we are always watching closely. it is important. [closing bell] connell: you have to watch "countdown" tomorrow. every day please. thanks to george young. thanks so much. we do have market action with the dow seeing a gain of 49. not so for the s&p and nasdaq. apple numbers next. connell: stocks ending the day mixed ahead of highly-anticipated trade talks with china washington tomorrow and those apple numbers. the dow up 53. we're up 150 earlier in the session. nasdaq in this session, s&p 500 is a little bit of a different story. s&p down, nasdaq down by 57 points. there you go. i'm connell mcshane. melissa: i'm melissa francis. this is "after the bell." we have more on the big market movers but first here is what is brand new at this hour. the state of the union is one week from tonight as congress scrambles to strike a deal. a group of bipartisan lawmakers are set to meet tomorrow to begin negotiations on funding

the border security. we're live at the white house with the latest on that. plus the audacity of billionaires to run for political office. growing outrage from the left mainly over howard schultz' potential 2020 bid. it is the report they warned us about. high-stakes results are expected from apple this hour. could be the tech giant's most important announcement in years. find out the numbers before it impacts your money tomorrow. a lot about the global economy and china, even if you're not investing in apple. it is a big deal. connell: no doubt. china, china, china. we're all over apple but also today pfizer united technologies and 3m helping to lead the dow higher even with other major averages down and gerri willis with your recap from the new york stock exchange. gerri. >> hey there, connell. that's right it is watch and wait, watch and wait for apple earnings. everybody on the sidelines been back and forth over that midpoint positive and negative.

also it is about u.s.-china trade talks. why you see united technologies, caterpillar, 3m, dow dupont, really led the way higher. we're barely higher here. 51 points up on the dow. also tech stocks weighing on nasdaq. that is the other big story of the day. nvidia missing earnings. we watched that stock, down dramatically. we're seeing 4.6%. facebook down, amazon down. microsoft ahead of earnings here. of course all with bated breath for apple earnings. we'll talk to you about hog, harley-davidson. this was a miss on both the top and bottom line today. that company coming in at 17 cents a share versus 28 cents. revenue at 955 million. a big miss there. is this the profit being wiped out by tariffs or do they have just the wrong products? that is the debate about that stock. back to you guys. connell: tariffs certainly are an issue for harley. gerri willis at nyse. melissa: stakes are hide. trade negotiations are set to

resume in washington between the u.s. and chinese officials edward lawrence is following the story all along. what is the latest twist. reporter: china is talking tough about charges against huawei and its cfo. stopping short that it will make impact on trade talks tomorrow. when asked if huawei case will be brought up by trade negotiators at table a spokesman for the chinese foreign ministry we hope teams will work with strong consensus between the two presidents and work in the same direction for a mutually-acceptable solution. with iran and lying and stealing their partners, t-mobile specifically robot that tests phones. the foreign ministry, a spokesman for the foreign ministry says the u.s. courts will see this is just politically motivated to try to stop chinese businesses from

succeeding. >> translator: in the past the u.s. mobilized state power to discredit and suppress specific chinese enterprises, attempting to strangle the normal operation of these enterprises and there is very strong political intention and manipulation behind it. reporter: this will no doubt complicate the trade talks even if the chinese don't bring it up. still the united states delegation led by u.s. trade representative robert height highser is clear what the needs. >> president wants fair trade with china. it has got to be reciprocal. right now chinas free access into our markets. we have limited access into theirs. the issues we talked about, market access, make sure this are not forced joint ventures, not forced transfer of technology and we have a mechanism when we reach an agreement we can monitor this agreement and they will live up to it. reporter: two days worth of

talks start tomorrow. the chinese want to avoid tariffs on $200 billion worth of goods going from 10% to 25% on march 1st. experts say we will know quickly if they want change or just another act to delay. melissa. melissa: edward lawrence, thank you. connell: let's bring in the market panel. gary kaltbaum, and james freeman, from "the wall street journal." gary and james are both fox news contributors. everything is somehow china related even when we get to this hour to the apple results we'll talk about what they said about china. if you look at it, gary, from the market's perspective, the slowdown in china, talks beginning, even if they get some sort of a deal in the next month, that enough to stop the bleeding in terms of an economic slowdown in china or no? >> i think there is bigger structural problems in china. they have massive apartments of debt. there is a reason why in the last week they announced in one day 83 billion-dollar injection into the banking system.

