i am interested in one particular demand here it is cases of harassment and discrimination critics say when you force a woman or man to go into mandatory a by strags rbitratios them no recourse >> yes >> thanks for watching power lunch. closing bell is next >> i am brian tonight. >> here is where we stand as we begin the final hour of trade. the dow is up 248 points at session highs. we are not too far off a nice 208 rallying across the board through the s & p 500.

nasdaq has a 1.6% pop. >> best three day period it is a huge day today we have a big two hours for you. we do not say that likely. apple's earnings are on deck coming out after the bell joining us with a preview of what you need to watch for the world's biggest company. we have the latest comments from the president on trade with china. >> then there's the deal book conference during this show we'll hear from seven of snap chat and peter teal it's all coming up right here on the closing bell we'll take you there as soon as we hear from the big names josh, over to you. what do we expect? >> here is what we are going to

watch for. earnings per share of $2.78 on revenue of $61.6 billion it would represent jumps of 34% and 17%. in terms of big themes investors will watch out for one certainly will be the kind of demand trends we are seeing it is for the 10s and 10sm-- xss max. q 1 tells us is confidence apple has in the phones. it's not just hardware there is momentum too. the street thinks that business jumped about 20%, more than $10 billion in the quarter we know in the month of october tech did take it on the chip apple held up relatively well. we'll see if that continues after the close today.

back to you. >> all right and you have a busy night ahead. even it may be trumped by the president. we have more on another reason that stocks ma i be continuing to move higher both leaders making positive but slightly vague in terms of trade. here is the president's tweet from earlier today that sort of got feverything rolling today we talked about many subjects with a heavy emphasis on trade those discussions are moving along nicely with meetings being discovered also had a good discussion on north korea. soon after that were comments also positive in nature about

the relationship but a little bit vague here saying he hopes china and the u.s. can promote a healthy relationship he is willing to meet with the president. the nature of the u.s. china trade relationship is mutually ben official he said they wish to expand cooperation so the president of china suggesting that there is some economic pain here from this trade dispute between the two countries. i asked him about that this afternoon, whether or not there had been pained the global economy and he wouldn't go there. he said he didn't want to agree or disagree with the president of china he said that the president of the united states could remove those tariffs if they come to a deal if the president agrees is

favorable to the united states the specifics of that deal, that's the 64 trillion question. we don't know what kind of a deal here both sides would agree to >> we saw an instant reaction in the markets. i was sitting onset when this happened you have to look at caterpillar to see that spike up what's your sense of how much the market melt down factored in here to the president's tweet and reaching out to him. >> i think the president has focused on this trade relationship he is aware. he tweets about it when he likes the news he is not so eager to tweet on the down days. the president is focused on a longer term game than the sort of quarterly or monthly or daily stock market results this is a president who feels in his gut very strongly that the trade relationship is imbalanced and he needs to do something to fix it long term and he is willing to tolerate stock market pain in order to do that

he is focusing on negotiations we'll see what happens in addition to china what other factors could impact the market we have a look at thebiggest upcoming events. >> all right how ability the fact that we are entering a seasonally strong time for markets overall it turns out for the s&p the month of april is by a smidge the best month of the year it is on average up about 1.5% that's a little bit higher than it was in november and the 1.4% that it is in december so between these two months we

have pretty decent tail winds in front of us. for the events we are talking about, let's weave in some if you take a look at some of the biggest drivers it will be number one the jobs report tomorrow beyond the headline numbers are we making more money average hourly earnings have been stuck in this rut here. can those things trend higher? another thing to watch here is overall earnings picture for the s & p 500. right now 70% of companies have reported that the blended earnings growth, if everything goes as expected will produce earnings growth of around 26% i

is around 37% for gop control of both so whether it has a market impact or not it could be something to watch as well one thing to finish off with is overall volatility right now around 20 for that right there >> great work. joining us now ton closing bell on this busy thursday is eric.

she chief investment strategist. we have rick there all right. i know the trade and trump tweet is getting all of the attention. >> so anything will send i the market off >> the market rose the last two days without a tweet we are up less than we were. let's talk act what probably moved the market that is bond yields. you call it a flash jump in yields 15% gain it settled down. how much is what we are seeing this is back to almost 3.08. the market was under pressure. the market is starting to focus.

it wants to focus on midterm election and fundamentals. it is also a seasonally strong market i also think the fact that we were so oversold and the action that we saw in october was so volatile that the market is out there and there's plenty of people with money to buy >> related to the lower bond yields we are seeing a sharply weaker dollar today. what levels are you watching >> i think the dollar index looks good there will always be set backs i think the it is almost -- now we are about a quarter percent above 96 my interpretation, that's most likely why you're seeing a little bit of a back up in downsides. there's a lot riding on this

i know many say inflationary pressures seem to be moderating even though the labor market and what was 49 years. i disagree i think any given first friday of the month whether it is wages, hours worked that were very close to making everybody a bit nervous if things snug up a bit. i think that has big implications for possibly 2019 fed policy i always urge everyone to pay very close attention to those average hourly earnings especially year over year numbers. i think they will be very significant and how it shouldn't rebound tomorrow >> play a game i want you to fill in the blank on this statement. the most important factor continuing to move higher is what >> i think things remaining

roughly the same we viewed this as a correction that's likely to bounce back i think it's lasting longer than the prior corrections we have seen the market is beginning to understand recession nar risks in 2020 are rising i think in the short term it wants trade tension not to show meaningful impact on a global basis. the longer run as we move into 2019 we think the market will continually increasingly looking at recession nar risks building a lot having to do with low unemployment rate and potentially the pressures it brings with the shape of the yield curve for markets in general. >> so earnings continue to be a big theme here there is also a debate going about how big of a deal for the overall market it is especially against this backdrop it is the overall indexes. >> i think it will be big

because of what we have gone through, what happened to tech and what happened to the broader market it is one of those things that changes the world. i think it will help calm the broader market down. >> we do appreciate it thank you very much. all right. coming up earnings, optimism and president sending the market higher the ceo of a bank more exposed than probably any other in the world. the u.s.a. group joining us to explain how trade tensions are impacting american companies plus snap has lost half of values so far this year. up next we take the stage for a rare interview at the deal book

