Steady. Road map on a busy day for earnings including apple, coke and boeing. Apple surging in the premarket on the sfwheets more from the dnc. Less discord from inside the convention. President obama, joe biden and Vice President ial nominee tim kaine are on tap to speak today. Another tough quarter for twitter and jack dorsey, the stock plunging after results disappoint. What happens to the company next. But first up, apple shares are surging after the Company Reports a beat on the top and bottom line. Revenue did fall for the second straight quarter. Iphones saw the steepest sales decline year on year but that number was less than what the street was expecting. Analysts expecting an uptick in iphone sales when the new 7 is released later this year. Revenue guide not too bad. Jim, cost control, margin guide, okay. Yeah. I think there are probably people at home saying how could they have a huge decline and the stock run. The answer is in the number of iphones that they sold a lot of the analysts had done this kind of mosaic, looked at skyworks, looked at Texas Instruments, corvo, whats corvo and broadcom saying and believe because apple hadnt placed a lot of chip orders apple was stuck with inventory. Turns out when i looked at it apple didnt build enough inventory. It sold through the this large form factor, they still made a lot of money. The bottom line is that the analysts thought that there was going to be a lot of price cutting because apple couldnt set its phones. Apple sold through rather well, Service Revenue pretty good and they got i dont want to say they got snookered, they snookered themselves. Average selling prices fell to 595, which i guess was better than some anticipated. They somds a lot of the lower sold a lot of the lower end phone. People that listened to the call, you were amongst them, said the tone from mr. Cook was more positive than theyd heard in the last couple calls. We spoke to him where he was citing macro challenges so many times in the past, didnt do it quite as much and seemed to be more confident in the switcher rates from android, saying at the highest level ever. I thought that was important. Also the dumb phone switch. Spoke to him, obviously quite bullish. One of the reasons why russia, brazil, turkey, india, canada called out for strong sales which is important. Youre right, there have been this kind of drag where Just International wasnt so good. I think a lot of whats happened by the way, ipads come back. Proving difficult to kill. Hard to kill like Steven Seagal one of the great movies ever. App store revenues up 37 . The analysts that there have been a bit of a rebellion on the last couple calls, basically saying listen, your time has passed. Not unlike calling gillis incredible call the day before, tim cook peaked. Like in yen, going into this quarter basically that cook is a washed up has been. Cook actually played a good game. Made it like tommy john surgery or something. You think estimates have bottomed on the name. I think i can make that case. Yeah. I can make that case. Service revenue he said to me that look, its going to be next year at this time equal to fortune 100 company. Hitting fortune 100, 28 billion last 12 months 23 billion and then the next 12 months you would imagine its going to as you say pass a fortune 100 company in terms of revenue. Wasnt going to pay bigger than bread box when i said 28 billion northwest mutual, he said no well in excess of that, fortune 87 call, i dont know. A lot of people feel the Service Revenue didnt grow quarter to quarter. I get that. The Gross Margins on Service Revenue dont do anything i mean thats kind of facebook. Theres no costs. Enormous margins. Youre going to see that business become a mover. Now theres lots of very smart people saying, look, only reason this is going up because everyone expected so little. I happen to think if they can pull off the services and break out the revenue and get a new apple watch that has some some gravitas you will say yeah. One last bit. He would you argue was more cautious on china . Talked about going into emerging markets with mu miltie. Humility. Did that strike you at all . A little more about how theyre developing. China is challenge, hong kong is challenging. I saw louis vuitton, the first time that they said china sales for highend champagne is good. I have not seen anything good about high end out of china. Revenues down 33 . The wrap on china all these companies the cheaper phones, people like that. People are also moving up. Whatway has a jaw me has a competitive highend phone. Tim citing on the call that the satisfaction is high. China has a problem. China is not that good. But i think that he reiterated again and again a great market but india is going to surpass that market. In 2020. Finally just for me quickly, m a, you and i talked about the possibility of a large deal by apple because in the last calls, in the previous calls, mr. Cook seemed to be preparing people for that very possibility even though it is something historically apple has never really done. Right. This call, hardly mentioned m a at all and didnt seem to be going down that road. Not sure what could he have bought with 127 billion, buyback. I dont know. Rolled up the fortune theyve added a netflix and market cap today. Maybe they could have done it the oldfashioned way. Remember netflix. Yeah. Oh, yeah, jay bought a lot of stock. Nothing going on. Lead director not buying stock if