tv Squawk Alley CNBC October 27, 2015 11:00am-12:01pm EDT
good tuesday morning. welcome to "squawk alley." carl is in boulder, colorado, in the war room gearing up for the gop debate. john is live at oracle open world, and san francisco. he has an exclusive interview with oracle ceo co-ceo, we should say, safra catz later on. a rare interview. we're excited to hear what she has to say. joining me simon hobbs. simon, thanks for being here. >> pleasure, kayla. >> one of today's top movers as we said at the top of the shower. alibaba. soars at the top and bottom lines. highlighted by a strong performance in mobile, and a strong performance in the cloud. the company reported about $1.6 billion in local revenue. nearly triple what it reported last year. stocks currently up 4.5%. it's since lost about half of its gains so far this morning.
plus, it's a tough day for grub hub elsewhere in earnings. shares of grub hub right now down 17%. that is much better than they had been trading earlier this morning, but profit at that company missed expectations, and the company's revenue forecast for the current quarter also came in lower than expected. of course, we have 169 companies in the s&p 500 reporting earnings this week, but the biggest one we are awaiting is apple. today reporting after the bell and shares are up slightly this morning. more on what investors are expect from the tech giant. it's great to have you, gene. i want to jump right in because you think the biggest wild card is not what it's going to report this quarter, but it's the guide for the december quarter. don't we already know that last december was the better quarter
ever? >> the expectations keep on climbing year-over-year. the december guide is critical, and it's going to give investors apple's first read on how the s-cycle is going, and that's been on the mind of investors for the last nine months. it's to figure out what the next -- the s-cycle looks like, and so, yes, december is obviously a big quarter, but this one there's a particular amount of anxiety for investors going into it for that reason. because you only have about two days in the september quarter where these phones were actually on sale, but you do have the upgrade program. i'm wondering how you think both of those two items will play into the iphone numbers that we'll see. >> we think that the high end of the guidance will be in line with the street's. the midpoint will be a little below the street. it's typical for how apple guides. when you kind of put it all together, if you want two numbers to really focus on, it's 74 to 77 bell yon.
>> it's a slow affect in december, but it continually impacts over 2016 spshgs we think that can add somewhere around 5% to 7% to each quarter. this is a big deal, and if i was an investor, my perspective on how the compression of the iphone upgrade cycle is going to play out in the next year is going to be top of mind in terms of how this is going to impact the stock. >> the dialogue and it's a component supplier lower their guidance about 70% of their revenue comes from apple, and they lower their guidance from december.
i think that really shook investors' confidence of what apple is going to say tonight. if you look deeper, it basically suggests that the iphone demand for the s-cycle, at least the first quarter, is going to be down a little bit to up a little bit. what's going to get the stock to go is going to be investors feeling comfortable that this s cycle is going to be more or less in line with the previous cycle. then they can start to shift the focus to the seven, which is premature to be talking about it, but within a few months that's going to be the big focus. it should result in a higher stock. >> we've come to accept this company as an iphone company. it's pretty much the central point of any conversation about apple these days. could anything in other move the needle, whether it's watch, music, pay lumped into that big
bucket? are we expecting any of that to be material to what apple does? >> it's going to be measurable. it will be small but measurable in the december quarter. that should add about a percent, and then you get the benefit of the ipad pro which adds about a percent. there's small numbers. when investors hyper-scrutinize the numbers, anything in the positive direction is going to be good. as far as really things that can change the model, it's around august meanted -- and cars longer-term. >> apple as familiar as any company with hyper scrutiny. we'll see what they say on the call tonight. we appreciate your time this morning. >> the height of earnings season. shares of ford slepg after profits missed analyst estimates. our own phil lebeau is live in colorado springs talking to the cfo. take it away.
