's microsoft present -- microsoft president joining us next. this is bloomberg. ♪ ritika: this is bloomberg markets. coming up, the veda partners darker of economic policy joining bloomberg tv 1:30 p.m. new york time. this is bloomberg. ♪ keeping you up-to-date with news from around the world, i am ricky --ritika gupta. zelenskyy says that if it wasn't for iran supplying russia with weapons we would be close to peace now. the northeastern u.s. is hurtling towards her winter heating crisis. heating oil delivered to new york is the priciest ever. retailers in connecticut are rationing it to prevent panic buying, and there are winning seven national gas shortage. consumers faced the highest energy bills in decades this winter. europe's dash for gas and africa looks to be a heated issue of the climate change talks in egypt. when activists assess africa won'taccept energy clip---one activist says africa won't accept energy colonialism. global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analys

but the analyst points, they like the stock with or without the microsoft transaction. activision has strong fundamentals, very solid growth outlook, immense franchises including call of duty. and they will get a $3 billion breakup free to add on the balance sheet if the deal falls apart. on the flipside if it goes through, then look at where the stock is trading. it is like 20% below the take older -- the takeover offer. that is a huge upside to capture in that scenario. ed: you have taught me so much about the twists and turns of dealmaking. you and i have followed the twitter deal so closely for months. and the thing you taught me throughout that process, not just to crunch the numbers, but it is to look out for key inflection points, key decisions. so what is the big key decision were key moment we are looking for between activision and microsoft? yiqin: i would say antitrust progress has always been the focus. so right now it is waiting on approval from the ftc. it is also facing the probe under u.k. cma and european commission. so, regulators have raised concern.

gina, on microsoft, make your power point. sorry. >> here's my pitch on microsoft. look, microsoft is suffering from some pandemic pull forward. a lot of people ended up having to get ready for remote work, deal with remote workment upgrade their systems throughout the pandemic, and they're starting to see a glut of spending expected next year, and so the projections for next year are modest but positive, but very low by microsoft standards and, i think that if you look at what's happened to the stock, they have more than priced that in microsoft is an absolute steal it was 21 times forward earnings for a stock that has tremendous growth and where the cloud story is not going away, i think we'll have low earnings next year, and i think that that will pick up and will get back to a more normal rate where spending is necessary, and quite frankly is important to most corporate, you know, back bones, and so you're not going to get away with not spending money on microsoft, so i think 21 times is a steal. >> and we showed our mystery chart before the break the stock is d

but analysts like that stock with or without microsoft. their case being that as a standalone company, activision has strong fundamentals, very solid growth outlook, immense franchises including call of duty. and they will get a $3 billion breakup fee to add on their balance sheet if the deal falls apart. on the flipside if it goes through, then look at where the stock is trading. it's like 20% below the takeover offer. that is a huge upside to capture in that scenario. ed: you have taught me so much about the twists and turns of dealmaking, you and i followed the twitter deal so closely for months, for example, in the thing you taught me throughout that process was not just across the numbers, but it is to look out for key inflection points. key decisions. so what is the big key decision were key moment we are looking for between activision and microsoft? yiqin: i would say antitrust progress has always been the focus. right now it is waiting on approval from the ftc. but also it is facing the probe under u.k.'s cma and the european commi

meta, microsoft and microsoft is up 0.7%. that's it. dow winners after six and a half minutes worth of business, dow up 220 and that's 0.69% and big winners on that index are nike, which is up 3%, home depot, walt disney, dow inc, jp morgan, freeport energy company. nasdaq winner, idex again inside, fox up there, nice 4% gain and xp semiconductor. all right, folks, new york's governor hochul claims democrat states are the safer places to be. roll tape. >> they have this conspiracy going all across america trying to convince people that democratic states are not stay but democrat states are the safer places. stu: i don't think so. is lee zeldin going to beat kathy hochul because of crime. brian kilmeade is a new yorker and he's coming up shortly. more than a third of small businesses could not pay all their rent in october. which states saw the highest delinquency rates and larry kudlow is coming and you happen predicting a supra aural she lae president next week, stay tuned. ♪ is stu: democrats have shifting their campaign strategies

you have the likes of cisco and microsoft and google able to offer video conferencing software which is, of course, zoom's strength is trying to diversify into areas like calendar, but a lot of companies already have that figured out. >> no. a lot of companies supposedly had video communication figured out and then along came zoom and this is still a company that's got a high teens market cap at the very least there's some things they can do. i don't know i'm not trying to make a call on zoom, not my job, but i think the factthat they could -- i continue to use zoom i've got access to teams and access to webex, et set ter they have a loyal customer base and good technology. i think they endured a heady time i remember standing next to eric on the day of their ipo at nasdaq, and he was feeling a little, i don't know, seemed queasy about how quickly the stock price was moving up. he doesn't have that to worry about anymore now. >> he may be queasy on the other sense. >> now he can focus on building the business from about the point where the stock was at the ipo. and it's an enterprise

