tv Squawk Alley CNBC January 19, 2016 11:00am-12:01pm EST
post nine. watching the dow trying to hang on to some gains. first, though, some breaking news out of washington on the cbo's economic outlook. john harwood has more for us this morning. john. >> carl, the cbo is projecting a deficit for 2016 of $544 billion. that's $100 billion more than last year. part of that is simply a quirk of timing as to when the fiscal year started. the fact that some payments were made in the 2016 fiscal year because the end of the year fell on a weekend. you also have rising payments for social security. more and more people coming on the rolls, and there was a cost of living ajustment in 2015. if not in 2016. finally, you had the tax extender which passed at the end of last year which extended tax breaks that vbt been previously included in the cbo forecast. the deficit is projected to be $544 billion. higher than previously projected. higher than last we're. that's going to go up over time unless something is done, carl,
because more and more people coming on the rolls of medicare and social security as baby boomers retire. >> just the latest news out of washington this morning, john. thank you very much for that. john harwood in d.c. move to the markets. trying to rally after friday's big losses. clearly off to the highs of the morning. bob pasani has more from the floor. bob. >> straight up 20 points gap up on the s&p 500 at the open, and then we gave it all up again mostly because oil fell out of bed because material stocks dropped. when oil stabilized at 10:00 eastern time, the market stabilizes. we rose a bit. now we're coming off of those highs. we're going to have a good part of those gains. over half of the gains for the major indexes. sector financials led. good numbers out of bank of america and morgan stanley as well. discretionary staples. you see energy and materials, the two sectors layigging, and it's push the sell button on that particular sector. in terms of the financials
today, we had a good start at the bank of america, but you can see not a particularly strong response overall. goldman is up. regent is up. some of the regional banks are on the up side. morgan stanley had a good report. bank of america started moving down almost immediately despite the fact that by any metric it's certainly a bargain right now. at least a lot of people are out pounding the table on that idea. not a lot of buyers, though. we are at inflexion points. on friday night and saturday i got lots of emails from traders saying, my heavens, we are sitting right at the august lows essentially. let's not wibl about a few points. the fact that we have bounced right near those august lows is giving people a lot of relief right now today, although it is a very tentative bounce we're seeing. the dow is below 16,000. the s&p 500 was sitting at the august lows there. the nasdaq 4,500 also sitting at the august lows, and a decisive break below that would have caused a lot of people screaming very loudly. remember, carl, when people are uncertain about what to do, they turn to technicals because that's the only thing that will give hem some guidance.
a bounce even a modest one, off of those august lows on friday. certainly a good sign for today. back to you. >> bob, thank you very much. for more on what investors might expect today and later this week we're joined this morning at post nine by ubs director of floor operations art cashin and our senior markets commentator michael santolli. these sold opens are getting to be a habit. how long can this go on? >> well, we stopped at the initial resistance in the s&p around 1901 to 1905. we have a minor double top today and as pasani alluded to, a rather extensive triple bottom. we're working between the technicals here. >> four things that might give us something more than a short-term bounce. >> yeah, i mean, trying to get at this question. in addition to all the identify negative headlines and the real selling intensity that's been coming from around the world, i feel like there's been a real lack of motivation for buyers to
step in right here. i think a lot of professional investors came in to this year expecting not very much, felt like there wasn't much of a hurry to even get aggressive, so four things, obviously earnings are here. it's tough to handicap whether we've kind of priceed in a really research ed earnings season or not. the revisions -- the estimates don't seem to have come down enough, but obviously if you beat by three percentage points a quarter, if that holds, maybe that's at least on a spotty basis a net positive. then that actually clears the way for companies to come back and buy back stock. they're mostly in black-out mode. i don't think they're going to be as aggressive as they have been in past years just because their credit markets aren't as generous. they're not getting rewarded as much as they have been in the past. buy-back stocks if you look at the etf, like a pkw, badly underperformed. maybe that's no longer the magic. >> if you want to be a buyer here, if you have been preserving your capital, you're waiting for a catalyst, what is that catalyst? we now have earnings that were as uneventful as we expected. we get a swrobz number in a couple of weeks. g-20 central bankers meeting in the middle of february.
