here is how all of the indices are trading right now. looks like everybody was up at least a full percentage point. [closing bell rings] nasdaq the least lively gainer of the day, but even nasdaq was up over a percent. gold had a nice hefty $16 gain. melissa: oil once again behind the move in stocks. jeff flock is watching all the action from the cme in chicago. jeff, what do you make of today's turn around? reporter: oil driving everything i think today, fair to say, melissa. we're down in the after-hours. closed down 3.7%. we got as high as 32 at one point. he had, you know comments from iran. we had comment from opec itself about the possibility of maybe cutting production. that would be huge. one trader saying that could

mean 40 to $60 oil in the short term if they come up with some sort of a deal. we're a long way away from that. china also with news on imports. they imported 9.3% more oil in december than they had before. big number coming out here in oh, about 25 minutes. that is the american petroleum institute. that is stockpiles of oil in storage right now. we're looking at about 3 million in terms of a gain. that is what we think it will be. we get eia numbers, that is the official government numbers. most of those impact oil. we see with the chart i always commend charlie brady for putting this together, correlation between the s&p and oil, it has been just lockstep. that is why we watch oil so carefully. melissa: very true. jeff flock, thank you so much. david. david: over to politics. six days to iowa an candidates are stepping up their game. take a look.

>> what does trump think about iowa? >> how stupid are the people of iowa? >> donald trump, new york values, not ours. >> you know my views are a little bit different than if i lived in iowa. >> i'm ted cruz and i approved this message. david: despite the new attack even senator cruz is wondering whether "the donald" can be stopped. >> if donald wins iowa, he right now has a substantial lead in new hampshire. if he went on to win new hampshire as well, there is a very good chance he could be unstoppable and be our nominee. david: fox business's peter barnes in d.c. with the latest on campaign trail. quite an admission from cruz, peter. reporter: yeah, david and there is more. a new poll on the iowa race shows a very tight contest between trump and cruz. it suggests among other things that sarah palin's endorsement of trump last week may not have given trump a big boost in iowa

but trump told maria bartiromo that palin's support has been helping him. >> she called me up out of the blue, said i would like to go with you. i said, that is such an honor. ted cruz thought he had sarah. he was very angry he didn't have her. reporter: just saw the quinnepiac university poll results of likely republican caucus-goers. 31% support trump, 29% support cruz and 13% support marco rubio. those numbers are virtually unchanged from a "quinnepiac poll" two weeks ago. they continue to jockey for support from evangelicals in iowa. trump was ends r indoors doored -- endorsed today by reverend jerry fallwell, jr. cruz seemed to down play that. >> we're running national campaign. from the beginning we said no state a must-win for us. we're all-in iowa, all-in new

hampshire, all-win in south carolina and all-in nevada. i think we will compete well. reporter: conservative senator ben sasse of nebraska is evangelical, continued his campaign against trump on twitter the last several days. one of his tweets said, you bragged about many affairs to married women. have you repented. harm to children and spouses do you think it matters. no comment from trump and his campaign. david: boy it is getting personal. melissa. melissa: hillary clinton and bernie sanders are neck-and-neckiowa. hillary clinton trying to deflect the lead but deflecting questions about her honesty like this one from a millennial at last night's democratic town hall. >> i heard from quite a few people my age they think you're dishonest but i would like to hear from you that you feel the enthusiasm isn't there. >> i've been around a long time. people have thrown all kinds of tinges at me.

i can't keep up with it. i keep going forward. they fall by the wayside. melissa: hmmm. all right fox news's ed henry is standing by in des moines, iowa, with more on hillary's strategy to win america's first caucus. ed, let me ask you, we're hearing a buzz in couple hours maybe adding another debate. who do you think is behind that and who does that help? >> well, a couple people behind it. "manchester union leader" got knocked out of a couple of debates, one republican one, one democratic one because of various disputes and nbc news which was knocked out of republican debate because you remember of another dispute. just been announced that nbc and the union leader in new hampshire will have a debate a few days before the new hampshire primary. that would be after the iowa caucuses next monday when we all shift the focus east. who that helps, who is behind it as well? among the candidates martin o'malley has been pushing for

