it is about over 40% sold short. [closing bell rings] i believe they report earnings thursday. i believe they have much better things coming. i think both of those could be big movers going forward. liz: craig, thank you so much. craig hodges. i can't live without gogo wireless if i'm up in the air. david, melissa, get ready for apple earnings. david: absolutely. they're coming any moment. stocks fight for gains in the final moments. nasdaq turning green as well, making another brand new record close for nasdaq. i'm david asman. melissa: i'm melissa francis. this is "after the bell." we have you covered on all the big market movers but first here is what else we have at this hour. america's most valuable company you out with results this hour. what will apple do with a expected quarter of a trillion dollars in cash, a quarter of a trillion, wow. are people still shelling out their money for new iphones? we'll bring you headlines

everyone will be talking about tomorrow right as they hit. plus democrats have been claiming victory for funding their programs in the spending bill but a fiery budget director mick mulvaney is setting the record straight today. you heard congressman dave brat tell us yesterday a health care vote could come as early as tomorrow. gop whip telling fox tonight, tonight is a big night. david: the dow finally climbing in the final minutes. is up about 35 points. looks like it will settle between 30 and 40 points. markets are waiting for apple earnings. lori rothman on the floor of the new york stock exchange. this is one of those days they can't leave at the stroke of 4:00, can they? >> no. no one is going. usually a mass exodus, david. look at players, big add-ons for late session rally a gain of 35 points. that is is the right direction if you're a bull.

intel benefits from first quarter sales. visa benefiting from rival mastercard with a strong quarter. 3m was gainer. apple hit intraday record. faded off coming after a yesterday session. waiting for big earnings report. look for average iphone sales this is seasonally soft quarter before they unveil new product in the fall. merck beating on profit and sales, boosting outlook. look at april auto sales. this is tough. journal headline, hot streak rapidly cooling for u.s. auto sales, especially for detroit companies. gm and ford sales. gm down 5.%. ford off more than 7%. toyota only automaker benefited. problem, weak demand for trucks and suvs. that led to big record levels since the bailout back in 2009. back to you guys.

david: ford under 11 bucks a share. unbelievable. melissa. melissa: big names driving nasdaq into record territory. todd horowitz from bubba trading.com, james freeman from the "wall street journal." james, are these records in technology making you nervous? you do you he think there is more room here? are they justified? what is your take? >> you can't say stocks are cheap right now. melissa: no. >> look at historical levels with earnings relative to price. this is a great earnings season. we still have very low interest you rate environment. we think of the fed gradually tightening, probably not this week. right now low interest rates, potential of good news that helps companies like apple bring back all the overseas cash, and you you've got a pretty good environment. melissa: todd, looks like stocks have run and sort of dangerous. everything seems to go in their direction especially if you have

good things coming their way. companies are investing what do you think? >> thank you, melissa. markets are way overdone. this is like the '90s. you have for other five stocks pushing market higher every single day. they're shooting off to the moon. we'll see apple will have a big jump after the opening or after the close. you will have facebook tomorrow. i think they're overdone. as an investor you should not worry about it because the markets go up year-over-year but in the short term you you have to be careful because if you're buying here for the first time you might see a nice plunge to the downside before we get a rally. david: meanwhile, setting the record straight. take a listen. >> the dems have been trying to claim victory on this which is i think very strange way to look at bipartisan discussion f you're in bipartisan meeting very unusual for one group to say spiking the football, we won, we killed the other guys.

it doesn't bode well for future discussion is,. david: that was very fiesty budget director mick mulvaney, pushing back at media narrative that democrats whipped republicans silly on the budget. who is right, james? >> he got higher defense spending he wanted, cut in the epa budget. is this conservative budget? do you have big restraint on washington i would love to see, no? david: of course, todd, the president didn't get the wall funding. owe didn't get to cut funding for sanctuary cities. look the way "the washington post." democrat lopsided victory. republicans hopelessly. democrats in the drivers seat. when i hear the media, democrats soundings the sail tune, i think there is something wrong. >> would you expect anything different from the "washington post"? the media situation with them is getting so far out of line. everything is always, the

