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International franchise. Lets get headlines from carol massar. Apple out with its earnings. Quarterly profit rose to 7. 75 billion. The jump in iphone sales making up for the drop in ipads. Microsoft out with its earnings after the close. Profits fell shy of estimates. Half it down by the acquisition of nokias handset business. And herbalife shares rise getting more than 25 as bill ackman failed to convince investors there was fraud. Cory johnson joins us from san francisco. Lets go through microsoft. How did the Company Performed during the quarter . Gross margins slipped but we have seen that going on for the past couple of months. We were talking about the surface. I was just asking. 409 million spent. Somebody out there is buying a lot of surfaces. Maybe validating the surface team we will file later. How much . 409 million. A lot of money to develop things like the surface and the xbox and a lot of software. Talk about the profit margins. They are declining. As the business shifts

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