his ideas into the democratic platform, but what impact will that have on the economy? former white house economic adviser laura tyson who served under bill clinton will join us coming up. and one thing both the republicans and democrats seem to agree on this election is breaking up the big banks and bringing back that gla glass/steagall law. we have somebody who says glass/steagall is not to blame for the financial crisis. let's start with apple's big reveal on earnings coming up in about an hour, hour and a half. josh lipton is joining us now. what is the street looking for, josh? >> bill, let's just start with estimates for the bottom and the top. so analysts are going to be looking for eps of $1.38 on revenue of $42.1 billion. now, that would represent drops of 25% and 15% respectively. analysts think apple sold 40 million iphones in the quarter. that would be a decline of 17% as that company deals with just tough comps and fans, of course, waiting for that new iphone 7. beyond those basics, investors want to focus on any commentary we can get about how that new iphone se is performing. is it boosting demand in emerging markets and what kind of impact is it having on profitability. investors paying closer attention to apple services as the hardware business comes under pressure. that includes revenue from the app store, apple music and apple way. gene munster tells me he's looking for services revenue of $5.9 billion. that would be an 18% jump. also watching closely for the q4 revenue guide. usually apple introduces that new phone in september. includes a couple weeks of sales in q4. what kind of tone does tim cook want to set today for q nps4. analysts predicting revenue of $45.9 billion. back to you. >> thanks very much. josh lipton, we'll be checking back with you when earnings come out. >> tough to find an apple bull on wall street. >> all the price target is still $120. there hasn't been total capitulation either. >> let's get to the "the closing bell" exchange. susan fulton is back with us. jonathan kor pena is at post 9, and rick santelli checks in with chicago. john, i had the crew build a three-week start of the s&p because i look looking back at the brexit low and that incredible snap back we had following that, but since then we've just been in cruising altitude here with very narrow ranges and we're at it again today with the dow just down 45. the s&p down a point and a half. what's going on here? what's the mentality of the market here do you think? >> well, we're in this wait and see mentality right now, and you're right. if you look at the charts, we've consolidated a very tight band here at the top of the markets. we had a breakout. i think if you look at the levels, we broke out at 2120 level which is my next level on the downside if we're going to have a significant move but it's been very quiet at the top. i think investors are waiting for that next catalyst, and go back three, four weeks ago, besides brexit, it was this fomc comments, meetings we're going to get tomorrow. i think that has been the date on the calendar investors have been waiting for. as we discussed before in the past, every day we get closer to the presidential election, and that being said, it makes it harder and harder for the fed to make a move when, in fact, they should make a move. i think investors are really going to try to see what comments we get out of the fed tomorrow if, in fact, they think they can pull the trigger on something before november. >> for now though, susan, you have a couple places you think are still good invests these days, right? >> yes. we have a couple places, and we think the market is very fine and we don't think the fudd shoufed should make a move up. we like next era because it pays a decent dividend, 2.7% dividend and has growth prospects. we like chicago mercantile exchange. basically it makes its money anytime we sillies decide to buy or sell and we do that all the time because we're -- we think that we can figure it out, and it also pays a bonus dividend at the end of the year. so it pays about at least historically a 5% dividend annually. and then we like fortive a spin out from danaher. it has money in the bank to buy stuff. >> rick, you weren't in yesterday but we were talking about the lousy two-year note action and today we had a pretty tepid five-year note action. i thought the world couldn't wait to get its hands on these high-yielding treasury securities. where did the demand go? >> well, i think there's actually a couple of interesting reasons, but i'll give you one, and i'm sure at some point the fed could use this if they need another crutch. libor, swaps, commercial paper. we've seen some rather dramatic increases. right now three-month libor at 75 basis points. is it -- the highest level in 7.25 years, the spring of '09. let's get some balance. the high water mark was almost 6%. it's at 75 basis points. but it was at 35 not that long ago. so to answer your question, i think maybe partially brexit, partially money market reform coming to a bank or institution near you in the fall is probably creating some of these anxieties, and i do think that's something we need to pay attention to. markets have a very funny way of doing things early. now, i'm not saying this is a disastrous situation and it needs to be addressed but when you have trillions of dollars that are going to be orphans and need to be moved, things can happen. so i would think part of that also is the auction issue and maybe, you know, some people on the force of the data has been better, maybe the fed has to tighten. i think there's a litany of excuses why they've gotten us to mars and they want us to now stay there and grow our own portfolio food. i just don't think any -- i agree with our guests, and it really pains me to say it. gist don't see them making a move anytime soon. >> speaking of multiyear highs, jonathan, how about the housing data this morning on new home sales going back i think to the highest level we've seen since '08, at least for the quarter. >> it was an eight-year high, and clearly that just supports all the other economic data that we've been getting all along that is showing our economy is getting better slowly over a longer period of time, and this data -- the fed has said they are data dependent. they've gotten their data. they've seen what they need, so now it's time for them to really open up the books, brush everything off, and make that decision. >> and the decision go to be to have no rate increase. >> for how long? for how long, susan? you're one of those, you're going for the dividend plays right now. you're looking for yield. what happens to those plays when the fed does start raising rates? >> i am so old that i remember when mortgage rates and interest rates were 3% for two decades, and we had a very robust economy. now, i'm not saying that that's where we are now, but what i am saying is everybody is looking in their rear-view mirror and their rear-view mirror doesn't go back far enough. >> where is the street these days on the next rate hike, rick? >> you know, nobody is looking for it, but everybody is a little bit nervous they could be surprised, which is part of the game that goes on, the little kabuki dance. but i would say if you polled the traders on this floor, they would have stronger feelings about the white sox playing the cubs than any type of tightening in the imminent future. >> jonathan, you talk about what the next catalyst might be. what do you think that is right now? what's going to pull us out of this very narrow range that we're in right now? clearly nobody is expecting the fed to do anything tomorrow. so what comes next here do you think? >> i hate to say it, we are in this summer lull right now. we are clearly focusing on the earnings reports, but i don't think that's really going to move the market, and we keep getting closer and closer to this presidential election. so i think on a macro sense, it is going to be the election is what investors are going to start basing their future investments on. >> we should look at texas instruments too. they reported earnings yesterday. but in terms of a bellwether for the economy, susan, look, the shares were up nearly 7% the last time i looked, and they'd already done pretty well. >> we're having very good earnings reports, and all of our numbers are not showing an overheated market. what we have is low interest rates. we don't have -- we don't have a bear market. you know, everybody wants them all to line up together. we don't have a bear market. we have a bull market, and it's not over inflated, and they're not going to raise interest rates until after the election. >> even after the yield play -- even after the gains we saw in yield plays like the stocks you like, you don't think those are overheated at this point? >> no, not according to our numbers. >> texas instruments up nearly 9% while the philadelphia semis up 3.5%. >> earnings reports have been just excellent. this week has been just sterling for us. >> don't jinx it, susan. we have a couple big ones after the bell today. >> i know. >> wait for apple. >> and some will be up, and some will be down, but the reality is the economy seems to have turned. it just has not turned into an inflationary economy. >> sky is not falling after all. >> or a growth economy. we don't need that either, i guess. >> well, we may not. we may not get it anyway. >> no, no. >> all right. thank you. always love having the conversations like this. see you later. >> 50 minutes to go here. earlier this morning the dow was down about 100 points -- >> 105. >> and art cashin was saying people are kind of looking foorn around, what's the reason? trading volumes are lighter. >> wasn't oil this time. >> so we've come back a little bit. dow is down 41 points. s&p is only down 1 and the nasdaq is up 10. meantime, feeling the heat. mcdonald's falters on disappointing sales growth in its earnings report. we'll take a closer look at the multiple pressures facing the golden arches and the fast food industry. up next, another day much protections in philadelphia as the democratic national convention rolls through day two. we'll take you there live and discuss the impact bernie sanders' economic agenda is having on hillary clinton's. plus laura tyson joins us to talk about bernie sanders and hillary clinton's economic platform. you're watching cnbc, first in business worldwide. can an established bank move like a start-up? it's a question we get from some of our largest banking clients. the face of their business was tellers. then atm's. today it's their mobile app running on the ibm cloud. across every transaction, the hybrid cloud helps their data move quickly and securely. our clients are building out features and pushing updates faster, on five continents. with the ibm cloud, they can move at the speed of any start-up. you' with the 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reporting earnings matching street estimates. again, those shares are lower today. >> i