i'm jon fortt.ith me here live in las vegas at the consumer electronic show, sanjay mehrotra, the ceo of micron sanjay, always great to have you. apple and their warning, samsung and its warning. we've got issues in the smartphone market, we've got issues in data center, with memory, as well. yet your stock is up better than 5.5% this morning. i wonder if this is because investors are starting to realize that what you warned about in december isn't a micron-specific issue, perhaps it's more of a macro, industry-wide issue. is that continuing to be your read >> that's absolutely right we announced our earnings december 20th. and at that time, we were one of the first ones to come out and talk about some of the challenges related to inventory jump adjustment in cloud, in inventory as well as on the graphics markets we also talked about cpu shortages impacting demand in the near term. and we also talked about smartphone unit weakness on the high end so these are some of the factors, confluence of facto

working to make things simple, easy and awesome. >>> let's get back out to vegas this morning and jon forttalked with the head of amazon voice earlier. jon. >> carl, pete thompson is head of anlexa voice services. he is looking to different companies to build that into different products i asked beyond the home speaker market, where does he want to make an impact here is what he said. >> in the momehome, is the biggt use case as well as timers and alarms people love to use timers for cooking. it is something we didn't expect we spent a lot of time making that useful and powerful for people outside of the home, we are seeing obviously in cars that will be the big next wave we're investing heavily in the auto category. >> why in cars >> people want to be able to -- hands free works well in the car. secondly, you need information local to where you are or you remember things at the moment and can't write it down. those are times where a voice assistant could be helpful >> we also talked about privacy. of course, some of the concerns of alexa sending messages to place where is they shouldn't go

want to bring in "squawk alley's" jon fortt you followed apple for an awfully long time and look at tech broadly what do you make of what apple had to say tonight >> there are very few moments like this we've seen with apple. i think back to 2001/2000, when they had a bad quarter and broader macro times when they've had issues this. is different this is a $7 billion top line miss and we're focusing a lot on greater china. there's good reason for that greater china at just shy of 20% of apple's revenue, if you look back a year ago, q1, that was about $18 billion. this doesn't sound like a 40% miss just in greater china tim cook and apple also pointing to other broader issues, he talked about the lack of subsidies for phones that's not new i mean, carriers in developed markets haven't been doing subsidies in the old style for years now but apple with the x line and max xs and r and they're more expensive that combined with a strong dollar and combined with customers trying to extend the useful life of phones by replacing the batteries instead of upgrading seems to be creating kind of this

you'll all of this jon fortt and ed lee are standing by. guy, thank you both for being here what jumps out to you about the comments from tim cook >> i think only way apple has gotten where it is is by having certain core belief that is aren't short term. they believe in the power of design of integrated design, hardware, software, services they believe in having a loyal tus base and that having that customer base gives them p peripherpe permission to sell them on industrial services and innovate once they figure out that customer's problems. so even though there might be either short term or structural problems with certain existing apple businesses, because apple thinks that way and because they still fundamentally have that skillset -- remember nobody beat apple. it is not like samsung is stealing market share. they think that they still have a lot more story to tell >> and if anything in the last 24 hour, we've learned more about the maturity of the smartphone market. we've even heard about it from lg so can apple transform themselves i

i am carl quintanilla with morgan brennan, jon fortt at post 9 of the new york stock exchange a littleflix reference there. we're going to begin with that name, beating the street on the bottom line, falling short on the top, dragging shares lower the streaming service saw domestic and international subs exceeding estimates. for more on that mixed quarter, bring in justin patterson and matthew thornton good to see you both >> good morning. >> quite a few wrinkles here we know about the runup going into the print, and given action today, investors seem to have sniffed out a lot of what we got in the report. what did you think >> i think wrinkles is an interesting term, let's be fair. strong move, year to date, and the wrinkle is transitory. the operating margin weakness for q 1 is a function of fx more than anything else, as you get benefit of the price increase rolling through the second half, and usually you see natural margin expansion and revenue acceleration we like what we saw, we would be buying here. >> that's the bull case. we have been asking discussions how we judge from this

