emily: so, you believe apple will remain a customer? steve: i think so. if you have leadership technology in your roadmap will eventually dominate. i think there's no reason why that shouldn't be the case. emily: you're taking on the world's most valuable company. they've stopped putting your chips in their phone and they say the patents they are paying you for are invalid. how does something so bitter get resolved favorably for qualcomm? steve: well, i think bitter may be the wrong term. we've had disputes with licensees in the past as well over the price of ip. it's no different here. it's just bigger companies. they're obviously a very large company, but we're not a small company in terms of being able to execute strategy. those things will get resolved. i think they get resolved on the courtroom steps, sometimes they don't. we don't know which way it's going to go here, but the strategy is playing the way we thought. emily: that said, there are critics that say qualcomm is not articulating its side of the ip story enough and it could be dead in the wat

apple watches. >> this is super random. do you have an apple watch. >> no. >> you do now. >> i wanted to give you an apple watch. >> this lady is like wait a minute. >> i believe not going to give me an apple watch. >> i am. i have a bunch of them in my backpack. >> each person says the same thing. are you sure? >> just giving back today for the holidays. >> really? >> he walks up to complete stranger and blesses them with an apple watch. >> we owe him an apology. cheers, brother. >> thank you so much. >> if that's about making somebody's day better, this dude is in disbelieve. >> bring it in. >> it looks like they are also college students. finances aren't abundant. >> this happened on college campuses. >> i love this one. i don't have an apple watch. >> neither do i. >> you got to wonder about the people sitting close to that person. they are like wait a minute. >> this student says she can't take this from him. >> i can't accept it from you? >> why not? >> that's crazy. >> i love the moments he does go out and makes people's day better. >> if you want to see this one. head over to rightthisminute.com or use the mobil . >>> tonight, breaking news coming in r

. >> and down here can you believe apple is a few bucks below the last time we were on tv together gettingcrushed for all the reasons that josh ways just talking about. there are peak iphone concerns and of course the logic news and let's talk to our advisers about where it goes from here. mark, are the major trends broken the stockstill is a little bit above the late november lows in >> the major trends have not really been broke. as you mentioned, it has been down about 20% over the last three months we did have a pretty serious break. but we did see a pretty good level of stabilization in the last week and the stock actually has risen almost 8.5% off the lows so that was a real positive that helped momentum turn positive. today however is a negative. we are breaking this minor up trend. stock rose about 15 points since last week. this could lead to about two to three days of weakness my thinking is 170 is the key level near term. max down side to 160 but three reasons are important as to why you should be positive on apple first is that momentum on a short term basis is still positive s

apple. when you look at apple right now, it's simple if you're an owner of app apple, you're probably holding on to it because you believethe business long-term i believe in that investment strategy otherwise if you're sitting and don't have a position in apple, i mentioned at the top of the show you want a point of reference, 146.83 is the low. 157 is the high yesterday if you get above 157, you have no problem with you stepping in initiating a long position >> what if this will help them bring the costs down they can produce a lower-cost iphone for the indian market? >> you're pointing towards a fundamental story that i don't disagree with you. but in terms of making the philosophical difference whether to buy apple here or not, the fundamentals of this company we already know, there's nothing new that's come out fundamentally. >> all right rob, so let's talk about emerging markets, you're not picking the stock, you're picking basically all the world minus the developing markets what makes e.m. attractive >> we're down a lot year to date down 16% since we've upgraded what's gone quietly unnoticed is e.m. has outperform

apple wants you to believe that it is a services company.ns of progress in that direction. emily: there is lots to talk about when it comes to amazon as well. shira, this is a company that has touched $1 trillion. what happened? shira: part of the issue is that the rate of revenue growth at amazon is showing cracks. it is too early to know if it is really a trend or if what we're seeing is amazon shifting sales from the goods that itself sells, for the goods that the merchant partner sells. that may be reflected in this revenue. but you have amazon, a stock valued entirely on this preposterous rate of growth. and now there are questions about how sustainable that growth rate is. and you see that, as tom said, in that decline. emily: facebook has seen the most dramatic decline, shares down 35% since july. it is a new facebook story every day. criticisms of how to have rustled -- handled russian meddling, fake news, and more. is facebook going to get out of this? tom: people worry about questions of trust. can they control the spread of disinf

these apple products are worth every penny because you use them so much. so as an investor, i'm a long-term believerood buying point. as a trader, it could go down more but as an investor, if you're long apple, you're going to have a good ride. >> are you a fan of the argument morgan stanley is the latest one to make it, that for the next five year, 100% of profit growth is going to come from services and wearables, but not the phone itself >> i don't know what the mix will be, but i think the fastest growing seg mgt will be services that's true for a lot of technology companies that's becoming true for amazon through advertising. people are learning to monotize the customer relationship and not just the hardware. apple does it through great products like their cloud service. it lets your photos go from one to the other instantaneously they do it through things like a music service that's getting better and better. it's a great alternative to spotify. there's a lot of innovation there and they're generating great profits from that. i think that will be their fastest growing profit segment >> your in

