Including due possibility, freeportmcmoran, dow chemicals and then the spider select materials sector, that down about 3 . Top holdings there, monsanto, dupont. David liz, lets take a look at that index you were talking about, the volatility index. When things go south, as they have, this usually goes up. This is not a stock, this is an index, but there are stocks that are linked to this if you think things are going to continue to go south. This was just down below 15 not long ago, it jumped about 13 today, its up to almost 19 right now. Again, when it got down below 15, people began to wonder, jeez, how low can this thing go . Apparently, it reached its limit at that point. Liz you could argue it was dupont and 3m with earnings reports that people didnt embrace, but todays selloff theoretically started in europe as worries mounted about spains ability to overcome its debt troubles. Again you see that the ftse 100 down about a percent, you saw the dax down 14 Percentage Points as well. David when the bell rings, the action begins right here. We have facebook, netflix, broadcom and panera earnings. Not so much what their earnings or losses are, but whether Mark Zuckerberg can prove to investors that he can find a way to make money as users are shifting from pcs to mobile. Liz but one analyst says there was a telltale sign out there that this market could be gearing for what he calls an 8 drop. He called it perfectly a year ago when he said the market would move higher, and the volatility would move lower, but hes changing his tune now. Hell tell you what it is and what you can do to prepare. David all right. First, were going to tell you what drove the markets with todays data download. Stocks selling off on wall street with all major indices landing in the red. The dow and s p closing at the lowest level in seven weeks, the nasdaq fell within two points of its 200day moving average, all ten s p sectors ended lower led by materials and energy. Well, oil, by the way, dropping 2 closing the day at its lowest level since mid july. We had an analyst yesterday who said it was going to drop another 10 . Prices fell nearlyy 2 to settle under 87 a barrel, and gold, gold falling to its lowest level in nearly seven weeks and disappointing earnings prompted investors to seek safety in the u. S. Dollar. The precious metal dropped 1 falling nearedly nearly 14. Liz Tim Mulholland is in the pits of the cme, joe keating and jeff flock wreak down todays break down todays big selloff. Plus well have analysis of facebook numbers as soon as they hit the tape. Lets start with Tim Mulholland in chicago on the pits there and, i guess, right off the bat did the news warrant a 200pluspoint drop in the Dow Jones Industrials in such a significant market sell off, or is it not that significant . Well, i dont think its that significant in the context, its 2 . Granted, we havent had a decline of this magnitude in several months, but i think you saw fundamentals dislodging from price. Then when we got the earnings news that came out, i mean, look, 60 , i believe, of whos reported so far in the s p has missed revenues, and a lot of them are these big multinationals, so thats raising concerns about Economic Growth here and abroad. David hang with us, tim, were going to bring in joe keating, Center State Banking executive Vice President , and jeff stock. Joe, first to you, im beginning to wonder here, the stock markets been so focused on things that are different from just selling stuff to consumers, things like what the fed is going to be doing, things like what kind of Stimulus Program is coming down the pike that now when theyre focused just on the consumer because the other things have done whatever they can do, theyre not getting the earnings that they thought they would. Is the market being drawn more towards the economic realities than towards what the fed and Central Banks are doing . Most definitely, david. If you go back to the recent high which was back at the end of april, weve been relatively cautious on the market ever since then which was about 1419 on the s p largely because prices were getting too far ahead of earnings. Tremendous earnings rebound began in 2009, it began decelerating as we went through 2010, through 11, and really decelerated here in 2012, and you can just stretch it so far until investors have to say, wait a second, any further upside in prices is going to be increasing the price earnings ratio when we already have Interest Rates and bond yields at historic lows, so this is not surprising at all. Liz jeff, do you get the willies from these earnings reports, or is there some good in this market . Your previous guest had the right numbers about revenue misses, but as of last friday the companies that had reported, 58 of them, were beating earnings estimates. I think its because all the ceos and cfos ive talked to have step today the sidelines and arent doing anything until they get some kind of david our viewers are taking a look at numbers, put those numbers back on the board. Facebook earnings have come out, were piecing through them very carefully, we dont want to give you bad information. If you can put those number babb babb back on, please, again liz sandra smith has the numbers. David sandy, go ahead. Reporter looks like the stock is moving lower in after hours, but we have a beat on the top and bottom lines, earnings per share coming in at 12 cents, street was looking for 11 cents, revenues in at 1. 