apple reports the slowest growth in i phone sales since they went on sale in 2007. what does that mean for shares of the world's most valuable company? curb appeal. plan on shopping for a home this spring? you may be in for sticker shock. : new way to save. the white house has plans to tackle the biggest issue sanding in the way of your retirement. all that and more "nightly business report" for tuesday, january 26th. i'm sue herera. tyler mathisen will join us later in the program for morning star where he interviewed one of 2015 top fund managers today on wall street stocks as they rocketed higher.

we begin tonight with earnings from apple. the world's most valuable company and most widely held stock and mutual funds reported the slowest pace of growth for iphones since they were introduced. the dow component is forecasting revenue in the current quarter will decline at the steepest rate in 15 years. apple earned 3.28 for the quarter. revenue increased from a year ago but came in below expectations. as for the shares, they were initially lower after the report. josh lipton spoke with tim cook a short time ago and has the key take away from the report. >> the big number to watch in apple's latest earnings report, $53 billion. that was the high end that apple gav gave. i spoke to the ceo about the quarter, he said the march quarter will be the toughest

compare of the year. he said the iphone franchise is solid and 60% of the installed base on the older models implying a lot of potential upgrade head room. a will the of great things happening in a turbulent environment. i'm josh lipton. >> what does apple's disappointing results mean for its stock. kim forest joins us now. she owns a small amount of apple shares through her funds, and she joins us with some perspective. good to see you. welcome back. >> thank you. >> let's start with your reactirea reaction to the report. >> a very disappointing earnings announcement. the shipments were very light in ipad and somewhat light in the core franchise, which is the iphone right now. even things like the mac came in

a little less than anticipated. for a holiday quarter, it was very, very light for a company that's been used to knocking the lights out especially in this quarter. >> you know a will the of people not only think of apple as a technology stock, which it is, but also as a growth stock. given this report, does the growth moniker still hold for apple? >> i'm going to say no. even the company is pointing its attention to how much its base has to upgrade from an older model to a newer model of phone which probably costs a lot of more. while that's good news for revenue, it's not what we consider a growth story where they're going into new markets or selling to completely new customers. >> china, of course, is one of the key markets for them.

they had some interesting comments about the growth and some of the limits to their growth in china. >> yes. the company, you know, is challenged. this is the heartbreak of the whole story. if many, many year they were not in china. when they get to china the growth hasn't met expectations. this was another quarter of that. i do have to pay special attention that tim cook said something about a big slowdown in hong kong as particular geography that didn't meet their expectations. that's something investors should pay attention to. >> apple has been thought of one of the most nimble technology companies. does that still hold? >> well, that's the big question. i think that's the thing that

could drive the stock if they come out with some new category killer. the ipod was something they kind of grew into a huge moneymaker for them. the same thing with the smart phone. there had been other music players and other smart phones. they were able to make these complicated devices interesting and fun for consumers and that got them where they are today. it doesn't look like the watch is that. it doesn't look like the tv appliance is setting any records either. i think that's what could keep some investors hanging onto this stock waiting for next big thing. >> all right. always a pleasure. thanks for joining us. >> thank you. >> kim forest. the bulls were back on wall street today. stocks shrugged off in chinese stocks overnight and helped by a rise in oil prices, better economic data and strong earnings results from a number

of dow components. the dow jones industrial average adding 218 points. nasdaq tacked on 49 and s&p 500 up 46. oil prices settled up above $31 a barrel with a gain of more than 3.5%. 3m, johnson and johnson, procter & gamble reported earnings better than expected and all closed higher on the session with 3m gaining the most. all had things that worked in their favor during the most recent quarter. procter & gamble which saw better sales and raised prices led a group of dow heavy weights pushing the index upwards. p and g increased sales of its brand name soaps and paper products. it raised prices in this low inflation environment. looking forward, china's

transition from a manufacturering to a consumer based economy is giving them hope for more good news. >> growth rates have slowed a bit but still attractive. it's a market we're very focused continuing the grow and profit in. >> higher sales helped p and g offset the effects of the stronger u.s. dollar which lowers profit margins on sales outside the united states. johnson and johnson was not as fortunate blaming currency issues for a drop in sales though it expects the issues to abate later this year. >> currency impacts. the sales were roughly about 7, 7.5%. for next year we're modelling that to be about 1.5%. we'll have to see where currency land, but that's our expectation for 2017. >> last week j and j announced 3,000 job cuts this medical devices, which was its biggest

business. now pharmaceutical is its biggest and u.s. sales were strong. dupont saw sales fall 9.5% and is blaming currency issues. agriculture sales were down 11%. dupont had been saying it would reduce costs by about $700 million but raised that number today to about 1 billion and said it's proposed merger with dow chemical remains on track. sales were troubling at 3m too. it makes adhesive, sand paper, medical supplies, scotch tape and post its. 3m said it was hurt by falling consumer electronic sales and expects the weakness through the first quarter of 2016 before picking up later this year. tomorrow dow components boeing and united technology are expected to report their earnings. consumer confidence is growing despite all the market

