is kind of extraordinary >> it's the return of the mac. if they wanted to, burger king just used it >> if this were a mike kelly >> a very fun couple of hours. guys, thank you very much, we appreciate it. time for "fast money," to get you covered on all of these calls. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight on "fast," apple and starbucks reporting earnings moments ago. apple crushing earnings. the stock surging to record highs. starbucks is getting crushed those conference calls are kicking off. we have full team coverage josh lipton is outside of apple headquarters gene munster is here on set listening to the call. kate rogers is back at headquarters listening in on starbucks. in just a few minutes, senator chuck schumer will be here in a

first on cnbc interview for his reaction to the gop tax bill and the fed chair nomination you won't want to miss that. we start with what we're calling the two tickets to stock paradise, tax cuts and trump making it official with his nomination of jerome powell, the first details of the tax bill see the light of day, the continuation of the easy money policies from the fed, sending the dow to a new record close. is this the perfect recipe to keep stocks surging and do you just keep buying >> it has been >> i bet you to the punch there. >> maybe it was by design. we chose that. >> vix below 10, the market had an opportunity to sell off on the back of maybe facebook's earnings or maybe facebook's commentary in the post market. but again, here we are, it grinds higher, closes at the high of the day. what does it mean? the dax held exactly where it

needed to held, all-time highs despite the strength in the bond market, the yield curve which continues to flatten, nobody seems to care about. so as far as i can tell, until some event that i can't foresee happening, some exogenous event comes down the pike, you stay the course >> pete? >> i would agree with you. what were we waiting for earnings, right? we've gotten these earnings. now we've gotten through a big chunk of these earnings and are here to talk about the easy money trade. it seems to be playing exactly like you're defining out there look at volatility there's not an overamount of concern out there. at the same time what we're seeing is a market that's traded for the most part in very tight ranges and some moves up to the upside it makes sense that the volatility index would be where it is. it makes sense you would want to buy protection did you see the financials today? i think this earnings season, if your industrials are stretched, but you look at the financials, i don't feel they're stretched if there were an area i would be

adding, i did add in bank of america on the calls, there is an upside here some of these names are getting lofty for me this rotation has been great but there are other places in the market i would rather be >> the framework for this rally continues, it would seem >> and again, i know you're a big eddie money fan, the words to the song are "waited so long, waited so long, i've got two tickets to paradise. the fed was hanging over the market i'm sorry i had to go there, but i did and here we are. we're getting to a place, however, where we're getting near the end of earnings season which has largely been extraordinary, if you really want to look at it, nice dispersion, there's been people disappointed, but pete points out the places you have upside i think you definitely need to be picking stocks here, the market is in search of new catalysts. everything i've heard about today's tax draft bill tells me some of the most powerful lobby

groups let alone powerful states don't like anything about this announcement >> isn't that the most important thing, if you think about the low levels of volatility, people feel pretty good about owning risk assets, there's no fear of the market at the end of the day we're going to get to a point where this will go up to the end of the year as far as the tax bill. it comes back to how much of this positive sentiment, holding the s&p up 15%, the nasdaq up 25% of the year, is really dependent on this bill going through and having some retroactive nature to these cuts for 2017 i don't think you'll get a big reform we've talked about this again and again, it will be pushed into 2018. does the market hang in there for the balance of the year? yeah, probably but q1 2018, as much as we gain from here on out or are able to hold onto, we may see that as a giveback in q1 2018, again remember that s&p volatility is implying like half a percent moves each day and it does less

than that. to me, i think we're just at a place that -- >> you know what makes sense to me too, we're through a big chunk of earnings season mike wilson was sitting right here talking about morgan stanley, the biggest bull there is he mentioned very recently, just yesterday, this is probably a time for a pause and a refresh, which makes sense to me. if the catalysts aren't there, what will be the next thing? those that missed have been punished, we saw that earlier today. those getting it, they're not getting as much of a bang to the upside and it's because of the fact that they've been push sog fast to the upside that i think it's more pause time for a little bit more of a consolidation period in the market. it doesn't mean we have to pull back, and that's what mike was talking about. he does talk about the refresh process. >> that's a good point, it's not a lets go higher or lower from here but even if we're able to hold onto these levels for the

