Its stillness estimates. The Sales Forecast came up short as well. They were planning on selling a lot. Sales of the new apple watch were less than what analysts had estimated. Ceo tim cook says the company is pleased. Tim cook sales of the watch exceeded our expectation despite supply still trailing demand at the end of the quarter. To give you additional insight through the end of the quarter the apple one sold higher than the comparable launch times of the original iphone or the original ipad. 73 of old iphone users have not upgraded to the latest device. Plus, more than double, more than apple coming up in a few moments. Olivia boeings cash flow is surging thanks to the 787. Earnings beat analyst estimates. They lowered their forecast for the year. Also out beating earnings estimates. Increasing prices and cutting expenses. It is a nice combo. The price hikes helped offset falling sales in the u. S. And stagnant demand overseas. At ts proposed takeover of directv has cleared a hurdle. Tom wheeler has weighed in and urged fellow commissioners to approve the deal. The same time, he demanded the company do more to spread broadband use. Vote on the deal as soon as this week. And there has been a takeover in the medical device industry. They agreed to by sporadic which makes implants for hearts. It represents a pretty premium 40 . The average price in the past month. Stephanie this story is crazy town. Two Software Developers proved they camera mostly seize control of a moving car. The white hat hackers demonstrated their software for wired magazine. They were able to disable the accelerator and breaks even though they were over 10 miles away. They even tuned the radio. The hackers did not reveal the car manufacturer. They said their hack affects cars made by fiat chrysler. I hate that story. Those are your top headlines. That is legitimately terrifying. That is exactly why we need to have Drivers Behind the wheel. Olivia i will tell you i am not your favorite driver. But that story makes me worried. Lets give you the top five things you need to know. Howd you invest without knowing this . Despite apple posting is profit, shares best profit ever, the shares are lower this morning on a missed target for the iphone sales. Sales climbed 35 but the results fell short of the 48. 8 million shipments projected by analysts. The news is weighing on shares of apple but also global tech stocks. Just yesterday, this was a man who started tech banking with Goldman Sachs and he said it is way too soon to evaluate the apple watch. We have just seen it in stores. Come september, they have got upgrades coming, a new device, and the fact that so many users have not even gotten a new phone 75 of iphone users have not upgraded yet. Tim cook said the launch of the apple watch has been as successful as the ipad. That stuck out to me. I was surprised to hear that. Olivia my big take away was for the First Time Ever you heard tim cook talk about the crossover rate. Talking about competition for the First Time Ever, how many people were switching over from android. Number two, more tech earnings. Also falling in the premarket this morning, investors were not impressed with the results. The turnaround is still taking shape. The companys forecasting sales in the current corner below analyst estimates. In microsoft, the Company Posted its largest ever quarterly loss. The shares are down nearly 40 . Taking it on the chin again. But yahoo was interesting. Marissa mayers actually making a little bit of money here but she is eating a lot of expenses and paying to get that traffic for the yahoo search. Think about what they want to do in terms of contract creation. I do love yahoo weather. I do. Lets give you number three. Julie hyman. Have you ever used yahoo weather . Julie i do not think so. Im sure im not alone. Number three is commodities. Keep our eyes on that. The bloomberg commodities index slipping back to the lowest level in 13 years. And gold falling for the 10th straight day. That is the longest losing streak since 1996. There was also a call from gold commodities. The worst is yet to come in the prices fall below 1000 an ounce for the first time in years. You might want to listen to him. Also, the worldss biggest miner is falling this morning following comments from the ceo. Three of its four from materials. The slump in commodities has been incredible and it is not stopping. People are talking about china and i have got to give you number four. Seeing red today, those investors in china. The hang seng index to climbing already, becoming the worst performer this month. Investors are concerned the nations slowing Economic Growth will hurt earnings and state intervention in equities will delay market reforms. Think about all the big investors we have seen in the market super bowl up on china specifically the capability of chinese consumers. This decline were seeing cannot seem to find a turnaround. Olivia despite all of the money they are throwing trying to stabilize, shares down 9. 5 so far. Stephanie how does this girl do it every day . Olivia because chipotle ran out of carnitas. Chipotle posting secondquarter sales that trailed estimates. Now they are at 1 in the premarket. A huge move in the shares. At one point yesterday, they own as much as 10 in trading. What happened . The restaurant raised prices last year to offset higher beef costs and this credible critical pork shortage. Stephanie im never in the market to buy a car need up. Olivia you do not look like you have been eating many of them either. Stephanie it weighs like five pounds. Olivia same sale same store sales. Look at this. 4. 