this is "nightly business report" with tyler mathieson. >> sour apples, 13 years of quarterly revenue growth has ended putting pressure on the world's most valuable company to create the next must-have device. don't lose out on lucrative social security strategy. it's about to go away if you don't act fast. heartache and disappointment after for the fda to fast track a drug for a devastating illness. all that and more tonight on "nightly business report" for tuesday, april 26th. >> good evening, everyone, and welcome. well, it had to happen some day and today was the day. apple's 13-year growth surge has

ended with a thud. now, why do we pay so much attention to this one company? well, because you may own it outright or own it in your mutual funds and not even know it and no matter the company has an outside influence on indecks such as the s&p 500 and the nasdaq. for a superstar like apple, today's results were nothing less than stunning. quarterly revenue fell for the first time since 2003 and sales of iphones, apple's post-po popular product, two-thirds of revenue, declined for the first time ever. apple earned a buck 90 per share. expectations were $2, revenue mixed, came in more than 12% lower than one year ago. worse, the outlook was tepid. investors show their disappointment, shares falling sharply in initial after hours trading. just listen as more on the dow component's disappointing

results. >> 51.2 million. that was a big number, that is the number iphones shipped in the quarter. >> that did beat estimates. analysts predicted iphones at 53 million. still that was down 68%. i had the opportunity to talk to apple ceo tim cook. he pinned the pressure on a couple different factors. one he says tough times t. iphone 6 was a block buser. in q2, tough comparison there is for apple. he talked about macro weakness and currency head winds. two questions for investors is where is the iphones franchise head from here? he remains bullish. he talked about new market in india, for example up 50%. he talked about the latest iphone, it's opening up new kind of customers for that smaller form factor. he says they continue to take market shares from rivals, a record football of androids. cook telling me we are still in

the early inning of the iphone. let's turn now to dan morgan. he owns more than a million apple shares. despit today's earnings blipper, he says he is bullish on the company and the stock. he is the senior portfolio manager for novus trust. hi, dan, are you disappointed in this report? does it raise red flags for you? >> as you said, it's a kind of a monumental report in terms of its growth hitting the wall here. if you think of apple in terms of historically speaking, it's been a great quarter. i feel we have to give them a little more opportunity to work on the things they are doing, in the new product categories and the iphone 7 coming out, in terms of generating future growth. >> i take your point that apple is in part a victim of its own path success. >> that the comps from last year's quarter, the quarter,

were very good because they had a hot new product out. but isn't there in the history of technology company, tech companies that are basically hardware companies, dem, ibm, at some point, the game sort of ends? i'm not saying this is it, but do they have to get beyond this thing? a hardware company is what i'm asking? >> yeah. they are experiencing their service business. you look at itunes, you look at apple pay. you look at their tv subscriptions. they are doing things, they did about 5 billion if revenues on that. that was actually up from a year ago. you know, it's a tough climb. but overtime, maybe that should become a larger percentage of the revenue mix and can help them cushion some of the pa curity we are seeing in the smartphone market. >> they were down certainly in after hours trading, dan. if, indeed, that selling continues in tomorrow's trading sex, would you be adding to your position in apple? >> well, see the way we look at

apple is, something is on the buy list, it's something we would buy for new money that would come in, in terms of being committed towards shocks. it isn't something we would go down and double down on. we have a very large position as you announced earlier in the stock. our cost basis is about $5. we've owned it since 2004. pretty much every account has apple right now. they've got it mostly at a pretty large gain. you probably wouldn't be doubling on it right now. obviously, for new money coming in, we would be adding apple. >> thanks for clarifying that. we appreciate that, dan, dan morgan with synovus truth. dupont which is merging with dow chemical raised its earnings for the year, it's offset weaker results on its farming-related businesses. 3m, project tore and gamble both reported a rides in profits and a decline in sales. a trend that is continuing for many companies this earnings

season. dupont rose while 3m and procter & gamble were lower. health care and information technology were way on the mark t. dow rose to 17,990 t. nasdaq dropped 7.5 losing 6 since january. the s&p 500 added nearly 4. the federal reserve scheduled a two-day meeting today. it is a virtual certainty policy makers will hold steady. steve leishman explains the discheck. >> reporter: the cnbc fed survey shows markets are defintively not looking for a rate hike. 100% of those surveyed say, 94% said the next move by the feds will be a hike. they are looking for a later, looser fed. they responded in a calm and fun