we are not paying you what we don't believe necessarily adding to the value that dispute its ongoing and between the applee operating agreements with qualcomm on which they are not paying and qualcomm have suite th sued them around the world and ca qualcomm is getting sued in korea. >> the one in america is san diego. >> that's kind of a home team. i need to know steve mollenkopf, this is really going to be naked reporting here steve, you have my number, give me a call, all right > >> the ceo >> is that all right steve watches the show, steve mollenkopf, give me a call >> you want him to call on your phone? >>> we mentioned the fdx downgrade over bank of america fedex is below 200 for the first time in about a year and a half. it is shattering i was just shocked at this fedex is a company that' that's -- they run a conference call and each person speaks. only nike does the same thing. this person cunningham was a powerful person. it is hard for me to believe that fedex is handling christmas well if they just made this change now, ups is not handling the christmas season well. this is a little choppy. this

you interpreted and in germany they're saying they only have to stop sales in their stores and their partners can continue to sell what is your interpretation and why should investors believe this is real pressure on appleks, jon it's not a matter of interpretation all one has to do is read the orders in both of these venues and you can see very clearly in china that apple was asked -- ordered, excuse me -- to immediately cease selling, offering for sale and importing the models that were described, 6s through 10. and they should be doing that right now. if they're not, there's no interpretation, they're in violation of the order >> even what they're saying about just the 7 and the 8, you're saying 6s through 10? >> sorry, i said in china. >> right >> they said 7/8 for germany in china it's the 6s through 10. that was because those were the only models available. the new models weren't available when we brought the lawsuit. in germany they're saying the 7 and 8. the order describes the phones that were described in the court and those were the 7, the 8 and i think the 7s, 8, 8 plus as well plus the x. those are all covered. that order goes into effect soon as we post the bond. it's a ban on, again, the

profit seeking corporations that risk.illing to take you know, someone who clearly understood something about risk the co-founder of apple. i believe still the largest world today.e in an interview jobs was once asked how he thought about himself. said, "i look at myself as sort of a trapeze artist." the reporter asked, is that with or without a net? e didn't bat an eye lash, he said without, without. steve jobs was a risk taker. risk, apple ok a again became the most valuable company in the world whose have revolutionized our lives. what's important is not the money that steve jobs made, but what he was able to do is create a hat successful company to employ and collectively who have exercised their god given pursuit of e happiness. taking fewereneurs risks means fewer jobs, mr. speaker, it's that simple. we lose our ability to fail an america, we ability to e our success. there are simply too many regulations that crush the entrepreneurial spirit. this must cease. nother fear i have, mr. speaker, is that i fear we are rifting away from our constitutional morings, i of the the rise administrative state, our birth right of the cons

the combination of those make us believe apple will be the best performer of the faang stocks. taylor: you talk about being a service and more of a subscription model which will give you topline and bottom-line earnings growth. what does it do for margins? at an income statement, a lot of this will have to do with boosting margins. is that a segment that can help trickle down into better income statements? gene: the services segment has a much higher margin than the hardware. about twice as high. consider this a 70% gross margin business. they will be breaking that out for the first time, so we will get insight around that. our belief in this as the best performer is really stability on the overall margins. you will see declining hardware margins as they try to feather around with what the right pricing is. separately, some increase on the margins of the services. the nets will probably net stable margins in 2019. taylor: how does a company like apple move away and diversify the revenue away from iphones? thise talked about so far year is iphone and unit sales, and average price per phone.

microsoft would pass apple into years no one would believe that especially in the current technology climate where a lot of people think that apple has an endless runway of growth. if youook at the past two months, there have been so many concerns and so many issues with apple in terms of iphone sales, concerns about the prices of the .igh-end iphones concerns about long-term initiatives. if the company missed on andious big things like tv voice where it is not all too surprising. the question is will it turn around and when? emily: i have a chart showing the rise of apple as well as the fall in apple and the rise in microsoft. aside from what apple might be doing badly, what is microsoft doing well? has really turned the company around after taking over from steve ballmer i feeders ago. the company has transitioned from a software company to a software and services company where there are trying to get clear applications on as many systems as possible. if you bought an android device or a microsoft -- even, you can not fill it up with apple services. that is the difference between the two companies. microsoft works on every whereas or google does apple is glued to its

