alphabet and microsoft. if a company like caterpillar started his call when his company was doing poorly with the way they started. we would be calling for his head. >> what's your view? we didn't talk as much about microsoft at the top to have show as alphabet. let's talk about googles cloud, as well. obviously, the growth rate has slowed but it's still a significant one. >> it's good. the cost went up. there seems to be more of a scrum involving cloud. asier is doing well just not as well. i would have started saying we are not up to what we were hoping for. carl, this idea of another good quarter. can we save that for companies who say have another good quarter. >> the research about microsoft is titledwinter is here. the damage came from asner not just the miss but the q 2 guide of 37 constant currency the largest sequential growth on record. >> the cloud is no longer in infancy. all these people come on air saying we are early on the cloud have to revisit. and a lot of companies have the cloud. i think

the money pc makers pay microsoft. that was down 15% which was worse than amy hood predicted last earning so this is bad news for pc demand three other things though i want everyone to listen for on the call which doesn't start until 5:30 should be listening for more comments from hood they said it should ease up in the first half of 2023 curious to hear in that stays the same plus, comments on fall and it spend especially among small and median businesses and finally like i was talking about earlier, is pc demand still falling or are there any signs of recovery as we head into the holiday season all three of those things give insight not only to microsoft, guys, but the macro environment as well. >> all right steve, keep us posted. your take on this. >> you know, so the it's one thing to keep in mind but i really think the cloud was, that's the engine of growth behind microsoft that's why you're paying 25 times forward earnings for this company that's been around forever. it's a cash cow. we can wax about the balance

>> well, tomorrow you have microsoft and google. if you recall about a week ago, microsoft made new lows in the year and google made new low in the year. google has advertising slowing down and saw with snap and business being diversified and microsoft, you mentioned about the strong dollar with a head wind and how the market deals with microsoft and google tomorrow after the close, that will be very important considering we just had a decent sized move from 3500 level in s&p cash. db of interaural think the reaction to microsoft and google will tell us whether it'll grow 50 in s&p cash sooner or later and once we get through that, meta has beamed up so people want to figure out if it's priced in and have app and will amazon and a lot to look at this week but i think between now and tomorrow, the chinese position could be wrong and technically like you cede with "the wall street journal" article and yields peaked a bit and let by the dow. liz: we know the chinese stocks in absolute route and s&p and nasdaq down and 10 year yield 4.2

next week is a big one for earnings what do you look at for apple, google, and microsoft? >> let's get right to. the first one, apple, continues to be the one that acts the best despite all being down there's a table we can look at to put it into context year to date of apple versus microsoft versus google tells the tale call it 30% for the other two, down plus minus, where google is essentially -- i mean apple is down half that let's look at a chart that depicts that table so you'll see here a comparative chart and the laggards of course microsoft and google are almost frick and frac, you can't see any difference and there's apple, however, standing out if we look at the three companies, the three charts individually this really gets to it what do we know about where we are in relation to where we've been microsoft's june low is annotated there. that's the line. and we broke below that low and kick back and thrown back to it, but that's where you usually fail look at google it's the exact same circumstance we bridge the june low we rally back to the level from which the s

i've got microsoft at 232 and google at 97.ou buy either microsoft or google at these prices today? >> stuart, i'm going to steal one of your lines, would not touch any mega cap tech with a 10-foot poll even at these levels, okay. we've been saying this most of the year. what people have to understand, i mean, let's call 2022 what it is. 2008 was the great recession. this is the great reset and these price haves to reset much -- prices have to reset lower than the new normal of higher interest rates and a strong dollar. it's interesting on the way up. these companies went up for pre-covid levels 100, 200% and now some are only down 15 to 35% and we think the correctionness is over. i think a lot of these things will be cut in half and close tore getting cut in half by the time we get into next year. so we will be big buyers of tech. we have to wait until this plays out. if you listen to microsoft's earnings call last night, they talked about market impression and the currency. you've been talking about it. the margins are going

we will dig into tech more with microsoft and apple dragging markets down and more on the microsoft numbert. this is bloomberg. ♪ alix: shares of microsoft are down more than 18% after their sales forecast fell short of estimates, the slowest growth in five years. were the numbers worth the slide we are seeing in the stock today? >> i think you have to remember that for the last few years, microsoft has been deemed as a growth stock so when that dips below the average, some of the growth investors are saying we will revisit this when the growth goes up to double digit that until then, we will look for reasonable price. guy: let's talk about whether this is the kitchen sink or whether we see this enterprise weakness leading into the next quarter. will this be with us a while? >> i think this is going to happen for the next two or three quarters. you typically have tech budgets going in and people start to hold back. they just don't reverse it immediately. unless we see a massive pivot from the fed were an indication that inflation is low, that would increase confidence but we won't see tech

