you heard meg whitman talk about cisco, by the way. working is very strong away from what she's saying. a lot of companies having very good companies. >> cisco one of the five dow components up. jpmorgan depot, not a surprise and goldman sachs. >> look, you're seeing -- there are many restaurants and retailers on the nasdaq and they're doing well. some of them you haven't heard from. when was the last time that texas road house was blowing the doors open? texas road house. david, it is time david, i've told you -- >> patrick swayze movie. >> these are kinds of companies i'm saying they're not in the top ten but they're just growing and growing and growing. and some of the sirrus logics. >> at the nasdaq it's staples, launching staples business loans for small businesses. >> american express raises business loans. >> only stock -- only s&p worst off than hp this morning chesapeake. 11 cents misses by 13. revenue ahead but cutting cap x by 26% new york surprise. >> a lot of the guys haved that to cut cap x. other than rosetta and this on

is meg whitman right? is the turnaround on track or are things just spinning around? my guest joins me now from new york. missing analysts estimates -- that always says more about the analyst than the company but this company, 13 or 14 quarters less in revenues despite the acquisitions. >> it was a challenging quarter. you did have margin improvement, but across the board, revenue growth remains challenging to say the least across all the different segments. we see the same pattern this quarter as we did last quarter. the enterprise side of the business remained more challenged than the pc side of the business. the pc side of the business sees mixed trends, but the pc segment doing ok. the enterprise segment still strongly challenged. on top of the execution and operational issues, you have the currency effect which was pretty substantial and likely to be there for the remainder of the fiscal year. >> currency is a big deal for this company but there should be some kind of benefit in terms of the cost of goods. a lot of goods are supplied in japan. the yen is a lot lo

aruba is the first stake in the ground from meg whitman's turnaround. it is interesting hp would theoretically move before splitting the company. perhaps that is because they want aruba networks. if they are selling they may think we need to act now or risk losing them. >> hp has talked about improving operating margins they talked about it bumping up by a percentage point rate it was 15 basis points. buying money doesn't help you make more money, it helps you lose more money. what is it that they like? >> hard to know. we need to hear from hp. you can only guess. we can guess hp wants to add on their network businesses struggle down 11% annually. the enterprise wi-fi is hot. huge growth. hp would like to make a bigger footprint in that to challenge cisco, which does a lot of work. the idea is they have the growth moving in that direction. it doesn't matter if they don't make money now if they make money in the future. aruba may be a simple integration. this may be a good first acquisition for hp to make post turnaround because it is digestible and it i

hewlett and packard's meg whitman said the company's turnaround remains untracked. the earnings tell a different story. revenues are down to 1.4 billion. dig deeper and some things look even worse. revenue was flat. printing revenue is down 5%. h he is down. it was trading higher but is turnaround on track? bloomberg intelligence joins us from new york. i mean missing analyst estimates. this company has 13 or 14 quarters with less revenue. >> it was a tough revenue. you did have margin improvement across the board revenue growth remains challenges across the segments. we see the same pattern of this corridor as we did last quarter. it remains more challenged on the enterprise side they are not on the pc side. pc segment doing ok. enterprise segment still challenged. on top of the execution and operational issues you have the currency which was pretty substantial and likely to be there for the remainder of the fiscal year. >> it it's a big deal for this company because they sell so much to europe. a lot of the goods it in the printing business is supplied it in japan

meg whitman say we are prepared to do acquisitions.hey could make another acquisition before the split takes place, if it really wanted to. we will have to see exactly the direction hp goes. again, we will likely hear from aruba tomorrow. >> i'm sure the bankers are knocking on the door. thank you. earlier i talked to jayson nolan for a dive into hp's earnings. i asked what surprised him most? >> the biggest surprise to me was the free cash flow guidance came down at $3 billion. a big component was the cost of separation. legal fees, consulting fees, there is a lot of work that has to be done to separate these companies. i think it is the right move long-term, but that was a big surprise. i did not expect $1.3 billion this year, and $2 billion over two years. >> let's talk about this free cash-flow notion. it is very different from earnings. free cash-flow is actually the money that the company collects. there is a lot of back-and-forth that goes on on the balance sheet that leads to that. the free cash flow guidance sounds like it did

