Transcripts For CNBC Closing Bell 20240622

Chipotle gopro. Those numbers over the next hours and bringing you them after 4 00. It just doesnt get better than that. Plus time to sell tesla maybe . A bold call from a ubs analyst downgrading that stock to sell today. The man who made that call coming up. It has been five years since the dodd frank financial reform bill signed into law. Barney frank will join us to discuss all the criticism the law has received including from members of his own party. Enjoy having barney on the show. First we start with this move in the Broader Market today. There is the dow down 214 points. Its getting hit the hardest. United technologies down more than 7 downgrading its own outlook for the year. That bad Earnings Report from ibm last night has been down 5 6 today. That is accounting more than half that decline. S p pulling back. The nasdaq down today so right now no alltime high. S p earlier was three points away from a record. Weve come about a half percentage point down away from that point. Joining our closing bell exchange, we welcome james liew and peter costa and rick santelli. I think its a good thing. I like to see the internals earningswise. There will be days well be up significantly because positive earnings, days where we are down like today. Apple, obviously people are anticipating possibly not making those numbers. The market and the stock reacted a little bit on the south side. This is good though. I do like this churning. I like to see volatility in the market. I like to see because of earnings not because of some external china or greece. James, what do you make of the weaker earnings . Especially ibm . It does appear overseas concerns in china and emerging world are taking their toll on American Companies . We need to keep in mind the u. S. Stock market is back to where we started before all these Macro Economic risks began. It is heartening to see volatility is driven by fundamentals for companies. It is still the case u. S. Earnings will be down on a year over year basis. We know why that is. That is because of the u. S. Dollar strengthening and oil prices plummeting. Weve been talking about hard landing versus soft landing for a long time. Wont be until later this year probably the Fourth Quarter we see many of these effects start to dissipate. Rick oils come back today. Gold continues. Its now below 1,100 an ounce. I cant believe im asking this and you are not. Everybody convinced themselves that the dollar is only going to get stronger and commodities are not the place to be. Are you convinced the dollar will be that strong down the road here . Do you think the fed will normalize rates . I dont see a pathway with the fed raising rates the first time in a long time and thinking the dollar is going to go down. It becomes partially kind of trying to calibrate the countrys going one way that are easing like hungary and some of the emerging markets outside the uk and the u. S. That is an important dynamic. Left to its own device without the central banking issue, i think the dollar may have a hard time. Even though china is such a macro issue that nobody can get away from and we revert our attention to earnings i still think china is the music that the Global Economy to some extent marches to. If you look at a 20year chart, it correlates very nicely. Especially in the 07 08 period. Its gone out of kilter. Its gone in an inverse relationship. Chinese are manipulating their equity market. All roads lead to that. One thing remember its getting close to 2. 12 but settled at 2. 30. On a 20year chart, whether its the lows or highs, there is a lot of action around the 200 level. People need to get their perspective on some of those areas. We are seeing the S P Energy Sector is the only one green today amid this broader selloff on the bounce in oil. Would you be buying some of these beatenup energy names . I do think its just a bounce. I dont think anyone is calling the bottom in oil at this point given iran that news is coming on line. We still have a supply dplut in this country. Im not ready to call a bottom there yet. The Energy Sector is one of the most expensive sectors in the s p. Not just because prices have fallen, but more importantly, earnings have fallen 60 . The way to play energy is from a stockpickers perspective. I would not be buying the sector. For all i know you are still out of this market. Are you . Yes. Would you look at energy a place where you could maybe pick up a few bargains . I would be a stock picker in the Energy Sector. I think there is value there. It is a risky play. There is down side potential. I dont think the down side potential is that much. I would be very selective. I always liked exxon. Longterm exxon is the greatest company this country had in probably the last 50 years because of think their view point is 10, 20, 30 years out. Its extremely well managed. Well talk a lot shorter term i do think there is a lot of decent picks if you really do your homework. Thank you, mr. Rockefeller. Thank you. Thank you, gentlemen. Apple releases earnings in the next hour. Well find out if the apple watch was a big hit or not. Sort of. I guess well find out. We will. Josh lipton has the numbers to watch from apple headquarters. It is not expected to have a big Financial Impact on results, but certainly analysts and investors are very curious about how the apple watch is performing. Remember in that earnings result, that report apple is not going to break out watch shipments as they do with the iphone or the ipad. That is unusual. I talked to one wellknown apple analyst. He couldnt think of another product where they didnt break out apple shipments. Instead they will lump that watch into the other product category. That is a category that will include the ipod, apple tv and beats accessories. Analysts then have the tough job having to try to guess as best they can how much money apple is making off the watch. Piper jaffray Analyst Thinks apple sold 3 million watch estrogen rating 1. 5 billion in revenue. Analysts are quick to stress that the importance of the watch here near term is not so much about Financial Results as it is about apple proving that it can still move quickly into brandnew product categories and attracting a lot of new fans. We might have a bet ever sense if thats true after the bell closes today. Thats why i said sort of. We are just going to have to try to figure out buried in that others number what the watch did. In terms of iphone sales in china, i know thats another big question mark. With recent volatility there, can they keep up 70 growth in this market . That is a great question sara. If you look at the Greater China region talking about china, taiwan and hong kong no doubt booming. Sales in that region jumped more than 70 to nearly 17 billion. You saw that stock market swoon. The worry is does that cause a Ripple Effect in the broader chinese economy then hurt apple sales . I will say that polling different analysts they are concerned, but think it will have a limited impact because they point out equities in china represent only about 12 of Household Financial wealth, if you include property. They will pay close attention to q4 guidance to see if there is impact of a slowing china there. Thanks josh. Well be on apple watch. That was too easy. Fueling water cooler talk that an apple car may be in the works again. Phil lebeau has been looking into this story for us. What is interesting about this hiring is because it is a former Auto Industry executive of some note, doug betts worked for Fiat Chrysler till september last year. Its his job further fueling discussion today. He was in charge of quality between 2009 and 2014. He was part of the executive council, the Management Group that runs Fiat Chrysler. He left for personal reasons last october. Only a couple of days after the Consumer Reports quality rankings came out for september of last year and Fiat Chrysler brands got hammered. When you look at apple shares people say what is doug betts doing for them . The company is not commenting and its unclear whether he is working with that Auto Development program or some other program. It was just la year at conference where a Company Executive dodged the question about whether or not apple is developing and planning on building a car. The car is the ultimate mobile device isnt it . We explore all kinds of category categories and well certainly continue to look at those and figure out which ones are ones we think we could make a huge difference. If apple is not commenting on doug betts and there is no announcement, how did it come