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tv   FBN AM  FOX Business  May 2, 2018 5:00am-6:00am EDT

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children their expectations might get too high. but i think we're okay. dr. gorka thanks for being with us. thanks for being with us. >> i think every analyst over the last few weeks has been lumbering numbers and the numbers weren't that bad. for the third quarter, everybody was lowering numbers and it was really better than expected. gerri: apple stock set to soar after crashing lowered expectations for sales and profits and announcing a $100 billion talk buyback. that is the biggest in u.s. corporate history. cheryl: well, that apple move could support the dow after the index. the glasses yesterday. down 64 points yesterday. gerri: investors waiting for a federal reserve event later
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today and tesla earnings "after the bell." the u.s. stock market futures looking higher. the dow jones industrial average of 16, s&p f4, nasdaq up 24. cheryl: all about apple. a rally in technology stocks, helping open higher. the dax up more than 1% right now. gerri: amazing. hong kong and south korea the biggest losers they are. all four indexes in the red. cheryl: and with facebook under fire for privacy. would you trust them with the details of your love life? "fbn:am" starts right now. ♪ gerri: and it is 5:01 a.m. in new york then went taken them a second. good morning i'm gerri willis in for lauren simonetti. cheryl: good morning. i'm cheryl casone.
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i'm going to say no, i'm not going to trust my dating life to facebook. gerri: from cambridge analytic to take a nap spirit trying to a great story later on. apple looking at the stock right now almost 3% heading higher after the latest earnings and revenue crush the estimates. apple boosting it dividend and stock buyback program in raising revenue guidance for the current quarter. gerri: more in apple's results from our own susan lee. >> analysts are lowering expectations heading into the earnings are work hard if they may have had iphone's tens or acts being sold in the quarter because they're just too expensive. apple does as that they dedicated the past nine quarters that is coming out ahead of next
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week patients with more profit and revenue in the past three months in a major announcement moving the stock in the after-hours returns to shareholders. that means $100 billion. i share in the market means the value of a stock actually goes. 16% boost in dividends. the market has been expecting some sort of cash giveaway. apple has a huge amount of it. $269 billion overseas with a lower tax rate to bring money back to the country thanks to the new tax plan. the question was how much money would apple actually bring back. also, we may have had iphone saturation. apple looking to move away from just been a hardware company. services like apple pay, apple music and the ipad crew 30% making more money than anticipated in the last three. apple trying to figure out a way to make money with more people
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already owning a smartphone. back to you. gerri: tesla set to report its first-quarter results "after the bell." analysts expect a lot again. $3.50 per share on revenue of three-point to billion. model preproduction has ramped up this week, but that assured the company's production target. tesla wants 5000 model threes by the end of june. elon musk company has never managed in annual profits so far. take a look at this marginally so in the premarket. cheryl: turning our attention to facebook. mark zuckerberg unveiling new features including it take a nap as the company tries to move past the recent privacy scandal. gerri: fox news james annan has
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more. >> what happened with cambridge analytic. >> taken the stage tuesday for the social media giants annual developers conference. election meddling issues, fake news problems are news problems and ongoing data privacy scandal's impact 7 million users. >> we are currently in the process of investigating every single app that have access to a large amount of people's information. >> several new features including help you access whose accessing your profile and lets you watch video and chat with your friends. >> let's say that your friend is testifying in congress. [cheers and applause] for example. nigel beale to bring your friends together can laugh together and you can cry together. >> the biggest announcement, a
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dating feature. >> if you want you can make a dating profile for building real long-term relationships. not just cookouts. >> the company which owns tender keep it in match.com losing more than 20% on the news. meanwhile, british lawmakers not showing zuckerberg much love thing they are prepared to order him to answer questions over the data privacy scandal. louis james annan and fox news. >> take a look at this chart. shares of match group under match.com plunged yesterday as zuckerberg announced the new dating feature. facebook stock was up more than 1% yesterday. gerri: shares that snap fallen sharply in disappointing earnings report. good morning, tracee carrasco. >> good morning.