you had to believe. we've steen some of teen some os coming down. apple is trying to be more of a tech company and not necessarily all about the iphone >> and you mentioned that it is catering more to the consume are, but you sort of like that there is a defensive nature when it comes to microsoft. some of the biggest cap tech names taking it on the chin especially as they are not facing the flood of money out r but huge money concerns >> if you have created custom pla applications, it is difficult to move off that platform for consumers, who cares where you are getting your music from. so i think that is really the difference consumers are fickle and couple which -- businesses can't be >> all right thank you both >>> and next auto stocks are rallying ll you the trade angels. lels els. sels ls >>> kacasino stocks are hittingt today 7. time to take a gamble? these have been really beaten down stocks. now we have some relief. anything independent wibehind ts >> they don't fit a gamble that we're taking, but it looks like that they are due for relief these w

qualcomm-apple situation gone on for a long time, you look at what's happening with china, china 2025, incremental growth for apple. if you look at tariffs, you look at the situation, we continue to believeere's value in apple here where it's trading but no doubt, if the 90-day period comes and tariffs get up to that 25% and potentially iphones, that could be back breaker for apple. we continue to be buying the name just on valuation of iphones. maria: stocks at lowest earnings multiples in years because they've taken such a beating, what are they trading in now? >> look, $15 of earnings for am, something that's now trading -- 12 to 16 times, trading below historical range. you are starting to get down to levels where you are baking some significant bad news to am. look every day the sun comes up and bad news in apple. it's been massive string of bad news over the last six weeks but self-inflicted. you look at cook, once they took iphone and transparency decreased, that set off the storm here and you continue to see through suppliers. >> services going to 10 billion to 50 billion, you think it's a hardware company depending on sale of the iphones? >> it's a services-led hardware, 50 bill

i understand that a lot of the concerns about apple are the concerns that the market has about the trade and tariffses and if you believe that this will be resolved over the next few months, or at least a certain percent of it, which we do, then apple is a cheap stock, it's the same with amazon. we buy amazon two weeks ago, same thing, it came down, we bought it, it went down a little further and now it's up. >>. >> here's what i would say -- >> apt has gone through the life cycle of a typical consumer products company yet again we get more news that near not launching their 5g phone until 2020 at the earliest where samsung is launching next, next year, first half of 2019. continuing to be behind the 8-ball in technology and forgetting about that. the phones are too expensive in this cycle. >> what kind of phone do you have >> i can afford it >> with middle income, with middle income families in china making just a few thousand dollars a year, they're not spending $1,000 on a phone. >> you've sold city, you've sold apple. you've sold delta. buying it anything on the dip. at the top of the show i've added to visa i do se

apple is going to be faded. what can i tell you. there is so many price target cuts to come apple selling at 12 time earnings i still believe the surgeeam we are not going to dump like we did. >> right >> they don't think. >> one of the concerns of apple extended to iphones and what it means and whether tariffs would apply in the next round. >> and still by the way if this month is not proved to be successful >> stay of execution >> i think opportunity apple but there are analysts who are afraid of apple. it is really remarkable. afraid of twelve times earnings and happy at 16 times earnings and 5-g. worried that 5-g is not going to count. 5-g is customers the cowboys does not get there fast enough. >> qualcomm, steve mullincof >> we don't use them and they don't use us we are not going to -- >> how about micron here micron sky works, they had a relationship with china. >> t.i. is backup 100 said some things >> yes, autos, t.i. connected with autos general interpret net of thingsi felt it is still compelling and nobody is taking it away >> i have to rely -- >> active connection here. >> what i would tell you is that everything is up

you. jpmorgan, apple, dow dupont. fedex, you mentioned earlier. these are in bear market territory. if we do not have a recession as we believe, this represents great opportunity to stick your toe in and make an investment. liz: we never know if buying on flash dips will pay off. lately it might work. as we get ready and set to go here. how do you ride the wave? what is the best way to really do it? >> well, you can't worry about always coming in at the bottom. you take advantage of this opportunity. buy great blue chip companies that are paying a dividend, that have solid balance sheets and are growing the dividend. today you can get better than bond yields with many of these companies yielding 2 1/2, three, 3 1/2 growing their dividend. [closing bell rings] liz: good to see you so much, hank smith. we are off the highs but we're off the lows. we end in the green. that will do it for "the claman countdown." now "after the bell." melissa: dramatic final hour of trading. the dow ending the day in the green, amid government shutdown, fed uncertainty. the dow up about 84 points now as things settle out. way off session highs aft

