i'm morgan brennan. >> andrew berkeley joins us to talk for about second quarters earnings and the market. he's a portfolio strategist. we got the news and samsung warned of a possible 26% drop in its quarterly profits. how is it shaping up in your view and how will it play up in the markets? >> hey, susie, it will be a good earnings season. 7% year over year growth for operating profits on about 3% revenue growth, which is what we see the economic data tracking. so it looks like after the soft bach in one, the economy is reaccelerating here. we think profit growth probably, you know, will be good here in the second quarter. probably most importantly for the markets is going to be hearing what companies say in terms of forward guidance for the second half of the year because we know that analysts expectations for the second half are already pretty optimistic. for them to push the numbers

morgan brennan takes a closer look. >> reporter: the world's largest package delivery company shipped 7% more packages around the globe than a year ago. shipping activity surged internationally especially in europe but here in the u.s., more consumers purchase products online. e commerce fueled a 60% increase in upss less expensive shipments. positive sign for consumer spending, but a drag on the delivery giants revenue per package. >> it is an interesting time. we're seeing actually the strongest growth in our domestic business that we've seen in over a decade. e commerce is driving it but we have investments to expand capacity and handle the growth. that's why we're seeing mixed results economically but great results as far as demand. >> reporter: those investments are in response to botched holiday season delivers after competitors couldn't keep pace with the last-minute surge. the investments include updates to existing infrastructure, dozens of newly built hubs and operating this black friday as a full workday. the first time the company has ever done so. all together, it will ra

let's bring in morgan brennan to talk more about google. morgan, you've run through the numbers. what's the key take away? >> i think the key take away with google, we can talk about google glass, driverless cars but at the end of the day its biggest business is online advertising and that's why we saw revenues jump 22% because of strong ad demand and the biggest, most interesting thing about the report, this is the first time google has broken down it's ad data to differentiate between youtube and google and versus network partners like aol. this shows that google's sights have been performing relatively better with advertisers versus those networks, so the key take away here, google's advertising platform has been doing better than perhaps earlier reports had suggested. >> morgan, stay right there. we'll move on to ibm, which, stay with me, reported higherre than expected kwaurquarterly re as it expects to big data and cloud computing. total revenue fell 2% to $24.04 billion in the second quarter. it's a long streak of declining revenue. never theletheless it was above billion,

but the sector this year has been lagging behind the broader market, morgan brennan explains why and whether these stocks are now a good deal for investors. >> reporter: despite perceived safety and high-paying evidents, the telecom sector is under performing. so far this year, the sector gained 4.5% while the s&p 500 is up seven. analysts say telecom is trading at the biggest evaluation discount in more than a decade. >> there are a lot of concerns going on with a broader industry with respect to competition, with respect to some of the transactions that are taking place in the marketplace and so that's adding an additional layer in terms of overall concern that's keeping valuations where they are today relative to the market. >> reporter: but key trends could make some telecom companies more attractive to investors, and they were apparent in verizon's earnings. first, the growing popularity of tablets. in verizon's second quarter, the number of people that signed up for a plan quadrupled offsetting declines in smart phone subscriptions, which is a market harder to grow with 80% of

morgan brennan has the story. >> reporter: the losing streak continues for atlantic city, the downgrade is yet another blow putting ac in a rare category of non-investment grade municipal bonds including detroit harrisburg and puerto rico but the debt isn't at risk of default, at least not yet. >> with the moody's rating, it has a negative outlook, which means it can go down further in a relatively short period of time and i think they are waiting to see how the closures are going to affect the tax space. >> reporter: ac only has about $245 million in long-term debt, a relatively small sum compared to larger cities billions, but the risk is that things could keep getting worse. the city has long struggled with high unemployment, poverty and crime and competition caused a 45% drop in gaming revenue, the city's main source of income since 2006. this month, trump plaza warned it will likely close in september, becoming the fourth casino to close or consider closing since just the start of the year and adding insult to injury, on tuesday, robbers reportedly made off with more than $180,000

