. >> jon fortt, josh lipton. first, heather hughes and rob malcolm, along with greg ip "the economist." everybody's in the water, so we can just jump in. heather, what do you make from the markets this week? what's the message from this very volatile market in your view? >> well, the markets have picked up volatility. before last week, the vix volatility measure was at all-time lows, since 2007. that, of course, has increased, but it will be interesting when we get these earnings numbers coming out now. of course, corporate profits, that's key. it seems like it's coming from revenue minus costs, we're cutting cost sides of the equation, not necessarily revenue and topline growth. it so will be interesting to see what those numbers are as we get them. >> greg, you covered the fed so much. all this week, there's been a debate. just last week, we debated about whether or not we were going to be talking about deflation. is anybody at the federal reserve worried about deflation? >>well, some people like tim bullard ju

jon fortt has the latest from san jose. jon? >> hey, i can tell you that yahoo call hasn't started yet. they're playing the preconference call music, which melissa myer has criticized in the past. not up to the standard she would like yet, but it's getting a little better. on those earnings results, looks like the worst year-over-year decline in display advertising in at least two years actually search revenue was higher than display for the first time i can remember and yahoo did make a change in the way they're reporting pro forma eps. they're excludeing stock-based compensation from that. they spent less on stock-based compensation than they did a year ago. that probably accounts for quite a bit of the eps beat. it'll be interesting to see what they have to say about that. also, other revenue at 263 million. that's higher than any quarter in the past two years, except for the holiday quarter, it would be interesting to see if they break down further what all they're including in that. why it's been so healthy and whether that

here. >> i probably would. >> i want to get to jon fortt. you just heard intel's first quarter numbers, by the way. in a moment i'll speak to the man behind the numbers in terms of intel. we'll talk to the cfo of intel, stacy smith, coming up. let me get to jon fortt to go through some of these numbers that we're just getting out. over to you, john. >> i want to talk first about yahoo!. as far as that non-gaap eps number, yahoo! says it's excluding stock-based compensation from its non-gaap eps numbers. we'll have to go back and recalculate, secluexcluding tha. a couple of other things, display advertising came in, ex traffic acquisition costs at $402 million. that's down 11%. search came out at $409 million. significant search came in ahead of display. that's down just 6% year over year, but still down. display as sold is down in terms of a number of units. that is significant. it's a number that marissa meyer acknowledged last quarter needs to come up. they need to get engagement up so they can sell more ads and a charge a premium for thos

jon fortt is in san jose about what we've been watching for.. >> here's the thing with the yahoo! quarter, display or brand ads been in at serious slump. down year over year for six quarters. meanwhile, the search has been growing for the last four quarters despite the fact that microsoft has had trouble get -- last quarter it was 35 -- so for yahoo! to deliver this quarter, a couple things have to happen, it boosted engagement for display ads. guidance is critical, because they run into tough you are growth. >>> jon, stay there. let us envelope you, if we may in the power rundown. the results about jon notwithstanding, would you bet on marissa mayer after this run-up in the stock? >> absolutely. i think she's been an inspiration to a lot of people. annex dotally, they feel so much better about the company, and that's a big thing in the tech industry. you have to love who you're working for, she'll really doing that. the stock is reflecting that run-up. >> it sounds like style over substance. >> i've met her, she's a very impressive person. >>

let's check in with jon fortt to see what is the latest. jon?as bad as a lot of people have feared. and here's part of the reason why. businesses and volume licenses kind of doing better as far as propping up windows and the business division than the transactional revenues from people going out and buying or not buying pcs as the case might be. microsoft saying that transactional business of people actually buying pcs was down with the rest of the pc market which idc pegged around 14%. but as far as business volume licenses, that was doing well. up 10% for instance, in the business division. also units doing well, entertainment and devices up 33%, xbox live memberships at around 46 million. and the windows phone business having pretty good momentum. the online division up 18% ads up 22% with search rates up, something that we saw from yahoo also. but overall, the business community helping out quite a bit soften the blow for microsoft of the overall pc business being down office 365, by the way, on track for $1 billion run rate fiscal year. guy