out . It was listed on hid Linkedin Profile he was working at apple. You try to find his profile now, the profile cannot be found. Shocking. A lot of questions today. Might have prompted him or somebody to say take it down for a while. That is hilarious. When they hired Angela Aarons they made a big deal about it. They had a no comment when you asked about whether they hired her. Its all very secretive. What exactly are they planning to do when it comes to the automobile . Do they plan on simply developing systems that then can be plugged into other automobiles built by other manufacturers . They have car play which is gaining traction or do they have bigger plans in terms of saying this could be the appliance of the future lets manufacture an automobile at some point. It strikes me you were in ann arbor yesterday talking about how the big automakers are trying to show Silicon Valley they are on top of this next trend. What is the view on apple and google potentially getting into the car business . They are watching them very closely. They are watching them extremely closely. Look at the automakers that now have Development Offices in the Silicon Valley. That is not by accident. They realize there is so much talent and such focus in the Silicon Valley on automobiles and the future of transportation, they want a play in that. They realize Silicon Valley is not necessarily going to come to south eastern michigan. Thank you. Great story, phil lebeau in chicago. You might have hoped they would break it down car and sales. You never know, with the beats head phones and others. We have a selloff. Down 209 points on the dow with 47 minutes left in the trading session. S p down 10. Nasdaq down 11. A title wave of earnings hitting wall street right after the bell. Especially technology. Talking apple, microsoft, yahoo among the big names reporting. Well bring you their results. Guidance from the companies and any other headlines along with the after hours reaction. Get your popcorn ready. Cant wait. Also barney frank weighs in on the sweeping financial reform law bearing his name. Today marks the fifth anniversary of dodd franks passage. What he would have done differently. You focus on making great burgers, or building the best houses in town. Or becoming the next highlyunlikely dotcom superstar. And us, well be right there with you helping with the questions you need answered to get your brand new business started. Were legalzoom and weve already partnered with over a million new Business Owners to do just that. Check us out today to see how you can become one of them. Legalzoom. Legal help is here. More red than green on our dow 30 heat map. The worst laggards topping our movers today. That would be United Technologies tracking its worst daily drop in four years. The company that makes elevators and aircraft engines cut its full year earnings outlook citing Slower Growth in china and posted a surprise drop in sales due to the stronger dollar and lackluster aerospace demand. Ibm posting its 13th consecutive decline in quarterly revenues continuing to overshadow the growth and Strategic Initiative in Cloud Computing and data analytics. Youve got more than a 100 point decline on the dow. Shake shack not in the dow. Gearing up for a Second Public offering. The Company Estimated to raise almost 200 million. The stock was down on the news premarket. Shack rebounded nicely in todays session. Look at that up more than 6. 5 . One of the standouts in todays selloff. Our next guest thinks shake shack is worth 20 a share at best. He put out a note back in may on that citing why he thinks it is a bad investment. Stock has fallen about 40 since then. Joining us right now on this is keith fitzgerald. Welcome back sir. Yesterday, last night when they announced the secondary offering, stock was down 4 5 but back up 6 today. What do you make of that before we get to the reasons you dont like the stock here . People are bargain hunting trying to play off the streets actions. They are fishing for fish they dont want to catch. Why dont you like shake shack . They make great hamburgers. That is not conducive to good profits. Nothing against the shack. I love eating there they have rising labor costs, rising material costs, pe is totally out of line. If it was trading at the pe mcdonalds was trading at you would be talking 66 Cents Per Share. A couple hundred Million Dollars at best in revenue. You know this environment. People are paying up for growth companies. You look at tesla. All these companies. Bulls would say shake shack has great brand many presence. Those are excellent points and valid. What im saying you are talking about technology that can fundamentally change the way our world works. A hamburger is not going to do that. It can fundamentally change the way the world eats at a time when mcdonalds has been losing share. So have the other big chains dominant in this country for decades. Again. I hear what you are saying loud and clear. Ask what the American Consumer is doing right now. The American Consumer is pinched. Most chains are trying to go upscale. What you are seeing is an American Consumer spending less that wants more value on the menu. A 9 or 10 hamburger doesnt get them there. Mcdonalds could make a play. Mcdonalds is having trouble. That ought to be significant indicator as to why you should not touch a chain like this unless you want to be a speculator. As an investor i dont think so. We showed the map. Theyve only got 42 locations. Exactly. They only have one place to go to grow dont they . Up. I dont think so. People made that argument about krispy kreme. They made that argument about a lot of companies. You cant confuse hope with a bible investment strategy. Nothing against the shack. Fantastic hamburgers. Im surprised, keith. A lot of analysts put out bearish notes saying to sell but that was based on valuation, that the stock was getting too ahead of itself and too expensive. They were concerned that the lockup expiration is coming next week. You cited neither of knows facts. Those things are well known. If you are paying attention to the numbers, well established, i dont have a problem with those reports. The stock is hopelessly rich. Its priced like it should be on another planet. Fundamentally, you are talking about a company that has limited size, very expensive menu difficult to scale. Model is complicated. That is not a winning recipe when it comes to the bottom line. All right. Good to see you, keith. Thanks. Thank you. The bear case on shack. Less than 40 minutes to go before the closing bell. Looking at declines across the board. Dow getting hit the hardest thanks to two big losers. Utx and ibm. United technologies and big blue. Both down more than 7 . S p 500 off about 0. 5 . Nasdaq composite coming off that record high. Just marginal losses here down 11 points. Can you believe this . Dodd frank law marking its fifth anniversary today . Barney frank will speak with us exclusively to celebrate. Dow down 210. We are watching shares of lender and trade finance company cit. Trades spiking up by about 2. 5 towards their best levels of the day. This after the office of the comptroller of the currency granted conditional approval for cit bank to merge itself with one west bank. Remember last summer one west agreed to be taken over by cit. What this transaction is going to do is create cit in a bigger way by adding retail branches and more of a retail and commercial banking franchise. Thats customer facing not just for Companies Looking to get loans or finance their accounts receivable. Conditional approval granted by government regulators. Thats why cit shares are up. Back to you. Thank you, dom, very much. Today is the fiveyear anniversary of dodd frank. The farreaching financial reform law spawned by the crisis that began with the collapse of Lehman Brothers. The fed Just Announced Additional Capital requirements for eight of the biggest banks. Joining us in an exclusive interview, barney frank, coauthor of dodd frank, former chairman of the House Services committee and cnbc contributor. Thank you. Are you surprised to see how much criticism and how controversial this bill is five years post . The current chairman of the house financial Services Committee writing in todays wall street journal that dodd frank is a big failure. Im not surprised he said that. Hes taken the position for a long time that no regulation of the Financial Community was a good idea. I quoted in the book i wrote with his criticism of us specifically for borrowing the subprime loans that were so irresponsible. I believes we were wrong when we