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

obviously over the years ibm has done a great job. talk about as you look into the future transformation of businesses, whether it's customers or even transforming what ibm is doing. what are some of things -- >> you have learned a lot. actually i've been promoted another time and i want him to show compile answer but i wanted him to share, i found fascinating a list of things he said about what companies make it and don't make it. i don't know if you remember that conversation. you have time to think about it. so back to what would i guess lessons learned or observations may be. because i think sometimes people say to me, what would you advise like a young company, i sat there and thought sometimes i think we would all probably say it might be some of the same things i would say about myself. it doesn't matter. we are now 105 years old. anybody with companies in that era? anybody in the room? okay, that would make me come all right. we are 105. you do have time and i've had time to reflect about this and as we led and have been leadi

over the years, ibm has done a great job. talk a little bit about looking to the future, transformation of businesses, whether it is, you know, customers or humans transforming into what ibm is doing. virginia rometty: you have learned a lot too. promod haque: i have. virginia rometty: i want him to share -- i will answer, but i want him to share -- i found a fascinating list of things he said about which kind of companies make it and don't make it. i don't remember, but [indiscernible] back to rometty: so what, lessons learned or observations, maybe? because i guess, one, sometimes people say to me, what would you people say, what would you advise a young company? i think we would say, some of the things i would say about myself. it does not matter. i look, we are 105 years old. anybody with companies in that era? anybody in the room? that would make me. ok. [laughter] virginia rometty: we are 105. haveou have had time and i had time to reflect on this, we were in the middle of this transition now, one at a five years in tec

one second while i take 100,000 ibm. now newer hedge fund managers and analysts aren't used to this kind of behavior. they don't get the concept of buying a stock behind the market. they only think of how ibm repeatedly disappointed. i would come back and say if you think growth will accelerate both here and in the rest of the world then you have to believe a company like ibm will see a median improvement in what has been lack. that will quickly fall to the bottom line given the company is considering the cost they've cut. add it to the positives, it is unlikely ibm will announce or upset the long side apple cart. 15 of 26 analyst have a hold on the stock, 4 outright sell. there could be a lot of people upgrading. yes you have to think that way thp pe will hire 25,000 people in the u.s. something ceo will no doubt talk about when she meet with president-elect trump at tomorrow's tech summit. finally, when money managers are casting out for exposure they can quickly put ibm on. it is liquid and any broker can stomp you ou

president of ibm there. look, i thought tim cook handled this exactly right. he said, look, we're going to be engaged. being on the sidelines doesn't work. when he's invited to a meeting with the president-elect and you have the head of of amazon, microsoft and tesla and ibm there. lauren: you go. >> you know darned well, the head of apple will want to be there, too. lauren: is there a disconnect here, a disconnect between liberal silicon valley not being open in this instance, not wanting to sit down with the new leader of the free world? >> oh, are you talking to me? a liberal disconnect front? i think that people are unhappy about the outcome, something that's happening not just on the coast, but many in the middle of the country who aren't thrilled about it. donald trump has still incredibly low favorability, you know, and didn't win the popular vote, we know that. hillary clinton 2.8 million more votes a lot coming out of california i'm not shocked here. i think it's important for people to be able to v

the time we worked together most intensely was after the ibm pc came out. steve had a group, a small group at apple developing the macintosh and he came to us early on and asked us if we would commit resources. we put more people on the project than apple did and did the early application software that used that mouse, graphic center face. so it was a huge win for microsoft and apple when the macintosh became so successful. first when your mother said i would like to come and , have dinner, you should meet him, you did not seem that interested. why was that? mr. gates: i thought it was someone who bought and sold securities, which is a very zero something. sum thing. that is not curing disease or a cool piece of software. the idea of looking at volume curves, that is why it was so shocking when i met him. ♪ ♪ david: your company grows, becomes successful in the most successful company in the world. at what point do you say, i want to do something else with my life? mr. gates: 1995 was a big year when we shipped product and the software was doing well. w

