Futures. The dow and s p are indicated higher. Nasdaq is lower by about 4. 5 . Alphabet. Alphabet and google. Ubs reporting a drop in Fourth Quarter net profit but results beating forecasts thanks to a better than expected showing in the equity business. The bank is pointing to improving Investor Confidence in the u. S. At the end of 2016. Speaking to cnbc earlier today, Ceo Sergio Ermotti says that could be a sign clients are ready to ged ot off the sidelin. We are realistic because we have data points pointing at clients and investors being more optimists and ready to be constructive about the situation. They are really looking for concrete actions by the new administration in the u. S. He said there could be mom t momentous changes for the Financial Sector if there is a hard brexit. Today we get results from chevron, honeywell, american airlines, General Dynamics and abbvie. And key Economic Data as well. A first read on Fourth Quarter gdp at read on Fourth Quarter gdp at 8 30, durable goods at that time, and 10 00, consumer sentiment. Stocks to watch today. We mentioned alphabet, google. The parent of google missing analyst estimates, but revenue beat expectations, soaring 22 on strength in mobile search and video advertising. The stock is getting its 2 , but such a high price, down 17. The journal in the what is this thing called . The journal points out remember, we always wanted Revenue Growth. Revenue growth was three times as fast as Profit Growth. Now that you know, now they dont like that. Because if youre not going to make money on Revenue Growth you want it to be profitable. You dont want your margins to get squeezed. For years weve been wanting Revenue Growth, Profit Growth has been accomplished through all this. You want profitable Revenue Growth. Maybe thats it. Intel also in tech land beating on the top and bottom lines. Results were helped by growth in its Data Center Business and a more stable pc market. As you can see, that stock is up fractionally. Microsoft reporting earnings that topped wall street consensus. The Cloud Computing business nearly doubling revenue for the quarter. The stock, well talk to an analyst about microsoft and how it compares to alphabet in the next hour. Those two are resurging. Microsoft vies for that we talked to anne windblat about who goes to a trillion first. The demise of microsoft is greatly exaggerated. We knew that as it was stuck for years and years at that level between 25 and 40, but churning out revenues. People things still run on windows somewhere. Right here. Now they run on the cloud. But microsoft is in there. With the cloud. Most companies cant change what they do. This is what is interesting about i think ibm has done it an microsoft has done it. You start off selling hamburgers, its hard to change to sell health food. So you wait for the trends to come back to you . Or go out of business. It looks like microsoft is able to change what it does in its character and culture and is making this migration to the cloud. Microsoft still almost 100 billion a year in revenues. Somehow 94 billion. Yeah. Somebody is buying something that says microsoft on it or windows. Lets get a check on the global markets. We showed you the futures here are mixed. If you look at the early trading in europe, you will see a similar story. Dax is down by a quarter percent. The cac is off by a half percent. The ftse up slightly, up by 0. 2 . This as theresa may meets with donald trump here in the United States. Look at whats been happening or what happened overnight in asia. Japan was up by three quarter or a third of a percent. Shanghai composite up about the same. Hang seng was relatively flat. Looking at oil prices, up by about 2 yesterday, youll see theyre giving back a bit. Wti down by 43 cents to 53. 35. The tenyear note yesterday hit a yield of 2. 55 . Thats the highest level in a month. Prices are up with the yield down to 2. 514. Currency check, the dollar is down against the youre rov at 1. 0683. Up against the yen at 1. 1805. British Prime Minister theresa may getting ready to visit the white house today. The treatment will be in stark contrast with what weve seen with mexico the last couple of days. Michelle carusocabrera joins us now with more details. The world is a funny place. There was a threat, you go through with brexit, you go to the back of the queue, that was before they realized trump might get elected. Instead of being back of the queue, youre at the front of the queue. I dented knont know what you c believe. You just took a third of my hit, joe. The United Kingdom is our seventh largest trading partner. We send them more stuff than they send us, which is different from what we see with most other big trading partners. Heres whats on the agenda. Well talk about the future of nato over at the white house today. Fighting terrorism, and then also a direct trade agreement. President obama goes to the United Kingdom ahead of the brexit vote and says if you leave the European Union youll end up at the back of the queue. The new president feels different about that. He wants the United Kingdom to be at the front of the queue. We expect a joint News Conference at about 1 00 this afternoon. Well hear both from those heads of state, the first joint heads of state News Conference from President Trump. Thats looking forward. Last night the foreign minister of mexico and the commerce secretary of mexico held a News Conference at the embassy after their two days of meetings over at the white house. 