and that klas has been suffering _ in court. .. and that klas has been suffering ever- in court...court... and that klas has| been suffering ever since and probably will for the rest of their lives. inequality did apologise. did that mean anything to your the families? two, i don't think so, i think he did what the attorneys told him to do so. it he did what the attorneys told him to do so.— he did what the attorneys told him to do so. it didn't seem to me or to _ him to do so. it didn't seem to me or to anyone _ him to do so. it didn't seem to me or to anyone else - him to do so. it didn't seem to me or to anyone else that - him to do so. it didn't seem to me or to anyone else that he l me or to anyone else that he had feeling of remorse. he publicly stated how desperately he wanted to be a well—known school shooter, and his goal was to kill 20 people. and he put his gun down because he couldn't find anyone else to kill, so i think that is a bunch of malarkey, as you guys say. bunch of malarkey, as you guys sa . ~ ., bunch of malarkey, as you guys sa . ~ . . ., say. we heard earli

suppliers, including kla corporation and lam research are halting operations and pulling staff out from china's top memory chipmaker, wmtc. kla, lam and amat, applied materials, earn about 0% of their revenue from that greater china region check out shares of that so-called applied materials trade we mentioned the chipmaker warning revenues will miss forecasts for this quarter and next as well because of the new export rules that went into effect this week that's a lot to digest let's talk more about this with ben harberg, from venture capital company based in beijing, china ben, we know there would be ripple effects but now this could have a very damaging effect on this industry, one we have put so much focus on, even with our c.h.i.p.s. act here in the u.s. what exactly is the current state of play in your mind for whether or not these computer chip companies can keep operating the way they do or may have to change their entire business paradigm? >> if truly they are cut off from accessing the china market indefinitely, as you said, really the only salve provided for them was this one

chip maker kla will stop offering certain supplies and services to china-based customers according toreuters, that's to follow biden administration rules, companies aiming to supply chinese chip milwaukeers with equipment must obtain a license from the department of commerce. chinese sales make up about 30% of kla's total revenue the company also going to cease supply in chinese plans owned by intel. >> certainly not the last we're going to hear of this. those eksz port restrictions going to hit some other chip makers take a look at them. now they are back from session lows however, lyft and door dash lifted 1176. remember it went public about $73 a share. of course that overhang as investors try to dijust what that department of labeler proposal mean for their work forces, perhaps deciding maybe the impact isn't going to be as immediate or as large. rbc's take on it has much to do about largely nothing. they think the bigger picture long-term the probability coming to pass is low and probably focused on other sectors like construction and trucking, carl. >> interesting to see taking

micron, kla, intel all about 4% higher intel's self-driving unit mobile eye plans to go public on the nasdaq that's helping drive intel a little higher today. chips, nvidia and amd off 60% or more from their 52 week highs and lastly you've got shares of lodge tech lower the analyst noted high consumer exposure could leave the company vulnerable, and let's end with a quick check amazon, apple, google, microsoft all up 2% or more, but apple's still about 5% lower in the past week microsoft just hit a fresh 52-week low earlier this morning but is clearly rebounding now. deirdre. >> alphabet isn't too far off either thank you very much. >>> after the break, we talked about it earlier, we're going to do it again, kim kardashian ttchgewith the s.e.c that story is next ♪ ♪ ♪ ♪ zero-commission trades for online u.s. stocks and etfs. and a commitment to get you the best price on every trade, ♪ ♪ which saved investors over $1.5 billion last year. that's decision tech. only from fidelity. >>> welcome back, kim kardashian, crypto, instagram, and a million dollars s.e.c. settlement, our julia boor