time being, that ain't bad >> that ain't bad. you could argue that the catalyst has been the last couple of years towards the end of the year, the year-end chase for performance for people that have underperformed this market. maybe it's not as bad as this year as it's been in the last couple of years. we're in november already. so you could absolutely see the last couple of months, people chasing this market for the upside to get to their numbers where they need to be. >> chasing what, then? >> you've got to go back to july, what did f.a.n.g. do after they reported? they sold off 7, 8%. and then you saw a rotation into industrials and financials to me that was very much thinking about an improving economy, some legislative stuff, that sort of thing to me if this tax thing doesn't look like it will materialize until 2018, you could have people setting up for the beginning of next year, saying we really do need to take some chips off the table. >> from that vantage point,

we're waiting for those things to materialize we do have a lot of those items materialized in the form of improving earnings, an improving economy, we're looking at maybe 3%, that could be it too and then if we're able to hold onto some sort of sell branson of the possibility of tax reform into the first quarter, that could be enough for a hand-off, to say, you know what, we keep going here >> why wouldn't we because again, if you started to believe this sprinkling of headlines from august from this administration, look, today is a day where you actually see something concrete, people working earnestly at the legislative process. >> people on one side. i think the most bullish thing would be a bipartisan approach to tax reform which hasn't been done in 30 years >> you have to get a plan on the table, dan, and then talk about it >> you remember how this week started? >> with monday >> it did start with monday. it started with a couple of close associates of the

president's being indicted to me, i think that's the thing that people are not factoring in into 2018. if we don't have tax this year and then we have a full-blown political scandal in washington, nothing's getting done as we head into the mid-terms. >> tax reform or tax cuts of some kind are bipartisan, large largely. >> not reform. >> there are people on both side of the aisle by getting a plan out there that people can begin to negotiate, and i don't think the one talked about today will pass, you have enough to get people optimistic into next year, with an economy that's growing, record low unemployment, wage gains for the first time, a shortage in labor, and the housing market outside the pop it took in the homebuilders, has been the best friend for wealth effect for americans. >> he saw a number of impacts when it comes to the proposed tax plan on certain sectors. >> you had private equity earlier today as well. >> private equity, exactly if you can't deduct some of the interest because of debt, i

mean, these are companies that make their -- >> stocks did start moving to the upside, the market closed at record levels once again you look at technology, who has all the money overseas you look at the tech space >> right >> pharmaceuticals is pretty big in that area as well, and the amgens and the celgenes of the world, gileads there is so much money overseas, people are looking at it saying, you know what, that could not only bring that money back but how about an acceleration back to m&a we haven't seen the m&a possibilities. where are they going to put the money? is it going to go back in the company? is there m&a as well >> what did you do today >> today is not a need for the market doing anything. the financials continue to do interesting. there's bottom fishing to be done in the retail sector. emerging markets have settled into a place where they continue to outperform every time we get a settling in on rates in the dollar if you don't believe we're getting this fiscal policy, the

dollar can't get a lot better. >> i added to a spy short, i think i told viewers, i also took a little profit in bitcoin which is more than kind of lapped up by losses. i added to an smh, a semiconductor etf, short when nvidia turns, that will take a breather. >> the russell iwm, if they don't like -- if russell doesn't like the tax reform in the small caps, you'll see it in the iwm number two, we talked about for one the chance for tesla to trade to 280, 292 today. i still think it has more room to the downside. you mentioned the homebuilders i think they threw home depot into that mix, etf, i don't know, but -- >> there was research out about those guys that maybe amazon was

gaining ground in their space. lowe's and home depot were down. coming up, two huge afterhours moves, apple surging to a new high, the stock crossing $900 billion in market cap. ceo tim cook says iphone x orders are coming in hot meantime, starbucks scolding investors. we'll bring you the latest plus senator chuck schumer will be here for his reaction to the gop tax bill and the fed chair nomination later, shares of tesla, having its worst day since july a big trade today raised a lot of eyebrows. much more "fast money" sll ahead. [vo] when it comes to investing,