so i don't know if this would change the playing field but easing of this tariff deal would help all parties. but now we have this investigation. i love that the fbi yesterday, chrisway said after years of investigative work, all of sudden they come out with charges, that day. connell: that day. >> kind of funny they used leverage like that at that point in time. connell: funny, smart, maybe not the right timing, james what did you make of it. that is to gary's point both sides are saying this huawei, the charges against the huawei cfo and charges against the can can -- company have nothing to do with the trade talks. most on searchers say really? >> there is never a bad time arguing ends forging our laws. argument with gary and this is not a political partisan move.

this is not only bipartisan in the united states but you see governments around the world seeing problems with huawei. connell: does it help, may it help to your point with the trade talks? is that what you're arguing, or are you saying it is separate? >> one other country when we sit down to do with a trade deal is question whether they will obey the laws of the united states including the criminal laws? this is almost two dozen criminal charges in here. everyone deserves their day in court. connell: right. >> but the allegation is a systemic effort to pay employees bonuses for stealing stuff from not just competitors but a partner, telecom business. connell: back to all this -- really quick. >> i'm not saying it is wrong to charge them. i'm just interested in the timing of charges. i think it has everything to do with the trade. connell: fey enough. back to this a little later. melissa. melissa: trying to keep the government open as congressional

leaders are set to meet tomorrow about border funding. blake burman live at the white house with the latest. blake. reporter: when you talk about capitol hill, few up on capitol hill here have the ear of like senator lindsey graham. more so that the senator from south carolina last night had dinner with president trump, vice president and treasury secretary. i bring that up, i'm told at that dinner lindsey graham floated a new proposal how potentially to come to a compromise regarding wall funding, tying in the debt ceiling. a congressional source who i spoke with today, described it as one idea, that it isn't really an official proposal per se, but white house sources do say that the president and vice president were quote, open and receptive. here's the timing going forward. the president wants a border security package with ball funding by february 15th, or else as you know he is threatening another government shut down or declaring a national emergency on the southern border. the debt ceiling needs to be raised by march 1st just a couple weeks after that. senate majority leader mitch

mcconnell was asked about it today. he was open to this possibility but the top democrat in the senate was not receptive at all. listen here. >> i'm for whatever works, which means avoiding a shutdown and avoiding the president feeling he should declare a national emergency. >> the debt ceiling, no more hostages. to say you know, open up the government or i will do this, this, this, this or this. and so, so no, i think that is not a good idea. reporter: you might remember a warning from fitch earlier this month when the government shut down was ongoing at the time. they said if the debt ceiling becomes an issue in march, if the government shutdown persists into march, then potentially the united states aaa credit rating could be at risk. a long way to go down that line, potentially, but you sort of get the idea here when you start talking about about bringing in the debt ceiling into wall negotiations. melissa. melissa: absolutely, blake, thank you for that. connell: all right.

waiting for apple. apple has been under pressure. the bruised tech giant set to release quarterly earnings this hour. a report that could shake things up in the market heading into tomorrow and impact you and your wallet. we'll bring you breaking numbers literally as soon as they hit. melissa: plus, shaping a new deal. uk lawmakers voting on crucial amendments to prime minister theresa may's brexit plan as the clock ticks down to the departure from the eu. can parliament find common ground? we find out next. connell: heckled for weighing a third party bid. howard schultz weighing a backlash after the long-time democrat says he is considering a run as an independent. why lawmakers are sounding the alarm. ♪ the consequences underwater can escalate quickly.

