>> say it. >> i'm telling you i do think bill billy bush would be excellent at it >> i agree he would be awesome at it. thanks for watching "power lunch. >> "closing bell" starts right nowmism. welcome to "the closing bell." hi, everyone stocks are rallying on news that the u.s. and china may have started up trade talks what it means for investors coming up. i'm josh lipton in coopertino one of the most closely watched earnings season is upon us i'll tell you what to watch from apple as the company approaches the $1 trillion market cap ford rolling out a new bullet mustang even as the company makes a dramatic shift away from passenger cars what the new mustang means for ford ahead i'm sara eisen in for kelly

evens. "the closing bell" starts right now. ♪ good afternoon welcome to "the closing bell." we'll get to all those stories in a moment, but first a check on the markets it's good to be back >> welcome back. >> thank you very much >> i spoke first it was a good interview you did with jamie dimon and gave us a lot to talk about throughout the day. >> let's check in on the markets today. a much prettier picture than yesterday. we're up about 0.5% on the dow, the nasdaq the big decliner there yesterday. the dow is up triple digits as we speak, 132 points it's looking to finish light with its biggest monthly gain

since january. >> let's begin in washington with trade details on u.s.-china talks and what's going on behind the scenes that seemed to give the market a bit of oo jolt this morning. >> reporter: the markets did lift a bit on reports that the u.s. and china had reopened channels for trade talks, but secretary mnuchin, the treasury secretary on cnbc last week seemed to suggest that the channels had remained open, they just hadn't been productive. listen >> there continue to be some quiet conversations, but we're prepared if they're going to make serious moves to negotiate. >> reporter: so he seems to be saying that china hasn't made serious overtures on this front. here's what i've been able to glean in my reporting throughout the day today. according to a source who has spoken about china talk with the treasury secretary directly in the last week mnuchin wants to see progress with china, and he sees the vice premier liu he as

key to these discussions although he was not optimistic about how far they had come in recent weeks i talked to an administration official who said the july 31st, today deadline for a $16 billion export traurch to be subject to a new tariff, that'll likely be delayed past this week because of procedural reasons. as far as treasury's official comment, they declined to comment on the status of negotiations with china as they always have. but for one grain of salt i want to point you to larry kudlow who just a couple weeks ago said even though there might be talks happening between u.s. and china, there is one person who is key >> i do not think president xi at the moment has any intention of following through on the discussions we've made >> reporter: for that matter, the white house, the department of agriculture, many administration officials are buckling in for the long haul. even though they're hopeful that

at some point there can be a break through. i think people are generally trying to be pretty realistic about this >> and just as it relates to what's been out there, what's been threatened and proposed, the tariffs on $200 billion of chinese imports into the u.s., we don't know the status of all it, yet, kayla, is that right? and what about the auto tariff investigation. >> reporter: the president still wants to have a menu of options if in fact negotiations with europe fall through. he wants to be able to have those recommendations from commerce at the ready. as far as those additional slate of potential chinese tariffs remember that the u.s. trade representatives has to basically study and evaluate what would be part of a list of $200 billion in goods then they have to essentially solicit comments, hold hearings, go through all of this

procedural stuff to get to a point where they can legally implement those. we are then on the calendar that the end of august, so that is the date when those could come into effect. so we do have a couple of calendar dates lined out in the future that could provide catalysts here, but nothing as of yet >> okay, great stuff apple gears up to report earnings right after the close today. josh lipton is right outside apple hq with key things to look out for. hey, josh. >> reporter: wilf, let's start with the basics here so the streets expects apple to report earnings per share of $2.18 on revenue of $52.3 billion. key focus for investors today, one iphones where analysts expect shipments of about 42, and that would be a gain of

about 2% also what was the average selling price of those phones and sales mix during the quarter. was the iphone 10 still the top seller in the company's portfolio? also rbc says capital allocation is a big important topic, importantly the pace of buy backs. number three, iphone performance in china, mainland china accounts for an estimated 15% of total sales. so question for investors how is tim cook thinking through increasing trade tensions between washington and beijing and what that means for his company. services will be in sharp focus today. remember that includes the app store, apple music, apple pay. the street expects revenue of $9.2 billion in a quarter. i sat down with jp morgan's ceo yesterday and asked him if the tech sector's pull back was a sign of overheating in the equity market. >> not really. some of those things are company

specific and obviously companies have very high ips, it's going to dramatically change the stock price. if you think we might have a good economy for a couple years and earnings going to grow 5%, 15% or more, that's a very likely outcome i'm not going to say it's going to happen. i look at the possibilities and probabilities, but the economy looks quite strong >> joining our closing bell exchange for the day to discuss that omar agualler, cnbc steve grasso and rick santelli from the cme group in chicago steve, as far as the tech sector, the fact that we've seen such miserable action leading into apple's earnings, could it turn the tide for the entire market or is that too much emphasis to put on one report? >> no, i look at the reverse the fact that apple could be drawn into this overvaluation.

there's nobody who ever thinks apple is an overvaluated bloated stock. so the fact that sold off with the rest of that group is shocking that's a buying opportunity to make >> you've got a theory there's also a kwecoincidence with the timing we're at the end of the month, and that's actually been much more pronounced recently than in past years >> definitely. this is the talk that's going around wall street right now if you talk to funds. if you aggregate the last three days of the trading months in 2018, they're responsible for a huge amount of sell side pressure so in the s&p it's 5% to the downicide. in the nasdaq 5% to the down side in the russell, 10%. so aggregate those last three days and you get the compilation of all the sales pressure. if you look at the s&p it could

possibly be triple especially with the nasdaq, the russell could be double. so it's something to be cognizant if you're a fund, and something to be cognizant of if you're a retail investor watch those last three days of the month. >> that's a pretty telling stat. so how do you see it beyond just the faang names? is it company specific or a broader move out of technology, or as steve said some weird month on action? >> well, it's two fold one is i think the market is starting to move from momentum into earnings momentum so scrutiny about earnings is clearly something that those highly prized highly liked stocks like the faang stocks are truly going to have to demonstrate. they have to demonstrate earnings they have to put earnings growth, they have to do that and the fact is enmany cases these companies have actually produced top line growth

so a lot of these small corrections come on the heels of people trying to figure out how to reposition into other areas when they see more opportunities for earnings growth. the reality is that, yes, the economy is very strong and i would probably say that the u.s., you know, is leading the economic footprint for the rest of the world. and we just saw in japan and we see in europe that reacceleration synchronized growth is coming back despite the fact all the headlines we had on global trade. >> rick, as we get into the final trading day of the month, somewhat a surprise perhaps the dollar has been basically flat for the month. >> yeah, it really has it's a real stochastic looking chart. it thrashes around, but for the most part we're going to trade between 94 and 95 in the future, many traders believe because it's been so anchored in that range really since about early to mid-may when you see central bank

meetings come and go and you don't see more volatility, i think that in itself is significant considering the size and breadth of their intervention into the world of stimulus but the dollar did improve rather markedly against the yen. just wasn't enough horsepower to really give it that big rise many are looking for it'll be interesting, of course, to see what happens with our second day of our fed meeting. and the statement most are are not looking for any rate change. but there won't be any information whether it's on the yield curve or tariffs or many of the touchics we're discussing with regard to the longevity of some of these marketplaces finally on the interest rate front, the dollar index and the ten-year have that in common, wilf it really has been a year of consolidation of many of the big financial products >> gents, have to leave it there. still ahead here on "the

closing bell," we're watching a pair of restaurant stocks as cheesecake factory gets set for earnings and chipotle deals with yet another health scare and up next les moonves, we'll talk exclusively with bet founder rob johnson, what it means r fothe future of the company and the industry

