melissa: white house may have a major change in strategy with isis exactly what the president said he wouldn't do. david: something liz reported, a source telling fox news, that congress will start impeachment proceedings against the irs commissioner. we have more breaking news on this story. melissa: that's right. first, stocks, sinking as closing bell sounds on wall street. here is where we're ending major indices. dow down 39 points. s&p down better than five. nasdaq about the same. basically flat on the day. we're looking slight move into the red on major indices and crude oil as well. david: while markets wait for tomorrow, we're waiting for nothing. everything you need to know including market news. first white house is now considering a more aggressive

role in iraq even putting boots on the ground in syria for the first time according to reports from "the washington post." while white house hearings are taking place on capitol hill. they're focusing on national security as fight drags on against isis. fox news security correspondent jennifer griffin with latest on this news. jennifer? reporter: david, we're learning the president is weighing recommendations from the point gone so ram up military strategy in a move that would place u.s. troops closer to combat. >> we expect to intense fire our air campaign including additional u.s. and coalition aircraft to target isil with higher and heavier rate of strikes. reporter: chairman. joint chiefs would recommend embedding u.s. troops with iraqis to reinforce operational and strategic success, the same way delta force operators became embedded with kurdish forces during the hostage raid last week that freed 70 prisoners.

>> after talking to commanders on the ground i think we'll have the opportunity to reinforce iraqi success in the days ahead. we developed a variety of options to do that. reporter: especially in raqqa and ramadi, the heart of isis come man and control. the white house said today the president is not authorizing large-scale ground forces like he did in afghanistan. but carter was most senior administration official said there were already u.s. combat forces in iraq and will be in syria. here is how he described the death of a delta force soldier killed in combat last week. >> he was killed in combat. that wasn't intent obviously. he was accompanying toes forces. reporter: in another dramatic shift u.s. invited iran to talk about peace talks in syria, a shift in strategy for the u.s. secretary of state john kerry begins talks to end the war in

syria in vienna later this week. david: jennifer griffin in washington. thank you very much. melissa. melissa: ben carson taking come manning lead over donald trump with a double-digit lead nationally in a poll among primary voters. joining with us details our very own peter barnes. quite a shake-up, peter. reporter: that's right, melissa. we got a preview this might be happening four after the last five polls in iowa showed ben carson taken the lead in that state and donald trump began to focus on carson. trump said he doesn't know about carson's faith and called carson weak on immigration and not up to the challenge negotiating trade deals. there is new cbs news, "new york times" poll that shows other than trump on top of a national poll for first time in more than 100 days. here carson leads trump 26% to 22%. trump reacting to the poll this morning had a warning for carson, expect more scrutiny.

>> a lot of things will come out now and we'll see how holeds up to the scrutiny. i've been there for i guess, 100 and some odd days. we'll see how ben holds up to the scrutiny. reporter: trump continued his fire saying, in his words he thinks, carson, quote, has a lot of problems and those will start to come out. melissa? melissa: all right. peter barnes, thank you so much. reporter: you bet. david: meantime ford ceo mark fields is rejecting donald trump's recent claims he helped convince automaker to move jobs from mexico back to ohio. fields saying, facts are stubborn things, reminding trump that the company's decision was made back in 2011. ohio governor and presidential contender john kasich firing back at trump saying you can't quote, win jobs through bombast. going to be a lot of stuff that donald trump has to answer. he managed to avoid answering a lot of those questions. melissa: absolutely. this decision was made back in 2011. david: i know. melissa: so it's a little bit dicey.

companies make decisions based on numbers, based on profit, not on being emotion or being bullied. david: that's right. >> retailer rei, c a big black friday promotion today. not a door-buster deal or half off sale or extended shopping hours. rei announcing instead it will be closing all 143 of its stores on day after thanksgiving which is symbolic start of the holiday shopping season. several retailers announced they will not be open on thanksgiving rei is the first to close on black friday. instead outdoor gear retailer launching a campaign encouraging people to get outside instead of being at the mall. david: hmmm. we have a few other stories on our radar. tensions between china and the u.s. ratcheting up today after u.s. warship sailed very close to one of china's man-made islands in the south china sea's contested waters. china saying in the statement the action, quote, threatened china's sovereignty and tracked

