks have left the country. it's an embarrassment how many young people have left the country. it's an embarrassment, ah, resources are being depleted,

j&j helped along by stronger results in consumer health thanks in part for demand for tylenol and motrin during the cold and flu season. those shares down fractionally right now, and we'll end with a check on insurance travelers getting hit very hard last week after pre-announcing results including higher than expected catastrophe-related losses due in part to the deadly winter storms at the end of last year travelers' earnings for the record in, line with estimates with the pre-announced numbers revenue slightly better. nonetheless, an upside gain 26.5%. tyler, back over to you. >> dom, thanks very much let's turn now to microsoft. so is that big earnings report, well, that's the one we're expecting after the bell the stock flat today, basically flat for the year so far the company announcing last week it intends to cut about 10,000 jobs, so has that dampened optimism heading into the report for answers we turn to steve kovac. >> yes, we know it's going to be costly layoffs we were talking about that in the last hour and on top of that we've seen all the headwinds to failing pc demand, that hurts the windows division, and if you look at the an loft assessment, the most recent ones, only 3% revenue growth for the quarter which will be the worst revenue growth in several years so it's a really tough environment they are going into they would love to say do more with less. i've been joking about that all day. they will have to eat their own words now and do more with fewer staff and more deliberate priorities that they are going after, cloud being one of them, gaming the other. >> are they getting any help from corporate i.t. spending, or is that -- >> that's the real thing corporate i.t. spending expected to grow this year, and that's really important for smaller and medium businesses. the big guys, the comcasts of the world, like our parent company, they are going to keep spending like gangbusters on thesism t. products from microsoft, but it's the small and medium businesses that become the concern because they are going to be the first ones as we head into a recessionary environment. they are the first ones to start cutting spending i.t. spending not expected to grow, just not as significantly as we saw during the pandemic. >> we've got breaking news now we'll go down to the justice department and hear from attorney general merrick garland making an antitrust announcement about google >> all of us at the justice department, including the fbi and atf, will continue to support the half moon bay community in the difficult days ahead. as i said yesterday, the justice department is committed it doing everything in our power to protect our communities from the gun violence that is leaving no community in this country untouched. today, the department of justice, joined by eight states, filed a civil antitrust lawsuit in the united states district court for the eastern district of virginia against google we allege that google has used anti-competitive, exclusionary and unlawful conduct to eliminate or severely diminish any threat to its dominance over digital advertising technologies these technologies, which are known as ad tech, automate advertising sales by website publishers to online advertisers. when an internet user opens a web page with ad space to sell, ad tech tools almost instantly match the website with an advertiser looking to promote its products and services to the website's user this. product and process typically involves the use of an automating advertising exchange. this exchange runs a high speed auction designed to identify the best match between a publisher selling internet ad space and advertisers looking to buy it. as alleged in our complaint, for 15 years google has pursued a course of anti-competitive conduct that has allowed it to halt the rise of rival technologies, manipulate auction mechanics to insulate itself from competition and force advertisers and publishers to use its tools. in so doing, google has engaged in exclusionary conduct that severely weakened if not destroyed competition in the ad tech industry. as detailed in our complaint, we allege that google's anti-competitive conduct extends to three elements of the digitaled a-buying process first, google controls the technology used by nearly every major website publisher to offer advertising space for sale second, google controls the leading tool used by advertisers to buy that advertising space, and, third, google controls the largest ad exchange that matches publishers and advertisers together each time that ad space is sold. as a result of this scheme, website creators earn less and advertisers pay more that means that fewer publishers are able to offer internet users content without subscriptions, pay walls or other forms of monetization our complaint alleges that google has violated section 2 of the sherman antitrust act by monopolizing the market for the technology used by publishers to offer ads on the websites, monopolizing or attempting to monopolizing the ad exchange market and monopolizing the market for the ad network technology that advertisers use to buy digital advertising space. our complaint also alleges that google has you be lawfully tied its ad exchange and its publisher adder is have in violations of section 1 and 2 of the sherman act, and finally we allege that the united states as an advertiser has incurred damages by reason of google's violations of the antitrust laws in addition to the declaratory relief, our complaint seeks damages and the divestiture of certain google ad tech products. it also seeks an injunction preventing google from continuing to engage in the anti-competitive practices described in the complaint and any other practices with the same purpose and effect as the challenge practices. i am grateful to assistant attorney general jonathan cantor, principal deputy assistant attorney general mecci and the staff at the antitrust division for their tireless work on this case monopolies threaten the free and fair markets upon which our economy is based they still innovation. they hurt producers and workers, and they increase costs for consumers. today's complaint is only the latest example that the department has worked to challenge antitrust violations that undermine competition and harm the american people no matter the industry and no matter the company, the justice department will vigorously enforce our antitrust laws we will aggressively protect consumers, safe girard competition and work to ensure economic fairness and opportunity for all. i will now turn the podium over to associate attorney general gupta. >> there was attorney general merrick garland giving the details of the department of justus suit against google the shares again down about 1% today. let's get to eamon javers to wrap up more of what we've heard. there's so many issues with google, but this is specifically about monopoly on advertisers, the control of being both the buyer and seller here. what do we know? >> that's right. what the doj is saying google has monopolized both the buy and sell side of the advertising trans actions and the 153-page filing that the department of justice made today, along with eight u.s. states, it goes bac in history as you just heard merrick garland say to 2008 when google acquired double flick for $3 billion and said essentially since this time what google has been doing is trying to build a moat around its advertising business and control every aspect of that business, even taking financial losses in the short term in order to ensure it has control over the entire trans action and that advertisers really can'tsee exactly what's going on inside the black box of its processes when you dig into this filing, there's some interesting little nuggets here, including some conversations that apparently happened inside google one of them that they cite here is a google employee who raises the question inside the company, quote, is there a deeper issue with us owning the platform, the exchange and a huge network? the amalgy would be if goldman or citi bank owned the nyse so that's the allegation that the department of justice is making here this was fundamentally anti-competitive we'll see what google has to say about that and how long this takes in court to sort it all out. what the department of justice wants here is for google to divest itself of some of these businesses there were reports last summer that google made an offer to settle this in order to move some of these ad businesses into another unit inside alphabet those media reports. those offers cited in the media reports not enough for doj they are moving toda case. guys >> thank you very much eamon, let's bring in deirdre bosa now as well as steve kovach still with us. eamon just mentioned the magic word, divestiture. what would the justice department seem google to divest >> the doj really has a problem with alphabet being on all sides of the trans action, the buying and selling as well as the auction process, so he mention also that $3 billion acquisition a few years ago for double click. that's an area where they could force the divestiture. it could look even bigger than that the key, too, going forward is that's unlikely. however, when you think about what google can or cannot do right now, it would be very, very difficult to make another acquisition in this space at a time when a lot of folks are calling for consolidation. perhaps the tender for the growth of the industry for google but they say it doesn't matter because they are the predominant player this is what google would note as well, that its dominance has been declining a little bit. you've got players like amazon that were able to build an advertising business and scale it out very quickly. the fact remains that google by far is the dominant player here. that's what the doj is taking issue with and saying, again, maybe divestiture is the way of solving that. >> steve, you were nodding there. >> yeah. >> it's a question of dominance but maybe not being as dominant as it was. i would like to get your reaction to that and also to the idea here that we're not talking about search here. >> this is the ad. >> this is ads. >> this is like the nexus search kelly's favorite thing when you search for something. >> all kind of related. >> all kind of related >> if they push the legitimate stuff down you have no choice but to pay for top placement. >> right. >> so then to have them control that market and raise the prices to such an extent. >> that's the only spot. i want to touch on what deirdre said is super important, and if google is going to show something, we're not as dominant, we're dominant but not as dominant, amazon is growing as crazy like advertising, and do not sleep -- i know i talk about apple too much do not sleep on apple as they put more and more advertising into the ios they are going to eat a bigger piece that have pie, too they can point to all these trends tiktok, of course, we know is growing like gangbusters as well i know we're just watching merrick garland do that. i couldn't help but think of joe biden because this is what the plan was from the moment he appointed jonathan cantor, to the moment he appointed doj replacement andfrom the moment he appointed lena khan at the ftc. big tech was a big part of their platform and as soon as he nominated these people this is where we're going. ftc side, going after the microsoft activision deal. they don't want instagram to happen again don't want facebook happening again or don't want another double click and this administration is really going after these mega mergers which will put a chilling effect on it. >> they don't want campaign donations from these company, do they >> if you break them up there's multiple companies to offer campaign donations. >> i haven't thought about it that way. >> and i don't know if we have a live look in here, but jonathan cantor is speaking at the department of justice presser going on right now, so he is a key official in there. there you see him at the podium with merrick garland he's a key official in all of this this does speak to the biden administration's whole agenda here when it comes to technology and sort of corporate monopolies as they see them more broadly. the president, remember, had an op-ed in "the wall street journal" just last week talking about his vision for what the technology industry would look like in the future and talking about a whole host of wrongs that he thinks that the technology industry is guilty of, and really looking to, in a way, to break up some that have monopoly powers from some of these big tech companies and everything