this is "nightly business report" with tyler mathisen and susie gharib brought to you by. >> sailing through the heart of historic cities and landscapes on a river you get close to iconic landmarks, to local life, to cultural treasures. viking river cruises, exploring the world in comfort. apple of your eye, the company that was once the darling of wall street said strong iphone sales helped boost results. is this the catalyst that will help turn stock around? >> healthcare scams. the new exchanges are right for abuse. what are officials going to get

out front? >> working longer, more americans are doing it so they don't out live their money. a woman doing it on her terms, how to not out live your money. that and more on "nightly business report" for tuesday, july 23rd. good evening everyone. apple got shine back today. it surprised investors with stronger than expected earnings after the bell thanks to massive sales of the iphones. but ipads and macs came in below. seema? >> technology earnings are not off to a strong start expectations coming into apple's report quite low. however, apple did beat the street expectations on the top and bottom line, but the big number that is getting wall street really excited, iphone ships of 31. 2 million came in

higher than expected. tim cook said we're especially proud of the iphone sales of 31 million and the strong growth of revenue from itunes, software and services. apple's product pipeline cook says we're laser focussed and working hard on amazing new products that we will introduce in the fall and across 2014. apple did return $18.8 billion in cash to shareholders through dividends -- excuse me, through share repurchases this quarter. morning star an list brian says what caught his was apple's massive $16 billion stock buy back this quarter. lastly, the upbeat results are helping many suppliers like texas instruments move to the upside. tyler, back to you? >> seema thank you very much. here with their thoughts on apple's warnings and portfolio

manager at investment partners as set management. welcome to you both. these numbers on certainly the bottom line were a positive surprise here, but there were some worries on market share in the iphone marketplace and gross margins. take us through those. >> thanks for having me and always a pleasure to be with you, tyler. the hand set and tablet space. the tablet space was quite disappointing. a good credit where it's due and push back against the irrational bears, 31 million phones sold although a lot of them looked like 4 and 4 s, the portion of the phone sales they made. this is enhancing business about two things, margin and market share. they are the stories less good. android is the dominating operating system, that's not

about to change. it didn't change this quarter and came down to 36%. still the best margins in the distance and apple takes home half the total profit. >> greg, let's get you in the conversation. what does this mean for apple stock? so many investors don't know should i buy at $419 or sell into the rally perhaps? >> this is a stock of inflection points. if you look back a year ago, this company couldn't do anything wrong. the earnings estimates were 50% higher than now. and, you know, they set the bar so low, i think this time, that they couldn't help but beat the phone at max put it, certainly exceeded and that will boost a relief in the shares. but, you know, i don't think this is a stock that will mark it's way back to 700 any time soon, but it would look very washed out to me. it's six to seven times

earnings, x cash -- >> let's get both of your views on where you think the stock can go. max, let's start with you. where do you think this stock is, let's say, a year from now? >> it depends a little bit to the other point there that it really has to do with the ois 7, the operating system. iphone 5 or 6 coming. this is a 475 to 525 dollar share price. that's where it should be given the price, buybacks and market share unless it falls flat on it's face. it's cheap with the $11 shares have spiked up since the 5:00 conference call came. >> you're nodding your head -- >> absolutely. if you look just -- forget just earnings but, you know, tim cook mentioned that there is going to be amazing products -- >> where are they? where are they? >> everybody is looking for these cool products. >> the stock price really is

discounting any of those sort of products coming out. this is a company that takes time and comes out with a product that resinates with consumers, as opposeed to competitors that put something out, and i won't name names and write a billion dollars of them off. they don't tend to do that. >> can apple and tim cook come out with the cool next gadget? >> they had their time in the barrel and every tech stock gets that way and thank goodness, because that's a good opportunity for us. in term s of what they are looking forward to, i imagine there will be penetration to the living room, there has to be. there just isn't a battle for eyeballs to deliver content after you wake up -- >> final, should they buy back more and pay the dividend? >> the last major product was a