democrat won, the left won. they're doing this of course you've got a bunch of people back-stabbing the president trying to make sure he doesn't get what he needs to get done. report something not helped him at all from the left. >> david: it is still more money, james, that is bad, we're going in the wrong direction. we need to cut back but we're still expanding. >> keep in mind the president hasn't gotten two big items, tax and health care. that is partof the reason you're seeing the budget you're seeing. he doesn't have the time or inclination to make this a long, drawn out fight right now. melissa: president trump keeping an open mind in order to fund an infrastructure plan and not taking gas tax off the table. gerri willis is in the newsroom with the latest on this one,. gerri. reporter: that's right, melissa. higher gas taxes is the president's idea for higher infrastructure spending. they are paying 1.4 cents for

federal gas taxes and 27-cent a gallon for state taxes. americans for tax reform road and improvements would be paid for without lifting a gas tax. repealing davis-bacon act would give government more flexibility paying workers by dumping laws that require them to pay prevailing wages. according to atr, simply getting rid of the 1931 law would allow the feds to increase number of bridges and miles of roads it builds and repairs by 20%. once more the heritage foundation points out roughly 30% of the highway spending from the gas tax gets allocated to projects with very little to do with the highway system, bike sharing programs and recreational trails. it is become a slush fund they say. now while trump says he is open to boosting gas taxes, the truth is, he is already been beaten to the punch by seven states that raised gas taxes as of january 1st. take a look.

bottom line, making the government more efficient would allow existing tax revenues to go a long way making our nation's bridges and roads safer. back to you. melissa: thank you so much, gerri. good you stuff. todd, james back with us. james, this drives me bananas. when they talk about raising the gas tax, and the waste, here in new york, for example, they use the money for the subways. you're like, okay, the roads are a mess. why don't you use gas tax for what you said you would use it for? so frustrating. >> there is a good argument if you wanted to cut the gas tax, i'm sorry, raise the gas tax, cut taxes on income, investment, that would make a lot of sense economically, tax consumption instead of, instead of income. but, yeah, talking about raising the gas tax to pay for government infrastructure, i think people have a sense at least they get something tangible out of this kind of government spending. melissa: yeah. >> a lot of that money is evident withed. we saw it with the obama estimate lugs program.

talking about 10% or less actually going to the roads and bridges we hoped for. wouldn't sure it would be all that different with trump. melissa: todd, i don't believe president trump is seriously considering this. this has to do with the fact truckers supported him. this is what they want. if you raise the gas tax, lower income tax, taxing consumption it is incredibly regressive. i can't imagine that is popular. rich people barely notice it. people driving to work get hit the hardest. >> we hit highest taxes in illinois than anywhere. i'm used to for that. for trump it's a negotiating ploy to get what he wants. melissa: i agree. >> after he gets what he wants the gas tax will go away. he has to do everything he can because he is not getting overall cooperation from everybody around him. that is really biggest issue this is another negotiating ploy from a businessman who is a president. melissa: "art of the deal" guys,

thank you. good stuff. david: frustrated president trump tweeting out that our government may need a good shut down in september. you south carolina congressman jeff duncan is here to respond to it. where we stand on health care. we hear republicans may be several votes short but we think there may be a vote sooner than you think. melissa: president trump speaking with president vladmir putin for the first time since u.s. missile strike on syria. john bolton on why putin requested this conversation and what was accomplished. david: tech giant apple is out in just moments. we'll get a gauge how the iphone is selling amid one ever consumers biggest gripes that they're too expensive. >> i think they you should start lowering their prices. i think they're still kind of pie in the sky level, too high. they're not only kid on the block. i think they need to realize that. so what else is new? how's your mother? umm..she's doing good.

she needs more care though. she wants to stay in her house. i don't know even where to start with that. first, let's take a look at your financial plan and see what we can do. ok, so we've got... we'll listen. we'll talk. we'll plan. baird. try new flonase sensimistgies. instead of allergy pills. it delivers a gentle mist to help block six key inflammatory substances. most allergy pills only block one. new flonase sensimist.

