goldman, barkleys and credit suisse have all raised price targets. morgan stanley did a month ago. companies coming out with more positive comments. caterpillar, the conference call very important here. good comments earlier on but very cautious in the 11:00 a.m. conference call. third quarter very tough for sales and profits. may lose money in the third quarter. that was a little bit of a surprise. talking about the possibility of a significant rolling shutdown. hopefully you saw maria's interview with the ceo. that conference call came out around 11:00 eastern time. dipping down and coming back late in the day. freeport in positive territory. you saw the ceo a little while ago. financials weak all throughout the day. we did see banks come out with disappointing earnings overall. credit deteriorating a lot more

quickly than people anticipated. that issue not going away. >> for sure. see you a little later. federal reserve chairman ben bernanke cautiously optimistive about the economy. today strategy. hampton pearson has been following the chairman's testimony. >> hi, maria. in his midyear report to congress, ben bernanke says the economy is slowly on the mend but unemployment remains a trouble spot. >> more recently, the pace of decline appears to have slowed significantly and find demand and production have shown tentative signs of stabilization. the labor market, however, has kimed do weaken. >> lawmakers the central bank will keep the rate at a record low level for an extended period of time and he and his fellow policymakers do have an exit strategy for unwinding the fed stimulus. >> the fomc has been devoting considerable attention to issues relating to its exit strategy and we are confident that we

have the necessary tools to implement that strategy when appropriate. >> the fed chairman says the central bank is prepared to take on the job of systemic risk regulators as part of reform but bernanke and lawmakers clashed over the role of bailing out aig and its opposition to lawmakers calls for more audits of fed action. >> is that your position that this bill, if it were to be passed, would enter fear directly with interest rates setting interest rates? >> if we were to raise interest rates at a meeting and someone in the congress didn't like that and said i want the gao to audit that decision, wouldn't that be viewed as interference? >> the obama administration wants a new consumer protection agency as part of its regulatory reform taking away some of the fed's authority. today the fed chairman showed no signs they have intention of giving up their consumer protection turf.

>> a check on how the market action may continue throughout the rest of the year and how to invest in this environment. ian cook, senior market analyst with ig markets. welcome. >> thank you. >> andrew, let me kick this off with you. a lot of positive momentum for sure. how are you investing in this uncertain time. >> a very strong year so far particularly in the risky parts of the bond market both high yield and investment grade corporate that the value has definitely -- would be a little choppy during the summer. the data is going to be a little bit mixed because the economy is at a turning point. as people get more comfortable with economics, you should see those parts of the markets continue to rally. >> dan cook, what do you think? what did you make of bernanke's testimony today. >> he's saying similar things. everybody would love a timeline from him. that's not going to be available till after the fact. i agree with him.

i'm cautiously optimistic. it's choppy summer. kind of hung around this range. have had good news. there still could be a lot of wait on this market. >> what does that mean, apply with caution? how are you investing specifically then? >> i'm standing to the sideline in a lot of cases. i'm look for companies that have either pulled back, still have the strong solid fundamentals, maybe have been hurt by sector performance. but ones that show a lot of promise and nothing in the midterm. it's either a short term day trade or looking out over the long time three to five years. >> you say don't touch the financials. are we not out of woods. >> not anywhere near out of the woods. unemployment is still a huge issue. there's still, we've seen corporate credit loose be considerably, consumers small businesses are still struggling. there's going to be higher default rates putting pressure on the banks overall. >> dan, do you agree with that? you were bearish going into earnings season and now you're more optimistic?

why, have you learned something out of the earnings and what about financials? >> was that for dan or andrew. >> that was for dan. >> okay. actually i'm not optimistive at all about the financials. i'm still would be more on the bearish side. with caution. i'm not saying it's all doom and gloom. there's still a lot of concern out there, and nothing's really been fixed. we still have the toxic assets that just aren't even discussed anymore as we forgot about the rally. they are still there. >> let me move over to the earnings news of the moment. that's starbucks, 24 cents a share. looks like it's better than estimates. mary thompson is at the nerve center with more details on this. what can you tell us about the starbucks? >> the most important thing, nongaap earnings compared with 16 sent a share in last year's fiscal third quarter. analysts looking for 19 cents a share. it also beat estimates coming in with revenues of $2.4 billion.