and warned the american destroyer. death toll topping 300 in afghanistan and pakistan after a magnitude 7.5 earthquake ravaged region on monday. rescue efforts are hampered the taliban who repeatedly targeted aid workers. all begins tonight, the world series. game one in kansas city as royals face off against the new york mets. second year in a row the royals made it to series though this year they're hoping for a different outcome. we'll be watching. melissa? melissa: we're awaiting twitter earnings. should be out momentarily. we have heroin hon and jason rot -- jonathan hoenig and jason rotman are here. what are we looking in the release. >> this is monthly active users, melissa. this is growth that is meaningful to allow investors to calm down a little bit how lagging the growth is is. how much revenue twitter is able to pull in. this is the first official

quarter jack dorsey has been ceo on official permanent basis. i will look how twitter moments, their new product is working plus any impact of the new board chair which has been relatively new from google of course. that is a lot to look at. really the biggest challenge is monthly active users. they currently sit at 311 million. we're looking for a bump up to 323 million. melissa: wow. jonathan, let me ask you, jo mentioned that moments tab. i'm a big twitter person. i tweet all the time. i can figure out logic or value of moments button. are you a big fan of that one? >> question how many people looking for twitters earnings are looking at moments tab. that is new innovation, melissa. that is what the company needs to do. refashioning itself as media company. things like perry scope or moments make a big thing attracting users. it seems to get a slight bid in the after-hours, it has been

terrible destruction a monster this entire year, down 40% at one point. even if there is bad numbers i think you could see the stock pop on essentially sell the rumor and buy the fact. melissa: jason, we're looking for that button. we're looking for the users. they went ahead cut 8% of the staff in order to address a lot of these issues. jack dorsey gave a third of his twitter stock back to employees. what do you think of moves that he has made? >> i like them so far, i really do. i think now there is, quote, unquote blood on the streets. as jonathan mentioned the stock was down 38% this year. there is a lot of negative buzz around twitter. think now is time to buy. if twitter for some reason goes lower on support i think if will go higher. one thing real quick, people are not talking about google effect. when you search on google, twitter results come up first or second entry. that is amazing, amassing boon to twitter. that is very buzz worthy for the long term. i will see businesses want to be

on twitter more and more. they will throw money at twitter to get rankings. melissa: i'm interested in jo, jo is representing what is hip and cool on this panel. sorry, guys. >> that is probably not a good thing. looking at broader user base, talk about ads and companies being on twitter they're getting completely, completely beat by these younger social media companies. whatsapp owned by facebook, 900 million monthly active users. instagram integrating very smart media advertising strategy. they have 400 million monthly active users. even if we see a big bump, they will not come close to instagram an even views that snapchat is getting. long-term gain for investors may still be questionable even if it's a good day for twitter. >> jonathan, doesn't seem like twitter can get its cool back. >> well it needs a new visionary and ironically, melissa, brought in the old visionary, jack dorsey in a move to shore up

confidence among his employees gave away a third of his own personal stock holdings to incentivize an invigorate the staff which has seen tremendous amount of morale. any technology company its real assets are the brains behind it. jack dorsey has gone a long way. the stock loves this new ceo. old ceo, back once again but stock is up sharply since even he came back. i think you still see the stock pop as well. we're obviously waiting on numbers. melissa: we're awaiting a lot of different things, jason. dorsey said we'll look for dramatic product changes that affect twitter's main ap, video apps, periscope and vine. you have trouble when you're getting out there promising something magical down the road. first you better deliver and second of all you're saying what you have now is not cutting it. >> he is being realistic. i think that is not necessarily making any promises. he is being realistic. i think he is really short selling the future, so to speak

underpromising. he is not making promises. listen, we know the road ahead will be arduous but we're in this for the long haul so stick with us. furthermore you have big mouth steve ballmer share that he owns 4% of twitter now. there are bullish forces that are building in twitter. it may not go up 10% by end of the year. with ballmer and google effect i think this is a buy. >> melissa, we have to mention the elephant in the room. square is going on road show to go public as a company later this year. ceo jack dorsey, is the ceo of both twitter and square. what we're seeing here is overstretching in terms of strategy. we'll have to see on the call how he addresses whether he will juggle both of those. >> melissa, the stock is actually swinging wildly in the after-market now. was up about 6% at one point. down 9% at one point. now down 5%. as news trickles are, traders