now down 4% kla, holding some sales in china to comply with controls. a new look at 409, asml.ve comments from american airlines. that's helping you can see all the other ones, these were all positive right at the open now they are negative. and another reason we can't get real energy even though you had positive comments. earnings on friday jpmorgan will be the big lead-off of course that always is guess what's at a new low? jpmorgan 52-week low. same for citigroup coamerica, 1%, 2%, 3%. global markets have seen a dash to cash recently really the strategists mentioning how much money has gone out to money market funds this is ubs. withdrawn from global stocks 3 billion from bond funds, 18 billion. a lot of money going into money market funds he has warned against market timing, when to go out and when to come back in. usually it doesn't work. we continue to advise against retreating to the sidelines, especially given the drag on cash from high inflation and the challenge of timing a return to markets. and you put the rest of that in, without missing out on the rebounds that's

but chip quick weapons makers are the tools that make chimes and land research and kla, they're getting really hit down 4 and 5% because they are banned from sending high revenue tools to chinese factories that produce logic chips, the brains of all electric devices. then there's investor anxiety ahead of earnings that kick off this week plus the big inflation data out we understand, that's the ppi -- wednesday, the ppi and thursday the all important consumer price index. no federal reserve meeting this month, but you can bet that the fed will be all over those inflation numbers and whether, whether they moderate isn't the issue. the fed is on a rate hike rampage, till it brings interest rates back up to 4.5%. right to the floor show and traders kenny polcari and scott shellady. on msnbc he says a reseason in six to nine months. news flash, we know it's coming if we're not in one already. brainard said we're aware our moves could gyrate financial markets. kenny, what does it say to investors that depending on who's speaking at whatever moment, the market spasms up or down? >> it certain

kla corporation. applied materials which makes the stuff that makes computer chips.on the computer stocks one place to watch as we talk about the recession narrative building in the marketplace. if you take a look at the waitrw waitrw waiw ww way treasuries are taking shape. those that are highly rated in some way on a year to date basis. the treasury etf down .30% of value. the investment grade down 23%. high yield held up well down 18%. the issue is if a recession really does come into play, how much more stress will it put on some of the lower rated companies? the ones with balance sheets which are not strong one thing to keep an eye on is whether or not we see more stress on high yield one way or the other, it could tell us where the market thinks recession will be going or how severe it will be. >>> still on deck for the show, potentially crippling rail strike in the united states looking more likely as a union representing thousands of rail workers dismisses the biden backed deal to keep goods moving. >>> follow our podcast if you miss "worldwide exchange" chec

licenses are going to be very difficult to get >> right and the implication is that lamb research, kland applied materials should be hurt >> what about nvidia what does it mean for a company like that, that has amongst the most advanced chips that are used this is not just military, but obviously, a.i., where the chinese have equalled us if not exceeded us. >> nvidia's been able to come up with a solution that they believe would be acceptable to both sides i'm not saying they disable the chips, but the chips they're sending are now gaming chips now, could someone turn gaming chips, file shares into military weapons? i guess so but nvidia's quite confident that they've complied. i think this is much more about equipment in the same way that we've succeeded in getting asmlf, you can't really make ships at asmlf but this is a ratchet up to the point where what you're really saying is, listen, we don't trust you with intellectual property, so we're not going to let you have any. >> it is, without a doubt, another step up in terms of just the overall tension between our two countries. >> bu

kla is another one. another name more expensive but higher growth. i think if you are playing the long game and thinking about the localization of supply chains which will continue across the board especially in chips given how important they are, there are names i think you can play to take advantage of it. >> they are proposing to build this plant it is literally 17 miles from my home. you can underscore how important this is to bring this manufacturing back to some of the regions that have been decimated over the last two decades or longer. we talked about the chips. we need to bring these jobs back . the globalization is happening. a host of other reasons and again doesn't bother me that it is going to take 20 years to complete? here about how these phones will be made in vietnam. once you have this infrastructure it makes it so it can be a bit more modular in the states. i don't think it is anything you go out and buy a micron for. >> and tell it's getting all the support and they are going to build. this stock has been a mess. if you think abou

