don't let your babies grow up to be cowboys but do let them grow up to be investment brokers. >> thanks for watching power lunch. "closing bell" starts right now. welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> and i'll wilfred frost. it was a busy morning for earnings with numbers from practical to proctor and gamble and united technology. we'll get numbers from apple. we'll tell you what to expect from their earnings. >> and speaking of earnings, an ugly day for under armour. we'll tell you why the stock is sinking, down 13% and putting pressure on the likes of nike and lieuululululemon.

>> and target will discuss their thanksgiving. >> and new wikileaks e-mails give insight into the clinton's campaign relationship with still loi c silicon valley. we'll show to you coming up. but we begin with the earnings reports. bob pa welcome, everybody. bob, we'll start with you. >> a lot of things going on, about 30% of the s&p reporting. tales of the tape, let's go through a couple companies. oil and gas, baker hughes big sur rice. narrower loss than expected. they see an uptick in drilling activity in the united states. that is a big story. north america activity will modestly increase. wow, this quur similar are to what halliburton said. baker hughes up 4%.

how about procter & gamble? 3% organic sales growth, an amazing number. they reaffirmed full year guidance. they have fewer brands but massive scale and reach. take a look, that is a nice move up 4% their earnings report. and how about united technologies? they raised the low end of their full year guidance that was a bit of a surprise. aerospace is strong. organ beiic sales growth 2% to . and that is helping united technologies. come eefr her come over here, you see up 2.3%. whirlpool, down 11% right now. disappointing guidance. they had problems in the uk. but also soft sales in the u.s. back to you. >> and we'll go from whirlpool to under armour.

shares tumbling on dekiclining gross margins. >> an ugly day thanks to what was ultimately a disappointing growth outlook from the company. at first you might see the numbers this morning and scratch your head, 22% sales growth this quarter. 18% growth in apparel, 42% growth in footwear. so why is the stock tanking? here was the money line. while we expect to continue to significantly outpace the apparel industry, the growth rate going forward will be less than expected from our investor day that we set in 2015. those came from prepared remarks that hit just as the earnings call started and that was when the stock started plummeting. now look, under armour saying expect growth to be in the low 20% range, less than hoped for for a company that has been growing closer to 30% in the last few years.

under armour is also spending more for that growth. you saw that in the margin decline during the past quarter. that gave fuel to the bears and it will also cut into its operating profits other than the next few years. so the bottom line, the stock has lost 30% about of its value in the last 12 years on these moderated forecasts higher spending. it is still trading 47 times earnings.forecasts higher spend. it is still trading 47 times earnings. but the question now, can we still expect the 20% plus growth and is it susceptible to any stumbles going forward. >> and what is this down to? we have higher investment, lower growth. is it just fierce competition? >> and also the overarching trend before ceo said forget athlete sure, these people are here to stay, but there are questions and that's why you sea

the weakness in thnike and lululemon stock, as well. understa under armour is focusing more on international and footwear and that takes spending in those businesses. for instance the stefan curry 3 shoes hit the market today. big advertisement tonight in the nba season opener. so they're spending more to get that double digit growth. and investors will have to accustomed to that and figure out where the valuation settles with that repriced forecast. >> thanks very much for that. and be sure to tune in tomorrow for an interview with kevin plank. >> many investors will be watching apple's results after the bell. they spoke earlier on the halftime report. >> apple is the ultimate value stock. we don't own it as a growth vehicle, we own it as a counter

weight to a lot of the crumbier pc companies and pc related companies we're short. >> let's get to josh lipton where more on what to expect from this quarter. >> well, what apple reports today and the streete thinks th company will say, it shipped around 45 million iphones. if true, that would be the third straight quarter declines for the tech goiant, but bulls say rebound is on the way. >> we believe there is a large base of 275 million iphone owners that are coming up on three years old or older. and we believe that that will propel the iphone 7 to slight growth and even greater growth for the iphone what we're calling 10 cwhich will be available next fall. >> now, munster is not alone. investors have bid up apple with that stock now surging nearly 20% in just the past three months. another big question for this quarter, the competition. is tim cook still seeing a record number of android

switchers. and what kind of opportunity does he see in samsung's big blunder with that note 7. finally, all eyes on greater china where revenue last quarter did slip more than 30%. investors want to know was that just because of slowing economic growth and currency headwinds or because something more structural has changed like local chinese brands new catching up with cook's company. we could soon have a better idea. back to you. >> thanks very much. i'm sure it will come up in discussion points with the closing bell exchange which is now. we have ron wiener, steve gresso and john brady joining us. let's start but, johwith you, j the cme. interesting intra day changes. a lot of strength earlier in

trade and what do you think is driving that and does it suggest that the recent strength we've seen this the dollar might be thousand about to abate? >> well, it may be. i think you're right. ap-i think what is sort of driving the dollar are shifting interest rate expectations 37 it will look like we'll get a hike in middle of december. the fed has pretty much achieved its employment mandate and the inflation mandate they are quickly circling in on and approaching. and i think what the market is a little concerned about is the fact that crude oil prices on a yearoff year basis, late 2016 and early 2017, may actually bump cp about i ba pchltcpi bac expected. so if the market needs to shift with a two year note let's say the 85 basis points, then the

dollar will see an uptick in volatility. >> steve, about what the consumer confidence number this morning? is that a big deal for the market? sglipg a sgli >> i think all of these newspapers will take a back seat. you and i have discussed at length opec. i think that keeps the crude market at bay until november 30th. fmoc keeps the equity market right away here. 2134, 35 is basically the old highs. i don't think people will sell it through that level without giving it some real thought. m apnd a has kept the market buoyed, but i think on a xwr granular basis, apple will lead the next week or so. samsung's headwind has been apple's tail wind and i don't think that can be in the numbers in the iphone 7 just yet. >> and of course we have a bit of softness out there in the

share price indices, and also earnings. will those be weighed. >> apple is our biggest holding, so we're concerned, but we've hold them, it's a cheap good stock. i remember when the lady sitting next to you was reporting from the crack of down in london and she showed up more in new york and all of a sudden she's the toast of the big apple and so i'm smelling some kind of similar m.o. for you. so i hope to see you more in new york. >> exactly right.