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himself, robert johnson. thank you for joining us >> delighted, wilfred. >> have you spoken to your friend in the last four or five days, robert >> no, i have not. les is a great friend of mine. i've known les over 20 years, and i can say unequivocally i do not know of a more finer gentleman or ceo than les moonves. >> given that perspective do you believe he'll survive this current crisis he faces? >> wilfred, that's up to the cbs board. i think the board has taken the right posture to thoroughly investigate the allegations of sexual misconduct. my only advice to the board would be that they do whatever they're going to do to get the results of their investigation, to do it quickly that's fair to les that's fair to the people who made -- the individuals who made the allegations and it's fair to the shareholders that there be a

decision made by the board as to how they will deal with these charges of sexual misconduct >> if you were on this board, robert, would you have elected to keep him on as ceo while the independent investigation is ongoing? i think a lot of people were surprised that he didn't step aside at least temporarily to let this play its course, come up with some sort of definitive answer as to not be a distraction for investors and people on the company. >> i think that's the toughest question people on the board are wrestling with because you have to bring to these allegations your own background and knowledge of les as a person you've got to do the investigation by independent attorneys to determine the credibility of allegations and at that point you make a

decision so i would have to argue that in some ways you've got to approach this a little bit of -- even though les has said he had some inappropriate behavior early on, i still think you've got to go with some sense of is there a belief in innocent before guilty and then the next question, which is the one i think this whole country and the media and this whole country has to discuss, what is the quintessential accountability that someone has and ultimately must confront on their behavior, inappropriate behavior whether it's man against woman, man against man, woman against woman. that's the quintessential question this conthy has to grapple with, the men and women have to grapple with is how do you determine the level of

accountability for the allegations if proven to be correct? it seems to me apologies don't wurg a work and may not be appropriate in some cases. monetary compensation may or may not be satisfy to the victim total shame and firing could be considered too harsh by others particularly depending on the body of work going forward so this is philosophical slash, moral slash in some cases legal dilemma that i think corporations are going to have to address >> it is a big dilemma, there's no doubt about it, robert. but given the statement that we've seen from mr. moonves included an apology within it, now that apology was not an admission of guilt, but does that mean moving forward it's hard for him to appear 100% innocent and in this current environment, does that mean the board may be forced to act because of that

communication, that pr issue as opposed to anything more fundamental than that? >> well, wilfred, i think you're right. boards can't be absolutely fair -- i mean you could argue that a jury can be fair because they're ajudjudicating for the society as a whole, and there's a body of law that helps guide what they're able to do and not do in punishing a particular crime or a particular activity a board has to deal with the shareholders and people who are concerned principally about one thing and one thing only not the moral equation but about the financial equation so as much as, you know, my good buddy les may have apologized, and as i've said has shown to be an excellent ceo, there could be other issues that drive the board to make a decision so i go back to what i said earlier, that the board has to do this quickly.

they've got to find a law firm i don't know why it would take that long to find a really good law firm, and then people have already come forward in the article in the new yorker. so tay seem ready to talk. you've got to do some background checks on all the facts. and les has already admitted through some culpability on the behavior, so they owe it to les and owe it to the company and to the people in charge to do something quickly. >> robert, very quickly, would you be a buyer of cbs' stock without les moonves making the decisions at the top on programming and everything else has led to the company's great success? >> i'm a strong believer in les as a ceo of that company and if les were not in the seat at that company i don't think i would be in the market to buy cbs stock. >> robert johnson, thank you for joining us and weighing in >> thank you, guys less than 40 minutes to go

here before "the closing bell. things are coming back a little bit. technology is stronger cbs is also higher on the day for a change dow is up 124 points it's been going strong pretty much all day, especially the industrials, materials, those sectors. still ahead on "the closing bell," you may start seeing higher prices for pampers diapers and paper towels let's talk about the latest price hikes. and a look at the new car that could be a silver bullet for ford phil >> wilf, the bullet is back. looks pretty sharp, doesn't it is it enough to add a little shine to a ford brand that could use a little love? we'll talk about that when "the closing bell" returns. you always pay your insurance on time.

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welcome back to "the closing bell." shares of chipotle falling today on reports of customer illness at a restaurant in ohio. earlier we said 100 people have fallen sick, but ohio health officials have received more than 100 calls about chipotle, that's a better way to phrase it we'll have more on this entire situation coming up in the next hour right now, though, it is having an impact with the stock down 5.7% ford unveiling a new version of its iconic bullet mustang and phil lebeau is in california with a look at the car and what

it means for the future of ford. >> we are here with the bullet mustang, and i've gotten this question from people over the last cup of weeks, do muscle cars still matter? mustang has more than held its own when going up against the challenger, the camero the mustang outselling those two. the bullet mustang is just rolling into showrooms we had a chance to drive it in san francisco, the same streets steve mcqueen was driving it on 50 years ago for the movie blip. admittedly we weren't going as fast, but we did get a chance to understand the appeal of the bullet mustang this a limited edition model ford counting on it coming out on their year to date sales, and for ford the mustang still matters. keep in mind the global sales since 2015, and yes they will ship this over to europe and over to asia and china, more than 400,000 sold. it remains in production even

after restructuring. remember it's going to be the foc focus active as the company shifts more of its attention and resources to cuvs, suvs and pickup trucks. they were going to expect lower earnings this year due to a variety of factors primarily china and europe being under a lot of pressure. for mustang fans it's important and for ford it's important. you want to have a halo car. if you can bring any kind of shine to your brand, that's what you want and that's what they're hoping for from the bullet mustang. >> phil, great stuff great color there as well. >> i don't know. i prefer like a bright red >> phil, great stuff phil lebeau for us in california recently phil has been talk

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welcome back to "the closing bell." here a look at the winners in the dow today. the dow is up by the way 126 points, not too r off the session highs. 3m at the top up 3.5%. cal pillar and united tech, some of those industrials and materials companies doing well on news that china and the u.s. may well be starting up their trade talks once again >> let's get a cnbc news update now with morgan brennen. >> here's what's happening at this hour. on capitol hill senate democrats warning allowing people to print 3-d guns will be a threat to national security. they say it's not about policy but public safety. >> this is part of a long pattern of letting the gun lobby get whatever they want even if safety is at risk, even if terrorists could gain the upper hand he complains about terrorists crossing the border, but he wants to let them have guns,

undetected what kind of hypocrisy is this a jury has been selected in the trial of paul manafort on tax evasion and bank fraud charges. six men and six women along with four alternative jurors were chosen it's the first trial to result from special counsel robert mueller's russia investigation and researchers at a university in central mexico say they have successfully harvested stem cells from inside the pulp of human teeth the stem cells could come from baby teeth or surgically removed wisdom teeth and the cells can then be multiplied and frozen and used later in life to help treat a variety of health problems notable because both economically prohibited and controversial. that's been the issue around stem cell treatments andful you're talking about teeth, that could be a solution to both. that's the cnbc news update at this hour. i'll send it back over to you. >> almost grossed out.