wonder if they'll have the wooden soldier standing outside the store? >> they should have the piano you can jump on the keys and athleisure. here are some other movers. mobileye tumbling. they said its work with the electric automaker would not extend beyond the current processor which assisted tesla's autonomous technology. safety regulators are investigating that fatal accident involving a tesla model s using the mobileye system. the national transportation safety board said that car was traveling at 74 miles per hour in a 65-mile-per-hour zone. meanwhile, gilead science is also lower with the biotech company reporting an earnings beat but revenue fell short of street forecasts. gilead citing slower than expected sales of its hepatitis c drug. >> another day and another day of protests on the streets of philadelphia. our eamon javers is in the middle of all the action at the dnc. eamon? >> reporter: hi, kelly. they just finished up about a two-hour bernie or bust protest outside of city hall in downtown philadelphia. a lot of really tough anti-hillary clinton rhetoric out here. we had a couple protesters out here on the stage speaking talking about hillary clinton saying that ultimately hillary clinton was worse than donald trump. they called trump vulgar but they said hillary clinton is actually dangerous, and they also said about hillary clinton that she was complicity in bill clinton's presidency. a long denunciation of the presidency of bill clinton including the enactment of nafta but also welfare reform. bill clinton's crime bill. all of those very unpopular with the crowd here at the bernie or bust protest. they just wrapped up and a lot of these protesters are making their way down in this direction over toward the wells fargo center. they're getting on subways, on buses, they're going to make their voices heard at the wells fargo center where the democratic national convention is being held right now. a lot of these folks want to see some movement on the store against hillary clinton. not clear that's going to be possible. also, what is pretty clear here, kelly, is that the crowd today is much smaller than the crowd that we saw yesterday. it seems that michelle obama's appeal, bernie sanders' appeal last night did have some effect in tamping down the crowd size. we'll see how that plays out throughout the week. we'll check out an encampment they're calling bernstock. we'll see how things are going over there and report back to you. >> as you probably know, eamon, former governor ed rendell says he feels 90 percent-plus of the bernie sanders supporters will vote for hillary when all is said and done. you wonder if this is just a vocal small minority at this point that is doing this or if there's a bigger group than we anticipated. >> reporter: yeah. this is the hard core of the hard core, bill, who are out here. the guys who are protesting out here really don't like hillary clinton. a lot of them telling me they think they'll vote for stein, the green party candidate, the libertarians, they will vote for pretty much anybody but hillary clinton at this point. this group is probably lost to the democratic party, but the question is how big is this group actually in terms of national politics? the answer to that is probably not significant, but we'll have to wait and see how it plays out. feels much smaller today than it did yesterday. that's for sure. >> all right. maybe it's starting to bern out. okay, i did it. >> reporter: better to do that than to fade away. >> thank you, eamon. amid big cheers, bernie sanders addressed the crowd last night at the democratic convention putting in focus the economy and that call for a higher minimum wage. >> hillary clinton understands that if someone in this country works 40 hours a week, that person should not be living in poverty. she understands that we must raise the minimum wage to a living wage. and she is determined to create millions of new jobs by rebuilding our crumbling infrastructure, our roads, bridges, water systems, and waste water plants. >> for more on how the sanders' movement is impacting hillary clinton's economic agenda, let's bring in former chair of the council of economic advise ers r president bill clinton laura tyson joining us from philadelphia. >> welcome back. >> hi, thank you. >> the journal the other day said this is bernie sanders party and hillary clinton is just living in it. is that true? >> i think that's absolutely not true. i think this is a party that is united around a very progressive agenda. the agenda is what america needs right now. it needs a higher minimum wage. it needs a major investment in our infrastructure. it needs help for american families with education and child care. that is what the party is about. that is what the platform is about. that is what hillary was always been about. that is what bernie sanders has been about. i see unity, and i see a progressive platform. >> so you don't agree with those who were saying last night that what he was doing with his speech was essentially hitching hillary to his economic agenda wagon by saying she agrees with all those things he's been talking about for months now. >> but i think if you go back, you will see that the agreement on all of the issues that i just mentioned has been there all along. that is, this is a hillary clinton and bernie sanders have the been for a significant increase in the minimum wage. they've been for a massive investment in infrastructure, which we desperately need. they've been for helping american families with education, from early childhood education child care all the way up through college education. so i really do see consistency. i really do see unity, and i think sometimes like that quote from the quau"the wall street j is to make division where there is no division. >> division seems to exist between bill clinton's democratic party and his wife's today. you know, the different opinions on trade from then versus now, on mass incarceration then versus now. you know, nafta was signed then. you know, it's not featuring prominently now except in a negative sense. so undeniably -- i mean, bill clinton declared that the era of big government is over, and it seems now with hillary clinton that she's saying the era of big government is back. >> so that's -- the argument about trade i think it's important to note again that hillary clinton has been very clear for more than a decade about the need to renegotiate nafta. she's also been as clear as one can possibly be about the conditions for her to find a trade agreement acceptable. they are to create a american jobs, to raise wages, and to enhance our national security. she looked at tpp. she looked at it and she said, you know what? this doesn't meet my standards. so i think in terms of trade, again, i see consistency from hillary clinton, and i think that we will move forward to look at our trade agreements through the prism of those three issues, does it create jobs for americans? does it raise wages for americans? is it in our national security interests? and hillary has been clear on that. >> but come on, it's got to be awkward. i mean, nafta was put together by her husband. president obama says there's nothing wrong with nafta right now. he's pleased with what's going on between canada and mexico and the united states. so what needs to be changed right now according to hillary and bernie sanders? >> so basically i want to start out by saying that i was there during the clinton administration's work on nafta. that i thought at the time that nafta was a good deal. that nafta -- i want to emphasize here something very important that's missed a lot, that nafta was also for the benefit of helping mexico develop, and that has been important for mexico. it's been important in terms of having a more robust trading partner, developmentally strong trading partner, a trading partner where actually you don't have as much pressure on immigration, but i think that, again, it was bill clinton that said we have to have nafta plus, and if you look at the trade agreement since then, we've been putting in tougher and tougher labor standards, tougher and tougher environmental standards, and we have to look again at nafta in terms of those tougher standards. >> thank you, laura, for joining us there in the middle of all that's going down. >> yes. hope you can hear us. >> thank you very much. it's a pleasure. >> laura tyson from philadelphia. 35 minutes left to go in the trading session. the dow is still in negative territory. the transports on the dow are up 72 points and the nasdaq is up about 7. >> we could go positive here? >> by some measures we have. >> both republicans and democrats are calling to reinstate the glass/steagall act which separated commercial and investment banking activities. we're going to talk with a leading banking specialist about why bringing it back may not be a great idea. >> then after the bell another storm of earnings is heading our way. $1,000 megawatt per hour for electricity yesterday in the city. >> surge pricing. we begin with seema mody. >> we want to point your attention to shares of apple. it just broke below its 50-day moving average of $97.02. the first time to break below this technical level since july 7th. it's trading at the lows of the session and on track for its fourth consecutive negative session. of course, this all coming ahead of apple's earnings report which will hit the tape after the bell where expectations are for earnings of $1.38, revenue of $42.09 billion. we'll see what the tech giant has to report, kelly. >> thank you, seema. >> let's look at the dow heat map. all 30 stocks inside the industrial average. a lot of components of the dow reported earnings today, and with this market down just 31 points right now, you only -- fewer than half the components are higher today, but you do have caterpillar, united tech, and dupont among the leaders today after they reported better than expected results this morning. >> the worst performer, mcdonald's, which is the big loser today on the back of disappointing sales growth. susan lee has a closer look at what's got the golden averages down. >> kelly, first of all, the entire restaurant industry is in a slump. sales have been flattening and it looks like mcdonald's is not immune to this. we saw same-store sales. that's the reason we're looking at the price decline right now in the share price coming in u.s. same-store sales at half the rate analysts had forecast. global sales also disappointed. steve easterbrook, mcdonald's ceo, addressed this on the company conference call. >> when people are uncertain, when families are uncertain, caution starts to prevail and they start to hold back on spend. >> they are holding back on spend despite the fact that they have all-day breakfast. maybe it's not the big winner it used to be. there's some plateauing. also the mc pick 2 menu may not be doing as well. internationally on the conference call i should point out there are some bright spots for the golden