just for fun we've seen got chipolte and gopro. david: we have some retail stocks in there as well but you can't take your eyes off the market. stocks getting shellacked in trading. still off the lows but major hit. major averages are negative as we head into the close. earnings of course are driving losses. weak results from united tech, ibm, verizon. just two of those stocks dragging the dow down is 20 points. melissa: gold is down for the ninth straight day. the longest losing streak in almost seven years. prices hovering near five-year lows on that. david: buckle up. it will be a very busy hour as the closing bell is sounding on wall street. [closing bell ringing] melissa: while the market waits for tomorrow here is everything you need to know now. apple, microsoft, yahoo!, biggest names in tech out with earnings in moments. david: here what we can expect with numbers to watch, fox business's charles payne, host

of "making money." jonathan hoenig capitalist pig hedge fund founder and fox news contributor. jason rot tan, lido aisle advisors. and we have lady and gentlemen. first to you. i'm calling this super tuesday. this is huge. i don't think it is an exaggeration to say at least tens of billions of dollars of investments tomorrow will be decided based on what happens in the next hour, correct? >> hundreds of billions, hundreds of billions. in fact i think what we're looking at official changing of the guard. we always talk about the new economy, new economy is right around the corner. it's here. talk about ge, ibm, united technologies those lumbering technology giants, i don't know what we have to do in the future a group of stocks representative of the new economy. that is what we're looking at tonight. the changing of the guard, gopro, facebook next week and apple tonight. old guard, they can't get get of

their own way anymore. melissa: jonathan, what are you looking at today? what is the most important one, apple. >> what matters most is not the earnings number but reaction of the market. we often see buy the rumor and sell the earning fact news. sometimes they can still fall. intel fell hard with a 52-week low. you have to watch the reaction here. just given a selloff in equity markets and selloff in markets in general, high yield, china, whether gold you mentioned down seven days in a row, i think this is very precarious time to be in risk assets in general including earnings companies. melissa: adam shapiro has our first earnings crossing. chipolte reporting second quarter results. adam give them to us. >> adjusted earnings per share is a beat, $4.45. revenue right in line. 1.2 billion. street was expecting 1.22 billion.

a few little nuggets for you, comparable restaurant sales increased, roughly, what have we got here? 4.3%. they see low to single mid digit comparable restaurant increases in 2015. shares are trades down just to let you know a little bit right now. back to you. melissa: let's bring in charles payne for reaction. joining us wunderlich securities analyst, robert harrington as well. bob, what is your reaction to that? >> i would say generally the given the fact the stock had run up 12, 13% over the last week 1/2 or so i would say there are probably more aggressive expectations than what the company just reported. same-store sales of 4.3% while they're essentially within spitting distance of street expectations, you know, i'm not sure they're good enough in order for the shares to hold the gain we've seen recently. and remember the company has a tougher comp compare, another

250 basis points coming up in the current third quarter. so that means that there is a good likelihood we could see a little bit weaker trend in the upcoming quarter. melissa: charles, i mean same-store sales that is the thing people were most focused on. they're looking 6%. 4.3 is shy of that. the stock up 12% in july. what does it tell you about this stock? >> let's not forget, i think maybe two weeks ago, "barron's" had scathing article. someone looking for 20% decline. all of sudden popular stock to short. they came up real short. stock had amazing run. but success means that you have a higher bar to clear. so i'm not necessarily surprised at the reaction getting hit sharply. shorts have started to load up on this name. i'm not sure if there is more competition but for whatever reason it is no longer untouchable. i would like to see them announce they're raising prices. i they have pricing power. they do have a cult following and this would be perfect time to implement that.

melissa: bob, we're seeing shares down 6%. what would be your question for the company on the call? >> i think, what, just raised a good point on menu pricing. i think at this point in time there is high likelihood the company talked about taking four to 6% on the beef items during the current quarter, q3. i suspect they will but i also suspect we very well could see some additional menu pricing pass through which could potentially give them a little bit of cover as we go against tougher comp. melissa: bob, this is really your specialty because i want to ask you, there are a lot of commodity prices rising higher. they have had a tough time with after viewed coast and guacamole trying to pass that along. if they have to raise prices with consumers can they do that? do they have that leverage? >> that is a really good point as i look at details of the release, food cost, cost of sales were only 33%.

