Equities, not much doing on the upside or downside. Oliver a little bit of a breather. It has been a fast run up the past couple of weeks. You mentioned the dow, so i will take industrials. , theare in the s p 500 industrial sub index is doing well. A few stocks really jumped out. Kansas city southern, general dynamics, delta airlines, lockheed martin, as well as going. They all closed above a percent. Good winners on a day where there was not much as joe pointed out, tons going on. We also want to look at the trends that has not gone away. That is a low day, even when you are flat. The vix keeps on plunging new lows, volatility absent from the market right now despite the geopolitical events happening all over the place. Joe also a very quiet day on the Government Bond run. Here is a five day chart of 10 year yields. You see them taking higher for several days. We are still incredibly low. A little bit of a decline, but even that is pretty quiet. U. S. Et in currencies, the dollar at a three month high. This runup is nothing like what we saw in 2014 and 2015, but still something to be wary of in an earnings series. , resuming his decline against the dollar. Central bank cut Interest Rates by 25 basis points, less than it had been doing up until this point. President hertha he is hiring institutions, the academics of the next to be removed from their post. As we heard yesterday, it is a bad time. Not confidence inspiring. Take a look at silver. Silverlight gold, off to an incredibly strong start silver, like gold, off to an incredibly strong start. Four days in a row down, the worst in eight months, amidst lots of bullishness, keep an eye on that. Scarlet those are the market minutes. Lets take a deep dive into the bloomberg. You can find all of these charts using the function of the bottom of the screen. Taking a look at bank earnings. Pa go. Ng here we can highlight how will the financials have done right here. On average, sales down 2 , 6 ningspershare rise better than the s p at large. If we dig into financials and you look at banks and the results, we will highlight that here, go into company by company names, what you will see here is that if you list them out, every single one of them has beaten estimates. The exception is comerica, with the surprised to the downside ever size slightly ever so slightly. Citigroup, bank of america, on the sale side as well. If you backtrack into the diversity financials, which is what Goldman Sachs is considered here, lets pull that up, you can see that these names have beaten as well. You know what, that was the wrong sticker. This is live tv, this is what happens. We have diversified financials, including Goldman Sachs, schwab, blackrock all feeding in. Certainly for Goldman Sachs, the biggest margin ever. Not ever, but among those groups. A big thing for the reporting season. How much the post brexit trading would lift Capital Market revenue. So far, it is good. Joe and the bar has been set pretty low. You have to wonder are we at an Inflection Point where people have gotten too pessimistic on the financials . I want to talk about the lira and go into the bloomberg. I am looking at lira volatility, specifically between one month implied volatility and three months. Both asserted there has been a surge lately. People are concerned about the shortterm, what will happen in the next several weeks and posted a slightly longer term. If you look at this surge, the last time there was a similar surge in red was last summer with the turkish elections. So we have seen volatility rise across the curb, one month, three months, but the onemonth surged much higher than the threemonth. People are concerned about Huge Development happening now. We have not seen this sort of inversion since the elections last summer in 2015. Oliver that is a huge spike. You see there is a trend upward over the next several months as well. Scarlet lets get breaking news in here. We have microsoft reporting earnings. The Fourth Quarter adjusted earnings of . 69, topping consensus estimate of . 58, higher than the most bullish estimate compiled by analysts. 60 nine cents for adjusted earnings per share. When it comes to revenue, 22. 6 billion, also higher than analysts looking for, which was 21. 1 billion. Coming in at 6. 22 billion, and that is better than what was expected. Microsoft, the story here is the ceo transferring just transforming the company from oldschool software to a vibrant Cloud Services company. Competing against the lots of salesforce likes of salesforce. This past quarter, we got news microsoft bought links in. Linkedin. The deal has not yet closed. Oliver the news is being absorbed well. Observers pushing 55, close around 53. A few dollars jump there. Apparently something they are liking. Scarlet intelligent cloud revenue, this is the part of the business every one is excited about, 2. 19 billion for revenue there. The consensus was 6. 58 billion. If i looking at the right numbers, that is a huge miss for the intelligent cloud service. Personal computing, more million, far off the estimate of 8. 7 billion. I am not sure if im looking at the right numbers. We will get into that more. Joe joining us now to discuss this we have tech economy Founder David patrick and bloomberg editor cory johnson. What is standing up to you so far . Cory the cloud revenue is a weird number. We have to look at the context. Lookn all, these earnings a little stronger. Operating income at 6. 2 billion. Expectations were only 6 billion. The goal of course is a shift from this license Software Model to a cloud model that can keep profits up when they want less money. I will dig into that. The operating number, 200 million is the plus side of what expectations were. Joe david, i know you dont have a computer in front of you you are looking at turnaround by sergey a delly. Looking at the four q, 2 billion versus 2. 