arches. that includes china. steve easterbrook pointed out the chinese performance was positive and that's driving up margins globally as well. on brexit, mcdonald's says the most significant impact they see from the brexit vote is going to be into currency translation which they have already guided that it will negatively impact next quarter's eps for 2 to 4 cents. that might come into 9 to 11 cents in eps. still though, you know, mcdonald's is still returning a whole lot of cash that shareholders in its final year of a $30 billion return to its shareholders, and they highlighted that they bought back $3.4 billion worth of stock in the second quarter and this one is for kelly in terms of pokemon go, they're looking at all opportunities that might be coming here to the u.s. in the future. >> they better act fast before that whole thing goes away. >> if i were just looking at a chart of mcdonald's, we were looking at it just then, i would wonder where is the slump. that stock going into today was up 31% in that time. it's down 4% today, and this year-to-date it was up 8% which outperformed the s&p. so i'm just wondering, it's probably due for a correction of some kind at this point. >> that's a good point. we did see bottom at the end of june and we rallied 10% since then just in the past month, but don't forget, we're coming off two years, two years of comp sales really being down, so, you know, this is snil ttill in thet of it's turnaround. >> thanks, susan. let's get to a news update with sue. here is what's happening this hour, everybody. egypt announcing it is negotiating a three-year loan program with the international monetary fund and is seeking to secure $7 billion a year in financing over three years. the statement was the first official confirmation that talks with the imf were actually under way. the united nations special enjoy for syria says he aims to call a new round of talks between government and opposition envoys in geneva towards the end of august. he says that he wants to see the outcome of an agreement between the u.s. and russia before setting a precise date. hundreds of senate cafeteria workers and others in the capitol and nearby office buildings will get back pay totally more than $1 million because their private employers illegally underpaid them. that is according to the labor department. 675 workers will divide that money. and the nfl and its players association have agreed on new concussion rules to protect players. they agreed on a process to investigate the way concussions are handled and determine appropriate discipline if it is done incorrectly. just in time for the football season to start this fall. >> are you ready for some football? >> i am always ready for some football. >> i know you are. big fan. >> always. >> what's your team, sue? >> the packers. >> the green bay packers. she's a cheese head. >> one day i will bring in the cheese head. i actually have one. >> i'm surprised you don't have more than one. >> you only need one cheese head, bill. >> see you later. >> see you later. we're into the last half hour of trading here with the dow down 32 points. was down 105 at one point, so we're well off the lows. a leading trader will tell us what he's watching in the close. >> later, it will be all about apple. we'll deliver the numbers as soon as they hit the tape and break up this down with our team of analysts. stay tuned for that. the heirloom tomato. intensely-flavored. colorfully-diverse. beautifully-misshapen. cultivated for generations, it's the unexpected hero of any dish. when you cook with incredible ingredients... you make incredible meals. fresh ingredients. step-by-step-recipes. we're into the last half break up this down with our team get $30 off your first delivery blueapron.com/cook. welcome back. about 30 minutes -- 25 left to go in the session here. i'm on the floor with steve grasso. what are you watching today? >> for me i think it's interesting when you look at the bank of japan and the stimulus whether or not they're going to do more, how much more they're going to do, and then with our fed, and then, of course, with all the microdata with home sales, with retail stocks doing well. it's a little bit of everything today, but especially you see the way the commodity space has been moving. go ahead, i'm sorry to cut you off. i'm glad you brought up the issues in japan because we saw the yen go from like 107 to now below 104 again. >> right. >> again, bring this back home. why does this keep moving our markets around? >> it's playing around with our dollar and the dollar could be -- the strength of the dollar could be a headwind to multinational companies, but also with the commodity space as well. we've seen that correlation with oil and the dollar been on and off again. so it's very hard to trade, but right now oil weakness is perceived as market weakness, but the market is really not going anywhere. >> and at the same time iron ore has been moving higher. the industrials are looking okay. so are you watching that space too? >> that's related to china for me. china back in february raised their fiscal deficit to gdp ratio, and normally runs at about 2% to 3%. so they said maybe 3% to 4%, and now they're at 4% to 5%. steel letter x ran 185% on a stock basis coming out of that g-20 meeting. i think that's really important. >> that's definitely a space to watch. thank you. >> speaking of the fed, the results of the cnbc new fed survey of top economists and money managers is out, and it looks like donald trump is gaining ground on hillary clinton as the candidate most likely to win the race for the white house according to wall street. steve liesman has detailed. >> thanks very much. hillary clinton is certainly losing a lot of ground. let's take a look at what the numbers are. 43 economists and money managers polled here. first we asked this question. what's best for the economy? if a democrat wins or a republican wins or it doesn't matter, you can see compared to june a little bit of strength for a democrat winning. a lot more strength for a republican win and people are making up their minds and i think that goes for the electorate as well. obviously this is not a scientific public opinion poll but it goes along with what we're seeing in the polls. those who say it doesn't matter and they don't, that's come down quite a bit. also the situation with what effect does it have on the economy. i don't know if we have that box here but perhaps we do. 60% say of that is negative for the economy. now the big news here. in the june poll 80% of our respondents thought that clinton was most likely to win. now it's just 52%. a bump here for trump, 26% now saying he's most likely to win and 21% don't know or they're unsure. again, not a scientific poll but it mirrors what's going on. how about who is best for the economy and the stock market? when we ask individual candidates, you can see here trump has gained some ground. hillary clinton still in the lead, 38% say that clinton would be best for the stogck market. trump has gone from 25% to 31% and a reduction in those who don't know. trump leads on having the best policies for the economy, 44%. you know, i don't know if that's a big number or a small number, bill. i would tend to think this group skews republican so maybe that's a big number that clinton even has that much support given this particular group. >> agreed. steve, thanks very much. good stuff. steve liesman with this new fed survey. we have breaking news on analog devices right now. seema mody, what's the latest? >> big, analog devices announcing the acquisition of lanier technologies. the combined enterprise at $30 billion. upon the completion of this acquisition analog devices says it sees approximately $5 billion in anticipated annual revenues. just reading through the report here, the transaction values lanier technology at $60 per share. lanier technology and analog devices shares are halted on this pending news while we wait to see where they reopen, but keep in mind reports of this deal had sent shares of both semiconductor companies higher. lanier higher than 20%. analog devices higher by 3.8%. >> good day for the semiconductors. >> linear above that offer price. we'll see what it does when they reopen. dow still down 20 points but it keeps creeping higher. the s&p is now positive although by less than a point. and the nasdaq up 11. apple earnings are due up within the hour and expectations aren't that high. we'll have numbers and instant analysis for you. meantime, it was president bill clinton who ushered in the 1999 repeal of the glass/steagall act which prohibited commercial banks from the investment business, but now the democratic platform is looking to reinstate glass/steagall as hillary clinton prepares to take the democratic presidential nomination tonight. oh, and the gop's donald trump wants it back also. would it happen? can it happen? one of america's top banking experts will tell us what he feels about all that when we come back. it's here, but it's going by fast. the opportunity of the year is back: the mercedes-benz summer event. get to your dealer today for incredible once-a-season offers, and start firing up those grilles. lease the c300 for $379 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. 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[ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now - and down the road. i have a lifetime of experience. so i know how important that is. at the democratic convention last night it was no surprise that both senators bernie sanders and elizabeth warren took special aim at the big banks. listen. >> we don't need weaker rules on wall street. we need stronger rules, and when big banks get too risky, break them up. hillary will fight to hold big banks accountable, and we're with her. >> the democratic party now calls for breaking up the major financial institutions on wall street. and the passage of a 21st century glass/steagall act. >> quick history lesson on glass ste galg. it's the 1930s law mandating the separation of investment banking funds and commercial banking funds. there was no commingling allowed. tfers pa it was partly repealed in 1999 and some blame that for the financial crisis that occurred in 2007 and '08 and the democrats have put reinstating a 21st century glass/steagall in their platform, and remarkably so too had the republicans. >> which was the big news last week. joining us now is rodgin cohen. thank you for joining us. >> great to be here. >> you have done many bank deals. well known on wall street and you think breaking up the banks is a terrible idea or are you just saying the repeal of the repeal of the glass/steagall -- where are we even? is a bad idea? >> i think just automatically saying break up big banks is a bad idea. you need to have a reason for it and a plan if you do, but on glass/steagall, you started correctly i think. you uniquely have figured out that there was a myth about all this. glass/steagall was not repealed. there were two