we have more on ibm's quarter. >>> the big take away for ibm is the company continues to struggle to transform itself. it's legacy business is still slowing while the company is still trying to grow its higher margin next general tech like cloud computing, artificial intelligence and data analytics. these businesses, which the company calls strategic imperative now makes up 43% of ibm's total revenue. though it grew at a slower pace the previous quarter than the one before it. it has not been enough to make up for older slowing divisions. big blue has seen more than five years of declining revenue growth. a bright spot, ibm reaffirming full year guidance despite some analyst calling for the company to cut it. for nightly business report, san francisco. >>> joining us now to talk a little bit more about ibm is chris. he is ceo of amplify. he owns the stock in his funds. good to have yo with us. we are not bullish on ibm due to monumental transformation they are trying to go through i can't remember a time ibm wasn't going through some transformation. when are they going to be tra tran

three big ones, ibm, csx and united ibm lower by 2% and csx higher and united continental is down by 3.5%. >>> president trump is urging lawmakers to let obamacare fail after republicans could not get the votes for a straight repole of the affordable care act kayla tausche joins us with the very latest. >> reporter: tough talk from president trump who is expressing frustration today with the lack of progress by senate republicans to move a repeal and replace effort or even a stand-alone repeal to a vote >> for seven years i've been hearing repeal and replace from congress, and i've been hearing it loud and strong and then when we finally get a chance to repeal and replace they don't take advantage of it, so that's disappointing. >> reporter: senate majority leader mitch mcconnell appearing though to least door open for a near-term repeal with two years then to procure a replacement program. >> it's pretty clear that there are not 50 republicans at the moment to vote for a replacement for obamacare. consequently sometime in the near future we'll have a vote on repealing obamacare, ess

great other expandability than ibm's pc. >> ibm's entry heated up an already volatile market. osborne computer was forced into bankruptcy last month. and apple, the industry's number one in small computers, had to concede it was now number two, behind ibm. >> all of a sudden, you were in an old-fashioned competitive business in which you really have to be better than the other guy. >> there are 150 micro computer businesses, and all of them want 10% of the market, and that just isn't going to happen. award winning interface. award winning design. award winning engine. the volvo xc90. the most awarded luxury suv of the century. visit your volvo dealer today and get up to $4,500 in allowances. [ rock music playing ] have fun with your replaced windows. run away! [ grunts ] leave him! leave him! [ music continues ] brick and mortar, what?! [ music continues ] [ tires screech ] [ laughs ] [ doorbell rings ] when you bundle home and auto insurance with progressive, you get more than a big discount. that's what you get for bundling home and auto! jamie! you get sneaky-good coverage.

it's aimed at exactly the same market as its competitors. >> when ibm started developing the ibm pc it needed an operating system. this young guy named bill gates had started a tiny little company called microsoft. >> bill gates was that unusual combination of a tech guy who was as good as the best tech guys but he also had a business sense. and he had a business vision. >> at the time, everyone was making it up as they went along. there was nothing that came before it. there was no personal computer industry. so when gates said to ibm how about this, we'll write you an operating system for your pc and we will get a cut of every machine you sell, and in addition, he made sure that it was not an exclusive license, that he was going to be able to sell this software to ibm but he was also going to be able to sell the same software to the other people because gates intuited that there were going to be people who would build knock offs of ibm, the pc clones. >> it was a genius move on the part of the bill gates who was still in his early 20s when he makes this decision. you've got these guy

he didn't bring up watson or ibm himself. additionally it is not just him that expressed skepticism about watson's capabilities. watson and associated revenue is at 3% of projected earnings, 5% in bull case barclays is saying the narrative has become tedious ibm does not break out numbers related to watson. what the ceo has called a silver thread that runs through a lot of things at ibm watson and cloud lots of talk on the cloud on the call it's called its strategic imperative the problem is that that is still not enough to make up for its declining legacy business and patience may be starting to wear thin among investors. >>> thank you very much. i think patience has been thin you take a look at the cloud revenue up 17% revenue line is 19 it's just not a lot even though that part is growing >> got to be half -- for ibm to make the turn it has to be half. this is a theme we've been talking about on this show not like we're breaking any ground here. ibm is now closer to a 52 week low than a 52 week high. justifiably so when yo