started drafting that bill when we started reacting to the crisis, we were guided a lot by ben bernanke george bushs appointee to head the fed, hank paulson, secretary of the treasury. Paulson left bernanke stayed on and sheila bair. They were all people who spent a lot of contributed a lot to the bill. Im not surprised. Mr. Hensarling is in a position where his extreme conservatism has him in a war with the speaker. Hes off to the side. So no it doesnt surprise me hes still where he was in the midst of the crisis. Let me quote from that oped. Its not a real specific reason but it sort of sums up what he thinks is wrong with dodd frank. He says it is gradually turning americas largest Financial Institutions into functional utilities and taking the power to allocate capital away from the free market and delivering it to political actors in washington. Is the government too involved in the world of the big Banking Industry right now . Let me quote in refutation to that, jim gordon. There is a great headline page b56 todays New York Times business section. Morgan stanley profit rises 13 chief credits u. S. Economy. Apparently they havent been choked off by this bill what we do is not to prevent the Financial Institution from doing anything theyve been doing before except give loans to poor people i love but shouldnt given loans they couldnt replay, over mr. Hensarlings objection. What we had a problem was with aig, which incurred 185 billion in debt and credit default swaps, didnt know how much they owed and couldnt pay it back. We dont like people lending to others and then selling the entire loan and having no responsibility at stake if the loan doesnt pay off. Lets have Capital Requirements. We dont tell a bangor Financial Institution not to take a risk. Dont take a risk unless you can stand behind it. But the unintended consequence of the bill and one is all this concern about liquidity and the ability of banks or lack of ability of banks to make markets, especially moves like last october. This idea that the rule which banned banks in prop trading is hurting liquidity. When did the volcker rule take effect . Today. Tell me when its my turn. Go ahead. So you are blaming the volcker rule for something that happened last october. Secondly, you said moves like last october. No. That was a onetime deal. There was a onetime problem with liquidity. It did not do tremendous damage and hasnt recurred. He was right when he said sacrificing all kinds of values to liquidity is a mistake. I do not think there is anything in our legislation that caused that problem. The argument would be the Capital Requirements were too tight. If Capital Requirements are too tight over time you can loosen them some. That is the moral of that situation. The behavior has changed in anticipation of it. No. They did not stop doing things in terms of market making. By the way, the volcker rule stops banks from doing this trading for their own benefit and their own profit. Explicitly allows them to do market making. We have to go here quickly. Let me ask you about the living wills that came up a lot. On the republican side they dont like these living wills. They think it turns the government into puppet masters for the banks because they are dictating how they are going to unwind if they dont like what they see in these living wills. On the other side your colleague from massachusetts, Elizabeth Warren is skeptical if they go far enough what do you make of the brouhaha . I never thought they were a major part of the bill in any case. I want to have Capital Requirements. I want to have restrictions on people taking risks unnecessarily. The living wills dictate how they unwind. Yes. If the institution fails. These living wills dont require you to say we are going to take you apart now. What they are trying to do is say if you have another situation where there was a Lehman Brothers or aig, if you have a failure and the federal government steps in because there is no more too big to fail. If a Large Institution gets in over its head it fails, it is resolved, which means dissolved. Interesting semantic thing. This tells how it will be dismantled. The other topic du jour beyond the fiveyear anniversary of dodd frank is 2016 president ial election which is kicking off. s specially endless comments we are getting from donald trump, very controversial. I would say this as a democrat. I am not a religious man, but i am looking to some being whom i can offer thanks for donald trump. Because irtts making it easier for the democrats . Harder for republicans. Here is the problem. Its the degree of appeal he has to their primary voters. This is an indication there is something about a lot of republican primary voters that troubles me. There is a meanness there, an instinct for being angry about other people. I think if i were a republican and had to win a primary among those people i would be very troubled so many have decided they like donald trump. It is not lost on us you mentioned your book twice. Good subtle marketing there. Ill finish it for you. Didnt tell the title. Im about to do that. Its called frank. Im on the record saying its a terrific read. We enjoy having you on the show. Thank you. Good talking to you. Time for a cnbc news update with courtney reagan. Good afternoon. Apple services are back online after a threehour interruption. 12 Apple Services were affected including the app store itunes, apple music and apple tv. Apple hasnt said what caused the problems. Citigroup will refund 700 million to consumers and pay a 70 million fine for illegal and deceptive credit card practices. The Consumer Financial Protection Bureau says citi has to issue refunds to nearly 9 million consumers. The white house flag was lowered in half staff to the five Service Members who lost their lives in the chattanooga shootings. President obama ordered the flags lowered prompting criticism from republicans. Archaeologists retrieved a 2,000yearold canoe from a river in slovenia. Its exact age will be determined after further examination. That is your cnbc news update. Back to you. Thank you, courtney. Heading to the close. Coming back a little bit. The dow down 185 points. It was down about 220 at the low. Quite the discrepancy between the s p 500 and the dow. S p was down less than 0. 5 . Weighting of United Technologies and of ibm. And apple not helping either. True. Up next, the ubs analyst who cut teslas rating to sell. What was behind that downgrade. En Power Outages in the us are caused by weather. But utilities can now predict where the power will go out, within a few city blocks. Working with ibm theyre combining micro weather forecasts with detailed data from local sensors. To predict where outages are likely to occur. And send crews exactly where theyre needed, when theyre needed. Ibm analytics from the internet of things is making energy smarter every day. Less than a half hour to go before the close of trade. We are kneedeep in earnings. What are you going to watch into the close . Those stocks that are going to be reporting near term whether its today or the next couple of days you have to focus on. Thats where the action will be. At the end of the day you have major liquidity event of the final trade. A lot of guys play that trade. We are starting to see it. Some volumes appear elevated in certain names. Is where the bias . Its to the down side. You cant get fooled by the market down. Its two stocks. Yeah. Used to be ibm ran the market. You have yahoo and apple after the close. Maybe guys pulling back. A lot of guys saying there shouldnt be any surprises there. Apple should be a trend setter. Well leave it there. Thank you very much. Wall street getting tough on tesla. Ubs has downgraded that stock, did it today to a sell from neutral on expectations that growth in both storage and auto volume will disappoint. Ubs is the third Investment Bank this month to downgrade the electric car company. Lets bring in the analyst who did the report today. Good to see you. Thanks for joining us today. Thanks for having me on. Do you think the stock was getting ahead of itself . This is partly a valuation call. Its had a 40 run since the end of march. I think a lot of the estimates out there for storage growth are ahead of themselves. That market will take longer to unfold. Talking about the new powerall battery so many investors were optimistic about. You also said expectations are high for auto sales, as well. On the auto side what is the stock pricing in . Looks like its pricing in 1. 