a commitment to $1 billion is very little commitment for ibm. emily: that is something we will continue to follow. we will be all over that meeting tomorrow. cory johnson, our editor at large. thank you so much. still to come, a star-studded list of silicon valley execs headed to trump tower tomorrow. ask an advisor how they should treat this meeting. this is bloomberg. ♪ his recruitedain as it worksns to -- to persuade the technology provider to adopt bitcoin technology. many see digital currency we talked with someone about how it is impacting human jobs. >> if you walk to the middle and back office of a large bank, you see lots of people working at computer terminals, and all of that can be automated away and there will be a lot of job loss. jobs are likely to talk the agenda at a meeting between resident electromed and tech executives wednesday. -- resident elect trump and tech executives wednesday. it will be a who's who representing america's tech companies. a policy wish list was outlined for the new president, tackling things like trad

and obviously, over the years, ibm has done a great job. and so, talk a little bit about, you know, as you look into the future, transformation of businesses, whether it's, you know, customers or even transforming what ibm is doing. what are some of the things you've seen happening? >> well, you've learned a lot, too, haven't you? >> i have, yeah. >> we should talk. i've been with promod another time and i want him to share -- i'll answer, but i want him to share, too. i found fascinating a list of things he said about which kind of companies make it and don't make it. i don't know if you remember that conversation. you'll have time while i talk, you can think about it then. so, back to what would -- i guess lessons learned or observations, maybe? because i guess one -- sometimes people say to me, what would you advise like a young company? and i've sat there and thought sometimes. and i think we would all probably say, might be some of the same things i would say about myself, you know? it doesn't matter. so i look -- we're now 105 years o

then, ibm ceo on a future of artificial intelligence. later, how personal data is collected and used by marketers. taking a look at prime time programming, at 8:00 eastern, a look at the career of mike pence. .hen a profile of chuck schumer interviewsastern, with members of the 115th congress. here's a preview of the program on mike pence. mr. pence: my dad built -- in a small town of southern indiana. i started in politics as a democrat. when i heard the voice of the 40 is in a you is its, it all changed for me. i live the dream of becoming a congressman from a small town and i serve as governor of the great state of indiana. [applause] pence: i served 12 years in congress. if i only had 12 years left to live, i would want to live as a member of congress. that was the longest 12 years of my life. [laughter] >> let me just say the challenge has really just begun. the american public has rejected the policies of george ocean they are waiting to see what we can do. we will show them we will never lose sight of them. in terms of making thei

it is between microsoft and ibm and it ended up being that way. it has kind of become the poster child of -- hey, couldn't you have made this simpler? >> we love bill. we love bill. david: the wealthiest man in the world for 20 years or more. how does that affect your life daily? bill: fortunately, people know that the wealth is dedicated to the foundation. so they have ideas that are in the foundation, infectious disease and then it is super interesting. talking to those people. i have the benefit of going out and meeting interesting people and sharing my views and getting a lot of attention. that's a benefit. when i'm out with the kids, it can be a tiny bit of a drawback because you don't get as much privacy as you would like, but overall, my success has allowed to get more done and to build partnerships and work with great people. how do you deal with it when you go shopping question mark or do you not go shopping? bill: i shop and i go the theater. david: do people come up to you for selfies? bill: they can, and that is pretty quick people are

nicole: he will be meeting with the ibm ceo and ibm ceo ensure an op-ed in "usa today" on the need to better train workers said they can fill the growing number of new collar jobs that ibm is creating. maybe i'm alone, we have thousands of open positions at any given moment and we intend to hire a 25,000 professionals in the next four years in the 90s a space 6000 of those in 2017. it will be a who's who of tech executives at trump tower. ceo jack dorsey will not be there despite donald trump's frequent use of the social media site. lauren: a strong gathers new media and a fight with old media over advertising dollars. more from blake irving. >> when you a news article, google and facebook profit from advertising. one group funds for newspapers to get a cut of the election. the alliance represents two dozen newspapers lobbying the trump administration to change copyright of course meant to force search aggregators to pay a period newspaper stories make up roughly two thirds of their content. the effort is backed by news corp. which shares the same owner. the electronic frontier founda