first to our lead, it is a hit and a miss for ibm. while earnings for shares are dropping after-hours after the tech giant came out with revenues that fell short. sales in the cloud platforms, as a key new area, but declined. its the 21st consecutive quarter that sales declined year-over-year. is our us from new york bloomberg intelligence reporter. this is painful when you are digging into revenue, because you are seeing year upon year of negative revenue. -5% in the second quarter. we can't see growth all the way out until 2018. this is difficult for ginni rometty. reporter: it is definitely a sore report -- sore point for investors.the companies have been transforming businesses to rely more on emerging technique is best technologies, whether it is cloud, ai, analytics. those usually do well for ibm, but it is legacy products that pull down the total sales. caroline: how did the so-called strategic imperative do? that is where the focus of growth is. why did we see the decline in sales, and particular in the ai unit? reporter: and

ibm underwhelming overnight. household goods 1% higher. i think we can say that's electrolux i think that's down to electrolux in terms of electrolux, shares seeing a boost after the appliance maker lifted its north american outlook the ceo. jonas samuelson will join us after the break. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. >>> just looking at shares in electrolux, 3.6% higher, 15% higher over the last three months hitting record highs after the company upgraded its north american market outlook, this as it reported a stronger than expected rise in second quarter earnings the appliance maker upped its north american growth target to between 3% and 4% citing strengthening demand an

ibm has numbers. second-quarter operating earnings share of $2.97 tops consensus estimate of two dollars for -- $2.74. billion -- $19.29 billion, a bigger drop than expected. estimate was 19.4 7 billion. 20.2 $5go, ibm booked billion in revenue. profitability was slightly higher than what analysts had been looking for, 47.2 percent for adjusted gross margin. analyst were looking for 47%. bottom line, revenue coming in a bit later, profitability beats. let's bring in an analyst who covers software. whate, let's start with -- we have seen in the last couple quarters. looking at ibm equity e.m. on the bloomberg here. that't find the last time ibm book to revenue gain. >> neither can i. the companies undergoing a massive valuation and two going into emerging technologies. some of those numbers are the numbers above 30%. because like -- china of legacy businesses still continuing. march inside a think is going to .e very interesting once we see where this comes from, it will be very important. as you menti

these are just, these are competitors the likes of which ibm has never seen before. and to outrun the legacy business it's slowing. the growth is slowing more quickly than originally watson don't come here i don't need you. >> but that's a key part of their strategy. >> it is artificial intelligence is an important component of what ibm services is going to offer. >> now another undercurrent is they can't get the ai people that you can get out west. i don't know it is difficult but it can be done ibm has not yet been able to make the transition the new business they're up against these companies. it's so easy to shift cloud to cloud. this is an amazon story in some ways it's another company that has been amazon when it comes to going in a cloud it is amazing that the list of companies can include kroerg and ibm. >> you could argue that he was amazon when it comes to cattleman's barbecue frank's red hot sauce was very interesting. talking about how much he loves it. >> how did you transition to that >> i mentioned amazon and i think that when you talk about the store

coming up, ibm betting g on cybersecurity. how big blue is planning to bring encryption to all of your data, next. ♪ ♪ caroline: now to another interview for you. the cyber security industry is booming. according to the market research firm, it will reach over 171 billion dollars global revenue by 2021 driven by fears of hacks and losing confidential information as attacks continue to rise. one key tech giant is betting big on cybersecurity. ibm announced a rollout of the mainframe capable of handling 12 billion encrypted transactions a day. it seeks to address cyberattacks which have compromised financial data. joining us to discuss from cambridge, massachusetts, ahead of threat intelligence for ibm. thank you for joining us. talk to us about the new mainframe. you are working with companies who want encryption. how big a revolution is this? >> this is a really big deal. this is the largest innovation on the z platform in a decade. what this involves is looking at encryption and how we make it pervasive. in this particula

dow was the willing ard today, weakness and ibm did weigh on the index. gained to 12,636, that's just a point below the prior closing high as for rt s&p 500, 24373 paced by vertex, by discovery. scripps, a couple of other names we'll circle back. same story and those were strong it's a nine day win streak now it's the first of those we've seen in a couple of years. going back to february of 2017, capping off what has been quite a year for that index already. 2015, i should say for the nasdaq, it's the longest win streak we've had since then. it's going to be another busy hours for earnings covering the results a z they do come in. judd ford, covering qualcomm and sima will bring us t-mobile's results when they come back. thank you, and we'll see you in a moment joining me on the panel. senior markets commentator here. along with brian perry who's at post nine with us, he's a portfolio manager based in san francisco with hennessy funds and ann joins us not that these are huge moves. the facts that we've had all three, call it all four if it weren't for ibm

