hewlett-packard is having troubled times roithd now. pc sales fell in double digits during the holiday season. >> huge cuts we are talking about. do they think this is going to solve hp's problems? >> they are looking to take the money saved in layoffs to put the finances in order. they need a recipe for growth. the big problem with hewlett-packard is that it kind of missed the boat here on tablets and smart phones. it didn't catch on. it is really a company that is trying to stay relevant right now. another company, dell computer seems to be in the same boat. shares are plunging 17%. shares of hewlett-packard are down about 5%. >> we are seeing a selloff here in the markets. >> we are seeing in u.s. markets with the dow down 137 points. european and asian markets tumbled. european leaders are meeting to try to figure out how to create growth in european economies. reports coming out from the former prime minister of greece saying greece is at a real risk of leaving the eurozone. you are seeing fears really play out in the markets right

. >> reporter: a rough day ahead for palo alto bay's hewlett-packard. good morning. i'm marla tellez. what could be in store for thousands of employees coming up. >>> wednesday morning as you are trying to get that wardrobe red write to go, dress for the two parts today. rain on the way. less than 72 hours. your full forecast in moments. >> all lanes just reported clear for from the bay bridge. i got other spots where you are tapping the brakes. we will show you where the red shows up. >> i know where it always looks nice. fine arts in san francisco's marina. it is wednesday, may 23. this is "today in the bay." >>> good morning to you. thanks so much for joining us. i'm laura garcia-cannon. >> good morning. i'm jon kelley. we will get things going with decision 2012. that's right. right now the bay area getting set for another presidential fund-raising visit. mr. obama arrive thing afternoon for a list of south bay and pen lanes stops. christie smith, live in redwood city. signs posted in downtown, warning of heavy traffic and limited parking. christie, no doubt a we

earlier, erika reported on hewlett-packard's latest quarter. dell shareholders suffered a big loss after that company's disappointing quarter and outlook. the company lost almost a fifth of its value, down 17%. volume jumped even fold. this is a year and a half low for dell. in the patent fight between google and oracle, a federal jury ruled google did not infringe orcale's java software patents. oracle claimed google's android mobile phone platform used its software without permission. earlier, the jury found oracle had proven copyright infringement but could not agree if google could fairly use the software. the jury foreman said the final vote that google could fairly use the material 9-3 for google. both google and oracle shares were higher today. the next phase of the case will determine what, if any, money google owes oracle. a tech stock to watch tomorrow will be data storage firm net- app. after closing just below $33 tonight, the stock fell to $25 and a change in after hours action. the c.e.o. warned about a slowdown in europe and issu

. >> whitman knows that hewlett-packard is selling yesterday's goods. they're not in the tab blet business or social networking business. they're not where excitement is and this is ironic the day it is breaking the day before facebook is going public while hewlett-packard is laying off 25,000 employees. and this is where we'll be talking about where the cuts are reportedly coming and which divisions and where experts think hewlett-packard should be investing for the future. >> there is developing news in the trayvon martin case, there are photo that's could support the suspect, george zimmerman's self-defense claims. one taken inside of the car shows his nose was swollen. a statement from an officer on the scene that night says zimmerman's nose appeared to be broken. but another document says it avoidable if zimmerman stayed in his car as districted by dispatchers. martin dived a single gunshot wound to the chest. information from the report released today shows evidence of marijuana in martin's blood and urine. world news will have more on this develo

we're undertaking a huge change for hewlett-packard. you try to go in the organization and decide what we're going to invest in, emphasize, how many people we need to do that. how we need the processes to be more effective and efficient. and you come up with a bottoms up number. we didn't start with a number. we said how can we do this efficiently and effectively? and how much change can they accept over a period of time. right now i feel we've got that balance about right. you never quite know. we're pushing hard. we've got to make these investments. technology is changing rapidly. at the same time we've got an enormous organization. so you have to pace in sequence. i feel good about that pace in sequencing right now. that doesn't yield to analysis. that is almost a gut decision of have you pushed hard enough but not so hard it starts to be dysfunctional. >> apple, elephant in the room. apple taking share with ipad. we know that from michael dell's call. apple taking share with mobile. mark hurd explained to me the idea of palm. you're