liz: ibm saying 25,000 jobs. richard, trump will be meeting with silicon valley executives tomorrow. what do you think? do you think the focus will be on bot that are coming together. i'll tell you one thing, it's going tock immigration -- to be immigration reform. the tech community has been trying to raise the level for h-1b visas. i think that's something they're going to want to hammer him on. i think that's definitely something they're going to be talking about. look, it's great that we've got this economic climate that lets an ibm say with some certainty that they're going to create 25,000 new jobs. a month for the last 95 -- liz: yeah, but that's underwhelming. ford, that's not great performance -- hang on, richard, forgive me. so sorry, forgive me. >> if that were great performance, trust me, they would have stayed with hillary clinton. liz: okay. >> there's a lot of americans who want to see economic growth at 4, 5%, who want to see jobs in middle america and other places. right now you're talking about

ibm a laggard, but big blue is now up 24% this year if you factor in dividend payments. walmart and merck kind of round out some of the biggest gainers in the dogs. what about next year? as it stands right now, you take a look at some of these, verizon, pfizer, chevron, ibm, exxon, coca-cola, caterpillar, merck. these are the ten highest yielding stocks if the dogs were named right now before the end of the year. check out these, according to analysts these are the ones that have the biggest percentage to gain. pfizer, merck, coke, caterpillar and ibm because they're big games now, perhaps laggard. as we talk about the dogs, keep in mind those stocks and the analyst outlooks for next year. i'm dominic chu. >>> feeling richer? maybe you should be. household wealth in the united states has hit a record. according to the federal reserve, a buildup of real estate and stocks helped drive american wealth to more than $90 trillion in the third quarter. and the number is likely even higher now, since the market has rallied over the past month. >>> the outgoing chair of the secur

former ibm ceo and a former national security advisor. i'm pleased to have both of them here. tell me exactly briefly, quickly, then we'll turn to our does other contemporary issues and come back to the report per se, how this came about. >> it came about, the president looked at what the challenges were and things that had been addressed in the first seven years of his term and determined

>> ibm. >> correct. >> ibm. >> did i set it up wrong? >> no, i think we did it last week. >> you know what's really -- >> the day after the holiday party. >> ibm is up 23% this year. >> it was the -- >> i've been critical, i don't know about their strategy, investors are clearly on board, and beaten apple and amazon -- >> you know what is sad. twitter can't get a break. the president-elect uses twitter all the time and it is a laggard that just doesn't -- >> what would twitter be without trump? >> true. >> just a twit. >> yeah. >> thanks, dom. >> we're moments away from what we're calling the 2:00 p.m. lift. stock moving much higher about this time for the past four trading sessions. will it happen again today? will we achieve dow at 20,000? we'll find out next. >>> with welcome, everybody, second hour of "power lunch." glad you're with us. i'm tyler mathisen, melissa is here, michelle is here, brian is here. it could be a historic day in market history. in the homestretch now as we move toward 20,000. will we get there today? who knows.

forget xerox, ibm and cisco. why some investors are keeping an eye on new tech as we inch closer to 20,000. there are many things you don't want in industrial strength- like coffee. but there's one thing you do. you guys okay?! it's called predix from ge. the cloud-based development platform that's industrial-strength strength! >> the dow takes aim at 20 k ho has old tech faired versus new tech? our deirdre bow says that one market in san francisco looking at those numbers. hey, deirdre. >> hey, carl. well, it's really been a tale of two tech stories over the last 10,000 point gains for the dow. gray chips versus fangs. the older tech companies versus their younger brethren. facebook and alphabet, formerly goog google. it's pretty well known that the high-flying fangs have been outperforming their peers over the last few years, but to the extent which it's been outperforming them and the broader market since the dow crossed 10k is eye-popping. since october 14, 2009, the fang basket has returned more than 870%. t

what is your view going forward on ibm? >> yes, so ultimately what we think ibm needs to do is produce sustainable growth. and we don't have that growth rate or that inflexion point that you pointed out, really happening until 2017. once that sustainable growth is established, assuming it is, then the multiples should come with it. what you accurately pointed out is that the strategic imperatives, about 40% of revenue, they're growing 16%. the real problem is the other 16% of revenue declining 9%. so if eerither grow faster or t core business declines at a lower rate, then you might see that inflexion point sooner. i think the move in the stock this yore was basically based on the fact that the valuation has been fairly compelling and as you said, you know, the market is at an all time high. not based on fundamentals because earnings have been revised down. >> we talk about a lot of companies, particularly retailers and big importers that may get whacked on the u.s. dollar. currency has helped ibm. we continue to see the do