key provisions of glass/steagall. one prohibits the banks themselves from underwriting. that remained intact. it wasn't touched. the only part that was changed was the less important provision which had at that point permitting affiliates to engage in a limited degree of underwriting, and in 1999 those limitations were removed. >> and let me ask it this way then. you say it didn't cause the financial crisis. did it facilitate it? if there had been no partial repeal as it happened, would we have had the kind of financial crisis that we experienced in 2007 and '08? >> again, i think it's important to look at the facts. there is not a single major failure that occurred because of the limited repeal of glass/steagall. aig had nothing to do with it. lehman had nothing to do with it. bear had nothing to do with it. the gses, the reserve fund, and on and on and on. so to attribute the financial crisis to this limited amendment of glass/steagall, there's just not a correlation. >> what about citigroup? >> citigroup actually the problems were in the bank itself and not in the affiliate, and as i mentioned, that element of glass/steagall remained intact. so it was nothing. and i think what's perhaps most indicative here is that the very first senator who called for actual repeal of glass/steagall was senator glass himself. two years after the bill was enacted, he said this is creating havoc for american industry trying to underwrite and tried to get his own bill repealed. >> i want to go back to this though. collateralized debt obligations played a huge role in the financial crisis. would banks have been able to be involved in those to such a degree as they were if there had been no repeal, the partial repeal as you put it of glass/steagall? >> yes, because the so-called cdos were able -- were eligible for the banks. now maybe there should have been a reconsideration of whether cdos were, quote, securities of the type which banks should not have been permitted to underwrite and make markets in, but it was not what happened in 1999 that had anything to do with it. >> so now that both the republican and democratic platforms call for a reinstatement i guess -- >> the 21st century version. >> the 21st century version of it, but more simply a breakup of the big banks. you know, undeniably that's what i guess the public across the parties seems to want. what impact would that have? >> well, in my view you would be chartering a very different course. you would be chartering a course where you are for artificial reasons eliminating the institutions which helped fuel the american economy. >> good to see you. thanks for stopping by. >> my pleasure. >> hope you get back and it's dry for you. >> i hope so too. tesla's giga factory is ready to ramp up production and phil lebeau is getting a rare look inside that massive facility near reno, nevada. phil, tell us about it. show us. >> reporter: bill, this is tesla's giga factory. this is just one section they've taken us into so far. this tour has just begun. 1.9 million square feet have been built out of this facility. that's only 14% of the total manufacturing footprint, and this facility you see here, this is where they're building battery packs for the power wall. it's actually three floors. so there's another floor duplicating this that's above us and another floor on top of that. we're going to be on this tour here for the next 45 minutes or so, and then we will be hearing from elon musk later on not only about where the giga factory is right now but also where the company is in terms of driving down the costs for the electric batteries that go into their vehicles. guys, back to you. >> i think i'd blend right in. but, phil, we're told that the walls of this facility are temporary and it's only a quarter or a traction of the size it's ultimately going to be. do you see that reflected as you look around? >> reporter: well, the word temporary you need to take that with a grain of salt. it doesn't mean they're flimsy and you can see outside. this can be expanded and will be expanded with time, and we're going to see that as we walk through the facility over the next 45 minutes. >> a lot of interest in that gigafactory. we look forward to more of that tour you get there. thanks very much, phil. see you later. >> cool stuff. our next guest says biotech is the sector you should be watching and he'll explain why when we come right back. your business needs better technology to drive better performance. so you need it to be reliable and fast. really fast. introducing the comcast business summer savings event. fast internet speed to drive performance, plus cutting edge wifi for your employees and customers, and voice mobility so your calls find you wherever you are. get some of our most advanced products at a great price with over $500 in savings. call today and ask how to get these savings plus a $250 prepaid card. comcast business. built for business. seven minutes left. i have to mention art cashin was telling me that the market on close orders -- same thing as yesterday, $600 million to buy. we'll see if it does anything. greg from hightower is here with us. we were talking earlier about the lack of volatility here in the last week and a half or so. you expect it to come back here. what do you think the catalyst would be? >> i think investors can't be lulled into a false sense of security here, bill and kelly. you've had a couple really strong weeks, but the period of august to october has historically been a challenging time period and we have some wind in the face of the market with the election coming and also i think people are underestimating what the fed could do. some things to be careful about. >> underestimating? >> underestimating. look at the data points. hawesing numbe haw housing numbers have been strong, consumer numbers have been strong. >> do you think they could raise rates in september? ju >> unlikely in september but i think we have to be careful what the verbiage and tone is coming out of the meetings. >> any specific things you like right now? >> right now we do like the biotech sector. it's down 15% year-to-date. the m&a activity z-- >> and gilead did not i am press with earnings today. >> that's correct. big pharmacy with lots of cash right now. looking to redeploy that. m&a activity have been strong this year. we think that the biotech space represents a good value right now. >> anything less risky you like here? >> as boring as it sounds, laddered munis. for investors in a high tax bracket, the return is far superior to taxable bonds. >> even at these super low rates. >> correct. >> thank you so much. >> thanks. we'll take a break, come back with the dow down 31 points. the closing countdown in just a moment. >> after the closing countdown and the closing bell, it's time for apple's earnings. the iphone 6 and 6x plus have failed to replicate the success of the iphone 6. it's expected to impact the company's earnings. we'll have a top notch panel. you're watching cnbc, first in business worldwide. when a moment turns romantic why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. ask your doctor about cialis and a $200 savings card. ♪ using 60,000 points from my chase ink card i bought all the fruit... veggies... and herbs needed to create a pop-up pick-your-own juice bar in the middle of the city, so now everyone knows... we have some of the freshest juice in town. see what the power of points can do for your business. learn more at chase.com/ink announcer: are your children in the right car seat for their age and size? it may be too late to check when you're on the road. [blaring car horn and skidding] fortunately, you're on the couch. coming up on the two-minute mark and look at this. as we head to the close, bob pisani joining me for the closing countdown. the s&p turning positive as we head to the close. i want to show that three-week chart. it includes the brexit low, the comeback, and the sideways action we've seen since that time, but here it is after a lower -- virtually it's entire day being down, now positive as we go to the close and those big earnings reports coming out after the top of the hour including that one from apple that everybody is keeping an eye on right now. >> the important thing is we're five points from a historic high on the s&p. we've been in that very, very narrow trading range and about earnings today, put up whoat happened today. caterpillar, united technologies, they all beat and none of them lowered guidance and that's what everybody is caring about at this point and that's why those stocks ever all trading up. 3m also beat. they didn't lower guidance either. their revenue guidance was just a little bit below expectation. that stock is trading down a little bit, but by and large this whole gain second half of the year, there was concern people would try to lower it on slower china, brexit ate my homework and so far none of this is happening. that's why the market is holding up. >> let's not forget for every caterpillar there's a mcdonald's as well which was down 4.5%. gilead did not do well had its report as well. >> we're not getting dramatic move in terms of earnings changing the dial. we're still down 3% for the second quarter. still slightly positive for the third quarter. by the way, i want to see united technologies after the bell. that stock is set a new high as well. >> all right. thanks, bob. see you later. so we finish positive for the s&p today after opening lower. the dow down 20 points on the close. breakthrough 2016 is ringing the closing bell. over at the nasdaq it's aclaris therapeutics. coming up on the second hour of "the closing bell." >> welcome to "the closing bell." i'm kelly evans. stocks couldn't quite turn positive at least for the dow, down 19 points. continuing a spring of e ing in after nine straight increases. the biggest decliner was mcdonald's last check. look at the s&p 500, the broad index might have stayed positive on the bell by less than a point. about 2169 for its closing level. and the nasdaq was the outperformer up a quarter percent or 12 points to 5110. pretty much on the nose, and the semiconductors today, maybe it was texas instruments being up on earnings, the big deal we just saw done in that space. again, the nasdaq having a pretty nice session. investors are set for another huge wave of earnings. julia boorstin is standing by for twitter. susan lee is watching for pan a panera. seema mody is watching buffalo wild wings. we'll see new a moment. joining today's panel, cnbc's senior markets commentator mike santoli along with our own jon fortt and for more on today's market action, "fast money" trader guy adami. welcome, everybody. it's going to be a fun afternoon. we apologize in advance for breaking in and out of the conversation, but what about this market, first of all, mike? >> the market is rested up if it's going to be action after the hours. pretty much a flat day. for two weeks it's been a controlled sideways narrow range. a lot of people talking about that