fresco user emma sent us this video from the ibm learning center. ibm and the city of philadelphia teamed up for new program that strives to build skills in science, technology, engineering and math stem of course the event connects ibm senior consultants with girls from our area to teach t ♪ >>> so sean bell thinks the dallas cowboys are clue less. his commentary in 15 seconds. ♪ >>> dallas cowboys have no clue what they're doing. surprise, surprise, right? at least no clue when it comes to off the field issues. apparently, if you are a felon come play for us much it's all good. but if you're innocent you got to go. you getting released on monday the cowboys released luke key whitehead after he allegedly was caught shoplifting. but yeah there's one problem it wasn't him. on june 22nd a man in have a this man didn't have any identification but gave the police whitehead toss ,2s name, date of birth and social security card. how he got that, i don't know. he didn't show up to court so a warrant was issued for his arrest. fast forward to monday. wh

if ibm closes the gap from lower quality things like tax rate then ibm will struggle on it >> that's what warren buffet said back in may when he sold a third of his chunk, right toni can this company full-timely manage the transition of six years in the making? >> ibm is in a difficult predicament. revenues have gone to 80 billion this year. the out set is 21st straight quarter. the challenge is twofold the first is chief information officers are now spending externally they want to move applications off premise into the cloud ibm is an off vendor the second challenge is they have two very important platforms. mainframes and unit servers. they pulled in an enormous amount of equipment. software and maintenance and finance and etc. those are two really big structural challenges that ibm faces i mean you may make the argument that ibm is trying to go through the cloud as this point. are they too late or is the term too slow or is it too big to turn >> there is a lot of debt weight that are declining in the portfolio today. the bull issue narrative come frs the cognitive compute. the po

how about ibm? what's what do you take away from ibm >> they're really telling you it's going to be the 4th quarter and a lot of people are just getting tired. 4th quarter is going to be kicking in one month is all you're going to have for the mainframe this one. it may actually do well because it's encrypted and there's not a lot of ability to hack encrypted programs but you have to wait until the 4th quarter. let me go be in facebook and this is a business of have you done for me now. not what are you going to do for me in the 4th quarter. >> we got to go. >> thank you for the shout out melissa on canada. >> that's right. >> candy. >> and nvidia lives. >> candy might as well be tobacco. >> except for cow tales. >> get your forks ready the host of man versus food is taking on extreme dining he'll explain next [ indistinct chatter ] [ intense music playing ] it's here, but it's going by fast. the opportunity of the year is back: the mercedes-benz summer event. get to your dealer today for incredible

and they include some wynn resorts, amazon, celgene, ibm, tjx. >> july is not often a strong month, it can definitely be mixed. >> yeah, john, you're at one market all week long >> i am all week long. and we're certainly going to be having a lot of discussions about culture out here this is typically a week where some companies take some time off around the holiday, but good conversations to be had as people reflect, carl >> yeah, well, everybody, enjoy the fourth let's all take gratitude that we live in the best country in the world. let's get over to the "closing bell," which starts now. ♪ baby, you're a firework ♪ come on, show 'em what you're worth ♪ make 'em go, oh, oh, oh ♪ >> we had to >> you have to understand, i listen to tunes. i don't listen to words. so of course, i recognize that song >> this is katy perry singing "firework. happy fourth of july, everybody. well, a day early.

fresco user emma sent us this video from the ibm learning center. ibm and the city of philadelphia teamed up for new program that strives to build skills in science, technology, engineering and math stem of course the event connects ibm senior consultants with girls from our area to teach them coding. hello, peco. so i'm calling to see if you can help me save on my energy bill. we can do that. great. i live in a post-war, pre-war, mid-century home and the heating system is a turbine, hvac, reverse hydrogen, boiler pipe unit. well sir, i can see that you live in a twin and based on the size, your usage has been spiking. ♪ that's exactly what i thought. if you're not an expert, peco can help. we have lots of ways to help you save energy and money. peco. the future is on. ♪ >>> so sean bell thinks the dallas cowboys are clue less. his commentary in 15 seconds. ♪ >>> dallas cowboys have no clue what they're doing. surprise, surprise, right? at least no clue when it comes to off the field issues. apparently, if you are a felon come play for us much

