. >> union pacific and nvidia. >> nvidia shares down 15.7%. we'll have a lot more on the selloff th mni ept ghhereorng ♪ junior achievement reaches young people all over the world to prepare them for the future of work. we go into classrooms and we teach entrepreneurial skills and leadership skills. when you actually create a business when you're in your teens, it raises your self-confidence. junior achievement is really unique because they inspire young people to think creatively. the citi foundation's pathways to progress initiative helped us reach kids in over 50 countries. citi has also loaned us their executives and their employees to help us deliver our programs. our youth are three times more likely to become entrepreneurs and they're more likely to create jobs for others. they are going to bring an entrepreneurial spirit to making our world a better place. ♪ ♪ ♪ >> good morning and welcome to "squawk on the street. i'm sara eisen here with david faber and mike santoli live at post nine at the new york stock exchange carl is on

important than nvidia. we talk about that before the stock bounced twice. last time bounced. their business isn't that good cat is a bigger story. cat is a bigger story because it touches so many parts of the economy. china was in there even though china is not what people think the biggest part of it but far from it. the way it took down the numbers down, 10% in terms of the mid range. the bottom was lower i think it gives you cause for pause. 22% of companies in the s&p reported through friday. while they were at the average in terms of 71%, i think it was beating earnings estimates and about 59% beating revenue. the earning beats were small >> earnings growth is fairly anemic too >> it's about 10%. >> it's not been a tremendous earning season i wonder how much cold water you take from cat and nvidia >> to be fair, i think our expectation from earning season from a year over year perspective was muted. it's the effect of things outside the united states. that revenue which caterpillar is a big part and i

it's a case of nvidia. the maker of graphic chips have gone from a market darling to a total pariah in the span of four months you may think it's redig lutz th ridiculous that this stock got hammered again down $6. on top of yesterday's brutal 22 point pummeling. you may think it's excessive haven't they been punished enough already shouldn't we relent? isn't this just too angry and mean and sad 40 years in this business, there is no way they're going to rebound today or stabilize not off the country pronounced some heinous numbers there's a attern the stock has more down side i'm sure it will bounce after the apple number, yeah listen to me here. you know what? i found myself thinking that nvidia didn't get hit harder they announced a huge revenue miss one of the biggest i've ever seen they talk about a whole new area of weakness. the one smoking data center segment when they disappointed last time, they blamed it oun the collapse of the cryptocurrency market. but this is a much, much, much worse short fal

but i'm going to go to nvidia. i think for nvidia it is not just a matter of china slowing down what we have been pointing out is this company was in our view the growth in the gaming center was artificial, driven by the crypto market to a large extent. then you look at the data center market, they've done a great job in training, but as we go in machine learning from training, think of it as prototype versus production, there's more competition. we have been skeptical of nvidia we're not surprised. our estimates for the year are below the street and we have been below the street for awhile >> paul, broaden it out. i wonder specifically, it is not just nvidia, we've had warnings from micron, from apple. micron in particular talking about cloud and data center buying slowing down. could that mean that the momentum in the mega scale cloud providers like amazon and microsoft is slower than analysts estimated >> i don't think so. we may have deceleration of growth it is still within it spend the most robust area when w

here's what's ahead this hour, caterpillar, nvidia and china worries all hitting stocks today, how much is the global economy slowing? we'll talk about it. >>> corporate profits and capital spending have both plunged lately will that be long lasting? if so, why >>> the countdown is on to the super bowl and those big ads, why quiet may be the new loud, dom, which i would love some quiet on super bowl sunday turn down the noise. >> oh, come on, it's the biggest game in america for goodness saks kelly, talk about the down day for the overall markets. earlier today we were down about 400 points, only down 365 right now. but the s&p looked poise today snap a three will have day winning streak, watch those trades play out in the afternoon session. one of the big movers today on the macro side of things, crude oil down by 4%, off the worst levels of the session right now. this is fears over demand because of slowdowns in china and also the u.s. may be globally speaking, ways and of course supply concern after baker hughes wig counts last week on friday showed a boost to the number of active ri

a big underperformer today, nvidia. this morning, nvidia coming out with earnings in the third quarter, had forecast lower. we are getting earnings from them again on february 14. ahead of that, they said the forecast will be lower than expected, so revising down again. all of the chipmakers in focus. another sector we are looking at is the energy market. the second worst performing sector in the s&p 500. energy and index off .8%. that comes down to the global growth concerns, particularly with crude, off 3.8%, having its ,orst day since december 24 down to its lowest level since january 14. we were talking with oversupply concerns. today that is more on the demand side with the global growth concerns we have been hearing about hitting the energy market. terminal, wet my know the s&p is heading lower today. taking a look at the advanced the decline line on the right. in the white, as you can see, you have a triple top, classic bearish sign it is rolling over. that is what you are seeing with the s&p 500 today. perhaps s

