strong business sales for office and server products. shares jumped more than 5% and amazon revenue beat expectations. the retail giant's loss met wall street's forecast, the third consecutive quarter. the company reported a loss. back to you. >> very good. thanks so much. >> 4:48 now. christina loren is back and our stock seems to be rising around here. we got friday, we got the weekend, temperatures weep going up. >> you know it's a beautiful place to live. and it's going to be nice this weekend before we drop like a rock getting into next week. i want to thank you for waking up with us. this live picture over the golden gate bridge which you can actually see this morning. first time you can see the bridge at this early hour. all week long we've had the thick fog. this morning things are going to change a bit. with the lack of fog it's not as thick this morning. we have temperatures that are really dropping off especially from the north bay we are dipping into the 30s. make sure you're ready for that, cold condition this is morning. in

and microsoft looks like its doing good in sales of its office and server benefits. >>> you know the approval ratings of congress very low these days. there is one congressman being called a hero. what he did and how he helped rescue a passenger on a flight. >>> and halloween costume that could make you sick. the scary things doctors found lurking inside some rubber masks. >>> welcome back. the food and drug administration wants tougher restrictions on painkillers like vicodin. containing less than 15- milligrams of hydrocodone they have been classified as schedule three substances. however the fda wants those classified as schedule two. which makes them harder to get. the doctors are not allowed to call in for scheduled two drugs. they require patients to show a written prescription. prescription drug take back events will be held tomorrow at several locations in contra costa and alameda counties. unused or expired medications can be dropped off between 10:00 a.m. and 2:00 p.m. at most law enforcement agencies. there is no cost to drop them off either. organizers say improperly disp

that runs the plumbing of global business, 750 million office users around the world. this is a very core part what goes on in the enterprise world. enterprise is not a sexy story relative to ipads and gadgets for consumer. >> let's go to one more story stock. amazon, you can't hold these nice down. they want to consume everything in the universe yet they're skimpy on profits. that stock seems to keep going up. >> i mean another play where bezos invested in innovation. they have innovate ad lot of things. it is a huge, capital expenditures they have in investing those things have always been since beginning of time have been very large. today they're the number one cloud computing platform definitely priced into the stock going forward. there may be things with respect to where microsoft is going and dominating them and leapfrogging them from number one or two position going forward. amazon is weak on retained earnings and heavy on reinvesting that stuff into innovation an capital expenditures. dennis: if you bought the stock and ride it up and sold it, bought it again

now, you've probably seen those out of office auto rely whuz send e mail. but there is an auto rely for smart phones about to be used while driving. microsoft launched a drive mode for windows smart phone drivers can sign in when behind the wheel. the phone will send a reply but in callers know you're too busy driving to safely pick up or text back. the goal? cut down on distracted driving. >>> coming up at 6:00 showroom mod yes. you go to the store find a sofa, it's not quite what you tested. you'll see how we got one company to get off the couch and help a consume year nice. >> thank you. >> sure. >> back to breaking news now. the ac transit strike threat. the governor appoint aid committee saying quote a strike will if permitted to occur will disrupt public services and endanger public health, safety or welfare. ac transit workers were planning to likely go on strike after midnight tonight. and have voted down two delays. the governor could dot same thing he did with barkt asking a judge to issue a cooling off yood to give leaders two more months to nego

for the right to disclose the scale of their cooperation with the agency artie's lucie county office more. in the wake of the u.s. national security agency scandal much of the tech industry has been critical of government snooping some companies named as partners in the n.s.a.'s prism program including google and facebook even sued the u.s. in order to set the record straight they're hoping to fight the perception that the n.s.a. has direct access to their servers but transparency might come with financial incentives the snowden leaks prompted dire warnings from internet giants predicting that american businesses would lose tens of billions of dollars in revenue abroad as scared users turn to local alternatives one industry nonprofit survey found that ten percent of two hundred seven officials at non american companies canceled contracts in the wake of the leaks fifty six percent of non-u.s. respondents said they were hesitant to work with u.s. based cloud computing firms some researchers even predicted the cloud computing industry as a whole could lose up to one hundred billion doll

