i don't think it's the best days of apple. ality is when this company was reinventing itself, that was exciting. but there's still huge opportunities ahead of the company. and i think that largely gets ignored on days like today, that there's some good things still to come. >> bottom line, andy, this comes down to product cycle, right? and we're waiting for a cool new one from apple and we're still waiting. we've been waiting a while, right? >> yeah, we might be waiting a while. it's somewhere in between, though, and that's the nuance that shareholders can maybe even benefit from here, is that it does come down to product cycles. but apple also has, you know, the highest retention rates in the industry by a mile. and it turns the model into a little bit more of a microsoft type of model where can you mine that and generate a lot of cash -- >> oh, oh, but microsoft has been dead money for 20 years. >> touche. microsoft didn't trade -- [ overlapping speakers ] -- ten years ago, though. yeah. >> all right. let's take a break here.

the story. educate our viewers. >> how many iphones did apple sell in the quarter? e is still an iphone company. that, of course, is what everyone will be watching. 26.5 million iphones sold in the quarter. long gone are the days. people just really want to know. can they keep going? can they keep on delivering those numbers? the fact job to all of this is innovation, innovation, innovation. the question is, can they keep on doing this? they are coming up upon a lot of difficult trends. penetration has hit a wall. what is their next new big device killer? they gave us the iphone. they gave us the ipad. people want to know, can the apple product pipeline keep going? as you said, the backdrop in all of this is the stock. you know, whatever the company does, expect some big movement out of the stock today. and lots of tech companies have been disappointed. liz: people are generally looking for sales of iphones. 28.5 million iphones. sheila will with us. breaking everything down that you need to know. as i said, we have brian over at morningstar. we will get great perspe

it generates most of the profits in apple. given that the gross margins were weak or in line at best clearly a lot of those phones were the older phones the 4s phones and that remains an issue. >> darren, let me get this straight. they're selling based on what you see in the margins they're selling more iphone 4sts, the older phone, not as many ipods as analysts were expecting. do you think there's an engrained user base? do you think these are early signs that people are willing to not buy the apple ipad or buy a samsung or another competitors tablet? >> when you look at the metrics, they have been strong $4 billion in sales in the itunes, icloud space. these are people who put all of their most precious movies music, photos documents online. they're not going to go switch to the next hot product if they've already invested all that time and energy putting -- entrusting all that stuff to apple. i think overtime the key again is for apple to use that platform and find new and interesting ways to monetize that more effectively.

the numbers. remember what happens with apple affect as lot of other stocks an companies and markets all over the st we'll focus on apple. then we'll focus on what that means for the rest of the market. that is coming right up. clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentarto improve my strategy. i take scottrade's free, in-branch seminars... and my local scottrade offic guides my learni every step of the way. because they know i don't trade like everybody. i trade like me. because they know i don't trade i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." [ susan ] i hate that the reason 're always stopping is because i have to g to the bathroom. and when we're sitting in traffic, i worry i'll have an accident. be ght back. so toda i'm fally going to talk to my doctor about overactivbladder symptoms. [ female announcer ] know that goa go feeling? ask your doctor about prescrip

we got earnings all over the place. appleed quarterly profits, but its revenue outlook not as optimistic as the street's. still, the shares are trading higher. and the broader markets are once again on the move. s&p has risen nearly 19% this year with 1700 as the bull's next target. it is wednesday, july 24th, 2013, "squawk box" begins right now. ♪ >>> good morning, everybody. welcome to "squawk box" here on cnbc. i'm becky quick with joe kernen. andrew ross sorkin still on vacation today. we're joined by our chief washington correspondent john harwood. hey, john. good to see you. >> good morning. >> it is a busy day. john's here. >> i thought you were going by carlos danger today. >> i have just plugged your name into the slate pseudonym generator. >> what am i? >> they have an app. >> sandro stealth. >> that's mysterious. we'll play my most interesting man commercials today. >> mine was jose jeopardy. >> whoa. you know,