and i think back to that ibm introduction. at my firm on wall street we had the number one ibm analyst who projected boldly maybe at some point in the distant future half of american households would have one pc. as we know that was completely off the mark. what we are looking at is optimism that drives consumer spending. but most important in this era it will drive business investment, and that has bent lagging indicator in this economy. david: we only have 15 seconds, i'm sorry to do this, but do you think it's possible we might have the introduction of a whole new industry as a result of all the new incentives? >> of course it is. this is america. we are going into a pro-business environment. pick the fruit but take some profits out of small cap, stay invested and buy the dip when you see january volatility. david: for more on markets tune in tonight or "wall street week." and we have a special guest. if you will ex kielts, a little introduction to myself. i join the crew to talk stocks and my own market picks. turning to a

-- trump comic council she announced ibm is creating 25,000 jobs in next four years 6,000 will be in 2017 in united states. this is exactly what we want to hear. jobs for americans created right here at home. >>> but you know silicon valley for the most part will be trump tower in new york city today. larry page of alphabet will thereby and jeff basos of amazon and elan musk from tesla. many voted for hillary clinton and vocally so. it will be interesting as they talk about immigration reform and bringing profit stashed overseas back home and who will not be there this blows my mind jack dorsey ceo of twitter. i think donald trump twitter go together. apparently he was not invited. >> hm. okay. >> and we know that everybody else was invited or did they invite themselves? i don't know how that level. >> invites went out and rsvps came in. >> wow interesting. >> and we're not exactly sure who will show up. tim cook from apple will be there as well. >> before we let you go. >> the bigwigs. before we let you go what is going on i love dorito ads in super bowl. >> i know, dorito owned by

we beginning this evening with a report on cybersecurity we talk to sam palmisano the former ceo of ibm and the national security advisor to president obama. >> he has in each of his presentations the last four years to the congression on the major threats facing the united states ranked cybersecurity number one and it's just not the case the country has treated it as the number one threat. we have far more resources and emphasis and share and attention to counterterrorism which is it appropriate and a homeland security but in terms of a whole range of dimensions underfocussed on the cybersecurity and there were a number of things we could do to enhance cybersecurity and how the commission came about. >> rose: and a now fill by mark wahlberg and we were joined about the conversation about the "patriots day" film. >> if every day you turn on the news or open the paper there's another attack somewhere and we wanted to promote the message love will always win and wanted to come together and unite and how my town reacted in the face of terror it made me proud. >> rose: and conclude with and

show me ibm, please. their jeff writing in usa today, that the company's going to hire 25,000 people in the next four years, in america, that is. liz: uncork the champagne at trump tower. and gino row mete said they want 25,000 jobs, they had this opening. is this saying, trump credit, here comes trump and have 25,000 hires? they need those jobs. rometti saying they need technical jobs and they want the government to spend more on vocational degrees and there's half a million tech jobs. stuart: and she made this announcement. liz: they made it in march and put out an op-ed. >> and boeing did this. big businesses have to get ahead of donald trump taking jobs, silicon valley destroying job opportunities. and she wrote a letter saying that ibm wants to help. i can tell you right now, it's also with the tech giants are going to ask for are more h 1 v visas, they're saying we've got 500 jobs openings, we're spending a billion dollars and the federal government has to let us have more foreign workers and help u

, with data center and some of the areas where ibm's planning to grow. so i would expect to hear that they're focusing in on those issues of common grounds and perhaps trying to avoid the areas of disagreements, some things perhaps around encryption and immigration. though you never know. of course we'll be listening up for all the information we can get once they're out of the meeting later this afternoon, guys. >> it's interesting, jon, the degree to which tech and telecom to some extent have tried to appear to be bringing something to the table, whether that's an ibm today, a softbank last week, even arguably amazon this prime air announcement this morning, jon, hard to think it's completely just a coincidence. >> well, i think we've got to read a little something into everything nowadays, but when you think about it, i mean, there's a lot of talk about manufacturing jobs. but that carrier deal even to keep some jobs here you got to recall, i mean, most of the jobs that we're talking about in that deal are leaving. and think about the number of jobs t

