there were a lot of conversations going on about how and when. but applean incredibly innovative company and they make products that people want. they have enormous potential to crack the television world open. emily: in tv, could they end up being just a set top box? david: i think that is possible. they could also be a tv or a box next to the tv, there are a lot of different ways. emily: have you heard about -- david: the fight over the living room has not been set up yet. -- has not been decided yet. i don't think that has been decided yet. tv is a huge part of who controls the living room. who controls the electronics in the house. emily: what about the entertainment industry in general? where is it in five years? what are you watching? david: you will continue to see the blurring between movies and television. you will see television shows, stuff produced primarily for television that will play in theaters. occasionally, an out of home collective experience. i'm already feeling interest and people are coming to us with this. when twin peaks is out, pe

losing a little bit of steam from our rally to the s&p higher by about .5%. apple been recovering on reported could be entering the auto market. is the tech giant preparing to enter into a new industry? it is heading towards its lows of the session, down about 2.5% today. ♪ thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. ♪ betty: from bloomberg world headquarters, you are watching bloomberg markets. let's look at the headlines. mark crumpton has more. mark: thank you. donald trump and campaign manager are being sued by political strategist who is accusing them of inciting a virtual mob to bully her. the behavior came after she questioned mr. trump's fitness for office. this was filed in

i used to like that song. >>> everyone's talking about it. apples drop for the first time ever, and quarterly revenue for the first time in 13 years, but apple's cash on hand hitting a record high of $233 billion cash, almost all of it over seas, and it is not alone. u.s. countries now have more than $2 trillion parked abroad. steve, is this proof we have to cut taxes at home to bring all of that money back home? >> yes, david. we have a double whammy from if, not only bringing money back home by getting rid of the stupid tax code, but you remove barriers to investing here at home. there's business investments that are not good. it's shrinking. so we got to have that tax reform, and you'll see we'll get money coming in and domestic money put to work. >> bruce, $2.3 trillion abroad. if that came back, that could be a heck of a boost to the economy. >> well, certainly it could, but one of the things that the candidates are talking about is the repatriation plans or a tax holiday. they tried that with the jobs creation act signed into law by bush and

lots of folks are concerned about apple's slowing growth. the thinking behind recommendation. guest: they're smart phones being created in the average price of an apple phone is $700 versus android at 300. all of the wraparound create apple walk-ins. our survey says the average owner stays in the ecosystem for eight years which sounds like a subscription business to us. especially in a fickle consumer world where people move from product to product. is that your thinking? i would say it's about the global platform and apple having the dominant, wealthy aspect of that, but it has margins higher than the walt disney company and earnings higher than facebook. if you strip away the hardware label, it would trade at $200 a share. what about global growth? that's a big part going forward. about 40% of the world does not have smartphones yet. that adds up to the million units to apple. carol: even though they are considered the higher end? we talked about the chinese domestic makers and less expensive phones that are out there. where do you see the

i know we will talk a lot about apple but you do cover verizon stocks. u think about them making an offer for yahoo!? guest: it has been talked about for a while. waysare looking for other to go into the growth area. they bought aol, tim armstrong as a ceo. they launched a product called go 90. there is a dedication in this company to try and expand into media properties and i think this is just an extension tim armstrong is tried to get into. carol: it would be good for verizon or not? acquisition. small anything looking for growth, we would legacy them focus more on finding ways to add more capacity to their network. dish is a massive transformational acquisition. this is a small thing tim armstrong is doing to enter into the media business. carol: you have a call on apple today. you cutting the earnings estimates. what is your thinking behind that call? guest: the issue's upgrades. the product apple sales is very high-priced and in the developed markets, customers were upgrading every year in some cases. seeing a muchare slower upgrade rate. people are

plus, we also get results from apple, chipotle, keep it going. that's in just about 15 minutes. pple deliver on expectations for iphone sales, that's the big question. you're watching cnbc, first in business world wide. i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade. e.t. phone home. [ soft music ] when you find something you love, you can never get enough of it. change the way you experience tv with xfinity x1. >>> cnbc global headlines, take a look at ebay earnings just crossing the wire. looks like a beef for earnings share of $0.47, two cents better than the analysts were expecting. revenue, $2.14 billion. bettering analysts' expectations there. for the second quarter, revenue actually is coming in ab

