unfortunately, these are very large subsectors when will amd and nvidia come back i was asked that all week. is it time to dig into the non-p.c. tech stocks or maybe the down and out retailers or the beaten up industrials? after this week, no, no, after these last two days, i have to tell you it is too early to make a judgment anybody who bought at the beginning of the week, by the way, the market was up felt they were doing great until today let me give you the bottom line. if you own stocks, you must know the fed is indeed your enemy and you are fighting it. you are fighting them tooth and nail this economy is a run away train. it's smashed through the fed's blocks today so they may blow up the tracks and derail the whole darn thing when they detonate, it will be safe to buy. until then, i am urging you not to be a hero let's go to debine in california. >> caller: hey, jim. big boo-yah. this is debine from california. >> thank you so much big boo-yah back to you from jimmy chill. what's up? >> caller: i've been a long-time follower of your phone you're doing a good job. >> thank you

why don't you start with nvidia. there's a stock that was one of the great darlings of the past half decade or so, until it wasn't can this kind of spending help it materially? >> i think if you look at nvidia, if you listen to any of these calls, if it's not meta, it's google or alphabet this week ai is at the forefront and when we talk about ai or machine learning, recommendation engines, natural language processing, it automatically brings you to what compute layer underlies that infrastructure. and that's going to be gpus. and nvidia is the predominant, 90% plus market share player in data center dprgpus meta is building out a large super computer around ai, scaling that to 16,000 nvidia gpus over the next year or so. and certainly, nvidia is a the forefront of that. nvidia has some challenges on the gaming side, but we still think the data centerpiece of nvidia's business, especially on the heels of meta, is poised for some pretty attractive growth here as we move forward. let alone a pretty positive product cyc

john: whether intel, nvidia, burning through the stockpile. the story for i a lot of investors will continue to be, what is happening with the bottom line? what do product margins ultimately look like? even though these names are getting hit, there seems to be a consensus that a company like amd is in better fighting shape than intel. mandeep: amd despite taking down guidance last night will still grow 40% this year based on our calculations. next year they will outgrow the overall semiconductor market growth. intel on the other hand, they will be facing declining sales this year and probably they will be flatish next year. they are losing share at this point in time. the big pockets of growth remain a data center, cloud, and auto. those are the main areas where chipmakers now are seeing a lot of growth. that could change. i think there will be a phase where you could see a capex slow down on the loud side, but we have not seen that -- the cloud side, but we have not seen that yet. kriti: now the geopolitical part. from the margins perspective

automotive, metaverse, and this is the company with the best solution we're bullish on nvidia. the other half of the business, which is consumer, that's where the head wind is going to be. >> fascinating conversation. we appreciate it. >> bob pisani said purgatory, vivek put a time on it three good years, and a year a year of purgatory, if you know it, you got to hang on >>> after the break, more on the markets now. you look the at dow, we've got the dow industries off 2 1/3%. almost 700 points. s&p 500 is off 3%. nasdaq composite off almost 4% we'll dive deeper into the market declines, trade some of today's key movers and makers. this is "power lunch." we'll be right back. at humana we believe your healthcare should evolve with you and part of that evolution means choosing the right medicare plan for you. humana can help. with original medicare you are covered for hospital stays and doctor office visits but you'll have to pay a deductible for each. a medicare supplement plan can cover your deductibles and coinsurance but you may pay higher premiums and still not get prescript

>> for amd, this was most likely about their preannouncement last week, but for names like nvidia and partially amd, it's really going to be this language around a.i. and super computing so, for example, we know leading he edge nvidia trading equipment are going to be banned, but what about inference for a.i., for example? this could take another call it quarter of sales off the table here so there are some risks. this may not be completely deri derisked. >>> are there certainly sectors you take a look at that had been huge growth sectors that the industry will no longer sell into i'm thinking of comments of the chairman of xpang, where he said it would hurt the a ton mum driving. that had been a big growth sector if we cut that off in terms of exports to china, is that meaningful >> that is meaningful for many of these players there are internal efforts to the a.i. side beyond hardway china is incredibly good at a.i. software, so they may be able to use those algorithms on internal china-made chips, but chips, for example, from companies like nvidia, even qualcomm, could be at risk h

american graphics card manufacturers nvidia announced, what closes the russian office, which has been for almost 20 years, at the beginning of march, the company stopped deliveries to russia. but the office continued to work in order, as nvidia clarifies, to support employees and their families, but now she says that due to recent events, it has become impossible to work effectively in russia forbes specifies until february , more than 300 employees worked in the russian office of nvidia. now there are 240 sources left. forbes reports that the company is actively chartering its russian employees who agree move to other countries with those who do not want to move terminated the contract by agreement of the parties and with the severance pay in july, the kommersant newspaper wrote that nvidia had stopped renewing new licenses for cloud gaming software for russian companies. and that this decision can complicate the work of supercomputers in yandex beasts? dima is in the economy so far thanks to marina pimenova with business news. north korea has tested a new ballistic missile with a ra

