the context of the s&p 500 being about 20 as we were just a couple percentages away from all time highs. >> who would argue with him. i say if we get 10% that's good. and it will out perform most asset classes. >> have fun ringing the bell with your friends from virginia tech tech. >> give it to me, baby. >> closing bell is next. hey, everybody, welcome to the closing bell. i'm kelly evans at the new york stock exchange. >> this afternoon, well, it's pretty much all about earnings, stocks in a bit of a holding pattern ahead of reports from apple, twitter, at&t, ebay and others reporting tonight we'll tell you the key numbers to watch for in those reports coming up. >> also, noted investor howard marks sits down with an interview with how investors should get an edge at the time when there's so much information

out there. >> you want to finish that thought? >> it's like a teasy question that gets people going. >> it's 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 school's largest donation ever. as you can imagine. we look forward to talking to them, talk about that and get sandy's take on the current state of a financials, all of that coming up a little bit here. it's 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 can't help investors feeling cautious here

given what wall street think apple is going to report. they're 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 that's 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 we'll 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 we're seeing here is certainly we expect that iphone number unit, to be down 18%. that's 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. we'll wait and see whether executives on the call think they're 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, i'd be surprised if he

addressed that. again, i did see that report from that chinese executive. there wasn't a lot of data in that report. if cook did address to that he'd point out that apple's 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. it's holding up. that wouldn't indicate a brand that's in a free fall as that chinese tycoon made it out to be. we'll 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 he's 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. we'll be back with the numbers in the 4:00 p.m. eastern hour. >> all right. julia. >> thank you very much. we'll check back with her and with josh lipton next hour. let's get to the closing bell exchange. with the dow down six points, i ask you a loaded question what's more important for you and the markets today, the apple report or the fed meeting this week? >> i'm actually not going to answer either of those. >> i didn't 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 well-recorded, it's at a critical point, almost to the same point where the monetary policy is hurting the markets. when they're 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. that's what we're watching. >> is that why we're meandering here? >> it is. this week was going to be catch as catch can. it's a big week for earnings. a thousand companies reporting. and some of the big ones you're 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. >> it's interesting you're 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. it's 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. it's the same with the bank of japan. it's 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 170's to low 190's. why? there's no hints that anything is going to happen with janet yellen other than bringing out a couple hawks every now and again to show we're dealing with that other side. should we ever need it. the reality is the markets nervous that the central bankers don't have all the t's crosses and i's dotted. what's that big headline? bank of japan is one of the top ten owners of the nikkei. they're down for the year. do you get europe to buy japan's 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 we're having a tough time deciding what is real and what is show. and you talk about they're going to be data dependent on a june increase out of the ofmc. they're going to be watching the polls over in the uk. if they're getting close to an exit out of the eu i'll be surprises if they do a rate raise, even a modest one as a prelude to a vote they're going to exit the eu. it will throw the markets into some turn moil. a rate raise and uk comes out of the eu it's chaos. >> that election we have coming up later this year being -- >> the political risk is starting to wash over. you're right, they could always make excuses for why they shouldn't do it. fed funds futures are now

pointing to us getting to 3/4. it's moving up. it's into december if you look at the numbers right now. and that's a bit of an issue. and i would hope that the policymakers wouldn't 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. we're looking at an area where u.s. stocks will be the best performers of the year. we've 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 we're looking at now things are going to benefit if inflation runs hot the fed has signaled they're allowing it to run out. wheat, emerging markets, we think will benefit in this environment. >> all right. gentlemen, good to see you l. rick i'm reminded it was a great analogy you made about king kong let's 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. it's by far the underperformer today. coming up, sandy weill speaks with us exclusively along with his wife. we'll talk about their $185 million donation to advance neuro science research and we'll get his take on whether he thinks banks are still a

profitable business in the face of massive regulatory scrutiny. we'll get investment advice from otree capitals howard marks. how does he find a good investment? you're watching cnbc first in business worldwide. proud of you, son. ge! a manufacturer. well that's why i dug this out for you. it's your grandpappy's hammer and he would have wanted you to have it. it meant a lot to him... yes, ge makes powerful machines. but i'll be writing the code that will allow those machines

to share information with each other. i'll be changing the way the world works. (interrupting) you can't pick it up, can you? go ahead. he can't lift the hammer. it's okay though! you're going to change the world. man 1:man 2: i am.

woman: ex-military? man 2: four tours. woman: you worked with computers? man 2: that's classified, ma'am. man 1: but you're job was network security? man 2: that's classified, sir. woman: let's cut to the chase, here... man 1: what's you're assessment of our security? man 2: [ gasps ] porous. woman: porous? man 2: the old solutions aren't working. man 2: the world has changed. man 1: meaning? man 2: it's not just security. it's defense. it's not just security. it's 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 panel's recommendation. huge loss today for that stock. for the latest edition of the spark value edition i sat down with howard marks, to co-chairman 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. there's 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, everybody's 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. what's the likelihood it's really going to be under priced and stay that way? as you know i wrote a memo in september called it's not easy. and the point is, it is not

easy. and i said in the introduction to my book it's 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 that's the -- maybe the primary way in which i'm 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 can't. >> if they come to you and say, you know, and maybe they have in year's past apple is going to be great investment. tesla is going to be a great investment. i don't want to be stereotypical of young people. if they're excited about these opportunities and think they'll have staying power, are those examples where you'll push back? >> of course we're not technology investors, but i'll 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 let's buy tesla because they have a great new car that doesn't use any gasoline. my response to him was always the same. who doesn't know that? if there's nobody in the world who doesn't know that, then that's not a reason to buy an investment. because if everybody knows, it must be incorporated in the price. that's what they call the efficient market hypothesis. if we're going to be superior investors they have to think of something that other people haven't thought of. they must have a piece of data other people don't 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 i'm glad i didn't learn that as an undergrad. it's 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. let's 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 you've discovered what a great company is. everyone else did the same thing. >> it happens a lot with data. that's why there's 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 howard's interview online. it's 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 couple's $185 million donation to neuro science research and we'll get the former citigroup's ceo take on all those regulations they face, coming up. i help pay the doctor, ain't that enough for you? there's things major medical doesn't do. aflac! pays cash so we don't have to fret. something families should get! like a safety net! even helps pay deductibles, so cover your back, with... a-a-a-a-a-a-a-aflac!