belski talk about it. talk applewill talk about the dynamics of the greater technology business. from new york and frankfurt, this is bloomberg "surveillance." ♪ francine: we are talking livingcs and also in the market as a lot of traders want to get into havens. i'm in frankfurt. tom keene in your. let's get to the bloomberg business/. -- flash. saudis plan to double its size by adding dozens of companies. it wants it make it easier for foreigners to invest. new rules on corporate inversions could threaten a merger between pfizer and allergan. and would limit the company's ability to take part in inversion deals if they have done the wind thin in the last 36 months. tesla grabbed the spotlight. 276,000 of its new model 3's. when it came to delivering, the company came up short. selling a little less than 15,000 cars in the first quarter, or delivering. that is less than expected. tesla blames a part shortage. is. there it they have got the new one out. i never bought the story. just sort of don't get it. vonnie: you

emily: let's talk a little about apple. shares have been falling.er where this is going. cory: it has hurt the overall market, too, which i have to pay attention to, now that i'm doing a radio show. the iphone is so much more important to this company than everything else. you and i talked about it this week. in its first year, the watch sold more than the tremendous and successful iphone sold in its first year, but it's such a big company that the iphone is the governor for everything that happens. falling iphone growth is a real disaster for them. the guidance is weak. fallow period for apple before the next phone release. emily: what about the tale of three cities when it comes to the social networks? facebook killed it. linkedin beat, surprisingly. twitter, not so good. cory: it's interesting that the smallest of them -- we have been talking about this idea. the winning companies in social media and in this era of the web are not two or three times better and bigger than the second company. they are 10 times bigger or more. arguably, twitter and

about tough comps. the iphone 6 was a blockbuster. a year ago, apple shipped 61 million iphones. he talked about the macro economic weakness and headwinds. the key question for investors is where is the iphone franchise heading from here. cook sounding very confident and very upbeat. he's still bullish on this franchise. he talked about new markets to india. a small market share there relatively. india popping more than 50%. he talked about the iphone se with the smaller form factor, relatively cheaper. he said that's opening up the iphone to new users, and talked about taking market share from rivals. a number of android switchers. also, greater china, you saw revenue down year over year. cook was telling me to break apart that region. hong kong he said was down hard on a stronger dollar. mainland china was down 7% in currency, off a tough comp. he continues to be confident about china, that it's stable. recognizing it's not growing like it did last year at this time. this conference call is just ticking off. i'm going to hop on it and bring you more headlines as they come. >> jo

joe: it's funny, too, because one of the main concerns about apple right now is what is the ? xt product after the iphone the product people are most excited about seems to be coming from amazon, the alexa. it is still early, but people can control everything with their voice. i hear more talk about that as a device than anything else. of ant: you are the owner echo, right? tracy: yes, the echo. the trigger word is alexis. that's the confusion. scarlet: let's bring in cory johnson to look at these results. we have to start at amazon. for the bottom line. the consensus estimate was $.57, gaaphis is a caa -- number. cory: it is the biggest quarter they have ever had at amazon web services. yearis a revenue change over year of 55%. that business is growing faster as it gets bigger, which is just a sight to behold. it shows the power of the cloud and companies picking amazon when they make that move. joe: how big of a deal now is ? is to the company how significant is the growth of amazon web services to the long-term story to the justification? cory: on a consolidated basis, you s

apple employees. tony: i did get a call from steve about that. ♪ emily: 2008, you left apple. 0, nest was born. tell me how the plan for nest was hatched. [laughter] tony: because of my time with my grandfather, i learned a lot about houses. i was always fixing them, even before nest. when it came to designing a home for a family, i did not just let an architect run with it. i wanted to get into every detail. that is when i found all of the problems in the home, specifically heating and cooling. even when i told my wife, like, wanto make a thermostat." she looked at me like, "you're nuts." i said, "no, let me tell you." when you explain the situation, that this is not just a thermostat -- their eyes perk up, and they go, "i think you should do it." emily: you reinvented the thermostat, the smoke detector. you gave cameras -- home security cameras, a complete makeover. before you even got to the cameras, less than five years passed, and google snaps you up. you sell to google for $3.2 billion. tony: i think the first decision was, should we allow google to invest in the company?

what do you see going forward that gets you the most excited about apple. he eco system itself but is there something that you're seeing that you think could be the next big driver for apple? >> i really like the apple pay business and this focus on cars and other services that increase the annuity stream business with apple and increase the revenue per their billion active devices today. >> you haven't covered apple since 2014. is that right? >> that was the predecessor analyst. needham hasn't. that's correct. >> you have a hold on disney is that right? >> i do. >> weigh in on this new drama now that we're faced to deal with with him no longer the heir apparent? >> i think board put shareholders in a position of having to pray every night that nothing bad happens to bob iger. that $160 billion company doesn't have a succession plan. even sumner redstone has succession plans. it's depending on one guy for all the senior management here. >> well those are strong words. are you suggesting that the stock is uninvestable in this current environment? >> the risk

