shery: qualcomm -- counting down

qualcomm really pointing toward how the u.s.xport ban means they could not ship chips to huawei the smartphone market not looking good there more than 2% down was qualcomm in the picture nvidia taking a hit at 4.6% and amd with a set of results taking a 7% dip by the close of trade let's continue p ththis converso with arjun arjun, the chip story is one to follow significantly here. qualcomm really stating the obvious in many ways that the smart phone market is still taking a bit of a downer that might elude to something for apple. >> let's take a step back to add context to where we were with the semiconductor cycle. we went from the height of the pandemic and put that chip shortage into a chip glut. companies were stockpiling chips to avoid having a shortage problem. what happened is demand for the products of smartphones and pcs eroded as the macroeconomics concerns were taking hold. there wasn't demand for the products companies can put chips in devices and they are not orderings as many from amd and others we got to a point

. >>> first, amd and qualcomm coming up short and giving investors new reasons to worry it is thursday, august 3rd you are watching "worldwide exchange" here on cnbc >>> good morning welcome to the show. i'm dom chu in for frank holland. let's check in on stock futures. losing steam we are sitting at or near session lows for the futures market s&p is implied lower by 15 points dow jones industrial average lower by 100 nasdaq down by 60. you can see a sharp leg lower right around when europe just started trading and it has been drifting lower since here. we currently stand at 4,520 for the s&p. this was all after a rough day for wall street on the heels of the fitch downgrade. nasdaq posting the worst day since february right now, .50% to the downside. s&p down 1%. some conviction in the move lower based on volume. by the close yesterday, spy closed at 1.933million shares which is below 71 million. that is a huge amount of volume. similar for the qqq. tracking 20 million more shares yesterday than its average over that time span checking the bond market yeel yields across the board high

qualcomm is down 10% and concern about the growth outlook for them.e will talk about that in a moment and qualcomm is down 10% tracking on a closing basis for its biggest drop since march of 2020. this is the biggest maker of smartphone processors. in a market for smartphones that is having one of the most severe slowdowns for a long time and it continues. the outlook they gave was worrying for the current period. let's bring in ian king. what was the main takeaways from their earnings call? >> the big focus was while there is a smartphone inventory correction, we are still in that correction. everybody was hoping the chinese consumer would come back and that doesn't seem to be the case. ed: you forget that in china, there are many domestic layers who make android platform phones. the other data point we get from qualcomm is this for your shipments forecast. what did they say about 2023 relative to last year? >> it's a down year. we are looking high single digit percentages down from a year ago. that clearly indicates that not only have we still got i

someone like qualcomm is 60% of their business.s and european based companies and european based companies are going to continue to lobby their governments to ensure that they can continue to provide the products and technologies that their customers need within that region. but you will see supply chains still evolve, and i think that we're seeing some of that now. where certain customers are forcing their suppliers to migrate some of their production of their products to other regions just to mitigate some of the risks that we're seeing today. and that's it for this edition of asia business report. keep up of asia business report. keep up with the latest headlines by visiting our news website. i'm monica miller, thank you for watching. bbc news, bringing you different stories from across the uk. �* , different stories from across the uk. m ':: :: different stories from across theuk. �*,'::::y ., different stories from across theuk. �*fiiiiy ., ,_ the uk. it's 100 years since the uk. it's100 years since the first — the uk. it's100

are we going to use qualcomm as a read for tonight >> no, qualcomm is just pa theting i. was disgusted with that quarter. i'm so tired of their hype i'm sorry. i have a negative attitude about them i'm positive about other things. i mean, at the start, once again, they do this thing, it's great, it's great, it's great. and then you get to actually, but you know what, it's bad, and it's weak. it's great, it's great, well, it's bad, it's weak, and this is post auto and handset inventory build-up and, no, i'm making the samsung story, the solutions to apple. but no it is not a tell now, you could say, well, look, maybe apple is coming in too hot. i think there's a -- there's three pieces to the service revenue that's going to be very good, so i like that but qualcomm is a tell for qualcomm, and i'm getting annoyed at qualcomm, because you can't constantly say you're good and then drop bombs. that doesn't work. i'm not saying it's, how was the play, mrs. lincoln that's the next time if he goes to that. >> right, right. >> i just think it's a time to have a real sense that thi

the firm bringing qualcomm to hold from buy, lowering the target to 120. they were at 130 stock already trading below that average disappointing earnings deutsche is putting the blame squarely on the smartphone business, which saw revenues drop 25 year on year saying there are now structural questions rather than cyclical ones jon fortt is here to help us break down the earnings. cramer took them to the wood shed this morning. >> i didn't so i'm not sure exactly what his points were on that i will say there's a complicated story here of last quarter, this quarter and the future the last quarter, the one they reported, their issue was android overall, right just the overall licensing business didn't do as well as expected because global handsets are weaker can you blame on -- the current quarter they say was the timing of apple's purchases they try not to say apple, they say a modem-only company the timing of their upcoming iphone launch, which will be september, was different than expected they are guiding on what they think is going to happen with the iph