>> we're financial advisers. we're where the ribhe rubber mee road. and i was one of the four named top 100 adviser by forbes and none of us have beating the s&p as our primary goal. it's clients goals that matter. and with that, we're seeing an s&p at 18, 19 times. corporate earnings thought great but not bad. but the market has gotten ahead of itself.great but not bad. but the market has gotten ahead of itself. so i'm saying to our clients patience. don't expect the world. going higher but saw tooth, so stay in quality, but i ddiversi. >> john, i want to see a big grin for chicago. you have the cubs, calf, all coming up rose. >> certainly the cubs. and so for chicago if you're rooting for a couple thing, you

will certainly root for higher yields, more volatility. and you'll root for a cubs win and i think you'll see all three rather shortly. >> it's all the mideawest, righ? >> steve, what are you looking for the rest of the month some we know you're focused on apple. sdw it all come down to getting throughout election and getting throughout med fefed meeting? >> the opec meeting, fed meeting and then the market sets up to prove itself in december. and i think where normally you see that run up, into the year end, i think this year could be different. always sets up to hurt the most amount of people at any given time and i think that's where you'll see the soft patch in the marketplace come year end. >> thanks, everybody. good to see you. 48 minutes to go in this market. dow down 55 points today, s&p dropping about 8 and we'll keep an eye across the rest of the markets for you. up next, target ceo speaks to us about getting shoppers

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we can't go back to the years of devastating cuts to public education. so vote yes on prop 55. prop 55 prevents $4 billion in new education cuts, without raising taxes on anyone, and with strict accountability. budget forecasts show if we don't pass prop 55 big cuts that hurt our kids

are coming, and california will suffer budget deficits all over again. so vote yes on 55. because it helps our children thrive. median marketing data company citing challenging growth environments of nielsen. the holiday shopping season is approaching quickly as many retailers are already starting to hire seasonal workers. today target unveiled its holiday strategy and highlighting its holiday product

assortment as well as its marketing campaign. >> and courtney reagan is at target's this morning city offices and joins us along with their ceo. courtney, take it away. >> thank you very much. i'm here with brian cornell, target ceo. so the first question is about the holiday strategy. you're unveiling many parts of it, but holding off on a lot of the widespread marketing messages until after the election. is the election going to hurt target sales? consumers are cautious right now. >> first of all, welcome to our new tribeca location. and we did talk about our holiday plans and we feel really good about our approach to the holidays. we've got some exciting new merchandise, but we will be thoughtful about how we bring that to life. and we want to make sure that we have the right approach during this election season, but we have a great message to deliver. we're very excited about our

plans. and we're really confident about our plans for the fourth quarter. >> so your advertising where ahead of the election? >> well, we'll have a com b combination of a great tv campaign. we're learning digital and wifing in hispanic marketing. so we feel great about the c combination. i think our approach will break through during a cluttered season. so i'm really confident with the plans our team has put in place. >> and last year holiday 2015 very strong, but last quarter was a bumpy one. are you very cautious still going this to the holiday season? >> sitting here today, you think about the first half of the year, our comps are flat, profits, eps up 8.2%. and within that, there is a lot of positive things happening. i feel really good about the performance in apparel. we've had seven straight quarters where we've grown market share. our home category which is

really important during the holiday, last year was our best year in a decade. we're up 4%. we've send that strength continue into 2016. and i think we've got great plans for home during the holidays. so there is a lot of things that have been working really well. one of them is our digital performance. we continue to see strong gains in digital. year to date, we're up almost 20% and we have a very strong campaign for the holiday. we've had a kucouple bumps alon the way, but we've launched two great new brands, our apparel line for kids and pillow fort. so a lot of things working and i think it sets us up for a very exciting holiday season. >> so electronics isn't one of your significant categories, but it does overindex during the holiday season, becomes very important. and the last quarter, it was a trouble spot. you called out apple product

specifically saying they were down 20%, sales in those products. is that still a problem and will you scale back your apple product presence during the holidays? >> we've worked across our entire vendor community to bring newness to that category, so we deal good about the partnership with apple. they're bringing great innovation for the holidays. we're working closely with sony, we have great plans for playstation. and we're partners with google to bring new items to our story. so electronics are important during the holidays and we're ready to step up and play. >> i think kelly has a question. >> i wanted to ask about your groceries. my mom is one of the people who loves to pop into your store, pick up some items for the kitchen. but there is an issue with the availability of some fresh items and a sense that you're still more expensive relative to walmart. how much are you prepared to invest in grocery especially as more and more of your competitors are chasing this

space? >> if you think about what we've done here, this is a great example of what we want to make sure we create when we think about our food strategy. if you were to walk town stairs in this great new location, we have hundreds and hundreds of guests shopping every day. and as they look at apparel and home, they're also finding those food items that they're expecting to find at target. so it's a great assortment of convenient grab and grow items. we operate a self-service grocery environment, but we try to make sure we step up the quality of items we're offering in produce. we want to make sure that we have grab and go meal items. we're not a traditional full service grocer. that is not part of our strategy. but while you're at target, while krur mom your mom is in o, we want her to find the quality that she expects. >> i think wilfred has a question. >> i do indeed.

brian, want to ask about you're fearful of across the pond pushing into the u.s. market. >> we looked at them very carefully. i was in london to walk some of their are new lotions. and they're a terrific competitor, but we rate in a very different space. we have a unique multicategory approach.rate in a very different space. we have a unique multicategory approach. so we have been and kids, we have a great selection of toys as we think about the holiday as. while you're there, you can pick up household essentials and convenient food items. so we think that the combination of our assortment, our multicategory approach, the ability to shop in our stores, order on did tt democraticline,t up or have it delivered puts up in a unique positioning. >> and looking ahead, last year on cyber monday, it was one of your best days of online.

>> it was our biggest day ever. >> and your website crashed. and it wasn't the first time. so what can do you to ensure consumers that won't happen again? >> we've been doing a lot of work over the last year. and last year cyber monday, it was our biggest day ever. and it led to a quarter where we delivered over 30% growth online. so we stepped back, we've developed an entirely new platform for our website. we call it an adaptive website platform. and we're now, whether you're looking at target.com on your laptop you a laptop, ipad or smartphone, you have the same experience. so it gives us more capacity and much more reliability. so we made big investments and we're forward a big cyber monday. >> bring it on. >> we're excited. >> thank you for joining us here. back over to you. thank you very much for

that. with about 35 minutes left before the close, we're down about a third of 1%, the dow down 53 points as you can see. best performer the nasdaq down about 0.5%. and we have consumer staples and utilities best performers consumers c s cadiscretionary. and silicon valley could have a big influence on washington if hillary clinton is elected president. more on that next. and apple earnings due out after the bell. i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses,