the latest victim is nvidia. the chip maker ss it now sees weaker-than-expected sales from its gamin division due to weakening macroeconomic conditions, especiall china. the fourth quarter was an tr rdinary, usually turbulent and disappointing quarter, saida nv founder and ceo. the company also reported challenges in its business of elling chips used in data centers, saying that a number of deals in its forecast didn't ose in the last month of the quarter, as customers became ca more ious. other companies have recently called out china as a problem o. earlier this month when apple cut revenueguidance, it highlighted the challenge of a slowin chine economy, so did intel. even before today, nvidia talkr had been un pressure, in part due to what executives at the company called a crypto haover. people used its graphics cards to perform the complicatg computork needed to accumulate crypto currencies. but as those digital currencies drop in value, demand for those products dried up, leaving the company with excessin v

shares of nvidia took a tumble in monday's session. the maker of graphic processors has cut its fourth-quarter revenue forecast. nvidia says gaming sales were below expectations due a weakening global economy, especially in china. those are the top global tech stories. emily? emily: thank you. i want to stick with nvidia and bring in ross gerber. c.e.o. of gerber kawasaki in l.a. you have a big position in nvidia as we discussed. are you prepared for long-term pain here? ross: it feels like the pain already happened. we are down into the 135 range. i think the price clearly reflects the issues they are facing which are legitimate. emily: so, why do you think this won't be longer-term then? ross: two things. one, do we get a resolution of trade issues with china which would sort of give investors as well as capital more confident in making investments and growing the chinese economy will be a lot easier if we can get through this. we do think the trump administration has manufactured this slowdown possibly, even the first chinese recess

for nvidia is extrapolation to be made to rerate the semiconductor sector which is basically up until the open today of 20% from december 24 lows >> you see the companies doing well, the semis doing well are companies like lam research, like xilinx focused on 5g. now nvidia makes you wonder, has enough time passed i think xilinx and lam research go higher now karen's point, nvidia has some limited down side. >> i think december 24 -- it shouldn't have been there, never should have been there but we had a sharp bounceback. i think there's down side. the stock is not -- i don't know, part go-go, right? there's the fundamentals and the go-goness of it. how much sort of short term momentum money was in it is it all gone now i doubt. >> it and how much of that was positioning on both sides where people just had to get rid of it by year end and then they had to buy it back because it was the most damaged so a lot of large cap tech names are these nichy little spaces that really directed the overall market on a bounceback and probably running out of gas. >> i think semis were the first ones

nvidia had that little read through. now there were plenty of stocks that weren't ding, the cloud force, they got hit but they were giving back what they hit at the end of the year however, i buy some -- today's big take away is this market is extroerdly resilient many investors want to believe they believe in the possibility of a trade deal with china they believe the fed will stay on hold. it's just so hard to keep this one down you want one pmore close to home example, last night howard schultz pretty much announced his plan to run for president. what did we hear in the wake of shumts's announcement. on top of that you know schultz will have to sell a huge slug of stock to pay for any campaign. we heard a $300 million amount bandied about on "60 mtsinutes." there's always the possibility that starbucks will become more of a political football in china. how big was stock hit? $0.19. after what we heard from nvidia and caterpillar it should and could have been much worse now the market's resilience will be tested multip

nvidia cutting its outlook. is it a bad sign for earnings to calm? -- to

>> i like nvidia one of the reasons is because it's so beaten up. it looks for us to be unlikely to get much cheaper at this point. not only that but it has really strong fundamentals. we're looking at about 50% profit growth for 2019 it's got good growth in restaurants, some of the gaming as well as data center spaces, so overall, yeah, the semi conductor industry is one industry that we do not recommend to buy in general as an industry. the memory prices keep going down the profits, the expectations from just six months ago went from a positive fi5% to a contracting 7% so a complete flip we feel nvidia is one of those stocks that is still able to grow, create more profits and is a good price right here. >> shaping up as a battleground group for 2019 thanks to you both for more trading nation head to our website or follow us on twitter @tradingnation back to you, kelly. >> thank you, mike >>> ahead on "power lunch" apple ceo tim cook sitting down with jim cramer for an exclusive interview. what cook is seeing in china's economy. >>> plus our specia

not least from nvidia and caterpillar which we got yesterday. we just spoke to the sap ceo bill mcdermott. he was bullish. what is your view in terms of where we are with global growth and whether you should be tilted toward risk or not? chris: if you look back at your go, we were in a situation where there was complete unanimity and a positive outlook on growth amongst investors. our feeling was the risks for all to the downside. it was difficult to pinpoint what was going to cause that downside risk to growth optimism but here we are year later and the pendulum has swung from uniform optimism to pretty profound gloom and despond and see. we can point to things like the bank of america, merrill lynch survey of fund managers which shows that expectations of growth and profit are as gloomy as they were in 2008, 2009. certainly comparable. we have come a long way. what happened here was partly trade, i think it is these other natural things. we saw the oil price go up considerably, we saw interest rate steadily going up. it was incremental but rea