that was slightly ahead of estimates. analysts looking for revenue of $2.4 billion. for the full year, they expect earnings on a nongap basis of 44 to 45 cents a share and also introducing some outlooks for fiscal 2010, specs earnings growth of between 13 to 18% and also is forecasting operating margin improvement of 1.5 to 2% for the year and for its international operations is expecting operating improvement in excess of 2%. so once again, the headline there of course, starbucks beating estimates on the bottom line by five cents a share on a nongaap basis. back to you. >> mary, thanks very much. baev got the numbers out of starbucks. how would you characterize the second quarter reporting season so far and then i want to get your take on financials, as well. >> my understanding about 70% of the companies reporting have beat. you're seeing pretty good numbers on the top line. the revenues and that gives you saenz of the green shoots story

playing out. so tar so good. knock on wood. >> are you investing following growth? do you want to invest in the companies you believe will see growth or are you using other metrics in terms of picking stocks and picking areas to sit in? >> you know, you always want to be a value investor and make sure you don't overpay. in an development where growth is hard to come by, those companies should get a better premium. so a starbucks that's having a successful turn around is going to be able to grow its earnings, that's a stock we would be interested in. >> i know you're focused on the bond market here. amazing numbers in terms of the amount of money moving into the bond market this year. $159 billion which is 9% of assets into the bond market. certainly that has been the place to put money. trim tabs reporting that's $1.33 billion per trading day. what's behind that move? >> i think you've seen an increase in the savings by

americans. you've gone from basically zero to 10% in one year. that money has to go somewhere. they're investor who have never made money in stocks in their entire career, 15 years have not made money. as they look at alternatives where you see bond yields investment grade corporates and high yield corporates at very attractive levels, you can lock in 8, 9%, and achieve returns, that's an attractive level to enter. >> you think it continues? >> i think it's going to continue. we're look can at a long-term secular move. a great way to get exposure to equities but not having downside risk. >> speaking of equities. final question here, dan cook said he's not going to touch financials. where are you on that in terms of equities? >> i think ob equities you have to be very cautious. there are certainly parts of the market you want -- that are well positioned, for instance, assetmores or even exchanges.

for the banks, i think the bonds are much better place to investment. hybrid capital traded 90/10%. the goldmans, the jpmorgans, basically drawing the line in the sand they will defend those names. that's a relatively safe way to get a very attractive yield. >> gentlemen, great conversation. so appreciate it. thank you. we'll see you soon. it's an earnings-filled hour with "closing bell." we've heard from starbucks and waiting now on results from the technology heavy hitters, yahoo! and am out momentarily. they're both dual this half an hour. we will likely see those companies set the tone for tomorrow's trading session. we'll also look how investors can take advantage. the nasdaq is up 20% in 2009. will it continue to move on the heels of these numbers?

welcome back. exposure to eamericaning markets one of the big drivers this earnings season that's helped freeport and freeport mcmorn

cushion against the weak demand. i spoke exclusive to the ceos of both companies. this is what they had to say on their ex-posh to the emerging countries, particularly china. >> most of the strength is in the emerging market theater, particularly china showing signs of an emergent be recovery that we think is -- and they never went negative but they should register close to 8% real growth they targeted for the year. china has been the source of copper demand globally in the face of weak demand in the u.s. and the western world. >> and for more on the earnings season so far i'm joined by portfolio manager at u.s. global investors. good to have you on the program. welcome. >> good to be with you. >> thank. >> you romeo, let me kick this off with you. what's different this earnings season going into the second quarter period, a lot of people saying this is the most important earnings period in a decade because of what we have all just experienced with regard