major flop, too. the maps fiasco. they don't have that again. they bought two other mapping companies and looks like they will take another bite at the apple. the go rw can they hold what they are good at with revenue behind them and get is 07 right. if they do, we'll talk about a 500 to $600 story. if they don't, they will have trouble depending $425. >> thanks very much, investment partners asset management. >> terrific, thanks. turning to wall street today, the bash on solid earnings and conflicting economic data. manufacturing in the central atlantic region declined while the federal government said home prices rose 7% from a year ago and the dow closed. the blue chips added 22 points

ending at 15,567. the computer networking company and cisco agreed to buy cybersecurity company source fire for $2.7 billion in cash. shares of source fire red hot up nearly 28%. the deal comes a day after a survey was released that said cybercrimes like identity theft and hackings cost the u.s. economy a half a million jobs and as much as $100 billion each year. turning now to our market focus. four dell come upon innocents with earnings. profits surged 17% in the quarter benefitting from a big increase in orders in the engine division and otis elevator and the company raised earnings outlook. they bid the stock up to a new all-time high. united technologies rose to $105. dupont touched a new high

after profits came in above but revenues shy. dupont is exploring for the chemicals unit. shares dwindled as investors sold off at twice the volume. closed at 57.12. some at&t, the dow component reported higher revenues than expected as it added more than half a million wireless subscribers but profits slid 2% as operating expenses jumped. shares were slightly higher closing at 35.81 6r7b8g. travelers said it would cut prices and costs to maintain margins. despite profits well above they lost interest in the stock and travelers closed down nearly 3% on triple the usual volume 82.21

the close. ups warned last week the cfo said results were below expectation because a disappointing performance in freight forwarding. ups does expect growth in earnings. shares dropped a dime on the day at 87.51, down a fraction. netflix shares fell 4.5% today. investors got a chance to react on news we told you about last night that quarterly earnings were better than expected but new subscribers came in lower than analyst estimate. shares are up more than 180% from a year ago. so what is next for the streaming video giant? and where does ceo reed hastings see growth for the industry? julia gets answers. >> dismussing concerns about stocks declines and subscriber growth pointing to the total turn around. >> there is always ups and downs

in the short term of the stock price but the big picture is great. a year ago at $80 and now we're at $250. five years ago 30. so we're feeling great about the long term. >> netflix has undergone a transformation from renting dvds by mail to having 375. -- 37.5 million subscribers. >> i used to spend my time on postal equipment and figure out the right sending method to use and now it's streaming and the next thing is probably a very long time away, because streaming is going to be around for a long time. >> hailsings says he's not interested in having netflix offer live program or selling video on demand downloads but rather, he wants to stick with what netflix does best. >> i don't trust anyone. >> the netflix' expertise is not hit movies and tv shows but original content. four of the five original including house of cards and the

organize is the new black is so popular they are picked up for a second season while arrested development has an up tick in subscribers. >> they are giving netflix subscribers a reason to stick with the service. content on the site that will work it's way through the model stock that should go higher. >> they faces growing competition from amazon ramping up spending on exclusive content but hastings says he's not concerned. >> they are really two different chants. abc and cbs and compete for viewing and time but not different competition. people watch shows from both. the one with the most content is cable and satellite and they continue to get watched. >> what will the clouded land scrape mean down the line? >> that's hard to tell. i have to go see my crystal ball. still ahead, will the new health exchanges be a boom for

identity thieves. what they are doing to prevent fraud and abuse but first how the international markets closed today. we told you yesterday golden sacks, jp morgan made $4 billion in commodity related expenses. they questioned whether big commercial banks should be allowed to control where houses where metals are stored and whether that's harming consumers and businesses. at today's hearing an executive from miller coors described it. >> the banks receive rent each day the aluminum stays in the warehouse. it evers it harder for miller

coors to get the aluminum we need to ever the products we sell to keep our employees working. >> aluminum cans $15 billion passed on to consumers over the past three years. a survey of corporate chief financial officers finds a majority gave the u.s. economy the highest score in five years and showed confidence about more growth in 2013. but, when they were asked about the potential negative impacts on the economy this year, an overwhelming number of them sited healthcare costs, and the changes facing companies compiling with changes in the affordable care act. >> and as part of that affordable care about, dozens of states are opening health insurance exchanges by october's deadline but the rush to open them up is raising concerns about fraud and privacy issues for those applying for coverage. bertha coombs has the story.