i do like microsoft.e, the recurring revenue is really good, highly margin businesses, but you have to be careful here because you can get rerating even more just on the multiples and that could be a source -- >> you had gunlock idea that rates had typed. mark newton suggest rate rising is in the final innings. that helps out tech which he thinks looks to be in a good position to rally into the end of the year relatively speaking. so he's certainly bullish, joe, on these names more than sounds like you are >> i'm concerned i'm concerned about the earnings report as far as the reaction thereafter probably you don't get the fast recovery that confirms this earnings rally of the last several weeks but i'll say this, what will protect the down side in particular for apple, microsoft and alphabet is the buy back and that buy back will be implemented as we move towards the end of it year we know the change in the tax consequence in 2023 is going to affect them. >> we're going to get out of here in a second jp m

tonight is microsoft.hing that has been causing big tech to slide into this time period is sales growth and earnings growth. this is microsoft's sales growth over the past couple of years. over the last year closer to 20%. last quarter they reported 12.4%. we may be looking at single-digit growth. the estimate is 9%. apple on thursday, their fiscal third-quarter sales number is 1.9%, barely growing. for next year that is 4.6%. this is one of the things investors are eyeing in terms of the activity we have had. not today. a nice rebound rally. guy: absolutely. yields are moving sharply. it's carry on the conversation and set you up for what is going to be a huge week for tech earnings. we have a whole raft of them. you're going to want to pay attention. this is a bunch of stocks that have been re-rated sharply this year. five of those names comprise 40% of the weight of the nasdaq 100. they are important. ed ludlow joins us now from san francisco. what are you looking for? ed: across the fab five, those fiv

the laggards, microsoft and google, are almost like frick and frack. you can't see any difference and there's apple, offer, standing out so if we look at the three companies, the three charts individually, this really gets to it. what do we know about where we are in relation to where we have been microsoft's june low is annotated there. that's the line. and we broke below that low and kicked back, thrown back to it but that's where you usually fail look at google it's the exact same circle we breached the june low, rallied back to the level from which the stock broke down, by definition, level of override supply look at apple. apple never got anywhere near its june low and what we know from here is if in as the others fail, having rallied back to the break point, or apple were to join them, there's no way mathematically equities can go up, s&p, by virtue of the weight these stocks are in the index. >> there we go now to the trade for all three of these mike, let's kick things off with microsoft. >> yeah, so, you know, this is a tough one, of course, b

what are you looking at for apple, google and microsoft? >> let's get to it apple continues to be the one that acts the best, despite being down. year to date performance versus google, tells the tail. call it 30% for the other two down plus or minus. and going -- apple is down half that. excuse me. and look at the this chart. so you'll see here a comparative chart. the ladder of microsoft and google is frick and frack. you cannot see a difference. if you look at the three companies individually, this really gets to. what do we know about where we are in relation show where we've been. microsoft's june low is annotated there on the line. and we broke below that. and we came back to it but that is where you usually fail. look at google. it is the exact same circumstance. we breeches the june level. we rallied back to the level from what the stock broke down by definition of level and overhead supply. look at happen appeal. apple never got anywhere near the june level. and what we know from here is if as the others fail and they rally back to

how is microsoft going to navigate the current market?s microsoft corporate vice president of modern life. search in there, devices, lots of stuff stuff that people use. let's get into surface particularly the surface pro 9 interesting you got all intel across the line in a time when amd is surging we will talk about that later. but arm when it comes to 5g. what's the progress on arm, especially as we see apple with the m 1 and m2 gaining a lot of share in pc? >> yeah, john, thanks for being here opportunity to talk to you about it with the new surface devices we are excited of continuing the plan we have been on, to offer different chase with silicon and push in different areas. intel has given us a powerful platform the surface pro 9 are 50% more powerful than the predecessors also on pro 9 we are offering the s q3 chip. that lets us put npu chips on there that use the power in the cloud do advanced a.i. things. if you are doing a video call, you can keep eye contact as you move around, the camera follows you and you get better voice is

and big tech versus recession, deep dive on alphabet, meta, apple and microsoft. >>> let's dig in, it's a big week ahead of for tech two companies i follow closely, amazon and alphabet, a sense they've been already taking their medicine this year amazon built too much over the pandemic, acknowledged that earlier this year. resulted in many billions in costs to rebuild efficiency. also that giant cloud business key question, will that remain resilience alphabet also a big cloud business, not as big company has stopped short of job cuts but shopped short of hiring they said a few months ago they were focused on becoming 20% more efficient, ad model seen more resilient than meta or snap i like how b of a put it this morning in terms of the broad term teches saying these are the best companies in the world, best brands, strongest financial models, balance sheets in the world, so this week is going to be very, very key for the direction of the broader markets. >> this is not a good macro. 20% more efficient number you mentioned that they want out of alphabet there's the 20% again, a shot acr

