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00:00HAVE ALREADY BEEN PRICED AND MARKED ON THE DOWNSIDE ARE EVENTUALLY ALLEVIATED. I THINK WE COULD SEE THE MARKET CONTINUE TO RALLY. ALIX: ABOUT INTEL, IS THIS SURPRISING? CORY: THERE WAS SOME INFORMATION COMING OUT THAT HINTED THIS ON FRIDAY OF LAST WEEK. IT'S INTERESTING TO SEE THESE CHANGES. IT IS A BIG CUT. IT'S INTERESTING TO WATCH INTEL CULTURE. PEOPLE GO TO WORK THERE AND STAY THERE FOREVER. IT'S THE KIND OF PLACE THAT WHAT IS GOING ON ON THE DESKTOP AND THEY HAVEN'T GAINED SIGNIFICANT GROUND IN THE MOBILE GAME. SCARLET: WE'RE GETTING THE GROSS MARGIN FORECAST, THE ONLY PROFITABILITY MEASURE INTEL PROVIDES TO INVESTORS. IS LOOKING FOR A GROWTH MARGIN OF 62%. GETTING BACK TO THE CAP X FORECAST AND THE RESTRUCTURING, INTEL IS SAYING IN THE CAP X FOR THE FIRST QUARTER WILL BE $1.16 BILLION. THAT IS ABOUT HALF OF WHAT ANALYSTS WERE LOOKING FOR. THEY WERE LOOKING FOR $2.4 BILLION. CORY: THAT MIGHT BE MORE ABOUT ROLLING OUT NEW TECHNOLOGIES. THEY SAY THEY WILL KEEP THE NUMBER THIS YEAR IN MAY WILL BUILD JUST AS MANY FADS AS IS A INDICATED EARLIER. ALIX: IN TOWN NOW SAYING -- INTEL NOW SAYING IT WILL RESUME TRADING FOLLOWING THE EARNINGS HALT. WHAT IS NEXT FOR INTEL? CORY : THIS COMPANY IS GOING THROUGH AN IMPORTANT TRANSITION AS PEOPLE MOVE THEIR COMPUTING AWAY FROM THESE THINGS TO THESE THINGS. INTEL JUST HASN'T HAD SUCCESS ON THE MOBILE SIDE OF THINGS THAT THEY ARE LOOKING EVEN FURTHER DOWN THE LINE AT THE INTERNET OF THINGS AND WANT TO BE A SIGNIFICANT SUPPLIER TO CHIPS THAT GATHER DATA ON A SMALL BASIS BUT ALSO THE CHIPS THAT CALCULATE AND UNDERSTAND THAT DATA ON THE BACK END OF THE SERVERS. WITH EVERY PASSING MONTH, THE INTERNET OF THINGS BECOMES A BIGGER BUSINESS FOR THEM. THAT'S GOING TO BE DIFFICULT EARNINGS ARE UP IN POST-MARKET TRADING AS WE AWAIT ANY MERGER NEWS. JOE: I WANT TO BRING YOU INTO THIS DISCUSSION. YET FOR THESE A JOB CUTS BEING THE BIG STORY. ONE OF THE MAJOR SOURCES OF AND ZAIDI GOING INTO THE EARNINGS SEASON WAS MARGINS AND THE SUSTAINABILITY OF PROFIT MARGINS AND WHEN YOU SEE THIS COMPANY THAT HAS MASSIVE CAPITAL EXPENDITURES EVERY QUARTER CUTTING BACK SO DRAMATICALLY, WHAT DOES THAT TELL YOU ABOUT PROFITABILITY? STEWART: I THINK THIS IS ONE OF THE ISSUES OF DRAGGING GDP GROWTH. WE HAVE SEEN CAP X AND THE SNP -- S & P 500 DECLINED. THAT TELLS ME THE COMPANIES ARE FOCUSING ON LINE BACKSTOPS, CONSERVING CASH, NOT TRYING TO MAINTAIN THEIR MARGINS IN AN ENVIRONMENT WHERE CPI GROWTH IS ONLY 4.9% EVERY YEAR. I THINK IT'S DIFFICULT FOR COMPANIES TO MAKE MONEY, ESPECIALLY WHEN IT AFFECTS VOLATILITY AND FOREIGN MARKETS HAVE BEEN PARTICULARLY WEAK. COREY: AND INTEL, A PROFITABLE

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Intel to Slash 12,000 Jobs as Forecast Misses

Stewart Warther, BNP Paribas equity strategist, and Bloomberg's Cory Johnson discuss Intel's plan to cut 12,000 jobs, or 11 percent of the workforce. They speak with Bloomberg's Scarlet Fu, Alix Steel and Joe Weisenthal on "What'd You Miss?" (Source: Bloomberg)

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