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shares of snap fell after missing expectations for zinke numbers. revenue users. that chat hasn't been able to recover after the redesign turned off long-term users and advertisers. they acknowledged that the new design her results but are making many changes if they stick with the plan to keep content from friends separate from other pressures which they hope boosts growth in the long run. cheryl: kettle one is cutting the calories and also the alcohol in their vodka. is that right? >> this is an interesting move because life may be more when it comes to alcohol at least for some drinkers. launching 30% alcohol. it will be called kettle one botanical because it doesn't meet the definition of bartender regulations. it will be sold as a drink made with vodka. gerri: i thought vodka was
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already low-calorie. a new thing i guess. >> may be less of a hangover. gerri: i love it. budweiser has a revolutionary new all about george washington. the excited about this. >> this is interesting. budweiser unveiling the freedom reserve are a blogger by recipe written a george washington. he wrote the recipe to make small in his personal military journal around the 1757. here's the best part. the limited-edition will be buried by budweiser's own veterans whose signatures will be displayed on each of the vintage bottles in one client can spirit a portion of the proceeds will go towards a nonprofit group providing educational scholarships to military families. that is sold now through september 30th. cheryl: a great group, done some work at seven in the past.
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true thrill of the history in it and i love the fact using veterans. cheryl: willacy tracee and just a little bit. xerox ceo jeff jacobs and most of the company's board stepping down at the lawsuit brought by carl icahn in berlin defendant. they won a court order to temporary block a deal with fuji film holdings. they hold 15% of xerox. shares of the company are up about 8% so far this year. powered the board. gerri: lowered exit patients with sales of the iphone 10. we will ask gary b. smith. a nightmare roller coaster ride in japan. what went wrong? look at these pictures. u.s. stock index futures of 41, and the nasdaq up 42. you are watching "fbn:am."
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[music] [music] cheryl: welcome back. let's get you caught up on what's happening now. the can of features on your
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wednesday. earnings season really not. the dow up 45 in the premarket. s&p f6, nasdaq up 32 and a quarter. any country extend from new metal tariffs will still face quotas. peter navarro says it's a matter of national security. the decision coming after president trump was on imposing steel and aluminum tariffs on the european union, canada and mexico. u.s. ambassador to the u.n. nikki haley is taking names at a newly released report on voting records found that member states voted with the u.s. 31% of the time last year and that is down 10% from the year prior. reacting to that report, it is not an acceptable return of the united states investment and suggest this could factor into aid decisions. secretary of state mike pompeo receiving a warm welcome on his first day at the state department. he told hundreds of diplomats he would work to restore morale at
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the department and help get his swagger back. pompeo says president trump will visit the state department for the first time tomorrow for the swearing-in. the programming note for you. maria bartiromo will be interviewing secretary of state condoleezza rice said today 7:30 a.m. eastern time on "mornings with maria." gerri: apple posting stronger-than-expected earnings for its latest quarter as we've been telling you. analysts have lowered expectations about slowing iphone sales grew picketing the president gary b. smith is joining us now. i want to get to this conversation about services and a psychic to the first i want to talk about results overall which are just on fire. so many concerns for traders and investors walking up to this. in the end wayside just crushing expectations driving smartphone of 10%, profit 25% higher. 100 billion in buybacks and this
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is bigger than a bike market cap. is the stock koine hitting new highs? >> i do. i think this story with apple is as you point out not only a hardware company obviously with the iphone, the ipad, the ipad, all of their eye stuff. more importantly, they are transitioning to become a services company. 270 million is the number of subscribers they have across all their services. the apple pay, the app store, didn't you say. that number was only 100 million a year ago. cheryl: that is a mere trickle. pretty impressive. the handsets of the grew by 3%. tim cook and company were all over this talking about the
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conference call which is really important to eps and revenue growth. >> it is right now. it's what they want to look like in five, 10 years were services 50, 60% of their revenue then it's a great story. they are kind of like ibm was back in the 80s. the tax services but they were still a mainframe company. then it's a little disappointing. a big potential that the hardware in all the sales that were tamp down in china and overseas. otherwise they do risk becoming a dinosaur. >> amazon, facebook, google. average report is phenomenal.
