the apple ii remained an apple product for an astounding 17 years. a few years later, ibm joined the party. apple took out a full-page ad in the wall street journal and said, welcome ibm. seriously. the ibm pc was not the most advanced computer, but it had the very important job of legitimizing personal computers for business. until this time, most businessmen looked at these microprocessor-based computers like the apple and the commodore as basically toys, suitable for home or education but not business. it took ibm's entry into the field in 1981 with the pc to finally put a stamp of approval and legitimacy on the pc. you could actually do business tasks using an ibm pc. , being atial strategy purveyor of mainframe systems, was to protect the mainframe at all costs. that was generating their billions of dollars in profit. a mainframe computer is literally a room sized computer filled with spinning tape drives and hard drives and people running around. the ibm pc was initially viewed as something that was connect -- something that would connect to the

of the apple ii it keeping apple afloat. the sales of the first two were very disappointed. ii remained apple ii remained a product for 17 years. pc when it came out was not the most advanced computer that it had the job of legitimizing personal computers. you could look at these micro processor-based computers as toys or for educational environments but not for business or it it was ibm's entry into the field with the pc that legitimized this. you could actually do business, you could do tasks with the ibm tc. tore initial strategy was have a tech mainframe at all costs. that was generating their profits. computer --m sized the ibm pc was something connected to those main frames and could stand alone. networkingin the gallery, what we have here is google's first server. at the time they were a small company, what they did was they built their equipment on the cheap. they went to a store and bought a bunch of ibm circuit boards and mounted them on this. this acts as a search engine did if you did a google search in 1999 or 2000 there is a chance your search went through this

later, ibm joint the party. apple took out a full-page ad in the wall street journal saying, welcome ibm seriously. the ibm pc was not the most advanced computer, but it had the important job of legitimizing personal computers for business. most businessmen looked at these microprocessor-based computers, apple, asrs 80 and toys suitable for home or educational environments, not for business. entry in 1981 with the pc to put a stamp of approval and legitimacy on the pc. you could actually do business using an ibm pc trade ibm's initial strategy was to protect the mainframe at all costs. that was generating billions of dollars in profits. the mainframe computer is a room sized computer with hard drives and tape drives and people running around. the ibm d.c. was initially viewed as something that would was initially viewed as something that would connect to mainframes. we are now in the networking and web gallery. what we have beside me is google's first web server. at the time, google was a small company with limited fu

alex: it was interesting, the last quarter of apple sales. hich they experienced they attributed to new customers, not customers upgrading or swapping their old --one for new iphones iphones for new iphones. if apple releases iphone which is an significantly better than the previous one and people still decide to switch to it, the strength of the brand is holding up. if you extrapolate that going forward, the expectation is that -- is that the iphone proves to be the phone that everyone is expecting, then -- selina: something that's become more apparent is that apple needs to build up this service is part of its business as hardware continues to slow. can apple do that fast enough before facebook and google can expand and hardware? david: that's a really interesting question, selina. i think it's pretty funny that somebody should call apple one of the most underappreciated stocks, considering it's the highest valued company in history. it's at an all-time peak. on the other hand, there is a certain logic to that. both those analysts you mentio

right now, apple is about 25% above the moving average. in 2012, apple was 27% above. sharply quickly. in 2015, it was 29% above the moving average, sideways and a dip. this might suggest apple is overextended in the near-term so there could be a pullback for apple. caroline: nice technical indicator. talk about some of the sectors within tech that did well. some chipmakers are hot. >> you are right. we saw lots of chip stocks trading higher. the chip index outperformed the broader markets quite nicely. at one point, up more than 1%. in addition to nvidia and intel, we also saw strength out of micron i had the report on thursday. there's lots of bullish call activity. we also saw a.m.c. rise up more than 6% on bullish comments. the analysts thinking there is more upside available relative to revenue. look at the one-year chart. the stock is on fire up more than 400% over the last year. a big turnaround. one point to be made. is this sector overextended? the bloomberg analyst told me recently he has a big concern about valuation. take a look at 3925. this is a long-term

so that type of level playing field gave route to the growth of the apple like to store now b.c. e explosion of that environment. >> host: what is the average number of apps people thought? did make this successful be have between 10 and 15. some have only one but most have a series of applications. if emigrated did they bring it to surface that is sealed met test. was a profitable? , like this idea but soviet values products the applications are tending to grow more like the individual tool you don't buy that to 20 that opens and does everything it does the one thing really well. generally speaking have between 10 and 15 sometimes 25 there are some better in the well that have been created or are a part of another. >> host: executive director of the of 20 association and from "politico." comeback

skywards is the apple supplier. symantec in the security space doing well, and xerox having the best year since 2013. we have to bring it back to apple. this is the biggest holding in both the s&p 500 and the nasdaq. caroline and i have been looking at the technicals on apple for quite some time. we take a look at another -- it is not pulling up. actually, i'm not able to pull up that chart, but act -- apple can be a little variation -- bearish. signs pointing to the fact that apple could in fact trade down in the near-term perhaps to $120 per-share. that could point to a bit more of a pullback ahead. cory: interesting to watch skyworks perform spectacularly. abigail doolittle, as always, we appreciate it. ibm has a big cloud conference in las vegas. the company is focusing on the cloud because a lot of other businesses are not going well. they categorized much of their business as the cloud last year. caroline hyde has been on the ground. how is it? caroline: i am in the city of sin, and it has become the city of te

