We have more on his appearance, plus reaction. And the huawei perspective. We get thoughts from the chinese telecoms Carrier Business Group on 5g, securities concerns and more. But first, our top story. Ibm fell as much as 6. 5 , the most since october 2015. This comes after the fifth consecutive quarter for posting slower sales. Joined by my am guest. Lets start with the top line decrying. Is there not enough growth from red hat to offset the cost in that core business . Yes. Frankly, this is a question of one word, which is expectations. There are a lot of expectations for red hat that paid a lot for the Company Going forward. If you look at ibms core business, they are managing it for profitability as best they can. But the Global Services segment has historically been a profit driver and a cash cow. But you have to remember as people build the hyper cloud they moveture, as more of the cloud, there needs to be in the Core Technology space that change. They will need to drive efficie
Wake of his tweet about the china tariffs. The president said he wasnt worried about it he, in fact, expected it he said it is because people dont fully understand what his tariff strategy is in fact, the president here blaming the market for not understanding exactly what his approach is to tariffs and to china. He was also asked by me exactly why he picked 10 as opposed to 25 or 5 on the tafrs he tariffs here is what he had to say. I did more than anybody thought with the first 250 billion and the 10 is for a shortterm period, and then i can always do much more or i can do less, depending on what happens with respect to a deal but im very happy the way it is right now. So the president there saying that he could go up to above 25 if he felt that was necessary, but he said he doesnt see that as being necessary at this point. So that puts a lot of tension now on those negotiations between the u. S. Side and the chinese side here in washington in Early September the president was also a
Big news out of the United Nations, nikki haley announcing a cut in next years budget after the un voted to call for donald trump to withdraw his plans Israeli Embassy to jerusalem. Varney and company starts right now. Charles lets look at futures, under pressure all morning, fractionally better. Lets bring in zach hour. Everybody wants to know 205k in 2017. In 2017, i dont see why not, certainly lets call it by valentines day a couple points, next year will be a strong year for the stock market, the first half of next year especially. I am worried about a blow off topic for the market sometime next year but that is all the more reason. Charles you could argue this year, last year, the year before, pretty long market, people are calling for it. Prices are not crazy, prices are okay, we are introducing new money into this economy with conditions tight. What i worry about is a faster rise in Interest Rate than we expect giving more competition. The cd rates, why am i taking this risk in
Thanks, simon. We begin this hour with trading troubles in the market. The three big areas were focusing on macro, fundamental and technical, and dominic chu will lay out the bull and bear case for each. Dom . Theres strong and theres a lot of them on both sides of the equation. Sure. Lets talk about the macro Bigger Picture scale first. First of all, you have at least whats perceived to be some economic strength or resiliency. Maybe not robust growth. Still, in the eurozone and the u. S. , yes, i know the eurozone is stepied at best and may be slipping back to recession but its holding in there and the u. S. Holding it better than most economies out there. Thats kind of the bullish case if you want to see it that way. Take a look at china though. Slowing growth there. Growing faster than any of us out here, but, still, that slowing growth may be a huge case for the downside of chinas economic woes really deepen as the market it your miles condition. Lets take a look at whats happening
Apples stock might climb. First, 30 minutes into trading day in the u. S. No doubt nominated to a certain extent by apple and Goldman Sachs. Julie all three major averages extended yesterdays rally. It looks like we could have record highs for major averages on a closing basis when all is said and done. The dow, leading the gains followed by the s p and the nasdaq. Apple has outperformed the major averages, technology specifically. We have a chart illustrating map. Shares of about 55 over the past year. You have the s p infotech index in blue and the s p 500 itself in yellow. Apple has contributed to the gains we have seen. In todays session in the runup to this event, apple shares are lower. They started little changed and the kleins have been accelerating. On the daytch apple of one of these events, you want to watch suppliers as well. Ourom m cirrus logic are on list. As for today, apple is not helping matters in terms of todays rally. What is helping our financials. Many regional b