what would you wait for? >> well, just as mike alluded to, a lot of companies are in a blackout period relative to buybacks. when earnings season winds down, i might start nibbling right there, assuming the corporations are going to come in right behind me. >> although, i mean, costin of goldman has already said they're the only source of marginal demand. if mike is right and they're not going to to be as -- delta is out this morning saying they're still leaning with a bias toward using fuel savings for a buyback. question is if that's the norm or not. >> even if it's down year-over-year, it's not $450 billion. maybe it's going to be $400 billion. it's still going to be a relatively steady bid. really the credit markets do get very, very ornery. >> particularly enterprise buy. emerging markets were sort of a mess. now we're starting to get some of the growth companies that are reporting. netflix. eventually we'll get amazon.
how important is that growth story to the overall market sentiment? if the triber numbers internationally look good for netflix, for example, might that give people hope? >> well, i think they'll get some, but i think in particular they'll look for guidance. how firm is the guidance? how optimistic is the guidance? that's what they'll playoff of. >> i do think that if you are a fund manager, you desperately want to be able to focus on things like these companies' specific metrics. you want to escape from this macrodriven kind of crude oil and policy led moves. i don't know if it's going to get clearance for that or not, but i do think if we -- if that becomes the story, it's probably a net positive. you're going to at least make the case. merrill lynch is out saying stock market is pricing in at 50% recession possibility, whereas the treasury markets, maybe like 25%. can't say that with any precision, but if you start to get the economic surprise indicators a little bit less negative, then it's going to give people an excuse to go looking for the individual
companies to buy. >> there was a question on ""squawk box"" this morning. could we talk ourselves into a recession? the rhetoric becomes so negative that we're there before perhaps some of the indicators would have led us there themselves? >> the economy is run by psychology, and you could actually do that. corporations start to pull back and say i don't want to advance anything. i don't want to hire anybody. we could slide right into a recession. you're at a relatively weak point. again, oil is ruling the market. wti breaks 29, then it's going to be pressured back on the market. the first thing you want to hope is that this rally doesn't save. if we go negative or if at all it disappears, we're going to get that negative tone back in the market. >> it seems like maybe -- i don't know if you agree, but last thursday is kind of hanging over this market too. you had this strong looking 2% rally, and it was gone by friday morning. i wonder if that's giving people a little bit of hesitant si to
not participate. >> bottoms -- >> we'll see what tuesday brings. mike santoli. art cashin. morgan stanley and bank of america. all we have left is goldman sachs after jp morgan, citi, and wells fargo last week. b of a is in focus today. it beat on the top line and the bottom line if you count the revenue which excludz their interest costs. certainly that was what the market was looking at in early trading. the revenue growth was a relatively strong point. the portion that was based off of interest payments, up 2%. the rest of it was up 7%. expenses fell too. they fell by 16%. couple that with a release of consumer credit reserves, and that helped b of a's bottom line. the bank said while it's likely done with broad brushed restructuring, it did take a $130 million charge, according to the ceo brian moynihan. that was related to layoffs in its markets division. we know how tough the times have been for these banks in markets with a lack of volatility and then the new volatility. in a note to clients this morning, guggenheim noted that
the deterioration in energy lending may undermine this progress in the short-term. that is very simply put. take a look at this. the bank outlined $21 billion. it had on the hook for the energy sector. the $8 billion in exposure it had for mining. you can see how that is based by different parts of the energy sector. they went to great pains to break that down, to try and give some clarity to the market. the bank also putting a price on its own liability. they said should oil stay at $30 for the next several quarters, the cost would be $700 million in extra reserves. analysts want to know on the conference call how much worse could it get? >> right now it's pretty isolated. the energy companies. even if you look at consumers who work for them and our basis by zip code and unemployment levels and stuff, we've seen relatively modest consideration or none in the consumer side. people employed in these businesses. >> despite that and despite that
he relative bullishness, it wasn't enough for the street. when coupled with the decline in oil sprisz, b of a has given up almost all of its gains and then turned negative. when the company was asked about the prospect for the r-word, that being recession, they said there has not been a material change in the conversations that they're having with clients. they said energy was isolated, but, carl, investors don't seem to be giving the companies credit for the performance in the prior quarter. they're really worried about the problems that lay ahead. >> yep. we're not done with the banks by a long shot for the week. including goldman tomorrow. we'll see what that brings. when we come back, a rough start for fang stocks this year. all down more than 6%. a top portfolio manager joins us with his outlook for the rest of the year. plus, a big day for tech earnings. netflix, as you know, tonight after the bell. what you should expect and still watching the markets volatile trading since the open. dow currently hanging on to a gain of 89. back in just a moment.