learn about one day pay at aflac.com/rap ♪

welcome back. cutting exxon mobil's rating down. the first time since 1930 it's 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 aaa's 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 don't know. >> i don't know if it signals a bottom in oil or if it's troublesome. this is something that's been

clearly forever. and now when you rattleth the ce of tradition, it's a headline thing. maybe it's 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. i've heard you on your show today, it's the bank of japan, it's the fed, it's apple, it's china. it's 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 what's that's 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 -- >> i'm 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 don't need to be a hero like i was thinking about being a cowboy. wait until you see the print. >> we'll see what happens after the close. thanks. time now for a cnbc news update. let's 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 he's hopeful a bipartisan bill could emerge by july. when $2 billion in principal interests comes due. exxon mobil's aaa's rating has been cut.

believe it or not and i double checked this customer satisfaction with the nation's air companies is the highest it's been in two decades. jetblue and southwest delivering the best service, while united and american saw dramatic improvements in their rankings. 27-year-old disabled syrian refugee carried the olympic torch through a refugee camp in athens. the olympic committee saying it's a symbolic gesture of support to victims of the global refugee crisis. that's the news update. he's 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 doesn't help. 30 minutes left. a little bit more than that we're 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. we'll 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... baked-on? it's never gonna work.alfredo. dish issues? cascade platinum... powers... through... your toughest stuck-on food. so let your dishwasher be the dishwasher. e? told you it would work. cascade. you ppremium like clockwork. month after month. year after year. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it?

if you have liberty mutual deductible fund™, you could pay no deductible at all. sign up to immediately lower your deductible by $100. and keep lowering it $100 annually, until it's gone. then continue to earn that $100 every year. there's no limit to how much you can earn and this savings applies to every vehicle on your policy. call to learn more. switch to liberty mutual and you could save up to $509. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance.

welcome back. citi groo citigroup ceo sandy weill and his wife announced they're giving $185 million to the university of california san francisco. >> it will establish the weill institute for the neuro sciences aimed at finding treatments for brain diseases and psychiatric disorders. we're pleased to welcome sandy and jane weill. thank you both for joining us. >> thank you, thanks for having us. >> mrs. weill, so much attention in the healthcare industry and research is paid to cardiovascular disease, to cancer, certainly. it's still the neuro sciences that don't get a lot of attention, there's still that

stigma that exists for some of the diseases mental diseases that are out there. why is that, do you think? >> well, i think that that's a very old fashioned way of looking at things. and i think what thrills me so much about putting psychiatric care under neuro sciences is that it makes it into an illness like any other illness. and we'll remove the stigma from those disease and be able to help to cure much faster. for people to admit that they have these problems, it won't have the stigma it used to. the brain is a very complicated organ. so it's taken long time for this to happen. >> mr. weill, you've given -- >> can you call me sandy? >> all right. sandy. given your history in finance, when you give an amount this large, are you looking for a return on your investment?

or is this effectively a pure donation where you hand it over and say you know what to do with these funds? >> well, i think that they know a lot about what to do with it, but i think we can be helpful also. if you look at our philanthropic career over the past 40 years, joan and myself. we've been personally involved with the major institutions we've given money to. we've been chair of them from a period of 15 years to 30 years. so we are very involved. and i think it's very important that you get a return on your investment because that's how people will give more and give more. and ucsf's neuro sciences is ranked number one in the country for money from the nih for research in the neuro sciences as well as in the neuro surgery area. >> this is tough to do, but, okay, sandy, joan, like we're

old friends, joan, this is a very personal issue for both of you, isn't it? sandy's parents, his father had alzheimer's and suffered from diseases. your mother, thankfully made it to 101 and was still sharp as a tack at that time. is this why you're going in this direction now with your great philanthropy because it has hit home for the weill family? >> yeah, partly because we know what it's like to suffer with these diseases c. sandy's mother had alzheimer's for the past 15 years of her life. and my father-in-law had severe depression. not too long ago we lost a very dear friend to severe depression. so we really want to make sure that these diseases are helped. and, you know, my mother did have good mental health. and we'd like to know why and

can we do this for other people as well. and part of this is for preventive medicine as well as taking care of those that are unfortunately ill >> it's very important to remember that with all the progress that we've made in cancer and cardiovascular diseases and other diseases, people are living longer. and more people are going to be subject to getting alzheimer's, or parkinson's or other neuro degenerative diseases. and that's going to c aostot of money, and it's going to be really terrible for the people's lives. so i think it's important that the neuro sciences catch up. the reason they are so far behind, is up until recently we weren't able to look at a brain while a person was alive. once the person is dead, nothing's happening. now we have the tools to really see what's happening in one's brain. therefore, can see the bad things that are happening and we get to understand more about it.

i think we are looking at the decade where the neuro sciences will catch up. >> yeah, it's the second big donation by the way this month. sean parker we spoke with earlier he made a huge donation for immuno therapy treatments for cancer. the dollars are flowing into this field. we hope that it does bear fruit. while we have you, sandy, we wanted to ask you about the current state of the banking industry. you know, there's been a lot of regulation, there's been a lot of heated rhetoric on the campaign trail. you know, you've come out in the past and said we maybe shouldn't have gone through some of the things that resulted in the big banks we had before the crisis. where do things stand today when you look at our financial system? >> as you said in the campaign, everybody is shooting at the banks. hopefully, that ends when the campaigns end. because the banking system is

really incredibly important to the vibeerance of our economy and the economies of the world. american banks, really changed the whole world and was responsible for over a billion people moving from abject poverty to middle class as defined in emerging market countries around the world. that happened because we taught people about the capitalist system and how to create capital markets, how to raise money. that function has to continue. if it doesn't continue, i hate to think of what's going to happen to our economy. >> are you convinced, though, that dodd frank has been the answer? eight years after the beginning of the financial crisis we're still debating the same issues whether banks are too big to fail and what kind of regulat n regulatioregulatio regulations they should be subjected to. they believe they have a system that would allow the system to dismantle a bank that may be

failing. you've said in the past here on cnbc that you believe the big banks should be broken up. are we in a place now where we can make that happen? >> i only said that i thought they should be broken up if the regulators really don't let them do the job that they are capable of doing and should be doing to create vibrant capital markets. so hopefully that doesn't have to happen. but i think that we can write rules to regulate the banks and protect the banks from having problems with ten different rules on one piece of paper rather than 1,200 pages of dodd frank. i think it's -- i don't know anybody that's read the whole thing. so it's very, very complicated. i think it should be simplified and i think it can be simplified. >> more simple way of looking at it would you buy citigroup? we talked about jamie diamond

and buys shares of jp morgan in the middle of february. what are the prospects for your former employer? >> jamie had very good timing i think in what he did. he encouraged the market and other people to think the way he did, including myself. so i'm proud of what citigroup is doing now. the company has made great progress. i think it's terrific that -- not that they're the only one but they are the only one that passed a living will test. so i think they've shown they know how to handle the situation. i think mike corbett is doing a terrific job. i think the stock is really very, very cheap at a major discount to book value or tangible book value. and i think that with patience people will do very well, hopefully with the banking stocks. >> i don't know if you've heard, but i know you're focusing on your donation today, but just today, citigroup announced a shareholder vote on executive