26 billion, that was a slight beat but pretty much right in line with what analysts were looking for, so expectations could have been high, but were going to continue to dig true the numbers here. Through the numbers here. Some other numbers were seeing is monthly active users were 1. 01 billion as of the last day in september. That was compared to 955 million at the end of the second quarter. So monthly active users did go up, albeit just a little bit. Were going to continue to dig through. Liz yeah. And were looking at mobile monthly active users, okay . Its all about mobile. 604 million as of september 30th this year, 543 million at the end of q2, so lets get right to santose roe, you do follow it, what do you make of these numbers . Is this enough to quell the markets concerns about facebook . Thanks for having me. Liz sure. I think the numbers look good on the top line, the revenue is good, earnings are good, i think the problem is probably that the ad revenue, the percentage of total revenue thats from advertising, so we just need to look below the lines, even the maus and daus look good, and like you mentioned, i think liz wait, can i just ask you, were looking at ad revenue at about 1. 09 billion, thats a 36 percent increase from the same quarter last year. Thats good as well. I dont have all the numbers. Overall, the numbers look good. David well, let me just stop you right there because first blush doesnt look good for the trading after hours. We see a significant drop after hours. One of the questions, one of the key questions ever since google came out with their disaster last week was whether cost per clicks were going to be really the big drag on Companies Like google and like facebook that are beginning to see this slowdown in cost per clicks. Is that whats dragging the stock down right now . I think, i think we have to wait for the Earnings Call and see the commentary around it. That is a big issue, and i think people are going to watch those numbers. I dont have the exact numbers in front of me, but i think thats where the problem is. But earnings, the commentary around the earnings is going to be very critical, and i think a lot of the fears will be, will go when we hear the call. David so, in fact, zuckerbergs comments are going to be more important than the numbers. Absolutely. Hell administer color on their initiatives and just how the new products are going. So i think overall we just have to wait before we really pull the trigger. Liz Tim Mulholland, again, the stock is trending a little bit lower. What are you hearing in the pits, what do you think . I mean, as far as, you know, i think the stocks its interesting today because a lot of the stocks that are down are the ones that were near their 52week highs, so its already taken such a hit from that ipo right now i think that, you know, its kind of a mixed bag. I dont think theres a lot of fuss about it in the pits here. David all right, santose, one of the drags on facebook has been zynga. I guess they get about 14, 15 of their income from zynga, but zynga hasnt been selling so well. Is it becoming a drag that theyre going to have to cut loose . Yes. They need to diversify away from zynga, and thats zynga is suffering, and they have the same problem with mobile and kind of move away from their desktops. David are you recommending that they actually cut the chord, that they sell off zynga or sell off the relationship with them . No, im not recommending that, im just saying that they need to add, diversify their base, get more games on the platform and just not depend totally on zynga. Thats the key at this point. They, basically, need to move away from that and twersfy. Which they are. I have to see what percentage of revenue was from zynga, but i think overall they are moving away, theyre adding new apps, new gains on the platform david by the way, since youve been talking them up, look whats happened to the bid after hours, not only a moderation, but for a moment it ticked above, a little bit above yeah, a good case of seller news, good news, that could be a case. But i think overall the commentarys important, we need to wait to see what they have to say. Liz well, their monthly act tive users, and again, it was just this past month that they hit one billion, and that is quite an incredible level to be hitting, its 1. 