volatility. a report from the conference board shows confidence is at a three-month high and most don't expect the big swings in the financial markets to have a negative impact on the economy. those surveyed feel better about the labor market and their income. rising home values make consumer feel more confident about the economy. that's just what the latest s and p report showed. home prices accelerated in november at their fastest pace in 16 months. diana shows us where the values are rising the most. >> reporter: if you're planning on shopping for a home this spring, get ready for sticker shock. home prices are still gaining and the gains are getting bigger. nationally prizes rose 5.3% annually in november compared to 5.1% in october. that according to the home price index. in the nation's to 20 market the gains are bigger, 5.8% from a year ago. portland, san francisco an denver continue to show the

highest gain with prices up by double digits from a year ago. what's pushing prices? very low supply. the lowest in a decade according to the national association of realtors. inventory fell in december compared to a year ago. the realtor's chief economist is calling the price gains unhealthy and unsustainable. he says there's a housing shortage in the cards for the spring buying season. houses lag sales. we should see prices ease but these are unique times. builders are not stepping up and sellers are sidelined afraid they won't be able to find or afford the next move up. >> the housing market is a key pillar of the economy and something the federal reserve watches. as central bank policy makers meet, bond investor has some harsh words about the fed strategy at a conference yesterday. >> i don't think it's any surprise that markets are around

the world have been collapsing in the aftermath of the feds raising interesting rates because they continue to idiotically say we're going to raise rates eight times by tend of 2017. the fed has got to dial this rhetoric back or the market will continue to humiliate them with further declines. >> it's the declines that has the federal reserve wondering what it will do next. we'll know more when they issue a statement tomorrow. some have already changed their expectations. >> there's been a lot of criticism about the federal reserve and the rate hike and the global weakness and the market volatility especially the sell off in the market. overwhelmingly that the quarter point rate hike in december was the right move. 80% say it was the right move. only 15% say it was a mistake. in fact, they think the federal

reserve will do more. 100% say no rate hike at this meeting but 88% say the next move by fed will be to raise rates. only 10% say it will be the lower and only 3% say it will be new qe. the panel believes the fed will delay them. here's the fed timeline. the next hike had been in april 2016. now that's moved to may, as you can see there. when will the balance sheet be allowed to run off? had been december 2016. now that's moved to february 2017. what we call the terminal rates. when will the fed finally stop and when. it has been first quarter 2018 at about 6%. it's pushed ahead a quarter to -- second quarter of 2018, 2.56% is the rate now. back in september, 2014 we thought funds rate would be at

2%. that's come way down. it's like baking easing out of cake. now the belief is the end of this year the funds rate will be .88%. the end of next year just 1.6%. back to you. >> thank you. the federal reserve was a big topic of discussion at morning star where they announced the top fund managers for 2016. tyler mathisen was there and spoke to one of the winners about his view on the central bank. ty. >> thanks very much. i spent the day in warm and not snowy chicago for the morning star mutual fund managers of the year award. it's the golden globes of the fund industry. what these winners have in common is not only superb performance in 2015 where they made money in a year where it was not easy to do. brown small company, the winner

in the domestic stock company. new perspectives. vanguard in the category for alternative space and most interestingly, perhaps, a very low duration and defensive fund, timco, a short term in the fixed income. jerome snichneider runs that. i asked what does he think the fed will do tomorrow? >> we're looking for assets that produce income and the least volatile returns. when you weigh the risks additives of how you want to i ve invest, you don't want to buy those. >> slow and methodical. i assume that means you don't think they'll do anything tomorrow. >> they've been given us a

prescription they will be slow and deliberate. they will be data dependent. they are going to react to that over the next few months. >> he says over the next few months, sue. i say over the next few months means the fed won't be doing anything tomorrow. back to you. >> thanks, ty. we'll see. still ahead, are the big changes at insurance company aig big enough? at&t reports a 22% rise in

revenue. results were primarily helped by the acquisition of directv. shares of the former dow component were volatile. sprint reported a smaller than expected loss. it was helped by cost cuts and increase of subscribers. it marks a big step forward in the turn around effort. shares rose 18%, $2.99. competition between wireless carriers is entering a new frontier, content. many companies are making big investments in that area in order to win over customers. julia tells us whether the big bets will pay off. >> reporter: where the market for cellular saturate, content is becoming the key

differentiator to stand out and convince users to switch. verizon is spending big on content for its go 90 video platform announcing that the company is encouraged by customer use of go90 so far and the product will be profitable sooner than initially expected. >> the go 90 application that we launched in 2015 is one element of this broader video strategy that will allow us to capture audience, deliver mobile first content and generate incremental revenue via advertising. >> reporter: verizon is focusing on original video while t-mobile is working to make sure that concerns about the costs of watching video on your phone are a thing in the past. t-mobile's binge on service allows you to watch without eating into your monthly data

