all of ibm's relevant software is now in the ibm cloud. >> now, to schroeder's point, the cloud revenue clocked in at $11 billion. the problem is, ibm's core business is under pressure. you saw it throughout the results. down about 2%. global business services revenue down about 2%. technology services in the cloud platform down about 2%. scott, back to you. >> josh lipton, thanks so much. i've god to hand it to tony, first and foremost, before the results came out, said expect a messy quarter with a big headline beat. what has there not been a messy quarter in ibm? >> you'll get to be the number one ranked analyst in your space. >> i no, i love tony. >> there's a couple of things i take away. if you watch the masters last weekend, you saw a thousand mind-numbing watson commercials. it's about 1% of their sales here. they've got a big mess going on over here. the stock had a huge rally from 116 to 152. i think investors are a little offsides. i think the street is still very negative. do you know what the average -- >> 135. >> 138 actually. well below where the stock is trading. >> to y

let's start with ibm. this is a company in the middle of a multi-year transition that has to answer to investors on a quarterly basis. i'm wondering what you think investors will hear tonight. >> well, you're right. ibm is definitely in transition. everyone is going to be looking for evidence that this transition is in process. last quarter, their software revenue was a little bit weak and software encompasses about 40% of what they call their strategic imperatives. obviously we would like to see some improvement in the software group going into the quarter, and you know, right now, we are looking at 50% projected in terms of total revenues coming from this strategic imperative segment which is the cloud as a part of that within software, and then the question is can they continue to execute and show evidence every quarter that they're on the right track without losing people who say you know what, it's just not going to pay off for you guys. that's the challenge. >> a lot of these large cap tech companies

maria has been due with the ibm ceo. cfo. lauren: investors look over earnings from goldman sachs wrote this morning that the bank expected to posted disappointing result. analysts looking for a profit of two dollars 45 cents per share revenue $6.7 billion. minneapolis fed president neil fish curry speaking about the big things going on the government to break them out. he told liz claman told liz claman i count on to the closing bell that he does not want a repeat of 2008. >> we are running out of time. if we don't map well to still remember how that the crisis is common i'm afraid we will turn the chapter on this, tell ourselves the problem can happen again in 20, 30, 50 years from now in, 50 years from now we may face a terrible crisis. >> lashkar-e-taiba for increasing capital requirements for banks. nicole: time to get too caught up in the global action. one star in asia, japan kf 3.7%. though the other teams to china shanghai composite up shanghai composite at the third represented south korea's cost me one 10th of 1% a

josh is all over ibm. give us a little preview here to kick things off. >> when netflix reports all eyes will be on ids streaming video subscribers and whether they need or sur paez the nearly 18 million that would reach this quarter and we could expect particular focus on how many they project for the second quarter. also the impact of some price hooiks rolling out next month in the u.s. the company's forecast to grow revenue 25%, $1.97 billion while earnings per share are expected to fall. this is the company's global expansion as well as more original and exclusive conflict. we'll also be listening to see what is said about amazon's new offering. prime video service, stand alone for $9 a month. that's a direct attack on netflix and a dollar less. netflix shares declined about 3%. amazon shares are up 1%. we'll be back after the bell with numbers and the commentary from reed hastings. kelly and mike? >> you mentioned, too, maybe this significance isn't just so much to make a point of, hey, we've got to t

ibm is easiest to figure. ibm sank at $117 and turned around and never look back. this is ibm, the numbers are rarely what they seem between the charges and tax rate. not to mention the reclassifications of business lines, it makes you feel as if management is trying to confuse you. in reality, ibm is treating slow growth business lines. for much faster potential revenue and profits that have not been harvested. threw a combination of organic growth and acquisitions many these good businesses to be used in a way, now comprised 37% of the business. the additional thing for the buyers to get their arms around, is whether it's come from a shrinking pie. making the good businesses look like they're growing faster than they are. ibm has had to do a lot of highering. it does mean you can't reinvent yourself overnight. especially because ibm had to divest $20 million in sales. netflix is much harder, the company beat the numbers but offered quizzical guidance. how bad? they're looking for 3.5 million international subscribers. that's a stunning disappointment hot money co