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tweeting just had a long and very good conversation with president of china we talked with a heavy emphasis on trade they moving along nicely also had a good discussion on north korea. will these talks be enough to ease some of the anxiety of u.s. companies and other countries? joining us is pat burke. welcome. >> thanks. >> you have done this client survey how high is the anxiety level? >> it is a pretty modest of anxiety is the way i would describe what we did is surveyed over 8,000 companies, 34 gircdiffere markets. it is all the way down to small business the thing i would say is roughly

78% of companies all throughout the world are optimistic they will continue to grow trade. it has a very very strong under pinning to it. what's the reason for it the primary reason is economic conditions are so good everywhere in the world. that leads to strong consumption. so that's great demand for products and goods that they sell secondly you have technology that has become very significant in trade business not just from a efficiency point of view but also the way they used it to sell it has become quite a bit less friction you get to trade friction. the real thing is various tariffs, the trade war that we have those will have an impact. right now i would suggest that the outlook is very positive >> your name stands for the banking corporation from back in the day. no bank is more exposed to global trade than you have

since this trade war, trade fight has begun how much has your business changed if at all? >> i would tell you that our business continues to grow in double digits. it is between u.s. and china our business is actually growing. a lot of that is because we continue to expand our own business in the united states and try to grow it we are making more connections very similar to our story in china. it is the largest foreign bank in china we continue to invest and grow init >> i guess the way if you think about continuing trade friction companies will learn to adjust

they will seek different ways to trade. we are seeing in almost every region flft wor region of the world people will try to comment on intraregional trade. it actually is quite helpful for the three countries and we expect we'll get a lot more volume between the three in china they will likely do more trade with china as china in the u.s. don't actually reach a resolution companies are pretty in depth. they figure out ways to find out what they do in a different place. >> ceo of the united states we appreciate you joining us. thank you very much. >> thank you both. >> thank you 40 minutes to go before the closing bell take a look. dow is up 210 points

s and p 500 up starting november on an optimistic beat. we are counting you down to the most hotly anticipated earnings results yet. numbers would determine the fate of the whole tech trade. we have full team coverage for you coming up. >> another big interview as well box's krceo will join us and ho he will turn that stock around a busy closing bell back right after this [ digital voice ] i used to be one of the world's most feared hackers.

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and bawelcome back a big day all around >> yeah. better earnings. strong numbers apple's quarterly earnings might help investors predict how the stock will trade through the rest of this year. he picked up a pattern in the way that apple stock trades and he joins us to tell us what he has found. always good to check in with you. tell us what you're seeing >> greetings >> in looking at the last

several quarter's behavior it is the month. we are there after that inflection point they need to see the typical gains for the quarter. so far it is following that pattern. th it started falling and we sifrp sized a quarterly pattern. we are right at the earnings report and unless apple does something wildly different than it has been doing we should see a positive reaction and positive share price for the next month or so. >> i think the only thing you might find confusing is apple is on a fiscal quarterly system it is the end of the fiscal fourth quarter that's why the second calendar quarter is the better quarter.

that's where the earnings appear >> the second month of each calendar quarter is when it happens. yes. you have to be really specific and specify which kind of quarter you're talking about i'm looking at it on a calendar quarter basis. most of apple's gains that it makes at any time happen in the second month of every calendar quarter. november is the second month of the current calendar quarter i'm expecting the next surge >> this earnings season has been funky in the way that stocks have reacted to what has largely been better earnings have you what makes the market reward a certain stock i'm trying to think of specific examples is it the set up in what is it that investors are reacting to >> you're onto a great point amazon and google both got hurt even though they had great

earnings facebook, not because of anything that the company did but facebook marked a turning point in the way that they react to what the newsis people are ready look forward and ready to look into the fourth quarter -- into the third year when stocks generally do well they weren't at that point when other companies were reporting now facebook is saying people are now ready to have a positive reaction to good news. >> always excellent. market report newsletter thank you very much. see you soon all right. snap ceo taking the stage at the

deal book conference why don't we listen in for a minute >> so i think the thing that he's really right to point out in my view is that this ability for, you know, any random person in the world to have their own channel to reach millions of people is totally unprecedented. it is actually unprecedented not only technically speaking but really from a regulatory and legal point of view. we have always thought about broadcasting really differently than we thought about communication. there are two different frameworks they said hey, if you want to have ra phone call you have an expectation of privacy you can say wild and outrageous things but that's sort of your business if you want to broadcast the same outrageous or maybe not enti