brown spent $36 million in the 2010 election and former ebay chief, meg whitman, spent in a losing effort and that's a record for the state. >>> people in southern california celebrating the art of 3 d printing this week. this is the second year for the 3d world expo. more than 50 companies show off just about everything you can do with a 3d printer from the unusual, to practical to real works of art. anything in three dimension son display. plastic printers most common but there are no metal ones too and some of those can cost in the thousands of dollars. but prices are dropping on the simpler models. >> for those who say it will be a 3d printer in every home, you'll be downloading files to print a replacement part to an appliance or something like that. all kinds of medical breakthroughs. they say they'll be able to print the heart within ten years. >> the expo also features a competition for digital artists. >>> coming up next on abc7 news at 9:00, why california scientists are alarmed by a new study of the ocean. and could a dry january give way to a wet february? abc7 news meteorolog

we'll see what meg whitman and they have to say beyond those quarterly numbers and what they can speak to in terms of hopes for growth perhaps, some of these businesses as you well know, hp is splitting into -- or hp ink is going to be name and hewlett-packard enterprises. the expectation perhaps that the enterprises component if you will would be a faster grower than hp ink, although right now growth does seem hard to come by. they did quantify for the first time the costs associated with that separation. $1.3 billion in fiscal year '15. another half a billion in fiscal year '16. that's a big number. but to put it in perspective, when kraft -- when kraft split is about $1.7 billion. we haven't seen a split of this type really ever, creating two fortune 50 companies, melissa. it's enormous. it is still expected to take place by let's call it early november, november 1st. as well they laid off 44,000 people under their restructuring program with another call it 11,000 to go there. and perhaps then more cost cuts coming once these companies are separated. back to you. >> speaking of grow

now remember that in 2010, when meg whitman ran for governor, the total spent in that campaign was $213 million. so -- it's not completely crazy that newsome is starting early and semiing all kinds of sunt -- accepting all kinds of scornly. >> wac in 2010 d -- back in 2010 she pent $143 million. >> so anyone thinking of running for governor right now has to be scared of a billionaire, someone like a tom stier getting into the race and like meg whitman paying for the whole thing themselves and outspending everyone else. the thing is too, even without a billionaire in the race, experts predict it will cost each candidate $30 million to $350 million each to run. there's really no scenario that's not really really expensive. >> how is it going affect the race? >> generally speaking you can expect other candidates considered a run for governor to have to move that decision date up. they're going to have to declare earlier than they wanted to because the longer newsome is out there as the only candidate for governor, he's going to be getting endorsements. collecting contributions. and that ma

cnbc has an exclusive interview with meg whitman. >> you're watching worldwide exchange.you business news from around the globe. >> and let's get you up to speed on how markets are trading because the s&p and the dow did close in record territory after fed chair janet yellen said yesterday the fed does not want to raise rates too soon. right now futures indicating a mixed open. the dow up about 4 points. nasdaq down about 5. markets did move higher. the u.s. ten year yield dipping below 2% hitting a one week low. you can see now the yield on the ten year note at 1.96%. so keep an eye on the bond market today but we're also still on nasdaq 5 k watch. the index witnessing 10 straight days of gains. guys we haven't seen this type of run in nasdaq since july of 2009. today though some analysts say the tech sector may be weighed down by the disappointing results. the company did miss revenue estimates cautioning currency head winds in 2015. now a quick check on european markets. investors continue to keep an eye out on greece. the never ending story, keep in mind yesterday the