this for a long time. he is a distant third right now. bernie sanders said look, i will do more debates, if you want to do them this is non-sanctioned one. the dnc would not behind it remember the problem for other democratic candidates the dnc was widely seen trying to protect the frontrunner hillary clinton by limiting these debates. i reached out to the clinton camp. haven't gotten official answer that she will participate in the extra debate but i anticipate she likely will for number of reasons including the fact that her campaign has now been telling us they wish there were more debates. they think this strategy of protecting her has backfired because she has done pretty well in the debates. last night in this forum, not debate, that question you played, her answer on one hand happens her to show he is fighting with her back against the wall but say look, all allegations knock sticks and tell chris cuomo she did -- no, there were no errors in judgment with my email. if there were no errors in

judgment, you have to wonder why the fbi is investigating it. to wrap it up, bernie sanders, i was at an event with him today, he was pretty fired up. we asked him about the email situation, my colleague bret baier did, said i didn't want to bet into it. when i talk to bernie sanders strategists, they don't need to talk about hillary clinton's negatives. they're already out there for voters see. sanders is trying to stay on issues, middle class, economy, tapped on anger on the left much as donald trump has on the right. latest fox poll, he is within striking distance here in iowa. he has a 22-point lead in new hampshire, melissa. they think if they win iowa, new hampshire, this will be whole new ballgame. melissa: ed, do they think it helped hillary clinton? you watch the answer last night to cuomo, not making any eye contact, looking away, her body language was very much, i hate this. i'm not, i know, if she didn't look terribly truthful. pursing her lips when the

millenial came and confronted her. do they feel like she would benefit from another event? >> well, you raise a good point. they feel inside of the clinton camp it might help her because they're in her camp. they think that she's the top person. brian fallon, her spokesman was tweeting last night, she is the person you want to be in foxhole with. her critics don't really believe that especially given what happened in benghazi. melissa: right. >> look, here is the bottom line. the hillary clinton camp if they were to lose, it is if right now, if they were to lose iowa, would love another debate in new hampshire. the debate could give them a chance to shake up the race in iowa. if she wins iowa, i susquehanna speck they don't want to run this thing out. melissa: great analysis. ed henry. >> good talking with you. david: talking about the emails there is new evidence suggesting that hillary clinton knew she had classified information in the emails. a 2013 video obtained exclusively by fox news showing

the former under secretary of state admitting that clinton may have shared sensitive information that should not have been on an unclassified system. fox news's catherine herridge has the details. catherine. reporter: thank you, david. veteran aide wendy sherman was giving a 2013 speech on how technology is changing diplomacy. >> now we have blackberries, and it has changed the way diplomacy is done. things appear on your blackberry that would never be on an unclassified system but you're out traveling, you're trying to negotiate something. reporter: meantime fox news has learned the fbi is boeing straight to the us so in its investigation of classified emails that crossed hillary clinton personal server. speaking with the intelligence agencies and some cases the individuals that gathered the information. this step speaks to the diligence which the bureau is handling the investigation

despite the former secretary of state's claims that the matter boils down to a mere interagency dispute. meanwhile former intelligence and law enforcement officers emphasize it is not possible to cut and paste from classified network to unclassified system to perform what is known as intelligence summers as jumping the gap. most likely scenario an individual who had hack ses with classified information, surprised in their own words which is criminal violation and goes against non-disclosure agreements. special operations veteran offered this explanation. >> i think it reflect as, probably two things. perhaps an ignorance on the part of individuals involved in doing this. they're trying to please their boss and don't recognize sensitivity and how that impacts on national security. then element of arrogance to even think or consider you would pass information on unclassified file server. reporter: clinton said last night at the cnn town hall making emails public had never

been done before but she didn't mention the fact she was ordered to produce documents by federal court in response to freedom of information act requests, david. david: catherine, terrific information. thank you very much. >> you're welcome. david: hundreds of people are being told to leave their cliffside homes before they collapse into the ocean the look right on the edge. >> scary. i wouldn't want to be in those buildings right now. very scary to look at that. >> very emotional to see this. god help us. melissa: iran's president in italy meeting meeting with popes today. rouhani asking the holy father to pray for him. we'll tell you what the pope wanted from him in return. david: oh, boy. as ted cruz and donald trump battle for the top spot in the polls, the rest of the field is engaged in a fierce fight to separate themselves from the pack and come in as number three. ♪ ♪ lots of vitamins a&c, and, only 50 calories a serving... good morning, indeed.