brad smith, president of microsoft. thank you for joining us and good luck in egypt carl, back to you. >> our thanks to you. >>> as we go to break, check out some of the biggest gainers on the nasdaq 100 meta on top, quickly followed by walgreens, moving higher with walgreens, moving higher with that deal with summi ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq as an independent financial advisor, health yeah... oh. don't worry i got it! i stand by these promises: i promise to be a careful steward of the things that matter to you most. i promise to bring you advice that fits your values. we have details next i promise to put your interests first, always. charles schwab is proud to support the independent financial advisors who are passionately don't go away. visit findyourind

microsoft is up $13 per share. amazon up $19 -- whatever it wa- lauren: up $13, you've lost $900 billion over the past year many microsoft. stuart: don't pull it down, please. $13 higher, i can retire now, come on. susan: yeah. stuart: amazon, metathe, microsoft -- susan: we were just talking about interest rates because of the cpi prints. the terminal rates from march 2023 has come down. the highest in the peak for interest rates from the federal reserve. they expect to raise it to maybe 4.75-5 which is less than what they anticipated before the cpi print. stuart: okay. we've done stocks, kind of. i think we better look at bitcoin and binance. they're saying heir going to walk away from the deal to acquire ftx. they're not going to bail them out. this is a crisis in crypto the. give me more on this. susan: we just had ftx's founder tweeting in the last few minutes saying, basically, that most investors will -- he will try to get their money back. that is his top the priority right now. stuart: but wait a second, h

if we look at microsoft, microsoft has been under a halo as has apple you know, people love it, and microsoft has maintained a high multiple throughout this last year and a half when tech has softened it's come down but nothing like meta and amazon. we're underweight microsoft, underweight apple, which most of the world is because it's such a large weight but i think that right now you've got the covid risk and china problems that are affecting apple more than any of the others because it's a manufacturing company. >> this is a jeffreys note, by the way, which i wanted to mention, too they're the ones that put that out the most down side and most insulated. sarat, meta has the most insulated down side. just a general thought wrl we are with these stocks so interestingly important to the market what else can zuckerberg do wrong at this point? so i think you've got protection as some sum of the parts is greater than the whole i think the amazon piece we're underweight amazon but i think the two things going to effect are retail what is that going to do their margins in the long-term and aws has

let's bring in microsoft gaming ceo phil spencer to discuss what he's seeing at xbox. welcome. i would also throw in, i know there's not much to say about activision blizzard specifically, but you guys bought zenamax for, what, $7 billion, which is small change compared to some of the other moves we have seen you make. but the environment has changed significantly since that transaction. how are you working to incorporate that and get the most out of it as the economic winds shift? >> yeah, it's all about getting great games done that's what we're working on with our teams at zenamax. two great games coming in 2023 red fall and star field. delivering great games for our customers across the platforms where they want to play is the fundamental promise we want to have at xbox >> so speaking of xbox, overall, the gaming business seems to be okay from a supply chain point of view, at least that's what we heard from amd, which supplies you guys as well as others what do you expect to see on the consumer front as consumer spending slows down? is it the hit games that are going to out

i caught up with microsoft president brad smith. brad: i think it's a port in the thick about the problem that we and others are trying to help solve. so much of the work is needed to its our climate changes involving better use of an eye or data better predictive modeling. look at predicting wildfires, whether you are in the united states, india or africa. if you look at things like responding to floods, you need to be able to predict these things and then give people early warning systems. yet, if you look at africa today, for every 14 data scientist in that country, there's only one in africa. so we've opened up, we are announcing to new data labs, one in egypt, one in kenya, we are partnering with planet labs in san francisco, which is doing this extraordinary work with new satellites to bring satellite-based imagery and data, including for africa. you put our ai capabilities, our data scientist, planets, images together, now we can be a bit of a equalizer. we can help climate scientists on a continent like africa. >> meantime,

you brought up microsoft. you look at microsoft, exxonmobil, those two actually switch off every decade going back to the '90s of who's in favor. right now i think the 20/20 is exxonmobil. so i like the trade on exxonmobil, maybe not that particular spread, but something a little different. >> mike, do you like exxonmobil as well? >> not really. this is not a multi-decade trade as far as i'm concerned. and, you know, this is sort of steep and uncorrected. that's carter's language, not mine. but we were pairing some of our energy exposure today. >> steep and uncorrected. is that a good thing? couldn't that be a good thing, carter? aren't there god-like charts in the market? >> there is such a thing as too much of a good thing, you know, like 25 cookies or 25 drinks. you want to sometimes stop. let's look at two charts of the xle. the issue here is we're right back to a former high. and even if you're bullish, before exceeding a former high, typically you'll contend with it. but what we know also, and you can se