01 billion at the end of the quarter, another 100,000 on top of what they had announced a couple weeks ago, is that enough for you, or are people so focused on facebook has to grow as quickly as its grown in the past that that has to be an issue . Yeah. I think the subscriber base, the total customer count is not that critical. They have a big base. They just need to add and see how they can monetize this base. I think thats the main issue. They can add 200, 900,000 more, but the main thing is how they will monetize this whole thing. Liz we should make the point the bid and the ask together are above the Closing Price of 19. 50. Netflix numbers as you see on the lower part of the screen are now out. Right to sandra smith on that. Reporter hey, liz, earnings coming in at 13 cents a share, thats a beat, the average analyst estimate of four pennieses, so a pretty substantial beat. You are going to notice that the stock is significantly moving lower in after hours, its a drop of about 15 . Revenues came right in line with analyst estimates. One thing we are noting with netflix is that the end of the Third Quarter they had 25. 1 million domestic streaming users. Were still dilling through the numbers right now digging through the numbers, again, the stock is plunging on that report. David okay. Tim mulhollands been following this stock very carefully, a lot of competition for netflix. We have amazon, hulu, redbox, and that disastrous pricing decision they made about a year ago is still fresh in peoples minds. Yeah, and i think thats what, and the markets discounted the lower growth prospects. I think the real big focus is they said at in march or april they were going to get 7. 5 million new users this year, and theyve only gotten something i didnt hear the number in the report, but under three million which means they need about 4. 5 million more in the Fourth Quarter. So theyre using domestic revenue to fund their foreign growth, so this is really an important thing for them. So i i this it has to do with the number of users. Liz yeah. It looks like at the moment as im seeing it that the number of International Streaming members that were added in the Third Quarter was about 700,000 for a total of 4. 3 million. Thats international. They were hoping that that would be a real growth area, and well continue to be watching both of these, netflix stock is down, we do have facebook at last check because this thing is so volatile is above facebook is above its closing. Some ideas of where theyre putting their money right now, plus well ask more about the Facebook David we have not finished with the main story of the day, the market selloff. Will it continue . Whats going to happen . And were going to focus also on members of goldman sachs, jpmorgan and pimco, the securities industry. The Financial Markets association is trying to get a pulse of what has happened with the financial industry in this country. Are the regulations burying the banks, or, in fact, is there a way that they can come through this . Well be asking tim ryan coming up. Liz what issues will dominate the conversation in 2013 and why they say dont repeal doddfrank. Plus, one analyst says theres a key indicator in the market right now thats telling him an 8 drop in the markets. Thats sort of what we saw today. Its ahead. Hell tell us what and how you can hedge yourself. [ male announcer ] this is steve. He loves risk. But whether hes climbing everest, scuba diving the Great Barrier reef with sharks, or jumping into the marke he goes with people he trusts, which is why he trades with a company that doesnt nickel and dime him with hidden fees. So he can worry about other things, like what the market is doing and being ready, no matter what happens, which isnt rocket science. Its just common sense, from td ameritrade. Which isnt rocket science. You know it can be hard to lbreathe, and how that feels. Copd includes chchronic bronchitis and emphysema. Spiriva helps control my copd symptoms by keeping my airways en for 24 hours. Plus, it reduces copd flareups. Spiriva is the only ondaily inhaled copd maintenance treatment that does both. Spiriva handihaler tiotropium bromide inhalation powder does not replace fastacting inhalers for sudden symptoms. Tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. These may worsen with spiriva. Discuss all medicines you take, even eye drops. Stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives, vision changes or eye pain, or problems passing urine. Other side effects include dry mouth and constipation. Nothing can reverse copd spiriva helps me breathe better. blowing sou ask your doctor about spiriva. Breaking news right now, ceo of sirius satellite is stepping down, mel karmazin has informed his board of directors that he will be leaving the Company Effective