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melissa: california homes teetering on the edge of a crumpling oceanfront cliff. look at that. david: wow. melissa: residents are forced to evacuate. fox news's claudia cowan in pacifica, california, with the latest what happens now for these homeowners. >> good afternoon, melissa, we're in condemned apartment of michael mchenry. it was yellow-tagged last night you can see is allowing us inside while packing up his stuff. he moved into the complex. he said it has been nightmare ever since. the cliff down the road here began to collapse into the sea over new year's and erosion hasn't stopped. over the past month el nino driven storms and waves have taken a huge bites out of the bluff. parts of homes are literally hanging over the edge and will probably have to be demolished.

a drone cap purse big chunks of sandstone collapsing into the sea right under people's deck. >> when there is quarter mile whitewater and tidal surge comes up and whole building shakes. when the bluff starts falling. that happened twice last three months. reporter: emotion running highs in the ocean community who watched cliffs disappear despite shoring them up. once this place closes they will have nowhere else to go. city freeing up government resources and funding. a long with homes a lot of public property has suffered storm damage as well, including a popular pier and seawall. it will cost millions of dollars to fix all of that. another storm is forecast, melissa, bringing powerful waves and further undermining the whole stretch of coastline here in pacifica. back to you. melissa: claudia cowan.

you heard what she said, right on the ocean. melissa: but crumbling, you think all the factors are related? david: i think there may be a government subsidy in there. hillary clinton still trying to brush off her email scandal. >> i'm happy people are looking at the emails. some of them are you know, frankly a little embarrassing. david: glad she's happy but a flash back from 2013 that is threatening to land her in more legal trouble. they dangerous inmates who escaped from a maximum security prison on friday. still on the loose. an update straight ahead. ♪ every auto insurance policy has a number.

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david: new evidence emerging that hillary clinton knowingly shared classified information on her private server makes denials like the one she made last night seem even harder to believe. take a listen. >> your willing to say it was error in judgment, you should

have apologized? >> no, i'm not willing to say it was error in judgment. nothing i did was wrong, it was not, iwas not in any way prohibited. david: hear to weigh in on all this, andrew mccarthy, "national review" contributes editor, former chief u.s. assistant attorney for southern district of new york. nothing i did was wrong. just last september by the way, she said i had made a mistake. i'm sorry about it and i take full responsibility. so which one are we to believe? >> which everyone poll tests well at the moment. we're at the stage where she's banking on people's either disinterest in this or the fact they can't keep up with her manifold explanations but she clearly did something wrong, even by her own prior accounts. if you're going to be objective bit, she set up a system, systematically to do her government business on a private communications system. so even we weren't talking about very sensitive classified information that would be problematic.

david: is there enough evidence so far presented that should be enough to convene a grand jury? >> oh i don't think there is any question about it. they should already have convened a grand jury. i don't want to get ahead and convict her before we've seen all of it but the, obviously a grand jury needs to be -- david: why hasn't that been convened? >> i think this is one of these cases where politics is trumping the usual procedures of law. what happens in the normal case, if the u.s. attorney will work in conjunction with the fbi and as subpoenas are needed and the like, the fbi will be given all that assistance and then they get together. they decide what charges to propose and prosecutor goes into the grand jury proposes indictment and grand jury votes it, usually yes. in this case the fbi is being allowed to investigate but the justice department is not participating in it as a regular investigation. david: but you know fbi director comey. >> i do. david: you worked with him. >> known him for many years.