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>> we'll call it google pay. all seeing big declines year-to-date, and apple also falling more than 7% this month. how should investors play the tech volatility? joining us now t. rowe price portfolio manager josh spencer who manages the ernst global tech fund. it's great to have you. >> it's nice to be with you.
we always hear buy low, sell high. are these stocks low enough for you to want to buy them? >> i always try to use this volatility as an opportunity, and i think in the case of companies like google or amazon this pullback creates a nice chance to buy companies who are very well positioned? >> do you buy dividends or growth here? >> i prefer to buy growth, and i think growth is what's really been under pressure. >> i always try to think in the pullbacks about how should we be positioned for the other side? elts often too late to think about playing defense at times like this. if we buy companies well positioned for growth coming out of this, we'll do well. >> i think it's going to be an interesting report from amazon on the holiday quarter. the latest numbers out from adobe suggest that mobile buying, particularly later in the season, was absolutely huge, and that has shown to benefit amazon as a mobile app that's better than a lot of the competitors out there.
how much do you expect the results to move the stock given the general pessimistic mood out there for growth companies? >> i'm optimistic that amazon results and those from a number of other tech companies will help the market to calm down and understand just how good these companies are. i agree with you that amazon had a fantastic holiday season. they continue to do great with their cloud computing business. i think the stock did come gripping back once we see those numbers. >> what are you looking at as we go towards the quarter with some of the growth companies where pretty much any metric could fall fwi as a valuation multiple? >> that is true. you have to do hard work across all time periods to understand
exactly what gives you conviction. with a company like amazon it really is that unit growth on the retail side as well as the growth in amazon web services. with a company like netflix, you would like to see that international subscriber growth stay robust. each one is different, but i think in all cases you could argue these are very well positioned fundamental companies. >> facebook made an interesting move. what's app is going to stop charging the dollar a year fee. this coming as they certainly must be getting close to that billion subscriber mark. how much does what's app's growth factor into how investors should be thinking about facebook given that it's got three pretty big businesses at least as far as users are concerned concern. facebook, what's app, and instagram. >> it's an important component, and in full diz closure facebook is not one of my holdings. i will say that mark sfwluker
be -- zuckerberg is a ceo that has won the benefit of the doubt. he has done savvy things. what's app that looked very expensive at the time is going to prove another one of those where in hindsight it's a savvy move. >> you do hold somewhere d.com, avago. you do hold a lot of stocks with china exposure. how are you formulating your thesis on how these stocks are going to be exposed to china, and how long the volatility there lasts? >> the most important thing for me is to own companies who will benefit from the rising consumer class in china. when i think about some of the internet companies, jd.com, alibaba, ten cent, sea trip, they really benefit from the changes that china is undertaking. the growth in the consumer class, the growth in the middle class. i think that the big choppiness in china comes from the fixed asset side. some of the materials and energy. that could spill over to some extent in the consumer side, but
as of yet, these companies haven't seen, it and i think we're going to see very strong fundamentals. i also think that's going to help get those stocks kind of a sigh of relief and have them work back higher. >> i know they certainly hope so. we will see what the next data points bring. josh, we appreciate your time this morning. >> thank you. >> coming up, a big day for tech earnings with both ibm and netflix reporting after the bell. we're going to tell you what to expect, and still following the markets. the dow, wow, well off its highs, but still up 67 points. nasdaq up just seven. that's about .17%. squawk alley will be right back.