>> there is a little bit of hype in that because if you look at how apple, amazon, and google have done so far this year, believe it or not, they're all positive. the nasdaq itself is positive for the year, better than the s&p 500 and the dow. and if you step back and look at the three-year performance record of some of those stocks, they are absolutely extraordinary. for example, apple is up 55%, microsoft, 3 years, 100%. >> you've got to step back and look at the big picture. before you let you go, just quickly, the federal reserve, expected to raise interest rates later this month. are we still on track for that? >> great question. last week, bloomberg did a survey of economists and 100% said they were going to raise rates. >> might not be that many now? wavering a mcbride, thanks for coming in. >>> coming up here, we are going to take an in-depth look at your personal help. we'll tell you about the new tool helping doctors to prevent serious illness. >>> tonight, all new episodes of "gifted" at 8:00 followed by "lethal weapon" at 9:00. then of course, we hope you stick around for the 10:00 and 11:00 news rig

believe? >> it is a glamour stock. you just need to convince people they should be in there with you. it does not matter whether the company is making money. amazon earlier this month was rivaling with applea $1 trillion company on the new york stock exchange. is it overvalued? >> there is a big debate on its valuation. there is a big debate on faang stocks. is if youteresting compare the evaluation of amazon with walmart, walmart's valuation is lower and yet its sales are much bigger. amazon -- walmart is making about $500 billion in sales. >> what is the lesson from the? if it iseople wonder not too valued, if the evaluation is not too high. i believe it is creating a new way of operating in business with warehouse automation and obsession with customers, so maybe the evaluation makes sense after all. >> does it make sense? >> am a bit surprised by the figures you mentioned because amazon and the rest of the big companies are actually making a lot of profit. there is rising evidence of market power concentration. while the influence of those big companies is rising tremendously , it might backlash against them. when you talk about other valuations, that is the first backlash. they have

again, if you don't believe there is a recession, the 20% pullback in jp morgan is a wonderful opportunity at a try attractive valuation of under times earnings. >> and we finish up with apple. the stock has been hit quite and it's in bear market territory. but you think it's also kind of a best in class st,k. >> yeah absolutely. it's one of the greatest brands ever created. and look, apple's stock price has a history of these kinds of significant corrections with o, be markets as you corrected pointed out both in 12 and 13 and then again in 15, '16. so it's had a major run up, big pullback, probably overdone. but for new money coming in you're buying one of the great brands at abe w-market multiple. and again a company with prodigious amounts of cash to buyback stk and increase dichds. >> on that note, thanks. hank smith with haverford investments. >>> a denn paysk. you b that's where with he begin the mechanic focus. pfizer hiked about 6% pruchg a $10 billion-dollar share buyback program in adiagnosis to the $5 billion remaining under the company's current pla the stock, though fell more than 1.5% t 480. in new core is forecasting 2018 profit above analyst estimates. the

believe almost a third of the s&p combined. the severe a profit generating machine as apple and the first trillion dollar mark capitalization company. >> host: were you prized apple was first over amazon? >> guest: yeah, i was. i've been loud and often saying that amazon would be the first. if you'll be wrong, be wrong on national tv three times a week for several years. where i was preaching that amazon would be the first trillion dollar company sort of got it rate. maybe an honorable mission. i it's just preached 900 billion. i should have said that am son would be the first two trillion dollar company. regardless, the wealth accretion and the shareholder appreciation has just been extraordinary. >> host: you write that amazon, the most reputable company issue whatever that means? >> well, the most trusts of right now because its hasn't been weaponized. they're not in the business as much as the others of data, that it actually fulfill as product, their execution is outstanding, dawn great job managing their brand. amazon right now, according to abelieve -- the most tested brand in the world. >> host: and what do you mean by weaponized. >> guest: w

apple. >> you expect we'll see more of these? >> it is ultimately paving the way for a settlement between the two companies. >> and you believe we going to see more because the chinese government favors qualcomm >> the way i look at it is, you know, we have got this trade war that's escalating. we have tagged zte we this is their way to retailuate by going after america's largest company. between the two china needs qualcomm for 5g. putting an injunction benefits a lot of home grown companies i think there's a big political element here sq sq >> do you agree? >> i do. i would put it this way. i think that the truth lies several layers below the headlines. it is good to get at the substance of what's going on we talked about some of that substances are still selling phones today separately is that when you think about the opportunity and enforcement tribunal that process takes years. a lot of it will be gone by the time it sorts itself out i believe there are bigger things going on around trade i do not believe it will impact the sale in china. it has ban daily thing waiting for the stock to find its footing when the news is not

you believe it these are pretty cheap >> not bad >> thanks. >> i don't know. mike would probably give you a b minus. >> let's see >> look at shares of apple today. out with a pretty bearish call >> he was sites lowing demand. apple analysts and ranger firms have been cutting their targets on the iphone maker for morgan stanley. apple stock finishing in the red today and for the year bulls will try to counter that yes that could be weaker than expected because these new iphones carry higher price tags they think it could generate reasonable refr flew growth. they would point out the revenue return here. it lead a chinese court to issue a ban on older iphone models in that country so an important market here. morgan stanley saying it initially appears limited in scope but leads to greater headline risk. back to you guys >> thank you very much for that. >>> you highlighted the energy sector weak economic data sending that entire group into bare market territory. find out what other risks are on the horizon. one of the most popular products we'll break down the move next [leaf blower] you should be mad at leaf blowers. [beep] you should be mad your