entirely accurate ideas you're held to a different standard this is on television quite a bit, they are held to a different standard where you can and can't say certain things, can't show certain things. i think this behavior has been enabled technically and it hasn't caught up to that reality. >> are you suggesting that we need more regulation in your world? >> i think what i'm suggesting is we could learn a lot from what we have thought about broadcasting in the past i think historically it is in terms of what you say. >> ultimately that is a form of regulation if you were in the trump

administration and you deal with this what did you do what was the answer? >> i think the answer comes down to identifying and labeling this >> it is the gray area you can understand what one on one communication is let's say it has extreme and not so at rat views on the world if he wants to reach 100,000 is that okay? where do we draw the lines >> that's also the question it's the idea was supposed to demock size ideas we are -- everyone will have a voice they didn't have they would argue that the me too movement hadn't have happened

without social media there is a police diskous and that's a bad thing how should it work >> i think there are many movements that have gotten a lot of traction. >> the response to a lot of inequality wouldn't be possible without social media i think a lot of those are enabled by friends talking to friends, encouraging friends to come out and make a difference i think one of the more dangerous things i have seen is this idea that using your voice will make a big difference that's half of it. the other half is to implement that change. they aren't just using this and using it to make a difference in the world. >> we'll talk about why? what do you thinkabout the

kinds of things you see on instagram and twitter in this realm? >> i think the challenge really comes down to the way really that social networks evolved into social media. social networks came into being because the idea of connecting with people was a new idea you went to college and went off into the world and lived your life and lost touch with people. social networks provided that value. smart phones got more and more popular. it that value of reconnecting you with friends wasn't as valuable you talked to them on the phone all day, text messaged,

etcetera as that value started to decay and people stopped using social net wos networks for an update on r about their family they did it because the audience was too big and made them feel uncomfortable. over time because it because vacuum of personal content and people trying to express themselves, that was filled with media. w >> why has this not taken place yet? >> maybe you're policing it in some way the issues that seem to be confronting facebook or twitter haven't yet jumped to your world am i wrong >> i think it would be wrong to treat these problems as some sort of virus or disease these are impacting platforms because they created an environment where that sort of

behavior thrives there is a higher propensity because it has more engagement so i think you ended up with systems that incentivize negative behavior. if you look at snap and highway we really thought about content what we identified is while this shift was really really powerful and the idea of friend organizing content for you is powerful it is the first time it was personalized what we found is that with the rise in machine learning computers are better at personalizing content for you than your friends. if you -- for example i think someone that has done this really well is netflix >> all right i want to talk about snap and the snap business for a moment it was on a rise but i think

it's fair to say today it is challenged there were times where facebook was trying to buy you and google try today buy you for $4 billion is that true >> no excellent. >> so must be true can you speak to that? >> it might be better to ask him. i don't know >> i'll let you off there for a second let's talk about this. snap's revenues were better recently than wall street had been hoping for. the losses, you know, were lower than expected. the data on user -- on the user base is shrinking. the question is what do you think has happened is that a product challenge, a marketing problem?

a generational problem what do you think happened in terms of when you look at that number >> really as we look at growth going forward we think about it in two ways. it is important to understand our core is the 13 to 34 audience in north america and europe if we want today continue growing the service we had to develop outside of north america and europe are we have to continue ageing up our user base, you know, to be 34 plus etcetera we are thinking about the problems really differently. one of the things is android it has within a difficult platform to develop for. we thought we were seeing it inkrementally. we decided to completely rebuild from from ground up. we are seeing 6 or 7 years to rebuild the product in a way so

we can perform for users that don't have the top end android phones chls. >> -- phones >> how much of is it about getting all of us to use snap in a way that maybe some people here don't >> i think that's a really big part of it i think the first thing we have to do is understand the power of visual communication i think a lot of people when they they about the most famous writers in the world it can create an image in your mind that's what makes them so good at what we do. we have to explain is it actually -- you don't have to be the best writer in the world to create an image in your friend's mind you can share who you're hanging out with i think that power is something that's just barely getting started. >> and you made a excellent recently -- >> you have been listen to snap

ceo. everything from regulation in the industry to business models, some of the shortcomings it has had especially with the user growth declining >> it has been an absolute disaster >> absolutely. it is up 9% after he sort of hinted he asked did google try to buy you? he punted it i don't know maybe he'll come back later. >> exactly >> still to come we'll bring you back to the deal book conference this coming on a day when hundreds and thousands probably of his employees around the world are all walking out to protest allegations and incidents of sexual misconduct that interview coming up later on this hour it looks like we have about 22 minutes to go into the session. dow is going strong here up 221 near session highs almost up a full percentage

point. our reporters are monitoring the biggest market of theday for you. >> all down double digit percentage points. today they are all creaming higher take a look at some of these big moves. it is helping to really lift the russe russell 2000 they had stumbled on trial results. they are coming back strong today. big moves and some of those are down in bare market territory. back to you. >> all right thank you very much. bob is watching.

what is happening right here at the new york stock exchange? >> the important thing is i would love to say new months new money. it was president trump's tweet it was a little after 10:00. it was really the big mover of the market let me show you. good earnings and a notable buy back it moved after that. we went up about 3 or 4% after 10:00. caterpillar also same situation. it is moving from 121 to 124 very quickly right after 10:00 eastern time chinese stocks really moved. earnings tomorrow we went from 138 to 151 in about an hour and a half finally the one group left out today, oil, lowest level since prichlt april. all of the exploration production companies all down 2, 3 and even 4%.

