it's a big tech battle as microsoft microsoft to be the world's most valuable company in the a.i.ution could be a game changer. later we will take a look at the resilience of big oil in america. we begin as always with three things investors are to be taken about right now, stocks rallied in response to a strong economic data and expectation for march are fading but the market seems unfazed. netflix shares are soaring after a stellar fourth-quarter earnings and a major boost to subscribers, will take a look at the streaming services prospects. finally the boat we backlash mounting, travelers are fearful of flying on 737 max, united, and faa is blocking boeing from increasing production. investors will watch earnings closely next week. on the "barron's roundtable" ben levisohn, elizabeth o'brien and jack hough. the s&p just missed closing at a record high. there was another winning week for the market, why does this rally keep on writing? >> it's the economy stupid. >> he already called somebody stupid, were seconds and. >> i have more. >> is about the economy gdp was fantastic, th

we will talk about microsoft hitting $3 trillion. that's a big deal, but so is stephanie link's moves yet again stealing the thunder today like you did on friday when you sold out of meta, you bought more amazon and today you have bought even more amazon, why? >> yes, i like it. i like it a lot. it's traded over 20 times ebitda aws should see a re-acceleration to something like 15, 16%, maybe even higher in the second half of the year. we'll have to see. retail margins are on the rise and i think there's more they can do as their costs come down and i think the consumer is on fire look at retail sales last week 9.4% was online. they're continuing to see momentum and ad revenues were really weak last year. i think that will pick up for the whole sector, the whole faang complex, of course i think that it's underappreciated amazon. the valuation sort of makes sense to me. >> kari, you own it. reports next week. it was named a top pick by morgan stanley today people have been getting in line reiterating their love for it. >> i think amon

coming up, microsoft is opening up its ai system to consumers and we will be joined by the microsoftive vice president on that. a story we are tracking, google is reportedly laying off hundreds of employees in its advertising sales team. they've been a little softer, 0.3%. this is according to a memo that insider has seen but bloomberg is not verified the report. the shares are a little softer. this is bloomberg technology. ♪ what about zocdoc? so many options. yeah, and dr. xichun even takes your sketchy insurance. xi-chun, xi-chun, xi-chun! you've got more options than you know. book now. when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh ed: welcome back to bloomberg technology. a quick check on the markets -- we've had a choppy session. the nasdaq is softer by 0.3% and fed speak is a big driver of this market. fed governor waller spoken an event this morning saying there is no reason to move as quickly or cut as rapidly as in the past in the market is rethinking its bets for how quickly and how

microsoft, alphabet, amd.corecard on wall street, especially for big earnings. we are here with morgan. it >> the tech sector is dragging down the nasdaq ahead of a trio of earnings this hour. coming up, instant analysis of today's liners. >> while we wait

back to microsoft.t as a jiejd toll taker on all of global enterprise, almost like a tax on global productivity. google is more of a tax on global advertising but it's through that core search bar, and so the concern we have is that as these ai agents as we were talking about, as they become more important in our world, the fear is that they -- not just chat box, but the agents themselves, that agents will start to use various methods of search. we're already doing it when we went from desktop to mobile. we started to use more -- airbnb for searching for travel or amazon for searching for products. the concern is will they keep the same number of queries, and if they do, the question is will they maintain market share in the digital advertising dollars. >> when it came to google cloud, actually better results than expected. very quickly, we've got to let you go, are you confident in the google cloud story going forward? >> yes and no. most of these things -- we're more confident in aws and azure. i thin

nvidia, amazon, meta, alphabet, microsoft, apple. these six stocks are going to report year over year earnings growth of 53.7%. if you pull the companies out, the actual and the estimated results, earnings for the remaining 494 companies in the index are actually negative 10.5%. so all of the growth we're expecting this quarter, you're either going to hear about it this week or not, ain't coming from anywhere else. >> earnings, jenny, have not been great. overall not great. i thought ken griffin's comments were interesting about the overall environment. we may get goldilocks, may get a soft landing, may get no landing. looking at a moment in time inflation is in the low 2s. the fed can start to cut rates this summer. the overall economy looks pretty damn good what ken griffin has said and he's managed their money at citadel better than almost everybody over the last years at minimum. >> that takes me back to the beginning of the year thoughts. you're right, earnings haven't been great. and we need earnings at plus 12% growth or we wi