february 1, 2013. Again, mel karmazin, sirius radio ceo and chairman is stepping down, mel karmazin. Liz a lot of this has to do with the huge battle with john many loan of liberty media, david malone of liberty media. He has been very voc at saying mel karmazin wasnt on the ball when it came to next generation technology, and the two have really been battling it out so, obviously david well, john many loan is known as a deal maker. Hes stepping in more in the management role, well see whether he takes even a larger role. He usually likes to step back, but in this case hes gone whole hog in. Liz i just want to look at the stock right now. The stock is pretty much just slightly lower than where it closed today, but this is a 2 stock when it comes to sirius xm. Its been a real problem even considering theyve got a lock on satellite radio. Not too much companies are in this business. For a deeper look into netflix, lets go to nicole on the floor of the new york stock exchange. Reporter it really is suffering near the after market. When you take a look at netflix, everybody thinks of their favorite movies and shows, but when you look at this board, you can see debt spite the fact the Company Despite the fact the company beat on both the top and bottom lines, the truth is they talk about the fees and the costs going forward, the International Expansion certainly has hooked investor over the last few months. They talk about the International Contribution losses that are likely to increase. Weve seen this week alone that they are expanding in eight more countries that we didnt know about including korea and turkey, and right now you can see this is down about 10 right now for netflix. So certainly is coming under pressure and likely to see this type of action tomorrow as well. Back to you. Liz 130 stock back in the day. David yeah. It wasnt too long ago. Its been a real roller coaster. Lets get back to joe keating, Center State Bank executive Vice President , jeff sott. Jeff, its a negative day, you cant get around it, but on the other hand, this market still has buying power, does it not . There is still a lot of cash. We always are talking about how much cash on the sidelines, all those Retail Investors who never got fully invested again, in fact, have new of very few of them have put their toes in the water for the past couple years. When is it likely that we are likely to see a move back into the markets, or is this selloff going to continue . I dont think it comes from Retail Investors. I think that a lot of them are frozen like deer in the headlights. I do think the professional Portfolio Managers are under a lot of pressure here. I called on 22 up in boston a few weeks ago and 20 in your town two week ago. None of them were outperforming the s p, all of them were sitting on right much cash, so coming into year end they not only have performance risks, they have bonus risks and, ultimately, job risks. So i think the pullback is a buy, i dont think its a sold, and were getting very oversold on a shortterm basis. Liz i am so glad you said that because people who have just sat there worrying and fretting, what, were paying people to worry . You dont need them to worry, you need them to invest appropriately. So, mr. Keating, show us the money. Where is that opportunity to actually get some returns versus just hiding your cash and fretting and concern . It doesnt do you any good. Earlier david mentioned how aggressive the Federal Reserve and other Central Banks have been, we refer to that as bringing down shortterm Interest Rates and bond yields, so, therefore, investors are forced to go into the equity market. Consider a company like bce, bell canada, it has a 5. 4 dividend yield which is actually higher than the yield on either at t or verizon. It actually has a stronger expected growth rate in the dividend payout over the next four years. Consider another like chlorox, company with a 3. 4 dividend yield, global manufacturer and distributer of cleaning products and household predicts with about a products with about a 27 increase in dividend payout over the next four years, and lets go to a 8. 5 distribution yield on a pipeline company, newstar. Its a Midstream Energy company, theyve sold half of their exposure in the asphalt business really concentrating more on the midstream pipeline space, a really, really good buy. David jeff, one thing we have had an opportunity to be optimistic about is the housing market. Its not all good news, but you cant deny prices seem to be off their bottom, and youve got a bet specifically focused on that, one that most folks have heard of. Yeah. I would also point out that ive never seen the country go into a recession when you were getting this kind of improvement in the housing market. Transactions are up 78 here in st. Pete, pricings up 1012 . A Second Derivative play on the resurgence in housing is a company we follow, our fundamental analyst has a strong rating on it, ryn. They own 2. 