i'm carl quintanilla with morgan brennan and jon fortt at post nine of the new york stock exchange bigay today, markets rallying this morning with the dow inching closer to getting out of correction territory all the major indexes sitting at their highest levels in a month. tech sector surging once again the nasdaq is up a around 14% since christmas, as you know joining us this morning, ben swi swindburn is head of media research our mike santoli joins us on set, as well ben, let me start with you because you've got f.a.n.g. basically up 20% from those christmas lows, and we've got netflix tomorrow how much of this is going into the earnings season with too much optimism, or maybe, not enough >> well, i mean, i think things got a little bit out of hand in the fourth quarter, as we saw growth sell off tremendously, particularly in december we put out a piece on netfli last week. we remain establish on the stock. obviously, their decision to raise prices, i think really reinforce ouce our view this is year free cash flow burn will peak and that becomes the next piece of story for the sto

joining me are jon fortt, contessa brewer and frank holland. let's talk some khashoggi.p is harley-davidson taking today down more than 7 percent after weak fourth quarter results and they expect the rest of 2019 to be challenging. they have declining sales especially in the u.s. they are not i guess cool? >> i don't know if it is not cool, but the average harley buyer is a man in his 50s that make 90 k or more. >> are the younger on electric scooters >> harley will have the same problem that carmakers will encounter, why do you need to get your driver's license if you have uber to get you around. if they see motorcycle as a form of transportation and not a lifestyle hobby choice and plus boomers bless their hearts are getting old and a lot will get too old to ride motorcycles. at some point you have to age out of that kind of -- >> you have to be able to grow a beard first. so the millennials should be good with that but they are actually falling off less internationally which is an interesting -- they were getting in trouble with the president remember are for not buil

"squawk alley" is live ♪ ♪ >>> good wednesday morning i'm jon fortt.h me, morgan brennan and david faber. carl quintanilla is off. we begin with tech stocks mostly in the red again amidst another market sell-off to start 2019, although we're well off the lows major averages were flirting with their worst first day of trading in a new year since 1983 but they have recovered a bit. the nasdaq's four-day win streak still in jeopardy, hovering just above what some call bear market territory, 20% off the recent highs. tech is today's worst performer so far so with faang stocks a mixed bag, which names in tech should investors be looking to for value as we kick off the new year and is today's action a buying opportunity to take advantage of anthony and dick are both with us now good morning, guys, happy new year. >> good morning. >> happy new year. >> happy new year. >> anthony, i want to start off and just talk about apple in particular that's a stock, and i want to kind of -- >> i actually don't cover apple, i just want to mention that. >> i know you don't

jon fortt is there and joining us now. >> what is this?t i was standing on before actually one of those is powering the back of this gokart it's segue's 9 bot go cart pretty cool. security was on me pretty quick when they saw what i was trying to do. we took it outside now, beyond that, of course, we not just having fun with gadgets. we are also talking to folks like ibm's jenny and she just a couple of hours ago talked about artificial intelligence, why that is so important to ibm's future also, talked about the new advances they're making in making it conversational and useful for business. >> what it is able to do is comprehension. speak to for minutes and minutes and it's able to actually understand what you're saying. it's a technology to go through, understand our arguments, their voracity, how many people feel a certain way and build the pro and the con case and for a business, right? >> reporter: so beyond that, we have got mercedes. diamler here introducing electronic vehicles, autonomous technology. ces, more than a place for tvs

don't do business without it. >>> qualcomm earning just released and jon fortt just off the phone withs us thousan now. >> and yeah, a quick rundown of what they said on china and the global market for smartphones, they are seeing broad based weakness china the biggest contributor. and some slowdown in developed economies as well. and they continue to expect hand sets in 2019 to be pretty flat with '18 but the average selling price is higher, at least for them for the chips that they are selling their higher end chips so that is helping revenue and profit even though the units aren't as strong on 5 g, they still expect that to ramp in the last fiscal quarter of '19, but a significant contributor in 2020. and then they have an interim agreement with huawei, and that did help and they said they were pleased with the way that the ftc afrktafrk arguments went in court. we'll see how that goes. >> shares up a little more than 2% jon, thank you >>> shares of tesla trading slightly lower after mixed 40s quarter earnings >> and gabe and joseph, if i start with the eps, i guess another profitab

