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Here. Well talk about the big miss of big blue and spoke with david faber and investors are watching to see if we shake off that mess. Interesting, had the news of ibm come out midweek last week, big problem. Oh yeah. Dont you think . Markets for the most part, even though the dow hit pretty hard, is kind of taking it in stride at least now trying to work back into positive territory. All about earnings, fundamentals, a miss, one of the biggest price weighted names in the dow, youre right. A more nervous environment is raising the concerns. Today trying to fight back. A change of sentiment we felt over three days. Apple takes focus after the bell. Third quarter earnings with about nine days of iphone 6 sales and obviously closely watched and the reaction in the stock could be significant and well have the first analyst and best anywhere around. Jim breyer, he was in on facebook before anyone really knew what it was and well find out what hes interested in right now. Turned out pretty well for him, id guess. Did okay. Doing all right. In the markets right now, the dow is trying to work back into positive territory and just about there. Down fractionally. There you see it right there. S p 500 and the nasdaq are in positive, as well. Major averages have, though, seen four weeks of losses and trying to stop the shnide. As they say. Joining us is kelly connelly, mark madsen, mike mcqueen, sam stowell and rick santelli. Sam, first of all, this ibmer andings miss does take down the earnings trajectory for the tech sector, doesnt it . It sure does. It was expected to be up 4 and now up in the 3 to 4 zone. Also, brought down the overall s p 500 estimate to below 5 right now. But our expectation is to peak back above that 5 level and right now financials is the only group that is expected to show a decline, that would be a modest one. Kelly, we had Lee Cooperman on with us earlier today and asked him about where he thinks the market is, where he thinks it may go from here, too. Heres what he said and then lets react on the other side with the group if we could. Bear markets dont materialize out of Immaculate Conception and induced by the stock market smelling onslaught of recession or respectively overvalued market or maybe theres a geopolitical event but theres something thats a factor and i would say that i dont see the factors in play. I was saying on terms of deflation, the inventories in good shape, employment is growing, leading indicators are rising. He would be the first to say the market may be fairly valued and could go more. Do you agree . I do agree. And i like the way he put that. I think that the Economic Indicators were seeing are not indicative of a recession. We have got strong data coming in. We have got earnings that are encouraging. The Housing Starts came in very positive last friday which suggests forward growth. The Manufacturing Sector is a little slow but still its in the expansive territory. So im very optimistic. Im looking at the labor market and i do see improvement there. I had some concerns an probably still do have some concerns with the wage growth and i think that we he to look at i dont hear much talk about this is we have got over the next 20 years a tremendous amount of baby boomers retiring on a daily basis. So to compensate for that, we have got a tremendous amount of young people graduating from our universities that are extremely intelligent and ready, willing and able to jump into these jobs and bring a lot of ingenuity and okay. But short term well see volatility. I think the wild card here is the ebola, the midterm elections, isis. So im still a little cautious on the short term. I see some volatility but i think overall it looks good. Rick, you want to respond to that . Yeah. You know, i think mr. Coopermans always had a pretty hot hand in equities, cold hand with regard to interest raits like the big boys have so i continue to think that the message of the fixed income market is not really being taken to heart by many and i think its an important message. What is it . The message is that growth is sub standard around the globe and even though the u. S. Is definitely the stellar player with regard to growth its stale bit sub standard. Productivity definitely under historic norms for a postrecessiontype economy and vulnerable of issues and tonight checking out chinas gdp. I think that will be a very relative input in the puzzle and monitoring the notion that the stock market probably going to stabilize like today and i think that we are in a new chapter of not only volatility but i think of Interest Rates. I dont think theyre going to go up very far but theres very little doubt right now that most think well see at least 2. 25, maybe 2. 30 before paying attention to the potential of more buyers coming in at those levels. Yeah. So mike mcqueen, which is it that the market is ignoring, fundamental weakness that rick is talking about, the strength that cooperman was saying . You know, it is hard to go against leon coopermans advice but the market is clearly focused on the three es, ebola and europe and earnings right now but i think in a couple of weeks youll see that theres going to be a change in tone and remember that the consumer whos 70 of the economy has three big tail winds, improving employment, low Energy Prices and low Interest Rates and talking about a Holiday Shopping season and people realize the tail winds behind the consumer and going to change the tone of the market so i think thats whats going to drive the dialogue going forth in the Fourth Quarter. Rick, you dont think that as suspect as you may be about where the recovery is or where the economy is going, you dont think that were going or close or anywhere near recession, do you, as others would suggest like peter schiff, for example . I think 25 chance over the next three years. 25 would be the way id peg it. I think theres a high probability that europes going to be in a recession and how their banks and how some of the credit issues in europe affected by the slowdown is anybodys guess. I dont think its what we export there. I dont think its that type of a contagion with regard to europe. I think its more on the credit side and i think a lot of unknowns there, some of the stress test talk isnt optimi optimist optimistic. Mark, what are your odds . What about europe and the extent to which theyre exporting the weakness around the world . Heres the problem. Looking at recessions over 80 years, the market does better by about 1 per year when youre in recession versus just a growth period. Wait, wait, wait, wait. Counterintuitive. Wait a minute. Wait. Youre not seriously telling me right now youre telling our audience that if we were in recession performed 1 better than in a growth economy. Its counterintuitive. What do you mean by in a recession stop trying to what do you mean by recession . Any time you have a year of negative gdp. You are might be the case but its probably because they have already priced in a 40 drop from whatever the high was so of course you get a snap off the lows. Heres the point. Stop trying to predict the market. Nobody can predict the next 5 or 10 movement. Trying to predict the market in the short term is nothing but a guess and you should never manage your money on a guess about the future. Hold equities over ten to 20year period. And then when markets go down over the last month, you need to rebalance and buy equities. Look. U. S. Large Growth Stocks up 215 over the last since the last recession, since the crash. But no ones talking about that. Most people miss the 200 because theyre trying to predict the short run. Own it long term. Diversify internationally. Japanese stocks up 4 today. Be in 12,000 stocks in 45 Different Countries and if you are concerned about risk its a fair point. I understand what youre saying. And rebalance. I understand what youre saying. Ten to 20year time horizon. The wiggles dont matter so much for people trying to make decisions about how many money to have at the end of the year or next year, certainly, an event like a bear market would be a big deal. If you cant stand volatility, be in cash period. No matter what you think the market will do. You know, youre picking from the worst possible march of 2009 to get the 200 plus percent. Look at a tenyear horizon and its smaller than 200 plus percent. Equities have done great over ten years. If you owned a not as good as picking the bottom and then nailing it. We all know that that in 2009 the market overcompensated to the downside. So, you know, we need to be open about the notion that theres been a lot more lateral moves to the fixed income or, excuse me, the stock market than just by looking at what happened post crisis. Thats for sure. Guys, we have to leave it there. We have breaking news but thank you, everybody. In fact, we have a market alert here from treasury secretary jack lew and Steve Liesman with the details. Thanks very much. Jack lew in a brief conversation with cnbc said the recent euro dollar movements are linked to growth differences. He says they dont seem to be linked of movements and policy and watchful for policies, specifically aimed at that reason. Jack lew in a statement to the imf a couple of weeks ago at the meetings did raise some concerns about whether or not he was concerned about the level of the euro versus the dollar or the otherwise depression of the dollar in a statement saying g7 and g20 countries need to be mindful they have agreed not to use currencies to deappreciate other currencies and the greenback up about 7 since may and questions in the market of the tolerance of the u. S. Government for this appreciation of the dollar versus the euro. Up a little bit stronger here. 128. But jack lew saying he sees it more as a result of growth outlooks than policy. Kelly . All right. Well leave it there and see if the dollar continues here and always the counter trend. Talking about the strong dollar, takes a backseat. Baby it gets a second wind here with about 48 minutes to go into the close. The dow now positive. Its up 6 points. We might have a full pledged rally on the hands if not for ibm. Does big blue have the right plan for the future . Is the cloud the answer or already saturated with too many players. Ibm might not be the biggest earnings story by the time the day is over. Apple reports after the close and well get you the numbers to watch for live next. And the pros chime in on apple pay and whether it pays off for the tech giant and take part in the live poll asking if you would rather use apple pay or your credit card. Cast your vote. The polls are open well be right back. Theres confidence. