Here. Well talk about the big miss of big blue and spoke with david faber and investors are watching to see if we shake off that mess. Interesting, had the news of ibm come out midweek last week, big problem. Oh yeah. Dont you think . Markets for the most part, even though the dow hit pretty hard, is kind of taking it in stride at least now trying to work back into positive territory. All about earnings, fundamentals, a miss, one of the biggest price weighted names in the dow, youre right. A more nervous environment is raising the concerns. Today trying to fight back. A change of sentiment we felt over three days. Apple takes focus after the bell. Third quarter earnings with about nine days of iphone 6 sales and obviously closely watched and the reaction in the stock could be significant and well have the first analyst and best anywhere around. Jim breyer, he was in on facebook before anyone really knew what it was and well find out what hes interested in right now. Turned out pretty well for him, id guess. Did okay. Doing all right. In the markets right now, the dow is trying to work back into positive territory and just about there. Down fractionally. There you see it right there. S p 500 and the nasdaq are in positive, as well. Major averages have, though, seen four weeks of losses and trying to stop the shnide. As they say. Joining us is kelly connelly, mark madsen, mike mcqueen, sam stowell and rick santelli. Sam, first of all, this ibmer andings miss does take down the earnings trajectory for the tech sector, doesnt it . It sure does. It was expected to be up 4 and now up in the 3 to 4 zone. Also, brought down the overall s p 500 estimate to below 5 right now. But our expectation is to peak back above that 5 level and right now financials is the only group that is expected to show a decline, that would be a modest one. Kelly, we had Lee Cooperman on with us earlier today and asked him about where he thinks the market is, where he thinks it may go from here, too. Heres what he said and then lets react on the other side with the group if we could. Bear markets dont materialize out of Immaculate Conception and induced by the stock market smelling onslaught of recession or respectively overvalued market or maybe theres a geopolitical event but theres something thats a factor and i would say that i dont see the factors in play. I was saying on terms of deflation, the inventories in good shape, employment is growing, leading indicators are rising. He would be the first to say the market may be fairly valued and could go more. Do you agree . I do agree. And i like the way he put that. I think that the Economic Indicators were seeing are not indicative of a recession. We have got strong data coming in. We have got earnings that are encouraging. The Housing Starts came in very positive last friday which suggests forward growth. The Manufacturing Sector is a little slow but still its in the expansive territory. So im very optimistic. Im looking at the labor market and i do see improvement there. I had some concerns an probably still do have some concerns with the wage growth and i think that we he to look at i dont hear much talk about this is we have got over the next 20 years a tremendous amount of baby boomers retiring on a daily basis. So to compensate for that, we have got a tremendous amount of young people graduating from our universities that are extremely intelligent and ready, willing and able to jump into these jobs and bring a lot of ingenuity and okay. But short term well see volatility. I think the wild card here is the ebola, the midterm elections, isis. So im still a little cautious on the short term. I see some volatility but i think overall it looks good. Rick, you want to respond to that . Yeah. You know, i think mr. Coopermans always had a pretty hot hand in equities, cold hand with regard to interest raits like the big boys have so i continue to think that the message of the fixed income market is not really being taken to heart by many and i think its an important message. What is it . The message is that growth is sub standard around the globe and even though the u. S. Is definitely the stellar player with regard to growth its stale bit sub standard. Productivity definitely under historic norms for a postrecessiontype economy and vulnerable of issues and tonight checking out chinas gdp. I think that will be a very relative input in the puzzle and monitoring the notion that the stock market probably going to stabilize like today and i think that we are in a new chapter of not only volatility but i think of Interest Rates. I dont think theyre going to go up very far but theres very little doubt right now that most think well see at least 2. 25, maybe 2. 30 before paying attention to the potential of more buyers coming in at those levels. Yeah. So mike mcqueen, which is it that the market is ignoring, fundamental weakness that rick is talking about, the strength that cooperman was saying . You know, it is hard to go against leon coopermans advice but the market is clearly focused on the three es, ebola and europe and earnings right now but i think in a couple of weeks youll see that theres going to be a change in tone and remember that the consumer whos 70 of the economy has three big tail winds, improving employment, low Energy Prices and low Interest Rates and talking about a Holiday Shopping season and people realize the tail winds behind the consumer and going to change the tone of the market so i think thats whats going to drive the dialogue going forth in the Fourth Quarter. Rick, you dont think that as suspect as you may be about where the recovery is or where the economy is going, you dont think that were going or close or anywhere near recession, do you, as others would suggest like peter schiff, for example . I think 25 chance over the next three years. 