the conversation. what does this mean for apple stock? so many investors don't know should i buy at $419 or sell into the rally perhaps? >> this is a stock of inflection points. if you look back a year ago, this company couldn't do anything wrong. the earnings estimates were 50% higher than now. and, you know, they set the bar so low, i think this time, that they couldn't help but beat the phone at max put it, certainly exceeded and that will boost a relief in the shares. but, you know, i don't think this is a stock that will mark it's way back to 700 any time soon, but it would look very washed out to me. it's six to seven times earnings, x cash -- >> let's get both of your views on where you think the stock can go. max, let's start with you. where do you think this stock is, let's say, a year from now? >> it depends a little bit to the other point there that it really has to do with the ois 7, the operating system. iphone 5 or 6 coming. this is a 475 to 525 dollar share price. that's where it should be given the price, buybacks and marke

apple. >> it is my creation! >> the tech giant gets a crucial earnings period and brian sullivan has a way to double your money in just one month. plus, what's carl doing with netflix? how you can get in on the streaming giant for a fraction of the cost. and talk about playing the odds. >> guys, what's the first lesson in poker? >> never bet on the emotion at the door. >> actually, brad, it's risk let to make more. and a trade that can triple your money on las vegas sand. the action begins right now. >> i'm melissa lee. these tr traders both here on the desk and in beautiful los angeles. the only thing worse than being steve cohen is being a tech stock. microsoft having its worst day since the final crisis. revealed concerns about the profitability of mobile search. what stock does this matter most to? facebook. today, a massive bearish bed came through. over 85,000 contracts worth of long dated puts traded hands. is this stock in for more pain? doesn't look good in terms of the positioning in fb. >> some of the trading

but most of the apples come from overseas, and we don't have controls over the arsenic levels in those products, and it made it uncomfortable because it seemed it was pretty high. we our own study and it seemed like a big debate.bate. i'm proud today because of the fda came back with a decision, they were going to limit thet amount of arsenic allowed in

the vix spike. when you look at apple, apple also has a vix to it, a vix apple. ned in the first half of the year starting february 1st, as apple was falling, on each successive fall, we saw this negative correlation. volatility rises very sleep in this last little plunge for apple. what people were basically doing is puking out their positions and buying insurance. what happens is over the next few months after that, this negative correlation stops. when apple reaches this peak of fear and panic in the marketplace, we saw fear subside. apple makes the same loaf but v -- low but volatility is cut bay third. >> what's the trade? >> the stock has already moved a bit. i like it. i think we've seen the down trend stop. by doing this i buy the august 4.25 call for 13.50 while selling the august 4.50 call for $4. that gives me defined risk and i have the up potential from 434.50. it think it may even go higher. >> for regular readers of carter's weekly letter, they'll know carter has liked apple since january. >> he used the word bottoming out or the down trend has stop

give some background on what the ruling means for apple and book publishers. >> april of 2012 the department of justice to five publishers which were penguin, macmillan, simon and schuster, harpercollins, conspiring with apple to raid e-book prices as part of setting up the agency and getting there books into apple bookstore and what ended up transpiring over a flurry of legal documents in a three week trial that took place over june was the department of justice trying to prove that apple was essentially the ringleader of this conspiracy and in meetings with publishers over a six week period, e-mails, phone calls and other communication that they conspired to raise e-book prices. five publishers have actually settled with the department of justice before hand, apple had not decided to pursue this in trial and what was interesting was just before the trial happened the judge indicated for a, quote, tentative view, children conspiring with the doj ruled apple indeed conspired to fix prices so it is interesting in that it seems the judge was trying to mitigate against the industrial viewpoint

i'll ask you to weigh in an the apple debate and maybe you will in time. what's going to rule the day in the second half of the year? >> investors got a preview if you think about going to a movie theatre got a preview of what it's going to look at when interest rates rise. it's not going to happen in the near term. there are a lot of factors keeping them low. when they rise you're going to get the same kind of volatility and the same kind of effects in the marketplace as we saw in the last month. what you saw was a lot of the issues that individuals have been buying in order to try to generate some yield in an interest rate environment where cash is at zero you saw those kind of more aggressive investments trade off in the face of news that the fed -- no surprise to everyone but is going to be raising interest rates at some point down the road. >> since you're with wealth management of rbc, what's going to create more wealth in the second half of the year for people? is it bond selloff a buying opportunity? are stocks going to rule the day? which is it? >>