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melissa: working to hammer out a brexit deal. a majority of british lawmakers saying they will support a deal with certain conditions. ashley webster is live in london with the latest. ashley. give us the lowdown. reporter: hey, melissa, well, yes, "groundhog day" goes on. you're absolutely right. most of the amendments considered for voting tonight went down. the one that got most attention that was defeated the so-called cooper amendment. let's look at that. extension for article 50. move back the deadline, if no deal in place by february 26th. that went down fairly easily, 321 to 298. brady wanted an northern ireland backstop replaced with quote, alternative arrangements, whatever they may be. this was supported essentially by the government. it was supported importantly by

pro-brexit conservative members that went through. so now theresa may has a mandate to go back to the eu to try to renegotiate. she said after the voting tonight, at least we have a clear mandate to take to brussels. take a listen to what she said. >> the house also reconfirmed its view it does not want to leave the eu without a withdrawal agreement and future framework. i agree we should not leave without a deal, however simply -- simply -- simply opposing no deal is not enough to stop it. reporter: another amendment did pass, basically non-legally binding on a no deal, basically saying we don't want a no-deal brexit scenario. bottom line, theresa may has to go back to europe. already the signs from the eu has not been very friendly, saying the backstop is not open for renegotiations.

here we are. this is the impasse. now it is up to the eu to see whether they can give just a little bit on that irish border issue in order to get brexit through by march 29th. we'll see, guys. back to you. >> wow, ashley, thank you. connell: let's talk a little more about this, anthony gardner former u.s. ambassador to the european union. we'll focus, ambassador on that brady amendment. theresa may will go to brussels, essentially make the argument i suppose we had a deal on the border between the republic of ireland, northern ireland, we have a soft border in place, essentially cross without issue, now we want to renegotiate that. what happens? >> it is pretty incoherent message. i don't think parliament has spoken that yes, we want a deal but strip out all the backstops negotiated painstakingly for a honk time. it doesn't make clear with alternative arrangements what the uk is proposing. it is not good enough.

the eu is i'm pretty sure will say we don't know what it means. they will not reopen the text. they said it time and time again but the uk is indicating, it was shown from the beginning of this process, i hate to say this, a series of magical thoughts. not really understanding what the eu has been telling them the whole time. so i -- connell: okay if they repeat that, like you say, they say forget it, like the european union said number of times, then they come back, they have already defeated this cooper amendment which could have delayed brexit. so where does that leave them? >> well, we should just remind ourselves the backstop is a logical consequence to the red lines that were drawn by this government i think unwisely a while ago. so i suspect the eu will say no. we can do whatever we were offering to do, have further clarifications. there was already a text, a letter sent two pages, giving

clarification. we can do more of that you want but won't reopen the text. i think they won't repeat that. would be surprised if they do otherwise. i don't think they get agreement from the other 27 to do otherwise. we see they go back to parliament in yet another two weeks. another set of vote this is said no to no deal brexit, no to extending article 50, but yes to getting her deal with everything we want. just yet another indication of magical thinking, chasing moon beams. connell: we'll look for something more coherent or hope for something next time around. ambassador gardner, thank you for your time. we'll check back with you? >> thank you. melissa: we're waiting for breaking results from apple. the company waiting about privacy concerns after a glitch that turned its popular facetime feature into a listening device. so awesome. is your smartphone at risk. senate majority leader mitch mcconnell out with a new warning about keeping our boots

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connell: we're bracing for a bruising battle as roger stone entered a not guilty plea in federal court in seven charges in the mueller probe. after the long-time advisor to president trump was arrested in his home in florida on charges from the special counsel lying to congress as part of an investigation into the russian election interference. melissa: former starbucks ceo howard schultz getting ridiculed at a book event after announcing a possible 2020 presidential run. >> don't help elect trump, you egotistical billionaire [bleep] go back to twitter. go back to davos with the other billionaire elites who they think they know how to run the world. that is not what democracy