. >> we've had microsoft passionate about this.y for managers -- if they're not taking stuff seriously. >> this is one of the key areas where we have to get back to get this disclosure. it's part of the new s.e.c. rules. we had four days, once we figured out we had four days to disclose it. this is extended to november, actually came out last week. this is why the security industry, and the -- how important this move is from the back room into the boardroom. because of this personal liability, because it what happened with the s.e.c.'s mandates. it's actually critical to make sure that organizations can protect themselves by identifying events like this, or an incident before it becomes a massive breach in a short period of time. >> let me play devils advocate. i am microsoft, i'm doing this interview. kramer is so in love with crowdstrike. just completely strides. i'll ask you a question. have you stopped midnight blizzard? >> we have stopped midnight blizzard. we call it cozy bear. this is one of those areas where, again, this is

>> microsoft.o see is it dip m but i don't think anyone's ever going to do any wrong by buying microsoft either here, really at new highs or on any kind of dip. i'm looking to add to a substantial position on a dip. i don't know that i'm going to get to see 5 and maybe 10 so % dip if the market turns around here. i think we could see some profit taking if the rest of the week we have some negative news from some of the other big tech names. i think we could see a selloff as we're seeing a little bit this morning. in any case, that is a great time to buy microsoft. the same thing with amazon. i'm not so sure amazon's numbers are going to be top of the pops. i think we may see a little bit of a selloff in amazon. those are great dip-buying opportunities. those two companies are going to continue to do well. microsoft if still, stuart, my favorite stock of all time. stuart: i love to hear a you say that. google, i think they're off about a 6%. where are we, let's see google, they're down 5.33%. that's

. , . , , ., us government has been asking microsoft. , , ., microsoft.rosoft. this has been a pattern though, the accusation _ microsoft. this has been a pattern though, the accusation that - microsoft. this has been a pattern though, the accusation that china | though, the accusation that china steals intellectual properties, it's a consistent problem. what do the intelligence agency say about it? and do microsoft lose people who have the expertise to other chinese companies?— companies? that's what's really funn as companies? that's what's really funny as they — companies? that's what's really funny as they were _ companies? that's what's really funny as they were worried - companies? that's what's really funny as they were worried that | companies? that's what's really - funny as they were worried that one of the risks was microsoft brings these wonderful researchers together, they work on great tech, and then they might even go work for and then they might even go work for a chinese company, that already has been happening, and it's notjust going to

microsoft as well, that focus on crowd growth. an end, another one contracting because i gave a week revenue forecast for the current period -- amd, another one contracting. similar to what we saw with intel. qqq is the eta that tracks the nasdaq, and that is dropping, but let's change off because we just had futures coming online, and a picture here is a bit of weakness ahead of the open. traders sifting through those earnings, but you've also got the fed decision coming up. treasury issuance, jobs numbers as well as -- jobs numbers as well, so there's a big focus on the days ahead. paul: let's get more detail on those earnings from our technology reporter. let's start with microsoft, a beat on revenue and profit. what were the key drivers of that performance? jackie: digging into some of the figures, the main number we have to look at, that investors care about, is that azure cloud services unit growth. that came in at about 30% compared to last quarter. that beat expectations, and the company said that about six percentage poin

microsoft would be the other.hink it will be very interesting this quarter today to get a look and see how ai is impacting both microsoft and google. and they could be in opposite directions. so with microsoft, people are looking for true growth. both in the cloud business as steve mentioned, but also it's going to start hitting the bottom line and the top line. microsoft is charging customers $30 per person per month for some of these co-pilot services at businesses. once those numbers get significant, that's also going to be meaningful, although they have cautioned that it is very early for that. on the google side, it may show up first as a hit to revenue. and that's because there is this theory out there that ai is going to take energy away from search, take views, take montization away from search because ai gives answers, and the search business is dependent on this unknown and serve up advertiser links, as well as guesses on what you want, versus one answer. >> now, the interesting part about the search deb