are waiting to see what news is, ask questions later but it is to the downside in after-hours. melissa: what would you like to see what happens in the long run? is it acquisition target? do they have to reinvent themselves? what the dream scenario? jason, i will start with you because you're kind of the most positive out there. >> i think ultimately twitter's future relies on it being number one place that people go for real-time information. facebook is a place to look at your friends pictures and go on fan pages but twitter's brand for next year needs to be ultimate destination for real time information. they need to monetize that. if they do they will be fine. >> appears we have twitter numbers out and it's a beat. look at revenue, $569.2 million. that is a beat on the estimate. looks like adjusted earnings per share up 10 cents which is pretty healthy beat up five cents a share street was looking for, but shares are down

9% right now as we were talking about. trade something kind of volatile. we'll dig into the numbers and check them out for you. melissa: absolutely. let's bring in ashley webster looking into numbers as well. what do you see, ashley. >> as jo said, 10 cents adjusted on earnings per share, double estimate for five cents. revenue beating at 569 million, above the estimate of close to 56million. that is up by the way, revenue, 58% year-over-year. those monthly active users, maus, coming in right around 320 million. the analysts were hoping to see a 14% hike to 322 million. so there is a hike of maybe not as big of a jump as we would have liked to have seen. melissa: yeah and it looks like the stock is sinking a little bit after-hours as we're hearing that. jason what is your reaction to the numbers? is it users you're focused on? do you care that they beat on earnings, basically doubling what was expected? >> my first response when i

heard jonathan's news was buy the dip. listen, if this stock is down five, 6%. melissa: 9% right now. as we're watching nine, yeah. >> this is a dip to buy. that is my comment. melissa: okay, jonathan hoenig? >> we don't know when a dip is the dip and not, just continuation of a trend. melissa, the downtrend has been in place for twitter quite some time. i fear even as news becomes better in terms of earnings, valuation contracts. keep in mind, that is what a stock is. you're buying valuation of a company. even as earnings if you will start to get better, clarity on fairly expensive stock starts to get better. valuation at which it trades continues to contract. melissa: jason, there is a lot of question about those 3 to million users, how engaged they are. jo, were you responding to that, how engaged they are, what they're doing, how much time they're spending on there, what else doing? it is not just a number. we need more color.

>> we're going through the earns report and it is light. analysts were looking for 323 million. growth of course, hasn't been a full quarter with jack dorsey as the permanent ceo. we're seeing a bit of a disappointment there. maybe that is why the stock is down because user growth is not robust enough. melissa: jason, when you compare that, look at instagram, they have more than 400 million monthly active users. whatsapp, the hundred million monthly users. seems like new app every month kids are into and adults late to follow on to and twitter is has kind of come and gone a bit. >> yes, that would, that would be correct up until now but, the future will be different. again, i want to keep it simple and pointed in saying that do not underestimate the fact that when anybody on planet earth searches anything on google twitter results come up on the top of the first page. that is not an accident because

former google person is now on the board of twitter. so if twitter is in bed with google now, that creates huge momentum for people wanting to get back on twitter. so their information can get back on top of google. that is big deal. melissa: what would be a way to make that even more valuable on the search, real quick before we go, jonathan. >> it needs to be monetized. essentially what is describeds fluoride newswire. i don't know if that -- glorified newswire. i don't know if that trades at 100 times earnings. >> revenue outlook 695 million to 710 million. that is pretty light. the street was looking for midpoint of 739.7 million and so if you're looking at that revenue outlook as an investor, institutional, individual retail, that does not look good for the coming quarter. thanks so much to all three of you. david?

david: that was warm-up for the biggie, the biggest company in the world. in fact apple earnings are imminent. the tech giant will reveal expectations for the upcoming holiday season and we'll find out if sales for the latest iphone, 6s, and 6s plus matches all hype. melissa: do you have an iphone? , my wife does. she upgrading this week. melissa: good for her. david: david: not kicking the can. d.c. may cop promize and cut a budget deal a parting shot by boehner. naturally not everyone is on board. mets versus royals, what you have to know before the first pitch in the world series takes place. ♪ good.how was your commute? yours? good. xerox real time analytics make transit systems run more smoothly... and morning chitchat... less interesting. transportation can work better. with xerox.

