appl epple second apple second quarter numbers out just just a moment ago.ny reporting ust a m the compan the company reporting earnings of of $12.30 a share versus n estimate of estimate of $10.04 a share. expe ctatioations expectations of $8.66 a re. the revenue in this quarter, the second quarter, 39.2 billion the revan estimate the revenue in this quart second q second quarter, 39.2 billion versus an versus an estimate of 36.81 bill ion.ion. billion. we'r ee're we're joined, also with us, jury from rom from oakbrooke inv stments. let me get back to jon fortt. >> maria, a couple of remarkable theseme get let me get back to j >> maria, >> maria, a couple of remarkable things ab things about these numbers, one, at&t and at a smallw.phones we saw share of share of iphones now. we --saw their numbers down 30 -- more than more than 30% and more than 40% from last quarter to this quarter. but apple's overall iphone numbers didn't drop much at all quarte other quarter. countries that continue to but apple' but apple's overal numbers di results. that should be en

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short apple? the poor sap who did that over the last years is only down 5,000%. better go with the options. so to make a bearish bet, mike sold the june 600 call for $30.50. to keep all of that money, mike needs apple to stay below the strike of the call he sold or below $600. above $600, profits trail off. mike won't see losses until apple rises above that strike price by more than that $30.50 he took in or above $630.50 above june expiration. mike can make money whether apple goes up, down, or nowhere at all. but there is a trade off and if the stock trades above $630, mike will be the hook for infinite losses. to limit his risk, mike bought the june 630 call for $20.25 and completed the bear call spread and here's how it makes money. between the 30.50 he collected selling the more expensive lower strike call and what he spent buying with the higher strike call, mike pocketed $10.25. that $10.25 is the most he can make on the trade, but in order to keep all of it, he needs apple stock to stay be

remarkable earnings from apple today. after the market closed, apple's quarterly results blew away even the most optimistic estimates. tom, profits surged 94%. >> tom: these are big numbers. they were remarkable. apelt earned $12.30 a share in the fiscal quarter. $2 better than estimates. revenues also came in better than expected: $39.2 billion. >> susie: this is the best quarter ever for tech innovator apple, and the stock surged as much as 5% in hours after trading. suzanne pratt is standing by with more. >> reporter: susie, nervousness about apple's quarter has been huge. >> people are worried about the stock. the stock is down 13% from the high. and the high came just a few weeks ago. $644 a share. what is it that everybody is worried about? they're worried about whether sales are slipping. >> reporter: the numbers are out, and they're huge. apple sold 35 million iphones in the quarter, millions more than analysts expected. as for ipads, customers snatched up nearly 12 million of those. that was just about what was e

sure, apple's run makes the s&p look better than it would without apple. but apple's the largest company in the world, it's a stock that tons of people own. the truth is the strength in apple should count for a lot. if we reach a point where apple's the only thing propping up the entire s&p 500, then it's a different story. but until then, don't let one stock's strength let you doubt the broader market which is pretty darn good even considering this selloff this week, the worst week of the year so far. ruth in washington, d.c., ruth? >> caller: hi, jim, how are you? >> real good, ruth. >> caller: it's a good day for baseball and it's opening day here and why aren't you at the ballpark? >> i'm not at the ballpark because it's in pittsburgh. >> caller: i know, i'm not at the ballpark either because they're playing the cubbies. >> there's this thing on mlb.com which i never use at work, although i did have to call, you know, george, he's doing their executive producer today to see if i couldn't get i.t. down there to get rid of the spanish language version --

apple down. at the end of an ugly week, the worst week of the year, it felt like europe was in the driver's seat, averages getting kicked down to the curb again, the dow off 15 points, s&p giving up .6%, nasdaq bounced .4%. i need you to take a deep breath and remember, when it comes to the global economy, the united states is still driving the car. sure, there'll be days when we trade off europe, but this isn't 2011 anymore, people. and with earnings season beginning next week, i bet it will happen sooner rather than later. what's the game plan? before we get to earnings, monday starts with the digesting of tomorrow's payroll employment data. okay? the labor department stupidly and i think unreasonably issues this report tomorrow blissfully ignorant that the stock market is closed -- hey, come on, it's a regular working day for a lot of people. i care about the market and you and the individual investor and how you won't be able to have the information and people will be trading all over in the