from as you were just talking about search and others. so -- but on your specific point about divestiture just as a point of clarity here, the suit here is asking for google to sell off specific things they are saying they want a judge to order the divestiture of at a minimum the google ad manager suite including publisher and server, dft and google's ad exchange along with any additional structural leads and looking for any damages relevant under the law enforcement they are looking for significant changes the way google is structured and the way the ad businesses operate. >> it seems though as long as goggle itself is the dominant search platform, that that is still where the dollars are going to be spent, you know. i'm curious kind of opening up the ad process should amealior ateame amealiorate things. >> what alphabet is arguing is if the doj goes through with that, that will actually still innovation and raise costs across the industry because it will be more broken up and maybe you wouldn't have as much data to pull. that's their argument. i would like to respond something to kovach said this is president biden's agenda this was also president trump's agenda, when the first doj lawsuit was filed and not even going to trial until later this year and that's why you see skepticism or complacency among investors who talked about this not long ago in that they don't think this is going to be done because this is bipartisan everybody wants to do something but does it happen these companies are very powerful and spend a lot of money lobbying and let's go back to the user. we know that regulators are on this, but the people that use google tech and the cutters in trickles through to search may not as big of a problem with it. >> let me cut to the stock chase here how big of an overhang is this goesing to on the shares of alphabet and for how long because these things -- >> several years. >> these are multi-year -- i remember the case. >> as far as the stock. >> here it is in the u.s., what's it going to happen in europe >> we've been talking about these issues for six or seven years now. nothing is going to happen you won't have to blame investors for being a little cynical that there's an opportunity to do something more meaning fall can haurt the share price and profits. it's kind of adorable that many -- look, they offered these remedies, clearly that up being one of them, that clearly isn't satisfying the regulators, but whether or not they have enough teeth, whether a new administration comes in and has different ideas, and to deirdre's point it is bipartisan, and there's bipartisan animosity towards big tech they come at it from different ways and have different ideas how this should be regulated. >> eamon, go ahead. >> i was going to say, kelly, the other set of stocks is web publishers because if it's resolved their favor there's a lot of money as stake. what they are saying on average google feeds 30 cents and sometimes far more than google's tech revenue business. if this is resolved in your business, some of those 30 cents out of every dollar may be coming to you. >> in effect google or alphabet is a toll-taker in this process. >> that's right. that's right a lot of money at stake. >> thanks so much for everybody there. thank you so much >>> ahead on "power lunch," two big ceo interviews, first lockheed martin's results out this morning, gaining slightly and an increase of defense spending of boosting the quarter, but what about the talk in washington about reining in some spending and we'll talk to the ceo of albemarle about lithium prices a key component in the electric car future we will be right back. e. so we're hard at work helping them achieve financial freedom. we're proud to serve people everywhere, in investing for the retirement they envision. from the plains to the coasts, we help americans invest for their future. and help communities thrive. 92% still active? seems high. seriously? it's just a bike. wait. they make a treadmill with an intuitive speed knob? yeah. want to try? 92% stick with it, so can you. start a 30-day home trial today. terms apply. 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(vo) when it comes to your business, not all bars are created equal. so switch to verizon business unlimited today. >>> welcome back to "power lunch. a big day for defense with rivals lockheed martin and raytheon both higher after results. will be heed stopping estimates thanks in mart to record order volume and a big beneficiary of the $27 billion in military aid committed to ukraine but it also left sales guidance for this year unchanged, can they keep up momentum after shares surged 37% last year? let's welcome in lockheed martin chairman and ceo jim taiclet and our very own morgan brennan. morgan. >> jim, great to speak with you on the heels of earnings this morning. i do want to start with that sales guidance, the fact that you're expecting flat sales this year but a resumption to growth in 2024. what will fuel that growth as we look to next year given the fact that you do have an order backlog that has ballooned to $150 billion. >> sure, morgan, good afternoon. starting with the f-35 program that continues to ramp up, we expect to build between 147 to 153 aircraft this year, and in 2024 and then up to 156 in 2025 so we'll have production increases in 2024 and '5, and we'll also have opportunities to build up on the ch-53k that's going into full rate production we've got activity going in our space business with the next generation interceptor this can prevent ballistic missiles from hitting our homeland, and then a number of other programs, so we've got a whole set of classified and unclassified programs that we think are really going to start to catch fire in 2024 and beyond. >> yeah. of course, one of those program of records that's seeing that ramp in production is the f-16, the block 70 aircraft. just today it looks like the first successful test flight of the first of these fighter jets that will go to bahrain. how does that speak to the fact that we're seeing this increase this demand for defense, not just here in the u.s. but among our allies as well and what that means in terms of trans haitian. >> sure, the reality is the geopolitical situation that's evolving obviously russia's invasion of ukraine. in addition to that, china has been very active strategically and i think it's well understood by our administration and by congress and both sides of the aisle that there's a heightened threat environment our allies feel the same way we have come together in europe to work together to help defend it, but there's increased demand, as you said, for the kinds of systems and products and platforms that you need to defend your country. we've got great relationships with a number of our allies. you know, f-35s got quite a few partner nations that help build the aircraft f-16, again, you know, taking off literally again with allies that may not have the authorization to buy the f-35 or have the industrial base to support it yet, but it's kind of an entry level opportunity i flew the f-16 block 60 a couple of times recently with our test pilots, and, yeah, a block 70 is very close and an even more advanced version of that great airplane flies very responsibly, super acceleration, and the upgrades are largely around avionics, networking, better cockpit controls it's a really advanced plane if there's s&l like tens of billion prep rated by congress and dedicated to dod to put on to contracts with companies like yours, replenishment of things like high mars and jaffe lynes and the three missiles that are part of the patriot systems getting shipped out to ukraine is the pace of contracting beginning to pick up, and if so, how quickly can you deliver on some of these supplies to replenish the some piles >> the pace of contracting is definitely speeding up there's real thought leaders in the department of defense to understand the issues and are helping to reduce those timelines. i think there's a whole approach we can take with government and congress to really advance the ball down the field on this issue. there's a number of elements it's not just the contracting process, the paperwork itself, but it's really having a number of joint initiatives between industry and government. thank your relationship that will benefit. >>> for example, we evenly looking to double highmar's production and the javelin production it rhett you to three years in both cases got a head start a year okay when i went back to the pentagon and volunteered to spend about $100 million to start that process before we had any contracts or any paperwork going become and for the, so it was worth doing, to demonstrate that we can get a head start, but there are four things that government and industry can do together in the future first is we need to have multiple supply sources for mic electronics, critical metals, things like that so we have more than one source for the supplier the second area is that we really would be grate for especially small and -- i know there's ways to screamline to. there's also the opportunity really to think about investing early. we've been working on peace time production over the last two decades. what's standard deviation as we're seeing now for highmars and javelins we should be prepped and ready with reasonably small investments to ramp up if we have to. those are some areas we can improve today andthen being, other ways it give us a splifl >> that's a conversation we'll continue to have, especially as defense spending is increasing this year but is a little bit of a question mark looking at fiscal 24 in congress. we'll continue to see low tuft ceo of lockheed martin, thanks so much for joining us today. >> thank you. >> let's goat bertha coombs now for a cnbc news update. >> hey, tyler, thanks for that here's what happening at this hour germany has decided to send its advanced lever 2 takes they will allow other countries, including poland, to do the same the move comes amid reports that the biden administration is close to approving american tanks to be shipped to ukraine. >>> the man accuses of killing 23 piece in a racist attack on a wall stleelt he'll plead guilty in that case after federal prosecutors said they would not seek the death penalty and prosecutors are still at risk of facing capitol murder charges. >>> and a georgia election probe by a special grand jury will remain secret for now. the report looked at possible interference in the 2020 election by former president trump and his allies prosecutors argued against release the documents while they consider filing charges based on that report. kelly, back over to you. >> thanks very much, bertha coombs ahead on "power lunch," lithium prices continue their meteoric rise up over 800% over the last three year, a big part of making batter batteries and ablamare says business should continue to grow more on that after this quick break. gs the way you want... your team, ours or a mix of both... with the nation's largest ip converged network, from the most innovative company. bring on today with comcast business. powering possibilities™. >>> welcome back to "power lunch," everybody. dow has turned positive. 90 minutes left in the trading day. let's check stocks, bonds and commodities. bob pisani kicks things off for us bob, what happened -- have we figured out what happened at the open yet >> yeah, trying to figure it out. simply put the prices were not accurate we had the opening auction there was no real print for the open, and that caused a lot of dislocation. the trader talk out if you guys want to hear about that. the important thing about today, the earnings came out and frankly were very meteoric and about to go positive on the s&p 500. 3m was a disappointment, jair, not great, union pacific definitely a disappointment. verizon was okay but the 2022 consensus was below expectations travelers pre-announced. they were in the amazing the bottom line is mediocre. amd didn't have earnings, but they got a big downgrade, and there's a lot of worries about what the pc market will be looking like bernstein downgraded they. if you try to figure out china here's what the market is thinking about look at what happened with 3m. significantly slowing demand in china and swatch group came out and said we've got a big recovery in china post-covid so the market is believing the reopening story. swatch stock up a 5 has. s&p 500, on the verge of breaking that big downtrend that started in the beginning of january 2022 market cap kept moving down, and now it's slowly starting to raise, get a few more points, 45, to 45 range. that's it. now back to you. >> and here's rick santelli tracking the bond market action. hi, rick. >> reporter: hi, tyler a, we're not tradi

