The dow did go down. The nasdaq went down 4 or 5 . I spent the better part of this year studying the pandemic i was right. You know what we just cover . The professionals are not the only covid that matters. We have a Massive Group of investors who become professionals. They dont care about the same thing as the experts theyre the ones who were the marginal buyers and sellers. The investors have changed the entire character of the market what made you not be able to sleep at night it was very little belief in stocks for the past 20 years, the convention says stocks could no longer be trusted. They continue to lose their values way too quickly when something goes wrong on top of that, the convention only a fool to try to pick individual stocks. You may as well stop trying to beat the mark and put some of your money in an index fund and invest safely in bonds the last eight months, that convention has been stood on its head by a new generation of investors after the rise of Commission Fr
Good thursday morning. Welcome to squawk alley. Im jon fortt with carl quintanilla. It is cloud week on squawk alley. If you were betting against snowflake, wur oyoure out in t cold this morning. That stock up is 12 same for Cloud Security and authentication specialist okta were going to talk to the ceo to see if this thing may stabilize from here or go higher splunk, that is the sound of a cloud stock dropping 22 after missing Sales Guidance for the third quarterer in quarter in a row. All this happening as amazons cloud conference is in full swing. Salesforce announced the second Biggest Software acquisition ever and we started the week on squawk alley talking to ibm president Jim Whitehurst who came to big blue in what and is still thelargest Software Acquisition ever redhat driven by a hybrid cloud. Julia, investors are betting on further growth from already heady levels we can certainly see that in what is happening with snowflake this morning it is reapproaching the highs that so
And your comments a moment ago to andrew, just sort of crystallize, not just what a job shes done, but how companies are placing their bets on looking through cycles, even though were a week away from an election and in the middle of a pandemic. You have somebody the quality of lease why isa su, best ceo i country, nonpromotional, re competitive thought this was maxed out. Youre in the personal computer and data center, it is not good enough she saw what happened to intel i dont say that with any prejudice. Just that she left intel behind. She is in the data center, who is she who are her clients . Azure, google, and, of course, amazon but it is time she feels it is time to branch out into auto, time to branch out into defense into telco when you look at xilinx, what youre seeing is a mosaic where there is some overlap in data center, but the rest is an attempt to say, you know what, we need a bigger total Addressable Market we have to outgrow our markets right now. And i think it is a
I see london, i see france, i see you in your underpants i always hated that diddy when i was a kid but you know what . It perfectly describes todays actions. Sellers caught with their pants down tipping just. 15 . Yep, this morning investors saw london and they saw france, not to mention milan and madrid. Specifically the europeans getting hammered as covid back on the continent they figured wed import those losses from europe so they furiously sold their stocks to get out ahead of the weakness. Many of these jokers probably trading in their pajamas the feet with the dr. Dentons. Panic pretenders here dumped shares at a 10 1 ratio, meaning there were 10 shares for sale or down for every 1 share someone was trying to buy. Now the late, great mark haines, one of cnbcs finest, always used that 10 1 ratio to call bottoms, including the generational bottom that he nailed in march of 2009. When the ratio sellers to buyers is 10 1 hed say you have to hold your nose and buy because that kind
Underestimate senator mcconnell and his ability to corral maybe as many as 20 republican senators who believe that we have a vshaped recovery which of course is what President Trump has been saying. Its the senate that we look to, i think all discussions between secretary mnuchin and Speaker Pelosi have not borne fruit. One of the things i think they havent borne fruit because the republicans simply are not in favor of giving the states money. Speaker flossy wants to give many different businesses and states money because they are all strapped will this matter to that i dont think so i wish it would, i mean, in business i think it would, but not in politics. I feel, david, when i look at these numbers and i look at whats happened to the president , of course, we wish him well, i think that somehow nothing comes together in washington that you would think. Theres not a kind of a sympathetic lets get together, lets stop the war of words. It just doesnt happen like that anymore. No. There