believe that china and the u.s. might be on the exact same page on this. emily: last of breakdown. lots to break down. thank you both. apple continue. the latest tos tumble after cutting forecast over worries of iphone demand. it makes audio parts for the loss. recovering some what apple is try to do to sell , mark, yous discovered some pretty aggressive moves that apple is taking, ranging from discounts in a way to reshuffling its marketing staff. how much is the iphone this year discounted? >> to be clear, they are not actually cutting prices per se. they are advertising a lower price, which makes it so interesting. they are advertising the iphone xr $300 less than it actually costs. this is the tactic you would see from samsung or huawei or some of the carriers like at&t. this is a new type of effort apple. this is not something we have seen from them, basically disguising the price are saying that the crisis of the net it is not. in reality, this is a trade in deal that they are boosting. this is a new, aggressive tactic. it was unbelievable to me, following apple for so long, going to their homepage sunday night and s

apple that? john: not at all. my dad taught me you always take pride in your peers' success. and it's so important the does well. benevolent's awfully john: no, it is practical. i believeon't win by a team., you win as why should you object to someone house being successful? also i'm getting another chance next cisco with these start-ups. i always enjoyed it when my peers were successful. not by competitors but my peers. beneath these companies. -- emily: the ground is shifting beneath these companies. what is your take on the controversy about how facebook was slow to act when it comes to election meddling and fake news, and how management was asleep at the wheel? john: one of the things for your audience watching this, and you have asked me a really tough question, so i will first avoid it and tweak it a little bit. i'm a big fan of cheryl sandberg and leaning in and gender diversity. i was the first ceo to ask her to speak to my leadership team of 3,000 people and required everybody to read the book. emily: i remember that. john: i said you are too tough on the women. lean in,n, we have to we're not doing our job. emily: do you think she is too tough on women? john:

i believe you might under my system have somewhat more competition for orthopedic surgeons, more competition for folks are working at appleand amazon and alphabet, but i am more comfortable with that that was intensifying competition people who are trying to climb the bottom rungs of the chops letter. that's an issue. it's funny to see hillary clinton in 2016 expressed lots of concern about h-1b visas and about skilled immigration at the same time she was celebrating low-skilled immigration. i think that is a legitimate concern but ultimately when you look at those high skilled sectors i would do think having a larger talent cluster is something that will be beneficial for all american workers, including those middle-class nativeborn workers who might be of service providers. >> host: i'm going to give you know the final word because were at that point and a do want to go back to the children of immigrants because that such a driver for you. what would you like, you know, what do you want the reader to take away as your ultimate >> guest: my book is called "melting pot or civil war?" and understand that sounds like an omi

ahead most analysts believe the pressure will be onto stimulate growth further as domestic demand continues to weaken, and the clock ticks down on the tariff truce >> thank you. >>> applewn as it continues a legal fight with qualcomm over the sale of iphones in that country. meantime, another analyst joining his peers, slashing iphone estimates shares of apple down 2% today. joining us, managing director will piesak. and tom forte. good to see you both it is like the sun coming up, having them trim the target or iphone unit forecast for '19 20% in q 1 is that too severe >> it is too early to say. the focus is on the xr as far as sales. look, we're four years after the iphone 6 launch. upgrade rates are an all time low. talking about what's happening in 2019. there's some evidence in developed markets that some upgrade rates are bottoming out, meaning the replacement cycle has lengthened china, separate issue. 15 to 20% of sales, other dynamics there in terms of some court cases, economy, and things like that. that can have an impact. 20% is an aggressive cut, massive sequential decline that we haven't seen in past years. >> there's a lot of headline risk circling apple

apple, are you buying it? >> it's about the services the install base we believe ultimately 10 million units came out of china,n't come in. i think that's going to be factored into street numbers we buy that continued here i think the bad news is baked in as we've seen with the street numbers. >> dan, thank you. >> to the bond market now. we mentioned a moment ago stocks were near session lows how is it looking with the treasuries >> looking at treasuries you'd have a hard time divining we're at close to lows in the days at equities chart the five year, it's up four basis points on the week. you can see that's the odd man out. the catalyst for minor investigation. it's coming back in line to some extent one week of the dollar index, it's up close to a half a cent the best close since the third week in june, at its high. h2ig, since november, starting to get its sea legs back if we look at a four-year chart on the securities side of the high yield market it will put it in perspective spread may have widened you but still nowhere near some of their sweaty levels. and when you look at the treasury, the volatiliti