i'm not going to be in nvidia >> boring. i bought more of those today i got to put money to work show me a better place >> is that not the biggest risk to investors you get so negative and a trade deal the market wishes higher >> it's clear that americanings will sl -- earns will slow. valuations will reflect that they rallied on okay earnings. same with semiconductor. they were on fire last week. many of them didn't have anything good to say i own it i love it. lamb was good. to be up as much as it was it's very telling what's interesting is outside the u.s. is what's going on. china the second derivative is less bad brazil is up outside the u.s. is more interesting at this point than the u.s. to me you have stanley black and decker, nvidia, intel. just some big companies that have delivered less than desirable and stellar results. how do you reconcile that with your point of view >> i think everything you just said is largely known by the market we know that earnings will slow. i think they will still be positive in 2019 w

given nvidia and intel, china is the key and apple is caught in the crossfire. i do think backlash impact versus pricing is what investors are trying to parse out. >> steve, my read given what we heard from nvidia about high end gaming chips being on the slowdown, what we heard from intel seems less an apple specific issue than it did three or four weeks ago. what's your sense of that? >> i think there's a number of things going on. china is weak for everybody. there's question with nvidia and others whether hyper scalers are slowing purchases, which doesn't effect apple too much. the other issue that is apple specific or relative to their market is the consumer market. we call it watch the gap we're in a bit of a gap period in terms of new consumer technology we see 5g, foldable phones, ar glasses which cook refers to, but it is still a few years away, and apple is not likely to be a leader in the next set of phones for fall. there are a number of trends, and some of them apply to apple. >> is apple behind the ball on 5g >> they're behind the ball on 5g clearly

nvidia having a terrible day down more than 15%. weakness in gaming and data centers contributing to that. it is spreading. guy: absolutely. people are saying in the run-up to the earnings how quickly -- critical it would be to keep the momentum we've seen if the earning seedings will turn -- season will turn out to be the opposite. the s&p and stoxx 600 still trading above 50 day moving averages so from a technical point of view we are ok. there is plenty to watch out for. aroundxx 600 is down by 1% of the moment. one of the reasons for that is some of the mining stocks, you can see the aluminum stocks are under pressure. him in lunch -- aluminum in london is trading down. liftinghis deal done sanctions on the company's, but not him. the story is rippling into the iron or stocks. stocks.ore the euro dollars paying attention to draghi and the european parliament talking about all instruments still being on the table. if earnings season pivotal this is going to correct. >> a busy week for investors. another series of votes in the u.k

even after nvidia. >> this is the -- >> nvidia did have a much higher -- and still has a higher multiple a higher growth rate eventually. >> they said bad things about the data center, which i lot of people thought they were winning the data center. didn't talk about the touring, the product transformation, now people feel like that ubs has a note, they reset to the point they can start doing better. i think this is one where you got to really wait it out. >> okay. >> you just kind of have to. what more do you know about the verizon weakness >> what would you like to know >> probably, like, the answers >> the answers specifically to what why the stock is weak? >> yeah, i thought that was -- >> a quarter that didn't -- hasn't really excited anybody. >> you didn't think it was -- >> in terms of potential growth. >> rhetorical. it was about how it is too expensive. >> oh. >> at&t, what is it going to do? >> what do you mean, what's it going to do? in terms of earnings is at&t going to do well we love -- >> i don't know. >> you're asking me? how do i know? >> i just -- >> i think there is pl

stuart: let me refer you to nvidia. now there is a tech stock. that is just being taken to the cleaners today. have you seen it? it is down 15%. $25 down. doesn't that indicate a few problems for the apples and microsofts of this world? >> no. it indicates problems with nvidia. they have some supply chain issue. they may have oversupplied. they may have inventory. i missed this one. i thought nvidia would be rebounding by now and it has up until the last report. here too the world will not get any simpler. what they make is stuff we got to have. they make the best chips in the bests, best sets in the business, best software in the business. to me this is a buying opportunity. stuart: do you own it, by the way? >> i do not. full disclosure i do not own it at the present time. stuart: i will switch gears, you're saying, i read your stuff, millenials are going to kill harley-davidson. make your case on that one. >> absolutely. the only question is how fast. you have a generation of younger riders. harley is producing a bunch of new motorcycles are a

he lowered nvidia to $170. hans, great to have you with us. what do you make of this warning given that they already took down the fourth quarter just in mid november does a company have a creditability problem at this point? >> yeah, a little bit. but keep in mind, they thought entering the quarter, the inventory situation, it would be two quarters not too bad there. what you saw this morning is that data center which can be lumpy, also weaker than expected and the new product call for the gaming market. so a multifactor dynamic that takes us into the second half before we see kind of the resumption of growth >> i'm actually going to ask you the same question as the caterpillar analyst because semiconductors is a group that really has risen off the december 24th lows if they're off like 20% on the smh since then and at this point, given what we've heard from intel and what we're hearing from nvidia, should we be rerating the sector across the board >> i think so. i think right now, china, macro issues, inventory issues broadly are something t