you loved nvidia. >> i love nvidia but i've been out for some while. >> i bought nvidia today. >> just for some type of oversold bounce to measure. we'll find out where it was to down at the levels and small little descending channel here and made sense. >> i've been defense sector and healthcare for quite some time. i have some tech, a and d and marble as far as semiconductors go but down to about a quarter and it was all self-preservation. liz: a&m got hampered in september. >> a&m led us loire and that lets you get out of the way. nvidia, meta, new lows in google, microsoft last week and apple and tesla playing catchup and today was important that apple reversed first and gave us clues for buying today. >> i bought today in the green. liz: really? >> like 242ish. liz: in the green room. gentlemen, so great to have you. thank you very much. okay, so my studio versus buckingham palace? >> i would rather be invited back here. never been there but trained with the royal marines. liz: sure did. yes, thank you for your service, serge, as always. gentlemen, good to see you in person. back

and we want to be clear that right now you could talk about nvidia and we'll limit to that and intelroader industry trends as we see what feels like the same news again and again, one company warns, another company warns and the whole group trades down, we get the initial restrictions released by the biden administration and it gets codified and traded down twice on this. how do you view how much has been derisked from this sector at this point. >> yeah, hi, melissa it is about uncertainty. so we did have some of the bigger companies, samsung and amd and micron and a few others talk about lower numbers for q3 and going into the back end of year but the broader group really hasn't cut numbers yet so i think from an investor perspective, the question is how bad are the cuts going to be and how prolonged are the cut going to be. we have a couple of years of strong growth well above trend lines we've had a couple of years of strong pricing in the group and so i think there is uncertain as supply improvements start to hit, you know, hit the space. >> we're talking about cuts to estimates

nvidia tumbling after the u.s. ramped up its chip export rules on friday. it will follow the u.s. rules and taiwan's national day the president doubled down on taiwan's sovereignty saying there is no room-for-compromise on this issue. here to break down all of this, cnbc contributor who has long view senior policy analyst good to have you with us. >> thanks for being with you. >> isn't something called the people's congress happening very soon in the timing of this is very interesting >> yeah, you know, i've have a couple of conversations about timing, melissa, and i promise you it's cones depthal to. your point we have the communist party's 20 parties congress coming up on sunday. we have national day today in taiwan, 10/10, and, of course, these announcements on friday, but all of this, unfortunately, is crammed together but it's completely coincidental. >> what do you think beijing's next move is retaliation? >> yeah, you know, we're going to find a way to hit back. melissa, we don't know exactly howor or how they will do it it's symmetrically in the sem

at a low and now nvidia hitting a fresh 52-week low today. really hard to catch a falling knife. >> i want to do that number one. i had come from the point of view that, look, as long as you have got inflation or cpi with a 7 in front of it, there ain't going to be no pivot. they've already told us they've said the quiet part out loud. they're going to kill inflation even if it costs jobs and a recession. so this whole idea that maybe lael brainard came on and said they're attentive. i mean, i used to work in a big japanese bank where we hired people to follow green span. these people are using words that aren't really that big of a deal but at the same time you have to realize we still have inflation above 7%. now, the market got really disappointed when we had 8.3 versus 8.1 cpi read last time around and we only got two tenths of the cpi knocked off and shoving rates up everybody's you know what. we'll continue down that path and they're not going to stop. if we don't get something significant, there's not going to be no pivot. they're goin

meantime we're watching nvidia, intel, microsoft, apple all dipping as well. pc sales broadly and we kind of had suspicions that would be the case >> yes, we are in dangerous waters right now, carl and i would remind our viewers that pat -- intel ceo after last earnings came on and talked about inventory buildups and the reason their quarter was so bad, we'll see whether they were early and precious in their projections or if it gets even worse from intel from here but really this isn't just about pcs. the danger here i think is that there's the beginning of a spiral here. oems were ordering less because they're working down their existing inventory, which they built up when supplies were tight. meanwhile, demand is cooling if the holiday season is weak and demand looks weaker, which is why amazon's having another prime day the middle of next week, if the consumer doesn't really show up, then you end up with perhaps some inventory overhang at the beginning of '23, and you end up with perhaps consumer demand full forward to the holidays where, you know, people

nvidia became a superstar stock. it has been stumbling here a little bit but it's one of the names you like. again, does this get back to innovation again? >> it does, charles. nvidia is a leader in artificial intelligence. it is an enabler of key trends. look at health care, drug discovery, modeling, climate change, fraud detection and financial services. the power of artificial intelligence, the ability to transform industries is incredibly important and nvidia sits at the heart of it. i continue to like that name here. charles: dan, i don't know if you remember, i want to say 2007s. one year, january, february issue of "forbes," nvidia the company of the year, the stock of the year, promptly went down 90% stayed there for four or five years, do you remember that? then it took off for 60,000%. again it gets back to what you're saying these innovative companies, sometimes they hit a bump in the road although that was a ditch. dan, thank you so much. always appreciate your level-headed expertise. speaking of which, f