>> you fell a penny shy of estimates coming in at 45 cents a share versus the street at 46 cents a share. you have record north american profitability in the third quarter. how much of that do you attribute on having a fuller supply of the f-series? >> we had not only a record in north america, but we had a record third quarter for the country. north america was the third best ever. we had full availability in the quarter, but we had great performance from the explorer, from the edge, and the mustang as well along with some other products. a health where i business structure. great top line growth. a margin over 11%. hitting on all cylinders in north america. >> and i know you are guiding towards margin for north america to be on the high end between 8.5% and 9.5%. there have already been analysts out today saying, you know what, we're a little concerned that fourth quarter may be soft. what do you say to people who are concerned that you might have a soft fourth quarter?
>> yeah. the fourth quarter is going to be very, very strong from a year-over-year basis. it will be a little bit less than what we saw in the second and the third quarter. that's going to be drin by seasonal factors around cost, which we normally see go up in the fourth quarter. sequentially versus the fourth quarter. at the end of the day we're going to have a strong fourth quarter on top of the outstanding second and third quarter. full year we expect to deliver our guidance. everything is looking great. >> i want to read to you a tweet that i got from somebody this morning after we announced your earnings. this person tweeted me directly and said i'm tired of ford record earnings, and hearing about record earnings and yet the stock is stuck in neutral. i know it's not your job to move the stock higher, but for a lot of people who are looking at the automakers, the oem, so to speak, and wrurnding whaits what's it going to take for more enthusiasm to come into this group? >> i think we just had to continue to deliver a value, and that's what we're doing in the business. we're growing the top line. we're growing the bottom line,
the cash generation that was also a record in the quarter. it's very positive. in the u.s. which is critical for us and for many in the industry, we don't see any signs whatsoever that the industry is going to be slacking off at all from the very high levels that it's at. we see gdp at 2.5% for the next several years. >> could you quickly clarify the situation involving donald trump? he has been out tweeting that ford is moving production of the super duty truck back to ohio at his urging because he has been basically hammering you guys over having production down in mexico. you have come out as a company and said repeatedly, we haven't had any discussions with donald trump. tell me what exactly the discussions or relationship at all between ford at the headquarters and donald trump? >> i don't tweet much, but i do deal with facts, and the facts
are that we've never discussed anything with mr. trump. >> way back in 2011 it's part of our uaw agreement that proceed preceded the last election. not to mention this one. you know, the facts are that there's been no change in our plans. there has been no discussions with mr. trump, and he is mistweeted. >> bob shanks, sko cfo of the ford motor company, setting the record straight on whether or not ford brought back production of the f-series super duty trucks at mr. trump's urgings. there you have it. ford falling a pen where i shy of estimates. 45 cents a share in the third quarter versus the estimate of 46 cents. back to you. >> as he said, predating even the last presidential elections. essential interesting to have him on the record saying that we appreciate you bringing that interview here to us. thanks, phil. when we come back, shares of t-mobile lower today on earnings
as the company moves from the nyse to the nasdaq. john ledger will join jim cramer in a first on cnbc interview. plus, oracle's open world continues out in san francisco. oracle safra catz joins john in a cnbc clues swrsh we're just one day away from cnbc's republican debate in boulder, colorado. we'll go there live for what to expect when the top candidates hit the stage. "squawk alley" back in a minute.
oracle ceo safra catz, your first u.s. interview, first interview certainly as ceo. thanks so much for joining us. you are making some news this morning. we're going to talk about education. we're going to talk about women in tech. we're going to talk about strategy. first, education. oracle is moving a public charter high school, design tech, in san mateo high school district, union high school district, on to its campus. you're building them a school. tell me why you're doing that? >> it was an opportunity for us. we met the folks from d tech high school a while back when we worked with them in their intersessions volunteering teaching kids to think
differently. this resonated so much because it reminded me that larry ellison asked me when i first joined oracle if we could have a high school at oracle. when we met the d tech people, the d tech philosophy about thinking creatively, about solving problems, about working in groups, i thought this is it. they've finally come together. larry's original activision in this high school and to put it on our campus. we were going to be able to really advance the agenda for science, for technology, for math, education, for everyone. >> now, this is coming just a week after dr. pris i will wra and her husband, mark zuckerberg, announced they're starting an elementary school, a private school in east palo alto. there are other rumblings about other tech companies getting more hands on involved in education. why is this happening now?