jon fortt is live in las vegas from ces a lot more from jon in just a few mo

i amcarl quintanilla with morgan brennan and jon fortt at the new york stock exchange.ews today out of netflix, raising prices for u.s. subs as much as 18% effective immediately for new users. the biggest increase since they launched the service 12 years ago. stock is moving higher the most popular plan with hd streaming on two devices at a time, a hike to 13 mark mahaney and math thornton are on the phone with us mark, we talked about something like this happening a long time. what does it mean now that it is finally here >> this company is flexing its pricing muscles. this is the fourth time they've done this. most recently did it at the end of '17 you have the numbers right, about mid teens percentage, 15% increase in pricing. what it allows them to do is take that to the bottom line, price increase is pure profit, or better fund, better finance the content obligations. so just to put context around all of this, if this price increase successfully goes through, you're talking about a billion in incremental revenue and profit to netflix next year sus just in the u.s.

i am carl quintanilla with morgan brennan and jon fortt we will begin with markets the first full tradingof the year, kicking off with major averages mixed after a volatile week that ended with a big rally. dow and s&p closed up. tech stocks sparked the rebound. have stocks reached a bottom or is more volatility ahead good morning i wonder if the action friday, the tone from the fed, some m and a, levels today are making you feel more constructive or not? >> a bit more. honestly, we remain in cautious stance we're concerned about two main issues one is around peak earnings, renormalization of earnings that many people have talked about and the other is as you know double line that rates will continue to drift up we're worried about pressure that will place on multiples >> the relief we're sensing now with rates you believe is -- >> i think so. a lot of pressures that we see in terms of the versupply, the deficit spending, et cetera, that will continue to put upward pressure on rates. i think that's something that you need to pay attention to as an equity holder when you think about how se

very interesting partnership, jon fortt. > ext we'll take a look at the biggest stocks making moves after bank starts with looking at something old, and saying, "really?" so capital one is building something completely new. capital one cafes. inviting places with people here to help you, not sell you. and savings and checking accounts with no fees or minimums. because that's how it should be. you can open one from right here or anywhere in 5 minutes. seriously, 5 minutes... this is banking reimagined. what's in your wallet? his family. his steinway, which met a burst pipe. so grant met his insurance: you are caller number 12. which didn't quite cover the steinway. but what if he'd met pure insurance? owned by members. he'd have met: lisa, your member advocate. who'd introduce him to gustav: leave it to me. a temporary address, temporary ivory, and help him get tickets to the mozart festival. excuse me, grant likes beethoven! uh, the beethoven festival. pure. love your insurance. >>> let's check in on some headlines and moves after hours. united continental getting a big boost after beatin

the consumer tranelectronics show how about a $1400 skateboard there's serious business too and jon fortt is standing by with the ceo of ibm jon. >> kelly, thanks and there's some fun and wow stuff with ibm too quantum computer, also some new stuff and ideas around a.i. and the weather. the ceo of ibm, thanks for sitting down with me just after you got off the stage after delivering the keynote. >> thank you, great to be here. >> news out of washington, ibm is one of the top companies as far as federal government contracts, about a billion dollars a year you tend to get in terms of that so i'm wondering at what point in terms of length on this shutdown, at what point does it start to have an impact on businesses like ibm that do business with the government >> i think first a couple of points on that we've done work with the federal government for a very long time so we are accustomed to work through these things so we're here and ready to go. but as i was mentioning to you earlier, i think the government when -- they have done some good planning not everything, as you know, shuts down so

i am carl quintanilla with jon fortt at post 9. morgan is off.start with facebook a big beat after a beat on revenue and earnings julia boorstin talked to sheryl sandberg and joins us with more on the quarter and highlights from the interview hey, julia >> carl, facebook having the best day since january of 2016 shares are now up 13%. it is tracking for the best month since july, 2013 facebook earnings come after another scandal, apple accusing facebook of clear breach of policy policies, banning an app that paid users to track mobile activity >> in this case, people that chose to participate in this program did, but we definitely have work to do and we've done it, we're going to continue to do it. as soon as we realized we weren't in kplienls with rules on that platform we pulled it. the important thing is people involved in the research project knew they were involved and consented. >> apple also pulled the plug on a number of internal apps used by facebook employees. facebook says it is working with apple to resolve the issue amid all the scan

i am carl quintanilla with morgan brennan, jon fortt at post 9 apple shares are still reacting to newshone price cuts in china, and netflix shares down ahead of earnings later this week amazon is in focus as the bezos divorce story unfolds. mark mahaney is with us, and dan ives and tom forte good morning to you all. let's do netflix given the run up since christmas eve, are we coming in too high in earnings season >> no, i don't think so. i'm more struck by instead of the runup, the run-down the last couple of months this is one of the most dislocated of large cap internets, this and facebook we had numbers off the september quarter that went up we think the outlook is positive for this year. i know there's a lot of overhang with the competitive ott launches, apple, at&t, time warner, disney but we think netflix can power through it, add close to the same number of new subs in '19 as '18 if that's true, we think the stock can continue to rally. >> pose the same question to you. given it is the first big faang to report, to what degree does it set a tone for the quarter? >> generally i

