At 1,700 but coming up short, down 3 points at 1,692. 49. Just moments away now from earnings out of at t and apple, and we will get those numbers to you as soon as they come out. But first, lets get straight to todays Market Action with oliver percent from Gary Goldberg financial services, mike san tolly from Yahoo Finance and cnbc. Coms very own jeff cox. Mike, let me begin with you, and just get you to react to what the prior guest said. He said he sees a market thats feeling tired to him. Is that what you see . Yeah, i mean, if you look at how overbought the market is, it obviously looks like its teed up for a stall or correction activity. Honestly, its hard to be too bearish at a market when you see this onemonthout performance by the transports, small caps, financials, all the things youd like to see lead. I do think we have to be prepared to watch how the market absorbs the next pullback. Obviously, there will be one. Historically, at least this year, as soon as we got one of the 2 dips, you had a lot of bearishness, a lot of hedging. And i think you want to see that. You dont want to see people take the next dip with complacency and with the sense that this, too, shall pass. You want to see people get nervous, because thats the wall of worry thats had the rally been climbing all this year. Oliver, weve been waiting for the pullback that never comes for so long. Youve been hearing people say a long time the market is tired. What do you think . We saw a little one in june and then you saw people get over the anxiety. Whats happening in markets right now is hold on. We have to cut you off. One second. Im sorry. We have to go to josh, because at ts results are out. Reporter yeah, michelle, at t just reporting let me give you the rules. At t reports eps of 67 cents. The street was looking for 68 cents. On the top line, revenue comes in at 32. 08 billion. Analysts had been looking for 31. 8 billion. Right now, the after hours, tlt unchanged. Guys, back to you. All right. Lets get straight to our analysis for the analysts standing by for at t with the instant reaction. With us is david and jennifer. Jennifer, your initial thoughts here, the top line i mean, the bottom line coming in slower but the top line coming in slightly better. Thats right. The top line being better, michelle, is big. You know, they have a very good glimpse into enterprise, probably better than anyone else. And for that to beat when verizon missed on enterprise is key. David, your reaction to the numbers . Encouraged to see that the revenues exceeded expectations. Earnings just slightly below expectations. The biggest thing well be looking at in todays call is whether management reaffirming the guidance for the rest of the year. Jennifer, also, well be looking for the number of net new subscribers and the iphone activati activations . Yes, preannouncement, in early june, 500,000 net adds. The iphone is becoming less of a relevant stat because everyone has it. David, what do you think about revenue for the rest of the year in light of what you saw we saw here, and that is a slight beat on the revenue line . Well, tyler, we did see a little bit of an acceleration in revenues in the Second Quarter visavis the First Quarter. So thats encouraging. It will be also interesting to see how they come out in terms of their ebitda margins and whether their Wireless Service margins held up. The expectation they would be around 43 . Jennifer, has this fundamentally changed, this sector of the market, in terms of were at maximum saturation in a lot of countries for these companies. Arent we has it changed the way you invest in the companies, because they grew so fast for so long, and now it seems to be slowing down . I think its less of a net add game at this point, michelle. Its more of what they can extract from the wallet share of the customers. If customers are using more data, thats good for the revenue per average user. David, a 39 price target on the stock. Its now about 36. Make the case for why this stock can go up another roughly 10 from here. Sure, tyler. First of all, it appears to be reasonably valued in a market in alltime highs. Stock trades around 14. 5 times this years estimated earnings, a significant discount to the market. It has a 5 yield, dividends have been raised 29 consecutive years. Strong balance sheet. Solid cash flows. Profitable. Theyre buying back stock. Solid defensive holding. Were not saying its a growth idea, but more of an income idea for defensive investors. Jennifer, what do you think of the stock, and do you prefer it or do you prefer verizon . We like both, michelle. I would say verizon in terms of Earnings Growth, we like better. Theyre growing double digit earnings, where versus at t with high single digits. I would agree with david. People think at t has been dead and they continue to prove people wrong. Okay. Jennifer, david, thank you so much for joining us on the at t instant analysis. Thank you. Their numbers are out. Remember, we are waiting for apple. While we do that, lets get back to the market discussion with oliver and mike and cnbc. Coms jeff cox. Oliver, you were rudely interrupted before. The market, is it tired or not . Its a little tired. You can see new highs from here. The tapering idea has been priced into the market at this point, so were getting and we survived. We survived, right. No apocalypse there. Revenues and Earnings Growth have been solid. Now, i think whats going to happen over the next six months for the rest of the year is the market will benefit from low expectations. And i think thats key for investors to understand. Youre going to see volatility. Yes, you may see a 3 , 4 , 5 pullback at some point or another, but like june, it will be shortlived and you will push up against new highs because theres money on the sidelines. You know, jeff cox, you have some things that really argue for a higher market. You have low relatively low interest rates. You have what oliver just said, low expectations. You have low inflation. And youve got low but steady profit growth. Thats usually a pretty good recipe for stocks. Yeah, i mean, you also have very low economic growth. So thats thats not such a good recipe. No, thats a very bad recipe. The market just kind of seems to take all of the stuff in stride, not really Pay Attention as far as the economic stuff goes. I think what youre really going to see as we go through earnings season, youre going to see what the guests said a little while ago about this being a