thanks >> thanks. >>> chips getting chopped again after the big warning by nvidia yesterday. amd is reporting after the bell today. ou ie regaining nearly all the grndt lost earlier this month. where does it head next? really the military family and it really shows. with all that usaa offers why go with anybody else? we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. it was funny because when we would call another insurance company, hey would say "oh we can't beat usaa" we're the webber family. we're the tenney's we're the hayles, and we're usaa members for life. ♪ get your usaa auto insurance quote today. ♪ ♪ ♪ our new, hot, fresh breakfast will get you the readiest. (buzzer sound) holiday inn express. be the readiest. when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today. fidelity. amazon prime video so when you say words li

it was not just nvidia or caterpillar. china reported over the weekend that corporate profits are down across industrialized firms. i think even putting trade aside, there are rising headwinds to chinese growth. we have seen tighter financial regulation, and there is a global turned down in global demand. that is hitting chinese exports. curious, in your former capacity as being someone part of the stocks, strategic negotiations before, does seem to you to be legitimate concerns over security as we are seeing with these indictments, or is it more overwhelmingly in a strategic competition, that is higher for washington to curtail's beijing's tech ambitions in the longer term. david: it seems like it is a bit of both. without a doubt, the u.s. -- it is not just the u.s. -- has serious concerns about china's technology policy and their protection of intellectual property. i think the challenge is coming up with a strategy for dealing with it. you have to be coordinated across the u.s. government. my concern is watching the ac

>> well, a lot of it i think with the preannouncement we got for nvidia is because they misjudged their graphical user cards. they said they thought it was going to be a -- an inventory issue because of crip toid, but the gaming slowed down too there was some degradation in the data center. amd did not see that, but they have a much smaller business apple what can i say they say january is better which is unusual from december by the way, i think you're up 17 points if you had watched tim cook when he told us that apple was actually doing well? maybe the 17 points don't mean anything to you. i kind of like it.

i think there are opportunities still out there in the market. >> i think a name like nvidia is a bit dangerous and i'll tell you why. eps is expected to be flat sales growth is expected to be single digits. when people were paying 90 times for that -- >> they were doing it last year too, though. this is last year. >> i know. listen, it was a great, great trade. but these are also very cyclical stories. if you're hitting the wrong end of the cycle -- >> but you're looking for names that absolutely -- tim talked about it earlier and how he likes the semis and maybe they're starting to turn he's probably right. you look at that name, when it was trading at 90 times, everybody loved it now that it's trading 18 times, it's hard to find buyers. >> people thought crypto was a growth market. >> there's been a bit of a hangover there the cyclicality of this conversation is critical to me fedex is the ultimate cheap stock and one of the most cyclical companies in the world. bought some fedex over the last week and i feel comfortable with that name. that's a great company that to me has been pu

then there is nvidia cryptocurrency mining. remember, nvidia couldn't figure out whether the customers were using the chips for gaming or crypto mining. that excess inventory is being worked off too, so the stock is bouncing analysts put out a note and the note argued you would be gun jumping if you bought now, and that caused a one day sell off by the time we know for sure that business has turned, you will have missed the move. i like nvidia here one reason i believe their adoption will be far more rapid than wall street expects the strength in those areas will be obscure or one about my other faves? land's machines help manufacture all of the machines in glut mode this stock always bottoms more i don't expect this quarter to be anything to write home about. the surge plus 5.2% because of the current quarter seems odd. but it is what you have to do to get ahead of next year's numbers. this move is all about anticipation or ant ici-pation. sure enough, this morning the largest home builder in america reported a shortfall yet s

the valuation of nvidia was extremely high. anything that's the company jumping over that bar, that's going to kill the stock. that's what you see going on right now. companies have the ability to take a big bath here and blow up their own earnings and reset the bar if there are structural issues happening within the company's fundamentals. cheryl: one thing i want to -- i want to wrap up. we look at whose reporting today. 3m will be interesting about the china story in particular, i'll be looking at that one. let's go back to apple. tim cook already said they've got an iphone sales problem in china. their market share in china isn't that substantial. do you think there could be an upside purchase price with apple? >> only because the expectations have been set so low. you mentioned the nvidia stock chart. apple is maybe not as dramatic but not dissimilar. a lot of the big tech companies, demand comes from china, a big part of their businesses. investors pulled back expectations. all eyes will be on fox business and especially

david: you mentioned nvidia. of course, they were down double digits, it was a terrible day for nvidia, like caterpillar as well. they mentioned specifically china as the reason why they were slowing down. is that the overhang, or is it worldwide because we know europe is slowing down as well. >> well, i think cloud is kind of worldwide but especially in china. the chinese have been building data centers for cloud like crazy. that's been the biggest boom over the last couple years especially, right? facebook and google and apple and microsoft were building out -- and amazon were building out their cloud data centers years and years ago. china has really caught up the last couple years with companies like alibaba. so what you are seeing in china -- >> go ahead. >> yeah, i was going to say, that really impacts china, impacts apple as well. apple was going to have earnings out tomorrow but apple has been hurt by its announcements from china amplify how important the world's second largest economy really is. apple as

