lenovo fell despite profits beating estimates. the $105 million compared to estimates of 71 million. that despite a drop in computer shipment. they delivered strong earnings to beat estimates, they saw profits rise 13% in the first quarter. itstel reaffirms yearlong outlook. juliette: thank you. it is all about the yuan sinking once again. china is willing to do whatever it can to stop this. thae benchmark closed at its levels -- lowest levels since january. we are seeing chineses tocks trading in hong kong making up some of those losses. in shanghai, some good buying happening there as well. then of course we are seeing th doingr major markets well on the back of big moves coming through. if we do have weakness coming be concerned would about the devaluation of yuan and could see some pullback in mining. you mentioned look noble -- lenovo still under a lot of pressure despite that its profits beat estimates. compare that to stub hub, another telco company doing quite well. encouraging to see a lot more green coming back. we have

the apple is $1,300 and lenovo is $1,500. battery life is also important. to test consumer reports continuously cycles through a series of web pages until the battery dies. the mac book has a battery life of more than 16 hours. the samsung delivers 10 hours and the lenovo 7. >> if it is just sitting on a desk it's not going to matter. >> reporter: if price is more important than portability consumer reports named two best buys the 14 inch lenovo flex 3 at $650 and the 15 inch acor aspire at $500. the lenovo flex 3 has an eight hour battery life and acor has 12 1/2 hours. consumer reports says both are fast at general office tasks and photo editing and are powerful enough for video editing and mid range gaming. >> thank you. >>> let's go outside and talk about the weather forecast. another nice day around the bay area and maybe rain coming. >> we can only hope. >> it looks like a pretty good chance that we see showers around here. maybe even some thunder. right now behind me just beautiful. it feels warmer. blue skies, a few high clouds. let me show you live

it is going to be making the lenovo brand and also motorola, part of the broader lenovo group.start-ups in the world. it is already manufacturing there in south india. o is one-plus. the prime minister of india made an india push. people want to get into what is now the third biggest smart phone market. t is much more economical. that's why the mobile phone makers are going if there. you have the number three market in the world accounting, growing by 44% a year. lenovo itself accounts for 60% of all smart phone sales. india really seen as a big growth market and i suppose just shows at least in this respect the policy of raising tariffs. francine: i find this crazy. i guess i grew up believing that china was the cheapest place where you could manufacture things. the biggest chinese company moving to manufacture in india. are we going to see a lot of companies, not only the ones related to tech come into india from china? >> that is what the prime minute ster wants. it is clearly not going to work for every company. tragse tariff for imports won't work. in terms of population a

like i said, they have always xiaomi,position from lenovo, but the just issue now is the overall slowing economy in china. competitors are asking themselves, should they extend , really subsidiaries trying to export that market, or are they going overseas, and that is exactly what lenovo and xiaomi have done. they have chosen india as the next market, because they realize maybe the more saturated markets are not enough to boost their profits for growth. i saw a interesting numbers on the apple watch, more impressive than a lot of people expected. in thelion apple watches last quarter. break it down and what it means. crawford: what we saw is this 120%, so thisded is the classic situation where category buster. they are coming in and redefining the category. in we believe the wearable category has the opportunity to changer thaname the tablet was. we expect this is the beginning of that trend. there will be fits and starts, but we also believe that 120,000 developed for wearable devices. it's a very different world if you are a wearable competitor year ago. it was one your market is twice

and the lenovo is $1500. aside from weight, battery life is also important if you're on the go."consumer reports" continuously cycles through a series of webpages until the battery dies. the macbook has a battery life of more than 16 hours. the samsung delivers 10 hours and the lenovo, 7. >> light weight laptops are great if you're carrying them around with you, just sitting offen a desk, it is not going to matter. >> reporter: if price is more important than portability, "consumer reports" named two best buys, the 14-inch lenovo flex 3 at $650 and the 15-inches aer -- aer is aspire at $300. >>> morgan freeman known for his crime dramas on the big screen. one crime drama is involving his family is now playing out in real life. >>> some catholic university students designed the altar >>> we are learning more about the murder of morgan freeman's granddaughter. >> reporter: a solitary flower pot left at the spot of unimaginable violence. 33-year-old a 'dina hines, the step granddaughter of actor morgan freeman stabbed repeatedly steps from her home on west 162nd street. >> i'm just