but can a hewlett-packard say -- >> the cool thing about facebook. and i thingist argue about mark, facebook is the product and he understands that probably better than anybody else. and hewlett-packard, there are so many skeletons in the closet, as the friends in the media are great at digs up. but there is a weight, you can slim down some and be more focused, doing massive layoffs. >> that generally doesn't help. but steve jobs and the pirate flag, do you take a piece and duplicate that? >> i think you can follow -- it's interesting you mention apple. are things you see in apple and not just to worship apple, other things in scale, they do everything they can to make things as simple as possible. apple, they have a relatively small number of people ho are responsible for decisions. and everyone talks about how bad hire he is. and facebook, if you are in a situation and hewlett-packard has this problem where you have a bunch of medium powered units and everybody has nufr power to create a product and not enough to kill somebody else's. and look and

on the economy, hewlett-packard make something, it has a factory. apple make something. but these other things are ideas and they don't necessarily translate into the long term jobs and buildings of the older economy >> how to structure in that possibility for budget purposes because we need some stability on predictability for revenue purposes in order to score in it and you cannot exactly do that when today it is $30 per share and tomorrow as indicated earlier it might be 17 >> what does this say about where we are headed? the transition from computer factories to idea factory >> another thing about the asset value is when you build factories and major infrastructure you know it is there for awhile. look at all the facebook millionaires that will be minted. employees who within three or six months will be free to start shelling their shares and take enormous gains and ask what is next? a big brain drain which could be an out-of-state brain drain. if a big opportunity is out of california they will take their money and leave. >> you notice with the

plus shares of hewlett-packard getting a boost. posting better than expected results, but announcing plans to lay off about 8% of its workforce. that's like 27,000 people. it's thursday, may 24th, 2012. "squawk box" begins right now. >>> good morning p about welcome to "squawk box" let's get you up to speed on this thursday morning. we'll start out with europe. index coming in lower than expected in hey. that news knocking stocks and euro lower this morning. take a look at the major equity indexes. you can see that the ftse is up slightly. also talking about in france being up 1%. euro trading at 1.2567. in the meantime, eurozone private sector shrinking further. new orders falling forcing companies to run down backlogs and cut jobs. and even bigger worry is that today's pmi suggests the downturn is taking root in the poor countries of germany and france. they had been keeping the troubled euro block afloat. we'll have more from kelly evans in london in a minute. meantime in asia, china's factory falling in may. analysts say that t

why hewlett-packard is cutting 27,000 jobs. excitement builds in the philippines for the final of "american idol". let's take a look at the stories making headlines around the world. describing the meeting at the eu summit in brussels as confrontational. it says the leaders disagree on how to lift the eurozone out of turmoil. francois hollande -- hagel merkel stresses austerity. cast for chinas is the lowest in the decade due to sluggish demand in europe and the u.s.. more bad news for facebook. concerns about the way advisers disclosed information to investors. regulators say they may review the process to see if some investors had favorable access. "the moscow times" shows off the winner of the next song contest. 11 women have made it to saturday's final. you're watching "mews de." -- "newsday." leaders want greece to stay in the eurozone. a doctor who helped americans find osama bin laden has been jailed for treason. arab and western donor countries have promised more than $4 billion in aid for yemen. at a meeting in saudi a

bay area tech giant hewlett-packard sending out pink slips today. tens of thousands are expected to lose their jobs as the company seeks to remain competitive. marla tellez live in palo alto with more of the restruck touring plans. good morning. >> reporter: good morning. i just hung up the phone with the company's spokesperson and he tells me here the goal is to create savings so hp can invest in the future. now word is that ceo meg whitman is going to announce 25,000 to 30,000 layoffs. that would represent 7% to 10% of the company's work force. hp does employ close to 350,000 people worldwide. the hp representative i spoke to would not confirm these cuts but says that they would be broad based across the company and throughout the world. whitman, of course, is cast with reorganizing the tech giant. they don't rely as heavily as the pc as it once did. pc sales fell 15% during the holiday season. that was rye after whitman was named ceo in except. here's some perspective from a tech analyst. >> the rule of thumb when a ceo comes in, you are going to

one-third of all of hewlett-packard's business comes from europe. guys, back to you. >> scott, thank you. concern over europe and the economy is also pushing oil prices lower. speculators betting an uncertain economy will cause less energy consumption. the price of a barrel of oil at a seven-month low down to 90. other commodities including gold plummeting. the dow has been down triple digits almost since the open. these are live pictures right now from the new york stock exchange showing the dow now down by about 126 right there. facebook is currently trading at $31. >> heading in the wrong direction. but always good news right now this time of year with the weather. christina loren here to tell us looks like a great day and a beautiful weekend. >> beautiful holiday weekend. >> yes. >> three-day weekend for many of us. good morning to you. a good-looking day shaping up starting with temperatures. take a look at some of these comfortable readings now. 73 in sunnyvale, 69 in livermore. comfortable 63, even in san francisco. the winds will pick up as