pay there at the company only 64% of the shareholders approved the executive pay package. that's a whopping 36% that turned it down. do the major banks leave themselves vulnerable when they have the kinds of pay packages they do, vulnerable to the kinds of criticism they're getting from the candidates these days? >> you know, i think that it makes good political talk for everybody. they're all talking about bankers are overpaid, they shouldn't be making anything like what they're making. it's not surprising that the voters like that. i'm hopeful our next president will be much more thoughtful, dodd frank, talks about how and what a bank should do to -- in getting pay packages approved by the shareholders. i think that's something that the banks are going to follow through on. and i think it's a shame, but

it's not surprising that so many people voted the way they did because they have the bernie sanders talking that way all the time. >> well, we're pleased you're both with us. joan, i'll ask you the last question on the $185 million donation, i mean, how involved will you be in the process? they're going to break ground there in mission bay to begin the construction of the facility that will bear your name. i mean, how involved will joan and sandy weill be in that whole process? >> we always believe in being involved and giving our energy and our passion towards it. i mean, look, we are not scientists so i'm certainly not going to be running any experiments. but we will certainly give input in terms of what we as laymen feel would be the right thing to do. we're very excited about it. because what they're doing is going to give so many people hope. and that's the most important thing we can do.

so, thank you. >> indeed, no thank you. i mean, we applaud, of course, yet again another major philanthropic move by joan and sandy weill. their name in everywhere in new york. now it will be in san francisco. thank you for joining us, appreciate it. >> thank you. >> thank you very much. >> including my doctor's office by the way. sit back and think about it. truly they've had so many endeavors already. this is -- >> cornell university. >> oh, yeah. carnegie hall. it's everywhere. we've got 20 minutes -- 18 minutes cwith the dow positive. nike founder phil knight shares his thoughts on apple. big names reporting. we'll give you the latest keep it right here on closing bell.

we have not one but two news alerts to tell you about. what do you have? >> let's start with google's alphabet. federal trade commission according to dow jones is

extending the probe examining issues over concerns around google's android market position. we're looking at shares down just about 2.3% on the day. switching focus to u.s. steel, u.s. steel has filed a complaint with the international trade commission to initiate an investigation against larger chinese steel producers and they're distributors alleging that illegal unfair methods of competition is seeking to exclusion of all unfairly traded chinese steel products from the u.s. market. of course, the u.s. steel market has been extremely competitive and has put u.s. steel in a challenging position. u.s. steel is reporting earnings after the bell. we'll bring you those results as well as any further commentary on this note when we get them. back to you. >> thank you. you know, what donald trump is talking about. you know, the steel dumping is happening in this country. going to bring it back to pittsburgh. >> it's been happening for a long time. for sure. thank you, meantime shares of

nike higher today. we sat down with nike's ceo phil knight. they talked about his new memoir called shoe dog in which he shares the story of the early days at nike. we spoke about apple and the relationship between those two companies. i think it's more kind of a cultural sameness than there is anything else. yeah, obviously tim cook is a very valuable board member. thecultures of the two companies are similar. we respect apple more than any other company. for what they do in innovation and the great consumer products that they bring to market. they're really worthy of respect. >> as sarah pointed out. previously the company he respected the most was sony. apple has since replaced them. >> there's a definite mystique around phil knight that existed around steve jobs.

they're very different people, different personalities. but the mystique about their creative abilities to create what they did with -- and to build a brand in the way they did. >> i just love the early stories about nike. putting the rubber in the waffle makers. it is unbelievable. running in bathing suits and nursing shoes. we're way off the point now. these guys were true pioneers. it's amazing to see the industries they've left. >> never stopped us before, by the way. 12 minutes left, getting back on point the dow up three points. >> we're minutes away from big earnings announcements including apple. one of the big questions whether or not chipotle has recovered from the e. coli scares. we'll tell you what to expect next. i am benedict arnold, the infamous traitor.

and i know a thing or two about trading. so i trade with e*trade, where true traders trade on a trademarked trade platform that has all the... get off the computer traitor! i won't. (cannon sound) mobility is very important to me. that's why i use e*trade mobile. it's on all my mobile devices, so it suits my mobile lifestyle. and it keeps my investments fully mobile... even when i'm on the move... ahhh.

welcome back chipotle is looking to rebound. it should be an indication of where the brand stands. here's a preview of the earnings. >> it's going to be a tough

quarter for chipotle. hopefully it's not as bad as expected. you have a low bar for chipotle earnings we're looking for a loss of $0.96 a piece. they're expecting a crash to close to 28%. if any of the estimates come above estimates some say they could spark a relief rally in the shares that have been down 40% just in the last year or so. analysts are bearish to the stock. the bearish calls are at the highest since the global financial crisis back to you. >> susan, thank you very much. i should mention art cash told us a little while ago the market here at the new york stock exchange with the dow up three points, they've paired off s. joining sis david high tower.

clearly the market is waiting for something. >> i think the market knows what the fed is not going to do tomorrow. they want to know how they're going to guide. >> you have an interesting pick in blacktostone. >> we don't like the space. we're not fond of the managers, block stone you're getting paid to wait 8%, 9% yield. they be able to come put to work in energy and distressed debt. we like that name quite a bit. >> qualcomm? >> it's rallied quite a bit here recently. still way off its highs. similar story. you're getting paid to wait, 4.1 yield. 16 x valuation. reasonable and we think the market has misjudged the china royalty story.

>> a natural gas play, what do you make of the low prices whether for the lng out of asia, natural gas here? >> with epd you're not so much having to buy the price of natural gas, you're buying the volumes and the liquid story is already improving. we think they're the best balance sheet name in the space and distribution coverage is 130% of their dividends. so we really like enterprise to kind of come to the other side. we still think it's going to suffer volatility along the way. >> a couple of ways to maybe navigate as we get more earnings. thank you so much. >> thank you. all right. we'll come back with a closing count down in just a moment. after the bell, we mentioned those earnings, we've got a bunch of them coming your way. twitter, chipotle, at&t ebay panera and apple. we'll have them as part of our analysis. we're watching cnbc, first in business world wide.

or not in vests. this is my retirement. retiring retired tires. and i never get tired of it. are you entirely prepared to retire? plan your never tiring retiring retired tires retirement with e*trade.

let's see, a little less than three minutes left. the dow is flat lining right now. we're at the floor of the exchange for the closing count down today. sure looks like the market is waiting for something. >> that's about as flat as you get. >> it is. >> one story we haven't highlighted too much today, we mentioned exxon mobil with an s&p or moody --

>> s&p. >> down graded the debt rating to -- >> aa plus. >> from aaa. another aaa goes by the wayside. this due to the lower oil price. and they are. microsoft and proctor and gamble. >> very good. that's why he is where he is. >> we didn't even rehearse that. i've been doing this a long time. >> we have earnings coming out. i don't know if you heard that yet. here are some of the companies that are reporting. >> is apple reporting? >> yes, it is it will be interesting to see -- everybody believes that apple's revenue will fall for the first time in 13 years. >> so the stock is reflecting the iphone sales are falling, all this negativity around. i'm going to say the risk is on the upside. apple could surprise so much negative commentary has been occurring in the -- just a few weeks ago. i'm going to stick my neck out and say they could surprise.