both in the major indexes and in treasury yields. if there was something below the surface it was the mcdonald's sell-off. mcdonald's down more than 4%. that's pretty much a year and a half worth of dividend yield that you lost today if you own mcdonald's just for the dividend. i don't think that's necessarily the start of a big trend but it's something going on below the surface and i think the overall market was able to hang in there better because oil also calmed down. >> stifel nicolaus came out and downgraded the whole space. said his channel checks indicated a restaurant recession in 2016. are you not eating out anymore? >> i'm eating out plenty. you can't blame me. apparently some larger tech companies are eating plenty as well. i'm sure we'll talk about that, but it's easy to forget the forest for the trees sometimes. we've had verizon, yahoo!, we've had microsoft, linkedin, across different types of tech there's lots of eating going on here. >> i think that deal today, rich peterson was saying second biggest tech deal year-to-date and volume down 20% on the year. guy, what about you? what's popping in your world? >> mcdonald's was interesting. u.s. korcomps were pretty lousy. caterpillar is making a 52-week high. they lowered full-year guidance. i think this is the third time, i might be mistaken, but i think this is the third time they've lowered this year's full year guidance, and their commentary for 2017 was not exactly -- they didn't paint the rosiest of pictures but it doesn't matter because the stock market wants to go higher right now. that's the overriding thing. it's like that book that was written years ago, do you want to be right or do you want to make money? that's really what it comes down to. i could wax poetic about the reasons why the market is expensive but here we're grinding higher each day. i thought the caterpillar earnings speaks volumes as to the type of market we're in. the fact oil continues lower. at some point that's a story. but at $44 it's not a story yet. >> morgan stanley saying what if oil goes back to the 30s? that might be a different reaction then. let's get to this apple news though. it's not earnings. there's something else going on. sue herherera, what's going on? >> apple music has just become the exclusive home to a new car pool karaoke series that's going to be produced by cbs television. they have not announced the host yet. and the premiere date. 16 episodes. each week a new episode will be released to apple subscribers, apple music subscribers in 100 countries. there is the first lady. she did a fantastic job. it's been a big hit, of course, and now apple music is going to have an exclusive agreement with them. no price tag yet. we're waiting for that. back to you. >> thank you. >> a surprise bidder that apple would be the one to get this asset. >> lots of rumors about apple bidding on content and this original content game. i don't know if this exactly qualifies as original content because we've seen car pool karaoke as a brand. interesting to see if james corden comes along with this in some way, but it does show that lots of the big players in tech are actually ponying up cash for content. we saw it from facebook. we've seen it from twitter a lot when it comes to sports, and now apple with this mixture of comedy and music. >> and, you know, the idea of putting content and distribution together -- >> it sounds family. >> i don't know if it's going to really -- to jon's point get anybody thinking that apple is really thinking three steps ahead. this is already a pretty buzz why you of the moment brand and they're just kind of grabbing it. one thing apple has is the money to spend. >> we were talking about fast food. i shouldn't fall it fast food. it's panera. it's fast casual. susan has the numbers. >> we have a beat for panera bread on both the revenue and the eps side adjusted for the quarter coming in at $1.78 and that beats analyst estimates. that's a gain of close to 10% from a year ago. revenues also came in higher as well, $699 million for the quarter. that beats analysts' estimates and just last quarter they raise their eps guidance for first time in three years. doing it again for full year 2016 but this morning giving a downgrade from stifel. however, we have rbc still putting a 20% i guess upside on the stock for the year. back to you. >> all right, susan. thank you. guy, what do you think about this stifel thesis there could be a restaurant recession in 2017? >> might be. i try to eat apples and grapefruit every day so i'm not your target audience. somebody wins, somebody loses in this space. it feels as if panera is doing everything right whereas chipotle is probably doing everything wrong. you don't want to beat them un, but they deserve being beat up because they really have never addressed the real fundamental problems that have been going on there for the last six months. mike will tell you panera is expensive. yes, it is at close to 28 times forward earnings but you know what? people seem to be going there not necessarily in droves but they seem to be tapping into something that people actually want right now as opposed to chipotle and some of the other places. >> you know what shocked me about panera, kelly, and to prove i have been going out -- >> the technology? >> yes. the mobile technology where you go to panera. maybe you order at the register. you can pay with your apple pay or your samsung pay. you go to your seat. you figure you want something else, your seat has a number. you can order from the app at your seat and they will bring it to you. >> so you can go in, sit down first, and basically get full service? >> you can. and if you got kids, that's a pretty nice arrangement. >> i mean, i do think that the call today about restaurant recession, it sounds very dramatic, but you did have this big uptick in traffic in casual dining coming into when they had gasoline prices go down, and this is what happens in the cycle. it's now in a very promotional cycle. it's about value, about very much the price point. it's not just about the menu, and i think that's what's happening in general. i don't think it has to be a macro economic call. >> it might also be about convenience. they are taking the amazon tact on the dining experience. if i have to go somewhere and i know it's going to be more convenient, more relaxed, i'll go to panera, i can order ahead, order when i'm there. i can do all kinds of ordering and it will be easier for me. i can even pay within my phone. >> it comes to you. that's what amazon does. we have an earnings alerts on buffalo wild wings. i don't know if they have this technology yet but how did they do? >> buffalo wild wings reporting earnings of $1.27. it's a 2 cent beat. the expectation was for $1.25. revenue for the company, $490 million. slightly below expectations but total revenue did increase 15% in the second quarter year-over-year. same-store sales disappointing, decreasing 2.1% at company-owned restaurants and 2.6% at franchised restaurants. we're looking at the stock down about 1% after hours. of course, this has been a company in focus this week after activist investor mercado capital disclosed a larger stake in the company. kelly? >> thank you. wow, so, guy, the street was looking for their same-store sales, their comps, to be up a little bit. instead, they were down about 2%. do you think the olympics and some of these events will help? >> they better help because if you look at this stock over the last year, it hasn't been -- you know, it's been rough sledding for buffalo wild wings for quite some time. you have had a bounce over the last couple weeks like everything else has boungsed, but they need some sort of catalyst to get people back in. those comps are not going to help. i'm trying to look at valuation. mike probably know better than me. >> mid-20s. >> mid-20s. and so you're at a place now where valuation will start to matter. so does it retrace the levels we last saw maybe four or five weeks ago? i don't think so, but with that valuation unless they start to beat on those metrics, they're going to punish this stock. >> and the press release they're saying no better place than buffalo wild wings to host your fantasy football draft party. >> a few weeks away from fantasy football draft parties. it's interesting that this has become really about a tv sports play. it's been growing into this valuation if you want to call it that for about three years. almost three years. it's really been going sideways in this volatile range and i think that's what happens with these growth concept stocks. >> we're waiting for twitter, by the way, jon. why is that so important? >> i don't know that it's so important from a broader perspective because twitter is smaller than instagram which is sort of facebook's sidecar but it's been interesting from a couple different directions. one is the monthly active user growth hasn't been there. two is there have been mixed messages on how twitter strategically views users two don't log in. logged ought use e eged out use. when i talked to jack dorsey most recently, he said, hey, look, we want growth in logged in users, we want growth in those engaged users. that's the most important metric. we want to see that grow on top of everything else. >> interesting you bring it up because some of the sports deals they have signed talk about how you don't need to be logged in to view that content which from the company's point of view i'm sure they'd remember you are but they're offering it to you regardless. >> which could be smart if you're a fan of a sport you're going to watch it more than once, you're going to engage, you're going to want too talk to other people who are also fans of that sport. it could serve as a gathering and engaging mechanism to get pe people who aren't logged in to log in and be a part of the crowds in the digital stands. and the suggestion to me is if they're investing more in these deals, the tests they've done is that yes it's creating that kind of engagement maybe for people who were on twitter for a while and got off or people who have never been on twitter. >> and we got a ton of results today already. tomorrow we get coke and more still on tap. >> i think it's like we've seen last couple years. i mean, it's a total mixed bag. i think the good news is companies that beat on eps and revenue are being rewarded and the companies that don't are being punished. i wish i could tell you that earnings have been great, but i don't think that's necessarily the adjective i'd use. again, i would say it's been a mishmash. for every dupont you're seeing a mcdonald's. i think that was the comment that was made before. so it's a mixed bag with no -- but with that said, that's good enough for the market to continue to grind higher here. >> i would say that exactly. basically it's kept the story intact that we're sort of troughing with earnings and we have growth -- a return to growth in the back half of the year. you're kind of beating at the typical rate