And today was one of the busiest days of all for profit reports led after the bell by apple. You also probably know that what the pros call earnings season is a game not of thrones but of expectations. Beat the wall street forecast and investors love you. Even your sales and profits are lower, maybe even far lower than they were a year ago. Well that is exactly what apple did and exactly what happened in early after market trading to day. Apple a stock you likely own in your mutual funds even if you dont own it directly blew past expectations. The Company Earned more than wall street reckoned. The revenue was stronger than analysts thought it would be and the company shipped more than 40 million iphones in the most recent quarter. Thats notable because analyst has been concerned that consumers just werent upgrading their phones as often as they used to. Here are the numbers. The Company Earned 1. 42 a share. That is four cents above expectations. A significant beat. Revenue came in at mor 42 billion, about 300 million above the estimates. Best of all, perhaps, management said sales for the fiscal Fourth Quarter look stron consensus. Presto, the stock took off as you see there in after hou trading. Now never mind that in this game of expectations and not of thrones, sales were down 14 from a year ago. And above 1. 42 a share, profits were 40 cents lower. And how about the iphone sales . Even though they were stronger than expected, seven million fewer were sold than this time last year. Presto. Lets turn now to dan morgan for more on apples earnings beat and what the results suggest about the health of the company and the iphone. He is senior Portfolio Manager at senovis trust. You and his firm own shares of apple. Welcome. Its nice to you have here, dan. Hi, sue. Youre bullish on apple. You have been bullish on apple. Give me the thumbnail take on this report in particular. Well, the fact that it was better than expected at least encouraging. Youre right on all the different matrix they look negative. But, you know, one thing i thought was really positive is gross margin came in at 38 . We didnt get a big drop off in gross margin with some of the new lower price phones coming out. As you mentioned before the guidance going into the Fourth Quarter was positive. And overall, you know, you talk about the game. It was better than expected. So the stock up is even though it was negative growth. A lot of people are pointing to release presumably later this year of an iphone 7. Whether they came out with the iphone 6, it was a huge boost to profits because it was a transformational phone. Bigger screen, more function, so on and so forth. Can the seven give them that kind of boost or a smaller one . Were optimistic that iphone 7 can. You look at the history you just mentioned iphone 6 and 5 also. Huge boost in the stock price. Huge boost in profits when those two releases came out. Were hoping that we can start to gain some momentum in fiscal year 2017. You remember they had the Fourth Quarter next quarter. Then they go into the First Quarter, hoping for about 74 million iphone sales in that First Quarter of 17. Start to ramp up for the new iphone 7. Even though there are a lot of doubters out there. That is reflected the doubters in the stock pe down this year 22 . Do you add to your position then, dan, if you are optimistic and still bullish . What are you going to do with the stock . Were still optimistic, sue. We own the stock since 2005 at a cost basis of 5. So its a huge winner for us. And so we look at opportunities when the stock pulls back to try to add shares in anticipation of the iphone 7 and some of the other things theyre doing. So we still feel that valuation is very low. It stradz around 10, 11 times earnings. Has a dividend yield over 2 . You get paid to wait for earnings to grow again. All right. On that note, dan, thank you for joining us tonight. Thank you. Dan morgan. Apple wasnt the only blue clip to report, far from it. Six other dow components released Quarterly Results this morning. Caterpillar, verizon, united technologies, due ponts and 3m all topped earnings exs while mcdonalds did as well. Its shares, however, came under pressure because of a slump in same store sales. That metric didnt measure up. The Bottom Line Results may have looked okay, all of the Global Companies at h. A Little Something different to say about their outlooks. Start with mcdonalds. It disappointed with global existing store sales growing only a little more than 3 . That was less than the 3. 6 investors expected. So the boost from all Day Breakfast may be losing steam. Still mcdonalds has now posted four straight quarters of positive sales. Beat revenues forecast. They dimmed the outlook for the rest of the year and announced more job cuts. Continuing r continued strength of the u. S. Dollar is denting catss global sales and hurting demand for its heavy equipment. Its been a clalging period. What im most proud of is the way our people are responding, the way were getting after cost structure and restructuring and getting through there in a way we never have in prior down turns. 3m also cut the Sales Outlook for the year blaming difficulties in the electronic and energy businesses. Especially in asia and latinmis. Dupont is among the dow components raising its forecast for the year. After surpassing expectation for both sales and profits. Profits rose almost 83. 