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welcome back to "fast money. time warner and at&t getting hit today after the department of justice considers a lawsuit that could put the mega merger into serious jeopardy the deal is supposed to close by the end of this year but now as everything hangs in the balance, is it time to worry about this >> it sounds like this was a bit of posturing, possibly at the end of the day, it's a vertically integrated deal and it makes some sense. to me, time warner would be a buy. let's say if it continued to go

down because of rumors, you would want to buy it we know the deal was announced at $85 billion apple had thought about buying these guys if the government doesn't like at&t buying them, i suspect that you would have a company like apple, especially if they're going to be bringing back $260 billion -- >> what does apple want? >> they want content, mel. >> why doesn't this deal put smaller guys in play that might not stoke the antitrust alarms that was the surprising thing. i agree with you, dan. i also think at&t was punished on the announcement of this deal as well. i'm surprised the stock didn't rally. stocks trading back to basically a five-year level on it. you've taken out all of the fluff from this deal in terms of their multiple that's the stock that probably should have rallied today. >> the one that surprised me most is disney and i bring that up because i think there should be m&a, there should be somebody -- here is a guy we all love, i've loved them

forever. >> disney is the "a" in the m&a? >> bob iger. he did pixar, he did marvel, a lot of things. he's done a lot of right things. he's been very slow to the streaming world. he was looking at twitter, went to bam tech. why not twitter now? it gives him -- they've looked at it before, mel. salesforce looked at them as well there's multiple reasons twitter could be interesting to something else twitter can't monetize themselves >> the last time they looked at twitter -- >> salesforce was looking at twitter in 2014. he said he looks at everything and does very little but i still think that's something that would be in the crosshairs i say that as a guy who doesn't own twitter right now. >> but a guy who loves bob iger. >> i love bob iger and that could be a good move for them because they could monetize. >> at&t. we had craig moffett a couple of weeks ago. >> was it? >> two weeks ago

>> time stands still we'll say, and we made this point then, they have no etf growth, they've multiple debt issues i would submit, and we did this a couple of weeks ago, 10 1/2, 11, they're going to earn basically $2.95 a chair. it traded below 33 today my point is i still think there's about 5% downside. coming up, shares of apple, check them out, surging to all time highs as it crushes earning, now a $900 billion company. when you hear what gene munster has to say, you might be tempted to buy the stock right now i'm melissa lee, you're watching "fast money" on cnbc, first in business worldwide here's what's coming up on "fast. what does the nomination of jerome powell to the fed really mean for your money?

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welcome back to "fast money. apple topping $900 billion in market cap for more on apple let's bring in it "fast money" friend gene munster who is dialled into the call gene, it seems like on the most important metrics, apple compet exceeded estimates >> this is probably the strongest quarter they've had since the first quarter of the iphone 6 three years ago they had growth in every product, every geography, until tim cook on this call is giddy the power of this is most surprising given the positive guidance without the help of the iphone x and so he's just given investors a little teaser, all he said is the growth is very strong. but they're still in the prepared remarks i expect analysts to dig into that critical point about how

strong is very strong related to the iphone x preorders >> when it comes to the guide for next year for the first quarter revenue coming into guidance, coming at the midpoint of the range, so are we -- what are we gleaning from that? is that conservative >> typically a little bit conservative but i think what we can glean is given the production issues of the iphone x, that most of that guide, the strength in that guide was probably from the iphone 8 and the other iphones so i think that that is just a testimony about the family of iphone another piece to look at is the gross margin guidance. that was up sequentially very rare, they're guiding for up sequential gross margins. typically you see those dip. i wouldn't be surprised if gross margins dip in the march quarters as they ramp production of the initially more costly iphone x >> all right, gene, we'll check in with you later on >> you guys should have seen gene in the green room before the numbers why coming out he was a bit giddy

