Im wilfred frost. A ton of news this morning. Earnings reports. Market movers. Political power plays and dont forget the fed decision this afternoon. Weve got it all covered for. If you went to bed early last night, donald trump declared himself the presumptive gop nominee. Listen. I use the analogy of the boxer, you know, when the boxer knocks out the other boxer you dont have to wait around for a decision. So that is what it is. That is what happened tonight. And that is what happened last week in new york and thats really what happened throughout. On the democratic side, Hillary Clinton beating Bernie Sanders in pennsylvania, maryland and connecticut. Sanders did win rhode island. He did give a speech yesterday and said he is sticking in and. Doing that to maintain the dialogue going forward. That coming up. The big market story, apple shares down sharply right now. Earnings and revenues falling short. The tech giant posting its first year over year Quarterly Sales drop in 13 years. Iphone sales declining the First Time Ever. Apple ceo tim cook says the company is in the early innings and there is great reason for optimism. China was a rough spot dropping by more than a quarter. But cook says he feels good about the company. The company did announce a 10 Dividend Increase abut that wasnt enough to calm investors. Shares down 7 in pre market. A lot of reading and research to be done on this one. I went back and listened to a audience recast of the Conference Call last night. And it was asked we know it is a maturing smart phone market in the united states. How do you think of yourself . As the Growth Company . Or as the Mature Technology company . Tim cook says we know it is not a growing market but we remain optimist optimistic. He gave three reasons. They all had to do with the Growth Outlook for iphone. He aid the upgrade cycle looks favorable. Number two, he likes the favorables of the switchovers. From android. Which he specifically called out. Switching from Android Google phones to apple. And in places like india they did see double digit percentage growth. Even though china was a disappoint he said still looks good even though a lot was just the currency move. That was the line. Will investors believe him . Well see. Absolutely right. Two of the negatives in terms of the i flip side on china. It was stable. He said a year ago you had wind at your back. The wind is not blowing anymore in china. And the margins. The other side of things. In the longterm weve seen this happen to samsung. The sales of the top end decline relative to the lower end phones. The demand is lower price point and the margin is lower on that. And a sign, analysts look, investors look maybe they will have some growth still but lower price points the margin is going to come down and over the years thats been a major performer. The margin has been maintained because of the only high price points. And. Apple is hitting reset on expectations for themselves to perform and investors to expect them to perform. The big question does it change the fundamental longterm outlook for the stock and the trajectory. Analysts have remained bullish. The question, how much will they take down the question for earnings and for the price target. Cramer has been long time bullish, and hes hanging in there and looking forward to the iphone 7 launch in the fall. We want to show you the Global Markets first. Apple is setting the tone. We saw this immediately after the apple report last night. Dow futures down 25 points. Apple is set to be the biggest decliner on the dow. And the s p is pretty resilient, down only 1 point. Nasdaq futures down 37. The nasdaq coming off the back of four sessions of the declines. The dow and s p only called lower about. 25 . There is the early action in europe. Slight gains in europe and france. Slower gdp growth in italy. And slight declines. Overnight in asia, a mixed picture. Nikkei down about. 3 . Nothing sharp in terms of declines but still red arrows. One notable performer was the Australian Dollar dropping sharply. After Consumer Prices in australia unexpectedly drop bringing more speculation of easing in the coming. They hadnt been in easing mode for a while and people thought the central bank had pushed this away but the fall, and likely well see one there in may. Apple isnt the only big earnings mover in the morning. Twitter out with Earnings Results last night. Topping estimates but revenue missed consensus. Weaker than expected ad spending weight on results. Also forecasting Current Quarter revenue well below estimates. User increase a moderate increase. And heres the reaction. Total audience is massive. Over 800 Million People experiencing tweets on a regular basis. And thats immense. You cant go to any media, any Television Screen or out door space or anywhere without seeing a the tweet or an app. And thats. The bottom line for me on this sara is they dont have video. They hardly