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts means your peace of mind. Its no wonder last year we sold over three million tires. And during the big tire event, get up to 140 in mailin rebates on four select tires. shouting location. Heres the location that matters the most. Here. Or here. Or here. Its wherever this is. To get customers to come here and stay here, youre going to need an app that connects to all your systems. So they can bank, shop, do what they need to do, and you gotta do it fast. Before the competition does. Its tough out here; you better be on the right cloud. Today theres a new way to work. And its made with ibm. An Unprecedented Program arting busithat partners businesses with universities across the state. For better access to talent, cutting edge research, and state of the art facilities. And you pay no taxes for ten years. From biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo. Startupny has new businesses popping up across the state. See how startupny can help your business grow at startup. Ny. Gov welcome back. Lets take a look at shares of apple here 2 just under the 100 mark gaining ground ahead of the Earnings Report today. Josh lipton has the numbers to watch for. Josh . Reporter well, kelly, you know, apples ceo tim cook recently said that the new iphones are the fastest selling iphones in history. So how many exactly are we talking about here . We should have a better sense after the bell today. Now, the street wants to see eps of 1. 31 on 39. 9 billion but the number, of course, that investors and analysts look for iphone shipments and they want to see 37. 4 million. On the call, youre going to hear analysts want more clarity about that mix of the 6 and the 6 plus. Also, how that launch in china is going. As for i pads, the street is looking for 13. 4 million. We know they have disappointed the street and interesting to see whether apple can reverse that friend. Finally, 4. 9 million macs which do represent about 12 of the companys revenue. Of course, today, apple launched apple pay, the new mobile payment service. Apple hasnt said how to make money off this service and analysts look for any insight from cook and company about that on the call. Guys, back to you. Josh, thank you. And we understand the estimate for apple is 1. 31, up from 1. 30 this morning, scott. That report due out in about an hour. We have a few questions of apple pay. Is it easier than a credit card . Joining us to help us figure it out is our guest. And paul waggenseal. Hes not so sure apple pay will take off. Before we start the discussion, we want you to chime in. Go to cnbc. Com vote. Would you rather use apple pay or your credit card . Want to hear from you. Paul, to you first. Why dont you think that this is going to be all that . Because it wont be that much more convenient than a credit card. This is the third or fourth attempt to have a digital wallet. Google tried it. Didnt really work. Verizon and at t and tmobile also trying to do it with softcard, formerly isis. They changed the name. Probably good idea. It is not taking off either and the issue is it is not that convenient. This is apple. Good brand. Its a brand coming in to fit after everyone tried and failed and doesnt work and they get it right . If it works perfectly. Google wallet didnt. I would buy a stick of gum. Ping, ping, ping. Wouldnt work. The fifth or sixth try it would. And then i gave up. Paid in cash. What makes it this different this time with apple pay . I disagree with paul. I think it is easier to use and improved the hardware so i havent used androids wallet so i dont know whether it works or not. You know, the fingerprint sensor on the new iphones much more reliable. I couldnt get it to work on the 5s but this is rock solid. Im assuming if it all goes to plan, i think its more convenient than swiping the card. Usually a number, a zip code. Answer about 12 questions. You dont have to do that and punch in any numbers or zip code. Maybe the gas station or subway station. I have to push in a zip code or a pin number and insecure. Look at the huge data breaches, they had target and home depot. I think this solves problems on the security side. Either one of you used apple pay . Do you have the iphone 6 capability to use it . No, i dont. I downloaded it. I havent been to the store yet. What is it like so far . You have to upload that did da that into the phone. I took a picture of my card. Took a second. I think the interesting thing to play into kellys question is you have to have the iphone 6 to use it. How much of an issue is that . I mean, fully dependent on people adopting the iphone 6 or the 6 plus in large numbers. You need the hardware. Thats right. The iphone 6 has an nfc chip in it, a secure element that the system relies on. Not like an app from the store to the existing iphone such as the 5 or 5s. Thats right. You can if you have the apple watch thats where the chip is. But other than that, youre sort of not going to be able to do it. We are now late in the day and we havent really heard much about this. Does it indicate its launching smoothly or too quiet out there . I dont know. People are like me. You have to download 8. 1 and then a store and its still, you know, its not at every store. Its at 200,000 stores but theres pretty big ones. Whole foods and walgreens. Ill try it on the way out of here. Tweet us. What about the issue of making money . Thats the thing. There are other come peetding formats and one we havent talked about of mcx. Merchants Credit Exchange i believe and supported by walmart and target, old navy, gap. You will not be able to use apple pay at those stores and being test run in cities around the u. S. And out next year. Well, the key for apple is demo, a lot of these upscale places have the technology in place and could give them ease of adoption and a cool thing to do. Apples smart. They basically kind of go after the luxury market first. Apples a luxury brand. Yeah. By the way, heres where the i pow wow poll is. Apple pay or credit card . 54 say apple pay. 46 using the credit card. But again, we want to know your experiences with it so please do let us know how it goes, how easy it is. 35 minutes before the bell rings and the Dow Jones Industrial average in negative territory by about 16 points. S p is not. Its firmly positive. 75 . Nasdaq is outperformer today up better than 1 . Ibm ceo talking strategy with our david faber this morning. Were reshaping this company around analytics, around cloud and the term i use engagement. Up next, pros hash it out. Should she think about expanding into the cloud and not enough room and whens become a very crowded space . Another big blue inspired debate, good idea for Tech Companies to undertake huge stock buy backs . We get into that after this. Ameriprise asked people a simple question in retirement, will you have enough money to live life on your terms . I sure hope so. With healthcare costs, who knows. Umm. Everyone has retirement questions. So ameriprise created the exclusive confident retirement approach. Now you and your ameripise advisor. Can get the real answers you need. Start building your confident retirement today. Inside a car designed to connect you to a world of possibilities. The connected car by volvo innovating for you. receptionist Gunderman Group is growing. Getting in a groove. Growth is gratifying. Goal is to grow. Gotta get greater growth. I just talked to ups. They got expert advise, special discounts, new technologies. Like smart pick ups. Theyll only show up when you print a label and its automatic. We save time and money. Time . Money . Time and money. Awesome. Awesome awesome awesome awesome all awesome i love logistics. Welcome back. Dow trying to fight back into the positive territory last hour today. We are well off the lows and down 15. While the s p and nasdaq especially sharply positive. Dominic chu is covering the moves for us today. Dom . Lets start with travel stocks. People coming off ebola watch lists in the United States and united continental, Carnival Cruise lines, positive news for some of these stocks. Mead johnson is falling. The shares down by about 3 on the trade. Newlink genetics with an agreement making it eligible for a possible 1 billion in milestone payments over the life of that agreement. Newlink is trading up by about 11 . Ibm, of course, big blue, an 85point drop in the dow by itself this after posting a big earnings miss and called disappointing. Trading you can see there down by about 7. 