>> reporter: here you can shop, compare, pick and purpose chase the health plan -- >> reporter: states are rolling outcome pains for signing up for coverage under the affordable care about. but with controversy and confusion surrounding the program, the former executive director of massachusetts exchange says a key task for officials this fall will be building trust in the system. >> trust is a critical element because people in general will confused. go back five years ago, they are confused about insurance, and this is a very complex comprehensive set of changes. >> reporter: americans will be asked for social security and income data when they sign up for coverage on the exchanges this fall. last week, members of the house grilled obama health officials about whether they will be able to trust that their data will be safe on the exchanges. >> are you 100% finished establishing appropriate privacy

protections? >> no, we're not. >> if not, how much and when will you be? >> we're probably and this is a very kind of hot ballpark generalized roll it up figure, with regards to privacy and security probably about 80%. >> reporter: in california the state's exchange is set to hire 21,000 navigators to help people with the enrollment process. dave jones worries there isn't enough safeguards in place to weed out identity thieves. >> how benefits exchange to adopt a system of fingerprinting, background checks, minimal training and certification but we believe they should go further. >> reporter: she agrees officials need to get out in front of frauders. >> they tend to be ten steps ahead of law enforcement. >> reporter: she sees the biggest potential for fraud happening online through imposter exchange web siesites official looking e-mails. >> consume series will feel compelled to respond to e-mails

because it's a law and we want to ever sure they realize that could get them into trouble. >> reporter: officials with new york state's benefit exchange says they won't launch their campaign until this summer but a big component will ever sure residents know they should only sign up with insurance with certified and officially recognized navigators, counselors and brokers to avoid being scrammed. for "nightly business report," i'm bertha coombs, new york. for the first time ever, major league baseball suspended a player for more than 50 games, even though he had no prior violations of the drug policy. ryan braun a former national league most valuable player will miss the rest of the 2013 season. now he's not contesting the suspension which comes as baseball deals with national tv ratings and markets. here on his take whether the millionty billion-dollar business of baseball can use

performance enhancement is bob from st. louis. bob, is this news a good development for baseball the sport and the business? >> i think it's good for the future. it's bad for the immediate impact. i mean, right now, fans are upset. they don't know what is clean, who is dirty, but major league baseball is coming out and saying hey, if you guys cheat, we'll catch you. so we'll ever this sport completely kplaen and y lly cle believe in us again. they believe 2014 and beyond it will be a better sport and more people will like it. >> do you think the business of baseball is sick today, bob, the business? >> no, it's down. i mean, the weather hasn't helped. you know, we've had, what, 32 postponements, we had 28 all last year. some of the big market teams are down. so that chance is down there, so the tv ratings are way down.

i think the tv rate pings are d 40% with the team struggling and losing star power. the sport is healthy. it will be 8.5 billion this year in revenue, which is an all-time high. >> if you look at this incident as crisis management, what does the mlb have to do to restore trust and restore credibility to the sport? >> you know, i think in this case they are saying hey, we'll go after bigger stars here. we're not just going after these small fries or guys you haven't heard of. ryan braun plays for the milwaukee brewers, which is commissioner bud's hometown. wonderful talent, good looking guy, well-spoken. he's one of the last guys they want to catch. baseball is saying if we can take him down, we'll take down anybody for the good of the game. >> you got brawn, a former mvp