have pictures. They have a bit of pictures. That is what advtisers are paying for. Video lead to click through and interaction and with twitter you just scroll past it. For people like us, twitter is such a powerful and useful tool for news and zeitgeist and yet it is not registering like facebook and others and they are going to have to figure it out. Barclays. Continues to sell unwanted assets. Shares are getting a lift after the lender said in talks to sell its french retail unit. Chipotle posting its first loss every as a company. A double digit decline in comps for the month of march. Shares under pressure. A different story for ebay. The company beating something. The stock up 1 in the pre market. At t, did some stuff. Buffalo wild wings posted weaker than expected results. Chain cult earnings per share guidance for the year. Panera bread hiking projections for year. Up 2 . Comcast reportedly in talks to by dream works animation. The wall street journal saying the price represents awesomeness. And the Company Reports earnings before the opening bell today. Dream works is behind shrek and kung fu panda. A recent filing shows he would get a payout though of about 22 million if dream works is sold and he does leave. One to watch today. Back to apple. Shares. Lets have a check in on them right now. They are down sharply as we said to the tune of about 7 following results last night. Joining us on the cnbc newsline, good morning daniel. Another disappointing result from a tech company, apple. I think perhaps watched more than any other. What is the main reason for this disappointment . Well i think the real question is, you know, not what happened in the quarter, but can apple grow again . And so, you know, this is the First Quarter in 51 quarters apple did not grow. The First Quarter since the apple iphone was launched that they had an annual decline. Those are pretty negative mile stones but for us as shareholders we have to say this is an opportunity buy the stock. And this could be an opportunity to pick up shares like it was in august like it was in january. But if you look at apple as a whole they are doing about 230 billion in annual revenue. About 80 billion of that is not the iphone. So they do 80 billion dollars in sales that arent the iphone. And they have so much opportunity. And this is not the only tech company that hasnt grown in the current economy around the world. I think the key thing for me is this is a company that has a tremendous track record of innovation. Companies like google which we talked about which we also own talk about track record in moon shots but they also have no revenue to show for those categories. Apple has five categories that are so large they have to be broken out. So a couple of categories actually grew in the quarter. Accessory sales, up 20 year over year. And the Services Business is doing about 40 billion dollars a year in gross sales and 11 times earnings and 7. 8 times earnings at cash, 2. 5 dividend yield you are not paying a lot for the prospect that maybe somewhere in the labs at apple is something that will cause Companies Grow over the long haul. Yeah. And thats been sort of the oppositic take. Optimistic take. They did not talk that much about the cycle. What do you cowith the estimates on earnings and the stock this morning . Were shareholders. So we dont publish our earnings estimates. But i would expect estimates to come down. And the question for us this morning is do we add to the position . And its one that could be attractive. So its certainly something that we might buy today. Maybe tomorrow. But this is certainly a company that is not done and theres opportunity to company the stock. Daniel ernest. Right. Our facebook and twitter question today. Will facebook save the day for tech earnings after apple, google, microsoft all missed . Get involved with us. We want to hear your opinions. Lots of votes already coming in. And its wilfreds question. It is my question. You didnt have to point that out to everyone that you often so good. Still to come, diamonds are still a girls best friend. Well actually rifrd and saras best friend. But a new report shows the bid isnt letting up. Stay with us. We were born 100 years ago into a new american century. Born with a hunger to fly and a passion to build something better. And what an amazing time its been, decade after decade of innovation, inspiration and wonder. So, we say thank you america for a century of trust, for the privilege of flying higher and higher, together. The tech wreck continues. Here. Last week twitter and apple adding their names to the pile later. The dow called lower about 45 points right now. Shares of apple. That is the big story this morning. Down about 7 in pre market trade. All eyes on apple, on twitter and on facebook which reports today. Global diamond demand for jewelry. Strength in the u. S. Market, more so than the rest of the world. Courtney reagan joins us with the details. And what this tells us. And Beautiful Diamonds as well. Theres been concern the luxury market is slowing. But the latest report reveres that total diamond sales are strong in the u. S. , which remains the biggest market for diamonds and growing in share. Debeers says told sales grew 5 in 2015 hitting a record thanks to a number of trends. Other regions were different. Joining is the ceo steven, were 5 month into 2016, how are things so far this year . 