>> something horrible seeing teeth on their own like that it is the final trading day of the month time for our check in we do monthly with main stream investors. guys, thanks so much for joining us so, wayne, we are looking at this market. s&p set to have their best month since january. how up beat are you on stocks overall? >> it's just confusion to me it used to be i used to wake up at 4:00 in the morning and look at what the markets look now i don't even bother. it's like every day it's basically up and down, flat line and, you know, the recent uptick is good to see, but with emoo i'm just staying 60% cash, and maybe going 30% into stocks like apple or buying stock options like stm or nxpi or even looking into emerging markets for

opportunities. i've taken some buys into firms like tiki health care and these are firms in emerging markets. but i see a little bit more excitement down the line there than anything here at this stage. >> julie, sounds like wayne has got a lot of cash at the moment. what about you >> i'm usually pretty happy wherever the market is if it's a little overvalued i take a little money off the table. and if it looks like the market is good buy, i'm ought there buying right now i probably have 22% in cash i've done a bit of selling i've taken money off the table in my tiffany stock, which is one of my favorite companies but at 41 pe i think that's a little too high. so i did take some profits there. and i did add to my small

midicize community bank in georgia in southeast which annoyanced a fantastic combined bank and i brought edge to my fox factory holdings, which is very interesting little company that does front and rear shock suspension for motor vehicles, motorcycles, atvs, snowmobiles, race cars. and as the economy does well and big boys do well in their jobs and get pay raises they're going to spend it on big choice. >> that's one way to look at it. wayne, i heard you were picking up shares of apple just curious, we're seeing a little bounce today but the nasdaq is coming off a pretty brutal three-day slide here. have you been looking for buys amid some of the rubble in technology or are you staying away especially in those popular

faang names? >> actually, i bought in some stock options into nxpi after the qualcomm nxpi break up it was beaten so so badly i just couldn't risk buying addition stock options into it, and additional stock options into apple just hoping we see some good news on this earnings announcement today >> final word, what do you think about the tech sether at the moment apple still to report, but some of the other big names have disappointed >> actually my top two holdings are apple and microsoft. i like them. as to what they have going forward, they also pay a div dntdiv dividend i do not own any of the faang stocks it's not surprising during the month of august and september where there's uncertainty for

the mid-term elections that the institutions are going to start taking a little money off the table, and they've got the biggest profits there, so i don't think it's very surprising >> wayne, overall are are you worried about a trade war? >> yeah, that actually is one factor while i'm still staying with a large percentage of my portfolio and cash and also the upcoming mid-term electionerize factors that make be a little hesitant to jump in right away cost dollar averaging into etfs or dollar cost averaging into etf emerging markets have been more kind of my interest as of late >> okay, guys, we're going have to leave it there. we've got 23 minutes of trade and we're high up about 116 points on the dow, about 0.5% the russell up a full percent. when we come back, stocks

rallying on reports u.s. and china may have restarted trade talks. we'll discuss the ongoing trade tensions between the u.s. and china and what the market wants to see happen next and in less than one hour from now we will get earnings from apple we'll break down the results and what it anmes for investors coming up later on "the closing bell." in the meantime, we'll be right back imagine traveling hassle-free with your golf clubs. now you can, with shipsticks.com! no more lugging your clubs through the airport or risk having your clubs lost or damaged by the airlines. sending your own clubs ahead with shipsticks.com makes it fast & easy to get to your golf destination. with just a few clicks or a phone call we'll pick up and deliver your clubs on-time, guaranteed, for as low as $39.99. shipsticks.com saves you time and money. make it simple. make it ship sticks.

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welcome back to "the closing bell." in terms of what is working in this market, industrials at the top of the list today. real estate, health care, materials, utilities, discretionary technology, and consumer staples, though, all in the green. industrials, by the way, wilfred not just a winner today but as we wrap up the month the big winners on the month as a whole the sector is up more than 7%. >> financials also had a very good performance this month. we've got a news alert on green light capital. hey, leslie? >> hey, wilf, that's right showcasing their performance for the quarter, for the year to date and also disclosing some details about recent positions for the quarter the hedge fund is down about 5.4% year to date their loss came in at about 18.3%

the tone of the letter, very conciliatory noting that, you know, one of their general goals is not to be their partner's biggest problem. their partners being of course their lps. they say unfortunately they have been lately and a good number of their partners have deemed worth noting they're not as focused on asset gathering as they are on returns. when it comes to tesla a lot of focus on tesla, a company in which they've had a short position for quite a while now noting that they doubt the entry level model 3 will produce profitability anytime soon if ever, that's a direct quote from the letter also noting, you know, that elon musk appears to be, quote, erratic and desperate. noting some of the comments on the analyst calls as well as his tweet storms that's from the letter they say they did closeout their netflix equity short at $241.86. that was done over the course of

january through april noting it could be worse since the stock has gone up from there they say they made a new investment in lts and also disclosed gold was among their longest disclosed long positions. guys, back over to you >> tesla, of course reports earnings tomorrow. meantime stock rallying on talks u.s. and china are resuming talks to avoid an all out trade war. >> the business community has pretty much represented to the president we agree on a lot of the issues raised by china the business community in generaled would have approached it differently which was to get canada, mexico, and europe on a common front it needs to be fixed, we want it to be fixed. he's taken an approach i'm a little worried could create these negative outcomes. we've told the president that. i'm hoping his methods work. if it becomes more of a

skirmish, if you do $200 billion more and the auto tariffs, i think it could offset some of the benefits we've had from the good things he's done. >> joining us now to discuss, covering investing asia for 25 years. thanks for joining us. so that's the business view from the u.s. what's the business investor view from asia and china on the current sort of trade skirmishes >> sure, i think it's been a very interesting last six weekases the trade tensions have unfolded i think certainly the perception is that the trump administration is not keen to look for a multilateral solution. it's been far more tactical in terms of the approach to the trade tensions i think it's great to see the two parties coming back to the table again. perhaps we'll see an easy solution around some of the tariffs perhaps being lowered on both sides, if a multilateral approach is not going to work. i think the more challenging one is what happens around

intellectual property and ip because i think that's not an a six month solution but something that's going to tail out, and perhaps leading up to the mid-term elections if the trump administration looks to the china side given that the china tariffs have been high historically, maybe we'll find some common ground and geta positive solution. >> the u.s. economy is strong and can take a bit of pressure in the short-term. what's your view can we believe the 6.7%, and if we if this really escalates significantly who do you think of the two economies can hold out for longer >> how many economies globally have been growing at the kind of growth rates we've seen in the last multiple years? and those growth rates, you know, we expect to continue. i think just china and asia in general overall when you think about china representing 31% of global growth, if you think non-japan asia 6% of global growth is substantial.

