good morning it's 8:00 a.m. at apple headquarters in cupertino, california 11:00 on wall street "squawk alley" is live ♪ good wednesday morning welcome to "squawk alley". john ford is off this week dow is up 45 s&p six and two-thirds apple inching closer to a $1 trillion market value after posting a big beat and iphone

selling prices of $724 we have some highlights from the conversation of the ceo. >> reporter: the big story, average sales price of those phones surging to a much stronger than expected $724 due to the popularity of its high end models tim cook telling me in an interview if you look at the iphone that most recently launched the 10, the 8 and 8 plus grew very, very nicely in the quarter, we also took inventories down on iphone by 3.5 million units. the underlying demand is stronger than the knits implied. i talked to cook about china where he said the 10 was the most popular smartphone in urban china. on the call cook addressed trade tensions with china and other nations making it clear he thinks tariffs are a bad idea. >> our view on tariffs are they

show up as a tax on the consumer, and wind up resulting in lower economic growth and sometimes can bring about significant risk of unintended consequences >> another notable theme in the corridor services revenue surging 31% to $10 billion cook telling me we have great momentum there and hit a number of records in the quarter from apple music to the app store to apple care to apple pay. it's a very broad base result both in terms of geography and in terms of the services themselves on the call cook said apple pay expanded with well over 1 billion transactions apple completed more total transactions than square and more month pill transactions than paypal. back to you. >> josh, i wonder if the higher average selling price which

everybody is kind of pleased to see, i think, if you own apple stock today, how related is that to selling these iphones on the installment plan seems it's less price sensitive, more likely to go for the more expensive phone if you're paying it by month. >> great point i also -- we did try to get into how cook is thinking about pricing from here, investors, traders, investors, business people want to know how does the iphone 10 pricing impact, cook is thinking about pricing the next generation of devices cook saying we price products based on the value they are providing. of course we think three new models could be coming in september. i think it's interesting, we had a guest on "squawk box" this morning. not so much a bump in pricing for iphone 11, 20% is iphone 10 how many more people can tim cook get to move to those higher pry models in the quarters

ahead. >> josh, any kind of hints or signals either in your conversation or in that earnings call about what the next line of iphones might look like? >> reporter: cook will never tip his hand they don't play the game in the say way as other tech advisers do that revenue guide was stronger than expected. read the tea leaves a little bit. talked to gene munster he thinks that guidance implies -- we're expecting three new iphones in september he thinks two of those new models will get introduced and launch in september. a lot to get to today. josh lipton watching apple let's bring in inside.com founder jason calhan good morning to you. >> good morning. >> we have services up 31.

second biggest quarterly buy back ever. how much of a negative is trade and tariffs when you weigh it against all that >> i'm not worried too much about the tariffs and the trade. i think it's just too crazy to start a trade war over the iphone that would just be mutually assured destruction for china and the united states and create a contagion that's very bad for a very high priced stock market as we saw with facebook and twitter taking a hair cut last week apple with slowing iphone sales and the higher asp is a bit concerning to me that they can't increase the sale of devices but wonderful to see what they are doing in services and that's a $50, $60 billion story next year it will increase apple care might be a big portion. they are taking out all the friction of owning an iphone i broke the glass, i have to get

it fixed by doing these kind of interest free loans that they give consumers it's really easy to go in there and wind up spending $1,200 on a phone, putting apple care and now you're $1400. you're buying a laptop people will hold those longer. but the service revenue, if there's a billion of these ios devices out there and half of the people who have them, two-thirds participate in the subscription services, apps, music, et cetera, apple care, you're looking at 40, 50, $60 a year per person. it's looking like the amazon prime business and that's what we're going to be looking see apple do is maybe create their apple prime eventually where they put together a bunch of these subscriptions and charge a fee for it, one fee that makes you not think about it taking friction out and letting users have music and apple care and everything at once it's concerning and inspiring quarter at the same time the fact that they can grow

iphone sales for a couple of years now and has plaed to in terms of the units that could have a negative impact on the eco system they are buying back shares. this feels like a little bit of gamesmanship going on and they have three different levers to turn the reality is people love the device that's pretty much all you need to know. >> jason, you mentioned average selling price. does seem to be one of the big key questions for investors. can it continue to sustain that higher average selling price widely expected come this fall and given the fact you are looking at a higher price point. potentially a lot of folks are willing to spend a thousand dollars upward because of the anniversary and it's so much newer. will that continue >> absolutely. if you think about it on a per day price, if these people own these devices for two or three years and have a resale value of