. >> since the apple computerunded five years ago, its sales have sky rocketed from $100,000 to $100 million. with the most popular type writer-sized computer on the market. steven jobs is 26 years old and sees his computer's future as the future of man kind. >> how many calculators do you have? >> two maybe. >> and you use the automatic teller machines? >> sure. >> so life is seducing you into using these things. it's going to be very human and very gradual and seduce you into how to use it. >> random access memory is internal memory built inside of this computer. >> these new computers were rough, ugly, difficult to use inventions when they first came out. >> it would crash and you would have to figure out what to do. it would not always create the right results, so it really did take a mind-set of someone willing to cut it some slack. >> don't take big steps. >> everybody kind of agreed their could be the next big thing after the printing press if we do it right. it's not just having a machine. the world needed

so you have almost all the major technology players headquartered here. you know, you have google, apple, facebook, twitter, airbnb, uber, and so it's pretty much taken over the entire region. most of the tech companies are fairly close to each other, you know, traffic permitting, they're probably a 15 minute drive, most of them, one from another. you go up in the hills where tesla is with the headquarters, across the bay they have their factory. apple's in cupertino, we're here in mountain view at google, and sort of any direction you look, you know, you throw a rock, you're going to hit a big tech company. the technology firms in silicon valley play an extremely important role in the local economy and in the california economy. they generate billions and billions of dollars in annual revenue and employ tens of thousands of people, you know, hundreds of thousands if you put them all together. so they're a massive driver of the economy, and they're central to the culture here because, you know, just about every person you look at is going to be either working for a tech company or in a b

the country. if approved, it could be in place sometime next year. >> apple park as landed and about to open its doors. the new effect that the tech campus will have on cupertino. >>> the bay area market continues to boom as the hunt for affordable homes moves into other cities. >>> an update from the first south bay school to incorporate cycling into its curriculum. >> 9:00. we're staying on top of breaking news we have been bringing you for the past hour here. two crime scenes in the u.k. parliament. one inside and one outside of the building. a number of people believed to be injured on a bridge after someone in a car rammed into them. inside of the parliament building itself, we believe a suspected gunman was shot by police. mike, we have been on this story throughout the past hour of mornings on 2. >> that's right. it happened just about 8:00 our time. 3:00 in the afternoon or so london time right now. live pictures. out of our control. you can see people out there on the street. as soon as we do hear in records to a vehicle, quote, plowing through people there on the bridge as the former polish

scarlet: who is part of the apple ar team? re they devoting in terms of resources and man power to the ar project? are they poaching people from outside the company? this is a very significant undertaking. apple is bringing the best of the best from outside in to work on the ar product. one of the people that was really instrumental in the design of the apple watch is one of the best design smart watches to leave the hardware design for the apple ar products. they hired an executive that ran technology innovation at dolby labs. known for audio, video, and next generation technology. he runs the entire group. lucasfilm to run the audio side of the project. outside, these people created the special effects and 3-d animations used in movies like iron man, lord of the rings, the hobbit. they are hiring the best. they made some acquisitions as well but my question is that hiring well-known people from outside the company and making tactical acquisitions does not mean that this will actually happen as planned. your reporting indicate

the most, s&p off by 1%. tech giants, apple, facebook, netflix, holding on to some gains, netflix just turning negative now. they hit fresh inter-day highs earlier today. that's a look at big cap technology stocks. we will paulk talk more about it with the crew. back over to you guys. >> it is 8:00 a.m. in cupertino, "squawk alley" is live. [ music playing ] good tuesday morning, welcome to ""squawk alley"" we are here at post-9:00, joining us walter isaac sand and watching markets closely this morning the president's teflon rally slipping a bit as the dow is down triple digits. s&p back to swae 60 after hitting an earlier high t. nasdaq is down 40 points, speak of the nasdaq, it is a busy morning for apple, stock continues to hit record highs day after day making four new announcements, including new colors for the iphone 7, a new version of the 9.7 inch ipad, and the journal says soft bank is scrapping its plan $100 million investment to create an iphone rival a. lot to encompass, the stock has been on a tear the last few day

