if you look at skyworks, they just preannounced lower as well. so the fact that it's bounced is probably a good thing, but i do think it's destined to trade back at the levels that we topped out in in the middle of 2015, 128.5, 129 everything tim cook said is probably drew, but the bottom line is $1,000 phones. maybe they put themselves in a position where they actually didn't, like we talked about last night, maybe they don't have the pricing power that they thought they had. >> right >> i tell you what, listening to tim cook at some level gives me a lot of confidence. at another level when i hear him say the product pipeline has never been better, i wonder. in fact the pipeline has never been fuller. we've got more models, more skus than we ever had with apple which i think might be confusing consumers right now. i don't think investors are terribly confused. i think investors believe this is a great company who's not facing kind of existential threats to their core business but that the iphone is still the major part of the story here and they

. >>> skywork solutions lord its quarterly sales and profit targets. the chip maker cited weakness among its biggest smartphone customers. investors have been focused on the outlooks issued by smartphone suppliers after samsung estimated a sharp decline in profit and applewe d its quarterly sales forecast. shares of skyworks rose 4% to $67.69. >>> chesapeake energy plans to lower its capital expenditures this year. the shale oil driller will also reduce its rig count by 20% to anverage of about 14 rigs. the company said fourth quarter output will forecasts.p that sent the small cap stock higher by more than it closed at $2.76. >>> t-mobile said it added about 1 milli net newhone subscribers in the fourth quarter, easily exceeding w estimates, whie about 850,000. the company cites competitive wireless plans and trade- offers. this follows verizon's strong quarterlyubscriber numbers we told you about yesterday. the shares were down a tic to $67.72. >>> after the bell, bed bath and beyond beat earnings expectations by a penny. 'shead of schedule on stemmi

apple and skyworks skyworks both of the stocks are moving higher bad news, price action that is goodmething to watch >> we began the hour with the fed minutes. the operative word is that they defined what they mean by some future further rate hikes meaning they would be relatively fewer in number. little reaction there today. there is apparently a lot of fed speak tomorrow including jay powell giving remarks. that will be something to watch. reaction to the fed. the fed seems to be calling the tune these days in the market. >> let's hope jay powell stays on script. thank you so much for watching "power lunch." >> "the closing bell" starts now. ♪ >>> good afternoon and welcome to "the closing bell." coming up here on the show, ken fisher and liz ann sonders we will have them here to discuss the latest market moves and strategy >> nike getting a rare downgrade today. first, check out the market rallying the fourth day in a row the winning streak continues good for a gain of a half percen

two of apple's radio frequency chips suppliers hitting new lows, taiwan semi and skyworks solutions. look at that fall. audio chip maker for apple products, look at that, down 8.25%, so we have got it at $31.45. this is a deal that could create a real problem for all of the halo companies for apple. >>> what a day to announce a big combination, one of the biggest pharma companies combining with another huge one for the most significant cancer drug businesses. bristol-myers squibb has announced it will buy celgene for $74 billion in the stock cash deal, each shareholder will get one bristol-myers share, a nearly 54% premium. we have celgene at $81.65. moving up by 15 bucks. chris to i want to get our traders in right now because we are now six minutes off the top of the hour here, 54 minutes before the closing bell rings. do you blame the apple warning yesterday for triggering all of this? >> i tell you what, yeah, because of the nature of the modern market, yes, the bad news in apple, the lousy ism number which came on top of lousy survey numbers from all the regionals, these all con

the price action has been pretty good on the back for example, a skyworks, which is now higher than it was when apple made that crazy announcement that stock in my opinion should be lower and it's not. a lot of these stocks are saying, you know what, all the bad news has been priced in. going forward, enclosure sailing ahead. if you're in the bull camp you have to wrap your head around what's the right multiple in a slower environment. >> the market has wasn't when it was around 18, 19 on the s&p and it didn't care in the early part of this market you can make an argument the s&p is attractive here that is a function of where you think the federal reserve will be. >> last year when we had the s&p trading at 18 times, growth estimates were much higher than they are right now so we've had this downshift in growth globally. it really does speak to the optimism mike santoli was just saying at the ending of last hour the optimism was abound at davos last year. it's not like to be this year. >> the optimism is as excessive as the pessimism was in late december >> is it >> i think so. the fur

