Of course, weve got Apple Earnings and the markets. Were talking about donald trump. Good morning. Welcome to Worldwide Exchange on cnbc. Im sara eisen. And im wilfred frost. A very busy morning on the news front. Lets get straight to it. While you were sleeping, heres whats happened in asian trade. China stocks closing lower but off their worst levels of the session. The shanghai comp down by more than 4 at one point. The countrys main index have now lost 2 trillion so far this year. New data today sparking more economic worries. Chinas industrial profits falling 4. 7 in december. Most of the other major asian markets shrugged off chinas performance today. The hang seng and nikkei both closing high. Quickly on the shanghai market, its now in double bear market territory. A bear within a bear, i read this morning. What does that mean . Its down 20 since its december high but also down off its 52week high in june, 47 . Wow, a bear in a bear. Not in a bear in the u. S. Importantly, we rallied yesterday, even though china fell 6 . That was a big deal. Lets check on equity futures. Theyre under some pressure. You guessed it, oil down, futures lower. They have worsened over the last hour or so. Dow futures indicated to open now almost 110 points lower. S p futures down 15. Nasdaq futures down 42. This after dow managed to rally nearly 2 yesterday. Had its best day of the year, in fact, on a surge in oil prices. Thats reversing a bit. Also better earnings, interpreted better, that is, from 3m, sprint, coach. We did see that rally yesterday. Well see if this futures move hangs on. In part, were following europe, which did open it opened down half a percent then rallied up half a percent. There is crude for you down 3. 6 for wti. Just holding above 30. Brent just shy of 40. A bit of volatility this morning. Pay attention at 10 30 a. M. Eastern. Thats when the latest Oil Inventory data will be released. Late yesterday, oil changed course, giving back its gains after the American Petroleum institute showed a build of 11. 4 Million Barrels of crude in the past week. And just to put a number on the u. S. Stock market, down 7 . So not a bear in a bear. No, absolutely not. China down 22 for the year. The big market focus today will of course be the Federal Reserve. Synchronize your watches. Heres the countdown. Were now less than nine hours away from the big policy announcement. Remember, this is not a press conference. This is a decision on rates accompanied by a statement. The fomc widely expected to keep rates unchanged, but the big question here is, will that statement offer any hints on future hikes . Will it acknowledge the recent market turmoil . Heres what vanguards global head of fixed income predicted here on cnbc yesterday. We expect them to dial back some of the rhetoric in terms of doing three or four rate hikes this year and continuing on that pace for next year. The market and Economic Conditions are just not supportive of that type of aggressive move over the course of the next year or so. Now, as i mentioned, 2 00 p. M. Eastern time, be here on cnbc. Fed chair janet yellen will not be holding a press conference after the meeting, but of course investors will be parsing every single word in that statement. I think the big question is what does the fed, wilfred, say in the statement . How do they telegraph theyre watching some of the pockets of weakness in the economy, notably in industrials and manufacturing, even some sluggishness in retail sales and consumption, while at the same time inspiring confidence and telling the market were still on this tightening path but we see whats happening with Financial Market conditions and with weakness in the economy. Absolutely right. Tough tight rope to walk for janet yellen in terms of phrasing this statement. Shes got to instill confidence that the domestic situation is good but not suggest shes not even considering whats happening around the rest of the world. I would say she also has to quiet the critics a little bit or just be aware of the fact you have major investors saying that the fed needs to be easing, not tightening. I think thats going to be a bigger theme, pushing back on the critics. I think she will maintain quite a serious level of hawkishness and suggest we are still on this rate hiking path. But shell focus her attention on saying that the u. S. Economy is ready for that. These international situations, while shes aware of them, while shes aware of market volatility, shell focus on the market. Jobs, confidence held up. Consumer confidence, which is a big deal, considering the market turmoil. The only other factor i would point out, which is important and really ties in how important the fed is to the rest of the world and corporate america, the strong dollar is becoming a humongous headache. It has stopped strengthening, but often the strong dollar has a lag with corporate america. Even Companies Like apple, which has seen such strength fundamentally iphone sales and product sales, has complained about, quote, extreme conditions, referring mostly to the strength of the dollar against emerging market currencies. Lets get to apple. Of course, the big earnings story late yesterday. Earnings beat the street, but revenues fell slightly short. The real issue for investors, the company sold fewer iphones than expected, its slowest ever growth in shipments. Apple now