--ssure lenovo missed out lenovo missed out on investor concern that it's growth strategy is not moving fast enough. jonathan: let's recap, the people's bank of china dropped its reference rate for the for -- third day, lowering by 1.1%. the central bank came out swinging against allegations of competitive devaluation. where nick beijing is standing by. another day of cutting the reference rate come are we out of the woods? has devaluation hit the lower limits? question thes the last couple of days, how low would you want to go. they seem to to have made that clear. of the trading session, suddenly it swing back it came backow -- after being low. they came back today saying a 10% evaluation would be nonsense. it looks like this 3% area is what they want. they are sticking to the claim that they had said they you on was out of wack with market forces. this was a one off adjustment. u.s., there the , are youn delaware focusing on the yuan instead of the japanese yen? nick: when you look at export numbers from the weekend, the exports to japan were down 10%. exports to europe, down 2.5%. t

that is a big margin of outside for lenovo.st quarter earnings per share coming in a $.94 per share. 992hkve the ticker symbol which we will be watching when hong kong markets open. expenditure at $153 million. top stories this hour. trailing.ory numbers rose.rial output retail sellers -- sales were up more than 10%. the slowest growth is the turn-of-the-century. lowaba closed at a record in new york after reporting the slowest sales growth in three years. $68es are still above this paid in leicester's ipo. revenue rose $2.8 billion, misting -- missing estimates. conversion climbed 34% for the quarter. sales held -- helped 10cent.-- is taking on alibaba. shares closed ahead of the earnings announcement. that may change later. let's get back to the top story. the falling yuan and the impact around the world. our emerging markets reporter joining us from new york. what has the reaction been from u.s. markets? reporter: it is interesting that the market seems to be slowly settling down after the initial shock. the s&p opened lower

i got out ofly novo in high -- lenovo in high 20s, anything pc centric, i am staying away from. all about mobile, and apple operating system. the name was spun off from ibm. it looked intriguing but warren buffet made comments about ibm. i am down a little bit not a lot, it may be a sleeper, but lenovo . >> pc's in general, it is a commodity product, whatever can make it cheaper will take market share. >> i am with you. shots fired in ferguson overnight. we'll have details and why maybe you should have been better prepared. you pay your auto insurance premium every month on the dot. you're like the poster child for paying on time. and then one day you tap the bumper of a station wagon. no big deal... until your insurance company jacks up your rates. you freak out. what good is having insurance if you get punished for using it? hey insurance companies, news flash. nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. see car insurance in a whole new light. liberty mutual insurance. i built my business with passi

samsung needs to care more about putting htc and motorola to pasture and staving off people like lenovo and xiaomi. emily: i want to talk about samsung pay because it is different from apple pay. how is it different? it's available in a lot more places. jim: the user interface is similar to what you with the on an apple pay device. the major difference is they bought a company several weeks ago and incorporated the new technology in the stone that is unique to samsung that allows it to be used at virtually any terminal in the u.s. the of the -- via the mag-stripe reader. emily: what's interesting is they are not charging fees for banks, though apple does. is this something that could lead to a renegotiation of visa's deal with apple? >> we introduced a program that effectively says if someone wants to connect to visa banks, that there are no fees from visa or the third-party. we're taking a long view with internet of things on the horizon. our view was we just got to make it really simple from a contractual perspective for both parties, the banks as well as the platforms that are provid

giantmputer and phone lenovo have announced a layoff of more than 3000 employees after profits were cut in half to $205 million during the second quarter. the chinese firm bought motorola last year in an effort to boost its position in the smartphone hadet, but motorola has disappointing sales, dragging overall office -- profits down. a new preboarding procedure for passengers flying with uzbekistan airways. they will weigh passengers and luggage in the departure lounge to determine just how much weight they will add to the plane. they insisted the safety figures will not be made public. most commercial airlines alculate -- airlines use standard formula to calculate how much a plane will weigh. pay-as-you-weigh structure was instituted at similar airlines -- at samoa airlines and is still in place. annette: that is kate moody with the day's business news. let's turn now to the press review. at what isake a look making headlines in the weekly news magazines. i'm joined by flo villeminot. magazine. this is takes a look at what is happening -- it takes a look at what is happening behind cl