2015, what a story for the u. S. The Worlds Largest diamond market. Yet still growing strongly, 5 up in 2015 and so far the First Quarter of 2016 the information were getting saying much a continuing trend, that the u. S. Continues really to be the foundation of demand and while globally there are certainly some head winds, were counting on america to have another good year for diamonds in 2016. Tiffanys days it expects wholesale prices to come down a bit. Is that something you are seeing still . If so what does that mean for debeerz . Were not really seeing that. 2015 was a challenging year for producers and the wholesale market. But the consumer demand held up. From the First Quarter of this year and probably december of last year were seeing very stable prices for polished diamonds and the wholesale market. If anything creeping upwards slightly. I think were seeing a better market overall on both consumer and demand sides and the levels holding. You are doing interesting things with allowing consumers to virtually hold up a pair of earnings, for instance, try it on right next to your own face through technology. Is that helping to sell more diamonds . The forevermark brand is really focused on the future of diamonds. Some classical things like rarity and beauty are fundamental. But we also want to engage with millennial audience s in ways they are used to engaging with other products and to make the process of selecting and buying the diamond that is absolutely right for you that you are going to keep for the rest of your life. We want to make that process as exciting as possible. And modern technology does allow us to do a lot of things that help us to understand the beauty of their diamond, to understand what it is going to look like on them. To do a lot of research in advance and feel lot more confident when they go into the store. So using those tools as part of i think helping the industry as a whole and clearly our brand. But the industry as a whole as well to make sure we engage with millennial. Of course. Nothing like trying on the real thing. And thank you. Thank you as well courtney for joining us onset. And the truth really though about these diamonds onset is that they are a gift from me to courtney and sara. So there you go. Still to come. The race to the white house. Donald trump and Hillary Clinton moving close to securing their nominations. More coming up here on Worldwide Exchange cathys gotten used to the smell of lingering garbage. In her kitchen yup, shes gone noseblind. She thinks it smells fine, but her guests smell this. Ding, flies, meow febreze air effects heavy duty has up to. Two times the odoreliminating power to. Remove odors youve done noseblind to [inhales] mmm. Use febreze air effects, till its fresh and try febreze small spaces. To continuously eliminate up to two times the odors. For 30 days febreze small spaces and air effects, two more ways. [inhale exhale mnemonic] to breathe happy. Welcome back. Now politics. Donald trump has a clear path to the gop president ial nomination this morning after dominating fivestate sweep. In the meantime democratic clinton didnt run the table but strengthened her delegate margin to the point where she can now lose every remaining state and still clinch the nomination. It is looking like it may be shaping up to be a clintontrump race in the fall. I just want top tell you for the five states maryland, delaware, rhode island, connecticut, and pennsylvania went for donald trump. Ive incredible in the common sense, good judgment in the people of indiana, the people of the hoosier state. If Hillary Clinton were a man i dont think shed get 5 of the vote. If fighting more womens healthcare and equal pay and. We have now won 16 primaries and caucuses all over this country. Clinton is reaching out to sanders supporters, talking unity. We can now. Reporter and thats assume ing. Tracy. Pots thank you very much as every this morning from washington. Coming up this mornings top stories, including a rough pre market for apple. Shares getting slammed after posting weaker than expected results. Plus a live report from michelle cabrera. Well apple shares getting crushed after earnings and sales disappoint. Comcast reported in talks to buy dream works animation. And donald trump and Hillary Clinton both move closer to securing their partys nominations. April 27, 2016 and you are watching Worldwide Exchange. Good morning. Busy morning. Welcome back to Worldwide