thank you all, steve kovach, ashley gold, kim forest. five-year notes went up for auction the top of the hour. you know we'll get rick santelli in here to tell us how it went over >> yes, kelly. this is the second option. if you do recall, yesterday's 42 billion in two-year notes, that was an "a. this five-year note option, also an "a. a real solid option. 43 billion fives, below the when issued market. lower yield, higher price. some of the metrics are clearly off the charts the bid to cover 2.64. that means there was $2.64 chasing every dollar in securities available the best since august of 2020. but here's the biggy indirects, this is the one you like, kelly. this is all of that foreign interest 75.7, i have a 22-year database. i don't have a higher number than that. the only fly in the ointment, direct bidders, 15.4%, a little below ten-auction average. and dealers take 8.8%. i don't have a smaller percentage, so customers cleared the buffet table, a solid "a." we now have 85 billion in our pockets. tomorrow will be 35 billion. it t

it fell below $2 trillion, this decide foxconn's iphone city rushing to full capacity steve kovach joinsve, what are the big issues weighing on the stock? >> just a lot of uncertainty, sara look, we got off this holiday quarter where apple couldn't make enough iphones to meet the demand they were seeing. they even warned about that in early november, and a lot of people just couldn't get their iphone in time for christmas so the big uncertain question now is can they carry forward into this current quarter in january? if you didn't get an iphone in time for christmas, are you willing to buy one this year instead and get it a few weeks or a month later, and on top of that as recession fears keep mounting are people going to say, hey, i don't want to overspend in case a recession hits now there are some positive things that we are hearing about. morgan stanley came out with that note today like you said saying app store sales were up 1% in december that comes off five straight quarters of app store sales declines some of just a little bit of green sheets there potentially for the services

they declined to comment on the report steve kovach joins us. what does mi boost a lot of their existing products so obviously when we all started chat gpt botting, we thought, okay, this would be really good for bing search. that's a thr google. but beyond that, there is a great report in the information this weekend talking about how microsoft plans to inject this technology into their office apps microsoft word, power point, excel, imagine telling microsoft outlook to find me every email sara eisen ever sent me, for example, or draft an email to sara eisen about doing the market zone segment. they have some tangible plans for this and you can imagine it helps microsoft more than just user facing stuff, but also people, their back end engineers, it people who are coding windows they get in on a hot technology that appears to be further ahead than something google has been able to come up with, sara. >> it is impressive if you haven't tried it this chat gpt. steve kovach, thank you. >>> wanted to ask mike about microsoft. it is up half a percen

thank you, steve kovach. >>> still ahead, both crude and exploration companies falling. oil is down 16%, nearly. but the oil field services etf, that's up 24%. we'll look into this contradiction. it could continue, according to one industry watcher 'lte uwh nt. hel lls y,ex another busy day? of course - you're a cio in 2022. but you're ready. because you've got the next generation in global secure networking from comcast business. with fully integrated security solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want - your team, ours or a mix of both. with the nation's largest ip converged network. from the most innovative company. bring on today with comcast business. powering possibilities. meet jessica moore. jessica was born to care. she always had your back... like the time she spotted the neighbor kid, an approaching car, a puddle, and knew there was going to be a situation. ♪ ♪ ms. hogan's class? yeah, it's atlantis. nice. i don't think they had camels in atlantis. really? today she's a teammate at truist, th

steve kovach joins us now. the most important thing happening at apple is the iphone. >> yes. >> holiday season saw supply issues based on what was happening in china with covid. probably also demand issues in china. and now the question of what's happening for well-healed consumers around the world so i don't know, analyst estimates are still high on this price target is high how much risk in the next quarter? >> some price cuts today. >> but cuts like 175. >> yes 180 down from 200. at 127 now. >> so look there's a lot of optimism around here the iphone is the one in question and the uncertainty around the iphone is in question we know the plant that had the shutdowns late last year is back up to about 90% capacity so in theory if you -- you know, they can catch up to the demand. now the question is is the demand actually there? that is the big question, are people who missed out buying an iphone in time for christmas, are they willing to buy it now or looking at their checking account saying if a recession is