j&j's attempt the to use bankruptcy of its talc subsidiary as a tool to resolve 38,000 lawsuits. the court dismissed the strategy which the company had hoped could resolve multibillion dollar litigation over claims the powder causes cancer. j&j says it will challenge the count decision and that baby powder is safe. let's flip it over to the nasdaq. the nasdaq at the moment down 195 points or, yes, as we said, about 1.68% right now. a rough session for tech. but keep in mind with a 9.5% pop since january 2nd, the nasdaq's looking at its best start to a year since 1999. all this red on screen though could change this week, because we are looking at a jam-packed calendar. take a look, it's the biggest week for earnings with major names from amd, gm and exxonmobil, meta, t-mobile coming out wednesday, and then it's aaa thursday, apple, amazon and alphabet with their quarterly reports and depending on how the numbers come in, they could move entire sectors. big data crowding up the calendar, tomorrow case shiller price index can, and then on wednesday the adp private employment report which is a precursor to friday's january jobs report from the labor department. all that pales in comparison to the much-anticipated principal re

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no, j. j. pseudo be sure to make a gospel that jamie strategy. economics name is some bush on that domain. yeah. so it was on his acquired the most. not as bizarre. no, you're supposed change. your report are go via our sports ski more the flu, g e. then it says use junior sports range, swab yang ski ago, production jungle years content with the all, all peaceful your is danny, soon he please consult fee mine to my bank. known as the sanctions talked south of the shelf, his college or controller damage of political controller. ask about this. ah, for example, germany and france to a lesser extent. exploiting the weak members of the european union, greece in croatia, anywhere where germany can make big business. that is a form of exploitation, and the greek economy be considered ruined by the european union. yes, it was ruined by the european union. it's already listed when you look now, at how many greeks have left the country. it's an embarrassment how many young people have left the country.

i tried to get some guinea was happy with all of my she j. j. come on. we'll see. you see i mark up on a l o tomorrow my she'd be a couple more. i don't know, as well as confronting 830-0000 strong professional army under further 100000 government backed militias. the p. d. f also have to contend with life in the jungle with its endemic malaria and for no, no. the dangers extend to those he's left behind. i don't see a teacher more common. she didn't tell me that until you know, on the day chinese i think i got a new term with the final quote. i know she did a 39. she by no nose 1st mission in the media was an assault on a police out post, which he filled on his phone. and i wanted to know if that is a k. i'm home you my general schedule. we have to buy a soon as you know to 2000 so we know that you michael also drive as you want to route renee y tipping motto is congo. then by that means you know, you're busy or too much as i was at lunch, which i with she by exhausted volunteers guard against surprise attacks brutal and you know, and he can get a note and none th

j&j, that was something people were really cautious about. but covid testing is still an issue for abbott there could be a potential upside as people are expecting those revenues to come down with where we are in the pandemic, but could we see some upside in the fourth quarter of course, post-pandemic recovery in their medical device sector, that is something with j&j we saw a little bit soft today, although there is a recovery happening back to pre-pandemic levels in terms of the procedures people are having done and of course as you mentioned, the baby formula investigation that coming out friday night the department of justice looking into the plant that makes that baby formula. we'll see whether the company says anything else about it in their release or on their call we know analysts will probably be asking about it, whether they will divulge more and how much that matters to the stock. >> have we gotten any sense, as we were just talking the other day about johnson and johnson and the legal there. has anyone kind of estimated the potential legal exposure that abbott could have here >> ic haven't seen anything alog those lines and there wasn't a lot of reaction about the investigation. it's something i'm really interested in learning something about. how much of a risk is this for abbott investors, or is it mostly that the negative attention

and when we analyze these, these 2 facts less, don't forget that p j j is controlling by ca, american diligence. and several of us officials are states several times that case, curious, branch, why p q id and y p g is be a statistic ally. so it's better to analyze the protests in this context well on austin, on because also i'm told we persisted through that initial technical difficulty to start to the end. you suddenly made your thoughts very clear today and that's on us . and uncle alton took his political scientists. thanks again for your time. thank you. thank you very much for things over to palestine. now where 3 more locals were killed by israeli troops in the last 24 hours during security rates in the west bank. the i across the top rope to in palestinian cities a 1000 residents gathered that the funeral of those killed mourners. so to the street waving flags and chanting slogans and 41 year old mom was also killed. trying to stop is really soldiers from defending his son. now, another demonstration was seen in the palestinian city of knob los as locals gathered the funeral of

in your prayers, the bills, posting a montage of well wishes for hamlin and cardinals defensive and j. j watt tweeted . the game is not important. d'amore. hamlin's life is important. fans have also been donating to fundraising site that hamlin recently posted to raise money for toy drive, drop , man having a good time, man. so let's get back to you had a 25 $100 goal quickly topped millions of dollars overnight. in the meantime, doctors say hamlin's injury as a stark reminder of the importance of everyone knowing cpr, not just physicians when cardiac arrest strikes every minute counts. in cpr can be lifesaving. so i think if we can do anything in this young man's honor, it's to learn cpr and understand the importance of recognizing cardiac arrest. no word yet on when that game will be rescheduled. some of his teammates were seen overnight arriving at the hospital, but you could feel it, watching that game live and even see reaction from fans and players, their top concern over everything. hamlin safety andrew andrea. such a chilling moment there, lionel, thank you and cincinnati bengals

the wolverines down , 10 scored another tv and trailed by six with a minute left, but qb j. j.sn't ready for the snap fumbles the ball and it's a turnover on down from michigan. tcu wins the fiesta bowl 51 45, the horn frogs either georgia or ohio state. the national championship game. january 9th. they haven't won a title since 1938 during the great depression. alright we go to the sugar bowl in new orleans, where the story of this game is bryce young. the alabama senior passes for five touchdowns 321 yards. kansas state's early leader raced here is young hitting freshman wide receiver kobe prentiss for 47 yarder. for the score. fifth ranked alabama scores 35 straight points and routes to around at game's end, nick saban allows his qb a moment to himself as he caps a college career as the number one qb in the upcoming draft case state they had btc you for the big 12 final, but they lose today. today's final roll tide past 11th ranked wildcats 45 to 20. we will have more highlights coming up of the semifinal tonight between ohio state and georgia. we've got the sharks we have b

j. >> j, you got your j, give me an e. e. you got your e.sus, and the crowd, everyone in the school is like is he spelling jesus? it was-- yeah. >> stephen: quick what rhymes with ecclesiastes. gospel, pop music is a small pop. >> it is actually. >> stephen: people said when they were switching from gospel to pop music they took all the jesus and turned them into baby. >> it really works. when you see the parts. aretha, everybody, i mean there is definitely a link. music is still music at the end of the day so yeah, i think the first real concert was called-- back in the day when cigarettes were allowed to advertise, there was a concert in south africa and it was everybody from k swifted to naughty by nature t was everyone and everything at the same time and there were three stages with everyone was performing simultaneously, which i think they thought made sense at the time. >> stephen: circus. >> like you would be watching someone performing and then just on the other side, baby, baby, i know. and everyone scream. and you all run to watch

j&j will rely on other drugs this year to drive growth.n-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm lisa mateo. this is bloomberg. ♪ >> we think china's reopening will be good for the chinese stock market. we are bullish there. but it will not sincerely drive earnings revenue in the u.s. that is why i said earlier it china is basically 3% of the s&p 500 revenues. even if it is a faster reopening, it will not move the needle in the short-term. tom: mike wilson with morgan stanley. the distinctions with china and the united states. we will get to jon ferro. i want to make a note of the world-class bloomberg news crypto coverage. emily nicole is in london, she was a religion major, which makes her perfect cover crypto. she has a story out where i have no clue what she is writing about. it is about binance and their mixing collateral and funds of customers, including your kids. lisa: i think there into the roblox currency. the real issue is how far that will go in terms o

go to break, the dow heat map american express, goldman, verizon in the green microsoft, chevron, j & j are lagging. we'll tell you what's going on it rn up to $250 when you set up direct deposit. sofi. get your money right. >>> welcome back a counter trend feel here today as the nasdaq is leading us lower by 1.3%. the dow down 75 points we started this morning with a much better risk feel. let's check mega cap tech. all those names in the red, worst decliner probably microsoft down 2%. watching for signs of momentum into the fed meeting can they surprise hawkishly at this point ark innovation is up 25% this year they're having the best month since the inception nine years ago. what's driving this? let's look through some of the main contributors to the rally in ark k, you have coinbase, year to date, up 64% tesla up 38% shopify about a 39% gain we'll have more on tesla later on finally, totally elsewhere, johnson & johnson, mentioned this before the break, shares worse than the dow down 3.4%. a federal appeals court tossed out their attempt to put the talc liability into bankruptcy ban