whether that's nvidia or micron.clined -- we're taking a contrarian view and adding slightly to those stocks because those end markets have taken the biggest hits the lead times are the shortest in the market. we think those markets could be the first ones to recover maybe in q1 of 2023 because they have cut inventory so significantly however, other chip companies that have long lead times, you know, 6 to 12 months, whether on the analog or microcontroller or auto industrial, they have not seen the order cuts yet. that's our concern the order cuts are coming. so, i would be very collective but aim to be cautious and wait for numbers to come down because i do feel we have more -- more declines in prices >> guys, we're out of time, but certainly appreciate it. thank you. >> thank you >>> still to come, we're going to talk auto stocks, including that rivian recall plus, that big note on ford and gm also casinos, wynn and sands pull back as rising covid cases again. a lot of red on your screen after those same names rall

nvidia has a new graphic card that's going to start. there's a cycle.nd i think that selling nvidia's -- again, i'm looking at emotional sales what's an emotional sale a sale that says, am -- 's doing badly, let's sell everything and amd has a problem with pcs so did micron. look, pcs, we order a lot of pcs in this country because we work from home. and we don't need new pcs. and i mean, i have a new pc and i'm not looking to get another new pc how many new pcs do i need >> in the depths of the pandemic, intel was trying to argue that the density of pcs per household had changed forever, but clearly we were just in the midst of another cycle. >> singer is terrific. >> guys, we're talking about covid again in terms of china. why are you shaking your head? >> i said something funny and you just ignored it entirely >> i laughed >> do i have to laugh every time >> no, but you do need to listen >> i do listen i've heard you say it. you said he's a nice guy >> i said he was a terrific guy. >> he only gets terrific when the stock's down more than 3%? otherwise

in town nvidia is more than a gaming play it's been trapped as a gaming play i think their story isery much how that 40%-plus of gaming is going to go down over the years. so, watch nvidia watch marvell, and then the most bullish one of all was the incredible gain that we had, 2% gain in qualcomm, and at one point, it was down substantially. so i've got a number of stocks that have been down since november, and if they can rally today, i'm going to say that the estimation is going to be leadership going into earnings and then the banks are going to take the baton >> interesting chips, then banks. that's going to be key as for the inflation metrics that we talked about, finally got claims going up a bit. these challenger layoffs, jim, hiring intentions, lowest since 2011, and we'll see if this gets reflected at all tomorrow. >> you know, mr. wonderful was on, and he was saying that he's not felt any pressure. kevin leary. felt any pressure in his businesses now, i hear that a lot and the reason why they're not feeling any pressure in the businesses is they're not in the businesses th

right at the bottom of the list alphabet is sinking again, though there is strength in semi names nvidia is bucking the trend. check out the earnings movers of the day. tells a story. meta getting crushed on weak earnings and down beat forecast. big time spending. more on that straight ahead. caterpillar is surging comcast getting a boost and mcdonald's in the green after being up 3.5%. coming up today, we'll talk to peter orszag about his outlook for deals and the state of investment banking lots more on the fed and midterms as well plus, metaverse expert, matthew ball, about mark zuckerberg's huge bet on the metaverse and whether it will ever pay off let's get more mike santoli and vfor the first time in a while, feels like we've got a growth versus value split in the trade today >> that's one way it's working for sure the market's ability to set aside the problem children and to focus on things that's working. so market, money is moving within the market not out of the market meta is responsible for about half of the s&p's net decline today. in other words, if meta shares were flat in

meta, like amd and nvidia but those are two honorable companies should have preannounced the short fall. it was way too big to keep secret no wonder the stock kept going down ahead of time that's why the government has these damn rules it's not kcrick it it's not how you play the game it's ill advised, unfair they're unphased they made so much money, what do they care? they destroyed everyone but what do they care what do they care? nobody enjoys firing people. i know i've had to fire some people in my lifetime but when you lose your secular growth status, you have to find ways to save money and not filling to si -- positions is not enough. you need to do layoffs, reduction in forces, nobody wants to do them but they don't seem to know how to. i wonder if they think rif is -- annual reoccurring revenue, rif, can they come up with something? incoming force i don't know maybe i'll google it you can't. there is 70 things ahead of it sixth, we discovered last night the data center is a cost center i hear the price of electricity in europe is hurting data center profitability, i start thinki