Exchange. Im sara eisen. And im wilfred frost. Were ready to bring you up to speed on apple, the broader markets and more. First, if you went to bed early, donald trump declared himself the presumptive gop nominee after winning you have a five of yesterdays primaries by huge margins. On the democratic side Hillary Clinton beating Bernie Sanders in pennsylvania, maryland, delaware and connecticut. Clinton has a virtual lock on the nomination but sanders is showing no signs of dropping out just yet. Apple shares are getting crushed right now. Down 7 . The tech giant posting its first year of year Quarterly Sales drop in 13 years. Iphone sales declining for the First Time Ever in but in an interview with cnbc, apple ceo tim cook told josh lipton the company is in the early innings of the iphone and suggests there is great reason for optimism. China was also a rough spot in this report. Sales in that key market dropping by more than a quarter. But cook says he feels good about that country too. The company did announce a 10 Dividend Increase and 50 billion increase to capital return program. The company is sitting on more than 230 billion in cash. And apple shares are bringing down the entire market. This is a familiar feeling were apple investors. The first time in the last five quarters theres been a negative reaction to the stock. And while tim cook says there is still growth in iphones, investors wondering where it is going to come from. Clearly the smart phone market is quite mature. Still upgrades to be had. And switches from android and emerging markets. And a lot of this was the hong kong dollar and the macroeconomic weakness. Everything is focused on the iphone once again. And yes, he said very clearly the demand for the se, the lower price model is very strong. The question comes in, what does that mean for margins. We saw it with samsung and blackberry years ago. And when you see saturation, it effects investors. Also we did havent a is inningal mention of apple tv. This is very much people are questioning whether this is now a mature tech company. And with that just focus on the increase in dividend. 10 increase. This could be a huge dividend play we are that cash ambulance. And does it matter if its mature stock . Nicely valued. Strong Earnings Growth still. And a huge dividend. Certainly has the ability to do it. And how much of the growth slowdown has been priced in . The stock is down 30 since record highs. Over the last year it is one of the worst performers in the dow and depending on what happens today it is actually competing with American Express to be the worst performer in the dow jones over the last 12 months. Well see if that selling continues or if buyers step in on the idea that its over done and there is reason for optimism. It is going to be a big question. Well see. Because so far they have maintained their optimism. Lots of buys out there from the street. Apple down 7 in pre market and setting the tone for the wider markets. The nasdaq, the wider tech market is expected to open down about 40 points. The s p expected to open slightly down by about 1 point. On the techside watch facebook today. That reports later. In european markets mixed performance you have italy and the uk down. France and jegermany slightly u. The Australian Dollar dropped sharply overnight. Speculation sparking talk of easing from the reserve bank of australia in the months ahead. In fact a rate cut in may probably changed overnight. Apple isnt the only big earnings mover overt morning. Twitter also disappointing results last night. Posting adjusting earnings. Top estimated but revenue missed consensus. Twitter also forecasting Current Quarter revenue well below analyst estimates. User growth actually showing a modest increased. Twitter Ceo Jack Dorsey in an exclusive interview with cnbcs Julia Boorstin reacted to the stock drop. Were focused on our things. Weve never had more focus as the Development Team and were engineering what we believe to be the best experience out there around life and around whats happening now. And i want to make sure twitter is the place the first thing you check to start you day. Telling you whats happening in the world and what matters and ha thats what were driving towards. So far twitter has 310 million daily active users who log in at least once a month. Can they bring the ad money as they get more users . Can they go more mainstream . These are all questions. And the facebook outperforms today, then it is more worrying for twitter. Because it suggests it is very much stock specific. Because they are all compete for the ad dollars. Other stocks. The hr block is cutting part of its workforce. The Company Handled about 6 fewer tax returns. Down 6 in pre market. Fort net. Cirrus logic. You mentioned one of the stocks to report today will be facebook. Releasing results after the close. Shares are up by more than 30 over the past year. Though they havent pressured on back of results by apple and alphabet last week. Land dowdy. Wall street is looking for earnings of 62 cents a share of revenue of 5. 