an analyst is cutting his forecast for corvo also skyworks and broadcom.all deeply in the red today. ofsays that a cascade downward revision is coming for these companies as this news is digested. the big question around all of this is why was this a surprise? >> that is a good question. including corvo, these suppliers for apple have already cut their own forecasts over the last several months. they never named apple, they just said one of their biggest customers is the reason for the forecast. apple is blaming this on economic downturn in china and waning smartphone demand. thank you very much. let's look at the markets. we will be checking them throughout the day. it is another volatile day. major indices are lower. the s&p is well off its low. companies like insight are also getting a little from this celgene, bristol-myers deal. balance of power is next. this is bloomberg. ♪ >> from bloomberg world headquarters in new york, i am david westin. welcome to balance of power, where the world of politics leads the world of business. today, given serenely on

in the u.s., skyworks, broadcom and universal display, which makes oled screamens.he primary supplier of the face i.d. feature, lumentum, down 8%. retailers also getting hit on this news. back over to you >> thank, thank you very much for that. >>> coming up next, much more on apple's big tumble what the tech giant's massive move means for the currency market we'll dive into that trade ahead. and we're all over market slumps the key levels you will want to watch and how you can best position your portfolio. stick with us. buy. and last year, i earned $36,000 in cash back. which i used to offer health insurance to my employees. what's in your wallet? a business owner always goes beyond what people expect. that's why we built the nation's largest gig-speed network along with complete reliability. then went beyond. beyond clumsy dials-in's and pins. to one-touch conference calls. beyond traditional tv. to tv on any device. beyond low-res surveillance video. to crystal clear hd video monitoring from anywhere. gig-fueled apps that exceed expectations. comcast business. b

a lot of bad news is priced into the market skyworks is lower. lennar said we're not going to give you 2019 guidance if this would have happened six months ago, the stock would have been down big time a lot of bad news priced in a lot of these stocks. constellation still a big surprise guidance was poor. their wine and spirits sales was a miss but the bottom line is basically a lot of bad news already priced in for 2019. what side are you on if you think 0% earnings growth, you'll think the market will still go down. 5% or 6% where a lot of people have 3,000 as an s&p target with 5% earnings growth >> bob, thank you. >>> let's get over to rick santelli with the latest for the ten-year auction in treasury bonds. how does it look >> this is a great auction, kelly. i gave it a b-plus for straight-up demand at 1:00 eastern let's go through it. second reopening adding to an issue for the second time. originally auctioned in november so these ten-year notes yielded 2.728. that's lower than the one issue was trading right at 1:00 eastern lower yield, hi

. >>> now, moving on overnight apple chip supplier skyworks lowered its first quarter guidance it blamedon the weakness in our largest smartphone customer. once again, not naming apple specifically, but investors tend to draw the conclusion themselves >>> in an exclusive interview with cnbc's jim cramer, apple ceo tim cook tried to ease investor concerns about apple's future he insisted that future is not in doubt >> i'm never surprised by the market, because i think the market is quite emotional in the short-term, and we sort of look through all of that. we think about the long-term, and so when i look at the long-term health of the company, it has never been better the product pipeline has never been better. the ecosystem has never been stronger the services are on a tear >> meanwhile, apple has raised tim cook's pay for the 2018 fiscal year. security filings show cook was given a 22% boost to his total compensation he is now close to $16 million a year, and it's the second straight annual pay raise. >>> meanwhile, a tokyo court has reportedly rejected the intention to end the -- of ca

somewhat counter intuitive you might have to see a reguide lower from the skyworks, bro broadcomes. >> if this is a multi-quarter economic slowing, who has china as their largest customer? europe they already have a slowing economy there. so you could see other companies, you could see industrials fall on this you could see asia pacific and europe fall on this news if the market extrapolates that the china slowing is going to last for a long time. >> throw up gluu mobile, supplier of apps, games, things like that, jabl, all of these names are going to be front and center tomorrow as you start to dissect exactly how this is all going to play out in the months ahead if apple is in the penalty box for an awfully long time. >> yeah. again, it goes back to how much has this been priced in. it appears by action this afternoon or this evening that we still have a little bit more to go on this. so maybe apple hits 136, then you start looking at their average. >> here's the good news if you get some of the big ones out of the way and the markets take i in stride, then you're set up obviously p

skyworks, broadcom and universal display, which makes oled screens. primary supplier of the face i.d. feature also down everybody is getting a hair cut. that's the theme now over the course of the day you have to see if people are trying to see winners ver s versus lon a relative basis >> qorvo, you know them? i do not >> jose qorvo? no >> that has a "u." >> i know. >> this one has no "u. >> qantas -- >> that's an acronym >> qatar but it's rare. >> i should say that like a "k"? >> no, i think i would like to buy a vowel for them all right. >> we are also seeing a drop in shares of u.s. companies with exposure to china. apple, boeing, caterpillar, deere, micron. the standard list of names to watch. the market gets worried about china exposure, they go to those. >> our sleep-deprived co-worker, cramer, has already -- i don't know if he slept at all probably he's back. you buy apple today? you sell >> you will hear jim's take. we keep contrasting the magnitude of the warning with 7% to 8% incremental down side. >> 145 buy or sell? >> 145, you know, longe