you had xilinx which is good, amd which is good, nvidia and intel. what do you make of it >> well, amd has been a tough sled the last couple of months, but i think you stay with amd, you stay with lam research and xilinx intel told you all you need to know you're not going to get killed in it but it's not going up 10% in one day either. >> when you look at a name we haven't talked about, micron and d-ram, d-ram tells you ever you need to know about micron and micron tells you everything you need to know about the global slowdown in the semi conductor business i think that you want to be seller of all these names. >>> time for the final trade tim. >> again, we've got a lot of biotech out there. amgen, i think this company continues to execute a lot of this drug pipeline, priced in. >> brian kelly. >> do not ignore what's going on in the gold market i'm going back to fast money circa 2010 buy gdxj. >> grasso. >> there was a lot of red in the home builder space you know what wasn't lennar >> guy. >> i think the weakness in ebay, and if i join the site t

nvidia is down, because they put up bad number. nvidia is down because they put up a bad number. we don't want volatility coming in because trump tweeted this or china said that. we would prefer positive news. it is early in the cycle. nvidia, we've known the news a long time. neil: they have been telegraphing troubles. i wonder something bigger has roots back in china, whatever we score on trade this week with their minister coming to town, might just be outweighed by the slow down? >> china's problems are not all to do with president trump and the tariff battle. neil: absolutely. they have fundamental problems. >> a slowdown is taking place. it will be really interesting. suppose we get a deal and tariffs go away, we have a better trade relationship. i wonder if china reaccelerates in that context they have internal structural problems that are impeding growth. neil: i agree. even though the vice prey mere score as deal, i don't know that will be for china to make good on it. >> as i said structural issues of high debt taking place. we have unemployment. people need to find job

shares of nvidia plunging after the company cut its quarterly forecast. due to a sales a slowdown in china. that is pushing chairs that shares down. it is a big loss. taylor riggs, this is a big loss. >> it is. it is all about the next quarter. in the current quarter, macroeconomic effects coming from china and affecting a sales slowed down, so cutting the guidance is interesting. they are forecast lower guidance. now, two weeks before the next earnings call, cutting guidance again. i think that is what caught the analysts off guard. cutting that the $1.2 billion, which is a $2.2 billion, and profit is being reduced lower as 1.7. 1.2 from demand affecting their top line. someow the cost is mining of these chips for bitcoin, that is worth more than the value, that was the story we had. so all of that really affecting the stock today. interestingly enough, it is also affecting the gaming chips, because a lot of what they were talking about was affecting the gaming chips, and a datacenter, where you have electronic arts taking a hit today as well as they did

concernsalleviating afterward about china, about nvidia and intel. tesla was flat. cash balance looking good. costs,, they are cutting but they did miss on earnings-per-share. that seems to be somewhat concerning. romaine: a little bit. qualcomm is interesting, because they had that controversy hanging over their heads. that will affect their licensing business. they continue to coral, but it seems to be a focus on second quarter revenue. the projecting in-line sales for 5g. plenty more to per -- 20 more to discuss on politics. let's get to joe. joe: it is more than one year until the iowa caucus and now, candidates are already lining up. senator elizabeth warren of massachusetts has launched her presidential exploratory committee for president and she joins me now. we want to welcome our bloomberg austin radio audience who is listening. senator warren, thank you very much for joining us. wise, you made the centerpiece of your campaign the idea of a wealth tax. over on people who have $50 million. what is important about that? is it about raising revenue for the gov

don, caterpillar something of a production system nvidia has a lot of one-offs. this stock was already hammered last time they posted results but what are we taking from the numbers so far as we brace for the rest of the week? >> every earnings season caterpillar just gets elevated to the position of being some kind of poster-child for whatever it is in the air that quarter. now of course it is the china slowdown thing. what is so strange about caterpillar's numbers, if you break them down on year-over-year basis their sales and revenues in china and asia up 8%. so their revenues in china are up more than chinese gdp is up over the last year, okay? but that is not good enough for wall street. what do they want? blood? i guess so. i think everybody needs to get a grip. this is actually going to be fine. charles: to your point, in north america their sales are up 13%. construction up 17% in north america. so if you are using this as a u.s. domestic proxy you might say it wasn't too bad considering all the doom and gloom, particularly pessimism, larry, coming out of