forecasts Current Quarter revenues below wall street estimates. Its gross margin and operating expense guidance is also light of consensus. The big effects of economic softness in the critical Chinese Market. Heres ceo tim cook on the Conference Call. Frankly, if i were to shut off my web and shut off the tv and just look at how many customers are coming in our stores regardless of whether theyre buying, how many people are coming online, and in addition looking at our sales trends, i wouldnt know there was any economic issue at all in china. But overall, cook remains upbeat. Our financial position has never been stronger. We have the mother of all Balance Sheets with almost 216 billion in cash, which translates to nearly 39 per diluted share of apple stock. We continue to invest confidently in our future and also continue to return capital to our shareholders at a rapid pace. He basically confirmed the march quarter coming up will see a decline, an outright decline in iphone sales. I thought the stock price would react more negatively. It was already baked in. Down 2. 8 in afterhours trade. I thought the confirmation would see a bigger fall. A pretty resilient performance given that news, in my eyes. It tells you theres so much expectation already baked into this stock. How many articles did we read over the weekend, including from the new york times, not a financial paper, about how iphone growth is slowing. This has been telegraphed all over the place. It is interesting to look at the headlines after the report because its a lot of doom and gloom. The ft put up the headline yesterday. The iphone growth era, the apple growth era, has come to an end. So clearly acknowledging that the market was right to be skeptical on iphone growth. The question is what do you do with the stock from here . And joining us now on the Cnbc Newsline to break down the quarter for apple is the chief Investment Officer at tigress financial partners. What do you do with the stock, considering apple pretty much came out and confirmed what the market was expecting . First, i always say you buy on bad news and sell on good news. Heres an opportunity to buy the stock. Its down 30 off of its alltime high. The biggest key point is they have way too much cash. As you said, 39 a share in cash or 216 billion. They dont need that much cash. That cash is diluting their return on capital. So they need to return at least threequarters of that, over 150 billion. By stock or by dividend . Both. I would do both. I would say they should lean more toward a stock buyback if the stock is down. The other big issue about buybacks is investors complain companies are buying back their stock at the top. Now theyre not. Theyre buying back their stock at a significant low. So i think they should return over 150 billion to shareholders, right their balance sheet. The other thing is you buy Great Companies when they stub their toe, when things are bad because things again will turn. The one key bright spot is the apple watch did perform well. I said in the winter that this would be one of the key musthave gifts in the holiday season. It did sell well, and the sale of the apple watch will foreshadow more sales of the apple phone because the apple watch only works with the apple phone. So it also galvanizes their customer base. Ivan, were you reassured or concerned about comments about china . I was very reassured that he was very optimistic that the biggest fear in the slowdown was going to come from china, and that didnt happen. They are acknowledging its starting to hurt, but still Greater China sales grew 14 in the quarter. Long term, like Howard Schultz of starbucks p hes optimistic. The question i have is on services. Thought it was interesting apple pulled that out. Tim cook even in his Opening Statement in the Conference Call said that he wanted to highlight that we are one of the Largest Service businesses in the world. Clearly they dont think investors are rewarding them or valuing them as a services company. Do you need to be as an investor at this point . Well, yes, because they say the average selling price of a phone did increase from 675 to 691. Even though now 691 may be the nonsubsidized Purchase Price of the phone. However, the total cast of ownership for an iphone during the twoyear contract is closer to 2700, which includes the data and Voice Service and purchases of apps and content on itunes. Apple participates in a major portion of that revenue. So its not the 691 sale of the phone. Its the 2700 over the life of the contract, the ownership of the phone. So youre a buyer. Absolutely. All right. And wall street, by the way thank you, ivan. Good to talk to you. Wall street, i would say, has maintained their bullish enthusiasm for this stock. A lot of people say analysts are behind. Theyre going to need to capitulate and bring down their targets. The other question, one that ivan is sticking with, already the stock catch up with the wall street analysts that are so bullish. Before this earnings report, the median price target, 140. As you rightly point out, still a lot of room for those two to come together. Depends which way it happens. Other stocks to watch today, at ts Fourth Quarter revenue grew fewer than expected. Adjusted earnings matching analyst forecasts, shares falling about 2 in after hours. Vmware expects a weak 2016, forecasting profit and ref