25 would be the way id peg it. I think theres a high probability that europes going to be in a recession and how their banks and how some of the credit issues in europe affected by the slowdown is anybodys guess. I dont think its what we export there. I dont think its that type of a contagion with regard to europe. I think its more on the credit side and i think a lot of unknowns there, some of the stress test talk isnt optimi optimist optimistic. Mark, what are your odds . What about europe and the extent to which theyre exporting the weakness around the world . Heres the problem. Looking at recessions over 80 years, the market does better by about 1 per year when youre in recession versus just a growth period. Wait, wait, wait, wait. Counterintuitive. Wait a minute. Wait. Youre not seriously telling me right now youre telling our audience that if we were in recession performed 1 better than in a growth economy. Its counterintuitive. What do you mean by in a recession stop trying to what do you mean by recession . Any time you have a year of negative gdp. You are might be the case but its probably because they have already priced in a 40 drop from whatever the high was so of course you get a snap off the lows. Heres the point. Stop trying to predict the market. Nobody can predict the next 5 or 10 movement. Trying to predict the market in the short term is nothing but a guess and you should never manage your money on a guess about the future. Hold equities over ten to 20year period. And then when markets go down over the last month, you need to rebalance and buy equities. Look. U. S. Large Growth Stocks up 215 over the last since the last recession, since the crash. But no ones talking about that. Most people miss the 200 because theyre trying to predict the short run. Own it long term. Diversify internationally. Japanese stocks up 4 today. Be in 12,000 stocks in 45 Different Countries and if you are concerned about risk its a fair point. I understand what youre saying. And rebalance. I understand what youre saying. Ten to 20year time horizon. The wiggles dont matter so much for people trying to make decisions about how many money to have at the end of the year or next year, certainly, an event like a bear market would be a big deal. If you cant stand volatility, be in cash period. No matter what you think the market will do. You know, youre picking from the worst possible march of 2009 to get the 200 plus percent. Look at a tenyear horizon and its smaller than 200 plus percent. Equities have done great over ten years. If you owned a not as good as picking the bottom and then nailing it. We all know that that in 2009 the market overcompensated to the downside. So, you know, we need to be open about the notion that theres been a lot more lateral moves to the fixed income or, excuse me, the stock market than just by looking at what happened post crisis. Thats for sure. Guys, we have to leave it there. We have breaking news but thank you, everybody. In fact, we have a market alert here from treasury secretary jack lew and Steve Liesman with the details. Thanks very much. Jack lew in a brief conversation with cnbc said the recent euro dollar movements are linked to growth differences. He says they dont seem to be linked of movements and policy and watchful for policies, specifically aimed at that reason. Jack lew in a statement to the imf a couple of weeks ago at the meetings did raise some concerns about whether or not he was concerned about the level of the euro versus the dollar or the otherwise depression of the dollar in a statement saying g7 and g20 countries need to be mindful they have agreed not to use currencies to deappreciate other currencies and the greenback up about 7 since may and questions in the market of the tolerance of the u. S. Government for this appreciation of the dollar versus the euro. Up a little bit stronger here. 128. But jack lew saying he sees it more as a result of growth outlooks than policy. Kelly . All right. Well leave it there and see if the dollar continues here and always the counter trend. Talking about the strong dollar, takes a backseat. Baby it gets a second wind here with about 48 minutes to go into the close. The dow now positive. Its up 6 points. We might have a full pledged rally on the hands if not for ibm. Does big blue have the right plan for the future . Is the cloud the answer or already saturated with too many players. Ibm might not be the biggest earnings story by the time the day is over. Apple reports after the close and well get you the numbers to watch for live next. And the pros chime in on apple pay and whether it pays off for the tech giant and take part in the live poll asking if you would rather use apple pay or your credit card. Cast your vote. The polls are open well be right back. Theres confidence. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts means your peace of mind. Its no wonder last year we sold over three million tires. And during the big tire event, get up to 140 in mailin rebates on four select tires. shouting location. Heres the location that matters the most. Here. Or here. Or here. Its wherever this is. To get customers to come here and stay here, youre going to need an app that connects to all your systems. So they can bank, shop, do what they need to do, and you gotta do it fast. Before the competition does. Its tough out here; you better be on the right cloud. Today theres a new way to work. And its made with ibm. An Unprecedented Program arting busithat partners businesses with universities across the state. For better access to talent, cutting edge research, and state of the art facilities. And you pay no taxes for ten years. From biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo. Startupny has new businesses popping up across the state. See how startupny can help your business grow at startup. Ny. Gov welcome back. Lets take a look at shares of apple here 2 just under the 100 mark gaining ground ahead of the Earnings Report today. Josh lipton has the numbers to watch for. Josh . Reporter well, kelly, you know, apples ceo tim cook recently said that the new iphones are the fastest selling iphones in history. So how many exactly are we talking about here . We should have a better sense after the bell today. Now, the street wants to see eps of 1. 31 on 39. 9 billion but the number, of course, that investors and analysts look for iphone shipments and they want to see 37. 4 million. On the call, youre going to hear analysts want more clarity about that mix of the 6 and the 6 plus. Also, how that launch in china is going. As for i pads, the street is looking for 13. 