ibm is betting big on cybersecurity. how big blue is planning to bring encryption to all of your data, next. ♪ caroline: this is "bloomberg technology." let's go straight back to erik schatzker with a special guest in boston. >> thanks very much, caroline. i am with david holyoke, levelheaded airbnb for business. apologies for the technical difficulties. we are back. we were talking about the partnership airbnb signed with concur. why is it necessary to crawl into bed with the established hierarchy in global business travel? the reason i ask is because there are so many companies that occupy that middle ground, all of which are taking something in the way of a fee out of the business you want to be able to do directly with your end customer. >> the answer is simply companies need to be able to have visibility for their employees. there's obviously a duty of care element to that. we are going to need to work through some channels to help them manage that. concur is the logical partner for that. onwill your inventory end

now you're ibm. i have to guess this is all about big data and watson, is that where? >> absolutely is, and that's why i'm so bullish and excited about the ability of companies now to be able to really leverage the effect of weather on their businesses like they've never done before, and it's really a function of scale. so, you know, prior to doing this, and i've been doing this for 20 years, becky, but it was with very small companies. we were able to make a difference in a small way, but now the scale, you know, we've got literally thousands of people all around the world that are sort of spreading this message, and on top of that we've got the technology assets and we've also got the data assets behind ibm and also now increasingly we're using artificial intelligence because that's where you really need to value out of this kind of data. >> you know, i think an awful lot about what this means for the retailers and big companies. is this a one-way street, or can consumers get something out of this, too? >> for sure. if you go shopping, you want your product to be the

we'll tell you what's driving ibm lower. >>> plus breaking deal news. discovery communications reportedly in merger talks with scripps networks we have instant analysis right up it's wednesday july 19, 2017 "worldwide exchange" begins right now. >>> good morning welcome to "worldwide exchange" on cnbc. i'm courtney reagan in for sara eisen. >> i'm dominic chu in for wilfred frost. >> we have taylor swift to start us off >> you're along for the ride it will be a fantastic day let's check what's happening with the markets we are seeing at least a little bit of perhaps recovery maybe some stability there in some way. the s&p futures indicated to open up by two points. the dow jones average down by 1 point right now. the nasdaq again showing signs of gains we were working on eight straight days. we got that yesterday. so now we'll see if we can build on some of those record highs for the major indices. the ten-year, we are seeing movement there we have seen a little bit of a trend higher eventually. now you can see 2.27 the last trade there. that down trend

ibm accounts 30 points of lose for the dow industrial. if it weren't for ibm, we would be up 40. take a look at the fabulous five, check them every single day. look at them go. facebook is up 3 bucks, is that today's quote? yes, t got to be. ashley: yeah. stuart: facebook up three bucks, look at amazon, $14 higher, microsoft, i own some, 73.30. alphabet also nope as -- known as google. the big 5. all time high for facebook. yeah, 163.83, that's the all-time high. just hit it right there. who is with me to go through fabulous fife? you're on camera. welcome back, long-time no see. the fabulous five. i think they are immuifn to -- immune to politics. what do you say? >> what they would love to see is repatriate some of that cash. stuart: they dent care. >> they can deploy it then. i agree with you, stuart, the underpinning of this market are these stocks that are bringing everything else with them. stuart: look at them go. >> quickly after g.w., the s&p 500 tripled or quadrupled. the s&p shot up. m&a deals. buybacks, dwi ends -- dividends went up. amazon has gone to rumor to fact.

i think they're more likely the ibms, oracles, the others. i think microsoft now has gotten themselves in a position where they're gaining significance in the share. it really a price war pushes out the marichal players, three, four, five >> david, thank you. what's your trade on microsoft tomorrow >> i understand at a certain point, you would say it's expensive on valuation, but it's a different company than it was ten years ago as well e so i think that they decerf that. >> in terms of the enroads of the tremendous growing any sort of business revenue by 97%, that's almost unheard of >> when china was growing for apples, 100% a year for a couple years, then it stopped now, it's declining. so these are great headlines they're doubles year over year, then the other point is that 50% gross margins is below the company average in the mid 60s, so you're going to see the growth moderate, the margin pressure and you may have a margin that's more in line with something especially with the businesses declining >> extrapolation to some of the other t

maria: lea thank you so much stock up 3%, of course, ibm down that is weighing on the markets a bit, we take a break whether we come back putting american workers first trump administration in middle of renegotiating north american free trade agreement labor leader james hoffa will join me with what he wants in the deal. >> 21st quarter in a role disappointing sales chipping away to technology giant stock down almost 3% what weighed down the results we check it out after this break. casper makes one perfect mattress. supportive and comfortable. premium foam layers. breathable for airflow. perfect rebound, plus perfect lift. pick your size, you get 100 nights to test it out. test the layers, be a layer, casper. so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every b