david: he is nobody's fool. he is a tough investigator. he is bipartisan. doesn't have a brief to fill for any political party. he is pursuing this thing whole hog. if he gets no response at all from the justice department, if they refuse to indict even if he recommends an indictment, what does he do? >> i think we have a few steps to play before that happens. i think he is being allowed to go about the business of making the case. and i anticipate that he will make a case and he will put it in the justice department's lap and then a decision will be made. david: if he makes a case, they don't indict, what does he do? >> i think, i've always thought that in these jobs you have to be prepared to resign if you think injustice has gone on and i think very highly of him. i don't want to make decisions for him but that's what i think. david: andrew mccart think, great to see you. thank you very much. melissa? melissa: here is another look were the marketing ended the day basically higher on wall street

across the board. 282 points on the dow. the move higher most lip inspired what you see there near the bottom. crude oil, trading up on the day by 82 cents. 31.16 on front month was the last trade. this is increase of 2.7% on the day. the dow also fueled higher by good reports out of 3m and coach. david. david: melissa, most highly valued company in the world, apple's most closely-watched earnings report in the company's history. have we reached peak iphone? a lot of people are saying that. numbers you need to know. results from apple coming next. with creative new business incentives, and the lowest taxes in decades, attracting the talent and companies of tomorrow. like in the hudson valley, with world class biotech. and on long island, where great universities are creating next generation technologies. let us help grow your company's tomorrow, today at business.ny.gov

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melissa: tech giant apple out with its first quarter report any minute now. wall street is bracing for what may be the most closely-watched report in the company's history? some analysts are betting that sales of iphones year-over-year will fall for the first time ever. here to weigh in very own jo ling kent, jonathan hoenig of the capitalist pig hedge fund, scott martin of united advisors, both fox news contributors. we have christina warren, mashable senior tech correspondent. thanks to all of you for joining us. jo, i start with you. set me up with what the numbers are. >> the street is looking for 75 million iphones to have been sold over the last holiday quarter plus 76.54 billion in revenue. $3.23 earnings per share. that is the estimate but the two

most important metrics going forward, the iphone sales plus the outlook for the next quarter. would we perhaps see for the first time a decline in year-over-year sales as apple looks ahead to how the iphone does. as you know, melissa, iphone makes up 2/3 of apple's total revenue. melissa: yeah, absolutely. jonathan, apple has been traditional sandbaggers. they get us all prepared for low and come in and surprise and it is like whoo-hoo. >> right. melissa: they seem to be managing everybody's expectations pretty low this time. >> expectations are quite low, melissa. so is the stock. investment community is essentially asking, what's next? jo ling talked a little bit about it. the phone is apple's business right now. what can it do from becoming the next xerox going back to the '70s or ibm in the 1990s in early 2000. what matters is not so much the sales but valuation of the stock.

this stock is trading 10 times earnings. investors what will make it trade at 30 times earnings like just four or five years ago. melissa: christina, i don't feel like i'm buying this peak iphone thing. on way to the studio today. i sat in elevator with my producers and compared our iphones talked about how we needed upgrade. and ad and awed of the european in the elevator with newest phone and prices of a new one. peak iphone, are you kidding me? >> i don't think we're at peak iphone but we might be at peak iphone growth. that are two different things. don't think it goes out the way apple and ibm. growth in other markets like china where growth is growing in other areas -- >> was a miss. >> we're getting some of the numbers here. jo, what are you seeing? >> we're getting in numbers for first quarter for apple. revenue coming in at

$75.9 billion. eps coming in at 3.23 cents a share. which would be a beat and then a miss on revenue. melissa: jo, hang on. let me go to adam shapiro. he has numbers on the floor of the new york stock exchange. i heard you saying them. reporter: they were down one% before these numbers came out. where are we going right now in the post-market? they're actually gone higher. so wall street doesn't seem to be too upset by this they're trading higher after these numbers come out. but again revenue was 75.9 billion on earnings per share of $3.28. it was beat on earnings per share. the revenue number is a miss. now we've got to dive in to see what the iphone sales were at. melissa: scott martin, what is your reaction to that? >> the numbers look okay. this is kind of par for the course these day, right? easy to beat on eps. that is the bottom line. it is hard to beat on revenues. that's the top line. i think these, interesting thing about apple let's see how this thing trades certainly tonight or tomorrow.