>> it is absolutely critical for competitiveness in the united states for us to really raise the bar in education. especially in math, in science, and technology. i'm absolutely thrilled about what mark and priscilla are doing, and what everyone is doing. more the merrier. it's why i wanted to talk to you about it. if everyone does more, we're going knto be in a much better place. >> let's talk about women on tech. you are high on the fortune's list of the most powerful women, ceo of a major tech company. when i first got to silicon valley in 1999, as did you, from the world of finance, there wasn't a conversation about diversity. the line was it's a meritocricy. everyone can pull themselves up by their own bootstraps. is that self-image of silicon valley is we don't have a problem. is that crumbling now? >> i think what is really crumbling is any kind of
barriers? now we've got a whole bunch of women ceos. we bring a different perspective. we bring an 0e7ness, and we all of a sudden see the opportunities and we're trying to advance more and more women. i have many women on our leadership team at oracle. it's really fantastic, and they bring something additional to the game. whether it's women or it's minorities or other under represented groups, getting the best out of people when you have a whole population to choose from is how you solve the hardest problems. >> we're in an interesting time in technology right now. the cloud seems to be all people talk about at enterprise tech conferences. you have been through and driven a number of major transitions over the past 16 years that you have been at silicon valley in tech. one of them that i remember is oracle's acquisition of peoplesoft. hostile takeover. people thought it wouldn't work. they thought what is oracle
doing. even founders said oracle has done a pretty good job with that. >> they didn't like you very much. what's happening in the cloud? are we going to see a similar point of consolidation at some point where the same things happens in the cloud era that happens back then? >> what you really see is that for us peoplesoft started it because it gave us the resources to rebuild our entire product line from the database middle wear to applications for the loud. we will be an overnight success ten years in the making. that's what this is about. it's going to be very clear winners and a lot of also rans. you know, for anyone who has ever counted oracle out, even with the america's cup, folks counted us out. counted oracle out or abbingle racing. at the end number one. >> how engaged is larry ellison
in this cloud stuff. he was on stage on sunday for a long time. i is high school now. how much attention is he paying to the cloud from strategy? >> he has oracle, and then everything else. oracle is the number one focus. you saw larry on stage for an hour and a half going from the broad strategy to the details of features in our newest database version 12.2. you know what you didn't know? he wrote every one of those slides. he made every single power point. he changed and wrote and rewrote and rewrote again every word. he planned what he was going to say, and, frankly, he planned what almost everybody else is talking about and what we're all doing. this strategy of going to the cloud has been in place for
pretty much started ultimately three decades ago, and even when i joined 16 plus years ago, larry said let us run your software for you. every one of these acquisitions has added another piece to make it possible for us to have a cloud all the way from the storage, the computers, the database, the middle wear, and the applications. nobody has what we have. sfroo back to you. >> thank you very much. in the meantime, we're there. finally just one day away from cnbc's republican debate and, of course, boulder, colorado. we'll go there live with a preview in a moment. plus, t mobile's ceo john ledger on his company's decision to move from the trading floor of
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>>. >> just one day away from the republican debate in colorado. john harwood will be a host tomorrow eepg, and he joins us now live with boulder. i one how ben carson pulling ahead of trump in the national polls will make a difference tomorrow now. >> i think, simon, it introduces an unpredictable dynamic as we've seen donnell trump go on the attack when he has fallen behind in other polls, including to ben carson in iowa. you know were there's nobody better to analyze a republican debate than somebody who has stood on that stage. i sat down with former utah governor john huntsman who has an unconventional take on where this debate and where this race may be heading. >> we have a debate on cnbc.