>> all right bob, special day for you and all of you here as we celebrate 25 years on c flrnbc. it is a big day. there are not a lot of people out there. >> it has ban great privilege sit a great privilege. i appreciate it. >> thank you thanks very much >> kenny and i >> no. i can't tell it on television. thanks everybody appreciate it. >> thank you all >> thank you [ applause ] >> thank you everybody thank you. >> thank you >> they are giving bob a big hand far reason. >> the people behind me every day who i consult with all

around come over mere and let me show you the dean of wall street, the man who every day for 20 years has been my friend, a long long time ago when i had no friends on the floor in 1997 it went around and said that guy, you trust them you can talk to them we have been friends ever since. it is all the many years of wisdom >> a great tribute you many fans. there are lots of good men and women you have been an advocate. it is not just a building. it is people it is their mortgage, their kids school you have been an advocate for

it you have been a supporter of them >> there are two reasons i have been a supporter there may not be as much volume down here. don't kid yourself these people behind here are often the biggest traders in their own stocks when i'm not sure if something is going on i will say do you have any idea and they are very much on top there are adults watching the stock market and this whole idea is not the case. there really are adults still in charge >> you needed an adult in charge of your collection back then >> you look kpalktly the same. >> bill tegas cousin

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shares of box up today box ceo, welcome back. nice to see you. >> thank you it is hard to follow bob's 25th. >> happy 25th birthday >> i'm doing better than that. my gray hair is equal to his >> how does it change the landscape? >> it is a leader in technology which is the future of computing in any real i.t. environment ibm has one of the world's best companies in the space and multi-cloud space. i think it puts them in an incredible position be able to run their data centers and run their operations whether it is in the cloud or on premises. it puts ibm in a great position.

>> we won a root for their success. we partnered with majority of technology companies in the industry our job is to integrate with all of the major technologies. >> a 12% premium over the highest ever price did that deal reprice the space? >> certainly if you look at the right thing things have done a little bit better. it is as we have seen. don't need to call it out for any of our viewers i think what that deal showed was that the underlying value of some of these significant players is in many cases worth a lot too. so that probably did help lift things up a bit. i think companies like sales force and service now hopefully

we are trying to build industry defining companies >> and your stock got caught up a little bit >> i would say that, yeah. >> i know you can't speak to fundamentals but is there justification in some of these tech punishment we have seen lately in the terms of the business slowdown or lack of spending >> certainly we are not getting anything on our quarter. from a macro standpoint we are not seeing much in the way of negative dynamics. usually you sort of get inflated evaluations. it tends to come down as investors look at this >> i mean it's hard because the industry has been knocked by this you're going to become a commodity. you have heard this.

make the case of why -- what did the red hat but the premium was so fat how could we not? what should that teach us about cloud computing we didn't understand before? >> i think the -- i think in general when you think about enterprize i.t. so you can be a company or product that becomes -- >> companies are spending a lot of money on your stuff >> and it's sticky and in the technology being built out if we continue to innovate we will become a core part of how the future of all enterprizes operate. they look pretty good when you see how powerful these platforms are. >> did you see that silicon valley, i think he acquitted it to a ponzy scheme.

>> yes that allowed for generous markups. you get where he is going with that >> yeah. i think it's true. hard to know the kind of underlying dynamics but certainly a provocative thought. they tend to be integral for growing companies in the earlier stage of the market. >> in defense of silicon valley. you know, be traded as the public organization with the scrutiny and openness that offers >>. >> you know, google walkouts today, sexual harassment allegations and scandals, do you think it is likely to have any

impact on google in the valley >> i think it is a continuation of a trend which is a really important conversation and change in tone of how companies have to think about diversity and inclusion and building and treating bad actors in the right way and making sure that you build an organization that is as healthy as possible and as diverse and inclusive as po possible it is as it related to our organizations. >> where would you be today? how would you be handling this >> you want to respond to the conversation and make sure that you're setting a tone from the top of how important these voices are to the organization, how you'll think about creating a healthy environment and culture. again, any of these companies have way for work to do. >> always good to get your thoughts >> thank you

>> he is speaking right now with us at the deal book conference let's listen in. >> as so many people here know there has been a walkout you look on your phone it is trending on twitter. but just speak to it there was -- this came originally from a news report that exposed him of this stuff and you wrote a memo that elaborated and said there were 48 others where this experience had taken place. you hadn't paid them but just speak to how you feel about it right this second when you see all of these headlines, what are you thinking >> obviously it has been a difficult time we all feel it i feel it too. you know, we set a very very

high bar we clearly didn't live up to our expectations, which is why we felt it was important to express our support for plays today to be very clear these incidents are from a few years ago it has been very important to me personally meaningful to me we draw a hard line on inappropriate behavior we have done so for the last few years and last couple of years, as you mentioned we have taken hard action. 48 people terminated, 30 senior managers none of them involved any pay back you know, moments like this show we didn't always get it right. we are committed to doing

better we are listening to employees. that's partly why today is important and, you know, i think there areconcrete steps coming out in terms of what we could do better for me i want to knowledge the woman who steps up and does this it shows extraordinary courage we want to figure out how to support them better. it is a process. i'm committed to doing better. i want to make sure google sets the bar for something like this. >> do you think there is a systemic problem >> sexual harassment, i think google is the large company. we have had our share of issues. i think i can say we are definitely doing our best and, you know, i'm sure most people will tell you we have drawn a very very hard line. it is darcifferent place >> the rules perhaps were a