means. [boo ♪. melissa: schultz penned an op-ed in "usa today," said a third party candidate like me could win in 2020. james freeman is back with us. >> thank you. melissa: you are fantastic, but i was also talking about mike bloomberg versus howard schultz, where sort of the battle of the billionaires, immediately pouncing on howard schultz. michael bloomberg saying that great likelihood an independent would split the anti-trump vote and end up reelecting president trump. that is a risk i refused in 2016 we can't afford to run that now. what are your thoughts? >> it is funny because mr. schultz said he is thinking about running because our politics have become so bitter, so partisan. melissa: right. >> he announced this, you hear this sleeking from bitter

partisans telling him not to run. they feel he might endanger a democratic victory. mike bloomberg is self-interested here. he may psych the democratic nomination. the fact that bloomberg wasn't viable as an independent, doesn't mean schultz couldn't be. melissa: yeah. >> bloomberg, wall streeter, limited appeal. not that everyone drinks starbucks but with schultz this is a guy who built a consumer-focused company with tens of thousands of locations. so i think he probably understands the average voter a little better than bloomberg. melissa: he might understand. people also, interesting the left was screaming, last time we saw this happen was ross perot, he helped elect bill clinton. >> yes. melissa: i don't know, is it necessarily helpful to trump? it could hurt him? >> could absolutely hurt trump, you don't know, if you think about those swing voters in suburban areas, college educated women, many of whom. melissa: drink starbucks. >> are schultz's customers, that

could create a matchup problem for trump. i think what a lot of democrats fear he runs well as independent, basically manies about the democratic nominee, pushes them aside. melissa: james, thank you we'll see you back in a second on apple. connell: getting close. running on medicare for all. the democratic candidate kamala harris kicking off her campaign with a promise to overhaul the health care system. critics are speaking out about that, with the far left push. what that could mean and future of party ahead. apple on deck, the tech giant out with results any minute from now following a rare warning about its quarterly revenues. we'll have numbers for you as soon as they hit. ♪ sunlight... longer hours... eyes today are stressed. but ocuvite has vital nutrients... ...to help protect them. ocuvite. eye nutrition for today. ♪ ♪ (buzzing)

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connell: to breaking news. apple is expected to report the first quarter results at any moment now. so this is going to be a big one. gary kaltbaum and james freeman are back for it. we're joined by tech expert lance ulanoff. dan bader is here. we'll have numbers. melissa here. susan li in the newsroom. as soon as they come out in a few seconds, james we're talking about the idea, first we won't get breakouts necessarily how iphones, ipads are doing, but idea what does china mean for this company but what are you most looking forward to? >> a lot of people want to know how much of this is a china issue. how much is lowering expectations earlier this month. people also want to know, can they sell the iphone, continue

to sell it with this huge price premium? how are services growing. they changed accounting on that recently, which made it difficult to tell. connell: difficult to telco be a theme for these numbers when they come out especially for the iphone? >> i feel like i'm flying blind. i'm so used to having that number to hang on to. the iphone accounts for 62% of their sales revenue last year so it is such an important number and to not know, i'm so curious how they're going to paint this picture of earnings, especially on the call after. you know tim cook is going to get asked, how many iphones did you sell? connell: in fact numbers are just starting to hit the tape. the stock, immediately, gary started to go up. susan is in the newsroom. revenue might be pretty strong on first glance i saw. gary, the stock already has gone up. you talked about this theme, we all talked about this theme of apple's ability in the past,

lower the bar to jump over it, but we don't have numbers, but that has been a pattern, right, gary? >> it is called the sandbag. they have been doing it for years. they're professionals at it. connell: hold on a second. melissa said, what do you have? melissa: looks like dow jones saying first-quarter earnings were, looks like $4.18. can i hear in the booth? connell: that would be a penny better. revenue looks pretty good to me, over at 84 plus. was supposed to be under 84. so at least in line on revenue. susan li up in the newsroom what do you have for us? >> melissa is right, penny beat on profits of 4.18 for the quarter. revenue, don't forget they already guided us beginning of this month for $84 billion or so for the final three months of last year. that is roughly in line with the actual number. 84.31 billions for revenues. this is interesting, gross

margins, we don't get unit sales, earnings report card for the very first time. we're getting gross margin numbers especially for services which is very actually, very interesting for a lot of analysts out there. analysts look for margin of 60% plus which we got for services. that is very important to apple's growth in the future. 62% is the number for gross margins, impressive. after international sales accounted for 62% of the quarter's revenue. outside of u.s. borders now, seems more important for apple going forward. as for china, we're still looking for specific chinese numbers. tim cook says in the earnings report card it was disappointing to miss our revenue guidance. for very first time in 16 years, guys, at beginning of this month, they said we'll make less money than expected because of slowing iphone sales in china. we'll dig the announcement. melissa: talk about guidance.