to the global economic 0 slowdown. we're waiting to hear commentary about the rest of the year. what's your take away from the earnings season so far? >> i like your previous guests. i think i'm cautiously optimistic. i think a lot of the companies are beating estimates because of a lot of cost cutting. i think sales have been a little bit weak. if we get a pickup, i think that positive economic leverage will gave way to exexplosive earnings growth. >> it certainly isn't that story just yet. right now it's a story of cost management. i guess the question, bruce, is when does this story of earnings move from a cost cutting cutting expenses story to run of revenue growth. >> most of what we see suggests that we continue to be right on the verge of moving from recession into recovery. in fact, maybe this month or the next month we'll start to see growth from an economic standpoint and i think as he suggests, the operating leverage that seems to be there suggests

that earnings could fare very well for many of these companies. >> what do are you expecting, let's say for the second half of the year in terms of a corporate recovery, bruce? >> we think that there will be a rebound, particularly many of the early stage gains you get tend to come from the natural rebound as you get penitentiat demand that flows through to the economy. we think through the end of the year, visibility is the pretty good not only for economic growth but for earnings, as well. >> in terms of investing, romeo, tell me how you want to be investing in that scenario. you know, we just heard from two executives of major global institutions, free part mcmoran and caterpillar talking about emerging markets in particular china. do i want money in emerging marks or is this a u.s. story in terms of investment in. >> i think a well balanced

portfolio should include eamericaning markets because i think the dollar will continue to be weak over the longer term and i think that would benefit those markets and they're going to be growing much faster than the u.s., as well. have you double catalysts there for that sort of an investment. >> how are you investing today? can you give us a breakdown? >> what we do have some emerging market exposure but i also manage a china fund. we're very buttish on china because they've had very positive economic numbers since bottoming last october and think that they'll continue to exhibit strong growth numbers going forward. >> more brave news this time on yahoo!. the numbers are out in terms of quarterly numbers. the estimate was an 8 cents a share profit. estimate on revenue is $1.1 billion. jim goldman it, looks like these numbers are better than specced. what can you tell news. >> so far these numbers are better than expected.

let's get right to it here. the estimate as you said was eight cents a share. yahoo! reporting ten cents a share beating estimates by two cents a share on net revenue of $1.36 billion excluding the company's traffic acquisition cost. the apples to apples estimate there is $1.15 billion. operating cash no, this is yahoo!'s wave talking about ibada. comes up a little light. 3 $5 million versus the $403 million that wall street was looking for. let's look at the company's third quarter guidance. this might be the reason why we're seeing the shares sell off to the tune of about 3% on your screen. 1.45 to $1.55 billion for its gross revenue. that includes those traffic acquisition costs and the range was 1.52 to $1.57 billion. so yahoo! is slightly lowering the mid range of the guidance there, and that might be a little softer than what folks were looking for.

operating cash flow ibida the range looking at 330 to $370 million. that is substantially lower than the 430 to $430 million that some on the street were looking for here. basically we are seeing softness continue here at yahoo!. this is going to be an interesting conference call. carol barts, the company's ceo there has stressed for some time that i canyahoo! is not merely competitor, that the company is more than just search. these are the kinds of numbers that will juice more discussion about a deal between yoo yahoo! and microsoft and why some kind of partnership is so important to those companies. >> genemanster with pipe ter afterry joins me to take a look at these numbers. gene, you've seen the numbers. what's your take on the quarter at yahoo!? >> it's a little bit softer especially on the display business down 14% year over year, consistent with what was down last quarter.

we were hoping for 11%. that was the key number we were on. we were wishing that would be a little bit better. the guidance in some ways you can throw it out. we have a new cfo, carol barts is perennially conservative and probably keeping a low bar for expectations. it would have been nice to have seen more than just stabilization in their advertising business and discard the guidance. >> would you be putting new money to work in yahoo!? it closed at $16.75 a share. 4% decline. you want to be buying yahoo! at 16.31 right here. >> we would. we think there's operating margin expansion and if they continue to cut projects which they said in the press release tonight that nonoperational projects are being cut, that's a sign margins are going up. we think the stock goes up, as well. >> real quick on apple. we're waiting on apple to come pout.