5 million units. That is an aggressive outlook in terms of what could be achieved. That is based on assumptions they could hit their margins. You need to believe in stellar auto growth. Thats clearly part of our downgrade today. Im struck when people would say they were buying tesla, they would say its because of elon musk. They were betting on the man, not the company, per se. As an analyst you have to have a fundamental view on valuation. You go into the second half of the year and see if they can hit the delivery targets. Well see how r d costs ramp into next year. Thank you for joining us. With the stock up more than 20 . 40 gain from late march to now. 18 minutes left. Dow up 180 points. We have just 20 minutes. Down 180. What did i say . Up i think. Down. 20 minutes away from the explosion of earnings. Here is a simple math problem. Two trains leave st. Louis for albuquerque at the same time. Same cargo, same size, same power. Which one arrives first . Hint its not the one on the left. The speedy guy on the right is part of an intelligent system that creates the optimal trip profile for all trains on the line. And the one on the left . Uh, looks like itll be counting cows for awhile. So maybe the same things arent quite the same. Ge software. Get connected. Get insights. Get optimized. Shares of Td Ameritrade trading lower today, despite beating analyst expectations for earnings, the company did miss slightly on revenue. What is behind these numbers and especially strong numbers when it comes to trading. Right, which we were expecting. We welcome back Td Ameritrade ceo fred thompson. Welcome back. My pleasure. This is a busy time right now. We dont get that lull we used to get. Through the summer trading has been strong in july. Weve seen the greece situation, seen surprises on google earnings seen surprises on netflix. That created volatility in the market, which we havent had much in the june quarter. What happens to your earnings if Interest Rates do go up . If we do get a rate increase in the fall . I would think that would be helpful. You have net interest margins. Us and our peers would be one of the more intrasensitive stocks in the markets. If Interest Rates went up 100 basis points, a sharp move, parallel shift in the first year would add 38 Cents Per Share. She is talking about raising rates at a very slow pace. I would not predict we are going to have 100 basis point shock in Interest Rates. Youll see a gradual rise in the fed funds rate. I dont know what time that is going to start. I dont think the yield curve will move as much as people might think. You have 6. 5 million client accounts. How long are Retail Investors when it comes to stocks . Right now, i think Retail Investors are fully invested. If you look at our results, our investor moving index is rising. They are more bullish. Cash allocations are low. Margin lows are a record. Its not a surprise. We had the third longest bull market in the history of the s p 500. Its not a surprise that people are fully invested. What are they doing in bonds right now . Not much. Staying short. What are they doing in apple . Is it still the most Popular Holding . Still the most popular stock. It gets competition from google and netflix every once in a while. Apple is clearly the most widely held stock. Have you seen appreciable pickup . We were surprised with positive trading during the quarter. Intraday volatility was the lowest, 1 move was the lowest since december 2006. We didnt see that volatility. Trading was good. People rotated into options and futures. We are certainly seeing a pickup in july with earnings season. You expect the volatility to continue . I have in my view chairman yellen starts to change Interest Rates, i think you are going to create volatility in the market. One ceo tells us every night he dreams of a rate increase from the fed. I dont dream any more. Good to see you, fred. More than ten minutes to go before the closing bell. Looking at the dow off the lows of the session. It was down more than 200 points. S p 500 down 0. 4 . Art cashin signalled the bias to the buy side. When we come back we have full Team Coverage of all the earnings due out in a moment. Stick around. I like your place. Oh, thank you, make yourself at home ill be right back. Hm. Shes got x1. Alright. Huh, hm, ohh. Monster . She seemed so nice at dinner. Im back ahh uhh. Whatcha doing . Ohh, just. Watchin law order. Awww, youre nervous. Thats so cute. Call and upgrade to get x1 today. Microsoft, yahoo, chipotle about to report earnings. After the bell. Microsoft trading higher in that report. It is. Microsofts quarter will be clouded by a 7. 6 writedown of its nokia acquisition and will axe 7,800 employees. Analysts are treating the charge as an expected onetime item. They expect 56 Cents Per Share. For the full year which microsoft will report estimates are for 2. 42 on 93. 4 billion. The decline in pc sales bought licensees for windows down with it. Investors have high hopes for growth in surface tablets as well as microsofts cloud which has repeatedly doubled sales in previous quarters. Well have that after the bell. Thank you. Now for Marissa Myers favorite company. Yahoo earnings. Expecting to report a 15 drop on 1 revenue. Perhaps more important, investors are hoping for an update on the planned alibaba spinoff hoping to learn what to expect in terms of tax liabilities. There is the question whether Marissa Meyer can deliver 15 plus growth from mobile video, native ads and social. Rival google beating expectations, the pressure is on. Back to you. Dom chu keeping an eye out for gopro numbers. You know how much i love numbers. Q2 earns per share, 26 cents, a key number there revenues expected to come to 395 million. The number of shipments estimated the company at 1. 46 million with an average selling price of 260 per unit. Those are the key numbers. This is a roller coaster of a stock. It was 598 stock back in october. 37 stock in march and now a 62 stock. The roller coaster ride could continue. Options market is pricing in what could be a plus or minus 12 move to the shares and gopro on the heels of earnings. You want to keep it here for what could be a volatile trade. Back to you. Chipotle serves up its earnings. When chipotle reports, analysts will look for 4. 44 per share on 1. 22 billion in revenue. Samestore sales comps expected to increase 5. 7 . Until now comps had been growing by double digit percentages. Chipotle missed estimates in higher food costs and pork shortages. Looking for details on the companys recent price hikes tied to beef. Shares are trading down about a fraction of a percent ahead of these earnings. Thank you very much to the whole team. Everything you need to know ahead of a big afternoon. We are coming back with the closing countdown. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . Hi my name is tom. Im raph. My name is anne. Im one of the real live attorneys you can talk to through legalzoom. Dont let unanswered legal questions hold you up, because were here were here and weve got your back. Legalzoom. Legal help is here. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep them all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberyy apple scones smell about done. Ahh, youre good. I like to bake. With at t get up to 400 dollars in total savings on tools to manage your business. 90 seconds here we go. These four chipotle mexico yahoo, gopro and microsoft coming out at the top of the hour, then apple after that, bob pisani. Apple is the one focusing on. There is a lot riding on apple. We mentioned the big four. Apple recently and some of the others out there got a lot of money riding on them. Twice as many calls have been bought on apple in the last few days as puts. Normally its the other way around. Normally its about 2 3. Typically in the market theres at least twice as many puts as calls bought on the s p 500. Here you have a lot of people anticipatesing apple will have another blowout quarter and move up. That is a big bet. My point is a lot is riding on apple. Keep an eye on that. The street is very long apple and anticipating a strong report tonight. We get in place the team ready to go. Well get you those numbers. Today down 180 on the dow, led lower by United Technologies and ibm. Stay tuned. Here we go. Second hour of closing bell. Welcome to the closing bell im sara eisen in for kelly evans. Bill griffeth will rejoin us in a moment. Take a look how we are finishing the day on wall street. The dow down 180 points. Ibm with 65 of those points. United technology was 50. A big reason why the discrepancy between the dow and s p which closed lower by nine points. 0. 