>> chipotle has it recovered? is it too soon? >> we'll find out from that as well, right? >> tomorrow. i know everyone is obsess would the apple the company i want to hear from is baker hughes. here's the big giant in the oil business. they are the leading indicator for things like capital expenditures in the oil field services business for a recount. they're famous for their weekly count. and of course, we want to hear about whether we're a trough earnings. that's the whole game right now. even overall markets. baker hughes a loss of $0.34 that's probably going to be the bottom. maybe the second quarter, but everyone wants to hear are the earnings going to improve. if it's not top earnings we have a problem the stocks are starting to trade like there was the first or even part of the second quarter would be top earnings. they're going to be the leader and set the tone. chevron will be friday. >> lots to come. very busy.

the dow masking the importance of a lot of earnings coming out tonight. we'll get to that in a moment. ringing the closing bell of the new york stock exchange, virginia tech including one of our own brian sullivan back right there. the nasdaq it's church hill downs getting ready for the kentucky derby. showing that virginia tech pride up there. welcome to the closing bell. i'm kelly evans. here's how we're finishing up the session. the dow going out with a small gain of about 11 points on the bell. the s&p up three. 2091 is the closing level. it's p it did close negative. it gave up about 7.5 points today. and we've got some big names on

tap. another busy hour here for earnings. we'll get you results from apple, twitter, at&t twitter and chipotle. susan lee will cover chipotle for us. courtney reagan all over ebay. buffalo wild wings, u.s. steel. julia will be bringing us twitter. joining the panel today is dennis berman, our lone guy from the wall street journal. great to have you here. it's guy and the ladies. bring us up to speed here on what you think is working through market psychology? >> you had a segment just before the central bank earnings more or does earnings -- i got to put my money on central bank. obviously, the action coming up this week with the feds, not expecting a ton. but those are the things that are moving markets and why it makes them so hard. they come in high, low, beat

expectations or miss them, people are geared in. >> big cable deal, there are places to look, you know, if you want to at least point towards animal spirit -- we have ipo. it's not like they're going gang busters. >> i would say -- >> a handful. >> we've had three that really got the market's attention in recent weeks. so far as this week is concerned we get slow builds going into the fed decision days. the one and two days prior and usually we're flat on the day the decision comes in. i think the atlanta fed did a study on that. that's generally the trend we see. despite any other headlines coming into the market. volume is pretty low today and this week. because people are reticent to trade ahead of these big earnings. >> by the way, just to that point, let's bring you the headlines saying it's a reasonable strategy to start moving into treasuries.

even though he thinks somewhat hawkish language from the fed could be expected. he thinks about non-u.s. stocks, they have fallen more than the u.s. stocks. freddie mac, mortgage back securities. money from the government is going to happen. thoughts here on the latest? >> he's been a steadfast bond bull for a while. he's doubling down. i mean, i think even jeff wood would say the last couple of weeks has been interesting to test the mettlmettle. rates are moving high over the past few weeks or so. i'm not certain what's going on. i still think yields go down and we see 1.25%. we're in the deflationary environment. clearly the events of the last two weeks are testing that strategy and sentiment. >> we've got more earnings this afternoon. let's begin with at&t results.

mary thompson has that now. >> the company's adjusted earnings at $0.72 a share beating estimates by $0.03. revenue rose over 20% in the first quarter. the reason helped by that acquisition of direct tv last year. coming in line with expectations at $40.5 billion. net income of $3.8 billion. a little bit light. analysts were looking for $3.9 billion. in net income. it added 2.3 wireless net subscribers, the company saying it's church rate was 1.42%. analysts were looking for 1.46%. the company's ceo calling it a good start to the year. the company had followed financial results and executed well on the strategy to be the premier integrated communications provider for businesses and consumers. we'll take a look when we come back with anymore headlines.

back to you. >> mary thank you. the shares are up a little bit on the results. you know we heard from verizon, obviously, at&t, and i mentioned that we just had this cable deal there's a lot of upheaval across the content delivery -- >> i can't say this is great news for america. you talk about animal spirits, they're hibernating and in the cave. look at the return rate for at&t stocks. who at least cares what that difference is -- >> that's also down. people don't feel the need to upgrade their iphones they're not on the old contracts. >> there's so little competition. you go across whether it's airlines, health insurance or trying their darnedest with two or three carriers, they bought direct tv. >> in the deal with charter time warner, the requirements in order to get that done, you know, it's unbelievable. >> unbelievable. >> they're sort of mandating that cable kind of gets shunted

aside for the growth of broad band. >> it's gift wrapped package for netfl netflix. mandated by regulators. so netflix has some very nice friends in washington. they're trying their best. when you look at it, we talk about animal spirits, growth, investment it's all pretty static. stuck stuck stuck. >> those shares, up a little more than 1%. >> they are. i think people are probably surprised to see churn come in where it did. this morning we had john ledger saying verizon and at&t, as he likes to call them dumb and dumber are donating customers at record rates. the numbers for at&t seems pretty stable. >> guy, what do you think? >> the direct tv deal is interesting for them. you know, it puts them -- it separates them from their rivals. dividend yield 5%. for the last dozen years it's

been between $30 and $40 stock it's vacillated between that area a number of times. does it make sense that closing out of 13 times forward urnz on the name. i would say you take profits at the levels, the stock has not broken out for a decade. if i'm wrong, over $40 there's a whole new store to be written. i don't think we're getting there. >> fair enough. you know, there is -- we could look at a number of different lenses, it depends on the take away. back to your comments about animal spirits, we might have saudi arabia trying to list a multibillion dollar ipo. >> trillion depending on how they -- >> yeah. you have to wonder if those peer spirits are going to support that. >> that's not about investments and changing on a forward basis. that's protecting the saudi juggernaut. they need to raise money. when we took at innovation,