he saw the services number up 34% year over year it's important to remember, we'll get gene back and talk about it later, at the end of the day it still is about 15, 16% of their total revenue i think what gene said about geography is growing, and all the products, that's really important. china growing double digits is a good thing >> the china growth i thought was outstanding. >> yes >> so he talked about all the geographies and different segments, growth, growth, record, record there might be a one-time cost for services, $600 million that pads it up a little bit. still a phenomenal number. that is the area where you're looking for, you want to area to continue to show growth. as long as the services continue to do that with the billion plus users and growing, that's going to be gate it's all about retention as well what they showed us again is, even without the x, look at the phones and how they sold once again. that i thought was a huge number >> yeah, so you talk about

china, india doubled, okay there's a lot more room for international penetration. you talked about where the margins basically coming from sales, but it gets down to, always, what multiple you put on the stock, traded between 10 and 16 over the last ten years essentially over the last three years the mean is 13 times, it's traded 14 times. if you think you see this growth, dan, this is where you could put a bigger multiple on the stock and run it up higher >> services seems to grow by a percent in terms of overall revenues each quarter. when you first started talking about services probably 10.5, 11%, up to 15%, dan will correct me if this gets to 20%, the multiple you're talking about is probably closer to the high teens. and this is something that pete said, karen, everybody says it, you get into services -- >> that's a runway to a much higher stock price >> we were talking about time warner, why would apple want to

buy them they're dismal in music, they're dismal in streaming, they don't have any offerings that's why you want to do it margins for hardware have actual plateaued. >> given this report, given the strength that we're seeing in the growth of the phone and services -- you don't even know what the question is would you be a happy shareholder if apple came out and saying we're buying time warner >> i would not i understand everybody talks about content. i don't like that direction. that is such a different, out of the world of what apple would do their biggest acquisition, isn't it still beats i think beats is their largest acquisition, $3 billion. that would be a huge number. i don't see apple doing it >> more on apple straight ahead. meantime, a news alert on the gop tax plan, ylan mui is in d.c. with more >> reporter: we now have a price tag for that tax plan. the joint committee on taxation saying the tax bill will cost

$1.487 trillion forever the next decade that means that this bill does comply with the special reconciliation rules that republicans want to use to fast track this bill and not require any support from democrats we're told that the business side of the tax bill will be a tax cut of $846.5 billion on the individual side. that number is a $929 billion tax cut. over $200 billion is being raised through the immediate and mandatory repatriation of foreign earnings but again, $1.487 trillion is the cost of the gop tax plan, according to the joint committee on taxation. back over to you >> ylan, thank you, ylan mui in d.c. let's head down to capitol hill, john harwood is in d.c., sitting down with senate minority leader chuck schumer, a first on cnbc interview. john >> melissa, we'll get right into it senator schumer, you know they

can pass this without any of your votes >> that's what they're trying to do >> can you stop them and are there any democrats, especially red state democrats who are up next year, who you think may vote for in bill >> well, each of the red state democrats will make up his or her mind, they're independent. but we have a letter that 45 democrats signed and said we had three principles no tax breaks for the top 1%, don't increase the deficit, and do it with democrats, not through reconciliation the three who didn't sign believe in those principles, you can hear those statements, they just didn't happen to sign the letter so i think if they don't change the plan, they're going to have a rough time getting democrats, because the bill is so skewed to the wealthiest and so many middle class people get tax increases. and most of all, for many of our red state democrats, the deficit. the hole in the deficit which seems to be abandoned by the hard right, deficit reduction matters to them still. they're centrists. >> let me ask you about thecor theory behind the bill you talk about cuts for the

wealthy but the core of the bill is cuts for business the argument is this is going to stimulate additional investment, it's going to create jobs, and ultimately result in higher wages. do you see any merit to that argument >> very little >> do you reject it all together >> history disproves it. george bush in terms of the deficit did two big tax cuts they said jobs would boom. they didn't. he said deficits would shrink. cbo said the deficit went up $1.6 trillion thereafter every time there's been a tax cut, in the reagan years, in the bush years, or recently in kansas where the koch brothers predominate and they had their great experiment, if kansas cuts taxes, business will boom, jobs will be created, the deficit will go down deficits boomed, growth in kansas last year, .2%, u.s.

