emily: apple shares are popping today thanks to gene munster. yes, this is cyclical.e been a lot of concerns about production cuts for the iphone success and success plus. a number of people have been s and look, -- iphone 6 six s plus. as we move for the iphone seven release in september, jean gene munster is expecting things to get better. that does not take away from the fact that apple is very reliant on the iphone. 66% of their revenues come from the iphone alone. down the line, they will have to consider diversifying their revenue per for leo -- portfolio, but for the year, munster thinks the bad news is already priced in. david: talk about the important the iphone.h are on i imagine competing search engines would like that space. talk about the importance of getting that contract. emily: i think i probably read that 20 or 30 searches in search bar every day. it sounds like a lot of money, but it's less span what gene munster would have thought because google actually makes $3 billion on the iphone, so they are paying about a 30% traffic acquisition cost. there

piper jaffray gene munster saying the stock could rally by the fall.ng us now for our call of the day. gene, i don't think anybody is surprised to hear you or see you or read a bullish call from you, but this is a big one. >> yeah. it is. part of the reason we think this is a golden opportunity to be more aggressive and in general, as you said, we've been positive on apple, but there are periods where we think our just unique students, and we think this is one of them. let me quickly go through why we believe that. valuation on a ten-year basis is near -- the second is that i've spent the past week meeting with investors and it's clear that they are handcuffed going into the earnings call. there's going to be a massive reset. our belief is that everyone is waiting for this reset to happen. important waiting for the street numbers for the june quarter to come down on the march guide. >> why not just watt for the reset? there was a note earlier this week from one of your competitors at ubs who thinks that the iphone numbers could even be worse than peopl

we spoke with gene munster about this.here have been rumors about how much google actually pays for this service. >> it sounds like a big number. but in context they generated 3 billion in revenue from that. what that implies is a 33% attack, traffic acquisition costs. that is more than a typical traffic acquisition costs, but less than what had been rumored. in some ways if you are going to ask me to guess before i saw the number, i would have guessed it was closer to $1.5 billion. paul, obviously google and apple are fierce and pedicures. at what point does apple say, we don't need your billion dollars? >> for their sake i hope never. that is a big chunk of change to give up on. you look at mozilla, it became a lifeline keeping that company alive. these things tend not to go away. it is an important line. emily: paul, gene munster is bullish on apple. a lot of other analysts, not so much. how do you think apple's story plays out this year? >> did gene stop being foolish -- bullish at any point? no fault of jean. i am sti

gene munster is still with me.n i spoke to the cfo of apple yesterday, he emphasized currency issues. is that the real problem or is it the reliance on the iphone? >> the reliance on the iphone is a great strategy. the downside of that is we are all waiting to see if apple can introduce a device that has the financial and social and cultural impact of the iphone. the iphone is so powerful. i got rid of my watch and i use my iphone as my clock. i stopped using my ipad as much because the iphone got bigger. it is cannibalizing all of these new devices apple is working on. emily: you cut your price target on apple, as did others. why? gene: we had to bring our earnings down because we are being more conservative. we wanted to take a more prudent approach. emily: having worked at google and facebook and closely with apple, which company are you most optimistic about? bret: i would probably say google. they have a unique set of assets where they own some of the most important services and they also own the most widely d

on theg of buying addict, gene munster says apple shares are about to pop. apples why he expects shares to go up 50% by the end of summer. for more on today's activity, going to the markets desk.

piper's gene munster says apple's stock could go 50% higher. see what the desk thinks about that call, and we will see you in about 15 minutes. >> sounds good, scott. thanks. david faber is back at post nine with news this time on american express. >> we're watching that stock, of course, this morning as you well know. carl, down over 12% after earnings last night were not what people were looking for. particularly the guidance for 2017. now, some at least holding out hope that perhaps the presence of value active -- an investor, of course, that can get active at times which took about a billion dollar position last summer might start to agitate. i think you can forget about that because sources familiar with the situation tell me valueact no longer owns a stake in american express, having disposed of that late last year. let's call it the november time frame or so. the expectation that is amex, which is face aing lot of different pressures on its business. others secular and some cyclical, perhaps. you would have agitation on the part of a sig

this is the munster family? it's like a three-way civil war. looks like syria. the establishment going after both cruz and trump. here's reality. the establishment actually likes some -- grudgingly likes donald trump's personality. they kind of admire his brashness. they just hate his ideas. he's got a goulash of ideas. they don't go together. they like ted cruz's ideas but they hate his personality. they hate the fact that ted cruz used their faces to springboard into national prominence. they have one guy that liked the ideas, hate the personality. another guy they like the personality, hate the ideas. so, they're going after both of them full bore. we will see now whether or not the so-called establishment is anything but a paper tiger. i can't tell yet, but this is hardly a polite family discussion. this is a war. this a full-out war. >> van, i can just say something that might surprise you, van? i really agree with what you're saying. the republican party is a conservative party. two-thirds of those who will vote in these primaries are conservatives and the