the stock could be so beaten down, so depressed maybe this works out for them. in the past it wouldn't have. remember china is apple's number two market. by all indications, economic data, comments from other companies, china is in trouble. that is probably impacting sales. david: apple analysts from s&p capital iq is back with us now. angela, what do you make of the numbers so far? >> i think overall so far it looks good. expectationsexpectations were sg into the number, a bottom line beat here and number on top line comes roughly in line, slightly below the street is as good as you could have probably expected out of apple. given that, i think investors should bid the stock up here on expectations of probably, you know, iphone 7 launch later this year. david: see if we get more details from jo ling kent. waiting on numbers of iphones sold, jo ling.

>> 74.84 units, how many iphones sold in the last quarter. iphone sales overall growing at slowest pace since it was first introduced back in 2007. and looks likes the forecast for the current quarter for revenue will drop, steepest rate in 15 years. david: wow. >> so this means all that hyper uber serious growth is starting to slow down for apple. david: let me go back to angelo for a second. 74.8 million. that is less than expectations, is it not? >> less than expectations. we were looking at 75 million but nonetheless better than 74.5 million posted this time last year. so, once again at least kind of somewhat flat line growth. david: again to put things in perspective in 2015 iphone sales in this period increased 46% from the previous year, from the period in the previous year.

right now improving by a fraction, by a little less than 1%. >> i think that is important point. so when you actually look at iphone sales in the last fiscal year, grew north of 50% saleswise. so i think, what investors need to start to realize, coming off enormous year, apple almost a victim of its own success. you can't expect them to necessarily repeat what they saw last year. the bar was raised extremely high. overall, making due with the best that they can. melissa: okay. that is good. angelo, i don't want you to move. i want to bring the panel back in because i think jo has more color for us. jo. >> look at mac sales and ipad sales. can't forget the other products helping out iphone as it slows down. miss on ipod and the mac. ipad sales, 16.1 million, also a miss of 17p .3 million. we're also looking at china

number. 17.3. china, 17.2% of their sales came from china in the previous quarter. we're looking how that increased from year-over-year. melissa: back to my panel, scott martin give me reaction to those numbers we heard, mac number, 3.15 million. significant miss. they were looking for 5.8. >> apple over course of last several years, hey, you're part of this ecosystem. you own the iphone but you will buy other apple products and that is starting not to pan out. granted gone are the days of this growth stock that was apple. look at the cash on balance sheet and realize that. but going forward, the slowdown in the iphone sales, slowdown in the mac growth is certainly concerning for company that comes into this lull in the product cycle, this hope on iphone 7 which i think is overdone, this flop in the apple watch, i just don't see how the company will go back to crazy

multiple days with the situation it's in. melissa: christina, the only thing i agree with there that i think scott just said about the watch but the rest of it, i mean if our house resisted apple till the end. we have more ipads than you can trip over. everybody has an apple device. maybe a bit of a slowdown in the economy right now with consumer around the world, that's what we're seeing in apple but it is poised to rebound when the rest of the world does, whenever that is, what do you think? >> that is certainly a possibility. i'm not really concerned about the mac sales. they missed there but their miss in comparison to the broader pc market, they're still way ahead. ipad is another story. down more than a million units versus what expectations were. that is continuing to fall i think over last 10 quarters. i would be concerned about the ipad and how often people replacing those. you make a good point. possible when the general economy speeds back up, that apple upgrades might speed up toys, the problem with that the china economy seems to be slowing down.