we now have those hewlett-packard earnings. will we hear about big layoffs, as has been discussed in the last week or so? that report will be coming out, and you'll also hear from the former chairman of the council of economic advisers, ed lazear, with his take on what fiscal policy could do. all that coming up now with maria. i'll see you tomorrow. >>> it is 4:00 on wall street. do you know where your money is? hi, everybody. i'm maria bartiromo. a dramatic reversal of fortune on wall street today. dow jones industrial average reversing a nearly 200-point sell-off, now sell to close modestly lower, almost positive. the nasdaq should end in positive territory with the nasdaq as well reversing earlier losses to gain in the double digits. how do you want to be invested amid all this uncertainty? two top money managers. facebook finally feeling the love of investors. the stock is set to close 300 higher tonight after losing nearly 20% falling sharply. as i mentioned, the down -- my headlines coming out of europe, comforting invest

but some big red flags around hewlett-packard. profit down 31% for the period. and they are being forced to make these cuts. and i guess one word, the ipad. i throw that out to you because for companies like dell and hewlett-packard, it is quite frankly changed the game in terms of pc manufacturing. back to you, jonathan. >> geoff, thank you. >>> overseas, voting continues in egypt today as that country holds its first free elections for president. nbc's chief foreign correspondent richard engel is in cairo to cover the historic event. >> reporter: egyptians by the millions turned out to make history. >> to feel the freedom and to feel that we are human for the first time. >> reporter: mostly it was peaceful as voters lined up in cairo to choose from among five leading candidates. a socialist, two islamists with ties to the long banned muslim brotherhood and two with ties to former president mubarak. it wasn't always certain this day would come. last year, in tahrir square, millions demanded democracy. it's a choice between continuity and a new direction under i

have i given up on hewlett packard? i don't give up on anything. doesn't mean i want to recommend it. it makes me feel better about apple. steve in connecticut. steve! >> caller: hi, jim. first time caller. long-time listener. lad, lithium motors, it beat earnings estimates the last seven quarters in a row and just instituted a 1.6% dividend. >> you know what i got do with this? i got to compare it to auto nation and carmax. i'm going to do a threesome -- a three-move claymation death match. if yours prevails, you'll know by watching "mad money." let's go to donald in new jersey. donald. >> caller: booyah dr. cramer! i'd like your insight on insight. incy. >> it's a great speculative situation. i'll bless it as a spec. let's go to tony in new york! >> caller: big booyah to you. >> done your way. what's on your mind? >> caller: symbol is twi. >> remember, twi -- wow, okay. we had the management on and the management was -- let's say they were optimistic and i will share their optimism. they were toughly optimistic, like in your face optimistic. they

hewlett packard will be announcing earnings after the close next wednesday. and i'm told at least by sources that it is likely -- likely to announce the significant job cuts along with those earnings. though of course those things can always change. so we can confirm, again, a number of other reports out there involving hewlett packard, which is in the midst of a turnaround, bill, that is going to go on for quite some time. but we are starting to see significant decisions made when it comes to head count at the company. back to you. >> yeah, david, it's a good point you make. i think a lot of people forget, although apple is likely to overtake them this year, hewlett packard is the largest technology company in the world by sales as of the end of last year. but revenue has declined from two years ago. net income has declined from two years ago. this is a bo hee moth that looks like it will get smaller. >> it is going to get smaller no doubt. but you're right. it's an important point to raise, brian. it's a behemoth, the former ceo has been criticized at least

i thought the price action in hewlett-packard, by the way, was a little bit disappointing. you would expect much move of a lift from the long side given how depressed that stock has been. >> want to say just quick back. emc is incredibly depressed but that's what you have to look at as a selloff. >> i think it is hb doing peter. >> yeah. >> that wasn't on the radar screen anywhere, that hp could do great. >> coming up, cnbc's phil le but a has a report on what's sending boeing to soar to new heights. >>> and what lies behind that curtain could be your best money-making opportunity right now. it's our saucie trade of the day. that's a hint, and you'll have to stay tuned to find out what it is. much more "fast" straight ahead. ♪ ♪ [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements. ♪ ask your financial professional how lincoln financial can help you take charge of your future. ♪ in here, great food demands a great presentation. so at&t showed corporate caterers how to better collaborate by using a mobile solution, in a