2 million and the bar set high for mark zuckerb g zuckerberg. Facebook posted double digit Revenue Growth year over year for more than four years. There are other things to watch. Watch to see if instagram and video ads contribute to revenue. Yousef telling while consensus is not making in ax accelerati acceleration. If it were to happen the. Users are tiring of posting personal updates of their own lives so listen for comments on how the firm plans to combat that. And third thing to watch. Guidance. The streak is looking into more insight and manaessenger. And it is the first report since the release of oculus and the rift. Leader of the iran criticized the u. S. Saying they had lifted sanctions on paper but in practice is scaring companies away from iran. Nuclearrelated sanctions are gone but many other sanctions remain in place. Were going to have a live report from iran from Michelle Caruso cabrera after the break. Still to come weve got todays must reads. Including a piece apple off the tree. And dont forget we want to hear from you. Will facebook save the day for tech earnings when the others have all missed in the past week . Welcome back to Worldwide Exchange. In the in the financial times. My pick is titled apple off the tree. It says optimism lingers. 44 out of 50 analysts have a buy rating with an average target price that is now almost 40 above the current share price. We talked with apple a lot this morning. And this is an interesting point. Despite declines and peoples expectations coming down, the street has remained super bullish. And it is not that surprising you see a big share price like this when you see how many buys are out there. So when it disappoints relative to expectation there is a big fall. A and. It has been an expectations game with a lot of these Technology Companies going into earnings. The bigger question with apple is that beyond the quarter to quarter misses, beats, what is going to be the growth driver. That is the question. My pick is in the donald trump win last night. His success carries lessons for democrats too. Pretty much a warning too. Saying dont get overexcited democrats. What you are seeing. Democratic politicians, including Hillary Clinton now at times seem tone deaf to public anger while they take vast amounts of monies from business before the federal government. The democrats also have some work to do existentially on their message and how they are resonating and they credit their success to Bernie Sanders, so far, versus Hillary Clinton. And then. And the question will be how much longer does sanders continue that rhetoric, the slightly anticlinton rhetoric. And how long it takes to come behind the democratic nomination. And can she win his voters . Squawk box, Andrew Russ Sorkin joins us live with a look. Very busy day. Let me tell you whats going on. I dont want to oversell but i i cant underestimate. We have awesome people on the show. And that is just getting started. Were going to be talking about apples earnings, twitters earnings and politics. And we have a big line up and it is especially big in the 8 00 oclock hour. Dont miss it. We certainly will not miss it andrew. Squawk box coming up in about 13 minutes time. Next the price of crude is actually surging this morning. Wti just past 45 dollars a barrel. And john sylvia after the break 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. Futures are resilient in the face of the 7 drop for the price of apple. One reason . The strength of oil this morning. First time weve seen that price since november. And extraordinary given the development of the last couple weeks. Saudis new plans for federal budget. Oil and doha. Resilient and up today. Lifted sanctions on paper but in practice are scaring companies away. Michelle Caruso Cabrera is in teheran with more on what business can or cannot be done in iran. The Practical Implications meant that European Companies for the most part have Carte Blanche investing once again. But there are many sanctions preventing American Companies from doing business here. There are exceptions. The Airline Industry for example. Ge and boeing have sent representatives. And the aging fleet with iran, they almost immediately did a de deal. And the auctions coming in june or july for new projects. They changed the incentive structure of their contracts. The styling structure used to be so bad a lot of companies wouldnt bid because the terms. The Auto Industry was deeply impacted by the sanctions. Car sales dropped about 50 because of the sanctions. That is not because demand went down. It was because they had to stop production. They could not get the parts. We went to the biggest auto plant in iran. The biggest auto plant in the middle east with the capacity of 160,000 cars a year and we spoke with