. >> -- shares of n is indi-- nvi are up you'll need a lot of nvidia chips. >> the ceo of nvidia, if do the things that zuckerberg wants to do, you actually need to be able to write on nvidia chips. they are close with each other and i think that what's amazing about nvidia, to some degree it is the meta verse. you can't write without it i was interested in putting a business in the meta verse, the mall, but i think i have to wait i regard it as commercial. nvidia is commercial now it did pre-announce. they actually announced. it's something that -- there's this thing, sec. there are a lot of companies in silicon valley, they think that's an arm of their hr. but i thought that jensen wong, they're powerful, you can do many things including having digital twins. >> it does seem to be one of the few beneficiaries of the incredible spend going on at meta >> absolutely. >> i did notice the stock being up when we talked about meta, it's almost lost 1/4 of its value down 71% well below a $300 billion market value now. you've got a founder that wants to stay relevant and believes spending l

joanne: we had a hit when nvidia had the negative outlook sometime ago.seeing the slowdown on the consumer side. that could spread to corporate and that maybe what is being read into amd's miss the reported last night. we know the consumer spent a lot and corporations spent a lot when they had to get people working at home. we have been looking for that decline. what does this say about the other side of the businesses, both for nvidia and the data center expansion and that sort of thing? there is concern that could be slowing. there is a concern that companies could put off some investments. kriti: what does it mean for the stock itself, this was the ultimate macro had and you bought commodities and chip stocks and were set for the supply chain crunch story. those are still a part of the economic outlook and yet you are seeing the chips sector make a turnaround. walk us through the investment case or lack thereof for the actual stocks. joanne feeney in both cases, trading at high multiples. they have come down and we have added them for clients in a more

nvidia hinted at it in one of their filings back in september. this makes it more official than anything else. i believe amd and nvidia said the impact will be minimal because it will still sell lesser ai chips to china. i think the u.s. does want to send in product currencies to slow down china's development of not only the use of a high chips but also the manufacture of a i chips. there were some elements introducing 7 nm chips. i think they want to slow down anything that china can do, develop some of the higher powered chips going forward. emily: it does not sound like we are heading towards a total ban. is that a possibility? >> let us use huawei as an example. there is an entity list that they are on. at the end of the day, huawei is pretty much dead. there is an entity list that the u.s. has started to give up and we may start seeing some of the lesser-known chinese memory companies as well as chip manufacturing companies fall into that. of that will be the case, there may be a dent into the chinese chip manufacturing initiatives going for

mandeep: look at nvidia for example.venue exposure to chinese customers. -- when he 5% to 30% revenue exposure to -- 25% to 30% revenue exposure to chinese customers. that will trickle down through there are chinese customers that will be impacted and that will have a cascading effect in terms of what that will do down the line. lisa: how significant of a deal is this? when i read this deal came out, i thought it was a big x galatian -- escalation of what we had been hearing all year, how did you view it? mandeep: china is trying to create their own supercomputers. they want to be in the lead when it comes to the latest ai and the latest servers that they can design. that is where this particular ban was focused on. they could impose a certain ban on a u.s. company. if things escalate, you will see a dire situation where u.s. companies are impacted in terms of their ability to do things. lisa: you're talking about the guidance we were hearing from the semi conductor companies and beyond and how negative the forecasts are

stu: yep, nvidia is on that list and generac, up 5%. nvidia, microchip, auto desk and more.is this because the market is oversold at this point? they just want to buy? stu: could be. it's a very nice bounce. thanks, susan. coming up, former congresswoman leaving the democratic party and joe concha saying she's the voice of reason. listen to what president biden said about britain's prime minister liz truss' tax cut plan. roll it. >> i wasn't the only one that thought it was a mistake. i disagreed with the policy but that's up to great britain to make that choice, not me. stu: appears morgan is calling out the president for being, i'm quoting now "disloyal". he joins me mome momentarily one set. two nice british accents together. next. ♪ >> don't you love this, mondays morning and look at your money and it's going up. dow is up 660 and nasdaq up 340. nasdaq up 3.25%. that's a significant gain. got it. take a look at cover of today's new york post. see that, 401ko. the article reads: the average american is losing $34,000 and everything else on biden's watch. that's how much a

nvidia and marvel and arista networks one of meta's biggest customers.us of your thoughts. >> great for meta's supply chain. especially chip makers not good for meta's future outlook. $39 billion of capital expense that is against operating expenses for the year of about $100 billion that is a high figure for a software company >> cyrus, let's turn to apple. it is anticipated fourth quarter results after the close today. wall street looking for signs of hope pamid a potential slowdown of sales ahead of the keyhole day key holiday season they face inflation and the stock trading at $148. it is down 5% in the past three months cyrus, what can we expect today? >> as we have seen from big tech earnings so far, the economic outlook is bleaker than what economists told us last week rising costs are hurting consumers and businesses we may see upside in services business, but everything we heard about results so far says the economic outlook is going to be challenging even worse for apple is the geopolitical outlook i think of the five big tech, apple faces the

that nvidia move, paul pelosi had to sell shares after mounting public criticism but there are a lote richest and congress. they are soundly in the 1%, net worth with $15 million. is she going to get away with this pushing off ban bill? >> i think her time is limited, i certainly hope it is but i think it's interesting, 70% of voters want the band to be enacted. i am reminded of the contract with america, the number one thing was make members of congress abide by laws that apply to all americans. there was wisdom in that and that's what we need to see here. elizabeth: we to have you on, thank you for joining us. terrific columnist, thank you so much. we got a surprising list of top democrats former president obama blamed for hillary losing to trump based on newly revealed government documents. mollie hemingway takes that on next on "the evening edit".nt ♪al ...a "chow down" day... a "take a big bite" day... a "perfectly delicious" day... - mm. [ chuckles ] - ...a "love my new teeth" day. because your clearchoice day is the day everything is back on the menu. a clearchoice day changes