>> i think apple can't be underplayed as far as how important it is, because here is a safe play, if you will, scott, i believe, at this level, the same that jim just described, 158ish i bought and do i wish when josh and i were talking and we bought it at 16 had that i would have bought a lot more, no. i'm happy i've been scaling into it, so i think at the level it got down to, a little over a week ago, that that was stupid, and i don't know if people will get another shot at some 150 to your point, jim, but i bought more, and i think this is a stock that is going to continue to work, no matter what these, because we're not going to get the breakout in the numbers, of course, when we get the next earnings report. that's what the temper tantrum was about. >> do you think this will continue to work, the stock is >> i think it will start working again, everybody's had ra quarte to pull their hair out and get angry about apple decision not to give us a break-out of their numbers. >> this has to be more than just about a tantrum over the disclosure issue >> that was a big tantrum about that >> i understand but it

apple end up throttling data speeds. as a result of this to get around the patents. that will win for the consumer. you have to believequalcomm will try everything they can do to protect those patents that they have as you say racked up. way, that they are now starting to use to innovate and disrupt multiple markets and start participating to a larger degree in other markets. of which are other connected devices all the way up to these always connected pcs. in newm is innovating areas and using this technology to drive new areas of growth to the company. reallye going to work hard because as you say, this comes down to the viability of the company. emily: i want to ask you about huawei, another company that has been racking up patents related to five gp or we have been covering the arrest of the cfo. we have been covering the security concerns around huawei not just in the u.s. but also in europe where huawei is running into some walls. how do you think huawei's fate plays out? crawford: this is a really, really tough one for huawei. standpoint, they have done an amazing job in markets around the world. they are now o

2019 i find it tough to believe that same group we're all watching can negotiate a new regulation that will have any teeth in 2019 >> i'm sure you saw this, a wish list for appleext year accelerated buyback, more transparency and a studio or something. >> yeah, so that's interesting on the acquisition front, carl apple doesn't do big acquisitions $3 billion for beats was its biggest. i think apple thinks if they want new technology they have smart engineers and can build it i do think there's an interesting narrative that takes shape in 2019 when it comes to apple. the bull/bear debate, obviously the bears are out in force that stock is down about 17% this month do we get even more new metrics. you mentioned services, carl we'll get some new insight there. it speaks to a lot like customer loyalty and wearables. the watch and airpods. any metrics next year will be interesting. >> good stuff, thank you a nice upside reversal the dow is up 300. >>> the dow up 330 after being down as much as 79 points. amazon up 4% a pretty nice test there around 2350 or so >> it seemed people were bracing to see if there was another one of these selling waves that came into the m

you know the saying, an apple a day keeps the doctor away? what if i tell you red wine does the same thing? steve: i believe you. and dad: maria ramirez!!! to help more employees achieve their dreams. unstopand it's strengthenedting place, the by xfi pods,gateway. which plug in to extend the wifi even farther, past anything that stands in its way. ...well almost anything. leave no room behind with xfi pods. simple. easy. awesome. click or visit a retail store today. ♪ brian: quick headlines now. fentanyl is officially the deadliest drug in america that according to a new cdc report. overdoses increased by an average of 113% each year between 2013 and 2016. fentanyl made up nearly 29% of all overdose deaths. a device that could help reverse overdoses will soon be less expensive. a company make as take home opioid reversal kit is coming out with a generic version next year. it will cost from $4,000 to $178. after a congressional report exploited the opioid crisis. i think "60 minutes" helped with that. ainsley: saves lives. steve: ceo of google, that man right there, faces questions on the company's alleged bias a

apple bundt cake. it's all coming up rightteere on "america' kitchen." "america's test kitchen" is brought to you by the following. -i've always been a big believer

bottom in apple relative to some iphone sales even though it has been weaker than expected, part of that came with cook and the iphone metrics. >> i wanted to talk about some new names. if you believearkets are oversold, if you do you want to buy things low some people wait until after christmas to buy that flat panel. they know it will be cheaper let's talk about z scaler and qualis why do you like these? >> cybersecurity in our opinion is an area where you will see more spending, especially on moves to the cloud z scaler on cybersecurity is probably one of the best names out there. that's an m&a candidate too. we're seeing more and more trends moving to the cloud 30% going to 55% and another pure play cloud s cybersecurity name is qualys >> is that a similar story on checkpoint >> checkpoint is steady eddie. >> the name has been around. the stock has been around forever. i remember when they ipo'd, and i had a lot more hair. >> it's been around forever, but you want some high-flying names like these, and checkpoint is the barbell approach >> how come nobody talks about oracle anymore >> when you look at the cloud they missed that cloud move in terms of the shift microsoft had the