david: president trump has a possible solution for the mess in washington. he tweeted out a plan we need 60 votes in the senate which are not there. we elect more republican senators in 2018 or change the rules to 51%. our country needs a good, quote, shutdown in september to fix the mess. here now is republican congressman jeff duncan, member of south carolina and the freedom caucus. what you do you think the president said meant by a good shutdown? >> he means a good fight. pledge what we're going to do asking for majority in congress to ask us to give the white house, fight for things on

border wall, he ran on that. defunding sanctuary cities, defunding planned parenthood. addressing spending levels. we're $20 trillion in debt. all that is inclusive. david: none of that was inclusive in the budget deal. that is why i believe you called it crap, which meant, a lot of people meant what did he really mean by that you obviously don't like it. what are you going to do with it? >> i don't like it. democrats are celebrating because they got everything they wanted. even lindsey graham said they got a good deal. david: did they really? mick mulvaney says that is the spin or the press. they didn't get the military spending president wanted there. were cuts here and there. yes he didn't get a wall. he didn't get to cut funding for sanctuary cities. in what other ways do you think the democrats won? >> they defeated president trump in his priorities.

that is one of their biggest celebrations. it is obvious they're celebrating over this. they got more of what they wanted. they didn't agree with the military funding -- david: congressman, are they celebrating or just trying to make up for the fact that the president got a budget plan through, and they wanted him to force it to shut it down, the government? >> i think they're celebrating chuck schumer won on this deal. that will set the tone for future negotiations, whether infrastructure or whether its debt ceiling coming up or the september bill, chuck schumer is in the drivers seat because of 60 vote threshold in the senate. that is probably what they're celebrating going forward. david: well, there is somebody who agrees with you. rush limbaugh, i wasistening to him earlier today. he said if this is what we get, paraphrasing him, forgive me, rush, he said essentially if this is what we get with a republican president and a republican congress, why vote republican? to which you say what? >> well, i agree with him. we asked america to give us the majority in the house, majority

in the senate and give us the white house which they did. america is frustrated when they see this budget deal come forward and priorities we talked about. the promises, pledges we made to the american people were abandoned in this deal. yeah we got some good things in there. we're plussing up the military. we're increasing border security but not building a wall. physical barriers are what president trump talked about. we promised to defund planned parenthood. we didn't do anything about that. i think rush limbaugh is right on that. david: that frustrated budget deal, what kind of hope do you have for passage of health care reform bill? >> i do have hope we pass health care reform because we're talking about reconciliation. david: this week do you think it will happen? that is a question for leadership. i am a yes. i got to a yes after work, blood and tears over this deal. i applaud mark meadows, freedom caucus making that bill a much better bill.

it doesn't repeal obamacare. it doesn't do a lot of things we promised american people we would do. we're constrained by reconciliation, i think the american people are starting to understand that. the byrd rule, they are constraining what the house can do with the repeal bill. we'll roll back regulations and rules, 6,000 pages at hhs with secretary price and his commitment. we'll work on free market reform, association health care plan, geico model, allowing insurance to be purchased across state lines. that is where free market comes in and legislation. david: competition is good. congressman, thank you for being here. >> god bless. melissa: working to save the reputation. ceos of united and american airlines in the hot seat on capitol hillollowing widespread outrage over how they treat some passengers. that is next. plus apple set to release earnings results any minute. what to expect from the tech giant and quarter after trillion dollars in cash. will consumers still buy

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melissa: the chiefs of united and american airlines testifying before the house transportation committee on capitol hill over consumer practices after a stripping of controversies concerning both airlines including the one you're watching right now involving united passenger dr. david dao who was forcibly removed from this one. adam spiro is he. reporter: 800 million people flew in the united states, felt like everydy flew exactly at the same time on one plan. house committee on transportation and infrastructure unloaded airline passengers collective frustration and anger on airline executives.

dr. david dao was bloodied and injured when airport security forcibly removed him from his seat on united express. united airlines david munoz said house committee that the airline committed a serious breach of public trust. 40,000 people like dr. dao were bumped against their will because of overbooking. the airlines are raising compensation limits to entice a passenger to give up their seat, in some cases as much as 10,000 bucks. they will still not stop overbook being. only southwest airlines has a no overbooking policy. they let airlines check bags for free and don't lose money. >> just a couple things. we appreciate your business in corpus christie by the way. we try to make policies that make sense for the customer. we feel like if you're going to travel, makes sense if you can bring your clothes along. reporter: you recall, melissa, that other airlines started charging for baggage fees to pay