what happened in the next ten years was a lot of talented people like meg whitman and steve bulenbock and were set adrift from disney. i think bob iger is a great cultivator of people behind him and a very humble guy in that respect. so yeah you know, warren buffett and peter lynch like to say to own a business even a 2-year-old could run. the beauty of this business is it's a business that has a lot of his own legs but he's been an outstanding ceo. he'll be hard to replace. >> i'm sure he will be. bill thank you very much. bill smid with smid capital management. ty? >>> back to the stock rally. rise with a number of factors added to investor opttism. oil prices up. january car sales better than expected and greece revealed to end standoff with creditors out of the euro zone. the close of the day, dow up 305 points to finish at 17,666. the sixth straight session of triple digit moves one way or the other. nasdaq up 51. s&p 500 higher by 29. oil prices climb to their highs of the year. west texas crude spiking 7% to settle at $63.05 a barrel, increase of 19% in three days, a move that,

hewlett-packard's chief executive meg whitman is getting more money. three years of sales decline, the company raised whitman's total compensation by 11%, ahead of hp's split into two separate companies. the numbers are in for last night's super bowl. the game drew a record 114.4 million viewers, making it the most-watched program in u.s. television history. nbc says it's live streaming platform attracted an average of 800,000 viewers per minute. the new england patriots defeated the seattle seahawks in dramatic fashion, 28-24. ♪ >> the chinese government released a scathing report about counterfeit goods, misleading ads. today jack ma spoke about the issue in hong kong. >> we have a problem almost every week. the problem we have last week, we already have the first stage solved. this thing i think is going to be very transparent. this thing is going to be pretty meaningful for e-commerce groups developing in china. it's not supported by certain government officials. it is how we can do things in a good way, in good legal procedures. and so far, we're

meg whitman insist that you found is on track, even though sales thousand 13 of the past 14 years.oining me now is jason nolan knows the company well. guidance came down $3 billion. some of that was currency translation, somewhat foreign seatac. a big component was the cost of separation. legal fees, consulting fees a lot of work that has to be done to separate the company's. that was a big surprise to me. i did not expect to billion over two years. >> talking about the free cash flow notion. it is very different. this is money the company collects. a lot of back and forth that goes on on the balance sheet that leads to that. this sounds like it did not include the cost of layoff. it could be more than that. >> is right. earnings took a hit on foreign to treating. -- that is right. that is a function of map and the strong dollar. it is a free cash flow thing when you lay people off, you pay a huge severance. we have argued hp needs to become a smaller and more focused company. some of that is lower headcount. >> the free cash flow at hewlett-packard has had the benefit of factoring

cory: and add to that one of the improved metrics that meg whitman is paid by. in her defense, it is nowhere near where mark hurd was getting paid. but she's also gotten a big pay raise in the last year. her take-home pay according to sec filings, with nearly $20 million last year. and in spite of the company's struggles, things get worse for the company, but better for her each year. is this a drop in the bucket? >> hp has had some structural issues and reduced debt pretty substantially. the company is financially better off. better than where it was a here and a half ago. that said, now the cost part of the game is over. what are you going to do for me from the topline perspective? that is what people are waiting to hear. cory: you mentioned topline growth. i guess will order of her compensation is the improvement of the actual cash flow coming into the company. but one way of improving that cash flow is selling receivables. they sold $2 billion worth of essentially the notes. basically, companies -- customers that owed them money receivables, they count that

in fact i was visibly disenchanted after we interviewed ceo meg whitman. that picture tells a thousand negative words. they were darn near given the business hewlett-packard expands all portions of tech storage and printers. there was nothing positive that i can hang my hat on. one of the two companies will give you the best chip in the 3-d printing game it is cool, even hot. the rest of the printing business is being turned over by the japanese. hewlett-packard called it fierce competition. fierce competition in the space. you know what i want? i want no competition in the space, which brings me back to what happens when money managers get disenchanted. they don't leave it entirely they should be free with the second area, the segment, in this case, taking the growth contingent and abandoning it. gross value, and that is what they define today's trading, flash flooding not more but flash flooding into high growth tech. we see the wholesale switch, the expensive stocks of high growth companies. the companies have competition, let alone fierce competition.