. >>> lucy in california, added to my j&j position, 168 grade it. >> i like this stock, lucy thanks forality company they have a best in class pharma business, the med tech should recover as the economy recovers and they'll spin out the consumer business much later this year. i like it, though. the valuation is not mappeding, you have a 2.7% yield. be care of the quarter tomorrow, they'll get hit by currency, but i think that too will pass an, good stuff thkseverybody. >>> final trades are next. r retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows coventry's helped thousands of people sell their policies for cash. even term policies. i can't believe they're just sitting up there! sitting on all this cash. if you own a life insurance policy of $100,000 or more, you can sell all or part of it to coventry. even a term policy. for cash, or a combination of cash and coverage, with no future premium

the new ruling means j&j will likely need to defend itself against the claims.t's your bloomberg business flash. dani: simone, thank you so much. now up next, we are going to get more on those samsung numbers. it still is planning on spending big, despite major challenges in the chips sector. this is bloomberg. ♪ dani: it's "bloomberg daybreak: europe". i'm dani burger in london. let's get more on the tech story. samsung had earnings, it still plans to spend big, but there are major challenges in the chips sector, those reflecting in a profit hit at samsung which shot its share price drop 3.6 percent today after falling 2% yesterday. all this comes ahead of a big week for earnings for the tech sector, we are going to get apple, meta, amazon, among others. a lot of potential risk events. someone who analyzes it all is sophie lund-yates, lead equity analyst at hargreaves lansdown. thanks much for joining us. meta, amazon, apple, three very different businesses. what do you like the most heading into earnings season? sophie: certainly a really busy week for us here

they want a pure play investment we saw j&j spinning out the consumer group merck is not getting ridof its animal health division is that something that the investors are pushing for? >> if you look at how fast technology is moving if you look in the last five years. we've had rna editing, cell and gene editing it will be hard to allocate capital to those areas and be in our situation, contact lenses and medical devices. it's the right strategy for the long run i would also say, when you look at the multiples, clearly entrepreneur play companies demand a higher multiple we are hoping that will allow us to rerate over time. >> speaking of selling gene therapy, which is a big space for you guys, and growing, thinking of personalized medicine, how big of a part the way we treat medicine generally do you think it will be over the next few years and when we see successes, like with merck and moderna, using rmna >> on the cell and gene side of things, it's maturing. there's an opportunity to treat broader and broader areas. can you move on to cancer to severe neurological exercise gene the

j&j and bavarian nordic in phase 3 trials moderna is the only one pursuing the mrna pathway pfizer has more traditional technology recompetent protein, as does gsk. jave options for rsv because it is a disease that causes a lot of hospitalizations and deaths. morgan stanley saying this is a big market opportunity 7 to $10 billion in potential sales in the adulting market these companies are looking at getting this to kids by 2030 in adults alone, causing 177,000 hospitalizations per year in the u.s., according to morgan stanley, 14,000 deaths and of course, guys, this is just the beginning of potentially wrapping this together with some other vaccines moderna talked about this at davos this morning with "squawk box. >> we are trying to combine them we can have the clinic of covid booster and flu booster in one dose covid and flu and rsv in one dose consumers, they get a covid shot this winter or flu shot. think about it for people 50, 60 and above. >> so, guys, rsv is the race now. we will see flu shape up with mrna vaccines as well and over time they will start to wrap those together guys >> so, meg, quickly, i mean, the fact that we are seeing th

j. j. true music trivially. gibby at the departed up of the guy at icbc, did junior high art and each in dance. oh, a with or on usually tickers ali reachable museum bar, alicia the to bring her air reach. be small. most of you what it to me. i'm is amanda. she cut there. it'd be unarmed that a be, be didn't. yes i ponce bent or cross unison that you something len boucher henderson. graham. 7 little touched on partly on the helmet. denise harrison i've been in touch here. so whenever you're touching a bureau arch in salt lake for the arch, lauren was junior on jack archibald. bid him as you loom said, she jenaya has shouldn't have been told what trouble in the corner says smith. benny suddenly quoted the courtroom be the best friend midship is firmed up. shouldn't been him. a lovely man, beauty and dare to him. a bed bitterly childish machines are hemmed. she lambert. see that the lyrics change as well. i mean, if you look at the lyrics of the 19 sixty's, the very 1st arabesque bit tacitly that for example, or, and angela's break arabesque. and so i suppose you could say and that of the 19 seventies and then looking forward to the 1980s as well the quality of the lyrics and the toner. the lyrics change is quite significantly the place of the beloved, the construction of the idea of suffering. and these are all things the elements of kind of pain and a g, and the relief as it were of that pain that i get. these are all the things that have changed over the course of the decades. ah, with me again, a very good example to look at is bus and we do year which has got a lot of and complexity to it. and the lyrics of this song, very famous, so many people he is this song now as a voice of social protest. okay. it's about the descent. mm. yes. oh yes. a yes. oh, so ah ah, there this resonated in these years in a global landscape of social change from social protest made for a kind of golden age. i suppose. you could say, symbolized by what an injury risking to kinda condition on look, mitchell shifter, a picture of fucked. it all done. our energetic to factor in credential figures response, which didn't be safe. alicia old leonardo risking the will a crushed, almost old one syringe to coin the kitley. i the cook and anger that in spanish they because one creates fumbler will say are the neg do it because when the all money a noun, better get the stretch, gotten w net, should i get your that rich sheila bush moreland, her city, did i know musical unleashed or nation or either, you know, to get older, give us next and i'm the daughter that group anger and music on that and i out and that should not be needed. october, the online your teachers could the richmond in the allow my ichard canoe? did you choose to go to what will good i'm district wishlist, unadorned the vehicle on to to could i wish they could die an invalid and wouldn't or will it abuse for dockman darlena shabanni cause living that would be that right . our article, you know, i think most this all dom your or lucas should be moving muscle to get it or foundation and caution. risk will get us out all my other daughter bicycle that equal shut. hum, ms. utley chicky, the will. probably not. i one i is in his soccer. so let me let me into because it be shocking to me to jo ah, a a job on today. adequate to market with me tonight in the summer for lunch and call me tuesday or like a smaller the get a burly shock, a city sided by our shuttle. we are we nobody show me how me for the if you're on the letter. so not sure yet, mission and then he said the lot of talk a little, a little looked on the bus if you a lot of a, you know, any kind of a n b a unit currently i should, we should be there on august 31st or i got about 6 and you want to give me cindy, talk to partner trophies, and then say can be, you know, me, came on la la. via that. a proficient in me coming up with a money. you get a d, h, b, a, get sick and i feel much gimme a. m a n t h and get you only have the hold on a . yeah, it will be considered a, i'm not sure how he could be here today all your week. i have a copy in yours won't have ever taught me murals on my, on the soccer soccer. well, i sure will give you a good news for all of us here. yeah, we started all some current. awesome. fuck it. ah, yes, i agree with the crew of the 12th of september, 1982 introduced a military government and introduced a period of crisis in turkey. like all crises, like all political crises, this period was full of extraordinary contradictions. so on the one hand, the military government wanted to impose the cultural nationalism of previous decades. we impose the cultural nationalism the previous decade. so in the church, radio and television in the territory, there were it increasingly emphatic efforts to maintain a kind of hard line on turkish musical cultural nationalism if you will, and cheap arabesque. in another sense, the military government was pragmatic as regards law and order and anything that would keep people quiet and in place it seems to me was fine as far as they were concerned. so they didn't make any particular efforts to forbid or stand pads or, or to control and arabesque, which actually during this period grew and grew and grew, where did it grow? it grew in the, in their chair. it grew in the cassette market. it grew in areas outside of state control, but it seems to me that the military government weren't particularly interested in arabic. and if they were interested, they were only interested to the extent that it was one of a good few things in turkish culture that seemed to them just to keep people quiet and keep people in their place. and to get to be nuclear 6 and you live in san linda, a to be bull iris, clear as you can last month, citizens to that and out of this should clear your can nash, missouri, or soon as you asked the minister 6 and you let him bystander equal that of course each could janet television which must activities macias aqua sandwich didn't ah dish these 200 machine. ah, the nick was a say, sammy than a bush and then each about an a strictly almost a that was i'll ship that you're wishing he decided air television, much control, massena bush, their muscle, which we knew could 6 and you lot of we inject studio a so the mid 19 eighties saw a famous effort to legitimize arabesque, or by keeping the musical style, but changing the lyrics and changing the mood of arabesque to reflect something that was a beat, happy, optimistic, and lacking a g. so r g says, out of best and very well known arabesque star, i could look was put at the head of this particular enterprise. ah, ah, a, it wasn't very successful. a kibbutz is a great musician. and clearly a very talented singer and a very talented composer. what's his addresses are best, can't he said to have been a great success. why? we take the r g out of airdesk and there's nothing left. it's all legit. it's our job all the way down. so of course this whole enterprise was innocent, doomed to failure. she speak music. true. she cards each. it is that deeply, tim, spotty, but it, it, it all was any citizen they hungry with on hunger initiative leshana a need to ship the brick ledge alanine sheet on a shiana cut out of our machine. if you ever ticket asterisk understandable somebody just when you get glamour, one can make a distinction. when was looking at the great arabesque stars of the late 19 seventies in the early 19 eighties in terms of a region, there was a very close connection with the southeast of the country and with our donna in particular, some of them do assess and very tie for have that connection. he blamed out to say, suppose came from worcester. so what was important about that was a particular style of folk music with these very intense, very kind of strong voice is a style of folk music where my com music and turkish folk music are actually quite close to one another. they lived side by side with one another. so that style and that vocal style and, and that was stolen style coming out of the southeast of the country, was one very important element. one can distinguish them from or an ganja by or engaged by came from samson, a provincial city in the north of turkey, which had a very different demographic ethnographic structure. i suppose you could say for the type of re rained thought that this bizarre nicky shock on that doorbell either whisking. can he, j u c u b u son liliana's da crystal, a gun banga inch that format mitigate to new york? she had the daughter is in that. yeah. and believe it or it was connected. i mean the suspending is from libya to carries mesa verde toford a bit. you blamed out the system. i had to change that and he said the musical that i was gonna be casey, though, on that didn't give him, there was a leak there. there are 2 of us on the front left i ah, with. mm hm. go says step $5.00 to $12.00 foot v drive trucks, fiscal shiloh be exceeded, shisha either biscuit in michigan, the dunham day. when all for do we make one that it whiskey? the jack, who pop music, the vans ish, the us not arrested pop music on my piece of music teacher on the do mr. kid, the thought was a book music by one of them had it was, can go for music teacher position didn't. and if guitars kinetic art obisky aqua from the excess or going to court issue, ah, a everybody was listening to this you couldn't escape arabesque, arabesque was eve