there's some pressure over deleveraging and the chinese government obviously taking steps around that. it's interesting to see the currency has gradually depreciated. it does have a massive arsenal to be able to utilize in terms of reducing the reserve ratio further and extending the term >> we've seen them sort of ramping up their efforts, stimulus, onetary, fiscal. did they put a floor under the stock market and the falling currency >> i think in terms of the currency what we've seen certainly from an asia perspective and in fact more recently over the last two months is that the review is that the currency is looking relatively cheap specifically when we look at the domestic chinese fixed income market, we've seen yields that collapse from a wide verse of the ten-year treasury to around 31 to 41 basis points now.

i think the government is also being incredibly careful to ensure the currency is not being seen as a media to retaliate against the trade wars and taking steps to adjust that. one example would be in terms of approaching the house account flows. historically china has allowed $50,000 per household, and i think they've become far more prudent how they approach that if you have 21 people who want to take $50,000 out, you have to take watch of how much is leaving the country. >> 13 minutes before the closing bell let's take a look at stocks. they're doing well today on this final trading day of the month of july. we're seeing a 2% decline in oil. that's hurting energy stocks, but overall the dow is up 0.4% s&p is up about 0.5% small caps up a 1% >> and it's our birthday next

month. >> i was so excited for august yes, we share a birthday guess who's older? up next proctor and gamble sales coming up short for the quart. we'll tell you what's eating into business. what the company is doing on consumer prices next and later nigds to apple we'll get earnings results from cheesecake factory and pandora we'll bring you the numbers as soon as they're released how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online. with tripadvisor, finding your perfect hotel at the lowest price... is as easy as dates, deals, done!

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welcome back to "the closing bell." we're just losing a little bit of steam as we approach the close. the dow is up 90 pints the high was double that, 184 points the s&p is up just shy of 0.5% let's check in on some individual market movewise shares of texas roadhouse moving low today after reported earnings and revenue miss. shares of the restaurant did come in below expect eggs. still up, though, 20% year to date and the same store sales still pretty strong. an rbc note came out this morning it's a buy given the pull back in shares they still expect growth in the next couple years. >> you know what they're known

for? >> steak >> steak and buckets of peanut shells on the floor. that used to be a thing. >> steak and peanuts proctor and gamble reporting its earnings you seem to know a lot, so i thought you were a lover of texas roadhouse. consumer product giant posted an earnings beat but saw revenue come in short of forecast that was disappointing big news out of the quarter the company is planning to raise prices on products like downy paper towels pampers >> nappies >> nappies to combat increased cost and that is really for the entire industry. colgate, slow revenue growth and now questions about rising commodity costs, can they pass it onto the consumer that's unclear proctor and gamble saw negative

2% growth in terms of pricing power this quarter so there are questions whether they can pass on increases >> it would be wrong, would it not, sara, to say this is tariff related purely it's things like freight costs, lack of workers. >> it's not just tariffs you had the brazilian strike, and shipping costs and all sorts of things that have kept some these elevated well, the stock is down. the stock is the worst performer of the dow of 2018 down 12.5%. but there are still investors holding out hope since he joined the board with a very firm mandate to make some changes structurally we're starting to see that we're starting to see for instance some of the hoping for more of a shake-up after the break we'll be back with the closing count

down we've got just over six minutes left of trade. and we start counting down to apple earnings. we'll bring you the results. keep watching. cnbc first in business worldwide.

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welcome back to "the closing bell." three and a half minutes left to go to the close. let's look first of all at the nasdaq over two days because the big seller yesterday ozdown and a nice bounce back today we're up about 0.5%. we're up the best part of a percent a few hours ago. there's certainly an important little bounce in those tech stocks and of course apple will be the focus they report in about half an hours time we are high, but not quite as encouragingly as the nasdaq is for the s&p and the dow. the high was 180 certainly way boosted by positive news on the potential of trade talks starting up again between the u.s. and china it russell having a nice bounce today as well, up 1 percent. what about the sector performance today, we're seeing a nice move higher in the likes of industrials, the likes of materials, the ones tied to trade. so moving higher on that trade

talk the financials and tele co. up towards the bottom a reminder whereby of course, this has been a decent month despite all the trade fears the s&p up 3% for the month as whole. the the nasdaq up about 2%, and the dow is up around the same as the s&p. ten year, one month has been kind of range bound but it did break out and the dollar despite yields raising during the course of the month has been largely flat over the course of the month as a whole bob pisani joins me. what was the main take away for the month? >> the important thing we saw faang stocks stabilize although not a big move. netflix, you've seen some big declines in netflix, facebook down 20% on their highs. amazon actually went negative and so did alphabet on the day so let's just call that stable i think the important thing overall is just the mention of a

possible meeting between the chinese and the americans. we move ten points in 30 seconds prior to the open, and that's really what set the tone today we wouldn't be up nearly half without that we had some really good numbers for the month. what we saw here is that the mr market, people want to stay in the market they did want sellout, they did want get out of the market they just turned around and bought value stocks, retail, energy, some of the bank names there's nothing else that interests me, there was a lot else that interested me, and this is why we keep holding up just short of the highs around 2,800. i'm fairly optimistic the market so far the earnings are high, economic reports are good. those are the two things that matter for the markets >> financials have had a good run as well. bring us back to tech. >> i would note today i was

disappointed the banks drifted lower. all the big bank names were down, the ten year a bit lower just not as much momentum as the last few days. >> the bell is ringing, though we are up 113 points on the dow. ringing the bell here at the big bard that does it for the first hour. sara, back to you. and welcome to "the closing bell." i'm sara eisen here for kelly evans. with gains across the board, the dow managing to close higher about 0.5% actually it was the dow's best month since back in january. up 0.4% closing out 107, 48. stabilization for some of the faang names a as bob pisani just

said, russell 2000 had a strong day. so overall a positive way to end what was a pretty strong month for stocks apple, by the way, closing out ahead of that report leading the dow today was 3m and walgreens was the big laggard. ipg photonics the biggest decliner >> i'm not always so quiet and definitely not so peppy, but i appreciate that. every day i'm going to characterize the market in the