morgan stanley analysts see the news as negative for semicaps like kla and positive for micron morgan stanley highlights why -- one recognizable name now listed as unverified. the new rules formalized guidance previously given to companies like nvidia, instructing them to stop providing certain chips to china for national security purposes these rules will take effect in phases this month. there is a 60-day comment period, but the effectiveness begins today back to you. >> kayla tausche, thank you. >>> let's bring in red bush analyst, matt brycen we were just talking about amd's warning. we're talking about fedex's memo and the concerns on overall demand, not just in consumer based on that. what do you read through as the impacts in q4 not just for amd, maybe even not just for chips but for tech writ large? >> yeah, so i certainly there's a broader slowdown it's been the case in consumer when you look at amd, our view is it was a better position property the share gains would offset some of the weakness i think what amd's warning tells you is that even some of the best-positioned comp

is blocking the cellar equipment companies, i'll take a hard pass on kla after applied materials flew up this evening. charter communications, $88 billion in debt. that's like the debt of a fairly large country with rapidly diminishing tax revenue. we have a host of companies on a new low list that seem down on their luck but may not stay that way. with rates this high, do you want to throw out key corp are you supposed to give up on bank of america and j.p. morgan with the massive deposit basis when the loan losses are tiny and credit balances are gigantic most people are getting next to nothing on their savings but the banks can invest in treasuries at 4% without getting in trouble with the regulators. by the way, the banks did that in 1990 and made a killing for them i think it happened again. if you're a new ceo and don't know the tech you need, you call a company the gold standard for consulting yet, there it is. a discard as they have nothing going for them at all. i find it astonishing to throw in the new low list. they didn't blow away the last quarter. it just had the usual e

companies suspending workers like kla, lam and china based firms.ot stopping from adding taiwan expect the double-digit growth an analyst joining us tomorrow interesting, jon a lot of discussion about china and the under-investment made in their middle class hard to see where they source the tech talent in years ahead. >> near-term definitely seems positive for tsmc in that, hey, going to continue to need chips from taiwan. china's not able to spin up its development. but got to wonder, de, what the next shoe to drop is how does china respond to this in a tightening global economy a their still raging ambition to do it in this country. >> key when will we see that? haven't so far and what everyone's trying to figure out. if we see it, where, how, a big question for the chip space. >>> quick programming note heading to break just over a week away from cnbc's first-ever top start-ups for top ratings, pow ering digital transformation according to tech executive council's find out more at cnbc.com/tec back in just aomt. men y. this is connecting your pe

>>> let's talk chips, the stocks down more than 4% right now, the downside by lam research marvel, kla and plat materials amd is shock the market with the guidance cut and export restrictions on china. rally names that are tied to making chips let's bring in managing director, matt ramsey for a closer look. m matt, i want to start with amd because lots of people thought the pc market was slowing down, there was inventory stacking up. pat gelsner said that a few months ago a lot of people surprised by kit amd, it's now at levels where it was right before the pandemic hit. what should investors take away from that? >> anyway, first of all, john, thank you for having me on i really appreciate it yeah, it was, it was a shock to the system on thursday night not the direction, necessarily as youpoint out, the pc market has been weakening we pulled in a ton of demand, work from home during covid, and then you had some enterprise refresh on the back of that as people started to return to the office, and now a huge part of the market is upgraded, and we're now on the backside of that, but i thi

invideo warned of the same $400 million impact, and kla and lam research have started to pull employeesese exports rules a downturn for the sector. >> also, important, i reviewed the tape you said shift >> let's hope we have viewers who watch every day and know what your joke is about. >> "power lunch" starts right now. >> brian, thank you very much. welcome, everybody, to "power lunch" on a wild day in the stock market i'm tyler mathisen joined by my friend frank holland, a massive, massive turnaround on wall street. we haven't seen this kind of action in months very rare kind of day. stocks falling hard on hotter than expected cpi numbers. that didn't last a turnaround, sharp, steep, this hour we're going to look at what's driving it, as you see that massive turnaroun