jon fortt runs through the numbers that wall street is obviously anxiously awaiting. jon?ll, wall street would like revenue of $3.77 billion, about 62 cents in eps, and guidance, $3.95 billion in revenue, 66 cents in eps, although some analysts, these reports i've been looking at, point out 3.95 would be high seasonally, and 3.91, 92 might be a little bit more in line with what ebay would do. total payment volume on paypal is going to be an important metric, about 19% growth would be nice to around $40.2 billion. those are some of the key numbers to watch for when the release comes out, bill? >> jon, thanks very much. certainly, ebay stock has rew d rewarded investors in the past, despite the financial crisis, the dot-com movement bust, in the last two years, that stock has risen 2 1/2 times faster than the s&p 500. i know what you're going to ask, michelle, what kind of play is ebay right now, right? >> exactly. joining us right now is r.j. honavoi of morning star. what do you think the metrics are here? >> there's really three things to be looking for in the numbers. one

let's go to jon fortt in san jose with more on that. jon? >> yeah, melissa.dance already, but they are talking about exactly how they plan to get to that guidance in terms of them maintaining their full-year guidance. even though the numbers look a little light revenuewise thus far in the year. they say they have the second half growing faster as they said in january. through the first half of the year. also users growing faster than revenue in some cases. they're saying that's happening because less engaged at first. and they hope as they get those people reengaged that they will start spending more. ebay pointed to the fact that total payment volume on paypal doing quite well. it does look like there are marketing costs on the paypal side. gsi commerce, that's the tools they're supplying to other merchants. that looks about flat with margins down a bit. but paypal's percentage of checkout is up at 14%. >> all right. thank you very much, jon fortt. ebay again moving in the after-hours session. dan, would you be a buyer on this as collin gillis recommended? >

jon fortt is watching that live from san jose with those details. hey, jon?ourse, iphone numbers are important. those are going to drive the top line and have a big influence on overall margins. put the iphone aside and focus on less obvious items like the ipad. a year ago, apple shipped 11.8 million ipads, up 151% from the year before. last year, up 48% with revenue up pabout 22%. we should see ipads come in below 15 million and 18 million units it will be interesting the watch the divergence between unit and revenue growth. if units grow faster than revenues, that means consumers are opting for the lower margin mini. if not, it's a sign that apple is maintaining its pricing power. in the holiday quarter, the ipad delivered 20% of revenue. mac delivered 10%. the trend has been the ipad has been stable at 20% of revenue for the last couple of quarters. the mac increasing its share. one number, that's the average selling price of the iphone. overall iphone sales and margins are important. but the iphone 5 in particular versus the competition will tell us how i

but jon fortt was right.s year over year decline in sales, it has a lot to do, actually, with microsoft. and i think the reason is, maria, is the windows 8. the touch-based operating system, they're trying to bring to market. no one wants to really use it, so they're adverse to buying that new pc. but the real reason i'm actually upset with microsoft is the surface. they came out with a tablet. they had a chance to go in there and fight with apple and google, and they absolutely blew it. they came out with overpriced tablet and it's not competing. right now microsoft has to rethink a lot. they have a stable balance sheet at 3.2% yield, but right now it is on its way down, i agree. >> wow. so the fundamentals and the technicals, right in step. thanks very much to you both. we appreciate and it we'll see you soon. >> thank you. >> okay, maria. >> all right. we've got about 30 minutes to go in the session. the dow still down about 21 points. the s&p, a bit more, about 6.5 points, at least percentage wise. >> hav

jon fortt just got off the phone with ceo paul jacobs and he's got the lowdown for us.to you, jon. >> he had some comments relevant across the technology spectrum. he said that emerging markets, particularly china, especially strong in the quarter. a little stronger than he expected. north america, a little bit weak. similarly in europe, western europe, a little softer. he talked about the windows 8 business hae's trying to push into it. not performing any better than the low bar that they set. he's still hoping that they can make inroads there if people make better pcs with windows 8 that people may want to buy. interesting on emerging markets. speaks to a dynamic we saw in nokia. on the low end, he said there are a lot of low-end chinese brands who are using qualcomm's reference designs to break quickly into these emerging markets with low-cost phones. he said from the time they get the silicon to the time they're approved by carriers and only 60 days, more than 200 devices they're getting out there that way. so big, diverse emerging market in smartphones, maria. >> t