5 in th second quarter. A planned merge we are dow chemical remains on track to close later this year. United technologies which beat the earnings and sales expectations also raise the its guidance. Politics figure into a climate of uncertainty these days and greg hayes thinks it will be a mistake to turn away from free trade agreements. Zblerve knows that free trade is what drives growth in this country. The loss of jobs in the Manufacturing Sector primarily driven by productivity, not by off shoring. And k as people understand the real causes of some of these reallocation of work to lower cost countries, theyll understand that we need to continue to support free trade. Verizons labor issues that seven week spring strike ate into sales down more than 5 . Verizon says it added 615,000 wireless customers in the quarter but thats a 46 drop from last year. Verizon missed revenue estimates but did manage to whip forecasts on profits. Heres how those companies performed today. Cat, utx, they were the top performers, dupont also higher as you sigh there. 3m, verizon, mcdonalds did decline in todays session. Earnings season so far does not appear to be as bad as feared. But its not great either. The decline in profits is just slightly better than what we saw in the First Quarter thanks in part to strong results from the banks. But now another part of the market is raising some concerns. Bob pisani explains. Reporter recent decline in crude oil may be a serious problem for earnings in the second half. Oil which is trading between 45 and 50 for past two months is now trading in the 42 range. That wasnt supposed to happen. Oil is supposed to stay in the comfort zone between 45 and 50 and then just gently rise in the second half of the year. At the same time, oil Company Profits were supposed to bottom in the First Quarter, improve in the second and Third Quarter and then dramatically improve in the Fourth Quarter as Firmer Oil Prices pulled everybody up. But oil isnt cooperating. Demand for gasoline is strong. But refiners have produced so much of it there is a glutton the market. Thats pressuring oil prices. Now this morning Morgan Stanley said oil could move into the mid 30 range once again. Now if that happens, earns estimates for all the Oil Companies will have to come down because those earnings are base ond higher oil prices. This morning the ceo of bp said he expected oil prices to average between 50 and 60 a year going into 2017. Lower oil Company Profits is a big deal because it will likely take down estimates for the whole s p 500. Traders are expecting the estimates to turn positive in the Third Quarter after four consecutive quarters of negative earnings growth. So to justify stocks at historic highs, the bulls need to argue that earnings are improving and declining oil is not helping. For nightly business report, bob pisani at the new york stock tp again today the declining oil prices. Produced a mix day on wall street. Energy shares under pressure as investors comb through allst earnings reports in the Federal Reserve began a two day policy meeting. The Dow Jones Industrial averag. Nasdaq, however, light on energy companies, added 12. The s p 500 gained a fraction. As for oil, domestic crude fell. 5 to settle just below 43 a barrel. To the economy now. Americans purchased new homes in june at the fastest pace in more than eight years. The Commerce Department reports that new home sales rose 3. 5 last month and thats the best level since february of 2008. Low mortgage rates, solid job market and tight inventory have helped lift the real estate market. A separate report showed a more than 5 rise in home prices in may. According to the s p 500 index that, is down just slightly from the prior month. A gauge of how americans feel about the economy held steady in july. The Conference Board survey of Consumer Confidence virtually unchanged from june. The reading considered to be a sign that Consumer Spending could continue to support the economy in the second half of the year. Consumer spending makes up about 70 of all economic activity. And while the latest Economic Data is positive, its unlikely to sway central bank policymakers. An Interest Rate hike sun likely when the Federal Reserve releases the policy statement tomorrow. And as Steve Liesman tells us, wall street expectations are changing dramatically. Reporter big changes in the cnbc fed survey. Lets get it to n the prior survey in june, the street was looking for the next rat hik co. That is now plus three months. The next rate hike seen in december of 2016. And now when will the fed allow that big 4 trillion Balance Sheet to decline . Its after. When will the fed stop hiking Interest Rates . It had been thought the Fourth Quarter 2018. Same now. Look at where they think the fed is going to stop. Had been 2. 6 . Now its just 2. 4 . So lower Interest Rates for longer for next year. This looking for a 1. 2 fed funds rate up from the current. 37. Now looking at the stock market, you can see the street seems to believe that most of the gains already built n a big come back from where we were that concern about the economy and recession in january is giving away the better stocks. Looking for the outlook for 2016, most of the gains are thought to be built in only a 4 gain in stocks through 2017. But taking a look at Interest Rates, they continue to bring down the expected Interest Rate of the ten year yield. Currently trading around 1. 6 . Seeing only rising 1. 8 next year and 2. 