month ago previously warned of the same $400 million impact there are also reports now companies like kla, alam, has started to pull employees from china's chip makers or like asml have told u.s. employees to stop servicing chinese customers. the export restrictions clearly hitting an industry that is already suffering a downturn john >> yeah. kristina, thanks >>> so d, it is interesting. if you are an equipment maker that sells into china, yeah. it is going to be -- even though it is european then that is going to affect you a lot more than if you are a chip maker and most of your oem customers and what not are in the u.s. or in europe or in other parts but if you are investing in chips you are not investing necessarily based on what is going to happen in 2023. you're investing on what is going to happen beyond that. what dan niles just said not with standing what do you think will happen three to five years from now who is going to be able to win with the fabs being built out or maintained in process technology right now? that is what investors have to think about. >> bingo if you're lo

i don't put them on top directly on the kla tomatoes. the tomato they will begin to boil to give juice. we don’t need it right away, i put it on the grill, kebabs, how much meat you need to stay there for 6-7 minutes with each on the other hand, the meat will be fried, and during this time we will prepare the sauce with you, please pass on the mayonnaise, by the way, i take mayonnaise with lemon juice. it will be great to emphasize the taste of ours with such a product and pour it, in addition to mayonnaise, garlic will go here. hmm, it’s like garlic, it’s two. yes , it means two everything, add a bunch of parsley. so let's take dill. generous, straight, as well as green onions. i'll add a little olive oil. yes, and we are starting with you to punch it all into a homogeneous mass. look what a beautiful sauce on our table there is a gun that should shoot this baguette. we will now cut it in half. are you cutting him? just break it up and put it on the grill. i want it to be fried and we will also yes, and we will also add it to the salad,

invideo warned of the same $400 million impact, and kla and lam research have started to pull employees from chinese chip hubs so clearly these exports rules a downturn for the sector. >> also, important, i reviewed the tape you said shift >> let's hope we have viewers who watch every day and know what your joke is about. >> "power lunch" starts right now. >> brian, thank you very much. welcome, everybody, to "power lunch" on a wild day in the stock market i'm tyler mathisen joined by my friend frank holland, a massive, massive turnaround on wall street. we haven't seen this kind of action in months very rare kind of day. stocks falling hard on hotter than expected cpi numbers. that didn't last a turnaround, sharp, steep, this hour we're going to look at what's driving it, as you see that massive turnaround taking hold how to invest in it, and we'll speak to a market veteran getting ready for an even more powerful rally first, though, to frank for a check on the market. >> stocks are bouncing back this afternoon after levels not seen this 2020. the dow had a wild ride. 13-point swing fr

are starting to pull back staff from tough chinese chipmakers, firms including applied materials, and klae way company was regulations -- in the wake of u.s. regulations. restricting as well as ability to buy american technology. the first paying tourists to space will go back to orbit with spacex for a trip around the moon. dennis teedo and his wife paid to fly on the starship once the vehicle is complete. they will travel with 10 undisclosed passengers on a weeklong journey. the trip does not include a landing on the lunar surface. it is unclear if other passengers have yet been chosen. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. ♪ shery? >> we are half an hour into the trading session in japan and south korea. let's turn to bill for what to watch -- belle for what to watch. >> this is the picture here, half an hour into the session for japan and korea. mostly low this morning. this is really all about the u.s. inflation print. the data is due out la

meta some of the semiconductor groups kla ten corps, amd, all down that's really the problem prt marhe markets here, continued profit taking. united health and the dow only wanted a new high. met life, washington federal, there's a whole smattering of small and mid cap regional backs like washington federal hitting new highs. i wouldn't say there's a lot of direction in the new high list the question on the earnings is, is the reevaluation of growth versus value finally occurring because we're really seeing some moves here if you look at the fourth quarter earnings estimates, not third, fourth quarter, we see similar trends generally, the growth sectors are the ones where the earnings estimates are coming down, technology, consumer discretionary. people think it should be down a lot more the estimates for value sectors, usually associated with energy, industrials, healthcare. generally a holding up a little bit better, so nsenergy has bee huge for many quarters it's going to be a little lower this quarter only 62% put up the next one. industrials up 43% this is from the third quarter