that's affecting sales. jo ling kent, you have info on china sales, right? >> right. as i told you earlier makes 24.2% of sales in previous quarter we were reporting here. we saw the uptick sequentially, 47% from the previous quarter. if you look back to the previous quarter as we did three months ago, that revenue almost doubled for china september quarter. so you do see a slowdown in china. then again holiday quarter is little bit different in china when than it is when a new phone comes out. we'll look for outlook of chinese new year where a lot of people will buy new phones. david: angelo, i just wonder, do you have a price target on this stock? a lot of people say it could go up to $140 per share, 40% increase. what do you say? >> looking target price of $130. we have a strong buy recommendation. what is important to note that company is trading on net cash basis less than eight times.

even with not so stellar numbers we're seeing here today, as well as guidance i think that is largely reflected in there. our multiple is low double-digit multiple i think is more than fair, given the cash generation that the company has here. melissa: jonathan, you want to react to that? what do you think -- >> i would take the exact bear side of angelo's thesis there. there is stock technically is much more likely to go do $70 a share than it is to $130 a share. like you i love the product but there is difference between the stock and a product. a stock is really valuation. look at xerox we talked about earlier. xerox is great example of a successful company. we all learned what a xerox it was but stocks itself never traded at 1970 multiples. that is same thing with apple. it will continue to make money, but as angelo said cash basis. it is not value enough of a value stock and not growth of

enough of a growth stock. i would stay away. melissa: jo, you have more color? >> apple in terms of how much it can sell in the coming quarter, the current quarter. for second quarter apple says it expects revenue of between 50 and $53 billion. that is a miss what the street was looking for. the street wanted 55.7 billion in revenue as the midpoint. you see why the stock is maybe little changed here. that miss is on revenue outlook for the current quarter. also the stronger dollar hurting a lot of companies including apple. certainly putting some pressure on the stock and on the earnings. melissa: yeah. scott martin, do you agree with that, a lot of dollar pressure? >> yeah i do. if jonathan was actually back in chicago, i don't know where he is, it looks pretty nice i by him a high-five. i think he is exactly point to. angelo's point, there is reason apple's evaluation could be compressed. sure, trading eight times post cash but it was 12 last year and 15 before. it is going the wrong direction.

i think about it, apple is overon the other hand. think about your friends, cousins, family members, they probably own apple. everybody seems to own the stock. if undeed hypothetically we're going into slowdown, possibly recession there will be a lot of people running for exits here, meaning a lot of sellers. david: did i hear jo wanting to chime in again? go ahead, jo. >> hey, yeah. looking at profitability what that means going ahead especially for investor out there. apple projecting gross margins are actually going to be between 39 and 39 1/2%. that is below consensus estimate about 40% or at least the street was looking for. combine that with lower revenue outlook plus the slight miss on iphone sales. then potentially weaker growth rate in china, doesn't spell a very rosy picture for apple. melissa: okay. don't move a muscle guys. david? david: we were expecting a 5% move either way depending how

earnings came out. clearly that has not happened. disappointing results, not necessarily affecting the stock in a negative way but keeping it flat from where it ended the day. apple watch meanwhile is not as big of a hit as a lot of folks hoped or expected but new upgrades may make the product sales start ticking. deirdre bolton joins us now with details on potential updates. high, deirdre. >> you have to wait until spring. at least the line from some of our sources, that apple watch will release new product, newly designed, maybe new materials for the band but more of a new operating system. this will encourage developers to come in to make apps are special or function particularly well on the apple watch. but, david, you said it, you were right. this has not been a runaway hit some had expected it to be. but that said, of course still has great consumer interest especially for some of the health and tracking your steps

and monitoring your heartbeat, all the stuff that makes us healthier. david: we'll see what the new bells and whistles are. thank you very much, deirdre. we'll see you at the top of the hour for "risk & reward." melissa: meanwhile the apple car is buckling up for another speed bump. the company's design chief says he is displeadingsed with progress of apple's secretive electric car project. let's bring in gary gastelu, foxnews.com automotive editor. gary, what do you make of the story? >> unconfirmed reports and there is hiring freeze over project titan. we know head of project left. we don't know why. personal reasons. maybe he was sick or not happy with the job he was doing. apple car, mystery of it, excitement around that has kind of passed already. we need to see what they're doing, what they're up to, planning on delivering if anybody will get excited about this as far as the stock is concerned. melissa: although, they're the king of the product. whenever they enter a category, even if they get in there late they are still the ones that,