for high fuel prices years ago. fuel prices have dropped. none of the airline sicktives would not stop charging for bags. only southwest where two bags fly for free. free peanuts on other airlines. melissa: amazing. this is what it comes down to. adam shapiro, thank you. david: proving fake news really exists at least according to president trump, the trump administration is once again lashing out at cnn why the network is sensorring the president's late -- censoring the president's latest ad. melissa: why people will never make a switch to the competitionthe numbers are next. >> android, home screen is goofy. apple is lot more simple but high-tech as well. whfight back fastts, with tums smoothies. it starts dissolving the instant it touches your tongue. and neutralizes stomach acid at the source. ♪ tum -tum -tum -tum smoothies! only from tums

david: breaking news and this is it, apple set to release second quarter results any moment. no earning more anticipated than this one. very high expectations for the tech giant. investors hoping for better than expected iphone sales and future growth drivers. taking us through all the big headlines, fox business's cheryl casone, lance ulanoff, mashable chief correspondent there, kevin kelly, recon capital chief investment officer. bring us through what we expect, cheryl? >> we're looking for the estimate. earnings per share we have $2.02 per share. estimate, earnings, 53.02.

will we see up tick for iphone sales? this is normally a weaker quarter for apple and update from china and looking for new products. this is a lot of buzz for products they could hint at. maybe something on apple car. we are looking for numbers. shut get them in the next couple minutes. david: lance, talk about what apple has in the portfolio coming up. we know the iphone 8 is coming up soon. what else besides that will investors look at? >> we should talk for a second about the iphone 8, there is big rumors getting pushed out beyond the fall into next year. that would be a big problem. there would still be new iphones this year. iphone 7 s is a possibility. computers they have imac this year. next year the mac pro. they won't realize that. ipad not much to talk about. david: they have services. they are focusing a lot of attention on services. they're getting a lot of money from them. >> they have icloud. and they have itunes and the

apple store which is a big moneymaker. in fact every quarter we see services continues to be a bigger and bigger piece what they can make. they can depend on that. it is an annuity whether they get into the area of content creation television shows where they charge people to watch those things. david: if netflix can do it why not apple? kevin what about the gdp slowdown? we have minuscule growth number could that affect sales? >> it could affect sales. analysts are expecting a bump up as refresh cycle started to take hold. they were expecting it for the 7. everybody is talking about it now. we'll see if that impacts the sales. most sales are focused on china and india. they're looking to a production plant in india. they where they need next leg of growth to maintain the status in that duopoly. they're getting severe pressure from other manufacturers especially in asia. they need to combat that googl is doing very well with the

droid form. david: we want to alert viewers we are getting numbers out. the stock is not moving tremendously based on what we have, what we know now. kevin, we should mention by the way, last year apple reported three straight quarter of sales declines. so the market is already kind of absorbed the possibility of something like that. cheryl casone has some of the numbers. let's go to cheryl now. >> i don't have a overall revenue number but they did beat on earnings per share. right now the earnings per share coming in at 2.10. the estimate was $2.02 at this point. breaking down iphone revenues at 35.2 billion. still looking for overall revenue number. iphone you unit sales for second quarter, 50.8 million, that is not a bad million. but the stock looking through the numbers is down 1 1/2%. we're looking into the stock why the pressure. some might be china. melissa: cheryl, thank you.

>> revenue was a little bit light, guys. revenue was a overall a little bit light. melissa: go to lance and kelly. what i see the iphone number there that is also a miss. she said 50.8 and we were looking for more than that, right? iphone sales were to rise 52 million in the quarter up from 51.2 a year ago. that would be decline, lance? what you do you think of that? >> they had really strong quarter for the iphone 7. i think they were in the 70 million change. this is always a down quarter for iphone sales and we have the looming iphone 8 potentially coming out this year. that is going to depress some sales on iphone 7 side. people are waiting for something truly special because it is the 10-year anniversary of the device. melissa: kevin, service revenue is down 18%. that is not good at all. >> that is not good at all especially missing two million