a closer look at what's going on here with the band all the way out towards ham den, munster, even chardon. notice things get a little bit more broken up as you head farther south. inland, canton, canal fulton. this area not a lake-effect snow area. so for folks here not a real big deal come tomorrow morning. it will just be cold. same deal for medina, lodi, as you head off to the west, wellington, a little band here, lorain, strongville, also snow over the lake. so light snow through the overnight at times in our snow belt we could see it a little heavier. and worst of all, some areas could get a few inches. that's why we have the lake- effect snow advisory until noon tomorrow for lake geauga and ashtabula counties. everyone is going to see the cold. tomorrow. newsnet5 and good morning those. much colder air moving in from the north and west. look at these readings. chicago, green barks minneapolis, st. paul. minneapolis is at five below. unbelievable. morning commute, a few scattered snow showers easter. once we move through the things out. but look at these temperatures. only in the low

it was gene munster. >> he's obviously an uber bull. >> well we've talked about has the growth been sucked out of the stock. and when you look at the stock that has apple watch, the iphone sales, that are only, we've talked about this, you would think that product has been around since the '90s. it is only around since the '07. they are capable of hitting another ball out of the park. >> how many of you go apple? >> right here. >> i think we're in a case for apple. i think steve is talking about sentiment. talk about the reasons why you would be a long-term holder which include the installed base, only 20% and a stock that had tremendous growth out of china. everything we're hearing out of the chinese consumption story is that hasn't changed. this go news a print next week. up or down, i think the market is sideways. >> i remember a quarter where the expectations were low. and this low going into a print. on iphone sales and people aren't expecting much. you are watching levels. and grasso will make your way over to the smart board. >> love this. >> you need to pay attention to. >> look at

pat's steaks offered special veggie steak, inside the sandwich salve aid broccoli rain, lime juice, munstered off with a egg, for good cause, ovarian cancer research. but what's it taste like? >> just very tropical yet spicy and urbacios. >> that's new one, i like t sales of the sandwich generate add thousand bucks, pat's donated another $2,500 to that cause. looks pretty good. if you could eat taco's for months, as a way to lose weight, would you do it? i mean, come on, who wouldn't do it, right? group of self proclaimed taco scientists, yes, in austin, created a 30-day taco cleanse, but, not the tacos you're used to, catch here. group published a book with over 75 vegan recipes, for healthier take on the mexican favorite, there is the catch, not really tacos. health professionals says if you can make your favorite taco healthier, do it. >> wonderful vegtables and beans, beans are so good for us, if you can wrap those inside maybe a lettuce leave, or maybe choose corn tore till, a i think that that's a great option. >> and they say it is the last diet you'll ever need. so apparently it wor

greater cleveland. stretching to lake geauga and the main band along 322 corridor from chester to munster i believe we have a live picture. john rudder. what do you got in geauga county. >> reporter: cold and windy. we will give you an idea. outside driving conditions not too bad, the roads mostly wet. some of them snow covered in some places looking at the temperature right now, we are at 18 degrees. there's some light snow falling and that has picked up as we have moved east away from cleveland and the visibility has significantly decreased. highways, those were cleared and light dustings on the back roads. temperatures as we mentioned below freezing so there is that possibility of anything that has been melted earlier that could refreeze, you want to be could look wet and be indeed frozen over. our windshield wiper fluid has frozen over several times and we will update you on our conditions. now back to the studio. >> nice job and storm tracker 5. he is right here route 306 just out of chardin, he has to get to the route 322 corridor where the main band is. again, snowfall -- john, why

gene munster says the rally has just begun.e joins us now from minneapolis. -- call.old carl >> the the thesis? historical trading over the past year. we are not at the historical historicalar the lows. that gives us confidence to be positive. to your point about the 50% upside, historically the multiple expands after the march quarter. the reason is investors are able to look forward to what is coming. office getting busier -- easier into the second half. the iphone sixs cycle was pretty disappointing. why do you have confidence the iphone seven will be better gekk? typically when they have software releases, that does better. right now there are global market share that is room to grow higher. our believe ultimately if they can capitalize on traditionally likewe call full cycle, six or seven iphone seven, if they can capitalize on the hardware improvement, gain market share, that should be good for revenue growth. alix: estimates for next quarter look pretty rough. iphone will go negative for the 10% yeare ever, down on year.