. >> i'm curious, if last night we're having a question about apple, where do you have a conversation about so much could be happening for facebook. clearly they're still growing. u.s. group, very impressive. but in terms of how they're dominating the digital ad space, to the extent that this is really where people are paying them, and paying them multiple, i think it's a case where at some point it's not going to get any better. google and facebook, at this point, dominate digital ad in a way that i don't think they can forever. >> for this particular line of business, they've got all kinds of businesses. >> i disagree. i think a lot of bullish sentiment. that's where i would disagree is, this is no longer just a facebook story. how about the 50 acquisitions that zuckerberg has done. how about messenger, and instagram, and everything that he has created over this very short period of time that they've been a publicly traded company. it's absolutely amazing to me. go back to mobile. can they get mobile. can they really figure this out. now it's 82% of the revenue. up 73% year over yea

apple. that is the big story this morning. down about 7% in pre market trade. eyes on apple, on twitter and on facebook which reports today. >> global diamond demand for jewelry. strength in the u.s. market, more so than the rest of the world. courtney reagan joins us with the details. and what this tells us. >> and beautiful diamonds as well. there's been concern the luxury market is slowing. but the latest report reveres that total diamond sales are strong in the u.s., which remains the biggest market for diamonds and growing in share. debeers says told sales grew 5% in 2015 hitting a record thanks to a number of trends. other regions were different. joining is the ceo steven, we're 5 month into 2016, how are things so far this year? >>. >> 2015, what a story for the u.s. the world's largest diamond market. yet still growing strongly, 5% up in 2015 and so far the first quarter of 2016 the information we're getting saying much a continuing trend, that the u.s. continues really to be the foundation of demand and while globally there are certainly some head winds

apple? >> this is about requests for e-mail. r thousands and thousands of e-mail accounts or other data, as opposed to one phone in the apple case. it is a different law, different constitutional rights. microsoft says it has a first amendment right to tell its customers bought requests for their information. that is a basic right to know that the government is investigating you. and basic right that microsoft ties to tell you. ,mily: they talk about this law made into law in 1986 before the world wide web, decades before anything was stored on the cloud. governmentatt, the is still looking for physical files. how are electronic files different? just because they are stored in a different format, shouldn't the government be able to search and then? -- search them? matt: that is what microsoft is raising. what is the difference between electronic files and paper files? how they are kept and providing notice to the parties that own the files might tamper with the investigation if there's a high priority and likelihood of them being

as josh just alluded to, we will probably hear a lot more from apple tomorrow about services. ey trying to shift attention i guess away from the growth decline in the iphone. is there any way that that could work given how big the iphone has been for apple for years and should it work? >> it could work. it could work over time. the long-term story of the future of apple is they are going to need a bunch of different things to kind of fill in the growth gap left by the iphone. the iphone was this juggernaut but it's hard to see how it could kind of match its previous growth. you have a lot of different kinds of things they are trying. perhaps it will be ipad pros. perhaps it will be smaller macs. perhaps it will be the watch, maybe. then services. services i think is the big one because it's tied to the iphone and you know, for many of us, the more we use our iphones the more we buy and apple sees potentially a good business there from its most loyal customers. >> so who's got the best business model of this era in tech, which roger mcnammee just told us he thinks is at an in-be

there are still a lot of questions about apple strategy. apple said there is no middle ground. these open cases, these issues going forward? bruce: we have not provided source code to the chinese government. we did not have a key 19 months ago that we threw away. we have not announced that we are going to apply passcode encryption to the next generation of icloud. we just want to be very clear on that because we heard three allegations -- those allegations have no merit. emily: apple is saying they are standardizing encryption with , thenew generation of ios same standard for every single customer. the government is still trying to get apple to help them open a drug dealer's iphone in new york. the suspect has already been found guilty. the government wants to use additional potentially additional information to find out more about this particular case. there are a dozen or so cases open across the country. this issue is not going to go away. lisa: yahoo! is reporting earnings after the bell. do expect them to comment on the bidding for their assets? emily: they will be asked a

