Im Carl Quintanilla along with jon fortt. A big week for tech earnings amazon, intel, microsoft and twitter on deck this week on a positive start in the runup in tech continue dan and steve are here with me with answers good morning, guys good to see you. Im wondering, dan, before we get to the bignames, if you have been thrown as a breakdown of software and worries about i. T. Spending the next few years . You are seeing cracks in the armor. High multiple software crowded from the institutional perspective. Many head or the exits it is overdone in what we are seeing it shows the risk in earnings season continues to be front and center steve, quickly on that . I would agree software particularly has been taking a header. Companies are doing fine you sell at 38 times and 8 times sales, it doesnt take much to take the stocks down we will play it out a few more months before coming back. Dan, it is cloud week how much does that matter versus intel with insight in the i. T. Spending question . It is massive when you look at microsoft as well as amazon from the aws perspective, that is the key driver the fuel in the engine for the i. T. Spending. That is a big focus from workday and others i see the strength on microsoft. I think 3 to 5 beat in cloud aws, you see strength. This could be something, a feather in the cap, take software higher. Steve, the socalled faang earnings with amazon this week in the last couple years, they are performing which have powered mashltpower ed markets they are trading in line faang is under performing the investor set we did is worse for faang. Particularly with facebook valuations are reasonable if you look at facebook it is not too bad. What they are going through last week with Mark Zuckerbergs speech is the platform problem how responsible are they for what happens on the platform they were taking actions and now saying we have done as much as we can do. We need free expression. Dan, i want to go back to what you were saying about cloud being a catalyst, i guess, or a bellwether for i. T. Overall. How long has that been the case and how easy is it to read through the numbers for azure and the numbers for aws for the semi manufacturers and server providers and so forth. And combine with intel. To put numbers around it, 30 of the workloads are in the cloud 55 in the next three years. You look at the i. T. Spend, cloud is spending 6 to 7 times that number. A read through further down stream on the application players and infrastructure that is why intel is the other missing piece. If you look at chips and software, thats the one where you see the stock move higher. 10 to 15 i view as a positive catalyst with aws and microsoft as read through Going Forward. People are betting big on a cycle recovery even with inventory as high as they are. How much is being overdone they are overdone semi is the out performer in tech particularly the equipment space. You have inventory which is high down 10 this year and up 16 next i expect improvement if the cloud guys come back and spend that is a jump a lot is discounted with pmi coming down. We like semi pulling in a little bit. Dan, you cover so many names within the tech space. What do you like the best now and why . To me, apple. From a large cap perspective, apple. If i look at the asia, 15 to 20 . Relative to where the street is on service i think numbers go higher. On large cap i like apple. Software, these names have gotten hit Cyber Security going into year end. I think some names that continue to stick out you have palo alto and risk reward is positive. Steve, we have seen microsoft pretty much treading water since the summer amazon down since then what numbers do you think we have to see from the cloud businesses in particular to get those really moving higher well, microsoft treading water is pretty good in software we still feel that is a chart that is moving up of no reason to think the azure numbers are not going to continue to grow at a higher rate 70 . Aws is growing 40 today there is the thought that for the most part the year the cloud guys are spending on buildings and going into next year and fairly soon you see spending on equipment again which benefits intel. People will look to see if the cloud guys coming back and if they are, it justifies higher prices for the names steve, the same question to you as i did to dan. Is there a specific name you like the most right now and why . As a strategist, i dont have stock recommendations. There are internet names i mentioned faang. Video is well positioned for the longer term. Held off the graphics competition over time. That is more important with the depend seance on artificial intelligence. Guys, thursday is the busy day. Thanks, guys dan and steve, see you soon. When we return, finally a good idea for facebook thats the title of the next guests latest column. Kara swisher joins us. Stay with us after the break with geicos help was pretty fun too. Ahhhh, its a tiny dancer. They left a ton of stuff up here. Welp, enjoy your house. Nope. No thank you. Geico could help you save on homeowners and