2 billion. What do you want microsoft to spend that money on . Cory call related stuff. David cloud related stuff. My problem with microsoft is , not just they have to become a Cloud Company but have to fundamentally continue the transformation of their Corporate Image of they are seen as a troop here of google true peer of google and amazon. They got addicted to oldschool that it isr so long taking time to get to this new art. Scarlet and david kirkpatrick, ceo of tech economy. Anrosoft is applying applelike approach to hardware. What do you mean . Oliver they Service David they service at themselves. One of the most incredibly transformative devices in the computer industry in the last two years, taking charge of the hardware design again in addition to making maps with the software they design, which is doing well. , computerf tablet hybrids that they have taken to market, is making a big impact. That is helping windows. Windows is a little slower than i hoped for windows 10, sales. Be a growthinue to opportunity. A lot of my thoughts apple is as well. Owning that microsoft is a resourceful company. They have shown that most of all by giving the company to the ceo. He is extraordinary. Scarlet we have more headlines coming out, trying to find out the right number versus the consensus estimate. We have adjusted earnings of . 69, and we also have a Fourth Quarter earnings of . 39, andaps one is a gap number one is adjusted. It is hard to figure out which one we are comparing it to. This must be on a gap basis. The company was expected to earn . 57 that was the last, current quarter. We need to go back to the previous. On a gap basis, microsoft was expected to earn . 44 on average for the Fourth Quarter. It would appear on a gap basis, microsoft did earn . 39. On the adjusted basis, they earned 60 nine cents in the Fourth Quarter, and it is expected to earn . 58. So this would be a beat. You look at the numbers more, are they making sense to you, comparing what has been reported versus estimates . Part of the confusion was the division. We see the numbers looking back in comparison. What i am looking for the 2016 gap revenues, they are well off estimates. ,he gap revenues were reported they are 20. 6 billion, which is well under. At the prophet is a high level. I will try to figure out what is going on. Such profitability while missing the numbers, it looks like, on the top line. This is their first time reporting with these new categories here, so we will look through and see what to make sense. It does go to show take a company that was addicted to Software Licensing revenue, shrinkwrap software in effect for decades, and do such extraordinary job with that, now having to become a fundamentally different type of company. It requires a big transformation of managerial style, the weight you count things, and the way you present your company to the world. If they are doing a good job, but it is painful. Scarlet perhaps we are seeing some of that now. I like how you say it, how you count things. David you were a good counter. Tech economy. F and bloomberg editor at large, thank you for your analysis. We have much more coming up, Td Ameritrade ceo running us. Scarlet Td Ameritrade reported earnings up, assets climbed to 9 . Shares are trading near a fourweek high. It is down more than 10 for the year. Joining me now is Td Ameritrade ceo fred. Good to speak with you. Give us your sense of what your results for the past quarter says about the health of equity market and demand and Capital Markets. There was a couple of things to take away. Trading was good in a relatively tough market. Really had one day the market moved over 2 . Last quarter we had 16 of those, but we had a nice pickup in trading going into the brexit and following the brexit vote. With respect to investors, they were reticent to move into the market, but client moved in after the vote and took advantage of the dow drop in the market, and they have done quite well coming back. The down drop in the market, and they have done quite well coming back. We have had good earnings. When you talk about what investors are doing, there is a lot of interest in the shift from individual stocks to etf. There is a particular interest to various strategies whether it is volatility strategy, express, smart beta, low volatility strategies. What are you seeing . How much of that shift is affecting Td Ameritrade . Fred there is no questioning the report today about the amount of money that moved out of actively managed funds and into passive funds. There is a longterm secular trend we are wellpositioned for. Treating clients use Index Trading clients use index a lot. They will increase the futures. To get exposure to other things around the world, trading five 24. But we will continue to see this in this world with lowcost index, where returns are hard to come by. , butr so people trade etf other people like it because it is a sort of index exposure. You can ride out longer terms. Market structure changes where index providers, that is where the money is right now. How does that sort of affects the platform, which i am guessing you will be making money on trade, volume. Does that hurt the business at all . Fred we will make money on mutual funds than etf. The reality is our business continues to grasp assets, and go where the market and the as start investors are going. To 14 billion in new assets in the quarter, so what we are doing in the market is appealing. Your to date, 45 billion. We are good at gathering assets. Scarlet here is the other thing to keep in mind. ,ou see how revenue per trade that is the blue line. Limited. The white line daily asset trading is trading higher. Where does this go . Is it permanent, wide cap down, or is it stabilizing somewhere . Fred in the longterm, the wide path is true of the history of the industry. It will continue to go down. What is affecting us is two things. We make more money out of options than equities, but we make less money on futures than equities. We have seen a pickup in futures of volume, particularly in the quarter, because people were trading around the brexit vote. So that has the tendency to Bring Commission per trade down. We also get you are option contracts per trade. Fewer oxygen contracts per trade option contracts per trade. Mixed. Ly it is mostly mixed. Oliver thank you for joining us. That is the chief executive officer of ameritrade. Scarlet here is breaking news on microsoft. . 