knew below analyst estimates. Suffering to the tune of about 5 in afterhours trade. Unit United Continental says theyre hoping to engage on capital structure. United is down more than 30 in the past year amid sinking revenue and its new ceo suffering a heart attack in october. The shares up half a percent today. Some other movers for you. Carnage in the commodity market and the companies affected. Continental resources slashing its Capital Budget by twothirds this year as it tries to preserve cash amid plunging oil prices. Continental says it wont become profitable until oil prices can get back to 37 a barrel. U. S. Steel swinging to a Fourth Quarter loss as revenue falls 37 . That was more than expected. The company saying its facing significant head winds and uncertainty this year. U. S. Steel and other domestic rivals have been hurt by that global glut in supply competition from less expensive imports. Shares falling 8 in the after hours after a strong rally on the commodity bounceback yesterday. And capital ones Fourth Quarter profits fell 8 , hurt by higher marketing costs and operating costs. Earnings missing forecasts, while revenue did beat estimates. As one of the nations largest credit card issuers, its often seen as a gauge of consumer sentiment. Shares rising 2 in after hours. Mixed read on commuter sentiment. Also still to come here on Worldwide Exchange, your trade of the day. Want to play the fed meeting . A list of companies and etfs that historically performed the best when the central bank leaves rates unchanged. Well bring you that after the break. As we go to break, check out european stocks in early action overseas. Stay tuned with us. Youre watching cnbc, first in business worldwide. You get use to pet odors in your car. You think it smells fine, but your passengers smell this. {ding} eliminate odors youve gone nose blind too, for up to 30 days with the febreze car vent clip. Wow, it smells good in here. So you and your passengers can breathe happy. May not always be clear. But at t. Rowe price, we can help guide your retirement savings. So wherever your Retirement Journey takes you, we can help you reach your goals. Call us or your advisor t. Rowe price. Invest with confidence. Welcome back to Worldwide Exchange. Lets get you up to speed with market action. Oil prices once again driving the movements were seeing. We did see a little bit of a rally this morning. Not enough to put it into positive territory, but we werent down as much as we are today. That has tended to lead equity markets. Europe as well, which opened low, rallied a bit, but now is down again. Were seeing similar movements in the u. S. Futures, which are down. But not too pronounced. To the tune of about 1 . The dow called to open lower by around about 60 points. Sara . All about oil. Or could it be all about the fed today with the fed coming out . Many market watchers are expecting todays fomc statement to be dovish, in other words not so aggressive when it comes to tightening policy and lifting Interest Rates in response to the Global Market volatility. So historically, what typically happens to the markets during those easy money days . Well, our data team crunched the numbers. Heres what they found. When Interest Rates were left unchanged as expected today, the xhb, which is the Home Builders etf, energy, and financials were the Top Performing etfs among others. As for specific stocks, first solar, netflix, and transocean saw their shares rise. Thats what the data and the statistics show. For more, go to cnbc. Com and check out cnbc pro. Though, not to immediately criticize that particular statistic, today were not really watching the decision. Were watching the statement. So that makes it slightly different. Nonetheless, some options there for you to trade today. Lets also have a look at whats happened in european trade. Nancy hulgrave joins us with an update from london. I wish i could bring you better news, but the fact is selling is picking up momentum here with just over two hours into the european trading session. Were right around a session low now with the main stoxx off 0. 8 . Were starting to sound like a broken record. As the price of oil goes, so goes the direction of equities here in europe. A similar story on wall street. No surprise were seeing oil and gas off about 2. 2 , underperforming all the other sectors at the moment. Banks here are seeing some weakness, off 1. 6 . We saw a report. Rbs taking quite a significant hit tied to mortgagebacked securities in the u. S. So that moving shares sharply lower, off 3. 6 . Back to you. Nancy, thank you very much. When we come back, the great debate about debatings. Were less than a week away from the Iowa Caucuses. If you think youve already seen it all in this campaign, think again. How donald trump is looking to change the game. That story coming up on Worldwide Exchange here on cnbc. In new york state, we believe tomorrow starts today. All across the state the economy is growing, with creative new business incentives, the lowest taxes in decades, and university partnerships, attracting the talent and companies of tomorrow. Like in utica, where a new kind of workforce is being trained. And in albany, the nanotechnology capital of the world. Let us help grow your companys tomorrow, today at business. Ny. Gov to help pay for her kids ice time. Before earning 1 cash back