first quarter profits at the world's largest pc maker were serious, lenovo facing challenges sellingrt in china and pcs around the world. they will cut about 3200 nonmanufacturing jobs. 50 millionto save $6 in the second half of this year. russia indicated that it would widen its import banned list earlier this week. countries willer no longer be allowed to export food at the country. they joined other western powers impacted by russia's counter sanctions. the food bans are set to remain in place until august 2016, imposed in response to western sections placed on moscow over its alleged role in the ukraine crisis. auction news, especially if you are an elvis fan. items will be auctioned at graceland thursday. online bids are being accepted. the articles include the king of handgun,oll's personal a jacket worn in a movie, and a guitar. is heldar, ellis week remember elvis presley's death in august 1977. this is the third auction to take place at graceland. from will have bidders around the world bidding online. there is a starting bid on a lot of these items. back in certainly be aff

they have always faced competition from xiaomi and lenovo, but an issue that all of these companies areacing right now is the slowing economy in china. if you look at what competitors are doing, they are asking themselves the question if they should expand into the smaller tier cities and try to explore that market, or should they go overseas? that is exactly what xiaomi is doing, choosing india as the next market, because maybe they realized the larger markets are not the place to base their growth. emily: there were interesting numbers today on the apple watch, more impressive than i think a lot of people expected. apple shipped 3.6 million apple in thes -- apple watches last quarter. break it down for us and what it means, the trends you see. crawford: what we saw is this category expanded over 120%, so this is the classic situation where apple is a category buster. apple is basically coming in and redefining the category. we believe the wearable category between now and 2020 has the opportunity to be a bigger game changer than the tablet was. we expect this is the beginning of that

like dell, hp, acer, asus, lenovo, and toshiba >> reporter:you want at least 4gb of memory. >> reporterb of hard drive space , or as much as you can get. >> reporter:look a machine that offers two usb 2.0 ports, and at least one usb 3.0 port. >> reporter:you also want your new laptop to have 802.11g connectivity for the best wi-fi speeds. >> reporter:another thing to consider is the new convertible devices or sometimes called 2 in 1 devices >> reporter:that are both a tablet and a laptop. like this one from >> reporter:the microsoft surface 3 is a good example of a convertible device just under $500. it's a feature packed tablet but you can plug it into portable keyboard and treat it as a fully functioning mini windows laptop. using all the traditional microsoft office products. >> reporter:now everyone is having back to school deals right now. >> reporter:it's easy to find good prices >> pam: head lice headaches just got worse for parents and children. we'll update you on the new findings about 'mutant lice" and what to do about it. >>because of recent violence. there will be a new lev

gain coming through from lenovo shares. it's the most since july 9 and the yuan is also heading for its biggest gain since april. by 1.7 of 1% in japan. focus and theyn have confirmed that they are in talks about a potential tie up in southeast asia. they have climbed to the most in 10 weeks. in japan, they have climbed about 2.3%. big gains coming from the energy players in japan. unemployment is at 3.3%. great gains coming and particularly from those energy players. that is all about that oil story. and doing wellg again today. there have been a litany of accusations against a lamb -- olam. grexit mitsubishi is investing a billion dollars to take stake in olam. it has been around for 25 years. is a major player in the global food business. let's take a look at what's happening to the shares. they are up on the order of 10% today. a very significant move. the singapore market is one of the leading stock movers today. the company is saying the investment singles mitsubishi's interest of the food demand in asia. coreis olam'

and other chinese company has agreed to make smart phones in india -- lenovo plans to make 6 millionnes a year at a factory in southern india. xiaomi is already making smartphones there. india is a booming market for smart phone makers and the government has offered tax breaks to companies. , twoe pacific ocean typhoons are gaining strength. one could become a super typhoon and landon taiwan later this week. to hiter is projected close to japan. if they hit landfall, meteorologists are worried about torrential rain falls. that's a look at the top stories this hour. coming up in the next hour of the bloomberg market day, we will look at what hillary clinton may have learned from her 2008 presidential bid and what she's doing differently this time around. new research says hedge fund returns are only half as strong as they appeared to be. this report -- we have the study on why the numbers are skewed. billionaireaking on investor tom stier. californians for energy independence, whose contribute include chevron, occidental petroleum and exxon have been probing conflicts between his busi

lenovo will produce 6 million phones per year. xiaomi already has a factory there.hose are your top headlines. more signs of strength in the housing markets. new home construction in the u.s. climbed last month to the highest level in almost eight years. matt: the strong housing market is providing a boost for home improvement retailers. home depot's second-quarter profits rose 9%. it also boosted its sales forecast for the year. joining us is michael regan. and on the phone is brian nagel. brian, let me start with you. home depot sales look good. is this an area that consumers are just willing to spend money ? well.hink that sums it up we have seen us for a wilder the home improvement category has been a beacon of strength out there. i just got off the conference call. numbers -- aggregate what is really important is that the business picked up as their july quarter progressed. it sounds like it is tracking quite well. olivia: how much of home depot's success can you attribute to macro economic tailwinds? and how much of it can you say is home depot specifically hi