we began by asking if you had apple or traded apple itself. it would seem to me that the historical price action in apple would be something your computer would enjoy trading. why is it not? >> the industry is the trend that you call the cta industry. stocks, bonds and currencies. mostly commodities. in the last five years, we have been applying ourselves to stocks and trying to fight the question and rebrand ourselves and show our skills are also individual stocks and doing more of that now. i believe it can be applied to the stocks. it's not as simple as running our systems and running our trend on the stocks. it's not as simple as that. >> i know you don't do this often so we are greatful for your time. >> thank you very much indeed. >> next on fast, is chipotle's monster run starting to burn out? we have the trade and we will bring you all the after hours action in panera. ♪ ♪ here we are, me and you ♪ on the road ♪ and we know that it goes on and on ♪ [ female announcer ] you're the boss of your life. in charge of making memories and keep

finally we just had apple up. apple goes back over $6 thur6$6. when it hit close to $600 in the middle of the day here, the market again lifted. it seemed to have some influence on the overall market. there's your official reasons, kelly. >> thanks, bob. >>> brian? >> thank you and bob. we're going to kind of continue the theme bob just touched on. because we certainly do have a nice tuesday rally. both apple and the market are higher today. of course, that has been the trend for more than a year. look at this. it's a one-year chart of apple versus the dow. the dow actually is in green. maybe apple should have been in green. either way, you can see they track very nicely. and some suggest that apple is the carrot that drives the donkey to pull the whole market cart. but the past few days before today have been interesting for other reasons. so now look at this. this is a one-week chart of apple and the dow. you can see that the dow has done okay. apple actually went down five days in a row before today. in other words, we did something that some

apple is typically very conservative. on the revenue side, they tend to be more realistic. >> grasso, you're the one who said to sell prior to the earnings. why? >> i think the price is indicative of what the investor community is thinking in apple. maybe it's not enough. because people have already factored in the blow-out numbers. obviously we're at the bottom end of the trading range near term. but for me i'm looking at this chart. it looks like a total breakdown in apple. do they need more than the numbers that you talked about? is it a bigger theme? do you think that guys are making room for priceline -- i'm sorry. for facebook and feel like these high flyers are too much weight in their portfolio? >> well, i actually have the -- a somewhat different opinion in the sense that our belief is that there is still dividend and value money on the sidelines who are interested in apple. obviously until the dividend was declared, many dividend funds were unable to buy apple. we believe that's 10 or 12% of institutional money.

do you own shares yourself, scott, of apple? >> i do not, unfortunately. >> tom: there youo, a honest assessment. scott sutherland is a technology analyst from wed bush securities. >> reporter: i'm erika miller in harlem. i'll tell you about a microfinance loan program that has the support of the new york stock exchange. >> susie: no surprise here-- new data show the housing market remains weak across most of the country. the latest evidence comes from the commerce department. new homes sales, down over 7% in march to an annual rate of just 328,000 homes. that's a four-month low. average prices also down slightly to 34,500. another reading on housing from the standard and poor's case shiller home price index shows the same trend. prices in the top 20 housing markets hit fresh lows in february, falling a sharp 0.8% from january. >> the last year has seen a little bit of stability. what we've been doing is bouncing across the bottom. we have hit new lows, and it's basically moving somewhat sideway are for of the last year or so. t

apple's providing strength to the overall apple ecosystem.ok at some of these chip suppliers. we have broadcom and qualcomm moving higher today. avago has many times dubbed as apple's number one friend with benefits. it's amplifiers are said to be in the iphone. that stock sharply higher today. and switch over to nuance communications posting gains speculated to be the maker of the popular siri, which is an attractive feature of the iphone 4s. lastly, look at zag. doesn't make parts used inside the iphone. basically a popular maker of the accessories like cases, screen protectors. that stock also coasting on the good news from apple. >> seema, thank you very much. action here at the nyse ahead of mr. bernanke. bob pisani joins us. you're watching the real estate investment trusts at this point because you said there's been a change in leadership. and they're it. >> it is. they're the new leadership group. the fed's had a low interest rate policy for years. and the real estate investment trust community is the big beneficiary. they're able to

let's get more on today's apple selloff. kayla looks at today's biggers and movers. >> it's apple. it's weighing on the nasdaq and entire s&p 500. apple is down just more than 2.5% entering into that correction territory from the all-time high of 644 bucks hit on april 10th. also edging closer to crossing the 50-day moving average. that's definitely one that we've been watching a lot. as far as nasdaq goes, microsoft gains are actually outweighing apple's negative impact. microsoft, its gains responsible for mdx points of the nasdaq three-point gain while apple is responsible for nine negative. microsoft, big jump on earnings today, up by better than 5%. we have some other stocks moving the markets to the upside, mostly coming from the ipo market. a great market for companies going public. infoblox pricing at 16 bucks above the expected range of 12 to $14 and raising by 7.5 million shares. today, up 36%. another ipo makes its debu is midstates petroleum. it's a little shy of 15% gain here. that's not a great gain compared to other ipos, you might want to get into the other asset cl

