joining us now from new york is the former reagan deputy assistant secretary treasury and abigail doolittle. abigail, i'm going to start with you. carl icahn strikes again. was this tim cook's best day ever or worst day ever? >> i think it had to be probably pretty close to his best day in the near term. this is probably a game changer for apple. a real inflection point, a bullish inflection point. i have to imagine that mr. icahn is seeing something in that business model that's going to drive revenues higher and stop the slide of messy quarters. i think you're going to see gross margins restored. i think in the near to medium term, we're probably looking at a $570 stock. this. co-s from someone who's been pretty bearish on apple for a while. >> but david, icahn's already making demands. that's what he does. he wants a big stock buyback. when tim cook got this call today, was he happy or not? >> i think he was probably happy. remember the previous demands on apple were that they do something financial engineering. and apple responded by borrowing a bunch of money and paying a bigger divide

cnbc contributor abigail doolittle joins us on the floor and jim is out in chicago. abigail, you look at the numbers and the patterns and the technicals. what are they telling you? >> right now i'm reminded of a great quote by warren buffett. the time to get greedy is when others are fearful and the time to be fearful is when others are greedy. i don't look at this environment as greedy. we're seeing a lot of trade together upside with complacency. it tells me that investors may not want to get in at these levels for three reasons. first, we've really come too far too fast, up nearly 160% in just a little over four years. >> isn't that amazing? >> yes. this market needs to catch its breath. second, much of it is driven by the fed. what if the fed does taper and all the other central bank support around the world? we don't know if that kind of aggressive support will work in the end, and i don't know if investors need to subject themselves to that at this point and a weak macro environment that's starting to bleed elsewhere. coca-cola, fedex, ups, they have missed and

anyway, let's talk to our two distinguished guests, abigail doolittle is equity strategist at the seaport group. and the "forbes" executive director. china is, in fact, stabilizing. i don't want to spend a lot of time on all these foreign markets. but look, the one that bothers me the most is india. india moving left. india bloated bureaucracy. india high inflation. india is the canary. >> it's not good for economic growth. it's subsequently not going to be good for earnings growth. we've seen with emerging markets in general a compression of net profit margins, from 8.5% three years ago. if you look at the forward peak, looking like 6.5%. >> abigail, another one that's moving left is brazil. i know they were pro-market years ago, but they've long lost that. they're also getting smashed by the drop-off. brick is brazil, russia, india, and china. we're not going to talk about all that. to me, the brazilian thing makes no sense at all. >> you know, speaking more broadly to the brick nations and to the emerging market, i think the important thing to think about here is they are in a defined