are you a downer on ibm? >> well, look, we have been cautious on the stock for a while, because it is a very big company, and it is understood going a transformation, and there is a lot of at foot there, and when we look simplistically at it, and say, is the transformation occurring? is the revenue growth improving and the answer is that we have not seen it yet. it is very difficult to make a bet on the stock that is trading at about 12 times cash flow which is very much more expep issive than the comparables without really feeling confident that a turnaround is afoot. >> and tony a quick question, it is pete najarian, and looking at the legacy business versus the transformational side, and the security and the cloud and all of the rest of it, but at what point does it tip the scales? i know that it is right now 37%, and that is the only growth that ibm has, but because of that, when is that going the kick in? does it need to be at least 50% of what we are looking at right now this is >> well, look, that is t

ibm earned $2.35 a share. that's much better than the $2.09 expected. revenue also topped expectations, coming in at $18.68 billion. a more than 4% decline from a year ago. initial pop gave way to drop in after hours trading but ibm's cfo says there's a lot that's working. >> in the first quarter we had good progress in transforming our business. you could see that in our data, for instance in growing the strategic imperatives, double digit again. so we see that the investments we're making are certainly paying off, they're driving growth. >> jocelyn ton has more on ibm's quarter. >> reporter: $4 billion. that was one big number in ipm's report. that is revenue for ibm's so-called cognitive solutions segment, excluding software related to integrated cloud platforms and hardware. revenue there was down about 2%. and that is credit contractual since the segment represents about 20% of overall revenue. and david grossman does point out that adjusted for currency, that segment's revenues were marginally higher and that, grossman says, could be a sign that t

caterpillar, ibm and mcdonald's. ibm and caterpillar both implying a move of 4.5% and mcdonald's about 3.2%. we're talking about a move of about $6.7 billion for ibm, $2 billion for caterpillar and 3.7 for mcdonald's. and all three have things going on individually that make them particularly interesting to look at. >> i'm going to put you on the spot, but i know you can handle this question. for those three stocks, because the implied moves are either up or down, what is your guess? >> well, so this is interesting. of course caterpillar in particular dealing with the commodity super cycle, i think that stock was quite depressed. i make a bet to the up side. ibm, i'm having a hard's s seei how they are fixing. all call down. and mcdonald's, all day breakfast seems good, so i'll go up. >> ibm has had a pretty decent run. as has caterpillar are. the one that i would be most optimistic about is mcdonald's. >> agree. >> yeah, you know, what you got to go with the mcdonald's. it's had a nice breakout here. i don't know if

want to speak with you about ibm. big blue shares of dipping after-hours after releasing first-quarter results. the 16th quarter of revenue decline in a row. it is a company in transition having away from its software businesses with new growth and data analytics, cloud, and security. what is next for big blue? cory, i will start with you. waysame question here in a that we are asking about netflix. when will we see these investments that ibm is making hit the bottom line? co: $10 billion in investments in the last couple years in acquisitions. throw in the 0% 17 quarters ago and you have no growth for 17 quarters in the top line. they said they would be focusing on more profitable as mrs., but we are not -- profitable businesses, but we are not seeing that come to fruition. they have stopped their old form of delineating the different business units. we do not know how this compares to the last because they did not give us the numbers. they have a completely different structure. as a result, they want to start over a

why do you think ibm is going to be doing that? past performance is no guarantee of future success. >> no but ibm deserves some credit for two things. they have a tremendous global reach. and they have a very very good ip. so when you are a services company and you deal with technology you by default have to adjust to whatever the new technology are. the problem is that the businesses are so large is that the adjustment period could take years and that is what we've seen and whether you saw in the declining arrives. >> microsoft didn't become google and google didn't become facebook. i know they are totally different but it's nice to be big with all that reach and client base and everything else. but i don't know if it becomes a given that they will be a leader in terms of cloud and all the other stuff they are trying to get in. so you're in navifavor of the b backs to keep things rolling. you know, you are trying to get into these new businesses. it might be better spending on r&d or something other than just financial engineering