that is sizable improvement from what they have been in recent quarters. in the fourth quarter last year for example, they were 30 five%. this past quarter, in the first quarter they were 33.9. so the fact that they have come down to 33.1 before the company takes additional menu pricing maybe says that maybe they don't feel as emboldened to be able to take as much menu pricing maybe they previously talked about. there is risk factor. melissa: they're always separating something out. last quarter they were talking about pork prices. charles, let me ask you, is this a company that peaked you go out on street there is chipolte everywhere. there is granted, a long line when i go in i feel they are ubiquitous at this point. >> there is room for growth. i've been in and out. i have waivered a lot recently. it is one of these names. i think they will come back. i think they can pass prices on. you talked about the lines. they can pass them on. they do have, listen, tougher

comps, more competition. they have set the bar pretty high for themselves. also they have told the world, we have no antibiotics. subway at last resort saidwell go the way of antibiotics. they continue to do what they have already done. let it come down a little bit. it has been hit before in the past. no rush to get in there but this stick will rebound. melissa: bob, what will you focus on? >> the company talks about the initiative to begin delivery of the food, delivery of chipolte food through postmate. to be fair, that could prove to be ultimately a really strong catalyst for this brand. there is no doubt traffic trends for this company have continued to be pretty solid despite the fact that yes, they're having really tough comp compares. but going forward i think when you make it more available to

more consumers they continue to crave the quality of this company's food. i think ultimately delivery will be a boom for them. melissa: we have another stock crossing. david: we do. not just another stock, it is microsoft with a market cap of $380 billion. adam shapiro what are the numbers? >> this is remember, adjusted number earnings per share. expecting earnings per share of 56 cents. they took a 7.5 billion non-cash impairment charge during the quarter but again adjusted earnings per share 62 cents on revenue of 22.2 billion, david. david: let's go immediately to charles payne. charles we've been watching, you have been watching the stock very closely. it has been up 5% over the past two weeks. investor see something going on here. do these numbers back up their positive view? >> despite the fact the initial reaction is down i think so. my number was 60 cents. this is a nice beat at least on bottom line. we'll see how they got there. might be why the knee-jerk

reaction in the downside. i have had to watch it for a long time abuse start varney. david: his retirement depends on microsoft doing well. >> are. >> according to the stuart, somebody get there in the after-market and buy some. melissa: microsoft reporting with gerri willis. >> earnings per share, against expectations of 18 cents a share. keep in mind last year at this time they did 37 cents a share. revenue, more than half, 400 million against expectations of over a billion. $1.03 billion. marisa mayer will have something to answer for. stock is down 10% for the month, 21% for the year. back to you. >> wow, gerri. thank you so much for that. let's bring in our panel for reaction on yahoo! on this one. jason rotman, are you with us? what is your reaction. >> i'm right here, thank you very much. this is not surprising at all.

the only thing that is surprising ridiculous miss on the revenue. wow, one billion expectations. 400 million actual. that is crazy. melissa: that is a disaster. >> from a personal standpoint, i will be straightforward, when i go on to yahoo!, which is rarely the front page regularly looks like "the national enquirer." going for these wild, quick bait headlines as strategy to attract viewers. that is really all they're doing. i don't see yahoo! with major future. saving grace for yahoo! they own 10 to 15% of alibaba. still alibaba is down this year. yahoo! is down 20%. yahoo! and google used to be in the same category. google has evolved. yahoo! as not. david: we've got another one. as we said they will be coming fast and furious. they are gopro, the manufacturer of those portal cameras. gopro, market cap of 8 billion compared to the other megacompanies. still potential of a lot of growth.

what are the numbers, gerri? >> beating upside. they were supposed to come in at 26 cents a share. they in 35 cents a share. 395.2 million was the expectations. this is what they do. they beat estimates every single time every quarter since they went public in june of 2014. i have to tell you stock is down in after-hours trading. it is a tough market. david: significantly down 5 1/2%. it depends. yahoo! had bad numbers report ad slight uptick. gopro with good numbers but they were down of a hours. don't go anywhere, we are just getting started. got a lot more to talk about microsoft and apple the big kahuna. melissa: apple earnings expected any minute. focus iphone sales. should they be worried they won't tell us on the numbers on the watch? the panel will way in on that one. don't go anywhere. we'll be right back.