microsoft. i would submit it's part of a healthy bottoming pattern that we need to go through, it just takes some time. >>> coming up, tech layoffs hit amazon the e-commerce giant announcing job cuts what it will mean for the stock. >>> plus shares of biogen jumping thanks to another company's bad day. we'll explain, back in two with gold bond... you can age on your own terms. new retinol overnight means the smoothing benefits of retinol are now for your whole body. plus, fast-working crepe corrector diminishes wrinkled skin in just two days. gold bond. champion your skin. just look around. this digital agerinkled skin we're living in,wo days. it's pretty unbelievable. problem is, not everyone's fully living in it. nobody should have to take a class or fill out a medical form on public wifi with a screen the size of your hand. home internet shouldn't be a luxury. everyone should have it and now a lot more people can. so let's go. the digital age is waiting. >>> we've got a news alert on david te

they have their own separate domain where they were untouchable and started going against each other microsoft azure goes up against al s amazon services and google cloud that reported a horrible quarter tonight that i am stunned and addressing these situations with investing club members this evening in a very harsh way. h highly unusual for me. every software play wanted a piece of customer relations management they're all taking it. there are a lot of smaller vessels that digitize finance or auto industry including tesla that is a broken stock as underlying companies are in good shape and caravana fintech landing is just disastrous a firm reported a good quarter tonight but a weaker forecast. the ceo will be on the show later on to explain upstart gave you a miserable forecast and it is being crushed sell, sell, sell, sell didn't say i didn't predict that one but i sure did get dizzy get some right and get some right. meta is the worst performing stock in the s&p 500 no wonder. it needs advertising and advertising dollars are in a short supply major layoffs expected according to the "wall s

i caught up with microsoft president brad smith. take a listen. brad: i think it is really important to think about the problem that we and others are trying to help solve. so much of the work that is needed really involves better use of ai, more data, better protective modeling. you look at predicting wildfires, whether you are in the united states, india, or africa. when you look at things like responding to floods, you need to be able to predict these things and then give people early warning systems. yet, if you look at africa today, for every 14 data scientists that there are in developed countries, there is only one in africa. so we have opened up, we are announcing today, two new data labs, one in egypt, one in kenya. we are partnering with planet labs in san francisco, which i think is doing extraordinary work with new satellites to bring satellite-based imagery and data, including for africa. you put our ai capabilities, our data scientists, planets, imagery together, now we can be a bit of an equalizer. we can help climate scientists on

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emily: meantime, you're navigating a potential huge acquisition by microsoft. regulators are scrutinizing the deal. what can you tell us about any signal you have gotten from regulators about when the skills going to happen? >> all of my eyes have been on call of duty. statements are out there as you know. microsoft has commented on this quite a bit. the possibility is very exciting. we all understand the scope of that. we are here focused to do what we came here to do, deliver the best possible player experiences we can. the call of duty milestones have been tremendous. a testament to how much work has poured in. more to come. all eyes are on this moment. again, i feel very honored and humbled to be a part of it. emily: more to come. thank you for sharing those numbers. we will stay tuned. the senior vice president, thank you. coming up. galaxy digital is mulling a big restructuring. we will discuss next, this is bloomberg. ♪ arto run a business on artyour own. make it easier on yourself. with shopify, you can have everything you need to streamline your ship

microsoft 34, and meta down 72%. this year, this year, well, your next guest says these companies are still meaningful, maybe they don't have quite the impact, but they matter a lot. jason brady at thornburg, good to have you back on again. i know there's people who have to be looking at meta and thinking, wow, down 72% threw fourths of its value, there is got to be value there. is there value there, or is this the classic value trap >> that's a great question, brian. i would say that what is happening within the dynamic of the ownership of that name happens a lot in markets, right? where a name goes from being a growth leader to becoming a value name, and that's a painful process. that's one which often overshoots from a price perspective. the real question for meta is what is the r.o.i. that they're spending on the metaverse. it's still very cash flow genre tiff in its main business, and the growth is slowing a lot, but it's a very successful business, one where you should be willing to pay some interesting multipl

look at microsoft, exxonmobil, those two actually switch-off every decade going back to the '90s who's in favor. right now in the 2020s it's exxonmobil >> mike, you like exxon as well? >> not really. not for a decade, certainly. this is not a multidecade trade, as far as i'm concerned. and this is sort of steep and uncorrected. that's carter's language not mine, but we were pairing some of our energy exposure today steep and uncorrected. is that a good thing couldn't that be a good thing, carter aren't there god-like charts in the market steep and uncorrected. >> there's such a thing as too much of a good thing as you know you want to sometimes stop so let's look at two charts of the xle. the issue here we're right back to a former high and even if you're bullish before exceeding a former high typically you'll contend with it what we know also and you can see here how well-defined these lines are. i think we back away a bit and either back away a lot or a bit. but the third and only other choice straight up and out, i don't think that's a reality i would also point out this if you look

major ones at meta platforms does alphabet need all these people does microsoft i don't think so they made so much money for so long at these companies, maybe they just don't know how to fire now, if we look at anything tech, fintech, real estate tech, enterprise software tech, anything that needs advertising tech to make the quarter, we know exactly who is feeling the pain. >> the house of pain. >> it's less visible to those who don't work in tech and it's not just that they're firing people. so many of these tech companies offer their employees tons of what's known as stock based compensation a big part of their income is from stocks. but now that their stocks collapsed, a lot of that compensation is going up in smoke and more has to be paid out in cash. the purchasing power is being destroyed and the companies aren't doing as well once you pull back stock based compensation, they're not doing that well. the pay is in the companies we never heard of startups that were supposed to be public and didn't and the ceo of goldman sachs talked about a queue to come public but to me that's a