8 million acres of trees. They also have a Performance Fibers Division thats growing, its up in the jessup, georgia, they produce the cleanest and highestgrade cellulose, its used in things like cigarette filters, and the process is so superior to every other company that they wont pat tent it. Patent it. They just increased their dividend by double digits, and we think the increases are going to continue to come. David jeff, joe, thank you, gentlemen, great stuff. Liz thanks, guys. Batten down the hatches, one top strategist says there is a glaring sign you need to see that suggests the market is set to drop eight full Percentage Points. Hes going to tell us what it is and how you can hedge yourself. Everyone has goals. Take the steps to reach yours, with us with real advice, for real goals. The Us Bank WealthManagement Advisor can help you. Every step of the way. From big steps, little steps. Since 1863 weve helped guide our clients, so they can take the steps to help grow, preserve, and pass along their wealth. So their footsteps can help the next generation find their own path. All of us serving you. Us bank liz do you trust your Financial Advisor . There was a huge meeting today in new york city that brings together some of the biggest names in finance including alan greenspan, mary schapiro. The meeting sponsored by the American Securities indus strind a sieve ma, talking about regulating their own and including one law they would like to keep. David the ceo of sieve ma joins us. For all the talk about deregulation among the bush administration. We got doddfrank and consumers Financial Bureau in the auspice of the Federal Reserve board and rules and regs. Dont you feel instead of coordinating rules and regulations with very there is just one pile on one rule and one agency and one bureau on top of another . One speaker today described it as a bunch of bumper cars. Remember as a kid, bumper cars, depending on what particular music park you went to went counterclockwise. There was always a core you went around. Well they have taken out the core. You have agencies in bumper cars and randomly hitting into each other. It is not wellcoordinated. The regulations are not really prioritized way they should be. Not sequenced for implementation. We talked a lot about that today. David to some regs contradict other regulations . Some do. Some do and some pose issues that no one saw coming. An example would be, were all now waiting for the government to finish a definition, which is called a qualified residential mortgage, qrm. Weve been waiting for that and simultaneously other agencies are working. Well now we learn that the estimated 200,000 morrgage trusts, these are the trusts that own the mortgages that are securitized, are now being redefined as commodity pools. Which means we never expected, now the cftc. Liz is in charge. Is involved in it. This brings up the biggie, doddfrank. Doddfrank of course has thousands of questions and thousands of subquestions, i lost track and some much them arent even written yet even more than a year after voted in by congress. What do you think of doddfrank . Should it stay, should it go . Should it be tweaked . Is your voice heard among the regulators . Our voice is heard. Our view doddfrank is the law. We are not presently arguing for repeal. That is not our position. We think that they have enough flexibility to actually implement the regulations. A lot more to go. Our estimate is, when we end, 400 new regulations. 30,000 new pages in the federal register. Liz brutal. And what we would like to see them know, talk about this, talked about it this morning. We would like to see them, lets just take a breather. Lets figure out whats the highest priority. Focus on the highest priorities. Lets sequence them properly and lets move ahead so that the Financial System is safer. Thats what we all want. And for us, this is a key ingredient in getting confidence back in our system. Liz i think of financial people, allen stanford, who dont pass the smell test at all and some have ended up in jail. How concerned are you about those bad actors in your industry . And do the regulations appropriately nab them . Were not only concerned about the bad actors, were very concerned about mistakes. There has been a series, and now that youre under press scrutiny, were under congressional political scrutiny, every little problem is magnified. And weve had a lot of, weve had a lot of mistakes over the last four years. David tim, when you have that many new rules and regulations, does it, does it naturally benefit the bigger banks, the ones who can afford all the lawyers and accountants all the smaller institutions cant . I wouldnt say it benefits them but you have hit the nail on the head as to, can these rules