you were on stage for our last one. made famous by rick perry in the oops moment. >> third agency of government, i would do away with the education, the -- i -- commerce and let's see -- >> i wanted to help him with that third answer. >> the third one, i can't. sorry. oops. >> didn't do it in time. >> tell me what you expect out of that debate. maybe the traditional candidates are going to rise up more. what do you see happening? >> i think you're going to have two lanes ultimately that will determine the outcome. it will be largely for the outsider. likely donald trump and probably ted cruz will be my guest. cruz is successful on the stump. he has raise aid boatload of money. he has a sense of where he is going. i mean there's a method to his madness. if trump blows up which i don't think he is going to do, then i think cruz is the recipient of most of that.
then i think you have somebody who occupies sort of the traditionalist chamber of commerce big picture, bold foreign policy approach. i think it will be a governor. kasich, bush. >> not rubio? that's interesting. a lot of people are putting the smart money on marco rubio right now. we'll see. >> we'll see how that plays out. i think in the end people are going to defer to a governor. >> and simon, every single one of them, senator, governor, tribl nontraditional going to have a hands to make a big case to the american voters on that stage tomorrow night. >> of course, john, it's a massive inturnd statement for the -- the presidential republican debate. moderated by carl quintanilla, becky quick, and john harwood. coverage begins on cnbc at 5:00 p.m. eastern. >> up next, a strong day for alibaba, but not as strong as it was earlier in the morning.
earlier comment that the process of getting to that agreement stinks. when you have a situation that we're dealing with today, it's -- >> police in turkey arresting 30 isis suspects in a predawn raid. yesterday police stormed a house used by a suspected isis cell triggering a clash that left seven militants and two police officers dead. nearly 1.4 million older vehicles can leak oil and catch fire. the repairs from the first two recalls didn't work. it involves chevrolet and pontiac models from the years 1997 to 2004. game one of the world series between the new york mets and the kansas city royals begins tonight. they'll be watching at foley's bar in new york. it's renaming itself in honor of mets second baseman daniel murphy who has hit a home run in a record six straight playoff games.
and that is your cnbc news update this hour. back to "squawk alley" and kayla. >> thanks, sue. we'll check in with you a little later on. shares of alibaba trading higher posting better than expected earnings showing growth in mobile and shaking off at least some concerns over china's economy. is this a sign that the chinese consumer is back with us here at post nine shark tank's kevin o'leary. it's good to see you. you were always a believer in the china economy. you didn't believe the bottom when it was in back in august. you said you were actually still keeping 25% -- how do you feel about today's numbers? >> i have been richly rewarded. >> the reason you stay bullish on china is not because of any data at all. sales of the s&p now going international. about 25% of the az wran market.
there are companies that actually showing nir income statement. they're showing 5% to 6.5% sales growth. why don't you trust that and forget about everything about stories of empty buildings and all the rest of it. do you believe chinese eat fried chicken? yes, i do. yum brands. now they've actually increased value by saying we're fwog separate that business as a high growth story. to me that's why i stay long. the market is turning into a giant consumer market. that's why you should own it if you own those kind of stocks. >> what gives people cause is that almost every single analyst report on this street that is bullish on the company says, well, the one con is chinese monetary policy, which is the least predictable or calculatable risk. are you playing with house money so you can say this. >> kayla, versus our monetary policy? versus what we did in 2008, 2009? versus all the things the fed does to prop up our growth rate?
versus what? i mean, if you are going to look at us with any kind of support saying we're doing things better than anybody else, you have to say to the chinese government, look, you are doing what we did in 2008, 2009. we have basically with exception of devaluing our currency done exactly what they're doing except we did it sooner. >> just following your logic, why wouldn't i simply pick companies in this country that were exposed via the sales to china and asia rather than buying directly there, particularly given what's happened to their stock market in the summer snsh. >> if you were super conservative, could you do that. here's why you argue you want the pure play. the majority in the asian markets, some in india. you could put rules in place that say i only want large caps over $5 billion. you'll find 250 companies, some in japan, some in australia, some in china, some is in hong kong. that's what i have done.
i owe 250 names now. i do it through my own o share company, but i own them. i believe chinese eat fried chicken. i really do. >> you don't buy alibaba because -- >> the only reason it doesn't return capital, and i have learned over the last 40 years that it came from return capital. i'll never buy alibaba until it gives me a dividend because i can find an equivalent that gives me exposure. for example, why buy google when you can buy microsoft and get the same performance in recent times and get a dividend? i argue that from our own markets. when people say you don't own google? no, i don't. i own microsoft. i had a fantastic water. >> it's a stupid question. >> they're never stupid. >> you ended up saying you were invested via 250 companies in asia. >> yes. >> then why did i invest in them because i know the chinese eat fried chicken.