jon fortt is in silicon valley. hi, jon. >> this earnings report will be packed.l street is looking for $10.07 eps china will be key there. ipad, we're looking at somewhere between 15 and 18 million units, roughly where i see analysts around the middle. there didn't seem to be great on whether sales were lower or higher -- analysts will interpret it by looking at how apple did in the march quarter. wall street officially wants 39 billion in revenue, but a rebound in gross margins could chase thing we did. on top of all that, we have the dividend question. arguably the most important thing, apple and tim cook can do is bring some level of calm and predictability to apple's results, which it seems he's been trying to do. we'll see where he goes today. >>> kkm financial's jeff kilmer is here. you were a bit of a bear. you have changed your tune a bit. why? >> there's a lot of hype with apple right now. it's valued in the options market, you see the volatility after the earnings report, coming in 50% hotter than anticipated. right now for every reason it was short, it

guys, back to you. >> great stuff from jon fortt. let's get out to todd wore wits.at to see you. first of all, wa do you make of this disruption? >> good morning, kelly. good morning, ross. the disruption was a failure in the computer system. not a real big deal. that market is a professional's market mostly for hedgers. if they weren't hedged coming in, there's other ways they could use it. they could have used the s&p futures, the etf. although it was a black eye for the cdoe for one day, they'll get it fixed, it will be done .we'll move forward. >> looking ahead to the session today, wa kind of activity do you expect around this gdp report? how important is it? >> i think it's real important. i think the market has priced in somewhere between 3.1 and 3.4%. anywhere north of that, i think the market has a chance to possibly start the next bug leg up. but i really believe it will be a miss based on the earnings that have been coming in, based on what's going on. i think we may get a miss here and might see a little bit of selling pressure here. because the market i

he joins jon fortt from ebay's campus in san jose.>> thanks for joining us this morning. you kept your full-year guidance the same. next quarter is a bit lighter than revenues than some expected. but talk about what you're seeing overall. mobile continues to pli a really big role nechin ebay's transformation. >> mobile is increasingly the way people are shopping and paying. we'll do over $20 billion of mobile commerce volume this year and over $20 billion of mobile payments volumes. that means people closing a payment transaction on a mobile device, that's actually shopping or paying for something on a mobile device. increasingly consumers are using their mobile device in the offline retail world, in all parts of their lives. even if they don't close the transaction on a mobile device, they're doing a search or checking prices and the mobile device is becoming the central control device of people's lives. so we're orienting a lot of our products and innovation around that area. >> i've bought on ebay from a mobile device. got my "spid

jon fortt, what are the three things to look for -- maybe there's 20, but give us three to look for when they report after the bell today. >> limiting me to three things. iphone unit sales, gheitance and margins. on iphone a lot of annuals are twegting between 34 and 38 million. one speed bump for the iphone potential is apple had a significant p.r. headache, when central tv blasted the company's iphone repair policies, a nonstop drumbeat of negative headlines are significant considering china was 12.5% of retch last quarter. an important side story to this report also is guidance. apple switched the way they do guidance, sake they'll give a range within which to fall in. will they come in close to the revenue as analysts expect, a little higher, that will influence how the street views june guidance. iphone mix. the more i phones apple sells, and the faster it can lower costs, the higher margins will climb. my best guest is apple will deliver up side somewhere on margins rather than revenue. the question is whether they can use it to secure chief components. back to you. >> jon, thank y

i want to get to jon fortt right now with the actual numbers. over to you, jon. >> it looks like a meet on revenue, maria, $16.07 billion is what they came in with. the guidance, a little bit disappointing. i haven't seen how the stock might be reacting. looks like it's just about flat, vacillating a bit between positive and negative. north american revenue, a little bit lighter than some analysts -- sorry, a little bit stronger than some analysts have expected. international, just a tad lighter. i want to dig in a little bit more on that. but as far as the guidance, they're guiding to a range of $14.5 to $16.2 billion. that's right around where a lot of analysts, particularly gene muenster of piper jaffrey, sort of expected, because they tend to guide down about 6%. but then deliver about 3% lower in the second quarter than the first quarter. operating income, though, they're guiding to arrange of minus 340 million to plus 10 million. that is an operating loss. obviously, the street was hoping for 22 cents in positive eps for the second quarter,