this is an interesting time for microsoft. do not know what their board is considering but when i look at their product line, i see a lot of strength in the advertised area, windows, office, and so one of the things i have come to appreciate is i think consumer executives and enterprise executives have different traits and different instincts. i would hope they are looking for people who are really strong. a strong microsoft is good for the industry overall. that is helping to build strength and competencies. >> would you like to see bill gates comeback e >> he is a phenomenal leader. there is nothing quite like the passion of a counter in terms of leadership. >> you are turning into a real diplomat. being ceo means you have to say things more carefully than you are sometimes used to. what is your biggest weakness as a ceo? what do you suck at the most. you have things that are great about you that everyone understands. what are you terrible at? i have been really lucky. there is a community i know that many ceos in the audien

this is an interesting time for microsoft. i do not know what their board is considering but when i look at their product line, i see a lot of strength in the advertised area, windows, office, and so one of the things i have come to appreciate is i think consumer executives and enterprise executives have different traits and different instincts. i would hope they are looking for people who are really strong. a strong microsoft is good for the industry overall. that is helping to build strength and competencies. >> would you like to see bill gates come back? >> i think that he's a phenomenal leader. i think there is nothing quite like the passion of a founder in terms of leadership. >> you are turning into a real diplomat. i'll tell you that. being ceo means you have to say things more carefully than you are sometimes used to. what is your biggest weakness as a ceo? what do you suck at the most? you clearly have great things about you that everyone understands. what are you terrible at? >> i have been really lucky. there is a c

this comes from on microsoft, too, touted as everything the ipad is not, attaching keyboard, many hdmi. >> the next version, they're going after the professional, whose at the office doesn't want to carry a laptop or somebody who does a lot of work on their tablet but also something they can take to the couch and do some web suffering -- web surfing geared towards another audience. >> the nokia is more of a consumer focused device, more casual. he points at the nokia doesn't have the benefit of apple's 60 billion apps. >> ipad is used more than any other in the world. >> an 81% share, not so fast stephens says. >> depends how you look at it. android are close. >> there are more ipads in use than other tablets and the market is now shifting towards android. everybody wants the right one. >> there's something sparkly and special about a new ipad. when you need for business you need those usb things and others. ipad has that if you want free shipping from amazon, you'll have to spend more. the prime service costs $79 a year and offers free two-day shipping. this is the first time amazon's

when does, office and with those products look like. one of the things i've come to appreciate as i do think consumer executives and enterprise executives have different traits in different stinks so i would hope they are looking for people who are strong on supply-side business. microsoft is a strong industry overall and i think that helps build on their strengths. >> would you like to see gates combat? >> i see in case of phenomenal leader and i think there is nothing quite like the passion of a founder in terms of leadership. >> you are turning into a real diplomat. i will tell you that. being a ceo means you have to say things more carefully than you sometimes used to. i'm not commenting on that other than that. what is your biggest weakness is a ceo? what do you at the most? clearly there are great things about you that everyone understands that what are you terrible at? >> i think i've been really lucky. i know many of the ceos in the audience who who have arranged startups to big companies. ceos do want to see each other succeed

sales of office above expectations. >> no, office actually from the consumer side is down probably 20, 25% on the consumer side. >> what about business? >> business was up. it's mostly, though, when we talk business with microsoft, it's their server and enterprise products. so it's more where they compete against oracle and database. >> just specifically on office, he would say that ballmer has made a major error in not making office ubiquitous and mobile. what's happened this week very importantly, he's not putting out his out to he can sell more tablets. tim cook came through this week and said our own office suites will be on our products for free. are they going to on office a long time ago for other platforms, instead of trying to protect windows, go after the market opportunity. of a half of the consumer office uses we might very well buy office for that device. that's really where iworks will be competitive. if i were new management, i would probably by jefr note. let's exploit the tablet opportunity, the native tablet opportunity for lightweight, collaborative kinds of organiz