"squawk alley" is live ♪ ♪ morgan brennan, jon fortt at the new york stock exchange.p, breaking data on eia inventory. leslie picker has that >> hey, carl that was delayed a day by the monday holiday oil inventory shows a build of 8 million barrels compared with estimates of 750,000 barrel drop gasoline inventory up 4.1 billion barrels con sense us called for a build of 3.1 million barrels. gas spiking up 3% on that news, natural gas. >> thank you for that. >>> moving to the big story, wilbur ross telling cnbc that the u.s. is miles and miles from any trade deal with china. take a listen. >> there's been a lot of an ' s anticipation, but we're miles and miles from getting a resolution, and frankly that shouldn't be too surprising. trade is very complicated. there are lots of issues, and structural reforms that we really think are needed. >> and this as goldman, sachs ceo david solomon sends a warning that chances of recession in the u.s. next year are about 50/50. joining us, u.s. investment strategist at and shawn matthews, capital investment founder. thank you for b

i am carl quintanilla with morgan brennan and jon fortt we are awaiting comments from the president athe pentagon regarding national defense we're going to bring those to you as soon as they begin. meantime, we'll start with tech names. netflix reports tonight after the bell it has been on a tear lately, up more than 50% since christmas, leading the faang basket higher. the tech sector is off the recent high in october for more on where investors should look for value in tech, good to have you back. >> thanks for having me. >> what a crazy december and run up into the middle of january. which better reflects mood >> it is funny, you look at last year, markets were down 6%, nasdaq down 4%, tech down 2% if you look at the full year. you think about heading into this year, you had a strong ipo backlog last year, best record since 2014 you had tremendous m and a, best since 2015 before that, couple years before that, so you had a strong backdrop investors, you turn it to investors, they're looking for that alpha you look at the average tech ipo, they have return over 30% by playing in ipos

i'm jon fortt with sarah brennan. carl is on assignment. we start with apple.he stock moving higher after reporting quarterly revenue boot at $84.3 billion more important, guidance that was a lot better than the street feared that's above lower wall street estimates. apple saying all of the decline, well, in a way, was driven by performance in china, where the company saw a near $5 billion loss in revenue last year. issues in other areas were from a revenue perspective. a lot of that can be explained by greater china joining us now to discuss, wedgwood cio david rolfe as well as bmo capital managing director and senior analyst, tim long good morning, guys tim, is this all about not as bad as feared? is it about the services number, which is also pretty strong. other data they gave 5% is a pretty nice bump >> yeah, it's pretty good. i'm a little bit surprised by, we've seen a lot of technology companies have bounces like this, particularly semiconductors and cyclical type of companies, so it applies to me that people think the worst is over. but the focus might

i am jon fortt with me, morgan brennan, sara eisen.l is onassignment we begin with nvidia getting crushed after lowering guidance on q4 revenue, citing weakness in gaming and data center divisions. the ceo jenson wong saying q4 was an extraordinary, unusually turbulent and disappointing quarter, pointing to china specifically on that one the stock is currently down almost 13% bob pisani is back with us to talk about that. bob? >> what we're doing is lowering the global growth expectations for earnings that's not priced in now markets are dealing with three big issues first, central banks and how much they're easing into dovish positions, china trade talks, and the big issue for today, slower global growth, not just in china but europe where numbers have been poor the last few months nvidia's warning was prompted by declining revenue in china and taiwan the two of them together makeup 50% of their revenue u.s. is only 13% of their revenue. caterpillar is more diversified, but blamed tariffs for higher steel cost as a factor and slowdown