>> ibm reporting fourth quarter earnings after the bell today. competition from am sdmron's business. the company continues to push its own cloud story along with analytics and security. trouble is there's a lot of uncertainty. intel, of course, reported last week in talks about general spend and enterprise and in emerging markets. two areas ibm counts on as well. also, software is the big moneymaker for ibm and the long-time software chief, steve mills, announced his retirement a couple of weeks ago. to mark the time it's been more than a year since ibm and apple said they would deliver the first wave of apps under their partnership, ios and enterprise. so far not too much to show for it on ibm's end, except for some increased costs. >> it's going to be a focus as usual. how much are companies signing up to have ibm do that work? >> yeah, and the capital return
program is going to be in focus too. so many people buy the stock as a dividend play because it's dividend yield is pretty healthy, but you balance that against a stock that loses 20% in the last year, and you wonder if that can hold up. we'll see. that's after the bell? >> it is. probably around 4:15. the call is later than usual, though. >> china did report slowest growth in more than two decades. the data in retail sales and industrial output came overnight, and seema has more on that. >> kayla, it's important to know that the 6.9% growth figure has attracted a great deal of skepticism. a number of market pros say china's economy is not growing anywhere near as fast as this official figure suggests with
more than enough evidence really over the past year as illustrating weak innocence the world's second largest economy for manufacturing to services. producer prices declining for the 46th straight month. add to that monthly data reports on industrial production, retail sales. highlighting that china's two-tiered economy is decelerating on both fronts. >> slowing growth has the road ahead will be tricky for the chinese. a sharmer devaluation in the yuan to boost exports. could lead to further volatility and backlash from its trading partners. economists say another rate cut could decelerate outflows. there's one unconventional tool
china watchers say beijing could look at, and that's increasing capital controls, but that would be seen by the global elite as a step back for chinese leaders that have been trying to loosen their control on the economy and financial system. that would surely dent investor confidence. while, carl, there is a strong likelihood that the central bank will unveil further measures in the coming months to kick start growth, still a lot of uncertainty on what exactly they'll do. which tools they'll utilize. >> when we come back, shares of netflix seeing a nice gain hfd earnings after the bell. we'll get a closer look at what to expect. not the rally we expected at the open, but stocks tried to hang on to some gains. the nasdaq is back basically to the flat line. we'll watch the close and get that to you at about three and a half minutes.
>> here's your cnbc news update that the hour. the supreme court agreeing to hear president obama's bid to resurrect his plan to shield more than four million illegal immigrants from deportation. obama's executive action was blocked by lower courts after texas and 25 republican governors sued to stop it claiming he exceeded his authority. johnson & johnson says it expects to cut about 3,000 jobs over the next two years in its medical devices unit. about 4% to 6% of is global work force. it will take a fourth quarter charge to pay for it, but it expects to save up to $1 billion
annually by the end of 2018. >> iraq releasing video of its air strikes on isis targets north of baghdad. it set it narrowed to destroy a number of vehicles, including a car bomb ready to be detonated. a japanese man, the world's oldest, has died. just two months short of his 113th birthday. he said his secret to life was to take it easy and not drink or smoke. he worked as a tailor when he was younger. that's our cnbc news update for this hour. let's get back to "squawk alley" carl. >> thank you very much, sharon eperson. let's get to simon hobbs and count down the close in europe. off of the highs, but still up about 1%. >> yes. throughout the day the gains in europe, bounced back from the losses of the first few weeks. greater for europe than they were here. we've eroded that upcoming close as you can see.