microsoft, just wouldn't do it. >> okay. it's time to take am tweets here first fan asks with the recent tread in xom, what do you think about entering a november 25110/105 put credit spread? >> our producers gave us a heads up about this tweet. i look up the prices you're risking $3.50 to make $1 $1.50, so i don't love the risk reward having said that, i like exxon mobil. microsoft, exxon mobil, those two switch off every decade going back to the '90s on who's in favor right now, i think the 2020s, it's exxon mobil so i like a bullish trade, maybe not that particular spread look for something a little different. >> mike, you like exxon as well? >> not really, not for a decade certainly. this is not a multidecade trade as far as i'm concerned. this is sort of steep and uncorrected. that's carter's language, not mine, but we were pairing some of our energy exposure today. >> steep and uncorrected is that a good thing couldn't that be a good thing? aren't there god-like charts in the market that are steep and uncorrected? >> t

now as to concerns microsoft would make activision gains exclusive to its platforms, microsoft tells us it offered sony a ten-year deal to keep call of duty on play station we reached out to sony and activision for comment and have not heard back just yet. >> berkshire has been buying up activision as a play all yearlong keep us posted take a look at the airline stocks they're soaring as the holiday travel season takes off. up next a top airline analyst gives us her picks that story plus one surprising black friday trend this year, and tesla's self-driving expansion, when we take you inside the market zone next. what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq [holiday music] ♪ for people who love their vehicles, there is only one name on their holiday list... weathertech... laser measured floorliners that fit perfectly in the front and rear... seat protector to guard against spills and mess

the statements are out there and microsoft as commented on this. the possibilities are very exciting. we all understand the scope of that and we are focused to do what we came here to do, which is to deliver the best possible player experiences we can and the call of duty milestones have been tremendous and a testament to how much work has poured in. more to come but all eyes on this moment and i feel honored and humbled to be part of it. emily: thank you for sharing those new numbers on call of duty with us. we will stay tuned. thank you. coming up, galaxy digital mulling a big restructuring. this is bloomberg. ♪ emily: the crypto firm galaxy digital currently has 375 employees, but that number could change. sonali basak is here to explain. sonali: galaxy may be laying off 15 to 20% of its workforce. that could amount to as much as 75 people. i want to point out that recently, galaxy had been hiring, so this is a new plan. the stock is off more than 70% this year. earlier this year, they had the plan to buy bit go. that would have added more sta

apple, microsoft, also down big this week. while many expect more big rate hikes to come, tech naks are taking the hits. they're tightening their belts there's been almost 10,000 job cuts in the sector for october alone. a slew of names continuing to cut guidance as they report. qualcomm, roku, just to name a few. only in the last 24 hours speaking of layoffs, it was strike this morning. still a private company. really known as a darling here in silicon valley, and a note to staff, the ceo pointed to big tech earnings last week as evidence of all these macro factors that they're feeling in the private markets, that their public counterparts are feeling, and sectors we thought were safe like cloud, cybersecurity, how resilient are they really? the etf, the cybersecurity etf, it's down nearly 8% this week. i can't stop thinking about this idea cramer brought up that we may no longer be in the early inningsof cloud. >> i think we're still in the early innings of the digital transformation that's affecting enterprise software. i h

so we'll implement cloud based microsoft modern work solutions like microsoft 365, teams and azure, so your teams can collaborate with zero trust security anywhere. [phone: destination ahead.] microsoft makes modern work possible. cdw makes it powerful. ♪ ♪ luxury exemplified. modern work possible. innovation electrified. with apple music seamlessly integrated. the all-new, all-electric eqs suv from mercedes-benz. what if you were a major transit system with billions of passengers taking millions of trips every year? you aren't about to let any cyberattacks slow you down. so you partner with ibm to build a security architecture to keep your data, network, and applications protected. now you can tackle threats so they don't bring you to a grinding halt. and everyone's going places, including you. let's create cybersecurity that keeps your business on track. ibm. let's create at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the plann

i think microsoft and apple could be more of garpy value stock. i think the true value is going to be health care, parts of energy, parts of industrial and maybe some parts of tech but i think from a sector basis -- >> are apple and microsoft too expensive or not >> relative to history, yes, but in terms of relative to the sector, no >> in term of where we are in the world to what's going on are they too expensive >> depends on what you want to pay for. if you want to pay for stable growth, apple and microsoft are amongst the most stable. if you're going to have a portfolio of stock, scott, you will pay a higher multiple the multiple is down 7.4 points. the average multiple contraction in a bear market is 6.4 points so the market's done its job so whether or not apple and microsoft are going to say depletion of the multiple i think it's a moot point. what you're paying for is stability of earnings. >> my issue is if the -- if the market multiple comes in even more too egregious to pay. >> i don't think so especially if you're going to right size t