growth 1.6 it's self-serving by some very, very wealthy corporate leaders, not big business, usually, sort of hard right people like the ko ko kochs, and individuals >> do you believe as larry summers and some democratic economists have asserted lately, that taxes actually need to go up, not down, because of our deficits, because of the retirements of baby boomers and medicare and social security >> i would rather see definite neutrality right now the top corporations pay an actual rate of 16%. so to close loopholes and reduce the rates to make us more competitive, fine. i'm not against bringing dollars overseas that are sitting overseas at a reduced rate, if they'll put the money into real jobs, infrastructure last time we did it, there were no constraints, 80% of the went to buybacks and things like that we need jobs in america. this tax bill doesn't do it.

>> the president today nominated jerome powell to be the new fair of the federal reserve he is described as, if not janet yellen, the closest of the alternatives to yellen do you see substantial democratic opposition to him do you think that nomination will go through without too much trouble? >> i think there's disappointment that yellen wasn't renominated after all, i think it's the last three federal nominees who have been renominated, even some that are appointed by a democrat renominated by a republican. so i urged the president, i talked to him about this, to reappoint yellen, i think she's done a good job. the other three who were named, powell is the best one i believe our greater problem is not inflation but job growth >> he'll be approved >> we'll have to wait until his hearings but i don't see the kind of livid opposition that i've seen to others. >> can you support him >> i have an open mind i want to talk to him. >> what was your reaction

yesterday when the president after that terror attack sent out a tweet that linked you to policies that were connected to that attack, and how does it affect your relationship with the president going forward? >> okay. on my relationship to the president, he's praised me in tweets, he's called me names in tweets, it doesn't affect me, i stick to my values and my desire to get something done without sacrificing those core values. as for the reaction, well, you saw today, all three of the big numero newspapers, a conservative journal, a more moderate one, post, a more liberal one, times, all condemned him and thought my response was appropriate >> finally, before i let you go, there are a couple of bipartisan things hanging out there that you've been talking about doing business with the president on one is a deal on daca. the other is a fix to the obamacare marketplaces are there still realistic chances of making a deal with the president anytime soon on

those or have those been taken off the table? >> on the second one, i think there's a strong desire in the senate to do it. 12 republicans, 12 democrats support it, one independent. there are 25, a quarter of the body a republican not on that list came to me today and said, can't we get this done i think we can get that done as long as the president stays out of the way and i bet that would be what in most of my republican colleagues feel in their hearts as for daca, again, there's very strong support in the senate for daca on the republican side. and again, if the president doesn't, you know, on that one he's for it one day, against it the next day, depending on who's pushing him around i mean, there's a lack of leadership in the white house that is just appalling >> is it going to happen >> it could happen as long as he station out of the way even if he gets in the way, it might happen >> before i let you go, the president said today he wants this tax bill signed into law by christmas. is that possible >> well, taxes are so complex.

and the republicans are rushing it through because they're ashamed of it. they know if the american people know what's in this bill, huge deficits, huge tax breaks for the top corporations and the wealthiest people and many middle class people paying an increase in taxes, they'll reject it. >> you're not ruling out that they could get it done by christmas? >> i think it's going to be very hard for them. another interesting dynamic, to win over house members, republican house members, they have to keep the deductions like state and local, you know, like mortgage >> which makes it more expensive. >> which makes it more expensive. in the senate, they have to reduce the deficit they're in a difficult position. and when you rush through a complicated bill like this, there are usually unforeseen difficulties today one of the leading conservative groups, nfib, national federation -- >> they came out against it. >> yeah, surprise to everybody, i never to our republican friends too. >> senate democratic leader chuck schumer, thank you so much >> good to talk to you