necessarily differentiate itself so much from apple, but all of those cheaper alternatives, like lenovoiaomi. -- we expect apple to unveil their new phone in september, so sam son doing it a little earlier. it will be interesting to see how that plays out. betty: thank you so much. emily will be speaking with the jim mccarthy about his buddies partnership with samsung today. ahead, houlihan lokey went public today. but the deal did not turn out so well. find out more. ♪ been: houlihan lokey has part of a number of high-profile deals, but one is not doing so well, its own ipo. the ipo comes amid increased demand for independent and a m&ace, a -- independent advice, a key focus for the company. >> our focus is about doing more more transactions, less about the size of those transactions. what we look at is do we continue to look at those transactions, help our clients in the transformative events that they are working on? as long as that is working, we know we are moving in the right direction. so what happened here with the ipo going in? leslie: we are looking at a deal that was 30% less

shares in lenovo slumped after a double whammy from investors with the group missing the street withirst quarter earnings and announcing it's laying off 3,000 staff members. the group ceo says it's facing the toughest market environment in recent years. this as quarterly revenue rose 3% to $10.7 billion. share prices down some 9%. >> disappointing results at chinese e-commerce firm alibaba dragged it's shares to another record low. wiping $16 million off the value. >> shares in alibaba hitting an all time low after it reported fiscal first quarter earnings that missed on the top line. investors wanted any reassurance from the company and from its earnings that it would be able to sustain macro head winds in the china economy. here's how the ceo addressed that question on cnbc. >> we closed the monitor and consumer behaviors. we have active buyers off 367 and when we further analyze the consumers behavior we observe that people buy more than 50 times a year. they buy all of these things before they realize and most important thing they come to our platform not necessary for the specif

winners are lenovo and the companies manufactured there. the rest of the companies will take a hit. deirdre: yum brands, johnson & johnson, a lot of large american conglomerates are there. craig smith, thank you so much. chairman of swiss america trading corporation. >>> chinas devaluation sending oil tumbling. if you look at screens, the lowest level in more than six years. phil flynn is with me from the cme. phil, how low do we go? >> we could have hit the low today, actually. any time we get into the low 40s, everybody gets bearish but it's been a buying opportunity so far this year. we have to close below 40 to prove this is a move down. could this be a knee-jerk reaction off the chinese news today. obviously it raises concerns in oil on two fronts. number one the chinese economy is really in big trouble, not going to be able to import a lot of oil because their demand is slowing, and on the other hand, it makes it more expensive for the chinese to import oil. but if you look at the reason why we're doing it, they have bad export numbers yesterday, and that is kind of what most

you can look at see lenovo hitting new 52-week lows.the flip side, adobe, minimal china exposure, hit a new 52-week high earlier in the session. >>> a few retailers, we mentioned depot, tjx again minimal international exposure working after comps come in 6 versus a 3% estimate and housing has been a good story all day long. decent housing starts. single family homes, best since 2007. pulte, lennar, dr horton managing to hold it together. >> the u.s., all about the u.s. those who have strong u.s. exposure and running efficiently. that was walmart's problem, seem to be doing well. >>> a busy afternoon session still ahead. let's get back to headquarters and scott wopner with the "halftime report." >>> welcome to the halftime show. joe terranova sheer with, stephanie link, josh brown and pete najarian. media money, why one wall street firm is getting downbeat on big-name stocks, our experts debate the call of the tray. trader joe hoping to move up our leaderboard, joe terranova making more portfolio moves, the names he likes and why and whe

make 6me lenovo plans to million a year at a factory in southern india. india is a booming market for smartphone makers. plus, the government has offered to tax breaks. that always helps. alix: the force will be with you on japan's largest airline this fall. they will start flying a boeing 787 painted with the image of the famous robot from "star wars," r2-d2. oh, my god, that is so cool. it is part of the hype surrounding the new "star wars" film in december. that is really cool, by far the coolest thing i've seen all day. there all your top stories. scarlet: walmart's pay rises may be eating to earnings but the cover he says they will retain more employees and boost customer service which in turn will fuel growth. alix: earlier today, pimm fox and betty liu spoke to the former ceo of staples, now with an investment firm. they asked him if retailers, especially walmart, needed to keep wages level even after second quarter sales beat wall street estimates. >> what walmart is a lot of smart things could be increased sales and that is a major positive. they