43 . Nasdaq coming off a record high down a little less than 11 points. We are way deep in earnings mode. We have a barrage of earnings heading your way. Kayla tausche waiting on microsoft. Julia boorstin yahoo, dom chu gopro and josh lipton will bring the apple numbers from headquarters in cupertino. Well sing show tunes until they come out. Apple will be the biggest in terms of setting the tone. Apple and microsoft are big bellwether names. Today was about those earnings. You mentioned it was ibm verizon. It was a bad day for earnings. That can change in a heart beat. If we get a good number from apple or microsoft or the next couple of days there are tons of companies to report. See what the companies have to say. Weve got a lot of market movers. We talk about how earnings become a secondary indicator of the markets. Everyone looking at what the fed is saying in news. These are earnings you want to watch because their stock tends to move depending how results come in. Apple, microsoft and chipotle. Today was a bad batch. Before this we were talking about how great the numbers were out of google netflix. See how the numbers look today. Its going to be interesting to see if the trend remains. People want these high growth high multiple stocks in terms of in technology. Its going to be interesting to see. Do they tend to stay to the Growth Stocks or are we going to now start to look at value stocks and see there are values . Up until this point, people have been ignoring the value names. Chip oat 0le hitting the tape. Morgan brennan has those results. Thats right. Chipotle reporting 4. 45 adjusted per share beating street estimates by one penny on revenues of 1. 2 billion in line with expectations. Samestore comps coming in light. 4. 3 versus expectations of 5. 7 . Taking a look at chipotle after hours, plunging down 7 right now. Back to you. Down 7 . Tim seymour is here. Do you like chipotle . If you come in with a 45 multiple, if you rallied 13 into these numbers effectively from july 6th through todays close, it was up from 600 to 675. Weve got a company difficult to support these comps. Technical things like Short Interest down in this company. I think this is the kind of thing we havent seen gopro, but this is what the market needs to see out of high multiple stocks. If you are investing in fast food, you dont want to chase a high multiple. It has to be Comp Store Sales increasing 4. 3 . This is always going to be the number to watch. Last year werent we at 17 , 18 . Even though they had such a high samestore sales number last quarter and beat earnings because they warned it would be lower Going Forward, the stock dropped and now we are seeing the same reaction. The mood of the market is changing. We are getting away from these momentum players of the past. In the past when they would report a number they beat on the top end and bottom line. Would have kept going. Lets see and wait. Am i reaching a conclusion too soon . Way too early. You are in the second inning of earnings. Lets take a deep breath. This is disappointing, for sure. You cant trade at this multiple and disappoint. Im trying to look for in the release why the miss on samestore sales. Dealing with higher costs in the restaurant industry. Opening new stores. Income costs have been coming down. That could be a nice tail wind if they have these other labor costs. I agree with that except if you are playing chipotle you are playing the samestore sales growth and the store openings playing this price incentive consumer. That is a big problem. This is a fantastic company. They are growing gangbusters and eating taco bells lunch in the mexican part of that framework. If you look where this company has gone they disappointed the last three quarters. The comps have been high. Up 15 a year ago in terms of Second Quarter comps. 13 for all 2014. Those are tough numbers to hit at a 45 multiple this is bound to sell off and that is what it did. Mcdonalds is out tomorrow cocacola is out tomorrow. A 4. 5 samestore sales number at chipotle will look great compared to what mcdonalds is about to report or other major Restaurant Companies are about to report. There is such a loyal customer. They go there because their whole food is integrity platform. They took a hit because they didnt agree with the conditions the animals were living in. Everybody is going organic. First National Restaurant train to use nongmo ingredients. They talk about costs. They did have relief in dairy and avocado prices. That was offset by beef and packaging costs compared to the Second Quarter 2014. Tough comps for chipotle. It is all about protein. I understand puts and takes. Again, the stock is not cheap. Its hard to get aggressive when the company that is this expensive is not delivering on all fronts. There are oneoffs here. Lets hear what they have to say. Microsoft . It looks like a beat even though the stock is moving lower here. Revenue miss. Well dig through the numbers and make sure they are comparable. We are watching this carefully because of this transition they are going through, this change in strategy with the new ceo. Right. New ceo. We also know pc which is a big part of their business is in secular decline. We knew all the Industry Data showed very negative pc trends. That is not a surprise. One of the reasons the stock trades at this multiple. We have to listen to what they say about their cloud initiatives. What would get you to be a buyer in microsoft . The stock to pull back. It went from 42 to 48. No one liked it then everybody liked it. The sentiment got a little more euphoric. You have to see a pullback and get through this unwind of the pc challenge which is going to persist for some time. When is the last time we saw euphoria around microsoft. Last time you saw euphoria when you had a change at the top. The stock wound through all this good stuff. Commercial cloud, commercial 365 business is what you need to see in terms of stronger numbers and outlook which will be difficult on the pc side. On the cloud side absolutely. The stock will not move the needle. Kaylas got her arms around the numbers. It does look like a beat. We are seeing 62 cents for bottom line on microsoft compared to 56 Cents Per Share expected. Revenue at 22. 18 billion. That does look like a beat. We did see revenue estimates from wall street analysts come down in the last day. Even so, it does look like a beat. Where we are seeing negativity is Gross Margins appear to come in a little bit. Analysts had been hoping for those to expand. We are seeing the company discuss currency head winds. That has been plaguing the company the last few quarters. We told you about the 7. 5 billion impairment charge the company would be facing. We are seeing that coming in this quarter. Well continue digging through these results and have more later on. Gopro down 8 . Half a million shares traded in the session. Headline numbers coming out. Earnings per share 35 cents. That handily beats the average estimate of 26 cents sales. 419. 9 million, expectation from analysts 395 million. We are still digging through some numbers here. Why we could see selloff pressure coming on. With gopro, this is another stock, a nice run up off the lows we saw. A 37 stock back in march of this year. Its now about 62 going onto these numbers. Well look for average selling price numbers or any indication on the Conference Call later on as well as how many units they shipped. Wall street handicapping this like its a down report. Well bring in more details as they come in. You said they were expecting volatility after the report and they are getting it. Now to yahoo. Julia boorstin. Coming in two cents lower than expected. Coming in at 16 Cents Per Share. Wall street analysts had been projecting 18 Cents Per Share down from 37 Cents Per Share. Revenue Beat Estimates by a hair. Revenue coming in at 1. 04 billion compared to expectations 1. 03 billion. The display ad business saw the most substantial Revenue Growth since 2010. Mobile revenue which is a big focus increased to 22 of the Second Quarter in terms of trafficdriven revenue. Well be listening for more details. Its election night. The biggest mover is gopro. Lower though the numbers look good. The numbers looked very good. They are a mover, but you wouldnt expect them to move in the opposite direction. Wouldnt that be because momentum players are not buying like they used to . Could very well be. Im trying to set the stage where the expectations are. We were at 8 cents. See a revenue beat. Im surprised as they start to introduce these new product, moving to virtual reality, moved by the drone quad copter. All these new offerings. They made Strategic Media hires in the last few quarters from hulu, from cbs. Its in the price. Its already in. Is that your point . Its priced to perfection. Its all in the price. Look at the earnings growth. Revenue growth 60 year over year. The company cant keep with itself. Great company. On some level one of the big pushbacks, it will be a commoditized hardware product. Theyve got new product releases. You need to see more for a stock that rallied 20 into these numbers. Julia, ive got guidance from yahoo . Thats right. We have more details for the Third Quarter. The Company Expects Third Quarter revenue in the range between 1 billion and 1. 