little looser than they could and should have been >> i think two things. there was definitely not enough representation i think it is a common problem in tech and, you know, i think it is causal you're not having enough representation as part of the issue. you know, i would think there needs to be a deeper look at whether there was something more systemic that lead to things like this. >> so in the last couple of days what are you thinking the mistake was that lead to today was it something that could have been stopped earlier >> you know, i mean i think as a company internally we have evolved. >> so how much do you need to tell the public then about these 48 situations and how much can you tell the public about them >> look, i mean these are all cases where we have taken strong

actions. we publish to the company. one of the good feed backs we have gotten over the past couple of days is can you break it owl debtor some will give more transparency so they are committed to doing so >> so here is the complicated part what do you think the policy of a company like google should be when there is somebody being terminated for sexual harassment or something of the like in terms of whether there toub con

fi den shallty or paying the issue is people leave without people knowing what really happened and end up in other companies where perhaps some of these things could happen again >> we ultimately don't pay people that's what it shows i think it's a good question and complicated question i think some of it needs to be -- you know, due process and things society needs to deal with i think it's something over time >> your job i think originally you were like a product guy. we would talk about comb and techy nerdy stuff. your role has become as much about that as about policy.

>> do you feel prepared for this how does the public think about that >> that's a good question. woe are fortunate to have several billion users every day. i spaend lot of time talking about how to build products which are more helpful to people ondabasis. it takes a lot of my time. i think technology impacts it and at times like this, you know, we are reflective and dbot decisions we make.

>> you have been listening to google responding there for the first time about some of the walk outs saying we need to be better there goes the closing bell here on wall street. welcome everyone to the closing bell mike is here at cnbc let's take a look at how we are finishing up the day 1% gain. session high is up 265 s and p closing higher by 1% materials were the biggest gainers up 3% thanks in part to

dupont >> take ago look at apple's earnings and how it closed today on the session it has been a reg relatively strong out performer and pretty much all yearlong. it closed higher on the day. the dow can be an important tell for the tech sector and the broader market. joining us to talk about the market today as we await some of those earnings reports it would be steve coming off the floor in just a moment. dupon was the biggest gainer

as far as the s and p 500 it was the winner all state was the decliner i don't think there has been anything definitive. lots of reasons to pull back it didn't do it. this is the third day in a row it only happened three times since 2010 each time a pretty good trading low. >> it's amazing how well history some times can work. follow me here the last two daysover october are the best last two days of any month and the first two of

november are the best first two days of any month. combine them, last two of october and first two in november they are traditionally very good. we are seeing history repeat itself >> we are. on the other said we said october is the best month of the year there is nobody trade that doesn't know that. it doesn't -- i don't think it takes away from what's going on right here >> it is -- >> it is a spectacular stat. >> yeah. the bigger thing is if it didn't hold true, if we went straight down these three or four days it would be an oh no moment

>> so i saw myself on the screen i was able to jump in. bob came in with a bunch of things that didn't happen. everyone thinks these things are going to happen. iwm, the best month is november five years backward looking. >> that's funny because it's the small cap stocks they are pretty much not connected at all to the trade story. >> we have an earnings report and we'll pick up the conversation >> i have to alert you ceo will be leaving cesars. his contract goes through february they have lagged competitors in

every measurable metric. they did have a tough quarter. all of the casinos in las vegas said there was soft business in las vegas. they are expecting more business to pick up for the fourth quarter. again, the big news coming through here is mark is leaving the company and his contract extends through february they are on the search for a new ceo. >> big jump there not including las vegas. we'll get more waiting on cvs and starbucks, waiting on apple. steve, small caps. let's get back to that

they have done very well >> they have been at the epicenter of the fear of tariffs, fear of global slow downs. when it becomes infectious to us everythinggoes down. >> is it part of any industrial? >> yes it doesn't mean the market is saying we are moving in a methodical way it says there's another excuse

>> yes >> and i think small caps are vulnerable they don't have the flexibility in their supply chains like some of the mega caps company so there's an argument to be made there that there's a dependence but also to mike's point they have been the most vulnerable >> we are primed for those good headlines. we have been so beaten down. that is the catalyst to the upside if you get anything -- it doesn't have to be anything solid. >> maybe had a couple of starbucks. >> dial back starbucks earnings are out

give us a starbucks. >> hey there >> it is looking like a strong quarter. eps coming in at 62 cents adjusted revenues at $6.30 billion. analysts were looking for $2.6 billion >> in the americas for the quarter 4% increase. china, asia, pacific is supposed to be unchanged. they also have 15.3 active rewards members. right now it is up 15% year over year they also opened up 604 net new stores >> very good thank you very much. strong growth not just in china but also in the u.s. >> it is impressively big pop.