i know what people care about, we'll see those numbers. following guidance for 2019, second quarter revenue, between 55 billion and 59 billion, gross margins between 37 and 38%. operating expenses between 8.5 billion and 8.6. other net income, 300 million and tax rate of approximately 17%. connell, you want to get reaction? revenue of 55 to 59 billion, second quarter. connell: let susan go through compared to estimates on all of those things. at first glance investors like it. the stock is up 2%. dan hasn't gotten in. get you in a second. lance we had to hold your hand without having iphone numbers. i know you were worried. in terms of what we heard from apple, gary used the word sandbagging his term, not mine, a lot of people use that, that maybe apple would jump over a

lowered bar, is that what you're picking up, lance? >> well, not necessarily. this seems in line with warnings, guidance that we got. if you look at numbers, iphone revenue dropped 15%? melissa: 15%, yeah. >> that is something, that not putting numbers out there, maybe that helped them a bit, it softens the blow of that, people will focus on that, excitement around iphones in general, maybe even handsets in general right now is sort of flattening out. >> it is. >> headwinds in china still exist. that number appears if i'm reading correctly down year-over-year. connell: let me go back to susan with more. >> as melissa said, guidance is key. analysts were on street were looking for looking giving as you range of 55 to 59 billion. how it works we take the midpoint of that. that is 57 billion. that is less, by the way than analysts expectations for the next three months,

second quarter of this year. but that is not having impact on the stock. services and revenue guidance might be a little bit more important to the street. connell: couple things from tim cook, quoting him here. on tensions with china on the trade tensions with china the apple ceo saying january looks better than december looked in terms of trade tensions between the united states and china. this is reuters headline coming from an interview with tim cook related after earnings results came out. he also says the company will revert setting iphone prices in local currency in foreign markets in hopes of helping sales in those markets. he says the company targets 500 million subscribers for apple and third party services by 2020. tim cook talking about all important services division. before dan comes in you want to report one more thing. melissa: revenue from ipads grew 17%. that is kind of funny. that is one of those where

everybody says ipads nobody is buying them. they're focused on phones. looking at revenue go up. connell: that is interesting. dan, put all that together. apple is reported to be in transitional period between devices we've all come to associate with them. supposedly this transition to be more of a services company. what would you add to that? >> well i mean, the services go hand in hand with the bigger screens, right? this is a company that sees 15% drop in iphone sales but ipad we're seeing strong growth in mac and services in general is up and it will continue to grow. and in 2019 we're expecting apple to finally launch its television service where it sells its own dongle. there is rumor that the company will offer lower cost alternative to apple tv or

discount the apple tv as well. this is something that apple needs to do. they made announcement with samsung, vizio, other tv manufacturers to bring itunes and home kits to those televisions earlier this year. they want their service when it finally launches to get as broad an audience as possible. connell: yep, i know james freeman we're all over the map on something like this, nuts and bolts of the company dan is talking about for a moment. for a second on trade, we're in middle of talking about that with the chinese. we had the huawei arrest. trade talks beginning next couple days. the cook comment, january looks better than december looks in terms of trade. it is fairly optimistic sounds like something gets done. he is trying to sound that way. what do you make of that? >> let's hope he is right. i think you're watching that stock bump like this. this is the beauty of low expectations. a lot fed about concerns about

trade. historically for apple i would have to say this is crummy quarter. lowered expectations they managed to pass. in that sense, maybe there is more hope china trade stuff that gets resolved. maybe they figured it would be a lot worse given all the gloom. connell: you're probably right. we set it up that way. susan what do you have in the newsroom? >> apple has lot of cash on hand. at end of first quarter they have $100 billion on the books. looking to get net cash neutral. distribution back to investors. they had around $13 billion in dividends, repurchases in the first quarter. expectation on markets they will do a lot more of that. repurchasing shares. as you know bumps up volume. the price of the stock. apple buys it or some say warren buffett would take in more at these levels. melissa: susan, forgive me, i'm seeing first quarter revenue coming out of china,