>> 90s or early '90s and all of a sudden i could just get on ibm's internet and i would be like this mainframe is this thing i need to figure out. i don't know what to do and someone from the japan would here is i do it i wrote that, so a couple things happen to. i still had like one tv channel and heavy center syrup, but all of a sudden i had a glimpse of a global communication would be like and also because i was still a teenager and like working at the company. >> is temporal? >> istanbul, yes. there was this who is this girl working here because back then things were more formal, but i experience the promise of internet, a place where people didn't know who you were you could talk. it's not like that anymore at all, but it was so liberating and i thought this is going to change everything and then the internet came to turkey and i was like sign me up, so i signed up and i got really interested in how this could be used to break censorship and how to-- i wanted to study the social sites i switch my major. i studied sociology. i use my programmer skills mostly to pay for college an

and you were doing this for a small dpaep called planalytics now you're with ibm. i take it it's about an litdic data. >> yes i'm so excited about companies being able to really leverage the effect of weather on their businessings like they never have done before, so it's really a function of scale. prior to doing this -- and i've been doing this for 20 years, becky. they were small companies. the scale, we've got literally thousands of people all around the world that are sort of spreading this message on top of that, we've got the technology assets and data assets behind ibm and now increase ily we're using artificial intelligence or cognition because that's where you really need to get to to get value out of this data. >> is this a one-way street or do consumers get something out of this too? >> for sure. if you go shopping, you want your product to be there, and you want to pay a price that's fair and to to that, what these technologies are enabling businesses to do are being much more efficient, having stock available, staffing the store, setting down a realis

ibm and qualcomm, a 4% johnson and jouin and united health, a more than 2% move. don't know which direction this should shake out, but it's a wild week. >> some of the most we may never get a straight answer for the first question, but the second one is simple. so over to professor ko. >> it's not that tough to do what the options markets are expecting for the future price move you want to look at the weekly straddle want to make a quick look at -- we do the math, united by the 157.5 or $160. one of the thipgs about netflix is that you see all of these big gaps in here all these big price moves. all of that came -- the thing is, this time, maybe not so much last earn, we saw relatively muted moves. september, 160 call spread we can pay $9.15 to get long that calendar call spread a very cheap price i like the -- >> a stock like netflix. mike when you're playing for it not that sort of move, but you're bullish, you're really saying you know what, i think it's probably going to come in there's other ways to trade it in that scenario i think it makes deny n netflix. i

ibm with second quarter results. lori rothman with breaking numbers. lori. >> nicole, looks like a mixed picture here. revenue was soft are than expected, $19.29 billion. declining revenue has been a big problem for ibm they have not reported rising revenue in like five years. the good news, earnings per share was stronger than expected, $2.97, versus the wall street expectation of $2.74. the company is saying that its cloud revenue was standout performing units of the time period, of the quarter with cloud revenue up 30% year-over-year. if you adjust for the changing value of currencies, dollar versus euro, dollar versus yen, looking at 32% increase in cloud revenue on adjusted for currency basis. give a quick check of shares. ibm shares are up, albeit very slightly in wake of this report. back to you. nicole: beat on earnings per share. seen that seven of last eight quarters, dave, markets after hours slightly higher for ibm. david: let's turn to chaos inside the beltway with senator bill cassidy. he joins us now. this is double loss for you, not onl

we had a partnership through ibm and apple and created a venture between our company and apple. i think it was the first time apple lesson there brian name to another company. after your so they decided maybe it wasn' maybe it was a mistake. they wanted to sell it only in apple stores and things like that. one day got a call and they said were out, we want to tear up the contract and don't like the idea of this anymore. or at least the partnership with you. was a scary moment and some of the company thought we working to make it. but that forced us to come up with a new brand name. so we called it america online. and the rest is history. instead of being a near disaster was a catalyst that drove the next wave of our growth. >> host: who is elwood edwards? >> guest: he's pretty famous. he is the guy who recorded on our software things like you've got mail and the welcome messages. he was husband of a woman, karen edwards who worked in customer service in the late '80s. overheard me talking about how do we make this internet see more engaging and friendly, not as techy as it was p