>> thank you, john harwood, our thanks to the senator as well. let's break this down. you guys think this is going to be pass. show of hands. >> i think they ram it through >> they ram it through you guys don't think that? okay next question, should be even more interesting for you fellows who don't think it's going to pass we saw outsize market reaction in terms of home depots of the world, the homebuilders. do you buy them because you don't think it's going to pass >> i tell you what, the mortgage deduction is a sacred and i think an important part. again, we don't know a lot about trump's taxes but we know he's not filing them in new york. the high tax states where you're slapping this cap on them even more is going to kill these places so i don't think that these are powerful states. it's going to be difficult to get a lot of this stuff through. the special interest groups like the energy and drug companies are actually being targeted. that's not a bad thing, i would like to see that but i don't think they'll let it go through >> it's a starting point to me i don't think they can get it through at all they've been pounding, but this

is going to take time, to dan's point, 2018 type of a story, it feels like, because there's just too much going on. there's nothing in the middle right now. they're either here or there we just heard from schumer >> it's not even the democrats >> i understand, that's part of the problem. >> it's going to go the same way as the health care thing it was republicans that sank the republican bill. that's what's going to happen here with tax. the funny thing is, they have this massive opportunity they're doing it ass backwards they could have done it this year and done a repatriation, a moderate tax cut and then work towards some of these issues like the salt thing and the other deductions to me, the republicans have made a mess of this, not the democrats. >> i get what you're saying and i agree with some of it in terms of the timing, they should have done it at the start of the year instead of health care but that's in the rearview mirror at this point >> not passing in 2017 >> right if you don't think it's going to pass, should we make the moves we saw on today's market >> listen.

>> it does keep a bit of uncertainty and a cloud. there's no reason to rush in and buy them pull back some stocks trading at multiples, they probably deserve them these are multiples these stocks have never seen before i don't think you have to rush in and buy a pullback today on a situation that's not going to be cleared up >> was home depot unfairly sold off? the last quarter, what did we hear this most recent quarter from home depot? growth online growth, 23 manufacturers i'm not sure they're losing. >> don't shoot the messenger, dude >> i know that you like that bear suit you wear >> the amazon stuff came out over the summer, if you recall, home depot had a brief blip to the downside then made all-time highs for a couple of months we've talked about the amazon effect i'm not certain they're going to get into the home depot world. still ahead, check our shares of starbucks, burning investors in the after hours, disappointing earnings, that

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welcome back to "fast

money. a news alert on the sprint/t-mobile deal let's get to seema mody. >> reporter: t-mobile restarting merger talks with sprint a report says they're working to salvage their merger, although they could still fail to agree on terms if they can reach consensus, a deal could be reached within weeks. you can see sprint shares on the move here, higher than more than 6.5% back to you. >> seema, thanks so much the reaction in the -- i feel like it's a roller coaster it's on, it's off, it's on, it's off. >> we talked about this with craig moffett. sprint has nothing to gain in terms of market value. t-mobile has possibly something to lose. they're going to negotiate the best possible deal, arguably that's already in the price. they have to go to these guys and say we can't possibly pay the market price high margin, high free cash flow, 9% revenue growth, that's great, but this deal may not -- >> the most staggering piece of information that craig moffett

said on monday or tuesday or whatever day that was. >> the day you weren't here. >> is that the premiums merger, if you took the premium out, sprint should be 2 to $3 a share. >> why are you looking at me i wasn't here monday >> i apologize >> i'm filling you in. >> it's a deal out of necessity. if you think about -- >> don't you think sprint needs it more than t-mobile? >> they both need it they're punching up against verizon and at&t for the last couple of years. what they've really been doing is hurting themselves for all intents and purposes we already saw in at&t's quarter, data pricing is going to zero. voice went to zero i think they all face an existential threat, also the same reason why time warner is on at&t's hit list here because they need to diversify >> in the derivatives world real quick, the november 8 calls last week were purchased 138,000 of

them at sprint the eight calls. that's just out of the money from where we're talking about right now. if something were to come together and they're able to get this -- it was the 24. >> okay. again, we got this news that really, i'm not sure that guy would have made the same purchase on monday when we were told the early indications were this deal doesn't go through >> right >> does t-mobile -- maybe a couple of years ago t-mobile needed something but at&t now is so discombobulated, they're fighting landlords all over the place. napoleon bonaparte -- >> i was just going to say >> at&t seems to be doing a lot of -- my point is now maybe t-mobile can go on it alone. he watches, by the way, and he's link listening ahead, starbucks burning investors. inside joke. scalding we'll tell you if investors are hitting the sell button.