scarlet: a quick check on the after-hours trade of both netflix and ibm. netflix down by almost 12% after its forecast for international screening additions trailed analyst estimates. we will have more analysis on netflix after this. ♪ mark: a new nbc news wall street journal poll says hillary clinton's national lead over bernie sanders has two adult to two points. mrs. clinton is now supported by 50 -- has dwindled to two points. a nine pointhad advantage in a poll released just a month ago. the two face off in a crucial new york i married tomorrow. at the supreme court, arguments have ended -- new york primary tomorrow. court, arguments have ended over deportation of immigrants. could alterdecision the fate of millions of undocumented immigrants. vladimir putin and president obama discussed ukraine by telephone. talked about syria over the phone. the effort tod reach a political solution. u.s. airlines delivering water, bread, ready to eat food and other emergency supplies to a remote area of southern japan today after the region was hit by a powerful

you're also looking at weakness in ibm. we're looking at a higher from the broader averages, earnings news that came out the last hour or so, the market has come in a bit. we're off the highs of the morning and ibm will shave about 46 to 50 points from the dow jones industrial average this morning because it's down about 4% right nowment we're live from the roof of the fox business network studios this morning where it's primary day. voters have begun hitting the polls across the state and dagen mcdowell hitting the streets to see what voters have to say. dagen, over to you. dagen: hey, maria, i know it's busy out here right now. still no ted cruz supporters, but i have to give it to the voters that i've talked to, they have given a lot of thought to why they like their particular candidate. here is a gentleman i just spoke to. did you vote today? >> yes. dagen: who are you doing to vote for? >> trump. dagen: why? >> time we have a businessman in the white house, time we get somebody that economically understands what this

ibm is up a little bit ahead of report. investors expect $3 of volatility either up or down from ibm as a result of its numbers. netflix, other volatility, 6 1/2 bucks. let me give you a couple quick he details. ibm, look for cloud, mobile security, big data to be in focus. the numbers, $2.09, first quarter on 18.3 billion in revenue. ibm met or exceed eps in the next six quarters. amazon has competing product, netflix is struggling under the competition in the space. liz: lori, thank you. we need to talk about yahoo!. the clock is ticking as potential buyers interested in all or part of yahoo! need their bids today. new name flashing on the wires, possibly to jump into the unbelievable race as it clicks down, we have kevin kelly. y. , yellow pages. this is a company, yp. yellow pages. i didn't know they had this much cash on the books. >> this goes to private equity coming in really wanted to strip yahoo! of the big overhang they have. they're really bloated especially what they do with their platform and as well as their

if not, ibm could be in trouble. if so, not as bad as at lot of people think. >> and jon, also busy in miami as you caught up with legendary skateboarder tony hawk. what did he have to say? >> i talked to him a little bit about the partnership with sony on the action cameras, and of course, he is taking on gopro as far as that goes, a i asked him why he is excited about that. take a listen. >> i was excited to be partnering up with sony because of the camera history, and people say the gopro, but sony has the long, long history of the cameras and lenses and experience. so it was really fun to sort of sew people that there is another option there. i mean, between them and my partnership with many in the last couple of years, it is amazing, because i have had a whole new opportunity to be in marketing and advertising that i never dream ed of. >> and one of the most fascinating things about tony hawk, think about it, if you have never been on the skateboard, chances are, if you are, i don't know, 20 to 50, you know who

we built our business on the ibm cloud. because that's what the ibm cloud is built for. >>> all right, the super rich are sporting super watches. robert frank got one -- well, borrowing it. costs half million dollars. >> this is the rm 022. this is a half million dollar watch. tonight we're going to see an even more expensive watch for tennis star rafael nadal that sells for $775,000. check it out. >> the rm dif 27-02 is a mechanical watch built to withstand 5,000 gs of force and nadal's punishing back hand. the watch is made out of carbon composites and quartz, the same material used in formula one cars and space exploration. titanium and sapphire crystal also help make the watch life durable and water resistant. nadal helped design the pricey time piece. only 50 will be made. >> do you think that's a crazy amount of money to spend on a watch? >> for my point of view, yes. it's an investment at the same time. the cost will be higher in a couple years. >> it may be a crazy amount of money, but all of the versions of the nad