the year. also 16% right behind apple. other earnings number we're watching, 56 cents beats by a penny, deliveries up 13. backlog up 18. repeated references to business sentiment, guys for lennar. as i said on twitter, the challenge may be finding electricians and contractors. >> yeah. actually making the deliveries because of the labor shortages everywhere. i do think that sentiment is leading the market here in housing. also, with the kind of continued felt meltdown in retail, investors are looking at other things. housing looks like it has a good supply and demand story. the entire home builder group, all the companies are something like 55 or $60 billion in market cap. moment depot is three times that. it is a high leverage way to play the comeback but had a good run. >> i noticed that usa today money section took out the health care stocks and looked at the relative position of strength given everything going on on capitol hill. the president there to talk about the new health care legislation. it's the second best per

they seemed right since the apple logo is right on the front. >> i gave her an apple card. i don't know what itunes means. >> reporter: judy figured she was out of luck until a friend heard her story. >> she said call channel 7 on your side. >> reporter: she did. we contacted apple and the company agreed to exchange the gift cards after all. saying if a customer reaches out to let us know they mistakenly purchased the wrong card, we work with them to do our best to resolve the issue as we did in this customer's case. now judy is singing a different tune. >> i would have given up if it wasn't for 7 on your side, and i ordered my ipad. i'm so excited. >> apple did not respond to the complaint its gift cards are confusing but says it will swap them out if someone buys the wrong card by mistake. itunes cards are only for itunes, not for hardware at the apple store. now, i want to hear from you, the 7 on your side hot line is open weekdays 10:00 to 2:00. 415-954-8151. you can also reach me through facebook and on abc7news.com. >> can you do something this weekend we should know

they seemed right since the apple logo is right on the front. >> i gave her an apple card. know what itunes means. >> reporter: judy figured she was out of luck until a friend heard her story. >> she said call channel 7 on your side. >> reporter: she did. we contacted apple and the company agreed to exchange the gift cards after all. saying if a customer reaches out to let us know they mistakenly purchased the wrong card, we work with them to do our best to resolve the issue as we did in this customer's case. now judy is singing a different tune. >> i would have given up if it wasn't for 7 on your side, and i ordered my ipad. i'm so excited. >> apple did not respond to the complaint its gift cards are confusing but says it will swap them out if someone buys the wrong card by mistake. itunes cards are only for itunes, not for hardware at the apple store. now, i want to hear from you, the 7 on your side hot line is open weekdays 10:00 to 2:00. 415-954-8151. you can also reach me through facebook and on abc7news.com. >> can you do something this weekend we should know about? >

>>the cost $5 billion to build over there. >>applecupertino's single largest. >> there is that, definitely. >>>the mayor who hasn't yet word apple park, to find out how much apple actually pays the city and taxes, added he would like apple to step up and contribute more than it comes to educating cupertino's youth. >> specifically, helping our children who have special needs, helping our children who come from families that are disadvantaged. i would love to have that connection with apple. >>apple declined to allow us access to apple park, but ceo tim cook emphasize this campus is the vision of the late steve jobs, saying the workspaces and parkland are designed to inspire our team, as well as benefit the environment. we've achieved one of the most energy efficient buildings in the world and the campus will run entirely on renewable energy. >>apple provides connectivity throughout the world. we are about, i would say at least two thirds of our community are immigrants, and the conductivity that you get across, -- continents is remark

cards off a wrack at safe way, and seemed right since the apple the front. >> i gave her an apple card and i didn't know what an itune meant. >> a friend said call channel 7 on your side. >> we called apple and the company agreed to exchange the cards after all, saying if a customer reaches out to let us know they mistakenly purchased the wrong card we work with them. now judy is singing a different tune. >> i would have given up if it was not seven on your side. >> the gift cards are confusing, and apple says they will swap them if anybody buys them buy mistake, and itunes cards are only for tunes and not hardware at the apple store. >>> and then taking center stage last night weeks after his mother saved his life. abc7 news was at san jose's avia stadium when he kicked the ceremonial first goal before last night's earthquake game. he went into cardiac arrest after a soccer ball hit him in the that was three weeks ago, and his mother's maternal and professional instincts sprang into action. >> i was the family physician, but i don't usually do th

." >> plus two children returned to the hospital after drinking apple juice at a pennsylvania restaurant, and their father claims the juice caused the burns. >> chopper three is live over major fire at northwest philadelphia. the fire at the aquatic fitness center on grant avenue has reached three alarms. we've learned one person has been transport today torresdale hospital. live continuing coverage on air and on line at >> we're continuing to monitor three alarm fire at grant avenue and fordham road in northeast philadelphia this afternoon, chopper three is over the scene where we've learned at least one person has been transported to torresdale hospital. thick while smoke continues to pour from the badly damaged structure at this hour. the fire has been burning at the aquatic fitness center since just around 11:00 this morning. >>> of course we will continue to follow that. in other news this noon, sports illustrated model christie teigen is opening up about her battle with postpartum depression and anxiety. the 31 year old made the revelation in the upcoming issue of glamour magazine,