13.17 billion. i don't know if you already mentioned that or if you know -- >> i saw the number too. that is exactly what we're looking for. we're digging into the expectations. >> they very cleverly didn't compare that to what they had forecast. >> right. melissa: we're left with that number. >> when you don't have unit sales, basically doing the math yourself. i'm looking for comparable. connell: a lot of the back of the envelope stuff for this quarter which as lance brought up at outset of our discussion which we're not used to. we're used to more transparency and a formula figuring out apple results. one thing i say with china revenue. we could compare to what they did in china last year. as you expect that number is down. last year's china year-over-year number was 17 plus, almost 18 actually, $17.96 billion in revenue came from china and as melissa just reported to you it is 13.17 billion in the first quarter of this year. so i believe those two are

comparable. i'm not 100% sure of that. not exactly sure how it compares to estimates. gary kaltbaum, we haven't heard from you in a while. what stands out if anything about these numbers? we have the stock up 3% right now. >> first of all it is a sin, corporate sin they do not announce how many things they're selling that is absolute joke to me, that is number one. if the stock is up, because the stock came down from 234 to 154. i think that is the reason. i'm looking at numbers. they hardly beat big-time lowered numbers. guidance is not that great. maybe it will bounce up a little bit more but i don't take much out of this except you have a company that really needs to come out with new product or really up the services as sales are down an earnings are becoming suspect at this point. i haven't seen yet how much they're buying back. i think that helps. there will be issues going forward. that is how much product they're selling and again i'm surprised they're not telling us and i

think that is wrong. connell: what about that idea, lance, reinvention, which apple has obviously done for anybody that followed the company in a passive way over the years? a number of different times, whether it be the mac or i pod and obviously the iphone, moving into all kind of services business? does it help? as tim cook talked about this company will be known long term for health? is that legit, is that where you see the company going? >> certainly this was a big day for apple with health, announced with eta with attain, a app that works with apple watch and rewards if you bought the apple watch. super interested in health. the story is this company is shifting heavily into services which is a big growth driver and wearables that connect to the services. you will notice that also grew at a very healthy pace. one other thing i want to say about all these numbers, if you look, japan, europe, china, all down. apple is sort of go forward plan

is growth outside of the u.s. because the u.s. was slowing down anyway. now that is not working. apple has to continue basically evolve to do more things. we hope to see more new products that this year that will exist people, get them going again. it won't be a car by the way, won't be a television set. will be more services, obviously another iphone and maybe some x-factor product we don't know about. connell: that we don't know about. melissa: connell was exactly right, 13.7 billion compared to 17.96 billion from china last year. connell: not a huge move in the stock. came back for a second. still up in the neighborhood of 2 1/2%. a four dollar rise in apple. options market was pricing in a 4.5% move up or down tomorrow for apple shares right now. below that with this report being a bit mixed even though they did beat by a penny on the bottom line. meantime with all of this happening apple has been facing new privacy concerns today. it's a story that has been out there susan also been covering,

getting a lot of attention more than any other reason, susan because it's apple and privacy, right? >> a lot of people use iphones. before i get to the privacy concern i want to run through some of the services numbers because the market looks very closely since apple is touting this as future of the company and not necessarily phone sales going forward. we did some calculations. looks like services the sales for quarter pretty much in line with expectations. 10.88 billion. don't forget they're looking to double that. they want $20 billion from services over the next five years or so but that is a good increase of around 28% in the quarter. apple still posting the first quarterly decline in revenue and profit for the first time in a decade. that privacy issue might not be selling more iphones for them either. talking about group facetime. this went viral yesterday on social media. looks like there are cases where on group facetime someone could actually ease drop via the