you beat at. you're not necessarily having across the board themes. by the way, the stocks selling off like a mcdonald's, like some of the other ones, 3m, they're giving up about two weeks' worth of gains. just going back to where they were kind of before this latest run up. so it's not as if the stocks have gotten broken when they've missed numbers. >> not dramatic. apple was below its 50-day moving average but we're still waiting on those results and twitter's. guy, thanks for joining us. >> i'm looking forward to the show. we have sara eisen hosting. she hasn't been here for a while. it's going to be fun. >> coming up next hour, the earnings extravaganza will continue on "fast money." and then results on twitter and apple on tap. stay with us. hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. welcome back. twitter's earnings are out and julia has the numbers. >> kelly, that's right. twitter adding 1 million more monthly active users than wall street analysts had been expecting. the company ending the quarter with 313 million monthly active users. that unexpected growth coming from the u.s. where the company came in with a million more users than expected. now, in terms of revenue and eps, the revenue was light, $602 million. that's $5 million less than expected, but earnings per share better than expected for twitter. the company reporting 13 cents in earnings per share, 3 cents better than what wall street analysts anticipated and it's up from 7 cents in the year ago quarter. now, of course, for twitter it's all about those user numbers. i just spoke to twitter's cfo and coo about what's driving these results. anthony telling me that audience growth has stabilized and that this is the first quarter that they've been able to grow those monthly active users numbers and they say it is specifically because of the changes that they are making in terms of product. they say up until now that growth has slowed every year on -- every quarter on a year-over-year basis, and they are seeing that turnaround after a really rough year, and they say they're seeing an increase in retention and an increase in monthly active users and daily active users. i expect we'll hear more about the trends on the earnings call. they don't break out daily active users anymore but they're seeing an improvement in the daily active users and they think it's because of the product changes as well as changes to the time line and they also are going to be talking quite a bit on the quarterly earnings call about engagement in terms of user active minutes, tweet impressions, and the number of direct messages sent. they're not revealing any specific details but saying the trends are positive. i also spoke to adam bain who, of course, oversees the whole advertising business, and he said they are seeing a substantial shift to video in terms of where advertisers are spending their money but that those brands are not increasing the overall buts just yet. he did have some very bullish comments about what is ahead with the streaming nfl deal and said so far they're seeing very strong demand for those nfl packages. i'm sure that's going to be a hot topic on the upcoming earnings call. kelly? >> julia, thanks. let's bring in now michael graham for more on twitter's results. michael, what do you think -- the shares are down 10%. >> yeah. i think the company did a good job of delivering on the users situation. you know, they beat consensus user estimates, so that was really good. the revenue was a little bit light in the quarter, and they showed some good expense controls and profitability was dece decent. we're still trying to get our arms around the guidance. i think that might be the issue, you know, and i think it was sort of a mixed bag for twitter but certainly not as bad as the worst fears. >> jon? >> it's a little bit worse i think than it looks at first because ad revenue, which is really what you want to see growing, was $535 million. the street was looking for $540 million. data licensing revenue, that outperformed a little bit at $67 million versus the $64 million the street was looking for. if you're looking for the silver lining, they performed like a mature company. but if you're looking at the downside, the revenue that you want to be the strongest, the advertising revenue, that core revenue, was actually a little bit weaker than the overall top line number would suggest. >> what about that guide snens. >> and that guidance looks like another disappointment. they're basically saying 600 million for the next quarter in revenue give or take 10 million. it's well below what the published strepublish ed street estimates are. i think for some context, the stock was at 14 five or six weeks ago about the linkedin deal. it got this lift. it's returned back to $18 range. it's about below $20 all year. it seems like it lost a lot of bulls down to $14. got a few week and now i think it's kind of a cliff-hanger every quarter to see is the growth story still on track or not? you just can't trust that it is. >> this one again is tough because they give you a little bit of extra there in terms of monthly active users, but third quarter revenue they see 590 to 610 million. they just posted 602 million for this quarter and the street was looking for 681 million. what can cot fould account for big miss in terms of expectations? >> i think you have to go back to what we heard adam bain said earlier which is that, you know, they're seeing a shift towards video ads, and that's good, but they're not seeing increased budget. so advertisers love to see engagement, and i think that, you know, we're likely not seeing the engagement with the ads that the advertisers want to see. one thing i think the company may say on the earnings call is that there are some potentially good things that could happen. the rio olympics, the presidential election. those are usually boosts for the company. so i imagine that they'll come out and say their guidance they feel like doesn't include a big impact from those events and that could help the stock regain some of these after hours losses. >> but to repeat what he was saying, jon, are they not getting the budget from the advertising companies, the corporate giants who at this point are eager and we often here to give facebook some of their ad dollars. >> that's exactly right. we know facebook and google are the big dogs in this digital advertising race, and we fully expect that facebook's probably going to have a decent quarter. they're probably going to show more growth than twitter showed here. facebook talks about taking revenue from television and areas outside digital, not about overall stagnant revenue coming from advertisers. so twitter clearly trying to create some new fly wheel here with drawing in new users, reactivating old users with this streaming stuff. what they have been doing sea h certainly hasn't been working. >> if the they're not really confident enough to say that they are accelerating, then that's probably telling as well. >> those shares are down more than 10%. michael, we'll let you go. thank you for joining us. we're minutes away from apple's latest earnings report. instant reaction to the numbers plus hear from one analyst who says the stock looks cheap at its current valuation. stay tuned. it's time for the your business entrepreneur of the week. john grew up in his parents' grocery store, but with competition from the big chains, his grocery store could no longer compete so now they don't. now they focus on one thing only, soda. they sell over 750 kinds. for more watch "your business" sunday mornings at 7:30 on msnbc news. ♪ approaching medicare eligibility?msnbc. you may think you can put off checking out your medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans, they could help pay some of what medicare doesn't, saving you in out-of-pocket medical costs. you've learned that taking informed steps along the way really makes a difference later. that's what it means to go long™. call now and request this free decision guide. it's full of information on medicare and the range of aarp medicare supplement plans to choose from based on your needs and budget. all plans like these let you choose any doctor or hospital that accepts medicare patients, and there are no network restrictions. unitedhealthcare insurance company has over thirty years experience and the commitment to roll along with you, keeping you on course. so call now and discover how an aarp medicare supplement plan could go long™ for you. these are the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. remember, medicare doesn't cover everything. the rest is up to you. call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ final now for a news update with sue herera. >> here is what's happening. french president francois hollande vowed to win his country's war against terror after a priest's throat was slit in an attack in a normandy church. he said the threat of terrorism has never been greater in france or europe. three men arrested in a deadly nightclub shooting in orlando appeared in court today. they each made the case for bond. the three were arrested near the club after running from authorities. i love this story. remember that ice bucket challenge for als two summers ago? well, the $220 million it raised has led to an important break through in als research. scientists at the university of massachusetts medical school have discovered a new gene that's responsible for that disease. and roger federer says he will miss the rio olympics and the rest of the tennis season to protect his surgically repaired left knee. he says he needs more extensive rehabilitation after arthroscopic knee surgery in february. that's the update this hour. >> i knew it would be worthwhile to get soaked by ice by kevin o'leary. >> we should do it all again, raise more money, and win the battle. >> absolutely. thanks so much. apple earnings is due out any moment. we'll bring you instant reaction after this. was just a bottle. that no one would ever notice me. but i knew i could be more. that one day, i would make people smile. [woman speaking indistinctly] welcome back. we're moments away from apple's earnings but here is how some of the movers after hours are doing. twitter down 9% after its results had third quarter revenue guidance well below street expectations. panera bread is up 3.5% now. and buffalo wild wings even is up about by 2.5%. by the way, in terms of how we finished the session on wall street, the dow dropped 19 points. the s&p was actually up a little bit, and the nasdaq was the outperformer all day today. so twitter still seems like the story after hours. we'll see if it's about to be eclipsed by apple. >> right now you look at growth, at least the projection in twitter. just taking a look, last year from q2, the current quarter, to q3, the quarter they just reported, they were up 12%. that's last year. this year from q2, that's today, to their guided quarter, they're guiding flat. they were at around 602 million this