i know you're going to be coining us once again. is there something that you are looking at in terms of apple being most important? what metric is most important to focus on? >> the macs are the most important as far as the quarter and 2.6 seems to be the bogie the whisper numbers for the mac. the guidance obviously is important, too. as everyone knows, they got down consistently ten of the last 12 quarters. how much they guide down is going to be the question. maybe not if they guide down or not but do they guide less conservatively than they have historically. >> do you want to tell me if you're going to buy apple ahead of the numbers. >> i think you do. whether they make the whisper numbers is irrelevant. the reality is the september guide assumptions conservative. >> we'll talk to you momentarily when we get those numbers, gene. thank you very much for that. we'll look at the apple mac numbers. $2.6 million the number he focused on. we're waiting on the apple numbers and will have them

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and you're looking at a chart of advanced microdevices. amd reported second quarter revenue at $1.1 billion.

that was fractionally better than the estimate of $1.13 billion. looking for a loss of 47 cents a share. the stock is down 8%. the company just reported earnings saying the second quarter revenue as you can see looks slightly better but the loss of 47 cents a share estimate we are getting that number on an eps basis for you. the stock right now is certainly reacting to numbers just coming across from amd. if we can get that eps number up on the screen, again the estimate was for a loss of 47 cents a share for amd and in fact, it is even worse than that. coming in at 62 cents a share on amd. we are waiting for more commentary out of the company. face value, these numbers worse than expected, loss of 62 cents a share on amd. stock down. down to one left this hour. results from apple due any minute. we'll have those numbers as soon

as they're out and show you what the stock does. we are continuing our conversation as well about the earnings news and investing in this environment. we're back in a moment. here's a look at some of today's winners and losers.

welcome back. we are talking about a season deep into earnings. we are back with romeo dade everywhere u.s. global investors and bruce mccain, chief investment strategist with key private bank. it's been a busy evening in terms of earnings. let me get your reaction to what we've seen on the table so far. you had weaker than expected numbers, a bigger loss in amd numbers tonight although yahoo! also was a bit light so far. many of the earnings that have come out have actually been above expectations and here we have two technology names that fall short in an environment when technology has been the winner of the day, up 20% on nasdaq year to date. would you put money to work in technology here, bruce? >> we are using technology although typically, from the end of the recession for three to six months, technology is a little weaker. probably in part because as the dollar sinks, technology

companies typically have heavy exposure to overseas revenues. we're a little bit more cautious but looking out a year or so, it's a strong source of growth and we would be investing in technology. >> romeo, do you agree with that? >> yes, i do. i would use any sort of weakness we have in technology to actually buy more or to salvage positions. >> where specifically in tech? here we are approaching the season where companies will actually change their i.t. budgets. are you expecting we're going to see corporations today putting more money into r&d and it in an environment where we're remaining wondering when this economy turns around? >> i don't think it will be necessarily this year but it's our plan for 2010, 2011. i think they'll start to ramp up spending as the economy starts to pick up. i don't think we're all clear going into the end of 2010 but i am more -- excuse me, the end of

2009 but i am more optimistic in 2010. >> the revenue own apple was $8.2 billion. this is the company's thard quarter of 8.34 billion in third quarter revenue for apple computer. and, of course, apple has been one of the stars in the business. apple third quarter numbers, $1.35 versus an estimate of $1.17. do you own apple either you, bruce? >> yes, we do. we recommend it and are putting into client accounts. >> would you put new money to work right here? >> yeah, i think we would. again, the longer term outlook for the company, its product lineup to us looks like that's going to be a very strong company going forward. and we think that's a place to be invested. >> yet the stock closed at 151 and change and is actually trading down fractionally. stick around here. when we get back 0 jim goldman,