5 . Sap losing, as well. Beat expectations but it cut the forecast for operating profit on a shift in cloud revenue. The shares there down by about 5 . Kelly, scott, not for ibm, the dow up by about 60, 70 points on the session. All right. Dom, thank you. Speaking of ibm, sap and the cloud, ibm ceo said exclusively this morning her company will put more focus on the cloud moving forward. What is happening is the pace is moving even faster. We thought it was fast. Its moving even faster. So make no mistake. So part of what were going to do to accelerate faster in cloud, taking several units across the company, combining them, dedicating them into a cloud division. So, how will the battle for the cloud play out . Bring in ben par of dominate fund and max wolf of manhattan venture partners. Guys, welcome. Max, ill begin with you. Everybody loves to say theyre in the cloud. These days. It is like just one of those words. You say it and then expect your stock price to go up and then investors to believe in your story but were clearly finding throughouts winners and losers. Well put. I dont think i could improve on that except for mobile is for consumer side, cloud is for the enterprise side. We are in the midst of a revolution here an the platform, the back end, the tech support that folks spent a lot of money building out an hiring people to maintain and then trying to update is moving into the quote unquote cloud and server farms and Server Centers and what people use as Onboard Computers is a slab with a screen and a Touch Control ala mobile and it will be in the cloud coming later to the ent enterprise than the consumer space and it is a transformation and 900 people chasing 200 seats. Thats exactly it. We see the cost coming down and duck, duck goose on the corporate level. In the case of duck, duck, goose then, ben par, is this the right strategy . Does ibm and competitie pepetit choice here . Its a strategy that seems to be cannibalizing the profits. Yeah. Sorry, ben. Go ahead. I was going to say, absolutely the direction theyre going right now. Its because the cloud markets growing and people rejecting the old way of buying software, go to the store and buy Microsoft Windows 95. As a result, these company vs to learn how to adapt to make better profits off of it. Theyre making tons of money on drop boxes and stuff like that. Microsoft today Just Announced that theyre doing deeper into a zero and the cloud stuff and the way to go. You just i think they have to pick the right markets to make the highest margin of profit. A lot of times they dont know how to be profitable. Thats an interesting question, max. You think companies are underestimating how difficult it is to turn profits in the cloud. Yeah. I think the big problem is a lot of guys think they do what they used to do and in the cloud and call it xyz as a service and make it a subscription and while thats nicer than chunky Software Sales but you have to have smart ways to use all that data storage. Both by the particular client and other clients, you have to deliver them a more secure product in a better environment and you have to constantly innovate at it. I think where we see missteps is trying to move the same old thing into the cloud, charge by the month and not really take advantage of the new platform but just do me too work and its too competitive to pull it off. Ben, that means that those differentiating and charge a higher margin for the service have to be those to guarantee security, also layer on top of it analytics, marketing even. I mean, kind of leveraging big data. Is ibm pulling the right levers in this so that theyre going to have the areas to make the case to enterprise to be on their cloud and paying them above and beyond for their services . I think that ibm has the resources but the issue is the cultural kind of thing. Can you change a culture as big and massive of ibm of cloud . Theres no packages. Its about building the subscriptions and truly having that security and having features that none of the others have. I think people will be turning to a microsoft or a sales force or others with more experience in cloud. Ibm can get there and the right move. Its whether or not virginia and the team makes that culture more about the cloud and their focus. All right, guys. Thanks so much. Good to speak with you both. Thank you. All right. Ben parr and max wolffe with us. Theres a Silver Lining to the cloud. It is an incredibly cheap to store data, massive amounts of storage for the consumer, corporate. Seeing the budgets, scott, falling in this day and age. I thought it was another duck, duck, goose reference. You can tie that in with the cloud. And you win. The dows down by about 9 points. We have the s p and the nasdaq still in the green today. All right. Coming up, apple today could keep the bears away if the numbers are good. Tech giant for the results after the close. Stay with us for that. Up next, are stock buy backs smart for Tech Companies to keep up with changing technology . Stick around. Its a hot issue. When change is in the air you see things in a whole new way. Its in this spirit that ing u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. Introducing a pm pain reliever that dares to work all the way until the am. New aleve pm the only one with a sleep aid. Plus the 12 hour strength of aleve. Or a helping paw ater, Everyone Needs a helping hand, so mattress discounters good deed dogs is raising money to help train Assistance Dogs for wounded veterans. Veteran i live independently because of what all it provides for me. And its huge theres a lot of wounded, ill, and injured out there just like myself, who just maybe need a little bit of help. Tag you can lend a helping paw too. Give at mattressdiscountersdogs. Com or any mattress discounters. Mattress discounters good deed dogs helping dogs help people. Im just looking over the company bills. Up . Is that what we pay for internet . Yup. Dsl is about 90 bucks a month. Thats funny, for that price with comcast business, i think you get like 50 megabits. Wow thats fast. Personally, i prefer a slow internet. There is something about the sweet meditative glow of a loading website. Dont listen to the naysayer. Switch to comcast Business Today and get 50 megabits per second for 89. 95. Comcast business. Built for business. Welcome back. Ibms earnings a disappointment and walking back the 2015 forecast and warnings. Heres what they had to say at cn cnbcs delivering alpha con ferns. Ibm is a poster child. They face literally of the threat not dissimilar of kodak and xerox of a new technology staring them in the face and instead of increasing investment to combat the threat, theyve actually borrowed a lot of money to buy back stock. Well, today, we heard nothing is changing on that front. The framework, very many consistent parts of that framework and what i think our longterm shareholders value because the essence of that framework was continue to move this business to higher value, manage it for the long term and above all prioritize the importance of dividend and Share Repurchase for returning value. None of that changes. That part stays the same. So are buy backs in the fastchanging tech world a good idea . Lets ask sarah and darren. Guys, good to talk to you. Good idea or bad idea . Or is it too not right to put the broad stroke . I think it depends on the situation but companies rely too much on the appeal of stock buy backs to i guess financially engineer the stock price for the most part. Again, i get the appeal. We think the stock is cheap and own it and use the excess profits to buy back the stock and increase eps, but frankly, if youre a healthy, growing company id much rather see you put that money into your own business, hire workers, buy capital, invest in marketing. Thats where you see the best returns typically you see increases in stock buybacks for company that is are having trouble figuring out how to use the money efficiently. Not apple, right . I dont know if you make the case depending on who you are to use the money more wisely. However, no company has bought back more stock i think in the history of Corporate America and growing fine organically. Thats true. The growth rate this year declined basically flat to 5 . Were fans of apple but yeah. There are situations apple makes so much money and impossible for them to efficiently plow back that capital into their own business or through m a and generally a failing tactic so in this case i love dividends the most. I think thats my money as a shareholder. Those are profits that i am entitled to and rather get the money in my own hands and decide how to use it. Sarah, you know, it is conventional wisdom more or less that its old tech company that is do the buybacks and new Tech Companies are growing too quickly and the question of ibm this morning is should we take it for granted that old tech isnt doing more to deploy the capital to reinvent itself . To me, this is exemplified of our global value fund. We own oracle. We dont have ibm. And one of the reasons why is the Software Companies dont have a legacy hardware business that ibm is saddled with and done a really nice job of marshalling their cash flow and using it for very productive acquisitions getting them into the cloud and position them where they need to be. So thats what were looking for and agree, dividends especially in the low Interest Rate environment are very valuable. More so than buybacks. All right, guys. Thank you. Sarah and darren. Yeah. Sorry we had to break away there. Well send it out to dominic chu here. Hi. Were watching shares of trinity industries, found guilty of making false claims to the Government Regarding safety in their etplus guardrail terminal lining the highways of all 50 states in this country and 60 countries around the world, as well. Trinity must pay 175 million judgment. Those shares down by about 8. 5 on the days trade. Back over to you. Guys, thanks so much. 20 minutes to go before the bell on this monday. The dow is still hanging around that flat line. Its a slight loss right now. Again, major averages have seen four consecutive weeks of losses. Trying to break that streak starting on day one of this week. The vix down about 3 points and thats in the positive category. Up next, the ceo of tinder joins us. Well talk how he plans to expand the service and old versus new technology and if things are moving so fast, everything is old faster than we ever imagined. Music. The getaway vehicle for all the confidence you need. Td ameritrade. You got this. Welcome back. Just over 15 minutes to go here. The dow around the flat line and s p and nasdaq having a strong day. Take a look at the nasdaq briefly up 51 points. 1. 