i'm not surprised that ibm was here. they and apple are some of the early companies among many companies but especially tech companies. ibm has always been in this space. it's not surprising at all for them to be here. it's going to just grow. we're doing a story now about a group of investors that refuse to invest in north carolina. it's going to have some repercussions for these industries. north carolina has a very vibrant tech industry in the research triangle area. we'll have a lot of repercussions that doesn't think tech is not an important industry and most silicon valley companies and other tech companies are going to bring a lot of pressure here and they should. as well they should. >> all of these companies have been vocal they don't believe this should be a law but it's different from what disney did in georgia because they were threatening to pull out future business. business that have not been ind yet and i'm wondering to what extent you think ibm, sis coe and a lot of the start ups can really afford to not

bank, netflix, ibm. where are your strongest convictions of clear beats or misses on how you are invested? >> i think the broad spectrum, you should think about the companies -- what american companies are good at are guiding expectations and managing costs against those expectations. i think earnings will wind upbeating as they have consistently since the financial crisis. i think the bigger question is can we see sales beats? and that is going to be much more organic. much more sustainable and much better. if you think about the sectors, you know, the financials certainly benefitted from low expectations. they gave mid quarter updates and generally their businesses have been better than they indicated they would have been if we were sitting here in the middle of february. and when you talk about technology names you mentioned netflix, you mentioned in earlier comments about others. you have to think about great news but not quite great enough and that really gets to be the trick. is the news what we ex

your show is going to determine the direction of ibm. >> all right. >> don't buy ibm. >> well, thank you. >> i could tell bob peck was a little down last night about netflix, because he knew all the price targets have to come down. when peck says now, now. katie, if you book her on the other half, you get the other side, ibm goes up tomorrow. >> you put the booking out already, so we're waiting to hear back. hopefully she's watching. >> how about illumina down 38. >> let's talk about that. a very weak guide, and the stock -- >> horrible. >> -- is just getting annihilated. >> i'm telling you thermofisher is crushing them. this is like they went into the legion of boom and they were the new orleans saints. remember that game? >> uh-huh. >> there they run into 12 men in every field, this was a terrible quarter for illumina. they make medical devices, they should have done much better. i don't know what that was about. they had their pants down -- that's probably wrong. they weren't ready. >> the stock is down 21%. >> the flyers so far really not even with the caps. >> i've noticed that.

ibm, you know, today, but qualcomm, you know, it's jpmorgan, it's a lot of staples, a lot of tech, a lot of industrials. i mean, it doesn't concentrate in a sector. >> tom, good to see you. >> great to see you guys. >> tom lee back with us. pete, what do you buy in this scenario, if you believe what tom just said? >> one of the thing you talked about is financials. i'll go to karen's favorite, bank of america. they reported last week the stock's been moving to the upside. they reversed after their earnings as well. today was higher once again. it never really followed goldman sachs. but yesterday, 82,000 of the july 15 calls were blocked. that's a real commitment there. when i see people step in like that, suddenly today, look, open interest 93,000, that tells me the financials specifically, those names that are trading underwater, in other words, you look at what this thing is trading -- >> low book? >> well below book. it's around 21, 22. stocks trading in the low teens. i think the opportunity there for growth is much better. that's why i've said time and time again, love jpmorgan

in other words, ibm is leading a worldwide recovery. the stock happens to be down for reasons that are not all that substantive. every day i hear that soil about roll the over. so do you, right? now there are hedge funds short everywhere. that's part of the charter. going into this weekend there was an expectation. they thought it was preposterous. they aggressively shorted the oil service stocks. then when it turned out there was no deal, it broke down sunday night badly. they trade as low as $38. that was just plain wrong. the futures should not have and oil has rallied up $4 since then. why? the doha media, it never really matters. i've been telling you. i've been saying what matters is supply and demand. now we're getting bored demand for oil in china has spiked fairly dramatically of late. perhaps by as much as 1.3 barrels a day. at the same time, it is yielding a lot less. 200,000 fewer per day. if you believe that china is a spent power, it is slowing much worse than expected, i can't help you. i think china is coming back. rathe

