Out there. You want to finish that thought . Its like a teasy question that gets people going. Its a delightful interview. Former ceo sandy weill and his wife, joan making an 85 million to neuro Science Research at the university of california, san francisco. It is the schools largest donation ever. As you can imagine. We look forward to talking to them, talk about that and get sandys take on the current state of a financials, all of that coming up a little bit here. Its an earnings palooza. Earnings from apple and twitter that are due out after the bell tonight. Josh, what are the key numbers to watch for tonight on apple . Well, bill, you cant help investors feeling cautious here given what wall street think apple is going to report. Theyre looking for apple to report eps of 2. That would be on revenue of 52 billion. A drop of 10 on the top line. Also looking for 15 million iphones. That would be an 18 decline. And we know thats important due to tough comps in q 2 last year, apple shipped 61 million iphones, revenue in that unit jumped 55 . Another important metric Gross Margins expected to clock in at 39. 5 . There could be pressure there coming from the new iphone se as well as price cuts to the apple watch. Two other metrics that will interest investors, apple pay, apple music, they think Service Revenue will jump 15 to 5. 2 billion. We think well get an updated capital return today. You could see apple boost that dividend by about 15 . And also boost the buy back program by as much as 50 million. Back to you. It will be interesting, the headlines will all focus on whether the Company Posted first revenue declined year on year in over a decade and whether the iphone sales are down as well. Yes, certainly. I think what were seeing here is certainly we expect that iphone number unit, to be down 18 . Thats in part due to tough comps. They think that decline in iphone units will moderate and may turn higher when we get that expected iphone 7 in the fall. Well wait and see whether executives on the call think theyre right about that forecast. You wonder if tim cook will address the executive who told cnbc yesterday that he felt that apple was out of date. Yeah, id be surprised if he addressed that. Again, i did see that report from that chinese executive. There wasnt a lot of data in that report. If cook did address to that hed point out that apples share of the Smartphone Market in china is rising. It went from 8 in 2014 to 14 in 2015. They actually track used iphone sales in china. Its holding up. That wouldnt indicate a brand thats in a free fall as that chinese tycoon made it out to be. Well see whether cook addresses that on the coall. What are you looking for, julia . Well, kelly, user growth is very much in focus here at twitter after last quarter. The key popularity metric shrank from the corner before. The ceo is under pressure to get the Company Growing again and to show the tweaks hes made the to the service over the past three quarters are working. This quarter Analysts Expect the company to add three million monthly users. Revenues projected to grow 39 , to 608 million while earnings are projected to grow 44 to ten cents a share h. Well be back with the numbers in the 4 00 p. M. Eastern hour. All right. Julia. Thank you very much. Well check back with her and with josh lipton next hour. Lets get to the closing bell exchange. With the dow down six points, i ask you a loaded question whats more important for you and the markets today, the apple report or the fed meeting this week . Im actually not going to answer either of those. I didnt think you would. The bank of japan is probably the most important because of the Ripple Effect down through all the different Asset Classes it could impact. Japan has been wellrecorded, its at a critical point, almost to the same point where the Monetary Policy is hurting the markets. When theyre talking about going deeper in the negative rates to get the yen come off the the rally. You talk about conflicts of interest inside whatever policy they do. Thats what were watching. Is that why were meandering here . It is. This week was going to be catch as catch can. Its a big week for earnings. A thousand companies reporting. And some of the big ones youre talking about, apple, twitter, facebook, ford the list is endless this week. Then later on, not only our policy meeting and the bank of japan on top of that. Stocks are going to lay here. Its interesting youre talking about the bank of japan, the European Central bank is going to be buying corporate bonds. We had unilever issuing a zero coupon bond lately. How much lower can rates go . I think this is a watershed week for Central Banks, not just the bank of japan but the fed as well. Not too long ago people thought Central Banks were out of bullets. A bad Market Reaction to that. Both the fed and the bank of japan have to step up this week to see what the reaction is going to be. I think the fed has got to hint at a june rate hike here to prepare markets in the bank of japan has to kind of pull a rabbit out of the hat. Its a key week for central bank and for markets, a lot of earnings out there as well. Right now those two Central Bank Meetings are front and center. When you look at a snap shot of the markets that you watch, what are they telling us about some of those meetings . Central bank has lost control. I think our guest mentioned bank of japan is spot on. Imagine the movie king kong. When he was chained up in new york they wanted to see the etraction but they started running when he broke through the chains. Its the same with the bank of japan. Its hovering around minus ten. Contrast that in two weeks we saw boon deals go to almost 30. And that same period we went from the 170s to low 190s. Why . Theres no hints that anything is going to happen with janet yellen other than bringing out a couple hawks every now and again to show were dealing with that other side. Should we ever