Also iphones, macs are affected by a processor flaw and also billboard reports jimmy iovine could leave his role at apple music and a survey shows an improvement in demand for the iphone x, despite what it calls supply chain volatility. For all that lets bring in the man behind that note, steven malanovich steven, good morning, happy friday same to you i want to start with the iphone x thats the big profit and revenue driver at apple. Theres often all of this supply chain noise around iphone releases often a lot of it doesnt actually translate when we see the results. Which are we to believe, the fear, uncertainty, and doubt among the demand for the iphone x as evidenced by component orders from apple, or the demand that youre seeing for the phone itself well, at the end of the day demand drives supply, so we focus quite a bit on demand. We did this at Ubs Evidence Lab survey followup, so a couple months ago we looked at demand for the new phones we thought it was good, but more tepid
Thats just because it is seems unnatural. Every day its up 1 , half a percent, not used to seeing that without any correction overall if you look at the end game and where youre going to be, the market will be higher 10 yesterday. I agree. Theres too many positive tailwinds for it to end here. Gary cohn in an interview today said the following i think the stock market and some other pretty famous investors over the last 24 to 48 hours have agreed with us, that the stock market is not expensive right now. Who do you think he was referenceing warren buffett. I dont think he was talking and david stepper. His former colleague. Buffet came out and said that, too. Buffet has 120 billion in cash no way he thinks the market is cheap, no chance. I dont think no chance. I dont think anybody is saying this is bubble territory, definitely not hearing that. We can make the argument that were maybe above fair value certainly not cheap, but first off bull markets dont die because of valuation, and e
They are not valued relative to the Interest Rates. Whats happened in the markets has been very sensible nobody thought wed have these kinds of Interest Rates for a long time. Additionally you have the tax act which is a huge factor in valuation. All right so kevin oleary, theres buffet today on the Network Stocks arent too expensive, echos what tepper told me last week, what weve heard, from you know, gary cohn out of the white house and others are they right i think the most interesting aspect what have buffet said was youre getting 14 to 15 given back to you from the government to an American Company shareholders now, he was being specific to Domestic Companies that have all of the revenues here, by find that intriguing. The other thing he didnt speak to, which he never really speaks a lot of is if youre getting 3 trillion back domestically, what percentage that have is going to buy back stocks in the next two years that has me fascinated. When people ask why is there no vol and why
Welcome to squawk alley. Im Carl Quintanilla sarah and john are off interesting morning, rally is hitting the pause button this morning. Earlier today on squawk, berkshires Warren Buffett weighed in on stocks and what he thinks is driving the market now. They are not value developed Interest Rates what has happened in the market has been very sensible nobody thought we would have these kind of sfw rates for a long time. Additionally you have the tax act, which is a huge factor in act, which is a huge factor in valuation. s 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. S
A onetime cash bonus to eligible employees walmart says it will expand maternity and parental leave benefits been a couple years since they took wages up. Before a lot of their competitors, took it to 9, now to 11 when youre talking this many workers, it gets your attention. I think we have to be careful, though. 1. 5 million workers in the u. S this wage hike from 10 an hour up to 11, thats nice, but walmarts wages are that low to begin with and weve been wondering for a long time with the tightness in the labor market when are the increases coming starting wage, to be clear. Not every worker makes that, but walmart is infamous for having workers on public assistance, so how much praise do they deserve, plus this 400 million worth of bonuses, which is great, one time, but lets not pretend this is some huge, amazing, generous thing. Theres been a lot of criticism of this company for underpaying workers for a long time. But some money is better than no money, right . Yeah, but you need