morgan brennan has more. >> reporter: alcoa shed light on a big much er shift from aluminm to industrial. >> it's a transformation in high gear, you see the value at business makes up roughly 59% off the revenues but almost 70% off the profits. >> reporter: alcoa is concentrating on producing parts for airplanes, heavy trucks, turbines and building supplies going from aluminum but nickel and titanium. it's a transition from three years ago when aluminum prices were tumbling and over production in china. that forced alcoa to cut back on mining and focus increasingly on finished products. a higher margin business. rolled out expansion plans of several area space related facilities and last month announced the acquisition of a jet engine parts maker for $3 billion. >> we think the next leg is aerospace. the first accusation highlights what alcoa can put together. >> reporter: so far the strategy seems to be working despite being booted, the stock claimed dramatically as products accounted for more and more of the revenue. >> the business which area space is a component went from 43% to 80%.

morgan brennan has more on what this all means. >> reporter: america's fourth largest wireless provider has been shaking up the industry, aggressively slashing prices to spark competition with larger u.s. rivals, sprint, at&t and verizon. so far, the plan seems to be working. t-mobile continues to add monthly wireless subscribers and now, it's attracting potential buyers. >> we've always said in the long term scale is extremely important. i have to point out we have multiple options to create long-term scale for this company, one of which is been long rumors and one possibility. >> reporter: multiple options is right. while it's widely believed sprint could put a bid in, another company beat it to the punch. today a company confirmed the $15 billion offer for majority stake sending shares of t-mobile higher, even as a broader market sole off. experts say such a deal could face fewer regulatory hurdles, since it would maintain the current number of wireless carriers, but it also strikes right at the center of a heated price war, and that's redefining the u.s. wireless space. expects say

morgan brennan halls more. >> reporter: once the east coast schemeing mecca, atlantic city has fallen on hard times. >> it's a scene of a lot of changes. i have seen a lot less people come down here. >> reporter: by the end of summer, the seaside city could have 25% fewer casinos than it started the year with. as the showboat gets ready to close next month and the rebel heads to auction, in bankruptcy for the second time in two years. >> five years ago that monopoly ended. we didn't act quick enough to realize we needed to invent ourselves. there 23450edz to be a transition period and having a lot more venue itself and activities to give people reason to come to atlantic city. >> reporter: atlantic city's main source of income, gaming revenue, has tumbled 45% since 2006 as states that once provided atlantic city's gambleers now compete for them. pennsylvania now claims the most casinos in the region and new projects are slated or opening in others like new york and maryland. experts say this is a part of a larger industry trend, casino saturation. in 1988, only two u.s. states actuall

tracy, back to you. >> morgan brennan with cnbc.> a $30 million government housing grant tops today's headlines from the philadelphia business journal. philadelphia is one of four cities to receive that grant from housing and urban development. the money will be used for revitalization projects in the north and north central part of the city. >>> food and craft beers will be served at the new venue which overlooks the liberty bell and independence national historical park. >>> there's a new way to have in your way at burger king. they are serving up a gay pride burger called the proud whopper. it comes in a rainbow colored rapper with the inscription that says "we are all the same ç inside." it's being sold through tomorrow at one of their san francisco restaurants. the proceeds will be donated to an organization that benefits lbgt high school seniors. >>> now yourful first alert weather with meteorologist bill henley. >> parts of area running 6 degrees warmer. we are watching the coastline. that's a live view from cape may. iclund

morgan brennan break it is down for us. what's the newest?s choosing a business structure to save on taxes is nothing new. we're going to talk about reits. these are pools of assets that invest in real estate and must distribute 90% of taxable income ago dividend. in return the trust doesn't pay income tax on those dividends, but shareholders do. these have been around since 1960, but they've really taken off in the last five years, used for housing, shopping malls, mortgages, but now we're seeing a surge in nontraditional reits, storage companies and bill-day-old board owners, now just in the past 24 hours, telephone land line companyings like winstream. they've been outperforming the s&p 500 by 20% over the last five years while paying those hefty dividends. meanwhile, we're going to look at another one, mlps, another tax-advantaged structure. they also skirt corporate taxes by payings 90% of profits into dividends, did you they're usually tied to natural resources, if commodities. we've seen a number of publicly traded mlps just about doub