do you think ibm bodes badly for microsoft? kevin: where ibm loses, microsoft wins. you start to see them make big headways especially when it comes to the cloud. before, they were compromising margins and you are starting to see them come up and you are starting to see the options market. and the earnings move is anticipating a 5.5% move, which so it mayit above $60 break out to an all-time high. does that mean it's expensive for you to go in and do a call trade? the best way to mitigate risk is to do a call spread where you buy a call and sell another call higher above it. therek at the $60 because could be an overhang on that $60 price. $2.50 and it cost you about $.59. the most you can lose is that $.95. you don't have to worry about the market moving. inie: we will check back next week. thank you so much. we will be right back with more "bloomberg markets." ♪ hii'm here to tell homeowners that are sixty-two and older about a great way to live a better retirement... it's called a reverse mortgage. call right now to receive your free dvd and booklet with no obli

we built our business on the ibm cloud. because that's what the ibm cloud is built for. jim: second nine today at the masters. give danny willett his due, he shot 67. you see the actual time when these shots occurred. this was at 5:27. he's making his move right here. it was about the time spieth had just come off bogeys at 10 and 11. fired that in close at 14. it was 5:27. shortly after that, 11 minutes later is when the tournament took a sudden, abrupt turn. this is when disbelief set in, for everyone. his fifth shot. that led to a seven. in 50 minutes real time, it went from a five-shot spieth lead to willett in front. now, move ahead to just before 6:00, willett took aim at 16. then the birdie putt. then after spieth recovered with birdies on the par 5's, 13 and 15, had a great chance at 16 but sped by. so danny has been taking all this in. now it's just a matter of getting these last two in. and danny willett can head to butler cabin. jordan spieth is going to be, of course, in the role. it's going to be hard for him presenting the green jacket at the defending cham

shares of ibm were up a

disappointing results expected from ibm after reports after closing bell. he believes a large part of ibm's business is being affected by the cloud which represents 40% of the overall business. revenue is expect today rise, the video-streaming services facing surgeons that it can contain u.s. subscriber base after blockbuster last year. lauren: but they are raising prices. all eyes on new york, but next we will tell you why you need to keep on eye california and politics. >> in california, cruz has a real chance to grab enough congressional districts to stop trump from getting the overall majority even if trump wins statewide in california. lauren: a little later, it might feel like summer than spring in parts of the northeast. keep it right here in fbn:am, first look in news and morning s it's intelligent enough to warn of danger from virtually anywhere. it's been smashed and driven. it's perceptive enough to detect other vehicles on the road. it's been shaken and pummeled. it's innovative enough to brake by itself, park itself and help you steer. it's bee

ibm. they're going to be down. ibm is a dow stock and that loss that's coming up will cost the dow 50 points. we've been seeing a triple digit rally if ibm hadn't reported the lowest revenue in 14 years. now look at this, a robot from china. eerily life-like. they're calling it -- stop it, they're calling it a robot goddess. we'll tell you why they made it and what you can use it for. ashley: i'm sure. [laughter] >> like an eerie robot, like a democrat automatically. stuart: donald trump living in new york, and our next guest says it will be a miracle to get the delegates he needs. a delegate mass. ♪ all i need is a miracle, all i need is a miracle ♪ ♪ all i need is you ♪ ♪ all i need is a miracle, all i need is you ♪ hi, i'm matt mccoy. how long have you had your car insurance? i ask because i had mine for over 20 years, before i switched and saved hundreds with the aarp auto insurance program from the hartford. i was with my previous insurance for 30 years. but they could not compete with the hartford

people had a second thought maybe ibm wasn't that bad. i think any one of these four disappointments this evening, any one, could be a candidate for that same kind of action once the smoke clears. i like to think back to other times this happened. let's think about three years ago when we were at villanova, ncaa champs for the same starbucks quarterly report. live show college. it was almost the exact same day three years ago. so what happened? it reported a terrific quarter. but they yawned. that was enough to let the air out of the stock. it plummeted three points immediately. i was trying to figure out what went wrong in nothing more than what went wrong tonight. same amount, down three tonight. what happened if you kicked it out? you said i feel so much better, i couldn't take the pain. then it doubled in the next three years. doubled. doubled from where it was that day at villanova. sometimes history does repeat itself this could be one of those occasions. we don't know yet. we'll listen to what kevin johnson has to say before we dec