need it. The reality is the markets nervous that the central bankers dont have all the ts crosses and is dotted. Whats that big headline . Bank of japan is one of the top ten owners of the nikkei. Theyre down for the year. Do you get europe to buy japans position . This is what investors are nervous about and rightly so. He gave you a lot to talk about there. He sure did. I agree with rick on every one of his points. I think what the interesting thing is is that were having a tough time deciding what is real and what is show. And you talk about theyre going to be data dependent on a june increase out of the ofmc. Theyre going to be watching the polls over in the uk. If theyre getting close to an exit out of the eu ill be surprises if they do a rate raise, even a modest one as a prelude to a vote theyre going to exit the eu. It will throw the markets into some turn moil. A rate raise and uk comes out of the eu its chaos. That election we have coming up later this year being the Political Risk is starting to wash over. Youre right, they could always make excuses for why they shouldnt do it. Fed funds futures are now pointing to us getting to 3 4. Its moving up. Its into december if you look at the numbers right now. And thats a bit of an issue. And i would hope that the policymakers wouldnt be constrained by what the market things, so far it appears they are. John, where, then does that leave you . There has to be places you identify as Good Investments in this market . Yeah, before i go to that i wa wanted to point out the fed has raised or lowered rates in a Election Year back to 1968. I think the fed would be wary of raising the rates a week before brexit unless it was a clear signal from inflation or the economy here. So i think the feds june might be on the table. Were looking at an area where u. S. Stocks will be the best performers of the year. Weve started to dabble in emerging markets in the past couple of weeks after being out of those for the past few years. We still have longer yield bonds. What were looking at now things are going to benefit if inflation runs hot the fed has signaled theyre allowing it to run out. Wheat, emerging markets, we think will benefit in this environment. All right. Gentlemen, good to see you l. Rick im reminded it was a great analogy you made about king kong lets not forget that godzilla started in japan. That might have been more appropriate as well. Keep an eye on there. Thanks, all, see you later. 15 minutes to go in this market. Dow is down 16 points. It feels like a holding pattern. The s p slightly higher, the nasdaq down 14 points. Its by far the underperformer today. Coming up, sandy weill speaks with us exclusively along with his wife. Well talk about their 185 million donation to advance neuro Science Research and well get his take on whether he thinks banks are still a profitable business in the face of massive regulatory scrutiny. Well get Investment Advice from otree capitals howard marks. How does he find a good investment . Youre watching cnbc first in Business Worldwide. Proud of you, son. Ge a manufacturer. Well thats why i dug this out for you. Its your grandpappys hammer and he would have wanted you to have it. It meant a lot to him. Yes, ge makes powerful machines. But ill be writing the code that will allow those machines to share information with each other. Ill be changing the way the world works. interrupting you cant pick it up, can you . Go ahead. He cant lift the hammer. Its okay though youre going to change the world. Man 1 man 2 i am. Woman exmilitary . Man 2 four tours. Woman you worked with computers . Man 2 thats classified, maam. Man 1 but youre job was Network Security . Man 2 thats classified, sir. Woman lets cut to the chase, here. Man 1 whats youre assessment of our security . Man 2 [ gasps ] porous. Woman porous . Man 2 the Old Solutions arent working. Man 2 the world has changed. Man 1 meaning . Man 2 its not just security. Its defense. Its not just security. Its defense. Bae systems. Welcome back, shares of surepta dropping. After they received a negative recommend agds from the fda panel we told you about yesterday regarding the drug to treat muscular dystrophy. The panel says the drug has not been proven effective. The full fda is not required to follow the panels recommendation. Huge loss today for that stock. For the latest edition of the spark value edition i sat down with howard marks, to cochairman and founder of otree capital to get his insights into his strategy in whether he considers investing in apple or tesla. The greatest adage is one i learned in the early 70s. What the wise man does in the beginning, the fool does in the end. Every trend in the investment world eventually gets overdone. You have to be more adroit than you used to to find special bargains. Theres no such thing as not knowing something anymore. Everybody knows everything. That ubiquitousness of information tends to get incorporated in prices and overdone. This year, everybodys talking about the hedge fund, hotels. And you know you run your screens, you find your bargains. You go there to buy it. Everybody else in the business is online to buy it, too. Whats the likelihood its really going to be under priced and stay that way . As you know i wrote a memo in september called its not easy. And the point is, it is not easy. And i said in the introduction to my book its not the purpose of this book to make investing easy. In fact, i want to show how hard it is. Would you argue that your edge today in fact is experience . Well, i do think that experience is very important. And i think that thats the maybe the primary way in which im helping oak tree today. I have younger colleagues who know more about the specifics and who can figure out things that, you know, that i cant. If they come to you and say, you know, and maybe they have in years past apple is going to be great investment. Tesla is going to be a great investment. I