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welcome back. with just two weeks to election day, wikileaks tips to release clinton camp e-mails. the latest would seem to suggest silicon valley would have the influence. >> and these new illegally be obtained e-mails show that mark zuckerberg reached out to john podesta that google's eric schmidt set up a session with top clinton aid and tim cook

sought on one-on-one meeting with john podesta. the e-mails give voter as rare behind the scenes glimpse at the relationship between silicon valley and the clinton campaign. mark zuckerberg wrote i enjoyed spending time but yesterday and our conversation gave me a lot to think about. and while mourning death of her husband, sheryl sandberg wrote i like that you are praying for dave. i still want hrc to win badly. i'm still here to help as i can. in other e-mails that seem to indicate the clinton camp's close alliance with still lilic vall valley, john wrote cheryl would be great to see i'm free all afternoon. and tim cook had the inside track. a staff e-mail reads tim's office requested a one-on-one meeting today which was a nice way of saying no staff. i think this is one we should proceed cautiously.

he's supportive but new to this so i think we shouldn't come on too strong. a couple things to bear in mind here. the clinton campaign still has not confirmed the authenticity of all of these different e-mails that have tcontinued to be leaked. facebook is under fire for allegedly leaning left in terms of their news feed product. and the close nest with the clinton team could make conservatives worry that the most powerful brand in media has its thumb on the scale for democrats. a source familiar with the zuckerberg charity initiative told me this reach out was just p one of a large number of conversations that he's had so he talked to a lot of folks, but it does show you the back and forth between democrats and the clinton campaign and folks in silicon valley. >> and i wonder if peter teal gives him them some cover

because he's a supporter of donald trump. >> and mark zuckerberg has had to push back to employees in his own company saying we're not going to sensor donald trump's comments as somehow hate speech as some of the employees allegedly wanted to do. so he's trying to balance facebook's position in american society as a platform for all speech even as in his own personal life highwae has close connections and cheryl sandburg to the clinton campaign. >> if this is taken by voters as proof that secretary clinton is close to silicon valley, is that as damaging as the clee neose no wall street or less so? >> silicon valley is still held in high regard by voters.nest t wall street or less so? >> silicon valley is still held in high regard by voters. wall street is particularly hated in the wake of the 2008

crash. but you have this weird confluence of events here in terms of the snowden disclosures. you sigh see more septembkeptic people on the left so something they have to manage moving forward. >> time now for a cnbc news update. >> in paris, ash carter addressing a controversial move by the pentagon to try to claw back reenlist the bonuses paid to cal difornia national guardsmen. >> i'm aware of the specific issue that you're speaking of, it has its complexities to it. and we are going to look into it and resolve it. >> the d.o. did reportedly calculated the bonuses incorrectly an overpaid the soldiers.did reportedly calculated the bonuses incorrectly an overpaid the soldiers.id reportedly

calculated the bonuses incorrectly an overpaid the soldiers. reportedly calculated the bonuses incorrectly an overpaid the soldiers.reportedly calculated the bonuses incorrectly an overpaid the soldiers.reportedly calculated the bonuses incorrectly an overpaid the soldiers.dreported calculated the bonuses incorrectly an overpaid the soldiers. reportedly calculated the bonuses incorrectly an overpaid the soldiers. a muchanhunt under way in oklahoma. michael advanvance was last see early yesterday. and cleveland ready to play ball. fans are already lining up outside progressive field. tonight is the first game. and justin timberlake may be in trouble because he snapped this selfie while voting yesterday. tennessee law prohibits photos in election booths. the local d.a. says the matter is under review. that is the news update. i'll send it back to you. a for all of those out there, it's illegal in a lot of states, so no selfies. >> too many sell if is. for all it's illegal in a lot of states, so no selfies. >> too many sell if is.for all s illegal in a lot of states, so no selfies. >> too many sell if is. >> i'll wage my war against the selfies. a selfie stick almost hit me in the head the other day.

>> it can be really dangerous. about 28 minutes left to go. down between a quarter and a third of 1% at the moment. dow down 45 points. cnbc i q100 index is launching today and we'll show you the notable stocks and you may be surprised by some that are not part of it. >> and also ahead, the government says obamacare premiums will rise an average 25% next year. a top health care analyst discuss what is is driving up costs and what would make insurers want to return to the exchanges.

less than half an hour to go here. for the last many days now, we've been seeing the selloffs into the bell. what do you make of that? >> it will probably continue today. i think traders now are just more worried about the down side. we haven't had the massive pull back that we've expected. we're trading near all time highs despite of bad news. so people are worried about

earnings. no one wants to have a position going into the close and they would rather trade out of it. >> one day earnings are good, next day not so good. is the message that they're bad enough in enough places to have people concerned? >> i think the earnings were good for the third quarter, but i think forecasts going forward, there are too many uncertainti s uncertainties. but i would expected a bigger pull back. markets not pulling back as much as anticipated. >> we'll keep an eye on it. thank you so much. so today the cnbc iq 100 index debuted. dom wiinic chew tells us what's it. >> and this is an interesting index.w tells us what's in it. >> and this is an interesting index. tells us what's in it. >> and this is an interesting index.u tells us what's in it. >> and this is an interesting index. we partnered with a research

firm and they went through an algorithmic approach to screen publicly traded companies and their documents to see what kind of intellectual property they had and what kind of money they make off of them. there is no human bias, just districtly a rules based computer approach to scanning all of these publicly traded documents. that's what the iq 100 index is. p 100 companies that have done a lot with generating revenues from that intellectual property. if you take a look at the 100 stocks in this index, quite a few napes that we know about. first of all, baker hughes, one of the bigger gainers today. also whirlpool, one of the big losers. some of the big technology names are part of this index. think about intel, amazon, priceline, all of these guys have a lot of in-taellectual property. and meanwhile there are some companies that are not part of this list namely you have

facebook and google parent company alphabet. they have a lot of stuff going on and they are innovative company, however a lot of the patents that they have don't directly translate into the sales stream as characterized by the guys at m kemp. the reason why some aren't in there, we have to take a look at the methodologiemethodologies. we spoke to the founder. >> just because you use technology doesn't mean you make it. and the fact of the matter is if you look at the financial statements of both of those company, they are 90% plus advertisers. advertising is probably as old as humans. that is not innovation. just having a shiny gimmick didn't make it innovation. innovation has to be something where across multiple laterals you have the ability to control marginal price and marginal cost. and those things are what makes innovation work in a company. >> you guys know how much of a golfer i am. callaway is on this list, but

for more about the methodology, go to cnbc.com/iq 100, all of that stuff is on there for all the geeks out there who want to know how we constituted this particular index. back over to you. >> dom, nice. >> that was quite a statement. >> with about 20 minute left, markets are in the red by about a quarter of 1%. the dow down 53 points and a little bit more for the nasdaq. meanwhile government says obama care premiums will rise about 25%. up next, we'll talk about how the hikes will impact the insurance industry. >> and sales of iphones and burritos when apple and commit