>> i'm saying they're consumers. there's a consumer engine emerging in china. yes, it will be more volatile. i guarantee you that. to say as a portfolio manager, you have no exposure to the world's fastest growing economy, even though it's only at 6%. >> my question is really whatsoever research you can have on 250 companies. >> all i do and i have done this in partnership with the ftse. if i go back over a 40 year period and look at rules, for example, let's at the the actual amount of debt on the balance sheet of the company. let's see how it turns its assets over for productivity. let's see if it accrues like the worldcom story here in america. if it does any of those things poorly, i just don't own it. i have sectorial exposure to all the sectors, and i are rules that have been tested back ten years. if that's how i'm buying asian market, and so far, simon, it's working. >> kevin, you never leave us wondering what you are thinking. >> hey, i'm just trying to scratch at a living. you know that. >> we appreciate it. kevin o'leary, thanks.
higher today. it's one of josh brown's favorite stocks. find out if he is sticking with it. pete, finally, finally, making trades in the halftime portfolio. buying and selling from coming up. >> meanwhile, economists are revising their estimates for gdp after this morning's disappointing economic data. steve liesman joins us with the cnbc rapid update. how much did it move? >> it moved by two. it's a pretty big amount. the tracking and the incredibly sh linking shird quarter gdp, now down to 1. 4%. this is significant because this is a number that started the quarter before the data started coming in. around 2.9%. there's still a debate on what ends up this week. 2.5% is the arrange am of the economist that is we survey on the tracking survey. bank of tokyo -- towards the bottom there. the gdp has done a pretty good
job at 0.9%. the durable goods number -- the number this morning that came in. around the consensus at 1.2. the revision downward to the prior month playing a big factor here, kayla. >> thanks, steve liesman back at headquarters. >> when we come back, jim cramer will talk to t mobile ceo john ledger. they'll be live at the nasdaq.
colorado is an interesting please for the republican debate tomorrow. for one legal marijuana is the fastest growing part of the state's economy. our own jane wells is live in both boulder with more. nice to see you in colorado. >> oh, it's beautiful. it is so beautiful in boulder, simon. you know, while the candidates are going to debate the recovery, or lack of it, here in colorado some credit the centennial state's recovery with going to pot. at least in the denver industrial real estate market. now, legal marijuana in colorado and its first year did $700 million in sales. it cannot be grown out in the open under the law. it's also too cold much of the we're to do that. a lot of variable industrial space has been snapped up for growing. cbre says over the last five years says one-third of available industrial space in denver has been leased cannabis
operations. >> this is the type of product that is the last to lease. you know, from a market standpoint it was very positive in the sense that able to lease this product earlier than we would have in the normal cycle. >> we're basically seeing record increases in rent, which has turned out to be a problem in many ways because it's becoming very expensive to live and do business here. >> i think the -- one of the biggest crunches is for employees finding housing in colorado. it's gotten much more competitive, very difficult. >> now, that's tim collin. he runs colorado harvest. he did $9 billion last year. $9 million. he expects to do better this year. this is an area where the federal reserve still refuses to take any money from in banking and the irs still refuses to allow regular business deductions, so while pot helped colorado come out of the recession, the arrest -- the rest of the economy, guys, is now surpassing it, doing very well, and doesn't have the same sort of banking and tax problems
that marijuana does. back to you. >> it's made a lot of businesses finding have very hard to do business even after it's become more socially acceptable. i know it's going to come up at the debate. thank you for wrapping that up in contest. >> becky quick and john harwood. coverage begins at 5:00 eastern. >> in the meantime, t mobile usa reporting its earnings from a new place this morning. the company on both top and bottom lines. it did deliver another quarter of strong subscriber growth. let's toss it over it our own jim cramer who is at the nasdaq with the special guest. jim. >> thank you, simon. john, i have to tell you, simon just said you missed on top and bottom line. verizon, beat top and bottom line. att raised guidance. are they as dumb and dumber