we have to compare apple to a, well, how about other stocks? we have to compare apples to apples. now, here's where the apple juice gets sticky. first you have to pay something for these earnings, right? we have to figure out how good this company is, how fast it's growing, how strong is the energy, how big a market power does it have versus its components? when you consider the opportunity apple has in personal computers and tablets and cell phones, you're looking at a company that's truly crushing the competition. much of that growth is coming from apple, and to totally belabor the analogy, it looks darn like an apple pie, with huge losses in share comes from the likes of research in motion, nokia, sun, hewlett-packard, microsoft, google. in fact, apple adds up the market cap and comes to about $ $959 billion in cap. hence the $1 trillion apple valuation. now, here's the difficulty of arriving at that multiple of the price to earnings multiple, the pe multiple. the companies -- all these companies that they're competing, they have a price to earnings multiple, it's pretty simila

tonight the ultimate apple trade. we have a way to make money on apple, if the stock goes up, down, or nowhere at all. don't bother asking seery. plus talk about a steal of a deal. how would you like to get paid to buy ford stock ahead of earnings? it's not some crazy sales drive. it's just cohn carter's trade. >>> and why were all those option traders piling into watson pharmaceutical calls? it's a tale of drugs and money that only scott nations can explain. the action begins now. live in time square,s in "options action." i'm simon hobbs. these are the traders. we have to talk about apple, a correction over the last couple weeks. some of got as high as 1,000, you should be worried. that's when the smart money -- i mean the big money started making profits. the apple thing is a mania. we know there's great things going on, but the run wasn't sustainable. it had a parabolic move. the stock is down 10% from the highs from april 10th, more than $50 million in market cap. there are only 50 or so stocks in the entire s&p

that's up to apple. if you are getting the tax breaks and people getting the tax breaks say you have to do something to get them, you are not going to throw out the bathwater with the baby. are you going to accept it or not do it? what they ought to do is say we don't need any of that, we are going to go down there because it's a good economic move and we are going to hire whoever we want to hire and we are going to work the way we want to work. by the way, inherent in this is something i had logically weird, i find. that the government or somebody in the government knows who is disadvantaged and who isn't and can dictate to you what disadvantaged means. that's the part that's bad. >> and sally, the precedent i think could be a little bit concerning for some american companies that maybe want to open up a new plant in delaware or maine but they are told you have to hire these specific people. that could happen some day. >> and the precedent is the giant tax breaks, the special tax breaks that are given t

take a look at apple. apple is down today. would you think there was some kind of massive tech sell-off and there is not. if you look outside of apple and look outside of google, put up the charts. you will see, ibm is on the upside. you will see all of the big names here. microsoft and intel and ibm, all on the upside. >> one standout there. >> right. and michelle is right, it speaks to the out -- look, if i had it look at this and say what is going on, this is apple used as a source of funds. can i point out, goldman sachs and morgan stanley are on the upside as well. >> they are taking up so much of the trading volume at at one point 10% of the daily volume. crazy. >> we have had this tug-of-war between international news which i will get to in a moment but domestically as well, kelly. for example, home builders sentiment index. starting to soften as we head into the spring selling season. >> if this was some of the anxiety we've been hearing which is basically how much did warm weather pull forward optimism this year and m

apple doesn't think it needs or should hold their hands and since apple is head and shoulders above everyn earth it doesn't. they don't need to sell the stock story, they sell the product. what exactly did analysts miss? big picture. these alleged professionals were zigging when apple zagged. they were looking for a disappointment. but apple delivered an even bigger beat than usual, with revenues coming in $39.2 billion ahead of what the street was looking for and up 59% year over year. when we came on the set, we were staggered. and it translates to $12.30 of earnings per share. $2.26 beat that sailed over the most bullish estimates. apple could have made more if they only had enough ipads to satisfy demand. i call that a high-quality problem. there were misconceptions going into the quarter. the iphone issue, it accounts for 58% of apple sales. earlier this year, at&t and verizon activated far fewer iphones in the first quarter than anybody expected. this little data point led many analysts to believe iphone sales would disappoint and it was a crucial pillar of the bearish thesis going