2021, we really haven't recovered all of that it's also better positioned than its competitors like j&j particularly in these. and if you think about the importance of prioritization in terms of margin at these larger hospital groups, they're not going to want to use a bunch of suppliers, and so we continue to s see stryker gains. this is a company going to be on the cutting edge of that and oracle i know this is going to be probably the most problematic one because once again it's a big cap tech stock, but they're growing in small and medium sized markets the valuation is undemanding, and they continue to show that by offering a cloud solution that is sort of a one stop shop from a database, that can really be something smaller businesses can integrate without a lot of consulting cost. they also have the acquisition of serner. >> jeffreys up grades from oracle going from 105. deutsche adds it to its fresh money list what do you think of these picks if you want to add to oracle specifically or more broadly to group. >> oracle, i like software, period it grew tremendously and i do think

get great numbers from t-mobile when it reports next week i know it's too early to flag pharma but j&j reported a strong quarter ahead of the breakup just the other day, it wasn't heralded at all. it should have been. there is a prostate cancer test. regular viewers know eli lilly could report a good quarter with strong guidance. don't forget, they're really expanding their manufacturing in north carolina i think it's because of their diabetes drug and i like the oil service stocks but seem to be alone in feeling that way. halliburton delivered numbers with positive commentary so let's consider an icing on the cake bull market that might fall we saw a fantastic, fantastic, fantastic chevron buy back announced this very night. oh, how about the entertainment stocks, disney, warner brothers, smoking. what matters is you can spot the bull markets with ease as long as you don't get distracted with enterprise software which is the most bearish part of the market or anything that touches on that digital world. let me give you the bottom line. time to reck nognize tech is no longer the only g

the session with the options expiration and next week a ton of big names with cyclicals, microsoft, j&jalf time report i'm scott holland in for scott wapner the question here is the january rall investors brace for a huge week ahead. has the stock gotten ahead of itself we're going to debate that and much more with our investment committee today. and joining me right here on set the lovely and talented shannon and jenny. ladies, thank you so much for coming in person let's get a check on the market righ

news catalyst situation there wasn't enough new money coming into the market to see something like j&j johnson & johnson fantastic long term story that got clobbered when the ceo predicted numbers skepticism by many turn into a rally where almost everything health care got crushed. i like that. i like it. at the same time the tech stocks kept the rally going as big sellers took a break perhaps because there were buyers coming into the market for once i don't know tech rally began red hot and ran out of team when a couple fed officials reiterated no plans to take their feet off the brakes still, this run was secondducti. it can pull people in even if it's short lived -off you might have found it seductive. how will tech rally? very easy for stocks to come untethered from the underlying business in the short term if the companies get serious about the bottom line because it changes their complexion let's talk about long-term cramer fav salesforce up today last week these guys announced they would lay off 10% of the work force and on friday 10% may not be enough. they made a series of exp