apple surging to an all-time high, think stock up 2% right now. gene munster is fired up about the quarter, much more "fast money" still ahead in the souther is helping build the new new york. starting with advanced manufacturing that brings big ideas to life. and cutting-edge transportation development to connect those ideas to the world. along with urban redevelopment projects worthy of the world's top talent. all across new york state, we're building the new new york. to grow your business with us in new york state visit esd.ny.gov.

welcome back to "fast money. starbucks tanking in after hours session following its earnings after the bell today let's get to kate rogers at headquarters with more from the conference call. >> reporter: hey there, melissa. it was a mixed quarter, missing

on revenues. the company increased its dividend by 20% to 30 cents a share. ceo kevin johnson said the company was revising its long term goals for comp and revenue growth investors not pleased with that. they emphasized streamlining of operations by he thought e-commerce and their sale of its tea business to unilever he also said mobile order and pay would soon be available to all consumers whether or not they were rewards members. in t in the winter they'll be launching a co-branded visa card and they're continuing to vest in roasteries and will open the first one in shanghai to underscore the company's commitment to china. more will open throughout the year in 2018

>> kate, thanks, kate rogers at headquarters dan, you just put a trade on the "options action" show. >> i thought there was a chance they would fill in the gap from the summer last quarter when the stock gapped down 9%, they had same store sales that came online and guided the current quarter down. i was expecting maybe things were a little better and maybe it fills in a little bit of that gap. they came in line to that lower guidance then they lowered the next quarter's or the current quarter's same store guidance. this is a company that had a premium valuation for a reason now they're meeting and guiding down it's a pretty bad situation. i know these guys will talk technically. >> have you been scalded >> maybe you'll getscolded too >> i will tomorrow, on friday. >> this company has had an issue on perception the last two years. same store sells trends have been challenging and they need a new algorithm that doesn't say 50 to 20% they need it to say 12 to 13%. they may still do that today that's actually going to be good

for the stock. this is a great company. i've been owning the stock, i haven't felt burned. >> or scalded? >> it's got more sales channels with excellent management. i have no issue with that. >> excellent management, i agree. the thing i think is disappointing is we always talk about -- or i always talk about the growth of china and the growth they have overseas. that's something we just aren't really seeing the impact yet for the stock in a positive way. that's been the biggest stumbling block. >> it could be an upside >> it should be. i look at that and say, with that kind of growth, why isn't this company doing better, why aren't they showing better numbers coming especially from china, because that is the area they're focused on >> they have tea >> absolutely. were you bullish on that you had a bullish trade in there? i did too. we will be burned together >> scalded >> you should be scalding fem ie who follow that. >> the beginning of this year, i know we sat here and talked

about it, there was a very good chance, melissa, that before mr. schultz resigns, the stock makes an all-time high guess what magically happened by the summer traded up almost to 65 bucks, effectively an all-time high then we said, you know what, it's got to hold there and push through, that's the levels we traded in 2013 it failed. now we're at levels that are getting interesting again. i still think the valuation is too high, now close to 23 times or so forward earnings but $50 was the level back in 2013 i sense it's the level again this week or next week as we go into the trading sessions. >> check out starbucks' ceo kevin johnson on "squawk on the street" tomorrow morning at 9:40 a.m. eastern time. ple apceo tim cook just said something very interesting on the call we'll bring you his comments after this >>yeah.

lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade.