of sales on your devices over 66% of your revenue.cern. i'm interested to hear what they say on the gross margin side because they guided between 38 to 39. they need to keep that to continue growth going. the service number is bad. melissa: china is down, cheryl. do you have any information on that? >> sorry, melissa, couldn't hear you, folks in my ear. here is what i'm seeing. here is the issue. iphone sales, melissa, you hit it, that is what pressured the stock to the downside was that miss. we're looking for revenue forecast for the third quarter that is coming in a little bit light. not only do they have a slowdown for the iphone and ipad, i want to say ipad revenue was down 12%. that was another hit to the earnings. that lighter forecast for iphone sales for third quarter along with revenue coming in, 52.90 billion which is okay. none of this is really good for apple. a lot of the pressure was on the iphone sales. that was a miss as you said,

melissa. that was a problem. melissa: good stuff. lance, i'm seeing performance in china down 14%. that is a market they have been counng on to continue to expand. >> yeah but it is actually not a new story. i think they have been struggling in china for a while. they looked to brazil, look to india, other international market to really propel growth. i think it is just a tough market. they have got competition from really low-priced android phones are winning there, for whatever reason. i just, you know, they may not be able to solve that but they will find growth elsewhere. melissa: cheryl has a few more details for us. >> it is -- give you good news if you own apple right now. they will increase the dividend by 10 1/2%. 10 1/2% increase on dividend. if you own the stock i don't want to completely depress you with the numbers. there you go. melissa: okay. david: kevin, we also have news they will do share repurchases of $210 billion.

that is up from $175 billion. a lot of capital pay back to investors. >> this is consistent with their platform and plan because they're generating so much cash. shareholders want to see them put that to good news especially returning it to their pocket. another big concern is what will they do generating more organic sales going forward? we haven't seen a tv they should have made a bid for minority share in hulu. they could have bought arm holdings to protect their gross margins on blue-chips boeing forward. david: 90% of that is overseas. that is about $230 billion. kevin, plays into the trump plan if he gets the tax plan passed, they may be able to repatriate, bring that money back home. >> they may want to bring some of that back home give the fact that growing sales will be over there. they could use it to build more plants over there as well as to

acquire maybe some additional infrastructure that they need. as well as they have already done bond issuances over there. they may not want to pay a 10%, 15% tax rate because they could issue cheap money. that is what they have done. they have issued bonds in foreign currencies to fund this buyback and increase their dividend. melissa: future of innovation and investors keeping a close eye on any hints of apple's much anticipated 10th anniversariry ipne expected this fall but what are consumers looking for when it comes to apple in their products? we hit the street to find out. >> what is your biggest complaint about apple? >> i don't think i have one. >> i don't have any complaint. >> icloud drive is quite terrible. >> i think they should start lowering their price. >> what do you expect next from apple? >> some innovation. >> i don't really expect much. i will probably still get it. >> would you say you're an apple product person for life? >> for life, yes i am. >> my whole life is unified with apple. >> i can't be switching off this

will be probably buried with me. melissa: i mean they're so did indicated. lance, last night my husband said i would g dell next time. i said you're insane. when we buy something else we end up not using it. we try to resist. we can't in my house. what do you think? >> ecosystem, one device you have a phone, a tablet, you have apple tv. melissa: we do. >> and your mac, all of that works together. there is benefit of that. there is benefit of that from other platforms like microsoft has. i think microsoft lost because it doesn't have the mobile platform. think about where it starts. it starts with the phone. apple has tremendous market share on the iphone in the u.s. and so once you got that, you start to look at other apple products. but, they are excellent products. that's the fact of matter, reviewed all these things, they are really good products. no matter what i look at all numbers, most of the stuff is

down, i'm not particular surprised because that is the way the quarter goes. i am is little surprised services not the thing that pumps everything up. it was better year-over-year but had a quarterly drop. people take apple to task when they love the product and -- melissa: good point. thanks very very much. cheryl has a little more. >> i do. greater china revenue down 14%. looking at another bright spot i was trying to find for our viewers. mac revenue, mac computer revenue up 14%. the bigger pieces of equipment they sell was up. ipad revenue was down about 12%. china was a pressure point as well. we're thinking we're getting numbers out of china. of to give you a broader sense, big, big story obviously is the third quarter forecast for revenue coming in light. if you look at iphone sales, the pressure on iphone sales not living up to analyst expectations. international revenue for this

quarter, a little over 65%. that is good but need to see numbers go higher. china is a big problem with the story. they are under competitive issues in china. melissa: cheryl, thank you. david? david: world economy is slowing down. that is the problem. why we need tax cuts! escalating tensions with north korea. the white house grappling with how to deal the growing nuclear threat. why the president is considering meeting with kim jong-un. president trump picked up the phone for another world leader, president vladmir putin. he is all over the place these days. what this means for the future of u.s.-russia relations. next ambassador john bolton is here to sound off. ♪