we have had back-to-back days of nvidia doing well. advanced micro down from 170 qualcomm is 160, 170 so people are starting -- this is a group so despised i guess there is a short clearing i don't know >> you don't know? >> no. the numbers are still too high gaming just failed to come back. that's why the app store is not doing well gaming, david, turned out to be peloton. >> we've flushed it out before we talked about 2018 it was weak for a quarter or two. then growth resumed. >> wellive to tell you that i think that advanced micro, the crushing of that stock is overdone >> nvida, amd down roughly the same for the year. 56% for nvidia 52% for amd. >> amd's multiple is back to 15. and nvidia, a faster grower, admittedly, you've got one that's double that it is actually 37. so one is cheaper than the other. the one that's cheapest, there's been no sign of any deterioration by advanced micro. i wonder what you think of a chance that there could be a come back for intel. >> are you asking me that question so i can turn around and ask you

technology and nvidia's product and they talked about the omniverse. i think something like that can be very practical. i don't think people want to live there, but i think businesses can be used to develop products visualize products and images to the entth degree and i think something like that can be very valuable it will be a great tool. if you look at technology as a tool, i don't want to walk around with a spacesuit on all day, or a -- a device. i want to play games, if i want to virtualize experiences and develop something, create something, i think that's very helpful. i don't like the idea sitting across, personally having, you know, contact with people, that's important. >> boris, isn't that part of the danger, though that facebook at the time bought oculus 8.50 years ago and trying to make this vr thing happen within facebook and now oculus and verizon et cetera. when you look how these others worked, particularly smartphone and iphone, apple might have been investing in it a while but weren't spending $10 billion a year and weren't pushing

the beginning of september we started to get a sense when nvidia delivered a warning to say that restrictionsr ai technology could mean the loss of hundreds of millions of dollars in revenue and that has since expanded and the commerce department has added more to this year. chips for ai and supercomputing and tightening rules on the sale of chip manufacturing equipment, getting to the ability to make chips. they have added to the list of unverified companies, what they call making it much more difficult to sell any technology to them. we are trying to raise the garden walls here and get our own domestic chip manufacturing underway and try to cut off china from this technology which is used in a lot of weapons systems, communications systems that the u.s. does not want to see china get its hands on. kriti: let me bring you win because how much of that is going to be a successful venture? i'm talking about pain in the chinese chip sector but can they work their way around this? is this really the end all be all? >> it is possible, right? one of the things we discovered back in july is that one

kriti: technology and nvidia has the dual role.es its cue from texas instruments but also that major heavyweight. thank you as always. always a pleasure to have her on. she is also deputy tl of our stoxx coverage. major promotion. she is bright for sure. you are still seeing red on the screen. not just from the tech earnings but boeing is dragging the market down. as long as you see earnings reactions move lower and lower, boeing bringing down the market. the s&p 500 down 3/10 of 1%. the nasdaq down 1.5%. that pain isolated in the tech space. the 10 year yield around 401. the bond market bid is still coming in strong. the dollar index is weaker by 9/10 of 1% and brent crude treating with -- trading with a $95 handle. for jon erlichman, i am creating kriti gupta. this is bloomberg. ♪ announcer: the most crucial moments in the trading day. this is "bloomberg markets: the close" with caroline hyde, romaine bostick and taylor riggs. caroline: we are kicking you off to the close with two hours left in the trading day. tech taking a tumb

continues to surprise the companies themselves by blowing their guides to the downside they called out nvidiamic ron as the culprits there. that's the story here, tyler a disconnect between the falling demand signals we got months ago versus the story some of the chip companies were telling. >> we have a chiron on here, amd leads s&p 500 lower. if you were to go in and look at the universe of stocks you just talked about, is amd one of those most exposed to sales. >> amd was also talking about inventory problems they didn't specifically say we have too much inventory, but you can read between the lines and guess that and that immediately made me think of sony and playstation. you know playstation five, which is a huge gadget for sony and a huge sales driver, they've been out of stock for two years straight and with amd having the inventory to thoepz chips and those devices, that could be good for sony going into the holiday season for our video game sales >> steve, thank you very much. >>> still ahead, check out this mystery chart. despite strong demand and tight supply, this used car name is

apple is on the upside, amd, nvidia, let's call the whole thing 3%, that's pretty good given how strong overall market is. they're moving in line with the s s&p. how about energy, these are the names, the ones that would move the most high beta energy names 9%, 8% those are big moves. that's way outside a normal trading pattern. finally, it's interesting, cathie cathie wood ark funds have been doing okay it if it wasn't for tesla, that's really what's holding the stock down that's the other big test of real risk on other than that, roku, zscaler, these are all the major holdings outside of tesla >> bob, thank you. >>> now to the bond market, rick santelli tracking the action there as we start to see sharp drop in yields along with the rally for stocks rick. >> yes, and bob asked a great question and maybe we could weigh in on that yields moving down makes sense to see equities moving up, but as they've started to firm slightly on treasury yields, what's going on? well, i think it's because it isn't necessarily a big capitulation trade, but it's ab abouts a about s a close as you get man