he's reading beyond just the headline. instead, jose, the stocks trading down. what can you tell news. >> stocks tradinging down again selling on the news as we all bought on the rumor looking at numbers headed into the report here because we've seen a huge run in am shares over the past week. take a look at these numbers. 1.35d is just an enormous number against the $1.17 consensus on wall street. $8.34 billion. what recession? 1.82 buildon the comparison on the street. mac sales, 2.6 million macs sold on the quarter. that is a blowout number. 10.2 million ipods, 5.2 million iphones. both of those metrics, all three metrics beating the street. the gross margin number, 36.3%, absolutely huge. let's take a look at the fourth quarter guidance here. this again might be one of the reasons why we're seeing apple shares sell off a little bit

here. $1.18 to $1.23. the street was looking for $1.20 to $1.29. when you look at apple's historic guidance usually being very conservative, this is a little less conservative than some on the street were probably looking for. as we digest the numbers we might start so see the shares rebound ever so slightly. 8.7, t$8.7, to $8.9 billion is revenue range against the outlook range consensus among analysts on the street. we're going to see apple leveling off. that conference call begins at 5:00 eastern. this is a blockbuster report. when you look at these numbers, you've got to think this report is going to justify the huge run we have seen in apple shares certainly over the past several weeks. it's up 77% year to date. >> in fact, the stock is now trading up. closed in new york at 151 .51. back with genemanster, senior

analyst piper jaffray. we're waiting on the mac numbers. from what you've heard so far, let's talk about the mac numbers and the margins here. what's your assessment of the quarter at apple? >> the mac was $2.6 million. that's spot in line where we thought it would be up from our original estimate of 2.2. this business has rebounded fast. and we're still in a tough economy. imagine what's going to happen when things get better. gross margins were unchanged from last quarter, 36.3%. with tough component environment, everyone was expecting margins to go down. i don't know how they're doing this or what deals they're crafting to get these impressive margins but this was a solid quarter all around. i think that their guidance as typically is conservative but even more so now given the strength in the mac business and also the iphone going into september. >> the stock up better than 70% to date. do you want to put more money

into apple? >> yes, the reason why the september quarter as people digest these numbers they're going to realize the level of conservative in the guidance and get comfortable this is a stock you can own without having to sweat the september quarter. >> and in terms of growth going forward, where does it come from? is it from devices like the ipod or the mac? >> well, the iphone really is the big growth driver. we think there's a significant opportunity they roll that out more internationally, china for example. but the mac rebound is going to be a big change in the story over the next couple quarters going from down 7% last quarter to up a couple percent this quarter. that's a good sign. this business was growing 40% two years ago. there's no reason to believe that the mac business can't get back to 15, 25% growth rate. >> we'll leave it there. gene, rated integrate to have you on the program. thank you. gene munser with us. back with romeo and bruce mccain

here. let me ask you both a simple question, your gut feeling at the end of 2009, do you think this market is higher or lower than where it is right here? >> i would say higher. >> why? >> because i really think that the economy will start to really pick up and i think as we start too look into 2010, i think we'll be into recovery. i think as a result of that, people want to own stocks. >> bruce? >> we think it will be higher, as well. ours is more shorter term outlook. we expect the economy to gain some traction here that will help in a variety of fashions but also there are a lot of people we think who still are not fully invested in the market. that will help to propel prices higher, as well. >> certainly there is cash on the sidelines, isn't there? >> definitely. >> what group, second question here, what groups if we talking at a market that's going to be higher at end of the year, what groups do i need to own to participate in that leadership move? >> to me?