way i want you to think about me, sara that's the way it was. you had areas under pressure that got a bit of a lift nothing really got carried away on the down side the up trend has been provided what's been lacking is any real momentum it's not been about a lot of forceful buying behind this, which is why it makes you wonder it just doesn't feel as if the market is going to get away for from you >> do you agree, mike, it was that positive trade headline just before the open that was that positive impetus as opposed to some bottom fishing >> that seemed like an excuse, honestly >> and it was almost a walk back during the course of the day i do think it couldn't have hurt, and it did seem as if it would time that way for that little pop but during the course of the day we just mean arded after that. yes, industrials were strong

those are the areas if people want to play that trade is okay type of environment. >> is technology okay. we mentioned things stabilized and sell-off paused. but pretty brutal sessions there for tech, not just hedge and what's been attach today the dominant sector of this market >> thanks for bringing that up i was worried you weren't going to have me back on again after the tace book fiasco last week tech is not okay we've had a market here for several years when valuation hasn't mattered. and now it's starting to matter. so now we're hoping we're going to get this rotation out of growth back to value the things that are cheap are the industrials. the things that are expensive are obviously the faang names. so, no, tech is not safe >> bill, in terms of your views on tech, do you think these

sell-offs after earnings are going to worry people particularly retail investors out of earning them? >> let me pick up by answering your question on what charlie said charlie pointed out something that's really profound the thing that people found out last week is that they've been making their money on the riskiest stocks. they're the largest but they're the riskiest, right? it's high risk, high reward. and so the point where we are now on tech is, is this the beginning of the end of one of the great large cap momentum trades in history or is it just an interruption and we've got 1998 or 1999 left to do? so i agree with charlie, completely but by the same token i keep telling people the number one question on the road we get is when is this going to change, and i say, well, you can't hold

your breath until it changes and the only time it's been true you could hold your breath was last wednesday waiting for facebook >> now, there have been money flows into tech etfs during the month of july. pretty strong. totaling $1.5 billion. but according to data research it was not the top sector for there flows. health care etfs pulled in more than $1.7 billion. does this give a signal that investors are moving to alternatives other than tech mike, a slight lead monetary, but relative to the last 12 months or so this was an important sort of market >> it was also a bit of a momentum trade as well because health care has sort of begun to outperform it's the parts of health care i think are relevant here. it's bio tech and the growth parts of health care have done relatively well. pharmaceuticals have bounced i think it's about growth investors looking to

alternatives to pure tech. it's not just that the whole market was all about faang and now it became everything but faang. the equal weighted technology index is up 12.5%. it's only 4% off its highs, so i do think technology in general is held together even if it's not necessarily the absolutely dog anymore. >> number two is health care financials, number three that's a operated cyclical bend to this rally we've seen dow up almost 5% on the month. >> right, the economy is very good there's nothing wrong with earning name cyclicals tied to the economy. so we think owning smaller names benefit from the u.s. economy, more cyclical names, even some industrials, some auto related names are exactly what you want to own here.

you don't want to earn these 35 pe stocks. >> guys, hang on for a second because we've got some fresh trade headlines. kayla? >> we're getting some headlines from reuters that the new incoming president from mexico says he feels confident the u.s. and mexico can reach negotiations on nafta in the coming days. it's unclear what exactly he's referring to, whether this is an agreement on the entirety of what the u.s. has put forward or a narrow agreement on just one part of the deal like autos and content requirements, and where certain parts come from, and whether there's a wage requirement for factory workers on either side of the boarder. those have been discussed and those have been at issue in these talks. also unclear where canada figures into this. u.s. trade representative confirming the talks held here on thursday will be just u.s.

and mexico and it'll be to reach a bilateral deal and then try to get canada to come to the table. >> an interesting positive trade step we want to ask you about the reports the treasury department is considering bypassing congress to cut $100 billion in taxes. what's the late s on that? >> treasury is evaluating the economic impact on this as well as the legal authority to do this but it's worth noting they do have some high level support for this within the administration larry kudlow, nick mulvaney as well as vice president mike pence who sponsored a bill to do just this when he was on the hill back in 2006. also some notables on capitol hill who support this. conservatives like this policy because they feel like it gets investors to sell buildings, companies, stocks. right now the government gets that tax revenue and investors

redeploy that money back into the stock market, so it pays for itself that's their argument. pen warten estimated it cost about $200 billion, over ten years that 86% of the benefit goes to the top 1% earners we've seen democrats seize on some of those statistics already. what we're hearing is there's broad support for this in the administration they're just figuring how to do it >> kayla, thank you very much on both of those stories. how would that impact ownership of the stocks, if at all trading activity could it broaden the base? >> i mean in theory. it would increase your expected after post-inflation real return for stocks so would that mean you'd be willing to pay a higher multiple today? look, i think an investor today who's been sitting in some profits having invested a long time ago in stocks made those investments understanding that inflation would going to have some impact on those returns, and therefore your realized gain off of that.

i don't know if making this rote roactive does much of anything except give a break to people right now who have been sitting on some appreciated assets >> bill, i want to come back to those trade headlines whether it was the little nugget this morning or what kayla was saying just now on some possibility of progress on nafta. does that encourage you? we had the positive press conference with mr. yonker recently are those tactics starting to work >> i'm no analyst. all i would say is the whole tariff subject is something no one can control, therefore it's ultimately noise in our particular portfolio we get 73% of our revenue inside the united states of america so to connect that i'd like to go back to your prior point before that headline about charlie mentioned the economy and we were talking about health care

normally when fantastic medical introductions are happening, those normally get to be the most popular stocks because people get those treatments and they're relatives see their lives lives improve and investors get very attracted to that if you look today those two stocks were the bright stars on the markets. on the economy here's the interesting point, the arguments against the economy are the flattening yield curve and the age of the economic recovery but if you go back and watch your broadcast from five years ago all anybody worried about was we have this terrible enemic economic recovery. we had the most anemic economic recovery from '09 to '16 to deep recessions going back 100 years. so what's different is housing began to participate two years ago. and with the massive number of

marriages and babies going to be born to people 30 to 40 years old in the next ten years, it's really hard to have a lousy economy. and i think most of your anchor ladies can attest to that because they've been part of that process >> okay, bill, we'll be back for further discussion >> not just anchors, bill, lots of women >> pandora is out with earnings. let's get to julia boorstin with the numbers. >> pandora shares now shooting about 8% higher in after hours trading after beating on both earnings and revenue the company reported adjusted earnings per share of a loss of 15 cents, one penny better than estimates. revenues also beating estimates coming in at $385 million. analysts had been expecting $373 million. the company says it has approximately 6 million paying subscribers. estimates were for 5.77 million

subscribers. to listen hours 5.09 million the number weaker than expected is the active listeners at the end of the quarter pandora reporting 74.1 million analysts had been expecting 71.2 million the stock bouncing around quite a bit there, 6%, 7%. the company saying they will provide guidance on the earnings call back over to you >> mike, any thoughts on this jumping 5% >> it was down from 830 two weeks ago, so it had this big kind of pull back. we're recouping a bit of that. what i find interesting about pandora, it has traded up since spotify became a publicly traded company and became a strong stock. it's almost brought attention on pandora in the general category of streaming music >> it's down to sell 25% for the last 12 months, but to your

point up 20% in the last three >> we'll certainly be looking for the services number and apple numbers. of course apple music included within that bracket in about 15 minutes time thank you very much to bill and charlie for joining us at the top of the show. chipotle shares taking a dive after inquiries regarding one of its restaurants ahead we'll look why this keeps happening to the eatery and how its health record stacks up. and the much anticipated earnings from opal we'll have the numbers instant analysis with top analysts and arolrsllti tcome here on "the closing bell. it's all yours. wow! record time. at cognizant, we're helping today's leading life sciences companies go beyond developing prescriptions to offering subscriptions with personalized, real-time advice for life-long, healthy living.