renters insurance. Or trips to mars. No commission. Delivery drones, or the latest phones. No commission. No matter what you trade, at fidelity youll pay no commission for online u. S. Equity trades. Do you feel like you are giving a green light to politicians . Lie, lie, lie . I believe that it is important for people to be able to hear and see what politicians are saying i think when they do that, that speech is heavily scrutinized by journalists and people that is facebook founder and Ceo Mark Zuckerberg with nightly news anchor lester holt. This comes after facebook announced a plan to police toxic social media content using an Oversight Board. Our next guest says is a good idea all of thiscomes on a good wee information facebook Mark Zuckerberg is going to testify on capitol hill. Joining us is columnist kara swisher. Good morning. Mark zuckerberg just gave the speech last week defending free speech, i guess. What this has to do with facebooks algorithm and policies is not clear. What do you take away from that and this pr offensive . It will not end this week i was at the speech. It was an unusual speech i wasnt sure what he was trying to say except free speech good china bad. Thats the cliff nots notes of. A lot of people objected to it with the binary choice of free speech and platforms the point he was making and he did it with the clip with the politicians. The more people hear things, the better the more people hear lies, the more lies stick in peoples brains that is the debate and complex issue he did not addresaddress. He started with the premise that free speech is good for facebook it is not clear how good it is the way it is presented for society. Kara, why would an Oversight Board be a good idea why get behind that idea largely because i want to be chief justice of the Supreme Court of facebook. No, it is interesting. I think the idea of the major issues settled by a group that is not done by executives is really interesting it is affecting billions of people with type and content it could be an interesting experiment of what 40 people around the globe can think about with content and have a really substantive discussion about it. Kara, here is my issue. The Oversight Board is worried about the algorithm . You got to make a decision of reversing things, but should it be about the group thinking how should messages get out there . Is it getting results it should be mark years ago talked about the algorithm would fix it it doesnt it has to be a combination of human Decision Making and this the Supreme Court works well in this country whoever is on the Supreme Court. It is an interesting way to rise the biggest questions up it doesnt mean there are no millions of legal questions. Certain rise up for decisions. If it worked properly and given the amount of power they say it has, you could cover a lot of big issues if they rise up correctly. Thats the question. How is it funded how much work can people do . How much policy could it change at facebook without facebook wanting it to change i think one of the things that is difficult is facebooks Business Model of engagement and birality turns into even rnrage quickly. Can this benefit mark talked about that without ignoring the problems. Kara, the other problem is section 230 and what to do about that not just facebook. Other Internet Companies how do you think about it and what is the right move it is complex some people think they should get rid of it or a fairness doctrine or tweak it they tweaked it already. Theres been some unintended consequences of hurting businesses and helping others. The question is how do we look at these companies in the modern age . Not 20 years ago when they were start ups. It is devastating to get rid of it and thoughtless it is a really important law and it was important to the growth of the companies the question is how can we better help police themselves by regulation and take some of this off the hands because they are not good Decision Makers how can you make a decision that directly affects your pocketbook so you dont make that decision especially with shareholders you have to keep satisfied the thing is facebook and the social media sites have made your lives reductive. We should spend time thinking about them in a complex way and not leave it to the companies to make the decisions there Mark Zuckerberg and i agree. You want to mention as well and msnbc reporting facebook unveil Election Security measures this afternoon. We will look out for that. Yes, indeed thats coming. Thats interesting around the politicians. Allowing politicians to lie. What mark was saying in the interview is leave it to the media to clean up our mess is that the right thing . I dont know it should have a big debate about it we will see what they say about Election Security. Do we want to leave the security of elections only to facebook . I dont think we do. Thats a big question. Im interested stay what they say. As far as zuckerberg on the hill goes. Wednesday talking libre. Jamie dimon said it is a neat idea that will never happen. Now i have nothing else