and, you know, talking about mieg soft, microsoft in 2012 was around $32 in 2002 microsoft was around $32. so what changed from 2012 to now? it's the cloud the cloud which he oversaw created a whole new business model and i think that cloud business is maturing, and so investors need to have other things when i look at energy up almost 2% today, health care is up 189. cowls which is a free cash flow we own is at 1.6%. so i don't think you need tease big names to continue to drive all stocks higher and that you're going to continue to see this dispersion with other sectors that did not have even remotely the performance of large cap tech the last ten years. >> getting a lot of nuanced takes. what's your take always come to you for optimism, reasonable thought what do you think about all this >> look, it's very, very clear you can trace the decline in the ten-year yield to the increases as brin pointed out in the nasdaq or in the s&p, and that's what's driving in. people deluding themselves if they think that's an indication that the fed is not going to continue to hike rates because we

microsoft's warnin: , centres across europe. microsoft's warning. echoed _ centres across europe. increase. as russia's military faces setbacks on the battlefield, the fear is that it could escalate in cyberspace or by targeting infrastructure. last month the nord stream gas pipeline was apparently sabotaged, many believe by russia, and the concern is that other crucial systems could also be hit. at a time when people see what looks like sabotage on a natural gas pipeline we have to even be even more mindful than ever about potential sabotage of say, network cables for the internet and the like. the good news is a company like. the good news is a company like microsoft, we build in such redundancy that if one cable or two cables go down we have a third that can sustain all of the necessary network traffic and we can repair the first or second, but it is a time when we have to step back and be very mindful where are the risks, how do we address them? {gather be very mindful where are the risks, how do we address them? cyber war ma not how do we address them? cyber war may not have

and microsoft warns russia could attack undersea cables carrying internet traffic in a cyber strike on west. ♪ anchor: welcome to world news america on pbs and around the globe. we begin tonight in kyiv where president zelenskyy spoke to the bbc and urged russians to stand up against the war in ukraine. it comes as ukrainian troops continue making steady progress in reclaiming land occupied by russian forces in the east and south as the country. president zelenskyy told john simpson he echoes president biden's warning that any use of nuclear weapons would lead to armageddon. >> they ■begin to prepare their society, that is very dangerous. they are not ready to use it, but they begin to communicate. john: what you mean, prepare society for using nuclear weapon? pres. zelenskyy: you know, they don't know if they will use or they will not use. i think that is dangerous even to speak about it. i said you have to do preventive, noattacks. we are not terrorists. even our attitude toward russians after this invasion, after all of this eight years of war, eight years of tragedy, even after thi

tech is pressured, we have a microsoft --. we have microsoft popping. headwinds are coming from a strong dollar. the slowest pace in five years or so. we have had alphabet under pressure given that they missed both the top and bottom line. we are watching texas instruments because their quarterly forecast signals the deepening slump in the chip industry. they have done what he will compared to their peers. they may be facing headwinds going forward. twitter is the exception, the upside, we saw the boost in new york session as well as the bloomberg news that elon musk wanted to finish the acquisition of twitter by this friday. haidi: staying with technology and the big earnings, that has poured cold water over market sentiment. let us run with alphabet. what was most disappointing here? >> the core and business is not immune to the global advertising market broadly which is a slowdown. they gave granularity that they are seeing a pullback from advertisers. if you look at the breakdown in the businesses, youtube missed expectations by a much wider margin

the other hand, microsoft is a far more diversified business. right? azure a big business, nothing to do with consumers. gaming, xbox pc and windows market might go up and down, but microsoft is so diversified into things that are historically resilient, rather be in microsoft's pix. >> yposition. >> yeah, but tough saw gaming suffering a bit consumer stuff suffering a bit so for microsoft both the pc business, windows business, you wonder how that will do. then on google's side, alphabet's side, youtube already off. does search take a hit if consumer demand is slowing down? are people intending to buy fewer products do services really make up for much of that >> yeah. i think on the youtube front, the question is whether youtube can move from direct response to more of that brand-building, top of the funnel advertising that historically linear and tv mostly captured. that's always been youtube's destiny. every youtube executive talked what they're competing with really is stv. that's not the case. more of a desktop or mobile experience to me, going to