be applied fairly to many, many small institutions . One of our members was telling me a story that, they have added 20 new employees this year. 11 of them are in compliance. Now, how does that add value to the economy . How does it help us play our role which is, financial intermediary . Because were kind of the engine that keeps the economy growing. And were spending all this time, some of it is appropriate, but a lot much it is not a good use of our time. Liz well keep the fight going. Thank you. Liz and it is great to hear youre working with what youve been dealt. Tim ryan, the sifma ceo. Thanks for stopping by. David thank you, tim. Investors listen up. A strategist is warning of a massive market drop that could wipe out more than half of the years gains. He will tell us exactly how you play this pullback coming next bob. Oh, hey alex. Just picking up some, brochuresposters copies of my acceptance speech. Great its always good to have a backup plan, in case i get hit by a meteor. Wow, your hair looks great. Didnt realize they did photoshop here. Hey, good call on those mugs. Cant let em see what youre drinking. You know, im glad were both running a nice, clean race. No need to get nasty. Heres your honk if you had an affair with taylor yard sign. Looks good. [ male announcer ] fedex office. Now save 50 on banners. If youre a man with low testosterone, you should know that axiron is here. The only underarm treatment for low t. Thats right, the one you apply to the underarm. Axiron is not for use in women or anyone younger than 18. Axiron can transfer to others through direct contact. Women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acnen women may occur. Port these signs and symptoms to your doctor if they occur. Tell your doctor about all medical conditions and medications. Do not use if you have prostate or breast cancer. 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The dow and s p ended at sevenweek lows. Manufacturing activity in the u. S. Central Atlantic Region fell in october. This is a critical index. The richmond Federal Reserve bank said its activity index dropped to negative seven from positive 4 in september. Numbers below zero indicate that activity is actually contracting. Liz . Liz contracting. Is todays contraction or selloff a precursor for more pain ahead . One strategist who has gotten it right all year thinks so. He is predicting pretty significant 8 drop in the markets and says there is one key sign out there thats telling him that will come to pass. He is the mkm partners equity derivative strategist. Great to have you here. Look, a year ago you said volatility would go down. It did. Now you are predicting it will two up pretty significantly. Where are we going . What have you even that gives you that indication . Well a couple factors to think about. First of all implied volatility or vix only stays low for a certain period of time. Back in june vix declined down below 20. At the time we thought that would last about four months based on the magnitude of that volatility event. That gets us to right about now the other piece you have to consider is that the seasonal peak in volatility for the year is this week. So our view was, four months would converge with that seasonal egg peak. Were sittings on that now. That driven our peckcation that expectations volatility would move higher. Liz you say this week, traditionally, historically its a problem. Here we are. We were up 12 for the volatility index, hitting about 18. But the annual high is about 47. If we go what level would what we see an 8 drop in the s p which is what youre predicting . 8 would correlate 30 read of vix. Since july 2007 that happened eight times. Twice you had the vix up to mid 40s. That correlates with 16 correction. If we hit a vix of 40, 30 here would take you to 1340 on the s p 500. Exactly. Liz 8 drop. But if the vix were to climb even higher and go above its 52week high, about 40, that is not the flash crash high of 48, 49, we would see a much more considerable drop on the s p . Exactly. Correlation to s p 500 is around 1200. Liz youre viewers are listening and saying say he is right, look in the camera how do they make money . How do they profit on this . What do they do . Reality implied volatility is low but simple structure buy puts, spiders, iwm. Still a very smart trade. Vix closed 18 and change today. Were talking about, potentially seeing 30 in spots. And you know thats a very simple, straightforward trade you can put on confidentially. The other trade to think about is being long some volatility. There are products out there that admittedly have beaten up a bit because you cant buy these and hold these. If ever, for example, you were going to look at vxx, this would be the time. Volatility has convexty toe it, meaning essentially it moves vertically when the type of event were talking about