morgan brennan is uptown at the nasdaq. i'm impressed by the fact that the market is able to move up and bond yields are moving down. >> i spoke with art cashin earlier today, and he said in essence you have a situation where there's still a risk out there, but traders are handy capping the situation. investors have taken the tuned to less get back into the markets some in ways. what's telling about the trade, if you look at the sectors, it's the cyclical ones. >> you talk about utilities, health care. but if you look at the overall picture, they have interesting, to go up and of course two big ipos -- not big, but two ipos are double digit. >> they are significant, though. >> it's a sentiment about the market. >> absolutely. dom, thank you. uptown to morgan brennan. the nasdaq is having a terrific day. >> that's right. the nasdaq is regaining ground after that 1.4 percentage drop that we saw yesterday, the largest since april 25th. today we're having the best day since may 12th. the nasdaq is currently up about 1.2% to 44.

morgan brennan knows why, morgan. >> well, we're going to strap on your seat belts kiddies, we're about down a rabbit hole that is corporate taxes. we've been hearing about the tax invernss and it has us wondering why so many now and why so many health care companies. charles cantor says, the health care sector fulfills three criteria that make this strategy attracti attractive. first, these are global companies that have global operations that raise a lot of money abroad. money that would have to, at least in theory pay 35% u.s. corporate income tax to bring it home. second, for a tax inverngs to work, the acquisition must be at least 25% of the companies market cap, in other words, there has to be an acquisition target that's big enough to buy. third, and this makes the most sense for companies that pay dividends, because the companies in theory could use cash to pay dividends to investors, so, tax rates are obviously very complicated, they vary by country, plus all the loop holes, say a u.s. farm ma company has a substantial cash pile abroad. to pay a $4 dividend using that cash, the

morgan brennan outside, hanging by a thread. morgan?ting you the power in "power lunch" today. this is the fastest growing sport in the u.s. and it involves ropes like the one i'm hanging from. we will tell you all about it when "power lunch" returns. ♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. but hurry, offers end july 31st. share your summer moments in your mercedes-benz with us. offers end july 31st. over 20 million kids everyday in oulack access to healthy food. for the first time american kids are slated to live a shorter life span than their parents. it's a problem that we can turn around and change. revolution foods is a company we started to provide access to healthy, affordable, kid-inspired, chef-crafted food. we looked at what are the aspects of food that will help set up kids for success? making sure foods are made with high quality ingredients and prepared fresh everyday

morgan brennan has that story. >> what one analyst deems the end of the smartphone era. are some names that should not be overlooked. we have that list, when "power lunch" returns. e financial noise financial noise financial noise financial noise virtually all your important legal matters in just minutes. now it's quicker and easier for you to start your business, protect your family, and launch your dreams. at legalzoom.com we put the law on your side. [ jackhammer pounding, horns honking ] [ siren wailing ] visit tripadvisor miami. [ bird chirping ] with millions of reviews, tripadvisor makes any destination better. with millions of reviews, >>> hairs of harley-davidson, the weakest performer. citing weaker than expected sales and delay in getting the newest spikes. you can see down towards polaris posting better than expected profits and raised its full-year estimates. you can see polaris up nearly 10% on the trade. back over to you. >> dom, thank you very much. the telecom index lagging behind the broader market so far this year. are some of these stocks actually a g