we are from microsoft and amazon alphabet. is their capacity that they could step up to the bar and make a substantial difference? chris: we see these companies already making a difference. google has a chip which has been producing for some time. many of its own ai models are already trained on this chip. amazon and microsoft are somewhat less developed but still have their own chips that you can use in data centers. openai is considering building out its own network of chip factories. ai requires tons of computing power which means tons of investment numbers. right now there are a couple of companies. nvidia the most important that can reduce these advanced chips for ai. it's not a surprise whether you're microsoft or amazon or google you want more sources of supply for these ultra critical chips. david: what's the gaining factor? what's keeping others from doing it? is it intellectual property, know-how, what keeps them from this? chris: in videos core advantage is its ecosystem. most of the advanced ai systems have been de

and microsoft and alphabet and more.e tee up the numbers to watch. >>> it is not just earnings that will have an impact today. the federal reserve kicks off the latest meeting with new calls from lawmakers to cu

we saw this with microsoft, amazon, google.ompany's that made bid cuts last year and are doing well financially still see it in their interest to trim a couple percentage points periodically. i expect this to be a trend. ed: the pointed difference from this time last year is the size of the cuts. if you go on any website of those that have cut -- salesforce, microsoft -- they're also hiring, and where they are hiring is clear as day, brody. brody: it is two letters we have been hearing every day -- ai. salesforce has told me that they are really hiring for engineering roles and for those who go to market for their ai products. i think a lot of companies, salesforce more than most, really focused on peering back these traditional sales and marketing roles. now, they are kind of investing in what is going to bring them further. unfortunately for some workers, it is probably higher than it is to retrain some of your people. ed: goodbye, marketing. hello, computer nerds. we sit down with intel ceo pat gelsinger amid company results

next, microsoft's latest milestone. the tech giant doing something for the first time in its 48 year history. we will drill down on it and find out what could be next with that stock when we come back on "closing bell." do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. our friend sold their policy to help pay their medical bills, and that got me thinking. maybe selling our policy could help with our retirement. i'm skeptical, so i did some research and called coventry direct. they explained life insurance is a valuable asset that can be sold. we learned we could sell all of our policy, or keep part of it with no future payments. who knew? we sold our policy. now we can relax and enjoy our retirement as we had planned. if you have $100,000 or more of life insurance, you may qual

>> i think it begins with microsoft. i think microsoft is absolutely critical with that earnings report. let's be clear the expectations for all of the mega cap companies is incredibly high. they have a high bar to exceed. in terms of the impact of the market, i think that there has to be something within the earnings report that is so overwhelmingly disappointing that it will reverse a lot of the positive momentum in the market. i think a gentle miss, a small miss, i don't think that's enough. i still think there's enough entrenched buying in the marketplace for these companies. i think microsoft sets the tone for the week for sure. i don't think we should make too much of the fact that this could reverse the rally. i think it's going to be very difficult to reverse the positive momentum that's in place. >> bill, it's interesting, you have had a reversal of sorts already from broad to back to the mega caps, so maybe to joe's point, that only increases the pressure because now the money has been flowing back, and year to

>> microsoft had big market moment last year and everybody started thinking about microsoft.en april and november, 80 lbs cayman strong with their bedrock services. i think aws will be very strong. it's helping people think about open versus commercial open source. there is a lot of activity there. rising tides in ai will raise them all next year. annabelle: what about when it comes to devices, there is ai integration we are seeing into the likes of samsung for instance. how do you see that playing into the competition in that area of the market? >> you have ai at the edge, and there's clearly no winner in that space right now. this is one area where companies like intel and samsung win, chips can go into the devices that will make those devices smart and intelligent and ai ready. so there will be a lot of opportunity in that space. it's just that longer rollout in the sense of many different devices. paul: maribel lopez from lopez research, thanks so much for joining us. later we will speak with the intel ceo for more on the company and the industry outlook as well. that wil

that microsoft had essentially won that race? >> i don't know that any race has been won yet. in ai particularly. the race that microsoft has won very clearly over the last 30 years is in productivity applications. you look at the way the average business uses microsoft and how important it is to them, their email is coming in. they are creating documents whether word, excel, powerpoint and other eckel patients and we look at forward and think ai, every piece of data that comes into your organization is going to go through ai, and that is going to happen at microsoft on their servers as you are using office 365 and to the extent you are sending out information, that will go through ai and it will guide the worker. the knowledge on how to spend their time and what to focus on and the potential value for microsoft is tremendous. i don't think that value has shown up yet in their earnings estimates, and so we think the stock is, while it is not necessarily cheap for the growth , we think the growth in the coming years is going to be