4 billion, lower than the estimates wall street has of 1. 07 billion. That is another factor weighing on the stock which is trading down over 2 in afterhours trading. Thank you. Another question is whether the spinoff of alibaba can go through, can go through taxfree and u. S. And chinese regulators will sign off on that. Im sure she will get a question on the call. It hasnt gotten government approval yet. They just filed last week. Right. Display ad revenue, the biggest part of that business. We have to see that momentum and turn. The headlines ive seen doesnt look like it is doing so. Tim, before we go thumbs up thumbs down on apple . I think thumbs up. The apple iphone refresh cycle, especially china, the cellular providers in china, china will be a longer refresh cycle. I dont think expectations are as high on apple going into this quarter. Valuation is easily supported. I think it goes higher. Well see. Those earnings around 4 30. Yes. You can catch tim and the rest of the crew on fast money at 5 00 p. M. Eastern time. The biggest night in tech is just getting started. Theyll have all the latest headlines from the likes of apple, microsoft yashgshoo and gopro earnings Conference Calls. Well dig deeper in some of these reports. Then its the big one. Apples results. Due out any moment now the question is whether the watch is a hit or a miss. What happened to that china growth . Of course, the number of iphones. vo me . I dont just wait for a moment. I watch for the perfect moment. The one nobody else sees. And when i find it i go for it. announcer at scottrade, we share your passion for trading. Thats why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so youre always connected, wherever you are. Because at scottrade, our passion is to power yours. We are having such fun. Yahoo trading down on worse than expected guidance. Lets bring in nicholas carson, wrote the book on Marissa Meyer. You told us to look for mavens. This is the new metric. Its quoted first here in the press release. Its the story Marissa Meyer likes to talk about. Its mobile video. What is your biggest concern . What you want to know from the guidance not necessarily from guidance how alibaba is doing. If she can get revenue growing like this on a consistent basis, the company is going to be heading in a better direction. The main problem yahoo has is in its top 100, in the itunes top 100 apps it has two. They are at number 50 and 88. Things like facebook have top three in the top five. Google has two in the top ten. Things like Mountain Goat mountain are higher than any yahoo apps. Is yahoo losing share in advertising to facebook and google . Google had great results. We havent heard from facebook. Yahoo is losing share. Microsoft decided to pull out of the Online Advertising game. Its a sign where yahoos health is. Mountain Goat Mountain is that what you said . A yahoo app. Thank you. We are going to shift to microsoft. Falling despite a revenue and earnings beat. We are joined by microsoft shareholder cole wilcox. Good beat on the bottom line. Yeah. The bottom line looked good. I didnt get to see all the numbers because i was here. What id like to know is what did they say about the cloud competing platform and growth that came along with 3. 65. We do not have that number. Someone in our control room im sure is scurrying about to get that number for you. They are in this transition phase. Weve got to look for not today but where microsoft is going the next year two years, the strategy. As we enter into this golden age of Cloud Computing, where is the platform trend they have and where are they going to win Going Forward in the future . I see microsoft becoming the dominant Cloud Computing platform winner Going Forward with the strategy they have. Having refocused all the resources around that and cleaning up and exiting the disastrous decisions from before like this nokia acquisition. Commercial cloud Revenue Growth grew. When do you think people will get through this pc concern because it is a big piece of the total company . I think what you are looking for is transitioning all their legacy customers from one way of buying software on the enterprise side to locking them into a subscription on the goforward basis. In that phase, you are not going to see a lot of customers leave, but there is a retooling aspect associated with it. Doesnt show up in short term numbers. As a buyer in my view on microsoft Going Forward, where are they going to be a year two, three years from now, not so much what the numbers look like short term now . Its a bet on the strategy and direction of retooling and refocusing resources. Also the commercial revenues came in light. People were looking at that as a growth driver. Well leave it there thanks cole. Thank you. I think its cool they are giving windows 10 away. Couldnt believe that. Very exciting. Up next well get a check on some of the other big names reporting earnings after the bell. The clock is ticking on apples results. Will sales of its watch make it a blowout quarter or are there red flags for apples latest product . Check out whats happening with shares of gopro. We told you it would be a volatile trade. We are seeing that volatility play out here. What you are seeing there is both a pretty deep move into the red or negative territory after hours. The roller coaster ride continues, even though gopro did beat on earnings and sales. We are waiting for more context and color with regard to what the average selling price as well as shipments. Well hear that on the Conference Call later on. Untightive surgical earnings per share beat 4. 57 a share. Average analyst estimate was 3. 98. Revenue 586 million. 567 million was the estimate. Those shares up by about 9 after hours. Back to you. One of the big gainers. Has been a busy afternoon. We are just getting going. Apple results are due out any moment. Isnt it beautiful when things just come together . Build a beautiful website with squarespace. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . New york state is reinventing how we do business by leading the way on tax cuts. We cut the rates on personal income taxes. We enacted the lowest Corporate Tax rate since 1968. We eliminated the income tax on manufacturers altogether. With startupny, qualified businesses that start, expand or relocate to new york state pay no taxes for 10 years. All to grow our economy and create jobs. See how new york can give your business the opportunity to grow at ny. Gov business we heard from microsoft yahoo, chipotle and others. Now we are awaiting apple. We talked about the apple watch, that will be buried in the other category. 75 of their profits are tied to the iphone. It will be important to see asp and gross margin. Guidance drives this stock over the course of the quarter. What are you watching for . China. Last Quarter Sales of iphones surpassed those in the u. S. We know the iphone market here in the u. S. Is maturing. Lets see what they can put out from china. What are their plans for other emerging markets . The feeling is this phone is too high priced to penetrate india which would be a great area but the price is going to be an issue. The loyalty isnt there for apple products. Are we making too much on the apple watch . I dont think it will matter. Lets find out. Here is josh lipton with the numbers from apple. How did they look . Well apple just reporting. Lets get you knows numbers. Reporting 1. 85 on revenues of 49. 6 billion, 33 jump on the top line. Analysts had been looking for 1. 80 on 49. 3 billion. Running through the different product categories. Iphone shipments. 47. 5 million, a jump of 35 year over year. Ipad, 10. 9 million. The watch, they are not going to break out watch shipments. They are going to put those watch numbers in other product categories with ipod, apple, tv. Sales in other product category 2. 6 billion. Worth noting in q2 that other product category without the watch saw sales of 1. 7 billion. Gross margin 39. 