. >>> now it is time to get down to business with cnbc's morgan brennan. ing, morgan. >>> thanks. hiring is expected to have remained strong for if the fifth straight month in june. we get the jobs report today. the forecast calls for companies to have added 215,000 jobs which will mark the fifth consecutive month of gains above 200,000. unemployment expected to hold at 6.3%. meanwhile, gm will soon start offering high speed internet service in all of its cars. the wi-fi options will let users link up to seven phones, laptops or other devices to the web, and customers will have to pay $10 a month for 200 megabytes of data. americans will be chowing down on a lot of food this july 4th. the national retail federation estimates consumers will spend $ 6.2 billion. $68 on burgers, snacks, and other items. back to you. >> thanks, morgan. >>> just ahead, the president talked to america's most popular athlete, and the rest of your sports highlights. that's straight ahead. does in a day is building up layer, upon layer, upon layer of bacteria. and to destroy those l

it's down 2% after that earnings miss. >> morgan brennan, thank you.et's kick you a our earnings trade book with at&t shares lower in the after hours, dan. >> i was going to talk about wireless, when you think of at&t, you think about that. t-mobile has done a job in the u.s., moving things around, making guys change their tloefr. they missed everyoneings because of this move to next, users will pay lower monthly fees for their service and finance the cost, full price cost of the phone over the life of it. they missed everyoneings there, they were talking about the combination between d tv. the stock is i think up 12% on the year, it's a good solid company. if you make it 32 you the closure of this deal i think you want to own at&t. >> let's talk cheesecake, the cheesecake factory, revenue coming in a bit light. >> the problem is this is a company that couldn't do anything wrong and now has three bad quarters in a row. this is a stock not terribly cheap. i think people will be cautious, when there is pressure in the space, there is pressure on the mar

morgan brennan is here with the story. h a break, morgan. >> the losing streak, it just continues for atlantic city. you've got high unemployment, poverty. crime, all been problems there for years. since its peak in 2006, gaming revenue has dropped, get this, 45% for the is i. that's as competition has increased from neighboring states. now all of that plus a series of negative headlines this year have contributed to yesterday's downgrade. back in january, atlantic club closed. that was a sign of things to come for the city. next in june, rebel was supposed to usher in a new era for ac. filed for bankruptcy. it was the second time in two years. that same month, caesar said showboat will also close by the end of summer. this month, trump plaza warned its employees that it, too, is likely to shutter its doors in september. now, adding insult to injury, just tuesday, robbers reportedly made off with more than $180,000 from caesar's ac at gun point. and finally, we get yesterday's news where moody's drop in the general obligati

. >>> time to get down to business with cnbc's morgan brennan. d morning, morgan. >> thanks, dara. jpmorgan ceo jamie dimon diagnosed with throat cancer but says it's curable. he will undergo treatment for about eight weeks but plans to be involved in day to day operations. he has been ceo of the bank since 2005. google, beefing up its music lineup striking a deal to buy songza. their technology is known for using things like time of day and a user's location to create customized play lists. and the white house spending about $38 million a year on salaries for 457 workers. but 22 people account for the bulk of that. getting $172,000 each, that list includes press secretary josh earnest and national security adviser susan rice. back to you. >> thanks, morgan. >>> check this out, if all the world cup play has left you with the munchies 7-eleven is selling doritos loaded. it is a warm triangular shaped mozzarella stick coated and pan fried with the signature dorito taste. yum. >>> much more ahead including why these photos are stirring up so much con

tax inversions are favor to believe dividend paying companies, morgan brennan joins us now with more organ. >> hello ladies. we've seen a lot of these strategies deployed in the health care sector, and charles cantor says, many biotech and medical device companies are doing this because it fulfilled three criteria that makes this attractive. they raise a lot of money abroad, to bring that money back to the u.s., they would have to pay up to 35% u.s. corporate income tax and that's not including the state taxes. second, for a tax inversion to work, the acquisition must be at least 25% of the company's market cap in other words, there has to be an acquisition target that's big enough to buy and third, this makes a lot of sense for, or makes, yeah for companies that pay dividends or want to pay dividends because the companies in theory would have to pay taxes to repay treuate the money they're looking to distribute in dividends to invests. so tax rates are very complicated and vary by country, but let's say in theory, a u.s. company with cash abroad is looking to pay a dividend, it would