i would have to say it has mostly been sideways maybe it was geared to be open to good news i think people are willing to embrace the story. it is a story that seemed a little bit stuck for a while >> it is not just the numbers which look pretty good it is the first quarter without former ceo in about 20 years how do the numbers look? >> earnings beating estimates coming in at $1.24 revenues beating estimates by just a hair. it is versus the 2.4 billion that analysts anticipated. shares trading up nearly 1%. there is a quote in this release here i know he is president and active chief executive officer we turned in the best third quarter ever it is revenue growth in the high single digits. he goes on the say up ahead 2019

looks to be another outstanding year they say strong gains and continued growth and streaming services he reiterates they are combine today reach 8 million subscribers. back over to you >> all right thank you. the stock moving higher after hours. the big focus will be on the conference call. >> absolutely. >> it is a pretty slow and steady business, cbs so i don't think there is -- obviously about anything strategic and political advertising. >> i can tell you the numbers right now. it did move a lot. local media which is all of those ads or how bad the other guy is, that rose 397 million to 434. a huge drop in the cape network. we talk about cord cutters they went from $840 million this

quarter last year to 569 million this quarter >> yeah, it's obviously a pressure point >> pretty quick pop. we have been lost with the netflix stories, this is a content play for the last couple of days this thing rallied about 8% into the print here >> stock is down about 6% after missing estimates by 3 cents they did beat revenues

it is 6.5% it has been a downward trend back to you guys >> thank you very much this is just going to increase the calls for this company to do a deal everybody has been waiting for it to happen they try today go off unilever they don't get the top line growth especially different environment with the commodities. you'll have investors. this stock is the only one that has done worse than campbell's soup >> of course you did see that actually >> that wasn't pretty either >> you have a real separation between food, packaged food and oir -- >> i thought you had -- >> and that's true >> kiln you, is flat the new good in food >> no. there is growth happening in food it depend on the company's strategies if you look at some of these other companies you have seen

growth and those that are able to pass on the price increases has been the key who is passing it on successfully and who has got a good turn around plan in place >> and who believes the brand? everybody goes for healthier stuff. people can't get through this. they think of that can that's not very healthy as far as a stigma they are trying to see which one survives and which one doesn't >> part of that portfolio and you wonder about the model, the

private equity. >> sure. >> it's not across the board >> starbucks you have been buying and clearly drinking helping out. starbucks stock is up 7% >> starbucks has add a little bit of a grind higher. there was the idea that dunkin, i always believe it is you buy one and sell the other or vice versa. i feel like starbucks is getting its groove back. >> i saw that. >> being there >> nobody else picked up on that >> i was doing you a favor and ignoring the whole thing >> both were much better than expected >> yeah. >> no. that's exactly >> usually you have to worry about one or the other >> all right thank you. >> thank you, guys

up next we'll get reaction from a cvs shareholder on those earnings why he thinks the stock may be getting a little bit expensive here >> and we are minutes away from apple's earnings we'll have instant analysis and what they mean forhent t eire tech sector coming up. 15 minutes to apple earnings

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stock is volatile right now after hours. down 5%. it was down as much as 10% a few minutes ago. this is down 0.7%. it was looking for a 1.1% rise that is what the reaction is here even though eps and revenues both beat street estimates. they opened up nine new locations. it was down here in the negative back to you. >> thank you >> super expensive stocks. nobody is really clear if the model scales that way. i think that's why it jumps

around a lot all right. let's quickly recap. 18 minutes into the 4:00 eastern time hour. cbs, starbucks, shake shack all beat on the top and bottom lines. cesars beating on eps but missing estimates also announcing their ceo is going to be leading the company it was going on the disaster missing on earnings and revenue. see how those things shake out the big dog still to come apple earnings are due out in a couple of minutes we'll see how much they may be helping the top and bottom line. $1,100 phones waiting on apple $1,100 phones waiting on apple ten minutes to who can help me build a complete plan. brian, my certified financial planner™ professional, we are back right after this

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all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies lead with digital. larry is here, managing director of ljh. your take on the quarter >> i think there were two questions that had to be answered in the quarter, brian one was is there life after les and was the company able to prosper in an environment that is very benign for advertising in both questions the answer is

i think yes >> it's hard to see a dynamic upside it looks fairly problematic. it will worry some people. how do you make money? i think the end game here eventually is for this company to be combined with viacom i think at that point is company gets old i am encouraged that apple is

playing around with iheart which is a big factor in the radio business the convergence is virtually inevitable they both eat by collecting ad dollars. this company is very very good in the marketing area collecting ad dollars so i don't know i would be rushing in to buy the stock. it looks like a good hold. two to three years later it would be a significantly higher price. >> it will be interesting to see who gets the ceo job as well thank you for your initial take. we have another earnings alert for you on ww, formally known as weight watchers. >> down about 10% after earnings after missing on the top and bottom line. this stock down around 35% they are down about 11% right now. missing by 5 cents on the earnings and missing by about $13 million on the revenues.

back to you. >> all right 11% move lower thank you. it is the final count down apple earnings are out next. we have a panel of analysts ready to break down every angle ready to break down every angle of the resultsp in. cme group can help you navigate risks and capture opportunities. we'll be right back. ♪ whai tell clients, etfs can follow an index, but which ones target your goals? it's not about quantity. it's about quality. no trendy stuff. i want etfs backed by research. is it built for the long-term?