matter. they can see the next rate hike come income august. that's two month later than the prior survey. here are the expectations for the full fund rates. the blue line is the average. 2.7 for the long one. you can see this is closer but still below where the median of the federal open market committee officials are. so the biggest gaps there being in 2018, nearly a percentage point. where the fed rates will be and the market rates will be. looking at the chain, it will take the stockmarket will be, a nice read down here. this is the january, there is concern about recession. can you see we recovered where we were back in december. but the bad news in this chart is they have the market fully valued. they're looking for a 1% increase for the rest of this year. more of the hopes and dreams for the market are in 2017 where they're looking for a 7% increase from the current level.

all of this comes amongst a better but not wonderful economic outlook. take a look at the chance of recession. it has climbed pretty steadily after the january concerns over the economy. now it's inching back down. just a 21% probability of a recession to feed in the next 12 months. take a look at gdp. this is the use on gdp over the past 12 months here. we thought in december, 2014, 2.8% was the view for the 2016 gdp. >> that has come steadily down as we increased the economy. and now for the first time the average is 1.95%. the first time below 2% on the outlook for 2016 growth. for 2017, it's up a little bit better, 2.2%. not hitting anywhere near that 2% that people were hoping for. >> still ahead, while you only have a few days to potentially gain thousands, yes, thousands more in social security

benefits. >> shareholders were looking for growth and they didn't find it in the post-recent quarter, despite beating earnings estimates by 5 cents. revenue came in on the lower end of the forecast. they said second quarter sales would be soggy. that came in lower in initial after hours trading as you saw right there. >> the take away for twitter better tan expected user growth wasn't enough to overshadow disappointing guidance t. company warning revenue is not growing as fast as expected and won't in the second quarter, saying the reason is that brand markers did not increase

spending as quickly as expected. there were some positive signs. the company added 5 million active users. this is key, because last quarter, twitter's user base declined for the first time. i spoke to twitter's coo, he claims twitter has a number of futures that won't kick in until the third quarter. new video features for advertisers. i also spoke to the ceo, who said the better than expected user growth is inclusive to the service. she was confident in the ability to strengthen the service and the user base even more. that light guidance for the second quarter along with concern that advertisers aren't spending more, sending the stocks lower after hours. for "nightly business report," i'm julie bores ten in san francisco. >> the food scare for chipotle is seeing results as it fights to win back customers. chipotle lost 88 cents per share, which was yellower than

expected. revenue fell from a year ago. as for the stock, it fell initially if after hours trading. you can see there. susan lee has more on chipotle's quarter. >> reporter: expectations were this is going to be a rough quarter for chipotle, probably the worst since they listed in 2006. the numbers really confirm this, yes, a narrow loss and anticipated 88 cents apiece the revenue declined more than expected. comp store sales, fell corporate 30%. now it's worse than they had expected. it was a close quarter for chipotle after the e. coli outbreak last year. they fell 40% from 2015 highs. it's not stopping the expansion plans. that's a big take away. it looks like chipotle wants to open more than 25 stores in 2016. ebay revenue growth without

paypal the e-commerce posted better than expected financial results. the company saw a more than 3.5% increase in revenue, which is key. the company has been struggling with growth since spinning off the electronic system paypal last summer. net income did fall but was still ahead of expectations. shares initially rose and they fell backwards following a 1% gain during the regular session. shares closed at 2449. meantime, shares of at&t initially rose and dipped back after hours, as the telecom company beat both the top and bottom line t. company's books, just over $40 billion for revenue for if quarter. >> that is up 24%. why? because it bought directv. at&t brought it down fractionally to 3809. eli lilly saw profit fall any%.

the drug maker attributed the law to the impact of venezuela's crisis in devaluing currency. revenue rose, though, thanks in part to a newly introduced drug t. ceo remarked on the company's first quarter results. >> we've had six new product launches starting in 2014. we've got two drugs currently under regulatory review, seven more in the late-stage pipeline so as we said several years ago, we hope that that time really would be a new product story i think that is proving out. we are pleased with the first quarter. >> shares fem. despite reporting an 80% decline in quarterly profit the energy giant bp managed to top analyst's estimates. the company says its earnings were expected. a nearly billion dollar writeoff for damage related to the oil spill in the gulf of mexico. in addition, bp shut its spending target and says it plans on making additional cuts