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you say the real tech stocks to watch today is actually tough love. why? >> first of all is the biggest thing i think announcing today. it is not so much tesla. they haven't made a profit like forever. what they are doing on pushing the boundaries on all the technological innovation. he's got a stand in everything from robotics to artificial intelligence to the whole solar thing. it is really what they are looking for is announcements. can the company make a profit without the help of the government? i'm not so sure. it's an exciting story. >> it's an exciting story but will they ever be able to execute? elon musk has this great big wide-ranging vision. he sees all kinds of things happening. he wanted a.i. in the production line. he wanted to produce those cars with robots. you have to retrench on that.
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can you make these things happen? is he a visionary that can make products and turn them around for americans? >> i think he can, but only a few partners with the nuts and bolts in this case car company. car sales are all about feet on the ground and distribution. here i live in the sleepy little bureau beach. it's very difficult to go out and buy a tesla, but i can go out and buy a chrysler, chevy, just by going to a dealership. that's what they need in order for tesla to succeed. if it came up in that area with the general motors or ford or whatever, on their own it's going to be difficult. transfer has got to tell you the sleepy little bureau beach looks really good this morning. thank you so much. trained to think he would trade us for the day? gerri: i would go there. i'd volunteer. cheryl: looks like summer is
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finally here. but so are the bugs are details on a new warning about a threat from those annoying insects. speaking of summer, it will feel like summer in the northeast today, but there's some trouble in other parts of the country to tell you about. janice dean's forecast coming out. it's all about apple today, but certainly the dow looking higher up 42 points. nasdaq up 31. we will be right back. ♪ into retirement... and a little nervous. but not so much about what market volatility may do to their retirement savings.
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and so is one pesky problem, bugs. according to the cdc, the number of americans getting sick from bug bites has tripled in the last decade. west nile virus, lyme disease and lyme disease in the peak of everest despite global temperatures and get this, shorter winters. this winter anything but short. advising the public to stock up on bug spray and.net this summer when you're outside. gerri: i have an entire selection of bug spray. last week were complaining it's too cold, but will they be complaining today that it's too hot? cheryl: janice dean is here and she's definitely sick of hearing about complaints. >> you can't complain about the warm temperatures. you just can't. the problem is along with the warmer temperatures come the severe weather across the central u.s. 90 in dallas behind as that's where we have the very separate
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cold front. that is where we are seeing potential for strong saviors torn. 21 reports of tornadoes across the heartland today and even worse scenario. widespread tornado threat unfortunately. you see that low coming out of the rockies. a lot of were of moisture. this is the time of year we see that damaging winds and large dangerous damaging tornadoes. the threat extends from the big bang towards the great lakes with moderate risk here for tornadoes. that's going to be a big deal not only tonight, but into tomorrow, ladies. a three day will have to monitor. know what to do if there's a watch or warning in your area. tornado season is upon us and will of course enjoy this temperatures the northeast as well. train to such a mixed bag for the country this morning. thank you so much. gerri: coming up the guitars are played by a who's who of rock
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and rollers including led zeppelin's jimmy page. ♪ good way to start your morning. legendary guitar make her gibson facing serious financial problems. here's the story and i want to hear. barely their short shorts. they are in social media. you won't believe how much they cost. cheryl: those are horrible. gerri: u.s. features higher here. s&p up five, nasdaq up 31. good-looking day. you are watching "fbn:am." ♪ st food drive thru lane. but what a powerful life lesson.
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>> becoming an instruction investigation rather than a rush
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investigation. mueller know something we don't know. cheryl: special counsel robert mueller -- the investigation may be reaching beyond the russia procured a live report on the latest development moments away. >> supporting the dow after the index. the dow ended down 64 points. >> also waiting for a federal reserve yesterday. tesla earnings "after the bell." taking a look at u.s. stock futures right now. dow 36, s&p up four and three quarters, nasdaq up 31. in europe a rally in tech stocks firing at the european indexes opening higher right now. take a look on the green. the ftse comment cac and the dax up 154. asia stocks fall lower with hong kong and south korea. a big loser. cheryl: and would you wear this?
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gerri: no. not even on halloween. cheryl: say hello to extreme cutout jeans. social media has a lot to say about this instead of me. "fbn:am" continues right now. well, 5:30 a.m. in new york. wednesday, may 2nd. good morning i'm cheryl casone. gerri: i'm gerri willis in for lauren simonetti. lots of bad clothing. important is that the showdown brewing between special counsel robert mueller and president translators. considering a subpoena to get the president to talk. all of this as gop lawmakers threatened to impeach rod rosenstein.