they know the head of ibm is telegraphing big over the next few years. and bemoaned the fact that white-collar blue-collar, and beneficial, is that what they see on this event? >> i think it will. he will continue on that dimension today he meets with these folks, >> the biggest tech names, they are not the type of folks, how do you think it is going to go. >> hard to tell. >> they get a lot more practical once they realize, change can be driven to washington dc or influence the change, one of the things about jobs in the tech sector, it is not a labor-intensive kind of industry. ibm hires hordes of people, most of these other companies are not labor intensive. i don't know that that is the best theme for him to work with this through. neil: going back to microsoft, that shows american ingenuity in the tech sector. since donald trump's election, and a group of stocks and major ones. >> the notion of immigration is important, and donald trump is against immigration. the notion of the tax code and bringing dollars back and that has been in line, the expect

in new york, ibm researchers have developed watson, an intelligent software system at the forefront of the revolution. >> it can understand somebody's personality type, look at e-mail, for example, and tell you what is the tone of the e-mail, what kind of messages are coming through. it can look at a big encyclopedia, extract the concepts and the relationships among those concepts. narrator: watson operates in the world of big data, extracting knowledge from the billions of facts and figures floating through cyberspace. >> i look at the world from the point of view of the data that there is, and the amount of knowledge that is embedded or inside the data that we are not able to extract today. therefore, we are not able to make the right decisions. for the industrial revolution, to me, is the ability to have a much better understanding of the world through all of the data, and therefore, making better decisions for it. narrator: ibm is currently running a research project in which watson augments the intelligence of medical professionals, helping doctors treat the most dangerous disease

ibm's u.s. work force has actually declined in the past five years. and apple's new stand alone support app is now available. you can find documents, schedule appointments, e-mail or chat. the app provide a streamlined way for people to access the help that they need. back over to you. >> there you go. another option for you. >> thank you. she talked about elon musk there. one of his companies grounded fornow. spacex is pushing back plans. that launch which was originally scheduled for next april has now been delayed until 2018. spacex is making sure it doesn't have a repeat of what you see right here. it happen at cape canaveral back in september. an unmanned rocket exploded in testing. >>> edward snoend took his message internationally this week thanks to san francisco's periscope. yesterday jack dorsey spoke to snowden about cyber security, government surveillance, and recent election. snowden is still in hiding and says he believes he did nothing wrong by explosion classified documents. he warned anyone on a cell phone that the government is liste

. >> host: ibm and immigrant myself from the dominican republic. but i grew up in new york city in the late '80s. in now they remain with pockets so i want to ask you if you think geography plays a role of of identify errors . leaving in n places like new york. >> right team this book completely because there is the assumption that it could be gang-related. and on one level and then the victim. but actually if one doesn't do the one doesn't the dissenting gang-related. but with that public opinion but he was wearing red walking down the road, is that gang-related? to the extent is that it's gang-related? and as a stray bullet in this complicated actually. and not just a way to think about it but if you are in the soviet union. that's they dominate the block where you live in and everybody has some type of relationship to beginning. it could be complete the middle so how do we say and then you have to live there. so it is not like an affiliation. and then people pay their dues. so when they see the term gang-related now i say what is the relationshi

this was the first ibm computer. headquarters.ok this is silicon valley. well, that didn't happen. but in modern russia, it's easy to get confused. with an extra helping of spy -- spycraft, technology here developed a world apart from silicon valley, and that did not change when the soviet union collapsed. 25 years later, russia has copied large parts of the web the rest of us know and love. they built the russian internet. and with the new laws cooked up by the kremlin and rubberstamped in moscow, more and more, it's a sovereign internet. like anything sovereign, it needs walls to protect it. and virtual walls are going up today. to find out exactly how the russian web works, there's only one thing to do -- i had to upload myself. now that i'm inside, i will meet a tech oligarch, travel to into a, and dive surprising and very remote startup scene and chase the ever elusive russian hacker. >> you could create the technology which helps to predict the crime. >> silicon valley may be home to some of the biggest tech giants in the world, but it's being challenged like never before. so