10, 20, 30% over the average cost you're looking at 50 scents a day, maybe people will spend $2 a $1,000 selling price sounds crazy now but it sounded crazy to spend $500 on a device when they spent $1,000 on a laptop. when you compare it to having a starbucks every day it's a diminus cost they have a massive amount of cash they have to figure out a way to keep the ios system growing. so, taking the profits from the phone in the short term is going to throttle the service business and android is obviously running the table in terms of market share. so i wouldn't say this is all champagne and roses right now. this is something to be very concerned about, the flat sales of the iphone.

that is their franchise and so can these services revenue help? it's going to help certainly is it a great business yes. it's a very diverse business one of the secrets of the service business that people don't know that well is subscriptions. we've invested in a number of sb description businesses that are private and these businesses are doing tens of millions of dollars a year and apple gets 30% the first year, 15% the second year. you really can't begrudge them that if you're spotify or netflix or an emerging company so that's services revenue and specifically the subscription portion of it will grow significantly. i think it will accelerate in the next year. if you ask people at a dinner party who have iphones how many sub descriptions do you have, have you ever been to the subscription, you probably have three or four and it will wind up being five or six that's a money printing machine for them >> that's one area that i'm sure

analysts are looking for more information. services as opposed to phones. i'm interested, jason, correct me if i'm wrong, in reason days you've written about how investors can protect themselves against a severe market correction, not that you're trying to scare anyone or call for that necessarily, but explain that and display how apple might fit into something like that. >> sure. i think we have a number of black swans out there, things that we cannot know. i think probably global instability in the tariffs to me seems like the most likely culprit if there was one what i did is i wrote 150 portfolio companies. these are private companies like uber, thumb tack and even down to smaller ones and i said listen if you can raise money now from great investors i would do that because if the market does correct and then turn into a crash, which we saw the correction last week, so i

actually just had aggravate timing on that the question is will these little corrections result in a contagion. maybe that's a 20% or 30% chance that could happen. i advise our companies if you can take character put it into your bank account now at a good price or a great fries a grood or great investor -- good investor do it. when we invest in uber or thumb tack or robin hood it was a down market startups specifically fortunes are built in the down market and they are collected in the up market >> interesting good read. something always to keep in mind ay son, we'll limit it to apple today, though, as we're coming off the highs of the session we'll talk to you soon >> thanks for having me. apple closing in on a historic mark, $1 trillion

stock hitting $200 a share for the first time who better to join us now but the decent of evaluations. aswath damodaran is joining us by phone taking a look at apple despite a 5% move higher in the stock, it's still trading 17 times next year's earnings estimates. come that to other fang names. amazon 162 times is this stock still undervalued. >> i think it's reasonably valued here's why the ratio is not that good of an indicator if you look at the amount of cash they have and you take that out of the mix, they are actually not trading at that high amount of earnings. unlike other tech stocks which are trading richly relative to future apple is a reasonably priced stock that has to be brought into the mix somewhat >> in term of closing in on that

trillion dollar mark market cap how do you expect the stock to trade from there >> i think you got to -- you got to be reality based. this is a cash machine but not going to be a high growth company. those days are behind it this is the greatest cash machine in history i'll say it again because it's a company -- can't top throwing off caps companies wish they had apple strong i think as long as you're realistic buying a low growth company that will throw off cash like crazy for the next few years then i think you're getting a reasonably good investment >> you mentioned that apple stands out relative to the other very large technology companies, ford having a modest evaluation. is there any information that you would if inferior from the fact that the market, despit the fact it's willing to pay up generously for these other big fancy tech stocks don't strain the evaluation on apple.

is the market telling us we have to be concerned about the maturity of the product line or apple's ability to don't earn these margins for a very long time >> two things holding back apple. first isthat it is primarily a smartphone company not a computer company it's a smartphone company. you got to reinconvenient yourself every two, three years to continue to be successful you're only as successful as your last upgrade, whatever the new model you came up with second is the smartphone business is leveling off it's not 2009. lots of growth ahead of you. i think the market is building those realizations into the evaluation of apple. i think apple is a hidden jewel and those are the things you're investing in, the fact you have more than a billion and a half people with apple devices around the world. give them a user base for them to figure out ways to make money off that user base you could get a bonus.