steve kovach ishere. he's here. he's going to be joining us to break down microsoft's report.reasury markets, i think you're back below 3.5%. looking to the lights. big mistake. the 2-year's at 4.125% what do you think it's signaling, joe >> i thinkwe're going back and forth again between inflation and recession. there's a piece in the journal about temporary workers. they're getting rid of them faster than you can take a lot of what's been in the past may be a precursor in the jobs market because they're easy. it's easy to do. >> there were workers that were brought in to deal with the surge. >> the different things. >> that's gone, and that's the first thing that goes. >> it's like a winter phlegm it's permanent. >> it's from davos. >> for me -- i wondered about -- i don't have long covid, but i do feel a little -- i don't know like it he's sort of here to stay, no >> i feel like it's more of a waking up at 3:45 thing that 'eers here to stay. >> you sleep in 15 minutes more than i. >> you get up at 3:30? >> i've got a lot to do. >> never mind. i know what you do moving on. >

steve kovach and dominic chu join us.r was this him responding to what he anticipated shareholders were going to ask him to do anyway >> it wasn't even anticipation a year ago when they had their vote on this issue, the shareholders' meeting, far fewer people supported his pay package. used to be something like 95% they would say tim cook should get paid what the board got paid they saw this dramatic drop-off in support for his compensation package. in the filing yesterday, apple says, we've been talking to shareholders throughout the year we know what happened to apple stock price last year. they probably weren't super happy that so much of his restricted stock performance was tied to time not performance now it's flip-flopped around and more tied to performance than time he could retire tomorrow and still get the time rsus. >> this is the reason this is so controversial and the reason you had a number of shareholder advisory services come out in support of these reduced pay packages it's not necessarily these pay packag

really him >> i'm dating myself but that's where we are >> you are, yeah eamon javers and our own steve kovachiate it very much. >>> shares of zoetis are down 14% and taking a big dip in november on a sales warning. we'll talk to the ceo kristin peck about the sales drop and if she expects parents to get frugal or not. g like it did yesterday. while it's more unpredictable, its possibilities are endless. from paying your people from anywhere to supporting your talent everywhere, we use data driven insights to design hr solutions and services to help businesses of all size work smarter today. so, they can have more success tomorrow. ♪ one thing leads to another ♪ >>> welcome back that pandemic pet boom boosting zoetis, shares up 49% since the march 2020 low they're also off the highs nearly a year ago to the day by about 29%. the company lowered sales guidance back in november citing supply chain issues, vet workforce challenges joining us is kristin peck, the ceo of zoetis along with our very own meg tirrell kick things off. >> reporter: thanks for being here with us let's start with what jpmo

for less than 5% of its global workforce and taking a $1.2 billion charge in the second quarter steve kovaching going on in big tech. we're hearing this and amazon with another layer of cuts really, it's far and wide right now. >> and the story here is, their customers arepulling back on spending, therefore they need to cut back on spending and we saw microsoft hire like gangbusters, and now they have to rain in the cost back as we see the economy starting to slowdown satna nadella says parts of the world are already in a recession and that is a global company with foreign exchange headwinds and so forth that we've, talking about this whole time. >> where are the cuts the deepest within microsoft where does that tell us about where microsoft sees the growth? >> there have been reports within the hollow gralands grou. artificial intelligence, top of mind, number one nadella says this is the next computing platform forget the metaverse and those buzz words we know reportedly they're going to invest that $10 billion in the chat gbt company that could be coming on top of that, gaming, cloud, als

that app store growth is slowing and they are looking to become more reliant on manufacturing steve kovachre seems to hit right at their achilles' heel >> and this report came out yesterday, they put out a press release every year saying look how big the app store is, but really it is the only insight we get from apple specifically how well the app store is performing and you can kind of -- the math is not perfect, a little fuzzy, but cnbc.com found basically it is kind of flat the spending there, and it also backs up what tim cook told me last earnings, he blamed a lot of weakness in the services to a fall in gaining spending and data a aai tracks it and th said that gaming apps were down. >> and i did see that twitch, user ship, is down as well from pandemic levels. which of course makes sense. so let's go back, recently we talked about being bearish on apple. and i said what about services spending an all the rest of it and his point was a lot of app store purchases are not subscription as a service, they are one time essentially so if you have a pullback this consumer intending, those