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a new kind of wireless network designed to save you money. visit your local xfinity store today. check out shares of chipotle today. they fell more than 6% after the company shutdown a restaurant in ohio following reports that some customers were getting surearly ill there. >> yesterday chipotle saying they closed that location out of an abundance of caution. and in a statement today the company telling cnbc the restaurant in powell, ohio, has

reopened for more the deputy director of reg lullatory affairs at the center for science in public interest thank you for joining us are you concerned by this latest story from chipotle? >> well, there's no reason to panic yet. so far the most repeat reports are all coming from a single restaurant in ohio at this point they don't have a source identified, and in all likelihood it could be sick employees that are limited to that one store they've closed the store and done a thorough cleaning reopening it with new staff. there's no reason to think other restaurants have been affected at this time >> chipotle is pretty profile, it grabs a lot of headlines and wae we've we've se we've seen this before does it have a worse track record >> certainly in late 2015 they

had a series of high profile incidents involving salmonella and pathogenic e. coli it did look like they had a serious problem with their food safety culture and their supply chain. since that time, and they may have been slower than we like in responding to that since that time they have had a change in leadership they've hired a new director of food safety, retrained employees and taken steps like paid sick leave to get employees not to bring that illness into the workplace. >> i wonder if you could put in context some of what we know about this supposed outbreak one, that they have of course have not been able to trace the cause. it's only been, you know, a few days, i guess, but also that the health authorities there locally, say they got some 100 calls from customers who think perhaps they were also sick. does that sound like basically a

typical proportionate response in other words, if people here got something like this, that many folks would say, hey, maybe it got me, too >> i think the risk you run in a high profile case like this is when a restaurant has developed a reputation like chipotle has for these foodborne illness people are more likely to have remembered they'd eaten there if they got sick, more likely to report it and more likely to make the news like this has. it's about building that food safety culture so you don't develop a reputation like this once your brand is associated with foodborne illness it's very hard to build that trust back up with consumers >> we'll see how chipotle does under a different ceo this time. thank you for joining us to talk about the food safety record industrial sectors as i mentioned gaining more than 7% in the month of july the fast money traders take a

look at what's behind the industrial strength and whether it's too late to buy inn >> and we'll find out if the tech giant can avoid the recent melt down we've seen in certain faang stocks nine minutes to go until those numbers hit.

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now. the coleman rose family which you know lost nine relatives when that duck boat sank in missouri is filing a lawsuit now. they stood side by side as their attorney explained the legal action they're taking against the duck boat owners and operators, when all 17 people died when that boat capsized during a storm islamic state is now claiming responsibilities for a car and knife attack on western touris tourists, and isis said in a statement several of its soldiers attacked the citizens of crusader coalition as they put it officials are on the scene after a parking garage collapse in irving, texas rescue crews say their primary search for victims is clear now, but they are double-checking just in case with the corresponding office buildings to make sure everyone is accounted for. and the nba is making history announcing a partnership with mgm making the first sports league to align with an official betting partner.

it is also mgms first partnership with a major professional sports league that is the cnbc news update this hour. back to you guys >> great to see how that all plays out. >> i'm old-fashioned as it is. i just worry about sports leagues aligning themselves with any betting that goes on >> well, it's going to happen, so they want a piece of it >> i know it's legal now, so they're all going to do it so here we go. it's starting. >> bill, lovely stuff. seeing you later meantime apple earnings of course out any minute. we'll bring you the numbers and instant reaction coming up next. and apple getting a lot of attention today, but tomorrow tesla will be releasing its earnings amid cash concerns and production challenges. that will be a b oigne as well, and we'll give you a complete preview straight ahead

apple earnings out in under two minutes. in the meantime let's get cheesecake factory results >> eps coming in at 65 cents adjusted that's a big miss. estimates were looking at 81

cents adjusted the street was looking for 94 million. estimates were looking for an am crease of 1.5% in the quarter. the company cited some impacts to its bottom line included higher group medical costs and legal fees in the quarer they also added they will open six new restants and upped their dividend the stock down though around 5.5% right now back over to you >> we've got less than a minute until apple earnings hit the dow up 0.4%. nasdaq just more than 0.5% the tech a bit of oo rebound after a big sell-off yesterday as we await these numbers the apple share price closed today at 190.3 key things we're looking for >> i think the guidance is the key here because it's kind of a low stakes quarter in terms of what they delivered in the way of

iphone shipments it is how they characterized the quarter. if they say anything about china -- >> also ahead of the september refresh. >> to the extent they give any detail about that, yes >> and china will be the one to watch, not just the numbers but how they comment around any trade. >> and we needed to get up to 203.45 to hit that 1 trillion market cap >> earnings are out. let's go to josh lipton. >> apple reporting earnings per share of $2.44 revenue up 17% to 53.3 billion iphone units 41.3 million, and also the amount of 41.8 million. but iphone average selling price here $724. that is stronger than expected the street was at $694

ipads at 11.5 million. services up 31% to $9.55 billion. that did include a favorerable one time item of 236 million even if you back that out, services up 28%. other products that includes the watch up 7% at 3.74 billion. turning to the q4 revenue guide, apples guide 60 and 62 billion and also looking for 52.6 billion i did have a chance to catch up briefly with the apple ceo tim cook i started off by asking him just about the mix of iphones in the quarter. if you look at the iphones most recently launched, that includes the 10, the 8, the 8 plus grew very nicely in the quarter we're thrilled with how we did there. we also took down channel inventories by 3.5 million units

so the underlying demand is even stronger we did talk about china as well given the trade tensions between washington and beijing tim cook tells me the revenues for greater china grew 19%, so that's even faster than the company. the iphone 10 was the most popular smart phone in urban china for the second quarter in a row. iphones were the top three selling smart phones in urban china. i asked him about conversations with president trump, the conversations they had about these trade tensions cook says i've found him to listen to mine, meaning his views. and that doesn't mean he always agrees by any means. cook telling me he had more to say about these trade tensions when that conference call kicks off add 5:00 p.m. eastern. guys, back to you. >> apple stock up 2.2% after hours. 2.7% thank you for correcting me.