7 . Looking ahead to q4, apple guiding for revenue up between 49 and 51 billion and gross margin 38. 5 and 39. 5 . I did talk to ceo tim cook. Let me run with you through the report how he saw the quarter. Cook saying the iphone performance was a run away success, that the momentum continues. That apple continues to take share in the smart phone market. A couple of Interesting Data point tim cook told me he said only 27 of the install base has moved to that 6 and 6 plus. The indication there the suggestion is there is plenty of potential upgrade head room left. He also noted android switcher to ios, the highest rate ever. As for the ipad, that has been a source of disappointment for the treatment. 10. 9 million. Street was looking for 11. 1 million. Cook telling me he pointed to the new enhancements productivity tools, that partnership with ibm as well as way knows is in the pipeline. He said on the commercial side he saw plenty of momentum. As for the watch, giving us color there. He said it is exceeding apples expectations. There are 8,500 apps available. There will be more points of sale. Youll be able to buy the watch in more places. He didnt say where or when but you will be able to buy the watch in more locations. Maybe thats why he believed the watch would be a big holiday gift. I have to mention china. Sara brought this point earlier. Big concerns about china. Chinese stock market what kind of Ripple Effect that would have in the chinese economy. Revenue in Greater China, china, hong kong and taiwan up 112 in the quarter. Back to you. We are looking at the reaction here. Stock is down sharply in the after hours. Bob pisani mentioned earlier ahead of these reports, two calls on apple were purchased for every put purchased. Obviously, there was tremendous optimism going into this. Thats not happening now. The thing that is hitting me the ipad is still light. What is wrong with the ipad market right now . There are structural challenges and head winds with the ipad. You can see cannibalization with the larger screen iphone. Consumers dont upgrade as often. They dont upgrade their ipads as quickly as rapidly as they do their smart phones. At least on the enterprise side cook is believing this bullish tone talking about partnerships with ibm. He said he does believe you will see that upgrade come you will see consumers out there move to those upgrades. He is confident in that product. Im surprised. He mentioned the android switchover. He didnt mention the blackberry switch over. Bill is the last remaining blackberry user on the planet. Iphones came in kind of in line where the sell side was. Buy side was up 50. Ipad clearly disappointing Gross Margins in line. Guidance down. Revenue bracketing to where the consensus is. Its not a really great report. Not really great guidance. I think this was supposed to be a great one and we would see what would happen. This one wasnt so great. Lets get more reaction. Ross are you disappointed. Weve come to expect such blowout numbers from apple. Weve seen two quarters of this new iphone cycle, 6 and 6 plus. Im not disappointed at all. These are great numbers. If this was netflix it would be up 512 points but its apple. Everything is going well for apple. The reality is they are doing very well. John what stands out for you . Its interesting for me with apple what they have coming next. Theres obviously disappointment with the ipad market. Its not just ipad specific. Its tablets across the realm are down. There are rumors of new apple products coming in tablet. Larger screen ipad, pro that can run multiple operating systems. Could be the hint cook was giving that ipad sales are coming up relatively soon. Average selling prices on the iphone 662. Managing to sell these at higher prices. Light on the ipad. That was part of the expectation. I think its what everyone said. You expect such a big beat coming into this. Wall street was at 1. 80. This was the most estimated stock in our history of our platform. This is a cult favorite. We know that. As one of the guests said earlier, do you expect these huge beats. Overall, the report was good. I think we have question marks about whats coming next. Will they be able to produce hits . Whats the next phone . We havent heard about apple tv. What about apple music . Are you as disappointed in this as the market seems to be . Im modestly disappointed. I think the stock is a better buy at the 200 Day Moving Average at 119 plus. 47. 5 million iphones when the street and some of the bulls on the stock which need to propel the stock higher were expecting 50. The other thing that disappointed me was not the gross margin they posted for the quarter just ended, but the guidance falling a little bit sequentially. I think the stock will do well over time. Sure. I am modestly disappointed. Probably more so than the other chen commentators. We are seeing the cash pile breaking above 200 billion for the first time. Apple tv will be refreshed and this will be great. Apple music will be a huge success and generate a lot of revenue. Their ancillary products like watch bands. Are you wearing the watch . Wearing the watch and i love it. It took a while to get it. They could have done a better job on the launch. Apple is doing very well. Theyve got a great set of new products and services over the next six months. We have to keep our focus here. Huge expectations. They are doing fine. We have more to come. Well get more guidance not only on that one, but some of the other Companies Reporting earnings tonight. Well be back with more on that in just a moment here. Up next well dig deeper into the numbers. How they are all trading after their results. Busy afternoon. In fact, the number of mris has increased by ten percent a year. And a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. Because its so challenging a Research Project is teaching ibm watson to see. In the future, it could help clinicians spot key patterns quickly and precisely. Ibm watson is working to make healthcare smarter every day. Approaching medicare eligibility . 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That apple number down almost 7 falling after reporting Third Quarter earnings that came in line. We are joined by stephanie link christine short ross gerber. We talk about the fact they didnt sell 50 million iphones when the street was looking for that. Is this as good as it gets for apple . Thats the question right now. This was supposed to be one of the great quarters. If expectations were for 50 and they didnt deliver, thats going to disappoint. I think the ipad is disappointing. Gross margins were fine. Guidance was fine. Now what . Without new products youre still dependent on the iphone cycle. That is not to say they cant continue to grow and grow robustly but they have to. We are all looking for the next iteration. He thinks the apple watch will be a terrific seller at the holiday. Is that code its not good up to this point . While i do have one on my wrist, im a step above em ambivilent toward it. Apple has been scooping up automotive big wigs left and right. They hired doug betts from Fiat Chrysler. But they wont confirm that. Its on his linkedin page. He took it down. Its gone. Hes definitely working for apple. Youll be hearing a lot about project titan. This is supposedly a car built by apple. I dont believe that. Why would you compete with tesla . They need to put their stuff inside the car. They will accessorize the car. I want to listen to my apple music inside the car. Its i not a seamless system in a car. I respectfully disagree with that. Well see who is right. Is that the key to what moves the stock further in the after hours, especially with what they say about the 6s . Its going to be tough comps to match what we saw last year. It seems to me from their go forward revenue guidance for the September Quarter that they are expecting probably sequentially flat to berth iphone sales. The street was expecting that from a higher base than this quarter. As far as other comments over time one of the best opportunities for apple will be an infotainment. When you think of companies that dominate that space. Thats where they will be with the automobile. I dont think they would ever acquire tesla. Im curious. You said youre mildly disappointed in this report. Stock down 7 . Are you rethinking your investment . Are you going to take a little off the table . No. I actually think, not that im a trader that if the stock successfully holds this average where it trough ared for a month. It might be a better buy. Where it was at 131 a share and based on this news i think its probably a hold. Well see what happens. You are the estimates person. You are the expectations person. That is what its about when it comes to these quarters. I think of jim cramers line on apple which is dont trade it own it. This could be why. The expectations game going onto earnings. You cant expect the Third Quarter will get better. 