dont want to be stereotypical of young people. If theyre excited about these opportunities and think theyll have staying power, are those examples where youll push back . Of course were not technology investors, but ill take that as an example rather than an actual event. You know, i have a son. And when he was in college and decided to become an investor he used to come to me and say lets buy tesla because they have a great new car that doesnt use any gasoline. My response to him was always the same. Who doesnt know that . If theres nobody in the world who doesnt know that, then thats not a reason to buy an investment. Because if everybody knows, it must be incorporated in the price. Thats what they call the efficient market hypothesis. If were going to be superior investors they have to think of something that other people havent thought of. They must have a piece of data other people dont have or they must have a better interpretation of the data than everybody else has. Now, that was just part of the fuel interview which is unicate and online at cnbc pro right now. He was sort of acknowledging that to some extent securities do price in the information everyone thinks they know. A lot of his career and others you could say wearren buffet ar proving the efficient market hypothesis wrong. One of his letters he said im glad i didnt learn that as an undergrad. Its a basis for saying sometimes market prices get it wrong. But, one of the unintended consequences of the Information Age where the information is so prevalent. Lets face it, information is so vital to investing successfully. The madness of crowds plays into it everyone rushes to the same spot. You go online to buy a particular stock after youve discovered what a Great Company is. Everyone else did the same thing. It happens a lot with data. Thats why theres so much talk about sentiment, you know, momentum and all of these things. Everyone moves to one side of the boat. Exactly. Stay tuned for the rest of howards interview online. Its delightful. 40 minutes left in the trading session the dow is down 19 points as we head for the close. Apple twitter and at t are among the Companies Due to report their earnings after the bell. Coming up, sandy weill and his wife, joan, will be here to discuss the couples 185 million donation to neuro Science Research and well get the former citigroups ceo take on all those regulations they face, coming up. I help pay the doctor, aint that enough for you . Theres things Major Medical doesnt do. Aflac pays cash so we dont have to fret. Something families should get like a safety net even helps pay deductibles, so cover your back, with. Aaaaaaaaflac learn about one day pay at aflac. Com rap welcome back. Cutting exxon mobils rating down. The First Time Since 1930 its had less than a aaa rating. The company says it continues on being focused on creating long term shareholder value. Bill, i think that only leaves one or two aaas left in the market. The twitter sphere will tell us who they are. It occurs to me maybe the down grade of exxon mobil signals a bottom in oil i dont know. I dont know if it signals a bottom in oil or if its troublesome. This is something thats been clearly forever. And now when you rattleth the ce of tradition, its a headline thing. Maybe its a little bit deeper than that. Maybe the market has been in a trading range with the s p, 2116 down. I think all these things have their role in the marketplace. What are your expectations for the earnings out tonight . A whole bunch coming. Apple is the biggest thing the market is focused on. Ive heard you on your show today, its the bank of japan, its the fed, its apple, its china. Its crude. And in the meantime the dow is sitting here doing nothing. So the market wants to be range bound until something breaks it out of that range bound state. No one knows whats thats going to be until you see a real convincing validated break of the low or the high. Are you ready to take a position on any of these companies im on apple. And i was flirting with buying a little bit more here because i think it is so telegraphed at this point, the obvious stability in the stock price right now is par. 100 right there. Shoot against that. You dont need to be a hero like i was thinking about being a cowboy. Wait until you see the print. Well see what happens after the close. Thanks. Time now for a cnbc news update. Lets look over to s herrera. House Majority Leader Kevin Mccarthy telling Reporters Congress will not act to help debt ridden puerto rico ahead of a may first deadline when half a billion dollars in bond payments are due. Mccarthy says hes hopeful a bipartisan bill could emerge by july. When 2 billion in principal interests comes due. Exxon mobils aaas rating has been cut. Believe it or not and i double checked this Customer Satisfaction with the nations air companies is the highest its been in two decades. Jetblue and southwest delivering the best service, while united and american saw dramatic improvements in their rankings. 27yearold disabled syrian refugee carried the olympic torch through a refugee camp in athens. The Olympic Committee saying its a symbolic gesture of support to victims of the global refugee crisis. Thats the news update. Hes a former athlete. He was a swimmer and he lost the lower part of his leg after a bomb blast. Olympic torch, an International Symbol of unity. Absolutely. I thinkoff. Try to pick an aisle seat. Still doesnt help. 30 minutes left. A little bit more than that were down 20 points on the dow industrial average. Sandy weill and his wife will be speaking with us about their multimillion dollars donation. Earnings created wall street after the bell. Apple twitter and chipotle leading the pack tonight. Well keep you posted right here on closing bell. I could get used to this. Now you can, with the luxuriously transformed 2016 lexus es and es hybrid. p. That, you haveit, wait yoto rinse it first like. Bak