>> bruce. >> i think -- >> we would favor particularly basic materials and energy. also to some degree consumer discretionary and technology to participate in the rally. >> romeo? >> technology and resources in. >> all right. we will leave it there. great have you on the program. the resource story is a hot one. all things like commodities, copper up 70%, oil, gold, great insights. romeo dader, bruce mccain, appreciate your time tonight. as we saw, california looks like it's reached a deal to balance the budget. does the end of one problem open a can of worms for another? what does it mean for the nation's largest issuer of muni bonds? we'll get into it next. [ engine revving ]

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that won't go down -- guaranteed. call fidelity at... for details about guaranteed income for life, and change the way you think about your retirement savings. welcome back. a live picture of sacramento, california governor arnold schwarzenegger and lawmakers have reached a deal to close the state's massive deficit. but the cuts to balance the budget cut very deep and that could bring about another set of problems. jane wells is in the state's capital right now with the latest. jane? >> hi, maria. the budget fix is a mix of cuts, of borrowing and pushing some costs into the next fiscal year but no tax hikes. the deal is already having a

positive effect on california state bonds. yields lower among some of the most heavily traded bonds. >> this is a budget that will have no tax increases, a budget that is cutting spending. we have made -- we dealt with the entire $26 billion deficit around $15 billion in cuts that we're making. >> frankly, we may not be done yet. we pray and we will work for better economic news sooner rather than later. >> yeah, there is some assumptions in this budget fix of an improving economy but of course, it's not a done deal under the legislator votes on it probably thursday of this week. here's what the budget also includes. the state promises to repay schools billions on some of the cuts it's having to make and repay local governments billions it plans to borrow which may force some of those cities to raise toxtaxes or get loans and

it doesn't address long-term problems like a tax structure which is too dependent on wealthy californians. state employees are not happy. they are going to have mandatory three unpaid furlough days through next june. some unions are getting authorization to take a strike vote which could mean trouble down the road. today the l.a. county board of supervisors is threatening to sue the state if california comes to the county and tries to borrow or take money to cover its deficit. back to you. >> we will leave there t there. thanks very much. $15 billion in spending cuts. is it enough to get the world's eight largest economy back on track? what does it mean for california's muni bond holders in search of answers. >> i'm joined by jon miller. his firm has more than $63 billion in municipals. also, chris thorn burn. good to have you on the program. >> so john, you've got $63 billion in munis. 10% in california in general.

are you worried about your holdings in the california muni part of the story? tell me how you see things. >> well, from a national perspective, municipal credit has been under some pressure from the recession and california is sort of the poster child highlighting some of those pressures, lower revenue streams, causing a necessity to readdress budgets because 49 out of 50 states require a balanced budget every year. we are generally speaking constructive on credit relative to where credit is priced today in that credit spreads have been extremely wide. 000 they're starting to narrow. liquidity is improving and state governments are starting to address these budgets in a constructive way. so the market feels better looking forward. >> chris, let's talk about this deal, $26 billion shortfall. looks like we've got compromise as you just heard. lawmakers want to cut $15 billion in spending. the rest of the gap would be filled by taking funds from

local governments. do you think that this is the right solution for california? >> well, don't forget it's only about $2 billion being taken from the local governments. there's also been some cost shifting, bringing revenues forward and pushing costs back. overall, i'm disappointed because what you have here is $15 billion in cuts and about 7 or $8 billion in deferrals. those deferrals going to come due and we're going to right back in this budget mess in 12 months in the same situation. we really haven't solved anything but at least in the short run, we've stabilized things. >> okay. so what do you think still needs to be done? >> well, listen, the fact is is we had a bulth gap that opened up really back in 2000 at the end of the gray davis administration because of the huge run-up in revenues and the same run-up in expenditures in that big boubl period, and we're

still dealing with that. to some extent, we need to raise taxes. no tax stance doesn't make any sense. taxes as a share of income here in the state of california is maybe 14th on the ranking across states. we're not simply not a high tax state. what we are is a tax unfriendly state. we're very fond of high taxes on small bases, that's not how you do things. you need small taxes on large basises. we need a comprehensive reform of the overall revenue system. >> john, do you agree with that. >> i do. california has some unique problems that making balancing a budget in a recession particularly difficult. one is the two-thirds majority requirement to pass a budget. another as chris mentioned is the fact that the state is heavily reliant on the very top tax bracket and the high income taxes on that bracket. that makes the revenue stream very volatile. and real estate taxes are very low in california mandated by proposition 13. some reforms in those areas i