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david: could call it boehner's revenge let by outgoing speaker john boehner to rein in debt and have a budget deal for next two years. this got boehner in trouble with his tea party opponents. chief congressional correspondent mike emanuel on capitol hill with the latest. i guess there are unhappy people with the tea party contingent but clearly they will not winning this one. reporter: every one seems slightly unhappy with the deal. supporters of the deal gives uncertainty with the government and avoids a budget showdown in coming months. republican chairman of the house appropriations committee says it makes a lot of sense. >> i'm very encouraged. in fact i'm very pleased. it's a two-year arrangement which will allow to us pass i hope, pass bills in regular order. it changes mandatory entitlement spending is i'm arguing all the while where we node to do cutting.

reporter: critics don't like last minute deadline deal unveiled overnight with the house expected to vote on it tomorrow. others don't like $80 million -- billion dollars adjustment of spending caps and farmers in agricultural states are upset about another component. $3 billion cut from the federal crop insurance program. >> we get rid of crop insurance which will this -- this will do, long-term end result of this, 100 people farm entire united states because they're the ones that, whoever has deep enough pockets, wants to farm, you know, the average guy won't be able to do it. reporter: the house is expected to debate and vote on this package tomorrow. this comes as house republicans will select a speaker nominee, expected to be wisconsin republican paul ryan and outgoing speaker john boehner is trying to clear out the barn for ryan. david? david: mike emanuel, thank you very much. melissa? melissa: former irs director

lois lerner is of the hook but john koskinen is back in the hot seat. today congress is starting a resolution to impeach the irs commissioner. he was grilled by the senate finance committee earlier on the agency's targeted scrutiny of tea party groups. this just a day after the department of justice decided not to pursue criminal charges against lois lerner. gerri willis has details on this story. gerri? >> that's right. as you might imagine the republicans on the committee not very happy with what the justice department said last week. in fact they were pedal to the metal asking john koskinen tough questions. the head of irs in fact saying hey, look, there was no targeting of these conservative groups. no targeting by in an objective review. now a lot of pushback against that. and republicans saying that what they really wanted was accountability. that is what they were really looking for. i want you to hear an exchange between senator pat roberts of

kansas and koskinen on this issue of accountability. >> does anybody involved in this been fired, fined, reprimanded denied a bonus, slapped or wrist or even talked to in stern manner? you're saying everything is fine. it is not fine. >> it is not fine but it is not the problem of political targeting. it is a problem of in fact the recommendations you make or recommendations we're implementing we need to have better operation to insure it doesn't happen. >> all right. so you see the debate wages, continues despite the fact that lois lerner has said, yeah, we did target those groups. melissa? melissa: wow, gerri, thank you so much for the report. we will keep an eye on that one for sure. david: we're moments away from apple's hotly anticipated earnings report. don't go anywhere. we'll bring you numbers as soon as they come up. melissa: apple's iphone may steal the spotlight bu apple pay is facing competition. will tim cook's effort pay off? we'll tell you. don't go think where.

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david: apple, the world's most valuable company out with fourth quarter earnings results any moment now. the tech giant is looking to beat earnings estimates for the 12th straight quarter. we have you all covered. back with me, jo ling kent, jonathan hoenig, angelo mozilo, s&p i.q. and jason rot tan from mashable. they have been talking down earnings. have they been doing that today? >> apple has not been performing up to its peak so far this week. metric you want to look at is all about the iphone. secondarily china. their very important market. what is the lower gdp growth there? how is that going to affect iphone sales? we're also looking for anything out of apple watch metrics, more on apple pay and apple music but

really what we're expect something about 48 million iphones in the previous quarter according to mizuho estimates. 13 million of those 6s phones were sold in the launch weekend. david: a lot of numbers to digest, jason. which number will you focus on first? is it revenue or number of phones or what? >> iphone sales. at this point apple is a iphone company. they need to hit the number and price upside on future revenue guidance. david: how many weeks of sales will be included in the quarterly result? i believe only a week or so, right. >> of new iphones? david: yes, the 6s, and 6s plus. >> we'll not get a ton of indication. we'll get a number how much they think they will make next quarter. we will see indication how the new iphone is doing. david: jonathan, looking back here, how much does apple and apple sales tell you about the entire economy? >> certainly entire technology economy, david.