apple and facebook up 24% on the quarter. apple on the iphone 8 everybody is looking forward to.acebook on a strong december quarter. 10% so afell about rebound from the worst quarter since 2012. some strength. as for what is ahead, much of it may come down to apple. 7346. look at this is a longer-term chart of apple. towards the right is the quarterly candle showing apple up about 24%, the best since 2012. the point to be made is we see these rounding areas. the last time apple did have the massive quarter in 2012, it stabilized in a sideways pattern before falling down sharply. we see that has happened a few other times when apple has moved up quickly. it will be interesting to see whether these gains hold. that is one thing to keep an eye on, apple. when we look at the chip sector, lots of strength across the board. , bothf the big names apple suppliers getting a boost. amd, the turnaround continues, up 800% from its 2015 lows. valuation is a concern. between apple and evaluation of the chip sector, these are important factors to look at in technology and for whether or not th

. >>> a father said the apple juice at a lancaster county restaurant put his children in the hospitaley consumed the juice on friday night. 10-year-old richie and his 4-year-old half sister ordered the apple juice and they became i will after they drank it. >> as soon as they took a sip of it, they were throwing up, there was blood and other stuff. >> the children were rushed to the hospital, they suffered burns to their mouths and threat. the manager sailed the juice was bought at a local supermarket and they don't know how or why it would cause injuries of this sort. >>> two brushfires are burning across 700 acres in south florida in palm beach county. high winds are making it difficult to contain them. neither fire is pose ago threat to homes. >>> the sixers host the milwaukee bucks tonight. they suffered a loss against the pistons on saturday night. >>> a police officer was in the right place at the right time, he not only delivered a baby girl on the side of the road, he soon after saved her life. >>> we have two hotel workers who were attacked and a camera caught the whole thing

the pro works with the apple pencil. the new ipad comes in silver, gold and space gray. >>> apple park will be one of the largest buildings in the country and ktvu mike nemick got to take a closer look. at 7:00, here's going to have more on this 175 acre campus and some of the challenges the city may face once it opens. >>> time is 4:51. sears is struggling. sears says it's taking steps to cut its cost by a billion dollars. sears used to the biggest retailer in america. after years of losing money, sears is heading -- it may not be around much longer. sears executives says there's a substantial doubt about the company's ability to cannot continue. they sold to back and decker trying to raise money, but that mite not be enough to save sears in the long run. >> a lot of people unhappy about that. >> they grew up with it. a lot of people working there. >> people who work, yeah. >> all right. we'll keep watching that. >>> 4:51 is the time. breast implants linked to cancer. a warning from the food and drug administration. >>>

for the most part. >> reporter: apple broke ground on the new campus nicknamed the spaceship in 2013nd will spend the rest of the year putting the finishing touches on the building and surrounding landscaping. while occasionally inconvenient, jimmy says he was also excited to see the iconic building take shape. >> they are going for that clean aesthetic, the cutting edge, so i think this is cool. whenever you look at the building, you know that you're looking at the same building and it's going to look the same from all 360 degrees. >> reporter: apple has been cagey. their spokespeople won't say how much the new home is going to cost. most estimates put it in the neighborhood of $5 billion. but customers say they would expect no less from a company known for its cutting edge technology and innovative design. >> they didn't invent the cell phone either. but this is what they do. they spice things up, take it up another notch. it's historic. >> reporter: evin fehely, kp ix 5. >> apple says it's going to take about 6 months for employees to completely move into the new building. part of

coming up on the big show, sean spicer confronted in an apple store to a woman seeking answers about ump's ties to russia. turns out not everyone in those stores is a genius. u.s. soccer federation bands kneeling during the national anthem. i don't care as long as they don't ban me from changing the channel when soccer comes on. back to you, tom. >> tom: thank you, andy. let's walk up our guests. she's been called a magazine maven by npr, one of the cities most influential women by oxygen tv, and a liberal lunatic by some late-night tv host. kathy areu. adult child and comedian joe machi. he's like elvis, a big deal when he went to korea and he'll probably die on a toilet. michael malice. and he's a most interesting man in the world, slightly less interesting little brother. sitting right next to me is comedian joe devito. only slightly. okay, let's start the show. ♪ white house press secretary sean spicer went to an apple store on saturday and met a woman who is still on the fence about the trump administration. >> you helped with the russia stuff, are you a criminal as well? have yo

the question is, jack, will compete with apple? september to mark ten years since entering the business. and huawei are entering the business world. there is competition on all sides, is me? there is a move towards the apple model for owning the mac earning consumer engagement and when you make a switch, you stay with the brand. —— for earning. there will be another big launch from huawei in the next few days in the uk. they have a lot on their plate. they give real—time, jack. so we'll keep our eye on that huawei launch later in the day as well. the insurance market lloyd's of london will establish a new european base in brussels to avoid losing business when the uk leaves the eu, according to press reports. the company has not confirmed the decision, but said it would make a statement on thursday. it has been weighing up different locations on the continent. without the move, it says brexit could have a significant impact on its continental business which generates 11% of premiums. uk car maker vauxhall is to end its multi—million