let's get reactions. good afternoon to you all. mike santolli, i'll start with you. clearly a decent beat or the pricing that iphones in particular >> that obviously was the big swing factor because unit sales of iphones were a slight shortfall. i think across the board it was definitely a peat. the guidance for the current quarter up a little bit from the anticipated range in terms of revenue, margins right on target so it looks like largely in the zone of what the street was looking for. but the large selling price obviously the appetite for the latest models is probably good news >> just to repeat that number $724 for the average selling price would suggest that more iphones are getting sold on the expensive side, the x, the 10. >> it's $30 above what wall street had anticipated in terms

of the average selling price so that's a pretty decent margin >> and seemingly high end phones continue to be sold in china, and the commentary from tim cook, not too concerned about the trade fears. we'll hear more, but on the surface not too bad. it could be worse. >> and it's an important signal because china represents about a fourth of its sales and still one of the faster growing regions for them i think the price is interesting. i think the higher end of that tells us -- reinforces the idea apple is not a commodity product, never has been, never will be and i think folks in china like that. the fact that people want to pay more generally tells you how much more value the device adds to peoples lives, all the different apps that are on there. >> i think it also sort of counters the bearish argument this is saturated market where smart phone sales can't grow

forever, ed, which i think is why you're bearish on the stock. apple is answering that saying we're selling better price, higher featured phones and we've still got this market that's growing 31%. >> that's true and the biggest problem you face with apple and it's been very evident now for several years that the high end phone market is saturated their unit growth has dropped from double digits easily. they dropped below zero for the success. and you just posted numbers here, they're only less than 1% growth it's fine if all you're looking for is milk on the high end. but sooner or later you're going to have to grow, and the chinese aren't standing still. they're all releasing much higher end phones. they're not going to rival apple anytime soon, but the trend is unmistakable they're carry market is

stagnating unless they do something to turn that around, i think it's going to get worse >> angelo, a lot of people get excited about the services revenue, certainly the long-term picture there. that came in at $9.55 billion. the forecast was 9.3 billion the is that something to get excited about? >> the number pretty much, the one time number came in about 28%. which is exactly where we expected it to be. is it something to get excited about, i think so. i think as long as we can continue to see growth north of 20% here in the services business year in, year out, i think that's a great thing for the share price in apple because i think the full potential of apple over the next couple of years is not going to be dictated on that iphone business which we continue to acknowledge it's going to see no growth it's really going to come from that services business and how much value they can extract out of that business, and it's looking great right now.

>> ben, your reaction. i'm sure you're pleased with the numbers as a shareholder in apple. and does this do anything to lift the tide in the rest of technology and especially faang names, which is pretty down beat right now off earnings >> definitely. not all faang stocks are created equally. apple you have a very profitable business, a lot of cash versus the hypergrow growth you have w netflix and facebook the average price is huge there. i think a lot of that is when people buy the iphone 10 they're buying the higher memory, that additional $150 i think analysts didn't plug in there but accessories and services is going be the name of the game because obviously there's not much growth. you do have that $3, that $9, every single monthly ament that all of a sudden comes from apple and you have all the kids playing games on iphones and apple is making money there. so the name of the game is

continue to make great phones and build out that accessories business over the past year what have we seen from it, nothing, but at the end of the day we're going to see something at some point whether it's this quarter, next quarter, whether it's after that we're not exactly sure but we're expecting something there and that should help the stock move forward >> mike, if we consider faang to have the double a in the middle, should we breaking from apple and google and netflix these days >> i don't know if it's just those two. obviously not advertised support, and i get the focus on the services it's still less than 20% of the business a lot of that is apple care. in other words, it's not purely netflix where people affirmatively decide forever i'm going to spend $9 or $12 a month. i think it's getting into that zone to be able to be considered

this platform company, but i don't think the market is going to value it quite that way yet >> well, it never has. >> but i agree the big potential value is amyl as a distributed network. there's a billion iphones out there. basically, they keep adding more every quarter. the services business i agree is not essential rise, but they don't own a lot of that right now. it's sort of in-app game performances they haven't really tapped into it yet, though >> and the next step they need to get into the home you have the iphone, you have your apple tv which is probably a bit overpriced compare today the fire, the chrome cast. but apple should be the fire of your home. there's no reason they shouldn't be you have sonos going public, and that's what the next step for apple should be. they should be the central hub of your home, with sound,

lights, everything like that and that's going to help all the accessory revenue services as well >> i was just going to ask, tim cook josh said is going to talk more about china but with 19% growth in china and really bullish forecast, do you as a shareholder need to hear how exposed they are from a trade war perspective on the components and parts that are produced in china? >> yes, we do. and i bet that tim does talk about that a little bit on the call he's obviously been pretty soft there, but we need to hear more information on that. and that is if there's one substantial risk with apple moving forward, that would be it but now it seems that he has donald's year as it stands right now. and apple is such a big juggernaut >> guys, all stay with us because we're going to continue this discussion. of course apple popping on those earnings results, up over 2% we'll bring you back for more analysis what you're looking for

eciclyspifal on that conference call coming up next. "the closing bell" back in two minutes. as much. that's a tough pill to swallow. exactly. so i started trading. but with everything out there, how do you know what to buy? well, i think my friend victor has just the thing for you. check this out, td ameritrade makes it easier to find the investments that might be right for you. like our etf comparison tool it lets you see how etfs measure up to one another. analyst ratings and past performance... nice. td ameritrade also offers access to coaches and a full education curriculum to help you improve your skills. that is cool. and if you still have any questions you can always chat with us on facebook or call our experienced service team, 24/7. yep. just because you're doing it yourself doesn't mean you're on your own. that's great. you're still up. alright. you're still up. if i knew you were gonna run the table i wouldn't have invited you over. call (866) 296-7451. act now to take advantage of commission-free trades for 90 days, plus get up to an $800 cash bonus when you open and fund a new account. ♪

let's show you shares of apple. they are trading higher here in the after market, up 2.6% after apple posted an earnings beat. beat on revenues average selling price for its phones $724. that was a lot higher than analysts were looking for. also saw china revenue growth

19%, and back now for analysis what to do with the stock. is there anything, ed, that you think is going to be key for tim cook to communicate on the call after this kind of order >> china >> i'm sorry, ed lee first and then i'll ask you next >> i think it's a growth area, an important market for them of course there's going to be trade tactics on both sides of beijing a washington it still makes it harder for them to pull it back later whether they get more concessions or a better deal on other aspects of u.s. trade altogether, apple becomes sort of a linchpin. but the consumers want it, they're going to want to keep it i'm sure tim cook knows that