i happened to see a tweet, keeping eye out for apple earnings. one gentleman tweeting next up is apple, aka, my 401(k). i mean apple is 12% of the nasdaq composite. what rca was to the bull market of 1920s and microsoft was to the 1990s, apple is for that period so it will set the tone. keep in mind, although it lagged recently, nasdaq is only a few percent off all-time highs. technology is still higher. apple, we'll have to wait and see. david: an gell low, as big as apple is, some say whole global economy, they used to say as goes gm so goes america. this is global stock also affected by global economy as well. how much has the slowdown in china and what is happening in europe affected the stock? >> if you look at apple and china here, our expectation for the september quarter that the numbers will come in perfectly okay. david: okay meaning it will meet

expectations, exceed expectations or what? >> they think we will -- we think they will meet or exceed expectations out china. in june quarter china more than doubled year-over-year. that largely had to do with easy comps. you again will see that in the september quarter. numbers out of china will look phenomenal. more importantly what will we have for the december quarter. our expectation is 47 million in iphone shipments in september. in december you're looking closer to 76 million. david: will stop you mid-sentence there. numbers are out for apple. let's go back to ashley. i see it rising after hours. that news be good numbers? the. >> david, let's start with earnings per share estimate. 1.88, coming in at 1.9. revenue estimate was 51 billion. actual was 51.5. slight beat on the revenue. iphone sales coming in 48 million, which is right in line with what was expected.

international sales up 62%. we're trying to break down china numbers right now. david: let me go to angelo first, what about iphone sales, 48 million. >> i think that's good. the concern was for the september quarter because we were only getting two days of 6s relative to last year where we were getting nine days in the september quarter. when we look at the 48 million here, i think that's a great number. more importantly on eps side given the beat that we're seeing there, probably point to upside on the gross margin side. i haven't seen the numbers myself. david: it is moderating a little bit after-hours, the stock pop. go ahead, melissa. melissa: stick around. let's bring in the rest of the panel, jonathan hoenig and jason rotman and jason abrzuzzo, give me reaction. >> that solid report. 48 million is monster number in a quarter before they release a whole new line of homes.

melissa: jason rotman? >> bullish. don't short macro unless you're a micro minute day-trader. this is company very strong. tim cook is very bullish china. china will grow. apple continues to rise. melissa: jonathan, do we care about the watch details? everybody is focused on the watch to create a new product and new category and they don't want to give us details and we're not impressed with it? is that a sideshow? >> i think investors are looking at stock, melissa, the reason the stock is up on this beat but up barely half a percent this half hour. stocks are forward-looking this, is iphone company right now, the fact that iphone number beats is terrific. but what about looking forward whether it is watch or car, that makes stock go up long term, that is looking forward not the present. melissa: looking going what is going on in china, jo, i want to bring you in. what details are we getting that? >> china numbers are strong, $12.42 billion generated out

people's republic. year-over-year up by 99%. not quite a pop we saw 112% in the previous quarter what we're seeing growth in china may be impacting the growth of iphones sales for apple but overall, pretty strong. we didn't get numbers from the apple watch by the way. melissa: i know. we're waiting still, right? we're not even sure they will break it out for us. >> appears they will not break the out. that was the first new hardware product since 2010. still no specifics on that front. looking at china overall, pretty strong, even though overall china market has been volatile especially with new gdp number out not too long ago. melissa: jason you're mashable guy, you have trend with all the gossip inside of this. what do you think of trend they don't want to break out the watch? does that make people more suspicious or negative that they're hiding something. >> a little bit. if they were good numbers we