if oil prices remain low. shares of bp, higher by 5% to 33.49. . lower fuel costs and an increase in passenger revenue helps lift profits at jet blue. they topped analysts earnings target, while revenues fell, however, after the company reported a drop in unit revenue and says it expects another decline. shares of jetblu were down a fraction. lockheed martin posted a better tan 15% increase in sales in its latest quarter which tops analyst's estimates. profits, however, declined in costs associated with job cuts in the company's aeronautics division. despite the design, lay rose nearly 3%. standard & poor's downgrade its aaa exonerating to aa plus after citing lower oil prices and concerns over the company's debt

level. this is the first time since 1949 that exxon ever received a rating lower than aaa. but that leaves only two american companies with aaa rating, johnson & johnson and microsoft. shares of exxon were, none the will up a tick to 8763. ibp raised its quarterly dividend to $1.40 per share up from $1.30 t. yield on thing to is now 3.67%. shares of ibm were up a fraction. turning now to the topic of social security where two popular and lucrative strategies for claiming the benefits of being eliminated. sharon eperson joins us now with what you need to know. sharon, you think time is running out. you asked me earlier today, how old i was. >> it's not time to collect. >> when i was 29. >> that's why i asked you this question. >> it's strange, it has something to do with age? >> it definitely has to do with

age. one has been lucrative for a lot of couples is file and suspend the other is restricted application and they're both coming under attack. it's being changed in a big way. it's actually filing and send will go away t. deadline is april 29th. it affects married couples. one spouse files for tear benefits now but collects later. it actually trirgs the ability for her to spouse to be able collect spousal benefits. why are spousal benefits so important in if you are the hiring spouse, will you have a bigger benefit. you won't have a spousal benefit, which is half of what you are making will be a better deal for yourself. that's why a lot of folks wanted to take advantage of this. i should say a lot of financial advisers wanted their clients to take advantage of this. now they will not be able to. >> go ahead. >> so you have three days. you have until friday, to file and suspend. that's the deadline. >> another part of this story is it's the same thing. >> the restricted application part is changing. the way that works, one spouse

files for social security. the other spouse at 66 or later will actually collect only their spousal's benefits, and allow their own benefit to grow. so another reason why this is so important, this is another way to delay social security. i know a lot of people out there say i want my money right now. but the benefit of delaying social security from 66, to 70, is 8% a year gross. >> wow. >> in higher benefits. it's like basically an 8% return. we're not seeing that right now in the market. so that's a great deal for a lot of people. >> if i want to take advantage of either of these deals, what do i have to do if i win? >> the first thing is consack social security. see if you are eligible for these things. go to some of the social security planning website. they can tell you. consult a financial adviser. finally, social security is not everything for your retirement. you got to save more. you got to save more. it's just part and part. >> very important information, thanks, sharon eperson.

all right, coming up, a 12-hour event that ended with heartache and disappointment and questions about the drug that some patients see as their only hope. >> the fbi reportedly plans to keep its apple iphone hacking methods a secret. according to dow jones the agency knows little about the hacking tools that was used to open the san bernardino terrorist iphone. the business of pay. last night we showed you how widespread prescription drug abuse is in america. tonight, one man's story and what lawmakers are doing about

it. we have part two of our series. >> i was a guy that sold millions of dollars in real estate and had the cornerhouse in nape him's, florida, with the wife and the two new cars. i was that guy and addiction doesn't care. addiction will take anything from anyone. >> bobly long had been sober for about eight years and life was good, until he had neck surgery. >> they prescribed me low dose oxycodone. >> oxycodone is a powerful opoid, a painkiller, shortly after he was hooked. >> i burned through a 30-day prescription in a week. then i started getting sick. i didn't know why. i'm getting sick, because i'm withdrawing. >> he found a doctor, like so many other americans do, who helped his addiction. >> the way i found this doctor was other people telling pe, other people that were in and out of recovery, oh, gow to this

doctor, he'll write you whatever you want. >> that's causing law makers to come up to solutions to try to reduce america's addiction to these powerful painkillers. >> the government accountability office discovered in a single year abo170,000 medicare benefi fish raers were doctor shopping, going to multiple doctors to get the same prescription and going to multiple pharmacies getting them all filled. >> which it's used by medicaid. it locks the patient into a single doctor and pharmacy so prescriptions can be tracked. legislation was recently passed to add medicare to the lock-in program. >> the congressional budget office estimates it will save taxpayers about $100 million a year, which is not insignificant. >> opoid is we'll be right backing havoc on the economy. in the united states, almost half of a billion dollars due to loss of productivity in the work place. treatment centers provide care for many patient was are addicted to painkillers.