no end to market the question is whether or not that spreads has negative implications for intel, nvidia, and some data center piers so we'll reset and get ready for a very busy next week with cpi let's get to frank holland and the half >>> welcome to the half time report i am frank holland in for scott wapner it is a sell-off on wall street. a strong jobs report revising fears about inflation and the fed's rate hike plan what is the biggest risk right now, inflation or recession? and what do investors do from here we're going to debate that and much more today with my committee. also with cnbc senior economic reporter steve liesman steve, great to have you here. let's get a check on the markets right now in what's really been a wild week. the major averages on pace for weekly gains the dow down about a 1.5%. the nasdaq the hardest hit down more than 3% we're also watching of course that ten-year yield, hitting it's highest level in a week remember last week it just touched a tick higher. does this cement the 75-point basis hike in the fed's next meeting and this move the pivot or talk o

intel, advanced micro devices, nvidia, all hit 52-week lows earlier. intel tried to make a go of it into the green, can't quite hold on to that. ceo path gelsinger sent a statement out announcing the creation of an inti internal foundly model, and taiwan semialso touching a one-year low of $62 the a share, down nearly 7% at the moment. investors still anxious about the latest export rules that ban companies from sending their product to china. can we check the financials? citi group setting a new 52-week low, that would be $40.53, we're at $40.66 right now. and all the money managers, you no who you are, who said go into jpmorgan, it's the most solid name, that may be true, but it's dropping to a fresh one-year low as well. the historically positive relationship between banks and higher interest rates -- because we've got higher interest rates -- not working today to. maybe because the new york fed says that the percentage of loans newly delinquent, while still low, is starting to tick higher. so let's get right to the floor show. joining me now are tr

>> i own nvidia.et just because i'm look at it technically and i feel this year i don't need to be a hero when i'm adding to a position i'm going to wait to hear. i think with lisa su i want to bet on the jockey there. they're phenomenal, you know, ceos the charts on both still look so bad that i'm just going to wait buzz they continue to make just like the s&p those lower highs and lower lows i'm going to wait until i think they move lower after earnings, but at some point in the next quarter or so i look to add amd because i do think there's structural tailwinds on both companies. >> you've got nvidia and qualcomm, too. you feel better about them here or not >> i think to josh's point these names, again, slaughtered all year up until last week obviously we saw it run this week but they had some down north of 40% inventory is going to continue to be a problem, but i think these are just oversold conditions they got a nice bounce this week it makes sense but for me i'm going to watch them closely. the

there is some good news in the industry nvidia is allowed to sell graphic chips, ones that launched todayt is not blocking everything but i don't think it matters all that much when you consider we're probably looking at a data center slow down and that's not yet priced in the stocks it's no wonder nvidia stock was down another $7 today. 61% for the year second, there was a huge amount of double ordering in this group when things were better. buyers were afraid they wouldn't get the allocation chips now the customers are saying whoa we're fill up and don't need anymore we're realizing this now so there will be charges gon the inventory. not good we're seeing a big cut in capital expenses, that's true, there is a ton of new chips being made to the point the inventory is nowhere near running out. takes a couple quarters for those plays to play out. we have the fact micron stock is above where it was trading when last reported despite the down beat calibration of the future ist it's tempting. what matter is the customers i think they're frozen for now this slow on the economy and china situa

josh, they say meta is expected to be a big arista networks customer you've got nvidia, amd, which makespus for meta, already provides the flash storage for meta should we think of this spending in a reverse way what's bad for meta is good for these chip names >> you know, it's an interesting question i don't think that will turn out to be the case because i think there is a recession happening in tech. it's not everywhere within tech, but this is not an environment where even as companies say they're going full speed ahead i wouldn't believe them because i just don't think the demand is going to be there. so as consumers have continued to move away from goods and towards services and that shows no sign of reversal anytime soon, i just don't think you're going to have a great year for growth in the semis. so i still think the semis are a good bet here. they're down substantially i like them as a group there are some names absolute outright buys right now, but as a group i just think share prices are reflecting a much worse situation. but that doesn't mean all of a sudden you know what, m

when you think that jensen wong, who is the ceo of the amazing nvidia, there is a new gaming cycle comingy have a terrific tech team that is really good for your i.t. at home i am a believer in covery barry. will they hate me on twitter if it goes down 50 cents? pound sand can i sbaepeak to john in new jersey >> caller: hello, jim, this is john and i'm a first-time caller but a 15-year member of your clubs >> yes now, this is what i want ♪ hallelujah ♪ this man knows i'm trying to teach. it is hard i go home at night, my wife says why are you having that mezcal i say because it tastes good but -- >> caller: well, it's all worth it to me because i've learned so much from you. and even something from your mother when she once said we should sometimes take our winnings off the table and go buy a nice cashmere sweater. >> jimmy, let's get out of the casino and go buy a cashmere sweater. you betcha >> caller: so in january i took her advice i took half my profits and i went and bought a nice house on my lake. and it's all thanks to you >> there you go. how much do you make in your checking acc