that's a quote from meg whitman of hewlett-packard who worked with him at ebay and bought paypal from him. james and lauren, thanks so much. >>> closing bell, we're 49 minutes away from that. could we see dow 18,000 before the close? we were within 40 points. now we're within 39 points earlier. right now. we're going to ask our traders whether they believe the rally has real legs beyond 18,000 and what, if anything, could derail it. >>> wall street bankers lined up to say, captain, my captain, place bank with us, charlie gasparino has exclusive information who's lining up to pitch derek jeter in all the bankers. the real question that needs to be asked is "what is it that we can do that is impactful?" what the cloud enables is computing to empower cancer researchers. it used to take two weeks to sequence and analyze a genome; with the microsoft cloud we can analyze 100 per day. whatever i can do to help compute a cure for cancer, that's what i'd like to do. . liz: west coast ports closed to new ships again today as the labor battle with dockworkers intensifies. the pacific maritime as

. >> david, what do you expect meg whitman to say.ions obviously if we're already hearing pretty vocally now, i would imagine it would put quite a bit of pressure on her. >> i did have an opportunity to speak to her and the cfo and we will be speaking to meg whitman tomorrow morning at 9:05 on "squawk on the street." they will tell you getting an opportunity to do that and getting an opportunity to go line by line over the costs is a really once in a company opportunity, if you will. once in a lifetime company opportunity. and so they believe that the cost structures for both the companies are going to be significantly less over time than they currently are together and that's going to be a real positive when you free people up like that to sort of allow them that zero based budgeting. they're absolutely continue to be in favor of the idea of separating into two fortune 50 companies. one as mr. garrity mentioned will be more of a growth component conceivably at least and the other more about returning capital to shareholders, that bei

meg whitman was with us this morning and here's what she had to say. >> there's some real bright spots in the business. the pc business continues to do well. perhaps the biggest turnaround in the last couple of years, last couple quarters is our industry standard server business which grew 9% in constant currency. we had a good security business, graphics business, so some real bright spots and, of course, the key to growth in the future is the turnaround of enterprise services, which still declined due to key account runoff and weakness in amia but we expect a better second half in the growth rate of enterprise services. >> sort of a flat tape today, hard to see if there's much broader impact to the ciscos and microsofts of the world. nobody is doing great on this news. >> i don't think that the others should be dragged into this hp result. this was not a good quarter for hp. two areas that you would expect to see growth, networking and software, didn't grow. those are huge enterprise businesses where hp does not have a lot of share. you expect them to gain share in the environment li

marissa mayer meg whitman, coincidence or not is want to talk a stab at that. >> i thoughts it was aood piece, it's still on minority of situations where the women are ceos to begin with and where the women are ceos are companies of activism. on the raw numbers hard to say there's a trend. that said you do see an increasing incidence of this anecdotally speaking some of the higher profile fights have been with female led companies. marissa mayer comes to mind. >> marissa mayer was installed there by an activist let's not forget if and andrew pointed that out and said as well the activists he said were offended by the mere suggestion. the female ceos didn't want to address it. it's sort of a -- >> too small of a sample size. >> when you look at the companies you laid out whether it's yahoo! go through these lists these are high-profile companies led by women. i don't know necessarily that the attack is on the women side of it. they're going after companies that they think they have the power and leverage to be able to manhandle to push to the upside. >> stef, do you see a trend? >> i

>>> please do not forget to tune in to "squawk on the street" tomorrow because david faber has meg whitman looking down but maybe it doesn't stay down. always a bull market somewhere, i promise i'll find it just for you. i'm jim cramer and i will see you tomorrow! >> male narrator: tonight on restaurant startup two businesses on the brink of failure fight for a shot at a new beginning--a vegas duo who are betting it all... >> our salaries combined last year were $28,000. >> what happens if you don't get an investment? you might close? >> both: there's a chance. >> narrator: and a family clinging to their california dream. >> our lease is up in two months, and if we don't find an investor, there will be no more hiatus urban barbeque. >> narrator: with hundreds of thousands of dollars on the line, will one of them earn an investment from joe or tim? joe bastianich owns a portfolio of 30 restaurants along with eataly, a high-end italian market. tim love is a celebrity chef with six award-winning restaurants and a retail empire.