and microsoft and alphabet and more. we tee up the numbers to watch. >>> it is not just earnings that will have an impact today. the federal reserve kicks off the latest meeting with new calls from lawmakers to cut rates sooner. >>> new concerns of the u.s. consumers and it may be fading as shares of whirlpool fading. >>> and on a goodwill a.i. tour as openai and microsoft face headwinds. it's tuesday, january 30th, 2024. you're watching "worldwide exchange" right here on cnbc. ♪ >>> good morning and welcome to "worldwide exchange." i'm frank holland. >>> let's get you ready to start the day with the check of u.s. stock futures after the s&p closed above 4,9 hundr00 for tht time ever. you can see the market is red across the board. the dow would open up 40 points lower. the major indices are on base led by communications services with netflix and meta and verizon up double digits. we have to check the bond market. bonds are declining. benchmark at 4.05%. down from the levels we saw yesterday. also looking at the energy m

alphabet is comfortably behind aws and microsoft azure.this quarter, it has positive momentum. they completed its first year of profitability, which is not easy. things are looking up, especially considering how central google cloud is to google's broader ai ambitions. katie: appreciate your time. quick look at stocks hitting highs and lows today. 52-week high here after reporting fourth-quarter earnings that beat. citi getting high on the bullish call by morgan stanley. gsk upgrading its long-term outlook after a successful launch of its new rsv vaccine, good for 2.2%. new york community bancorp falling to record lows after reporting a surprise loss in the fourth quarter and a cut to the dividend. you can see that in the chart. what a day. we continue to follow the story. coming up, bloomberg technology. ♪ xfinity rewards presents: '1st and 10gs.' xfinity is giving away ten grand to a new lucky winner for every first and ten during the big game. enter daily through february 9th for a chance to win 10gs. with the ultimate speed, power, and

i whereas microsoft was one of the leaders?— whereas microsoft was one of the leaders?007 launched the transformer, which was the foundational model for these new generative ai models, these large language models but recently it has fallen behind on one of the reasons it has fallen behind microsoft is microsoft has made $13 billion of investment in openai, which made chatgpt, and eight lakhs for a number of reasons that microsoft is ahead. first, because the cloud revenues are about 42% of microsoft's business but only 10% of google's business, and cloud is the foundation for al because all the data for al sits in the cloud, and second because microsoft appears to be leading, in terms of implementing ain its products. if you look at google, 80% of its business is ads, and most of that is search ads but in the age of ai we might not even need search, because ai will be embedded in our workflow, so we won't need to have a separate search tool to find out what we want. ~ . , ., want. which is quite an interesting _ want. which is quite an interesting thought i want. which

microsoft has the whole industry.e consumer touches everything. >> it's not just that, they have the second largest cloud offering in azure. they've got a direct tie to open ai as a huge investor there. is there any other story within megacap technology or elsewhere that can rival what's happening with microsoft right now? are other megacaps a catch-up f trade maybe in some way? >> i don't think there's a rival story but i do think there's a catch-up story. last year it was all about the gpu. nvidia jumped way ahead. this year is all about implementation. last year microsoft is the only company that got the implementation story right. we saw what google did with gemini and aws did with bed rom and its story. there's a strong possibility that all the market share isn't going to one. we know that aws has strong partnerships and we'll see later this week what they come up with. we know google had its eye on ai for multidecades now. these companies are going to come out with a monetization story. it needs to happen soon b

google, meta, aka facebook, microsoft, now probably elon musk’s company.ies that develop virtual and augmented reality. it is our near technological future that causes some. salvation, the fact is that the human brain is designed this way, whether a person is in virtual reality or the real world, his chemical processes are the same, the so-called internet addiction, it cannot be stopped, if there is research about what can be cured drug addicts, alcoholics, then internet gaming addiction... doctors cannot deal with this addiction these companies can cope, of course , their most important strength is that they control the discourse, and today people spend online according to global statistics about 6 hours a day, this is a lot, and in fact we spend most of the time using or social networks, or email or search engines, yes, that is, we look for information, read the news, this largely forms that information fund. sphere, on the one hand it becomes very dangerous, since it invades all areas of life, including personal life, yes, but it is really capable of be

