Good morning. Welcome to Worldwide Exchange on cnbc. Im sara eisen. Im wilfred frost. Very good morning to you from me as well. Lets check in on the global markets. After a triple digit decline yesterday and some ugly earnings from ibm after the bell. Thought it would be a big drag on the dow, especially when it was down about 6 . Dow futures are holding up. They are unchanged right now. Just barely positive. S p futures are up 5. Nasdaq futures are up 12. Broadbased selloff yesterday. What seemed to get a lot of attention was the bond market. Tenyear yield ever lower, moving to a low yesterday of 2. 16. Theres continued veracious appetite for u. S. Government debt. The word on the street yesterday, increasing concerns about a government shutdown. Remember next friday is the deadline for a spending bill. Will republicans end up passing it. Theyre on recess now . They have a few days when they come back next week. Thats one concern out there. Theres a number of them. Theres a big dip in
November. Ibm is set to weigh down the dow today. Notching the 20th straight quarter of year over year revenue declines. Plus, a border tax replacement. The white house considering a elimination of state and local deductions needed to pay for tax cuts. Some drama at 21st century fox as advertisers flee. Reports that primetime star bill oreilly is now all but out. It would be the third major departure for the network in the last year. Ibm bills down sharply in the premarket. The miss on the quarterly revenue overshadowing the sales beat. Down for 20 straight quarters. Ibm had an 11 quarter streak of opening lower on earnings. That was broken last summer. Now appears to resume. Yeah. Look, this was a kind of quarter where they actually didnt close certain business anded that they closed and had they closed certain business, you know what, things are on target. The Gross Margins are not done as much as they were. The signings are surprised that they did misit miss it. We accept it for qua
Out of the dow. Shares of ibm falling hard. Sales coming in short of street estimates for the First Quarter despite gains in the cloud, cybersecurity and watson. It does mark a 20th straight quarter of revenue declines at big blue. Company cfo, martin schroeder, on cloegz well. We have not been solely focused on the top line headline number of when can we print growth. Had we wanted to, we wouldnt have divested 8 billion worth of businesses. We would probably reduce our Investments Overseas where there is a currency impact. That has not been our focus. Joining us now is Credit Suisse analyst who has a rating on the 110 price tag. Ibm is trying to transform is self. How far of a setback back is this . It fundment falamentally tea transition they are going through. We see revenue shrinking through 2019. The second thing, we saw some evidence of that in this quarter. The second issue is this transition towards a cloud or initiatives we think is fundamentally gross margin dill lieu tiff. T
1. 6 level. And the headlines are on your screen. Our road man begins with a slew of estimates beating goldman and j and j. Netflix, subscriber numbers come up short, stock down 13 in the premarket. And the latest out of the gop convention, over plaguerism and what to expect today. First up though as stocks aim for more record highs, we have four dow components, j and j, ask gold m and goldman. Despite the uncertainty created by brexit, we achieved solid results by continuing to serve our clients across our diversified franchise and managing our business efficiently. One thing weatility is an environment they can operate in. We had very good quarters at bank of america, jpmorgan, sp spectacul spectacular, and city, really good quarter. Goldman, we found out fixedincome trading bank of america had good fixedincome trading. Tell me something i dont know. Goldman doesnt have any equity business to speak of in terms of ipos. It suffers by comparison to a bunch of other companies i did not
Europe relatively soft. Those uk and eu talks continuing. And watch the shortterm move in bonds. Oil, as joe just said, back below 30. Our road map is like this. Apples deadline extended. They have until the 26th of this month to respond to the court. Twitter and facebook both chiming in siding with tim cook as the security debate marches on. Yahoo forms an independent committee of its board as it formalized a process to review the sale of its core business. What is the next move for Marissa Mayers . Deere and nordstrom poised to open lower. First, stocks poised to open lower. S p up more than 2. 8 this week. Consumer prices flat for january, strip out food and energy, theyre up 0. 3. Separately, data shows that 70 of the nearly 175 companies that went public last year are now trading below their ipo prices. Guys, thats thats a rogues gallery of names. Yeah. Michael semblis, a fabulous strategist put out a piece talking about the unicorns. No one wants these companies because so many p