gold corp shareholders will own one-third of the new company >>> let's send it over now to jon forttley." >> good morning, david janet yellen was talking retail this morning, a kind of shaky start to the year, depending how you look at it impact of the government 'lha ialcongpact of amazon wel vet l mi up on "squawk alley. >>> welcome back to "squawk on the street." stocks are lower off the worst levels of the morning. 9 of 11 trading in negative territory. let's drill down into one of those big underperformers. a number of ship names pushing that sector to the down side you have corvo, and others, with consistent concern on chips. they downgraded shares, saying the market hasn't fully priced in competitive hurdles the company faces. those shares down by 8%. we'll keep an eye on other shares as well david, send it back to you guys at the stock exchange. >> all right i will take it thank you, dom. >>> "squawk alley" is just moments away, but first, sara, what is coming up on "closing bell" besides me, of course? >> right, you're going to stay with the reporting on pg&e we have the ceo

it's time for rapid fire here with their takes is courtney reagan, jon fortt, and making his debut frank no pressure, frank job less claim is the lowest than 1969. that had larry kudlow saying the jobs report was up significantly. the claims don't include government workers but it seems to point to a strong economy >> overall, yeah it also doesn't include a few states bottom line, strong economy. yes there are discouraged workers out there but at least people aren't getting laid off >> exactly again, we were talking about this yesterday, but there's a difference between when you don't get the data because of the shutdown, you are relying on these anecdotes. but it doesn't seem like the news flow is that bad. >> not at all. excuse me, courtney. we're also seeing wage growth which is good for consumer spending it's all around a sing o cyclical thing that's helping everybody. >> yeah. so i'm hoping this tight labor market because it seems to be such a mystery continues to push wage growth higher i think that's really important. even just for morale for employees. walmart keeps moving up the

i am jon fortt at post 9, morgan brennan and sara eisen carl has the day off we begin this morning with apple. stock plummeting after the company announced holiday quarterly revenue in a letter to investors saying i think sales were weaker than expected, particularly in greater china. goldman, sachs, rod hall, sits down with us after he cut the apple price target first, josh lipton had the big interview of the day and exclusive with tim cook yesterday. he joins us now with highlights. josh >> jon, i sat down with tim cook he explained why his company slashed revenue guidance it was because of the iphone cook pointed his finger at china. >> as we look at what's going on in china, it is clear that the economy began to slow there for the second half. and what i believe to be the case is the trade tensions between the united states and china put additional pressure on their economy. as we saw as the quarter went on, things like traffic in our retail stores, traffic in channel partner stores, the reports of the smart phone industry contracting, particularly bad in november, i haven't seen th

. >>> let's send it over to jon fortt with a look at what's coming up on "squawk alley." >> happy newe of insights here. the market did take a beating at the end of 2018, but don't call it a bear market, and also if history is any guide, the major indices are almost guaranteed to end the year higher. who says that? ngermaetellan, number one lo-tm rk timer he's coming up on "squawk alley. >>> welcome back to "squawk on the street." i'm dominic chu. stocks well off their lows mostly in negative territory but energy is the outperformer today. gains are being led by pioneer, also apache and cabot oil and gas. big trade to watch here, guys. i'll send it back downtown to you. >> outperforming after being the biggest loser of 2018. dom, thanks. coming up, the final hour of trading for the first day of 2019, the final hour has been crazy. will the big swings we've seen in the last hour carry over into the new year >>> plus we'll have a bull/bear debate on tesla. the stock today is plunging on those disappointing q4 deliveries we'll see if this is the year tulyakhort sellers on tesla acal me t

now let's send it over to jon fortt with a look at what's coming up on "squawk alley". >> jon >> reporteriven us a fresh read into the state of the consumer. but nordstrom, that wasn't good, similar to my'acs. we'll take a look at all of that and the implications for tech, coming up on "squawk alley." to. lease the 2019 rx350 for $449 a month for 36 months. experience amazing at your lexus dealer. >>> welcome back to "squawk on the street." i'm dominic chu. stocks higher, but off of their best levels of the morning, a number of sectors are hovering right pander break-even with the s&p 500 less than 1% away from exiting that 10% pullback territory. material stocks, notable out-performer, rebounding from yesterday's losses, which were driven primarily by that profit warning from parent company, sherwin williams with today's gains, material sectors now trading out of that bear market territory range, but it's still down about 19% from its highs last year. among the groups leading the group higher, newmont mining, ppg industries, freeport mcmoran and nucor among the groups to watch. >> thank