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for instance, you were able to get him to exempt sort of tariffs on technology that apple uses, like bluetooth, when it comes to china and all the ref of it. >> well, i do believe corporate portion of the tax cut that came out in january is great for the u.s. economy because i think you're already seeing people invest more in the u.s. i think it is creating jobs. and i think it does have a long tail to it. it's not a short kind of sugar high. and so i applaud them for doing that. and i think that people will see more and more returns from that. in terms of, how do i deal with it? i believe in engagement. i believe in engagement. i believe engaging with everyone, whether i agree or disagree. i think you should engage even more when you don't. i think that's one of the issues with our society today is people tend to go in their silo and they only talk to people that agree with them. and i never see that. so, i engage on everything. i engage because there's some policy things that are being discussed that are incredibly important to apple. like, daca is an example of this and immigration more broadly. i think, you know, fundamentally -- and human-rights issues. we

you, guys. >>> coming up, netflix toumbles apple loses all of its gains we're talking the tech tumble next i still can't believencredible the screen is on the new iphone xs. and our unlimited plan really takes things to the next level with your choice of the best in tv, movies, or music. it's the perfect holiday upgrade. i know what i'm asking santa for this year. you still write letters to santa? no. please. i send him emails. can i get his email address? oh... i don't feel comfortable sharing it. get the iphone 10 s and our unlimited plan with your choice of the best in tv, movies, or music. more for your thing. that's our thing. >>> and welcome back to "power lunch. we are getting back to session lows here across the major averages the dow industrial down by 588 points we had been down closer to 600 so not quite there but almost. s&p 500 down by 63 and the nasdaq is down by 204 points or almost 3%. 2.9% is a loss there we should note that apple gave up 170 as a key level there today. morgan stanley is bullish just the latest of the analyst to throw in the towel citing chinese iphone demand weakness we are se

apple chief evangelicalist, guy kawasaki good morning to you. eric, you're sitting right across from us here. you hear the news, you read the headlines, you read the reaction from facebook. who do you believem not sure. the verdict is out that facebook is not to be trusted with your data the counter parties who said they had access -- some of them were surprised that they had access, saying that they really never used it, at first you have to believe them until it's proven that they actually used the data for something else. >> but is the issue they didn't use it or they gave them access to, meaning they could have used it and god bless them for not using it if they didn't. >> sure, they gave them access to it thinking the data would be used in ways that would then come back to facebook and benefit facebook, i'm assuming again, facebook has proven time and time again, particularly this year, that they just cannot be trusted with your data. they'll sell it, they'll lend it to people, people will do things with it. you don't know what it is. >> guy, if eric is right, if facebook can't be trusted with your data, what's the repercussion on the business >> the bigger picture is you should assum

apple below 160 or 159. alphabet rarely about $1000 a share and microsoft was about to drop below $100. >> this is when traders cut their teeth. you believeh would continue and we now see a rare moment when these stocks, pretty well valued stocks around garage sale prices. apple is so cheap it trades like a consumer discretionary. stuart: it does. look at the financials. right now the big names, morgan stanley, goldman, citigroup all down. wells fargo of 30 cents, up 45. >> they were supposed to be the sector take us up to the next level. stuart: didn't work out that way. ashley: boeing down 2%. that weighs heavily. that is china trade play. stuart: they're all still lower. whether they move further down after our interview, that i do not know. but boeing is down 2%. caterpillar is down a fraction. 3m is down. united technologies down 2%. liz: i was being facetious before. stuart: we're still below 23,000. liz: the argument is, apple trades like a consumer staple stock that you need. consumer discretionary it is even cheaper at that level. very nuanced there. stuart: look at this. nasdaq composite home of technology stocks. it is down 1 i

apple is up. alphabet down. microsoft down. there you have it. best buy, i believet the loy of its calendar year. b-of-a says, downgraded, they're saying sell it on slowing tv and iphone sales. didn't know that. but best buy is down on that downgrade. a senate report finds russia used social networks to promote then candidate donald trump in the 2016 election. come in harvard law fellow, vivek wadhwa. you respond to this report from the senate. sounds like pretty daming stuff. >> stuart, whether governments do it is not called fake news, it is called propaganda. this is what they do. not only the russians that are doing it. it is also the iranians and also the north koreans and most of all the chinese this is what governments do against governments. the question we need to be asking, why is the tech industry doing all this surveillance and profiling and then, why are they making it available to anyone and everyone at practically no price? in other words giving this away, this information away for nothing. you can steal it from them at will. if you want to do adverti

no we don'tment to upset trade negotiation he held up his apple iphone and said you see we need to keep buying american products so -- i believehat president xi jinping xi seen this as strategic deception to undermine trade talks by certain hardliners in the united states and he's derled not to fall into that trap and he's going to overcompensate by pushing full speed ahead with with trade negotiations it makes agreement more likely rather than less likely as unlikely as that had sounds. >> and there are intense talks going on as we speak and will go on for next two and a half three months this is happening behind the scenes. >> yeah. we've got -- we've got a full court press on both sides to try to reach some agreement on trade. i think it's -- it's a closest we've been to really bringing in china to the current world order that we've ever been in last 25 years. i think china knows that it is do or die better come to terms with us come to terms with rule of law as far as other arrests we've arrested people for espionage on behalf of the chinese government we're going to try arrest hackerses based in beijing for trying to pene