you know make it fantastic in the end. christina, what are you hearing and what do you think about this? >> yes i'm hearing same thing. mixed reports what is happening with the project. leader is not there. so kind of looks like it is in flux. at the same time they still, they're making a lot of hires at least the last few months. so would seem like an awfully big about face for them to shut down the project. i don't think that is happening but maybe not progressing the way we thought it was. melissa: scott, this is what is demanded by the company. they always have to have something new, incredibly excitings in pipeline. what is better than a car? >> nothing. if you want to buy me one, melissa, i'll take one. we'll trade our cars maybe. here's the thing, when you have trillions in cash on the balance sheet you're expected to do stuff with it. there were rumors they would buy back shares, maybe increase the dividend. didn't do that as far as what i've seen so far. great expectations. maybe content business.

there is a lot of areas they can expand so far we don't see any progress in. melissa: right now apple repurchased 8.63 billion in stock last quarter, just to add that in as we're talking about this. jonathan hoenig, let me ask you how critical the car is to the overall ecoal system. talk about ecosystems other than the car -- >> the car at this point, melissa it's a unicorn. this is one of these billion dollar, multibillion-dollar ideas really yet to come to any fruition. we've sign a lot of private companies certainly valued and called unicorns, seen those valuations start to evaporate quite quickly. apple is not only having a tough time with its projects but projects of this ilk. look at fitbit, tesla, netflix. all technology-minded stocks at or near multi-month lows. not just apple having a tough time, melissa but the environment is having a tough time.

i must say, saw you in the "dictator" last night on netflix, you killed it. melissa: apropos poe of nothing. i appreciate it. david: go back to angelo, apple makes a lot of stockholders very happy, the stock buybacks. a lot of going on in the last quarter. as far as i calculate $14 billion in stock buybacks. lot more aggressive on cash repurchase program. they will generate 150 billion in cash next three years. david: i know they're a cash machine. scott, they say there is too much of that boeing on -- going on.

stock buybacks will increase. values don't always increase on upward basis? >> no, they don't. granted buyback could be holding stock overnight. that could be good here on a market shareholders like. reality everybody is doing that. if you have cash on balance sheet, don't want to put it in r&d and get credit with rates so low you buy it back to make sure owners are happy. melissa: guys, thanks so much. the rest of our panel sticks with us. thanks so much. david. david: back to politics the race for third place. why gop candidates duking it out for the hot spot. plus iranian president meeting with pope francis today. was there a real message beyond the photo-op? details next. ♪

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>> tickets out of the hawkeye state. back in 2008 when john mccain finished fourth here but ended up winning republican nomination. so the candidates are furiously trying to finish here in the top four. marco rubio, for example, is going to spend every day up until the caucuses here in iowa, talking to as many voters as possible. at same time his ground operation is working the phones trying to identify potential supporters. most importantly get them out to the the caucuses on february 1st. plenty of people out there could still be persuaded. listen to these folks outside after donald trump event. >> i'm pretty undecided. i'm leaning toward rubio and i'm looking for a candidate that can wow me. >> we've been to chris at this' events. we've been to cruz's events.

we're still undecided. reporter: more than 30% of the people in most recent polls say they could be persuaded to vote a different way or haven't decided all together. don't count out chris christie. he is well back in the polls but has very powerful support system here. much of the group that backed iowa governor's terry brand stat -- brand stadd. he is part of that group. >> the group that elected terry brand stadd, six times, longest serving governor, is in play here, supporting chris christie. that kind of turnout, appealing to those republicans who support governor branstad, to support governor christie on kinds of things a governor can do and executive can do is really important. reporter: and don't forget about mike huckabee and rick santorum, both are past winners of iowa caucuses. they appeal heavily to evangelicals. if they siphon off evangelicals off ted cruz because they're his

core support, they could have big affect what happens caucus night, john roberts thank you very much. melissa: here to weigh in most like are who will break out of the pack, dan henninger, "wall street journal" editorial page director and fox news contributor. lisa boothe, republican strategist. thanks for joining us. >> hi, melissa. melissa: through that whole thing, lisa is a, i had to wonder what do you get out of that with third place? >> when you think about crowded republican primary field, heading into new hampshire, sought caroline and -- south carolina caucuses and sec primaries on march 4th. john mccain came in fourth and managed to win the nominee. the name of process there are 2074 delegates to the convention. a republican nominee needs about 1236 of those to the nomination. iowa represents 1%.