cast. >> since it launched in november, we have learned customers watching 12 more more videos. in fact, we have seen daily average viewership on one of our top services spike 66% among customers not on high speed unlimited plans. >> reporter: verizon announcing a similar plan last week. it allows customers to sponsor data that won't count against data cap. at&t has rolled out plan but only for customer who is pay for directv or u-verse tv service. sprint is using another kind of content to give customers a discount. some will soon get $5 off their bill in exchange for allowing adds to take over their home screen after they unlock their phones. the commodities route forces

one miner to assess its balance sheet. that's where we begin the market focus. a loss was posted in the latest quarter. the company said debt reduction is main focus for 2016. there's a series of options including possible asset sales and joint ventures. last month they suspended dividend and would cut capital spending by a billion dollars. shares rose 6.5% to $4.20. a similar story at hess where they plan to cut spending by 40% this year because of the ongoing drop in crude prices. the company is scheduled to report earnings tomorrow. shares rose more than 1% to 34.81. coach beat earnings estimates and matched revenue targets. it was the first sales rise for the company in ten quarters. the ceo says it's been a long road but things are starting to pay off. >> we've been on a journey to

transform the brand. we're pleased with the results we have been showing since the transformation began about two years ago. we have seen our comps here in north america improve by 20 points. this last quarter, combined with continued growth in europe. double digit growth in our main land china business and as well very good growth with the most recent acquisition we made. >> coach jumped about 10% to 33.33. the unseasonably warm weather in the early part of the winter hit the bottom line of polaris industry. the snow mobile saw profits fall sharply last quarter but revenue was better than estimated. they fell 9% to 72.99. weight watchers got a lift today after a new video with oprah winfrey was released in which

she said she lost 26 pounds on the company's meal plan. in october, winfrey brought a 10% stake in the company. aig is outlining a new strategy aimed at returning more capital to shareholders and improving the struggling property and casualty business. the changes are also designed to keep the firm together, at least for now. >> reporter: three years after paying off the government bail out, aig unveils the plan to maximize the pay off. >> we can maintain our financial strength at a level that backs up our long term promises. >> reporter: those long term promises include a improved performance from its core property and casualty business. in the near term, the ceo plans to cut over a billion dollars in expense, return $25 billion to shareholders and sell assets

including firm's advisor group. >> there's a sense of urgency to deliver results. >> reporter: the urgency spurred by activist who wants to break up aig and get it out from the costly oversight of the federal reserve. aig counters the cost is incremental and breaking up the company won't free up capital as those levels are determined by rating agencies and not the fed. still aig is setting itself up for possible split by reorganizing into nine units all charged with delivering certain returns. the lineup giving aig a structure easily to shed the businesses if it's the right thing to do. >> it gives you the strategic flexibility to sell. >> reporter: applauding aig for efforts while questioning whether it can hit the new target. >> we think it will be difficult to make the progress they want to make until they adopt some more bolder thinking and reduce

the number of businesses they are in. >> reporter: suggesting for some the big changes aren't big enough. for "nightly business report," i'm mary thompson. how the white house wants to help more than 30 million americans save for their retirement. president obama announcing a list of proposals that could impact the retirement of

millions of americans. it's part of the 2017 budget which will be released in early february. sharon joins me with details. good to see you. >> good to be here. >> how is the president proposing to help those that work for smaller businesses? >> there's a couple of ways he's thinking this will happen. one is to pool 401(k) plans. if you're an employer with a small business at the dry cleaners, right now you can only have a 401(k) plan with another dry cleaner in the same industry. they will have open, multiple employer plans so you can pool your resources with the family shop down the street. the pooled 401(k) plans is probably one of the biggest changes. if there's no workplace plan available, automatically enroll employees in an ira. a few months ago they expanded the program offering that to workers. that's another option and to

really make it palatable and affordable for the s business they are offering a tax credit. you'll get a $1500 tax credit for a new year. $500 if you enroll workers in an existing ira. >> what about independent contractors, small businesses, temporary workers. how will that help them save? >> we're talking about millions and millions of people. one out of three workers have no basic says to a 401(k) plan. many small businesses find the costs too big to do so. the reality is just about 10% of those workers who don't have access to plan save on their own. we're talking about a lot of women who are small business employees or temporary workers. a will the lot of peopl then th advisors and the advice some of the people get from those advisors. >> my understanding is these

multiple employer plans will fall under the fudiciary rule. that's something else obama talked about. we affirm they want to have that standard in place to financial advisors are working for the best interest of the clients and not just advising them on products suitable for them. >> i know you'll be watching this program. >> thanks. that is "nightly business report" for tonight. i'm sue herera. thanks for joining us. have great even everybody. we'll see you right here tomorrow.

hollar: tonight on "revolutionaries"... williams: what we're seeing from our readers is this kind of a collective sigh of relief when you can go to medium, and there's endless ideas and content of stories, but it gives you a different feeling than reading the news. you can get lost in medium and you don't regret it. ♪ hollar: medium, the blog publishing platform founded in 2012 by twitter co-founder evan williams, is one-way technology is disrupting the landscape of journalism. in 2014, award-winning journalist steven levy shocked the publishing industry when he left wired magazine to launch medium's new tech hub backchannel. tonight we continue our future of news track with evan williams and steven levy.