jon fortt previews those in your opinions and what investors will be watching for. jon?it's something when near 400 is polished. but let's start by look agent the expectations. $42.5 billion in revenue. $10.07 eps. not terrible considering revenue would be $3 billion more than a year ago. it signals an important dropoff in growth rates for apple. that's where we start digging in. last quarter apple sold nearly 48 million iphones up 28% from the year before. the average selling price of an iphone actually held steady. look at this iphone sales chart. you can see a contrast of where we were a year ago when apple was growing iphone units at 88% year over year. that's what has analysts taking a sober look at the june quarter which apple will also forecast tomorrow. several on wall street have been lowering their estimates to the mid $30 billion range which would be in line with apple's seasonal patterns. we'll see if the ipad where volume should come in between 15 and 18 million units will pick up the slack. >> all right, jon, thank you very much. so has apple fallen behind

jon fortt breaking down the numbers. >> rushing through them now, maria. looks good for texas instruments both in the current numbers and on the guidance. wall street was looking for 2.85 billion in revenue. texas instruments comes back with 2.89. eps expected was 30. they deliver 32. then on the guidance, wall street wanted 30 -- sorry. $3 billion in revenue for this current quarter. the midpoint ti is guiding to is 3.05. also wall street wanted 38 cents in eps. the midpoint is guiding to 41 cents. it appears the analog business held up nicely at $1.64 billion in revenue imbedded. also at $561 million in revenue. operating profit at $395 million. that's a little bit above the $372 million that i had seen expected from analysts who expected the results to just be in line, maria. >> all right, jon, thank you so much. we'll watch that stock. it is trading higher on the extent of those numbers. better than many were looking for. >>> in the wake of last week's attack in boston the defense against terrorists is putting some companies that are not well known nam

. >>> i'm jon fortt with your cnbc market wrap. stocks turn positive. the dow ends up 48. adds 9. and the nasdaq gains 18. >>> aluminum giant alcoa kicked off the start of the earnings season. it posted a profit of 11 cents a share, better than expected but revenue fell short. >>> ge is making a big purchase. it's buying oil field services firm lufkin industries for $3.3 billion. >>> and jcpenney shares are volatile after hours after the company ousted its ceo. that's it from cnbc, first in business worldwide. now back to "hardball." >>> welcome back to "hardball." as we reported earlier in the show, former british prime minister margaret thatcher passed away at the age of 87. her 11 years and half as british prime minister were historic. he was the first woman to lead the uk and the first woman really to lead a western power in mod earn history. i guess you have to go back to elizabeth i to see an earlier version of leadership in the world. today british prime minister david cameron spoke of her influence. >> we've lost a great prime minister, a great leader, a great brit

let's get to jon fortt, he's digging through the expectations. as they come out, he will break into the conversation with the actual numbers and we will tell you how the stock did. gene muenster also with us, james bren of compos intelligence. good to see everybody and thank you very much for joining us. gene, let me kick it off with you, in terms of what we're expecting on apple, do you think we're going to get a good report? >> no, we're thinking they're going to guide down by about 10% for the june quarter. this is unlike any other quarter i can remember for apple. i have to say, i'm bracing for the worst. >> you're bracing for the worst, wow. if you look at the stock and the way it's been trading, you have to brace for the worst, right? something's in that stock. >> absolutely. and whether the stock actually responds to that or not, but i think you've got to have some tempered expectations kind of in the fall before some of these new products kick off. >> james, what's wrong with apple? >> wall street. >> too high of expectations? >> yeah. th

our jon fortt is going to dig through the numbers as soon as they come out and we're going

who else to turn to but cnbc's jon fortt to understand what's going on here. >> that rumored set-topompany to get customers to spen more time with am done. there's not a lot of money to be made in set-top boxes of course. apple sells apple tv for just $99. earnings wise on amazon the street is looking for 9 cents eps, which would be up 22% from a year ago. that's phenomenal considering so many companies have been missing on revenue. big reason why analysts expect the in-line quarter numbers from the research firm. there is also an expectation amazon's kindle fire which is estimated to have sold maybe 8 million units over the holiday quarter is continuing to boost media sales as people use it after they've got it unwrapped an everything. big question is how guidance will look. wall street wants a second calendar quarter to look much like the first. just a little more profitable. 22 cents of eps on just shy of $16 billion in revenue. but it is not clear that europe is going to help here at all. remember, ebay reported some softness in europe. germany in particularpy amazon tends to giv