and a-rod a former mvp tied to these drugs, cabrera the leading hitter last year took a suspension for the giants, one of this year's contenders for the cy young at one time or another linked to these things. they have got guaranteed contracts. is the only way, bob, to clean up the sport to ever those contracts not guaranteed, if you cheat, if you use peds, you lose the money? >> yeah, that's very interesting to see if that comes up in the next labor agreement, tyler, as far as that clause. right now, i think the union would go ahead and say you can do that but you got to ever sure it's intentional and not accidental. ryan braun loses $3.4 million in sally this year but he has $127 million coming. i guarantee if the brewers could get the contract, they would do so. same with the yankees who still owe alex rodriguez another $98

million. >> what do you mean by accidental cheating, bob, quickly? >> if you take something from a store and you didn't realize it was tainted and gnc product years ago, didn't know that was tainted instead of going through a clinic and deliberately cheating. >> we'll talk about this for quite awhile, i'm sure. thank you so much. still ahead on the program, we continue the special series on how to not out live your money. one way to do that is to work longer and we'll meet a woman who is doing just that on her own terms. here is a check on today's treasuries, ka mcommodities and remember seeps.

. >> ford motor will post earnings tomorrow and today it posted help wanted signs. the auto maker plans to hire more than 3,000 white color workers by the end of this year, 30% more than earlier estimates. most of the new hires will be in engine nearing and software and will work at ford's dear born, michigan headquarters. staying at a job longer than planned is one way to keep money but the trick to that may be doing it on your own terms. baby boomers and would-be retirees are doing it and since so many are self-employed and turning a market they are willing to secure financial features. how to not out live your money, sharon ener spperson looks at wg

longer. two challenging indums indust -- industries before taking it on. >> i believe any time you work for other people, there are so many limitations. >> reporter: after being downsized from her job at an auto manufacturing plant she saw an opening for a security officer. she took it and started to learn that business from the ground up. >> what i learned was the security industry is a very, very lucrative industry. >> reporter: in 2001 she started all in one security. the 59-year-old self-employed runs a million tie million dollar enterprise with more than 200 employees. >> we integrate people with technology to afford our giants with a full service, total security solution. >> reporter: parker chose an industry like many self-employed workers focuses on providing a service. >> what we see is most of the individuals who start businesses

later in life represent professional services. >> reporter: a recent survey by aarp found 10% of workers ages 45 to 74 plan to start a business after they retire. 15% are already self-employed and the majority of their businesses are successful. >> once you have life experience, you probably have a shorter pathway to being successful, and that is something else that we're seeing. so again, the majority of people that responded are saying it's roughly 70% are profitable. >> reporter: parker says owning a security business certainly helped her own financial security and with a diversified portfolio and real estate investments, she says she will be ready to chart the next course. >> ready to retire in the next three to five years. financially i don't have to worry about what that will look like. i will not have to work,

although i know i will continue to work. for more on our story, log on to our website, nbr.com and tomorrow the series continues at a look at why some investors are considering less conventional retirement strategies to help them avoid out living their money. and finally tonight, it doesn't pay to steal another man's winning lottery ticket. that's what happened to a syracuse, new york man who was sentenced from to 25 years in prison for stealing a ticket. he stole it from his parents convenience store. the judge imposed the maximum sentence saying this is quote the most greed i've seen in a long time. >> making your own luck but that goes beyond. let us know what stocks you want our market monitor to discuss. log on nbr.com and click on the link there. and that's "nightly business report" for tonight. i'm susie gharib, thanks for

joining us. >> i'm tyler mathisen, thanks from me, as well. have a good evening everybody. we hope to see you back here tomorrow night. "nightly business report" has been brought to you by. >> sailing through the heart of historic cities and landscapes on a river, you get close to iconic landmarks, to local life, to cultural treasures. viking river cruises, exploring the world in comfort.

ca i'm catherine kobiashi in tokyo. glad you could join us on this edition of "newsline." it's wednesday july 24th. i'm catherine kobayashi in tokyo. experts have added up what they think is cost of cleaning up fukushima after the nuclear sdas