Lets get down to business and tell you whats going on this morning. U. S. Equity futures right now. Youre looking at a morning with red arrows. Dow jones would have opened about 46 points down. Nasdaq off 49 points off and s p 500 off about 6 points. But as you would say joe so goes apple so goes the dow. And the nasdaq which has been doing better recently and then yesterday anyone cares to be watching says the dow is getting crushed down 200. If you added it up it was like 140 at one point during the day. The vast majority of the decline. Right. Which made me think that maybe the dow wasnt doing so badly, the other 29 stocks. But then after the bell i dont know how microsoft will be received but apple has a long list i have written down every Single Person that told me that i never will have ever anything to worry about. That 49 billion in revenue is the birth right of apple. You know what they say about history, it doesnt repeat but it rhymes and ive seen a lot of stocks start on their way to a trillion dollars and theres always the left turn on the way there. Theres got to be some company hit the trillion. At some point. Apple had a market cap of 9 billion not that long ago. Its now 750 billion. It was great at 9 billion. Goes up stock splits. Goes up when it gets to 750 if youre going to get another double youre going to need 1. 5 trillion. Thats my only point. Thats the only point and its universally loved and priced for perfection and thats all i have been saying all along. I know nothing about whether it works and yesterday the guy who was that people that dont get this well why dont they get it . Why dont they want a 40 return guarenteed . And then they start coming up with these. I dont need to know why. I just need to know that in the past and you look at me incredulous a lot. Soon you are or later youre going to accept these things. Youre with me on uber. Youre going against the patron saint of bill de blasio. Of the left. The guy that the country is craving for a National Leader to bring his style of politics. Who said that . He has. Maybe he has. He thinks hes talking to other mayors. You need to run your cities like im running new york city. Into the ground. The only point on apple. Just dont trip over the guy peeing in the streets. Stocks dont move in a straight line. This one did. Until now. Ibm. Two days in a row of not so great earnings. Here we go. Another key vote in greece. Parliament is due to decide on a second set of reforms mandated for a bailout. Prime minister tsipras is facing a grower vote but its to vote on judicial and Banking Systems and not things such as retirement age or taxes. They did exclude farmers and postally fake farmers. That will be controversial. Do they have uber and athens . They do. So its allowed in athens but not in new york city. Hold on im not defending bill de blasio at all. It is in new york city. Cant you just take your arguments to the absurd like i do . All these facts its so complicated makes it less complicated. Just go with it. Its legal in athens but not here. Just say it. Back here in the states at t is nearing government approval of the directv deal. Tom wheeler is recommending the Commission Vote to approve the merger with conditions and the Justice Department says the deal does not pose a risk to competition. On the economic front housing is front and center today. Weekly Mortgage Applications at 7 00 a. M. Eastern time and our real estate expert will join us with more in the next half an hour. Here is apple. The thing is for fundamentals im on board because of am music. I love it. It changed my life and kids lives and its unbelievable but its something called streaming. Where you can get where ever you want whenever you want. I see it. Ahead of the curve. So that would make me more im all mac all the time. Have the iphone 6. We have four ipod. I have beats head phones coming out of our ears. Exactly. Good. Good. I was looking for something and the watch . No watch. Why wont they tell us if its so great. Why wont they tell us . Its weird. They told us in advance they werent going to tell us. They knew there was a possibility it wouldnt be so great out of the gate. Whats wrong with i dont understand. If you have information why not just share it . Early days. Current quarter revenue forecasts fell short some estimates and more from an analyst in just a minute. Another one on my list. Microsoft posting better than expected results on the top and bottom lines but the company took a hit from a big restructuring charge. A microsoft analyst also standing by to talk to us in a few minutes so that going for us as well. Yahoo earnings fell short of estimates and light of consensus in light of a company being forced to spend more money to attract users to website. Gopro beating the streets. A boost from strong sales in asia. And life lock dropping 50 after they were accused of violating a settlement with ftc in 35 states by continuing to make deceptive claims about its services. Lifelock. Their adds are great. Lifelock. They dont really do it. Assume that i know what youre talking about. Which ads . Lifelock effectively protects your identity your credit score, all of these things. The ceo did this great im going to publish my Social Security number right here to prove to you that we have so many protections. And i believe they have a Million Dollar guarentee. You pay a certain amount of money. Do you know about this . You do . Youre talking to an empty chair. There is someone there. Can you just tell us about it . Its not one of our stocks so probably not but they you know the fcc charged they violated an agreement they made in 2010 so thats never a good thing when the government is here to help. What you write on your hand why dont you put it in the apple watch. Youre still writing on your hand. Because i forget things. Sarah palin. She was cheating on things she didnt know. These are things i have to remember to do. Why cant you put the notes