jon fortt is live at an apple store in palo alto. jon? >> reporter: lines not as long as they would be for an iphone 1. some analysts thinking a million, a mall andillion and a for this launch weekend. more after the break. chances are, you're not made of money, so don't overpay for motorcycle insurance. geico, see how much you could save. if we want to improve our schools... ... what should we invest in? maybe new buildings? what about updated equipment? they can help, but recent research shows... ... nothing transforms schools like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so they can inspire our students. let's solve this. oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race

jon fortt is in san jose. jon?> reporter: tyler, used to be blackberry was the go ln to phone hands down. but in this era of apps and accessories, the landscape has changed a bit. i'll tell you how after the break. >>> s&p 500 up 12 1/2 points as we welcome you back to "power lunch." i believe we have some images over staten island. we just had them a moment ago. one of the hardest hit of the five boroughs of new york city and where the marathon will begin on sunday. what is your best smartphone in a disaster? jon fortt in san jose has the options. >> hey, tyler. phonewise, there are really three things to think about when calamity strikes. can you keep a phone call, can you keep tabs on the latest information and will your battery last. there's no one type of phone that's the best of all three but let me walk you through some of the trade-offs. blackberries are great at phone calling. my blackberry can get a signal where my iphone just can't. if you're in the type of emergency where you are stuck in one spot, can'

see where it goes guys. >> thank you very much, jon fortt.igns, the one thing you should do if you hit the $500 million jackpot. and then, brian is revving up the enjoys, excuse the pun, on our recovery road trip. how race cars are driving charlotte's economy. to his last, which isn't rocket science. it's just common sense. from td ameritrade. he's going to apply testosterone to his underarm. axiron, the only underarm treatment for low t, can restore testosterone levels back to normal in most men. axiron is not for use in women or anyone younger than 18. axiron can transfer to others through direct contact. women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these signs and symptoms to your doctor if they occur. tell your doctor about all medical conditions and medications. do not use if you have prostate or breast cancer. serious side effects could include increased

jon fortt with that reporting. coming up, we'll get more on cisco's earnings and we'll be joined by stephanie link, chief investment officer at thestreet.com. >>> more than 2,000 delegates have cast their votes for china's new central committee, marking the end of the week-long communist party congress, but the world will have to wait another day before we get the official word. who are the members that will make up china's most powerful group, the politburo standing committee. eunice is with us in beijing. eunice, as we look from where we are at the moment, do we have any feeling on how many members there will be in that standing committee? the implications of that and the likely makeup? >> so far, we know that it's going to be somewhere between seven and nine. that's the number that people have been throwing out there. there's been a lot of expectation that the number on the standing committee, which is currently at nine, will be trimmed down to seven, which could potentially mean that policy will be easier to pu

jon fortt has been on the conference call. jon? >> nongap eps was three cents which is in line. revenue was short. i talked to them. they are talking about it on the call about guidance which affects eps. it was a lot lower than the street expected. the reason they say is they are going to spend more to attract new high quality merchants. is that just a one quarter holiday quarter thing? they said they still expect the margins to be 25 to 30% long term. it sounds like it might be a quarter or two. finally europe giving them a lot of trouble. >> thanks for the update. let's move ton to pops and drops. chipotle down. >> a couple upgrades earlier in the week ahead of the election. now a little bit malaise hitting them again. it's mainly because of the pop off of the low off the 2.40 low. >> drop for kohl's. >> terrible day to be a retailer in the market. kohl's is no exception. >> qualcomm, a pop. >> if you get a $100 billion company that can beat the number, that's a good thing. instead of disney go with qualcomm all day long. >> drop for whole foods down 5%. >> decent quarter. fu

let's go out to jon fortt. jon? >> hey, sue. microsoft has officially announced the pricing for surface pro. that's the version of microsoft's tablet that runs an intel core i5 chip. it was anticipated that this would be higher than the surface which started at $499, $599, and indeed it is higher. it is $899 for the 64 gigabyte version. for the 128 gigabyte version, $99.99. surface pro is backwards compatible, it will run windows 7 apps and also done pen input. is sort of the cadillac version of microsoft surface. priced at a premium until tablet market. we'll have to see how it does and it doesn't arrive until 2013. >>> new positive signs on the u.s. economy to tell you about. it grew faster than expected in the third quarter. gdp expanding at an annual rate of 2.7% topping last month's estimate of 2%. our senior economics reporter steve leisman is here. what struck you about this report? i remember the day before yesterday you were saying don't expect that kind of performance in the fourth quarter. >> exactly. i'll take it. we

