We are set up what may be a slightly lower open. Lets get to the road map. It starts with phone. Wallets, watches, apples event kicks off in just a few hours. Full coverage of what we will see, what it means for apple stock price hovering just shy of 100 a share. Buy organic. General mills buy annies for about 800 a share. Mcdonalds sales down almost 4 worldwide. Shares continue to struggle. Lets get to carl who 0 is in california awaiting that apple event. David, thanks a lot. You guys and me, weve been through a lot of apple launches together. There are a couple of Different Things about this one today. First one is the i watch has been relatively leakproof by most apple standards. The other difference is the venue. This is where steve jobs unveiled the mac 30 years ago. A watch would be tim cooks new product category as ceo. Apple clearly believes there is something historic about todays event. What do we expect . Lets go through the usual suspect. Iphone 6 in a couple of sizes. They are calling the larger size an iphone 6l and iphone pro. That is what the street is looking at. A watch possibly, a flexible screen. Payments are where things get interesting. Could potentially, retailers open up transaction to apple, Payment Companies get much higher multiples than enterprise and consumer hardware companies. Maybe a comment about security, and is there room for one more thing today . Maybe a peek at a new apple television, 12inch ipad. Bear in mind not everybody is thrilled about todays event. Pacific crest, the only thing we know is every device that has been launched to date would have been considered a monumental flop by the standards of apple investors. Apple shares dont do well the day of the launch. They are down on average. Usually up 2 a week later and up about 3 a month later. Big coverage today, guys. Later this morning, walt mossberg, fred anderson, former ceo of app until 2002 and guy kawasaki. Its a great rundown. One of the things i hear about the watch, its a platform. Once you have it, people can Design Software for it. Is it possible that the watch can dazzle without knowing what the developers are going to do . The watch is interesting from the payment standpoint, like we said, with retailers. The other thing know, and we talked about this many times, the health aspect. A lot of reports that apple is working with health care companies, much like they worked with the Music Companies before the launch of the ipod. Is it possible new partnership with ibm helps manage all that data and works with insurance companies, hospitals around the country . Thats the kind of preemptive work the company is famous for ahead of the launch of a product. That would be huge. I have my privacy questions on those things. Right. Specific to the here and now. Its interesting. When i talk to some Money Managers who try to track suppliers, things like that to determine what may actually be unveiled, they seem to also believe that the 5 1 2 screen, there is not going to be any inventory of that. They are not going to sell that right away, nor the iwatch. Is that something you are hearing in terms of an expectation . There is a feeling that, especially with that sapphire glass, the company has not been able to produce enough glass, as many as they need to. Interesting on the watch. One reason people guess we know so little about it is because its a completely different supply chain. Usually with the phones, we know most of the time pretty much what a phone is going to do the day of the launch because that supply chain has been well mined by analysts and supporters. A watch would be a new channel. That is one reason people suspect we are going into this relatively blind from an apple launch standpoint. Ems going back to what you talked about with ibm. You get the iphone in, maybe then you get the desktop in. You ultimately rip out everybodys elses system. Do we have any intel about whether ibm has been doing on the side some of this work . Youre absolutely right. This watch, if its health care, we only have half the equation. We need it to be seen by someone else. Apple does not have the infrastructure to do that, but ibm does. I totally agree. That ibm thing has been totally overlooked. A lot has to do with creating mobile solutions for industry verticals. That is what cook and ginny talked about what they announced that. Distribution of the inphone and the ipad to the enterprise, which is a whole new universe for apple. Thats why a lot of people say dont worry too much about the weakness in the ipad. Youve got a giant cloudbased company in ibm that is going to move that product into companies, not just consumers. That is a brandnew story for this company and one the bulls would argue is not reflective on the stock price. Security being a key part of that, as well. You mentioned payments, carl. That is conceivably going to be important, at least when people pencil out what it might mean to eps. Would be a high margin business. Well see what they deliver in terms of how far theyve gone down the chain with the card companies, banks and the like. At least people looking at that as potentially creating a new echo system. Well see. I dont know. Payments theres some who are not that enthusiastic. The amount they would have to charge would be minimal, they think. Ive seen the statistic that would argue they would have to get 30 of all credit card volume to add 6 cents to earnings per share. Thats the bear argument. They have 800 million i town accounts. That is a lot of credit card information. If they can convince retailers and partners security is no longer a problem, it sure would be nice to go into a store and buy jeans swiping your wife across an nec platform . That is more a debate today. That has to be sorted out through the course of the day. That is an important