2 . Obviously, all this as we wait on apples big Earnings Report to hit just after the bell. Dating app tinder an appearancebased match making service you could say essentially people decide on who to date based on pictures and maybe or not what you have in common. And its gaining traction over a year and as we know the tech sector is fast paced world and scott is already done with tinder. Yeah. For a reason. It will have to reinvent itself to stay relevant. So thank you. Hows this company staying ahead of the curve . With us now in an exclusive interview live from the forbes under 30 summit in philadelphia is tinder ceo shawn rad. Shawn, welcome. Good to speak with you. Thank you very having me. For those who dont know exactly how you operate and how your Business Model is run, how do you guys make money . Right now, we are free service. In the very near future we are going to introduce a premium offering where, you know, we are giving our users two features that they have been asking for, for a very long time, and we think it adds enough value where users are willing to pay us for the features and thats coming very soon. Some predictions have you from a revenue standpoint of 180 million next year. Is that presumptuous . Is that a possibility . How would you characterize predictions such as what . I think we are just focused on delivering meaningful value to the users. As long as, you know, we continue to sort of solve problems for them and give them a great user experience, we think they are willing to sort of pay for that value. And i think, you know, the Value Proposition of connecting you with somebody new, a shortterm relationship or longterm relationship or something beyond that, i think is something that people are willing to pay for. So were just excited to create great value for our users and as long as we do that i think we create value for shareholders. You probably understand what it is to be the hot, young thing in the tech world, at least. Tinder had a moment or two. People were shocked, surprised, interested. How do you maintain that interest, especially as people go, you know what . If im interested in these kind of hookups, i have to do something more private . Sorry. Could you repeat the question . The question is, how do you stay the young, hot thing in the tech world . Can you exist the way that you do today when people are going to places that might be more private . Yeah. I think, you know, tinders all about actually giving control back to the user, meaning on tinder you only can communicate with somebody that you have swiped right to or opted into and that person has also opted in to you. Embedded in tinders entire model is control and privacy. But you see everybody thats on. You look at the pictures first, sean, as you know. You have to the point of swiping one way or the other is first you look at the picture so its obvious who else is on tinder. Right. But i mean, users have chosen to sort of put that information out there. But you cant invade anyones privacy or communicate with them until theyve actually opted in and approved you to sort of to be part of their communication stack so the beauty of tinder is our whole goal to emulate real life. You think of walking about your day. You see people you want to talk to and challenging and difficult and afraid to get rejected and tinder allows you to opt in in a safe way and connect like never before. Were solving some core issues around discovery whether its with romance or other categories of discovery, our goal to reduce the friction coming to two people meeting. How do you think about the ipo window . Just in the current market environment, how you may feel about where the economy is right now on the heels of alibabas ipo which a lot of people say sucked the air out of the room for everybody else. How do you think about that . To be honest, i dont think much about it. Were just so focused on delivering value for customers. I know, i know. Were in a healthy place financially. I know but to be honest with you and certainly respectfully, t thats the same answer from anybody in your position. I respect that. I get it. But you deep down think about what the environment as a whole feels like. Looks like in the market police. Right. When you see an alibaba go public. Can you just speak to that . Well, so, i see a lot of value being created. I mean, sure, you have skeptics who would say theres another bubble coming but i think theres a clear difference in that theres actual meaningful value created and Companies Generating value and profits off that value. So i think there is some sustainability of whats happening and as far as were concerned, like, were just focused on customers and just, you know, as long as we continue to deliver lasting value for customers, i think well be here for a long time and be a formidable player in the market. Sean, we have to go but i want you to briefly address the culture, all of this Wealth Creation and comment. You guys have been accused in the last couple of months of having a sexist culture. I understand that you settled the lawsuits but it seems like every other day you pick up a headline and reading about women who feel like theyre being victimized in the startup firms. Is there a problem as you see it, whether at your company or at others . You know, i think theres a general imbalance in the market. And, you know, i think were going to do our part to make sure that, you know, that there is equality and i think im hoping that over time, you know, things will become more balanced. As, you know, were doing our part and focusing on our environment and retaining a great culture for our employees. And i think, you know, were there and were motivated and focused than ever on sort of again solving users problems and working with everyone to add value in that equation. Understood. Sean rad, whos certainly sparked a number of interesting conversations, scott, about what people are looking for with social media and finding it. Tinder ceo from the forbes, 30 under 30 event today. With about ten minutes to go before the bell here, the dow positive. Well see if it holds on to the gains. Art cashin saying we were seeing pressure on the sell side but about 200 million to buy on the close. May lend support in the final minutes. The earnings parade after the bell picks up. Apple, thats right, apples coming out. Chipotle, Texas Instruments posting results. Were going to bring you numbers and the instant reaction the minute they hit the tape. Tell you how to affect trading tomorrow. Do not touch that remote. Ness w. An Unprecedented Program that partners businesses with universities across the state. For better access to talent, cutting edge research, and state of the art facilities. And you pay no taxes for ten years. From biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo. Startupny has new businesses popping up across the state. See how startupny can help your business grow at startup. Ny. 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Ask your doctor about cialis for daily use and a free 30tablet trial. Sea captain theres a narratorstorm cominhe storm narrator that whipped through the turbine which poured. Surplus energy into the plant which generously lowered its price and tipped off the house which used all that energy to stay warm through the storm. Chipmunk theres a bad storm comin narrator the internet of everything is changing how energy works. Is your Network Ready . Well, watching the action approaching the close. About six or so minutes. Bob is watching the action all day. All last week. Boy, things are more calm today. I know. You know, three things that have been happening today. Number one, put them up here. A belief the feds going to be dovish next week when they come in. Bullard kind of hinted that might happen next week. Number two, oil dropped dropping. Not going down anymore. Number three, ebola fears ebbed a little bit. 43 people passing that 21day incubation period, a relief. You could see that in oil and some of the big Energy Stocks today. See the exploration stocks stopped dropping in two days. You can see it in the travel stocks. Royal caribbean reporting this thursday. This stock was 51 back last thursday or so. And now already towards the 60 range and important. Thats a big move on the other side. How about the timing of ibm today, bob . Had that happened on wednesday of last week would have been a mess. Even today, you could see how the change in attitude. People saying, listen, this is a oneoff. This is an old tech problem, bob. Look at sap. Same thing happened. Their problem is out there, too. It is an old tech issue. A pass today. All right. Bob, thank you so much. Okay. Up next, you know what were doing. Closing countdown. After the bell, the earnings parade. The heavyweights in the ring. Apple, chipotle, Texas Instruments. Youre watching cnbc, first in business worldwide. Tomorrow we go live. Its a day full of promise. And often, that day arrives by train. Big day today . Even bigger one tomorrow. Csx. How tomorrow moves. Ameriprise asked people a simple question in retirement, will you outlive your money . Uhhh. No, that cant happen. Thats the thing, you dont know how long it has to last. Everyone has retirement questions. So ameriprise created the exclusive. Confident retirement approach. Now you and your ameripise advisor can get the real answers you need. Well, knowing gives you confidence. Start building your confident retirement today. In a we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. All right. Welcome back. The floor of the New York Stock Exchange for the closing countdown. Heres the three major averages. The dow trying to eke out a gain. S p as you know and nasdaq have been there all day. Nasdaq is the outperformer. Waiting for those earnings coming out momentarily. Apple, chipotle, Texas Instruments. Thats going to be certainly ones to follow and could very well dictate how we open up tomorrow morning. Were also trying to figure out what ibm means and continues to track. With me is anthony chen, jeremy hill. Good to see you. Thank you. Anthony, im excited about the study i conducted this weekend on market volatility. That sounds fun. It is awesome. Fun weekend . Clients are upset last week because of all the volatility and yet