. >>> a guide dog school is teaming up with ibm, wall street's big blue, to determine which puppies are good candidates to serve as guide dogs for the blind. here's don dahler with big blue's clues. >> reporter: if there are two things that seem to be polar opposites, it's the warm exuberance of puppies and the cold intelligence of a supercomputer. >> watson can understand unstructured data. >> reporter: at guiding eyes for the blind, the two have been brought together. >> the incidence of blindness is increasing at an alarming rate. >> reporter: thomas lost his sight in his 20s. he is ceo of the guide dog organization. >> do all these dogs start off as a puppy, do they become guide dogs? >> unfortunately not. actually only about 36% of the dogs make it. >> reporter: the puppies need to be healthy, confident enough to take charge and make decisions on the fly, and most of all, they have to enjoy the work. >> that's a good boy! very nice job. >> reporter: for decades, guiding eyes for the blind has been accumulating data, some of it provided by puppy raisers like lorraine, who is also an

goldman, ibm. >> these are as they said in a cla classic star trek they're wearing cement golashes and i don't like it. some are saying maybe we're being too aggressive but i would tell you on the other hand don't sell on this what a fantastic call. i know sky works could be down a little i like the way they put that quarter together but we're going to be heard. there was a very quizzical downgrade of a couple of the high growth oils over at city. taking eog down is a mistake oxy not a mistake. they are very poorly run. >> ge is not just the biggest dow lagger but the biggest s&p which doesn't happen too often. >> now you're selling it before a new ceo comes in and i question the wisdom of doing that do you think john flannery doesn't see what's happening and says this is no good but there's people that say i want the middle market whose small and medium size business could do well look at cintas the largest uniform company in the world and they make it from small and mid sides businesses and it's on fire i come back and say do not give up on the american people and do not give up on s

that was being used to localize a machine which ibm had. i can really -- i could never figure what to do with the peer ibm-had an internet which meant it was a little internal internet and had to there is no internet in turkey, right? 90s, early '90s, and all of a sudden i could just get on ibm internet and i would be like this is the thing and did figure, i don't know what to do. maybe somebody could japan would say i wrote that here's how you do it. a couple things happen. i still had like one tv channel in heavy censorship. i also want a glimpse of global communication would be like. and also because i was still a teenager and like working at the company and does a lot -- >> istanbul? >> istanbul, yeah. who is this girl working your? actin things were more formal coming even among programs. but i had experienced the promise of internet as this place for people to know who you were and you could just talk. it's not like that anymore at all, right? but it was so liberating, and i thought this is going to change everything. and then the int

it was working for ibm, okay? and i was supposed to have project where they had a mainframe that was made before i was born that was being used to localize a midi-level machine which ibm had. i couldn't figure out what to do with it, and ibm had an intranet. there is no internet in turkey, right? >> '80s? >> '90s, right? we're early '90s. and all of a sudden i could just get on ibm's intranet, and i would be, like, this mainframe, there's this thing i need to figure to out. i don't know what i need to do. and somebody from japan would say, oh, look. i wrote that. here's how you do it. so a couple of things happened. i the still had one tv channel in heavy censorship, but i had glimpsed that. and also because i was the still a teenager and working at big company, and there was a lot of who is this girl working here? back then things were more formal even among programmers. but i had experiences the promise of internet as this place where people didn't know who you were, and you could just talk. it's not like that a

the mayor announced the partnership with ibm. the training program will link senior ibm consultants with students in seven designated schools. it's part of the united nations impact 2030 project. and don't forget you can support our schools from around the region. we are collecting donations and supplies to support projects in local schools. go to nbc 10.com to find out how you can help. >>> also tonight, car thieves have found a new favorite target. >> find out if your model is at risk and what they're looking for under the hood. >>> plus, hacking your health? the nbc 10 investigators ask why it took months tor local patients to find out their medical information was solen. >>> and suck it in. waist trainers claim to keep you skinny just by wearing them, but is the beauty worth the potential pain? we ask customers and doctors to weigh in. >>> queewe're not done yet, we more storms and heavy rain in the forecast. i'll have the details for your neighborhood, next fios is not cable. we're a 100% fiber optic network. and with the ne