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cheryl: todd pyro joins us to break it all down. >> good morning. such a busy morning as they all are these days. telling president trump's legal team he could subpoena the president to appear before a grand jury of refuses the interview. the threat from a march meeting explained by trumps attorney john dowd. admitted speed of having answered the interview request. the latest risk of the day after fox news obtained a list of questions that trumps legal team believes mueller wants to ask. possible questions cover interactions with key figures in the russia saga, james comey, jeff sessions, michael cullen along with topics including a moscow real estate deal, and begins with vladimir putin enemy back channel setup by jared kushner to talk to russia before the inauguration. not happy with the late reading so disgraceful that questions concerning the russian witch hunt were leaked to the media. no questions on collusion. i see you have a made up for a
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crab collusion that never existed investigation with illegally leaked classified information. nice. dow denies he is weaker but pretty skeptical because they are and have heroic role. dismissing reports that house republicans are articles of impeachment against him. >> there have been people who have been making threats privately and publicly against me for quite some time and they should understand by now the department of justice will do what is required by the rule of law in any kind of threat that anybody makes are not can affect way we do our job. >> a group of gop lawmakers that i mark meadows reportedly drafted eight articles of impeachment against rosenstein. you know they're going to be twisting the story over the next 24 hours. we'll see what happens.
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cheryl: let's keep talking about this. political commentator erik kramer. good morning. i guess we should start here with rod rosenstein. he definitely was pushing back against any indications especially from the house freedom caucus that he should step aside the impeachment letter that's been circulated around with no names. basically back off. do you think he should resign in the middle of all of this? some accountability to any investigation when it has such a major ramifications on our elected processes, on our public officials. i mean, i think the problem is that the investigation so far has been that a lot of information has been revealed to the public by way of weeks, very clear in conflict information. it's hard to know what's been going on.
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the rosenstein saga, things in a conflict between congress and inquiries they sent to rosenstein. i think that so far polling has shown that the public still wants a kind of less harsh approach to it. but i think we will see exactly how they continue. cheryl: obviously his relationship with congress is incredibly contentious. they just opened our doors to allow congress to comment on this tour files. he's worried about leaks. let's talk about mueller then. the investigation yesterday confirming the list of questions he would be asking the president. john dowd, his former attorney
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told "the associated press" that there is a possibility of a subpoena coming down and do you think this is likely? do you think you if a subpoena if he doesn't voluntarily talked to mueller? >> of president trump doesn't voluntarily talked to mueller it would be likely. it is no clear precedent in the investigations like this. the clinton saga but the case law. i don't think it would be that helpful to mueller's investigation. it would be a very big escalation however. cheryl: what are they looking for? one of the questions we found yesterday was mueller was asking
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what discussions did trump have regarding any meeting with mr. putin? those are directly related to this president trump in this campaign colluded with russia. mueller is still on track of things. >> a tough part of a special counsel investigation as we've seen in the past is your difficulty winding down until they find them anything similar investigation has found a few so far. manafort, general flynn, et cetera, the affairs that are involved. i think that it remains really uncertain because the mueller team has not publicly said anything essentially beyond the leaked documents the past year. it is possible he is moving to obstruction which would open up a whole another can of worms. cheryl: that could be a whole another can of worms is right. thank you for joining us this morning. appreciate it.
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gerri: self driving army tanks. could that happen? could it come sooner than you think? cheryl: tracee carrasco joining us with joining us with more on that and other news this morning. >> yes, good morning. what goober, tesla, weibel in a rush to get their self driving cars on the road first. the government may beat them all. the u.s. army will have self driving vehicles operating on the battlefield long before there on the streets and highways. the high risk when driving into 52% of all battlefield casualties are caught when soldiers are delivering food or other supplies. cheryl: a driverless car isn't going to think of it driverless tank. major guitar maker is struggling this is something that was dead.