apple. we talked about the ripple effect to some apple suppliers. it is all a big cap tech that is feeling the pain. microsoft, amazon also trading lower. we will hear from facebook and amazon later this week. 78 takes a look at apple's earnings disappointments. there is apple's stock price. the last time earnings came in below estimates was back in 2012. this is the earnings related implied volatility related to each of those various earnings reports. you can see that drop we are having in the stock right now. other earnings we are watching today, both disappointing and you can see shares are trading higher. international, the profit margins disappointing for this company. goodyear also coming in below estimates. betty: thank you so much. julie: should we look at oil? let's take a look at oil prices. we did see that big drop in oil. that coincided with the drop that we saw in stocks as well. down .5% after that weekly inventories report. too: that has not dented much the fortunes -- the gauge is still the best performer on the index today. earnings

apple? andrew: and you've are having me. this is about request for e-mail. it is a request for thousands of e-mail accounts or other data as opposed to one phone in the apple case. it is also a different law at stake, a different constitutional rights. here, microsoft has a first amendment right to tell its customers about request they get for their e-mails. that is a basic right that you have to know that the government is investigating you, and a basic right that microsoft has to tell you. emily: what is interesting is, they talk about this law -- it was made into law in 1986, before the world wide web, decades before anything was stored on the cloud. i wonder, matt, the government is still looking for physical files, how are electronic files different? just because they are stored in a different format, shouldn't the government be able to search them? matt: that is exactly the point that microsoft is raising. what is the difference between electronic files and paper files? they have a law about the way they store those files. how they are kept and providin

. >> how about apple? >> throw that in there too. >> i think this problem with juniper is very much problematic to the company itself that's given leeway to gain share. this stock trades at a 30% discount to ibm, microsoft and oracle. it has a 4% dividend yield and their quarter included january which is really bad. we all know that. sis coe's quarter does not include january and the company has been very confident in meetings most recently. this is an opportunity to i took a shot. >> so we're not worried about just weak or overall demand. do we agree that this is simply a case of execution issues and the fact that sis coe and chuck robins have been able to take share? >> i would think execution issues and that's a clear issue right there and i agree any pull back is an opportunity. you get to see juniper down 9%. you would expect to see the sentiment pulling it down further than it did. it's already off of that a little bit so great job of the execution by you. >> now it's down to 45% of the business. the

. >> we are not talking about apple. the promise of an affordable car from tesla motors has millions -- hundreds lining up to make reservations. people put down $1000 for a car they had not even seen. at $35,000 is priced and will go on sale at the end of 2017, but a cheaper offering will be its biggest test yet. sleek, high-tech, and spacious, all for the price of $35,000, that was the promise from tesla's ceo elon musk as he unveiled the model 3, the affordably priced electric vehicle he has been planning for the past decade. tesla teaming up with panasonic to build a $5 billion battery factory that will lower the cost of the car. >> it is a combination of high cost. and the lowest the first to put down a $1000 deposit, even though the car has not gone into production yet. putting down a deposit on a car you have not seen yet, but it is a tesla and it is affordable. 3 hopes to compete in the lucrative electric car market that only keeps growing. in 2012, the market was worth around $84 billion. tolysts reject it will g

when i think about apple, also, talked about different levels of the stock. you know, i look at 111 on the stock and look trading back up through the 200 day. this guy has done it three times in the last two and a half years and failed at two of the three so i think apple doesn't climb straight through, obviously reacting to headline news. again, guy is referring to the dialogue semiconductor news that we got a couple times out of germany being a leading indicator with what's going on with true apple demand. other parts of the emerging world aren't going to adopt like china has. it's very possible, but i think overreading this news today is absolutely crazy after a run in the stock we've had. >> you know, when tim points out the 200-day moving average haven't seen that level in apple or holding that level since october, november last year. >> right. >> so that's important and it's making a series of lower highs, so that is concerning, but i think we've been through this before, as guy kicked off the show. i think all of this stuff is sort of old. for me i'm i

you look at the nasdaq that was all about apple. a little bit about twitter. mostly about apple. u take a look at alphabet as well, playing into that. that's, of course, next week. looking forward to what lee's going to be talking about and the relevant of us about facebook, can they be the one that stands out from that crowd. the rest of them all worn. could this be the one that actually does very well. >> we can till on your screens there, carol, facebook looks like it's dumbing out wi icomin beat. but thoughts as well, not necessarily in this just yet, but a number of big technology companies at this point? >> absolutely. and i think it's very caste of the broader concerns that we have going on. >> actually, you can see facebook shares. i don't mean to interrupt. they're popping on the results. let's get straight to julia boorstin. >> oh, i lied. julia, go ahead. >> i'm ready, kelly. just getting the numbers in. that's right, revenue coming at $5.4 billion. that rose past estimates. earnings also beating expectations. earnings coming in 15 cents better than expected at 77 cents