just keeping an eye on sterling on the u.k. pound which may be a significant move moving forward. already over the last three months tracking substantially lower. there was a time when we thought the bank of england would follow the fed in raising rates. that is looking less and less likely, which is why sterling is under pressure as you can see. today the bank of england governor pushed the idea the wait and see idea even further in a speech that he gave. for much of last we're he was saying when the year turns, we'll get sharper relief on whether interest rates should rise. now he says now is not yet the time to raise those rates. many people don't think the bank of england will move possibly for this year at all. meantime, there's still a major problem on the banks in europe to the south of europe. a lot of the italian banks, again, today have their circuit breakers kick in for the losses that we are talking about yesterday. confirmation from the italian banks that they are being asked for details on their nonperforming loans by the local regulator on behalf of the european central bank. the regulator may extend the
short telling ban into tomorrow as well. this bank has lost half its value in just one month. our banks are beginning to move to the down side as well. in general, of course, as we move lower, we'll cut our gains. want to mention one more stock finally. this is a -- it's a u.k. on-line grocer, independent working on its own. there was a report in the daily mail earlier today that amazon might buy it.
>> netflix set to report after the bell today. continued expansion to new cities in recent months. investors are going to be keeping an eye on subscriber growth going forward as well as original content. will power is an tlois with robert w. baird and joins us now. >> have you a downgrade on netflix, but at the same time you have $115 price target, which is nearly 10%. how are you going to be looking at this earnings report and when the stock goes up? >> i tell you, good morning, first of all. buckle your seat belts, right? netflix, it's either up or down 10%. >> i really think there were a lot of expectations already baked into the stock. particularly with regard to international growth. i think international will look
strong. we think a lot of that is already expected. we do have some concerns on the u.s. domestic growth. we think that could be slightly light. that does make us a bit more cautious. at the end of the day we think a 110 to $120 is probably the right value relationship here. >> how much does it matter that netflix announced this complete global expansion at ces a couple of weeks ago? is there concern that that might be to counter balance what's happening domestically with subs? >> to its credit announcing ces put it at the earlier end of that expectation. notable exception to that is china. that's still a wild card and a big opportunity if and when they launch that. the international launch provided a huge growth opportunity for them. it also diluted earnings, but that's not a big surprise for
investors here. >> those growth stocks are dangerous these days. you look at something like a fitbit. you look at something like a gopro. analysts can end up chasing those stocks down as far as, you know, downgrading them after the stock prices already drop. you know, when you look at a stock like a netflix, do you adjust the way you value it based on what the rest of the market is doing as far as growth is concerned? when do you decide to pull the trigger on something like that? >> that's a good question. picking the right time to sell something may be the hardest decision. our judgment when we downgraded was we had a significant return in the stock. >> when there's a clear secular trend that's not going away, but they quickly had gone from upstart to leader. you talk to the media companies that are distributors. these guys are placing these guys. as a result, the competition is
only going to intensify. we do think that the competitive risk actually increased for netflix over time. they've still got, you know, some long tail winds in terms of growth opportunity. >> it's not going away, will, but it's not getting any cheaper, and we ask this question every quarter, but it's worth asking again given the stock's pullback. at what point does netflix need to raise its price again? >>. >> it's raised price aing couple of times. that's one of my concerns as you move through the latter parts of this year. the price increases start to roll through the existing phase as you get into the spring time frame. we'll see how much it increases. i think as i look at my own user experience and the usage of my family, i think there's a good price value relationship there. you know, it's not going to help, right? there's got to be risk on the marmgin that the churn goes up as the prices go through. i do think over the next several years there is an opportunity to continue to raise pricing, but the big question there is whether that falls in the bottom line or does it really just offset the growing content cost? >> hey, will.