the data shows since 1990 every time you have a lot of volatility, the improvement is impressive. A little over 13 and a lot more impressive with above average vix readings. Jeremy, the volatility of last week going to rear its ugly head again . I think we are actually in a little bit of a range here in volatility. My guess is coming down on the vix 17 handle over the next couple of weeks and credit volatility up a little bit and could surprise people Going Forward and might translate into negativity into the equity markets but all in all i think we are going to see performance chasing. Do you feel like the worst is behind us . Im not sure about that over the longer term but over the rest of 2014, yes, i do. Quickly on same question. Worse behind us . I think the worst on the fundamentals is behind us. I think europe is going to improve. Seeing a bigger move towards the Positive Side of European Central bank. All right, guys. Have a good one. See you soon. Ten seconds to go. You know apples coming out. Chipotle and Texas Instruments is coming out. Kelly evans and the gang pick it up right now. Thank you, scott. Welcome to the closing bell, everybody. Im kelly evans. Diversion across the major indexes, lets begin with the dow looking like its finishing up by about 16. Just shy of the 16,400 market. Again not for ibm and the hit after reporting a disappointing earnings result relative to what the market was expecting we could have been positive to the tune of almost 100 on the close today. S p 500 on a gain. Nasdaq adding 57. Bring in todays panel to talk about it. Joining me is ross gerber, Nicholas Carlton and jon fortt and guy adami. Welcome. Hello viewers paying close attention may have noticed we have a group who can talk all things apple when the report hits at 4 30. Several other interesting things in the market today, guy. Notely, the tone and tenor is much different story of last week. What changed . People feel better about things. Kelly, well, the technicals have held up and in 1970 was the level. 1904 is the level that everybody talked about that second wave down. That was support. Support becomes resistance. I think thats exactly whats happening now. Im inclined to sell the market. I think im wrong on a close above 1925 and feels eerily similar as to back around october 10th or so. I dont think anythings changed and the market might be technically broken and in for a retrace of the level of last week on the downside. Ross, you agree . No. I dont agree. I was looking to get above 1900 today. It was actually really positive sign. It was a lot of negativity in the market the last few weeks and, you know, we saw selling capitulation on wednesday and the way we know that is we get calls from the clients panicking and when we start buying. So we saw the public did you tell them that . Yes. We try to talk them out of selling every time and we are pretty successful at it but hold that thought. Public panics. When youre buying. Chipotle just reported earnings. Jane wells, what do you see . A beat for Third Quarter eps 4. 15. The street looking before 3. 84. On the bottom line, the top line revenues beat slightly at 1. 08 billion. The street looking for 1. 06. Comps at almost 20 and the streetinging loor 17 . Restaurant margins about the same. Outlook for 14 looking the same. Top and bottom beat nicely. Back to you. Thank you. Shares appear to be trading slightly weaker on the results. Results, ross, including a 32 revenue increase, same store sales increase of about 19 . Were used to this coming to chipotle, though, arent we . Yeah. Theyve been growing like crazy. Theyre in a great business. Semihealthy food, a big trend for us we follow moving away from mcdonalds to the chipotle. Mcdonalds used to own this company and it was so dumb of them to sell it. And to spin it out versus keeping it because its a huge growth story. Any parallels back to the tech sector, jon . Theres not as much buying, more spinning out. I think you could argue. At least in the enterprise space. But at the same time, you have Companies Like microsoft, arguing that they dont want to break up. Ibm making the same argument this morning. On the one hand, you have the pressure from investors to create value and can cause companies to maybe break off little pieces of things but on the other hand, the cloud trend and enterprise is multiple pieces for software and platform. Splitting them off, you dont have a cloud story anymore. Nicholas, where does that leave the companies that jon referented, microsoft and ibms of the world . I think a smart shift of just having the best application. Whatever platd form. They have realized what theyre doing is cloud infrastructure. Hold on. Well retrieve your mic to hear you properly and go to guy. Can you talk about the chipotle numbers . What do you make of it . Not good enough. The stock is fine. Its monster. They continue to spoke it on the eps side and a little bit of a revenue beat, a good thing, margins look pretty good to me. The read through to me is all along jack in the box which nobody talks about. We talk it all the time. Why . Because they own qdoba and a monster of jack in the box. Look at that stock and performed so that whole space is on fire. I think ross made a good point of mcdonalds. They would love to have cmg back. They dont. But the red through to me is yak in the box. Jane wells has bit more detail on the quarter now. Chipotle raised prices last quarter and did say food costs were 34. 3 of revenue and increase of 70 basis point of increased prices of beef, avocados and dairy and basically saying its sales growth driven by increased traffic from an increase in average check which includes the benefit of a nationwide menu price increase rolled out. Food prices went up. Prices went up. Sales went up. Yeah. That seems to be working positively for them. Now if only europe could follow suit. Chipotle shares under pressure to the tune of 2 after hours digesting that if you will. Lets go back to Nicholas Carlson whose mic is fixed here and talking tech. The point you were making was an important one. Smart of microsoft to shift towards being everywhere you want to be, no matter what platform youre on. People are stuck in these applications but these applications used to be stuck on devices people dont want to buy anymore and smart to get on the ipads and focus on that. Last hour our guests were debating, they were saying part of being on the cloud is being goto guy to be on the cloud, sales force or microsoft. What can an ibm do then to become the what argument are they making when the offerings are already on the market . Well, i think youve got to look at what Asset Company vs to compete with because the cloud, its a big businezz word and multiple come peetding forces. Amazon is taking down the margins in a hardware through their push on the cloud. Google is taking down or trying to take down the margins in software through offering google docks in the cloud. That competing with office. Now oracle is moving into platform as a service trying to provide the data base. Platform as service company, sap love to offer in a way to decrease the mar yin in database and look at companies of multiple different tools and pull the right levers to get a profit. Were going to leave our jane wells here with the final word. Jane, on chipotle before wrapping an up this chat. What else can you tell us . One reason shares may be under pressure. They expect mid teen comp restaurant sales this year, next year, low increases in 2015. Well, that will do it. Jane, thank you very much. Digging through those earnings as they hit. Shares of chipotle under a little bit of pressure and waiting of apple earnings. Catch guy adami at 5 00. You dont want to miss that. Hes one of the worlds top tech investors and made one of the earliest bets on facebook. Up next, jim breyer tells us exclusively what he thinks the next big thing in tech is. How electrifying are sales of i 6 and 6 plus . Well have full Team Coverage of the results next. Its monday. A brand new start. Your chance to rise and shine. With centurylink as your trusted technology partner, you can do just that. With our visionary cloud infrastructure, Global Broadband network and Custom Communications solutions, your business is more reliable secure agile. And with responsive, dedicated support, we help you shine every day of the week. Centurylink your link to whats next. Welcome back. Rapidly evolving tech space with the share of winners and losers, ibm in the losing column for at least today. Next guest has as good of handle on if companies to stay ahead of the curve and live now from the forbes under 30 summit in philadelphia and here in an exclusive, jim breyer from excel partners and founder of Breyer Capital. Welcome. Great to have you. Great to be here. Can you just begin by letting us know whats the next big thing right now in tech . Well, ill tell you. The best big thing this im betting on is companies that sit deeply at the intersection of cloud and analytics on one side and media, finance, health care and energy on the other. Where they intersect is where the huge opportunities will be. Wow. Five to ten years from now. I think you just put the whole u. S. Economy on notice. Energy in particular. Whens going on in that space . Well, what i think is so interesting about the energy area is privacy, security and our grid in the United States and canada is about 40 to 50 years old coming to fundamentally securing and defending our electricity and oil grid. There are a number of financial young entrepreneurs, some of them here at the 30 under 30 Whose Mission is to develop security and privacy technologies that will secure our grid, electricity, l g, oil plants in ways never been done before. For me, thats not only a great Investment Opportunity but a great thing for the country and makes us stronger we eer as wel better. Sounds not only important, vital, if you will, and potentially expensive. Talk a little bit about how much of a rebuild this will require of our existing infrastructure. The rebuild