. >> steve kovach joins us with cnbc's money minute. >> ford is recalling 462,000 suvs to fix faulty rear view cameras that have been linked to at least 17 accidents. although no one has been injured. also "the wall street journal" the reporting bed, bath & beyond is struggling to avoid liquidation and says lenders have cut off credit after a default, increasing the risk the retailer may need to close all stores. and blue bird reports bed, bath & beyond's efforts to find a buyer stalled ahead of an expected bankruptcy filing. >>> a continuing worker shortage is prompting cvs and walmart to reduce pharmacy hours. cvs will cut or shift hours at roughly two-thirds of its stores and most walmart pharmacies will close at 7:00 p.m. instead of 9:00. back to you. >> thank you. >>> up next, calling for all classified materials. the message from the natnalio i'm managing my high blood pressure, but i'm still a target for chronic kidney disease. and my type 2 diabetes means i'm also a target. we are targets too. millions have chronic kidney disease and 90% don't know they have it. so ask for yo

guys >> thank you very much eamon, let's bring in deirdre bosa now as well as steve kovach still withs. eamon just mentioned the magic word, divestiture. what would the justice department seem google to divest >> the doj really has a problem with alphabet being on all sides of the trans action, the buying and selling as well as the auction process, so he mention also that $3 billion acquisition a few years ago for double click. that's an area where they could force the divestiture. it could look even bigger than that the key, too, going forward is that's unlikely. however, when you think about what google can or cannot do right now, it would be very, very difficult to make another acquisition in this space at a time when a lot of folks are calling for consolidation. perhaps the tender for the growth of the industry for google but they say it doesn't matter because they are the predominant player this is what google would note as well, that its dominance has been declining a little bit. you've got players like amazon that were able to build an advertising business and scale it out very

steve kovach and david katz, thanks forall your trades today. >>> still ahead, so much for lakefront property in arizona. the water crisis there creating real risks for real estate we'll tell you what it means for developers, investors, and the housing market >>> plus, the doenj filing its second anti-trust lawsuit over google in about two years. we'll speak to one monopoly expert about it and the taylor swift buzz on capitol hill today. >>> and here's a look at the dow heat map, 3m, walgreens, merck the biggest laggards "the exchange" is back after this is a giant pain! hi ladies! alex from u.s. bank! can she help? how about a comprehensive point of sale system... that can track inventory, manage schedules- and customize orders? that's what u.s. bank business essentials is for. (oven explosion) what about a new oven, can u.s. bank help us there? we can serve loans in as fast as 12 minutes. that would be a big help! huge! jumbo! ginormous! woo! -woo! finding ways to make your business boom. that's what u.s. bank is for. we'll get there together. >>> welcome back it may not look like

look like and how long does it take to accelerate >> that's not at all clear i was talking to steve kovache quarter. they're pretty good at seeing what's in front of them. it's seeing what's ahead in this environment that's really hard it was up more than 4% at one point after hours when those initial numbers for fiscal q2 came out with that guide, now it's down almost 4.5 so enterprise demand, bottom line, is weakening along with consumer demand. it's not so much the pc business, the windows business that's a surprise here everybody expected that to be bad. it's as you mentioned, azure, its office 365 subs looking weak it's microsoft warning that, yes, with all the lay-offs and things happening and the labor market slowing down, linkedin is likely to take it on the chin going forward. there's been a lot of focus on the fed, fed policy, what that means, interest rates, and not as much on the fundamentals of these businesses now investors will have to focus in a lot more on the fundamentals pc normal lizing the prepandemic levels people talking about the comps get easier in the second half.

. >>> welcome back to "squawk on the street" i'm steve kovach, stocks are mixed at this hour but seeinge territory with wynn up more than 10% in two days. elsewhere in travel, carnal, royal krcaribbean and norwegian are trading higher back to you, carl. >>> still to come on "techcheck," how to trade the megacaps plus why one analyst believes that jeff bezos could eoturn as amazon's c that begins at the top of the hour >>> welcome back to "squawk on the street." manhattan real estate sales plunging in the fourth quarter one of the biggest drops on record, robert frank has more on that. >> manhattan closed the year with a record $28 billion in sales, but the last quarter suggests a lot more pain ahead in 2023. apartment sales falling 29% in the fourth quarter, the biggest decline since the start of the pandemic in 2020 prices also falling for the first time in two years with the median price down 5.5% the average price for an manhattan apartment now just $1.9 million a bargain but prices are not falling enough to bring in buyers. brokers worry about what some are calling a deep freeze whe