microphone without you knowing it. dialing up group facetime on phone. put in my own number, start dialing person i want to contact. apparently it is dialing, they don't have to pick up the phone, i can hear you through the microphone and tap into the phone's camera, see them without knowing it? how scary is that? connell: apple made a business, guys, panel still with us saying we're the company for your privacy. what was their ad, on the iphone, stays on the iphone whatever they put up in vegas. lance, dan, curious to get both of your takes on this. dan, take it first. to susan's point got a lot of attention because its apple. big deal or overblown? >> it's a big deal. the bug itself was a terrible, terrible miss for a company. we're seeing actually youtube videos posted a few weeks ago that showed this bug in action.

so, apple may not have known about it, but if they did, and they didn't patch it, until it went viral, that is a big, big deal and a big problem for the company. connell: right. >> at the same time, they own the entire cycle here. so they were able to deactivate group face time from the server side. essentially make this bug moot within hours of it -- connell: finding out, right. they could have done it quicker i read some kid knew about it. melissa: right. connell: they didn't listen right away. melissa: probably one of my kids. connell: it was one of your kids. they figured it out. we got to go, guys. thanks for panel. stock is up about 3%. melissa: vowing to get rid of private health care plans senator kamala harris pitching her plan but who is taking care of the bill? ♪ i'm a veteran

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melissa: fully embracing medicare for all, democratic presidential candidate kamala harris outlining her vision for health care. take a listen. >> the idea is, everyone gets access to medical care and you don't have to go through the process of going through an insurance company. let's eliminate all of this. let's move on. melissa: oh, my goodness. james freeman is back with us. let's eliminate all of that, insurance company, approving of the process, instead let's put government in charge. what could possibly go wrong? >> we should point out the government is kind of already in charge. this architecture that people find difficult, bureaucratic, unwieldy, is the architect created by obamacare and umpteen other laws before it but her plan which is knock out all private insurers, make it a government plan has a estimated price tag of more than

$32 trillion over 10 years. this is a figure that bernie sanders, who wrote the plan doesn't argue with. he says it will be worth it because this government-run system will be so wonderful, as we know from dealing with the dmv, irs, et cetera. but it is amazing. melissa: so, james, this is one of those people, where in my mind, it is pretty cruel to lie to people again. the last time around president obama had said that people's premiums would go down by $1250 per family per year, you could keep your doctor, keep your plan. we all knew prices wouldn't go down unless doctors began working for free, or hospitals began giving away services for free. in fact prices went up. in this case as you said, this would cost $3 trillion a year. is there a way to pay for that if you confiscate all of the billionaires money in the u.s. and just throw them in jail, take away their property?

how do you pay for $3 trillion a year? is there a way? >> i guess you would have to catch them all before they flee to other jurisdictions and lock their money in the united states. i don't think even that would work but it's, it is amazing. i think, you hope we don't get fooled again, having heard we could keep our plan, keep our doctors. the biggest whopper about this, it is being called medicare for all. it is not. that is medicare for none. that problem goes away. it gets abolished. everyone is pushed into a new government plan that will ration care. melissa: thank you very much. connell: isis still posing a serious threat to the united states, senator mitch mcconnell breaking with president trump he plans to offer an amendment warning against withdrawal of u.s. troops from syria, as well as afghanistan. now with that, fox news correspondent benjamin hall

today has exclusive access on the ground with u.s. troops in syria. reporter: four 1/2 years the syrian kurds have been battling isis across much of the country with u.s. support. it comes down to this the final isis village is surrounded. the forces say there are days remaining until a territorial defeat. the warning here, there is much more to do after that. this is what we saw. we've been driving for miles down this one road. either side of us is totally devastated. the going is quite slow and that is because every few hundred meters there is another crater which only could have been caused by us air power. the sds believe there are 1500 to 2,000 battle hardened isis fighters in area of one square mile. they say these are foreign fighters unable to blend in the local population. they have nowhere to go. u.s. forces are seen constantly here. you catch glimpses of them by