wall street and much of the investing world awaiting apple's earnings. those due out after the bell. and the stock continues to languish. down about 20% so far this year. the overall stock market is up by roughly that much. and we have one analyst here who predicts apple will deliver startlingly bad news. >>> meanwhile, the market marching to new highs even with apple's problems. the dow needs to gain just three points for another record. any positive close for the s&p is a record. right now, we're up .011, as more and more worry is getting into this market that it may be frothy amid a mixed earnings season so far. is that a reason to think it can keep going, michelle? >> also, hotter than the stock market, the housing market. in fact, it's so hot, the first-time home buyers are being priced out. and that's a big worry for some in the real estate business. we'll have diana here to explain why. >> let's take you through the markets now. it's been a bumpy day, i guess i would call it, with the industrials hanging on to a very nice gain, on track for yet ano

broke the law and what the judge found was that yeah when apple work too with these other companies to fix prices that they took it a step too far and did violate the law well here's the problem with the law is it's completely arbitrary what the what apple did is it conspired you can use that word but it met with a bunch of publishers and so we want to exclusive rights to your material and yes they set prices they were able to raise prices in the market but apple took a gamble this could have failed apple could have lost a model a lot of money and it's really up to the consumers to decide whether or not they're going to buy a particular product the problem with the department of justice going after these kinds of cases is they can go after it in a very arbitrary way yeah and certainly and that's that we're waiting to see what the effects of this are going to be but you have to remember that these laws were put into place for a reason back in the late eighteenth hundreds in the days of rockefeller when he was getting when he was home with others and i guess is being scrutin

, the baked apple is what it felt like yesterday. babls were flying during the home run derby last night. prince fielder hit the longest dinger of the night. oakland's yoenis cespedes hit 17 homers in just the first-round to take a huge lead. and make to it the final. he was competing against bryce harper of the washington nationals who had eight homers and then yoenis cespedes's turn once again. >> he rips it with the club. back, back, back. yoenis cespedes has won the home run derby! >> that thing was route of there in only his second major league season. the outfielder from cuba is the first player left out of the all-star game to win the home run derby trophy. >>> the american league starting pitcher for tonight's game will be max from the detroit tigers who is 13-1. matt harvey will start also. late night jimmy fallon sent matt harvey out to new yorkers to talk about matt harvey. >> do you know anything about matt harvey? >> who is matt harvey? >> whose your favorite player? >> oh, dude harvey. >> really. >> is this the one you'r

here come the jared jared, apple, who could blame the executives?ause on the five-year anniversary a federal judge crashes the party that apple colluded with five publishers to artificially drive up the e book price is set out of control? >> it is funny i was so free excited -- so some of my 53 applications if you look at the stock it did not move much the market has spoken. this happened last year the european commission ruled on the antitrust and apple settled without admitting wrongdoing. i think we need to look is what is the next big thing? will the space phone amaze us? if not the stocks moved lower but right now it will press aside to look to the future of apple but i am not sure about. neil: and maybe that's it is not punishment he enough what do you think about that? >> the stock is already down big time from its high of over $7. -- 700. going forward when the government is finished they don't do that well. at&t in the '70s and microsoft this is a worry it will take the focus away from apple of what they do best coming it with great product