hewlett-packard is a tangible company. allot of it is services but a lot of hardware and we understand they are eight deep technology company. facebook is not a technology company, they are a market maker. they've created a market for connections. that is a very different kind of amorphous thing than what hewlett-packard does which is more stable and tangible >> effect on california's economy and society, hewlett- packard make something with a factory and apple makes something although they seem to be in china more than here, but these things are ideas and they don't necessarily translate into long-term jobs and buildings of the older economy >> and we have not yet at the state or local level begun to understand fully how to structure in that possibility for budget purposes because we need some stability on predictability for revenue purposes and you cannot exactly do that when today it is $38 per share and tomorrow, it might be 17. >> what does that say about where we are heading? have we morphed from the idea of factorie

>>mark: hewlett-packard will be laying off 7% of its work force today. >>darya: here is a quick look at weather and traffic. >>james: the fog will clear relatively quickly. this afternoon mostly sunny and breezy. it looks like we have a cool down still in store, possibles recalls on friday. >>erica: we do have a high wind advisory for the san mateo bridge. at the approach to the bay bridge we're dealing with a stalled vehicle closer to a treasure island. at the toll plaza flats, no back up to speak of. >>mark: in the south bay, a search for sierra lamar continues. 21 year-old antolin garcia torres was booked into santa clara county jail and arrested on one count of murder and kidnapping. he is the owner of the red jetta and police believe at this point that sierra lamar is dead. not everyone shares that opinion. will tran is live in morgan hill where another volunteer search is expected to happen. >>will: so far they have not recovered the body. tsk now that the news is out we will see if it reinvigorate people to turn out more but still, marc klaas with

when meg took over hewlett-packard in september she promised to make personal computer and reinvigorate the struggling division. in march she announced the computer and printer division would be combined and all over the valley analyst began predicting layoffs. >> whitman know that is hewlett-packard is selling yesterday goods. >>reporter: industry analyst says layoffs are significant because they save the company di also think it's more significant that she invests some of the money into new businesses. >>reporter: where. >> well i would say services to beef up the services industry. maybe try to get back that tablet. they were in for awhile and pulled out to. try to figure out what the next big think is and maybe even branch into some kind of web base strategy. >>reporter: they aren't doing much on line beyonsellingng in ink. he says that's another business that is drying up. on the street when you ask which computer are the most popular. >> apple. >> mack. dwell. >> apple. >> hp name doesn't come out on top. sales have been slumping. figuring out why the company is in trouble doesn't

why would i buy hewlett packard or dell versus oracle? >> right. look, there differences in valuation clearly. dell is -- the last time we did the analysis, this was in the bottom five in terms of enterprise value and cash flow. it's trading at less than five times the free cash flow generation. it's extremely inexpensive and saying that dell's cash flow will decline at about a 12% per year. that's a fantastically low valuation and the bet is the story. it's not as bad as the valuation is saying and the company will put things together. similarly, the valuation will decline and go down about 7 or 8% per year. if you want to buy the growth companies, no doubt about it. many others that are growing and big questions about dell and hewlett and the question is that more than captured in the prevailing valuations. thanks for your time. scott nation makes a good point. there may be better places in technology for growth and the valuations are compelling for hewlett packard and dell. >> it is, but you have to look at the chart for dell. the chart has been

--el recorte representa un 8 por ciento de la fuerza de hewlett packard, que tiene casi 350 mil empleados. --los despidos se completarn en octubre del 2014. anchor --el gobernador jerry brown, tiene un plan "b" en caso de que los votantes no aprueben el aumento de impuestos. take vo --y ese plan incluye reducir el aÑo escolar. --brown dice que para "no" despedir a maestros o eliminar clases permitira que los distritos escolares recorten 3 semanas de los 180 das que tiene el aÑo escolar. --los distritos ya tienen la opcin de cortar 5 das..con lo que esas 3 semanas sumaran un mes sin clases. --ya hay oposicin al plan, pero el gobernador dice que la educacin ser la que ms sufrir en caso de no aprobarse el alza de impuestos. top vo --triunfo en los ngeles para los activistas del medio ambiente. --el concejo municipal de esa ciudad vot 13 a 1, a la prohibicin del uso de bolsas plsticas en ms de 7 mil supermercado s de esa ciudad. --la medida dice que las tiendas ms grandes tendrn 6 meses para eliminar las bolsas, y las ms pequeÑas 2 meses. stop open anchor --el presidente barack obama est n