>> nvidia paid a very heavy price after being darling. after that 80% drop, they had multiple 100% run up. charles: sure. >> they got a lot of that based on crypto. they're winning in a different field, in a.i., charles. if they find more traction there. i think nvidia is a good long-term play. i don't think it's a must-have to get into today. i might like cree a little better in the whole semiconductor area. charles: really? >> with the led business forming a base under them. they're doing great things in internet of things plus smart building. >> i haven't watched cree in long time. >> before i wrote up my notes. >> great to have you on the show as usual. thank you so much. later on the show why establishment democrats are becoming protectors of the 1%. that's right, you heard me right. >>> positive signs emerging for the stock market, including the first time more 52-week highs than 52 week lows. that is a buy signal. has not happened since september of last year. i will give you my read on these markets when we come back. [knocking] â

you also heard from nvidia. that really affected sentiment for tech stocks. the company essentially saying the same thing caterpillar said. earnings was disappointing, guidance was disappointing. the main reason weakness from asia pac. and china. you had a lot of weight on the technology shares at one point as well. caterpillar, 3m. unh was half of the dow's losses. huge earnings week. 25% of the s&p 500 companies will be posting a big day tomorrow for apple and tech. back to you guys in the studio. melissa: deirdre, thank you. thank you. deal or no deal, u.s. markets reacting to u.s.-china high level trade negotiations. the pressure piling up on both sides to cut a deal before the march deadline when tariffs could hit 25%. edward lawrence has been following the story very closely. edward, what's the latest on this? reporter: wednesday will be a very big day. the chinese vice premier is on his way to d.c. his plane has taken off from beijing. face-to-face meetings scheduled for wednesday and thursday with u.s. trade representative robert lighthizer. treasury

caterpillar and nvidia site slowing demand from china. european futures point higher. -- investors becoming more our investors becoming more forgiving? theresa may abandoned her own deal with the eu in hopes of securing one with her party. ahead of a crucial vote today in parliament. where less than half an hour away from the start of european trading. take a look at the pound. we have a three-day chart. yesterday we were up over 132 in the beginning of the session. we are trading at 131.5. asinteresting asset to watch we get these amendments tabled in parliament and later on in two the vote. as far as futures are up, we did have gains in japanese stocks, we had gains on the csi 300, gains on the kospi. we have some risk on signals in today's market as well with the end little changed, the treasury yield little changed right now, gold little changed. it does look like we could have a positive start to trading in the european session. u.s. prosecutors have filed criminal charges against while way, the other big story after earnings and bre

nvidia sliced its fourth quarter estimates by half a billion dollars. this is on top of the reduced forecast it already gave back in november. that is bringing all of those chip sector names down. they are taking it on the chin right now. applied materials which is a chip equipment maker, down nearly a percent. intel lower by 1.33%. micron technology down 2%. let me quickly check advanced microdevices because it, too, yes, is getting hammered, down about 7%. >>> to a major development regarding oil. embattled venezuelan president nicholas maduro apparently for the moment won't be using his country's oil as a weapon against the u.s., so take a look at oil, falling sharply both during the regular season and now in the after market, where it's down three full percentage points to $52 even. last week, of course, thousands took to the streets to protest nicholas maduro's reign and president trump announced full-fledged support for the opposition candidate and broke off diplomatic relationships with the maduro government. word, though, coming that maduro will

nvidia is artificial intelligence. it never had a good relationship with apple. that was a big negative until this morning. nvidia gaming slowed part of the problem in china. >> they told you when they announced last quarter that there would be two quarters of criptoid that would hurt. it will begin with easy comparisons. i think if you put away nvidia recognizing that this quarter is not going to be good but next quarter is going to be good, opportunity. it's as hated at 130 as it is loved at 280. i like that. >> the basic point is buy it now, understanding that perhaps next quarter or two may still see weakness but you will be rewarded given the long term franchises this company has in what a key growth areas in the world's economy. >> i have information on touring which is the next data card. people thought it was too high. this happened ten days ago and the cut is brilliant. it's brilliant because it would smooth the transition. you will analyze the criptoid maniac. last year being what people lost fortunes on. i do think that if you start right here you are

we have seen the numbers out of caterpillar and nvidia. how bad is the situation in china, will it be enough to leave beijing to a concession when they meet in d.c.? >> that is more than 30 seconds worth of questions, but one thing that ever rates me, everyone is blaming the slowdown in china for the loss of sales. .aterpillar, nvidia, apple the chinese economy has been growing around 6.5% for the past four years. growth at that pace is a constant, not a variable. thank you so much for joining us, carl weinberg, from high frequency economics. plenty more to come. this is bloomberg. ♪ amanda: while way and is u.s. affiliate were ordered to appear in court in seattle on charges the company engaged in a scheme to steal trade secrets of t-mobile. it comes on the heel of u.s. prosecutors in washington and new york unsealing two indictments involving huawei. with us is sarah mcgregor and tom giles in san francisco. sarah, let's start with, obviously, serious charges. some discussion about how hard they will be to make stick. what are your earl