it's growth is slow and so dependent on the iphone for success. >> i want to dig in more to some comments you made before, the fact that this is not necessarily a high growth company. i mean i'm just looking at the revenue numbers, 17% growth, profit rose 32%, iphone sales up 20%, services revenue up 31% how is that not high growth? >> well, i think in a sense you got to look across it. derogatory a new model surge in growth and then it levels off. people overreact to whatever the growth rates are look across the last five years. you'll see a growth rate in the single digits not in double digits i think that's what we have to do especially with this phone business the bulk of your revenues still

comes from the iphone. and in that you go across quarters growth is much more moderate than what you see in the most recent quarters. >> i wonder once you make -- every time we talk about their cash forward and people talk about what they can buy and still have money left over they are judicious on m and a. does that strike you curious >> no. as an apple investor i'm glad they haven't bought twitter or whatever else people suggested they should buy. it takes an incredible amount of restraint to do what they do i'm sure every banker is trying to get them to buy something i hope and pray that they don't do a big acquisition in fact, i rather they give cash to investors and let investors find other things to invest in with that cash >> quickly before i let you go, you mentioned you're an investor

in this company. are you buying today >> i'm holding what i already have i'm already overinvested in apple in a sense i'm holding for the moment >> thank you for joining us, the decent of evaluations. womaning up cloud company beating on earnings but trading sharply lower. down 6.5%. ceo sits down with us. more to come on apple's big quarter, what the street is saying about the company's march to 1 trillion. more to come after the break (indistinguishable muttering) that was awful. why are you so good at this? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum-

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earnings beat shows strong results in cloud security but stock is lower on weaker guidance frank leighton is the ceo. welcome back good to talk to you. >> sounds like folks are zeroing in on web division what's happening there >> web division is doing very well revenue up 11% great to see the improvement in our media division up 8% our security products which are built in the web division are just really knocking it out of the park we're over a quarter of our

revenue in security. that was well up over 30%. our products have recently been named as top in class by most all the major analyst firms, so business is really very strong >> why the stock reaction, do you think today? >> you know, sometimes that happens. it's usually short-lived when you look at the fundamentals in the business, and the fact that we raise guidance for the year, we're growing the bottom line at well over 30%, you know, i think there's good reason to believe that should be a short-lived phenomenon >> you mentioned cloud security and the strength there last week we talked about the growth opportunity for security systems. >> there's huge potential growth everyone knows, you know, the scale and sophistication of cyber attacks has been rising dramatically you got nation state engagement, organized crime, and we're really at the forefront in there

our ability to protect the world's major enterprises from attack denial of service attack and from data theft, and really exciting to see the progress of our products there >> from the media business, the media division means delivery of content. what are the actual kind of macro drivers of demand there? do you get paid based on literal volume of traffic or how does that work? >> yeah. ilt based on volume of traffic and there's big drivers there. there's over the top video, and we see that growing very rapidly. and also gaming releases you know, the fortnight release has been a big deal. in the last few months we set internet records for traffic delivery many days just for events like that, delivering over 20 trillion bits every second, mind-boggling numbers and the best part of that is we're at the tip of the iceberg as more people watch more high quality video online and download games.

we're at the forefront of that you start to see that reflected in the strong numbers in media growth for akamai. >> i want to go back to security for a minute yesterday homeland security unveiled their new skieb security center. vice president mike pence blamed cyber security weakness from a u.s. standpoint on the previous administration saying that they had chosen silence and paralysis over strength and action >> i think in general the folks that would like to do harm are ahead in the game. and it's not a political issue, it's an issue of getting defenses put in place and that's where we do a lot of our investment and we're making very good progress. you know, we've had examples now with the world's major banks where we're stopping account take office and account fraud by using machine learning capabilities and how you hold a

device when you log in to tell if you're a human or not or if you're a bot trying to take stolen credentials and empty the bank account we're making excellent progress there. why the business is growing so rapidly. you got to do a lot of work to stay ahead this is a big deal >> in terms of the tools you're developing in those investments you're making where do you see the biggest threats coming from? is it countries like rush. individual hackers it is something else >> the big jet threat today are nation states and organized crime. you know, you also have political hackivism. not so much the individual in the garage like in the old days. this is major entities that have a lot of money, a lot of will and desire and strong capabilities so you really need strong capabilities to stay ahead of that and to defend, you know, the banks, the governments, the major enterprises from data theft,

data corruption, and, you know, stealing of individuals records and money. >> we'll wrach the price action today and long term narrative of the business appreciate your time good to see you again. tom leighton joining us from akamai in san francisco. as we head to a break take a look at shares of pandora. stock are surging. better than expected results from after the close yesterday subscribers to its premium service increasing for the quarter. see the stock there up more 15%, although it only basically gets you back to where it was a week ago. there was a big decline heading in to print. next apple posting its best june quarter ever. it marches towards that $1 it marches towards that $1 trillion market level.