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ross is here, a shareholder. courtney is here from pain capital management you know, can they guide to that sort of number and asp >> the average selling prices which has been the big driver. >> this is all about iphone into december we saw where this was

disappointing. >> it could be little different to read. >> china is one of the big issues not necessarily with the trade wars but with the price of china's currency iphones are more expensive in dmien. we have to see how it will effect the bottom line >> yes >> what will you be watching for? >> china you know, this is a big sort of unknown. >> what do you think it has been so strong? >> it sort of dropped the ball in terms of earnings here. you have a specific product

cycle that is yunique more and more they start to give that rerating on services is key. >> it consolidates into apple here >> apple's performance did close the day higher it was a relative outperformer most of technology got -- it is the second best in the dow jones this year. it is up more than 25% so there's a lot riding on this quarter and the app and the holiday forecast am earnings are up tell us about that >> the streak was at $2.78 this is at 47.35 million iphone selling frg, that comes

in at $793 it was at $751 ipad shipments 9.7 million services up 17% to 10 billion although apple is saying here exclude this one time favorable adjustment from a year ago period it was an increase of 27%. other products, remember that includes the watch up 31% to $4.2 billion finally for that guidance apple saying 89 to 93 billion. it was at 92.9 billion gross margins calling between 38 and 38.5%. i did have a chance to catch up with tim cook. let me bring use those comments. the average selling price of $793 if you look at the top end of our iphone we grew double digit yunls. it gets compounded as well it was a huge quarter for us

the xs and xs max became available. telling investors there are realities they say he should be aware of the second thing is a tune of $7 billion and the third is this unprecedented number that we have got it will take some time to get into supply demand balance finally on that faster growing services business cook telling us we remain double to around $50 billion. we had records across the board from the app store to apple music to apple pay to apple care we have over 330 million subscriptions between our services and third party it is up 50% year over year. back to you. >> thank you very much all right. first to you we had average selling price $7.93. it is a little above the

estimate 46.9 iphones sold. are you happy with that? it seems a little below consensus. >> yeah. >> a little disappointed with iphone sales >> yeah. a little disappointed. the drum roll in terms of guidance there were words they would guide below the street asp is the key here. >> i'm looking at the guidance too. is that disappointing? >> it is light on revenue. we have to tuesday out of it is how much of is it apple conservatism the revenue forecast is there. >> it is a $4 billion range though it is 89 to 93 billion >> yeah. >> okay. good, bad? it missed a little bit of what dan's estimates were >> the numbers are coming in strong here. we are living a lot here that have come in so much stronger and they are trading a lot

lower. we'll see the opposite here with apple. i think we'll see the stock go further. >> further or higher >> it is right now after hours i think we'll see some of that >> what stands out to you? >> services. it is my favorite line item. it is the most stable, most predictable. if this thing worked i would put it up here like this we are looking at paper now. i think the 70% growth rate is about what they were looking for. i think they will be on pace to beat their projection for what they want to get to in 2020. it will be sort of the most important line item in the next 12 to 18 months in terms of how they can extract in terms of iphone sales they need to get more dollars out of every user. it is a pretty big network >> i wonder though, again, i'll ask you to do this we have gone to this world where we are seeing people upgrade

less as phones get more expensive. average selling prices at $793 yet the number of iphones sold a little less. are we getting into this maybe permanent cycle of you're going to pay more but you're not going to upgrade as much that's not good for apple. they want transitions. >> they want transitions i think the average selling price is telling i think what more people are doing, they are willing to pay more a lot of them are taking advantage of the apple payment plan they are not paying all of it up front. it is a no interest loan it's sort of like if you're a stock trader these things are becoming that much more important devices to have. people are willing to shell out every month if they are that much more connected and that much more out of all of the different apps that's the direction they are heading? >> i think you have been less positive on the stock. it is moving lower 5% after

hours. you have record profit and higher average selling prices. maybe slight disappointment around guidance and iphone sales. what do you think is stock is reacting to here >> it is what we have been talking about. everything you said so far kind of tracks that it is not good they didn't release that until september. one of the biggest didn't even ship and so you're now flat with a weaker september and then you -- and passively overtly in this guidance is they are not going to match what they did in december because they already released the flag ship model it is not a disaster what i have said many times you're treading water here you're not growing your user

base you're seeing slightly down volumes year on year you talk about software growth that's great if you want to sell it to that cul-de-sac of users. >> but the stock is down >> it is not just getting us more iphone sales. they want to sell us on products outside of our fi phones >> we don't want to focus on the iphone alone right here knee jerk reaction.

>> you have to be better than that people were complacent about how it because rock solid guidance quarter. i think it makes sense right here the services thing, i think people have gotten ahead of things when it comes to based ton growth of services the problem is apple is not a company that are converting you to the services line they have an amazing, most profitable ever devised in history. that is going to have to give way to services. we don't know the perfectibility necessarily of all of that >> you to moderate some of the optimism >> and 20 times trailing >> yeah. >> and not high for --

>> not high for services it is software services company. it >> only 15% of the company right now. >> is this part of cook strategy that you roll out new phones about a week or two before the quarter ends therefore you can always say yeah, we didn't quite hiet the numbers a lot of analysts thought we would. it is only a week and a half and a lot of people simply didn't upgrade or didn't even have time to upgrade you to like the timing when they roll out the new phones. it makes it harder to dissect i would imagine. the reason they pushed it through to september is because the phone got so much more complicated to implement they needed some time i remember we covered the stock. supposed to some leading up to september. they have got to get it out now. it is kind of the last stop to get out before the big sales

over the poll day. i don't think it is the strategy at all er >> would you worry about slowing iphone sales >> i have been listening to this all. i am blown away at the sort of negativity these are amazing numbers. $800 for a phone is the average selling price and they are selling tens of millions of these a month. you know, this is a great number apple, anybody selling this stock in here is almost insane knowing that they will buy it back from you. they have so much cash and they are hitting on all cylinders it is like tim cook is the most conservative manager in the history of business. i think the real issue with apple has nothing to do with

iphone it is a mature product we have been saying this for years. it has to do with what's next. you can't keep doing hardware forever. it is working forever. they have all of the cash and services growth but what's next? i will not tell you netflix or tesla. i will tell you they should be getting into gaming and look at a company like ea which has been under pressure all my kids do is get their ipad and play games they just need to get into software somewhere >> you know, by the way, you you can play games i don't think we are being negative up here we are reacting to the market. if you a little light on the revenue side but the phone prices have gone up you just do the math it seems apple expect ts to sell fewer phones >> no. that's supply and demand the phone gets more expensive you stell a little less.