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the company that makes gibson guitars filed for chapter 11 bankruptcy protection because of what it calls a devastating financial fall. the company has at least $100 million in debt. gibson is planning to liquidate its consumer electronics business in the rear but as its audio and musical is that businesses. cheryl: an american icon that company hate to see it go. we have to get chewing on a fashion conversation talking about it. what is going on? >> use the term genes very loosely. los angeles-based denim brand selling extreme cutout jeans. essentially these are just these relaxed fit jeans have belt loops and zipper pocket, but as you saw, be very little to the imagination come especially the back was completely left out then. the price tag for the $168, the
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reaction online has been produced on a one person said airport inspection should be super easy. >> at least these pockets have jeans. cheryl: the other days you could wear them i'm thinking is the beach? thank you very much. well, facebook introducing a dating feature as they try to move into your love life and pass that privacy scandal. a global branding expert to talk about the latest move from them. plus a terrifying moment. why do people hang upside down in midair 100 feet above the ground. a green start your day this wednesday. s&p up 4.5 and change. you are watching "fbn:am." ♪
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cheryl: welcome back. not taking a look at futures this morning. apple's stock to watch and we will hear from the fed raider today. dow 34, s&p up four and three quarters. look at this.
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64 roller coaster riders were left dangling upside down for two hours. they had to be rescued from the roller coaster at university -- universal studios or the roller coaster did resume operations soon after. president trump brought a battered plane down safely two weeks ago. >> the actions of southwest flight 13 a.d. show the great character of our nation. we are very proud of them and god bless you all. cheryl: former navy fighter pilot sitting by the president side. a fan blade in the plane's engine had broken off and cause the engine to explode that killed one woman and lord doth fly. stay with travel. united airlines will assume a pets flying cargo again. this time it much tougher restrictions for the decision coming after a series of high profile animal incidents this
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year including a french bulldog that died on a flight in march in an overhead bin. 25 will be banned from the cargo hold for health reasons that may make it unsafe for them to fly. animals also banned from traveling to the airport this summer because of concerns over high temperatures in the cities. that is what is happening now. gerri: complicated to get your pet on the airplane. moving on, facebook first wanted you to find friends. now it wants to find you a date. but the company's annual developers conference, mark zuckerberg announced facebook would launch a dating feature later this year. the timing is at the very least curious considering they are still recovering from the data scandal. hillary ford which comic thank you for coming in. a global branding expert. great to have you here. let's start with what has got to be the basic question. isn't this a bad time to be
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watching a dating feature? >> thank you for having me back again. it is a bad time except the user doesn't know all the details. certainly not at cambridge anaytica. they would not have been privy to all the information. so i think this is going to go very well for facebook. gerri: wow, so you think they can just move beyond this. they are going to give users details on why apps are attracting them across the web. is this enough? you say people may not be following the story, but it seems to me when i look at my facebook feed and the people who want to delete facebook, there is interest in the story. will this convince consumers facebook is on their side? >> there is a vast amount of people that aren't as discriminating as those who know about what's going on in the
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news. the brand doesn't have a tangible reaction that is negative. there are people who've talked about leaving facebook and a have not plummeted. whereas the plummeted in some of the other dating sites are going to suffer. somebody who's not as discriminating as the large. gerri: that hillary, how did they do that? so many companies that may have some issues or problem in the news, their stocks tanked. what is zuckerberg doing right that people don't even focus on? >> it's not even what he's doing right. we would love everybody to be a newspaper daily and on all of the details. they are not. they would've seen all the feeds at me me about this i face the. they may be oblivious to all of these details. >> let me ask you about another company and that is tesla.
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here is a company. i don't know how they do it. they are so popular. they have the $51 billion market cap. they can't get a product out the production line. they have all kinds of expectation issues and yet the ceo of this company is hailed as a visionary. what are they doing right? >> they are something people want. a point comes down to a difference between the 21. you need to go to point a to point b. they have environmentally friendly than something that is obviously extremely high-end and feel like they have the blue-chip top-notch brand and that's what it is about the branding. >> that is interesting. i can see that. hillary, thanks for coming out today. >> thanks for coming back again. appreciate it. cheryl: an overtime thriller between the cavaliers and the raptors. plus that's curious back
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finally. nba playoff highlights coming up. and crushing expectations for sales and profits. what is next for next for cooke & co.? we'll go to london for reactions. u.s. market features a 39 come s&p at five, nasdaq up 35 and change. we will be right back. ♪ build your next big thing to run in more places, without recoding. the ibm cloud. the cloud for smarter business.