and you're not thinking, even, about the eagles you're thinking about microsoft. it's like, look at that chart. oh my god. is this going to be the quarter, david, that these guys are not going to have good orders? because of the slowdown in the economy? it's immense and happening much faster than certainly jay powell realized. the slowdown is real >> it may be real but you have to wonder whether people aren't going to just simply buy on that because the slowdown is evidence of it working and therefore we know what happens as a result of that and then we're off to the races again. everybody's a little bit ahead hasn't the decline in microsoft in part reflected the expectations of said slowdown? >> do you start buying when you're laying off people >> i don't know. >> but they obviously have money to spend on travel why would you not have money to spend on stocks? >> i think the consumer is better than the silicon valley companies, where i think the real -- that's where the real risk is. and some of these, like, i happen to like alphabet but they have so many more pe

all right, talking of which, take a look at one of stu's favorites, microsoft, a new report says the ftc is likely to block their bid to buy activision and would argue that would give microsoft an unfair boost in the video game market. bring mark back in on this. what do you make of this deal potentially being blocked. what do you say, mark? >> well, i think antitrust risk really has been elevated over the last two years ie the first two years of biden administration and people running the ftc were focused on cutting down these kind of mega mergers among big tech names. i think that will likely change. i think it's already changed with the recent congressional results so my guess is that microsoft would fight this tooth and nail through the courts. i don't know who would win on this, but to me it's one it's representative of a heightened relatively constant la tour scrutiny of all things -- regulatory scrutiny of all things big tech and this will drag out for quite some time is my guess. ashley: okay, talk twitter. another kind of daily soap opera. this time the service will offer di

that includes microsoft, inn the t intel an and snap. let's talk more with stephanie mehta. >> good morning, frank >> you are of the mind that meta is a special case. you are looking at microsoft and lyft you said the leaders there were getting high on their supply what does that mean in this context? >> well, throughout the pandemic, we saw a lot of technology companies not un unjustifiable sing the praises for enterprise technology space. the need for more spending and seeing customers really invest in technology. i think there was a sense this kind of growth would go on in p perpetuity look at ecommerce. shopify and amazon reflect the slowdown in ecommerce activity in part because people are returning to stores and diversify spending so the growth we saw during the pandemic which was the silver lining for much of the economy and stock market, that growth was not sustainable. i think the technology sector invested and planned for that kind of growth and we are seeing that slowdown. >> absolutely a slowdown i cover the tech sector. when

congress of microsoft, i was just saw just quickly. and reminder of our top story just before we go, the ukrainian military says it can't confirm whether russian forces are retreating from the southern city of her son was going out the pull back on wednesday. if you cranium force, as it regained control of harrison, it will represent a major setback for proteins and i've seen his off day off as our stay tuned for the business had lines coming up next or check out our website at d. w dot com. thanks for watching tv. again, they get all the harvesters or immigrants don't really thankful everything you enjoy eating at home with your family was harvested by people who are being exploited. estella dc. and we're going to need durham, can we keep doing what we're doing? and that's why your green revolution is absolutely necessary. unit revealed, the future is being determined. now, our documentary theory will show you how people to companies and countries of rethinking everything. i'm making made changes. you reviewed this week on d, w. ah, w

so we'll implement cloud based microsoft modern work solutions like microsoft 365, teams and azure, so your teams can collaborate with zero trust security anywhere. [phone: destination ahead.] microsoft makes modern work possible. cdw makes it powerful. ♪ ♪ connecting to opportunity is just part of the hustle. ♪ ♪ opportunity is using data to create a competitive advantage. ♪ ♪ it's raising capital that helps companies change the world. it's making complicated financial concepts seem simple. opportunity is making the dream of home ownership a reality... ♪ ♪ ...writing new rules and redefining the game... ...and driving the world forward to a greener energy future. (applause) ♪ ♪ opportunity is setting a goal... ...and charting a course to get there. sometimes the only thing standing between you and opportunity... ...is someone who can make the connection. at ice, we connect people to opportunity. >>> all three major averages hitting session lows the todow is lower by 500 points we're watching shares of tesla, they're falling again today now at levels not seen since

we like the balance sheet of microsoft. it's hard not to like their balance sheet. we'll have some volatility in the tech space, but owning a name like microsoft is important in our view. last week is a reminder, you don't want to be absent the growth space when market tides turn, they can turn pretty heavily. >> they sure can chad oviatt, we appreciate it. thank you. have a great day >> thank you, you too. >>> the story captivating wall street and much of the world, the collapse of ftx, just where is sam bankman-fried right now, and what is exactly the real risk of spillover into other markets. 9 latest is coming up. >>> plus, target versus walmart. who will win the holidays? a new cowen note stick around what if “just an idea” could become a family tradition? this is financial security. and lincoln financial solutions will help you get there. as you plan, protect and retire. ♪ we all have a purpose in life - a “why.” no matter your purpose, at pnc private bank we will work with you every step of the way to help you achieve it. so let us focus on the how.