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david: next to apple, microsoft is the big kahuna. it is about 3 and hundred billion market cap. apple is 700 billion. between one and two, there ain't much in between. bring back the panel for reaction. jonathan, charles, jason and elle. what about microsoft? are you big on microsoft? they have a lot of things in the iron but made mick taste in the recent pasts some of which is reflected in the numbers. >> it is down after-hours, david. you know what they say about old soldiers, they don't die just fade away. i put microsoft on the list. david: really. >> just like intel 52-week low. like ibm this is a stock for all intents and purposes lost its mojo. it is not apple of today. it is not google of today. despite all the new initiatives the stock has not been able to get out of the way, still not back up to the 2,000 highs. david: do you think the stock will fade away as jonathan says?

>> i wouldn't go as fade away. it does need to innovate. there are some opportunity in cloud computing. we saw acquisition it made this past quarter in that space. so i think it's trying to get up to speed. they did have a huge write-down of nokia which something they had to. david: 7 billion-dollar write-down. >> come to terms with. there hardly inknow vator that apple is but, you know, they really need to find their way. they're still a behemoth that is trudging along. david: well, jonathan is a tough critic. fade away might be a little much. we'll move on to yahoo! now. melissa: i want to show you yahoo! because the stock is getting hit pretty hard of a hours. revenue of 400 million. the street was looking for 1.03 billion. very tough quarter for them. jonathan, they introduced that metric earlier in the quarter where they were talking about the mavens mobile video, native

and social, they're mavens. like a new metric they made up to do, look over here at this shiny thing so you're not looking at all the other stuff. i don't know if it is working for them? >> well, melissa, this is a stock for a long time valued its core business at nothing. the majority of the market capping made up of it stake in alibaba. now with the chinese markets getting hit you're seeing yahoo! really follow suit, down in the after-hours. like microsoft, this is a stock, this is a company which has tried to buy its way into any other industry within the tech space and i think it is why, for no other reason than lack of leadership in product info he vision space the stock is down and likely to keep going down at least for the balance of the year. melissa: jason, people are bark at me on twitter, why should i care about yahoo! anymore? one of those stories. marisa mayer gets a lot of attention. she spent a lot of money. she tried to turn this around. there is a lot of focus and pressure on here. is this an important story to you?

>> it is absolutely, in the sense it is important for people to avoid yahoo! if they're talking about buying it. know what i mean? >> i like that. >> yeah, basically listen, yahoo! may have made all sorts of millionaires in the late 90s or whatever tech boom but those years are long gone. from a fascinating standpoint what i alluded to earlier they have not innovated. there has been all sorts of amazing innovations to come out of silicon valley, et cetera, et cetera. yahoo! stayed on search. they tried to build these communities online. it hasn't really worked. so i would avoid them. melissa: charles payne, let me get your reaction to yahoo!. what do you think about that? >> they better start spending money real quick. melissa: they tried spending money. the maven metric. >> imagine the stake in alibaba? we definitely wouldn't be talking about it, it would be a $4 stock trading on pink sheets. >> right. >> honestly, the point has been made. for all of the red carpet and

all the paparazzi and blisser and, for the new ceo the fact of the matter they haven't done anything. she is going to be now judged very harshly. you know sometimes they say companies and people shouldn't panic. they need to panic. melissa: thanks, guys. catch charles payne and his show, "making money with charles payne" every week knight 6:00 p.m. eastern, 3:00 p.m. pacific only right here on fox business. david: folks, this is just the opening act. as busy as we have had for the past 20 minutes there is a lot more to come. big kahuna apple is coming. you know they report at the half hour. we're expecting about ten minutes their report. we have to slight preview and then analysis coming straight ahead. ♪ hi.

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melissa: apple earnings are imminent. adam shapiro on floor of new york stock exchange. adam. >> the stock closed down about 1%. this will be a big report. we're expecting revenue of roughly 49-pointbillion dollars. adjusts earnings per share of $1.81. iphone sales less than third quarter. we're expected 49 to 50 million iphones to be sold. but it is apple watch. will be difficult to figure out the number, grouping it with ipod sales and apple tv and beats electronics. if other product sales are over 3 billion, that is sign they sold anywhere two to three million apple watches. david: $49 billion. just to put that in perspective. last year at this time they had 37 billion. imagine growth like that. this company is a juggernaut. melissa: absolutely. david: the number is coming right up.