after your quarter? dumber and dumberer. >> simon may have skipped over these. this was an incredible quarter. 2.3 million net customer additions. that's ten quarters in a row over a million. 1.1 million post-pay. 843,000 post-paid phones. by the way, that's exactly the opposite of what at&t had. absolutely cleaned their clocks. >> we have to talk about the 1.3% churn. >> i have been listening you talk about direct tv every morning. i can't wait to get on this. >> they have a good deal on direct tv. i didn't feel dumb at all when you went in there. >> you went to the at&t store, and they were selling direct tv. do you know why? they can't sell anything else. look, okay, i've got the direct tv app on my phone. you go to the at&t store. who lost so far this year.
1.5 million post-paid phone customers while we gained it 2.6 million. the churn is up 17 basis points year-over-year, and it's down 18 basis points. >> you do a -- >> sec controversial churn up every carrier. it's seasonally. year-over-year we were down 18 basis points. the biggest decline in churn that we've had at&t was up 17 basis points. >> do have i to worry about the september pause? you had a big -- august was huge for you, and you were out of the market. how do i know that the last ten days aren't going to make me feel like -- >> when things go so well over time, you got to -- okay. here's -- here's august. it was arguably the biggest month in the history. >> post-paid rates. in q31.8 with the industry.
tenth quarter in a row we positively poured in customers from everybody. you want to break them down? i can tell you. at&t was 2-1 for the quarter. sprint was 2.1 to one. verizon 1.33. the last seven days those days while you were in the direct tv store trolling, we are 2.25 to one with at&t. 2.07 with sprint, and 1.40 with veriz verizon. >> where? you're a football fan. i'm looking at the stock down 5%, and i'm saying, well, wait a second, you know, maybe it's a streak of losses. i'm trying to get at it. >> we had a fantastic quarter. i think there's some confusion around earnings per share. we generated $411 million of free cash flow, and that's up from 69 million lost last we're. we generate $138 million worth of net income, and that's up from negative 94 last we're. >> you're going to huge cdma conversion from metro pcs that's up. we raised our guidance on net ads for the year, but kept our
ebida. there was a year -- a compare to last quarter on the tax rate that was confused. i think once it settles down, people will understand we had a one-time metro pcs demigs commissions cost, but the results top to bottom were absolutely fantastic. i think by tomorrow the next day people will understand. >> i have people at home saying, well, wait a second, every time you report, the stock pops. >> gu to the store, and there's at&t sales guys saying, i haven't sold any phones for a year and a half. sell him the direct tv. don't tell him, by the way, that he can buy it. sprint gives it away for free. put the app on your phone. >> this is the third good thing you've said about sprint today. now i'm thinking maybe they're not as stupid as you thought. >> they're not dumb and dumber. no, i think -- i would expect sprint to post some pretty good numbers, and the good news is it's not coming from us. i think it's good for the industry. it's good for the u.s. >> let's talk about the industry. you talked about dark horses on what -- by the way, if you want
to listen to a conference call that actually has game, you got to listen to your call because are you taking the calls. twitter. you talk about dark horse. you are talking about the landscape changing so are aedicly that i feel like we're going to be talking to six different carriers at this point. >> well, listen. it's not -- there are dark horse from a standpoint of will i show up for the auction. comcast, charter, google. they're not dark horses from a standpoint of whether they're going to be in mobility. they're clearly going to be in mobility. from a standpoint of the mobility, you're out two or three years. >> comcast is going to dabble in from an nbno verizon. >> right now what t mobile does is we do mobile very well.