the proceeds moved to an irish sub. in many cases it is ali. ernings.s apple's .- earnings >> the many thousands of dollars to have gone from a over the years, do any of the proceeds from that actually get part in ireland or in any of the international countries under the aegis of international property? >> i think mr. volek could answer this better than i. >> the answer is no. 100 percent of the profits on any sale to a customer in the united states whether it is through the channels, or our online stores, all of that is taxed in the u.s.. there is no outbound payments going offshore. host: a report ordered by senator carl levin. here is the headline today. a government watchdog agency found that profit will u.s. companies paid u.s. federal income tax equaling 12.6% of their worldwide income. big businesses are lobbying hard to reduce the official u.s. corporate tax rate. the highest in the developed world that 35 percent. to me said, arizona. chris is on our independent line. my general message is to corporate america act, it is fair, andare playing he you lov

actually the publishers who raised prices. apple, they decided to do that. you can't fault us for doing it. and the judge largely putting aside apple's entire argument that the ebook market would not have materialized if apple hadn't entered the market. publishers looking at holding back titles from the ebook market because it wasn't a good business for them. the judge saying no individual tactic that apple had here was wrong. it was bringing all the publishers together in this way that was the problem. interesting, though, the digital content game has moved on to video. not clear this particular decision on ebooks is going to be that big of a deal going forward, guys, back to you. >> important ruling there with the latest. bringing the focus back to the market and the economy, fomc minutes due later today around 2:00 p.m. eastern. will stocks be able to hang on to five straight days in light of that? let's bring in the cnbc contributor and shawn matthews ceo of cantor fitzgerald. good morning. >> good morning. >> joe, let's start w

broke the law and what the judge found was that yeah when apple work too with these other companies to fix prices that they took it a step too far and did violate the law well here's the problem with the law is it's completely arbitrary what the what apple did is it conspired you can use that word but it met with a bunch of publishers and so we want to exclusive rights to your material and yes they said prices they were able to raise prices in the market but apple took a gamble this could have failed apple could have lost a model a lot of money and it's really up to the consumers to decide whether or not they're going to buy a particular product the problem with the department of justice going after these kinds of cases is they can go after it in a very arbitrary way yeah and certainly that's that we're waiting to see what the effects of this are going to be but you have to remember that these laws were put into place for a reason back and that leading to one hundred in the days of rockefeller when he was getting when he was talking about and i guess th

the case. it's now telling apple how the consensus think it's doing. one problem, things aren't as good as apple says or as bad as the analysts say. discourse will change to the positive, and so will the longer term trajectory of the stock. unless, of course, the consensus is right and there's no longer any there there. wow, hope it's not the latter. stay with cramer. >>> i know it's a huge company, but i actually believe there's a short squeeze in facebook. why? because the last quarter was actually quite good. we opined positively on it here on "mad money," yet the stock got hammered anyway. i think people figured no matter what they reported, it would go down. that turned out not to be the case. qualcomm was another company that people got fed up, except for recommended last week on delivering alpha. once again, delivering alpha delivered beyond anybody's dreams. qualcomm goes higher and facebook goes higher. if interest rates stay the same tomorrow, we go higher. there's always a bull market somewhere, i promise to try to find it for you here on "m

by the way, apple's supplier is getting a boost from apple's times, cirrus makes the microchips. goes cirrus, 3, maybe 4. and i'm going to stay on apple, a branding strategist, bruce, i can see why you're a fan. you can't argue with selling 10 million iphones a month. can you tell that they've regained its cool with these sales. >> you and i have had these conversations a couple of times and i don't think it's black or white, they're hot or not. i think that the apple brand is still the strongest brand out there and i think that the fact that these products continue to turn people on and continue to rush out and buy them is saying that people want with apple's delivering, anything similar, and yeah, they're delivering products, but they're not delivering the brand message that apple gives them. >> look, i've got to tell you a different subject for just one second, bear with me. >> let's talk about the new york's mayoral candidates, anthony weiner. bruce, more sexting after he left office, that is brand destruction for him. if he's elected mayor, is it brand destruction for new yo