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cheryl: all right, now to sports, now the spores spread the word, now the spores spread the word spoke about, now to sports for the words welcome back anaytica for game two against the guerrillas pelicans. he didn't miss a beat. drained 53 pointers and more. golden state wins 121 to 116 and
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now they lead the series. now a nailbiter in toronto. lebron and the cats taken on the raptors for game one setting up 26 points by missing 18 shots. a cavaliers team was able to squeak out a victory in overtime. a tight game, but also the cavaliers center kendrick gherkins exchanged words with toronto born rapper drake. had to be pushed off the court by teammates to put an end to this profanity laced tirade. gerri: was beeping for a reason. i like so much been coming up big for the capitals breaking a tie late in the third. , batting in his own rebound. a bit of controversy last night after a high hit on the penguins player said that suffered a
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broken lock, concussion and will need surgery. and in baseball, gary sanchez for the yankees launching a monster three-run homer, rake in a scoreless tie. yankees win 40. astros closer not happy about giving up the home runs. punches himself on his way back to the dugout before letting up even more steam. they say not to beat yourself up. guess i picture never got a listen. i kind of want to see him beating himself up a little bit. he's back tomorrow, by the way. coming up, global tech stocks getting a boost from apple. their earnings will go to london and talk a little bit more about the day-to-day. "fbn:am" will be right back.
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>> the story in europe is the story here. apple's strong earnings leading technology could make good use and come a chief analyst at cmc is here. what is your call on apple?
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better record high to look at today for the start? >> certainly seems that way. they absolutely crushed forecasts. there was some concern that would manifest itself a novel results. that hasn't been the case. second quarter since 2015 and profits of $1,320,000,000,000. that suggests we are going to see a significant talk to the record highs this year. we're looking if you'd open around 175, $176 a share. cheryl: we are talking federal reserve later today. not expected to raise rates to your, but what are you going to be watching when they talk today? >> i think that's really the big concern at the moment. markets are starting to price and the prospect this year. the yield about 2.5%. those prices paid manufacturing numbers yesterday at a
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seven-year high since april 2011. for me it's really going to be the fed's critique of the u.s. economy and their inflation expectations and whether they actually see the rates the way the market does. >> picador. >> at the doors be a market mover. we never know. michael houston, thank you for joining us. appreciate it, sir. cheryl: now it is time for maria bartiromo and mornings at the rio. >> hey there, ladies. thanks for joining us. i am maria bartiromo. wednesday, may 2nd. top stories right now 6:00 a.m. on the east coast. apple not lose in a shine. stocks closed in the premarket as they beat lower expectation of profit and revenue yesterday. also announced a record $100 billion buyback plan. the second quarter earnings coming up this morning. investors are waiting on the fed meanwhile. the rate decision coming down
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this afternoon. not expecting a hike in interest rates when the federal reserve. we look at the details at 215 eastern. dow industrials up 30 points for the nasdaq 31 points. one half of a percent gain on the nasdaq. the nasdaq up 1% yesterday thanks in part to apple. the dow lower. all of the major averages off the lows of the day. check out the activity right now where was the money moving into stocks. up almost one half of 1%. 35 points higher. the dax in germany are better than 1%. asia overnight markets edged lower across the board as you see. following the crumbs trail. mike pence over her assault on a tax reform bill. he spoke yesterday about the parade of bonuses from businesses across the country.
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>> not everyone thinks these tax-cut bonuses are a big deal. last year you had companies all over the country passing out thousand dollar bonuses at the end of the year. when our kids were little, we had another thousand dollars in my paycheck at the end of the year. christmas. maria: the vice presidents message to pose the issue of reclaim the role as speaker of the house. overstepping the bounds. special counsel robert mueller raises the possibility of a presidential subpoena during a meeting with president terms legal team. the latest leak out of this investigation that means my interview with the president from last april. one of those questions involves what the president will be in that interview. united is adopting a new pet policy. the rigorous new rules after serious controversies earlier this year including the death of a dog and overhead

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