>> qualcomm gave us two warnings, hand set weakness. they said to expect a high growth but overall that's one warning sign and then the inventory drawdown just across the board they expect the inventor to continue drawing down they said that last quarter and modem only, meaning apple, too, because the relationship is fully ending two themes are china, so much is contingent on revenue and ai ai, though, for qualcomm, they can't monetize that just yet that's not something that will help in the next two quarters. >> i know you'll be all over that trade the option markets guy looking to less volatile on qualcomm kristina, thank you very much. we'll see you this afternoon >>> health care stocks among the biggest laggards so far this year the committee debates the best way to play it and joe is making moves as well. ♪ at morgan stanley, old school hard work meets bold new thinking. ♪♪ at 87 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them

either apple is eating more and more market share from android and qualcomm or the overall market for smart phones is going down -- excuse me, not recovering as fast as expected with how much market share apple has gained over the last few years, i find it hard to believe this is a market share issue i think it's a macro issue of smartphone life cycles are going longer and longer. most people i talk to extends how long they only their phones until they upgrade there's a side current here that 25% of their business is not smart phones and it's growing but is not growing fast enough this is automotive it's not fast enough to make this other than a smartphone story right now. what you have is a cheap stock that doesn't appear to be broken or fatally flawed, just some bad guidance hang in there. >> it's always risky to use qualcomm as a read through to apple. i don't think this will be the time they do either. they might coincidentally both report weakness. i wouldn't draw that causation from the correlation i think warren buffett said it best somebody asked him about last quarter, maybe

not to mention tepid earnings from qualcomm. the 10-year yield rose to its highest since november, as the u.s. ramped up debt issuance more than forecast. that was helped by payrolls data underscoring the strength of the labor market. we will break down all those moves for you. but first, let's get over to hong kong with tonya chen for how asian markets are faring. >> good morning, let's start with japan. as you were saying, japan entered the market for the second time this week. we saw unscheduled bond buying operations. 10-year yields touched 0.65%, a nine-your high. this is the second time after monday yields touched that 0.6 percent mark. this intervention is underscoring what is the gray line, and what is the definition around flexibility. last week, they had indicated to 0.5% would be a reference point, but not a rigid limit. these interventions, we will have to see. but going forward, the bank of japan may continue to tightly manage the pace at which yields rise. outside of japan, i'm looking at china today. we had caixin

>> qualcomm has already set up investors with two warnings.s. they're expecting to be worse, so the consensus right now is handset will fall 1% quarter over quarter the second warning is about inventory levels management had guided for inventory drawdowns for, quote, at least the next couple quarters we're still in the next couple quarters about those warnings out of the way, investors will want to hear more if the market has shown a bottom and how qualcomm can capitalize on a.i. moving forward. that could be a big stream of revenue. the tech can even help run require july apps. one quick action, though, no qualcomm insider has sold shares since mid february, that's five months >>> as we head into the close, a little over -- over a minute left, wire on pace to post the first loss sin may 23rd. also, the vote tilt index. >> at least for now, the s&p has been hovering most of the day at this left to 20-day moving average. though it has been a pretty broad-based sell offtoday, about 90%. it has been to the down side not exactly a washout, but pre

shery: qualcomm -- counting down to asia's major market opens. haidi: top stories, asian risk assets losses. hot u.s. job data sending the s&p 500 to its worst day since april. while, sliding after the bell as a tepid forecast shows that mobile devices remains weak. a jumbo 50 basis point cut in result, the bank of england is expected to hike later. we have data crossing the bloomberg when it comes to australia. pmi indicators coming in. the composite coming in at 48.2, weaker then we saw in the previous reading. the services number is weaker. marginal weakness from the preliminary reading. both of those indicators looking weak in shrinkage territory. take a look at the reaction and it comes to the aussie dollar, downside pressure along with the kiwi. we have seen the increased haven demand for the u.s. dollar in the wake of the fitch downgraded of the rating. taking a look at broader spectrum of markets trading in asia, yesterday for a number of these markets, it was the worst day all year. the asia-pacific lost 2% across the session. it does no

an earnings alert on qualcomm. a revenue miss, cited continues macro headwinds. kristina partsinevelos has the details here on-set. >> well, the pc market may have had a drop, but the smartphone market is still looking for a bottom qua qualcomm blaming the 25% drop in smartphone weaker industry revenue and slower than expected recovery in china. keep in mind, it makes processors in the higher end android phones the weaker environment, as well as weaker china, leading to elevated customer inventories, and why management says drawdowns will, quote, be a factor through the end of the calendar year. on the call right now, the ceo warning of, quote, additional cost action to deliver maximum value in an uncertain environment. the cfe o adding the cuts will come in 2024 we don't know if that means job cuts but to your pitch to me, your toss to me, talking about the guide, the midpoint of their guide was $8.5 billion, lower than what the street was anticipating some of it has to do with the u.s. export ban. management just said on the call right now that the september an