let's turn to morgan brennan live at cnbc world headquarters. good morning. >> good morning. futures are higher, that's after stocks rallied on tuesday. doubt came within two points of 17,000 before pulling back. investors cheering a report showing u.s. manufacturing has grown for 13 months and new orders are at highs not seen since late last year. today, we're getting data on private sector job growth and factory orders. the dow rising 129 points to 16956. the nasdaq up 50 to 4458. google beefing up its music lineup striking a deal to buy a music streaming service. the app has 5.5 million users versus 7 million for pandora. it's best known for using things like time of day and user's location to create customized play lists. back to you. >> thank you much. >>> right over to christina. a look at the forecast for today. cooler. >> it's going to be really nice. good morning we have a lovely day for you. you made it through some pretty impressive heat at the start of the week. i can tell you today we're back down to the low 80s. cooler than average for some spots across the bay

morgan brennan has the details in this morning's cnbc business news.single day it seems like we're hearing more problems for gm. >> it does, tracy. gm announcing six more recalls affecting 8.4 million vehicles with 7.6 million in the u.s. now, most of the cars are older models and are being recalled for that ignition switch issue. gm is aware of seven crashes, eight injuries and three deaths. the company has in total recalled more than 29 million vehicles this year. this news comes as the big automakers report june sales today. they're expected to slip slightly but maintain a torrid pace. so far, the recall headlines hasn't impacted gm sales overall. back to you. >> morgan bren be with cnbc, thanks. >>> if you're involved with a nonprofit group, we want you to take advantage of this. the grant profits for 21st century solutions. the goal is to help your good ideas become great ones. applications are accepted until august 8th. for nbc10.com. >>> your nbc 10 first alert weather. >> a warmer start this morning, 5 to 10 degrees warmer in the area. it will

cnbc's morgan brennan. good morning. >> reporter: good morning, betty.m announcing six more recalls affecting 8.4 million vehicles, 7.6 million in the u.s. most are older models, recalled for ignition switch issues. gm is aware of seven crashes, 8 injuries and 3 deaths. that's 29 million vehicle this is year. but it's a great week for gopro. shares have soared 60% since the ipo on thursday. that's benefitted founder and ceo nick woodman. his stake in the company, now worth about $2 billion. and the ford f-150 tops cars.com null american-made index. where they are assembled and how many domestic parts they use. the toyota camry is second, made in kentucky with mostly u.s. parts. >> i'm stuck on how good it is to be nick woodman right now. >>> this morning, supreme reaction to the high court's ruling that they can refuse contraception. hobby lobby can drop morning after pills, but still covers vasectomies for male employees. we have more reaction. >> reporter: outside court religious rights activists cheered the rule. >> a landmark decision for religious f

. >>> let's get down to business with morgan brennan from cnbc. >> stocks are coming off a rocky week ending in positive territory friday despite being hit by the swreeo political worries in ukraine and the middle east. it's a huge week for corporate earnings as a dozen dow stocks and more than a quarter of the s&p 500 report results. meanwhile, rj reynolds vows to fight a jury award of $43 billion to a widow of a man who died of cancer. the world's second richest man is calling for a three-day workweek. carlos blen instead of retiring at 50 or 60, we should work longer, but take more time off. the 74-year-old believes that would create a healthy and more productive work force. dara, back to you. >> thank you, morgan. >>> just ahead, it is totally insane. forget his golf skills. rory mcilroy wins the british open. >>> plus, beyonce drops a 50 shades of gray teaser. the instagram move causing the buzz. you are watching "early today." . they're irresistabowl... totally delectabowl. real silky smooth or creamy broths. everything she's been waiting for. carefully crafted with real seafood