. >> reporter: he says firefi phone and check it out before they gave it back top to the apple store in center ci will replace the phone. >> i charge my phone every night. i >> through a recall or whatever because somebody could have dies returned to classes after about 45 minutesand the fire departmee all clear. tonight tells us the company has just been made look into it. iain? >> all right, dave, thank y man they say tried to run dow kingsessing. police found aini van at 56th an officer tried to the officer and sped away. the officer dhot. police later recovered the van al looking for that man and woman. adhe tonight in fishtown. a boxaround 8:00 in the southbod lanes of girard skit. emergency crews had all southbound lanes while firefighters worked to put out t t led to pretty long delays but the good news is traffic is. >>> we are following developing tragic news out of texas dd afta accident near san antonio.rs of a church were on board when it t clear if the driver of that truck. >>> on your radar tonight, things are pretty clearn w take live look at the ben franklin parkway. t

eat the apple. no!king news in america this morning, breaking overnight, north korea attempts to fire another missile. hear what we're learning about the test and reaction from south korea. >>> president trump is hoping to close the deal taking his pitch for a health care bill directly to republicans with a sharp message but does he have enough votes? we're live in washington. >>> severe weather is racing across the south. see the new video of the damage coming in and where the threat is right now. >>> plus -- remembering a tv legend, game show host chuck barris passing away overnight. reaction already pouring in.

rounding out the top five -- nectarines, apples, and peaches. with the least pesticide residue -- sweet corn, avocados, pineapples, cabbage and onions. the fda says all produce should be washed thoroughly under running water, even if you don't plan on eating the skin. pam? (pam)imagine shopping at walmart one evening. . .only to come face-to-face with a horse.that was what some customers experienced at a houston walmart.take a look at this video. . .a horse making it's way through the aisles of merchandise. the man on horseback recorded it.there were actually two horses.the man says he and his friend just wanted to try something different.the company's corporate office released a statement saying they do not condone the so-called "reckless stunt". . . and that they were happy no one was hurt. (pam)in sports... barry bonds returns to the giants... we'll explain...(steve) ... and the warriors bench comes up big in dallas.... gary has the highlights... and all the sports... coming up brother vs brother in dallas tonightsteph curry going against his

like a local companies are coming up with budget phones, and they are really taking off in the country. apple it is never really been banned, but it does go to show that if you take on apple when you had to be very sure about what you are fighting because it isa about what you are fighting because it is a huge machine and it will keep pushing, it has the resources and the money to really fight these cases. much more to come. do stay with us. the most significant weather story across the globe at the moment as severe cyclone debbie, as is expected to make landfall on the queens suncoast in the next couple of hours. it has been slow moving. it has intensified. you can make out the eye of the storm on the satellite picture. residents of the queen slant coast have been warned for several days. gusts of wind in excess of 250 kilometres per hour. significant disruption potential due to this storm. we are likely to see the potential of storm surge, rainfall in excess of 500 millilitres, 20 inches, damaging gusts of wind, and even when delays and shifts further south, still some heavy rain expected c

the children ordered the apple juice and got sick after drinking it. >> as soon as they took a sip of it they were throwing up, there was blood and all that stuff. >> the children were rushed to the hospital their parents say they suffered burns to their mowrts and -- mouths and throats. a manager said the juice was bought say local super and don't know how it caused injuries. >>> two brushfires are burning across 700 acres in south florida. the fires are in bomb beach and miami dade county. high winds mate it -- palm beach and miami dade county. the hide winds made it hard to contain the fires, but no homes are threatened. >> reporter: we are dressing the kids in warm coats, temperatures in the 20s. the temperatures spike up this afternoon so they can drop the extra gear. the 12-hour forecast is coming next. >> reporter: in tech bytes, links explaining why stories are disputed. facebook had promised it would do something about fake news here's the start. >>> apple is falling behind in american classrooms. use of ma cs -- mac are lower in schools. gamers have been tweeting about how a

it lead to things like the apple watch and ipad. cts and services that the company makes the majority of its money from now that are all here solely -- because of the iphone. he is looking at a are in the same way. it opens up the door for many things, it is not a c giller product. if you create a tablet is just a tablet. ar can use -- utilize software, create its own gaming ecosystem. there will be much content made for apple and our products. on the others -- hardware side will see other products grow. it is going to the court to a new generation of products and services just like the iphone when it was released in 2007. this created another decade all that ecosystem. >> bloomberg businessweek is available on newsstands now. >> and online at bloomberg.com. what story? was your favorite? >> the cover story was my favorite pet looked at auto parts manufacturers. seeing the growth of this industry, because of tax breaks, it is been good for local economies but not workers. some are losing their lives, and tragic story. how about you?