it is interesting to think about one billion iphone users out there and the power it has for apple. 's also important to say investors are getting all dramatic because they are worried about the stock of apple. and the importance in the technology ecosystem, it doesn't change that at all. \this company is still hugely important for which apps to build, how you engage with customers, the whole ecosystem. we see sales services up 20% and it's interesting. it doesn't have the same margins, it doesn't have the same revenue and volume. it represents the beginning of a shift of how you think about these companies. i've been arguing with ceos for some time. it's about your install base and how much you engage with the customer, not how many iphones you sell to them. emily: bob o'donnell, editor large cory johnson, stick with me. cory: whatever you say. emily: richard windsor says apple will never put a branded self driving car on the market because it would be "catastrophic for the company's valuation." the margins would be nowhere in your the 40% apple earns on iphone and ipad. and sometim

. >> i was going to say what about apple. >> we all remember forest gump. there's no question it happens. it is a lottery. it's not the way warren buffet invest. it's fun to do. smart friends who own tesla stock and tesla cars. i think they're probably going to get more enjoyment out of cars than the stock. >> is apple an exception to that rule because of steve job's vision for the future? does it have -- you know elan has some of that as well. how much has to do with a visionary the head of a company like a tesla or like an apple? >> at least 100%. >> okay. >> there's no question that the person at the top in those situations is the do or die fortfor the company as well as for the investor. you look back at the history and so few of them had anyone like. it's a wonderful marketer. he looks to be a pretty good ceo. he looks to be a pretty good visionary and maybe a good engineer. he's done a lot of interesting things. it's possible that several years from now that will be one of the extraordinary, unusual events in this situation. quite often, single hot pr

. >>> new details are emerging about apple's next smart watch. that's up in the 6:00 a.m. ♪ this afternoon at dunkin', sip and save with a freshly brewed favorite for 99 cents. refresh with a medium iced tea or iced coffee for 99 cents from 2:00 to 6:00 p.m. america runs on dunkin'. katie mcginty for u.s. senate, calling her "a champion for working families." the 9th of 10 kids, her dad's union pension and social security made all the difference. in pennsylvania, mcginty helped implement obamacare and expand coverage. trump and toomey have attacked obamacare and social security. to fight back, president obama wants mcginty in the senate to protect women, families and seniors. vote in the democratic primary, april 26th. mcginty: i'm katie mcginty and i approve this message. make today smile with 6 dunkin' donuts for $3.99, powdered with sugar, layered with frosting, filled with jelly, or topped with sprinkles. share some smiles with 6 donuts for $3.99 today. america runs on dunkin'. 5:55 a.m. and 5 second. that's quinn quintuple fives. it's rains

you know, you think about apple, for example, steve jobs, legendary, you know, great entrepreneur orkind of a bill walton of business. but he had a great team. he had steve wozniak and these people around him. so, for small businesses, yeah, we know it's important to create great teams, but maybe it's even more important than we thought. so that's what i think people need to think about. >> absolutely. and look, if you are looking for a job, you want to work with smart people. right? if you are smart -- >> right. >> you're the kind of person that a ceo wants to bring on, you're the kind of person who wants to be surrounded by smart people. you don't want to be the smartest person in the room. you want everyone -- >> absolutely. and, yes, and what are you looking for? well, you could look for experience. which is a mistake. i think a lot of small businesses make. we're going to hire for experience. but look it, coach wooden wasn't trying to find the most experienced center. he's trying to find the best center. you're looking for smart, emotionally intelligent, capable, can think on th

to sayso important investors are getting dramatic because they are worried about the stock of apple. you think about the company and its importance in the technology ecosystem, disease results don't change that at all. this company is still hugely important for which apps do build, how you reach customers, how you engage customers and the whole mobile eagle system. -- ecosystem. sales up 20% is interesting. it does not have the same margins. it does not have the same revenue volume. of apresents the beginning shift in how you think about these companies. have been arguing with the ceos of these companies some time and it's about your installed base and not how many iphones you sell to them. later in the show, t mobile ads customers for the seventh quarter in a row. john ledger slams the competition and verizon's interest in yahoo!. ♪ emily: now to facebook. surge afters reported better-than-expected revenue on wednesday, up 52%. metricsitive engagement and steady growth in active users but the biggest surprise is a proposal for a new class of stock. wants to issue a new class of nonv

apple is doing that right now. if i think aboutand focus on the metrics and the difference between what apple was three years ago in iphone innovation because this is a one product company, what happens with the 7 and the advance in the fall of new products in the iphone determine how this will work out because this quarter is a throw away quarter. i'll say one thing. i constantly try every product in the market. i just got the samsung 7 edge and i've always felt android was a lesser product interface. i'm sorry, they solved that problem. this is a hell of a product. it's going to give apple a hell of a run in the next couple of quarters and that's another problem for the company. >> so all that said, david, make the case for the company. >> yeah. it's not a hardware company it's an eco system. they provide a simple elegant solution to your problem. back in music it was the ipod allowed to you carry music and it wasn't the hardware it was the fact that they had the operating system and the itunes store. now with the iphone it is io