. >>> microsoft reported earnings today up 17%. that beat forecasts. the company says it saw strong business sales of its office and service software products, offsetting weakness in sales of its window system. shares jumped more than 5% in extended hours trading. there we go. and currently down slightly at the moment. zing ya shares soared nearly 13%.ynga shares soared nearly 1. that's about half of what analysts were expecting. this is the kch behind games such as farmville and words for friendses. it's saying it now expects a slim profit for the full year. >>> away from games to games of a different sort. they would lead negotiations to recreate after it was claimed angela merkel's person mobile was hacked into. >> i think the most important thing is to find a basis. trust needs to be rebuilt. trust is barely shaken. the members of the european council have shared those concerns today. >> speaking in brussels, france's hollande condemned the alleged access of the u.s. secret services. >> there are some behaviors and practices that cannot be accepted

results were helped by shares of its offices and server sales. we're going to talk to an analyst who covers the company at k67 40 eastern time. amazon reported results, as well. sales grew by a better than expected 24% which investors say bodes well for results this season. we will talk to an amazon analyst in just a few minutes, as well. let's take a look at today's calendar. the commerce department will release two reports. durable goods for september. coming up at 10:00, we can wholesale trade inventories and consumer sentiment is worth talking about. andrew, good morning. >> thank you, becky. we have corporate buzz this morning, including wa joe was talking about, including twitter's ipo is now pegging the valuation of that company at a modest $11 billion. they want to he avoid a repeat of facebook's troubled debut. maybe they're pricing it on the low end. twitter plans to sell $70 million between $17 and $20 apiece. the stock could begin trading as soon as november 7th. so mark your calendar. >>> in other ipo news, i don't know if this is a

microsoft is not on that list. the obamacare medical device tax one of the most controversial provisions of the bill costing taxmakers, make health care more expensive for everybody. steve ferguson joins us now. when you get hit with the big new tax you pass it along to the consumer, the buyers of your product. can't you do this with this so avoid hurting your company? >> hospital under tremendous pressure. to make clear, to be passed on. wage increase material increase, material increases which they are now one thing to pass on very clear. stuart: you make 16,000 what are called medical devices, medical employees. is it going to break you? when you laid people off because of this? >> what we have done, and a big -- and only two choices, employee, a hardy and capital. and reduce capital we will build five new plants in the u.s. in the near future. we put those on hold. stuart: what do you think that might be abandoned? and the medical device tax. what do you think the chances are that you will get rid of it. >> we

that's really what's defined microsoft ever since it started. and that's really at the core of what we're going to do. we don't think about it as consumer business or enterprise business. take something as office, it's relevant to us on a daily basis as a consumer and it's relevant at work. it's that combination that's unique to us. >> yes. >> we were the consume urization of i.t. company from the beginning and we think of that trend, a big trend for us to go forward as well. >> you have an insight obviously unique insight into what the atmosphere is like at microsoft at the moment. how it needs to be led. does it need an alan mulally coming from ford? a more social media person like marissa mayer or somebody like you with your proven existing skill set as an insider? what do you think will best take the company where it needs to go? does it need to redefine who it is? >> i'll answer the first part of the question, what is the mood like at microsoft? the mood at microsoft is bullish. if you take even just the enterprise opportunity and when we s

i think it is an interesting time for microsoft. i do not know what their board is considering, but when i look at their product line, i see a lot of technique -- windows, office. in terms of what these products look like. one of the things i appreciate, i think consumer executives, enterprise executives have different trades and different things. i hope they are looking for people who are really strong on the enterprise side. a strong microsoft is good for the industry overall. >> would you like to see gates come back? >> i think he is a phenomenal leader. there is nothing quite like the passion of a founder in terms of leadership. into a realurning diplomat. i will tell you that. being ceo means you have to say things more carefully than you sometimes used to. what is your biggest weakness as a ceo? what do you suck at the most? things thatearly are great about you that people understand. what are you terrible act? >> i think i've been really lucky. there is a community i know -- rangeeo's feel like they from startups to big compa

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