ibm is falling premarket. it forecast disappointing the and has suffered a four year sales slump and is attempting to move its business into the cloud. 16 straight quarters of the climbing sales cannot be very helpful for investors. unitedhealth group is out trading higher after q1 profits beat estimates. it is making news because it's pulling out of five states next year where is losing money because of obama care. says it's consulting business have helped overcome those losses. is only a 34 states and it will be less than 30 next year. j&j is another health care stock up after beating the street. it raised its full-year guidance. it expects to earn as much as $6.68 for the year. the street was looking for $6.54. the focus is on banks. all of the actual movement is in non-bank stocks today. it's a big earnings day and we are getting into the heart of earnings season now. jon: likewise in london and across europe. l'oreal is another one that is higher as well. the focus will be on goldman sachs for most of wal

ibm and netflix both already reporting yesterday. netflix topping the estimates on every metric. shares dropping after the firm says it expects to add 5,000 subscribers in the u.s. and two million in the second quarter. that is blow expected. part of the problem? the space is getting crowded. netflix ceo read hastings addressed the issue. >> there are so many competitors and everyone is working hard to build the best content. so we are seeing growth in the overall internet tv market. of course that is displacing linear tv. and it is natural that everybody is coming in as they realize that the future is internet tv. >> also reporting ibm and big blue earnings in arrive slid in first quarter though still beat expectation. but its older businesses are shrinking faster than new businesses are growing. shares dropping sharp lir in the market. yesterday some other stuff. and more to focus on and of course how markets opened following that oil volatility yesterday. >> incredible moves no doubt but a lot of focus on earnings. and same story on wall street. it is the guidance everyone see

ibm, 16 quarters. percent 17 quarters ago. and you have no growth for 17 quarters. they said this is what we would see. the problem is we are not seeing that come to fruition. they have stopped their old form of delineating between the different business units. we do not really know how this quarter compares to the last one because they just did not give us apples to apples comparison. they have a new structure to report different business segments. as a result they want to start over and they will get the chance. decline looks a little better but they had some currency benefit this quarter. the dollar is a little bit weaker. the strong dollar they had not been come -- that had been complaining about was not as much of a problem this quarter. emily: where do you see bright spots? >> you are seeing cloud business up 36%. the other areas, analytics, security, all of that is taking place. we have been talking about this for several quarters. smallers portion is than the legacy business, and this is why it is taking them so long. yearsl be actually a few when you see th

do you like ibm? >> ibm has had a really big rally here it's a cheap stock. they printed something like -- it's like 12 or 14 consecutive quarters of declining revenues. if the revenues start to grow at ibm, you should get two multiple point turn on it. and you can see how the sentiment can change on a name and microsoft was in the dog house for a long time and talking about the cloud business there. ibm has staying power, brn around 120 years or so. that's -- i don't think it's going anywhere. >> and with regard to intel, we heard about job cuts reportedly today. we've talked in the past how you like an amazon, not necessarily looking into other tech parts of the market but any read through there from intel with its own results coming up? we've also heard about apple, how maybe its product order growth is slowing as well. a couple of names there that people are trying to make sense of and figure out what the narrative was with intel specifically, what do you think? >> we don't own intel i don't have a take on that. we do own apple and apple is one of those n

it is sort of like putting together ibm and apple. >> reporter: chris is the editor of travel skills.com but -- blog. >> apple kind of the young and hip and ibm being the more staid an older established player which is alaska airlines. >> reporter: the merger will create the fifth-largest airline in the united states and may take up to two years to complete. travelers hope the virgin america culture does not disappear. >> it seems less kind of hip. >> reporter: it's his first time on virgin america. she uses of a lot. >> it seems like they care and take into consideration's and they were one of the first airlines that i flew that had wi-fi on all the planes. >> reporter: besides style virgin america brought low fares to several routes including denver and hawaii. >> overall for bay area travelers we will see fares increase which is an unfortunate byproduct of the consolidation in the airline industry. >> reporter: as for jobs it's a little difficult at this point to predict how it will play out. generally in these types of mergers the flight attendants and mechanics have an easier time t