qualcomm -- stock after hours. qualcomm fell as much as 8%. we saw some asian stocks fall as well.ualcomm saying overall handset shipments will decrease by at least a high single digit this year compared to 2022, and that indicates the outlook has dimmed. qualcomm saying its chipmaking peers saw a steep drop, and that suddenly had more inventory than needed. a lot of red on the screen. rishaad: china is hugely important for qualcomm. it's very dependent on them. 60%-plus in sales. it also provides modem chips to apple, which will be in the next iphone, but they will not say whether they will be in future ones after that because apparently, according to us at bloomberg, we reckon they will be making their own modem chips. su: you are underscoring the major problem, and that is that the china recovery, not really arrived yet. the region provides the company with more than 60% of their sales. last year that was almost two thirds of its revenue. so it's tied to smartphones, it's tied to china's recovery, and here is what the company is saying about all of that. since it remains difficu

in other news this morning, qualcomm has reported its third quarter earnings, with revenue coming in 04 sales will come in below market expectations as well. qualcomm said it could cutjobs, as consumer spending on gadgets like smartphones continue to remain weak as global growth slows. well, other chip—making giants like intel and amd reported their latest quarterly earnings earlier this week. and theirs suggest the slowdown in demand for personal computers and tablets may be easing. but a recovery could be some way off. market intelligence company idc estimates that shipments will fall by 15% globally this year, before rebounding in 202a. that's all for this edition of asia business report. keep up on the news website or download our bbc news app. i'm monica miller. thanks for watching. bbc news — bringing you different stories from across the uk. # when i take my sugar to tea # all the boys arejealous of me... # the blayze family are absolutely potty about teapots. they've spent a quarter of a million pounds on the biggest collection in the uk, everything from politicians to pop cu

very solid >> we are going to get shopify tonight, along with qualcomm >> i know. >> big day tomorrowt's get the opening bell at the cnbc realtime exchange at the big board, it's a weight-loss platform celebrating alisting via spac. at the nasdaq, it's the new york city department of transportation celebrating the summer streets initiative where they clear the streets of manhattan and the boroughs, jim, let you party for a few hours. >> i think it's terrific i know that on the starbucks call, and we'll get to that, they still have 3% of the city -- of the urban area has not come back. but i see it over and over again. the urban -- at least in new york it's back, it's back, it's back, and people may think that it's related to whether people are work-from-home, but the streets are packed tonight >> i'm curious to know what you thought of starbucks last night and the cfo's comments on "squawk" today and the guidelines >> china is extraordinary. did you know they had done $24 million more in the u.s., they would have done 8% comps in all these nay saying analysts would find themselves eat

. >> as we await for apple, look at qualcomm shares falling after earnings disappointing yesterday.venue estimates, but investors mostly focused on the company's softer than expected guidance with the smartphone business and the slump, qualcomm makes the chips and processors at the heart of a number of phones including the most high end android devices. deutsche bank downgrading the stock to hold from buy, currently down nearly 9% let's talk etsy. shares under pressure after the company delivered a softer than expected outlook for the third quarter. the ceo noting improving trends and active buyer growth accelerating driven in part by international customers. morgan stanley cutting its price target on etsy stock from 74 to 72, currently trading at 82 bucks a share. mooic? . >> seema, thank you very much. >>> what is the best tech stock to own right now apple, amazon, alphabet or microsoft? head to "closing bell" on x to vote >>> the results of our x question we asked what is the best tech stock to own right now the choices were apple, amazon, alphabet or microsoft. apple, winner and

and it was confirmed by qualcomm in handsets. it was confirmed by texas in auto give. august 23 rrd, we're going to ha from nvidia and snowflake. look at that chart that's taiwan semi sorry to step on your toes, but this is an interesting one that stock traded today right to that uptrends been in place, and, you know, guy, if he was sitting in your seat right now, would have said, one of the five most important companies in the world. they told you there's weak demand right now that chart, if it bounces here, we might be in the all-clear a little bit if it breaks down, the semis are going to go with it. >> i think when you look at the semis, dan, you are spot-on here, there's really stretchry everywhere, for as good as nvidia or avago have been, you are basically back to the 200-day on texas, on qualcomm, you're through it. tsm has maybe broken down here, so, this has not been a straight shot i think it's a reminder that two things can be true at the same time that these can be great companies that the long-term uptrends may still be in place, but also, stock's correct

companies we talk about qualcomm and intel and tesla of these are major u.s.ompanies and derive income from china do you cut them off? >> so many people will get it wrong and let's says i'm right, unfort unfortunately, some companies will lose revenue and supply chains will be problematic i think when you think about foreign policy, we sit here in the uk imagine if there wasn't a winston churchill, what language would we be speak today? what have we learned through chamberlain is achieving autocratic madmen doesn't get you anywhere these are difficult decisions. we enjoyed a peace dividend minus a few, you know, skirmishes with terrorists we have not had major wars, really, since world war ii let's say world wars we believe that era of the world was overw with. strength through weakness is what the u.s. has adopted. strength through weakness never whit works. i think we need to be stronger just today, we're expecting president biden to release the outbound investment restrictions we, today, just like the u.s. and uk and europe of the 1930s has been our money t