. >> let's talk about tech companies now. usit giant apple posted a drop in sales and profit for the january to march quarter. mainly due to a fall in iphone sales. it's the first quarterly drop since 2003. the company had sales of about $50.6 billion. that's down 13% from a year earlier and the net profit fell 22% to about 10.5 billion dollar. apple sold about 51 million iphones in the quarter. that's down 16% from the year earlier. sales of iphone account for nearly 70% of the firm's total revenue. apple has maintained its growth by introducing new growth of products at regular intervals. the growth stopped and the widespread use of smart phones around the globe. apple's earnings missed market expectations and share price plunged more than 8% at one stage in after hours trading. the dow jones ended flat. the nasdaq, the tech heavy nasdaq fell slightly. we're going to see what's happening in tokyo. for that we'll go to ramin. good morning. give us the picture. what are you seeing over there is this. >> very good morning to you. coming thick

caroline: i am talking about apple.ng about the pain some of the european suppliers are feeling. they been kicked off the list. this is a german maker of led chips. it's no longer as important. this is the supply chain. revenuews you how much they get from all of its customers and suppliers. check out one he customer. apparently, they are less important. they have been kicked off that top suppliers list. they have been replaced by the lips. they managed to go up toward the end. they looked with a market valuation. apple struck them off the list of key suppliers. it's an important one. this is a great function. you can run it on your bloomberg. see all the suppliers when you want to dig into the details. great point. we can't really see it very well. we have much more ahead on bloomberg markets, including the ceo of -- ♪ welcome to bloomberg markets. from world headquarters in new york. i am alix steel. the jobs report was solid, but it did contain signs of slowing labor growth ahead. stocks were higher and any fracturin

about two clock. when when carl icahn said that he sold apple! sell, sell, sell! that's the stock he's closely linked with. he is concerned about chinese weakness. those comments tipped the scale the whole day and sent the market plummeting. s&p 500 lost .92. of course, apple got crushed again, losing another 3%. it is in total tech purgatory for the moment. does this kind of action make sense? i totally understand why people would feel nervous that icahn doesn't like apple anymore. he has been such a supporter. it was like a jarring end. you have to decide for yourself whether you like the stock our don't. you have to rely on your own judgment. not carl icahn's when determining whether to love or hate individual koixs it is your money. not his. the question is, i'm sure people thought, why don't i just sell everything? people are panicking left and right. it was a bad day. i'll tell you. why i'll tell you why you don't sell everything. there are plenty of companies that are delivering on the promises right and left at this moment. and they were blotted out by the

julie: when we are talking about apple overshadowing everything else, it is passover, so i thought of how is this day different from any other day earnings season? it is also seasonally and apple appropriate. let us look at the major averages that are hovering near the lows of the session. as investors await all the various events that scarlet was talking about, as it is bring break, we do see a drop in volume and this pause at the very least from the rally that we had last week that took other major averages as well and other individual groups to multi-month highs. if you look the s&p 500, it's sort of made a little bit of an attempt at a bounce an hour ago and did not quite go anywhere. it is still down one half of 1%. take a look at the bloomberg for volume in the various groups of the s&p 500. overall volume is down 10% to 11%. telecom is seeing a particular slot, financials as well. consumer staples also seeing a decline in volume. apple is on the list of drags. there's a lot of questions about iphone demand going forward. tara go losing their ceo. it also cut its earnings foreca

apple has peaked? >> no, i even wrote about the fact that apple stopped innovating.t big thing they did was nine years with the iphone. since then, they made it bigger and with the ipad and smaller with the watch. all this he keep doing is playing with the size. on the point he just made about apple getting into the car business, here's what apple needs. it needs an elan mus being rubbing it. what if apple bought tesla? it has the apple car and it makes the ceo, it has a real visionary. and tim cook is the person that does the execution. that would be the way to get apple and tesla both to the next level up. >> now that is a bold game changer. and he said, mr. cook in a statement today, said we may look at deals bigger than those we've done before. i'm not saying this is on his radar screen. but what a move that would be. is there, and i want to come back you to, bill, is there enough room for innovation that isn't incremental in their core product, the iphone? in other words, prior versions have gotten better. they've gotten bigger. the cameras are better. the scree