. >>> nvidia was downgraded to underperform from buy at needham. the analyst cites the potential for further decline i demand in some of nvidia's key businesses, like gaming and da centers. we told you about the revenue warning the company issued yesterday. the price target of $225 was removed with no new price target added. the stock fellbout 4.5% to $131.60. >>> square was downgraded from underperform to market perform at raymond james.na thest cites a lack of growth opportunities as well as square's move into baniking. the price target is $56. the stock dropped 6% to $58.56. >>> as expected, pg&e has filed for bankruptcy. californiaargest utility is seeking chapter 11 protection as liabilities continue to mount from the state's most recent deadly wildfires. now, when a company files for bankrucy, its shares usually lose all value and the stock price falls to near zero. as you c see, that's not what happened today. in fact, pg&e shares rose by 16%. as aditi roy reports, that in part is why this corporate reorganization is not typical. >> pg&e's b

>> nvidia, nvidia guided down. and it turned out that things were worse than nvidia said. i think that when you do these guidedowns, they tend to be like cockroaches. find one, you find others. i know you had this -- the apple guest just now who is incredibly negative on apple. i think that your questions about 13 times earnings, maybe goes to 11, maybe goes to 12 but it is not perfect. and you did get a lot of downgrades of nvidia today they weren't downgraded yesterday. but nvidia is way up from where it was at the end of december, and january. and you look at lam research and xilinx and you say, look, if these companies say things will get better in the second half, the stocks go higher while i like what jim paulson was saying, i do come back to the first part of what he was saying, stocks were down a lot if you have 3m and they miss the quarter but say positive things, look what happens. look what happens with 3m. if pfizer says anything positive, look what will happen with pfizer. and there is a lot of companies that you get bristol and celgene and you get a merger be

nvidia happens in the economy revolves around oil. what has happened is it went from 3.3 million barrels per day, to about a little around 1.3 million today. so about half of what it was. and at the same time, and there was a great article in bloomberg and talked about some of the major repairs necessary because what happened is it because the engineers have fled, but there has not been an investment in upgrade and maintenance in terms of production, so it will take a long time for whoever is in power to rebuild the capacity of this country when it comes to oil. david: the article compared it to iran and libya, and basically said he cannot just turn the spigot back on. it takes a lot longer. christopher: another thing that is important which the article does not mention, venezuela has mortgaged future oil production to russia and to china. it is paying debt on chinese loans in the form of cut-rate oil, as well as russia has a fair amount of exploratory rights in a lot of those fields. whoever comes into power will have to deal with th

all three markets finished in the red as investors reacted to the warnings from caterpillar and nvidia. tomorrow could get interesting when apple reports its earnings after the closing bell. nvidia, which has its headquarters in santa clara, saw its stock fall nearly 14%. >>> that whole 30 diet may be working for some people, but researchers warn us not to try trendy dog diets for our pets. researchers say some popular grain-free legume rich diets are linked to an increase in deadly heart disease. eating the diets are not making or maintaining enough taurine, searchers suggest you check with your vet before changing its diet. >>> something is brewing in california. >> the proposal that could >>> coming up on abc 7 news at 6:00, protesters shout down regulators considering a $5 billion bailout plan for pg&e as it heads into bankruptcy. at 6:00, the i team's dan noyes shows us what was decided. >>> uncertain times for oakland's schools. labor issues on top of massive deficit that has some schools on the brink of closure. we'll explain why the next two days will be critical. that's coming

the two companies, caterpillar and nvidia. industrials are lower by caterpillar saying they missed the fourth quarter earnings and this year they'll earn less than what analysts were expecting because of lower demand from china. chip maker nvidia saying the same thing. so that company's news -- the stock is down 15%. the news is bringing down the tech sector. i want to highlight why this is so important, especially this week. 20% of the s&p 500 companies will be reporting this week. nvidia forecasting what we may hear from apple, facebook, amazon, microsoft. it's a huge week. of course, in addition to earnings, u.s. china, a trade truce possible or not? we'll know towards the end of the week. if fed as well. shep? >> shepard: thanks. firefighters in new york city rescue add woman from an elevator after she got stuck inside for the entire weekend. happened in manhattan at a billionaire's townhouse. the woman a family employee. the family reported out of town and realized just this morning that she was stuck in there. trapped in

nvidia cutting their forecast. declining.ue you go down the income statement to the gross margins, now forecast to be 41%. really looking to grow those margins out to 45% in the next few years. we've heard concerns about the pressure being put on margins. that doesn't appear to be the case for amd. vonnie: one of the stocks helping the s&p 500, up 15%. higher bying pushed boeing. this is bloomberg. ♪ david: welcome to "balance of power." on the brief today, shaun donovan from washington. what do we know about them going into the stocks? -- these talks? lighthizer joking about the dinner in buenos aires on december 1 that set this all up and how he had been cut out of , drawing some laughs from his chinese counterparts. that is always seen from the negotiating room. they have hard issues on the table. president trump do to meet with the vice premier in the oval office tomorrow. we should be clear that we are not expecting the big final deal this week. we still have 30 days to go to the march 1 deadline.