he is the most apple person in the world. he is the apple guy on the desk. >> i thought you put the hatorade back in the fridge. >> you are wearing a lot of synthetics there. >> i want to mention quickly before we move i just want to note twitter and the move lower today as chris saca, one of the earliest investors, throws in the towel and gets out. jason calacanis was on the previous program and said it is the worst stock in tech you could own. >> agreed. snap may be mind it at some point, by the way. i don't think it is all that much. >> don't tell that to your buddy, dave. >> davis in at 17, though. dave has some time and $4, almost $5 cushion. >> don't forget. >> okay, okay. >> sue herera has the latest headlines. >> i want to know what's in pete najarian's coffee. i think he has had a lot of red bull or something like that. >> just coffee, sue. >> wink-wink, nod-nod. here is what's happening. a suicide bomber detonated his explosive vests inside the main judicial building in damascus, killing at least 30 and wounding man

if you think about the legacy players. how names like apple have nung there and been part of rally when people thought they were a hardware company. i think it is giving you a sense, this speaks to what dave was saying about facebook. the guys with the critical mass are going to be fine here. >> look. apple is coming out with a new form. the supply chain is getting ready. you will see the names continue to bode well. >> and announcing two new r&ds next week. >> china has proven it over and over again and apple is giving them ability to be part of that. >> when you look at the intel mobile idea. disrupting automotive and ten tesla trading off the upside deal. >> it is trading better than i thought. this capital raise now in the rear view mirror, to me tesla makes the push toward 300 that it has had trouble with. i don't know moo the incremental seller is. >> you have been an advocate being utilities and that was one of the best performing sectors for the week. surprisingly with bonds. is that where you want to be? >> when you look at utilities,

several times, the donut hole in appleare three quarters they saw the back of an iphone 6 cycle. our thought is the stock would gin to work. it has begun to work. there are things that have been tail winds, going forward, we think there is a lot to like. >> tim, are the es going to keep up with the ps here? the way investors started to anticipate? >> that's the hope, timer. you see the ecarried by stock buy-backs and huge cash balances on the balance sheet of these big companies. finally, you are starting to see revenue growth. you see it out of pretty big companies. so hopefully, the movement has been from licensing revenue to subscription revenue. >> that can be at a higher margin business. so if we can see revenue growth and higher margins from companies that have, some historically depressed multiples, you can see them continue to rally. >> jason, you may not be able to answer this. the new samsung phone getting great reviews. do you care? it's always apple versus samsung, has anybody really changed? if samsung produce

take a look at the underperformer. apple, yes, it makes sense. american express, yes, it makes sense. hp, too soon so tell. it was up marginally. kudos for thinking out of the box and moving weight from their value based strategies. >> look, they'd be the first to say it's not a guarantee by any stretch of the imagination. they point out that five out of the eight previous picks beat the market when the report was last published. >> my question would be to what degree is this quaunts and to degree of the decision making progress is a flesh and blood person making a subjective decision on the company. we run money and rules based strategies like all the time. we opt for 100% rules based. i want i don't the subjective pl layered on to the quaunt because you could have a guy mess it up by saying yum is too controversial. it's already reflected in the price and you miss out on a home run. >> i think part of the point we're trying to figure out, too, is whether just traditional if you want to call it that, put it in quotes, stock picking baseded on fun

and i believe they will be in the apple 8. r tech to be our leaders and look for biotech to be our leaders. >> speaking of 8s, samsung is coming out with an 8. >> how do you like that? >> the fire phone has been put to rest. >> i wish them the best of luck. i mean, apple was able to go from 93 to 143 during the samsung's respite. you know, i remember one of the reasons i said own don't trade, apple was because i had a stewardess come up to me individually, that's not a samsung, that's not a samsung. i felt like that was a great ad pitch, cook should have -- kind of like steve jobs had the thing that you swing it, 198 -- >> 1984 ad that ran -- >> is that a samsung -- >> ran once. >> i gave that to tim. >> you did. >> i gave him a lot of things. >> you gave him the idea of doing something on a plane. >> play up to samsung. did not do the stewardess aisle thing. that would have been fabulous. >> the apple's market cap is $753 billion. where was the high on that? i'm curious. even though the stock is at a high they bought back so m

we no at the story with apple. t will be on a dip, i'm betting on the phone coming out in the fall. if i'm looking for something that really has the potential to take off here, these two smaller ones are where you will get that kind of action. so i'd much rather be in there. >> dan has a way to play the big tech name for less. what are you looking at? >> if we play would you rather? i wouldn't be buying the stock. it has a three-and-a-half percent from yesterday mornings lows to today's highs, all that activity was pretty hot the stocks closing at all time high, it's up 50% from 52-week lows last february. if you are looking out to their q2, option prices are relatively cheap in apple right now. here's that breakout, it's pretty impressive. there is room down to 130, two, three, on the breakout level. option prices are still relatively low here. if you want to look out to earnings, maybe you want to define your risk or play momentum. you look out to the expiration, you could boy the may 145 calm, take $3.75. that's