everywhere, every time. And 2 back at the grocery store. Even before she got 3 back on gas, all with no hoops to jump through. Katie used her bankamericard cash rewards credit card to stay warm and toasty during the heat of competition. Thats the comfort of rewarding connections. Apply online or at a bank of america near you. Welcome back to Worldwide Exchange. News out of the world of business today. A near monthlong occupation of federal land in a small oregon town comes to a violent end. One person is dead and several others are in custody after federal officials arrested the antigovernment protesters on tuesday. Officials say shots were fired when the fbi and Oregon State Police began an enforcement action. Among those arrested, ammon and ryan bundy, the brothers who led the protest. And breaking news from the president ial campaign trail this morning. Donald trump says hes skipping tomorrows Republican Debate just days before the Iowa Caucuses. Now ted cruz is challenging him to a oneonone showdown. Tracie potts has all the latest live from washington. Love this. Are they going to go mano mano a mano . Reporter it would be interesting to see. Keep in mind ted cruz is a master debater, literally from college. Thats an area where he feels very comfortable. But donald trump feels comfortable with the numbers. Some key endorsements, leading five of six of the latest polls in iowa, thinking now perhaps he can afford to skip that debate. Fresh off two key endorsements, donald trump now says hes skipping thursdays debate because he thinks the fox moderator is unfair. Fox news, right. Wonderful, wonderful place, fox news. Its wonderful. Reporter fox calls trumps, quote, terrorizations, of anchor megyn kelly near unprecedented. Ted cruz is challenging trump to a one on one. I want you to think how you would react if you were interviewing someone for a job and they said, you know what, im not willing to show up to the interview. By skipping the debate, trump is being a rebel, a renegade. Its the year of the outsider. He may be okay. But some iowans may wonder, why are you quitting . Reporter the drts are also fighting for an iowa win. Hillary clintons touting years of experience in a new ad. Ive been on the front lines of change and progress since i was your age. Reporter Bernie Sanders tells voters turnout will make the difference. If we have a large voter turnout, we will win and will win big. Reporter hes meeting privately with president obama at the white house today. Now, the white house tells us that was a meeting they first discussed back in december. Its private. Theres no agenda. It will be interesting to see what the post is coming out of that, what they actually do discuss. Tracie, lets get back to donald trump. Theres a sense here that hes completely controlling the media agenda. Its all we kind of tend to focus on. Do you think this is an idea thats going to help him or hinder him, by pulling out of the debate . Reporter theres an argument for both sides. In terms of controlling the agenda, absolutely he wants to control the agenda. Hes the leading candidate. His numbers are growing in areas like iowa, where ted cruz had a lead. Donald trump is number one in most of the polls there. Hes controlling the agenda, in part, because hes the top candidate. We have to focus on what hes doing and what hes not doing in this case. In terms of whether or not this is going to hurt him, you know, its possible that it can. Iowa voters are very keenly interested in what their candidates have to say. As you heard that analyst say, if they dont hear him, they may start to question why doesnt he want to talk to us . Then again, who knows what hell be doing if hes not on the fox news debate. Will he be on another network . Will he be doing an interview . The question is, is this too consequential of a moment for him to be backing out. Well leave it there. Thank you, tracie. We asked you on twitter today, it is our twitter question of the day here on cnbc. Trump decides to bail out of the final debate before the Iowa Caucuses. Will it help or hurt him . Vote. Well read your responses. Of course, our poll yesterday on apple got tremendous response. Well bring it to you later. Vote on trump, we want to hear from you. When we come back this morning, top stories, including reaction from wall street on apple results. And the inside line on facebook when Worldwide Exchange comes straight back. Happening now, apple shares under pressure. The tech giant selling fewer iphones than expected and warning it sees weakness in china. Up next, facebook. Will investors like the social media giants latest results . Plus, the 12 million tweet. New proof of the power of oprah winfrey. Its wednesday, january 27th, 2016, and youre watching Worldwide Exchange on cnbc. Good morning to you. A very warm welcome to Worldwide Exchange here on cnbc. Im wilfred frost. And im sara eisen. Lets get straight to a busy day for both earnings and economic reports. The fed wraps up its twoday policy meeting with a decision at 2 00 p. M. Eastern. Theres no scheduled News Conference with fed chair janet yellen this time. December new home sales come out at 10 00 a. M. , which are expected to rise. Another sign the Housing Market recovery is intact despite the stock market turmoil. Now, in terms of earnings to focus on today, boeing and United Technologies are among the Companies Reporting before the open. After the close, we hear from ebay, facebook, and qualcomm. And youve got to be watching oil prices. Where they go, so goes the stock market these days. Theyve taken a turn lower overnight. Wti down 3. 