competition, capital raising, i think the over all thing is stuck in neutral. we're stuck. for those who remember how to drive a stick shift. >> they talk about stand alone and over the top products are the future of the companies we've seen at&t saying video subscribers declined. it's been a problem for comcast for a long time. i'm curious at what point you think these telecom service companies, disthey will have th product consumers want. >> it gets interesting with at&t and direct tv, bundle the packages, but you have to bet, right, if you were to say would you rather be in verizon or at&t's place. at&t has incredible execution rates of making direct tv work -- >> they've got nfl sunday ticket. >> i would say, though, if you had to bet, would you bet on internet delivery or satellite

delivery. i would say internet over satellite. >> we have a couple more earnings reports coming in for you. panera bed, which appear higher, but waiting for full results. the hot space to be, you were joking about autos, it's been the auto suppliers, not necessarily the car companies themselves as we know. but there are -- the arguments for hey i'll sell you the shovels for the gold rush appears to be holding up nicely. >> the oem go back and forth for the suppliers, it's interesting to see how much chinese money has come into the supplier's space. animal spirits, i hate to get back to it, but why not. so much more autoproduction is moving to mexico which has a lot of impact perhaps on the presidential election dare we mention that. they're doing well. in part, by cutting their costs by moving as much production to low labor markets as possible and that includes mexico. >> what about the helicopter

comments, money comments, guys from gun lock a couple minutes ago? this has been the story beneath the headlines percolating all year. is it too soon to really get to that point? >> it goes back to how -- dennis was talking about this i think. you want to bet on earnings or central banks. he correctly said he wants to bet on central banks. my push back would be this, yes, that's been right, but at this point in the cycle you're absolutely betting that they can collectively thread the needle. my suggestion, is there's no way they'll be able to do t. again, i think and i've said this a number of times they're painting themselves into a smaller and smaller corner to which they can't get out. can it lost for a period of time? absolutely. i think we're well into the eighth or ninth inning in terms of how many more levers they can pull. you can talk helicopter money, i'm sure they'll try to pull another rabbit out of their hat. >> what were you going to say? >> boj is a far more

important -- bank of japan, far more meeting this week. they are getting closer and closer to real helicopter money. here we are in 2016 and we're blithely discussing helicopter money is around the corner. hohum, hohum. if we saw ourselves ten years ago what would we think of the predicament? i happen to agree with guy. it can't last forever. we've been saying it for eight years. >> what do you think it's telling the boj that helicopter money would be effective right now? >> every other measure they've tried has not dislodged the yen. >> let me draw your attention to the screen. twitter shares just got down by 10%. the company's earnings are out. kelly, twitter reported user growth this quarter, the company has returned user growth and announcing it has 310 million monthly users. that's two million more than was

expected. kelly, the reason why the stock is trading lower seems to be because of revenue coming in lighter than expected. the company reporting $595 million in revenue compared to expectations of $608 million. and the fact that guidance is light for both the top and bottom line. twitter's guidance coming in both light for earnings. the earnings for q 1 were better than expected. that's also up from $0.07 in the year ago quarter. it's the guidance that seems to be weighing on the shares. i spoke with the ceo, jack dorsey. dorsey attribiates the better than expected user growth to the fact that the company has been making tweaks to things such as the time line and also been making a number of improvements to the service over the past quarter. he also sees -- says he sees further ability to strengthen that user base. now, i also talked to him and

adam bane about what's driving the better than expected earnings, they said better roi for video advertisers in particular. as for the short fall in revenue both in q one and two they say there are pieces in place to start revving up revenue in q 3 but they're not starting to see impact to that yet. some of those things are the nfl deal, which starts this fall, as well as more video advertising tools which will really kick in in q 3. they're projecting lower revenue growth than wall street expected $590 million, lower than the $678 million expects because a lot of those different levers twitter thhas yet to pull won't kick in until q three. one positive sign is their biggest ad deals with their biggest advertising are up 40%. that doesn't represent the

entirety of their ad business but it is certainly a positive sign. he said they're seeing their customers switch to video ads but they're not spending significantly more. now, kelly we'll be interviewing twitter ceo jack dorsey after the earnings call which is happening at 5:00 p.m. eastern. we'll be interviewing him later this evening and bringing that video to cnbc first thing tomorrow morning. back to you. great stuff. looking forward to t. guy, what do you think the shares are still down 10%? >> i think twitter is a unique property. it's a news delivery self-selecting service. you want to find out what jewul or kelly said a few minutes ago, go to twitter and you can get feeds from just about everybody on the planet. i don't think they realize what they have.

they need to stop with this monthly average users, i think that's relevant. google doesn't use it. get away from that and focus on what you have. the absolute unique property people would kill for. it's very hard to replicate. what do you do with the stock? you close your eyes and take a shot. i've said that since it was $22. maybe i'm the wrong person to listen to. >> you're great on twitter. it's understandable. plenty of people don't use the service, don't quite get it. i personally find it in valuable but we're in the news business. >> we're not real americans, kelly. i got to break it to you. it doesn't matter what we think. it's a critical collective math question. i say the play on twitter does it get bought in 2016. jack dorsey trying to turn it around, shaking up the board. this is chump change for google. chump change. >> they have made a lot of changes in the last few months,

but then again, jack dorsey has been ceo for three quarters when you look in hind sight at the incremental actions that the company has been taking. it's hard to see what would be a meaningful impact to the stock at this point. seven out of the last nine quarters the stock has tanked. options traders were expecting a move of 12%. perhaps a move of just about 9% is a moderate one. even so that revenue guidance take down is going to hurt. >> guys thanks for joining us. get ready for fast money. you can find him on twitter. coming up, find out what john scully thinks of the company's earning reports and what he thinks apple could learn from its own competition. we're going to sneak in a quick break before we continue the earnings parade. plus, we also get results from apple, chipotle, keep it going. that's in just about 15 minutes.

will apple deliver on expectations for iphone sales, that's the big question. you're watching cnbc, first in business world wide. i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade.

e.t. phone home. [ soft music ] when you find something you love, you can never get enough of it. change the way you experience tv with xfinity x1.