new smart watch have traders eyeing the stock. apple shares ticked up 3% yesterday on word the company has filed for a patent in japan for its iwatch. apple has not commented on the reports, which say the filing for the trademark was made june 3rd. the stock rallied monday. some traders are also positioning early in the stock ahead of earnings july 23rd. google's recent billion-dollar acquisition of waze, a traffic app, is motivating entrepreneurs to create one-of-a-kind apps that could make them millions. jackie keenan shows what is takes to be a success in the app world. "don't you agree?" "i agree." agreeing on buttons or no buttons on one of the pages of their app is just one of the decisions happening today at mamabear, one of the hottest apps on the market today, according to cnbc. mamabear helps parents monitor their children's activities, creating alerts to when they make new friends on facebook, post inappropriate pictures or go somewhere you specifically told them not to go. robyn spoto helped launch mamabear last august and w

there's the s&p, nasdaq positive as well. >>> ripe for a buy. with apple booking its best week in two months, is the stock finally, finally safe to own? >>> bet the farm. is zynga's 25% surge this week game on for your portfolio. first, our top story is rally watch. stocks initially shooting higher today on the back of that better than expected jobs report. rates are up, too, though and that begs the question, how can stocks continue to climb if yields do as well? we're trading the action with stephen weiss, mike murphy, pete and jon najarian. is the market proving it cannot continue to go up if rates do as well? >> the market is going through what it went through last week or earlier this week, which is basically off better economy. you have got rates moving up in a measured way, i believe. you could call it a spike but i don't think it is because you're still very, very much an easy rate territory. accommodation will continue and draghi head said we're going to keep going until we don't go. so the bottom line is this is an economic cycle where an economy

the $9.99 book prices. apple insists it did nothing wrong and will appeal the ruling. >>> apple is facing a ban of top-selling bad ggadgets on aug 5th. they are asking the trade commission to lift the band pending the appeal of another case thecently lost. last month they halted the sales of iphone 4 and ipad 23 g in a ruling apple infringed on a patent owned by rival samsung electronics with technology on those two devices. >>> the tribune company wants to split into two. it plans to separate the newspaper publishing businesses that includes big dailies like the los angeles times from the more profitable broadcasting division. it's similar to the split at news corp. last week they spun off the 21st century fox movie entertainment into a accept trbrett company. >>> some of the biggest names in idaho for the alan and company conference where big deals have been made in the past like the timewarner aol merger in 1999 and julia shows us what big deals some of those participants may be working on now. >> reporter: th

and speaking of them, how about the apple, the company as part did all.e're back in just a moment to see if he can hold onto its leaders. ♪ it's a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastrucre, glal broadband network and custom communications solutions, your business is more reli. and with responsive, dedicated support, we help you shine every day of the week. ♪ liz: local investors are facing a huge dilemma, and, yes, if you own u.s. stocks, the business overseas, this includes you. you are facing this dilemma because there are storm clouds over the world's second-largest economy, china, after some grand trade data overnight. it is piling higher and deeper. should investors worry about what i would like to call its that time the creep. the problems creeping into your stocks. when you have almost 4 trillion in assets under management, you're doing a lot of work. right now dow jones industrials is moving lower, but it does not matter. black ro

there are features that the apple market doesn't have most people buying and selling apples are now addicted were under the thumb of somebody controlling them with the ability to say no and walk away. that is not the case of many instances of prostitution so i looked at could reregulate prostitution to get rid of some of the concerns? does the remain even in this society that drives people to prostitution? >>host: those four parameters very quickly is the vulnerability, a week agency come extremely harmful outcomes for individuals and society. where does prostitution fall? >> the vulnerability of the prostitute one of the more popular aspects again it takes many forms but some are very young and many are under the control of other people who make decisions what they do but not on their own ehalf but with systematic equality their prostitution could play a role so the incidence of rape and violence is that many, many times higher against those who are not prostitutes why is that? we deal with the illegal activity it could go away if it was legal but dealing with full verbal people. >>host: if