27 of people upgraded to iphone 6. Everyone will wait for the 6s to come out in september if thats when the launch will be. This is as good as it gets. Guidance is in line well see flat year over year revenues. I dont think you are going to see a big pop in apple until they do come out with something new which might not be for a couple of quarters. We need to move on all right . Sure. Youre so easy to work with. Thank you so much. Thank you. Talking about apple. Now on to microsoft. Microsoft notched its First Quarterly loss in more than three years. I think what is surprising the street is that the loss is wider than expected. Its 40 Cents Per Share, 8. 4 billion charge in what microsoft telegraphed a few weeks earlier was 7. 6 billion charge. More of a restructuring charge on the top. Certainly there is discrepancy there. When you take that out of the equation, it does look like a beat on the bottom line. When you go into revenue, there is a little bit of disappointment. Especially on the commercial licensing revenue side. You are seeing that down 7 . Of course there was expected to be some licensing pullback both on the consumer side and on the commercial side that sort of traces what weve seen in the decline in the pc market. Its much greater than that. We are not seeing the up tick in the cloud revenue are or in the surface revenue which was up 117 cancelling that out. Theres big revenue head winds. Currency an issue. 272 million hit on the currency front for devices and consumer. And 481 million currency hit in commercial. Microsoft had said last quarter that when you see a strong dollar, that does hurt bookings from countries that are not the u. S. Namely japan and that happened again this quarter. I think it just happened to a greater degree than the street expected. Particularly on that commercial side. Kayla, thanks for runnings through some of the disappointments. They are a company in a turnaround mode, which is why you look at the mix to see if the fastgrowing parts of the business are posting fast growth. Dont you think well get messy reports for the foreseeable future while he turns this company around . We probably will very much like what ibm is going through. Some of these old Legacy Companies have a lot to get through. Last quarter the stock was at 42 and rallied 48, 49. Now it could pull back. Its going to take a long time. We are also one week out from the new windows 10 release. Its free for the upgrade. It should help define the pc is built a lot on that. The fact the adjusted number did come in 8 cents higher than we were expecting. 62 cents we were looking at 54. That is a plus when you take the onetime charges and revenue looked good pretty good to us as well. Theyre a little light, but better than i think we were expecting. And the cloud was up 88 . I mean yeah last quarter 106 . But i mean were take it. A few good things in that report. We just said a lot of companies. Cant get to the cloud fast enough. Thanks guys. Up next well take a check of some of the other big after Hours Earnings movers and what to be listening for. This is key on the upcoming Conference Calls including apples in the next hour. The earnings parade marches on tomorrow. Yes, we have more. We get results this time from boeing qualcomm american express, while mcdonalds, caterpillar and amazon report on thursday. Why would you want to go anywhere . Cocacola also tomorrow. Well be all over that. Coming back after this. A lot of action in the after hours. Shares of apple are sinking after releasing Third Quarter earnings. Even though, bill profits were up 38 . Maybe those iphone numbers came in a little lighter or at least on par with expectations. Yep. And its all about the guidance too. Plus dom chu checks in with some of the other names out with results after the bell. Were all trying to catch our breath but lets take you through some of the bigger ones. Gopro, were just seeing some moves here. You can see up or down now by 2 1 2 . Its been a rocky road for those shares. Earnings 35 cents. Beats 26cent estimates. Revenue 420 million. That beats 395 million in terms of its estimates. Microsoft also checking out whats happening there. Microsoft shares right now down by 3, almost 4 on 2 million shares of volume. 62 Cents Per Share in earnings. The estimate was 56 cents. Revenues coming in at 22. 2 billion. Estimates were for 22 billion, just thereabouts. Those shares you can see down by almost 4 at this point. Yahoo shares also in focus now as well. Yahoo currently down by about 1 1 4 about 1. 1 million shares have traded. 16 cents was the earnings there. 18 cents was the estimate. The revenues came in 1. 04 billion pretty much in line with the 1. 03 billion estimate. So again, some moves there. Obviously the big ones in gopro, apple, and whats happening here with microsoft as well guys. Back to you p. Thats not all. Weve got a news alert now on at t and directv. Courtney reagan with that. Courtney . Thats right, sara as if we didnt have enough news a dow jones report citing sources says that fcc regulators are poised to approve at ts 49 billion purchase of directv. This deal initially announced in may of 2014. If it goes through, it would be the biggest media deal of the year. The Justice Department has already approved it. But again, dow jones citing sources is reporting the fcc is now poised to go ahead and improve approve at ts purchase of directv. Bill, back to you. All right, courtney, thank you. Theyre exhaling at both headquarters there. We have chipotles Earnings Call under way right now. Morgan brennans listening in and i hear theyre talking about my favorite dish the carnitas. They are. Weve got a few headlines. Theyre all tied to pork. Weve seen a pork shortage at chipotle this year Something Like a third of all restaurants around the country have been without carnitas after the company pulled one of its suppliers due to the company the supplier not meeting quality standards. So weve seen a shortage going on. This affected First Quarter samestore sales. Its also something thats affected this quarters samestore sales which were disappointing versus what the street was looking for. The company saying that they had found a new supplier and that they are going to be as they get more supply online theyre going to be bringing carnitas back into restaurants on a market by market basis and that they expect to, as they ramp up pork supply they expect to make up any lost sales tied to this outage. So those carnitas are going to be back in the stores. Bring them back. Bring them back. Bring them back. Hurry up. Thank you, morgan. So the earnings were fast and furious after the bell tonight, as weve already established. Apple, yahoo microsoft, gopro, all with Conference Calls that are starting in this next hour as well. Up next the important things to listen for on those calls. Plus the move in overall s p futures. Were back right after this. An making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place that lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim . For all the confidence you need. Td ameritrade. You got this. Well that was a crazy afternoon of earnings. Thank you to the panelists today, stephanie link and christine short. Fast money coming up in just a few seconds here. Yes. Melissa lee. Gee, what do you have on tap tonight . I wonder. Hmm. All the Conference Calls are getting under way. There could be a lot of volatility in the afterhours session. Does this spell bad news for tomorrows session for the dow which saw pressure from ibm and utex as well as the nasdaq wp were going to follow all those moves tomorrow. See you tomorrow. See you tomorrow. Fast money starts right now. Live from the nasdaq marketsite overlooking new yorks times square, im melissa lee. Cnbcs live Team Coverage is all over the afterhours action for the full hour. Josh lipton is monitoring the apple call just getting under way right now and will bring us the latest from ceo tim cook. Julia boorstin listening in to the yahoo call will bring you all the headlines from ceo marissa mayer. Kayla tauschi is standing by as we await the microsoft haul which begins in less than half an hours time. Dom chu with gopro. That stock to say the least volatile in the afterhours session. Plus our two top analysts