58. Intelligent cloud revenue, microsoft is excited about this, Fourth Quarter in coming in at 7. 1 billion. That is better than analysts looking for. Computingersonal revenue, that was a . 9 billion. It is the biggest part of the business that is higher than analysts on average had anticipated. You can see shares higher by 3. 25 . Joe i want to bring back in corey to talk about microsoft. We have clarity to the numbers beyond that cloud number. What does their performance tell you about this quarter . Cory we have three divisions of the company. We have deferred revenues, and they will recognize overtime. Productivity that you mentioned, that is 5 better than the expectations compared to the analysts or whatever. The cloud doing better, 2 . Personal computing, [indiscernible] basically the numbers are better. , combiningd revenue with shortterm and longterm was 10 better than expected. That is good or this company, because it suggests new products moving into the customers are paying in advance of four, paying in advance inside, and the revenues will be there in the future. So that is good news for the company. It shows the transition to the cloud is working even better than wall street had hoped. Scarlet what do you think microsoft learned from the experiment with nokia, partnering with it, buying it, shutting it down . Cory it was a painful lesson, to be sure. It was a big whiff and it expensive. Linked in. Was with the disaster of the nokia thing, they go and do linked in, another giant technology acquisition. Is not a lesson that they have taken away from this. But they also see they are clearly focused, much more on the enterprise microsoft has had with this thing. It is linkedin and microsofts focus. They are from is on enterprise, moving that way. Oliver thank you for joining us today. We will go through the tech earnings. Scarlet emergingmarket stocks climbed to eight month highs. A chart you cannot miss scarlet emergingmarket stocks climbing for the first time in nine days, but holding near eightmonth highs. In my chart, i want to show you how they have gone on a tear once the dust settled from the brexit czar. The blue line shows the etm. The white line measures demand for that, the number of stocks outstanding on this particular etf. The plunge in longterm rates in the u. S. , europe, and japan has fueled a rush of money into highyielding assets like etf stocks. But you wonder how much they will go true in turkey, given investors a little pause from diving head first into these. Things can turn a very quickly. Joe with a little bit of ,elling of major em currencies like we saw with the reality fell a little, but not much. Index is notmarket in spite of the two. You think it would be in spite of the coup. You would think it would be. I want to talk about nintendo, which is writing an incredible way for things to the pokemon go phenomenon. Wave. Ting an incredible it also has surprised sonys market. Remarkable reversal, weird. It is absolutely remarkable. Deutsche bank came out saying this run might be over, it is all priced in, but who knows people cant stop going crazy i guess that is the power of augmented reality the bill love it. People love it. Think we are a gym nintendo was known for innovation, but i will switch back to stock. There is a great function called world equity index. If you type this in, you get a screen with a bunch of different indexes, america on the top. You can click in over here, and this shows you the percent of ,tocks trading above the wrsi and you can go and build a very cool function, which is at g 2146. This shows the number of Companies Trading with a high momentum over this box. It is pretty low considering how far and fast we have come. It is interesting given the 10 Day Moving Average has zoomed. A lot to take in. Scarlet important for this rally we have seen. Oliver there is support and also kind of questioning, because you look at the 10 Day Moving Average, they jumped high over the longterm, but ultimately a down day but not far down. Scarlet my exclusive interview with colorado governor and Hillary Clinton potential running mate. [hip hop beat] olympics 2016, let me get you on my level. So you never miss a moment, miss a minute, miss a medal. Why settle when you can have it all . Soccer to wrestling. Track and field to basketball. Fencing to cycling. Diving to balance beam. All you have to sa is, show me, and boom its on the screen from the bottom of the mat, to the couch where you at . Show me the latest medal count xfinitys where its at. Welcome to it all. Comcast nbcuniversal is proud to bring you coverage of the rio olympic games. Mark lets get the first word news. It could be a big night for donald trump. He is excited to speak at the convention and will see two of his children take the podium. Tiffany and donald trump junior, his oldest son. Also addressing the audience, Mitch Mcconnell and House Speaker paul ryan. Hillary clinton called donald trump the most dangerous candidate ever to run for president. The likely democratic nominee spoke to charlie rose. Hillary clinton when i gave my first speech a somewhat he had said, i have followed it of course. Was surprised when we began pulling together all of the information. Lets return to torture, and i will order the American Military to commit more crimes. Lets pull out of nato, we dont need them. This kind of talk, which some people say, he cant possibly mean it, maybe we would have been one thing six months ago and that had listened to people that knew more than he ever will know. Maybe so, but not now. Mosthe has laid out is the