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obama administration confirming affordable care act premiums will jump 25% on average in 2017 as we reported

before, insurance companies are pulling out of obamacare. sometimes leaving consumers with only one choice for coverage. how will this affect the health care industry? >> joining us to discuss, managing director and health care analyst at capital street. very good afternoon to you. thanks for joining us. just gauge for us how steep the price index was and how much of a surprise it was. >> it's a pretty steep increase. 25% is an average number. there are places like ohio that might only see a 2% or 3% increase, but then there are places like tennessee, 63% and arizona 116%. i would point out that about 85% of these enrollees do have some type of subsidies so the government is helping them pay their premiums. so some of them might not see this major increase. but the reality is 2017 is different.

many insurers were fining in the early years that people with chronic illnesses and co-morbidities were signing up for care and they were just very, very expensive. some people were even coming into the market place getting surgery or rehab and then exiting the market without paying their premium for the rest of the year. the other thing that is special for next year 2017 is that some of the premium stabilization programs sunset. so if you were aetna or humana or united or any insurer on the exchange and you were in the red, there were additional dollars to help you out. and starting in '17, only one of those programs is in existence. >> so it see it seems like frans is not how it was spoked it was play out, but where does it

leave the insurance companies and the hospitals? what is the ripple effect? >> i would say that the hospitals have already experienced a bit of a taper from the aca as far as volumes. aetna,humana, these are all large insurers who have reduced their footprint. they're not out entirely, but unless the rules of the road change with a new president, congress, administration, regulato regulatory changes, there are good fixes that could happen to make it a more attractive market, but it could be a multiyear process. >> how important is obamacare going to be for the top of the agen agenda for the next president? is it facing a tough future either way? >> health care would be i would say a back burner issue. you have trade, immigration, the economy. so i think if it is a president

clinton, she would work behind the scenes on a couple initiatives. and then i think she really be wants to work with the 19 hold out states to go them to expand their medicaid program. but i think insurer, p the ones who benefit are the ones part pay thing in medicare advantage. this is the managed care plan option in medicare for the elderly, ppos, hmos, seen yonio, so m.a. is the place to be. even medicaid, i think that is a good place for insurers to be. >> i was going to ask about medicaid. the economics there look very different obviously and that heaves which companies most likely to benefit? >> there is the medicaid purchase plays.lheaves which co likely to benefit? >> there is the medicaid purchase plays.eaves which comp likely to benefit? >> there is the medicaid purchase plays. those plans actually are starting to talk about the medicare advantage market as a place for growth. but then obviously hospitals and

providers are also beneficiaries in the 19 states if they do indeed expand. >> right. thank you for joining us. we have about 13 minutes left to go and we're down about half a percent for the nasdaq, dow down 0.3%. >> and our next guest says earnings season so far has been uninspiring, but he does see some opportunities in the stagnant economy. he'll name names when we come back. what do you got to offer us today? ♪balance transfer that's my game♪ bank you never heard of, that's my name♪ haa! thank you. uh, next. watch me make your interest rate... disappear. there's gotta be a better way to find the right card.

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chipotle is one of the big nach names reporting after the bill. here is a preview. >> second largest stakeholder in the chain and we're not expecting a strong quarter. we're expecting sales to fall some 18% from a greyear ago dese introducing a loyalty program, giving away free meals for kids on sundays. earnings per share should fall about 65%, but again this is because chipotle is spend to go

try to get foot traffic back up. and it's a tough restaurant environment. and also the announcement that they will slow down store openings the next year. back to you. >> don't go to the one at columbus square. a different story. joining us portfolio manager with federated kaufman funds. you have some ideas here and a flat market and flat economy. >> absolutely. the market and economy is at as flat the as you can imagine. if you look at the companies that have reported, ge, flat organic groo organic growth, 3 m negative to flat. if you're buying the s&p 500 today, you're getting an index with negative earnings and growth. and all multiple expansions. so you really have to be focused on company specific catalysts.

>> like? >> for example fedex. largest transportation logistic company in the world and you could put together a scenario where they could grow earnings 40% just based on an acquisition they made. they will save $750 million in synergies. it's a great way to take advantage of the growth growin chers. >> do you own apple? >> we do not currently. if you look decade after decade, largest company in about the world is rarely the largest company of the world for long. >> what about acuity? >> a great example of a siltil l company. target is putting smart lighting in all their stores in the u.s. they can track the consumer as they go throughout store. see how long a customer goes from one area of the store to the next. so a great way to think about

dwat take analytics aund understanding the consumer better. >> if someone is looking for a bit of defensive exposure, what is your top pick? >> you really have to look through companies that can grow through any environment. health care is the only sector with actual earnings growth. >> steve, that be thanks for jo. up next, we're coming back with the closing countdown. >> and then after the bell being earnings galore. we'll have instant analysis. , being earnings galore. we'll have instant analysis. beig earnings galore. we'll have instant analysis. ein earnings galore. we'll have instant analysis. ing earnings galore. we'll have instant analysis. ng earnings galore. we'll have instant analysis. g earnings galore. we'll have instant analysis. earnings galore. we'll have instant analysis.

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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. sign up at etrade.com and get up to six hundred dollars. welcome back. we're look at about a 50 point decline for the dow, that is about a third of 1%. of course the nasdaq down about half a percent. bob, what have you been watching some. >> the important hinge is earnings are still coming in better than expected. not only are they beating, more companies are beating than normally being but the magnitude. how much is much higher. and as a result the numbers are looking really good overall.

here is general dynamics and remember lockheed martin had good numbers. we'll see how they do. but we will get the first big oil company hess tomorrow. we had baker hughes, halg halliburton reporting. and their numbers are optimistic. hess down about 2.5 and oil having trouble staying on the other side of $50 pd. you saw procter & gamble better than expected. and one notable disappointment on problems over in the uk was whirlpool. >> but overall markets are down. so one or two high profile misses offsetting that? >> yeah, i think the main concern is still the fourth quarter numbers may not be as high as some people want. the important thing is we will send four quarters of negative earnings growth. and the numbers so far, 2.