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37% of the s&p sector is in correction territory >> it represents a consolidation phase like this sector has gone through many times >> tech sector is producing the sort of results you expect >> so you buy this stock >> absolutely. welcome back let's get to michelle

caruso-cabrera now for the european close >> european stocks closed lower across the board today amid renewed concerns about president trump hiking planned tariffs on $200 billion worth of chinese imports. italian index was the standout to the down side lower by 1%, 1.5% add to that concerns about weak industrial growth numbers in china. despite that bad news, european bond yields they are higher. mostly higher across the region, partly mirroring what's happening in the united states even though eurozone manufacturing put on the brakes. it grew at its slowest pace. on the individual names in focus, volkswagen shares fell 3% warned of challenges ahead stock is off by more than 3% volkswagen saying difficulties due to new anti-pollution rules

could cloud their expectations for consumer cars. air france is reporting sharp drops last quarter because of labor strikes which are a common occurrence there. back to you. that stock down 40%, i believe year-to-date thank you very much. let's now get over to sue herera for a news update >> good morning. here's what's happening. china accuses the u.s. of blackmail and says it will retaliate if washington increases tariffs on chinese imports. in a news briefing a chinese foreign ministry spokesman says u.s. pressure won't work and called for dialogue to resolve trade issues turkish president erdogan says threatening language from the u.s. will not benefit anyone as relations between the two nato allies sour over thecase of a

u.s. pastor under house arrest on terrorism charges this after a turkish court rejected appeal to release him former arkansas governor huckabee taking part in a west bank settlement. he's sure president trump would have been pleased to join him. >> i think that if president trump could be here today he would be a very happy man. happy because he's a builder and he loves to see construction sites. he loves to see things that are being built. that is his life >> that's the news update at this hour. you're up to date. let's get back downtown to you carl when we come back remember when a $1,000 phone was controversial. apple delivering its best revenue number thanks to higher than average prices for the iphone two apple shareholders will join us next and talk about where the stock goes from here as we get into a new product cycle new has gone back to the flat

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let's get back to the story of the morning apple continues its march words to $1 trillion as apple shares hit a new all time high, hitting $200 joining us now are two apple shareholders david roth and ross

gerber, who is with us on the phone. ross, i'll start with you. there's move in the stock. is there anything here that worries you or you fine disappointing? >> actually, i'm surprised to say no it really hit everything exactly how we had hoped and after watching samsung's numberser with looking to see if they were taking share with the phone market dropping. what we're seeing the phone market is steady and apple continues to hold its position and grow the biggest issue moving forward for april approximately is what is their next big thing. other than that, i mean they are doing a wonderful job in services and other products. >> i want to dig into valuation. is there anything that concerned you? >> so many things to like. actually in my mind the biggest negative was, i was hoping that they would buy back even more

shares than what they did. i think we're starting to realize that as big as this trillion dollar company soon-to-be is, there are some days that the liquidity just isn't there and so, you know, that's a first class problem to have but it was a sterling report on many front >> david, there's been a lot of debate about how to value this company, is it a tech hardware company. should we be paying more attention to that. some call it a consumer company. a consumer staples company how do you look at it and is it valued fairly? >> i think we got to take it a couple of steps further. i don't know many people who leave their home without their smartphone and there's so many things a smartphone can do now. it's really morphed into, i would call it almost not a consumer staple but almost a utility, maybe even an

unregulated utility and to take that analogy further, think of it as an unregulated toll road or toll bridge and in terms of the valuation i think it should have a consumer staple multiple. you put a 20 multiple on the earning power of apple where we think at the end of calendar 2019 not fiscal 2019 but the end of calendar 2019 with some pretty aggressive share buy backs you're going to be looking at earning of around 14.5 on its way to 15, put a 20 multiple on that you have a $300 stock >> ross, we had a discussion this morning whether or not they should be more aggressive on getting into accessories or pricing the accessories they do have i know you made the point, the car continues to be an area where we're still looking for something new. obviously there's been challenges in getting a speaker that's competitive what do you make of all those