microsoft too. there is a number of facets that are driving the microsoft growth story. read accelerating 16% topline growth this quarter. a lot of the focus will be on their generative ai pivot. how that's coming through in revenue, but also that openai partnership and what they see next for that. you have things like the activision m&a which is playing in, too. very complex story for microsoft and similar to google. tom: we will unpack all of that when the earnings come through later today. matt bloxham from bloomberg intelligence and the preview around the big tech earnings story. we will hear from the ceo and chairman of baker hughes lorenzo simonelli. that's at 6:40 a.m. u.k. time live from florence.but first our interview with amrita sen. founder and director of research at energy aspects, talking about the oil outlook, moments after saudi aramco announced that it would keep capacity at 12 million barrels a day on an order coming through from the ministry of energy not moving that higher to 13

microsoft was up 65%. you have to bear that in mind before you look at the premarket price action and consider the numbers of yesterday. annmarie: i cannot agree more. the bar was incredibly high. we were asking yesterday is the bar high. the answer is absolutely. people want more. these earnings were not bad. microsoft's net income rose to the strongest quarterly expansion going back two years. google talking about real expansion in advertising revenues. but it was not enough and it came in slightly disappointing on the google site. the same story terms of projections for some of the ai outlook and chips related to that. this is about high expectations and unrealistic expectations not being met. jonathan: you mentioned microsoft. the strongest revenue cut since 2022. services sales gaining 30%. that is decent growth. annmarie: this is on the hopes and dreams of artificial intelligence. here's the key question. how quickly do investors need to see the ai monetized? right now it is driving a lot of demand w

>> microsoft. >> you would buy microsoft?. >> it should be apple. >> the interesting thing with the regulatory stuff, apple is about to get hit where microsoft was 20 years ago and they will have to go through the slog. it is interesting to see microsoft back at the top again and leading the innovation wave and apple is heading into it. >> there is a $1 trillion valuation in microsoft that is a.i. >> waiting to be unlocked. >> yes. it has to be unlocked to get to that value. i think there is almost no a.i. valuation built into apple at all. >> fair point. >> what is the issue for apple? a gag gadget maker? >> so much more than a gadget maker. the services and ecosystem. >> at the core of it. >> my son thinks so. >> it will get more dynamic with the a.i. tools they are selling. they are selling it to consumers. they opened it up. they are the only ones doing it. >> i can't sell it for 20 years. what will i buy with it? there's not a lot i'm going to be doing. >> where will you be in 20 years? >> i will be right here. >> still

let's talk about microsoft first.he detail we got, the 6% increase in revenue because of ai, was it just because they could not pay it forward for this coming quarter that disappointed? guest: i don't necessarily think so. these stocks were up substantially your to date, up over 8%. microsoft was up or near up 70% on a nearly 12 month basis. expectations were high going into this quarter. for microsoft, they were able to quantify the impact of ai on the growth of cloud unlike alphabet or google. which i think is part of the differential in terms of why the stocks are behaving as they are. caroline: alphabet, less detail on what contribution ai will have particularly on search. what about the capital expenditure, investment to bring about the ai prowess? is it too much? guest: it is what is needed. nvidia has talked about the pricing of their chips in both alphabet -- and both alphabet and microsoft have talked about capex increasing substantially in 2024. that will be an extra spend by both of these into data centers,

microsoft versus alphabet, when you look at the two stories, it's clear microsoft is given the ai premium over alphabet at this point. >> i do want to point out and remind viewers, advertising revenue was up from a year ago. cloud revenue was up 26% from a year ago as well. the growth figures are still coming in in double-digit territories, but yesterday's numbers were so lofty. great. what's next? amazon? >> for sure. >> all right. we'll circle back with you tomorrow. >>> in the meantime let's talk a look at how european markets are faring. it's been a really busy day in terms of earnings. we started off the show about the price action we've seen with novartis, one of the worst performing stocks. the stoxx 600 down 4.6%. charlotte is over in copenhagen speaking to the pharma company novo nordisk. it's up 1%. a new record high. a focus on the fed meeting coming up later on today. that's it for our show. i'm joumanna bercetche. nt.e"s mi exchang icong upex i knew there would be a lot of orders to fill and i wanted them to ship out fast that's why i chose shipstation shipstation helps manag