silicon valley's pioneering companies is reportedly set to announce massive layoffs, bloomberg news says hewlett-packard will cut at least 25,000 jobs. others predict it could reach 30,000. it's not known how many of those will come from the bay area. analysts say the computer maker has been slow to react to innovation autos it's ironic the story is breaking the day before facebook is likely to go public and probably create a thousand millionaires while hewlett-packard is laying off potential live 25,000 employees. you can see it's not making printers or pcs. >> and meg whitman says hp would combine divisions to stream line operations. >> there is a sharp discrepancy between what the cal state university system says top administrators are paid and what they earn. leelandy's office examined irs records. according to csu records sf state's president earns 298,750s aids year according to irs records it's $423,500. csu says the chancellor makes $421,000 and irs says it's really $488,000. y says despite requests for explanation, he's gotten no response from the cal state chancellor's office. >> and tributes

hewlett-packard has announced that it is laying off 27,000 employees are around the world. cutting a% of its workforce, the computer maker hopes to save $3.5 billion by 2014. our correspondent in los angeles has more details on the company's cuts. >> it is altogether a huge percentage, 8% of the worldwide staff. the reasons behind this comes down to the fact that more people are moving across to smart phones and tablets. h-p is the world's biggest producer of personal computers they have struggled -- computers. they have struggled to keep up and they have had a change in management. 27,000 employees -- money that would go back into the company to go towards developing new products. they will focus on cloud computing, a data storage, and to computer security. >> it seems the company could not compete with the ipad. it did not do what it should have been doing. >> other big manufacturers, dell, they've also seen these kinds of problems. most people are switching the way they did their computing. they are not able to adapt. this news leaked out in silicon valley last week when

hewlett-packard was the dow's best performer today. stocked -- the dow is up 33 to 12,530. facebook closed higher today on the nasdaq, there is word facebook is considering switching its listing to the new york stock exchange. however they denies they are talk to the company. facebook shares have fallen 15%. today they closed $33. >> over all it was a mixed day on wall street, the dow is up 33 to 12,530. the nasdaq is down 10 at 2,839. and the s&p is up 2 at 1,320. >>> the developer of a housing subdivision sued the state finance departments and the city. the issues is the state's refusal to pay a debt. the developmenter says it has a contract but the state shut down all local redevelopment agency because of budget cuts. >>> celebrating the golden gate bridge's 75th anniversary is a great idea but using this, not so good. >> also, an incredible story of survival, what someone did to this dog will make you pretty upset. >>> police are searching for two people wanted for a attack on a dog. a dog is recovering now but what happened to him is hard to believe someone would do so

i've been gone from hewlett-packard for a long time. to respond to your specific point, first of all, to jared's comment, a business doesn't set out to create or destroy jobs per se. a business is in business to behavior products to a customer, and to do well in the process. in the process of that, jobs are created. secondly, california is sitting with a 12.4% unemployment rate, not because of silicon valley, because of hewlett-packard, because of bad public policy and decisions that plagued that state for almost 25 years now. businesses are leaving in droves. the tax rates continue to go up, while the tax base erodes, bu e budgets are deteriorating. >> excuse me, jared, mr. bernstein, i want to give you a chance. creative destruction is healthy for the business cycle. the president is not being articulate, nor is his campaign. mr. rendell of pennsylvania cause the tone wrong. do you believe that the president's campaign tone in attacking private equity is wrong? >> i don't think he's attacking private equity. i think he's actually maki

hewlett-packard or steve jobs. the seats we plant brings the vast forests of new products and new technologies and new patents in the future. that is where we have to -- we have to keep our eye on the main thought here. that is the discipline, the imagination, and the investment. that is what makes california -- that is why people are still coming here. they're not staying in colorado, i am sorry to say. they're right here. [applause] >> just briefly, setting aside plunder for a moment. >> i am sorry about plunder. it is a big part of wealth creation. >> could you talk briefly about your turn initiative? >> it is going well. mike rossi is leading the charge. i have met with what i think will be the next president of china. we have delegations from china to come here. we're sending delegations there. this is not just business as usual. we're getting detailed committees and proposals, a couple of the key states. we want good coming this way. we want good going out way. -- goods coming this way and we want goods going

