joining me now from minneapolis is senior research analyst at piper jaffray gene munster, and from newhina labor watch's program coordinator. you have visited apple supplier factories in china -- and what to clarify -- these are apple suppliers, not apple itself that owns these factories. describe this scene. does any of this information revealed in this bbc documentary ring true to you? >> i think the pure scale of what is going on rings true, and the concept that this is 700,000 workers building apple product -- the conditions are clean but cramped. i think that is just the reality of some of the manufacturer that goes on. the parts i have not seen as some of the sleeping. i don't speak mandarin, so some of the comments from some of the supervisors that were kind of demeaning to the employees -- i would not be able to pick up on some of that. overall, i saw what i expected, and i think for people who do not understand how these things come together, it may be a surprise, but for people who understand how this system works, it's not that surprising. >> apple has arguably been more tra

piper jaffray analyst gene munster reporting apple supply of new phones has searched just in time for christmas. here are we are at the close. the s&p is ending the day barely in the green. the dow jones ending the day up slightly. we had been seeing sums significant gains earlier in the session. the dow and s&p did seem to close out the day in the green. how that goes out. more to come. but the dow you say? looks better than a stick in the eye. >> where to go from here. are you closing the books on that? >> i'm one of those managers that says, you get out while you are still, i'm going to call it. and the bloomberg reporter. there are the rumors. >> we would be selling into the upside. we went from overweight to neutral. we started to see perhaps subpar kind of returns for 2015. that is on the back of decelerating global growth. gdp, real gdp. >> yesterday's number didn't sway you at all? i can't believe it, 5%. itwhen you start to smooth out, where did you go? gdp was below 3% on a real basis. is not terrific. that is still below trend growth. real gdp. >> and you include inflation.

may be months away but consumers are already cooling their excitement according to surveys by piper jaffraysemain muted in their attempt to purchase an apple watch bus there's still questions surrounding the product. the analyst behind that research is gene munster. thanks for joining us. is this that different from any new product category like the ipad when it came out a lot of people were saying why do i need one? turned out millions of people decided they did. is this different? >> it is a little different and the nuance here is when you survey people before the ipad came out, that was their exact response. as soon as they saw it, the interest level jumped up. there were similar numbers before. after it was 30 to 40% of people with apple products said they would buy an ipad. that 35% number basically compares to a 7% number today for the watch. so i think that there is -- there's a couple reasons that are attributed to that but that kind of compares the two. >> gene, it's jon. you know i'm a huge fan of your work. you say we remain comfortable with our estimate 10 million apple watches.

joining us piper jaffray senior analyst.o have you back. >> thanks. >> what a nice tear to the upside for chipotle and dardened a year end what explains that? >> basically what we tell investors is don't look at any one segment. i hear you talking about fast casual. that is a lot of comp growth and traffic in store development or sales growth but there can be winning brands in any segment. a story like darden is quite interesting showing even legacy brands have power in this environment. >> i'm thinking employment getting better. obviously, you think of gas prices. i look at mcdonald's and even with the miserable numbers, $9d 5 this morning, is it setting a natural floor or unnatural floor with names that do deserve to go lower? >> i think it may be. when you think about mcdonald's, it's more to do with the cash flow yield than obviously with the current fundamentals. it's interesting when you look at compare and contrast mcdonald's and chipotle. mcdonald's comps have been negative of late. if chipotle gained all that comp n

piper jaffray had a note out talking about that, saying they're focusing on stocks with high e-commercetion and the buy online pick up store capabilities. they specifically mentioned three companies doing a real good job on that buy online, pick up in the store. nordstrom, kohl's, and williams s sonoma. a lot of high praise for williams sonoma for that in-store pickup capability. piper said 20% of their responds say they plan to spend more next year. traffic mostly in line with expectations at a number of places. we did not hear a lot of discussions about promotions. not as many mass promotions as we heard last year. although, nomura had a note out saying aeropostale, abercrombie & fitch were more promotional this year. you can buy retail stocks in an etf. there it is. that's the main one. this is a basket of all the big retailers. market cap weighted. that's at an historic high. it's only been around a few years. the consumer discretionary sector doing fine, and it's bounced in the last few days. that's certainly a very good sign. i wouldn't call it a blowout year but a decent year. a

joining us is gene who covered par piper jaffray.his going to be for apple? >> well, it's going to be fantastic if you just take a big picture look. it's going to do $60 billion in revenue this quarter. that compares to $22 billion. it's about 35% of apple's business happens in the december quarter. i think the question is is it's going to be incrementally more than people hoped? judging from our work on black friday, it's tough. because we're looking at one day. it's about 1% of their revenue. the promotional activity was unique this year. offer a $50 in-store credit for iphone. the simple take away is they'll have a phenomenal holiday quarter. i would expect some upside but not massive upside given the supply constrains on the iphone. >> i'm on their website now. do they not do a discount on cyber monday? they don't play? >> no, they don't play. they only do one discount per year and that's on black friday. and typically as i said, just the gift card. >> what's your thought on ipads? that's been one source of disappointment. >> it'