>> we are always, always filled, which says a lot about society, unfortunately. >> reporter: he knows all too well, a recovering addict, himself, sober for decade, now the vice president of clinical services here. >> we have a lot of union people, truck drivers, whatever, come through here and started off with pain pills and stepped down, heroin. >> down? >> down to heroin. because it became too expensive. so they actually stepped down to heroin, which sound ridiculous. >> ridiculous, maybe. but a sad reality for far too many. tomorrow, part 3 of our series on the business of pain and the medical advances being made to try and prevent prescription drug abuse. a panel of advisers to the fda voted not to recommend expedited clearance for a drug for a rare deadly muscle

destroying disease, a story we have been following here. shares of selecta, the makers tumbled 26% and as meg terrell reports from hyattsville, maryland, last night's decision crushed the hopes of patients and families living with that disease. >> the most important treatments of my life -- >> reporter: it was an emotional event that lasted nearly 12 hours, which ended in heart break for many. on one side the fda. unconvinced if you have evidence exists to approve a drug for a devastating disease. on the other, hundreds of patients and advocates, convinced this experimental medicine is their best hope. >> we know they're treating and see it. their parents see it. and the patients, themself, feel better. >> reporter: her two sons have muscular dystrophy, a rare wasting away disorder puts children in wheel sales by

teens. no treatments are proved for it in the united states. mcnary was w more than 50 patients and doctors who spoke during a two-and-a-half hour public hearing monday in front of a panel of outside advisers to the fda. the panel was charged with evaluating data, supporting an application for the drug developed by boston's biotech company. they were impassioned. their parents and supporters, met with the panel to recommend approval of the drug, they're convinced is helping them. >> unless you have a child that has muscular dystrophy, you don't understand. >> it's time to listen to the real experts. >> fda, please don't let me die early. >> reporter: but the panel was troubled by the lack of data. they ran a key study in just 12 patients. there was no placebo control. most drugs even for rare diseases are tested in at least dozens of patients before they win approval. given the lack of options, they

are speaking with accelerated approval, which allows, smaller, faster trials. accelerated approval is a mechanism for the fda to speed certain drugs to mark. it's reserved for few diseases, with few or no good positions. it's contingent on running confirmatory studies after it's approved. they emphasized accelerated approval monday. the agency's review of the data was decidedly negative. >> she left the door opened in the last comments she made, that we will consider approving the drug. the clinical review team spent the next hour-and-a-half saying essentially, we don't believe that works or, at best, we don't have evidence that the drug works. >> the stock was hit hard tuesday, after the panel ultimately voted that the evidence does not support even accelerated approval. but the trial isn't over yet. >> what was really important to the fda, there was a lot of

input from the patients about things that could be passionate for a clinical trial. some of the things they experienced. i think hopefully that will be used in the overall consideration. >> reporter: the fda has to decide whether to approve the drug by the end of may, patient advocates are still hopeful. and finally tonight, former citigroup sand weil and his wife joan has given money to the university of san francisco to finance a research center there. it's the biggest ever to the school and the biggest ever by the weils. >> up until recently, we weren't able look at a brain, when they were alive. now we have the tools to really see what's happening in one's brain, and, therefore, concede the bad things that are happening. we get to understand more about it. and i think we are looking at the decade that we are the

neurosciences will catch up. >> they were among the first to fooin sign onto the giving pledge started by bill and melinda gates and warren buffets. it challenges billionaires to give away a majority of tear wealth. the weils have been generous and active philanthropists. they stay on top of the causes. >> a great thing to be able to to do. >> thanks for joining us. i'm sue herrera. thanks for joining us. >> i'm tyler mathieson, thanks for joining us, eb. we'll see you tomorrow.

tonight on the computer history museum presents revolutionaries. >> so if we can basically have a world where every child is educated, every person, every citizen has economic opportunity, they end uptaking charge of their own destiny. john wood and matt flannery have succeeded both in computing and social change. is it possible to do well and to do good? we explore this question. >> major funding for revolutionaries is provided by the intel corporation. >> thank you for being he