the front lines in forward bases, moving around. we've been asked not to show any soldiers but they're here, ever present. sds humvees we moved forward into the final ice list-held village. this is it, the very last isis village. no journalists have been here before. isis a couple hundred meters away. at their peak they controlled 40,000 square miles, area size of kentucky. they had 65,000 fighters. they ruled over eight million people. today all of that is gone. all that is left what you see behind me. many people here point out that the kurds have been long entrusted allies of the u.s. they urge president trump not to abandon them now. do not make the same mistake president obama did in iraq, leaving before the job is done, handing that country over to iran. many people fear the same could happen here. back to you. connell: great reporting benjamin hall in syria. melissa: yeah, amazing. backlog at breweries.

the government may be open but craft brewers are still feeling the pain. we're taking you inside one of them after the break. ♪ unlike most other cold medicines... ...zicam is clinically proven to shorten colds. i am a zifan for zicam. oral or nasal. i that's the retirement plan.e, with my annuity, i know there is a guarantee. it's for my family, its for my self, its for my future. annuities can provide protected income for life. learn more at retire your risk dot org.

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connell: another look for you at apple, as the company did beat the street, the top and bottom line last quarter. first time in more than a decade we have seen that, revenue from iphone sales sliding 15% this year compared to last. now, the numbers underlining apple's challenges to reignite slowing iphone sales, depend more on services for growth. the stock is up after hours by about 4%. melissa: it's almost 5:00 but your happy hour may be at risk. the government shutdown threatening to release -- threatening the release of new craft beers. i can't get through it, it's so upsetting. hillary vaughn at the stone brewing company near san diego with the details.

hillary? reporter: well, here's what consumers are facing. your seasonal beers you usually pick up at the grocery store could be missing from the shelf. here's what's happening. the federal agency that regulates craft breweries is facing a major backlog because their employees were out of the office for 35 days during the partial government shutdown. now they are back to work and working through a mountain of paperwork, 11,000 applications to get the agency just to sign off on new beer labels. that's part of what they regulate. they also sign off on any new brewery operations opening up, any expansion plans craft breweries have. we talked to the ceo of stone brewery where we are here today. he says it has been a period of doubt for him and other craft brewers around the nation as they wait to find out if their new flavors are going to get the green light. >> well, look, the beers that are going to be most impacted will be the seasonal beers. the beers where we make the most

profit as an enterprise are the seasonal beers. if we can't release the seasonal beers, then we can't make kind of the profit that we expect and it's going to hamper our business result. reporter: the craft brewing industry is a $76.2 billion industry and colorado alone has over 400 craft breweries and their senator, michael bennett, wrote a letter asking for help for these businesses that are facing some of the repercussions of this shutdown. he says that one brewery in the state brewed a batch of pale ale and he thinks it will actually spoil before the approval processes go through for them to actually get it to the shelf. melissa? melissa: wow. all right. that is a tragedy. thank you for that. connell: that's hopefully not going to be another one. there are a million stories that have come out on different things we didn't think of. melissa: the craft brew situation is definitely the most dramatic of all. connell: so far. so far. all right. we made it through the apple report and the stock is up. we'll see what happens tomorrow.

melissa: that's right. we have the dow up 51 points on the day. we will see you back here tomorrow and see more reaction to apple at that point when the market reopens. connell: thanks for joining us today. "bulls & bears" with david asman starts right now. david: we have breaking news. shares of apple trading higher after hours. the tech company beating expectations for the first quarter on the top and bottom line but it is not all good news. we are monitoring the conference call with tim cook and other executives now under way as the company battles a new privacy scandal involving facetime. the headlines still pouring in from the report as well. we will bring you everything you need to know. first let's bring in the panel. susan li has been following all of the numbers from apple for the past half hour. carol roth, gary b. smith, robert wolf and we are joined by john meyer. john, let's not try to sugar coat it. this is the first q