cleveland federal president loretta munster gives us her insight. as next. ♪ >> welcome back to "bloomberg markets." i am at the american economic conference in san francisco. i'm joined by loretta mester. she is a voting member of the federal open market committee this year. this is her first broadcast interview. i keep are taking the time to join us this morning on a very busy morning for the markets. yearaid often in the last in your public speeches that the u.s. economy remains resilient. that seems to be your word of choice despite disruptions in august and december. we see a disruption again this morning and financial markets. some numbers as bad as they have been since the 30's with the start of the year. do you see that resilience playing out again now in january? underlying fundamentals of the u.s. economy remains very sound. there's want to be volatility in the markets. the news out of china -- they were laced -- release manufacturing data that was weaker that was a downturn and the chinese stock market and that spilled over to u.s. stock markets.

gene munster from piper jaffray, a well expected analyst, -- a well respected analyst, things stocksould go up 50% with the launch of the iphone 7. you see apple moving up this morning. starbucks is gaining, falling after the bell. it is down 3.2%. it fell after the bell and continues to remain down after the company said the second-quarter outlook is not as good as the street was expecting. even with first-quarter revenue missing estimates because of the paris attacks. let's go to vonnie quinn with the first word. vonnie: general electric posted first-quarter earnings that beat estimates sales. immelt has been focusing on industrial manufacturing and data analytics. he's getting rid of the finance and consumer-based operations. having a searching bar on the iphone worth for google? $1 billion. that is what google paid apple in 2014. the figure came out in court proceedings with oracle's copyright lawsuit against apple. back to davos with stephanie. recently, cisco announced some key strategic partnerships, including a big alliance with ericsson. the company believes this will genera

gene munster that question and he said maybe.make it bigger or get rid of the home button. maybe they do something with wireless charging. otherwise, the iphone seven is not going to be that much six s.nt than the iphone david: coming up, betty lou speaks to the chief investment officer at pride land investments. his thoughts on today's market turmoil is coming up next. don't forget to tune in tonight for a bloomberg markets special on the turmoil. ♪ >> it is 3:00 p.m. in new york. welcome to "bloomberg markets." ♪ betty: good afternoon. here is what we are watching at this hour. breaking news, tanking again. the third major slide to start the new year as the s&p has its worst yearly start since 1928. the dow off by 400 point -- 400 points at one point. situation,economic is it taken out of context? china may simply have a communications ichiro -- issue with the world. lowest dropped to its level in 12 years. it is just a matter of weeks before we see oil in the 20's. breaking news, stocks are plunging again

top tech analyst gene munster will be on bloomberg west to talk about bloomberg and apple, that is later. ♪ isty: welcome back, this bloomberg markets and it is time for a business flash, some of the against business news stories. a jury has acquitted five of the six brokers charged in the wymore case. -- trillions of dollars in derivatives and loans. the jury is still the liberating charges against the six rocher. clears the way for the next star broadcasting to buy media general for $4.6 -- $4.6 billion. marianne will get a look at the next businesses that media general owns. boeing forecast profits for this year missed estimates. the plane maker is expected to deliver fewer jetliners this year than last year. postedve already production for 747. the stock is taking a wallop on that. for a look at how u.s. markets are trading now, we are coming back from the lows of the session. abigail doolittle has more from the nasdaq with two travel stocks. abigail: yes, the selloff is widespread with online travel companies, priceline and trip advisor trending down. they have gone from a buy. it i

virtual-reality computing but it might not need to much for the -- mean too much for the stock. " a munster in 2016." the stock is been strong on mobile advertising revenue growth. turning to another stock, netflix. this was the top stock last year on the nasdaq. it's been down with a 15% over the last month. today oppenheimer says the recent weakness represents a buying opportunity. is bullish stance is on the stance -- is on their going into russia and india. just be another top stock here at the nasdaq in 2016. betty: buying on the dip. thank you abigail doolittle. we have that scene and our global battle of the charts. we take a look at some of the most telling charts of the day and what they mean for investors. kicking things off, what does joe weisenthal see on his chart today? joe: it's been a fairly gloomy start to the year. markets are falling. there are concerns about china but there are bright spots. one i even think attention to is italy. here is a charter two different indicators. the italian composite pmi, services and manufacturing on the rise. here is consumer confidence in