doubt san jose and jon fortt for breaking news. jon?sue, hp has responded to the letter that mike lynch released this morning. mike lynch being the founder and former ceo of auto mir, the software unit hp bought and said last week had a number of financial reporting issues. mike lynch challenging that in a letter this morning, saying that he rejects all allegations of impropriety in autonomy's innocence. hp put out a statement, the key passage here, we believe we have uncovered extensive evidence of a willful effort on behalf of certain former autonomy employees to inflate the underlying financial metrics of the company in order to mislead investors and potential buyers. i asked a qualifying question of hp what does on behalf of mean? they said they believe certain former employees actually misrepresented autonomy finances them don't name those employees here and in the end, say they won't engage in a back and forth with lynch but clearly this this still alive. >> reflected in hp's stock price, jon, down 1.25% switching gears a little b

jon fortt live in slows. jon? >> yeah, strange case.ee no longer has any involvement with that company which intel bought for nearly $8 billion a while back. he's apparently wanted for questioning in a murder case in belize, this according to gizmoto. victim's name was gregory fall. 52 years old. mcafee himself is 67 years old. police authorities arrested mcafee on firearms charges back in may. he's a controversial figure. there have been rumors about him engaging in drug activities that gizmoto reported based on things he's posted on message boards. these charges of course quite serious. again, he's no longer associated with mcafee security company which was purchased by intel but this is quite a puzzling and troubling case. sue? >> indeed it is, jon. thank you very much. >>> time for the power rundown with bob pisani and john carney. good to see you, guys. first up, more signs of the shale revolution and it's changing the globe and the energy landscape after a new report declares the united states will overtake saudi arabia as the wor

back to the qualcomm story, check in with jon fortt, managing the conference call. jon, what is the latest? >> i talked to qualcomm ceo paul jacobs a bit ago, also listening to the call, give you a sense about what they are saying about their business overall. their guidance, perceived, positive tone in the guidance not necessarily based on the macroenvironment. their gdp estimates still below what the cop census is out there, that they are not building in much optimism on windows rt. seeing increased demand on emerging markets, move toward smartphones and domestic market for higher-end smartphones. how that affects people's outlong on am. but all based on that, even the fiscal cliff worries, paul jacobs was telling me not so much impacting the way he thinks about his business. he says even in a worst-case scenario, he expects smartphones to continue to do well, they will be healthy too. >> thanks so much. time for pops and drops are, mothers you might have missed in today's session. kick it off with a drop for agree yum. >> missed badly at a time people were expecti

. >> jon fortt and our thanks to paul jacobs.de on qualcomm here this is one that no matter where you are in the phone market, samsung, apple, other players, htc, qualcomm has a piece of it. >> a lot of people got themselves caught trading on the wrong foot. i think a lot of folks shorted qualcomm as am was going lower, figuring apple is going down, qualcomm will follow. clearly they're much more diversified than that. i think qualcomm is on the sweet spot for their company. i think they're right smack in the middle of it. they're not impervious to the tape, but i think the valuations are reasonable. i think the stock is fine. >> they also have a press release today about this location service, which is something that -- you know, that's what facebook needs to monetize. that's what all these guys need if they're going to do that location for everything from hospitality to travel and all the rest. they make that and izat location, they announced that one today, that could be a boost as well. >>> the energy markets on high alert on

first jon fortt has the cnbc market wrap-up. >> michael, you know, lots of people seem to have takenhe day off when it comes to trading, too, as well they should to honor our veterans. take a look at the boards. the dow and nasdaq barely budged at all. the s&p up only fractionally. microsoft was down about 2% on their acknowledgment that the rollout of the surface tablet was a little on the modest side and facebook was up 4%. welcome news for that social networking giant. back after the break. [ male announcer ] humana and walmart have teamed up to bring you a low-priced medicare prescription drug plan. ♪ with a low national plan premium... ♪ ...and copays as low as one dollar... ♪ ...saving on your medicare prescriptions is easy. ♪ so you're free to focus on the things that really matter. call humana at 1-800-808-4003. or go to walmart.com for details. and facebook was up 4%. [ male announcer ] alka-seltzer plus presents the cold truth. i have a cold... i took dayquil, but i still have a runny nose. [ male announcer ] truth is, dayquil doesn't work on runny noses. what? [ male annou