3 samestore sales growth for this quarter, well short of analyst estimates. This shows that you pull a dream story is petering out. Stephanie more news, how about that . On apple, the senior animist analyst at Piper Jaffray says this is an opportunity to buy and he joins us now with more. Why are investors punishing apple . It is the power of the whisper number. You mentioned in your set up the expectation 49 million iphones. If you are just 48. It seems like a nonevent but for investors, it means that even though it is just a slight miss, the idea that there may not the big upside in the future is why the stock is down today. I think this is just an overreaction. Stephanie is this not a wall street curse created by the prospect . Forget analyst estimates, how about a real investor looking at the companys true fundamentals for a change. It is a curse and unfortunately it happens with a lot of Successful Companies when they start to train investors to expect the big upside. I think it is a curse on days like today, but ultimately an opportunity because for investors that believe in what is going on, the bigger picture, market share gains if you believe in that, yes you have to put up with volatility on days like today, but there is an opportunity to own at a discount. Olivia comedy shares are left in apple for the rest of the year . We look at it over the next cycle. If you assume you get back to the margins that they had in previous cycles, there is about 16 upside. There is still some measurable upside just along the market profitability. And in the watch expectations are now pathetically low. So there is probably room some four surprisingly upwards numbers. How soon before we could actually evaluate the success or failure of the watch . Probably a year, not what investors want to give it. Think about how categories progress. I recall when the iphone came out, there were a few quarters were people thought the iphone would be a dud. This is a new paradigm. Wearables is Something Different than doing something for desktops or phones. It will take time for developers to build apps that are native for that. Over the next year as the highperformance apps come out that will start to build excitement. Give it a year. Olivia iphone sales grew 87 in china. Were calling this a disappointment. Our analyst was on earlier this morning saying the question is whether or not the slowdown in china is temporary or structural. How strong is apple in china . They are killing it in china. Talk about iphone growth. With 70 in the quarter. They showed a little bit of an acceleration. 30 of apple of apple is rob revenue. The only way to look at china negatively is to say, more impact than they would in the past. The good news is China Remains one of the biggest opportunities for apple. The market share is below 10 . Small changes can have material impacts to the business. Stephanie ipads. Part of the problem is starting to steal some of the ipad roles. It has been one of the bigger mysteries over the past year what is going on with the ipad. We think there is a larger factor coming out. I do not think that will change the narrative a category that is not very exciting. Stephanie do not go anywhere. We have a lot more tech to cover when we return. We will look at what Burress A Myers still needs to do to reboot yahoo . Stick with us. Stephanie the ceo of jet. Com will join us at 2 00 p. M. Eastern time right here. How about i give you some top headlines right now. Olivia Senate Republicans may try a new strategy for changing the doddfrank law. Senator Richard Shelbys is he wants to soft and doddfrank rules for regional banks. Blumberg news reports republicans may add his basel his proposal to an unrelated spending bill. That made democrats angry. They say the proposals weekend detections aimed at inventing another financial crisis. In greece, the parliament will vote today on the second packet of austerity measures. Once again, the Prime Minister will have to ask for support for opposition for lawmakers. His own party rebelled against new tax hikes. Just place the biggest order ever. 50 of these planes, priced about 10 billion. The seven 67 was developed back in the 1980s. Those are your top headlines. Olivia all i can think about is castaway with tom hanks. Stephanie is that with the volleyball . Wilson . Olivia yahoo is down, sales trading about 2 . The Senior Analyst is still with us. He has an overweight rating for yahoo . Yahoo revenue is rising 15 the highest quarterly increase in almost nine years. Can you say Marissa Mayer has gotten your out of the woods . Not yet because there are so many forces working against yahoo . The core business they are talking about. For example, the acceleration of video. Mobile is still something that is more of an opportunity. Facebook is doing all of the obvious things. You have got to give her credit that she has made a ton of progress in the last you. She is paying oracle and mozilla a lot of money to in that traffic. That is h strategic a strategic decision. I credit her for being progressive aggressive and have them think more. That is what she is doing. It is just what is going on with alibaba. That is probably more topical for a lot of investors today. Stephanie what is left former assistant terms of alibaba . They originally talked about the spinoff of alibaba being a taxfree event back in december of last year. More recently, the irs decided they would review this on whether or not this would be a taxfree spinoff. This is a big number. Essentially, they could not say much on the call last night because there is really nothing they can say. That means patience is a virtue here. We think ultimately, it will rule in favor of a less taxable event and that should be positive for yahoo shares. Olivia we looked even down the road, her legacy, will the key be the financial hearing . Unfortunately, that is probably how it stands today. The stock has gone up a lot under her tenure and a lot of that is how she has managed alibaba. Olivia what is yahoo . Is it a Search Company a video company, a content company . Is it a News Organization . What you think it should be . It is a content company and ultimately, whether it is sports , fantasy, financial, katie couric, all that stuff is content. Thank you. Do not go away. I just want to report on a deal. Home depot, 1. 