whether it's amercian, swiss, munster, chedder, or even lindberger if you're a risk taker, today is good day to enjoy your favorite cheese. and if you didn't know, there are more than two thousand types of cheese. the u-s-d-a says americans eat more than 31 pounds of it each year. "drumming" a 24-hour drumming festival kicked off in spain earlier today. the event is called tamborrada, and drummers from across the city beat their way across san sebastian. it's a celebration in honor of the city's drummers are taking part in the event. thank you for watching wavy news 10 midday. log on wavy-dot-com for the latest on your local headlines. join our anita blanton and step at compare.com, we're always looking for ways car insurance search. here's the latest. problem is, we haven't figured out how to reverse it. for now, just log on to compare.com... plug in some simple info and get up to 50 free quotes. choose the lowest and hit purchase. now...if you'll excuse me, i'm late for an important function. compare.com. [dramatic music] [upbeat dance music]

grandpa munster. >> steve: okay. >> jimmy: minus 35 years. >> steve: sure. >> jimmy: equals ted cruz. [ laughter ] see, now, kids they see it.. >> steve: yeah, yeah. [ cheers and applause ] this is gonna sweep the nation. >> jimmy: if you take the alphabet. >> steve: okay. >> jimmy: plus a blender. >> steve: uh-huh.als kristaps porzingis. [ laughter ] he's the king of new york. >> steve: he's the king of new york, i know. >> jimmy: great player, great name. >> steve: he's the king -- he's th >> jimmy: he's the korningus. >> steve: yeah, he's the korningus of new york. >> jimmy: i just officially crowned him korningis of new york. >> steve: are you serious? >> jimmy: yeah, porzingis is the kornughter ] here -- here's another one here, you guys. >> steve: let me see it. >> jimmy: donald duck. >> steve: yep. equals donald trump. you see. very -- you understand. >> steve: that i see exactly. [ applause ] >> jimmy: if you take ricola -- [ laughter ] plus drake, it equals drakeula. drakeula [ cheers and applause ] >> jimmy: i want to suck your bling. have to say it. >> steve: no, he should

gene munster, piper jaffray. thanks so much. tim culpan, our reporter in japan. thank you. with apple now, fit bit taking a page from the cupertino company's playbook. the wearable company releasing the blaze, a fitness tracker with some apple watch like features including a color touch screen and changeable bands. investors, however, weren't enthused in the face of increased competition shares falling to their lowest price since fit bit's ipo. fossil and underarmor also debuting fitness devices. staying with the latest, imagine waking up to the smell of fresh coffee or croissants every morning. a google back start up is making an alarm clock that will give you just that. >> over the last couple years we've seen a lot of innovations with alarm clocks that wake you up with different lights and sounds and vibrations but this is an alarm clock that wakes you up with smell. this is the olefactory alarm clock. it is an alarm clock that wakes you up with smell using the little pods. these little pods contain scents developed by a french perfume house specifically meant to stimula

piece of the day but the winning ticket at this neighborhood store near their home in a small town of munster described as more common thief was like ya lor. today they can be described as a multi millionaire a couple saying they plan to continue working and pay off their daughter student loans the tough in southern california one hour but we're not as lucky today business and employees believing a colleague at the jackpot a nurse there and mother of seven. apparently it was a prank her family says instigated by her son her daughter telling the only time this is one big misunderstanding. the owner of the nursing home had doled powerball tickets to staff and residents say now if this is a hoax. she deserves a break when i was thinking of setting her on the vacation to a destination of choice the third winning jackpot ticket in melbourne beach florida still a mystery to him paul lloyd wright the mystery winners have a year to claim their prize in california less time in they cannot remain anonymous loren lester abc news los angeles. well the job he's held for fifty five years owning and operati

gene munster came out with a call on friday, saying apple could see 50% appreciation until september it mirrors the upgrade cycle we saw in 2013. he will upgrade your hardware and software, and that means evaluation winds up being improved, could mean a huge bump for the stocks. you do have those outliers. it is so undervalued right now. scarlet: next up, we will bring you those apple earnings. ahead of that, apple shares trading down 1.3%. we will be back with apple's fiscal first-quarter results. the only way to get better is to challenge yourself, and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. scarlet: breaking news -- apple earnings just crossing, $3.28 per share, higher than what analysts were anticipating. this is

gene munster talking apple again. >> thank you. >> there's also signs apple may be suffering from a perceptionroblem. a record quarterly revenue but that's not what everybody is talking about. here's tim cook trying to drive that narrative. >> today we're reporting apple's strongest financial results ever. we generated all time record quarterly revenue of $75.9 billion in december quarter in line with our expectations and up 2% over last year's blockbuster results. this is a huge accomplishment for our company. especially given the turbulent world warnd us. >> let's bring in andy cunningham that used to work for steve jobs and apple. she is now the founder of the silicon valley marketing firm cunningham collective. you helped with the mac launch but he also brought you in to help with next which didn't go as smoothly as the mac. great technology. everybody acknowledges but didn't really sell. so if you're apple right now how do you pivot from telling a growth story to more of a maintenance story, at least in the near term. >> they're switching it from the iphone to what they call services and