would see them. not being public maybe they're not as good as hoped. at the same time you look at revenue situation and how much money they were producing, even if they were really selling a ton of phones it will not hit bottom line. the watch is fun consumer thing and fun thing to look forward with what could be the future of apple, but short to mead yum term business -- medium term business. melissa: jason rotman, phone refresh or bringing out new ones or new model, everyone in the phone chain, this continues to be a fabulous revenue stream. >> exactly. i mean you have some of the smartest investors in the world love it. carl icahn calls it the best annuity in the world. you collect income once every two years at most on repeat forever. people will continue to always upgrade their phones. as the world gets wealthier, as central banks stimulate economy more allah europe, a la china, apple continues to sell phones at record pace. melissa: yeah.

jonathan, you mentioned fed, mentioned what is going on around the world, we heard apple before being called the hedge fund hotel, you check in your money and leave it there and at some point -- go ahead. >> it is a cult stock, melissa. this is a stock that people, they would sell probably their children more than they -- melissa: not me. >> that held them for a long time. melissa: i wou keep my children. most of them. go ahead. >> they have been smartly rewarded holding on. i wouldn't say it a hotel but a cult stock. in my estimatemation no longer a growth stock. wonderful growing company but stock trading 12, 13 times earnings looks more like washed up utility than tomorrow's big growth opportunity. david: jo, on the other hand numbers are strong. what is interesting the cfo just came out and said he saw no slowdown in china. that says a lot about apple but says a lot about china do, doesn't it? >> it does. what you see here is luxury

consumer, middle class who wants to be luxury consumer they're parking money in the iphone. it is seen as status symbol, up 99% year-over-year, that is very strong for apple in china. so you may see as luxury goods not do as well in china, people spending more on mobile phones but the growth there is still pretty strong overall. we also see tim cook is saying renewal is not there yet. there is still a lot of phones that have not been upgraded. he expects to see stronger numbers going forward. david: jason, i wonder if this is good news for other tech companies concerned about china? >> if you use it as proxy to say china is not having consumer slowdown people might have feared, absolutely a lot of boardrooms breaking down numbers, hey, things might be okay for the next few years. david: jonathan, could this affect other stocks, the fact they didn't see any slowdown in china? could it affect even stocks that have nothing to do with technology? >> it will, david. apple is so much a part of the

entire market it is 12% of the entire nasdaq so it will set the trend certainly most technology stocks that are related. to your point china now doesn't seem to be too much a worry. is it good indication consumption is not about to suffer? nasdaq is only couple percent from its all-time high. that is bullish. apple up after-hours is bullish as well. melissa: jason rotman, one thing i have to say number of people walking around with apple devices and latest apple devices. talking to someone who just paid $500 to upgrade his phone. you're sort of like, are you sure you can afford that? people really throw a lot of money around to have the latest apple device. >> yeah. melissa: for a while, you thought everybody could not afford the phone of the so expensive. price point is so high, so many fancy things, you look around everyone has them. amazing to me the disposable income i feel like people can't necessarily afford they're spending on these products? >> well, you know, it is a

case-by-case scenario whether one person can afford it or not. secondly from a psychology standpoint, this is why these super luxury companies, whether ferrari, porsche, people with neckties buy them, people want to be associated with luxury brand. there are lease programs. people an calf ford the phones. they're not that high. melissa: jo, do you have more info for fuss. >> tablet sales, continued to slide which is pain point for apple. tablet sales fell 7th straight quarter. down 20% per unit. new apple ipad pro will come out next month i believe. right now we're already seeing this slump in ipad growth and not quite notebook computers apple is very well-known for. those do reasonably well. what does it mean for the ipad? it is sort of oriented towards the enterprise community and business people but still, what does this mean for the long

term? what are they going to do about this? we'll hopefully hear from ceo tim cook on earnings call in 20 minutes. melissa: we'll talk about that some more as well as we squeeze in a quick break here. iphones, watches, cars, more on apple and latest headlines coming your way. do you ever have too much apple? david: i don't think it is possible.an melissa: okay. ry month. this is a very big problem for us with respect to fast and efficient transportation. it's kind of a losing proposition to keep going this way. we are trying to tackle the problem with several different modes. one of them is the brand new metro. we had a modest forecast: 110,000 passengers per day in the first line. we are already over 200,000. our collaboration with citi has been very important from the very beginning. citi was our biggest supporter and our only private bank.