i am carl quintanilla with morgan brennan and jon fortt we are awaiting comments from the president at defense we're going to bring those to you as soon as they begin. meantime, we'll start with tech names. netflix reports tonight after the bell it has been on a tear lately, up more than 50% since christmas, leading the faang basket

jon fortt, ed lee. >> i made it to the desk. >> ross, dan morgan, ashley carman mike santoli, as wellsitive long-term shareholder of the stock and you think tim cook should be out is that right? >> yeah. you know, i think if you're going to be a services company you need a services ceo. you have got a product ceo i was very disappointed at the store yesterday. it's beautiful and products. you can't break down iphone sales and the things and say you're a services company and walk in the store and can't find a services to buy anywhere or anything to learn about services and you go into the amazon store and filled with amazon services and ito. the issue i have with tim is i think he's done a wonderful job in the tenure keeping apple where it needs to be within this range. but as far as doing anything that's going to propel apple over the next decade he has done this and not willing to make the difficult decisions to take risk and i've heard things like he's making content decisions like with television and it's similar to me like, you know, going into a farm and trying to pick the right

. >>> jon fortt is back from las vegas. he has a look at what's coming up on "squawk alley. jon?ning. ces wasn't just about devices, it was about platforms chips were a big part of that. we'll talk to lisa sue and she's t sged about what she brought toheta yesterday and competitor action. that's coming up on "squawk alley. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today. >>> sawyformer vice chair of the federal reserve don cohen will be here to react to the powell speech and the other speakers we heard from he was number two under ben bernanke, important voice on that and how the markets are taking it. >> looking forward to it >>> shares of american airlines have been tumbling this morning after the largest u.s. airline cut its profit forecast. we're joined by phil lebeau with a brea

i am carl quintanilla with jon fortt at post 9. morgan i

. >>> let's go to jon fortt. he is in vegas at ces.we have you covered from all angles verizon ceo is with us to talk about the networks and 5g. we are talking trade and more. we have the head of voice from exazon all that and more coming up on "squawk alley. on. more than half of employees across the country bring financial stress to work. if you're stressed out financially at home, you're going to be too worried to be able to do a good job. i want to be able to offer all of the benefits that keep them satisfied. it is the people that is really the only asset that you have. put your employees on a path to financial wellness with prudential. bring your challenges. ♪ acan echo throughout ane entire community.nge that's why we proudly support, invest and volunteer in communities like yours. because the changes we make today... can you hear me? ...shape the possibilities of tomorrow. u.s. bank the power of possible. >>> welcome back to "squawk on the street." stocks off the best levels of the day. still higher and around flat for the s&p

. >>> let's get to jon fortt for a look at what's coming up on "squawk alley. >> hey, carl, the consumerk it off, apple is putting itunes on samsung tvs. this is about more than one piece of software or one product, it is about the ecosystems that are huge in the world. going to tell u yowhy that's important, what investors should look out for coming up on "squawk alley. >>> welcome back to "squawk on the street." i am dominic chu at the highs of the session, with major indexes trading to the up side, most sectors are in the green so far in positive territory. consumer discretionary standing out as one of the outperformers of 2% so far retailers like dollar tree, gap, best buy some of the best performing names mattel extending gains, up more than 7%, showing a strong start to 2019. up 12% since the first day of the year i will send it back downtown to you guys, sara, at the exchange. >> all right thank you. >>> trade talks beginning again between china and the u.s. this week let's get to ylan mui for more good morning >> good morning. the first day of trade talks wrapped up, they go on f

. >>> let's send it to jon fortt on the floor with a look at what's coming up on "squawk alley. >> itonductors we will talk to the founder of cypress semiconductor what's ahead for nvidia and the whole space. that's coming up on "squawk alley. with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. fidelity. ♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest. >>> "squawk alley" is up next. apple getting ready to report earnings and don't miss instant reaction and analysis to apple numbers. that's coming up later today on "closing bell. meantime, the dow is off highs of the session, up only nine points, having shed about 100 points the nasdaq and s&p are lower unay ted "squawk alley" starts in just a moment the path to prosperity is not easy for everyone. half of small businesses fail within 5 years. and more people than ever struggle with debt. intuit is here to change this story... with giant solutions like turbotax, qu