cap tech, too, a lot of the big names are positive right now so, apple, microsoft, alphabet's there, klataken a drubbing this week in all these concerns about issues around china, is flat. nvidia is up slightly. these are very encouraging trends, given what we've seen with the ppi not surprising, consumer staples is strong. pepsi the second biggest gainer david was talking about moderna. that's the leader in the s&p, but pepsi is number two. coke, kimberly clark, kraft heinz, procter & gamble. did you see these pepsi numbers? organic revenue up 16% this is -- that is very difficult to get that, given how big pepsi is now, if you're wondering, how did they do that look at this pricing 17%. wow. that's amazing amount of pricing that you get from a company like pepsi. and the volumes were down 1% that's how you get to 60%, folks. pricing up 17, volumes down 1% these are quite amazing. the gross margins are 53%. that's essentially unchanged, so what they seem to be saying is they needed the price hikes to keep the gross margin up, so really very impressive they're still getting price hikes.

and sales and said order bookings reached better levels as you can see, it's a relatively mixed trade klawatch is lam research it's up 2.25%. it reports results after the closing bell a lot of chip stocks give it asml we'll see if lam research can validate that. >> thanks for that from chips to the skies. phil lebeau now joins us with a special guest. phil >> hi, andrew. scott kirby, ceo of united airlines talk about a wow for earnings. q3, you blow away expectations all of the metrics within whether it's profit margin, whether it's revenue whampt did wall street not appreciate about the strength of the business >> first, the people of united airlines are doing a great job coming out of the pandemic it's on a surge in travel. the other thing is on the plus side for us, our results were obscure but we had this unique issue. 52 of our biggest wide body 777s on the ground. that had a huge impact on the operations and cost structure. now they're putting that in the rear-view mirror the core results are showing up. >> q4, what's your guidance? we know what your guidance is. in terms of booking

this morning there are fundamental drivers we are seeing to the market, and kla corporation, they willcate products to china-based customers for computer chips, according to a reuters report it's important because china, that region, represents the largest geographical footprint, and wells fargo cutting the rating on skyworks, and that's keeping a negativity around some key companies. and keep an eye on some of the big semiconductor names on those sentiment moves. we talked about the comments andrew just eluded to about the likelihood of a recession in the coming six to nine months here in the u.s. and perhaps abroad during that exclusive interview with cnbc, and that's why you are seeing sensitive parts of the market like oil and gas dipping. oil prices are down, and not surprising oil stocks along with them, and marathon oil, and exxonmobil amongst others in the premarket right now down it's not all red out there and amgen shares up, and they think things like the obesity product and watching that up 2%. it's not all red there's green out there. i will send things back to you >> even

suppliers including kla and lamb research pulling staff from the top memory chip maker ymtc. shares of applied materials. the chip equipment maker warning revenues misthe forecast for this quarter and next because of the export rules that went in affect this week. we're looking that at a little over 1% now. coming up we get you ready for f tomorrows bank earning blitz. four banks set to report. squawk box coming righ you'll ge. nice, but i can't accept it. unless every business gets the best deal. on every iphone. uh, actually... we already do that. the plumber with the ascot! big bjorn, little bjorn, too! the caterer who really cares. every business should get the deal! we make a good team. every business gets at&t's best deals on every iphone. including up to $800 off iphone 14 pro. (♪ ♪) ♪ icy hot pro. ♪ ice works fast... to freeze your pain and your doubt. ♪ heat makes it last. so you'll never sit this one out. icy hot pro with 2 max-strength pain relievers. >>> welcome back to "squawk box. tomorrow is an unusually busy day, even for the kickoff of earnings season. we're