cnbc global headlines, take

a look at ebay earnings just crossing the wire. looks like a beef for earnings share of $0.47, two cents better than the analysts were expecting. revenue, $2.14 billion. bettering analysts' expectations there. for the second quarter, revenue actually is coming in above estimates for the company's outlook. however the company's earnings outlook for the second quarter is below estimates. you can see shares spiking right now after hours on those results. back to you. >> thank you. twitter also out with its earnings just a few minutes ago. stocks down about 9% on the numbers. joining us with their reaction are james, along with michael. you know, the guidance was light for the second quarter. the revenue was light for the first quarter. they didn't beat when it comes to users. what is most important for

investors when it comes to twitter? >> user count is the most important thing. if you can grow your users you have more eye balls to sell ads to. it was a modest beat to be sure. they would like to see users growing more than in q 1. i think the fact they were able to come in ahead is important. what they say on a conference call about how sustainable they is and what users have done thus far in q 2 will also be important. >> yeah, i agree. but at the same time, it's not just growing users but improving engagement. we know the dau base, daily active user are 45% of the base. we need to be able to grow that figure. that number has not been moving. it's about things like improving the algorithm, getting more video content and putting all that together while growing the advertiser's base. as you look at the current situation, obviously, there's a turn around in effect. when you look at the full year, you do have opportunities for

tail winds, the google deal will be taking place this quarter and could provide a tail wind for the second half. >> skeptical eye this afternoon. some opportunity there for twitter. thank you for joining us. those shares are still down after hours. apple's earnings are on deck. investors will be focused on the iphone numbers, the company may report a decline in sales for the first time ever. the impact of all that coming up. om capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet? when a moment turns romantic why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction

and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card. from icy ocean waters...to your wild-ckitchen counter. mon. when you cook with incredible ingredients...you make incredible meals.

get your first two meals free at blueapron.com/cook. (p...that, you haveit, wait! yoto rinse it first like... baked-on? it's never gonna work.alfredo. dish issues? cascade platinum... powers... through... your toughest stuck-on food. so let your dishwasher be the dishwasher. e? told you it would work. cascade.

welcome back. we're waiting for apple and chipotle's uppearnings. let's get an update. the voyage data recorder from the cargo ship ael faro ha been found 41 miles northeast of the bahamas. it was found by using remotely underwater search equipment. the ship sank last october during hurricane joaquin. half the trains on france's regards has unions walked out. there is negotiations underway for a new national contract for rail workers. five northeast states holding primaries today. in harrisburg, pennsylvania, tom wolfe cast his ballot. there are 71 ballots up for grabs on the republican side and 210 for the democrats. maryland governor was pretty much seated at a legislative

assembly line today. he signed nearly 200 bills during a ceremony this morning. one of those bills could come and he'd sign it,ing slide it out of the way so the next one. the bills covered a wide range of topics including one to reduce over prescription of p n painicpain killers. >> surprisingly thin sheets of paper. >> it took him a couple of hours, too. china and iphone sales are in focus, those results when we come right back. [bassist] two late nights in tucson.

blew an amp.but good nights. sure,music's why we do this,but it's still our business. we spend days booking gigs, then we've gotta put in the miles to get there. but it's not without its perks. like seeing our album sales go through the roof enough to finally start paying meg's little brother- i mean,our new tour manager-with real,actual money. we run on quickbooks.that's how we own it.

shoah, ha ha.ew artist. show me top male artist. my whole belieber fan group. it's not a competition, but if it was i won. xfinity x1 lets you access the greatest library of

billboard music awards moments, simply by using your voice. the billboard music awards, live sunday may 22nd, 8/7 central, only on abc. welcome back. here's a look at some of the names making big moves after reporting earnings. twitter probably the biggest move move. it was anticipated and not uncommon for this company down 10%. a little bit less than that. trading below $16 there. it did have an earnings beat but the revenue figure for the next quarter looking light. at&t is down about 1.5%. it was initially higher on its results. ebay is still positive, up 2.5%. we're waiting on results from p apple and chipotle. here's a look at how those

shares were positioned today i believe this was -- this is the extended hours quote. in any case let's have a brief reflection on twitter, which is under more pressure. >> we were going through the numbers. kayla calculated -- >> cash equivalents at the end ofhe quarter. >> again, my theory that google should just buy the company. it gets even cheaper when you include the cash that's included in the purchase. that would be my best -- >> twitter's market, that's a hefty amount. that's what makes it so interesting. they do have a pretty good piggy bank as you put it there. apple's results are crossing the wires. josh has the numbers. >> kelly apple just reporting numbers, let's get those to you. apple reporting earnings per share of a $1.90. revenue clocking in at $50. $50.6 billion. iphones, $51.2 million.

that does edge out estimates of $50.3 million. ipads better than expected. services revenue, that's everything from apple pay to apple music, that jumps 20% to $6 billion. the second largest revenue driver for the company. the other revenue, that includes the apple watch, $2.2 billion. gross margins at 39.4%. q 3 revenue guide of $41 billion to $43 billion. also, we did get that update to its capital return program, the board authorizing an increase of $50 billion to its capital return program and boosting dividends by 10%. just had the opportunity to talk to ceo tim cook. we talked about that iphone franchise, you saw in q 2 units down 16% year over year. cook pinning that pressure on a few different places. one toff cough comps, last years

were up to -- they shipped 61 million. revenue was up 55%. the question becomes where is the iphone franchise go from here. he remains bullish on that franchise, he talked about new markets. he talked about latest iphone, se, their supply is constrained and talked about taking share from rivals. they continue to see the record number of android switchers. turning to the regions, you'll notice greater china revenue was down and year over year, cook telling me a lot of the pressure was in hong kong due to stronger dollar to tourism being down. he said mainland china was in his words stable. not as strong as a year ago, but he said they're confident about mainland china. all in all when it came to the iphone franchise we're still in the early innings of the iphone, back to you. >> all right. josh, thank you. looking through some of the

revenue figures year on year, the china figure, does look down substantially, about 26%. if i'm reading this correctly. for more on apple, here to just bat around these results. ross, i'll begin with you. this seems to be a pretty strong emphasize on capital return in the absence of growth? >> that's all he's got. tim cook has got to do something to grow the company. it's really embarrassing that they have over $200 billion growth is clearly decelerated. and he has yet to buy anybody to grow the business. he could buy pandora, tesla, netflix, and he's done nothing. and they've got to do something. so it's a value stock now. it's going to get more value until tim actually does something. >> todd? >> i agree with some of the sentiment. look, iphone is starting to feel

boring. i don't want it to see it go the way of the ipad. i think also, we have to remember this is the same company that introduced the ipod, made the ipad popular. tablets in general popular. you look at iphone, smartphones were nothing until apple came on the scene. what's their next big thing? is it a echo type device, they're sitting out all these areas they could make a huge splash if they do it right. >> shares were down nearly 5% after hours. we're looking at the ipad shipment number. a little bit better than estimated. what would you say here? >> well, it's certainly underscores apple's dependence on the iphone as the principle driver of revenue. when sales aren't as strong as the last year's sales with that big new iphone 6, it puts -- we all are questioning sort of what's apple's next hit going to be? it really underscores the point that -- the need to diversifdiv