part of their pitch. A lot well learn. Well be checking in with you repeatedly during the next few hours. Doing a fabulous job. We know what time it is out there. Bono . Any surprise music guests . By the way, guys, ive not mentioned this big white box. I dont know if we can take it on two. Its here outside the event center, the flint center in kup cupertino. That is where you may play. That is the big scuttle butt. Well get to you shortly. The one thing i can adhere, im hearing theyve been more aggressive in their buyback lately. I did not know that. Apple picked up the pace in the buyback. At the quarter end you do get the numbers on how many shares they bought back under the existing buyback. Theyve been more aggressive. A lot of people have been saying how can you stick with buy and hold apple . A lot has to do with where the stock, not is going to be a few days from now. Carl gave you the one day, threeday week. Its where it it a year later. Average up 39. 8 . Why is that . The answer is that when you launch a product, as you were saying earlier, do they have supply for whatever . You are talking about maybe this being a product that will not necessarily be for the holidays, but actually will be for next year. This could cannibalize the holidays. Most Money Managers look at 2015 numbers. Most traders look at the numbers for the next day. Thats not going to be as worthwhile. Investors at home have a very big advantage over the hedge funds here. They can sit back, look at the products, decide whether they want them and buy the stock and hold it. Its such a good strategy. At this point you have to wonder what shock value is left for apple . Only shock value is how much its going to cost me versus the amazon phone. Judge, well talk about that. Do they pay me to take that phone . 99 cents actually, prime is 99. There is a play there. There is an arbitrage. Talking about arbitrage, takeover this morning. General mills boosting its prices in the natural and organic food market. The company agreed to buy annis for about 820 million, 46 a share, all cash. Its a 37 premium to annies Closing Price monday. General mills expects to benefit from the strength in the meals and snack category. You talk so often about health and wellness as a theme. This company when it went public, incredible ipo and had issues since. 51 premium to the average of 30. It has been a bust. The trend is so powerful, it doesnt matter. Youve got 42 times, equivalent of 172 for hain. 50 for white wave. 42 times forward earnings is what they are paying. People feel earnings are depressed. Can you apply that multiple to hain . Well, that is a 6 billion company for white way, 5 billion for hain. You would be better served had you bought those. Pricing would be different. Irwin simon has no desire to sell, nor does white wave. Why are they willing to pay 42 times earnings . Price has been depressed by an inventory destocking problem and 40 hike in the price of organic wheat, which is the principal ingredient. Campbell has to be worried. Secondary products, horizon from white wave is coming in. You are a shrewd leader of the releases. Did you go through the difference between the General Mills release and the annies release . I did not. Oh, my. Its hysterical. The General Mills release is not issued by you dont even have a quote by ken powell. I saw that. There are 300 million in revenue. It would seemingly barely move the needle. John foreacre, he says this acquisition will enable annies to enter a new phase of growth and success. Wait a second, i thought General Mills is buying this. He says, we are excited about this strategic combination which will able annies to expand the reach and breadth of our a natural products. Didnt General Mills buy it . They tell us that this literally is a partnership. Theyre partnering. This is the highlight of the pantry, my friend. They are talking to their customers. Shareholders are getting 46 a share in cash. They dont care what you are planning, annies. Your customers may. These are the guys who favor gmos and all those other things. Thats why theyve got to keep it separate. The food chain is demanding annies stay annies. The release where jeff is talking about expand our presence through the brand and organic. General mills has cascadian and food should taste good brand. I would contend thats somewhat captain obvious. Coming up, an exclusive with Jeffrey Gundlach. He likes to wander into comments on apple. Good day to do that. Home depot confirm as data breach. Could the fallout be similar to what target went through . Well get to mcdonalds. And the broader markets. Hom payment data systems have been breached, saying the breach could potentially impact customers across the stores in u. S. And canada. The investigation is focused on april going forward. And says so far there is no evidence debit pin numbers were compromised. In a statement, frank blake says, we apologize for the frustration and anxiety that causes our customers. I want to thank them for their patience and support as we work through this issue. This is a big one, jim. We highlighted it last week. It was originally in the security newsletter. This is the first time home depot has come out. We dont have a lot of details. There is speculation begin the size of their credit card base and customer traffic, and how long it went on that its bigger than target. Yeah. They said the customers seem unconcerned. They dont even know yet. Target, on the one hand just threw themselves on the breach sword. Then it hurt the numbers. Home depot is trying to, if there is a strategy, the strategy seems to low key it so people dont panic and dont start going to lowes. Its interesting target, grant it it was a big one and earlier than this one and we have to get accustomed to these breaches. Eastern european