having a third place finish into new hampshire is not so bad. melissa: speaking of new hampshire, dan, governor chris christie had interesting way of charlesing folks there. listen to this. >> one county has been flooded in the state. one county. that was cape may county. the one county that flooded. i don't know where from all over the state since we have 21 counties where that happened. second, i don't know what you expect me to do? you want me to go down there with a mop? melissa: dan henninger, not very nice. i should have set that up better, asking him what are you doing campaigning here when you have the huge storm going on? >> what do i want me to get my mop bucket? >> this is why we love chris christie. he comes up with lines like that. there is always pushback from chris. you know, new hampshire and iowa, they have a lot in common. we saw at end of john roberts's report there. in both states a lot of people have not made up their mind.

i mean a lot, upward of maybe 50%. those opinions are jumping around as we head into the last week or two in both of those states. at least in iowa, i think it, the question is, win place and show. trump, cruz, rubio, how is that going to shake out? cruz might win. trump, i think could even fall to third place in some scenarios. but boy, over there in new hampshire, it's a real jump ball. christie, bush, rubio, and kasich are all bunched together. they have been running very strong ground games doing very impressive job in those town halls. any one of them could break out. melissa: let me ask you both, who do you think gets out after new hampshire and iowa? you know at that point, or how many people do you think get out, lisa? >> i think it remains to be seen. someone like governor mike huckabee says he doesn't place third in iowa he will get out. i guaranty one of the more

centrist candidates pull out after new hampshire, because if you're polling 1%, 2%, 3%, time to get out to let someone else move forward. melissa: dan, real quick. >> john kasich says if he doesn't come in at least third in new hampshire he is done. jeb bush told us because of the pac money these days a lot of these guys are going to stick it out. melissa: interesting. thanks, guys. david? >> thank you. david: a few other stories on our radar, bizarre ending to breaking story earlier today. investigators found no evidence gunshots were fired at the naval medical center in san diego earlier today. officials are still searching building. it will take them time before they have answers. search for three violent prison escapees in california. police say the fugitives got a 16 hour head start before they noticed they were missing. federal authorities offering up to $50,000 reward for information leading to their kapur. iranian president hassan rouhani paid a visit to

pope francis in effort to boost his image abroad. the pope apparently stressed rouhani of stopping violence in the middle east. iranian president asked for pope francis to pray for him. melissa: coming up, can a borgata, person get fired for gaining weight? you will be surprised at the outcome. when heartburn hits fight back fast tums smoothies starts dissolving the instant it touches your tongue and neutralizes stomach acid at the source tum, tum, tum, tum smoothies! only from tums i don't want to live with the uncertainties of hep c. or wonder whether i should seek treatment.

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the case for the babes is over, new jersey supreme court upholding ruling for the hotel and casino, the company can fire the waitresses if they gain more than 7% of their body weight. melissa: amazing reasoning is that the hotel and casino holds men and women to the same standard. making the policy fair.. david: eboy.

melissa: wow, i first understand, they have certain circumstances for actors, when you are in a role you can't gain or you can. but these are in costume? david: they don't have the same policy for governors, risk risk starts right now. deirdre: apples earnings just out, results speak to all important holiday season, so apple beats on earnings, but it missed on revenue, a poor outlook in iphone sales misses expectations, this is risk "risk & reward" i am deirdre bolton, my colleague is with me, it feels like apple's hyper growth is on pause? reporter: it looks like it is, this is slowest growth rate