ibm until yesterday. microsoft. the president-elect vowing to help those companies do well, to help them innovate. trump has already proven his administration is focused on jobs and he wants the technology industry to do their part as well in job creation. they employ about 600,000 people. but they employ far fewer employees than less valuable companies like walmart. but there are already signs the trump magic is beginning to work even 36 days before taking office. ibm, before today's meeting, announced plans to invest a billion dollars and hire 25,000 employees the next four years. he has pledged corporate tax cuts and repatriation which would be a boost to, for example, apple that currently holds more than $200 billion overseas. it's time for trump's detractors in technology to work with him, to create jobs to the boost our economy. because he's also making it very clear he will be be their biggest booster, or he will be the shareholder. either way, trump's the right man for the job. our quotation of the evening f

ibm is one of those. we did eight deals in our sort of large-deal segment of which we did 38 deals over $100,000, so eight were through the ibm partnership. i know that we have 69,000 customers globally now at this point. we brought on thousands of more customers in the quarter. so we're pretty diversified in terms of how we get to new customers but ibm has absolutely been helpful in reaching new markets and regulated industries, governments and especially a lot of our international segments that we're growing in. but it was a phenomenal quarter. we did $102.8 million in top-line revenue, our first $100 million quarter and grew 31ers% year over year. we're happy about the quarterly results. >> you also raised guidance going forward. tell us about your line of sight into enterprise and consumer spending and the demand that you are seeing for new products like governance, zones, relay, which the marketplace is just really getting to know now. >> our whole strategy from day one has been we're building out th

ibm, a laggard for a few year in the dow, up 24%, walmart and merck, top five in terms of total return this year. if you look at the projected dogs of the dow, you have verizon, pfizer, chevron, cisco, ibm, exxon, coca-cola, caterpillar, procter & gamble and merck. we will see what happens at the end of the year. if you look at the projections for next year, analysts on average have some interesting targets. they're projecting if they're correct pfizer as the biggest gainer among that dow jones industrial average dogs set, up 23%. merck by 13%, coca-cola by 12% and after big runs this year maybe caterpillar and ibm giving back some of the gains. analysts have not upped their price targets. as we talk about the dogs of the dow, those stocks would be the ones to watch if those analysts are correct. dominic chu at the wall with your dogs of the dow. >>> dogs of the dow? cats of "street signs"? >> yeah. >> china's grand chip investment fund dropped its take over bit for the german chipmaker, aixtron. the 670 million offer was already in doubt amid growing objections from regulators over th

liz: talk about jobs, ibm ceo, now saying that ibm will create 25,000 jobs over next 4 years. giving trump some help. here is thing, ibm already promised or said last march that would create the jobs they said -- he made that vow after trump, you know he is warning businesses and muscling businesses, he stopped carrier from going to mexico, listen to that. >> companies are not going to leave the united states any more, without consequence. we're going to do great things for businesses, no reason for them to leave any more, your taxes will be at very low end. and your unnecessary regulations are going to begun. liz: there is some criticism from you know pun cut -- pundits, so-called analysts. naming and shaming them on twitter, what do you say? >> patriotism, loyalty, love of country, my god, what a beautiful concept to bring back to america. i am loving it. you know these companies have made a lot of money off of the backs of blue collar middle class workers, i like the idea of donald trump working the tax in the regulations down, so we can keep more jobs here, that way more a

it's where four beds are conducted to ibm's artificially intelligent nursing system. collecting all the vital signs from the patients in the beds, it gives the nurses a more complete picture of who needs the most care. in one of the first trials of its kind in the world, the ai is constantly monitoring output and making connections on a vast range of data, including a commonly used scale. higher scores correspond to a higher incidence of death, and it is particularly important in the first 2a hours after admission. this patient has four alarms, so if you don't see anything flashing here, it means it has been acknowledged already. one of the patients in the ward is at the high end of the alert, and nurses can quickly access the information in real—time and look at patterns in their vital signs to see if they are at greater risk of infections, like sepsis. here in the uk, it's the help ai could provide in imaging which is the focus of research between the nhs and google‘s deepmind. the uk's royal college of radiologists says 99% of hospitals are struggling to keep u