in two to three years we along with everybody else will play a broader continuum in some other fact. >> they get a different anti-trust your and have you different dark horses. you're always open to a deal, aren't you? >> if you want to get the mobile customers, we can do it together better. i'm open on behalf of the best brand in the business of figuring out a better way to do that. i think -- i think if i was somebody else wanting to get to mobile customers, that brand is pretty cool. >> a lot of the square footage, acreage added. not as many stores as i thought. >> thank you for getting to my -- >> don't give it -- >> we have -- we have just crossed 300 million pops of lte. okay.
that's like four million less than verizon. more importantly, by the end of this year we will have added a million square miles of where last year there was no lt. now there is. and a whole bunch of it is 700 mega hertz, which is two times further in its usage. >> when is the last time -- your point being, swrim, what will happen now is as the rural penetration gets greater, this is some of the fastest growing parts of our business. we will migrate opening of our stores to where there's new coverage, and there's tremendous up side for the business.
>> ebida will be saying now 5% of the stock, and it's a reaction the fact that the headline number wasn't right versus what the projections are. >> this is the third quarter in a row that we have increased our growth and kept our profitability the same. >> that's what i've been waiting for. that's why the stock is not screaming today. >> i think right now you have to remember that for the past -- i'm not talking about stocks here. we have run up quite a bit. we're in a good positive position. you have reiterated our profitability for the 42% year over year growth.
>> i'm wondering whether -- think fooez thesis is don't trade apple, own it. if you have a look at your book, a business. apple is clearly a strong suit for you. >> 100%. >> remember, that's something you see in q4. from our standpoint, both the apple selling device and their store, which is great for t mobile as well as what we saw, you know, from a t mobile standpoint, the new iphone and the businesses going very well. >> literally you'll have enough cash to be able to turn cash the way that dumb ask dumber do. to use your terminology. i think it's a little smarter than -- >> i think, jim, right now even
though we see in our shareholders, of course, the best place to use our cash is to fund the growth as well as we have some key investments coming up in the options. i think everybody is pretty pleased with where we are. >> thanks, jim. a new $4 billion buy-back. we have more on the program which brings is to $6.4 well.
check out ibm. big blue failing to really catch a break after the company announced a new $4 billion stock buyback plan which basically adds to what is already in the kitty. you are talking about $6.5 billion that can now be bought back. they've also declared a regular cash dividend of $1.30 a share. the bigger picture here, of course, is that disappointing revenues last quarter cutting the full year forecast to send the stock to a five-year low. that dividend play clearly important for retirees.
>> for a company that's been criticized for how much it's spending sdmroosh they cut it back. it has cut it back. >> capital expenditures still an interesting development there. a lot of earnings on tap. 169 companies in the s&p 500 reporting this week. we mentioned apple at the top of the show. >> given that he has given away one-third of his stock to keep the staff there, i don't know where that takes you on the earnings tonight. my feeling would be to assume that beer not quite past the goal post. >> i will watch fast money in the wake of apple's story. that's my contribution. >> we'll look forward to watching that. we appreciate you sticking around fort hour today, simon. all right. that's it for squawk alley as we near noontime on the east coast. let's head to "fast money
halftime report." scott over at headquarters. ♪ i get knocked down but i get up again ♪ ♪ you're never going to keep me down ♪ let's meet our starting line-up for today. joe is here along with stephanie, swrosh brown, and pete. john joining us today from the cboe. our game plan looks like this. is baba back? what the company's sales surge means for the stock and your money. is the darling ready to make a run? hot in politics. swran wells live in colorado today where the weed economy is booming. what the republican candidates for president might say about it. cnbc's debate tomorrow night. we begin with the countdown to apple earnings, though, and whether those results after the bell tonight can jump-start the stock. apple shares have lagged. other big techs like amazon, facebook, and google this year leaving investors to wonder what's been going on with the most valuable company in the world. pete, to you