alphabet sales missed will microsoft forecasts fell short.et to matt bloxham from bloomberg intelligence. the key takeaways for you then from these earnings? >> we are seeing currency headwinds of five percentage points of drag on growth, and a slowing advertising market, both slick or full and structural. and also signs of slowdown for general but also cloud computing which is important for all these companies. anna: is the dollar story intensifying? we have seen the dollar continued to gain the past quarter. >> maybe three percentage points of growth, definitely a stronger effect this quarter. microsoft's underlying results excluding currency were more or less around the same level. for google, we saw that drop from 16% last quarter to 11% this quarter, so tougher for google compared to microsoft. anna: it sticks to google maybe a little bit more. that's the story around tech names, what about twitter. what is the latest on musk? he is calling for this to be done on friday? >> he had a conference call apparently yesterday with bankers sayin

the same thing that mark said for google you say for microsoft. seeing weakness here where people were hiding out saying this is the safe place to be, the most resilient company in software, it bodes really poorly for the rest of software. >> mark, it's jon fortt. the weakness in search, i was wondering yesterday whether we were going to see it it's one thing to see weakness in youtube overall, but search seems like an indicator -- mayb it was the day before yesterday -- an indicator of consumer demand overall. are you looking for things, whether those are products to deliver or services, but it seems more product tilted. what does that tell us about q4? what does that tell us about the set up for meta, facebook, this afternoon if even you're not talking about targeting issues, if demand is weaker, how does that bode for their results in the current quarter and how they're going to look forward. >> i should have listened to you yesterday or the day before. but google did call out advertising searches were weak the third is search is not big brand

what's your take on microsoft?xceed expectation, coming in at over 50 billion their first and third largest segments were in line essentially. azure was in line with our current basis and as a reported basis, and that's obviously very important. >> how do you expect microsoft to cut costs what other way will they help margins going forward? >> we've seen for months that the company has been clearly much more prudent in terms of bringing people on we track this number on a monthly basis. we public regularly on it, and we've known since may they were scaling back on the number of people they were looking to add. now, they did grow a head count in the quarter fairly substantially. they did note that however, we can see from the data at the end of the quarter and doing a spot check last night that the number of total openings, potential jobs, has essentially collapsed. so the lowest in a number of years. so clearly the company has taken its foot offer th that gas, and that's one way a software company would limit its e

earnings yesterday out of microsoft a

microsoft, google, after the bell. >> yeah.e you thinking? >> i'm watching that because that will be the canary in the mine for ad spending. i think they get there on the cost cuts. microsoft we'll see that lay down on enterprise side. charles: really? >> yeah. charles: google, you think does fares better than microsoft? >> i think executionwise will do better but i think the ad spend will be really tough. charles: ava, i went through, i'm not sure how updated it is, looked through all the er share funds you have, you have both of these stocks in both of those funds. how are you feeling about the earnings reports and reactions to them after the bell? >> well, i disagree with ann here. i think we have already got -- bottomed. we're 30% down for nasdaq. that is pricing a significant slow down if not recession. as we're seeing with earnings it is not that bad. most of the companies are beating. we expect a above 50% beat rate throughout this earnings season. it is to note that companies that they have fairly modest expectations in

biggest drag by far on the dow heading into the close is microsoft.ff the dow in those disappointing earnings results. boeing behind taking 81 points off the dow. a lot of strength. visa, amgen, 3m, goldman sachs all contributy higher. why the dow is not down all that much s&p 500 down 3/4 of 1% health care and energy up more than 1%. exxon/mobil trading as a record high right now financials having a good day also what's not, communication services, thank you al ba bette, meta, everything else dragged down with that some media names technology earning the nasdaq countdown. about 2% higher for the week, though, going into a thursday. 2 percentage points on the s&p 500. climbed today for positive for the dow and that's it for me on "closing bell. it's "overtime" with scott wapner. >>> welcome, everybody to "overtime. heard the bells, just getting started from post nine here at the new york stock exchange and, boy, another big hour coming up. meta reports in a matter of minutes. our obvious talk of the tage today. perhaps no mega cap company is under mor

. >> that's a big one in addition to microsoft we'll get tonight vix below 29 let's get to the judge and the half >> carl, thanks very much. welcome to the half time report. front and center this hour the moment of truth for tech that is how one star analyst describes what's at stake as earnings start reporting in a matter of hours. joining me for the hour today everybody's in the house and good to see everybody here dow at a six-week high, s&p, five-week high of course we'ring show you apple and microsoft. each having a pretty decent day as well. josh says it's a moment of truth for tech, if that is in fact the case which one matters more? >> which one matters more of the tech >> just today, microsoft, alphabet, or do they carry the same amount of weight -- >> i think there are areas of tech we already know are challenged and facing a tough 2023 just purely based on the fundamentals of their respected businesses when you look at the megacap tech, the big five, the big seven whatever classification you want to use, these companies are very idiosyncratic i don't think they're highly r

so to the microsoft kicking things off profits down, she has begun st. king in after i was trading will, can you tell us yes, so microsoft actually has beat expectations both on earnings per share and on revenue. but why is it trading down? this does appear to be that it did not meet expectations specifically on it's cloud computing services. now i would say that this shows some resilience still had a number of obstacles. a significant one is the decline in p c sales, which of course reduces the demand for the, the windows software. also, microsoft is a victim of a what a number of companies have, which is international operations that are affected by the strong dollar. of course that makes their products and services more expensive abroad and can decrease demand, but microsoft to showing resilience. so they meet earnings per share expectations, but those expectations are already pretty low. what about with google? the parent company alphabet, and that is they missed an expectation. so what went wrong there? well, alphabet had a pretty bad day. we're see