happens. And you can own hold calls in vxx and move out further, december or january there. Liz so this will move higher . Yeartodate, ann one year, it is well off the highs . Exactly. Liz you say we will start to see reversal here, shift to the upside. Do you short stocks . Certainly you could. I mean were really more focused on the Risk Management piece which is obviously hedging and long volatility exposure. You know, in the scenario were talking about, you will make money shorting stocks. Liz you say utilities and staples might be a little bit of a safe haven . Utilities, staples medicals, Telecom Services traditional sectors will outperform on relative basis. Absolute basis all sectors could get beaten up in our scenario. Liz you heard it from jim. He has been right. Vxx is what he says you might have an opportunity with. Thank you so much. Thank you. Liz see you next time. David, over to you. David liz, was the big hype over the little ipad worth it . Well talk to a top analyst on what the release means for the companys bottom line and whether this could actually cannibalize existing sales. That is coming up. Tdd 18003452550 this morning, im going to trade in hong kong. Tdd 18003452550 after that, its on to germany. Tdd 18003452550 then tonight, im trading 9500 miles away in japan. Tdd 18003452550 with the new global account from schwab, tdd 18003452550 i hunt down opportunities around the world tdd 18003452550 as if im right there. Tdd 18003452550 and im in total control because i can trade tdd 18003452550 directly online in 12 markets in their local currencies. Tdd 18003452550 i use their Global Research to get an edge. Tdd 18003452550 their equity ratings show me how schwab tdd 18003452550 rates specific foreign stocks tdd 18003452550 based on things like fundamentals, momentum and risk. 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On the flipside, better than expected Third Quarter results has shares of panera bread climbing in afterhours trading. Earnings for the company topping estimates by a nickel at a buck 24 a share. Revenue also coming in better than expected at 529. 3 million. Panera also raising its Fourth Quarter earnings outlook. That is the latest from the fox business network, giving you the power to prosper liz the news is out. Facebook reporting revenue for mobile ads, this is what everybody wanted to know and for the first time this quarter. Lets go to sandra. She has got the details. Liz, this is the big number. Facebook saying in its release 1 of advertising revenue came from mobile devices during the quarter 14 . That is the big improvement as the cfo noted with none coming from mobile advertising revenue. A large improvement there. By the way, total earnings per share 12 cents. That beat the street estimates by a penny. Revenues coming in at 1. 62 billion. That was pretty much in line with estimates a slight beat however. Total revenue from advertising during the quarter represented 86 of its overall revenues that. Was a big number to look for. Monthly active users for Facebook Rose 26 that is a yearoveryear comparison. So jumping by about a quarter there. Also daily active users up 28 , a big increase there as well. Also mobile, as liz keeps saying, this that is the key number to watch, mobile monthly active users were 604 million for the quarter. That was up 61 , liz and dave. Big improvements across the board. As you can see investors like it. The stock is surging in afterhours trading. Liz naysayers losing out who shorted this because it is moving higher. Well see what happens tomorrow. Sandra. David . David big story is apple. Its shares were beginning to turn around when the mid did i and ipad mini and its price of 329 were revealed. What is it about the mini that investors are worried about . Joining me, matthew hoffman, managing director of cowan and company. Matthew, is it price . I notice when the price came out, maybe it was just coincidence but that is when the stocks seemed to go further south . Right. For months we heard the price would be 299. So the 329 was maybe a little higher than the street was looking for and theres a little bit of confusion about maybe whether it will be able to beat the google nexus and lower priced kindle fire tablets that are out there. I think once the product gets out there in the market, proves it has face time, it has the ability, it is lighter, it has got great battery life, there are a lot of good features on the product. Once it gets out there maybe some investor concerns will ease a little bit. David you mentioned amazon. Amazon is very happy. If you look at the two stocks, the intraday trading for amazon and apple and put them over each other, theyre the exact opposite. Theyre mirror image. Exactly when applebee goon to go down significantly midday is when you see the stock for amazon go straight up. Right. David theyre the direct