gain coming through from lenovo shares. it's the most

i think yesterday we saw a big op in len oveow -- lenovo. a caveat to this, an increasing number of these companies have started to settle or transact which is a bit more difficult to say what their currency exposure would be in this space. angie: you mentioned currency war. nobody officially wants to use that moniker. but of course a lot of people saying that japan has been getting a free ride for a very long time. maybe now china's stepping in. guest: is this going to be the race to the bottom as china has joined in on this? look at some of the regional currencies and the reaction yesterday. the singapore dollar, the yuan was down 1.3%. singapore dollar down to a five-year low. the global financial crisis, it's down about 12% this year. would you think, of course, it could maybe help exports. but this is not really an export-driven economy. malaysia. so this is going to be a problem. we have one analyst who was quoted on bloomberg as saying, we have a full screen quote, it will start a vicious cycle by different countries trying to depreci

alibaba, lenovo, really kiss disappointing investors, that's an indication how bad things are in china. >> how bad things are, you were sitting beside me, you're following the story, the two accidents about 1100 miles apart, the two different cities. what about the social media, the control that the chinese government is trying to exercise? we talked about weibo, and a lot of the videos that were post were taken down and people probably putting themselves at risk by posting them? >> the only reason we knew about this as quickly as fast with the tianjin explosion is because of social media. those were taken down and people in tianjin were really upset. they were saying on american, british, italian tv, that was headlining the news, but in tianjin itself, they were watching south korean operas and saying their leaders have lost humanity. and i think that that is a theme we're going to see especially because this isn't going to go away even after they put the fires out because of the pollution, which is now in the water, and in the bohai city. deirdre: gordon, bigger picture, we see the s

we saw through lenovo's results, motorola, not working out well for them.as an ability to do payments within an android ecosystem. but in a special way. you got to imagine them continuing to take share within android. what kind of event. my gut says maybe not as much as you might think. though they're available more places, apple has strong market share in the u.s. ios users, tend to be loyal, it's not clear that people are going to switch from apple to samsung, to be able to use their phone to pay in more places, incrementally this is better for samsung. apple and samsung has been a two-horse race, it looks like this is going to keep it that way for a while. we'll see. >> and of course, we're just a few weeks away from what we expect will be a little more clarity. >> we expect to see a new iphone, we're assuming it's going to be the 6s and 6s-plus. only about 30%, a little less than 30% of the apple iphone in stall basis is on a 6 or 6plus, they want to get the rest of those people to buy a 6 or 6 plus, which we should see the price go down or even better,

things like lenovo. we saw their shares rising yesterday.enefiting from yesterday desk close and toys also benefiting from yesterday. argentina did a currency swap with china. $9 billion worth of yuan on reserve. some suggesting they lost out about $150 million. a, thetillas, groom maker of tortillas is down by one quarter. u.s. now canceled more of its sales. many premade. gruma islt, groom a -- one of the beneficiaries. always a pun with elliott. guy: i'm sure he was wincing at that. the pronunciation of some of those manufacturers are quite impressive. how do you deal with this from it investors that's how you do with this from an investor's point of view? >> is important not to overreact. stand back a bit, take stock. clearly, there is a lot of pressure on the chinese authorities at the moment. they seem to be doing something. in the west, we've always been suspicious of chinese growth figures. then all the underlying indicators suggest the growth is softer. against that background, we have been anticipating there would be some policy ac

on the downside it is curious because those shares, food related stocks, 5% drop for lenovo.dismal results, not necessarily communications but rivals, are doing well today. reallyg seng index was a are in the session and right now it is between gain and loss. we have the nikkei 225 printing trendingconcerns -- lower on concerns that it will people are but seeking a safe haven. in the commodities space we have seen a pullback in commodity prices with the aussie dollar with correlation to as well. a quick check on currencies and here is what we have in the july numbers disappointed the market by falling 3.3%. this is where you have the korean won right now. i mentioned the weakness in the aussie. strengthening-yen to the tune of 1.5%. -- over 5%. -- of 5%. s pertaining to the market in asia. a lack of confidence in the economic recovery fresh off of the latest fall. banks are offering must for deposits. a look at what we are seeing. it seems like we are giving more. >> in the years or months during the bubble time, banks have a more difficult time attracting deposits because th