6 3 billion u. S. Dollars currently owned by Goldman Sachs. It is based in jacksonville florida. 300 employees. Maintenance repair and operations water connectors and so forth. Home depot buying Interline Brands, 1. 65 billion from the private equity group. Back to julie hyman. Time for future in focus. Were watching gold as the route rages on. Gold futures are trading for a tense day in a row. The prices have fallen every session going back to july 9. As the fed prepares to finally raise interest rates, they continue to fall further out of favor. Bob, after the incredible downward run we have seen, is there a floor anywhere in sight . Resistance is very interesting. A lot of time people are looking for a floor to buy and cumulate things. It might work with Something Like apple but in terms of gold, when you see something rising as quickly as it did in 2007, you knowing move is coming. I am targeting as low as 850 sometime in the middle of next year because i do not think it is there any longer. They actually asked me about gold. I thought he was talking about i did not think anyone should be investing in gold at this point. Olivia is there any actionable investment to be made . Do you just forget about it and look at other stuff . You forget about it for now. He did two things for me about gold. It could reach that 1000 level. A lot of holders will take that opportunity to sell. That is selling out in the lower amount of purchases caught a lot of investors by surprise. You may want to get out or you want to accumulate the actual physical battle level. A shortterm 5 pop or a doubling of the price by 2020. Those are the only things you could do with a metal. It does not produce a dividend. Olivia do you see an opportunity anywhere in metal futures right now . Plus i like copper in the short term because it has the opportunity to bounds in a strong way than gold. What you are seeing in Dollar Strength potentially coming with the fed rising rates is you are seeing the potential for down the road, one thing we know about qe is it helps to boost the asset prices but is a lot slower with economists bid economists would benefit if they were more effective in china and japan than europe. Stephanie all right. Bob talking to us about futures on metal this morning. Not much optimism in gold expressed by bob or really anyone else at this point. Thank you. We appreciate it. Olivia jeff saying he thinks gold could go down. Time now for the top stories. We will start with apple. Apple had a big quarter, a huge quarter, by anyone elses standards. It just was not enough for apple investors. Shares are trading lower this morning, as much as 6 in the premarket. The company is posting record thirdquarter profit. Iphone sales rose by 35 . The issue was the sales missed analyst estimates. Sticking with tech, shares in yahoo are falling in the p market this morning. Forecast sales in this quarter missed analyst estimates. Marissa mayer has been trying to turn the company around investing in mobile features and video sales in the new areas grew 60 in the second quarter. Searches half of our business. We have been investing modestly here in algorithmic technology. In q3, we feel the platform was able to take on increased traffic. Olivia yahoo has benefited hugely from its 50 stake in alibaba. West week, this dinner a spinoff and shares. A big bet on an experimental drug for alzheimers. We will learn more about it today at an industry conference. The drug could be the first marketed treatment to keep alzheimers from getting worse. There is nothing on the market right now for dementia that has been proven to work. It is estimated they asked spending hundreds of millions of dollars to develop this drug. Workers in new york citys airports today say they are going ahead with a strike tonight. More than 1000 baggage handlers and Security Officers will walk off their job at the jfk airport. The workers want their pay raise to 15 an hour from 10 an hour and those are your top headlines at this hour area still to come much more including j. P. Morgan and the u. S. Government pointing the finger at the russian government last summer. It terms out they were dead wrong. We will find out who the digital misfits tied to the crime really are next. Stephanie it does look sunny and beautiful, but i will guess it is really sweaty. Not so sweaty here in new york city. Bloomberg headquarters where you are watching market make is. I am joined by Olivia Sterns paired Erik Schatzker is out sick and we are talking about one of my favorite subjects banks paired when jpmorgan was hacked last summer, the bank and u. S. Officials blamed the russian government for trying to undermine u. S. Financial systems. It turns out they were wrong. Authorities in israel and florida arrested four people for lowlevel security fraud crimes but who also have times to the jpmorgan hacks. Jordan robinson covers Cyber Security for Bloomberg News here you say this is not the arrest the fbi was hoping for. Jordan it is important to specify, when jpmorgan discovered a breach last august of last year titos pacific individuals were inside the banks to blame the russian government. Cap two Cyber Security executives. As the subsequent year has proven it was far from the russian government or the guys arrested yesterday, it is the equivalent of petty crime and the cyber crime world. We are talking about a few Million Dollars in stock fraud. It is clear investigators want the hackers behind the attack and they have oinked to the hacking attack. There is a big question in the case about where the actual hackers and what role did the folks who were arrested play. Stephanie walk me through the image we have up right now. Jordan this is an image of josh and anthony two of the primary suspects in the case. In moscow, only a couple of weeks ago. It is an important image because it shows these guys were traveling to russia a lot. Anthony is accused of running a bitcoin Money Laundering scam. Josh is accused