we've forgotten his first chapter at microsoft, the antitrust trials in the late 90, the late 1990s. it was at the height of this pr crisis. he was one of the most reviled public figures on earth. people were throwing pies in his the simpsons was ridiculing him. in this moment of public crisis, he becomes a great philanthropist. very quickly. he goes from greedy to generous, from cold hearted to kind hearted. of course, bill has not really changed, and the way he runs the gates foundation is indistinguishable from the way ran microsoft. it's about exercising. it's about taking control contro's easy to say, well, gates is an anti democratic figure, but he's giving the gates foundation at this point is giving away close to $80 billion. all of that money has to be helping people. right. and of course, the gates foundation's is helping people through a narrow at times in places it might even be lives. it is saving lives. the gates foundation is putting lots of money into vaccine procurement and distribute vaccines in arms save lives. but that's not the whole story story. on net, the gate

i think that is what you've seen with microsoft because the numbers were in mind and microsoft is a diversified business with strong position in the consumer and corporate sector but the games business as well. i do not think there is anything that came up from the microsoft results that made us -- brought any fundamental concerns about where they are going or where the sector is going. it is just it was not quite good enough or it did not quite beat the very high end of expectations as a consequence of profit-taking. tom: so that is the detail and context around microsoft. what about amd and alphabet? where is the concern with those companies? robert: tech is a very disparate sector with many business models. amd i think, for the factor between these two if i can try to draw that, the reality is looking at alphabet first of all, advertising, search advertising still forms the core of their business. of course investors are excited about the potential long-term upside in ai. but search advertising is where the business is at. the revenue numbers came in slightly below expectations. that raises

let's look at apple and microsoft. apple has had the top spot until friday's close where microsoft was slightly ahead of that and i believe it still is as those stocks are vying for the top spot now you have this report that the iphone is being cut amid demand fears there interesting, josh, what's your take on this apple has been a real good stock since the beginning of the year. it has not traded well technically it's looked bad. but what now as it gets reiterated to buy at deutsch and $200 is the price target for them >> you can own both stocks you don't have to pick one over the other, have exposure to both by virtue of index funds or active managers who are chasing index funds. we all own the stocks. what's interesting about apple versus microsoft is the trend has reversed in the last three years relative to the last 20. we took a look at this apple's market cap has been larger out of 2,500. so 88% of the time apple has been the bigger stock. over the last 20 years apple has done 37% a year versus microsoft's 17 in

microsoft wanted him rehired.ad this new board that formed that shook things up. so you had the u.k. starting their official review, and now the e.u. is considering it. one more thing to add, the e.u. commissioner, marching recent messenger, she's going to silicon valley this week to meet with some of these big tech company including openai. stuart: okay. they're coming over here to see how we do it. [laughter] lauren: yeah. and take back what they learn, perhaps. stuart: those europeans, i tell you. qualcomm just beat out ibm for the number two spot on the u.s. patent list. why is that important? if. lauren: qualcomm was granted the second most patents last year, over 3800, so an increase of almost 58%. and it's the first time in three decades that irk bm -- ibm, another american company, was actually surpassed. all in the u.s. was granted far more patents than any other country. samsung, however, is still first. qualcomm in second place. tsmc, then ibm, and apple is in seventh. i didn't see microsoft at the top

anig microsoft investment.nd from a law enforcement point of view, what was important for us is to see if there was a change of control because if there is a change of control, then it is de facto an acquisition. so this is why we have been asking questions and we will soon have a conclusion as to whether or not we think so. >> is it just a fine? people are seeing that for big tech as a cost of doing business in europe. >> well, actually some of big tech companies they have a better business in europe than they have in the u.s. europe is a very attractive market. you find a lot of people who are movers on technology. you have a lot of people being very well connected to our digital infrastructure. i do think that it is worthwhile doing business in europe. >> all right. we certainly appreciate the answers on so many different investigations and areas that you're focused on as always. commissioner, thank you. >> it was my pleasure. good the see you. >> good to see you, too. in washington today where not too far a