so-called i was the? -- negatives >> the problem apple here is they are hitting it out of the park today but what about five or six years from now. as viefrs we're not planning on selling our stock. that's the concern number one, if i was ceo of apple the first thing i would do is buy companies like sonos going public very soon this is a very attractive company. control four is a very attractive business. on the car side how apple hasn't taken a stake in tesla will go back in history as one of the biggest mistakes in tim cook's career this is an opportune for apple buying 10% or 20% of tesla and getting the ios system into the tesla screen on the car has tremendous potential so, we really think that apple has to start thinking about this they are spending a ton on r and d. they are hitting it out of the park completely with everything

that they are doing from the past but it's the future of that that we're starting to focus on >> david, on this idea that apple may be economically should look something much more like a for profit utility without price controls or even a consumer staples business, apple is in the odd position where this great recurring services revenue doesn't come with higher margins than its original core business and hardware that's one bit of push back. another would be maybe once apple stops making a big deal every couple of years about the new fancy hand sets they are coming out with and makes a big splash about technology knives, the market can start to assimilate this idea they are no longer so hit driven >> my understanding, i'll take the other side of the premise of your question. my understanding is that their services business has higher margins than their corporate average. i mean, i think we're used to a lot of software services

companies that don't generate a lot of profitability apple is the rare exception and because of those high margins, that allows almost a pricing umbrella, if you will, to maybe offer a little bit maybe lower cost iphone and so when i look at the totality of the stable level of average selling prices of the iphone, a service business on a run rate of getting 50 billion in the next year or so and corporate margin, i mean margins of the services business higher than corporate average, i think you make the case it's got to be a low 20 multiple even if tim cook even mentioned on the call, even if the iphone units isn't growing so much as it did a couple of years ago it's still a gigantic generator of cash flow that helps fund other r and d elements of the apple story. >> before we let you both go,

ross, given the fact you're an investor in apple your a buyer today? >> well, yeah. you know, i'm not actually buying today but i would be a buyer of apple with new money here because i just think at 19 times or 18 times, i think david absolutely wright this analysis of potential and i would describe a higher multiple on the services business because he's right about the higher margins and it's a subscription business with a mode that's huge this is a great company. our number one holding it's just teflon i love it. i'm super happy today. >> quickly, david, you >> we're not buyers today. we've owned it continuously since 2005 we only own 20 stores apple is 10% weighted in our portfolio. >> we'll leave it there. let's get to phil lebeau

>> reporter: let's take a shares of rates, ferrari are take a hit because the earnings conference call in which the new ceo has essentially said that the financial targets that have been set out for 2022 those were set by the previous ceo. he says that those targets may be, quote, aspirational and that has spooked investors. this on a day when ferrari's second quarter earnings showed 57% increase in core earnings but, again, the comment that the 2022 financial targets may be aspirational that's why you're seeing shares of ferrari dropping more than 7%. one point of clarification, people want to keep in mind that in the past when sergio would set financial targets for ferrari or fiat chrysler, there were many people who said you know what? those are too ambitious and over time he would have to adjust them a little bit. perhaps he's a little bit too

candid in his assessment today back to you. modifying soft guidance a contentious earnings call last quarter what to expect from tesla in just a few hours first,rick santelli what your watching this morning >> i'm watching the rise in global long rates. actually many aspects of the yield curves in various developed economies. rates moving up together brk.tethlk about that afr e ea

let's get to the cme group and check in with rick santelli. good morning, rick >> reporter: good morning, carl. you know, global rate increases and i'm not talk being about the proactive kind like our central bank has done seven times. those rate increases i'm talking about the part of the market that's still tradeable, that isn't owned by central banks, seems to be moving up. they move up in spurts and they all seem to move up together whether you look at the uk's gilds, whether you look at some parts of the southern european economies, bunds, ten year note yields what exactly is going on i think the first place to start is central banks the bank of japan met the other evening, 31st was their decision day and they only did some tweaking but investors were very quick to test the new boundaries.