>> what's wrong with being a value stock? it makes a tremendous amount of money. the dividend yield is 2%. it will go up with the current dividend rate. they're going to be under increasing pressure to return more capital to shareholders. sometimes there's a natural life cycle for all things, for all of us, for all companies, to demand growth from a company of this size seems unrealistic. demands efficiency. there is nothing wrong with being a buick. >> there absolutely is something wrong with being a buick. do you drive a buick? you don't want apple to be a buick. apple is the tesla of cars. and why they're not in tesla, i don't get. when you make money as a ceo, it's your job to use that capital efficiency. we have had this conversation for years.

okay. he's got to do something other than steve jobs' legacy. he's played it out to the end and i'm tired of it. >> i was going to ask ross i never heard you say a bad word about apple. you were the bull to end all bulls. you own the stock, but you were saying we can find the tape you've been saying for years this sh going to be a trillion dollars company, why are you being so critical of a company that you are -- were saying was hanging the moon a quarter ago? >> i'll tell you why, because first of all, we have given him the runway and he's had this opportunity. and he hasn't taken it. okay. and i invest money for people that's my job. if he's underperforming the market i'm not doing as well as i should be for my clients. that's the business i'm in. i'm in the business of making money. he's not making my clients money. i'm not happy about it. he's got to give me my $200 billion back or do something with it. >> all right.

amid the hokey chant here. what do you say is the one single thing that can grow a company of this scale in a significant way? >> buying tesla. if they're going to do a car, they're not going to do a better car than tesla. yes, i do i'm a tesla shareholder. >> what's the one thing this company needs to do or one of many? >> i'm in agreement. i don't think it's wrong for apple to play it safe like it has with the iphone se. if you think about it it's an aggressive move into china. otherwise sales are kind of slumping because the phones are too expensive. why not say applaud tim cook for doing something like that as opposed to saying they need to go into other markets with new products. while i agree they should do something with all that money i don't think they should buy tesla. i think they should do something on their own. >> hang on a second. let's stick with this china point for just a moment. it's an important one, it looks like the revenue number was down

considerably. were you looking for improvement already from the new phone launch? >> i don't think so. that needs time and that goes to my point that iphone sales have slumped but we're taking into consideration the se sales yet. it's an s years. let's see what happens with the iphone 7. if sales start to slump then there's a problem. >> hang on. we have also a big launch potentially later in the year, right? i mean, is this still going to be all about the hardware and making sure the cycle happens or to the point ross is about to make can the software do well independently of that? >> i think, you know, the two right now are completely interdependent. apple is growing its services business on the strength of its hardware base. it needs both sales to be healthy as a company. i think that what i'll be looking for going forward, i think perhaps others will be is how will apple sort of update its newer products, wearables

which seems to be showing momentum. apple isn't saying a lot about how many watches it sold. will it be doing something interesting there to grow the category. that might spark some growth for the company overall. and will its new iphone, the 7 that comes out in september, will that be something substantially different to excite consumers again? those are tough challenges. >> what about the watch? you said it was about twice as many watches sold in year one as iphones. but is that an apt comparison? >> no, think about how much smaller the market for iphones was in that first year than where we are today. hundreds of millions of units sold around the world. to me the question becomes buying tesla, are they going -- they're not going to buy tesla. let's be real. despite the ideas otherwise. >> the grave yard for tesla -- >> the vanguard of computing has

shift today google and facebook. they're witti-- apple is cautio. it has the mentality about finished perfect product and that -- hard to say what that means for virtual reality. facebook and google are so much more competitive with where consumer computing is going. >> so far as the finished shiny products go the company is being conservative about how many they'll sell in the next quarter. if you think this is quarter is guidance for q 3, 41 to $43 billion. the estimates had been $47 billion. another company saying next quarter is going to be worse than this. >> i remember when carl icon was in and he said it was going to be $200 and they did a capital return. they are moving in that direction. we see the shares trading under 100. quick last word, ross. >> well, i think tim has got to use the money, give it back to

us. they need to be better marketing. they have nothing at the music festivals, not one ad at coachella. nothing to attract the younger audience, they need to get on the ball. >> thank yous everybody. >> they should be. >> thank you so much for joining us. we'll comb through the results. those shares down after hours. chipotle's earnings are also out. let's get to susan lee. they are moving lower in after hours. this is after a beat when it comes to earnings per share. they reported a loss which was narrower than expected of $0.88. they were looking for $0.95. revenues missed estimates. $830 million. this is going to be a tough quarter because of the e. coli out break. but that is not stopping their expansion plans. they are going to open 235 restaurants in 2016.

another important metric here, hurting the stock right now is the comp sales in the first quarter worse than expected back to you, kelly. >> susan, thank you. chipotle shares down 3% at the moment. the ceo will join jim cramer on "mad money" tomorrow to discuss the results. you don't want to miss it. chipotle trying to regain footing. >> i can't say i've seen decline for a business like that. it's rather stunning. you have to think, if you're betting long term, it's literally on every corner. are people going to disappear for an extended period of time. i say probably not. >> investors want to see growth but same store sales growth. for a company to keep plans on the table to open 220 stores at the time when they are having trouble keeping some of them open, you wonder if the expectasexpec

expectations should be managed better. >> let's continue the discussion around food. panera roreportings of $1.56 comparable sales increase of 6.2% in the first quarter. panera raising its full year 2016 targets for same store sales and earnings. wall street has become increasingly bullish on this name. it's up 12% year to date due in part to its use of digital ordering. you can see the stock up after hours around 1.5%. a very different story for buffalo wild wings. check out that price action after hours. they missed expectations, earnings of 1$1.73. same store sales decreasing 1.7% at company owned restaurants and declining 2.4% at franchise restaurants. in the press release, says we

are dissatisfied to report a same sales store decline and we're undertaking initiatives to regain momentum. that stock is a mover, down 12.5% after hours. >> too soon to say that's a steph curry effect. thank you. you're pointing out when it comes to panera that's a name that was going to benefit from chipotle's weakness. >> that and mcdonald's. both of those companies were expected to get the off shoots of people who want to go to chipotle but were scared off. >> so, you could say it's a little better than perhaps -- >> we're hanging in there and given the earning season we'll take it. we'll watch the nasdaq which could be under pressure given the miss from apand other factors. we'll have more on the company's results next. apple has lost $30 billion in market cap after hours.

it reminds us with what happened with other big tech names last week. twitter's conference call is about to begin. a lot of after hours action. keep it right here. you're watching cnbc, first in business, world wide. there really is no small stuff. every decision... every component... is an integral part of what makes the 2016 c-class one of our most sophisticated cars ever. because when you're setting a new benchmark for refinement, it is the small stuff... that makes the biggest impression. the 2016 c-class. see your authorized dealer for exceptional offers through mercedes-benz financial services. perfect driving record. >>perfect. no tickets. no accidents... >>that is until one of you clips a food truck, ruining your perfect record. >>yup... now, you would think your insurance company would cut you some slack, right? >>no. your insurance rates go through the roof. your perfect record doesn't get you anything. >>anything. perfect!