also, the s&p 500 has hit a new record, mostly because ibm -- not a new record because ibm stock dropped more than 4%. it was a big drag on the dow jones industrial. a lot of records on the wednesday session. javier: in the midst of those records, we saw morgan stanley post quarterly results. now, we know how all the big u.s. banks are doing. what are the numbers telling us? jens: morgan stanley came in better than expected and gained 3%. most of the american banks surpassed wall street expectations, but not all is shiny, especially if you look at the trading environment in the fixed income area. all of the major banks had to drop that area by quite a bit. there is also some uncertainty regarding the future, because we do not really know what the regulatory and the tax environment will be. that could mean that a lot of big corporations are delaying big deals. that could be to the expense of big financial institutions. that overall, earnings season was rather successful for the big u.s. financial institutions. javier: we will see if that continues. thank you for the analysis. protesters h

plan out everything from right now is paul ng, even walsh, director of cognitive weather strategy for ibm business solutions. he's also a meteorologist. paul, it' g you. >> good to be here, becky. >> weather impacts retailers in different ways. if you are an apparel company and it's a cool december, that's a good thing, you can sell a lot of sweaters. if you're a restaurant company, maybe it's not so great for you. >> exactly, and weather is certainly something investors and business have been talking about and complaining about for a lot of years. in fact, in the investment community they talk about the term the weather excuse. >> obviously, a home depot would want to know if a storm was headed their way batteries, gen kinds of things, but you're talking about much more sophisticated things. what's an example of what you know now? >> for an example in terms of a pricing perspective, the weather is going to impact inventory as it relates to coach. you mentioned coach before. what also is is how the weather has been trending over the last three or four days. if you had three days of mild w

then there's big tech names, ibm, qualcomm, ebay and you already mentioned microsoft. there could be an updated volatility when all of these names report netflix, for example, is a notoriously big earnings mover the options market is implying a more than 8% move in either direction for that stock that's a big move. ebay is another big one. traders are expecting that stock could move higher or lower by 6% ibm and qualcomm are implying a 4% advance or decline. johnson & johnson and unitedhealth are predicting a 2% move it's going to be a wild week >> thank you, bob. >>> some of the most frequent questions we get from our fans are, one, why doesn't carter have a twitter account that's always asked. two, how do you calculate implied moves? we may never get a straight answer for the first question, but the second one is actually quite simple let's send it over to professor co with the call to action. >> square root of 2 over pi. skip that. it's not hard to do the back of the napkin calculation you want to take a look at the weekly straddle. take a look at the call option an

. >> ibm coming out with its numbers. second quarter operating earnings per share of $2.97 does top the consensus estimate of $2.74. revenue, however, falling short of forecasts, $19.29 billion. it was expected to be a drop, and it was a bigger drop. i can't find the last time that ibm booked a revenue gain. >> it has been a while, and as you remember, the company is undergoing a massive transformation going into emerging technologies and some of those numbers are fairly held. the cloud number is about 30%. it looks like the drag because of legacy business is still continuing. the growth margin expectations were slightly above what they were looking for. i think this is where the big story is at that point, a lot of the pricing pressure. >> how much more cost savings can they wring out of ibm? >> that remains the biggest question. if the growth margin decline doesn't stop in the next couple of quarters, will they have to take a lot more restructuring in order to have pretax income growth again next year, because that is s

like exxon and chef rorn on that list both have lost around 11% this year and of course, big blue, ibm still fighting to convince investors its turn around plans are working. it's down about 8% this year and yields around 4% as well now, if you're a glass half full kind of person, maybe you look at this downward move in prices as a way to see about getting more attractive dividend yields. in fairness, lower prices did contribute to the fact many of these stocks are even higher up on that yield screen, so melissa, these are dow stocks with dividends generally safe, so will traders use dividend yields as trade or investment time k factor we'll save that whole con v conversation for a later time. >> thank you >> buyer of any of those names steve. >> yeah, i would buy exxon chevron. i would start nibble there the worst, i know every time you try to pick a bottom in the energy space, it winds up killing your portfolio, but i believe you're going start to see these names tick a little higher as you see by the performance dom gave us, it's easy to lose that dividend. you're down 8% for a 5% y