the Vice President in charge of strategy there. He was telling me there were some models they could only sell as the manual shift rather than a automatic shift because they could not import the electrons. However things have changed since the sanctions have been lifted. The situation is better. It is getting day by day. But, you know, coming back to the circumstances of before sanction, it takes time i believe. Right now we have difficulty. But for supplier part. Our partners are working with us. They are still having difficulty transferring money he told me. And asked is it worth it . What are the difficulties . Iran is still on the international blacklist. Concerns over money laundering, financing of terrorism. And that is why a lot of european banks, even though in theory they could do business here are not doing business. And on top of those sanctions we mentioned european banks think they could still be subject to those if they dollarize transactions for iran. So if they cant access those critical tools that is going to be a problem. That is why you see the complaints still about the deal. Thank you so much michelle. Reporting live today from teheran. Shell have a lot more throughout the day on cnbc. Also today the Federal Reserve wraps up a two day policy meeting. The decision is due 2 00 p. M. Eastern time. Central bank isnt ready to do anything but it could signal it is ready to resume tightening later this year. John, what is the likelihood that the fed does signal that they are inching towards a move towards higher Interest Rates . I think it is very likely sara because were sort of meeting their three criteria. The Inflation Numbers continue to creep up. The Global Developments weve seen improvement in chinese Economic Data as well as some of the global manager purchasing ind diaz and were also at full employment. And i think the fed has to go to a more balanced assessment. What about ar more hawkish . Things have improved. Oil, equities up. The dollar has softened. Isnt the risk today more on the hawkish side. So at least they can keep the option of a june hike on the table. I think moving the more balanced assessment from where this were before will be viewed as a little more hawkish. I think it was very difficult at this point. Remember were got a First Quarter gdp number coming out later this week that is clearly going to be almost flat. Hard to be too hawkish in that environment. I find so it confusing. If they are hawkish and signaling a Interest Rate rate is coming the markets may throw a tantrum or a fit like in december and then they have to be dovish again. And its like whos chasing who and. It is a really tight rope and you are quite right about who is in charge because the fed thinks about moving but the market is sending its signals. And i suspect again with simply below 2 growth this year it is going to be hard to be too aggressive. Two rate hikes might actually be too much at this point in o time in terms of the market and Economic Growth in the united states. Extraordinary surge over the last few days. Are you surprised by the strength in oil . Its got to be the belief that the Global Economy has improved to some extent. I dont think it is a supply issue. I think it is really saying hey wait a minute, this Global Economy is really moving forward. Demand has improved. Oil prices go up. Also seeing a selloff in treasuries. Do you think with Jeffrey Gundlach who said yesterday that they are a buy . No. Im still cautious on treasuries. Remember the fundamental, the Global Economy continues to improve. Inflation is creeping up. I would expect the fed to put in at least one rate increase this year. Ill steel be a little cautious on u. S. Treasuries a at is 1. 9. Thank you. We asked will facebook save the day for tech after so many others have disappointed . 45 say they will beat. 55 say they will join the rest of the tech wreck and miss estimates. Well be watching. And nasdaq already on the back of four kays of declanss. Looking set to open lower. Crude oil above 45. Jocks is next. Have a zab squawk box is next. Good morning. Shares of dow component apple getting crushed after a disappointing quarterly report. Earnings missed. Revenue missed and was actually below last year. Iphones sales fell and sales in china plummeted. This wasnt supposed to be able to happen. A full run down coming up. And some rumor this is morning. Comcast reported in the talks to buy dream works. And in the race for the wlhie house it was a clean sweep for donald trump. Well bring you the latest from the campaign trail. It is wednesday, april 27, 2016 and squawk box begins right now. Good morning everyone. Im becky quick. Lets take a look at the u. S. Equity future this is hour. You can see this morning there are some red arrows. If you look at the nasdaq down about 41 points. Dow jones are down and s p as well. Wti at 45. 03. Brent i
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