.7% increase and 2.7% increase in the revenue numbers for the third quarter. pretty good numbers, so we'll be in positive territory on earning and revenue growth for the first time well north of a year. and i think that is a reason to be optimistic. still some concerns soft consume ir sentiment that the up in high school have to come down for the fourth quarter. >> and let's have a look at the intra day chart for the dollar. we did see a nice run up earlier in trade. nice peak. and then we pulled back quite significantly during the course of the day. do you think we're look at the end of the recent three week long dollar story? >> it's not clear, i don't being this is a particularly illuminating chart overall here because we came back down to the prior levels right now and i don't think it will tell us very much overall. materials were a little bit on the weak side. they do tend to react to the

dollars you've to the up and down side. so i think we'll have to wait and see. big move will come with apple right after the close. >> okay. bob pisani, thanks very much. ringing the closing bell, u.s. attorney for the southern district of new york. he will be interviewed by jim cramer later today. welcome to the "closing bell." i'm kelly evans. it looks like we have declines on wall street. vix moved up half a point. dollar roughly unchanged. nasdaq dropped 26. 5283 its closing level. 2143 for the s&p and 28, 171 for

the blue chips. the cnbc iq 100 kicked off today. hey, at least it was a green spot today. it rallied with 0.8%. it will be a busy hour for irns. we have apple due out around 3:3 4:30. apple shares a little weaker on the session today. and it's not just apple after the bell. we also get chipotle, panera, pandora. and just to name a few. joining me is michael santoli, jon fortt and guy. welcome everybody. what about the market? >> i think earning season has been good enough to keep the story intact. you have a lot of offsetting

good versus bad and i do think the consumer pressure was the most evident theme between underarrest mower, gm had a gown 4% reaction to a very good quarter, whirlpool, you obviously had some kind of a spending pause in third quarter. i don't think that's necessarily a big mccrow comment. >> and we've had big moves in tech already. >> we have. today chip stocks are doing better, amd, micron. i in-individual probably hopes that this quarter will look forward to a better holiday quarter.individual probably hopt this quarter will look forward to a better holiday quarter. tim cook has said apple will sell as many iphones as they can make but we don't know how

expensive they will be. maybe we'll get a sense in today's report. >> and annual revenue expected to log a drop for the first time since 2001. but still it gois back to the point people have made about when it gets this size, when it gets this profitable. people kind of moved out of the stock and then all of a sudden it's up 20% the past he three months. >> big part of the negative these success was the smartphone sales are going down, samsung will eat its lunch. now that the lunch eating part is out of the negative thesis, samsung wasn't able to eat its own lunch. it got sick and stayed home. so we'll look at the inventory newspapers up i numbers as well. >> guy, what about you? what jumps out to you? >> i look for the positive. why not. i'm a positive guy. but look at the move at lockheed

martin. bob pisani was talking about it. earnings back it up. so i hear what mike said. i think the earnings have been good enough. at a certain point i think the commentary out of caterpillar, mm, some of the other names have to have some effect. sher win w sherwin williams and whirlpool both down 10%. those are big names. s&p still intact to the up side, but again to my point at a certain -- they will come a day when people will wake up and say the manufacturing side of these big industrial sides are telling a much bigger story. >> especially the point that was made as well, not the just how they did in a quarter, the fact that 3 m has cut its guide

guidance xw guidance again. >> technologies had a bit of a firm are report, after the stock got hit. but the things that should be leading indicators, commodity prices, china numbers, they all look like they're lining up to have some kind of a rebound, but not yet in their order books. i think that's what we're seeing. if you look at guidance, it's be look pretty firm. less bad than usual. okay at this stage. >> we should briefly mention we're starting to get results from panera. but guy, with oil, it hasn't really gotten that much attention, but settled below $50 again today. and we're coming up to this opec meeting where it's a lot of assumptions that have been built into the rally for the last couple of almost months now might be flicting reports.

there are a lot bearish reads. to your point, you're coming up to this meeting and do the sides come together and can they get crude oil to the prices they want which is probably closer to $65 than $50. i'm not sur what to tell you. i will say this, some of these names have had tremendous runs based on the hope i think that crude will continue to go higher. but i have to tell you, on valuation if you look at a lot of these napme, they're expensie for my taste. >> susan lee has the full earnings from panera. in up some 5% in after hour after a pretty strong report

card on we're calling it panera bread 2.0. revenue coming in ahead of estimates. $684 million. whereas the street and sales were forecast to come in at $680 million. it's interesting that we have the shares still up despite the fact it came in at 1.7% whereas analysts were looking for 2.8%. so i guess the bifurcated restaurants world, rewarding those that are automated. >> thank you respeyou, interest they missed on t he comps. >> 10% down in two months, so i

think people were braced to bad numbers. >> and they are it sounds like leading some of the change in the fast casual space. >> and i hate to rave about a fast casual experience, but from a technology perspective, the best experience that i have had. you can gcan go, you can order your phone, pay if you have an iphone using apple pay, you can pay through other means an they will bring the food out to your table. minimal human interaction is actually kind of good for me anyway in that kind of a restaurant. >> let's get to express scrapes. >> pretty in-line quarter. $1.74. revenue of $25.5 billion versus estimates of $24.9 billion. tightening its 2016 guide guidance. now going to be $6.42.

also an important metric, its 2016 retention rate. it had forecast 96% to 98%, tightening it that up for express scripts. the earnings call is tomorrow morning. >> and there has been so much foe can cuss on this space as everybody tries to figure out how drug pricing working. >> i'm trying to go flew it now everybody tries to figure out how drug pricing working. >> i'm trying to go flew it now. big move to the down side, but the numbers are good enough given the value ace, i think they're trading 11.11. i think the stock could maybe make a move back from the mid to high 70s frankly. i think it's good enough to get us back there. i'll go back to panera. john, i love jon fortt, but i don't care where i'm going to eat, i enjoy human interaction. am i the only one? i'm not pushing an ipad to order

anything. >> it's good service versus like when people know what they're doing versus the ones that -- >> the problem is i got two little humans 8 and 5 years old who are enter being aing with me in the restaurant. i don't need anybody else. i just want to order the food, keep the kids under control. >> guy is the by you don't want to be standing next to in line. >> you don't want to stand next to me in any line. >> let's get to pandora. put a little music on to the chat. julia boorstin, how did they do? >> disappointed both top and bottom lines. a loss of 7 cents per share you c can, would be cent worse than expected. expectations of $366 million. perhaps more concerning is the outlook lighter than expected.