but there is activity in suppliers of apple, skyworks solution, broad com, corvo all plunging in after-hours. can you give us a sense of how big the ecosystem of suppliers is and how painful this could be for them? >> the ecosystem is immense. i will say that we've seen these supplier cuts happening over the last several weeks. and every time there was a new supplier making cuts, we talked about it. oftentimes this does happen throughout the quarter and at the time it seems like a much bigger deal than it ultimately does at the end of the quarter. but with the company coming out and cutting their forecast in the middle of the quarter, that is very significant. and we can assume that this is going to ripple throughout the supply chain. lisa: thank you so much for being with us. that is bloomberg television anchor emily chang. we have more ahead. apple shares going to be resuming, trading, 4:50 p.m. eastern time. from new york. this is bloomberg. ♪ lisa: want to reiterate the breaking news. shares of apple are halted until 4:50 p.m. eastern time. they reported in a letter from tim cook that th

and then finally, also we are just seeing once again chip names, skyworks warning not as bad as fear seeing the highs of the day and higher even on bad news back to you. >> bertha, thank you very much for that. >>> next, chief economist david rosenberg with his thoughts on jay powell's speech and the state of the global economy a bagg. not that encourin wereack in a couple of minutes. one-millionth order. millionth order. ♪ there goes our first big order. ♪ 44, 45, 46... how many of these did they order? ooh, that's hot. ♪ you know, we could sell these. nah. ♪ we don't bake. ♪ opportunity. what we deliver by delivering. >>> he is the best a new report of standard charter says the u.s. could lose its top spot as the world's largest economy as soon as next year when measured by purchasing power and nominal gdp china expected to take the tight frl the u.s. in 2020 while india may surpass the u.s. by 2030 >> federal reserve chair jerome powell gave his take on the global economy and the impact on the u.s. economy at the washington club earlier. >> i would say the u.s. economy is solid th

skyworks rebounded 8% to date.nd you can see the results today are kind of mixed. >> bertha, thanks very much for that. >>> let's discuss all of this. very good afternoon to you all i'll start with you. clearly sentiment soft today is it led by stock specific factors opposed to macro >> i think it's hapartly micro but i think there's that back -- they shut down the shutdown but they didn't do it very effectively and it looks like it might erupt again in three weeks. so there's the usual amount of recent chaos in washington and i think that inhibits people from having any real faith in the rally and that's why you're not seeing really big volume here. you did get protected. you bounced off the support in the area of 24,350 in the dow jone jones. that's held up pretty well as i said last weekend, a close below 24,300 would put the whole rally from christmas eve into some question. >> so we'll watch the technical levels there are so many event risks this week. earnings today earnings this week we have got a fed meetin

but skyworks, invidia with substantial exposure to revenues in china, as well.io techs continue to be on fire and a two-year high on positive analyst note out of ubs. bio techs are up about 24% since the december low back to you. >> okay. thank you very much for that. >>> now republican senator chuck grassley telling reporters on wednesday that president trump is inclined to move ahead with imposing up to 25% tariffs on imported cars and parts. of course, slightly different theme to the news we got last hour but nonetheless bring in jim press, former president of chrysler thank you very much for joining us what do you make of senator grassley's comments? do you think that is possible? >> thanks, wilf. yes, you know, this is part of a negotiation process that's going on bilateral communications and negotiations with europe european trading partners and, you know, in a way we are seeing this sort of realtime. instead of what goes on behind the scenes so i think it's part of that process but yes they are trying to get improvement in tariffs from europe. right now,

rotation back into some of these beaten down chip names welcome at the gains of this week micron, skyworks nvidia despite not so great outlook news for earnings season finally, the big standout this week, the contributor for impact, netflix. monster week up 13.7% it is poised to come out of bear market territory still 20% below its all-time high back to you. >> bertha, thank you very much for that. >>> wti crude oil's recent rally taking a pause today after a nine-day run of gains, the longest higher since 2010. despite that, the oil price down 27% in the last 3 months joining us now to give us an outlook for energy, francisco blanch, head of derivatives research for merrill lynch what is your key explanation for why we have seen this bounce in oil prices over the last ten days or so >> hi, thanks for having me. well, let me just say that heading into the end of the fourth quarter of last year we had the biggest rotation in spec positioning the oil market's ever seen. over the course of the last year, we saw excess of 1.1 billion barrels sold out of spec positions. the market was very, ver