quarter. they said they guided between 5 -- 590 and 610, essentially flat. >> let's get to apple's earnings. they've just crossed and josh lip to ton has the numbers. josh? >> apple just reporting. apple reporting eps of $1.42, kelly. the street was at $1.38. revenue of 42.4 versus expectations of 42.1. gross margin of 38%. iphone units, 40.4 million, kelly, versus expectations of 40 million. ipad at 10 million. that's the first time in ten quarters you have seen revenue growth there in the ipad. mac 4.3 million. other products category, kelly, remember that includes the watch, revenue there of $2.2 million. services at $6 billion. that was a 19% pop. turning to that q4 guide, apple guiding q4 revenue of $45.5 billion to $47.5 billion. the street was at 45.9 and gross margins, the guide is 37.5% to 38%. i did just have the chants to ta -- chance to talk to tim cook. he said he thought the iphone's performance in q3 was fantastic. he said in q3 any saw a record number of android switchers, the highest ever. in fact, he said for the first nine months it's been the highest ever. he said that was true in virtually every country they track. he talked about the iphone se which is their latest four-inch model. he says that's really helping them attract new users to the ios community. two other points to touch on quickly. services. cook telling me he expects services to be the size of a fortune 100 company by next year. he pointed out that app store growth popped 37%. also said apple music and icloud grew and in terms of geographies, greater china you'll notice down more than 30%. cook making the case to me that mainland china though so far this fiscal year down 2% in constant currency. his point was given tough comps and economic challenges, he still feels really good about the business there. back to you. >> thank you. apple shares are up nearly 5% there. let's bring in a pair of apple shareholders. ross gerber from gerber kawasaki and kevin landis. ross, would you have been getting more bearish. what do you think now? >> it's a good report. i'm obviously happy. i was a little nervous we were going to throw everything out today, but, you know, tim cook has his work cut out for him. he has to 345make patriot ducts more relevant to younger people. he has to work on his marketing and what's next and waiting four years for a xar is a long time or three years. i'm happy with the report and it's still a great company. >> kevin, what do you say? >> well, i look back over the last couple years and i ask how much did i spend on my phone and how much is my bill every month to my carrier? and how do i square that because it seems like apple brings more value than my carrier does yet i'm paying my carrier more money. that's what the services is all about. and i think just looking at my own budget and you can take a look at your own numbers, that's every bit as big of an opportunity for apple if over time they can take a bigger and bigger bite out of your monthly budget. that's why that's so important because there's really no other really big market out there that they can go after right now. >> mike, jon? >> i would say the reaction by the stock is definitely telling because it was a modest beat on some of the items and not necessarily an across-the-board kind of blockbuster, but definitely reassuring. it tells you that it had gotten cheap enough and people were maybe braced for something worse. that's a good thing. i don't know if it's going to rebuild that multiple into the stock anytime soon, but it seems like most of what they were feared perhaps could have gone wrong did not go wrong. >> it is a good quarter based upon what people were expecting. they made that iphone number a little bit ahead of where the consensus was. one thing that i'll note at least according to my calculation here, the average selling price of the iphone appears to have dipped below $600, and i think -- >> i see a number here, this is just one estimate saying it was $490, but that was relative to the 443 according to five estimates on the street but maybe a beat but people expected it to come down but it has come down? >> i was taking the iphone revenue by iphone units. it appears to be higher than that. i think i had $595. >> sorry, yep. >> the street consensus was expecting it to be around $612. >> i just quoted the ipad number. sorry about that. >> although they made it on units, a lot of those units were the iphone se. the positive side is they're attracting new users perhaps from emerging markets. in some of the se buyers had bought higher priced iphones so their margins would have been higher. >> let me make this clear since i screwed it all up. the iphone selling price about $595 was below the $606 estimate. >> these are not the big quarters for apple. the quarter they just reported a traditionally the weakest quarter. it's the summer. you're the farthest away from a new iphone release and the iphone is the big revenue ypica of the new iphone numbers this there. analysts will be trying to figure out based on what apple says on the call in timing when we might get a new iphone announcement. >> are you going to keep selling the shares. >> we have a couple issues. one, what is the iphone 7 going to be and what can they say to make people buy it? they have to address apple tv which is still a mess of apps and the easiest way to do it is by using the cash balance. we're very, very unhappy with this cash sitting here with so many opportunities to buy tesla and to buy netflix and master the universe of technology in the future, and i see it as just an opportunity miss. so i'd like to see tim go out there and do something bold. otherwise it's going to be tough to keep growing. >> well, they're buying car pool karaoke, kevin. >> i heard that. yeah, i'm not so -- i don't care that much about karaoke, but i will say they are doing something kind of bold that may not come to the surface. if you look at who they're hiring around silicon valley, they're scooping up all the best chip engineers. they're going to be the number one chip company in the world before too long, and we're not used to thinking of apple as a chip company but here they come. >> that's far from exciting. that's not an exciting business. it's a low -- >> it's exciting if you care about margins. if you care about apple's margins. what they were able to do when they bought pa semi was create customs chips have that powered their battery life and helped them tell that story. there's some potential for them to do more of that even with the mac which continues to be a relatively strong business for them versus the overall pc market. so that is a reason to care. >> google is also getting into the space in a big way, aren't they? isn't google now in the business of making chips? >> well, they're in the business of designing. so you could dabble into designing a few of your own custom chips and then go all the way towards being a fabulous chip company like broadcom or qualcomm or go to thor end like intel. >> i go ahead, kevin. >> underlying technologies matter and they matter when you can do something that nobody else can do. it keeps others from knocking off your product. that's the point. apple has got their mission here to find the thing that they can do and only they can do that their customers can't live without, and they're trying that on a lot of after axis. don't count them out. that could give them a critical edge down the road. >> what were you going to say, ro ross? >> what we're talking about is what is going to drive growth when you are saturated the iphone market, and they have to get into a business that will do that. for example, they're not at all involved with virtual reality which is going to be the biggest thing over the next couple years and what's their play here? and sam song is making moves and sony has got things going on. xbox has stuff going on. facebook. but what about apple? and so i think they need to think a little bit shorter term is where are we going to drive innovation next year and the year after and waiting for a car i think is a high-risk proposition. >> don't you think it's in fact the street or investors that have to stop thinking about apple as a purely hit driven find me the future type of company when it's not valued that way anymore. it's not as if the valuation requires that. if you do a couple longer term incremental things, maybe it can actually be redeemed on that basis. >> i agree with you 100% and that's why we've lowered our position and not sold the company because i still think it's a great company. but it's not going to be a big overwaeth position for me either because we're looking for growth and we can find it in tesla and netfl netflix. >> we haven't mentioned the watch. i think they were looking for 2.24 billion. came in 2.2 flat. does that need to show more growth? does the watch matter that much to apple? >> i don't think the watch matters that much to apple right now. we saw at wwdc at their developer conference that they're wildly overhauling the software behind the watch, and you have to wonder if that also indicates they're going to overhaul the hardware of the watch. they took their first shot. it's gotten better sales than anybody else has been able to achieve in this category certainly, but they have a long way to go from here. so expecting it to be really strong at this point is expecting too much. >> kevin, final word to you. apple is trading $101 after hours, up nearly 5%. is this a company you are invested in? >> we are invested in it. i think ross makes a good point. you can't expect outlandish growth because they are so big. the challenge is to show they have not plateaued and they can continue to grow. i think we're all in agreement here that the next place where they can grow is to take a bigger bite out of your monthly budget and that's the services revenue line, and look for them to find something -- some sort of a service that siri can offer you that you can only get from apple. that could be really intriguing. >> another place everyone is excited about. thank you, guys. thanks for joining us. ross gerber and kevin landis. we'll have more on apple's earnings coming up, including why one analyst says it's still a strong buy at its current valuation. also under armour taking over the giant retail space that fao schwarz left in new york city. will it give the company the revenue boost it needs? you're watching cnbc, first in business worldwide. it's a tale of two tech spots. apple shares popping after beating wall street estimates nor more than 5%. twitter shares are under pressure after missing revenue expectation and issuing weak guidance. shares down 9%. let's get more reaction from the numbers from apple. joining us is john and angelo. apple still talking about revenue declines and that sort of thing on the year, but what do you make of the results? >> you know, i can talk about apple's product line and they're very reminiscent of blackberry formerly rim of eight years ago. a company resting on their