qualcomm reported a 25% decline in smart phone chip sales and expects a new round of layoffs to cut costg a real haircut of fate .5% pre-blackrock facing congressional heat for the esg investing in chinese company. we will get into that. the show might go on, the latest development in the sag strike next. stay with us. ♪ your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire at pnc bank, you can find us in big cities and small towns across the us, where our focus is to always support the people who live and work there. because you call these communities home, and we do too. pnc bank. wealth-changing question -- are you keeping as much of your investment gains as possible? high taxes can erode returns quickly, so you need a tax-optimized portfolio. at creative planning, our money managers and specialists work together to make sure your portfolio and wealth are managed in a tax-efficient manner. it's what you keep that real

pc demand and phone demand has been coming down we saw that with qualcomm. they were having some negative news there, i think people were expecting that with apple. but seeing how much their services is making up for that, i think that's really what people are liking to see here, and we're going to have to see how much that and china is the big story for them the fact they had beats there, i think is why people are not as negative on the right now. >> interesting, i mean, we've had a lot of time to digest that taiwan semi guide, and what we saw out of qualcomm. they missed on iphone, it wasn't a great quarter, but they know in september, they're going to introduce the iphone 15, so, it's the sort of things they're not going to hit the sell button on that miss i agree on china if you are trying to figure out what the bug a boos would be, that would clearly be one of them i'm sure the dollar weakness has been helpful to them we know how much sales they get outside the u.s., but i'm kind of with guy on this one, i just don't know why you would buy this stick at

. >> josh long, thank you for joining us >> yeah, i'm looking forward to qualcomm and etsy tomorrow qualcomm, after what we've seen from the chips, and etsy, you never know >> doordash will be one to watch today, as well that does it for us here at "overtime. >> "fast money" starts now >>> right now on "fast," after the bell earnings parade starbucks, amd, caesars, pinterest, and more. the numbers, the conference calls and the analysis straight ahead. >>> plus, the treasury department set to flood the market with new debt over just the next few months. what impact will this have on yields >>> and later, charting c cater caterpillar's bulldozing action. >> oh, no, no. >> fun never ends here i'm melissa lee, this is "fast money," live from the nasdaq market site. >>> amd, starbucks, pinterest out with results in the last hour shares are all on the move here. we've got the a-team of reporters ready to dive into the numbers for us we're digging into amd, the conference call is just kicking off. >> amd shares are higher we'll be looking for more clarity on two factors progress made on amd's a.i.

well, just like the flagship top processor qualcomm snapdragon 8 gent, 2 to 24 gb of ram up to one tb drive main photo sensor from sony 50 mp support wifi h7 and 150w fast charging at the same time wireless charging. no, protective glass. well, simpler than flags. well, additional cameras are also not at all flagship ones. so far they have presented it only in china. but judging by the fact that its predecessor is quite sold on the russian website in our country. this phone cannot come . open ai, the creator of the most advanced gpt-4 language model on which the latest version of chat gt is based , is considering using the capabilities of artificial intelligence to content moderation on the network, we are obviously talking about social networks and other platforms where users can write and comment , the developers assure that their technology will reduce the time it takes to train the system with a new, well, or changed moderation policy for any resource from months. up to hours since gpt models. it is not necessary to directly indicate the types of prohibited content. it is enough t

, the company providing more resiliency option for companies like nvidia and caulked -- call, -- qualcomm. i think the immediate opportunities for intel to be of foundry -- to lessen the u.s. and parts of the world's dependency on asia and tscm to compete --tsmc to compete. if it can win more on the leading edge, that is where the opportunity is, it can be a number two. it is a long way to be on tsmc's level. caroline: you say there is a partnership and deals can be done but can they be done in -- internally in the u.s? >> the doj looks at some of these deals, having said that, a lot of deals have been able to be completed, we have seen china stop dt -- big deals in the past. we are seeing the u.s. go through a high amount of scrutiny. if you start, -- stop m&a, you could be putting at risk the united states leadership. the chip and science act, the purpose of the act was to make sure we are defending the global leadership of the u.s. in semis. ed: we have been tracking 13fs in the deadline. your reaction to that? daniel: intel has been under continuous pressure. i haven't had a chance to