one last one, nvidia. i know they're exiting russia. susan: that's right. ukraine uncertainty, of course, makes it very hard to do business in the region. but also important to note that there has been no impact, you know, from the fact that the u.s. government is telling nvidia, other chipmakers to stop exporting some of these high technology chips that are using facial recognition and artificial intelligence to china. the stock is at 130. i think at the peak it was closer to 300. stoort suit it was the, actually. susan: so les some ways to go. i was in singapore for the milliken asian summit that i was hosting, and big money investors are saying that if we're really heading towards a recession, they said the markets haven't fully priced that in. so we could be down maybe 10-25 the % more from these levels if we actually see an official contraction in global gdp. stuart: that's the word from the milliken summit? susan: a trillion dollars in assets under management. they're saying markets still are lofty at these levels. but if you have the fed on your side

let me buy nvidia or amd or tesla. pick your favorite rate company. i'm not arguing they aren't great companies. but the problem is the numbers have to keep coming down they rally a couple months june to august if you remember, the s&p was up 17% and now you've given it all back because numbers continued to come lower so that is all we're saying is bear market rallies and we have in on our site where we went back and analyzed them they happen all the time right you had five rallies between 18 to 21% in the s&p during the global financial crisis and during the tech bubble break on your way to losing 49 to 57% of your money so this is pretty typical. i think in some ways it is counterintuitive but the worse the guidance is the more likely the market is going to mistakenly have another bear market rally and then you'll figure out the numbers are still too high when we get to the end of the fourth quarter and we'll be back in the soup again. i think that is how you want to think about this. >> right dan, as we pay attention, before cpi this morning the di

american specialist in the field of it security, crowley himself discovered that eight of the latest nvidia geforce rtx 4090 graphics cards worked together to crack any eight-character password. in just 48 minutes exactly. it takes so much time to enumerate about two hundred billion password options and check them. the eight-digit password used in the test is not accidental, according to the statistics service - this is the most popular in the world. the length of the passphrase in precisely eight characters was every third password of those that the researchers found in the comforting databases of personal data, and in the tests used, as it should be with a password of maximum complexity, a random set of numbers, service symbols and letters in different registers. and now this one breaks down in less than an hour. or in a couple of days, if the video card is used only one good news is that we are not talking about selecting a role for online services, a program that was created for system administrators for testing . and security, in which sometimes you need to recover passwords forgotten

nvidia is doing that to teach self driving cars how to drive better.hen we look at zuckerberg and mehta, they are doing it in what i and would say is more akin to the ready player one sensory deprivation tank with their glasses on, but i think everybody is a little bit different. >> i agree. there would be no one solution that suits all. different applications would have a different portions of different reality or augmented application. >> and we are in the very different proto-days. people are creating content for these virtual worlds in a way we have not seen before so let's get into a little bit of what you're doing. you seem to be able to convince people to buy fake land in fake worlds. why do they do that? >> at the surfacit sounds far- fetched, but what we have done is give people an entry point that is accessible both of the literal and figurative terms. literally everybody has a phone in the pocket. 600 people have downloaded games like pokc basically a game built on the real world so when we introduced atlas earth and said you could buy a vir

companies themselves by blowing their guides to the down side and they're calling ogt specifically nvidiainn tell, micron as the culprits here, all names we are seeing fall today. the pull forward demand we knew that was there, we knew demand was deteriorating in the pc market four, five months ago and now we're seeing the symptoms of all of those factors coming together right now so that's the trouble we're in now. at the same time we've still got the end of the year to get through, a lot of new hardware came out google had their big smartphone event yesterday, apple put out the iphone14 started selling i three or four weeks ago and we're going to get maybe even more from apple later. look, we've got to see what demand looks like through the rest of the year but they are flashing the warning signs now finally that the consumer is deciding we don't need to buy new pcs every couple years. >> steve kovac, thank you. >>> mike santelli, makes it hard to figure out what the message is from a lot of these earnings losers and these earnings warners. semiconductors were at the heart of the supply

the decision follows a report that there tax outperform nvidia chips which are banned for the chinese market. they have not reached a concern whether they meet the threshold for restrictions. those are the first word headlines. shery: coming up later this hour, we will look ahead to the boj policy decision. a weak yen pushes inflation to the highest since 1990. first, amp expect a bread-and-butter aussie budget with no spending initiative. a preview with a senior economist, next. this is bloomberg. ♪ >> we can be amused, those of us who don't live there by some of the things that are happening in britain, but if we think of it as an experience entirely outside of any kinds of concerns any countries could have, that would be a real mistake. haidi: the former u.s. treasury secretary larry summers. fiscal responsibility back in focus. let's bring in the senior economist at amp. i suppose it is the story that adds to the risk of a policy misstep. everyone looking at what happens in the u.k. is a cautionary tale. is that a dynamic we should be paying more attention to? >> the risk at the m