. >> let's show microsoft real quick.t is a bellwether of what's going on in the enterprise by the way, they're starting to get into business with netflix earnings beating estimates by a nickel here what happened guidance disappointed. thigh've seen between $52.35 billion and $53.35 billion, analysts look for $56 billion. microsoft's azure cloud business slowing. not beating expectations as well another sign about the strength of in this case not just the consumer but, more importantly, businesses in this sort of b to b space. >> interesting details from the consumer the company's earnings beat expectations and payments volume at visa grew by 10% in the most recent quarter the tractions were up by 12% revenue rose by more than $1 billion to $7.8 billion, and the cfo says visa has not seen any consumer anxiety or uncertainty at this point and spending is still stable and strong almost everywhere in the world. the ceo said consumers may be buying more generics versus brand names, but they're spending the same amounts of mon

the protection of some ukrainian systems frankly, this is what helped ukraine and it is not only microsoftogical company, the russians could hit the data processing center of the ukrainian government with a cruise missile, but we have already duplicated, copied, and moved this data to other centers throughout europe, but the cyber risk has not disappeared and it may even increase, microsoft warns. representatives of western intelligence are also talking about this, since the russian military is retreating on the battlefield, there is a warning that it may increase in cyberspace or on infrastructure objects. that other critical systems could be damaged while people saw this pipeline sabotage we must be even more alert than ever to potential attacks on network cable of the internet or similar but there is also good news companies such as microsoft usually take care of spare options and when one or two cables fail there is a third one capable of supporting all the necessary traffic while we restore the other cables however now is the time when we have to take a step back and think about where

>> this is raising questions around how i expectations were for microsoft. you find me a company anywhere else in the world that has done that and yet we accelerate after hours to 8%. we should mention the going into the current period, currency continues to be headwind to the tune of 5%. if you need weakness in the consumer side of the business. they did beat on the top and bottom line. when you think about the cloud unit and you take into account the impacts of currency and strip those out, growth in the cloud unit was pretty significantly below some expectations. they are facing the same factor that alphabet faced, perhaps expectations were high despite the beat on the top and bottom line. these headwinds will continue to be present into the end of the year. we are not seeing a huge, positive picture about what is to come in 2023. shery: extending around 2%, despite the fact we are seeing this negative reaction when it comes to the technology sector, we have seen some positivity from the earnings season. not to mention the share buybacks do have an annual

microsoft, like i said seems to be one of the most exposed here. and they've already given the warning that look, we're going to have growth but it's going to be more modest growth. to your point like we've seen so far early in the season, the revisions have gone down for many of the companies or they've kind of tampered or moderated their expectations in order to at least show a beat i was reading a morgan stanley note earlier this week saying they expect apple to be above the modest expectations. >> fascinating to see even if the dollar just stablizes. i wanted to ask about the report of their industrial design chief leaving and what that might mean for their future on design. >> i confirmed with apple that she is departing so she took over the design group, but i don't want to diminish her role but she is not -- she wasn't at the same level or senorty or didn't have as much influence as johnny ive did. when he departed shares fell like 1%. look, the design group is huge there are dozens and dozens of employees who work there, it's not just one p

what are the problems facing microsoft? >> yeah. well you heard steve mention a couple of them the recession is going to challenge them on, you know, the sort of hardware front and supply chain issues, that sort of thing it's worth saying that microsoft and apple have solved the thing that meta and snap have failed to, which is building big, diversified businesses that let them make money both off of selling the hardware and then selling services and raising the price on the services when they get tight. my perspective these two companies are navigating this well and i do not expect them to be significantly challenged in the next few months. >> how much weight do you give the chinese communist party meeting that happened, this reconsolidation of power for xi jinping, doubling down on zero covid policy, and what a lot of investors are spooked could mean, a real threat, competitively, to their business in china against state-run enterprises? >> yeah. i think it's definitely the biggest near-term challenge to apple. we see almost every