is actually surprisingly inexpensive if its integrated well with what exists and the beauty of what so many others building on cloud, aws services, what google has done, its one fifth, 20 , of the expense to get to market today with a mature cloudbased technology versus five years ago. Were seeing that in finance, bitcoin oriented startups. We are seeing that in patientcentered startups focused on hospitals and doctors. We are seeing that in commerce where two years ago we saw companies innovate in these kinds of ways and we are seeinging it in big media. Legendary pictures, and entertainment, a current example of applying deep analytics to take one fifth the cost and in some cases 80 of the cost out of some traditional activities like marketing and movies. You know, jim, if i were ginny i wouldnt be happy. Sounds like deflation waves. Look, how much of Corporate America is remade by seeing their budgets whether its i. T. Or other things declining here . Its wonderful news for the u. S. Consumer. And i start with that. To build jobs, to build growth its wonderful news because costs can be driven down while in some cases, again, looking at cue rated marketplaces and other Companies Like legendary. The Customer Experience is so much better at an equivalent cost. The smart, innovative companies, large and small, that embrace, implement and execute over the next five to seven years in many of these new technologies will build very Significant Shareholder value. Because im thinking through what we have learned this year and that is there havent been blockbuster movies, havent been bigselling albums and a song of the summer. What is the Common Thread there . Well, there are songs and movies being released online, delivered online and we may be losing some of the blockbuster nature of the media business. Although, avengers, marvel and that series is doing just fine, i would add. But for small, independent filmmakers or content producers not about the blockbuster, it is connecting to the consumer, subscriber, we may need far less middlemen in the entertainment, the media business, Health Care Business and some of the other major sectors that have had many, many layers of unproductive asset that is are being flattened slowly by technology and irrevocably by technology. If im one of them, jim, where should i think about going . Where do i look . Well, if youre one of the unproductive assets, first of all, theres good news for the consumer. Thank god that cnbc is not one of those unproductive assets but i sure like the idea that one of the fundamental factor that is a lot of new entrepreneurs is focused on is next generation education, training, thinking of internet and mobile as the fifth wall of a University Classroom or a museum and theres no reason in the world through effective use of technology, mobile and social networks, the u. S. Cannot gain and regain our position as simply the best k12 and higher ed Education System in the world. Thats a chilling thought. Another one for people here might be going back to what you were saying with regard to the disruption of finance happening. Obviously, apple pay launches today. I dont know whether its apple pay specifically or the other n innovation you may be seeing. To what extent are the big banks being put on notice . Oh, i absolutely believe the big banks are being put on notice. They dont go away. There are wellmanaged banks. There will always be the need for huge, worldwide Money Center Banks but whether its peer to peer lending, Companies Like prosper, lending club in china where the large investors in a peer to peer Lending Company of credit ease, there are bitcoin and bitcoin variants in terms of mobile commerce, mobile payments, there will be six to 12 fundamental multibillion dollar market cap Digital Payments companies five years from now or more and many are startups in garages we are just learning about today. Encouraging to know thats not changed, people are still tinkering in the garage. Security seems to be a recurrent theme here both for consumers worried about the data. We have had a number of credit breaches for citizens concerned about to the extent to which theres hackers of other countries and Companies Moving their stuff to the cloud. Just what kinds of new companies are being started here to ensure that all of us our data is safe and which methods will we be using . Is it smart to go to bio metrics or degrading the value of the things were using to encrypt . I for sure am not a Cyber Security expert. But i do believe that there are perhaps more than ever before new companies with entremendoprs being formed from stamford univerty, Harvard University and the top universities in the country combined with great professors in cyber analytics, Cyber Security, cyber keys, and whats perhaps most exciting, alumni of the secret service, alumni of the services from iraq, iran, afghanistan, homeland security, these are small, ten, 12person teams working together to build security teams, they might be Product Services aimed at messaging. They might be Security Services aimed at vertical industry such as banking. But these are new Interdisciplinary Teams perhaps thinking about security and privacy in ways that a generation or two was simply unforeseen. Thats the good news from an entrepreneurial standpoint. And good news for those of us thinking about the service men and women and encouraging note, as well, about the prospects for them. Thank you so much, jim, for your thoughts on a wide range of issues this afternoon from the forbes under 30 conference as jim breyer of Breyer Capital and excel founders. Appreciate it. My pleasure. Investors set for a wave of big Earnings Reports. We will have instant analysis of these results. Stick around. receptionist Gunderman Group. Gunderman group is growing. Getting in a groove. Growth is gratifying. Goal is to grow. Gotta get greater growth. I just talked to ups. They got expert advise, special discounts, new technologies. Like smart pick ups. Theyll only show up when you print a label and its automatic. We save time and money. Time . Money . Time and money. Awesome. Awesome awesome awesome awesome all awesome i love logistics. You know how fast you were going . About 55. Where you headed at such an appropriate speed . Across the country to enhance the nations most reliable 4g lte network. Hows it working for ya . Better than ever. Howd you do it . Added cell sites. Increased capacity. And your point is. So you can download music, games, and directions for the road when you need them. Whos this guy . Oh thats charlie. You ever put pepper spray on your burrito . I like it spicy but not like uggggh spicy. He always like this . You have no idea. At t. The nations most reliable 4g lte network. Welcome back. After hours movers and a couple moving soon enough. Dominic chu rounding them off. Alumina, a gain of 77 cents a share on sales of 481 million. Maker of genetics testing equipment is up in trading and watching two major Earnings Reports due out momentarily. Big one is apple. Wall street is eager to see if they can turn the tide and expect 1. 31 on sales of 39. 9 billion and ending the regular season up a couple of percent and then Texas Instruments, also again in focus is ibms chip move over that stock, as well. Texas instruments you can see there finishing the day at least in the regular session up by 1. 5 . Back over to you. Thank you. Well get the results of apple and t. I. Right after this break. Stay tuned. Ings in a whole new. Its in this spirit that ing u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. vo solver of the slice. Pro. Teacher of the unteachable. You lower handicaps. And raise hopes. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. pro nice drive. vo well played, business pro. Well played. Go national. Go like a pro. In a we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Welcome back. We are moments away now from apple earnings. Bring in paul meeks with lance ulanof for a quick preview. Welcome, welcome. Paul, you first. How much does this have to be a beat here . Excuse me . How much of a beat does it to be for apple here to please the street relative to what the lets call it the whisper number might be . Sure. I think the Company Needs to do at least 1. 35 to 1. 40 in eps. Wow. Just so Everybody Knows the current estimate is 1. 33. Do agree . I think it is a weird quarter for them only nine days to account for the new iphone and may not look as rosy as it could be. Depends on how much they squeeze into that short period at the end of the quarter to really boost things up. 1. 31 i meant to say. Sorry about that. Paul you were saying 1. 35 to 1. 40. What are the numbers youre homing in on . Most important thing to me is early traction and only early traction on the iphone 6 and iphone 6 plus and details of apple pay because i believe over time x the iphone and every two and a half to two years you will have new versions and apple pay is the biggest growth driver. It was the sleeper hit of the iphone announcement. I was trying it out today and it feels like apple has something here. It works. Its going to i actually think it may drive additional sales of the iphone because people are going to want to do this. I agree. I agree completely. Why is it better than that credit card . Why is it better . More secure. Come on. First of all, you have in the store show me a credit card. I memorize the credit card. It is in a secure element. You cant see it. I cant see it. I have that memorized but i think its all about convenience. You go to the starbucks in the airport. Theres a thousand people in line. These checkout people swiping and whatever. You pay. Its better for the retailers 100 . Why do you want to carry around these stupid plastic cards . Doesnt make any sense to me. I think plastic cards simple. Hold that thought now. Until somebody apple pay and all of the things apple. Earnings with josh lipton. Josh . Well, kelly, apple just reporting, lets get you the numbers. 1. 42 on 42. 1 billion. The street looking for 1. 31 on 39. 