over the years, ibm has done a great job. talk a little bit about looking to the future, transformation of businesses, whether it is, you know, customers or humans transforming, what ibm is doing. virginia rometty: you have learned a lot, too. promod haque: i have. virginia rometty: i want him to share -- i will answer, but i want him to share -- i found a fascinating list of things he said about which kind of companies make it and don't make it. i don't know if you remember, but you will have time while i talk. so back to what, lessons learned or observations, maybe? because i guess, one, sometimes people say to me, what would you advise a young company or -- and i sat there and thought, i think we would probably all say it may be some of the same -- same things i would say about my self so it does not matter. i look, we are 105 years old. anybody with companies in that circa for that era? anybody in the room? that would make me. ok. [laughter] we are 105. and you have had time and i have had time to reflect on this, we were

ibm already out with a statement of how they hope to hire more than -- or around 25,000 workers over the next several years inside the u.s. as part of their efforts around data center, around cloud and the transformation that ibm is going through. quite a few topics they can discuss here, carl. >> don't go anywhere. we'll lean on you as well. tech ceo's make they're way to trump tower. one of kara swisher's latest columns titled, as he sets down the hair for tech, shame on silicon valley for climbing the you toer in silence. she joins us on the cnbc news line. good morning. >> hi, how you doing? >> i'm good. you made your point pretty forcefully earlier in the week. what do you expect the meeting to be about? >> about donald trump's photo app. that is pretty much what i see. it's great for donald trump. fantastic. they're all coming there. they probably won't say much of anything and talk about bringing jobs to the u.s. and try to look cooperative, i think. >> do you think it will go better or the same as meeting between membersst media and the president-elect a couple weeks ago? >>

microsoft, ibm and amazon, which alieus their customers to connect to those services. that makes gtt morrell vant. why has the stock been on fire? look, cloud traffic is expected to grow and an astounding 191% clip for years to come, meaning huge need fournette working services. on top they have a smart business model, not the lean asset light element but also facts that 90% of the revenue is recurring over and over again because most of the clients signed up for one to three year long contracts. i like the larger internet providers. gtt has less exposure to declining businesses. take the traditional telephone business nobody wants anymore, that's part of the reason they have a faster growth rate than most of its peers. the they increased by 35%. we don't have 35% growers. there's one more element that makes the growth possible. gtt communication is a serial acquirer. over the past five, six years they have made a host of smart acquisitions that transformed the company into a truly global operation with impressive reach. most recently gtt announced plans to acquire hib

ibm, a laggard for a few year in the dow, up 24%, walmart and merck as well. those five the biggest total return gainers in this year's dogs of the dow. if you project out and things ended today, here's your ten stocks that will be next year's dogs of the dow. verizon, pfizer, chevron, cisco, ibm, exxon, coca-cola, caterpillar, procter & gamble, and merck. among those ten tocks hypothetically, check these out, five names possibly to watch. analysts say pfizer could go up 23% this year, merck by 13%, coca-cola by 12% and after this caterpillar and ibm giving back the gains. keep an eye on those. it could be names to watch in the dogs of the dow. back over to you. >>> one of the older and simpler ways of picking stocks but it works some years. for more on the markets let's bring in ubs director at post 9. art, let's dial back to yesterday afternoon in terms of where that rally came from. people talk about some very big orders hitting the market right after noon. we followed along with that. is there anything left behind that? >> well, i think what was happening

that's what t ibm cloud is built for. >>> welcome back. christmas may be over, but the giving continues. the giving back of gifts that is. and the rueturn race is make ita busy time for the shippers. morgan brennan is live with that story. >> hope you had had a good holiday weekend. let's start with amazon. amazon says that this holiday season it shipped more than 1 billion items worldwide. its peak shipping day, december 19th. some of those items will get sent back. that's because analysts estimate about a third of all online purchases do get returned. that's made services that collect process and resell unwanted gifts sought after. that's why fedex acquired jenco and u.p.s. announced an investment in optoro last week. it is a tiny fraction of the overall peak season volume. but it is one that is growing at a double digit rate. returns aren't just a growing business for the parcel carriers. returns have become crucial for retailers as they try to get consumers into the stores with those unwanted gifts. that's a dynamic that drives foot tr