all of that coming after opening bell and qualcomm and doordash then we'll be getting adp private payrollort a lot happening. joining us to talk about that and much more is carol before we get to earnings or the rest of this, i have to ask you about what you think about fitch you up grading the u.s. credit rating is. that appropriate what would you mean? what would you advise investors. >> i think the interesting thing you've already alluded to is the timing of it, but it's not necessarily unprecedented. they're stating everything we know and mounting debt and also the interest rates the u.s. government is going to have the pay on that debt. that's not unexpected as we take it off the table let's pull back on some of the risk stance we've taken. >> so you don't think the decline in the future this morning is related to the downgrade as much as it's we've come a long way, we've seen big advances in the equities market and it's time to take a little risk off the table >> you've got weakening data, and labor markets softening as well you are seeing some softening. you're seeing that willingn

ftc is expected to announce a probe of qualcomm. . according to "politico," it's expected to be unveiled as soon as today and follow a similar investigation by european regulators. a autotalks technology also known as vehicle-to-everything communication. u.p.s. workers ratifying a massive new five-year labor deal that include big wage increases and improvements to work schedules. according to the international brotherhood of teamsters, the contract passed with more than an 86%. that's the highest in the company's history. this preliminary deal reached last month to help avoid what could have been a crippling strike to u.p.s. and the entire u.s. economy. >>> goldman sachs is cracking down on so-called summer fridays. according to multiple reports, the investment bank is making a renewed push to enforce its five-day, in-office policy despite pushback. in a statement goldman says, quote, while there is flexibility when needed, we are simply reminding our employees of our existing policy. citi and jpmorgan chase, meantime, have been worki

we heard it from cvs and inbev and qualcomm and t-rowe price. we can finally be seeing a turn in the global labor market >> does that give stocks the boost? company announced layoffs and stocks shot up because they were cutting costs. >> this will be focused on cost cutting. we will get the consumer sentiment numbers on friday here in the u.s will that begin to feed in the pace of consumer spending? we have to see. >> i want to bounce the headlines off you. first, banking sector risk moody's downgrade. europe cracking down on profits for banks. >> this is something that banks, particularly in europe, had to focus on it is not just italy uk banks have been looking at the windfall tax there are baltic countries that are putting in windfall taxes. this is a cloud that may hangover the nations for a while. issues with the commercial real estate, not so much in europe, but here in the u.s. with vacancy rates in major cities likes like atlanta and dallas and san francisco. >> i have to ask about china demand in china. another batch of weak economic da

this as investors kickoff a trading week with a fresh wall of worry demand warnings from apple and qualcommtch those in the wall of worry let's check on the top corporate stories with silvana henao who is back with those silvana, good morning again. >>> good morning, frank. high-end ev maker lucid is cutting price forforces for ther demand amid rising competition in the u.s. and price cwar kickd off by tesla the base price is down from $87,400. the grand touring starts at 95$95,000 and $125,000 the offer is valid as long as supplies last. >>> president biden is expected to announce curbing investments in china it is expected to target u.s. private equity and joint venture investment in china in semiconductors and computering n a.i. >>> and credit card users are carrying more debt than ever before it is up from 39% from december of 2021. the survey responses blame emergency expenses for the high month-to-month balances, but say higher interest rates make it hard to pay downt the smallest debt, frank. >> it is pressure. >> people continue to see the raising interest rates it is something to k

and that is feeding through to apple we see that feed through from the chipmakers we heard from qualcommnd amd that was, i think, why you have seen the drop off throughout for apple with the low expectations and they could not hit those in certain areas. >> arjun, you talked how china is a key market for apparent yest - for apple yesterday on "squawk box. >> i said it was to be resilient. up 8% as well as the broader smartphone market is hammered there. the reason for that is the fact that you are seeing the high end of the market in china continue to grow. average selling price of smartphones in china has been on the rise for the past few quarters that is really feeding in to apple's strategy in the high end of the market. iphones are not cheap. we know that in china, it is a product that people want to buy if they can afford it as well. that's where in china, they managed to find success and stay resilient. >> what about amazon we had amazon come through and see blockbuster reaction to the results post-market yesterday. it is not often you see 10%. >> a lot of bearishness for amazon th

are you worried over what you heard last night >> dom, we knew coming into the report with qualcomm thef the week with the smartphone chip business was down 24% obviously, we knew iphone revenue would come in on a negative light year over year. they where down 2-- they were down 2.5%. i was interested in the guidance they gave coming into the fourth quarter. they are expecting iphone revenue and services to accelerate in terms of growth. dom, you know as well as i do, we have the iphone p 115 that wl come out in september. it is hard to bet on apple before the release of the new iphone i'm optimistic that they will close out the holiday season on a strong upbeat and get things back on track for them >> dan, this is interesting. you are a portfolio manager. i was on the "halftime report" yesterday with the investment committee. the thing that was brought up multiple times with the apple results is this is a company that trades 30 times next year's estimates. do you find that rich? >> dom, i knew you were going to ask me that with the multiples 30 times the around $6 a share. when we look