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revenue in one quarter. i mean there has never been a company in history that had this kind of growth. they had 37 billion same time this year, same time last year. >> david, as you mentioned before the break, juggernaut. really is no other way to describe apple. what worries me however, for stockholders is two things. first is the popularity of this stock. essentially who is left to buy it? the growth fund have bought it. the hedge funds have bought it. even some value and dividend oriented stocks have bought it. once again we're looking for a reaction. even if it beats i happen to think the iwatch is more like the google glass. not really going to move the needle when it comes to apple but even if the stock beats, my expectation just like yahoo!, like microsoft, all the other big tech stocks we've seen today, the stock will drop. we'll see in just about a minute ace time. david: jason, one thing that is bothersome to a lot of analysts global smartphone growth is

expected to drop, i think it was up 28% in 2014. that is supposed to come down to 11% in 2015 because a lot of markets are marked out. is that a problem? >> it is not really a problem, namely for this one reason. most people still replace their phones at least once every two years. i get the idea more and more people, not my 13-year-old daughter thankfully but younger and younger people are starting with cell phones. there is some type after saturation. however, china is growing. the chinese government is stablizing their market. apple has a humongous growth potential in china. i feel like apple is buy the dip growth stock. david: phil, chinese love iphone 6. it is selling hugely. competitors always come up short. >> they do. to be honest i have the 6 plus as well. they call it a fablet, like a phone tablet.

it a beloved brand. i think people think of it as an i.t. company but it is really a design company. it is a innovation company. they set the benchmark by which all technology can eventually conforms. they're defining what is hip and what is cool. they're continuing to do so. even if mobile sales are predicted to go down, people still want latest and greatest apple phone. david: jonathan, we have $130 on apple today. that is how it ended. canter fitzgerald came out with $192 price target. do you have a price target of your own? >> david, i don't. bull markets, there are no highs in bull market and no lows in a bear market. no question apple is in a bull market but some traders have been waiting on this number today. that is what will set the tone in upcoming weeks for the apple stock. david: jason what about the apple watch? a lot of fanfare. not much talk about sales.

they are so disappointed they want won't come out with them. >> i own a apple watch. it is called an iphone. david: jazz son, i have to stop you. the numbers are here. adam on the floor of nyse with the numbers. >> earnings per share $1.58. the street was expecting $1.81. revenue 49.6 billion. street was expecting 49.3 billion. we'll crunch down to see if we get apple watch sales figures and iphone sales figures for you. david: it looks, at first blush, jonathan, the bid is coming way down off the closing price? would you agree there is room? when appeal beats certainly is big time. didn't happen big time here. >> usually don't beat but beat the whisper number. we're looking apple down 7% in the after-hours. once again watch reaction. don't even watch the number. obviously investors disappointed

with apple. likely because of its size you will see all tech stocks get hit, this afternoon asand tomorrow as well. melissa: brian cohello, analyst with "morningstar" what is your reaction. >> small beat not what investors were looking for particularly on the watch side. this is ho-hum quarter because the iphone has been out six months to this point. the real number is the watch. the numbers don't indicate there is a lot of watch sales. melissa: apple is the ultimate sandbagger. investors might say, what is the problem? they beat. they always beat. beat earnings per share eight out of past 10 quarters. what is your first question for the call, brian? >> i think my first question any sort of color we can get on the watch, whether it was constrained due to supply. we knew there was a supply

shortage when it was initially launched. any insight we can get in terms of units, asps. if we had revenue number. it is hard to break out how many unit sales versus -- melissa: speaking of unit sales, let's go to adam shapiro because he is trying to drill down on some. numbers. adam what do you see. >> iphone sales were 49.3 million. 50 million. previously quarter 61 million. third quarter always slow for iphone sales. ipad sales, 10.9 million. what is interesting when you look at revenue number and iphone sales perhaps a little less than some analysts were expecting, maybe the watch when we get the other products number might have been a big seller. we still have to get revenue number for other products which will lump the watch in. total iphone sales, 41.9 million. melissa: adam, drill down on that. brian, third quarter is

typically slowest for iphone sales. still 47.5 million. not much of a beat. kind of in the middle what people were looking for. what is your reaction to that number? >> i think it was lower. from what i saw estimates were about 49 million. it will be interesting to hear another question i have at this point is, what is the impact of china at this point? is it macroeconomic issue? is there any sort of real weakness? because china has been growth driver for the iphone at least the past six months. the other number i see right away, other products revenue of 2.6 billion. that is low. that implies there wasn't much watch revenue in the quarter that might be the other problem. melissa: brian, is that really a surprise though? hard for me to believe that is why investors are hammering this. as soon as they said, we realized they would try not to break out the watch numbers, you knew it was a bad number. so it is not particularly surprising they're kind of trying to bury it at this point. i don't walk around and see people with the watch.