>> i agree with what sarah is saying especially around microsoft.k about the metaverse, it is still unclear to a large extent. if you think microsoft closing the deal with activision and netflix with the future acquisition potential. thinking of the back-to-back side with teams and potentially let's see what is happening with tiktok as we all are aware the data is touching chinese infrastructure there is a good chance that tiktok has to be blocked in the u.s. or has a fire sale at the business to someone like microsoft or to what sarah initially said like snap could be a potential acquisition target for microsoft as well you have potentially the better metaverse than what they are building. >> alphabet, snap and microsoft among the buy rated companies. thank you very much. rocco and sarah. >>> let's get a check of the top stories with silvana henao >> dom, eu is calling on russia to reverse the decision to pull out of the u.n. negotiated grain deal with ukraine. moscow suspended the agreement on saturday citing the war ship attacks. the move puts th

amazon's massive, but microsoft is the biggest. and you look at the kind of revenue that they bring in, it's pretty darn insane. and this has become the real raining maker for big tech -- rainmaker. >> the reason i love microsoft, aws the is the reason i'm long amazon. i expect overcoming headwinds and pc weakness for microsoft tonight, that's why i'm in the maim. i don't expect spectacular results for google cloud, and i expect their advertising business to tank. amazon, yes, it's a consumer name and, yes, we're talking about the consumer and all that, but it's really a tech stock, all right? yes, their primary business, how they drive their the advertising business so they're not relying on apple, it's through their retail business. so i get that. this is the margin driver for both microsoft and amazon, and i expect both of them to still have positive results even though the economy's going one way for them right now. >> and i think that's exactly right. but i think amazon and apple and microsoft are just core, foundational names

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look at the last two days, google and microsoft, two of the biggest stocks in the world, are down 10% each. in that same period of time the s&p 500 is only down 1%, and the dow jones is actually up 1%. if i would have told you three days ago that we would see google and microsoft down 10% each what would your guess have been for the s&p you probably wouldn't have said down 1%. it is remarkable the extent to which the old economy is picking up the slack in the stock market as some of these massive market caps just get completely annihilated. >> it's funny you say that because that's kind of the point cramer was making today when he was watching what the dow was doing relative to the others look at the dow, this is money coming out, furiously coming out of companies that chose to lose money and going to companies with great discipline, that buy back stocks and pay good dividends. i want to hear from you as well on now is the bar higher tonight? do we need to see something extraordinary from apple and amazon to save the day for tech or not maybe the bar's lower because now we don't reall

what about microsoft, i got a small deliver of this. the issue for microsoft is we're buying fewer pcs and spending less money on software than windows. overall the numbers shy of $50 billion for the quarter looking at revenue and that's the slowest growth in five years, stuart. azure, the cloud, expected to bring in $23.7 billion. stu: one division. lauren: one division on the bulk of the growth. stu: 248 on microsoft right now and let's see where it is this time tomorrow morning and only time will tell. lauren: they're a dow strong stu: yes and apple and they've got earnings reports later this week. lauren: yeah, thursday. hie they hikes price on the services. this is a huge deal. apple music goes up from $10 to $11 per month, it's a first. apple tv from $5 all the way to $7. the bundles go up in price too . even apple is pinched by inflation. i think that's the take away. and the other take away is, oh, if apple -- if apple is doing this with apple music, can the other streamers do that too like universal music? stu: fair question. l

microsoft at one point falling at the most since march of 2020. you are looking at texas instruments as well. disappointing quarterly forecast. concerns about the weakness in the semi-space that's now spreading to electronics like areas in the industrial market. broader weakness in tact. the two year yield, yields are down by five basis points. you saw yields are on the session. it seemed like it was a hawkish 50 basis point hike so they pared back what they thought the market was going to do but they still talked hawkish which led to a little bit more buying across the curve and in the treasury market. alix: some comment -- guy: some comments coming through, getting closer to the end of the tightening cycle. that is interesting. it may be points us in the direction of this kind of 75 to 50 to 25 kind of cycle we've been talking about. essentially diverging as well from the fed or is he. or is he just front running the fed? it doesn't feel like it just yet. alix: definitely not. at how much can the fed diverge from that idea if the data keeps weak

and giving a lot of thanks to microsoft to be able to do this. so i think they're being conservative to carl's last question about the impact early from a sub perspective and taking like from an impact perspective on the model, taking the view of it's going to be a couple years, you know, the targeting, it's going to be -- >> but john, what could go wrong i guess is the question. not how netflix is handling it when you see the rollout for companies that don't do advertising, what could go wrong? >> i think they're in good hands with microsoft as their partner. and again, like i said, they're going to do four to five minutes of ads hulu is doing 11 minutes for the consumer it's a good proposition to start 20 to 40% below the base and a limited ad load and also doing ad frequency caps. meaning consumers watching a show isn't going to see the same ad during that programming i think they've been conservative talking to the street about it. i think it should be a fine start and we don't have the huge expectations based into numbers at this point. >> j