7 1 2 hours on wednesday. An hour and a half yesterday. This was at times somber, defiant, sad at moments. They described sitting in the white house, planning the protocol for president Enrique Pena Nietos trip next week, when trumps tweet came out saying if mexico is not going to pay for the wall, maybe we shouldnt have them at all. They immediately stopped the meeting. They were surprised, aghast. A lot of questions, particularly about sean spicer, the White House Press secretary saying yesterday that perhaps one way to pay for the wall was a 20 tax on mexican imports. The minister there says that would be bad economic policy. The tax of exports from mexico into the u. S. , you will make youll make things ranging from avocados to appliances to flat screen tvs, youll make them more expensive. That will be paid by the american consumer. Im not sure thats the objective that is pursued here. We have to put a big asterisk next to that sound bite. When you hear the whole News Conference, they were skeptical about it because White House Press secretary sean spicer, when you listen to the whole sound bite of how he was describing this import tax, he wasnt talking about a tariff, a punitive import tariff, when you hear the whole description, he was clearly talking about the border adjustment tax provision that is in paul ryans house gop Corporate Tax reform, which is very different and both of these gentlemen, who are both trained economists, clearly understood the difference and articulated that at this meeting last night. That they thought this was a discussion about a border adjustment tax rather than an import tariff. They didnt seem as concerned about that. Theyre much more concerned about the dignity of what they say the the suffering and the dignity of the mexican people as a result of the discussion about paying for the wall. They may be talking about the border at adjustment tax, but the retd rihetoric gets to the place, talking about using it punitively. When you listen to sean spicer he cloaked it in a protectionist term and lingo. When you listen to the details, its the border adjustment tax provision within the gop plan which is far less protectionist than what it sounds like on its face. It is a cash flow tax as the commerce secretary discussed last night. Yeah. All of it is used to raise the tension between the two. Youre right about that. So many i wish we had a lot of time, michelle. So many things swirling around in my head. Initially i could easily drink molson if i had to. You know what i mean . I drink corona now. Sometimes. But if that was 20 higher, thats thats when is the last time you looked at a price tag before you drank . Thats true, too. I think the United States has a lot of leverage here. It does. Then i go to the journal. The journals take is we have a green horn in the white house now. Hes treating countries like theyre a corporation. Do we want mexico to go back to the way it was. The journal things they will be pushed into the arms of Single Party Rule and it will turn into venezuela. Thats a stretch, too, isnt it . So theres a guy that in shorthand everybody refers to him as amlo, manuel lope lopez ovrador who has tried to run for president many times. He was the mayor of mexico city. Hes a hardcore leftist and a populist. Whats happening now, people in mexico tell me, is serving him very, very well in terms of his standing. So the risk is president s in mexico only seventyorve one te years. So next could we see somebody who hates the United States become the president of mexico . I dont know. They have to get their own act together. You look at some of the numbers, ive been reading these articles that try to make the opposite point that we are not getting taken advantage of. But everything i see, my god. There was a surplus with mexico until 1995. Now its a 60 billion deficit. Canada, huge trading partner. The deficit is 9 billion with canada as far as jobs. U. S. Companies in mexico employ 1. 3 million mexicans. Mexican companies in the United States employ 70,000 americans. Its so lopsided. You see where the feelings come from. You see why it resonated in the election. You really do. This is notwithstanding just, you know, all the problems we have with illegal immigration. Just in terms of the trade. I dont know. Theyre poking the bear. Im not sure the bear will back down that easily this time. Oh, i dont think so at all. I think that this is you talked about how the criticism or maybe its just the analysis that President Trump is treating countries like hes in negotiation with companies. Yeah. Get ready. Thats the way it will be. Even if we do a deal with the uk, im sure its going to be something thats pretty tough. Because thats the way he is. Michelle, yesterday i im watching power lunch. I see the top of the show. Tyler looking great. Everybody gets introd. They come to you and you go right to bill richardson. You remember his first comment to you . I was gone. I didnt see whether you pushed back on that. Did you push back . Did you see him coming and go, god, do i have to do this . Did you push back on that . I think the first thing he said was that were at a real low in relations with mexico. I think thats pretty accurate. No, he said when you let a reality star tweet and that becomes our Foreign Policy, were going in the dumper, just total partisan he didnt want to talk. It was partisan. He just wanted to trash. More of the same. It was so last administration, yes, absolutely. I cant all right. You, joe, have a stamina that impresses me every day. You go to battle every day. You dont . Some days i cant do it. I wondered about that. I said at least we have michelle here. Yeah. But i didnt stay unfortunately i didnt stay i dont have a neilsen box. Can i ask michelle, you mentioned the president of mexico is one term, six years. Can anyone run again . We