i don't know that is much of a surprise. >> i would call it worse than the bad number. or i would say that, i think what happened was guidance last quarter realized it wasn't going to be a mass market hit. it wasn't going to be a breakout sort of product. but, we did get insight just now in terms of how slow of a start it is getting off to. apparently slower start than what we were expecting. i will be curious whether it is supply and demand. but a pretty weak number especially, pinning next leg of growth on the hopes of the watch. melissa: what would they say to make you feel better? what is your answer on the call that would make you feel better about the watch situation? do you want to hear it is supply or demand or they have another idea? >> i would be hoping for supply at this point. i think people look at fourth quarter forecast, they're not guiding much more of a revenue beat in q4 versus q3. that implies you're not getting a breakout watch number. i think watch certainly will be more after holiday product anyway.

i wouldn't expect sales to keep ramping up in the fall but that is how i would tend to think about it at this point. it doesn't look like there is a great outlook for the next three months for the watch either. melissa: other big area of concern, you mentioned it, what they call the greater china market which includes hong kong and taiwan. by their estimations in that quarter, last quarter in march, they saw sales grow there 71%. are you concerned about a slowdown in that area? >> i think it's a first area you could look to. because one of the big drivers over the past six months has been addition of china mobile and all these new subscribers coming on that never had the iphone before. each leg of growth for iphone there has been a new carrier added to the mix. china mobile is the biggest and probably last one. as we think about the successful growth over next year, a lot of it will still come from older china mobile customers. so, if there is sort of a macroslowdown in china is hitting apple, that could weigh on prospects for the next year.

not just even the next quarter. melissa: we haven't even mentioned ipad. we're seeing revenue breaking it out. 5.94 billion on the i -- 4.54 billion. how did your reaction to that number? >> that is better than we were expecting. ipad is getting cannibalized by larger screen i phones anyway. that is tradeoff apple is willing to make more none any all day long. make more money on iphone all day long. more profitability product. they are holding on to ipads a long time. not replacing two or three years like a phone. looks like a pc, every four or five years. might get growth or refresh cycle at some point. those two factors we weren't expecting when we were expecting exponential tablet growth couple years back. melissa: cfo making a comment that they beat internal expectations for sales of the watch. that is his comment. what do you think about that? does that make you feel better?

>> a little bit better. certainly points to a supply problem, rather than demand problem. at the same time if they knew they weren't able to build tens of millions of watches in a given quarter, certainly that would beat expectations. i guess their expectations were lower than what a lot of investors were thinking. we got a hint last quarter when they talked about poor gross margins. we may have overestimated their ability to produce tens of millions of tiny little watches. no learning curve. nobody else is really making them. melissa: brian, we want to mention we're hearing from the cfo china was quote, spectacular. what is your reaction to that? >> that is interesting. i would just say there wasn't much of a beat from consensus estimate. zoo we'll see what else kind of weighed on it. maybe currency. i'm not quite sure yet. melissa: right but immediately begs the question why, what pulled down the average? if china was so spectacular

where are we seeing weakness we didn't plan on here? we're looking at stock moving even lower in after-hours now as we're drilling down on details. you know, besides the watch what is another thing that you will be listening for on the call? i think everybody is very focused on the watch. i don't want to lose sight what else is important there? >> i think watch and iphone are two big products. again i pad and mac. mac doing relatively well. ipad doing less well. really, iphone, all the new products and services they funnel into the iphone. th $650 and up for a phone versus nice one you buy for 300 in china or even far less if you want to go with lower end model. iphone is funnel, end. funnel where it collect revenue for all other services. melissa: that is true. what do you have in the pipeline. they brought the watch. there is a lot of dispoint man about that. there will be a lot of explaining to do on the call.