apple. here's a company that reported an okay number. decent highlights. it's the world's largest company, so we care. quite excellent service revenue stream, we'll be talking about for a long time. ipad pro numbers, i like that, it was terrific. that said, apple's now dealing from a hangover. kind of what you could describe as massive proportions. strong sales last year. the hangover's extended to the once red-hot asian market. in some ways, even apple misjudged how truly strong its cell phone sales were. it's hitting a reset button. a reset down and down big. as estimates for both phones and earnings are going to come off really badly tomorrow. now, there's a cushion. there's a dividend boost. there's an even bigger buy back, but you can tell many have given up on this company as a one trick pony. i have been saying it will be tough. the headaches will reverberate throughout the tech food chain tomorrow. and the stocks that didn't go down last year, along with microsoft will go down tomorrow, of course, that includes twitter. what do i want to do? apple will be don a lot. and i've said after -- if you have not -- as i looked at the game plan, you haven't bought

apple may be more willing to cut price. this is aboutlity. , if it a bunch of units cuts your margins, that is not necessarily huge positive. they canpeful that expand the market, but again, it comes down to the price. the people driving the market are the higher end consumers paying the $800 you are seeing. are they going to be upgrading as quickly as they have in the past? innovation?bout we have more than one to $2 billion of cash on the balance sheet. how interested are you going to figure out what they will do with that money? that's $150 billion of cash. walter: there's been a lot of tech reports out today reviewing gone over the past year. there is a lot of opportunity for them. that investors are looking into the category of show us what you have commission there's hope that these new services and money can get them in. with hister piecyk apple watch. david: coming up, more "bloomberg markets." ♪ hii'm here to tell homeowners that are sixty-two and older about a great way to live a better retirement... it's called a reverse mortg

one thing i will say about apple is they are very good about pulling the proverbial rabbit out of a hate could be big surprises in store with the iphone seven. that is coming in the september and october timeframe. could see wireless charging, a better camera, and i am hoping for a better screen on the device. we all have the wish list, but the reality is, they could come out with a feature set that might just resonate and rejuvenate sales in the category, because we saw it happen with iphone 6, leading up to the introduction of the large screen iphone, iphone sales growth was beginning to take down people were making sort of a similar call, like are we there yet, have we seen peak iphone? the when iphone 6 came out, all bets were off and everyone was wrong. there is that potential to what is important about tonight for me and a lot of investors is hearing how management is thinking about what is next. a hardware category, they have pc and smart phones and tablets. what is next? can they really cannot, there are not hardware categories to get into at this point. what do you do next? you

amam i right about apple?ing reportrt, down comes the stock d down comomes the market. this is the first t time we will e ipiphone sales drop ever. the ononly caveat that i would w in there i is apple is famous fr sandbagging. they always mamanage down everyo's expectations. they managed t to do a little better than what they warned. that i ithe e only c caveat thai woulthrow in there. it does showow that this caveats nonot as strong as the lefeft wd want y you to believe. >> look at this. e e last thing. coming out with meme innovation fofor the future. >> aar famous san baggers. >> i would le that. >> let's be serious. whole foods. i ha always made fun of full foods. thstock is down 40%. theyad a hard time reining in theieir costs. people dnot li the numbers there. you can get ornic foods elsewhe. trader joe's that is a very good point. lot of organic subances. in my neighborhood, others. doing almost the same exacact a. a lot of people have crowded into that same exact market. someme organic things at a bet

. >>> plus, everyone's talking about apple next week. >> ted, my boy, it's going to be legend. wait for it. gary. >> but there's another area of the market that could see a massive move. we'll tell you what that is later this hour. a fair price, quality service, and that horrible smells are really good at hiding. oh, boy. there it is. ♪ ohh. ooh. [ gags ] so when you need a house cleaner or an exterminator, we can help you get the job done right, guaranteed. get started today at angie's list, because your home is where our heart is. ♪ the call just came in. she's about to arrive. and with her, a flood of potential patients. a deluge of digital records. x-rays, mris. all on account...of penelope. but with the help of at&t, and a network that scales up and down on-demand, this hospital can be ready. giving them the agility to be flexible & reliable. because no one knows & like at&t. >>> welcome back to "fast money." it is a huge weekend for hbo, three big premieres. julia boorstin is in l.a. with the details. julia? >> hey, melissa, hbo has a lot riding on this weekend as it look