have vicente fox on later. He has been outspoken about this. Its a complicated question. Yeah, anyone can run. Theres been one guy who has wanted to run as an independent, but he had been prohibited by law, filed a lawsuit. I dont remember how that worked out. What normally happened in the past was they call it the current president points to who the next president should be, because one party led the country for so long. Thats changed a little bit. So, the answer is i dont really know strictly the answer to your question, but this guy amlo is certainly a potential candidate to run for president. Anyone who wonders why you were our international correspondent, we need you on retainer when we talk about not to mention videgar is back. He was the finance minister, now foreign minister. Left, resigned pushed out. After trump was there last time around. Now hes back. Well check in later. The dow pushing to another record high. The s p 500 set a new intraday high above 2300 yesterday but failed to hold on to gains. Joining us now to talk more about the markets is simien hym eshe and, chris, how much of this is something that worries investors . I think we will push through and theres a bump in the nearterm, but what President Trump is allowing a empowering management teams to say no to shareholders looking for a quick shortterm gain. Empowering or leaving cheese people shaking in their boots . Were not talking about significant numbers. Because in the past they were moving Companies Overseas because Share Holders were looking for quick shortterm gains. Now now youll have a potentially better tax environment, deregulation. So costs that you were incorporating to move before are being removed. Again, hes allowing the management teams to go up against and say to shareholders its not just a oneway street. To be able to compete on a level Playing Field. Correct. Thats good for American Workers. Im all for it. You agree with that . I think this could be a catalyst for continued outperformance of small and mid cap stocks that can take advantage of the fiscal stimulus, lower taxes and regulation, but maybe less hair on them with respect to the International Trade aspects and some headline risks. So theyre already competing here in the United States. Theyre a bit more domestically focused. So they can take advantage of the expansionary stuff but have less down side from the potential trade wars and other international issues. We talk about these big, round numbers, 2300 yesterday for the s p. Does that matter to you. In. Its getting a little overextended. Its hard to find companies that we wanted to be invested in those that are working, you stay in them. Let them ride for now. Weve been concerned. We traded sideways through december and january. Earnings season is kicking off better. Guidance, i dont think, will be exaggerated to the upside. Why should you this early in the season when you dont have clarity on the political front. And the timing of those policies. Those are headwinds, strong dollar. But that seems to be stabilizing. Generally, you know, were positive on the economy and what were seeing going out 18 months. Pro shares focuses on etfs, investors trending towards etfs. Do you expect that trend to continue . Is there something you think could shake people . I think that trend clearly will continue. I think one of the real sweet spots are what we call rulesbased strategies that have elements of active management but at lower costs and much lower transparency. What does that mean . Strategies that look to screen for, say, stocks that continually grow their dividends. Rules that screen the market to look for some opportunities to outperform indices, but have much more of a predictable screen and a predictable way to look for outperformance at a lower cost and transparency. Thanks for coming in. Thank you. Coming up, microsoft beat wall street expectations in nearly every metric of that quarterly report. Well take a closer look at the results including a big jump in the cloud revenue. That is next. Mobility is very important to me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle. And it keeps my investments fully mobile. Even when im on the move. Sign up at etrade. Com and get up to six hundred dollars. Welcome back. Microsoft earnings beat expectations on the top and bottom lines thanks to the Cloud Service azur. Joining us with more on microsoft and the importance of the cloud business, the Senior Research analyst at griffin securities. So i was reading in the notes that they bring a lot of stuff over to the cloud but they lose the other thing they do, the license. How do they balance it out . Ultimately it appears positive for the net earnings. There is positive growth. Net earnings beat despite some drags. The phone business, which they probably should have never bought in the first place, that was far more of a decline. Notwithstanding that, the most important business doing with software, Cloud Services, exceeded expectations. And even the older business, the one you refer to being in decline previously the one everyone knows. You buy microsoft software, buy the office thing, put it on your computer that outperformed. The windows oem business tied to the market outperformed. The traditional Server Software business, the predecessor to cloud, that beat our numbers. And the cloud numbers nearly doubled. I like to put this tech stuff in things that people can understand. The thing that everybody is doing now, this makes me sound like a lud head im sure, you dont have the software in your hard drive on your desk top. Its over there on these microsoft server farms, thats the Way Companies are running their businesse