thank you so much. i want to hand it over to david. david: yeah. what is interesting to note despite a beat on both top and bottom line, a small beat, but a beat nonetheless, the stock is trading down about 7% now. that is a very, if you're looking for a beaten down stock, one could argue, apple the biggest stock in the world is exactly that stock right now because it has come down 7% just in after-hours trading. we'll have to wait and see if that happens, despite beating expectations. jonathan, jason, and elle are with us. jonathan this is a general rule that happened in this reporting season that even though nine of 10 dow stocks reported beats, seven of the 10 stocks are down since those reports. so, the fact is, investors really want something more than just a little beat. they want a spectacular beat before they to go in to buy the stock. >> we mentioned before, buy the

rumor, sell the fact. even good numbers are prompting them to sell off. talking about apple enormous company. loss of 7% is $60 billion haircut off this company. you know what? big stocks don't fall 7, 8% because they turn around to head right back up again. given uncertainty about the watch i would say this is a growth stock at least for now is brown and one to avoid moving forward given the haircut after-hours. david: jason, what we're hearing from the cfo by the way, i hesitate to use the expression, but i'm going to, putting lipstick on a pig, he is talking about how great sales were for apple watch. forgive me for turning around. i don't want to quote him inaccurately. he said they sold more of the apbefore watches in nine-week period than i phones and ipads at their launch. he is trying to make the case despite numbers are bad enough they're not willing to come out with them all that in fact it was spectacular launch. do you believe it? >> no, i definitely don't believe that.

first of all, as far as expectations, expectations could have been zero. guess what, we beat our own internal expectations. that is extreme example to illustrate a principle. secondly i'm watching around streets of southern california and every place in the country. one out of every 50 people have an apple watch on. david: right. >> it really has not caught on. thirdly the fact jonathan is calling the stock broken i think is kind of insane. it is not broken. it is beaten beaten down is tremendous buying opportunity. they have apple music and later in the show they may enter automotive industry. icons love apple and we do. >> do we have christine warren mashable tech analyst. christine, excuse my for not including you earlier, no christine. let me go to elle. there is project titan. idea of apple car they have been putting forth.

made a big hire from chrysler, doug betts who is superman in the automotive world. is that, is that more talk to sort of cover up for what they have might have lost with the apple watch? >> well they're not really talking about it. it is a project and it is quite mysterious and exciting. they say, if you want to know where a tech company is going you sigh whose hires they're peaching. apple poached a couple key employees from tesla. the rumor this project is in the realm of creating some sort of a car does seem very exciting. david: okay. nothing exciting after the reporting today as we can see. the stock is still down about 7%. might stay there until at least tomorrow. tomorrow is the big day. will this 7% loss on apple, the biggest stock in the world really last through tomorrow? melissa? melissa: don't go anywhere.

apple's stock down big. we'll talk more about this after the break. ♪

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melissa: christina warren is mashable senior tech correspondent. jonathan and jason are back. christina, apple not breaking out watch sales. cfo said they beat internal expectations. we're looking at 50 billion getting whacked off the market cap in after-hours in reaction what we've seen so far. obviously it is not enough. what is your reaction on the watch front? >> as you said,it is not enough. he said in interview with bloomberg sold more apple watches first nine weeks than ipads that what it was first released. that is great, but unless you quantify the figure that doesn't say so much. especially everyone is expecting it to be a humongous category. not breaking it out. because it is best-selling smartwatch on the market doesn't

necessarily mean it's a killer product. melissa: jonathan you said in the last block you thought it was a broken stock. certainly the market agrees with you right now. but every time apple seems to dip it rallies back. are you sure it is not an opportunity? >> it rallies back, melissa, stocks are forward-looking. even when the stock gotten hit in the past it look forward to the new iphones or apple watch which had tremendous amount of buzz. what is apple stock investors looking for now? if it is apple car initiative we're talking about a moment ago, you're not seeing that sort of anticipation in the stock. all other times we've seen that run-up to the news of new product this is time. obviously from my peck speculative thedperspective the street is not anticipating much. melissa: more and more people have an apple phone every day. seems like it is taking over. you always need to upgrade. there is always a new phone. everyone is always trading them

in. they're expanding into new categories. we're expecting an end somewhere down the line but you always need a new phone. >> right, exactly. the thing about the 7% dip, first of all, what people need to understand, this is after-hours trading, okay? this is on a fraction of the volume that transacts on a daily business day. after-hours has wilder swings. 7% is not a huge bill. melissa: $50 billion is money to me. $50 billion, lying around? >> you know what? it is money to me as well but keep in mind it is all relative. that's what i'm saying. this is after-hours move i think is going to be corrected by end of the year because apple still has tremendous growth to happen. you're right, people want new phones at least once every couple years. why? you have to ask them. because there is always new features and people want new things. melissa: what is the bottom line for this stock right now? >> you know listen -- melissa: elle i'm sorry. go ahead. >> sure.