we had john in the initial call. since then they have indicated there are limits to their interest in putting original content on the platform. whether that's news or sports. do you think they need to dive into other areas separate of dramas and comedies? >> look, given the brand they've established and the distribution, i don't think there's any question that over a longer period of time, there are opportunities to move into other medians. live sports, et cetera. not something probably the next year or two. >> netflix has said that 4k is a possibility for them as far as raising prices charging more. is that a metric that will make
you feel better about the stock. >>ates good question. i don't think so at present. you know, there are already producing some of the original content in 4k. this is part of the classic, you know, chicken and the egg. you need the 4k sets out there. if they move into other mediums, that away give an opportunity to raise prices as well. >> all right. will power with robert w. baird. a neutral on the stock. thanks for joining us. >> thanks for having me. >> stocks bouncing back from the lows. dow up 111 points. union i'd health and its positive guidance. the biggest leader on the dow. this comes despite another loss for oil.
the markets have been tracing price of crude hovering just above $29 a barrel. it is positive. it has retraced. very common theme. we'll have more when we come back. the future belongs to the . and to help you accelerate, we've created a new company... one totally focused on what's next for your business. the true partnership where people,technology and ideas push everyone forward. accelerating innovation. accelerating transformation. accelerating next. hewlett packard enterprise.
why oakmark's david harrow says true investors are buying stocks in this pullback. we'll explain what he is doing live. we are going to see you in 20 minutes. >> thanks. the price of crude keeps finding ways to go lower. wti still below $30 a barrel. jackie deangeles is live at the nymex with more. jackie. >> good morning to you, john. that's right. we saw a brief flip this morning on that china gdp number. most oil traders don't believe those numbers. that's because on the supply-demand side, the fundamental side, you still have data points that are negative for when it comes to crude prices. the first would be the iea saying that over supply will last throughout this year, and also saying that 2016 global demand forecast, it's going to be flat. if we want to see oil prices rise, we need a demand forecast that's going to increase. meantime, you have the imf out this morning saying it's cutting its global growth forecast, so that's not positive for 2016. those china numbers discounted and then the iran headlines coming out as well.
it looks like iran and savvy are starting with a price war here. at least when it comes to europe that's flowing to some some parts of europe. next stop for crude oil. one of my contrarian traders earlier on the show said we could see 27 pretty quickly. doesn't mean we get there in a straight line. we could have volatile blips where we go up and down a little bit, but do expect this price to probably trend lower from here. back to you. >> are we getting ready for an earnings season that might not
be spectacular. >> i would argue that you are not going to overall see much surprises on a company by company basis. >> i don't think earnings season is anything to get excited about. what we're trying to do is look ahead. earnings are going to get better next year. energy is going to be the issue, of course, but earnings season, we caution our clients don't get worked up about this.
>> it has to do with technology. the -- every year energy companies are more efficient at bringing the stuff out on the ground and finding it, but at the same time the end user, whether it is whether it's running a truck fleeted, family car, home appliances, mranlt refrigeration and equipment, everything is getting more equipment. every drop of energy is getting squeezed.
>> i can't help -- i can't help but think that iran is going to be a disquieting influence in this market related to the price of oil. it's highly unlikely before we start moving higher again? >> question for you, are there any particular areas that have been beaten up so much that the bar is low this earnings season? you take a look at apple's stock. it's trading below 100. it has been for a while. a lot of people would be surprised. might that be positive? >> john, i would have to think so. if anything, when it comes to apple, you usually find that after apple has hit a couple of
balls out of the court or hit them over the fence, a couple of home runs, usually people become very negative on it. >> you talked about the degree to which energy sort of remains that devil on our shoulder, then what do you do? is it a year to simply give in and buy utilities and bonds? >> i don't think it is at all. you immediate to look at technology, and you definitely need to look at industrials. growth unchanged from where it's been for the last four or five years. 2%, 2.5%.