the key number are the listener hours annum and number of acti listeners. it grew, but that is less than the 5.5 billion hours that was expected. and ending number of active listeners was 77.9 million. and it's actually down from the year ago period. you see pandora shares off over 4% in after hours trading. a rough day of trading today. just want to always see how chipotle shares are doing. before we get more information, just to see how the stocks ran. they're reacting positively to what looked like a big headline miss. going back to pan door i canrdo

you think? >> revenue makes you wonder if all of the competitors coming i you think? >> revenue makes you wonder if all of the competitors coming in withes subscription streaming services are starting to have an effect. pandora which was supposed to have its answer really needs for the product to be great. they say they will have the full suite of tools. not just radio, but also downloads and streaming. they need it. >> guy, what would you add to that? >> when spot guy gty guy got th valuation, you see a huge move in pandora. now i think people are coming to the realization take there are a lot of people in the space. so i don't know where it's headed, but it better hold the $11 mark. >> and shares down about 5%.

guy, we'll let you go. thank you. >> see you later. there is a much more coming up on "fast money." by and the crew will be discussing the stock jumping 15%. garrity will explain why. and we'll follow all the earnings mover after hour. chipotle shares trading higher. we'll take a deeper dive. an apple due out in about 15 minutes. we'll bring you rut results. rut. . ♪ i got it, dad. ow! ♪ we love to keep them safe. so we made the nest protect smoke and carbon monoxide alarm. it speaks up and can alert your phone if there's a problem.

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susan li has the report on chipotle. >> a revenue miss, we were looking for a billion 0 #. when it comes to earnings per share, 27 cents. nothing compare that to.

comps worse than expected. they are forecasting still sales to fall in the low single digits. but for 2017, they say kochls should be in the high singlecol. so maybe we've turned the corner. expectation for 2017 looking at about $10 each. >> maybe maybe people are fixating the trend on comp sales improving. in september it was down 13.4% as opposed to in january when this was dramatically worse. so maybe fixated on that or it was not specifically worse than expected in terms of the top line. >> will, what do you think about the quarter? >> a little bit worse than

expected. i think what maybe people are reacting to now is that the earnings number for next year at $10 is in line with the street. i think the worry is as you look out to '17 and '18 consensus of $14 is unrealistic. so how do you draw the line good the long earning power and then a more realistic recovery. so more of an expectations game in the outyear which has been holding the stock up. >> will, how far are we from the point where chipotle will be closing stores is this higher costs, revenues lower. next step might be to close stores and buckle down. do you see that happening?

>> i don't expect them to close stores. they really do put out havevery strong metrics. slowing store growth which we're seeing in fiscal '17 i think is very much on the table and could impact i think more as we go toward. some of the new store returns are quite a bit below that we've seen, but i don't being the current store base is at risk. we did see them take a charge on chop house. they have closed some of those stories. >> you mentioned some have been counting on the snap back toward the longer term earnings growth trend, enter vuinterrupted obvi. what does the street need to see in terms of trust traffic? is it stable slilizing at all, that it could come back? >> it's not stabilized much. we've seen it slowly improve, but not at quite the rate where

people thought it was going to. going to next quarter, we will see some comparisoncomparisons. nearly 30% negative comparison no for 1 q, so that's when we should see things hockey stick higher and there are investors playing for that trade and our fear is that longer term will be unrealistic. >> chipotle fluctuating away the flat line as people dig through the numbers. thanks for joining us, will. net fliflix trading higher up next, their ceo on why he's not worried about competing with amazon's original kept. and just two days ahead of the big mac event, we'll bring you

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♪ chipotle shares have turned lower. they initially rallied about 2% on results, but not holding on to the gains right now. there are the shares down about 1.5%. both netflix and amazon are key players in original video

programming. and netflix ceo says he's not worried about competing. julia boorstin sat down with hastings and what were are some of the highlights? >> well, it's worth noting that netflix growth has far surpassed expectations across the board especially when it comes to subscribe numbers. so i asked reed hastings about amazon in particular. >> we compete with fx, hbo, with so many networks even with the broadcast networks for new shows. amazon is one of those bidders. they're not everyone tn the big. so one morbider. and they're doing great work. there are other shows that are still working out. but we can't get obsessed about any one company.

>> and he's not too concerned about at&t's acquisition of time waern. he says just as long as that he will treat both equally. and you can also find out at cnbc.com. time for an update with sue harare ray. >> here is what is happening this hour. a federal judge has signed off on a landmark $15 billion settlement in the volkswagen emissions scandal. volkswagen has admitted to equipping 11 million cars with software that would trick emissions tests. new york giants have released josh brown after documents released by a washington court concerned an

incident last year and they reveal that the kicker has admitted to abusing his wife. google says it's expressing its delivery service to 13 more states. the same day delivery service is looking up to its game against amazon. it costs $95 a year and works with major reterrell tailers lio and target. and uber's self driving truck anheuser-busch to hall beer without a driver behind the wheel. i'm assuming that there is a driver in the passenger compartment somewhere there. >> as long as they're separating the drinking from the driving. >> exactly. apple trading higher by more than 20%. company's fourth quarter earnings due out and we'll bring you the results.

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>>wewae it okay apple's earnings. here are some of the big movers already. pandora down more than 8%.

panera hanging on to a gain of 5.5% after it managed to beat on both top and bottom line. 1.37 on earnings$1.37 on earnin on revenue. and chipotle is now lower and we wonder if reports had to be corrected about it koccomps fac in. >> basically the amount of purchases as opposed to sales is the problem. >> apple's earnings are out. joshua lipton, how did they do? >> apple reporting eps of $1.67, that was first estimates of $1.66. revenue of 46.9, again basically in line. street was at 46.94 billion. turning at products, units 45.5 million, analysts projected

48.4. ipad, 9.3 million. other product revenue, including the watch that came in at 2.4 billion. services revenue up 24%. gross margin clocking in at 38%. q1 guide revenue, between 76 and 78 billion. analysts had row jekprojected 7. and i did just have at chance to chat with tim cook and got his thoughts on the quarter. he said he couldn't be more excited about the demand. he said demand continues outstrip splip. and he noted android switchers

were hire are than tgher than t year. and i asked him about the samsung blup der blup der, how good is that for apple. >> he said too soon to say, but they welcomed all switchers. and they are just reacting to the glapd that thdemand that th. he said the iphone 6 become the blockbuster created tough comps, but he's predicting better performance out of greater china. bottom line, cook remaining still bullish, pointing to the innovation in the pipeline. switchers and the growth he's'sing this emerging markets pointing out growth of the iphone up about 50% in the i said i cansaid i can't.