kind of like rearing children. as they get older you give them more responsibility and more lati l latitude and test the boundaries there was a 15-month period when the bank of japan on behalf of the ministry of finance did huge amounts of fx intervention, most of it sterilized but that's for another day. that 15-month period ended around 2004. the reason the reason similar against george soros in the '90s investors figure out when a central bank tries to push a market or steer an outcome, at some point they want to push to see how much they can push the entity pushing and it doesn't end well when the intervention ended the yen was for a while very

volatile then china, we all know there's the tariff situation, potential for an escalation in the trade issues of the day and there certainly cab dark swan there. absolutely but let's look at what they are doing as a result. they have reversed much of the restraint. they went from china pull away from the punch bowl and refilling it quickly and these loose policies along of course with other policy issues can push down the yuan last several times they wished down yuan they had capital flight out of the country. they will try to control this and keep it from getting out of hand and finally our central bank our central bank in many ways bringing religion to all the other central banks. i can't imagine a scenario where we continue to normalize and all the other central banks don't step up the pace and that's exactly what we're watching unfold before our eyes carl and the gang, morgan, back

to you >> such a key question, especially on this fed day thanks for bringing us your insights coming up why elon musk is sending david aeihorn a box of shorts stay with us honey, this gig-speed internet is ridiculously fast.

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elon musk took to twitter to troll david einhorn. in letter, he admitted his firms bet against tesla. was its second biggest loser musk responded quote, trangicnl einhorn short having a serious impact green light is down more than 5% for the quarter. more than 18% for the year of course all of this as tesla gets set to report tonight after the bell in what has been a contentious fews for its cofounder and ceo. everybody's going to be watching cash burn and whether or not they can maintain some of these production targets >> and reservations. we've had analysts who have said there have been reservation

cancellations and those are outpacing down payment frs new orders of the model three. i was having a conversation with somebody who has decades of experience in vehicle manufacturing. including ev chlts one of the points they made was that the technology is constantly evolving and that evolution is accelerating so when you look at the manufacturing issues around tesla, one of the pieces that isn't discussed often is maybe this is a company that needs to say this is where we're going lay the ground work and the blueprint for that technology and just move forward with that. the fact that maybe they're not doing that has been contributing to some of the delays. >> i think that maybe that's part of the reason why elon musk sort of personal grappling with investors and analysts and short sellers gets to people look, operate the business, prove you can do this on scale make sure you're at a velocity for being able to produce these

things at a price you promise. >> the morning talked about got a lot of reservatizs for model . called it a bait and switch. fairly or not they're making cars that are 50 >> just anecdotely, the history of ceos that personally mock short sellers is not great you don't want to see your ceo take things personally >> if this is the conversation ahead of earnings, could be potentially see fireworks again? >> at 300 again. the front for the bears versus the bulls. >> an amazing sort of line although people are increasingly watching the bonds as well which is in recent day, has not been encouraging for the longs wen we come back, the first trading day of august. seasonally, one of the weaker ones of the year we're going to talk about what that may mean in a year such as

this when "squawk alley" comes back you always pay your insurance on time.

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how much time they spend on each of those platforms this is in an effort to curb growi ining concern over tech addiction. some incollide clooud daily and weekly time spent and notifications on when a user has hit a limit for the day. of course, this as shares of facebook continue to endure down fractionally right now falling nearly 20% in past five days after the kis pointing earnings after yesterday, the company said they suspended three dozen pages tried to misinformation campaigns that may or may not have been connected to russia. >> one thing we didn't mention is that executives of facebook, twitter and alphabet will testify in front of a senate intel september 5th. this was announced by mark warner democratic vice chairman >> facebook trying travel the high road here in a couple of different fronts with this time, pushing against this facebook is bad for you theme which is out there

i wonder if they realize it won't really have that much aeskt on engagement. even if you know how much you're using, how much wiare you goingo restrict yourself. >> if you're using a word like addiction, do people really care or is this a bigger, broader discussion versus users. >> true. looking at share of buy new today. earnings were strong last night then we got these reports google working on a censored version of its search engine that would compete with the core product and has shares down more than 7% i haven't seen it backed up anywhere else. but very interesting i thought they want to be prepared to roll out this kind of product in china if things turn whether political oi or through trade relationships, so it's not necessarily like a plan to launch this and go back on their old policy of not participating.

>> you've got the nasdaq outper foming looks like it's the only major average in the green now after the dow ticked low e >> there's apple below 200 off the session highs. obviously a nice 5% gain watch for tesla tonight and of course the fed and just about two hour, over to the judge and the half >> top trade, race to a trillion apple moouing towards that milestone after the company's earnings beat expectations, but is the report enough to refire the fang trade here to debate, we begin apple today surging to a new record high pete, to you for obvious reasons. you told us to watch this service business from this company. for as long as i can remember and red hot. >> i tell you what, i think people now, that efb's talking about the services and i brought this up time and time again,