maybe towards the upper end of that range. i think the mentality we want our clients to take is you have to grind this out, and i think the cyclical sectors are going to outperform. i look out over the course of the next 12 months or so, that's what we want our clients in. >> if anything, the market is too optimistic that we'll see two hikes. if i had to lean one way, that's too many. we're at two hikes this year. >> already some calls to forget
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holding us up. not necessarily the usual suspects. the nasdaq 100 out performing the overall composite. part of the reason. leading the nasdaq 100 on reports that you may see some activists investor moves to shake up viacom's board. >> the large escap. the small caps are lower. really because of biotech. once again today. saw biotech start higher, and then slipping into the red despite upgrades and the likes for general. i don't know what is up today with buy from neutral or rock capital with the target at $555. investors still a little leary about those biotechs. meantime, china's fourth quarter gdp growth may have come in
lower than expected. >> add apple to the list of those in donald trump's line of fire. john harwood is in washington to explain. john. >> shemts to disrupt american business, too. most recently over the weekend with these comments suspecting. she wants to change apple's global supply chain that has many of the tech giants being manufactured in china. >> instead of in other countries.
>> the production in mexico going after starbucks for its holiday season coffee cups. if you want bright side for american business, some political jurors, including -- john lewis who compares donald trump to george wallace. the alabama governor in the 1960s. he says he doesn't think trump actually is convinced that he wants to do these things, that he is saying right now. >> thanks. this one drove me a little bit
nuts. it's because of all of the pc manufacturers apple actually is trying to build google tried this with a nexus q device. they were going to build that stereo device in the u.s. this didn't work. then again with motorola with the motox. that fell apart. actually hurt american workers. the problem is the skills, the tooling skills, the engineering skills aren't here anymore to do that sort of work. also, there's all this talk about manufacturing, but most of apple's employees are retail employees now, and i'll bet the retail employees here get paid better than the factory workers over in china, so why exactly do we want those jobs again? dow at 110. the same cannot be said for
these are the hands that build the machines, the machines that sort, stack and seal. these are the hands that keep private information private. these are the hands of pitney bowes, the craftsmen of commerce. these are the hands that dig for opportunity, identify patterns, and uncover risk. these are the hands of pitney bowes, the craftsmen of commerce. twitter down another 3.5% today dipping below 18, almost to 17. the company was hit with some temporary outages early this
morning in several parts of the world, including here in the united states. this has been a tough juan to watch. it got below 20 and then 19 and 18. between that and square jack dorsey has his hands full. >> it's pretty widespread. this morning it was dm, home page, it was your notifications. all across the board. usually it's just limited to one part of the product, but it was bad news from the beginning. >> well, remember the days of the -- they used to have a whole whale just for this sort of situation. i guess the bright side is it shows just how long it's been since we've seen it. >> we'll take that, i guess. meanwhile, watching some big cap names do okay. unh is the top component on the dow. had some decent guidance today. procter got a nice upgrade into steifel. coming back to yield, three and five to this environment. >> not bad. goldman sachs, interestingly, is the second best performer on the dow from the dollar perspective. it's just follow-through from morgan stanley. there's pretty much no news.
they do have earnings tomorrow, though. interesting move. >> big blue. netflix. >> we're going to get a long way towards the tech narrative. we've got a growth company reporting and non growth company. >> that's it for us here at post nine. let's get back to headquarters. scott and "the half." ♪ >> let's meet our starting line-up for today. joe is here along with stephanie and john and pete. our game plan looks like this. the netflix download. can the top stock of the past two years keep the momentum going? we've got your trade ahead of tonight's numbers. calls of the day, the street weighing in on apple, mcdonald's, shake shack, and more this hour. now our experts decide whether the analysts got them right. we begin with an attempt at bounce back for the bulls. days of selling giving ways to gains today as investors react to that china data and the state of the global economy. there's your picture a