. >>> on the "cbs moneywatch," hewlett-packard is poised to slash thousands of jobs and postal service overhaul. ashley morrison is here with that and more. >> good morning to you. overseas tumbled on disappointing u.s. economic reports. tok tokyo's nikkei sank 3% for a seventh straight week of losses, while hong kong's hang seng lost 1.5%. wall street looks to rebound today after another down day thursday. the dow sank 156 points while the nasdaq was off 60. >>> facebook co-founder ed ard dough saverin says he plans to pay taxes. he moved to singapore three years ago and in september renounced his u.s. citizenship. several u.s. lawmakers are outraged, charging he's trying to avoid millions in taxes and want to prevent him from re-entry into the country. >>> it's reported that hewlett-packard, the world's largest maker of pcs and printers is ready to cut tens of thousands of jobs. "the wall street journal" says the computer giant could eliminate nature as many as 30,000 positions. the personal demand for computers has shrunk as more people connect to the internet on their smartphones.

. >>> hewlett-packard employees return to work after yesterday's devastating news of massive job cuts. >>> worsening poll numberses for the governor, approval rating in trouble. >>> -- >> downtown oakland cafe hit hard by occupy protests shuts it doors. why the civil unrest has nothing to do with the closure. 3q from the wildflower valleys of yellowstone to the tropical islands of hawaii, air wick has partnered with the national park foundation so you can experience the spirit of these national treasures in your home. the national park collection. something in the air wick. >>> good morning. look from sutro cam towards san francisco and bay bridge and the bay beyond temperatures mild this morning. what will it be later? we know gusty winds are headed this way. we'll check in with mike. >>> growing uncertainty at hewlett-packard after the largest round of lay-offs in 73 year history. the computer company is cutting 27,000 jobs or 8% of its workforce. investors like the news. shares shot up 11%. the move is seen as a sign it can no longer compete with the popularity of smartphones, tabl

--el recorte representa un 8 por ciento de la fuerza de hewlett packard, que tiene casi 350 mil empleados. --los despidos se completarn en octubre del 2014. anchor --tres estudiantes en san jos han sido suspendidas de su escuela por usar facebook para acosar. take vo --segn la madre de la presunta vctima, tres chicas pusieron comentarios amenazadores en facebook, incitando a matar a su hija cassandra. --la adolescente dice que el acoso comenz a principios del aÑo escolar en la escuela secundaria quimby oak... --pero las amenazas se tornaron tan serias que ahora la polica de san jos se vio obligada a intervenir. --tres jovencitas de octavo grado, cuyas identidades no han sido reveladas, fueron suspendidas. --dos de ellas tuvieron que acudir a la polica por hacer amenazas consideradas criminales. cu ---la esposa del suspendido alguacil de san francisco, take vo eliana lopez, rompe el silencio y decide hablar por primera vez con un medio noticioso en espanol en estados unidos... ---en estos momentos, nuestro reportero jaime peluffo viaja a miami donde entrevistara a eliana lopez de forma ex

hewlett-packard prepared to let go 30,000. the cuts will save the company more than a billion dollars. >> the san francisco transportation agency meets this morning to consider expanding the use of forward-looking cameras on city buses. cameras have been looking out for vehicles parked illegal using bus-only lanes. drivers get tickets in the mail. >> juror deliberations begin today in the trial against john edwards. attorneys for both sides made closing arguments yesterday. edwards faces 30 years in prison if convicted. >>> number five, gusty winds yesterday likely caused massive power outage in novato. power is being restored to 500 customers who didn't have electricity over fight. pg&e estimates that 7,000 customers lost power when the lines fell yesterday. >>> one final check on weather and traffic. >>> winds pick up during the afternoon along the coast bay shoreline small craft advisory until 3:00 tomorrow afternoon northwest wind 25 to 35, rest of us should be okay. not a cloud to be found, no delays at sfo or oakland or