look at microsoft. it is not a growth stock anymore. it's a core stock. when do you buy the best company in the world 25% off? come on, use your head here. you're not thinking seeing forest through the trees. charles: phil, that is why we have you on to look at the whole thing. this is the whole market heat map. this is an hour ago. to phil's point, a lot of green. look at names getting hammered, google, amazon, meta, apple, microsoft. golly! there was a time market would be devastated. for most of the session the s&p was higher without the four horseman. in many ways good news. i want to bring in kaltbaum capital management gary kaltbaum. you always tell us to watch price. you mentioned it a couple weeks ago you saw the turn. how about price and resolve. i'm seeing a lot more sessions we could be down a whole lot more. buyers are stepping in, does that mean something? >> look, we're now in a near-term uptrend and the market overrides everything. that is how you see on a day like today where google and microsoft cough it up badly. by the way texas instrum

we saw the top and bottom beat from microsoft. i think it is an opportunity for google. caroline: microsoft is being dragged lower in after hours, trading large part because of music out of alphabet, there was a this is a company that is beat across the board. still posting revenue growth, more than 9% fx headwinds, where you see the concerns in terms of corporate spending, any? guest: it seems like the biggest concern and what drove this stock down after hours is that it did not hit its azure number. the market was looking for 40%. it came out at 45%. fx was an issue across the board at google. i like the fact that it was diverse, the company performed in most categories. in productivity it performed, the intelligent cloud business it performed pretty well. even in personal computing on the consumer side, a lot of people were concerned. it came in as expected. i did not feel as negatively about the quarter. 35%, 35% growth is still above -- a low bit faster than the google cloud business indicative to me the enterprise is stronger. that is why i alluded to the ibm resul

there's names that i love, google, jp morgan, microsoft, those are the names we're buying.tuart, now, to be positioned for november. stu: thanks a lot, see you soon. fox released latest power rankings. we're three weeks to the midterms, where do things stand? susan: advantage republicans in the house and fox power rankings showing the gop winning a 15-seat majority in the house and possibility extend to 17 seats in the best case scenario. notably making gains by the way in the west despite the democrats remaining in power out west. there's two competitive districts in california and oregon. that is expected to swing red and inflation still a top issue then it's crime but almost 90% of respondents are concerned about higher costs right now so dinner table issues, senate is a lot tighter. you have four tops of states and that's within the margin of ere error and power rankings and democrats 47 depending on where georgia, ohio, and four toss up states go, that picture could change dramatically. i was looking at the abortion issue, it's only the sixth top issue right now. stu:

snapping a three-day winning streak ending down on the weak results from alphabet and microsoft. this morning, nasdaq down in trade. dow jones industrial average indicated higher by 140 points look at the bond market. yields are higher. 10-year treasury yielding 4.06% at this hour let's look at energy where oil is trading and we're higher for brent crude. $95.72 cryptocurrency with action and bitcoin above $20,000. still down as is ethereum. let's go around the world and asia overnight hong kong and south korea bounce back bidding up the tech companies after the selloff in the week. alibaba and tencent and jd.com up sharply jd jd.com up 6% mostly lower session so far with ftse 100 slightly higher more on europe in a moment. >>> to the top story which is meta set to sincontinue the freefall. shares sinking 20% in pre-trade. set to lose $70 billion in value at open. this is after the unexpected fourth quarter forecast. we have arjun kharpal. investors with little patience of what mark zuckerberg said yesterday on the call out. >> reporter: absolutely, seema three things stood out f

amazon, alphabet, meta, microsoft, all on the calendar next week. >>> plus, healthy gain vaccine makers getting a big shot in the arm. get it they're not the only one to skyrocket higher the chart master with a look into the trades. later on, gushing profits. one oil company notching its best report in seven years can the gains continue we'll find out i'm frank holland in for melissa lee. on the desk tonight, an all-star cast with that, we start with a strong rally to wrap up the week the major indexes or indices, all closing 2%, with the dow finishing just shy of its 50-day moving average for the first time since september 12th. it's now up three weeks in a row, longest winning streak since last no. the s&p and nasdaq posting solid gains today. meanwhile work saw am big interday swings in some other markets. take a look. the yield on the two-year treasury swinging 20 basis points from high to low, and the greenback, the dollar, finishing the day nearly 2% off its intraday high. all this as we count down to a big week for tech earnings microsoft, alphabet kicking things off tuesday how