j&j and some in tech. let's get to frank holland and the half >>> and welcome to the half time report i'm scott holland in for scott wapner the question here is the january rall investors brace for a huge week ahead. has the stock gotten ahead of itself we're going to debate that and much more with our investment committee today. and joining me right here on set the lovely and talented shannon and jenny. ladies, thank you so much for coming in person let's get a check on the market right now. stocks are pushing higher but the major averages are still on pace for their first negative week of the year a look at the dow up about 0.25% right now. the nasdaq rallying right now on the back of that news -- the ten-year yield at about 3.197. is our january rally, is it losing steam or is this just a bit of a hiccup? because right now of course we're seeing all the indices up. >> i think we're in a situation where that's being offset by concerns particularly from messaging early on in earnings season about the potential for a slowing economy. i think we experienced were significant down dprads in quarterly expect asians for earnings but also a lot of uncertainty as it relates to calender year 2023 we're always looking at the potential for one quarterly print to move a stock, i think right now investors are looking for how do some of these potential recessionary concerns play into the outlook for some of these companies is this rally we've seen really in risk on warranted and is this just an example to the type of trading activity we're going to experience throughout the year as investors try to price in or out the threat of recession with the acknowledgement just because the fed becomes more accommodative doesn't mean we don't have a tougher road ahead >> what do you think about this january rally? again indices up today, but are we seeing the beginning potentially of a downward trend going forward? >> i love what we're calling the s&p was up, what, 4.5%, i love we're calling that a rally so let's keep a little context, anyway there's joking before the show in the world of no guarantees i'm pretty confident guaranteeing it's highly unlikely we're going to have a plus 30 to 40% year. if we have that in the context of thinking about the fate and say most of us at best are eking out a positive return for the year my thought all along is hopefully we get to year end with a positive return at the end and if we start the year off up 4.5%, it's going to be nothing but a roller coaster between now and then i don't know that's a bad thing. i think in those kind of markets there's tremendous opportunity you haven't missed your buying opportunities and might get more opportunities along the way. i don't know if it's a fade or anything it's just the course the market's going to take >> jason snipe, what do you think? a little volatility might be a good thing are you looking for potential volatility going forward >> yeah, so i mean if i look at obviously last year the nasdaq was down 34%, the s&p down close to 20. if i think at the beginning of this year it's really a story of repositioning. you know, some energy towards this kind of narrative of the softest landing, and i think that played a role into the market growing as quickly as they have. but, you know, if we're looking at it nasdaq up 5%, we're only 20 days into the year, it's run a lot. and i can see some exhaustion here, and that's why we're seeing some slow down. also, you know, as it relates to kind of earnings, earnings has been somewhat sluggish we've had a lower bar, so the beat rate hasn't been as high as anticipated. i think that's part of the narrative playing out in what we're seeing in the markets today. as i look at it today this is just financial re-engineering, hearing notes from microsoft with some cuts, obviously job cuts, google with some cuts. and netflix as you mentioned at the top of the show with some really nice earnings last night. so i think that's also playing a role into some of the bump we're seeing for that. >> interesting notes coming out today. i want to read a note that came out from barclays. it says in part u.s. data is weakening and not good for equities anymore even as bonds are rallying, classic recession play book. i know you want to bring your unique brand of insight into the market >> first of all, i'm going to bring my unique brand of insight. look, here's what i'd say. i really think it's -- it's not an appropriate conversation is the market rally going to continue jenny's right 4 h.5%, that's basically what we've seen the volatility in the markets that's a couple days worth of trading the narrative has been negative, so you can parse as we talked yesterday positive data points here and there but the overall narrative is negative, and guess what it's just the beginning of it. so the fed's not done. the most important thing in the market and what to focus on is inflation. and you can claim just pure victory that inflation is moderating, that's down a little bit. but as larry summers said, and i'll paraphrase, it's the most insidious thing that can happen to any economy we've seen before in latin america, other countries, fortunately not here, that inflation becomes just a killer to an economy. and then take a look at google so google and alphabet is up today. and it's being aplaued that 12,000 people were cut think about that you've got a company that culturally really hasn't cut people before. all it's done is add staff, add staff. do you know how long sitting in board meetings, how long we spend talking about the cultural impact of that, about maybe if it's a temporary impact, the slow down. what googles tell you is that their stock should be lower because cutting 12,000 people does a lot to the culture short-term, does a lot to morale and i'd say is counter productive to the company growing. so i think that's another warning sign that's upside down in terms of how the market is reacting things are getting a lot worse, and they're the tip of the spear with the advertising which is a leading tell for the economy bottom line is i'm negative, i'll stay negative, and try to take advantage of trading rallies. >> by the way, steve, you don't have to paraphrase anything. larry summers in davos saying the greatest tragedy would be is central banks don't finish the job. out with a note today pretty short and twsqueet i'm going to read it to you. steve weiss is one of many people who believe the fed is one of the biggest players this is the last we're going to hear from the fed in their quiet period do you think more equities have their down side? >> i think any risk for the market is complacency particularly among investors we've been trying to talk ourselves into a fed pause, and the great hallelujah chorus starts when we say fed pivot except we're the only ones saying it. the fed isn't saying it at all and i was privileged to give a speech with the fed president pat harker and i've gotten to know pat over the years. we've had a lot of private conversations. i said what aren't we getting from the fed he goes i don't know why you're not listening. we're going to have more hikes he says we're going to have three more hikes yeah, we're probably a little optimistic the other side is i think we're a little too pessimistic this is going to last forever. a year from now i think it's very likely, maybe 18 months you're going to see the fed over and done with, whatever recession we may have over and done with and see those green shoots of economic expansion emerge there's no getting around going through this process when the fed is this resolved and investors just aren't listening. you've got to come down to rehoboth beach it's awesome >> a new note saying the head count cuts in tech are the first major step toward stabilizing the stocks and setting the stage for a tech rebound obviously we're kind of in a place where in this case, this particular case bad news is good news people get laid off, investors seem very encouraged by the cut to costs going forward, a big ramp up in hiring during the pandemic what's your take on this >> if you think about the innovation of microsoft and google much of it has been on projects eventually are not profitable or successful and so as an investor when capital is free, you really don't worry too much about capital allocation i think there were few questions on what they were spending about that cash flow in my mind a lot of this is probably appropriate prioritization if you're in an environment where capital costs something and you need to think about capital allocation not just for technology companies but other companies, being able to look at the number of projects you were perhaps willing to lose money on previously making sure your head count and resources are in align with companies you see being able to grow i think is the right sizing and makes sense there's been a ton of hiring with these companies i actually think it won't impact the potential for growth of these companies because it will be on these priority projects that they can see a positive roi over the next three or five years. >> yeah, we're showing some of the layoffs here google cloud still doesn't make money. it's the growth engine for the company but still not profitable just yet are tech stocks just more attractive maybe the environment right now with the layoffs and things aren't great google's valuation a year ago was 25 times, now it's about 19 times. amazon's valuation in august was 98 times and now it's about 52 times, so on and so on >> they're 100% attractive the real question is are they attractive enough? and that's where we stand. as long as we run our discipline growth strategy -- what are we looking at right now we're actually doing deep dives into google, netflix, amazon for us it's not quite cheap enough yet, and that's probably not the right word because we're not looking at it a deep value play cheap enough isn't it but i would say maybe the valuation isn't compelling enough at this point. you say to yourself, oh, my gosh, i may actually be able to buy apple at 100 one day, i may be able to buy google, amazon. they're cheaper, i'm not sure they're cheap enough to michael's point and steve's point, if there is a lot more negativity in this market this year, you haven't missed your entry point. you might get them at better prices >> when you talk about retail investors, they're really excited about these big tech stocks a note from jp morgan today their retail radar, a lot of buying focus on large tech names, microsoft, nvidia at the top where they're seeing the biggest buys jason snipe, do retail investors are they onto something here because they're jumping into some of these megacap tech names? >> well, i would say just in my earlier comments just revolving around tech and also to shannon's point i mean the free money era is over, right so i think it's tough to look at, number one, non-profitable tech that's been thrown out the window that's not an area i would look at but the megacap names and multiples have come in a little bit. the s&p is at 17 times they're still obviously trading at a premium to the market to jenny's point i think potentially you can still grab these names lower. i think these are great companies or the beltway to innovation i do think there's better opportunity today than there was the beginning of last year for me i'm neutral on tech i still like the more value oriented tech like the ciscos of the world. i think that's where opportunity in the near-term >> you've got that old money you're managing. what do you think? is now the time to get some of that old money into big tech is this the point you want to jump back in >> some of the big tech, yes i'm thinking the kathy woods tech, not so much. and i think people are heading to that more volatile speculative tech yes, the old school tech, you know, the faang stocks were way ridiculously expensive they've come down. they represent a great deal more of value google is now 19 times i think the earnings growth there is still for most of those companies still in double digits when you're paying a small premium and preparing to held them for the long-term, i think you've got to do that. but also i think as shannon was saying there is the good news of opportunity still coming i mean if we get this pull back you don't have to be in a rush, and i don't -- i'm never in a rush when i'm investing. so being really dogged and disciplined and dispassionate is the best advice i can give folks thinking about getting back in >> weiss, let me come over to you. you actually covered your shorts and triple qs. obviously no one knew the layoffs were coming. that's caused the big spike in these megacap tech stocks. >> yeah, so when i'm trading the market, you know, my focus all day long is watching the screen and putting stops. i short the qs i got stopped out some because i keep moving my stop, so a little bit of trade school yesterday. so i wanted to keep it as a profitable trade i took off some more last night immediately on the netflix print because i thought the market would misinterpret it. they actually had slower growth. sure subgrowth was lower but you have to look at