cap ex is high with satya nadella telling shareholders to expect more of the same in the coming quartersand then snapchat parent company with snap with beats all around and earnings and profit revenue and daily active users beat. snap shares up over 23%. and trying to keep the equity gains in check with the two-year note hovering at 5% yield ahead of the pce inflation report. the two-year yield popping up at 4.99 it crossed the 5%-year-old yestyiel yesterday. > that's the setup joining me now is sophie lund-yates and ryan from the carson group i want to start off with the report it came after weaker than expected gdp which is counterintuitive of economic reports work in recent weeks it has been the hotter report leads to the selloff were you surprised by this or is this part of the seasonality of the election year? >> frank, good morning thank you for having me back after 30% rally over the past year, the huge rally off the october lows, you see i indigestion and then you get a surprise rally look at the gdp. consumption was strong parts of the economy mattered. imports and exports took

open ai sam altman and microsoft's satya nadella to name a few right now there are no laws that prevent deepfakes or other a i misinformation from spreading to the us government has been scrambling to work with the private sector and figuring out the risks and benefits of the technology. time now for your money watch report. markets closed in the green on friday. early this morning, stock futures kept their green streak to start this week. so let's see where the markets are right now still green up 88 points. tesla is 1 of the many stocks seeing major gains this morning after elon musk gets china's approval for tesla to roll out advanced driver assistance systems during a surprise visit to the country. according to reuters. the bay area founded automaker 1, a key endorsement from a top chinese auto association, it said tesla's model 3 and why cars were among models found to be compliant with china's data security requirements. now this comes after tesla's 1st quarter earnings report showed a 55% drop in net income. revenue was also down 9% last year, experts say that's mainly because of

satya nadella saw the potential in sam altman in the business he was doing. he started investments early and has continued to invest in that. microsoft has the capital to fuel a business like openai and chatgpt which of course has been a major catalyst for a boom in funding and investing in artificial intelligence. can microsoft stay ahead of the competition? microsoft needs to continue to capitalize on the openai relationship. at the same time, it's all about making sure that investors and your customers believe in your ai story. do they believe you are weaving ai into core products including search? microsoft has been a huge laggard behind google in search. if microsoft can start to steal some of the march on google when it comes to search in terms of being search engine for example, it would be a huge advantage for microsoft. paul: it's not been all champagne corks for the tech earnings. let's talk about intel. this company used to be the world's dominant chipmaker and has had a tough couple of quarters. what are they doing to turn things around? >> intel

satya nadella makesinging the announcement as he kicks off the three country tour. microsoft will train 2.5 million people in the region with a.i. skills. >> silvana, thank you. >>> we have more to come here on "worldwide exchange," including the one word that investors need to know today. first, does mcdonald's have what it takes to break the three quarter sales losing streak with the stock down 7% this year. >>> we have your big money movers and why coursera is plunging ahead of the open. down double digits. >>> and later on in the show, amazon numbers you need to know ahead of the report. it it's a very busy hour on "worldwide exchange." stay with us. that you and your family need. i promise to put your long-term financial well-being above any short term transaction. everyone has a big picture. my job is to help you invest in yours. [announcer] charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com (grandpa vo) i'm the richest guy in

satya nadella is seeing strong growth in the artificial intelligence products. >> our a.i.nnovation continues to build on the partnership with openai more than 65% of the fortune 500 use azure. our customers continue to grow and average spend continues to increase. >> we are seeing that earnings optimism filter through the market with amazon and nvidia and pinterest among the tech names moving higher. you see the shares on the screen at this stage. all three in pre-market trade moving higher. >>> let's discuss other issues with our guest good morning good to have out the show. first, i would like to get your thoughts so a.i. obviously, this was a very important narrative for the market at the start of the year. on the back of the results, the a.i. boom is still there >> all of the companies are talking about it as microsoft was saying, the demand is outstripping the supply we are seeing corporates investing in this and we see demand coming through. this requires cloud services and that's why you see acceleration of azure growth to 31% and cloud business beating which they a

satya nadella saying co-pilot is part of a new era of a.i. transformation the call is going to kick off here, and we'll be listening for guidance and co-pilot. and of course, like we're saying, increases in capex, as well >> we'll be looking for the overall guidance for the next quarter and the full year in microsoft's call, as well. we certainly have been down the road where we see it afterhours, stock is acting well and we get hit with it. initial take on the quarter? >> i think azure, and that pivot, we started to see last quarter. it wasn't much it gave the bulls a chance to say there was some inflection point. and this is a serious inflection point, at least, when you want to see where a lot of the real growth is coming from, the fact that a.i. is seven points of that growth. you have a dynamic also with $8.5 billion in share buy-backs, the act of the company to actually -- to at least support the share price, support earnings in a lot of different ways every segment, including commercial cloud, up 31%, that was a beat the operating marg

i think satya nadella would say, we're trying frantically to get this culture together and this is neverng to happen again. the report by homeland security -- this is not a department of google and amazon -- is so damning, that i was like, no, they could not have lied to homeland security, could they? could they have said a hack was done, rooted out, and it wasn't? >> seems like a bad thing to choose to do. >> suboptimal. >> yes. >> but anyway, i think that george brought it out. i'm trying to get the department of homeland security guy on. we did read a statement from microsoft, which admit, by the way, they got to fix their culture. here's what happened when this report came out. microsoft was up 15 cents. hey, you know? the people have spoken. homeland security? ain't got nothing for you. >> those kinds of stories don't typically get a big reaction in the equity markets. microsoft shares up some 45% over the course of the year. of course, it is the largest market cap company of any in our market at $3.13 trillion. >> they're having a great quarter. >> far exceeding that of apple at th

. >> if you're satya nadella and read this report, how are you supposed to feel? defensive? a call to action, we screwed this up, we got to change course? >> well, look, if i'm satya, if i'm brad smith, i'm reading the recommendations and taking them to heart. it is very clearly outlined that the ceo and the board need to get in a hands on oversight administration of the security program. need to hold senior leaders accountable. need to prioritize security over feature development. that is at the heart of it -- decisions made were on the business side and won out over security and that's got to stop. and the last really important part that the report makes is that microsoft is one of the most important, if not the most important technology company in the world. and we all depend upon it for hardware, software, productivity, cloud, security. it is a lot we're placing on them. and with great power comes great responsibility. >> can you sort of stack rank the big tech companies as it relates to security? it is funny, i don't know, not funny, but microsoft i think actually has be

lots of mushy talk from ceo satya nadella on co-pilot.e have no idea how well it is selling, but little nuggets of information here nadella did mention a handful of companies that bought at least 10,000 subscriptions to co-pilot as for google and alphabet, sundar pichai shot back, he said tests showed early increased usage in a.i. search if that pans out, that is, of course, more chances that stuff adds in search beyond ads, he said google will monetize a.i. through subscriptions and the cloud, just like microsoft is doing now. one other interesting argument from pichai, they're not related to a.i., he said youtube and google cloud combined will have $100 billion run rate this year. that's kind of his way of saying alphabet is more than just selling search ads >> right it is probably not -- i was thinking, like, streaming, i said that earlier, remember how streaming, everybody -- we're going to spend all this money on streaming and disney went to $200 because streaming, we got streaming. and then -- >> like peacock, paramount. >> then it