beneficiaries of concerns about the ipad mini, are they not . Thats right. Again, just comes down to the pricing, if youre doing a research study, you would want to certainly give the lower priced device a big handicap, big hedge in the marketplace. So that is what investors were doing today. David there is another concern which is cannibalization. Will the ipad mini take away from ipad regular sales . Well, right now the ipad has about 80 market share. Any product that comes out is going to take market share from the ipad. This product will be no different. Ipad mini does probably grow the top line a little bit but it does cannibalize in our model the ipad a little bit too. David that is not good news, is it . Apple has a history of killing off their young or killing off, im sorry, their, killing off their old products to make room for the new products. Right. So i think this is another case where they are trying to make room for the new product. But will there be, i mean are they going to have a product after, are they going to have a new ipad which will eclipse the ipad minute any . Is that the plan . They did update the ipad. It is confusing because there are no model numbers on the ipad of course, the new ipad. The new ipad, new ipad has updated processor so it will be faster. It will give a lot more for the money. They kept the old price points so. That product is competitive. All in all a good day for the ipad line. David steve jobs was against the concept of the mini. Why . Well, i think the ipad mini, it, you know, with lower, with smaller display it doesnt do video as well and i dont think he viewed the tradeoffs being really worthwhile for the consumer. However the marketplace has moved to lower priced tablets. I think apple has to be there. It is really defensive. Move. You would rather sell more 500 tab lerts that than 300 tablets. Reality the market is moving there so apple has to be there. David matthew, we have to go so make it quick. The larger question about steve jobs, is apple losing some of that steve jobs flair, do you think . Well, to a certain extent they are but while wait and see what else is in the r d pipeline before we make that proclamation. Make it absolute. David matthew hoffman, thanks very much. Thank you. David liz . Liz tight race to the polls. Two weeks left until election day. We reveal which states propose a potential threat to the final hours of campaigning. David as the general election near the president ial candidates are choosing their campaign paths wisely. Liz how are governor romney and president obama trying to lock down the white house . Well, going after the undecided voter of course. Peter barnes in washington. He has more on their efforts. Peter . Hey, liz and david. President obama stock around florida, a key swing state for a postdebate rally this morning where he slammed mitt romney on foreign policy. Last night he was all over the map. So that sound bite was to set this up. Were doing factchecking here the both candidates are all over the map this week. Headed to key swing states, they feel are crucial to whipping on november 6th. Obama in florida, ohio, and iowa today. Then on to colorado and nevada. Though he will pop into l. A. Tomorrow to tape the tonight show with jay leno. Then the president is headed back to florida and ohio thursday as well as again i cant. Mitt romney is hitting nevada twice, plus ohio, colorado, and iowa. He must be feeling pretty good about florida. He did not stay there this morning. The real clear politics average of battle grand state polls shows up up by 1. 8 in florida but the averages have the president up in ohio, iowa and nevada. Colorado looks like a deadheat. Liz and david . David peters barnes, thank you very much. Go off the desk. Make jers of jack daniels are relosing their glasses to Frank Sinatra as a sinatra select. The singers premium whiskey. It will be sold in airports worldwide and highend Retail Stores in the u. S. It will not come cheap. The high end whiskey is expected to sell for 150. A the first goes on sale where else, in las vegas this december. Liz totally appropriate. Number one thing to watch tomorrow, the Federal Reserve decision. Analysts are not expecting a decision but the same punch at the last meeting when they committed to unlimited monthly bond buying program. Were not expecting that, and low rates through 2015. We are expecting that. Investors will be listening for any news on the outlook of the state of the economy. Well parse it all for you and watch the markets every single step of the way. David the rest of the week will be just as busy in the middle of the week as earnings. We have it covered here on fox business. Dont have to go anywhere else. 4 00 to 5 00 p. M. Well see you back here tomorrow. Liz amazon, crocs, apple next couple days. We have the numbers here first on fox business. Money is next