spending and i just covered the rest of it this morning and at that point it became a useless position i'll be short again but that's trading versus, you know, my core positions which are key, sometimes i'll trade around like moderna. so that's really all it is i don't think we disagree. i think these companies will come out of this cycle much more effective, efficient because -- the money behind not google, he pulled the funding from it so you've got that awareness plus the question is when. in terms of the companies being -- the stocks being cheap at this point you only look at one point of the equation, and just because price is lower doesn't mean cheaper when price comes down very often it's because the fundamentals decline. when you see what the growth is for alphabet over the next year versus this year, i'm not see sure it's so cheap as the lovely jason snipe points out we've still got these stocks selling at nice premiums of the market, but that to me should be a lot lower. it should be closer to 14 times than it is at 17 times so it's a moving target. i'll agree with michael farr you will get a better opportunity in equity, stock you wanted to buy. everyone couldn't wait to buy tesla at 700, apple at 155 look at where they are now >> good point there. >> i want to touch on something you said, frank and asked jenny. smart money, very smart money. i want to make another point what we could see as additional catalysts -- >> that was a failed reference to me, shannon, by the way >> pi backs, if you think about capital allocation there's going to become an opportunity even with the additional tax on buy backs that was a huge driver for tech stocks coming into 2020 we could see that really catalyze these stocks again. probably not today but something for investors to keep an eye on. >> netflix shares up almost 7% right now, having their best day since november after the company reported better than suspected growth shannon and jason, you both own it jason, i'm going to start with you. do you think the stock has gotten a bit ahead of itself obviously up almost 7% today >> yeah, so obviously the stock has grown tremendously since over the last three months and since up about 30%, 18% in the last couple of months. what i would say about netflix i think which is interesting obviously the ad supported tier just coming out, just got started in november and we're seeing some of those numbers that were positive the big thing for me on netflix and i think it's played into the stock, you know, over 60% of their revenue is generated overseas and the dollar, the dollar is down about 10% in the last quarter and i think that's played well into the stock i think what they're also trying to figure out obviously is this password sharing piece let's see how that goes because that could be a nice catalyst for the stock if they figure out how to monetize that for me i'm neutral now it's run a lot over the last three months, and i think you have to be disciplined here and potentially look at taking some off the table. we haven't done that yet, but that's really what we're looking at at this stage >> let's show that revenue growth chart one more time you bought it a couple months ago. what do you think? sticking with it or lock in the gains and get out? >> this is september i think it's important to listen to similar what we're listening to for the fed we have to listen to netflix management netflix management wants us to focus on revenue per user, they do not want us to focus on number of users per aggregate. i think it goes to profit nlt. you should look at the inflection point where they're ready to deliver that higher revenue per user and by expanding the base in this period that's where i think they're going to get that. looking at potentially taking a bit off the table, but i think this is longer-term play >> weiss, i knee you're a bridgerten fan what do you think about the stock? >> i think it's ahead of itself. i don't think it's cheap enough. i think they are the winner of the streaming wars, but so what? the streaming wars not sure anybody at the end of the day wins and i think you have to buy stocks on the dips if you buy it on the dips you can make a lot of money and it's like luluwhy i bought it it's still expensive but that's why you make money. >> you say right now you should buy disney because netflix's growth is good for disney plus >>> an upgrade for big biotech jenny owns it. we'll debate the trade and the entire sector. that's next for our call of the day. half time back in two minutes. i know the markets have gone up and down, but you're right on track to reach your goals. my ameriprise advisor helps me feel confident about my financial future. he knows me and my goals. it's not the first uncertain environment he's helped me navigate. probably won't be the last. but with his advice, i know i'm on track. the plan we created can withstand uncertainty. no wonder clients rate us 4.9 out of 5 in overall satisfaction. because advice worth listening to is advice worth talking about. ♪♪ we all have a purpose in life - a “why.” maybe it's perfecting that special place that you want to keep in the family... ...or passing down the family business... ...or giving back to the places that inspire you. no matter your purpose, at pnc private bank, we will work with you every step of the way to help you achieve it. so let us focus on the how. just tell us - what's your why? ♪♪ >>> all right, welcome back to half time. jp morgan upgrading regeneron. shares are flat right now, though, but still our call of the day. and jenny, you own it. >> we do my only beef with this upgrade is it's too late they should have upgraded it earlier. we initially added regeneron back in 2021 about $460 a share. fast forward to now $700 and change, and you need to ask yourself do you need to employ discipline and take some off the table or look ahead? i think the 2023 earnings aren't going to be spectacular. they'll kind of be flat because they have a covid antibody treatment that rolls off then they've got this macular degeneration drug coming online, another one for dermatitis, a really strong cancer pipeline, and all of those are going to pileup and really drive earnings to very high levels in 2024. so i think you can own it now but to the point of the upgrade and the share price staying flat, it might kind of do nothing for a while, because the earnings aren't great and people are shortsighted out there >> no pun intended >> thank you >> shannon, you have health care as your sector pick. you don't own this stock because you own a number of other ones how do you feel about health care in general? >> so this is a really interesting play and i think one of the things we're looking at, you know, if you look over the next cup of years the overhang for drug stocks in general has been what's happening in washington for us we were looking at multi-line, you know, drugs focused on things like imnology and oncology which i think are going to grow in importance. i think you can look at your exposure in pharma and biotech i don't think you necessarily have to go down into small cap biotech. we think a broader kind of footprint or basket for health care is going to be able to take advantage of some of the innovative therapies that are available in the market but also the demographic trends there's a lot of demographic headwinds. we like having a lot of different types of exposure within the sector. >> can i say something on that >> of course >> you know how i always say i hate sector picks, don't make me use a broad brush stroke i think this might be one of the areas for the general investing public where it's absolutely the safest way to go to use the broad brush stroke because the companies within those indices are so wildly different, and some of them are going to hit home runs and if you want to play it this really is the smart way to do it >> i think people are going to have a hard time deciphering between a biotech a pharma about 20 million americans according to the cdc have macular degeneration, so it is a broad-based drug weiss, i know that was your excuse for doing some things you do, your macular degeneration and your cataracts i know you also own moderna. what do you think about this call and the sector in eneral? >> first of all, i think it's evidence to the audience you and jenny should stay in your lane and not try to be funny. leave that to me >> i'm biting my tongue on the numbers only >> this is a high level sweater, jenny. you may not be familiar with this but this is natural farmer. >> we've got to stay on the stocks >> i regret not owning it. it's a high quality company, always has been. it's got great management, visionary management however, i looked at it more closely during covid, moderna was going to be my play and worked out very nicely and that's where i'll continue to be because it's a technology company with a much higher hit rate, almost perfect actually in terms of what they've gone through in trials to bring drugs to the market. i agree with jenny although i have higher respect for our viewing public they can discern what's a biotech versus a pharma company. it's pretty evident and other areas of health care yes, if you're going to play biotech do the xpi, do the bbi, do one of the indices because you do need a basket for risk management otherwise you could buy a merck. i don't own it i sold it. hasn't moved since i sold it health care i love it because it's recession resistant i think it'll form counter cyclical and actually make money this year. >> good call on moderna. shares up about 13% over the last year. you also have broad-based health care ownership, the list goes on what's your take on this call and the stock? >> you know, on regeneron i like the stock. i don't own it and i kind of feel the way jenny does, i think it's probably a bit late when the stock starts moving like this but in terms of this sector i think you've got to own it for -- frank, i really want to disclaim here. worries the hell out of me when i start agreeing with weiss. i want to say it to get out there. okay, look, whether it's a pharmaceutical it's health care core, these are recession defensive stocks we know the area and how the demographic in this country is music. we know the prices have been rising i think in terms of balance sheets they're fabulous, diversified. this is a place to hide and i think also benefit as stock prices recover i'm very happy i've got this core in my portfolio >> we are watching health care opportunity xlb fractionally down today up next our turn of the day. this sector headed for its worst week in just about five months the committee debates what that cod snangulbeigli and how they're playing the space. much more coming up in half time stay with us in global secure networking from comcast business, with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want... your team, ours or a mix of both... with the nation's largest ip converged network, from the most innovative company. bring on today with comcast business. powering possibilities™. [music - cover of blondie's “dreaming”] [music playing] ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪ ♪ dreaming is free. ♪ accenture, let there be change. >>> welcome back to the half time report. i'm contessa brewer. let's get to the news. goldman sachs consumer business is facing a federal reserve investigation according to "the wall street journal. the fed is looking into whether the bank used appropriate monitoring and control systems inside its marcus brand as that business grew. a spokesperson for goldman sachs says the bank does not comment on the accuracy or inaccuracy of matters relating to discussions with the federal reserve >>> former president donald trump voluntarily withdrawing his lawsuit against new york attorney general letitia james the lawsuit originally was filed in november after james filed a $250 million civil suit against trump and his family trump's lawsuit accused the new york a.g. of intimidation and harassment t-mobile says hackers accessed data from about 37 million customers. it's the second major breach in the past two years the company says hackers have obtained names, billing addresses, e-mails, phone number, birthdays and account numbers but no passwords, payment card information, or social security numbers were compromised. so, frank, mixed bag there >> certainly contessa, thank you very much. >>> let's get to our chart of the day. industrials they're down more than 4% this week and on pace for their worst week since september led lower by emerson, 3well carrier and honeywell. what's your take on the sector and specifically that pick of honeywell? >> yeah, so generally when i think about industrials they're using early cycle play and obviously that's not where we are. we're late cycle i like honeywell that's my highest conviction name, you know, in the space it's up still around 13% over the last three months, to your point down 6% year to date i think that's indicative of kind of this shift to growth early part of the year but i do think in a value oriented piece of the economy will continue to grow. for me i continue to like honeywell as