according to a report the phone was re-charging on an official apple phone charger at the time. apple put out a statement saying "we are deeply saddened to learn of this tragic incident and offer our condolences to the ma family." "we will fully investigate and cooperate with authorities in this matter." china is the second largest consumer of apple products after the u.s. details are emerging on a massive drug scandal in china. four glaxosmith kline employees have been identified by chinese officials.they are accused of funneling millions of dollars in bribes to doctors in an effort to increase drug sales in china.the scandal reportedly dates back to 2007. glaxosmith kline is reviewing all third party agency relationships, and is conducting its own investigation. consumer groups are voicing concerns about wireless giant at&t's plans to buy the much smaller regional provider leap. the $1.2 billion deal gives at&t more valuable spectrum space. but several public interest groups--say it means less competition in the wireless marketplace. last year, the federal communications commis

the case. it's now telling apple how the consensus think it's doing. ng, things aren't as good as apple says or as bad as the analysts say. and so will the longer term trajectory of the stock. unless, of course, the consensus is right and there's no longer any there there. wow, hope it's not the latter. stay with cramer. [ kitt ] you know what's impressive? a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ golden opportunity sales event and choose from one of five lexus hybrids that's right for you, including the lexus es and ct hybrids. ♪ this is the pursuit of perfection. at a dry cleaner, we replaced people with a machine. what? customers didn't like it. so why do banks do it? hello? hello?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello? ally bank. money needs a

and the apple app store celebrating a milestone. ive years ago the i tunes app store launched with 500 apps. today, 900,000 apps are available and 50 billion have been down loaded. thank you. >> millions of current and future students seeking college loans will pay double interest rates after the senate failed to extend a rate decrease today. the senate voted 51-49 in favor of keeping the rate at 3.4% at another year. it means rates are now at 6.8% and will cost average student borrower an extra $2600. existing loans will not be affected. >> this is, if have you a college age student it's remarkable. >> it is continuing. >> that is behind me. my kids are. >> they'll have kids celebrating. >> looking g mainly sunny skies. low clouds at the coast we have that this time of the year. more active weather with more moisture in at moss sphere moving into sierra. but here in the bay area, beautiful late afternoon right now looking northward from our camera under blue skies. these are the forecast features, fog and high clouds overnight. slig

the officials said apple has done nothing wrong and the firm will continue to find against the false accusations. they sued apple and the publishers back in april of 2012. they said apple introduced a scheme to gain 30% of sales in return for allowing publishers to set prices. the publishers have reached a settlement with the justice department. that's the latest in business news. i will leave you with a check on markets. . >> some residents are still waiting to go home. advanced tracts of land are waiting to be restored. and more than half of fishing ports on the pacific coast must be rebuilt. people in north eastern japan still face challenges following the 2011 disaster. but step by step, they are moving forward. see their stories every wednesday on the road ahead right here on "newsline." >> workers at the fukushima nuclear plant are struggling to cope with one problem after another. nuclear regulators say it's highly likely that contaminated water is seeping into the sea. they have a working group to find the cause and find ways to stop it. the plant's operator has been reporting

however, apple is ahead. one of thehis is over at bcc partners and tells fox business that these tests are a logical move for apple. there is clearly a market for larger screen sizes than apple's current screen. samsung has proven that. it is reasonable that apple would want to test larger sizes. they can build a good found at the markets decide which one is worse. this one comes one day before apple reports its fiscal third quarter reports. trading in shares up about a dollar. remember that you are talking about an area in america where they may be fighting over inches. in asia like -- they like the big one. phones and tablets. they fit in the side pocket of a man's jacket. we tested it. he said it is the hottest thing. maybe they're trying to get between. if you can't beat them, join them. amazon is now selling netflix house of cards for a dollar 99 an episode. as the streaming more seed up between these two companies, netflix seems to be pulling ahead with the help of its recent denominations and its stock is certain