ten-year treasury if thrvcpi comes in too hot, th recession heats up and it still comes down >> jim >> qualcommindications that the smartphone market has bottomed we'll see. they're going to report earnings tomorrow i'll be on thursday, so you can beat me up if i've got this one wrong. >> last word >> mcdonald's. one of the best quarters so far this earnings season, beating it by 39 cents. better margin, international they're growing over 11% and 14% in the asian-pac region. and china is stronger than expected >> that's going to do it for us. "the exchange" with kelly evans is up next ♪ ♪ >>> thank you very much, frank welcome to "the exchange." i'm kelly evans. here's what's ahead this hour. fresh signs of a slowdown in the data this morning. manufacturing in contraction, job openings back to 2021 levels even construction spending coming in like construction spending, on top of the survey yesterday. so why are bond yields jumping our jpmorgan thinks it's a head fake >>> what happened to the bud light boost? shares are lower after missing on second quarter sales. the company hiked guidance we'l

. >>> we have our reports out at 8:15, and it's another big day with qualcomm and others and two can't-misshe street" and an interview at 9:00asm eastern and then jpmorgan chase's jamie dimon will weigh in on the economy, bank lending, and a whole host of other issues when he joins "power lunch" with leslie p picker. >>> we're seeing the dow jones down the s&p down almost 1% but still off their lows this morning. and we're also paying close attention to the s&p futures over the last six hours. take a look at this. right now you're seeing a smart decline. s&p right now, the futures down just under 1% off of its lows. early this morning you're seeing the slight upturn in the last hour or so. >>> we also want to take a look at treasuries on o the back of fitch's downgrade from aaa to a a-plus the ten-eer benchmark at 0.02 off of the tide of yesterday we'll continue to watch the yeeds yesterday. let's talk more about this with brooke maine here in the house thank you for being here. >> thank you for having me. >> we oop've got to start with the top story. fitch downgrading. do you see it impact

they license the technology you may have heard of samsung and qualcomm.ll of these companies, and nvidia, they are building their chips, their processors, on arm-based designs and architecture. arm is really an intellectual property company. they make their money off licensing and other intellectual property they have developed that other companies can use. the more companies that build their processors based on arm, the better arm is going to do. i just see that there are good times ahead for that. caroline: glenn o'donnell, finishing on an optimistic note. meanwhile, coming up, how is your set up at home? is zoom it? they just posted second-quarter results and have raised the forecast for both adjusted earnings and revenue. but analysts are wanting more clarity on longer-term growth prospects. we are going to dig into that with the cfo. this is bloomberg technology. ♪ caroline: zoom, the videoconferencing company we all know, reported second-quarter results and boosted the outlook with a move beyond the course. let's jig -- let's dig into the visibility

coming, fuller earnings coverage from qualcomm to etsy, expedia and beyond. with an exclusive conversation with flex port and are ryan

we've seen that from qualcomm as well. a lot of things that tech is going into.he ai shift from the data center into the consumer story might be a while. const quint thank you. that does it for "the exchange." "power lunch" is next after the break. (vo) make the switch. it's your business. it's your verizon. from big cities, to small towns, and on main streets across the us, you'll find pnc bank. helping businesses both large and small, communities and the people who live and work there grow and thrive. we're proud to call these places home too. they're where we put down roots, and where together, we work to help move everyone's financial goals forward. pnc bank. >>> good afternoon, everybody. and welcome to "power lunch," i'm tyler mathisen along with contessa brewer. glad to have you here. today we're watching several stories at the intersection of business and politics. president biden about to speak about drug prices. the fdic plans to force banks to protect themselves. and the s.e.c. losing a court case and potentially clearing th

coming up, for earnings coverage as we wrap results from pinterest and push ahead to qualcomm. we wrap chipmakers from amd, look at softbank's ipo eying evaluation of more than $60 billion. plus a deep dive into the world of crypto and we speak to the ceo of the scanning cryptocurrency project world coin. nasdaq 100, very tech heavy index, add session lows, down more than 2%. we had hot labor market data, the treasure issuing debt, that is weighing on things and earnings story at the center, you think about semiconductors in particular, the stoxx or philadelphia index underperforming, down 4%, double the decline of index, the biggest drag amd. we will get to that in the second. u.s. 10 year yield above 4% and bitcoin moving back above 29 thousand u.s. dollars, the token we will focus on crypto halfway through the show with sonali basak. the earning story, two names in particular, to start with amd, it beat on the top expectations in the quarter gone, sides of recovery in the pc market, a long-term projection about the market opportunity for them in the context of ai and ai acce

qualcomm is down 9% after a disappointing fourth quarter. there is a slowdown in smartphone demand. expedia had bookings falling short of high expectations. and we are watching the yield. the 10 year is up 4.19. it is starting to get back near those october highs, which rick santelli warned us about. let's get back to mr. santelli. it is the chatter today, rick? >> the chatter is that there are some issues. whether it is how much the markets move. consider this. the fed raised rates a quarter point on the 26th. on the 27th, we had the gdp much smart's -- stronger. it is virtually unchanged, but it moved about 30 points. the spread has gone from -100+ to now under -70. this is huge. many say, what is going on with the higher rates? well, the biggest curve trade in history was the twos to tens spread. now, you're looking at the other side of the mountain. if you look at tens, 4 1/4 on the 24th of october, high yield close, that is the whole thing. if you look at the 30s, it is 438 on the same session. let's go talk to a traitor, shall we? hi, jason. >> hi, rick. it is good to see. >>