25 in 2017. All of that comes with the same 2 or a little bit better growth that weve had over the past several years, since the expansion began. The outlook for gdp this year, just 2 . Rising to 2. 25 in 2017. That is the expectation among our 43 respondents who include economists, Fund Managers and analysts for infla. 1. 6 this year. Rising a bit to 2 in 2017. Some big changes in the expectations for the president ial election. For last two months, the survey showed an 80 belief that Hillary Clinton would win the white house in november. Thats now falling to 52 . Donald trump, hes up a bit. Had thought 15 had thought he could win the election in november. Now thats just up to 26 . But a big change can you see right there is the dont knows up from 5 to 21 . For nightly business report, im Steve Liesman. With wall street less certain of a Hillary Clinton victory in november than it was a month ago, the Democratic Party prepares to formally nominate her for president. Uniting behind the first female candidate to represent a Major American Political Party at the top of the ticket. Tonight clintons husband former president bill clinton will be on stage to make the case for hillary. John harwood is in philadelphia for us to night. John, in a party thats being pulled to the left by Bernie Sanders supporters, is bill clinton a centrist still the sure fire rock star hit he once was . Well, the party moved to the left. But the center has moved to the left. The country has changed. Its a different makeup. Comet is different. We have more income inequality. So bill clinton is not going, however, tyler, to focus his remarks as we understand it on the Economic Issues themselves. Hes going to try to paint a very intimate portrait of Hillary Clinton as somebody who is committed her life and career to fighting for women, for kids, for social justice, trying to lift some of those unfavorable personal ratings that are weighing her down in this race right now. Some enthusiastic delegates in the role call vote behind you here, john. As that progresses, do you anticipate it will go smoothly . I do. And all the signs are in that direction. Last night Michelle Obama electrified this convent by saying i live in a house built by slaves and now my daughters play with their dogs on the lawn. Pointing that that history making breakthrough they made eight years ago. Hillary clinton was nominated by john lewis, the civil rights hero. Bernie sanders is also nominated and you had a lot of energy in the hall but it was positive energy. What was the reaction to the conventions first night last night and i know mrs. Obamas speech was widely praised. Her speech was widely praised. Less so for elizabeth warren. Bernie sanders did what he needed to do for Hillary Clinton. Cant trust polls in the middle of a convention. We dont really know voter reaction. But if you look at the raw viewership totals, Hillary Clintons convention on the first night got 26 million viewers. Donald trumps last week, 23 million. All right, john, thank you very much. John harwood reporting from philadelphia. Still ahead, rough quarter. Twitter did something for the First Time Since going public and Share Holders are not twitter stirring up dispinlting results. The weakest Revenue Growth since the ipo back in 2013. It lowered the outlook as it strugglew its user base. When it comes to earnings, twitter reported better than expected results after adjustmentes of 13 cents a share. Estimates were for ten cents. Revenue of 600 million, though, was shy of expectations. And investors were not impressed. The stock sold off sharply in an initial after hours trading as you see there. Julia borsten has the one key take away from the quarterlies. The key factor weigh on twitter shares, the companys slowest Revenue Growth since twitter went public in 2013. With more revenue headwinds ahead. Not only did twitters revenue fall 5 million short of pro jectionz, the companys revenue outlook for the Third Quarter is far short of expectations. Twitters coo telling me that while theyre seeing advertisers shift over to twitters video ads, that marketers are not increasing their budgets just yet. Bane was bullish though that there is some good signs ahead for twitters advertising potential with the Live Streaming deal with the nfl coming up. Bane saying they have seen really Strong Demand for those ad packages. But not enough demand for the company could issue more bullish guidance. For nightly business report, julia borsten in los angeles. Profits fall 60 at under armour. The athletic clothing retailer said the impact of the closing of the rivalal Sports Authority drags down the earnings. But even, so the results fell in line with estimates. Revenue was better than expected and was helped by Strong Demand for Sports Apparel and basketball shoes. Under armour finished the day down 5 . Drug maker elie lily saw both profit and revenue rise in the latest quarter. Sales were better than expected. Earnings fell in line with estimates. The companys ceo was happy with the results. Were pleased with revenue this quarter. We grew 9 . I think its important, 8 of that was volume growth and of that 8 , 6 came from new products we launched since 2014. So this is exactly the trajectory we want to be on. Elie lily shares rose 11 ce 82. 09. Mobile i which makes Self Driving Car Technology is cutting ties with tes l. A. They said they will continue to support existing product plans with the Automaker Tesla but will not enter into any new agreements. They want to create technology for fully autonomous cars. Shares fell 8 to 45. 