5 . Brent crude international down a little les than that, 2. 3 . Hovering just above the 31 a barrel. Pay attention at 10 30 a. M. Eastern time. Thats when the latest Oil Inventories data will be released. Weve seen supply in the u. S. , inventori inventories, remain elevated. Thats weighed on prices. Late yesterday, oil actually changed course, giving back its gains from the session after the bell when the American Petroleum institute showed a build of 11. 4 Million Barrels of crude in the past week, more than expected, more supply, more inventories, more stocks, not what the bulls need for crude oil or the stock market apparently right now. Exactly right. Lets see what these moves in the oil market have done for equity markets so far today. First up, a look at u. S. Futures. Theyre in the red. Not too significantly, given the size of the move we just saw in oil prices. The dow called to open by 90 points lower. The s p, 12 points down. The nasdaq by about 37 points. Lets have a look at europe. Quite wild swings during trade today. We opened down half a percent. We rallied to be up half a percent. All of that in the first 90 minutes of trade. Were now down half a percent again. It has really been tracking what oil has done intraday. Lets have a look at asia. We saw shanghai down, but only by half a percent. Earlier, it was down as much as 4 . It finished in the red just shy of 1 . Japan having a strong session, up 2. 7 . Really playing catch up with a strong u. S. Session yesterday because of expectation, specific expectations regarding the bank of japan meeting, which starts for two days thursday and friday. So a lot of moving parts. Central banks with the Federal Reserve statement out. And the Japanese Central bank and the European Central bank sounding like theyre ready potentially to ease again and come in to help investors. You have oil and the persistent question of when is this correlation with stocks going to break . And you have earnings. People say in this kind of market environment that oil doesnt matter, but the dows big gains yesterday were fueled by better reports from 3m, from proctor gamble. While they werent blowout reports, these stocks were rewarded for giving investors some sort of good news. They were, and i think thats a fair point. Its also fair to say this week were heavy with Big Companies earnings. If this was a week where they fight back and be the lead factor, it would be this week. Also, yesterday industrial stocks tended to perform pretty closely with oil. Id say an outside factor was the banks, having been hit hard the day before they were bouncing back. That was not really earnings related, not really fundamental related. It was just a bounceback factor. But i agree. I think earnings this week are slightly more in focus than typical. Lets wait until 2 00 p. M. I dont think thatll be the case when we get that statement. Tomorrow we have microsoft and amazon. The overnight mover, of course, the big one is apple, which could weigh on the markets as well. Earnings beating the street on the bottom line. Revenues fell a bit short. The real drag on the stock, the company sold fewer iphones than expected. It was the slowest ever growth in shipments. Ipad sales continue to decline as well. Mac shipments were also below consensus. Apple forecasting Current Quarter, january through march, revenues below wall street estimates. The gross margin, that key profit metric, also came in a little light of consensus as well as oerptding expenses. The big effects of the economic softness in the critical Chinese Market finally being felt by apple. Though, it did see sales rise there 14 . Heres what ceo tim cook said on the Conference Call. Notwithstanding these record results, we began to see some signs of economic softness in Greater China earlier this month, most notably in hong kong. Zb but on the longterm, tim cook does remain upbeat. Listen. Our financial position has never been stronger. We have the mother of all Balance Sheets with almost 216 billion in cash. We continue to invest confidently in our future, and we also continue to return capital to our shareholders at a rapid pace. Looki ining at apple shares morning, theyre moving lower. Down a little less than 3 . But they are moving, wilfred. Some disappointment, i guess, on the forecast. Although, wall street did anticipate that we were going to see a yearonyear decline. That is, an actual decline from last years growth in terms of iphones. And tim cook said to josh lipton, who did talk to him during the release here, that it was the toughest comps for them. In other words, it was so strong last year, it would be hard to beat this year. Exactly. I have to say i think 2. 8 decline in after hours is relatively resilient given that tim cook confirmed for the Current Quarter that we will see an absolute decline in iphone sales. I think thats quite a big moment to cross over. Were not seeing too big a fall. As you say, much discussed in the leadup. I want to point out this ipad. A few years ago, it was such a wow product. We thought this is going to transform things. Now pretty sharp declines. I wonder why. You look at this. Look at the size difference. As the phone grows bigger. Although, they are trying to get to the design market with the new ipad pro. A lot of people were looking for that to help. They talked bullishly about the impact of that. Maybe itll show up in later quarte quarters. But apple has already declined from the recent high. So how much is baked in . How do you value such an enormous company, which is still extremely profitable . 