that includes microsoft, apple, meta, amazon and alphabet. watching the data with the look at home prices and adp employment figures ahead of the jobs reports on friday. you get the latest policy decision on wednesday with jay powell speaking after the decision. let's see how the trading day is shaping up. we have been talking about the dow off the pressure. it would open up 30 points lower. the s&p is higher. the nasdaq is moving higher this morning. for more, let's bring in greg branch at veritas financial group. greg, good morning. >> good morning. >> we talked about the movement in the futures. i want a sense of how you see today shaping up. what is the "wex" word of the day? >> my word is reconciliation. i think wednesday will start a process or domino chain of reconciliation. i don't think we will see a lot of movement or any catalyst between now and then. i think this is what everyone is waiting for. there are a number of things we have to reconcile. we have to reconcile in the face of what has to be viewed as disappointing earnings so

microsoft acquired and xbox personnel. happen? what is the real story here? let's go to bloomberg's jason schreier. jason: we are facing chaos all across the company. people don't know if they're being laid off. i am told by a blizzard spokesperson that everyone should find out by the end of the day, all 1900 people. it's just chaos over there right now. caroline: what took me by surprise is some of the senior executives on the out including the vice president who said he would have to be dragged out. jason: he is really the founder of blizzard. we are talking about a massive change over there. a lot of people expected mike ibarra for various reasons, he ruffled others over a couple of disastrous meetings and decisions people were thrilled about. it is a big surprise, blizzard canceled one of its big games called odyssey. i have been hearing rumors that layoffs may be coming to blizzard but this is bigger and bloodier than expected. ed: in any big piece of m&a where a big company enjoys another company there are often layo

because microsoft is a global company.d many resources. they will continue to find fisher's -- fissues and boehner -- fissures and vulnerabilities. at nsa, we try to focus on identifying such vulnerabilities and tipping off microsoft when we found them because we wanted our security to be as good as it could be but we are always went to find weaknesses. ed: microsoft's cyber practice is a $20 billion a year security practice. jp morgan analysts had a note out saying that this could be an example of some of microsoft's competitors getting a leg up and offering their services. you are now in the investment world. how do you apply the events of the weekend to your thesis going forward and which startups you want to target? george: number one, we have many companies buying cybersecurity services. we have all our companies that are globally tribute in and providing services around the world. cybersecurity is something that is going to be a continuous struggle for our society, not something we can fix and be done. so my effort h

microsoft and google, they were pretty good reports, especially for microsoft.port last night. now they're both under pressure. why are they being punished for what, at least in the case of microsoft, was a fairly strong earnings report, and are we seeing that more broadly with earnings this quarter? >> yeah, and i think frankly, if you look at last year, last year was the year of efficiency. i think this year is going to be the year of cash flow. both microsoft and alphabet said, we're going to spend more money for a.i. if you said that two years ago, the stock's rewarded immensely because interest rates were zero. now, where interest rates are, investors are saying, wow, these stocks have run quite a bit, so what should we do? let's take some money off the table. same thing happened to google in the third quarter of 2023. stock was down 10% after earnings. i think they have had such a good run, and if investors are looking at cash flow, they're going to take a break, because there are other areas of the market that actually are improving cash flow, and you als

microsoft is hitting new highs. it's been a decent day for the russell catching a bit of a bit ahead of wednesday's fair decision. all of it takes us to our topic. whether the three month takeoff still has room to run -- how much? a lots of answers are likely coming this week, but let's ask dan greenhaus of alternative asset management. he's here with me on set. it's nice to see you again. what's on the line this week between tech earnings and treasury news? it seems like this is make-or-break, perhaps? >> it's a really important week for the macro and the micro. we might touch on that in a second. before we get into that, let's take a look back because i know the premise of the segment is the valley of risk. when you look at what has happened already, i know there is obviously a lot of focus on the dominance of tech earnings in the context of the larger market. there is an article in the wall street journal this morning about the strength of retail and how concessions have basically gone away. s l green reported th