33. Lower fuel costs helped lift profit and revenue at jetblue. The airline beat earnings expectations but sales were a little light. The company also said they may begin offering routes to europe. Jetblue shares took off to 18. 67. Anheuserbusch has sweetened the takeover bid for bridish rival sab miller, the maker of bud and stella beers. They raised the r after the drop in the british pound caused miller shareholders to raise concerns over valuation. Shares of anheuserbusch up a fraction at 126. 60. Free port macmoran missed earnings estimates by a penny. Revenue wasnt good enough to top street targets in addition the company said it plans to sell up to 1. 5 billion worth of shares in an effort to trim debt. Shares up 2 on the day to 12. 68. And panera saw the profit fall as costs associated with refranchising some of the restaurants weighed on results. But the bakery chain still managed to top estimates. Shares rose after the after hours news offsetting a 4 drop during the regular session where it closed at 207. 61. Profit and revenue up at finteen as the Health Insurer added new members and benefitted from a acquisition. Results were ahead of estimates. The company said they set aside 300 million to cover potential losses in its individual commercial businesses in arizona. And that8 . Still ahead, why a Chinese Company you likely never heard of is making a big move into americas test hub of Silicon Valley. Heres a look at what to watch tomorrow. Boeing reports earnings continuing the parade of quarterlies from dow components. The Federal Reserve will issue the decision on Interest Rates and central bank expected to leave rates right where they are. The statement will be scrutinized. For clues that a hike may be coming soon. Pending home sales will give us another read on the Housing Market and that is what to watch for wednesday. Fiat chrysler is changing the way they count the Monthly Sales figures. The 75 consecutive months of sales gains actually ended almost three years ago. The decision to change the calculation comes amid reports that it was overstating the monthly talley. Fiat chrysler confirmed that its under investigation by the sec and received inquires from the Justice Department over the way it counts for vehicle sales. A china eeg tech conglomerate is making a push into the u. S. And specifically into sill con valley. The echo is spending billions to buy a u. S. Company and it also recently maud a big real estate purchase. It has a number of well known tech firms taking notice. We have the story. Reporter Silicon Valley has a ne town, chinese based lieko, the netflix of china, announced plans to purchase u. S. Electronics maker vizio for 2 billion. Under the deal, theyll overtake the hardware and Software Business while vizios data business will spin out as a private company. It is a tech power house in china and the top tv c provider in the country. Vizio is the top seller of hgtvs in the u. S. With vizio in the fold, theyre better positioned to execute the global strategy and expand the presence in the u. S. They plan to launch smart phones and tvs in the u. S. And has a self driving car designed to compete with teslas model x. The ceo who is considered the steve jobs of china for his big push on innovation spoke exclusively to cnbc about the acquisition and his companys plans for the future. Translator after the acquisition of lieko and vizio, well insert a great influence. We hope through the synergy between the two companies we can lead the tv industry and the internet industry into a new age. Call it the ecosystem era. The news come just weeks after the 14 billion tech Company Expanded its footprint here in sil Silicon Valley snag prime real estate from yahoo. Theyre scouting for local talent but plans to double the workforce by the end of the year. Translator we hope that in the future not so far away we can bring entire ecosystem model to the u. S. And bring a brand new value and service for the american users including our phones, le tvs, even our cars and cloud services. Reporter in april, h e market. E phones are outdated now with the foothold in Silicon Valley, he wants to go headtohead with apple and google in air then backyard. For nightly business report, im adidi roy. The Scientific Community may be seeing the rewards of the ice bucket challenge. Two summers ago you might recall people dumped ice water on their heads, posted videos and challenged others to do the same as a way to raise money for alsn total, 115 million was donated and some of that money went towards a Global Initiative to study that disease and now as a result of that research, a new gene has been identified that contributes to als. The discovery could help identify a potential therapy. That is my favorite story of the day. That is good news. That is good news. That is really good news. Want to do the ice bucket challenge . Sure. Keep doing it. Raise more money. That does it for us on nightly business report. Im sue herrera. Thank you for joining us. And thanks for me as well. Im tyler mathisen. Well see you right back. Luesy male 1 his teeth are broken. male 2 so what . Lets just wait for the postmortem report, shall we . male 3 theres my girl. male 4 good evening, mr. Powell. Welcome. Sergeant fenton, its good to see ya. 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