the more product apple says on the hardware side, the more uptake. ere are no users of apple services not on an apple device. so, clearly, if you think they've got a phone that's compelling more so than the last two upgrade cycles and you think we're going into this cycle at a four year high in terms o f the arch age of devices that people hold, which the nlist says are 6.4 quarters, those are very sold phones, if you think this is going to be next one to really drive the cycle that gets everyone excited, then surfaces are going to do better. if you don't think that's the case, you can want say services are going b to be great. >> think about this. think about this. a lot of people want to equate apple's services with amazon web services and it's not. that's the point. companies and they'll do together and grow with the iphone. >> i feel like i should leave now. i don't think i'm going to top that. >> coming up, jimmy's wall street firms taking a place on snap. 14 analysts initiating coverage on the stock today. watch our call of the day. it's next. i

>> well, when you see the nasdaq 100, of which apple's a component, doing the same things that apple share price is doing, that's generally a good sign. when you see a disagreement between them, you should pay attention on what apple's chart is saying. if there were a lower high in apple and a higher high in the ndx, that's a big sign of trouble. we're not seeing that right now, so we can still have an ordinary, garden-variety correction at any time, and i think that we're in one. but apple's strength is saying that we shouldn't expect great carnage for the overall nasdaq market. >> and tom, how does apple's size and influence over the nasdaq 100 influence that? i mean, you're going to be much better at explaining that than i would be at sessing it out. >> nasdaq 100 is capitalization-weighted, so the bigger companies have a bigger voice. it's not exactly proportional, so the hugest companies get taken down a little bit from what their share would be if it was purely capitalization weighted. and so, i think apple is, off the top of my head, it's about 3% or 4% of the nasdaq 100. appl

energy materials among the other leading sectors. apple're watching that one hitting all-time highs. a note saying the firm's most bullish scenarios have shares hitting $200 a share over the next two to three years. iphone growth must continue beyond 2018. the company must create new product categories and also buy back more than $50 billion in stock. sears, meantime, soaring to the tune of 14.5%. buying nearly 526,000 shares just last week according to a filing. also a sears board member. >>> investors are looking for clues on raising rates this comes amid uncertainty on the president's agenda. right to washington where reporter steve liesman has a huge interview with the fed chair advice stan fischer. >> the big news was not the recent price hike but the fail europe of the republican health care bill. how closely are you at the fed watching those kind of developments on the fiscal side? >> we're watching them very closely. they'll certainly have an impact on what happens on the economy and they'll certainly probably go through that have

the latest tech revolving door, facebook with the oculus vr hardware division. hillman at applead of hardware at oculus. try to take virtual reality hardware mainstream. that is after facebook hired another big name to oversee all of facebook's virtual reality products. we will talk to adam jonas to talk about tesla's production goals next. plus, some are calling the wright brothers spacex. we will explain why this rocket is a big deal, next. ♪ cory: to say that the tesla ceo elon musk s that a high bar is an understatement. tesla needs to build 430,000 model 3's by the end of next year. they have yet to build one. our next guest is quite bullish with the stock at 50% since the beginning of december. adam jonas joins us now. really glad you are on. you have followed it closely. talk to me about the model 3. it seems like it is the biggest thing for this company. when do you expect it to ship and what price? adam: our forecast are much more conservative than the company this year and next. we expect the company to go into a soft launch mode into the fourth quarter this year. our

. >>> we'll bring the signing to you when the tape rolls, it's a tape playback for us. meanwhile, appleas been the best dow performer this quarter back again, and exxon mobil. >> 10%, the first quarter, nasdaq up 20%, india up 11%. strong spots putting up reports we've not seen in some time. >> there it is. >> frost is here to tell us what's behind the dropoff. >> yesterday, kelly, bill, as we discovered late last year and early this quarter when yields rise, so do bank stocks, and in march, the opposite holds through. yields were not falling. in marches, yields fell, and the curve itself flatten. this chart shows the very strong correlation between the ten year yield and bank's index, both falling this month. also some other factors as well. the failure for republican health care bill played a part based on implications, overstated with the banks because deregulation can be achieved through simply appointments and change of tone opposed to needing legislation. there's also been less of a pickup in m&a than some hoped for. that coming alongside less positive lone growth in two months re