in the watch. Thats a good idea. Maybe instead of the time and everything else. Dan is here joining us now. A senior analyst. You have a watch too. He has the watch on too. He doesnt write on his hand. He puts his notes in his watch. What were seeing dan, is this not sort of something that you see when a stock is priced for forperfection. Everything is good. Were talking about just barely negative comments and yet 60 billion in market cap coming off. This is not new at all for apple. If its not new why is the stock down 9 points . Apple doesnt go down nine points. Its only the last year it hasnt done that. For ten years i have sat here on shows like this with you guys and said i think its okay but its one of the best performers. Im in a position where we have a longer Term Investment horizon. So am i happy the stock is down as an owner but everything that i heard on that call demonstrated to me that the business is Getting Better not worse. This is not a tiny company. Revenues grew 33 year over year. This isnt like microsoft was down i think 5 year over year. This was up 33. Put that speaks to the core of the question which is spectacular numbers like that the stock still falls is it priced for perfection . No the stock has always been more volatile than its earnings progression and not only did earnings grow or revenues grow year over year but earnings grew 5 4 41 year over year. It had an impact on the top line which translates to a roughly 72 year over year Earnings Growth if you back that out. Every single category of their business accelerated in the quarter. Services was up 29 versus 12. Do you think investors mispriced this company again . Absolutely. Its 12. 5 times earnings. Theyre growing earnings 40 year over year. The s p 500 trades at 16 times and maybe will grow earnings 7 year over year so absolutely we do. We think that eventually you know, its consolidated a little bit to joes point. A week ago it was 130. Today its 120. Its been consolidating since it was picked for the dow. Maybe well take it out of the dow and go back up. Thats the other problem. I would be worried if these numbers were going the other direction. If they were going in the other direction the entire stock would be cut in half. At six times earnings. You get the slightest this is a well run company with fantastic management team. Returning cash to shareholders. Growing earnings. Product acceleration so i see nothing but run way for the company and is it stock. Are you concerned that it grows ever more dependent on the iphone . When you look at the break down a year ago 53 of their profitability came from the iphone. Now its up to 63 . More and more and more its about only the phones at this point. So am is the only Large Tech Company that i can think of that has so many organically introduced product categories that they have to be broken out. They have the iphone they have the mac, they have the ipad. They have services. We dont know what the watch is yet because its in accessories. People complain about google and book and amazon dont break out enough information. They feel nice about it. They want to give us more information. The businesses are so large on their own that theyre separate categories and all accelerating in growth. What happens if we see a meaningful slow down in china dpichb that thats where so much of the growth comes from. I tend to agree as cook said on the call last night that he sees whats going on in china now a speed bump. So you know if you have 10 20 Year Investment horizon as apple can have they have that view. This quarter up 112 year over year but will they be selling more than in the past . They will. Why does it trade at a relatively modest multiple compared to other stuff out there . Why do you think that is . So the way i look at that is i dont care. I have to accept that. Its not going to change but if earnings continue to grow and i still have that 13 times multiple but earnings are 40 higher then i have a stock thats 40 higher. So i rely on a Good Management team great product cycle, certainings growth and the rest take cares of itself. Is there any discounting mechanism in the stock market that you cant know at times what the future holds so youre basing everything you say on whats already happened or whats happening today so you never know when a stock is not acting right. You say the market doesnt understand whats going on. A lot of times the analyst doesnt understand whats happening in the future. Its watching guys like you looking at the past and its been right for ten years. Its been a great run for ten years. We think that a Good Management team produces good track records. So i look at an opportunity of other things we can invest in. Three months ago i was defending google. Three months later google is all right. Well see retraction in Companies Like alibaba. We cant look at this on a quarter by quarter basis well lose our minds. We have to have a focus on the future and everything that we see in our work and service with the consumers looking at what other people are doing in tech the runway is getting longer and the moet is getting wider. Not the other way around. Thank you for coming in this morning. Well turn our attention to the other tech giant of the morning. Microsoft with Quarterly Earnings and revenue topping analyst expectations. A bright spot for revenue, the companys commercial Cloud Computing segment grew 88 year over year. Good morning. We talked about all the good stuff. Do you worry about the legacy businesses and what that means . People should be worried at some level. They have been declining slowly over the last few quarters. Part of that is because last year there was the refresh but the other reason is lessening of demand. Well see how that transitions over the next year or so but slight worry there. Is that ultimately a more valuable business than people buying Microsoft Office on their own . Yes. Its clear theres a lot of value there and the idea that people can pay overtime gives them a lot of flexibility to buy other Microsoft Services and thats what the company is starting to see. People arent just buying office. Theyre also rolling it in with exchange and dynamics. So overtime revenues will be a little weak in the shortterm because people are paying them. Stock is trading about 45. Whats your target on that stock. We have a 46 cap. Its going to try to get meaningful market share in that phone hardware system. If they shut that down entirely our fair value moves up a couple of bucks. To what. 50 . 