> have you taken off apple? >> we haven't. we sold calls as it traded up. some are in the money and the position will be called away from us on those. some are out of the money. we have ones as high as 640. the one thing i want to point out that is interesting is they report next week. i would rather have it trade down into earnings and the bar lowered than up into earnings and have to have them really hit the ball out of the park. one time they won't do it, i don't know if this is the time. i would rather have a trade this way. >> in terms of what is going on and mac sales may disappoint, data is suggesting that 4.1 to 4.4 million macs were sold in the march quarter compared to the estimate of 4.5. there is the disappointment. there is not a meaningful refresh of the mac or mac book in a while. they can pick up later on and he expects a quarter to be fine. she an apple bull in that the strength in iphone and ipad will offset this weekend and we might see it. >> right. we didn't lead the show at the end by the d

apple pie, big sheik antique bowls of wooden apples, read and golden, apples pencils, produce framed on the library wall, texas vegetables from the rio grand empire. i am an american first, then a texan he would say not understanding he sounded like auggi march. the clues are there, i later realized. a man's fate is his character. you always have to show off and tell us what you know, carl said. i'll be in washington next week i say. i have an interview, i have to close of peace. you promised me, you said you would stay away from washington state. you sat right here and said you would not go to the cascades. he yells as loudly as i have ever heard him. washington, d.c. i shout back. i have the trait as well. [laughter]. >> as you are thinking about that, i would like to ask you to give us one more. there are 2 completely surprising and interesting substories woven through this narrative of your brother, 1, your fabulous aunt character in mexico getting frosty into mexico and running around with frita caller and your discovery of apples? >> this is astonishing, are we talking about th

i want to blame it all on apple. >> it's more wobbly on apple. i can tell you the minute apple started trading over 30 million shares, that was six or seven trading sessions. trading 22, 2 4r4. earnings have been strong. retail sales were good. the ipo action was good. i see positives out there. i'm not worried apple. the housing starts were a disappointment and i know everybody wants to blame bank of america, but there's not a lot of loan growth that is out there. there are separate issues that concern me a little bit. i'm worried about the fact that we have a couple weeks of very choppy economic stories. that will crystallize how i feel on housing. >> you talk about the earnings beat and indeed they have been beats but they have been lower expectations. the year over year number is not good on all of these companies. in the end, you're going to see real growth over time, right? >> the revenue has been a notable revenue growth and it's been spread kalted on cost cutting and these companies have become sufficient at manager resources. if we actua

>> apple. i continue to hold apple, i continue to build into apple, i continue to buy upside options in apple because of what i'm seeing some and of the expectations. and i would argue with just about everybody. look at these valuations like right now, look at the growth, look at the catalyst, i don't understand what the guys fighting apple are seeing versus those of you that are not fighting it and watching it go higher. >> the list is only five names long. some of these you said you would take off. >> netflix. >> advanced microup 50%, as well. >> i think netflix will be the one name where it's still a story i think that is very complex and very difficult for us to get our arms around this. we all know about contest and the rests of the costs going up because of that. i think netflix has had great performance. i think if you were in this name, you would at least want to take something off. but i look at something like price line, on the other hand, and their growth has been extraordinary. desp

we know the investment world is in love with apple. after all, it's hard not to notice a stock that doubles in less than two years. still, small investors do not feel as kindly towards the rest of the market. suzanne pratt tonight on the concerns of smaller investors. >> reporter: this has been a good year for financial markets. stocks are up, bonds are holding up and volatility has been limited. so how are retail investors navigating 2012? t.d. ameritrade's c.e.o. says they're still very cautious about investing their money. >> they have a memory of last year at this time when the market went up, and then things came unglued in the summertime and we went back down. and that's happened a couple of times now, and there's still lots of uncertainty in the world. >> reporter: the numbers support tomczyk's sense of retail investors. despite the 10% jump in the s&p 500 this year, many are still wary of stocks. the investment company institute, which tracks cash flows into mutual funds, says investors are even still withdrawing money from equ

by the way, kelly, one of the reasons i'm optimistic about apple is apple's going to start paying a dividend, about 1.8%, that should attract a lot more value players down the road. one of the reasons i feel pretty good about it. by the way, people have been asking me why the dow just rallied, as far as i can tell most traders think we had a dollar move to the downside. put up the dollar intraday. that drop there moved the s&p and dow industrials to the upside. >> started turning things around. bob, thanks so much. rick, what do you think of that the fact the 10-year is yielding about half of the s&p 500. >> i'd flip it around. gives you good reason wlie in an iffy global economy stocks are doing so well. for that exact dividend argument. now, if we want to look at foreign exchange, this is a real fascinating day. to see the dollar doing -- or the yen doing so well against the dollar on a day where the pound's higher, the swiss franc's higher and the euro's higher against the dollar is a very unusual combination of countries and foreign exchange trades. so i think we need to monitor that. bu