laurels that seems to have stopped innovating several years ago. if you look at the 15 macbook pro, it's using a processor that's three generations old. not overly optimistic much apple's net gen product offerings. >> this is a classic case of apple beating low expectations. the last two quarters we've had to see the sell side come in the next morning and have to reset their numbers to the downside. this i think is a different case. you're actually seeing numbers that met expectations and an outlook that was okay. so overall i think this is as good as you could have expected out of apple, and we're actually a little more optimistic on the iphone 7 expectations than our other individual is. >> you have a strong buy on the stock. why is that, john? >> well -- >> go ahead. >> i'm sorry, angelo. why is it you have a strong buy? >> we have a strong buy recommendation and it's largely because of the risk/reward perspective. our view is there's a lot more upside potential in the name because we think we have seen a trough in fundamentals and we expect the 08% increa80% increa installed base to start reaping rewards once the iphone 7 launches in late september. when you couple that with a stabilization in the replacement cycle, it will lead to flat to slight increases in the iphone growth and that should be enough to get the stock going. >> jon? >> this john or that john? i'll take it for a moment. i have to push back against the idea that apple is not innovating and is like blackberry of yesteryear. the problem with blackberry is it didn't pick up the latest chip fast enough. you just -- the problem was they misjudged the entire direction of what consumers wanted. they didn't prepare themselves to deliver apps. they didn't prepare themselves to deliver touch screens and it's not clear at this point. you can make an argument about virtual reality or something like that, it's not clear apple is fundamentally misjudging what people want from mobile technology. i think it's too soon to say that. are they behind perhaps in artificial intelligence, in bots, perhaps? but at wwdc they announced a lot of technology, a lot of software, hinted at a lot of services that could be in line with what's been talked about by the likes of google and facebook. >> john? >> allow me to counter that for a moment. i was at wwdc as well. apple certainly is not going anywhere. they are the culmination of the reputation. that's where a lot of their intrinsic value is. taking things they're not in like 360 and virtual reality out of the equation. you have 2k and 4k phones out. apple isn't touching that. fast charging, wireless charging, apple doesn't offer that. until apple offers cutting-edge specs to match their pretty solid operating system -- >> people aren't buying that. we just heard from qualcomm that the premium end of the smartphone market is languishing while it's the lower end that's doing well. apple clearly made a good call in coming out with the iphone se. it's not a matter of throwing whatever feature out there. you have to get the right features because, yeah, wireless charges might be exciting to folks in north america but that's not where people are buying phones right now and they're not buying them on that particular spec. >> so to make sure i follow, you're suggesting that apple focuses on the lower end of the spectrum, completely going the opposite direction of what they've done since the inception of their history based on one iphone se model which they had one good quarter of. >> i'm suggesting there's an opportunity cost. coming out with features doesn't make a success. you have to come out with the right features at the right price point at the right time and i think part of the challenge with apple is they are so big, we think about all these things that they could be doing and wouldn't it be great. but if you do a bunch of stuff and it's the wrong stuff, there's a cost to dismantling that and going ahead and doing the right thing. so i've been -- >> there's also -- >> -- as critical about apple as anybody but you can't just throw the stuff at the wall. >> there's also a cost to not adding the features consumers are hear being. the people that are buying that $500, $600 iphone, there's an expectation of features at that price point. if you want to take the entire product line and base it on one of the iphone se, that's short-sighted. apple's bread and butter is still the iphone 6 and the 6s. >> you say the risk reward still remains attractive. the stock screams out as incredibly cheap. it's 11 times earning without accounting for net cash right now. they've done all they could. spend $177 billion in buybacks, kept the dividend steady. is there anything on the financial side beyond, of course, the expected iphone 7 rollout that can catalyze the stock from here? or is it just the street has to get comfort with the fact that the decline in revenue is not going going to be steeper? >> yeah. i mean, truthing told, i'd say we see limited upside over the next two quarters because we don't see necessarily a strong iphone 7 launch. i do think it will be enough to kind of start getting the investment sentiment going in the right direction. however, if we were to see disappointment out of the iphone 7, you have the potential for an iphone 8 super cycle hinging in september of next year. i think that alone really provides the down side in the shares. so you look at fiscal '18 estimate at $10 per share, it's trading at a single digits on a net cash basis. because of that, it's just -- we think it's a no brainer to really get this, you know, to be long the stock. >> i was enjoying the battle of the johns. there. >> that was fun. >> next time. >> thank you. >> it is a busy hour for earnings after the bell today. tomorrow it continues. we have facebook, amgen and whole foods. we'll preview the results coming up. under armour shares dropping now that athleisure market is slowing. a you're late for work. you grab your 10-gallon jug of coffee, and back out of the garage. right into your wife's car. with your wife watching. she forgives you... eventually. your insurance company, not so much. they say you only have their basic policy. don't basic policies cover basic accidents? of course, they say... as long as you pay extra for it. with a liberty mutual base policy, new car replacement comes standard. and for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. learn more by calling at liberty mutual, every policy is personal, with coverage and deductibles, customized just for you. which is why we don't offer any off-the-shelf policies. switch to liberty mutual and you could save up to $509. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance. a. under armour plans to move into the fao schwartz location in 2017. what does this do for the company? >> obviously, you know, create something kind of a oon iconic location is right flechlt, to by the way, the apple store right there at the gm building. >> right near nike town. >> it's essentially a showcase for the world tourists and everybody else who comes by that big shopping area. i do think it says, you know, we always knew that under armour had tremendous ambitions and they want to take pieces of nike's market share over time. kevin plank talks about that all the time. but this doesn't necessarily do much, i think, for the next few quarters. >> at the same time, they are going into kohl's, john. that could be where they also try to get in on a partnership that nike has. there. >> those two moves are interesting. i feel like they're too different sides of the ambition. on the one hand, kohl's, you get the female market. you get into a space where you weren't before. you get more exposure in california on the west coast. then with the old fao schwartz space, you get a really high value, extremely high traffic retail space that is all about brand building. and as under armour moves into wearables and activity and giving people a sense of what the brand stands for that, is the kind of space can you use for exactly. that maybe people can try out the wearable stuff. maybe they can do things and be a little active and take a look at how the wearable technology is picking up on. that. >> i like the theory on wearables. >> is that a thing? >> is that lazy athletes? >> no. i think it's the whole fashion trend of athletic. >> oh, that's people watching yoga pants watching netflix. >> or just not wearing them anymore. speaking of apple, it is trading higher after hours. the conference call starts in a couple minutes. we'll tell what you to listen for. tomorrow can you catch pa nara's ceo on "squawk on the street." 10:00 a.m. eastern. stay tuned. announcer: get caught buzzed driving, and you could do some hard time. woman: craig. knock it off! sorry, mom. announcer: it could cost you around $10,000 in fines, legal fees, and increased insurance rates, and that could set you back a few years. buzzed, busted, and broke because buzzed driving is drunk driving. welcome back. shares of apple up are more than 5% with a conference kicking off in a minute. what you are listening are for? >> iphone isp with the iphone se. >> average selling price. >> yes. >> with the se which is cheaper. and especially inventory heading into a new iphone. shipmentes are one thing. you want to see that they draw down inventory. the stock can move after hours. >> related to that, any color they have on what they think upgrade intentions are. i mean, i think people are talking about not really sure exactly what that looks like anymore. a little slower. >> and we've seen the flip side as we get results from the telecom operators. sprint did better because they were less of a competitive cycle. people are not upgrading phones and breaking contracts. that helps them. this is the lull before the storm. >> seems like it. at&t was a net loser of post paid, so it's not like the pod is growing that fast on that level. >> i want to hear whether tim cook is still pulling that string whether it comes to tv. that is a lot of string he's been pulling for years. >> and they've had the one device. it just stayed that way. we don't expect anything at this point, do we? >> they added voice to it. they added a few other little things. as they're doing more content deals, where the tv plays into that is interesting. >> car pool karaoke. that is the other big news of the hour in case you missed it. apple buying a series based on the successful cbs karaoke brand. the call starts shortly. thank you for being here to work throughout earnings with us on closing bell. "fast money" begins right now. >> we have team coverage on every single story from apple's big beat to twitter's huge miss and pa nne are. a solid corner. plus bob peck who downgraded twitter two weeks ago, nice call, bob, on the red phones. plus, earnings not the only story we're following tonight. the dnc getting under way. donald trump closing in on hillary clinton. wall street titan will tell us why that could cause a

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