this time it is lenovo. it plans to make 6 million phones. xiaomi already makes phones there. the government has offered some tax breaks for manufacturers. cory: the force will be with you on japan's largest airline this fall. the pond airways will start flowing -- nippon airways will start flying a plane with r2-d2 on it. it is part of the hype around the new star wars movie. matt: i would say getting too obsessed with star wars is unacceptably nerdish. cory: it's not good for your social life. trust me. 787 painted like r2-d2 is pretty cool. cory: have you been on one yet? matt: i don't believe i have. cory: it's really fantastic. the carbon fiber frame of the plane is even better than writing luggage class on -- no legroom regardless if you are in economy. as the fed gears up for a potential rate hike , investors may be looking for safe havens. our next guest says etf's may be the way to go. the head ofis americas ishares fixed income strategy at blackrock. -- i know institutional investors have been using etf in a big way. i hear the kids are into them. millennials. i don'

one of the biggest movers to the downside was lenovo. smartphone growth plans are not moving at the pace we would expect. also keep an eye on emerging markets today, a healthy gain from shares. but the real story related to devaluation,uan because we do see a rebound after this two-day selloff. people are taking a bit of a breather, but curious movement out of china. which way do we call it? pboc's move affected the market? a lot of people asking that question. caroline: zeb eckert in hong kong, thank you. guy: we will get an update on the explosion a little later on. that huge explosion that we saw overnight -- we will try to get you an update on what's happening. there is another story coming out of china. get a look at what we are seeing out of china. elliott gotkine is here with us. elliott, we have companies like nestle, walk us through the reaction of the last 48 hours. we look forward to hearing what these companies have to say, but as you were talking about with the smp, we have seen further devaluation of the yuan today. we are

lenovo will make billions of funds a year. xiaomi already has a factory there. the head of the dallas fed. he spent more than two decades as goldman and led its investment bank and -- banking unit. tom: an inspired choice, and of course a long time "surveillance " guest host. he has brought us immense value on corporate leadership. vonnie: he just made that window before he was announced. tom: he has got a great research combine down there. i hope he keeps the dallas tone alive as each bank is different. there is a tone and the emerging markets as well. let's call it a commodity meltdown. cap support fenske -- katia porzecanski covers emerging markets. i do not even know where to sort this out in terms of news flow. i understand that canada is winning because they are weakening less than the others. which is the currency you are most focused on? katia: is canada and emerging-market? [laughter] tom: what are you focused on? katia: morgan stanley have this new troubled 10 list. you are seeing a ton of asian currencies, a kind of latin american currencies, and then

like dell, hp, acer, asus, lenovo, and toshiba you want at least 4gb of memory.st 320gb of hard drive space , or as much as you can get. look a machine that offers two usb 2.0 ports, and at least one usb 3.0 port. you also want your new laptop to have 802.11g connectivity for the best wi-fi speeds. stand up - another thing to consider is the new convertible devices or sometimes called 2 in 1 devices that are both a tablet and a ---------- the microsoft surface 3 is a good example of a convertible device just under $500. it's a feature packed tablet but you can plug it into portable keyboard and treat it as a fully functioning mini windows laptop. using all the traditional microsoft office products. now everyone is having back to school deals right now. it's easy to find good prices but if you want to keep it i saw great deals at best buy, target, costco and amazon. you can't go wrong with thoseand they offering some good student bundle deals you buy a laptop and you get a prnter and a few accessories tossed in. end stand up - on our website on kron 4 dot com. we

ibm got rid of lenovo, saw what was happening. probably got a good price to what you would get today. maria: earnings are a mixed picture. energy down a% in terms of profitability. technology is mixed. how would you characterize the overall second quarter season and coupled with the guidance companies are giving us rest of the year? >> i think guidance is clear. earnings came in below expectations. guidance is lowers lower. guidance is scaring everyone. there is not a reason to buy. netflix is interesting thing. we talked about how netflix is up and ol' media companies are down. netflix has fallen farther than disney. >> still best performing stock of the year is netflix. i would never certainly discount that company. talking about technology sector, if you look a lot at the smart moves apple is making, google, they're getting into our lives. that is pressuring old media stocks, broadcast, satellite companies. because these new technology companies are saying we'll innovate and move forward. whether that is netflix or amazon, amaz