microsoft and google after the bell.isa: this is really the kick off of the real earnings season that account for the vast dirty of the gains that we seen so far this year in market and a lot of people are saying because this market is of disproportionately hinged to seven companies, so too will be performing the earnings of said firms. jonathan: not just on the s&p 500, but on some of these single lanes. microsoft up 57%, google up 58%. just how high the bar later on this afternoon? lisa: some are saying the bar has already been lowered particularly for google and particularly for apple. i think it depends on which company we are talking about. there is nvidia which everyone expects to come out and then some and then blowout the water, and then you have the likes of apple where people are hoping that they hang tight. it's going to be unclear. i'm curious to see how people take some of the projections. jonathan: likewise we will talk about u.s. exceptionalism later on today. stagnation on gdp. talking about how high the

there is going to be a lot of focus on the highest-rated member of the s&p, microsoft. what are the expectations going into the earnings report? >> just talking about microsoft, we are looking at an acceleration in revenue growth rate, cloud growth rate. i think it is going to be a fun quarter for microsoft because not only do they have to like about how much contribution from ai was there, but also they have to give guidance that is going to be much faster than what the street is. expectations are very high for microsoft. we do expect overall revenue growth to improve this year. having said that, this is one of the quarters where i have seen expectations high for the company. romaine: expectations are coming in high, and i'm curious, mandeep, when we talk about microsoft's peers, particularly alphabet, obviously not the same business, but do you think we're going to get help in this market from alphabet this week? mandeep: the big number for alphabet is there cloud business. the last quarter we saw a deceleration in cloud growth. youtube did find. you could say that se

my conversation with the ceo of microsoft i ask him about the rise of a.i. and the threat it could pose to our elections >>> and the two-time tony winner who starred in the original broadway productions of "chicago" and "west side story." remembering the legendary chita rivera >> announcer: this is "nbc nightly news" with lester holt >> good evening and welcome. president biden today says he has decided on a response to this weekend's deadly attack on american soldiers in jordan three u.s. troops were killed, and 30 injured in the drone attack on a u.s. military outpost on sunday. the president not telegraphing whether the u.s. response will be a military one, but has said his administration intends to hold all those accountable at a time and in a manner of our choosing the president says he holds iran responsible as a supplier of weapons to the militants. iran is denying any involvement in sunday's attack. tonight a region already embroiled by war in gaza and attacks on shipping appears to be teetering even closer to the edge. peter alexander has late detai

. >> news alert on microsoft, a cyberbreach there, cnbc's megan kasella has more. >>> microsoft is saying this evening a nation state actor affiliated with russia attacked its corporate system and gained access to a small percentage of microsoft corporate email accounts, including what the company says were members of the senior leadership team. the company detected the attack a week ago on january 12th, and it's saying tonight that they do not believe there are to be any material impact on the company at this time. microsoft identified the attacker as midnight blizzard, a russian state-sponsored actor also known as novelium and it says the attack began in november 2023. the attackers were able to access email accounts in cybersecurity and legal departments as well as others. the attack appeared to be focused, at least initially, microsoft says, on information related to midnight blizzard itself. melissa, we'll keep tracking this, and back to you. >> all right, megan, thank you, in our d.c. bureau tonight. >>> sort of a -- not sort of. it is a black eye for microsoft, considering the brea

a big part of that move is microsoft. closing above the $3 trillion mark for the first time ever take a look. it is down just a bit this morning. down .50%. for the week, microsoft is up 1% strength outside of tech with the dow transports on pace for the best week since mid-december the charts are choppy. this week is out performing. up 2.3%. we want to check the bond market this morning the 20-year bond hitting the highest level since december we are taking a look at the energy market this morning oil in particular. moving lower after the best day in three weeks and highest close since november right now, the oil market is under pressure wti is down 1% brent crude is down .75% that is the money set up >>> let's get back to the m markets. dow stocks post earnings intel and visa let's start with intel shares under pressure despite posting a top and bottom line beat for the fourth quarter. for investors, it is about the outlook which came in weaker than analysts were expecting for the first quarter of 2024, intel expect 13