the dow held back by ibm. revenue disappointing, but the dow up as well. i guess we can credit housing data. continuation of the trend where stocks seen to only go up. thelet: big tech one of contributors, the nasdaq at a record high, less than 1%, but uniform gains over fang names. we also want to bring your attention to some m&a euphoria. scripps network ending 15%, discovery 14%, viacom around 2%. discovery wanting to buy scripps. viacom held separate discussions with scripps. all of this consolidation as the media landscape changes. been leftanies have out of some of those new packages. earnings, morgan stanley trading came out the best of the banks, a contrast to goldman sachs where trading was a disappointment. back they 4%, holding dow average. joe: we have a trading halt on t-mobile, news is pending on that stock. ons, theto government u.s. two-year and 10 year yields , not a lot going on there. 10-year yields 2.27%. scarlet: the dollar holding near recent lows. this is a bloomberg dollar index, a fresh 11 month low. part of that is because the eur

block chains come up more and more often. >> i'm hoping that ibm talks about that tonight on the ibm call they have some big block chain business they don't identify it connected to bitcoin but it's really about block chain. and those are things that, yes, i'm asked about constantly i'm always hoped i'm asked about a common stock when i get really in the club -- >> demand for gpu cards, crypto currency demand is not sustainable. what happens if you have another 80% crash like you did in 2013, '14? >> that's why i want that hot money out of nvidia. real money should come in because of artificial intelligence, machine learning nvidia chips, people are using nvidia chips using artificial intelligence where they have a much lower, much, much lower default rate than people -- do you ever read oliver sachs >> yes, the man who mistook his wife for a hat. >> one thing that humans have over everybody else, they have judgment nvidia is making you feel machines have better judgment than humans. if oliver sachs were alive, doing that book now, you would have to say maybe i'm wrong and that the a

this report is written by a former nsa director and an independent analyst, retired ibm and also -- er, host: tell me your point. what are you trying to say? cia analyst.mer the point is the russian so-called hack -- it was not a hack, it was a leak from the inside. the dnc problem, what they did to bernie sanders, you

we had ibm typewriters back then. ibm typewriters made a lot of noise. and some of the speech writers like ray price we could headache the type sing when pat was working he could make the typewriter smoke. [laughter] i can remember because i shared the office with him the last year and a half, and i can remember next door when he was working on a speech, because he had his speeches always ones that were a little more on the attack side. that rat-a-tat when he was wielding the strongest weapon in the world, his word, and i was always trying to emulate that. but to hear that ibm typewriter just boom, boom, boom just knew that he was ponging out something that was going to be very important. he left his mark of loyalty to the man on this building but equally important -- he leaves loyalty to ideas and personal conviction. old man enjoyed pat and when we were here in san clemente, and pat and shelly would visit, and old man would be so happy to have pat there, and room was just pull if of laughter and gossip to bring back from washington and back and forth t

anchor: how much more cost-saving can they ring out of ibm? reporter: i think that is a good question. if the gross margin doesn't decline, that is something that they focus on. that is an area of focus for investors. ♪ anchor: let's get on to volvo shares. second-quarter earnings jumped 39%. they delivered more vehicles and demand for construction machinery increased. give me a sense of trump's infrastructure plan. are you starting to see the fruit of it? forecasts are still below demand from last year. guest: what we have seen and when it comes to the truck side is that our forecast with the is considerably better, and economic activity is generally strong. we are going up from 215 to 225,000 units. also, the construction side has grown as well due to small improvements. ♪ anchor: second-quarter sales growth in line with estimates this morning. revenues rose 3%. this is a business clearly very much in the nla crosshairs at the moment. the question is, does the current business model and plans going forward justify that? -- the mlathe i s

. >> well good environment, but one more stock that is ibm. they reported after the bell, they have missed, this is a stock that i think a lot of viewers might hold, buy, buy, sell or hold? >> sell, they keep missing, for some reason, i like to see accelerating earnings, and ibm quarter abou after quarter after quarter has been disappointing. this is big blue is disappointing. >> thank you so much. >> a plan to equalize income taxes in one major american city has critics saying nothing more than a scheme to unfairly tax the rich, you are going to want to hear this, stay with us. listen up, heart disease.) you too, unnecessary er visits. and hey, unmanaged depression, don't get too comfortable. we're talking to you, cost inefficiencies and data without insights. and fragmented care- stop getting in the way of patient recovery and pay attention. every single one of you is on our list. for those who won't rest until the world is healthier, neither will we. optum. how well gets done. people would ask me that we traveled,ntries what is your nationa