4 million. We know they have disappointed the street and interesting to see whether apple can reverse that friend. Finally, 4. 9 million macs which do represent about 12 of the companys revenue. Of course, today, apple launched apple pay, the new mobile payment service. Apple hasnt said how to make money off this service and analysts look for any insight from cook and company about that on the call. Guys, back to you. Josh, thank you. And we understand the estimate for apple is 1. 31, up from 1. 30 this morning, scott. That report due out in about an hour. We have a few questions of apple pay. Is it easier than a credit card . Joining us to help us figure it out is our guest. And paul waggenseal. Hes not so sure apple pay will take off. Before we start the discussion, we want you to chime in. Go to cnbc. Com vote. Would you rather use apple pay or your credit card . Want to hear from you. Paul, to you first. Why dont you think that this is going to be all that . Because it wont be that much more convenient than a credit card. This is the third or fourth attempt to have a digital wallet. Google tried it. Didnt really work. Verizon and at t and tmobile also trying to do it with softcard, formerly isis. They changed the name. Probably good idea. It is not taking off either and the issue is it is not that convenient. This is apple. Good brand. Its a brand coming in to fit after everyone tried and failed and doesnt work and they get it right . If it works perfectly. Google wallet didnt. I would buy a stick of gum. Ping, ping, ping. Wouldnt work. The fifth or sixth try it would. And then i gave up. Paid in cash. What makes it this different this time with apple pay . I disagree with paul. I think it is easier to use and improved the hardware so i havent used androids wallet so i dont know whether it works or not. You know, the fingerprint sensor on the new iphones much more reliable. I couldnt get it to work on the 5s but this is rock solid. Im assuming if it all goes to plan, i think its more convenient than swiping the card. Usually a number, a zip code. Answer about 12 questions. You dont have to do that and punch in any numbers or zip code. Maybe the gas station or subway station. I have to push in a zip code or a pin number and insecure. Look at the huge data breaches, they had target and home depot. I think this solves problems on the security side. Either one of you used apple pay . Do you have the iphone 6 capability to use it . No, i dont. I downloaded it. I havent been to the store yet. What is it like so far . You have to upload that did da that into the phone. I took a picture of my card. Took a second. I think the interesting thing to play into kellys question is you have to have the iphone 6 to use it. How much of an issue is that . I mean, fully dependent on people adopting the iphone 6 or the 6 plus in large numbers. You need the hardware. Thats right. The iphone 6 has an nfc chip in it, a secure element that the system relies on. Not like an app from the store to the existing iphone such as the 5 or 5s. Thats right. You can if you have the apple watch thats where the chip is. But other than that, youre sort of not going to be able to do it. We are now late in the day and we havent really heard much about this. Does it indicate its launching smoothly or too quiet out there . I dont know. People are like me. You have to download 8. 1 and then a store and its still, you know, its not at every store. Its at 200,000 stores but theres pretty big ones. Whole foods and walgreens. Ill try it on the way out of here. Tweet us. What about the issue of making money . Thats the thing. There are other come peetding formats and one we havent talked about of mcx. Merchants Credit Exchange i believe and supported by walmart and target, old navy, gap. You will not be able to use apple pay at those stores and being test run in cities around the u. S. And out next year. Well, the key for apple is demo, a lot of these upscale places have the technology in place and could give them ease of adoption and a cool thing to do. Apples smart. They basically kind of go after the luxury market first. Apples a luxury brand. Yeah. By the way, heres where the i pow wow poll is. Apple pay or credit card . 54 say apple pay. 46 using the credit card. But again, we want to know your experiences with it so please do let us know how it goes, how easy it is. 35 minutes before the bell rings and the Dow Jones Industrial average in negative territory by about 16 points. S p is not. Its firmly positive. 75 . Nasdaq is outperformer today up better than 1 . Ibm ceo talking strategy with our david faber this morning. Were reshaping this company around analytics, around cloud and the term i use engagement. Up next, pros hash it out. Should she think about expanding into the cloud and not enough room and whens become a very crowded space . Another big blue inspired debate, good idea for Tech Companies to undertake huge stock buy backs . We get into that after this. Ameriprise asked people a simple question in retirement, will you have enough money to live life on your terms . I sure hope so. With healthcare costs, who knows. Umm. Everyone has retirement questions. So ameriprise created the exclusive confident retirement approach. Now you and your ameripise advisor. Can get the real answers you need. Start building your confident retirement today. Inside a car designed to connect you to a world of possibilities. The connected car by volvo innovating for you. receptionist Gunderman Group is growing. Getting in a groove. Growth is gratifying. Goal is to grow. Gotta get greater growth. I just talked to ups. They got expert advise, special discounts, new technologies. Like smart pick ups. Theyll only show up when you print a label and its automatic. We save time and money. Time . Money . Time and money. Awesome. Awesome awesome awesome awesome all awesome i love logistics. Welcome back. Dow trying to fight back into the positive territory last hour today. We are well off the lows and down 15. While the s p and nasdaq especially sharply positive. Dominic chu is covering the moves for us today. Dom . Lets start with travel stocks. People coming off ebola watch