think are needed for the longer term. in the short term, this is a positive development because it stabilizes the credit and prevents a cash flow zplunch yeah, but i guess one question for you both here, is you know, are these cuts going to accentuate what has already been a dire situation in california and for the country? we are talking about the eighth largest economy and now we're talking about real cuts in terms of spending. the depth and duration of the recession in california would be at stake, no? >> absolutely. >> well, we're talking about $15 billion in spending that they're cutting back on. >> from a global perspective, that's not a big number, less than 1% of the state. this overall gap was about 2% of the state economy. the federal government would love to that see those kind of numbers. as you point out, the government's supposed to be spending more when times are tough, not spending less. one thing this does is accentuate the tough times we're already in. >> john?

>> i have to agree with that. municipalities are not in a position to be counter cyclical in their spending. they're pro cyclical because they have to maintain balanced budgets all the time consistently. they are put into a situation where they need to raise taxes and cut spending in a recession which can exacerbate some of the downturn. what the budget does is they have time to -- they have more time to recover should the economy recover, california's revenue should start to grow, making some of these pressures a little bit easier. that's going to take time. >> for sure. no doubt, it will take time. we hope you'll come back to discuss the progress. thank you, gentlemen. and tonight on cnbc, a special report "california in crisis," how the golden state is going to lift itself out of troubled times and shine once again. among the guests, sue herrera is in california and anchors the special report and is joined by reporters jane wells, julia

boorstin and jim goldman. join us for this special event at 9:00 p.m. eastern, 6:00 p.m. pacific right here on cnbc. now over to the nasdaq marketsite. melissa lee has a preview of what's coming up. >> on fast rally lives to fight another day. can it keep going? plus we'll have your setup ahead of big farm that earnings. the apple and yoo-hoo conference calls. we will have play by play updates live at 5:00 with me and all the traders. >> meanwhile, it's been a busy day on wall street. the late moofrs this hour. what's going to drive things this hour. we're back in a moment.

>> all right. the market was up 67 points today and after the close we had really important numbers. yahoo!, and apple aren't the only notables. cnbc's mary thompson at the nerve center with a look. mary? >> maria, after the bell earnings highlights include starbucks. cost-cutting puts that company to 24 cents a share. five cent ahead of estimates. revenue of 2.4 billion.

the stock getting a nice pump in the wake of that result. for the full year the company seized earnings of 74 to 75 cents a share and sees profits rising 13 to 18% in the next fiscal year. the apparel maker v.f. corp ahead of last year and 68 cents a share. the maker of north face auto share says business is tough across all of its categories and it does expect second half earnings. climbing in after-hours trade. gilead sciences, second-quarter profits 7 cents ahead of estimates on strong sales of treatments for hiv. its stock lower in the after-hours session. back to you. >> thanks very much. we told you earlier that apple reported higher-than-expected numbers. the quarterly results are out fueled by robust sales for the iphone. the stock is also higher by 2% right now in the extended hours and the earnings per share coming in at $1.35 and that's better than the estimated $1.17 a share.

$156.34. the revenue was 8.24 billion, better than the estimate of $8.2 billion for the third quarter and the macintosh computer's 2.6 million sold in the quarter and that was a key metric for g. munster as we heard earlier. 5 1/4 million iphones were sold for the third quarter in apple and they sold 10.2 million ipods which was down 7%. gross margins of 36.3% versus 34.8% a year ago on to yahoo!, where it also reported numbers tonight and that stock is also moving in the extended hours, although, as you can see, it traded down. the earnings were 10 cents a share, versus an estimate of 8 cents a share and this is yahoo!'s second quarter. gross revenue was 1.57 billion and that looks like it's better, but behind the numbers as you heard from jim goldman earlier there were weak spots and that's yet stock is trading down in the extended hours. let me quickly show you amd because this is a real mover in the extended hours today as well.