april he will apple shares . kevin, what do you think? >> i think so this is what we expected. the samsung blowup happened fairly late in the quarter, so it will happen q4 than the one just reported. but it helped them a little bit. right now it's all about the iphone. you couldn't ask about a better than turn of events to them. >> jon fortt, i'm looking here over what josh told us. 45.5shipments. is that a little bit of a miss? >> no, consensus was just below 45. mac shipments are a little disappointing.

but they haven't expected the mac line in such a long time. i think the big question is again tim cook had always said they will sell as many iphone 7s as they can make. how many can they make and are they able or willing to shift production toward higher end iphone 7 pluses in response to samsung. tim cook seeming to indicate that he doesn't know what the impact demand wise from samsung's screw up will be. so not a lot of cards shown hands tipped here in this earnings report as to how this really nice setup might affect apple's holiday quarter. >> and shares of apple are lower on the results. i think first quarter revenue was better than expected on the revenue number, but gross margin was light. >> versus what the street was looking for. so hard to flknow where the pla comes in.

it probably got priced to where it was needed. 28% higher the stock is. that's a big sprint. it obviously is starting to look cheap relative to the market, but i think people will look into next year and try to gauge demand. and we'll be talking about the iphone 7 haven stolen demand? who knows. >> and i think it's a pretty normal quarter for apple. nothing new other than samsung made a phone that blew up and of course it will help apple. but more importantly, i just tried to order my new phone and it will take over two months to get it. i find that amazing. so it's either a complete look of proper planner from tim cook or the demand is really good for the phone which is what i think the real issue is. so we're bullish mostly because of the valuation, but we don't see anything new on the horizon for them. >> do the margins tell you

anything? does it reflect something going on with the iphone 7? >> it might just reflect that you have a new product refresh. your margins get better as the product goes through its lifecycle. but i think looking forward margins can only get better here. and they will start walking up these expectations. they will basically exceed them and exceed them and exceed them. the margin is fine. the problem here is they have no excuse for not basically beating on every metric in this next quarter. and even then it will get baked into the stock price any how. so it's a tough expectations game for them now. >> a big part of the question, it's funny we're talking about supply constraints, could their number have been better, they produced and kind of sold through shipped 45 million of

something in a slow quarter. 45 million units globally in a slow quarter. >> it's not good enough, jon. >> we expect to see almost twice that in the next quarter. but the question is beyond the holiday quarter, how is demand going to hold up. you would expect as tim cook says people are switching from android to iphone at a pretty decent rate. they're less likely to switch back to android if their option was samsung than otherwise. so does that help them with momentum into the march and april type time frame. that wie will have to see. >> switches larger than in the previous year. so it's very early. >> it's completely early. and i do think it's just a matter of with the price getting to this point in terms of the stock, i don't think that it will race ahead of what it actually sees in terms of benefit market share. and even if you give them krcret

for fiscal 2017, that will still be below fiscal 2015. >> and we're not talking about they haven't invested the $230 billion they have and they won't grow rev vienue until they get o mee meaningful business. they have closed down the car which is, they have done nothing with netflix. what are they doing? they need to do something. >> they haven't closed down the car business. the reason why others need to buy something like time warner is because apple has all this money and has a loyal premium customer base. if you're apple, all this content wants to be on your platform anyway. why should you buy it? >> the content doesn't care what

platform it's on. what people care about is content. and apple has zero kepcontent. so we think they need to do something p. >> up like the other platforms, apple charge as toll for access to its premium customers. so it wants to pay to be on ios. >> guys, thanks for joining us. apple shares down about 1.5%. but we're not done yet, we'll get more analysis see whether the stock stays under pressure. and boring and somber are out and fun and entertaining are in. but some flyers think airlines should bring back the bore. that's still ahead. 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.

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and remember, every inmovement desk comes with a 30-day money-back guarantee, so you can try it risk-free!! voiceover: call or visit inmovement.com and use promo code freeship. that's inmovement.com. apple shares are down about 2% following the company's fourth quarter fiscal earnings just released. joining us with their thoughts are a hardware analyst and also deputy managing editor at tech know buffalo. welcome to you. and todd, there is talk about whether the quarter should have been better. >> i was positioning that myself. 48 million iphones sold last year when it was the s year. we had the iphone 6s. this is their big phone launch. and while i thought it was

boring the 7 and 7 plus, i still expected a little bit better. and that then has me wondering perhaps supply really is a problem. and we know that going in to it tim cook said first weekend sales we won't talk about them because we're the ones making the supply, not really a demand/supply kind of thing. >> and you made a similar point about how the buy side was kind of looking for a little bit stronger results here, right? >> i agree the numbers are probably a tad what they are looking at. the key of call will come down to where is that inventory balance in the channel. if it's a production issue, then i think you're probably fine at this point for the sock. but i think this is more reflective of how much apple can produce, not the demand. >> where is the up side

potentially for apple? is it around potentially the mac which has had a long time to refresh? you have a very high average selling price of macs if they're able to significantly raise that number in the quarter. is it something in services beyond the iphone? >> i think it's definitely a matter of services and i want to hear more about what apple is seeing from the new sticker packs and keyboard extensions. that waslaufrn elaunched in chl. and macs need to be refreshed. almost hailarious, sad even how long it's been refreshed.ios 1. and macs need to be refreshed. almost hilarious, sad even how long it's been refreshed. >> and it's hard to come up with

the up side i don't understand tp beyond the iphone or the mac on thursday. but september quarter was up better than what most people thought. i think na could that could be side lever. what they have thought about the extra week in the calalculation i'm not sure they're doing it in the revenue line. >> and where do you come down on the question a lot of people have about what apple will or should do on the acquisition front and with what is now about 165, $170 billion in net cash? >> i'd like to see it make a media play. whether time warner which slipped through its fingers, i want to see it gets in to something like that because apple tv, as it stands just feels very boring. as a matter of fact, this afternoon at&t just announced that they will sell direct tv for 35 bucks a month streaming

on demand. now competing with sling tv. where a apple? >> sony tried it, didn't get them anywhere. you look at netflix which is the most successful thus far, they kind of backed away from focusing on acquiring content and has a specialization in creating original content. so why spends tens of billions on old content? >> that's a great point. if apple goes on you and starts doing its own things and creates compelling shows that's great. maybe they don't have to buy something. but they need to be playing in that game somewhere. >> any acquisitions you think they should pursue? >> i think they need to own stock potentially zero