these are the names you've been buying these names, the amazons taking off, the microsofts are taking off, and so i guess the question right now is you think folks are just in there by ing knee jerk, sort of buying weakness for a trade or maybe there's something sticky about this. >> no, i think this is a little bit different. i think there are certainly some people buying for a trade but i think there are other people that saw these stocks that were completely dislocated for no apparent reason. yes they were raising money, i get it but they weren't dislocated because any one negotiation news, they were dislocated because asset manager s were trying to raise money really quickly and you can easily raise money in these stocks and they end up being dislocated so today's reaction, the market is really taking back all of what it lost yesterday and then some but it provided an opportunity in those big names that you and i have been talking about for the long term investment or so it's not surprising to me at all. i don't think most of it is a day trader. i think a lot of it is really putti

and why do you think it is so important that these stocks, the microsofts, apples, teslas, am zones bottom ounce dramatically before we can say the forward is in >> well, tyler, over the las year, you know, investors' focus has been on downside risk, what can go wrong there comes a point in every bear market or every single, where investors need to pivot their thinking i think we're approaching that point in this current cycle. why do i say that? how do we know we're at that potential pivot? when we go back and study bear markets, you know, one common characteristic of all bear marks is you need to see the largeers, strongest stocks out there you need to see those names become completely washed out, the high le speculative names, that's typical the first to fall real capitulation doesn't whap until you see that -- so take me back -- >> as you're using historical allegories, take me back to, then, 2000-2001, what were those superstar stocks that had to wash out 2008-2009, what were the stocks that had to washed out do you remember? >> you had ge, cisco, these are the names that held up the

do they really want to put back in our memory microsoft vista? and the disasters that came along with that operating system , and the hopping paper clip where everybody was like i don't need a hopping paper clip. i just want microsoft to work. so they are reminding us but it is hilarious so good for them. maria: adam johnson, lee carter great to be with you both this weekend thank you so much for being here and thank you, everybody for joining us this morning i'll see you tonight on wall street 7:00 p.m. eastern and sunday morning on fox news "varney" & company begins right now stu take it away. stuart: good morning, maria, good morning, everyone. business news seems to have been taken over by a couple of very well known characters who are absolutely wreaking havoc. mu

big tech gets a boost as well, apple, alphabet, microsoft all surging with amazon. which is up more than 13%. it is important to keep it all in perspective we'll break out individual names in a moment. if we zoom out, the wcld and first trust internet etf flat over the last month, chips and software with a bit more of a sustained rally. pretty remarkable. the words baby steps, john, have been used in the fed's long term goal of getting us back to 2. >> so much guessing on what the fed actually wants and is trying to do happening here and it's important i think for us to stay focused on the context. we gave viewers a little bit right there. amazon is up i think around 13% right now 9% for the week. but look at what these individual stocks and what some of these areas have done not only over the past day or week but over the past month. over the past quarter. what were earnings like? now i think the next catalyst perhaps is how the holiday season starts with just a couple of weeks away from thanksgiving, from black friday, from cyber monday there's the expectation tha

you're not partnered with microsoft. microsoft now is selling x box streaming where you can play straight up from a television. >> from the outside, it's odd because we build on amazon web services and we compete with them that's been true from the beginning that we compete with them and rely on them. then at microsoft, we rely on them on the ad sales, compete with them in gaming. that's normal. but we are focused partially in mobile games and we've done acquisitions there, which is a new thing for us and we want to have incredibly compelling mobile games that are really most mobile games have a lot of upsell montization strategy is to get you to spend money to get clothing or weapons or these things and that distracts from the engagement and our theory is we can build games just around engagement that are like really awesome. >> but you anticipate being in the gaming business on tv eventually >> sure, on tv and we'll have you know, lots of games that are mobile-based. some that are tv-based in a modern world like fortni

. >> so shannon, microsoft, apple, amazon, alphabet, those are all yours, too and i know you've been trimming them for the better part of a year is it time to sell them all together and move into other names or what do you think >> well, what we've tried to do, scott, in trimming, we've been trimming our overall technology exposure and i'm talking about sort of the technology sector. we continue to think about tech being a disruptive force across a number of sectors and industries, butthere's other ways to play it than just in the true technology sector what we have been doing, however, is diversifying as well i think if you look at the concentration in the s&p 500 coming into the pandemic, that was one of the major concerns. and so in order to diversify your exposure to technology not only from a revenue projection standpoint but also from a multiple standpoint, you know, not everything in the quote-unquote technology sector is, you know, at an outsized multiple compared to the index so i think there's an opportunity here to think rethink what type of technology exposure you have. h