criminal gangs or whatever, whomever may be behind it, but target got crushed. Not in the stock market as much, but public opinion. These guys are just going to escape . Worst possible time, holiday season. Weve seen one breach after another. We are now breach fatigued. We believe there is anything that is not sacred. We expect to be hacked everywhere and every place. I think that was, that tim cook captured that well saying, why dont you put a more difficult password, at the same time home depot brought in symantec. I dont regard them as the premier company. I would have brought in palo alto. You mentioned breach fatigue. One has to wonder. If any company has the resources conceivably to put against a problem like this, it would seem to be home depot. This is an enormous company. I can believe it if you are not a mom and pop retailer, but smaller chains. These are the biggest guys out there they are not spending the money on monitoring their system . The banks are so hackable. You look at the spending, look at the revenues of palo alto, which i regard as the best. Revenues are so small versus what needs to be spent. Doesnt that say it all . People are not focused on this issue. They wont be until they wake up and see they have zero balance or they bought a power tool in california. Its been some time from now i picked up from Board Members that it is a board level issue. That was not the case a couple of years ago. My reporting has been focused much more on chinese cyber crime, stealing intellectual property, becoming a board level issue. This clearly is, too. Jack spoke about it differing alpha. I had to interview him. My first reaction was gibb them that story about breaching. No. No. Someone, we dont know remember, we only know the ones of the people who werent good and got caught. We dont have the ones of the people that are ongoing and fooling everybody. We are only seeing the morons who do this. The smart guys, we dont know about. Right. A lot of times they are getting away with it. Again, this went on from april until it was revealed in a publication. I would like frank to come on and say here is what we are really doing. They are not doing it that way. Up next, the mad dash from jim cramer as we count down to the opening bell. For you, success is a starting gate, not a finish line. For you, the ats isnt just a trophy. Its a sleek, chiseled instrument of your ambition. And for you, the Winners Circle is just another pit stop, because youll always be. Coding it. Torching it. Chopping it. Making it. The new 2015 cadillac ats. But what if you could see more of what you wanted to know . 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I want to write down two numbers. That number and this number. Sales down 4 . Dividend, 3. 5 . Dividend is going to trump sales. This stock is going to find a bottom here. Yum had horrendous numbers, finished the day at 72. People are starting to get china supply fatigue. All im saying is mcdonalds has a dividend. People keep feeling mr. Thompson is going to wake up one day and say weve got a Balance Sheet that is going to allow us to do a lot of things. People dont sell mcdonalds where you would expect begin the fact sales were so horrendous. U. S. Comp sales down 3. 2 amid continuing broadbased challenges. This is what the company has written in its press release. Favorites in conjunction with mcdonalds cup sponsorship. France and uk better than expected. Whats interesting, if its challenging for mcdonalds, should it be challenging for the company that mcdonalds spawned, chipotle up 17 . This is about natural and organic. We might as well be talking about annies, white wave and hain. Its good googling, seeing whats in food. Up 17 is amazing. This is what younger people directly see a cause and effect between a lot of things they put in their body and getting sick. Older people dont understand this trade and think, you give me a break . Mcdonalds is inexpensive. People will go there. People dont regard it inexpensive versus healthy. A lot of people still go to mcdonalds. Soda, sodiumfilled offerings. A lot of these things are about cancer, Heart Disease and the idea of linkage. People google bad food and see what it causes. Your iwatch will start to beach. You stole that from me. All right. Opening bell coming up. [ male announcer ] what if a Small Company became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. You are watching cnbc squawk on the street you can hear the applause on the Stock Exchange board with the opening bell set to ring in 40 seconds on this apple product day. And now Natural Organic day. I see hain sneaking over. Annies 70 was short. Over here at the big board, ringing that opening bell. Industrial and Technology Company johnson control. Underperformed the group. Hvac in europe has been disappointing. Over at the nasdaq, Bioblast Pharma focuses on rare genetic diseases. Back at hq, the realtime exchange does look like a negative open with four components of the s p in the red. By a good amount. 2 3 to 1 3. That is my take. This market yesterday was led down by the oils. Yes. Nasdaq was up yesterday because of netflix which got a target raise today and because of a couple of stocks that are involved in, im going to say it. Automatic driving. Mobile eye, movies, go pro. These are my speculative favorites. They replaced liquid lumber. Tractor supply. Thank you for mentioning other stocks that captured the moment. People dont understand at home we are not bei we are being reminiscent. What will i take knowledge of gm, tesla, mobile eye go to the remember site. Israeli company. Four weeks ago they went public right here. You could have bought all you wanted at a lot lower. Its one of the most exciting companies. Thats the point im getting. A lot of people dont like to hear excitement and