ceo of nvidia brought out new graphic chips that could reignite the gaming. intel is the cheapest and steady player second, i consider broadcom the ceo hock tan that has diversified. i like a and d now come roaring back. recognition that the worst is already baked in finally kicking the tires on texas instruments. more importantly, semis are a good leadership group. when rallied could make a big difference for the market. more than 3% yield to snap out of its seemingly endless funk. oh, and even micron of course could be worth owning although i think it has one more bad quarter before it makes it i agree with bmo that the stock is worth buying right here much more "mad money" and including an exclusive, don't miss my sit down with someone who never sits down, with amgen. and then talking to ceo. and the rapid fire in the special san francisco edition of the "lightning round." stay with cramer >>> while we are talking about health care, let's not forget about my favorite bio tech, amgen. here is a company that throws off a ton of cash, on top of that, amgen ha

i think nvidia had a huge day. 5% on nvidia. stocks these red-hot ardently getting some buyers today. >> risk aversion seems to be put to one side. let's dive deeper into the action. lisa: i wanted to look on the risk -- look at the risk on sentiment. particularly market currency. look at the emerging markets index. it is rising for a second day. the biggest two-day gain since last year. it is really interesting to me to see this. people were a little skeptical. this is one area that was punished. now it is getting hit by a double whammy. steppingoth the fence away from some of the tightening rhetoric. then we have a u.s. economy that is still solid. which currencies are benefiting the most? this is the brazilian riel. this is verse the dollar. 3.1%. this is extending those gains today. interesting. abigail: everybody is talking about economic data. this is something that not a lot are watching. it is interesting to look at this long-term range. orders for these trucks including dump trucks, tractor-trailers, 18 wheelers, low 10

just a quick question on nvidia. >> i think nvidia is trying to bottom here. i am willing to say -- >> buy buy >> i bless it. craig in new jersey, craig >> caller: boo-yah, jim cramer >> boo-yah >> caller: from your backyard here in new jersey >> close enough, what's going on >> caller: thanks for taking my call >> my pleasure >> caller: i'm a holder in lgnd pharmaceuticals. >> you're a risk taker, my friend that's a risky stock i don't know makes a little money, but i have to tell you, i don't like the trend. i think the stock can go lower i would be careful let's go to chris in colorado, chris? >> caller: this is colorado chris, jim i have a question on my stock is eix. the competitor seems to be bringing it down >> i don't want to invest in anything in california i don't need the aggravation if i do utilities, i want to sleep at night con ed, and american electric power. let's go to ralph in washington, ralph. >> caller: hi, jim, this is ralph here should i continue buying arcd? >> i do prefer j.b. hunt, which had a very good quarter. let's go to dennis in

, a decent place to dumpster dive first, oh, boy let's start with information individu - start with nvidia, the biggest dog in the s&p, down 52% for the quarter. what happened? the guide down was so monumental, you just had -- you just knew you had to wait, not one but two quarters before you could buy this high quality semi conductor maker. these are secular growth teams that some think are tapped out that's how the stuck plunged to nearly $128. i've seen this stock trade at 40, 50 times earnings and people loved it it usually means thee matts need to come down more. too many crypto currency maniacs bought them and then returned them now there's a glut that's being worked off i believe the backlog will be cleared up and i pex teexpect tw chips to sell well later this year my take, if you buy nvidia after the selloff, you'll have to suffer through one more bad quarter and then home free wait for more weakness i've been more bullish, after after -- the loss also be hard to come back from second, new field exploration down 49% since then, canada's stocks nearly 44% down. if you believe as i

everybody else will use nvidia their design cadence is 3 to 5 years. tesla is every year to 2 years completely different dynamic the third dynamic, which will be really difficult to catch is the miles of data they have collected from their own customers. more than 10 billion they're adding more than a billion a quarter, well more than a billion a quarter google waymo, the closest behind them is maybe 100 to 200 million miles worth of data. that's what powers an autonomous vehicle and where we're going. >> in terms of batteries, their costs for battery would be higher because they don't have their own batteries or is there a way to source other places. >> two reasons, we do believe they need to vertically integrate. volkswagen is the first to announce they will do that the second is they are all operating with lithium ion pouch batteries, not cylindrical batteries tesla is tesla is riding down the cost curving much lower than that lithium ion pouch. in the early days, no one wanted to do batteries this way they made fun of tesla for building its car on

you look at tech and how much that's been thrashed nvidia, the names that have -- nvidia was a call at $300 trading at $130. look at microsoft's move today these are extraordinary moves. for all the haters, i will say this, i think these are pushing the market to the upside >> one quick comment, though i am old enough to remember nine days ago when we had 1,000-point dow rally and something else rode to the rescue, maybe it was santa claus. it's important to understand these days of upside volatility do occur in the midst of down trends we are still in a down trend and it's not much to write home about. i think there will be some revisiting of those lows and google, facebook, the stocks don't look great they're bouncing, that's fine. >> how do you see it >> i disagree. to pete's point i think the algos will push to the upside. the market came in offsides today. i think josh is right on a longer term basis. you can roll over at some point. i heard stephanie yesterday on the network talking about further preannouncements i think the impact of tariffs will be talked about in terms of corp