18 billion in profit. More than 200 billion in cash, though they cant really access it. 100 for a single stock of which roughly 30 is cash. We asked yesterday if it was a cheap stock. 60 of you said yes. Thanks for the votes. We got about 1500 voters on twitter in our poll. The overwhelming majority i guess not overwhelming, but a majority said the stock was cheap. So watch apple today. Absolutely right. Other stocks to watch today, st micro is cutting about 1500 jobs as they quit the settop box business. It will result in a savings of 170 million. The setsome box unit is part of a divisional products unit which has been struggling for years. Ericssons Fourth Quarter operating profit beat analyst predictions. Sales in china have recovered while business in north america remains stable. Total revenue fell short of expectations, down 5 . Novartis is replacing the head of its Eye Care Division after missing Fourth Quarter earnings forecast. The company says profits and sales will likely stagnate this year as it faces 3 billion in patent expirations, including for its blockbuster cancer drug. Its down 3. 3 . As we get you ready for the trading day ahead, facebook is on todays earnings watch list. Analysts appear to be clicking the like button, though the stock has sold off so far. Landon dowdy joins us with more. Facebook reports Fourth Quarter results after the close today with analysts expecting another Strong Quarter of growth driven by mobile advertising and instagram. Wall street expects the social media giant to post earnings of 68 Cents Per Share on revenue of 5. 36 billion. Ad revenue is still the sweet spot. However, User Engagement will need to stay high to prove its worth the investment to marketers. While mobile ads have been key, instagram is expected to be the story of the year. Facebook acquired the app in 2012 is and is now starting to see it monetize the business in its first full quarter of advertising. Faust bo facebook shares are down 3 over the past six months. The stock is still outpacing the s p 500, which is down 8 over that same period. Guys, back over to you. A lot of the big winners have sold off this year. Wondering about those other growth levers they have to pull. A lot of people think instagram is the story. Video ads. Are we ever going to see results from oculus . Is it too soon . I think what you said is exactly right. The analysts im talking to say that they expect video to really move the needle more meaningfully in 2016, and look for whatsapp, instagram, oculus to provide more longterm growth. Analysts also saying Virtual Reality is expected to be huge but not likely relevant to the stock in the next 12 to 18 months or so. Okay. Great stuff, landon. Thank you very much for that. Google steps up its efforts on drones, filing a patent for a drone delivery reseceptaclrecep. It would take a package to a safe place, such as a garage for pickup. Google has been working on drones since 2012 and has said it could start Package Delivery next year. Did you see this, as a completely separate story, but its piqued my interest. Volvo announced plans so you could have deliveries to your car. If you have electronic tags for the keys, the Delivery Company can just deliver it to your car. If youre stuck in traffic . Just when its parked. They have a swipe that would allow you to put it in the boot of the car and leave it there. So you dont have to have someone at home to acceccept th delivery. Via drones . No, no. I dont think drone delivery is going to work. It is interesting to watch. We have other trending stories for you today. Got to start with oprah. Oprah winfrey making more than 12 million from just one tweet yesterday. She posted a video of herself saying shed lost 26 pounds on a Weight Watchers while still eating bread every day. Amazing. 26 pounds . Thats huge. Look what happened. Shares rose more than 20 . Oprah owns more than 6. 4 million shares, which is 10 of the companys stock. Remember when she said she became an investor and spokesperson, the shares went up more than 100 . Now all she has to say is that its working and shes losing weight. Theres the tweet that led to the Wealth Creation of Weight Watchers. Eat bread, lose weight. What was it she said originally . Lets do this together. Whatever she says. 26 pounds sounds like an extraordinary amount. Be careful, oprah. Does anyone else have that power . Maybe donald. Donald could get involved as well. I dont know. Lets have another look at another trending story. Apple is working to make subscription content available through its news app. The move would give publishers with payrolls a new way to control who sees their articles from a growing crowd of online news apps. This is pretty interesting. Weve been talking about apple and facebook earnings. Its another sort of threat to twitter really. If you can get subscription content rather than just instant short quotes, its another rival. Its not clear how this business