charles: well, i remember it took microsoft 14 years to get off this. thank you very much, jared. i got something for you, jared. the brooklyn public library celebrating 125th year in business and put out the list of 125 post checked out books. what do you think the number one book checked out? >> harry potter. charles: stick around for the answer. it's where the wild things are. could you imagine that? they have like 140 versions of it in the library and they're always checked out. i got some great -- by the way, the twitter audience gave us good ones too. meanwhile, what's happening with ftx, folks, this is not isolated, it's not new, but it's got to stop. why i think this is the ultimate wake up call and everybody in america outside of a few elites are the victims of this stuff over and over again. let's stop it together. ♪ llormericacaca, , , m busysysyxa wiwiwi politquququbles a a a nenene and you nevevevet mit t t em. this i i ia liststst o o of prol d ftx.x.x.s eaeaeaof thehehe cro ink so walkekekeinith bld ananau birkrkrkstocks complplpleee abababnce ofofofruthorthy fina

microsoft has also laid off some employees including a group of about a thousand last month. for now, though, it's meta under the most precissure to make cuts after increased spending on its metaverse business shares down more than 70% for the year >> which obviously we know is -- makes it the worst s&per of the year >>> where should you look for value in tech as we move past the peak of earnings season? according to our next guest nowhere downgrading the sector to underweight is tech yesterday's trade. joining us is keith lerner >> great to be with you, carl. first of all we've been underweight communication services all year long for some of the reasons that were just discussed and with tech, it is -- it's been hit hard a lot this year. i think it's important for investors to zoom out a bit. even with this, you know, this year's down or decline, over the last ten years, tech has outperformed by over 200%. semiconductors have outperformed by over 400% and the reason why you buy tech, carl, as you know is because their earnings momentum this over the last few weeks we saw the

third, growing concerns the ftc will move to block microsoft's takeover at act sivision blizzad upgrading to a buy calling it an opportunity for investors. bring in cnbc contradicter, managing director of fx strategy boris, great to see you. first up, the trade on tyson your thoughts? >> so tyson, tyson getting hurt more on beef rather than chicken. the problem is that many of us feel that consumers are tightening budgets and moving down from beef 36% of tyson's revenues come from beef. at this point the stock is getting baby out with the bath water. unless you think there's something inherently wrong with tyson, one of the preeminent food producers in the world, i really like it here on a longer term basis though the stock can certainly wallo at these prices for quite a while. if you want to be an investor you probably want to be a little tactical one idea possibly you can sell 60 foots which would give you a 57 basis in the stock all the way through april of 2023 and then that actually gives you a very, very good price at a 3.3% dividend and you can wait until the macro picture improves

microsoft and j&j, microsoft was able to stay in the top ten but from 2002 to 2010 there was a decade where really it did nothing. so i think investors really need to think through which individual companies they own because i don't think those same names per se are going to be the drivers going forward. you'll have other tech names that come up and do better >> josh, brin brings up a great point because a lot of folks out there and myself included forget about the dead money days, so to speak, for some of these big names out there. and microsoft is one of them in this situation microsoft, apple, some of the names that have been the real kind of darlings over the last 12, 13 years is it fair to say there could be a chance it's dead money for a while or, hey, nay always come back and they have since arguably dot com >> there was this very aberrant moment in 2020 and 2021 where we watched the highest market cap stocks had the highest share price. historically there almost no examples of that and defied logic and a lot of that excess has been worked off this year. those stocks in 2020 an

amazon, microsoft, alphabet all moving higher, microsoft up another half a percent but meta/ facebook or the old facebook down half a percent, apple too down nearly 1%. let's take another look at disney if we can look at that up basically 9% as we say, ceo bob chapek out, bob iger back in, it seems investors certainly like this move. good morning to you, susan. >> so we are on track for the best day for disney since december 2020, two years on iger's surprise return, so moffettnathanson which is a highly respected media analyst and they love the news and upgraded disney stock to outperform saying it's worth $120 now. also remember though that disney has had a really tough year down 40% so far, and wall street, by the way, so the worst stock reaction to a disney earnings report in more than 20 years recently, so chapek had a really troubled tenure since taking over from iger in 2020. so many notable mistakes including that florida don't say gay bill, that was a disaster, the black widow fight, firing of a really popular tv boss, and then streaming $1.5 billion in that recent report car

so we'll implement cloud based microsoft modern work solutions like microsoft 365, teams and azure, so your teams can collaborate with zero trust security anywhere. [phone: destination ahead.] microsoft makes modern work possible. cdw makes it powerful. is it possible the only thought that comes to mind is... ♪ finally? this is financial security. and lincoln financial solutions will help you get there. as you plan, protect and retire. ♪ with powerful, easy-to-use tools power e*trade makes complex trading easier react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity >>> welcome back, everybody, hope you're having a good thursday evening. let's take a look at today's market euphoria, a day when the nasdaq finished up more than 7%, you heard that right, and the etf posting the best day ever for cathy woolard, worth taking time to learn how not to get caught up in the madness. time for trade school. professor nathan. you were talking about this earlier today, how should we approach days l