i'm not a meta player, i don't own google but i own microsoft. microsoft is down 25%.i think you have to back up the truck. neil: a lot of people with held big name stocks, apples, microsofts, google, when it was facebook, bottom line they have seen huge losses if they haven't sold. should they hang on to them, see what happens? >> listen i guess it depends who you are. i've been riding the wave like everybody else. i own microsoft. i haven't sold it. the same honestly with my, my amazon i will wait because i'm a long-term investor. i'm not a day-trader, if you want to go in and out, in and out that's great. you like all the commotion. if you're a long-term investor and names you bought are good, solid names and theme has not fundamentally changed -- microsoft $54.4 billion in the quarter, versus 54.3 they were looking at. there was issue with azure i get that but i think it is way overdone. neil: of course the azure the cloud database program here. let me step back to get your view what the market is telling us. of course this four-day advance bit dow. i never want to

gary, look, google, microsoft, meta awful performance, all of them straight down. would you buy any of them? >> negative. what you have is some of the most overowned and overloved stocks that their business is heading south. when i mean south from strong growth rates, four quarters ago, google's earnings were up 45% year over year. this quarter minus 15%. meta, their earnings started dropping a year ago and now a whopping 49% drop in earnings and for me the most amazing part of it in the conference call last night, mark zuckerberg, oh, we like the trajectory we have. i'm like, wait, are you looking at your stock prices, dude? stu: really. >> microsoft better than the rest but their earnings from the 20th, last quarter only 4%. in order to get things going again, reaccelerate is needed but right now the market is the market. you know, momentum is to the downside and we get 20% of the nasdaq 100 tonight with app and will amazon and that'll be -- apple and amazon and two more where earnings and sales decelerated and see if there's anything decent to say going forward.

stuart: are you going to buy more microsoft?'m probably, if it stays down like it is, we get a little bit of a hit in this next week or two from that 5-15% an a list revision i'm talking about, you get i'm going to. i'll be like a viking at an all you can eat buffet. stuart: [laughter] not heard that one before, but i'm going to steal it and use it myself. i'm just, i want to get back to the good old days where you could get in in the morning and see that market go up and be reasonably secure. we aren't there yet, are we? >> [opening bell ringing] >> no we're not and the fed is the problem and of course the administration continues to dump fuel on the fire that's the problem so the market wants to fix this , we know what these great companies are but the fed is interfering with what the free markets want to do and until that switches itself out we'll have to put up with this nonsense. stuart: all right thank you very much, keith. the market has now opened. lauren, itching to say something , aren't you? lauren: i think you're try

one of the big numbers from microsoft earnings was the slowing cloud growth. that is something that wall street was not happy with. part of that is because companies are tightening the purse strings when it comes to paying for cloud services. that is one of the big things. we also saw that microsoft's revenue from sales of windows licenses to pc makers was down 15%. that shows the broader impact of the slowing shipments that we have been seeing over the last quarter. that was a big message. some of these economic ramifications are impacting big companies like microsoft. fo yo, let's ta about for, meta, the company that owns facebook. this is not cheap, tell us about what makes this headset different. is it worth the puse thnew met $1500. that is not cheap. that is an investment. there are interesting new technologies that come inside of it. one big thing is that it has the pass-through cameras, allowing you to see the outside world in color, while in the headset. there are better objects, and a slimmer design. there is also i tracking. for most people, this is

including microsoft.tock that the broader tech sector is represented in somewhat dan niles, from satori fund, joins us now dan, want to get to tech specifically but i want to start with europe, especially given the liz truss news this morning. is that in a way positive for the market because there's a sign that, you know, change is coming, or is it additional volatility that affects all sorts of companies including an ibm, which called out europe as an area of concern, certainly for q4 and perhaps into next year >> well, i think you're right, jon. when you guys had me on last time, it was a day of that horrible cpi print what we said at the time when the market was down in the morning and getting beat up, we think the month of october will finish up and the odds speak to the fact that it should be up about 3% or so which is better than normal. because there's a laundry list of things that are bad, including what was going on in the uk and so any of those things break in the positive direction, uk, russia,

. >> not just them, but we're seeing it across the board, seeing it with microsoft and seeing it with alphabet and we're seeing it here i like what he's saying. i mean, i think that this multiple kind of ridiculous and if they can improve their earnings that much seemingly so easily, why not do it. >> i mean, growth at all costs in this environment is not in vogue. >> no. >> investors do not want to see, that and what he wants them to do in part is to cut meth verse spending specifically in half to $5 billion. >> which is somewhat problematic when the future of your company is based on the metaverse it would appear. >> because nobody knows what it is. >> exactly. >> i'm not trying to be glib and that's why the stock has been more than cut in half since its all-time high and trading at levels, to karen's point, trading 12 and a half times and off by a little bit. trading two and a half times revenue. dan can peek so that valuation is compelling. the problem is it's been compelling to the last 30% of the downside who knows what they are going to say. trading at levels we haven't seen si