we'll see you in a bit want to bring in jon fortt who has covered apple for a long time when was theme apple warned on guidance >> good question i don't have that in front of me this is a big moment because tim cook sounded like he was an apple bear outlining all the things that people have been worried about. particularly on the upgrade issue. we have seen headlines in november/december about potentially slow iphone xr sales,apple appearing to discounts. but the fact that after the holiday season has passed, we have the first trading day of the new year, and we get this 9% revenue miss from apple, tim cook saying that he is still optimistic, it really leaves the question of where does equilibrium here, how long will it take apple to get the handle on the demand picture on what really is underlying this issue. part of what is supposed to happen with apple, they have the sophisticated supply chain, retail stores where they have day by day indications on what traffic is unusual to see a company like that that has such a 360 degree view of both product and customer blindsided like this.

back to squa"squawk on the stre" >> let's now sent it over to jon fortt with a look at what's comingple's up almost 5% this morning after earnings, part of that based on an outlook that's not as bad as feared. part of that is because china isn't looking as bad as feared we'll have more onpp ale and china coming up on "squawk alley. i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪ >>> welcome back to "squawk on the street." i'm dominic chu. stocks moving higher today on the back of those boeing and apple earnings, which is having an effect on the dow but a notable sector laggard is communications services

morning microsoft and walgreens boots alliance it covers everything from cloud to microsoft 365 our jon fortt sound out of nadella. >> i talked to him and walgreens boots alliance ceo stefano about this deal. it's seven years and it includes first moving walgreens boots alliance from their legacy systems to the cloud and then building on top of that. we should see some more digital kiosks in walgreens stores they are really trying to bring a lot of things together and put the consumer in charge of data, they say, digitize the health experience i talked to them about exactly how this deal came together. take a listen. >> one year ago, we started to discuss seriously and to analyze what we could do together. and it has been quite a smooth process overall. >> i think that's right. it started three years ago with a conversation around the vision and then as steffano described, they went through a rigorous process of finding the right partner who can bring both world class technology, but also that trust in order to be able to help them build this ecosystem because ultimately this is about broad p

. >>> time to send it to jon fortt for a look at what's coming up on "squawk alley." >> hey, david.ek what are the implications, fallout perhaps for cloud providers since data center has en cce for them. we dig into that coming up on "squawk alley. the latest innovation from xfinity isn't just a store. it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome. >>> welcome back to "squawk on the street." i am dominic chu stocks are lower but off the worst lows revenue warnings from caterpillar and nvidia coming in let's drill into another underperforming group, energy stocks on pace for the worst day in a week following a sharp drop in oil prices, supply concerns, u.s. companies adding rigs the first time this year signaling crude could fall further in terms of capacity among names leading energy, hall burt ton and others. back to you at the new yor

. >>> now it is time to send it to jon fortt for a look at what's coming up on "squawk alley." >> good it is kind of stark thinking about earnings, particularly in tech by the time we're at friday next week, we'll be done with the first half of january. given everything going on with the consumer and apple, other stocks, how should you be sion ahead of earnings we'll talk about it coming up on "squawk alley. the engine management systems coordinate with autonomous vehicles. financial data, so now we can predict the future. our new flexible propeller design. by collaborating with public schools on a program called p-tech, ibm is helping students build the skills they'll need for tomorrow. revolutionizing. aerospace industry. it's an entirely sustainable approach. any questions? when you rethink education, everyone can put smart to work. (indistthat was awful.tering) why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free

there is much happening in that segment, little carry over from the excellent work that jon fortt didogy he says the last decade was america's decade now we're facing more competition. ian bremmer has been talking about how you're kind of seeing technology split where you have the americans and the europeans, and then the chinese and the markets that cater to them that are breaking apart and you won't see the sort of one world domination we have seen in the past is that something you think about long-term or concerns you long-term? >> it does for 5g. the chinese are heading to 5g. i would like to see apple resolve something with qualcomm. talked about intel and 5g last night. i think we can play catch-up to 5g, but we do not want the chinese to have a year ahead of us we do not want that as a people in terms of technology leadership 5g is is the next generation can't go to the chinese before us. >> all right, jim. there are three other games too. they're all pretty good. i think it is going to be -- >> we're taking the red eye back to see it. we changed our plans i said i want to go t