>> that's the point. >> that's a good thing they are selling $800 phones. i think it is a bunch of kind of es the real trading would be tomorrow when real traders get up and trade i would expect big institutions would think about buying the stock more than selling it >> what is your take away? >>. >> talking about where the growth is coming from i know i'm harping on the services side of the business, i see about a third of that revenue coming in is the stuff that apple itself owns

it's like apple care and icloud. the rest of it is coming from the machinery of the app store i think the next thing is to see how they will find ways to kind of grow that services where they can bundle other media things. they are investing in television programs that they are owning. i think that's going to be the next big driver for where their service is going to grow and how it will be a more stable form of revenue even as iphones are flattening or doing down >> it was indicating the move would be around 4 to 5%. it is right in there it wasn't a terribly high stakes quarter. it is not a deviation but plmay a little less optimistic it is the next two months because one month is over in the

quarter. >> i think the context is key. apple shares are up 32%. the dow is up 7 or 8% over that time period. keep that in mind as we watch shares move off session lows down around 3% or a little more. stay here. we'll continue to monitor apple's reactions to the earnings talk about whether the stock is a buy on this dip. we'll tell you what to listen for coming up. >> yeah. and founders fund set to take the stage. we'll try to listen into that. we have peter, apple, fighting about the numbers. you're watching cnbc, first in

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one. >> i laughed >> you have stuff on the china numbers. >> i'm laughing on the inside. >> the one thing i want to point out, you looking at regional sales. it was the slowest going at 16%. it is going to say something it is if the tariffs become a realissue. >> it is notable that it's the slowest growing area >> yeah. it is on ed's point. >> it came out last week it is going to be the win for china growth >> when you look at china growth this quarter it is in terms of it accelerating. it is really want what you need

to focus on. i would focus on what it will do in china >> long time fan of apple says own it, don't sell it. >> if it is about the forecast he has a point >> right you'll get a lot more color. >> and what they say in the holiday season >> what are you going to be listening for >> true trading will start tomorrow morning >> it is a good point. jim makes it a point you have to listen to the call don't you agree with the call? you to hear what tim cook has to

say. knee jerk reaction the number, what can tim cook say do you think to sort of -- i don't want to say soothe but at least calm the way people feel in the initial reaction. >> so i wouldn't invest much credibility in that. >> tim could definitely change the outlook if he is talking about either orders or other plans or announcing other products i don't think this is a disaster report i i'm just saying it has been clear for several years going now they have stagnated. i know we want to dismiss that >> it is a disaster. it is to improve the prospects

i don't think you're looking at any big long-term selloff. it comes down to more importantly what you'll see in march. once you get that you a view of what's going on with this new model. >> so we'll give you the final word on the call here. it seems to me one of the key questions has to be embedded in that forecast. is it something this we are seeing in sales that appear to be weaker or lower priced iphones? we know it has been such a major driver in this quarter >> you know, the china uncertainty and with currency you mentioned a $2 billion swing

from chinese currency. we do thi they do need to think about their future because eventually they will have to do something >> in terms of the idea. the stock is doing well. >> it is kind of pulling back a

little bit >> people are concerned about china slowing down a bit >> of course they are. >> you want to get incite. >> no doubt about it it's not as if the stock is desperately in need of rest you. >> good discussion we are out of time we appreciate all of you joining us with apple shares moving lower u.s. steel srehas moving lower we'll bring you numbers when the closing bell comes right back. place, the xfinity xfi gateway.

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what we deliver by delivering. all right. if we didn't have enough numbers already. we have a earnings alert on universal display and u.s. steel. back to eric with those. >> real quick, universal zpra. ticker oled, the stock down 24% after the ceo saying the magnitude of the second half pick up in material sales is not

shaping up to the treeing earlier forecasted moving to u.s. steel ticker xp that stock bouncing around 1 or 2 or 3% after they cut. after even though beat on top and bottom lines >> kwek chick on headlines making news after hours. starbucks surging beating analyst revenue forecasts. >> kraft heinz plunging after hours on the earnings miss the company beat the wall street revenue forecast but still trading lower 6.5% shares of countries ars are spiking after the company beat estimates. and announced the ceo will be leaving the company in february. we should mention apple shares trading lower heading into the conference call this hour. >> the big question is whether other big techs take it as an excuse to back off a bit even though there is no good read through from apple to the

others it seems like a knee yerk to say we had a great three-tai run maybe this is the excuse to step back a little bit. >> well it could be to have with the price weighted index on the dow tomorrow we find out. >> we have a report report. >> let's not forget. >> big changes with wages. >> that does it for the "closing bell" on thursday. >> "fast money" begins right now. >> "fast money" starts now live from the nasdaq market sight the over look times square . the traders on the desk here ton on fast, stocks soaring again tonight. and a top strategist has a monster rally is coming. he is here to tell you why he is so excited another big night for earnings, watching apple, starbucks, shake shack and cbs those conference calls underway right now and we have full coverage in the trench gene munster on the red eye phone. listening to tim cook. carter worth instant analysis on