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ask your doctor if adding once-a-week tanzeum is right for you. go to tanzeum.com to learn if you may be eligible to receive tanzeum free for 12 months. make every week a tanzeum week. david: getting a lot more details what apple is doing in china. they opened 25 more stores in china. 23-point7% of their revenue, all billions of dollars came from china. with all that information about china we're not getting information about the apple watch are we, jo. >> we are not but there are clues we can read into. the segment apple watch falls into which is same as apple tv and beats music accessories. that segment rose 61% to about just a touch over $3 billion.

so some good news there, the fact they're not sharing and always share good news out of apple, that is not a good sign. david: that is so vague. sold more today than we did yesterday. we'll sell more tomorrow than we did today but that's about it. >> that's about it. what happened, i was in sun valley, idaho with ceo tim cook, i asked how are apple watch sales are doing. he did this and walked away. david: hopefully we'll get more signs. that's all we got. jo, thank you very much. >> sure. melissa: jonathan hoenig and jason rotman are back drilling down on more of the numbers. look at number of iphones sold, 40.4 million, ipads 9.88 million, both short what analysts had been hoping. do you care? what do you think, jason? >> not really. listen the bottom line with apple, let's say throughout the end of the year even, especially end of this week, one main reason apple didn't have a bigger pop, we have all-important fed meeting tomorrow. melissa: yeah. >> so this is really, it is not

an apple-driven market. it is a fed-driven market. apple may be number two but fed is number one. that is my comment short term. melissa: jonathan, hope to get more clarity would come on the call, which is kicking off 15 minutes. what is the first question on the call? what are you listening for? >> what is next? apple never tends to cannibalize its own products to its credit, melissa. the fablet, larger phone is eating a lost iphone sales. why only four billion revenue from the pad, seven billion from the mac and 32 from the phone. my question is essentially to your point, new innovation, new technology, the car, the watch more specifically, when will we start to see that line itemed? we know they didn't sell billions and billions of dollars in revenue in watches but can we put that as metric to value that ultimately as part of apple's whole pie which is enormous and growing bigger?

melissa: jason, your number one question on the call. >> oh, sorry. which one. melissa: jason rotman. i didn't know the other one was available to me in this segment. jason, tell me your question. >> real quick, the my number one interest is similar to jonathan, more specifically i need to know what they will do with the cars. that, one of the apapple executives called the car a ultimate mobile device. that is ridiculously huge opportunity to make money but how will they do that. melissa: terrific. david? david: we'll talk more about the apple car coming up. here is what is next with tim cook for high hopes of apple pay. here is what he said in january this year, quote, 2016 will be the year of apple pay. contactless payment service celebrated the first birthday this month but most iphone users haven't even tried it. deirdre bolton talks about apple pay's year. started out like gangbusters then it kind of slowed up,

didn't it? >> it did, david, the apple watch was supposed to be the link. that was supposed to be the item, the device got all of us to use apple pay. not only is apple not really taking off as many had expected, it is a pretty crowded space when you look at these mobile payment wallets so to speak. in fact chase coming out today with chase pay. this will compete directly not only with apple but also with google and samsung. proves there is a lot of players in there. with chase pay you can use in store, online, in the chase app. for people who are in the northeast, this is pretty powerful platform. just one more of apple's businesses facing increased competition. david? david: deirdre, a lot to chew on for your show coming up in ten minutes. "risk & reward" will be here at 5:00. all roads lead to apple. rumors of the tech giant joining the auto world are getting louder.

we heard our panel weigh in. we have more specifics what tim cook might have in mind for an apple car. details straight ahead. stickers. what's up with these things, victor? we decided to give ourselves stickers for each feature we release. we read about 10,000 suggestions a week to create features that as traders we'd want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. who reads all those? he does. for all the confidence you need. td ameritrade. you got this. but it is not the device mobithat is mobile, it is you.