department of commerce put huawei on the list in 2019, they can only depend on other suppliers like qualcommt chips for some of their devices. but now by building plants in china, while way is helping itself and china to achieve --huawei is helping themselves to achieve their mission of being sufficient in chips. lizzy: of course markets are on the edge of their seats still waiting nvidia's earnings later. with the biggest nasdaq gainer so far go even higher? >> it's a possibility. investors would be keen to hear what the that's what nvidia says about the demand for its ai chips in the second half and beyond. at the same time, it supplier indicated it cannot supply enough packaging capacity for these ai chips. i think investors will be interested in what the media has to say about whether it can get enough supplies -- about what nvidia has to say. lizzy: thanks to debbie wu in hong kong. china has public advance expansion of the bricks block. while president xi jinping skipped the business form, he did attend a dinner with the leaders of south africa, brazil, and india, and russia's foreign

earnings season rolls on with semi conductor company qualcomm do to report later in the u.s.l's central bank will deliver its latest rate decision at 10:30 u.k. time. the bank cutting rates for the first time in three years. coming up oil rallies after pointing to huge drawdowns in u.s. inventories, we discussed next, this is bloomberg ♪ i need it cool at night. you trying to ice me out of the bed? baby, only on game nights. you know you are retired right? am i? ya! save up to $500 on the new sleep number® smart bed. plus, free home delivery when you add an adjustable base. shop now only at sleep number®. >> welcome back to bloomberg day europe, oil has resumed a rally after an industry estimate pointed to a huge draw down in u.s. inventories adding to signals that the market tightening. joining me now to break down those moves is stephen, how does this fit into the larger global picture? >> first let's look at this drawdown in inventories in the u.s.. the api is reporting according to bloomberg sources that there was -- basically if confirmed would be the biggest drop on a v

and then look at tech too, and names are underperforming there as well, like qualcomm, for instance,hat has exposure to china. the china factor, you know, mike, it's hard to read of what it -- what it means for the u.s. markets. besides -- and we saw, first of all, we saw the estee lauder news today on their earnings and we see where they're getting hit, which is asia travel, which we'll talk about in a moment, but that's clearly the weaker china story. but broadly, for the u.s. economy and the u.s. market, have not seen necessarily a big direct correlation, even though it feels -- the chinese stock market has underperformed greatly, and it feels like they're craving some sort of baa z bazooka or stimulus to deal with these problems. >> it seemed like china is struggling with growth, dealing with deflation, which can act as a drag on global inflation. in other words, it seemed as if it was helping the things we wanted to be helped, which was reinforcing disinflation story. now, i do think it's more about financial conditions, you know, any kind of financial accident risk that is risi

consumer electronics we see that across the pc industry we see that in the mobile chip world from qualcomm. despite the growth story they're telling in india, as these notes often note, it's not enough to make up for what we're seeing in china, what we're seeing in the united states. demand is still down f of course, we're going to get new iphones, certainly next month, at the tail end of the current quarter. the real question is, in the second half if we keep seeing the strong consumer demand that we've been hinting at here in the united states, if that can continue and provide a boost a lot of people do think sales will be relatively flat on a unit basis for the iphone year over year into the holiday quarter despite a new launch of an iphone. >> we've seen a series of record highs for apple. even in spite of the cautious commentary we got a week and a half ago i'm wondering what kind of messaging do you think apple will have around a.i., maybe even the a.i. chips it manufactures in house? >> that's an interesting question we got the report from bloomberg a couple of weeks ago that they a

qualcomm down almost 11% on a disappointing quarter, guide for this quarter, week cell phone demand.pal down 12%. transactional operating margin not what folks wanted. a little bit of a miss there on a sequential basis. amazon down .6%, apple down .1%. apple stood out to me for a while. one of the problems with these tech companies for the quarter we came into, revenue growth was not that great, single-digit. meta defined that. apple is expected to decline. let's look at an updated chart for apple, suggesting we could see them put in a serious decline. this convergence of buying tells you that sellers are ready to pounce. sellers are already starting to pounce as this uptrend breaks. 15% above the 200 day moving average. we did something similar back here, similar convergence. rsi, which recently came out of overbought territory, suggests we could see moreforth coming out of apple. as the biggest waiting, maybe the markets overall. guy: if apple goes down significantly, we could consider a wider market selloff. watching out for that one. amazon, apple out with numbers later on. we wi