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melissa: a new cold war. president trump speaking by phone with russian president vladmir putin, the first time they have spoken since the u.s. launched launched a missile strike against a syrian airbase.

the president and putin on the same page they say regarding syria. the whoo -- white house saying that this suffering in syria has gone on too long and all parties must do everything they can to end the violence. here is former john bolton, former u.s. ambassador to the u.n., senior fellow at american enterprise institute, fox news contributor. welcome. what do you make of that statement? >> good to be with you. it is certainly a you true statement but i wouldn't hold my breath that russia will do anything to change it. the fact that assad is still in power is due largely to the support russia and iran have given the assad regime ever since the arab spring in 2011. that isn't going to change. this is one of the big problems of obama administration. kept listening to things russia was saying if they were willing to dump assad and see opposition take power. that is not russia's intention and not russia's intention now.

melissa: their goal, flip that around. their goal is to maintain power in the region. is there a way to do that, not necessarily have assad in place? the u.s.'s objective is to stop the terrible inhuman carnage going around. is there a way everybody gets what they want and putin still continue to things he is joining in the region and strong hold under a different leader? >> no, i don't think so. indputin they built a airspace minutes from syria's border. the let's be clear. assad regime is piece in larger strategic package put together by iran. iran, the baghdad government, which under shia control is dominated by the ayatollahs in tehran, iran, iraq, assad regime in syria and hezbollah in lebano they're preparing for the next

struggle. once isis is eliminated sooner rather than later at least its physical caliphate in the region if not worldwide, i think they're looking what comes next. that is why iran's support for assad is so critical as well. melissa: yeah. meanwhile new threats from north korea. the asian country warning the world it is on a brink of nuclear war. they say a training dill is an act of provocation. as president trump says he would meet with kim jong-un, telling him under the right circumstance i would absolutely meet with him. most political people would never say that i'm telling you under the right circumstance i would meet with him. what is the response to that? >> the right circumstances can cover a lot of ground. the way political people talk about, i'm guessing this is what president had in mind, first you have a long set of negotiations, then you reach agreement with north korea. then the two presidents meet. that is what the clinton administration was trying to do

toward the end after they had sign the agreed framework. madeleine albright went to pongyang. that is what obama wanted to do with the supreme leader in iran after the iran nuclear deal. i think trump may be talking about something very different. there is no agreement at all, he talks to kim jong-un directly where he says wise up, get rid of nuclear weapons, or there will be consequences. that is my dream the way you talk to the north korean dictator. melissa: is that a possibility? can you imagine that happening? >> i don't think the north koreans would agree with that but there is another aspect to this. i don't think north korea will voluntarily give up their nuclear weapons program. i think you have to convince chinese reunification of the peninsula is in their interest. we're in the a dangerous point. because of progress north korea made putting nuclear warhead on a ballistic missile that could hit us, the president said clearly the military option is

onhe table. when you're approaching that kind of decision, you want to say i'm preped to meet with fellow anywhere in the world to avoid that. i don't think it is going to happen. trump is trying to show, i'm not looking for a military solution. it is the last resort. this is proof of that. melissa: abs you absolutely. he wrote a very compelling article along those lines. ambassador, thanks for coming on. appreciate your time. >> glad to do it. david: we have more breaking news on apple. the tech giant down 1 1/2% after hours. the company reporting a surprise fall in iphone sales. maybe related to gdp number going down. indicating customers are waiting to buy hotly anticipated 10th anniversary iphone, the iphone 8. reporting a boost in capital return program by $50 billion, raising its quarterly dividend also by 10.5%. it is not helping after hours. >> state department issuing a travel alert for americans traveling to europe stating recently widely reported

incidents in france and russia, sweden and the united kingdom demonstrate that the islamic state and their affiliates have the ability to plan and execute terrorist attacks in europe. quote, u.s. citizens should always be alert to the possibility that terrorist sympathizers or self-rad al -- radicalized extremists may conduct attacks with little or no warnings. david: we have had some americans hurt in those attacks. that is good warning. as they work to stop illegal immigration, the democratic party chair is taking a hit at the president and pushing a very different narrative. trump versus the media. why the trump team is slamming one major network for refusing to air a positive advertisement for the president. the fallout is next. what if technology gave us the power to turn this enemy into an ally? microsoft and its partners are using smart traps to capture mosquitoes and sequence their dna to fight disease.