well just because of their exposure to aerospace it's got a 2% dividend yield and i think as a tech enabled company in this space i think there's continued runway honeywell is a name we like here, and again this has been a shift to growth early on the year, but i still think honeywell could do well for the rest of this year. >> you're also shorting xli and a mixed bag and down about 6% year to date take us through your thinking, why short industrials? >> so first of all when it's call in the economy -- you typically buy these when the multiples are very high, up 74, but that's when you have trough earnings and the xli is a mixed bag. and break down is the largest. but you've got boeing, caterpillar, deere, et cetera. if i were jason i'd consider shorting the xli against this honeywell position if he wanted to hedge it, if he's unsure. but to me the market is still -- the industrials performed well last year, not so much this year, not terrible this year but last year they did very well, and i don't think it properly takes into account what's going to happen going forward. this should be at best a slight discount to the market because they've got the most leverage up and down to the economic cycle so that's why i'm shorting, and it helps me hedge against my long positions as well and i say it's a hedge because that way if i lose money on the trade, it's a hedge. if i make money on it, what a great bear >> two sides of the coin, i got you. you also own honeywell, but i want to talk to you about a stock. shares are up 4% year to date but still down 15% in the last year what's your take are these long-term holds or right now going to put more money in take me through because obviously the sector isn't doing great this year. >> we do think one of the trends over the next several years similar to what jim talked about on the show is free shoring here in manufacturing we don't have the skills that can really support that, and we haven't seen the training we need so i think there's a lot of facilities, a lot of factories, a lot of manufacturing facilities that need to add automation let's talk about a couple of areas that are getting momentum, defense and aerospace. i'm not surprised there's concern from an economic perspective about the cyclicality of the sector over the last couple of weeks longer-term there are some trends if you're in now are you going to benefit from that later this year into next year >> nasdaq higher today we're going to look ahead to the lyesrt of earnings that can real tt this nasdaq rally and how experts are playing it much more half time after the break. look! what's up my trade dogs? you should be listening to me. you want to be rich like me? you want to trust me on this one. [inaudible] wow! yeah! it's time to take control of your investing education. cut through the noise with best-in-class education resources that match your preferred style of learning. learn your way. not theirs. td ameritrade. where smart investors get smarter℠. all across the country, lpeople are working hard to build a better future. so we're hard at work helping them achieve financial freedom. we're proud to serve people everywhere, in investing for the retirement they envision. from the plains to the coasts, we help americans invest for their future. and help communities thrive. just look around. this digital age we're living in, it's pretty unbelievable. problem is, not everyone's fully living in it. nobody should have to take a class or fill out a medical form on public wifi with a screen the size of your hand. home internet shouldn't be a luxury. everyone should have it and now a lot more people can. so let's go. the digital age is waiting. >>> welcome back to the half time report. the nasdaq continues to outperform the market fuel by the performance of amazon and alphabet you can see all three getting a boost today from new alphabet layoffs. these three stocks make up just about a quarter of the tech index. most analysts have cut their estimates for revenue growth for azure and aws. as you can see there's expectation of a growth slow down quarter to quarter across the board. the consensus is the majority of work loads easy to move have quote-unquote migrated they've actually gained market share. the big question will investors see the results as stable or stagnant you own microsoft and alphabet >> and amazon as well. so, yes, these are great growth businesses with lots of leverage, and the growth is slowing. and as they are becoming more mature they're slowing, but i think they're going to be still core for microsoft and each of them you might look at amazon for instance and say with aws they were going to have some earlier stage companies as customers and you get in a more difficult economy and that could be more pressure overall as a long-term investor i'm not the trader right, i want to own these things for the next five, six, seven years. i'm very happen with each and every one of them particularly microsoft. i would add to it. i'm waiting for that back up the truck moment they're atting that gps and format to bing -- i think there's so much really powerful going on in this space i think these down grades and the negativity are focused on short-term things, and i'm a long-term guy. >> jenny, you also had some exposure in the space. ibm also reports next week what are your expectations >> legacy player exceeded expectations last time and also have the hybrid cloud. a lot of this talk about workload moving to the cloud, a lot of people saying i want to keep my on premise business with my cloud >> i think when you look at the valuation of ibm versus the googles and amazons, you see it trading at 14 times. then when they report earnings and talking about their cloud business even if the growth of the cloud businesses are slowing within the legacy business that's still a huge fast grower for them so at that point that starts to take up more and more share of revenues and i think ultimately drives ibm's valuation from 14sh times to 15 or 16. it'll still observe a discounted valuation compared to the peers but i don't think it's properly accounted for in the share price right now. it's a nice sneaky back doorway to play it >> i want to talk to you about palo alto named the top pick by morgan stanley they provide cyber security for the most part to cloud business. >> absolutely. and, you know, frank, i continue to like palo alto here i think cyber security is just a theme and area of space really that's not going to be slowing down whether we're in the decelerating economy, growing economy, that issue still is prevalent. but i look at the last report over the last quarter, you know, 50% eps growth, 25% revenue growth it's an expensive stock trading at 40 times and they're typically a hardware company they moved more into the cloud, and the cloud continues to grow. as it relates to the broader spectrum, i mean cloud grew so much through the pandemic. you're talking about 50% year over year numbers, some deceleration i think is just appropriate in this space. but i continue to like palo alto, i continue to like software and the cloud i still think there's a beltway and runway here. >> coming up next mike santoli joins us for his midday word plus the committee is getting ready to grade your trade. you can e-mailous or tweet us. we'll be right back. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones ♪♪ we all have a purpose in life - a “why.” maybe it's perfecting that special place that you want to keep in the family... ...or passing down the family business... ...or giving back to the places that inspire you. no matter your purpose, at pnc private bank, we will work with you every step of the way to help you achieve it. so let us focus on the how. just tell us - what's your why? ♪♪ i'm a new york hotel. i'm looking for someone who needs a weekend in the city. you hungry? yeah, i know a place. it's the city that never sleeps. but hey, if you need a last-minute spot, i got you covered. >>> all right, welcome to half time -- welcome back to half time i should say. senior markets commentator mike santoli joins us now from the new york stock exchange with his midday word. always good to see you >> frank, you too. we have a soft landing day seems like you wake up every day and the market could be in one mode or another. some relief coming from earnings reports. netflix the couraging, but i think more than that the alphabet layoffs coming along with the other big tech company layoff announcements suggests that profit margins can be defended with those companies. i would also point to ally today. financials working so i think in combination with a bunch of fed speakers and we're going to get at least one more today that are not really pushing back too hard on the idea that we get smaller quarter point rate hikes over the next month, maybe two months is just allowing the market to get a little bit of relief i would point out we're still down a percent and a half on the s&p, still between this middle zone between a break out and the recent lows. it's a hold. a row for 2023. >> you know what, to that point, mike, we were just talking earlier today about maybe the markets slowing down obviously, you can't tell that today, in your mind, with so many big earnings next week, is this kind of a pivot point for the market potentially, to take a turn either to the upside or to the downside? >> i think it's definitely a multiple for investors' attention to pivot and shift towards company-funded medals. no more fed speak after today. of course, the macro numbers matter but it is going to be about evaluating whether full-year 2023 forecasts are completely, you know, out of the zone of reality or if they look like they're more or less what we can count on that will tell us whether stocks have overshot or not, if they're too expensive at these levels with yields coming in quite a bit recently by the way, treasury yields, getting some traction here after a big decline. that also could be reassuring, believe it or not, in the short-term for equities, because that panic buying in long-term treasuries and further inversion of the yield curve actually spooked the stock market earlier this week. >> mike santoli with the midday word thanks, mike >>> all right, grade my trade is coming up next email us, askhalftime@cnbc.com or tweet us, actback after the break. ♪♪ the only thing i regret about my life was hiring local talent. if i knew about upwork. i would have hired actually talented people from all over the world. instead of talentless people from all over my house. ♪ every search you make ♪ ♪ every click you take ♪ ♪ i'll be watching you ♪ - [narrator] the internet doesn't have to be so creepy, the duckduckgo app, lets you search and browse pria blocking most trackers all forf your search history is never tracked, so it can't be shared. and when you leave search, duckduckgo helps keep companies from watching you as you brows. join tens of millions of people making the easy switch by downloading the app today. duckduckgo, privacy simplified. >>> welcome back, time for "grade my trade. jsay to bruce >> so i don't own key copper specifically, but it's got a nice bounce today. i don't know exactly what your cost basis is. obviously, if it's $16, it's done well for you. so i'll give it a "b." i prefer the investment banks here you know, the net income was down 30% year over year, but they have a nice yield of 4.8% so i think it could still could trend well i like financials period as a sector i think this is a hold for me. >> next, nicholas in walnut creek, california, with a trade for jenny. he bought 1,600 shares of slg realty at an average of $46 per share. >> you all know i'm harsh graders. i bought it initially at $63 i'll give myself an f-minus and i'll give you a "c." you know the saying, you don't need to make it up the same way you lost it, i think you can make it up the same way you lost it on this one i think sl green is really, really undervalued they had terrible earnings and slashed their dividend people equate them, but not equivalent they still have long

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j&j, bavarian, and nordic in phase iii studies. interestingly, moderna is the only one using the mrna technology here. you see pfizer and gsk using re recouple bant protein technology it could be a gigantic market. morgan stanley estimates $7 to $10 billion in adults alone for rv vaccines. and of course, these companies are also testing this in kids and in pregnant mothers to try to protect babies, which is a really important area, as well mel? >> right, meg. there's also the drug that's being co-developed by sanofi and astrazeneca for the development of rsv how does that factor in and differ from a vaccine? >> you might have multiple options in the markets if you have babies who are at high risk, who would be eligible for that, we'll have to see how the vaccine, if and when it's approved, sort of stacks up against that but you would have different options, based on different patient populations. >> meg, stick around our next guest says this validates moderna as a post-covid player, sees the stock rallying more than 40% from here.