will work for apple, whether theyre going to collect the fee or how they manage to do that, but any kind of news aggregator, especially when you have to constantly log in on these pay walls. I mean, i have 20 different passwords. Who can remember . The password tends to be i love wilf. As of the new year. Stop hacking my twitter account. New study says young adults who spend a lot of time on social media during the day are more likely to suffer sleep disturbances. Thats according to the university of Pittsburgh School of medicine, which sampled people ages 19 through 32. It showed that nearly 30 had high levels of slope disturbance. On average, participants were on social media for 61 minutes per day. Correlation . I dont know. I have to say, i think all of us could probably do with not checking instagram and twitter quite as much, but it never disturbs my sleep. Nothing gets in the way of that. What, people wake up and check instagram . No, but if you read this, its interesting. They go on in the study to explain why. The idea is well, one of the ideas is sometimes when you post emotional sweets or facebook conversations, you know, it gets you all riled up and worked up before you have to go to bed, and it keeps you up. Yeah, im not so sure. Anyway, there we go. Thats trending today. Whats coming up after the break . Our mustreads. The top opeds. We have some good ones, including how the iranian president s diplomatic tour of europe could cause major problems. Stay with us on Worldwide Exchange. Whole communities are living on mars and solar satellites provide earth with unlimited clean power. In less than a century, boeing took the world from seaplanes to space planes, across the universe and beyond. And if you thought that was amazing, you just wait. Now to todays mustreads. Heres whats catching our attention. And heres what wall street will be talking about today. In the wall street journal, the Editorial Board writing hope for chinese stocks as we all wonder whats happening with the Chinese Market. Is it good . Is it bad . Is it scary . The waultd journal writes xi jinping is embracing structural reform, suggesting the communist Party General secretary is willing to endorse shortterm pain to give the economy a more market oriented foundation. The editorial arguing actually in favor of what china is doing. Saying that the moves are good. It means theyre letting the markets take control and not trying to intervene as much, perhaps, as they have. Its not going to be a smooth transition, but the supply side economics, increasingly were hearing about this theory being adopted by xi jinping and the Chinese Communist party. Also, they called out some new leadership members, saying they have good track records when it comes to stimulating the economy. Im slightly critical of some of the points in the article, because id say once xi jinping took over, the first couple years they were trying to move to a more market oriented economy. The last 12 months, theyve been doing the opposite. But as the economy has slowed, they have to figure it out. Its going to be a delicate dance. And its going to be painful and tough to communicate, as theyre finding. Anyway, well have to see. Certainly worth a read. My pick comes from the financial times. Its titled iran poses an economic challenge to saudi arabia. The author writes, the enthusiasm with which the political and business elites of italy and france have greeted the visit of president rouhani has been unstinting. Hasnt got much coverage here. Hes been traveling around europe, where there have been strong ties in the past. Lots of deals happening. Theyve made a big investment with boeing. Also with a big pipeline manufacturer in italy. If we look at russia with just how much sanctions have hit them to the downside, perhaps thats an indication of how much sanction lifting can be a boost on the upside. Thats not going to be an outright war with saudi arabia, but its going to cause a lot of grief if iran is growing strongly. A lot of pentup growth, perhaps. Some of these countries, like italy and some of these european economies, need the help. Will that interfare wiere with geopoliti geopolitics . We look at this relationship and what the consequences and repercussions are going to be. Thats what were experiencing all year long. A lot of opportunity to invest in iran. Were approaching the top of the hour. That means that joe, becky, and andrew are getting ready for squawk box. Andrew joining us now from new york. Im sorry we didnt pick one of your articles for the oped this morning. You know, i didnt write an article this morning. So youre in okay shape. You can let us off. Thats very kind of you. Andrew, lots of things were watching today. Of course, the fed meeting included. Oil again seems to be the lead factor for futures and European Equity markets too. Oil is the factor, but i would say arguably, just because i just got off the phone before the show started with a Hedge Fund Manager who is trying to grapple with apple, as youve been talking about all morning. I think youre right. Theres three issues. Theres going to be crude today. Theres going to be the fed. And theres going to be apple. The question is going into the fed meeting in an odd way, what does apple do . Im not sure at this point. To me this is not blackberry. Its almost being priced as if its going to zero. I think