stocks like big blue, ibm, apple, the biggest one of them out there. they still trade a discount of the overall sector. of course, melissa, there are probably reasons why many of these stocks do trade at discounts. now that's about whether or not the investment thesis overall for traders has changed for the positive as opposed to what it has been for some of these guys. back over to you guys, melissa. >> thank you, dom chu. >> let's talk about these. are they cheap for a reason or are they buys, guy? >> dom does great work. ran out because he probably had a golf ball or something. target is actually cheaper than walmart. >> giddy-up. >> brian cornell is the man. >> look at the move target has had over the last couple of weeks. it had a magnificent move. what's happening now? it's but thing us within a whisper. shrug off all the credit card and things they got themselves in trouble with a year and a half, two years ago. a name he didn't mention target is the one worth mentioning. >> did mention more than he did. good point by you. >> laughed at ibm and

ibm saw weakness that was causing them to cut work force overseas. this from qualcomm suggests it's not just an across the board story and weakness in demand. smartphone demand, x the premium here actually pretty decent, especially when you get out of emerging markets. no one size fits all in china either. >> we've heard that from a couple over companies as well. thank you, jon, so much. alphabet will headline another huge day of earnings on tap for tomorrow. we'll tell you what to expect. take a look at this calendar. oh, man. we'll be right back. you pay your car insurance premium like clockwork. month after month. year after year. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it? if you have liberty mutual deductible fund™, you could pay no deductible at all. sign up to immediately lower your deductible by $100. and keep lowering it $100 annually, until it's gone. then continue to earn that $100 every year. there's no

, intel, and ibm facing financial challenges. but up next, more traffic at the intersection of government and markets headlined by argentina's blockbuster bond sales. ♪ ♪ erik: this is "bloomberg best." i'm erik schatzker. argentina returned to global credit markets in a big way, selling more than $16 billion of don's. the biggest one-day issuance on record for a developing nation. we dug into the details of the bond sale and its implications going forward. >> after sitting on the sidelines for more than a decade, argentina is back in the global bond market in a really big way. the company boosted its bond sales to $60.5 billion. -- $16.5 billion. it marks the end of its status after it defaulted on $95 billion in debt back in 2001. they are selling more than they expected. >> absolutely. on the street, you are hearing the subscription for the bonds were five times oversubscribed, which is a lot. the majority of this money will go to repaying the holdouts. others who have held bonds from the last 15 years and have been waitin

that's what the ibm cloud is built for. mary buys a little lamb. one of millions of orders on this company's servers. accessible by thousands of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack. with the help of the at&t network, a network that senses and mitigates cyber threats, their critical data is safer than ever. giving them the agility to be open & secure. because no one knows & like at&t. icon after icon. classic after classic. and now, after 45 years, the rebirth of perhaps the greatest convertible of them all: the mercedes-benz s-class cabriolet. proving conclusively that there really is no limit -- or should we say, no roof -- on what is possible. mercedes-benz. the best or nothing. >> 1986 was a thurement i didn't expect to win. the players weren't scared of me anymore. they didn't expect me to win. >> maybe. yes, sir! [captioning funded by cbs sports division] [captioning performed by the national captioning institute, which is responsible for its visit ncicap.org] >> when i made t

we had ibm, intel. there was visa in there and verizon, which had a sharp move. that's interesting to me. one reason i've stayed away from trading the xlk because at&t and verizon are thought to be investive. now, i think the timing is really interesting to look at the xlk. next week, we have two stocks that make up 25% of the weight of this thing. if they disappoint expectations and trade lower -- they don't have to trade as badly as microsoft and google did. the trend is probably broken. xlk in particular, we have a one-year chart here. couldn't break out at the prior highs. i want to see lift on monday or tuesday. and the timing is important. before apple, if you think it can retrait a bit of the move, that's about $42 here. i want to look out to september expirati expiration. when the stock or the etf was 43 1/2, you can look out at september and buy the september 48, 38 spread and you get paid $1 for that. one of the september 43 puts for 175. the 43 point spread and sell at 75 cents. you make up the $3 between -- 2 1/2% from here. and you make three. down 8