the nasdaq is alsz down in the red down 84 points. >> apple is releasing the new iphone 7. today apple introduced a special red edition of the 7 and 7 plus. proceeds will go to the global fund to fight aids. apple says over the years it's contributed (13) 400-0000 to the aids fund. -- 1 thirlt $4 million. -- one big advantage with the pro is that it works with the apple pencil. the ipad comes in silver, gold, and space gray. >>> still ahead the search is on for a driver trying to hit people in a parking lot. and an incident moments before is what set that woman off. >> also we're learning more about first daughter ivanka trump's office will be located in the office and what information she'll have access too. >>> union city police are hoping surveillance video will help them identify the driver who backed the car into a family of five. >> this happened at 6:00 sunday night at the walmart union l.a.p.d.ing center . ktvu's amber lee explains what investigators say may have sparked the incident. >> reporter: store cameras captured this image of a woman police say tried to retur

the public. >> and sean speiser confronted inside a apple store. the one thing that he said that angered the woman behind the cell phone video. >> and it's coming. snow, snow, and more of it the preparations on the east coast tonight before a big blizzard hits. >>> and dan, i will have the latest on the blizzard and a look at the local changes that are coming and trust me, you are going to notice those changes. all the details are coming up. >> thank you very much, all of that is ahead, but first a look at what is coming up tonight on "jimmy kimmel live." >> tonight's show is all about love. you have not discussed your wedding plans or anything yet? >> we have not even had a dinner reservation yet. >> you having baby step >>> a man whose road rage beating went viral on highway 101 is speaking from his hospital bed. 15 bikers attacked him in the middle of traffic on wednesday. that driver is sharing his story as the chp continues to search for the people who put him in the hospital. abc 7 news reporter has more now from san francisco general. >> alex

said it fixed the vulnerabilities and flaws weeks ago in its operating system. apple encurrents users to download the latest version. >>> google's new and improved. nobody told me to expect it. intercourse that's painful due to menopausal changes. it's not likely to go away on its own. it took my most honest friend to help me do something about it. she told me premarin vaginal cream can help. it provides estrogens to help rebuild vaginal tissue and make intercourse more comfortable. premarin vaginal cream treats vaginal changes due to menopause and moderate-to-severe painful intercourse caused by these changes. don't use it if you've had unusual vaginal bleeding, breast or uterine cancer, blood clots, liver problems, stroke or heart attack, are allergic to any of its ingredients or think you're pregnant. side effects may include headache, pelvic pain, breast pain, vaginal bleeding and vaginitis. estrogens may increase your chances of getting cancer of the uterus, strokes, blood clots, or dementia so use it for the shortest time based on goals and risks. estrogens shou

is this the level to start at the apple position? prefer a swoon in the overall market to give you a better level. but amazon gave you a better level. all the analysts got scared, it turned out not to be that consequential. you have to listen to the company. lululemon, consequential. >> but it was samsung's weak product offering that may have benefitted apple to a certain extent. they're introducing a phone that's well reviewed represent any kind of a threat? >> that's what i'm saying. the press on the samsung phone is so positive. apple won't have the new phone out. a lot of the component makers for apple are moving up. what is thought to be a tremendous demand for the new phone but what i don't like, people are using the term super cycle. that's set up, that's like just -- you know what? we're going to call it a super cycle and when it's a cycle we'll downgrade. be careful of super cycle lingo. >> let's get back to energy. >> remember the coal super cycle in 2011? >> i do. >> peabody. there's a new peabody, great symbol. >> who can

when you think about back in the day when apple created the ultimate retail experience with no lineups, you know, that was thought to be innovative but amazon is taking it like five steps further. they're leaps and bounds ahead of anybody in retail and they're turning retail on its head completely by going from an e-commerce giant to creating this ultimate retail experience that no one will be able to touch. i'm sure they'll bring it out and i'm sure eventually it will come out but, yeah, there are some bugs when you think about it. walking in and picking up products, who knows how these things are being tracked. >> it's being reported the stores work well when it's fewer than 20 people in there then it gets trickier. is it a matter of time and can anybody else jump in and figure it out before they do? >> i don't think anybody can jump in and figure it out before amazon. these guys are working on mind-blowing stuff inside. amazon is innovating not just in retail and drone technology with shipping and logistics and even -- they're even interested in the augmented reality space as well s

vonnie: this is the european close on bloomberg markets. applesell its new ipad and the shiny new iphone 7, the move comes ahead of plans to announce a new iphone later in the year. they want to share more data with the developer immunity to boost revenue from services. bloomberg technology editor alison joins us with more. this is the headline out of all of today's news, the idea that the app store will get a revamp to help developers that might have been unhappy with the experience in the last go. reporter: this is all about services business. they have become the star of that business. , its gadgets are not selling like they used to. the iphone cells actually felt last year. fell lastctually year. there pushing the store as one of the main money generators, board equitable than hardware is generally speaking. what better way to get services business humming than to give some of these developers a lot more data about what they are actually doing, whether subscribing to new services, canceling, that type of thing, and developers have responded.