theres a deal going on. Youre saying the karaoke deal they announced after the close is not a driver. What is that about . Doesnt make sense. No. Versus what were hoping is that they would buy nintendo. Pokemon go, im on the blue team, i pay anything for it after nintendos decline. Or tesla given that money to spend on a car. How much r d are they spending on a car at apple. Very much like mcdonalds had a disappointing number but remember when it went from hundreds of millions sold to billions sold. Dont you think that thats what musk has got going . Billions and billions sold. When you listen to him, you really now by the way, linear technology, which were going to talk about later in a faber report. We are . Im doing a faber report on buying you know what programming programming the faber report. They have bms. Bms. Bought they were afraid of being bought by somebody else. Bms. Whats that. Battery management system. The electrical vehicles in china, 300,000 sold last year double this year and double again. The parties like them. Battery management systems. What do you do when your bat it terry dies . I dont know. Thats what linear figured out why they got a buy. 86 of the business is not consumer. I remember the linear like a play on the pc. This reinvented itself, industrial company, 44 of the revenues, 25, 26 are auto after that is communications. It made all the sense. A faber report and then some. So you can do comcast. Appreciate you doing my faber report. You can sub in for me any time. Thank you. Wow. Did get fascinating pictures of the gigafactor yesterday as musk said need another capital raise. Made a lot of money. It was a historic night at the Democratic National convention. Hillary clinton becomes the first woman to be nominated for president by a Major Political party. Joining us from the Wells Fargo Arena in philly is john harwood. Good morning, john. Good morning. The Democratic Convention had two missions last night. The first was to make history by making Hillary Clinton the first woman nominated by a major party for president. And the second was to show americans that history was being made by a real flesh and blood woman, not the public figure americans tell pollsters they dont trust. That was president clintons job and he did it with the skills weve become familiar with over the years. He painted an intimate portrait of Hillary Clinton as a girlfriend, wife, mother and a lifelong advocate of social justice in ways and places that most americans have never seen. If you were sitting where im sitting, and you heard what i have heard at every dinner conversation, every lunch conversation, on every long walk, you would say, this woman has never been satisfied with the status quo in anything. She always wants to move the ball forward. That is just who she is. And then we had a visual demonstration of the shattering of that Glass Ceiling that she cracked eight years ago when she was defeated by president obama. Hillary clinton then appeared and thanked the delegates by satellite. What an incredible honor that you have given me. And i cant believe we just put the biggest crack in that Glass Ceiling yet. Thanks to you and to everyone who has fought so hard to make this possible. This is really your victory. This is really your night. Tonight were going to hear more of a political case from her Vice President ial running mate, tim kaine. From the current Vice President joe biden and from president obama. Tomorrow well hear from Chelsea Clinton and, of course, the nominee herself. I have to say, we had a demonstration after that incredibly effective speech by bill clinton of some of the controversies that follow her. Her close friend Terry Mcauliffe, the governor of virginia, telling a reporter she was going to flip on the Transpacific Partnership which she now says shes against. President obama is for. And that underscored why some of those Bernie Sanders supporters just like Many Americans, have concerns about how straightforward she is. Were going to learn more tonight. Thank you for that. John harwood in philly. When we come back it has been a tough year since jack dorsey retook the helm at twitter. The Company Reported the slowest Revenue Growth since going public. A closer look at the numbers. Our Parent Company comcast rising in the premarket after beating estimates. Well talk to chairman and ceo Brian Roberts in a few moments. Another look at the premarket. Dow first backtoback losses of july. S p has alternated gains and losses for nine sessions now. More squawk on the street from post nine after a break. W glass . They are. Do i look smarter . Yeah, a little. Youre making money now, are you investing . Well, ive been doing some research. Let me introduce you to our broker. How much does he charge . I dont know. Okay. Uh, do you get your fees back if youre not happy . dad laughs wow, youre laughing. Thats not the way the world works. Well, the worlds changing. Are you asking enough questions about the way your wealth is managed . Wealth management, at charles schwab. In a world held back by compromise, businesses need the agility to do one thing another. Only at t has the network, people, and partners to help companies be. Local global. Open secure. Because no one knows like at t. Two dow stocks moving in opposite directions. Boeing in the green after its loss per share was less than expected. This was concerning that onetime charge stemming from the 787, a 747 program and