welcome back to "fast money. apple surging to all-time high in after hours, topping $900 billion in market cap. the conference call is under

way. let's get to josh lipton for more hey, josh. >> reporter: melissa, the conference call is under way here the focus on that call is all new iphone x here's what apple's ceo tim cook had to say about that device >> iphone x enables totally new experiences like unlocking your iphone with face i.d., taking photos with studio quality lighting effects, or playing immersive augmented reality games. we can't wait for people to experience our vision of the future >> reporter: melissa, also on the call, their outlook for the holidays here's what tim cook had to say about that >> we're incredibly enthusiastic about what our teams have accomplished this year and all the amazing products in our lineup as we approach the holiday season, we expect it to be our biggest quarter ever >> reporter: melissa, back to you. >> all right, josh, thanks so much let's get back to gene munster

who has been monitoring the call on the red phone gene, most interesting tidbits so far >> there have been six analysts on the call asking questions four of them have asked about that iphone mix thing that josh was talking about. tim cook's not taking the bait, he isn't trying to compare he said demands are going to be strong, they're more excited than ever, he's putting the right add injejek adjectives on. it feels like this is going to be a really big deal, and i think the takeaway with, apple has gears to keep turning this up in each of the next quarters with these higher esps >> what's your percentage of x's for the full year? >> we're modeling for the x to be 22%, comparing to the iphone 8 family at 28%.

we're going to learn a lot over the next couple of weeks year, but i feel like that 22% number might be low >> all right and finally, gene, can you grade the quarter for us >> i think this is right down the middle they get a perfect "a," hard to debate across the board strength in every product line, across every geography. going into what will be a good march quarter too. >> perfect day equals strong buy, right >> i think the stock is going to continue to move higher, as these asps continue to go up next year. >> gene, thank you so much, gene munster, loop ventures guy? >> my one objection to gene is his math if there are 52 people on line and 90% of them are, he said, asian, that's 46.8 people. gene, trying to be specific, missed the mark. >> and guy, trying to be funny >> this is not a grade on gene we're talking about apple. >> this is a serious point, he

mentions this, those phones that people are going to buy are going straight to china. we know there's very limited supply the world over. that's a trend we've seen over the last few years the fact that apple, whether you buy without contract, a lot of those contracts are going over there. >> a good indication >> one point about the stock, this thing is going to tick at a trillion dollars before all is said and done. that's the low 90s it's going to go there in the next few months. >> the good and bad news is the average selling price was 618 versus 638 expected. the mix of phones clearly tells you, iphone 7 was surprising, obviously so was 8 that's probably good news. and the gross margin surprise to the upside, you have to watch that it's interesting to me that these other phones are selling very strongly right now. >> gene always brings up augmented reality. you don't hear the rest of the analysts bring that up as much that's the pipeline. that's what we're looking at

i know we're focused on the phone, the x, i know we're focused on services, everything else services, i still love what we're seeing, the growth, 16% of the revenue now. i think augmented reality is something that has has to be begin to be factored into this >> there's x pickup on a mass level. you need the x to experience fully augmented reality. >> it's going to be wearables, not the phones for all intents and purposes >> i think the watch has been a home run, it started off as a bit of a failure and that's the area we're seeing explosion to the upside, mostly in the services area. they never want to break that out. watch is killing it as well. >> do you have any commentary on the stock or did you just want to pick apart gene >> i wanted to pick apart gene >> i'm giving you another chance >> you have augmented reality. >> to give us intelligent commentary but we'll go to break. final trades next.

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right in the heart of the was in his financial crisis, and saw his portfolio drop by double digits. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor. final trade, pete. >> market's always a bit of a gamble melco, this thing is going higher >> eem, you can buy it >> smh, massive outperformance semis. >> what are you doing over the weekend this time of year, party boy? >> home depot. >> your darn tootin'

>> late mulch. >> helps for the next year >> sold off. it was improper selloff. >> improper. >> news you can use. late mulch "mad money" with jim cramer starts right now my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends, i'm just trying to make you money. my job isn't just to entertain but to educate and teach you call me at 1-800-743-cnbc or tweet me @jimcramer. at crucial points, sentiment, sentiment become