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melissa: want to give you another look at apple, the big story of the day. downtown 1 and 3/4. revenue down 14% in china, following surprise miss on iphone sales. there was increase in average selling price for the phone. by far apple's biggest product helped drive total revenue to 52.9 billion. david: it will be up again. no time. was democratic party out of touch? dnc chairman tom perez blasting president trump and making bold comments about illegal immigrants. take a listen. >> our most important power is not the mister in the white house, i can't even mention his name, our most important power is the power of all of you. no human being is illegal. we must treat everyone with dignity. david: here now to he react to all this, kirsten hag land,

conservative political commentator, brad woodhouse, former dnc communications director. i want to go to you first. not just this, illegal immigration thing. perez wants to ban pro-life democrats running for office. shouldn't he expand the tent? isn't that the message of the last election instead of shrinking fit. >> look i think the democratic party is expanding the tent. david: not if you're keeping out pro-life democrats. >> i think it is every single day. democrats got more votes in the last presidential election than republicans. we grew the vote over the previous election of barack obama. so i think we're constantly trying to grow the party. and trying to attract more people to the party. david: kirsten, hold on a second. kirsten when you're of showing out one section of the democratic party, used to be they welcomed pro-lifers in. that wasn't on the democratic platform you but perez is now shutting him out. >> absolutely. democrats have to figure out what to do with voters who voted twice for president barack obama, then switched to

trump in 2016. the fact here is that tom perez knows that this kind of language, him pretending to sound like bernie sanders is good for fund-raising for democrats. exact numbers haven't come out yeou but they haveeen raising millions. you saw that just two million raised online for jon ossoff in georgia. that plays well for hardcore liberal base. they have to find middle voters. 2% of the americans think democrats rut off touch. 10 more point than trump. david: president trump's re-election campaign slamming cnn for refusing to air an ad appraising the president-elect's first 100 days in office. look at ad. >> donald trump sworn in as president 100 days ago. america rarely seen such success. you wouldn't know it from watching the news. america is winning and president trump is making america great again. >> i'm donald trump and i approved this message.

david: kirsten, only took a lesson, fake news label. that is why cnn banned the ad. what do you think? >> any other news network would do same thing if their anchors were branded fake news. donald trump speaks directly through the american people through twitter. that is his target audience. i don't think this is big stink. people he is speaking to will see the ad and follow him on twitter. david: brad, quick last word. >> david, this was amateur hour. this ad has been pulled from the air because it violated defense department rules showing an active duty military officer. david: defense department rules? >> his political team doesn't even know how to put ads on the air. total amateur hour over there. david: i didn't know defense department rules. that is new one on me. i appreciate you being here. you too, kristen. melissa: so in the united states anarchists flooded the streets but overin cuba one man risked interrupting a communist parade to wave an american flag.

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david: the number we've been waiting for, apple's big pile of cash. melissa: unbelievable. david: investors have been watching it to see what apple is going to do if trump administration gets that tax plan to repatriate that money back home. melissa: can you imagine what that would do? good stuff. dragged away for waving the american flag, a protestor disrupting cuba's annual parade on may day. david: he was holding stars and swipes above his head, he was carried away as guards shouted long live raul. raul castro who was watching. people think they are doing a

big thing am if they burn the american flag here, that guy is not going to see the light of day, i guarantee for months, that is an act of amazing bravery. >> amazing. melissa: all right, that does it for us, "risk & reward" starts right now. liz: america's most valuable company, seeing its shares dropping after hitting record highs, it is selling fewer iphones than expected. but they are seeing biggest year-over-year revenue gain in a year and a half, as apple being attack by liberals for quote, not paying its pair share. by keeping about $2 30 billion bucks overseas to avoid taxes. >> and rioters are not just attacking business and properties, they are targeting and attacking police