those refueling tankers. Revenue and forecasts came in above expectations and then coke falling after a revenue miss. Company saw troubles in international, headwinds more severe than anticipated, pricing did help with the top line. We will talk to the companys president and coo james quincy in the next hour. Organic revenue up three but almost all price as volume was flat. Yeah. I mean, the problem with cocacola does have a smaller form factor bottle doing well. Dont want to just do it by lease liters. In the end pepsico has a better model because they have snacks and did better. Global volume for cocacola grew 1 year to date, even in the quarter not what you wanted. I have to tell you i look at cocacola and think its not going to go down a lot. Still generating a lot of cash, still a loved company. People never feel like they went wrong buying cocacola. Margin expansion 100 basis points. Not bad. They are if there werent such a thing as pepsico you would say this is a company doing quite well, not great, better than mcdonalds versus expectations. But no, i cant rave about it. I cant rave about it. I see core sales going up 3, prior 4 to 5. No. I cant rave about it. Was not as good as i expected versus pepsico. You feel pepsico is the better choice in that arena. Oh, no. I i believe and strongly that thats the case, my travel trust owns pepsico. Pepsico, what had adjusted total bang up quarter, one of the best organic growth and people love fritolay. Boeing, despite the cut in guidance because of the charge, its still above the street, and revenue guide is affirmed. Geez, boeing, kind of set you up. Put that charge in. People were very worried. Boeing has an unbelievable cash flow. Look, you look at american air and delta and the stocks, remember american air was deferring order. American air kind of footballing the price. I think they were trying to get a better price in planes. Air space demand, remember it is still expected to grow double digits next year. Boeing makes me feel more confident about that. The stock is not expensive. Generating a lot of cash. Good quarter. Both these stocks coke and boeing have similar dividend yields. On the miss environment you have to believe that helps. 3. 2 . Im not going to panic coke because you get that people will say its a bomb with potential upside. Boeing, look aerospace we saw it yesterday, they said aerospace was terrific and greg gas, is a tough guy. Straightforward guy. A sense this industry is not going away and a lot of this is going to see tremendous orders from overseas. Boeing, look, you have to buy the planes in dollars. This is not a strong dollar. You have to buy the planes in dollars. One of the few Companies Like that. Cisco another one, buy their equipment in dollars. But people are buying their equipment and a lot of people felt with a weak weak euro, and then by the way air bus does well. The bull market is robust. In an area where globalism is under attack is there a more globally produced product than an airplane . No. I mean, greg hayes with impassioned defense of free trade. But look at u. S. Steel, letter x, we have shut down china. Were not importing anything. You shut down china and korea, letter x had an unbelievable quarter. That stock could go up 50 . China and korea shut out of our market. Still 5 billion market cap company, right now 3. 3 billion. I mean hyman roth business was bigger than steel, even back then in 1959. When u. S. Steel had a big business. Exactly right. When we come back well get cramers mad dash and count down to the opening bell and another look at the premarket. We still havent gotten to panera and twitter and comcast. We will talk to Brian Roberts, opening bell in about 12 minutes. Resident of the north face, we are working on the prototype to match customers to gear. Watson, lets give it a try. Say its midjune and im backpacking in yosemite. Of our 353 jackets, i can recommend nine. Watson, what if it rains . There is just a 3 chance of rain, so i recommend the breathable stretch fleece fuse form dolomiti jacket. A Perfect Choice watson. No wonder our Customer Loyalty numbers keep climbing. I believe we can do even better. I like the way you think. Everyone talks about what happens when you turn sixtyfive. But, really, its what you do before that counts. See, medicare doesnt cover everything. Only about eighty percent of part b medical costs. The rest is on you. 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You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Options action all right. About no, we got we have a long time before the opening bell but we will move things quickly because we want to get to Brian Roberts to give him adequate time. I dont want to mention any analyst name but yesterday stiefel put out a devastating sell on panera, saying panera is going to report a number, comparable number well below and urged you to sell this stock. They did 4 , ron shay, who will be on our network by the way, talking about panera. They delivered a blowout quarter and panera 2. 00 is doing great. The sell seems premature. Maybe created an opportunity. The stock went down, down hideously, my travel trust owns this. I said sell . Sell . Like playoffs, playoffs. And the asian Chicken Salad one of the great bargains of all time. What do they retail that asian Chicken Salad. 4. 39. Big portion, too, right. Dont take the bread. Take the apple. Keep an i on panera. Other names, including twitter, we havent