then we got apple. apple goes over $600. apple in three days has gone from $605 on monday morning to $578 yesterday to $607 today. a complete round trip. >> amazing volatility for a stock that large. >> in a couple of days here essentially. then, again, don't yell at the markets. i always have this thing but it does make you want to scream at some point. >> simon, bob took your whole dissertation on europe. would you like to add to that? but to understand where we have come from and the technical damage that has been done, if there was -- for the euro zone, it's the dow jones stock 50. it's the blue chips within the euro zone. and if you look at how they have performed with today's gain over the last month, they are down, there you go, over 9% whereas the dow industrials is down just the best part of 1%. so you're below the 200 day moving average, the 100 day moving average. if you look be, for example, at what has happened in spain, given the gains that we've had today, the spanish market is down 14% so far this year and it

. >> susie: and after days of selling, apple shares come roaring back. but some analysts are still cautious. >> there's zero historical precedent for this company to hit a trillion dollar valuation mark, right? it doesn't mean that it can't >> susie: it's "nightly business report" for tuesday, april 17. this is "nightly business report" with susie gharib and tom hudson.is made possibl: captioning sponsored by wpbt >> susie: good evening, everyone. "technology" was the word of the day on wall street. intel, yahoo and ibm reported solid quarterly earnings after the market closed. but apple was the sweetest stock of the day, and tom, that helped ignite a powerful rally in the major averages. >> tom: susie, it was the best day for those indices in more than a month. the dow surged almost 200 points, the nasdaq added 54, and the s&p was up 21. after the bell, a flurry of earnings reports. yahoo first quarter profits jumped 28%. it earned 23 cents a share, six cents higher than analysts' estimates. revenues also came in better than expected, and the stock rose

is apple expensive? apple is around 12. but its growth last quarter was 117%.ut its growth was just 60%. mick's fpe is ten and its forward -- net profit was flat in the most recent quarter. it reported overall apple's growth is strong, continuing to be. china is a big part of that. trouble area, we don't know the ipad's projectry and iphone 5 ru rumors could hurt. >> are you waiting for the down side or what's the reason for the hold right now? >> yeah, bill. if you look at today's action, this is a preview of what could happen to this name if there is any hiccup at all in the march quarter results which come out a week from tomorrow. we drop 25 points. this is the most widely held name among hedge funds. we can talk about ratios all you want but apple is the most richly valued company on any u.s. listed exchange. >> what price does it have to get to when it gets your attention again? >> we have $500 target. so we think there is still room for it to pull back a bit more. we just want it poent out that everyone talking about these trillion dollar valuations, or

>> i like apple. we said apple is going down because of the mac sales. you still see the iphone and the ipad able to offset the sales of mac? >> he's gone. >> i scared him off. anyway, he might be the only one to make money off of it. the s&p is trading four times earnings. they sell at about 5 or 6% of the mobile phone market. i say apple is going to overtake google. >> josh? >> i think the bottom line with apple has always been, what's your time frame? we won't notice that parabolic move from a few weeks ago. we all said from the beginning, this is getting ahead of itself. it looked like that, and the stock looked good today. so the question is, are you in this for five or seven points, long or short? i don't know what to tell you. are you looking for a company that has a higher quality business than most and competitive advantage and all these things. there's nothing else out there that looks like apple, so if you're somewhat intermediate or longer term oriented, it really doesn't matter whether or not it's up 15 there are in -- $15 in a week. >>> tim

apple earnings. apple after that judge ruled it infringed on the motorola mobility patent. that stock at its lows here down 2%. let's go to "power lunch." >> halftime is over. "power lunch" and the second half of the trading day start right now. >> good day, everyone. i'm tyler mathisen. at 1:00 on the east coast and 10:00 a.m. out west, the bulls are back in charge today. the dow up about 75 points. right at that 13,000 level. one big reason for that is, ibm. the company raised its quarterly dividend 13%, expanding its stock buyback program and investors like it. as you can see on the monitors in front of me, we have a lot going on today. we've got you covered from key housing numbers that are moving the related stocks to the murdoch scandal in london and fresh numbers on the state of the overall economy. we have them in cnbc's brand-new fed survey. but we start with apple. it reports its numbers after the bell. about three hours from now. it is the story everybody's talking about. sue herera is at her new perch at the new york stock exchange as the traders buzz. >> good t