let's turn to morgan brennan live at cnbc world headquarters, good morning. >> reporter: good morning scott. gm announcing six more recalls, that's affect 8.4 million vehicles with 7.6 million of those in the u.s. now most of the cars are older models and are being recalled for ignition switch issues. gm is aware of seven crashes, eight injuries, and three deaths. the company has now recalled nearly 29 million vehicles this year. almost double the amount of cars the entire industry sold in the u.s. last year. meanwhile, futures are higher after the mixed, after a mixed session on monday, however, the markets closed out the second quarter on a high note. the dow is up for four straight quarters while the broader s&p 500 is up six straight, that's the best streak since 1998. today we're getting data on manufacturing and construction spending. the dow falling 25 points to 16826. nasdaq rising ten to 4408, back to you. >> thank you much. >>> time to check in with rob, he got up bright and early this morning. >> it's too early. sun's not up. >> let me get you the coffee. >> we need it this

. >>> get down to business with cnbc's morgan brennan. good morning. >> hiring is expected to remain strong. we get the monthly jobs report from the government today. forecast calls for companies to have added 215,000 jobs which would mark the fifth consecutive month of gains above 200,000. unemployment expected to hold at 6.3%. meanwhile, gm will soon start offering high speed internet service on all 2015 cars. the wi-fi option will let users link up to seven phones, laptops or devices to the web. customers will have to pay ten bucks a month for 200 bites of data. >>> americans will be ciaoing down on a lot of food. consumers will spend $6.2 billion. that breaks down to an average household spending of $68 on burgers, snacks, other items. >> making me hungry already. >>> some stories making news this morning. the iraqi government is stepping up efforts to repel the growing militant take over. fighter jets conduct hundreds of air strikes on isis controlled areas. president maliki called on his countrymen to rise up against isis. offering

for the rest of the news before the bell, let's turn to morgan brennan, good morning. >> reporter: goodorning, well futures are lower, that's a stocks come off rocky reach. fell sharply on thursday on the geopolitical news on ukraine and the middle east. friday's rally pushed stocks back into positive territory. a huge week for corporate earnings as a dozen dow stocks an more than a quarter of the s&p 500 report results. the dow rising 123 points friday to 17,100. the nasdaq adding 68 to 4432. gm reportedly told cadillac dealers to stop selling some cts models because it doesn't have a fix yet for an ignition switch problem. gm recalled more than 550,000 cadillac last month, and the automaker says the engine can shut off if the drivers knee bumps the ignition key. r.j. reynolds vows to fight a reward of $23 billion in punitive damages to the widow of a smoker who died of cancer. it's among of thousands filed since the state's supreme court threw out a settlement with big tobacco in 2006. but legal experts say it's unlikely the award will stand on appeal, scott, back to you. >> morgan, t

let's turn to morgan brennan, she's live at cnbc world headquarters, good morning, lauren. >> reporter: futures are higher ahead of the economic data that june jobs report is expected to show hiring remains strong for a fifth stwragt month. forecast calling for companies to have added 215,000 jocks with unemployment holding steady at 6.3%. we're also getting data today on filing for unemployment, trade deficit, and services spector. rising 24 points yesterdayed to 16926. the nasdaq slipping to 4457, back to you. >> thank you much. >>> from morgen to christina, she has a look at the forecast for today and little beyond. >> good morning, current conditions, for that fire that's still burning in napa county. we usually get the latest updates at about 6:00, for about an hour and a half away, maybe two hours away from an update. the only thing is the wind is picking up from time to time and it's getting strong to the tune of about 17 miles per hour sustained in the area. but then it drops right back off. we're seeing the wind that picks up and drops off in the area elsewhere. it's pretty ca