to say about it. Thats about it me too having facebook you know i said this. Wade into currency is something we should think hard about losing payment partners is significant. I dont know what they will talk about. One of the problems is that libre had other partners he probably cant comment on that it will be interesting to see his take at the very least kara, before we let you go. Interesting weekend for interesting names. Mark esperanta and pierre. I love that just to let people know what we are laughing about mitt romney admitted to be the owner of the burner twitter account otherwise known as Pierre Delecto liked tweets of trump and defending himself gently against detract detractors this account was very much in romneys personality he did not have a weird alter ego on twitter the name alone, jon, come on. The name is weird. I love it. It makes me think i have to rethink mitt romney a little bit. It was clever. I like he talked about it and answered after he figured it out. I love the entire i love it this is when i love social media. It is funny. He was using it in an interesting way of the he admitted to it he is the antitrump on twitter. Pierre delecto he replied 15 times over the period of four years and took it private. I think he should be president. Only Pierre Delecto should be president. Not mitt romney. I liked it nothing wrong with pierre. I think i said the name so many times. Its fun. Pierre delecto also fun, kara swisher thank you. Bye dow up 30 points with the drag out of boeing hovering near the flat line after the jump to start the day. Here are the names leading the index so far were back in just a moment. See thats funny, i thought you traded options. Im not really a wall street guy. Whats the hesitation . Eh, it just feels too complicated, you know . Well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade if youre on medicare, remember, the annual Enrollment Period is here. The time to choose your medicare coverage. Begins october 15th and ends december 7th. 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With Portfolio Managers focused on the long term. Who look beyond the spreadsheets to understand companies, from breakroom to boardroom. Who know the only way to get a 360 view is to go around the world to get it. Can i rely on deep research to help make quality Investment Decisions . With capital group, i can. Talk to your advisor or consultant for investment risks and information. European markets closing shortly. Seema moody with more. Jon, inn vefrt vevestors awas on the brexit. A blocked vote on the Boris Johnson deal the british Pound Holding steady the attention shifts to tomorrow when lawmakers begin debate on the normal withdraw agreement bill to bring johnsons deal into uk law. The situation is fluid headlines are pouring through. Britain scheduled to leave the eu in ten days time. One stock moving is maersk. The company issuing an up beat outlook. That is despite lower freight rates. Up about 8 . Tomorrow, two earnings reports on volvo and pernaud thank you. Sue herrera has more thank you, carl turkeys foreign minister reviewing the warnings of the military offensive in northeast syria if kurdish fighters do not vacate before the end of the brokered ceasefire. He was speaking at the world forum 2019 held in istanbul. Hong kong police confronting protesters during the rally as demonstrations continue. Dozens of riot Police Deployed for the sitin protest at the subway station. Julian assange appearing in a london court for the extradition case to the United States washington accusing assange for scheming with Chelsea Manning to break a password for a classified government computer that case is expected to take months to resolve. Day break in dallas, texas, revealing the damage from the powerful storm that spawned at least one tornado. The National Weather service saying the twister touched down near Love Field Airport before it tracked northeast through the city leaving a debris field nearly 20 miles long thats the news update this hour ill send it back downtown to you, jon thank you, sue. Now Raymond James taking apple up to 280 this morning from 250 thats the price target maintaining and reiterating optimism ahead of the 20202021 cycle for iphones. Shares up shy of 2 at 240 analyst behind the call on apple join us. Chris queso. Good morning good morning. Chris, apple support 20 since the summer on channel checks on the iphone what is not expected to be a really big cycle what gives you the confidence it goes higher from here and how much of this hinges on them releasing a mid cycle update to the iphone this se 2 early next year it is a follow through from the cal we made in july on the basis of the 5g cycle in 20202021. The fear at the time was this current cycle would not be so great. What it turns out, again, what we found going out to asia and supply chain checks, this cycle is okay. I think that gives you a good bridge between now and that 202020 2020 2020 20202021 cycle. The stock is reflecting that it is a twoyear cycle apple, there hasnt been a compelling upgrade for iph