integration rate. perhaps the best use of the capital. i do think over time building their own content is a better way to get into the media content. >> all right. thanks for joining us, guys. we'll keep an eye apple shares. by the way, on that note, speaking of apple today, shug knight is going after dr. dre for money he earned to the sale it apple back in 2014. knight currently awaiting trial for killing a man with his pickup truck wants nearly a third of the billion dre received when he sold the headphones. he says he's entitled to 30% of dr. dre's earnings including sale to apple and he also claims dr. dre hired a hit man to go after him to avoid the payment. >> shug knight is legendary and

saying 30% of everything dr. dre earns for the rest of his life? it's amazing. supposedly he was looking for dr. dre when this incident with the truck happened. and he ran this guy over. and tried to -- well, anyway -- >> i think dr. dre's lawyer said they hadn't spoken in 20 years or something. is there any merit to nice claims? >> you would think two years after the deal closes, lots of other motivations than the fact that it's legitimatlegitimate. >> clearly we're not experts on that. under armour sinking and warned on apparel sales. is the athleisure trend coming to an he said?

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welcome back. you can see some of the big movers after hours. apple shares down 2%. chipotle up nearly 2%. pandora down 5.5%, and panera up 6%. so a lot more to look forward to when we hear from these companies in their conference calls. under armour plunging today after warning on future sales growth. it reported better than expected quarterly sales in its earnings release this morning but said it's north american apparel growth would be slower than originally thought. look at the shares down 13% today. noted short seller also appeared on halftime reporting and gave his take on the broader ath leisure space. >> we're negative on the ath leisure space for a variety of reasons. not least of which, i can't fit in it. but, yeah, that's i think an area that's been under pressure. and i think will continue to be so. >> someone here has been saying that for a little while, too. >> i've been arguing that ath

leisure as a cultural phenomenon might be cresting. it doesn't mean it's terrible for under armour. what i think is ironic about chanos' statement, guys and women who can't fit in it -- it didn't stop them before. it kind of was the game for a long time. i think as a fashion trend, it might be peaking. vf corp missed big on denim. so it's not as if everyone is immediately transitions back to jeans. >> i mean, yeah. ath leisure, after a while you see a variety of people doing it. it's the bloom comes off the rose, as they say. i still like to be comfy at home. >> i don't think -- i just think, look, under armour, it's interesting. its brand is performance, it's serious athletes, it's stuff you need in some respect. and then it becomes blurred when it's, you know, everybody kind of shuffling around the mall, wearing under armour brand. >> my dad is 78, keeping that trend alive. >> i'm doing my part, as well.

it was interesting seeing nike and lulu suffer, as well. is it just about under armour may be -- i don't want to say channel -- but they have so much inventory out there. and they have grown so quickly for so many years. they're now talking about going from 30 to 20% growth rates into the future and not like the latest steph curry show went over all that great. >> a hyper growth company, downshifting to a very fast-growth company is not a terrible thing. the stock wasn't priced for it. the valuation did not accommodate that. and i think shoes is a big issue, because that's somewhere where it's not going to be just easy to kind of effortlessly equities panned market share. at a good margin. >> absolutely. safety first. those are the watch words in the airline industry. but the new wave of airline safety videos seems to be more concerned with emmys and tonys and that is not sitting well with some flyers. the latest from the friendly skies is next. ♪ i got some safety tips that you got to know ♪

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more cash back for the things you buy most. has anyone been on an airplane lately and actually paid attention to the safety video? because airlines are turning that straight forward safety

demo into big budget mini movies, and with videos like these. is anybody really even paying attention to the safety procedures? studies say these videos don't necessarily help flyers remember instructions. they are entertaining in a certain way. also incredibly annoying. >> if you've seen them repeatedly, yes. and, of course, you are forced to sit through them. i just wonder, is it demonstrated that people used to remember the instructions better when they were boring boiler plate? it's just not clear. >> i think virgin america has the only good safety video. i can probably sing the whole thing now. but we don't quite have enough time. >> we can make time, john. >> maybe that's an online extra. i don't think people ever paid attention. nobody was ever watching the flight attendants. i felt so bad for them. now at least you get a jingle stuck in your head. the others are core neny but vi america is great. >> i did find it funny people were upset, they couldn't get the information from these videos. i'm going to go out on a limb and say no one was really

getting the information in the past before this ever started happening. >> and that's why the airlines clearly have decided, look, it's about customer experience, it's about our kind of fun brand as opposed to making sure everybody in the remote, remote possibility that you actually need to do any of those things. >> well, we'll see if anybody is changing their do you know. sounds like they might start to. news alert on express scripps to get to it. >> the company putting out its 10q, divulging it received a subpoena in september from the department of justice and the united states attorney's office for the district of massachusetts asking for information about its relationships between pharmaceutical companies, independent charitable foundations providing cost-sharing assistance to federal health care program beneficiaries and specialty pharmacies. the company saying it plans to cooperate with the inquiry and cannot predict the outcome of the matter. also saying it got in august a civil investigative demand from the united states' attorneys office for the southern district of new york. guys, that coming out in a

filing, stockstill up a half%. >> plenty to keep us busy after hours, including apple, the conference call at 5:00. what are you listening for? >> anything on inventory and the prospect they could catch up with the supply issue around the 7-plus. that could be where the opportunity is. >> we'll also hear exactly what they say on thursday. clearly -- >> tell us now. >> no, i do wonder about the characterization of things around services, media. i don't know they'll feel compelled to address what's going on in the broader industry if somebody asks, do you feel you need to be more vertically integrated now. that would be interesting. >> the services category, the watch didn't really get to -- china, as well, which is a weak point. >> it is. tim cook did say expect good things out of china. i think people are underestimating the mac. there are around 2, 2 1/2 iphones worth of revenue in every mac, and there's possibly a lot of pentup demand. gartm

gartman's number showed people buying fewer macs as a percentage of overall pc sales than in the past. apple generally outperformed. it could be a huge holiday season if they could deliver that. >> we'll see what they say. jon fortt, michael santoli, thank you, guys. "fast money" begins right now. "fast money" starts right now. i'm melissa lee. traders on the desk, pete najarian, karen finerman, dan nathan and guy adami. tonight on "fast," there is an emerging trend that could help you. we'll explain exactly how it works later this hour. plus, there is one group of stocks that suddenly fell and fell hard today. it could spell big trouble for the consumer and broader markets. and later, check out shares of chipotle sinking after earnings. we'll hear what how they are trying to win back customers. first, we start with apple falling after reporting earnings moments ago. cnbc's josh lipton spoke with ceo tim