. >> we just saw qualcomm's numbers. i think apple's like 50 or 60% of their business as far as the iphone chips go. so they came in really soft. i would expect that we see continued softening demand on iphone sales. the big question for apple is whether or not an increase in services revenue can help to offset some of that. now, next quarter you'll have a new iphone, like they've got new products coming out so things will improve for apple but amazon when we look at amazon, amazon to me is one of the most under-appreciated a.i. plays that are out there. you really don't hear anyone talking about them being a major a.i. player but they through aws, they supply a.i. languages to all the software developers out there. the software developers can purchase those languages from amazon. so it will be interesting to see how they're actually using that, what kind of results they've seen so far. i feel like that's a good read into a.i. maria: i feel like everyone wants to jump on the a.i. bandwagon right now. early '90s, i'm dot-

revenues held up better than the actual -- people like qualcomm. still under some pressure.ss we are looking for an uptick in the in the second half of the year to hopefully reverse that trend. lizzy: do those chips expire? or can they just use them later? matthew: they do. that is the problem. apple is a good example. we are going to see a new iphone come out in september and that will have you chips in it so it is a continual refresh of the technology they are putting into these things. they definitely have a shelf life. lizzy: there are 28 banks on the list of underwriters. that's pretty big, isn't it? alex: not all of these banks are playing an equal role. there are three different tears of involvement. these target prices they are going for his punching. there is no guarantee they will be able to get it and we have had reports that several massive tech companies, amazon, samsung, apple, eventually nvidia -- which tried to buy arm from softbank was essentially rebuffed by regulators -- they have all been reported to be in talks in becoming an anchor investor. now an anch

qualcomm and earnings be sending are teaming up to rival the likes of softbank's arm. other firms to fund a new company specializing in risk technologies for chip designs. the unnamed business will initially focus on applications for cars. a workers union is accusing alphabet of illegally ending contracts for a host of google help workers that were trying to unionize. organize has filed a complete with a national or -- national labor relations board accusing the giant of retaliation on a number of graphic designers and launch coordinators responsible for ai related tasks at the company. coming up, a revolving door that nicola, the new ceo at the helm, effective immediately. the third ceo in 18 months, the latest name is a familiar face. this is bloomberg. ♪ the first time you made was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com i don't want you to move. with a partner i'm gonna mis

has been straight-up that's an example of what i like to see there are plenty of buzz kills like a qualcomm tonight, which is exactly what you said but i'll trump that with a proctor. let's go to john in texas, john? >> caller: hey, jim, i've been watching you since the kudlow days. >> geez! people hanging with me for a long time. what's up? >> caller: you guys taught me that earnings are the mother's milk of stocks >> they sure are >> caller: hey, jim, i want to ask you about one of my long positions in the aerospace and defense, arc it. >> okay. >> caller: significant after market positions jim, what are your thoughts on transdime? >> transdime is a very, very good company and the aerospace business is very good to them. i know they have a good balance sheet and do a lot of different things it has been in one of my bull market sectors, and i'm going to tell you, i think it's good. i am not concerned for our nation pitch downgrade there are too many people right now who are too sanguine about the stock market, because we don't want the get too close to a very nasty sell-off in light of wha

qualcomm pointing to weaker demand for their chips there, which has unfortunately upset quite a few stocksamd taking a hit. this morning out in europe their results coming out and pointing toward demand as well as the smart phone chip market not necessarily coming online. so that has hampered a few of the chip stocks. that's why you even saw the likes of the nasdaq drop more than 2% yesterday. then losing out in 47 sessions of not losing more than 1% of gains there. so a clearly negative picture anticipated across today as well. >> so continues the earning season and nin tendy continues a surge. tell us more from the japanese video game giant. >> what a bumper, bumper quarter it certainly was, right? so 3.19 million switch consoles being sold by nintendo. that was on the back of the swrelda game which has done fair lewell. and the super mario movie has brought sales up. the big question are all these gains going to be sustainable for the longer term for this company again. it is about ensuring the entity gathers around this boom right now and how far they can actually go with all this. cer

forward that there could be 2024-2025, especially when we start talking about the in-house players, qualcomm and apple do well with smart phones, but they still can't run. josh, you can't throw that out there and not explain it it's like waiting in line, cpus, you have to wait for the next one, and then you can run that compute whereas parallel processing it all happens at the same time. that's the difference with gpus and cpus institutional investors, goldman sachs said they did not get into this name after hours or today that could be why the stock is more muted this morning. >> josh, the point you were making, forgive me for not letting you make it at that moment, but i wanted kristina to finish her point before you got in what did you want to say >> i just want to say there will be hundreds of entities that produce, quote, unquote, ai chips. that's not the thing the thing is if you have a developer community who is willing to invest and develop things on your standard. that is the advantage of nvidia. it's not just look what we rolled off a fab and can amd make one that's cheaper? it's t

coming up, for earnings coverage as we wrap results from pinterest and push ahead to qualcomm.from amd, look at softbank's ipo eying evaluation of more than $60 billion. plus a deep dive into the world of