jpmorgan a point and a half, and the financials down about 1% the semietf is turning higher, but amd, nvidia, lamb research lower off the lows of the session. there's a lot of the green, though, energy, oil stocks moving up as crude jumps on the back of that production cut announced earlier today, over in vienna by opec contessa >> tyler, the fight against inflation is far from over do the risks of more rate hikes outweigh the reward? in today's ism report, improving supply chains cause service inflation to decelerate last monday it dropped to the lowest reading since jan war of 221, but a separate report shows that labor market strength with private companies adding 208,000 jobs last month that was more than expected. should the fed pivot and change its hawkish stance, slowing the rate of hikes, or shoo the central bank continue on its path with i have is steve tanly, chief economist at amherst, and ed yardani good to have both of you with us if this was football, there would be a lot of armchair quarterbacks, right? but i have to start with you, steven what do you think the fed is getting

nvidia has 95% share of the highest ai accelerator chip market. has the rest, so this does potentially levy a severe blow to china's position in the ai space and other supercomputing areas. shery: how different or tougher are these new rules than what is currently in place? stephen: right now, there is under certain circumstances of course, u.s. chip technology that can be exported to china. in the lower end technologies, lower and i should say the nanometer, essentially under current guidelines, if you have state equipment makers -- the equipment maker's have been allowed to sell machinery to china or equip some chinese companies with machinery to produce less advanced semi conductors. but what this will likely do is codify or formalize how these export restrictions, the new steps, the technology it will take to make those 14 nanometer chips better. that is key to china's ambitions. prior action, this is going to be levied or announced by the commerce department. previous steps that have been made by members of congress, they have really taken ac

literally $2.5 billion for lam, and a possible $400 million quarterly hit to both applied materials in nvidia choke china of its abilities to make chips lit cost these companies in loss revenue but what about the unintended consequences in other companies could stop using u.s. tools. few u.s. parts in their machines allowing them to continue shipping certain machines to china, business could shift to other countries. lastly if china can't make advanced chips they could focus on low-end chips making it hard for companies like intel to compete on chips a new bloomberg report says chinese ministries are holding emergency meetings to address these curves >> thank you >>> state of play in computer chips. >>> a cnbc news update. >>> happening at this hour, as an outbreak of ebola spreads through yuganda, as of tuesday, 60 confirmed cases and 24 deaths since the outbreak began last month. the risk to americans is low healthcare providers are being advised to remain alert of ebola symptoms. >>> spacex launching a falcon9 rocket today that marks the tenth time the booster rocket has flown and the 46th

semiconductors that we have talked with nvidia, micron is expected to drop 14%. the expectations are so low that if her they do have any growth at of any of the tech stocks come including netflix if it is topline growth there will be happy. we have to work through these fed increases before we draw the line in the sand and say here is the inflection point and we can start feeling positive about tech. caroline: the macro dictates the micro at the moment, let's talk about netflix. are you expecting any steer on resilience from the consumer right now? >> you have to bear in mind that could -- netflix has reported to consecutive quarters of negative consumer growth. we know they're talking about going to a new platform in terms of advertising revenue, how that will affect them they have been working on password sharing issues. the big bogey for caroline -- for netflix is quarter, the consensus for the fourth quarter say looking for 4 million new subscribers. caroline: we are still bullish on the advertising idols. -- models. i am interested in tesla that is retail mo

tony: after this dropped, we heard from nvidia who said in so me words that they have already factoredin. but it comes at a sensitive time. for the entire industry. with sales under pressure and there is an international aspect to it which is the biden administration, if you want to make something like this stick, it would have to get semiconductor companies and other allied companies to go along with that because the u.s. is not the only country where this happens. the country that exports the machines needed to make these high-end chips. there are a lot of complications, but when you step back and say how airtight can these constructions be given the international market ships -- chips, one company depends on another. it's a very complicated chain. tony: that is the argument taken up by the chinese foreign ministry. in their response, they said this will backfire. it is unfair and illegal under international trade rules, which is something that howard -- would have to be taken up elsewhere. china said this will backfire and harm global supply chains and the global economic recovery .

for the long-term, nvidia saying it is not going to hurt them.ht now, we have to keep in mind that some ai chips into china are fairly low and there is access to some chips that china can gain from amd to bypass some sanctions. tom: it was fascinating to hear from a startup in china and how it is going to impact them potentially. thank you for that analysis, bloomberg intelligence senior analyst on semi conductors and china. coming up, slow down concerns. we will discuss with citi next. this is bloomberg. ♪ millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service. and now, introducing, the best price for two lines of unlimited. just $30 per line. there are millions of happy campers out there. and this is the perfect time to join them... add a line to your existing plan, or see for yourself how easy it is to save by talking to our helpful switch squad at your local xfinity store today. alix: an hour and the u.s. trading sessi