>>en jon fortt joins us now. how big of a surprise move was this from intel? >> kind of a surprise. him to retire eventually but he was still a couple years away from mandatory retirement age. not only has he been a steady hand for intel, spearheading the effort that popularized wi-fi efforts, tame engineering settlements that took the heat off from feds and competitors like amd and invideo. intel's wrong bets on mobile -- the company used to license the same arkansas texture that apple, qualcomm and others used to design their chips. but a year in his teen your intel sold that business to marvell. intel's rationale believed its own 86 architecture would be better than the arm architecture. if he had kept the x-scale business and developed that and both x-86, qualcomm may not be as dominant as it is now. >> lots of things to consider there. is this a sign you should stay away from investing in intel? edward snyder, co-founder of charter equity research. ed, is this very un-intel and does it suggest there might be something fishy going on? >> yeah, it is very un-intel. it is usually

jon fortt is in san jose looking at the models, the niche they're going for and some of the pros and blets. jon? >> reporter: tyler, lots to cover. lots of tablets, so many i can't get through them all. but let's look at some of the big ones. first, ipads. three models mainly. the mini at $329, ipad 2 at $399, and the fourth generation, $499. they want everybody. pros, apple has the most apps. cons, apple has the most expensive tablet lineup and the screen resolution on the mini isn't as good as cheaper seven-inch tablets. next, kindle's fire and fire hd. fire had a pretty amazing $129 today only. the seven-inch hd at $199 -- the 8.9-inch hd, $299. amazon is targeting gamers with these tablets and some media consumers but the truth is they just don't have many apps available compared to apple's lineup. google's nexus tablets, two models a seven inches for $199 and 10 inches for $399. i'd include the samsung tablets in this general grouping, too, as mainstream android tablets. more apps available but still not as many as apple. these are good for consumers and individuals doing work us

. >>> i'm jon fortt with your cnbc market wrap.ets trade sideways with the dow, s&p, and nasdaq moving less than a point each. facebook was a winner today after losing ground earlier. it ended nearly 5% higher. apple shares lost about $4 each. the stock is down now more than 23% from its mid september high. and microsoft fell about 2% after ceo steve balmer acknowledged distribution of its surface tablet was modest for its initial launch. that's it from cnbc, first in business worldwide. now back to "hardball." ♪ >>> welcome back to "hardball." over the past year we've shown you scores of political ads running the gamut from morgan free ann's dulcet tones at the end of the election cycle to the ominous voices warning of newt gingrich and rick perry presidents during the president. one ad seems to have a lasting and damaging effect on mitt romney's chances. that ad a low budget spot produced for the obama super pac priorities usa framed the narrative of mitt romney has a heartless corporate tycoon without a care for the working man.

. >>> jon fortt covers technology, already looking at the short list. >> first we've got to take a look at intel's general situation and then take a look at some of the ceo candidates. take a look at what intel's challenges are, mainly mobility. smartphones and tab pletlets. they've fallen behind in that arena. they not only need to build in more wireless features on their mobile chips, also get low power capabilities into those, and not only that, tablets. you look at microsoft's new surface tablets, it has ane individuan nvidia chip, not intel. if you want to continue along intel's current path but maybe execute a little bit faster you go with these guys. if you want more of an engineering strategy, maybe switch the strategy up a bit, rene james runs sof wear and dadi perlmutter. intel is such a special organization, so many secrets, so unique in the way its run, an outside candidate would need a year just to find the bathroom. >> i'll bet they have more than one, jon! >>> tomorrow on "power lunch," speaking of intel, the former chairman and ceo of intel craig barrett will join us. fi