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melissa: jo ling kent back with more headlines from apple's fourth quarter report. what is happening now. >> they want to know how tim cook is generating income from iphones in the next quarter. tim cook sell telling "wall street journal," 30% bought a phone last quarter is replacing phone operating google android system. they are saying this is highest rate of switch over from android to apple than he has ever seen. that coupled with a two-year replacement cycle continues into 2016, means, probably pretty

bullish numbers ahead for the iphone in terms of sales. melissa: yeah. absolutely. jo, good info. thanks very much. david? david: all about the iphone but not necessarily. could apple do for cars what it did for mobile phones and music devices? this is an apple car part of what investors buying into when they lock into the apple stock? apple's ceo tim cook spoke recently about massive change coming to the auto industry steering clear of confirming rumors of an i-car. the hints were pretty evidence. take a listen. >> we would like people as they enter the car to have iphone experience as they enter the car. that is trying to make your life outside of the car and your life inside of the car be seamless. david: gary gastelu, foxnews.com automotive editor and jason abruzzo is back now. gary, i wonder if this is

something like apple tv, something you hear about but never get specifics on? >> it might not be profitable compared to other apple products but it's a vehicle to sell other products. if you keep people in the apple brand using different devices that work together and cars that people will not go out to buy android phones. go out to buy apple gear. david: when you listen to tim cook saying that, talking about something going on on inside of the car not necessarily the car itself. maybe they do interiors for mercedes like bose did for sound? >> maybe they're exploring that. they're making a car, they have enough cash to explore what they have want. david: by the way, 20billion dollars now. 200 -- one time that donald trump, you know, idea of maybe bringing back all that expatriated cash sounds like great idea. imagine how 206 million could do for one company?

>> they could buy any automotive company. they could buy tesla. david: is that a chance they could use the cash to buy car company? >> it would be easy way to get into it. you can start your own company less than tesla is going for to actually pay for it. other thing, apple is working on something. they have car engineers. they're working on a car. but are they working on a car for the united states or working on a car for china or some other part of the world? david: by the way they have been recruiting tesla engineers for their own program which is called titan, their car program so it does sound like something more than an interior system, doesn't it? >> absolutely. if you know apple they're very thorough. they will basically want to build their own car if they don't end up producing one. if it makes in car better, integrate apple experience as tim cook called it, so be it. they might end up producing apple cars. end up producing operating. david: i wonder how long the whole project can stay secret? it's a tough secret to keep very long. >> a motorcycle company,

electric motorcycle company, mission motors went out of business couple months ago they blamed it on apple. they stole all of our engineers. we couldn't get engineers. we had to go out of business. apple, as long as they don't fest up we'll build a car. never get around to it, because it was bad idea from the start you can't say they didn't do it. david: jason, on other hand look at sales where they come from, all iphones. talking about iphone sales from china, iphone sales from here. are all these other ancillary projects or apple tv or apple car, are they going to fade? is it going to just become a phone company apple eventually? >> it could. if apple wants to move the dial they don't have a lot of options. they are so big and so profitable, even when they start a billion dollar business, we talked about how the apple watch category is up to five billion dollars in revenue that incredible amount of money for big company. it is nothing for apple. if they need something to move

the dial to push business forward, automotive might only be place to do that. david: we have to jump. jason, gary, appreciate you both. melissa? melissa: twitter tanking after hours, the social media pessimistic about the last quarter of the year. what you to know about that and after the bell tomorrow coming up. or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial.

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that. the third-quarter earnings tomorrow morning, thomas fanning, southern company ceo joins maria on "mornings with maria," you don't want to miss the exclusive interview. david: and we'll bring you new earnings tomorrow. melissa: that does it for us, here's "risk & reward" starting right now. deirdre: house oversight and government reform committee chairman jason chaffetz, and 18 members of the committee introducing a resolution to begin proceedings to impeach irs commissioner john koskinen. we are going to bring you more shortly, that is just the headline. we wanted to let you know about. in the meantime, big earnings are out! the world's most valuable company apple posting results as did social media company twitter. welcome to "risk & reward," i'm deirdre bolton. ashley webster joining me from the floor of the new york stock exchange. ashley, apple pretty much a