government. >>> it's reported that hewlett-packard, the world's largest maker of pcs and printers is ready to cut tens of thousands of jobs. "the wall street journal" says the computer giant could eliminate as many as 30,000 positions. the personal demand for computers has shrunk as more people connect to the internet on their smartphones. >>> mortgage rates in the country fell to record lows for a third straight week. the rate on a 30-year loan dipped to 3.79% while the 15-year fell to 3.04%. but the low rates haven't helped the housing market because lenders have made it tougher to qualify for a loan. >>> and the postal service says it's moving forward with plans to shut nearly 250 mail processing centers. the postal service says it will consolidate 48 processing centers this summer but will stretch out the remainder through 2014. congress continues to debate legislation to overhaul the agency. and the postal service just continues to struggle, manny. >> ashley morrison here in new york. thanks. >>> the g-8 summit begins today at camp david. italian premier arrived this morning. pr

hewlett packard did report a much better than expected quarter. perhaps there will be some who say this a dell problem. the bottom line, it is no longer a three device world. why have a desktop, laptop and phone when mobile devices make it redundant? while it's terrible news for potential people like dell and for facebook, it's fantastic for apple, which remains the one to buy. marcia in ohio. marcia. >> caller: hi, jim. i've been hearing so much about the digital cloud computer thing. i bought some sirius logic. it did great. in march i decided to buy brief cove and jive. sirius is up about 60%, jive is done 38 and what can you tell me about the two stocks that have gone down so much? >> bright cove, i've used their product and it's very good. i would not give up on that. jive is part of this social media craze. that's the problem. it's become a crave. i'm not in favor of owning it. this was the worst day in the decade for dell. what we have to conclude is that apple has obviated the need for many for the small form factor computer that was dell'

. >> and ahead on abc 7 news at 4:00 hewlett-packard laying off thousands of employees. we'll have detail autos coming up, concerns about the health of first lady nancy reagan recovering more than a month. >> michael fin gee taking your questions through his facebook and twitter pages now and lbs will be answering them live a little bit later. >> it's 4:09. time for a check of traffic and it's gridlock this, is as bad as it gets at the skyway in downtown san francisco. nobody is going anywhere, fast. maybe, three, four, five miles per hour. whether left to right or trying to get down towards 101 south, abc 7 news continues in just a moment. >> this afternoon, health officials are testing 35 northern california babies for tuberculosis exposure after a resident with an active case of tb advise yilted the neo natal intensive care units in two hospitals. parents of 15 babies in solano county and 20 babies in sacramento county are being notified about possible exposure, the contagious spern now in isolation and receiving treatment. >> a company is pulling spinach off shelves

the sobering reality for hewlett-packard. talking about company wide restructuring, including major layoffs. up to 30,000 hp employees could get the dreaded pink slips. >> so the rule of thumb for a new ceo when they come in, if you're going to make a cut, make it early, make it deep, get the company focused on growth again. that's what she seems to be doing here. >> the layoff could represent close to 10% of the company's workforce. hp employees close to 350,000 people around the globe. >>> 4:35, and new this morning, berkeley police investigating a deadly car crash. it happened in california just after 1:00. berkeley police say a car struck a tree. one person died while two others were taken to a hospital with serious injuries. we do have a crew at the scene. christie smith gathering information and we'll have a live report. >>> the family of michael sanchez this morning demanding answers about why it took authorities seven days, that's right an entire week to find that missing man. san jose police found sanchez tuesday in

i think it's safe to say hewlett-packard will do the same? >> that's the feeling over here. you're right. i mean, we forget about, you know, american stocks so much, but dell did weigh on the market this morning, especially on the tech. now apple up 12 points, bringing the whole nasdaq up. >> will it be important psychologically? the s&p certainly, even if we finish right here, it's still a triple-point gain. we had a nice rally here. so definitely positive, coming -- >> alan, always good to see you. that is the first hour, and what a crazy hour we've had here as we go into the close of ad

bad news for hewlett-packard can sometimes only be bad news for hewlett-packard. if they tell you it's raining the odds are good when you hear from apple or ibm they'll likely tell you it must only be raining on hewlett-packard's side of the street. kohl's, only raining on their side of the street versus macy's. sometimes there just isn't any pin action which is why i keep my pin sounds. you can't extrapolate from one company's results to the rest of the industry and that's most frequently the case when that company is one of the newsers. [ boos ] it happens in every industry, not just tech stocks that hide behind the sector when the ball drops. we saw with avon, when its business folded even as direct sellers herbal life and tupperware flourished they were talking about the business life. we procter & gamble claimed the world was rebelling from high priced products when colgate was running circling around them. wendy's lamenting the consumer can't afford a hamburger today, but it apparently it could tomorrow when mcdonald's was selling them by the millions. costc