there in the history of technology company, tech companies that are basically hardware companies, dem, ibm, at some point, the game sort of ends? i'm not saying this is it, but do they have to get beyond this thing? a hardware company is what i'm asking? >> yeah. they are experiencing their service business. you look at itunes, you look at apple pay. you look at their tv subscriptions. they are doing things, they did about 5 billion if revenues on that. that was actually up from a year ago. you know, it's a tough climb. but overtime, maybe that should become a larger percentage of the revenue mix and can help them cushion some of the pa curity we are seeing in the smartphone market. >> they were down certainly in after hours trading, dan. if, indeed, that selling continues in tomorrow's trading sex, would you be adding to your position in apple? >> well, see the way we look at apple is, something is on the buy list, it's something we would buy for new money that would come in, in terms of being committed towards shocks. it isn't something we would go down and double down on. we have a very

. >> it's like putting together ibm and apple with apple being the fun, hip, young virgin america and ibm being the more staid older and more established player which is alaska airlines. >> the merger could take up to two years to complete. no word on how it could affect employees. >>> well, this morning, the philadelphia wildcats are your national champions. they beat north carolina last night on the court. and as don champion reports, the game went down to the final buzzer. >> three seconds at midcourt. jenkins -- [ applause and cheers ] >> reporter: the three-pointer by villanova's kris jenkins at the buzzer proof every shot matters. it's being called one of the greatest buzzer beaters in ncaa history. fans watching on the villanova campus exploded [ applause and cheers ] >> we didn't just beat a great team, which this team, but a great program. >> reporter: the win was even more memorable for jenkins because he played against his brother in the game. the two met on the courts when they were 10 and quickly became friends. then in 2007, brit's family adopted jenkins when he needed a

we built our business on the ibm cloud. because that's what the ibm cloud is built for. mary buys a little lamb. one of millions of orders on this company's servers. accessible by thousands of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack. with the help of the at&t network, a network that senses and mitigates cyber threats, their critical data is safer than ever. giving them the agility to be open & secure. because no one knows & like at&t. long before any open stretch of highway... ...before hov lanes... ...roundabouts... ...and traffic lights... ...mercedes-amg vehicles start here... on a racetrack. introducing the all-new, 503 horsepower, 2017 c63 coupe. mercedes-amg. driving performance. jim: just getting those who are participating in the butler cabin ceremony all set. a day that will never be forgotten around here for a multitude of reasons. one of which is the action at 16. nick: yeah, we had some good fun and games here. this traditional hole location and everybody knows what can right line. jim: shane the

you could throw in ibm, too. five stocks that are the guilty parties for what you see as the loss of the dow 189 points. home depot, ibm, goldman sachs, boeing and, of course as you see apple. gdp, this isn't helping, showed slowing growth in the u.s. what's the play? right to the floor show, traders at the new york stock exchange, cme group and the nymex. ira, what are you attributing it to? >> it started last night with japan and hasn't finished and i was surprised we rallied back as much as we did. what i'm attributing it to? the market got back to where it started the year from, and i think it's run out of gas and the market is saying let's go below and see where the support is. there's been a change of psychology in the market led by earnings but more to work, higher prices, commodity is picking up a bit. people worried about central bank's action. i think it's correction time. liz: ira threw out bank of japan. japan did not add stimulus to market or promise of stimulus. that happened last night. there's a b

that's what ibm wants to be. >> what's on "mad" tonight? >> this week have great. we have lam research, nick pinchuk and starbucks, kevin johnson, k.j. you want to read through it, be my guest. i mean honestly. howard's in many places. >> he keeps the job as long as he wants it. but k.j., very candid guy. could be a fun call. >> we'll see you tonight at 6 p.m. when we come back, tom farley on ipos. don't go away. ♪ every auto insurance policy has a number. but not every insurance company understands the life behind it. those who have served our nation. have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life. that's like my grandma the kcooked, my mom cooked. i make a lot of banana bread because the baby likes bananas. (laughs) whatever home means to you, we'll help you find it. zillow. >>> good thursday morning. welcome back to "squawk on the street." some mild losses to start the morning, as the s&p has been pushed into the red. ecbs stays pat, claims