let's get to jon fortt with the latest on cisco's conference call. >> a few things for you.ohn chambers got done talking about china saying they will weather the bumps in the market. they're committed to china and the bumps in the market are factored into their guidance. he also talked about collaboration. software saying that during tough economic times, customers tend to take their foot off the gas with collaboration. an explanation for why that isn't growing stronger. said mid single digits is probably a good core, a good target for core router growth. finally, he talked about services led sales saying that's going to be an increasing part of cisco's growth strategy going forward. services as a percentage of revenue will grow over the next three to five years and panelists will hear more about that at the analyst meeting next month. >> jon, thanks for that update out of silicon valley. b. k., like cisco here? >> as a value play i'm not terribly excited about it. john cahamberchambers, we had t conversation about john chambers that we did about microsoft and people were sa

jon fortt has more. >> no bombshells from mayer last night, but she did talk about what yahoo will and noted that yahoo shares are up, and emphasized mobile as an area where the company needs to gain ground. listen. >> i think that one of the really important things for yahoo strategy moving forward is mobile. we have a terrific set of assets on the web. they were all the things that people want to do on their mobile phones. >> reporter: the trouble here, is that yahoo has been getting locked out of the mobile app. space. mail is one of the yahoo's most important web franchises, but that doesn't translate on smartphones. so in properties like sports, yahoo does supply data to apple's siri, for example in cat groirs like sports and finance, it ravens eight and 16th, but that said, yahoo is not going to try to do -- bun thing she had she won't touch is maps. i've done maps in my former life. it's very expensive, very hard to do well. apple is finding that out. so we're not going to do maps, right? >> she also quoted vince lombardi talking about her priorities. she said her priorities are

cnbc's jon fortt joins us from san jose.on, good morning. >> i can't hear him. >> no, and i couldn't read his lips. i tried. did you see me trying to -- i have no idea what he said. he was talking about microsoft, that's all i know. normally we'd want to check him before i toss to him, just to see if you could hear him, that's just something i would try. maybe google just pulled the plug on that, i'm not sure. are they still rivals? they don't like each other. >> it could be apple, too. let's talk about jcpenney, the sales plunged at jcpenney hitting the company hard amid a transfor transformation by ceo ron johnson. bill ackman is giving the turnaround several years, bill ackman, founding and ceo of pershing square capital management, on the board of jcpenney, handpicked ron johnson and we'll talk about a column i wrote i think you're relatively disagreeing with the premise of the column which is to say this is a company that is struggling and at least in my estimation and by the way not just mine but i think a number of an

jon fortt has a review. >> hp has lost about half of its market value so far this year and later this morning, we'll get one more hint at how close meg whitman is to turning things around. wall street's looking for $30.45 billion in revenue and 1.14 crepts in nongaap cps, a 5% drop from a year ago in revenue. a low bar, but not clear hp can clear it. there is a weak corporate pc environment and hp is not making a lot of head way in the networking business. whitman will need a strong showing from services and prinding to make wall street happy. among the big questions i have these earnings results are what will the gaap earnings look like this quarter. last quarter hp turned in a staggering gaap loss of $4.49 a share. much on write donees. s also what kind of cash will they generate from operation and how are the inventory levels trending. hp generated 2.48 and days of inventory were up. stats will tell the story of hp's health better than the nongaap numbers. which brings us to the 20 around 2013. whitman said it would be a fix and rebuild year in a worsening macroeconomic environment

past, but now with tablets starting to democrat nature the landscape, the world has changed and jon fortt reports companies are quickly learn to go adapt. >> no secret that the pc business itself has been suffering. it was down 8% worldwide in q3, and recent earnings reports from hp, dell and others reflected that upheaval. but the impact goes far deeper than that in the pc era, a whole industry full of pc accessory makers benefited from every computer sale. shoppers bought printers and ink for example. now momentum is shifting to tablets. makers will build 85 million tablets this year with three of every four coming from apple. that effect will shave 9% off pc unit growth. that's actually good news for start ups like ever note. that business gets the holiday boost pc accessory makers once enjoyed. the first weeks of january he told me are ever note's busiest period as people download productivity, apps like his for their new tablets and smartphones. to prepare for the surge, he's upgraded ever note's data center to handle hundreds of millions of users and also pushing his team to deliver