and morgan brennan is going to join us to walk through those numbers. what do you see, morgan?re still sorting through the report, but right now, non-gaap 69 cents earnings per share. that beat analysts' expectations by a penny, and that is on $4.4 billion in revenues. that's coming in just about in line, again, with street expectations. one of the things i want to call out, commerce volume increased 26%. and the thing to really watch here is they have revised their forward-looking guidance. q-3 coming in a little light here, coming in at 65 to 67 cents non-gaap earnings per share on revenue of $4.3 to $4.4 billion. that's a little less than the street was expecting for the current quarter. also, taking a look at full-year guidance, eps in line and revenues, again, a little light there. kelly, back to you. >> thank you very much. i want to get some further reaction now to these numbers from ebay. the shares are gyrating a bit after hours on this report. let's bring in analyst colin gillis and david garrity. tim seymour's with us here still, too. colin, the first three lines of

morgan brennan is live in atlantic city. morgan?reporter: if you wanted to gamble on the east coast, this used to be the place to go. i'm not going to sugar coat it. this town has always had big problems. whether it's pulling if gamblers, money and jobs, some fear the industry that's powered a.c. could for you be going bust. we'll have more on that after the break. it's a complete checkup of the services your vehicle needs. so prepare your car for any road trip by taking it to an expert ford technician. because no matter your destination good maintenance helps you save at the pump. get our multi-point inspection with a synthetic blend oil change, tire rotation, brake inspection and more for $29.95 or less. get a complete vehicle checkup only at your ford dealer. >>> welcome back. a tough day for the airline stocks, continuing the sell-off from last week. new security measured have been announced that would impact international flights into the u.s., but cowen thinks it's create ago buying opportunity for now, saying the industry is

morgan brennan joins us now with a preview. morgan? >> thank, kelly. estimates for the aluminum giant, 12 cents per share on $5.66 billion in revenue, that would represent a 3% decline in sales, but a 78% increase in profits. the ongoing story for alcoa, its transformation into a products manufacturer. so, investors keeping an eye on revenue in the flat rolled and engineered products divisions. also looking at how primary metals, basically the mining and smelting operations are doing as aluminum prices seem to be stabilizing. watch for alcoa's aerospace industry outlook, considered a big growth area for the company, especially now that it's acquiring firth rickson for about $2.8 billion. kelly, back to you. >> a big deal for them, and ceo klaus kleinfeld will speak to me exclusively after the earnings come out after the show. morgan, thank you. we'll see you with more numbers in about a half hour. >>> first, earnings warnings from samsung and philips, issued for this current quarter. samsung citing weak smartphone demand for q-2, philips saying its hea

morgan brennan is in a.c. with more. can it, morgan?> reporter: well, i think that's the big question everybody here is asking. atlantic city continues to struggle. all you have to do is take these casinos behind me. the showboat is set to close next month, and the rebel could close as well if a buyer doesn't come through. the main source of revenue, is down sharply. that drop doesn't seem to be stopping, thanks to increased competition from nearby states that once supplied a.c.'s gamblers, now they're competing with them with new casinos of their own. more competition is coming, maryland has two projects in the works. new york state just accepted 17 applications for four new gaming licenses. this is forcing atlantic city to try and reinvent itself. the concept that you're coming here, that there's a silver bullet is gone. what i need to do is have 100 pauler bbs that are going to make you come to atlantic city and have a good time. >> his plan to turn a.c. into an events destination for groups and conventions, using las vegas as a temp

morgan brennan fresh off her successful performance from the casino in atlantic city yesterday. she's back with us. >> alcoa has been doubling down on industrial products, manufacturing parts for airplanes, autos, heavy trucks and construction materials. much of it is made out of limb news, but also nickel and titani titanium, why? products are high margin and could benefit from lower commodity prices. it used to describe itself as the world's large -- now it's rebranded as a global leader in lightweight materials engineering. it's this shift that investors will be watching for closely in earnings later today. the business model breaking down into four segments, mining and smelting, which have been cut back due to depressed aluminum prices, and the two products division, those have been steadily growing over the past three year, accounting for 57% of the company's revenue in q1, and 76% of after-tax operating income. alcoa is expanding the facilities in virginia and indiana, and of course acquiring jet engines parts maker for 2.85 billion. this added product push is super anthon