48. It doesnt look like thats going to happen. Not in the near term but certainly theyre making noises about were going to serve our target markets there and reducing the lineup. If youre looking at the other side of the business theyre starting to offer that to other platforms. Now available for android and skype is out there. Office 365 is out there. Theyre making moves in that direction. Well see what happens over the next year. We appreciate your perspective this morning. Thank you. Thanks guys. Well talk to you. Coming up a jeep hacked while driving on the highway. Shocking video and what the company is doing about the vulnerability, thats next. First as we head to break take a look back at this date in history. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . Kids are expensive. So im always looking to get more for my money. Thats why i switched from uverse to xfinity. They have the most free on demand tv shows and movies on all my devices. Its perfect for me because my kids are costing me a fortune. Im going to cabo [ music plays ] dont settle for uverse. Xfinity is perfect for people who want more entertainment for their money. Someone hacking into a car and taking control of it but now shocking video proving it can happen. Computer experts remotely hacked into an suv on the highway all with a laptop and now jeep offering a fix to a sunning vulnerable. Haley jackson has our report. What started as an ordinary highway drive quickly turned terrifying for Andy Greenberg as hackers took control of the 2014 jeep sending him to a ditch. They did this on purpose working with hackers to show how some connected cars can be vulnerable. It ceased to be fun. I can only imagine if the same thing was done to you without any forward earning how much fear that koul instillcould instill in someone. They hacked it to change the radio and pc and to kill the engine. You have to turn the car off. The two researchers believe as many as 274,000 vehicles are vulnerable. They only verified that on a 2014 jeep cherokee. Chrysler released a Software Update this month and says it has a team focused on identifying and implementing Software Best practices including Cyber Security for all vehicle content including on board and remote services. A bill would require that connected cars protect drivers against cyber criminals and have technology that can stop a hack in real time. It does introduce more ways to get into the vehicle but theyre working together to beef up security. Staying safer on the road keeping hackers out of the drivers seat. Nbc news los angeles. Well talk more about the story this morning with mike jackson at 8 15 eastern time. Unless he gets hacked on the way here. Unless he gets hacked on the way here. Terrible. They were kind of laughing as they were heading toward the ditch they were laughing because they knew the guy had took control and its just a ditch but can you can you lock the doors . Could you lock the doors and send someone over like an embankment . I have interviewed a Cyber Security of the future future crime specialist. Theyll have to worry about people driving your car over the cliff so that you die. At the moment to be cliff what it sounds like it wasnt actually turning you into the ditch. They couldnt control the Steering Wheel thats when we get into automated cars and once you get into automated cars where theres a computerized motion. They could control your speed. Right. Stereo speed, air conditioning. What if they accelerate you to 110 miles per hour. I thought that was just shutting down the engine though. What if they were to just lock it on the volume on to Justin Bieber and leave it on really loud. And locked in the car. It was hard rock. Britney spears or something. Hard rock. Pad hard rock or good hard rock . Very loud hard rock like 24 hours a day. Okay. Besides the biebs, who should we use besides him. Whats the worst thing out there right now . You used to give me a hard time for milly vanilly. All right. A wild after hours session for chi approximate, o chipotle. Beating estimates by a penny while missing on revenues. Joining us now to break down the results is matthew, Senior Research analyst that covers chipotle. Good to have you here. Thank you. Same store sales bothered everybody. People were expecting closer to 6. Sure it was a slight mess so the stock did violently sell off before the conference call. They explained that away as far as quarter to date july trends turned positive on traffic so there was a sign of improvement. That aided in the recovery and with typical Top Line Sales trends missing a little bit labor deleverage with a little bit of concern. Is that the waging of the minimum wage . Theyre seeing other inflationary pressures. Theyre taking up their rates because they want to stay ahead of the fast food rates out there. Service restaurants. So its a case where minimum wage is pushing everybody higher so they took their wage rates up faster. Explain to me a pork product. Its missing from a large percentage of the stores because they didnt like the way one of their suppliers was producing the pork. The pigs didnt live a nice life before they made it to your plate. So theyre jazzing that up and the u. K. Treat their pigs a little bit better before putting them on their plate so they found a u. S. Supplier to remedy that issue. 60 of their stores have the product back in there. Simultaneously they hav