amd down 13%. the revenue is 1.18 billion versus 1.13 billion. again, issues behind the numbers because the loss was 62 cents a share, and it was much worse than the expected loss of 47 cents a share. so we are seeing investor reaction there for amd. we'll take a short break and we'll take a look at what else can move the markets tomorrow and we'll get you caught up on d tomorrow's opening bell. back in a moment. tdd#: 1-800-345-2550 "the dust might be settling... tdd#: 1-800-345-2550 that's great, but i'm not." tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 "i guess i'm just done with doing nothing, you know?" tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 "oh, i'm not thinking about moving my money. tdd#: 1-800-345-2550 i am moving it." you all want to run your businesses more efficiently, so we've brought in a team of experts to help. one suggestion is to make your shipping more efficient with

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here's what to watch for tomorrow. >> i'm phil lebeau, tomorrow watch for boeing's second-quarter earnings, but the foebl us will be less on the numbers that are recorded and more on the company's conference call. specifically what executives say about demand for aircraft around the world especially for the dream liner since boeing announced the delay in june. >> i'm mary thompson and this is what i'll be watching for on wednesday. more financial companies reporting their results including two big banks. morgan stanley and wells fargo. look for the impact of residential mortgages and credit cards on wells fargo, look for the impact on commercial real estate on morgan stanley's numbers. by the way, we'll have the cfo of wells fargo tomorrow on the heels of that earnings release. we'll want to know how the quarter is looking. the banks were down across the board today and that was the one

laggard. the rest of the market did pretty well. the oil and technology names were the leadership dwroups on the upside. the dow jones drill average had a pretty good spurt in the final moments of trading to end up 67 points near the highs of the afternoon, to level at 8915. the nasdaq picked up seven points, about a third of a percent at 1916 on the nasdaq and the s&p 500 was higher although it was limited due to the weakness in the banks as well as a handful of tech names. s&p up fractionally. i'll see you tomorrow on "closing bell." have a fantastic evening. fast money is up next. thanks for being with us. after the bell earnings reports makes shares of apple higher. the company beating the street estimates for both earnings and sales selling 5.2 million iphones this quarter alone. yahoo!, reports a higher profit and revenue comes in 13% lower than a year ago. shares are lower in the after-hours and the nasdaq closed higher for the tenth straight trading session. that is its best run in 12

years. that's cnbc.com news now. i'm rebecca jarvis and "fast money" with melissa lee starts right now. the market's winning streak continues. i'm melissa lee and this is "fast money" fresh off the trading floor. these are your "fast money" traders. can it make it 11? we'll cover it from all angles during tonight's big show including one top strategist who says this streak will soon end badly, first, we have to get to apple trading in the after-hours session right now. we are seeing it up by 2%. we want to go to jim goldman in silicon valley for the very latest. the conference call is about to get under way. jim? >> melissa, indeed. i've got you guys in this ear here and i've got the apple conference in this. >> we'll see who i get right and what happens, but yeah, you're looking at the numbers and apple shares sold off instantly as soon as the numbers came out and as soon as investors got a chance to truly digest just how blockbuster this report is.

we saw apple shares basically undergo an almost instant turnaround here. the eps number $1.35 versus $1.17 estimate. $200 million, well above what wall street was anticipating and each of the individual unit, 2.6 million macs, 10.2 million ipods, 5.2 million iphones and we just had andy zacky write me a note after my blog post letting me know for the first time iphone revenue has eclipsed ipod revenue and that is a real sign of the times here because we always refer to apple as an e podmaker as one of the key products there, but iphone eclipsing that on a regular basis. this is eclipsing last quarter's performance becoming apple's best non-holiday quarter in the company's history. guidance what gene munster calls comical is again conservative as we look out toward the company's fourth quarter, butho