thank you to gene munster. up next, we will dive into chevron's earnings. the company loses money for the first time since 2002. ♪ vonnie: welcome back to "bloomberg ." american airlines reporting fourth order profits that exceeded analyst expectations. the result boosted by falling jet fuel prices and domestic travel. will --s it says it this after u.s. regulators found severe deficiencies at the lab. the company is providing testing to consumers -- -- the son of rupert murdoch replacing the quiz ferguson. .- nicholas ferguson last year, he replaced rupert as ceo of 21st century fox. we will take a deeper dive on chevron. they reported their earnings earlier, disappointing, but this $588 million for the first time since 2002. forcing chevron to write down the value of its assets. vincent joins us now. tom giles is still with us. is this about chevron as a company? because of oil prices? argument thathe this is a time to buy? >> when we think about chevron, you think about the upstream , productionoutput is a little bit better. the negative impact as pr

piper jaffray's gene munster recommended to investors that they buy this stock ahead of the earningsl. remember, apple has been hurt along with every other major stock that we follow in the selloff that we've been witnessing so far this year. that stock definitely moving higher on that recommendation. now, the weather outside might be frightful -- i had to say it, i'm sorry -- but the markets are red hot right now. so what is the best way to play all of this as we look at a very snowy shot of the white house? i want to bring in our floor show. traders at the new york stock exchange, the cme group and the nymex. steven guilfoyle, new york stock exchange, s&p, dow, nasdaq up for the first week, it looks like, of the new year. does this mean that the capitulation is over? >> i don't think we actually saw capitulation, but this is a really huge technical step. 1880 was the s&p number we came in looking at. that's the number we needed to hold in order to have a positive week. now we're looking at a couple level higher. now 1901, we just saw a bounce. if we could hold that level or get abo

mainland china accounts for 30% of revenue, according to pipers gene munster. ebay down 50% in the pastthere, user growth, profitability. despite the nose dive in the stock, scully remains on the sidelines for now. checks indicate continue muted growth, he says. and on thursday, we'll hear from microsoft. we know investors are fans of sacha nadella and the cloud business. the stock up 10% over the past 12 months. but intel's latest report highlighted weakness in the pc market which could spell a challenging quarter for microsoft. guys, back to you. >> all right. thanks so much, josh lipton in san francisco. up next, speaking of microsoft, it's deal with the nfl not resulting in the type of coverage the company is looking for. that all happened yesterday, and we'll explain, next. ♪ okay, so you launched your bank's app. now what? how will you keep up with the new demands of today's digital economy? the fact is: some believe they won't need a traditional bank down the road, so at cognizant, we're helping banking and financial services companies think digital, be untraditional, and reimagi

tom: we saw goldman sachs do the same thing a few days ago, but munster carries an awful lot of weight on the product cycle of what apple will do. vonnie: exactly. time for my morning ross street -- time for my "morning must-read." from "the financial ceo's anditing about cmo's. the title of the op-ed is "the tiny shifts that sink bill -- that signal huge changes." actually, that is an old op-ed. i will read it from the newspaper itself. intensity, and paying attention to how authorities are managing them or not in china and elsewhere. she is talking about the movement to capital, but not just large sums of capital, not just vast flows. at thesaw gillian tett espresso bar down here. love your morning must-read, and this is something we were doing yesterday. regulator,a chinese how do you look at the markets? we know there is an exit is on the part of regulators, but i think overall maybe we are giving them too much of a break. you also need to give them time. tom: this goes back to the that's being made rhetorically in davos, and particularly someone like george soros, saying with the

apple music will have a material financial impact for the company in the near-term, but piper's gene munsterservice is important for broader reasons, as it becomes more popular it could become a reason for consumers to buy those iphones. >> apple shares up today, 1.3%. josh, thank. >>> when we come back, more from the detroit auto show, including the effect of a possible slowdown in china on manufacturers. and shares of under armour are down sharply, almost 7%, finding themselves in the unusual position near the bottom of the s&p 500. more on why when we come back. >>> the detroit auto show kicking off today. already a number of product unveils and announcements and the ability to get up close and personal with the ceos. phil lebeau joins us from detroit. the question is the strength of china's economy. >> right. we'll talk about that in a bit, simon. keep in mind the auto industry is doing relatively well in china you're seeing optimist from executives here. let's run down some news today at the detroit auto show starting with car of the year and truck of the year. couple of foreign models.