for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. and if you do have an accident, our claim centers are available to assist you 24/7. for a free quote, call liberty mutual at switch to liberty mutual and you could save up to $509 call today at see car insurance in a whole new light. liberty mutual insurance. okay, so you launched your bank's app. now what? how will you keep up with the new demands of today's digital economy? the fact is: some believe they won't need a traditional bank down the road, so at cognizant, we're helping banking and financial services companies think digital, be untraditional, and reimagine what the bank of the future can be.

our clients can now leverage customer intelligence to predict their financial needs and provide more contextualized products and services. we're creating new platforms across channels so customers can effortlessly invest, borrow, lend, transact-wherever-whenever they choose. and we're digitizing the way banks run, driving efficiencies and delivering new value for their customers in return. digital works for banking and financial services. lets talk about how digital works for your business. ♪ welcome back. apple's shares are down more than 6% on the back of its latest quarterly results. let's bring in a principle of investment advisors along with chris johnson, for some more thoughts here.

tim, you are -- you don't -- what's your stake here. >> well, certainly it's an earnings disappointment. iphone sales were in line. revenue was a slight miss. it will take time to dig through the numbers figure out where the compression is happening. we're a long term investor we don't react to these quarter by quarter announcement. it was a disappointment. >> the earnings have the information. you have to look to them to figure out what the case is going to be for this company. do you think that apple is fundamentally changing before our eyes, tim? >> i wouldn't say fundamentally changing. it would be fundamentally changing if suddenly people were using a different device by which they communicate or compute. they are still at the forefront of what people are using. i don't think this is a harb rnger of future decline in ipho iphone. this is a weak quarter in a week economic environment apple is slogging through.

this is a cyclical weakness. we'll maintain our position for the long run. it's been priced at 11 times earnings, it hasn't been priced for perfection. >> it's always been cheap, chris. what about you guys? >> we've got an unfavorable view of apple and we have for a while. obviously, in the revenue numbers and the earnings numbers there are some problems. this is a bit more of a trend than an instance. bigger picture our problem has been with the sentiment towards apple. this has been the stock that can never do anything wrong. they're in the top 10% in terms of analyst recommendations on the buy category. over the last year they're in the bottom 20% of performance in the s&p 500. there's a big of a disconnect. whenever we find crowded trade situations like that, typically in turnings period like this, or earnings call like this will send a lot of the bulls down into the hold kacategory.

this stock has the changes to go through. >> got to leave it there. thank you so much. we've got more on these results coming up. we're also going to get to chipotle criminal investigation into its food safety standards has impacted chipotle. "closing bell" will be right back.

welcome back. apple shares continue to move lower, down almost 7%. the guidance on its profitability, gross ma jins, may be part of why the company is saying its gross margins for next quarter could be below 38%.

big sea change in terms of how profitable this company is. the shares, as mentioned, are also weighing on the qqq, the power shares there. your nasdaq proxy is down half a percent. that could have an impact on the open tomorrow. shares of chipotle are down after hours, releasing its quarterly results, beating on earnings but missing on revenues. what are your thoughts here, r.j., on these numbers? >> i think everyone's looking to the same-store sales numbers. the number itself suggests that the last two weeks of march was probably not as great as what the market was looking for. i think the eyes are on what april's trends are. which they'll discuss on the call. whether or not we see improvement there. we're seeing things in the mid-teen range. i think people would be satisfied with the recovery. people get spooked and potentially question the recovery. and second-quarter, what the etf

might look like. >> people will forgive a bad quarter, as long as that rebound is in sight. any early reads on whether chipotle has had success? especially the loyal followers? >> i think the loyal followers, the traditional 18 to 25 male g demographic is coming back. i think it's a group they'll have to win back. that's certainly going to take time. i think the old adage, when you have a food scare, the algorithm might be broken here. might be prolonged recovery period for this company. >> i know you'll be looking forward to the call. thank you for joining us. >> thank you. >> we're just minutes away from the apple, twitter, ebay and chipotle call.

(singing alougetting to know you. getting to know all about you... getting to like you. getting to hope you like me... is someone getting to know your credit? not without your say so. credit lock lets you lock and unlock your transunion credit report with the swipe of a finger. getting to know you. getting to know all about you... get one-touch credit lock, plus your score and report at transunion.com get in the know.

welcome back. the two stocks everybody will be talking about tomorrow, apple and twitter. apple down 7% after hours. twitter down 12% now, giving it

more than two bucks, trading below $16. now, apple wiped $30 billion in market cap off the valuation this afternoon. same thing happened with microsoft and alphabet last week. tough hits for investors and the larger tech space in nasdaq. >> the nasdaq has been called an island reversal, after the tech earnings last week. the rest of the market remains stable. but apple -- or rather, microsoft and the other earnings that reported dragged the nasdaq down. the hope was on apple to be able to bring it back. that's obviously ghg to be very far from the case. >> it's interesting, because when you have national press stories about, you know, worries about its earnings, you think everything would have been priced in. shares down substantially after hours. >> i think it's time to think of apple as just a different company. something of that size, with that sort of velocity of growth cannot happen forever. despite the protests of people who go on cnbc and complain about it. it's just not the way things work. nor have they ever sustained

themselves that way. >> if there is a way this could be taken in a positive vein, if we look at the market last year, largely those four names, and the rest of the market wasn't doing that well. if we can switch that today and maybe, hey, you're getting ejected from some of these companies, but more broadly things are hanging in there, that's a possibility. >> real true earnings growth and positive news out of so many companies, you have to bring in the earnings, but as we know they're manufacturing with the adjusted earnings. >> amazon, second "a"? >> the companies taking their guidance down for next quarter leads you to believe this is not going to be over anytime soon. >> that's the issue as well. watch the impact on the nasdaq come tomorrow. we're moving through the bulk of the earnings season here. we'll see if -- we're looking to the retail. >> helicopter money is coming. maybe they'll tell us br it. >> paypal maybe will give us

some growth. >> there you go. guys, thank you so much for joining me. a lot of conference calls about to begin. that does it for us on "closing bell" today. "fast money" begins right now. "fast money" does start right now. i'm melissa lee. we're bringing you full team coverage in all the big after-hours earnings throughout the hour. it is our ultimate earnings lineup. all the headlines and everything from apple, twitter, at&t, and ebay. and the one man who thinks outside the box, always, bob peck, he's with us for the whole hour with analysis on things twitter. if you missed the rally, credit suisse said there is a stock you have to buy right now. later, there are biotech stocks that traders are betting will have massive moves this week, could total more than $12 billion in market cap. but first, we've got to start off with the biggest story in corporate america right now and that is apple,