but i told him i think it's a great company. >> that was carl icahn on "power lunch" just about an hour ago. apple dropping after he made that announcement that he's out of the shares. it's down more than 3% and that move is dragging on the dow which is now down about 209 points, bill. >> all right. thanks, kelly. i'm here with allen valdez from silver bird capital on the floor of the new york stock exchange. and art cashin just walked by and said he thinks that sell-off is in part what he called the icahn flush. when icahn was making comments about not just apple but the whole stock market that maybe that's what precipitated some of the selling. >> you did see it capitulate it more. we were down 80 points when he was talking and now down over 200. >> 75 is what traders are keeping an eye on. >> after that the shorts come in. >> you have been skeptical of the rise. is this the selloff you're looking for? >> we're looking for 2075. >> you're not ready to get back in yet. >> not yet. we want to hit that 2075 point. oil acting much better today. up nicely. not enough to move the market because of the

apple and the fbi are back before congress right now. officials will testify abouting discussed, there heated disagreement over law enforcement access to encrypted devices. apple's general counsel will represent his company in his prepared statement. he said, "keep in mind the people's -- subject to law enforcement inquiry represents far less than .1% of our hundreds of millions of viewers -- users. 100% of our users would be made more vulnerable if we were forced to build a backdoor." for more and we can expect, we go to capitol hill where a bloomberg news reporter is standing by. tim, apple is testifying before the committee. there are a couple of others who were invited that are not attending, is that right? tim: a congresswoman complaining about who is not here, facebook is not here. here, however, a lot of local law enforcement officials from across the country saying their inability to get into apple phones and other devices is inhibiting their ability to solve crimes that they have long been able to do. tim, this goes on, this continues, this big battle betwe

you think about apple, for example, steve jobs legendary, great entrepreneur, you know, kind of the bill of business. he had a great team. he had steve woazniak and johnnieivjohnnie ives. >> if you are looking for a job, you want to work with smart people, right? >> right. >> for sure. >> if you are smart, you're the type of person a ceo wants to bring on and be surround by smart people. you don't want to be the smartest person in the room. >> absolutely. yes. and what are you looking for? you could look for experience, which is a mistake i think a lot of small businesses make. we're going to hire for experience. look at, coach wooden wasn't trying to find the most experienced center, he wanted the best center. you're looking for people who are smart, emotionally intelligent, capable, can think on their own. surround yourself with those people, your team will be better. you'll be better, your small business will be better. >> steve and denise, thank you so much. it's interesting that you both focused on people. >> yes. >> ultimately, right, the success of your business depends on having

performance year to date, and if apple tonight disappoints that the rally of the s&p 500 is over, because this is a quarter that is well documented and well talked aboutt is a soft quarter and what we are expecting and the real story for apple is the second half part of the year, iphone 7. >> he pulled it out, huh? >> the new product, and that is what apple needs going forward. >> but everybody has a hold on the stock on this desk. steph, everybody on the desk owns it, and so what would you see? >> well, it depends on the call, because if they talk about china or the consumer or the watch sales are better or worse, and for apple pacific, it is a specific piece of technology in the benchmark, and anybody overweight is going to be feeling it hard, but at the price point, looking at the other companies, and look agent nixpi and talking about the auto market may not be collapsing like everybody thought, so it is interest interesting. and apple is apple-specific i believe to a large part because it is a very dependent product cycle story, and keep a close eye on what they do with the capital, because that is going to be the buffer to the quarter tonight if

about, and whether they're worth a buy. underarmour star steph curry is out for two weeks. moments of truth. huge earnings with a number of big companies with low expectations. apple, exxon, chipotle and twitter. the common theme here, low expectations usually equals a good earnings reaction. could this be a recipe for stocks to hit new highs? >> a hundred percent it could. >> think about the resilience. i'm not going to pretend i've been a raging bull, i absolutely have not. think about the resilience of the market. thursday night you heard from microsoft, starbucks, google, disastrous outcomes in terms of what the stock did. yet the s&p was flat on friday and down a few handles today. actually rallied back from being down double gij its. i'm not the steadfast bull, but i think the fact that it's here leads me to believe there's another leg higher in the s&p. the diminished expectations probably lead to higher prices. >> on a day when the vix is at two-week high sgls look where it is compared to the 200 day. barely at 14. vix is very low. volatility in the marketplace is low. look at volumes, guys talking about where we are in the s&p. everybody says, there's low