you know the names, amazon, alphabet, microsoft, amazon is up almost 11%. microsoft up 6%. alphabet and apple, up 6 and 6.5% some of the biggest gains in years. semiconductor stocks also being bid up amd, nvidia, western digital, all with 9 plus -- actually, 10, 12% for amd. this sustainable we don't know. that's going to be the question. there's probably a little computer action thrown into this, as well. unless investors just see their business 12% better because of a slightly lower inflation reading. i'll let you be the judge on that on the flip side of equities, yields, they're going down at one point, the ten-year yield was down 30 basis points we're back under 4%. there's this inflation print right here it's like that guy from the price is right if you went over, the alpine guy. an anyway, crypto is falling all of this bullishness bitcoin is up to 17,281. completing the hat trick or the quad trick, commodities are also moving higher. basically, it's the everything rally redux. there we go. let's talk about it all now. joining us to kick off the hour is brian railing,

stu: my old favorite, microsoft. awed generals please forgive me on this one but it's very important. microsoft now at $221. would you consider buying it at $220? >> yes, as a matter of fact i'll probably go buy some more this week. i think this company is not going anywhere. it's one of the world's strongest most widely held companies and customers won't leave no matter what. it brings people together from a software perspective. stu: amazon, it's down at $92. would you touch that? >> no, that got off my list in january of this year and we've avoided it ever since. i don't think that samson's coming back. stu: you trashed meta, trashed amazon but you have some support for microsoft and we're very pleased to hear that. keith fitz, thank you a lot. the opening bell is about to ring and we're going to start trading -- i'm going to call this election week. why not. there's an election this week and seems to be having some impact on the market. we're off and running almost. it's almost 9:30 on this monday, november 7. el

microsoft has dumb -- done say -- microsoft has done some layoffs, are you planning to do more layoffs and how are you thinking of spending? >> i think the most important thing for a company like microsoft is to recognize the role that we play. we are not in the advertising business to the degree that some of the other companies are. you're focus on providing the digital infrastructure that companies, businesses, nonprofits governments need. in a world with increasing economic headwinds, there are many, the kind of technology we create is one of the better tailwinds which people can rely and we are seeing that. to answer your question, we will continue to manage through this recession, the same way we have managed to with every recession since 1975. we identify technologies that will be important to the quarter in the year and the decade ahead. we will make sure that we invest and we may invest more in the technologies of the future, things like artificial intelligence. we may have to trim some other cost areas because it is a recession, but i think what you will do is see us trim if w

microsoft said it is willing to address regulator concerns. the european central bank is imposing higher capital charges. they have ignored warnings to cut risks. deutsche bank executive said that they do not agree with the ecb. that is your latest business flash. guy: thank you very much indeed. so we are coming to the end of the day in europe, light volume and the u.s. markets are closing early. they are open giving us a little bit of a lift but volumes are very light. stoxx 600 down by .2%. you are seeing a little bit of dollar strength, so that europe -- the euro is down versus the dollar. 1.04 and still nothing when it comes to the pound. what i want to flag is credit suisse. the stock is down again, and we are trading down by 5%. i think over the last five days we are done by -- down by 17% and the stock continues to be hit hard and it is an ongoing worry for what is happening surrounding this business. the stock weakness as reflecting the outflows that we are seeing in asia. when we come back we will talk about the european close and th

stu: microsoft, let's close it out with that. what can you do for me? >> the cloud theme, we're only 45% of the way there. that was a knee jerk reaction on a softer macro and numbers are set low and they exceed those and no better way to play the cloud theme, a $1 trillion theme than microsoft and our company in redmond. stu: sold, sir. sold indeed. excellent stuff. big board in business 6.5 minutes and up 50 points and that's a fraction 0.18%. dow winners, top of that list is sales force, you like sales farce too, don't you? >> i love sales force because it's another way to play the cloud. stu: intel moving up. how about that. s&p 500. solar edge. don't know it. dupont, norwegian cruise lines. now s&p 500. nvidia. susan: they're offering a chip alternative that can be exported to china. stu: oh, good stuff. republican liz cheney crossed party lines and endorsed democrat abigail spanberger for virginia's seventh district. i wonder what her opponent makes of that. i'm going to ask her because she's on the show a little later. president biden making a mes

i came into the week long home depot, long microsoft. you didn't name them, but long marvel technology, and last time you watched me about nvidia, i wasn't in it, i have been back into it, so i wrote about that the other day. they're very well-managed firms. would i buy into meta platforms? no, it's poorly managed. i i know the ceos, they have a track record, and when i dial in to that call, they sound really smart. they sound smarter than i am, and that's my gauge. liz: keith, your favorite name right now at a discount. >> oh, my goodness, bar none, apple. microsoft is a close second. again, i got that echo the sarge here. if the ceo can seem competent and he's leaning forward, that's ad good sign because a lot of see gross -- ceos right now have no idea what they're doing. liz: i if pulled that back in theth grade. market cap for apple, $2.37 trillion. great to see you both. sarge, keith fitzgerald, thank you so much. >>> as we look at it, 38 minutes before the closing bell rings. buffett's berkshire, speaking of a guy who says make su