>> ed snider >> i heard a lot of talk about services, he's exactly correct but if it starts to decline it won't take two or three years before the number of people holding iphones is cut 30% i'll point out that the cash balance, the brand name, the strength in earnings, the strengthen in revenue you could take apple's name out and put nokia in there for 2007 or ream in there -- >> they could just sell people higher priced phones and people will turn in theirole phones and turn in higher prices for two ones and the company which is already ginormous can grow revenue by 17% >> if the phone replacement cycle is two years, and it is with apple you're not going to hold onto your user base if you're declining 5% a year and the business model we sell

on that end and hold onto those users isn't defensible and you saw that with rem. they were also far and away the most successful in what we consider basically an apple light model before apple showed up i'm not saying apple's doomed to rim's fate because therlz no strong other oem like apple was when they introduced it. i'm saying it's very clear in the last three years the core business in apple has stagnated and tim cook has to figure out a way to change that he won't be able to just chase the high end it's not going to work >> angela, what's to, what's th for you on the call in. >> the thing we're most interested is going to be what the guidance is going to be. i think that's going to be enough for them or i think it

ipdicat indicates to us those product launches will come out in september. that being said, it'll be interesting to hear the commentary surrounding the average selling prices to us this is very interesting to us because over the last -- what we've seen here happen over the last quarter is saps have actually done very well where typically you see saps start to sell-off the fact it's held up so well i think indicates everyone out in china is willing and wants this product. and i think any indication of that here on the call will be very bullish for investors >> mike santelli what's the update on the buy back position? >> i still think there's a sense out there you just don't know quite what they might opt to do other than what they've already

stated i don't think it makes sense to start pencilling in huge acquisitions for apple but it still remains this one piece of optionality that can be both good and bad. >> you mentioned sonos as a potential acquisition. is there anyone else you'd like them to buy? >> there's one country we like, but they're a small cap company that they are in the home, and that is what apple needs to be they're spending money on entertainment. they're spending all -- they kind of have all these different pieces what they need to do is just be in the home. there's no reason they shouldn't be the central hub that's what they need to develop -- >> i think they're trying to do that with apple tv and they do have a speaker they've launched that has mixed reviews. they're definitely putting out products in that attempt >> i've seen three home pods and it's at three employees of apple that i know.

>> guys, we'll have to leave it there. thank you all very much. great discussion apple stock up over 2% tesla shares falling what to expect tomorrow. earnings report on that one next from some unexpected friends. these zebra and antelope. they're wearing iot sensors, connected to the ibm cloud. when poachers enter the area, the animals run for it. which alerts rangers, who can track their motions and help stop them before any harm is done. it's a smart way to help increase the rhino population. and turn the poachers into the endangered species. ♪ ♪

welcome back to "the closing bell," tesla reporting earnings after the bell tomorrow. roman schaaf joins me now for a preview. roman, i guess this time last quarter we had an extraordinary earnings call after the numbers. is that going to be the focus this quarter >> he yelled at us >> he did yell at us

specifically you my hope is that he's going to be in apologetic mode because the outlook for q3 should be pretty good and you don't want an angry rant to overshadow that? >> will that be enough or let me put it a different way. if we had another quarter of a strange earnings call similar to the last one, will that doic reparable damage. >> i don't know if irreparable in terms of the fundamentals i'm expecting the outlook for q3 to be good and we're forecasting 50% increase in revenues sequentially it's a stretch, but i think it's definitely doable. we think that will do continued progress in model 3 production and we think they'll guide into a profit. >> the pattern has been that they'll revise what they can do in terms of production and often revised downward what do you think the main questions are going to be in terms of the swing factors in the quarter? how many orders and deposits on

hand, you know, remain there is there truly demand for these products and what does it mean for capital? >> for the last four quarters the focus has been exclusively on production. >> right. >> and i think that's about to change to, you know, market opportunity and growth and one of the key questions from this call will be what is the true in demand for model 3 because if you try to order a model 3 you don't have to put down a deposity and it only takes one to two months and three to four months and some skeptics are, you know, of the belief that the demand for the car is perhaps not as good as people were thinking we have a different view if you look at july results and the model 3 was the best selling small and mid-sized luxury sedan and we're just getting started >> when people worry and raise the question of the cash position and things like that. is that something that concerns you or not really? >> again, wilfred, that's been a

big part of the narrative over the last four quarters and i think that's about to go away. once they guide for q3 and the market comes to the conclusion that they're going to be profitable and likely sustainably so from here on out. >> we're trading around $300 what's your price target >> $450. >> there you go. it's nice to have a strong 50% upside from romit shah >> it's been a busy hour for earnings the key numbers to listen to on thcoerce call especially apple. that's coming up next. you always pay your insurance on time.

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let's get a check for you on the after-hours movers here. apple trading higher after beating on the top and bottom lines for the third quarter. the company issuing strong fourth quarter revenue guidance. tim cook pointing to strength in china telling cnbc's josh lipton, quote, iphones were the top three best-selling smartphones in urban china where they saw growth of 40% clearly, we talk china and services revenue and all is still growing, but the real gemstone for them remains the iphone and that performed, as

well >> the iphone and the higher average selling price which redeems the strategy of having people pay in installments you lose that price sensitivity as people are paying a set amount per month and it seems like that's pretty good as a signal for the demand once models come out. china people will be focusing on that, which they probably won't. >> in the after-hours movers, pandora, 15 cents per share, revenue also ahead of analyst expectations and pandora announced it is approximately 6 million premium and pandora plus subscribers and that's up 7% and shares of cheesecake factually after they missed on second-quarter earnings and comps were up 1.4% versus the expectation of 1.5%. so down about 4% after hours we have news now to tell you about campbell's soup moving on after hours.

courtney reagan has more the dow jones is putting out a report that dan lobe have built a stake in campbell's soup of $300 million which would amount to 2.5% the dow jones also reporting according to a source that dan loeb is speaking to the interim ceo keith mclaughlin cnbc.com is reporting that campbell's soup is undergoing a strategic review and that is being led by deloitte. a lot of moving parts and campbell's soup is moving after hours by more than 3% higher on these reports. back over to you >> court, thank you very much for that dan loeb must agree with the president. good soup there. campbell's soup. there's opportunity there as the company that we knew was already in the middle of this crisis like strategic review facing a number of -- business under pressure for a very long time. a lot of people thought it's small enough now and it would be in play.

can this review produce some restructuring that would satisfy investors. >> 20 seconds left will this influence the nasdaq tomorrow with the whole tech sector >> i don't think apple is enough of a bellwether for the market and give you a net benefit of the pop, in the dow and the nasdaq. >> and it would lead to a better feeling with the group and about to have a mess or a big miss >> up 93% after hours. that does it for "the closing bell." "fast money" begins righ ♪ ♪ and there you go we do start right now, thanks, will of and an earningsel bra , celebration. earnings just out. shares are jumping 3% after hours and the stock at an all-time high and inching, creeping, clawing toward a $1 trillion market cap and full team coverage and the bearded josh lipton spoke to ceo tim cook and red phone maverick gene munster here o