this is going to be the catalyst coming out, which is the earnings, and know wants to hear from meg whitmanis the transition going as you get into the cloud? that's been the area they've looked for. that's the area of growth. that's the area with the margins, and that's an area that also -- that's predicted by idc. $118 billion business this year. bibi 2018, they are $218 billion. they are getting pieces of that. they will get pieces of that in the cloud world. that's what i think propels. >> anyone want to settle it here? >> listen, it still trades very cheaply. that's the only thing against josh's point that it's gone up 200%, which is a heck of a move, but it still trades pretty cheaply. the only thing is i don't see the earnings being the catalyst to move this higher. it may be a slow burn higher. >> you don't think they could crush the earnings, though? >> i think they may do well, but i don't think it's -- i don't think they'll have that size of a beat. >> monster buyers in there today as well. just keep an eye. >> i wouldn't -- by the way, i would not be fading or shorting the name i

valid however i think this is going to be the catalyst coming out and everybody wants to hear from meg whitman is the transition going as you get into the cloud. >> it was the catalyst for sure. >> for the selling. >> yes. >> hey, i'm just saying if you were right. >> i was right on the catalyst and wrong on the direction. i have a call spread so i was limited on how much i can lose. i thought scott they were going to continue to do what they had been doing for the last as josh mentioned couple years. this has been a company in transformation. she's done an outstanding job of managing it. the blame is on the stronger dollar. i think we've all gotten tired of that throughout the earnings season hearing the excuse after excuse and once again we got it again. we know they have exposure into europe and parts of africa, knew that going in, we figured at least this company was going to be able it top manage it better than they did. this is a huge disappointment i think this quarter but that even sort of affects me i think going forward now is this all they got. >> you own the stock. >> i do. >> are

a pay raise for meg whitman -- hp raised her compensation to almost $20 million.ock is up by more than 25% over the past year. the company will split into later this year. she will run hp enterprises which focuses on corporate customers. the justice department has stuffed up a five-year investigation of moody's. the issue is whether they inflated credit rating string housing boom. prosecutors are wrapping up a similar case against standard & poor's. president obama plus new budget is challenging republican on the income gap. the plan was sent to congress today. the money would be used to pay for infrastructure and education. republicans are calling me budget top-down redistribution. tired of snow, cold and ice? it is grand how day -- groundhog day and punxsutawney phil said there's this -- so there six more weeks of winter. the biggest tv ratings in super bowl history according to preliminary data from nbc, which broadcast the game. the network says new england's last-minute -- worse should we say seattle's last-minute loss was seen and 49.7% of homes in large u.s

>> not to mention marissa mayer gets a lot of heat for whatever reason, meg whitman got earlier, buthat was not as much her as it was last management team. >> i call it from popeyes, that stock doing well, a woman that's doing well. >> dupont. >> wish doing well. >> your point, i think, the right one, maybe it's multiple expansion because they've gotten -- they will argue, tryian, no it's not, it's just us. >> it's both. >> people believe that we were in there, going to make things happen and certain things already have happened and it's us. if we weren't there, stock would not be -- you'd not be talking about multiple expansion. talking about a company reflecting the fact earnings down in '12 sps 13'13 and '14. >> i found you made money in every one of the cases. most people you buy it after you hear it, the move's been made. he's a great catalyst. i think that the resolution of pepsico is the way i hope dupont's resolved. >> we haven't done pier 1, down 30%. cfo's leaving, of course guidance no good on a pretty good week for specialty retail. >> there's a guy, i'm going to spare yo

just moments away hewlett-packard's meg whitman live and exclusive after yesterday's earnings.ter that flurry of record highs yesterday in global stocks. yellen has day two of her testimony on the hill. oil remains in that range right around 50.