9 billion so that is a beat. On the bottom and the top. I just had the chance to speak with apple ceo tim cook who gave me his read on the report. Lets read through with his insights. Iphone shipments, 39d. 3 , up 16 year over year and i asked cook about the 6 and 6 plus. He said demand was off the charts and very excited about the initial rollout hes seeing of the new iphones in china. Ipads, shipments, down 13 year over year. Missing what the street wanted to see and asking cook about that he mentioned the new products, of course, last week the ipad air 2 and mini 3 and mentioned new partnerships and collaboration with ibm saying he was still bullish on the ipad and then mac accounts for about 12 of apples revenue. 5. 5 million units, up 21 year over year, the best history in the history of the mac and beating the street looking for. Cook telling me, the back to School Season and for the mac a blowout. Finally, with all of these new products and services, i asked cook about the Holiday Season. How does he feel positioned . He said i think it will be the best Holiday Season we have ever had. Back to you. Josh, thank you. Ross, you were holding your breath before this report. A sigh of relief now . I wasnt worried. Their numbers are in line with what i was hoping and they have phenomenal products out there. They beat every other product in the market and with ipad sales, for example, you have the new ipad out and seeing it at christmas and what i want for hanukkah personally. We should mention, as well, on the halftime, paul that jnaj seeing expect it to pop. Up about 1 and a big move for a big cap name and see if they what did you think of the quarter . Something else that the revenue guide is for 63. 5 billion. A little above the consensus expectation for the street and apple tended to strike near the high end and seems like the mix. Likely accounted for the eps, as well as the upside and going to hear how much has to do with higher amounts and how much of that has to do with the 6 plus versus the 6 and how much of apples optimism of the rollout right now of asia. Are they being bullish . In china, investors will want to get a gauge for the company. If theyre conservative, ooas w see the stockouts, they want a gauge for being conservative, maybe the holiday guide could be better than expected. How are they doing on components . Clearly able to deliver a lot of phones here in their component supply is looking good, maybe they could do upside versus the targets. Josh, you want to respond to those . Im sorry, kelly. You broke up a little bit. I couldnt hear the guest. If you have more detail, go ahead. Jon fortt was talking about the prospects across asia, the differences between what might be driving s. E. A. L. S of the iphone and then also the fact that the guidance seemed to be at the high end. Yeah. Clearly, weve talked to cook briefly about what theyre seeing in china. 6 and 6 plus rolled out last week. He told me he was excited of what he sees there. Seeing the Revenue Growth near over year by geography you will see in this quarter it was around 1 for Greater China and 30 last time and the difference is last year china was part of that initial launch, right, for the 5s and wasnt the case for this time and explains the difference of this quarter. Nicholas . Josh, did he talk about the supply chain at all . Hows that holding up under the demand . He did not talk about the supply chain specifically. He did say theyre ramping up supply at the fastest pace ever but still the backlog is there. So thats why he told me he could expect momentum here for the iphone to continue into the next quarter. If they thought problems of the supply chain, im disappointed but not surprised by the year to year drop in ipad units. But whats happening is the smartphone is cannibalizing the ipad and over time the phones better grow very fast and better expect apple pay to do well because theyre the Growth Drivers and other parts of the business will sag. Im not sure its the phone cannibalizing the phone here. Look at mac, up 21 in units year over year. 18 in revenues. Very similar to how the ipad is down 13 and 14 . So, i think the ipads reason for being as a productivity device is unclear and part of the reason apple emphasized it so much in the rollout and see how it plays out. Theres definitely i feel like saturation of the tablet market and people dont upgrade ipads or tablets as the same cycle of the phones and what apples done here is delivered on a promise. I mean, this fall is as exciting, is as product packed as they expected and seem to be strategic in the product rollouts and differences in the ipads and how they didnt upgrade the smaller ones and this is a nod to productivity in businesses. I feel like theyre going to drive some revenue, theyre going to drive some business by going deeper and harder into business and a smart move and, you know, these bigger phones are satisfying that desire that the market had for the larger phone. Apple reporting earnings per share of 1. 42. It is the second best percentage beat in the last ten quarters. Rich peterson knows theyve beaten now for nine straight quarters. Josh, not that bad track record. No, just to mention one point, kelly. I heard the saturation word there. I thought it was interesting talking to tim cook and talking about ipads and that decline. He called that argument, you will hear this, why is it under pressure and structural reasons and a theory is as your guests mentioned, saturation just because that big initial uptake. Tim cook called that saturation argument and his word, baloney saying most of the ipads hes seeing are firsttime buyers and could be other reasons, because people dont buy tablets at the same rate of smartphones and dont upgrade. Smartphones are screens to get bigger. Kelly, back to you. Baloney. I think he has a point in the sense that theres plenty of market for productivity devices but theyre not buying ipads. Can apple capture that user . Will touch i. D. , will the popularity of the feature be enough to push people over the edge . Hold that thought right there. Another major name, Texas Instruments with its quarterly results. Dom chu and the results. Hey, kelly. 2. 5 upside is what the stock is doing right now. That on the heels of an earnings and sales beat. Headline numbers, Texas Instruments with 76 Cents Per Share beating the estimate of 71 cents and sales coming in at 3. 5 billion. Beating the average analyst estimate of 3. 46 billion. Also some words on the forecast here from the company. Fourth quarter revenue in the range of 3. 13 billion to 3. 19 billion abe thats in estimates. Also q4 earnings per share expected at 64 Cents Per Share and beat the estimate. So again, an earnings and sales beat. Also the forecast for Fourth Quarter profits better than expectations and thats what you get at 2. 5 gain for Texas Instruments to the upside in the after hours. A different tone to the tech space after the market than it was before the bell today. Thank you, dom. For now, a quick break. Be right back with much more from the panel and special guests on these results from apple with shares touching 101 mark. Stay tuned. Rol . You see this right . Its 80 confidence and 64 knee brace. Thats more. Shh. I know thats more than 100 . But thats what winners give. Now bicycle kick your old 401 k into an ira. I know, i know. Listen, just get td ameritrades rollover consultants on the horn. Theyll guide you through the whole process. Its simple. Even she could do it. Whatever, janet. For all the confidence you need. Td ameritrade. You got this. Big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. Whats up for the next shift . Ah, nothing much. Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at norfolk southern. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Welcome back. Picking back up with the coverage of apples earnings results, joining us is darren churvitz and lance and the panel. Darren, your thoughts first here having had now several minutes the look through the report . Pretty exciting numbers. This is a company thats conservative with guidance in the past. Tried the move to a more accurate number but theyre looking for 13 Revenue Growth near over year in the Holiday Season quarter and that is very impressive for a company as big as they are to be accelerating Revenue Growth as much as that is accounting for. Again, probably a conservative number to boot. You know, carl icahn came out with a letter details his own firms estimates for apple for next year and i be all due respect thought they were off the deep end of 25 Revenue Growth next year and think its too aggressive and impressed with the fact to move from mid single digit Revenue Growth to getting close to the teens. Yeah. Lance . I was going to say that i feel like we have watched the company from really good to really awesome as far as performance goes and i hate it when people say what will save ap snl have you looked at the numbers . Whats very interesting to me right now is that this is after with only part of new products, new technologies, what is next quarter going to be like . Theyre going yosemite . Which brings it altogether. Continuity and yosemite bringing it together. How much money they make on apple pay. Transactions is an enormous business and theyre getting that cut. But not yet. Not yet. It will believe in the next 12 months. Have you watched twitter . Im not sure if its a huge lets say thats the kicker. Apple doesnt get the respect it deserves. Thats true. At my firm, what we do is analyze companies. What is the valuation of this company . What is revenue and Earnings Growth of this company . Find me a Better Company out there. Its ridiculous. They have the best products. So much cash they could buy like countries. All right. Well, you know what i have to do right now is spoil the parade and an anecdotal example and might be completely worthless. A friend of mine, early apple investor. Big posters of steve jobs. Loved the guy and the product. Saw the iphone 6, 6 plus, said im not impressed and