>> thank you i think it would be foolish to write apple off. they're such an amazing innovator. they really define design. they define what's hip. we've seen other people trying to compete in the watch category. melissa: yeah. >> lvmh is designing one. so is tag your. this -- tag hour. this is the first iteration. melissa: christina, you're the tech expert. what is wrong with the watch? what would you like them to change bit? what is the problem because i don't see anyone with it. he talks about one in 50 in california, but i don't see anyone. >> i have a one. i'm a tech editor. my job to have one. there is not a "killer ap" for it. i like getting notifications on my wrist. i think there are opportunity in the health space. i don't think there is that "killer ap." in the laws couple weeks you haven't been able to go into a

store and buy one. i think the launch was really mishandled. combination of people were able to get it at enthusiasm at highest and people not knowing what they want to use it for. melissa: don't move. thanks, guys. david? david: apple is fueling the rumor mill. why its latest hire is pointing to a new product category. more on that and the precipitous drop of the stock after-hours when we come back ve more. it pushes us to go further. special olympics has almost five million athletes in 170 countries. the microsoft cloud allows us to immediately be able to access information, wherever we are. information for an athlete's medical care, or information to track their personal best. with microsoft cloud, we save millions of man hours, and that's time that we can invest in our athletes and changing the world.

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david: apple is fueling the car rumors. the company hired a major auto executive according to "wall street journal" reporter. our panel is back. called project titan. they hired a guy named doug betts. no small-time in the auto business. he really has done a lot for chrysler fiat.

i'm wondering though if this is something like the apple tv we keep hearing about but we never see anything? >> i think certainly a possibility but you know what? this to me seems more like the case we hear rumblings about the tablet and rumblings about the smartwatch. if there is enough smoke there is enough fire. they are making too many hires from automotive to this to be apple tv. david: jonathan, what is happening after-hours, apparently fourth quarter forecast has come down a bit pro expectation. that is really worrying investors. does it worry you as well? >> well, david, i think a lot has to do with china. david: they say not, by the way. excuse me for interrupting. tim cook says no. what happened with the stock market was just a blip. it didn't affect their overall sales. >> that is looking backward. now let's look forward for a minute. since this report was essentially created we have had 30 plus% in chinese stocks. i think that will pull in a lot

of consumer spending in china really fueled this stock. david: okay. >> in terms of apple car, you know the proof is in the pudding. right now the stock is not anticiting anything big from this company. chase, one word answer only. are you buyer tomorrow? >> tomorrow, yes. absolutely. david: good stuff. folks, thank you very much. melissa. >> busy earnings hour here. we're recapping numbers in wild after-hours trade when we come back. don't go away.

>> wild hour for earnings. here's what you need to know. apple the biggest mover down around 7% as iphone sales and revenue outlook disappoint. david: then we had chipolte losing 4%. sales rose 14%. but it wasn't enough for investors. >> meanwhile microsoft as well also falling down had% in after-hours trading. it posted a $3.2 billion loss. mostly on the nokia business. david: yahoo! down 1% as post ad loss.

spending more to attract more eyeballs. >> go pro-shares losing 2% despite better than expected revenue and quarterly profit. david: even though nine of 10 dow stocks reported better-than-expected earnings those stocks are down. >> here we go. jo ling kent to take you through the next hour of fox business with "risk & reward." thank you, jo. >> thanks so much. you killed it on earnings. apple earnings are out, beat on top and bottom line. but the stock is tanking as iphone shares missed estimates. earnings on microsoft and yahoo! "risk & reward" starts right now >> markets closed in the red today on the heels of some lackluster earns reports but big news out of apple in coupe per teen. the company beat third quarter estimates off profit and.