believe we're about to eat eric ripert's food. >> hello. and some lime. absolutely. and you have the qualities of the snapper. i made a fried rice with mangos, applesr her first album. first, this is "today" on nbc. rush to work, grab a drink, hurry home. - [cell phone beeps] - stop! don't be on your phone. let someone else take the wheel. make a little eye contact. make a plan. it's a busy world out there. we're all in it together. go safely, california. ♪ little girl and boy land ♪ while you dwell within it ♪ you are ever happy there daddy, it's christmas! ♪ childhoods, joyland never let go of your dreams. the mercedes-benz winter event is back. lease the glc 300 for $459 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. you hurry to work, so you can take it slow. - [cell phone beeps] - stop! let's stop looking at pedestrians as a nuisance, and carless objects, and start looking out for each other again. it's a busy world out there. we're all in it together. go safely, california. >>> 8:50, now. willie, you get really good interviews on your show. but you had one i love. you sat down with jennifer lopez. >> jennifer

you must be feeling pretty good >> i am. in fact, even though the tech stocks all the way down, facebook, and apple, et cetera, they're all down, i believeur super star, sort of like tarik hill for the chiefs, i think the microprocessors, the implementation of ai are going to be 50% per year up side so it may be tough for the overall market i think we're in a great position >> goldman sachs has been a tough pick theoretically when you picked it, it seemed like things should be good for the banks in 2018. the fundamentals didn't change the banks didn't respond if you had your druthers, would it cut it loose or do you believe in goldman >> i believe in goldman. i think you're going to see some up side over the next month because liquidity is still there. the interest rates are up. and when we have a downturn in the market, you turn to the gold standard which is goldman sachs. >> when you're looking for 2019, who is your patrick ma holmes? >> well, i'm absolutely amd. i still feel positive about them and then amazon still no market cap that you can define. again, part of the tech downturn i think you see a 40% upturn in amazon over the next

i believe that warren buffett loves this environment i bet he is buying banks with both hands he's buying apple with both hands and that's what a value investor does. >> dick, youyou probably have spoken with him. do you know he's doing something like that given he's such a piece of wells fargo >> no and if i didn't know i wouldn't tell you. >> we can connect the dots i guess if all the issues we've listed that seem to be weighing on the sector were the only ones that were affecting things, when the banks are so weak for so long, the obvious question is what is the market trying to hong kong or sniff out about disorderly situation in the global financial system. do you think there's a risk of that whether it's in europe or something else that we're not seeing >> it's this legitimate concern and it's going on in the market today. look, the whole market is down a lot from where it was but it particularly hurts banks if, indeed, you have great reduction in economic growth if there is a trade war. all of these areas affect banks because we're basically in the world and domestic economy there's kind of a herd instinct in wall street and once everyone decides or thin

iphones you see supplier cut and with apple going higher so well the semi especially in china, that is much rather own software >> let's talk about microsoft, it is a name that i own. i believeld's largest in terms of market cap since it is the leader does that provide for you in terms of technology exposure and the most diverse >> you see what's happening on 365 and the hazard that's a name where the number continue to go higher on cloud growth only 30% of workloads today are in the cloud hybrid it is a two-horse race it is aws and microsoft. microsoft is a cloud player, google and gcp, kind of the third player microsoft that continues to be your core large cap cloud play going into microsoft as dell and continuing to keep the cloud tragedy higher >> do you think apple is spending more money on its buy backs. they lost $9 billion on this a if you are an investor and you heard about a deal where they lost $9 billion at the first nine months, you will not be happy about it you are sitting on a lot of cash and generate a lot of cash and all you can do is buy back your stock. >> it is a major issue that we hear from investors. more so in a market that has really put the discoun

apples within i.c.e. that have, we believe, not been appropriate. and we will have oversight on those types of issues. i think that is one change youl see happen under democrats. is the oversight that we haven't been seeing for the last two years under republican control. it really is not a democratic or republican issue. congress has a duty to provide oversight and making sure that agencies are carrying out their responsibilities. what we don't see happening and what we feel has been happening is this empowerment of lawlessness. empowerment of not focusing on families. it's been a focus on families which is a real departure under what we had under the prior administration. host: the focus employers needed? guest: there is certainly always a focus on employers and there should be are holding people accountability and responsible. the question is, are there targets being done, being led by politics? are they driving -- are they doing what they are supposed to be doing? host: what leads to you that conclusion? guest: we have been reading a lot of all of a sudden there is this increase in investigations. some people have reported that