selling the apple shares. Whats not to be impressed with . A phone . Cant fly . Clear the 6 plus is not exactly the best product for whatever the market is out there. Wait. I just talked to friends using it. Depends on who they have. They have thrown the androids in the trash can. We have the big hand market. The market. If you want to worry about apple, you worry about it because, yes, people with the big samsung devices are throwing them out waiting for apple the finally have a big screen device and they do. Thats a pentup demand and a pop. And now priced in. What next . Not priced in. 16 times earnings. Thats always traded thats how you worry about apple and a couple of things and one is average selling price. By my calculation the iphone in this quarter average selling price of 603. Up from 561. The quarter before. So clearly, we have got some of that margin. What were the numbers again . They dont forget, cut out the middle range on storage. You have 16 to 64, 123. That is tried to buy a phone, 547 for a new one for the right amount of memory. Apple pay i think is like an itunes play. Shores up the ecosystem. Doesnt necessarily in and of itself make a lot of money. To paul with us. Just wondering as you put it into your model, what it does in terms of target price for you, upside for this name. Well, ive always had a 120 target on the stock and i actually think given this news and from what i expect the overachievement to continue and december quarter and good guidance for next year and apple pay continues to gain traction, i think the target probably goes higher over time. How much higher are we talking, though . What is the valuation for this company . I think the stock probably trade net cash at about 15 to 20 times. Do we think do we think apple pay is a revenue generator or another one of these things that apple has to make the device better and more fun to own . We dont know the answer to that because apple isnt we dont know but we dont know what apple is getting per transaction. Thats a black box. We know theyre not getting from consumers, theyre getting something from banks and we dont know if its a flat fee, a pennies per transaction but its a great business to be in and i think the way they have done it is super smart and a kind of sex appeal standing next to somebody at the checkout counter and do this, what just aped . I want that. Listen. Everybody has iphones. Everybody has iphones. Okay . And what it does is now i have to get the 6. You have to. I want to pay for things with this phone. But the other thing that nobodys brought up here yet is what about the watch . I mean, heres another incremental revenue driver and nobody knows. Big question mark. Up though. I hear paul saying niche product. Im sorry, darren, that was you. Can you address that real quick and the huge out there item we havent discussed is this latest proposal of carl icahn saying apple should be at 200 a share and would tim cook if you launched some of the other things you should be doing. You know, we had a discussion last hour about stock buybacks, i tend to think its a little bit of financial engineering, show me the dividend, show me the money. In terms of what the risks are for the company, and by the way, i think the stock gets to 200 if they hit his estimates. I dont think they come near those estimates. I think the risk is and jon talked about this. Thats a tailwind for a couple of quarters with the higher storage, higher price points but if you were someone to worry about something with apple, i think thats something to concern me is can they maintain these level of asps in the few xhur . This is really unprecedented in the consumer electronic space. The margins, the price points they get. Theres not the degradation in pricing of almost any other consumer space. I think thats apples Business Model. The power of the brand. Charge you more than other companies wsh its the new normal and could do what apple tends to do in consumer electronic. Premium prices. Absolutely. Heres what i worry about. Software. The reason they get the margins, design is nice but the software. Are they building out the next i life suite and the next thing to make the devices work that much better, the watch that much better and everybody wants, not just a niche . Thats what investors. Home kit, health kit. Do they get there . Got to use them. Got to get the watch. Using the health care and honestly its tracking everywhere i walk and i definitely have been trying to walk. Does your wife have access to to it . Yeah. See, honey, i went somewhere today. You know . The stairs. Scary when you work on a computer. Youre like i didnt do anything today. All you did was sat. I ran twice last week because of it. Now you have the proof. We have to leave it right there. My brother is training. I run. Well take a last look at apple shares. They were trading by higher by 1 and then trading a little bit. Looks like the latest action up about 50 cents so half a percent. 100. 30. My thanks to the guests. Really appreciate it. Thanks. Appreciate it. Ibm, apple, the highs and lows when we come right back. Some come here to build something stronger. Others come to build something faster. Something safer. Something greener. Something the whole world can share. People come to boeing to do many different things. But its always about the very thing we do best. But its always about dave, im sorry to interrupt. I gotta take a sick day tomorrow. Dads dont take sick days, dads take nyquil. The nighttime, sniffling, sneezing, coughing, aching, fever, best sleep with a cold, medicine. You can bring back from a trip around the world. But you cant always bring back customer data. Because many customers dont like it when their data moves around. Can i go now . If youre going to do business globally, you need a cloud that can keep your data where it needs to be. Today, theres a new way to work and its made with ibm. Welcome back. Its been a wild after hours session. Dominic chu winding it up for us. Apple easily beating the street in terms of overall sales. 39. 3 million eye phones were shipped. It gave better than expected v revenue guidance. Also Texas Instruments beat on the top and bottom lines. Texas instruments shares up with 2. 5 . And well he saend with chipotl better than expected Third Quarter results, comp sales up 19. 8 . But the company warned its sales growth may slow down in the coming year. That as a result shares down by about 3 after hours trade. Back to you. Thank you, dom. Day one of mega earnings week in the books. Tomorrow we have yahoo mcdonalds, cocacola. Well take a look ahead when we come back. Nfidence. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts means your peace of mind. Its no wonder last year we sold over three million tires. And during the big tire event, get up to 140 in mailin rebates on four select tires. 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I think it comes down to components and even story, how much channel fill and outlook in asia and other emerging markets. Exciting thing is seeing the average sale price go up, there is a great chart that tracks gross margin and that will inflate because hes phothese pe very expensive. And sales of the watch and apple pay, and how will that do. I think that makes next year so exciting for apple. And let us not forget this is a u. S. Global economy story almost. Biggest cap name out there. Should be a dow stock which might also boost the stock. Biggest company in the world should be the dow. But is this a one time pop. Thats the big worry. Is everybody waiting for big screen phones. Thousa thousa now we have them. Everybody has to buy this phone and there are like a billion people left to buy it. Ill be here waiting. I used apple when i was a kid. And that may help the nasdaq tomorrow. We have a couple of other names reporting, though. For example yahoo and some Consumer Product names. I think its the most Interesting Company in the stock market right now. Really, where are they going. Ali baba is public. They have all these franchises and properties that make no sense to me. Articulate a strategy for me. So i dont expect much from yahoo other than they got a lot of cash. Are we expecting to hear some sort of strategy . Thats right. Weve heard that they will refresh their strategy. They need to talk about cost cutting and how they will change their acquisition strategy. She should still be stirring the ship and not let activists came in and take over. Say trust me, ill do something smart with it. Would argue yahoo has uninteresting products, but theyre a terribly Interesting Company. And we havent talked that much about Texas Instruments. What is the message from today broadly speaking . Everything electronic pretty much using analog chips. Texas instruments is big in that. A surprise from them is kind of meaningful especially since ibm gave a bearish take on september. It tells you the whole world is sliding down hill. And what will you be watching tomorrow . I love earnings season. And what im looking for is strong earnings in the Third Quarter. What im worried about is the weakness from europe and some of the foreign things causing weakness or bad guidance in the Fourth Quarter. But i think we will he saend thr with solid earnings. So looking for more of the same. And well leave it right there. Thank you, everybody. Its been a lot of fun. And fast money is coming up with melissa lee. What is on tap . Were talking earnings and of course we with are the ceo of sun edison. That stock was up 8 along with tara form. So the ceo on fast. Great stuff. Fast money starts right now. Im melissa lee. Tim seymour, dan nathan. Lots of breaking news. Apples Conference Call is starting right now. Shares moving slightly higher. Chipotle also kicking off its call. That stock in the red after showers. Hoping guidance comes in below estimates. We have the latest from that call coming up. And Texas Instruments, another tech name just out with earnings. That stock moving to the up side

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