thats a very sort of weird situation. Thats the back and forth. The other sort of very interesting trade i know a couple Hedge Fund Managers yesterday talking about how they think that the fed is going to either not ease but give us a little bit of room here. Youre going to see a pop in the market. They think theyre going to try to get out on that because and weve seen this movie before. With an expectation that come tomorrow or the day after, the market tanks once people realize that bad news is bad news, if, in fact, thats what we get. A couple of different philosophies floating around wall street. Love it. Making calls, reporting on the news before 6 00 a. M. Andrew ross sorkin, very valuable. Of course, that link between apple and the fed is the rising dollar. What tim cook opened the call with,. Still to come here on Worldwide Exchange, dan dicker, author of shale boom, shale bust is here to provide some insight. Stay tuned. You dont want to miss that. Worldwide exchange is back in a couple minutes. Welcome back. Oil prices down again this morning. Our next guest says it could be several months until we see a bottom. Dan dicker is a senior contributor at thestreet. Com. Good morning to you. Just been flicking through some of your notes. Words like foolish, silly. Thats what youre applying to the oil prices falls. Has it gone too far . It has, but it doesnt mean that it cant go farther. The parallel i give to what oil is doing now is actually 2008 when oil went to 145 on the upside, which was equally ridiculous from a fundamental point of view. So were really in a parabolic kind of down move here, in much the same way we had a parabolic up move in 2008. Its not really helping where we get this weekly supply data and constantly have the market surprised. Why is that still happening, and how much of a problem is it . Its a huge problem. What has surprised me and most of the analysts has been in the lack of sort of in the flexibility of u. S. Oil producers to be able to make adjustments to what has been a very low oil price for a very long time and continue to produce through what has been very financially not good conditions for many of these producers. And they continue to build out. We saw results today, some estimates from noble, for example, continental, hesse. Theyre slashing their budgets. But in fact retaining for the most part their production targets for this year, which has very much surprised everybody. Does slashing budgets protect them, or are we going to see Big Companies suffer . I think we have to, in fact. Thats the only way that this oil market does get rebalanced in terms of supply and demand. And thats for a number of companies. I dont want to name names because you never know whos going to be the one to go bust, but we do need to see quite a lot of the players here in the United States cut production by going out of business. Dan, thanks so much for joining us. Im afraid were tight on time. Dan dicker joining us this morning. Heard the same thing, by the way, from ed morse of citi. That does it for Worldwide Exchange. We asked you today, will donald trump pulling out of the fox debate right before the Iowa Caucuses help or hurt him . A majority of you say it will actually hurt him. We have 54 saying hurt. Keep the votes coming. Keep them coming. Thats it for todays show on Worldwide Exchange. Squawk box is coming up next. You cant predict the market. But through good times and bad. At t. Rowe price. Weve helped our investors stay confident for over 75 years. Call us or your advisor. T. Rowe price. Invest with confidence. Try align for a nonstop,ive sweettreatgoodness holdontoyourtiara, kindofday. Live 24 7 with 24 7 digestive support. Try align, the undisputed 1 ge recommended probiotic. Thats why i switched from uverse to xfinity. Now i can download my dvr recordings and take them anywhere. Ready or not, here i come whispers now hideandseek time can also be catchuponmyshows time. Here i come cant find you anywhere dont settle for uverse. X1 from xfinity will change the way you experience tv. Good morning. Apple, the mother of all Balance Sheets. Profits beat expectations. Iphone sales missed the mark. The stock drifting lower, unable to give that stock a bump. The markets are on fed watch, but dont expect a move on rates. Its all about the message we hear from janet yellen and company. And the donald bolts the debate. The gop front runner drops out of thursdays cage match while ted cruz is issuing a challenge to mr. Trump with five days until the Iowa Caucuses. Its wednesday, january 27th. So the caucuses are on the 32nd. And squawk box begins right now. Live from new york, where business never sleeps, this is squawk box. Good morning, everyone. Welcome to squawk box here on cnbc. Im becky quick along with joe kernen and andrew ross sorkin. The outbreak of the zika virus now causing travel warnings. United Airlines Says it was allowing customers with reserve tickets for travel to zikaimpacted regions to postpone their trips or obtain a refund. We will have more on this a little later in the show. In the meantime, it is another big day ahead for the markets. Were counting down to the feds decision at 2 00 p. M. Eastern time. While the fed is widely expected to leave rates unchanged, the markets will look to any clues for possible future moves in the statement. And on the earnings front, boeing and