. >>> and home run derby in the big apple. "early today" starts right now. >> announcer: this is "early today" for tuesday, july 16th. >>> good morning, everybody. i'm betty ngyuen. protests in the wake of george zimmerman's acquittal turned violent overnight in los angeles. check out this video. in the third straight night of rallies since saturday's verdict was announced, several hundred mostly peaceful protesters gathered chanting, praying and singing. but a smaller group of about 150 broke off and began blocking traffic and breaking windows in the crenshaw area. at one point, at least one of the protesters raided a walmart store. los angeles mayor eric garcetti responded with a tweet saying we should respect martin's family calling for peace. unlawful assembly declared. police are clearing the area. >>> the lapd arrested at least 13 people. a local tv reporter and his cameraman were also attacked. and one person was taken to the hospital. >>> a jur northat case is speaking out, revealing more about what happened during deli

is the largest contributor to this decline. for many quarters, apple was the largest contributor, starting last quarter and continuing this quarter, apple is now a detractor in earnings growth. it's expecting sales to be down for the ipad and iphone. if you exclude apple, the decline would be cut almost in half, we would only have about a 3.4% decline. apple's responsible for a large portion of the decline we're expecting in the technology sector. >> there are lots of ways to play with numbers. but fewer ways to boost your numbers with respect to revenues 37 what do you expect on the sales front this quarter? >> if we look at revenue growth, it's even with earnings growth, we're expecting about 1% growth. however, most of the sectors are expecting growth eight out of the 10, a lot of the weakness is coming from the energy sector. if we exclude energy, revenues would be up above 3% overall. not great growth, but a little better than the 1% expectation we're seeing now. >> give me artful speculation john. >> if the numbers are so muted, so soggy, why is

the early indicators are we go above that just a few minutes from now. trouble in tech land, appleing in more staff for the i-watch. and verizon not selling as many iphones as promised. big cuts for the blackberry and that's not good. you know, we were right, the gas price spike continues, up about 10 cents in a week. but, were we wrong about global warming? the forecast today, hot tomorrow, hot wednesday even hotter. "varney & company" is about to begin. . [ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade. >> all right. we're going to get to the records on the market in a moment. here is what's going to heat up on capitol hill this week. harry reid, wants the nuclear option. this would be an unprecedented change in the rules to make it impossible for republicans to football and stop president

the potential? >> sure. we'll see appleafter the closing bell, expected to announce a lower cost iphone in the september-october time frame which should position them very nicely against lower cost ndia, south america,kets like where a huge, huge untapped resource of smartphone buyers will be lurking. lori: not only do you have a saturated market, you have a crowded marketplace. you mentioned the android phone and blackberry hanging on by a thread some people say, samsung galaxy 4. what do you think is best positioned to benefit in a slowing demand marketplace? >> i think if apple plays their cards right they're really well-positioned. their vertical integration has thhm well-located to maintain everything from the phone and keep component costs low. they make hardware and software. they can control everything. there are no external variable supply chains they are worrying b they're facing direct competition from samsung for every angle of the mindshare and market share. samsung is many about everywhere with their galaxy s-

. >>> apple seems to be falling off out of its tree these days. thehor of, "inside apple" says it is no longer the industry leader it once was. google is set to take over the top spot. he is here with details. "piles of money" coming up. ♪ my mantra? always go the extra mile. to treat my low testosterone, i did my research. my doctor and i went with axiron, the only underarm low t treatment. axiron can restore t levels to normal in about 2 weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those wh are or who may become pregnant and children should avoid contact where axiron is applied as uneecd signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and meditions. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarg or painful brsts; problems breath

this is really going to be the end of the era for apple. suggested products. cheryl: apple tv. >> the estimates will continue to go down. cheryl: you are saying that they will miss and scott is saying they will come in minimal. we will find out. gentlemen, thank you. we will see what they say. dennis: cisco is buying source fire for $2.7 billion. we will talk with chris young had. cheryl: a television channel just for your dog. we will be right back. ♪ i want to make thgs more secure. [ whirring ] [ dog barks ] i want ttreat mo dogs. ♪ our business needs more cases. [ male announcer ] where do you wanto take your business? i need help selling art. [ male announcer ] from broadband to web hosting to mobile apps, small business solutions from at&t have the security you need to get you there. call us. we can show you how at&t solutions can help you do what you do... even better. ♪ ♪ dennis: here is your fox business brief. consumer confidence in the second quarter rose. this according to a survey by global information and insight. portugal rema