stockspecific market. Sure, i mean, you know, weve been talking about how tired the market has been for quite a while now. It seems to come continue to keep pushing higher. But i do think as far as the averages go, weve gotten a little ahead of ourselves. It will be very stockspecific. Be very interested to see how apples numbers come out. Because tech numbers have been horrible so far for earnings. We knew they would be. Maybe apple can turn things around a little bit and give some hope for us going forward. Mike, i was struck by what you said earlier about how people its hard to get bearish when you see the transports rallying like they are, and juxtapose that against apple that we used to wait for so breathlessly. And we still are. Any minute now. But theyre down 20 so far this year. Yeah. Right . Its been a huge divergence between the old world and the new world. You know, honestly, i dont think apples been a bellwether on the way up or the way down. Last year was popular to say apple was the hallmark because it was obviously a huge component of the indexes. In fact, it was running ahead from 400 to 700 when, in fact, the overall market was flattish. So to me, its kind of its own animal. Its just another stock right now. I think its much more interesting how the overall markets been absorbing the prominent earnings misses. Youre punishing the stocks that are missing, going down on average 2. 5 . Yet its kind of rotating. Its very similar to last quarter in that sense. That being said, transports, by the way, down almost 1 today, and youre starting to see the laggards rally today. To me, thats kind of late rally action basically kind of looking for the junk thats been left behind and selling some of the winners. I do still think we have to expect some kind of stall or pullback activity relatively soon. Oliver, there are a lot of stock buybacks and jeff cox and i were just talking about the fact that ceos really love that. They love that, because their shareholders like it. It puts a floor under the stock price. But the other reason they like it is it means there are fewer shares over which to spread all of those lovely es in the p e ratio, and that helps the earnings per share. Isnt that a little bit of funny business . Well, to a certain extent, it is. You have to be careful. Not all share buybacks are the same. You want to see what theyre used for. If theyre really being retired and treated as treasury stock, thats a positive. We like dividend increases. We pay careful attention to that. If shares are being bought back to be reissued in just addition to management and ceos, thats just a wash. Like you guys have been talking about on cnbc, its really a stockpickers market, and you have to look at each company differently and specifically as opposed to generalizing. By the way, tyler [ overlapping speakers ] the point about the economy. This is really important about the stock buyback. Weve seen over 1 trillion worth of stock buybacks since the bull market started. And that money is being taken away from cap ex, being taken away from hiring, and investors like it that way. Theyre fine with that. When you talk about actual economic growth, where thats going to come from is companies deploying that cash and theyre refusing to do it now. Its just all about propping up the stock market prices and the averages. Mike santelli, you wanted to jump in. I wanted to tie it back to at t. Through the having a look at todays numbers, i havent looked, but they bought 7 of the shares year over year, turned 3 net Income Growth into 12 Earnings Growth in the First Quarter. Thats the game they played. If that made sense, 20 ago in the stock price, does it still make sense with the stock that much higher . I do think the pricing sensitivity of share buybacks is what you learn back in terms of destroying corporate capital. All right, gentlemen, thank you very much. Oliver, mike, jeff. Lets get to josh lipton who has the numbers from vm ware. Reporter a few names reporting. Lets get you up to speed. Vm ware, surging after hours, came in with 79 cents. The seat was looking for 77. A beat there. On the top line, 1. 24 billion, analysts were looking for 1. 23 billion. On panera, a different story. That stock selling off into the close. Then we got the numbers. 174. The street was looking for 177. On the top line. 589 million versus 596. The street wanted to say, importantly looking ahead, at guidance, they take the first fiscal year 2013 now saying 675 to 685, the street wanted to see 704. So some disappointment there. Finally, broadcom reports 70 cents ex items, the street wanted to see 68. Beats by two pennies on the top line, 2. 09 billion versus 2. 01 billion. The street wanted to see. Basically in line there. Guys, back to you. All right. Thanks for the breakdown, josh. After the break, well get you caught up on all of todays big Earnings Releases, because there are even more than what josh told you about. You bet. And then, were less than 20 minutes away from the one weve all been waiting for, and that would be apple. That stock lower again today. The numbers are going to be very closely watched, and we will have them for you first. [ male announcer ] come to the golden opportunity sales event and experience the connectivity of the available lexus enform, including the es and rx. This is the pursuit of perfection. People find out state farm does car loans as well as they do insurance, our bank is through. Good point. Grab an edge. Look theres two guys on the state farm borrow Better Banking sign. Nope for real theres two dudes on the state farm borrow Better Banking sign. [ reporter ] breaking news from the state farm borrow Better Banking sign. Were seeing two men that have climbed the borrow Better Banking sign gentlemen please get down from the state farm borrow Better Banking sign. Phil get the hose. Okay hes getting the hose. Alright, lets go. [ male announcer ] talk to a state farm agent about car loans that can save you hundreds. Thats borrowing better. Golden opportunity sales event and choose from one of five lexus hybrids thats right for you, including the lexus es and ct hybrids. This is the pursuit of perfection. Earnings season is in high gear. Bob pisani runs through todays big movers. Seema previews the other big reports later this week. Bob, youre up first. Reporter new highs on the s p and dow, but the aerospace was the big winner. Lockheed martin helping. Looking at aerospace. Lockheed martin terrific here. Blew the door off of earnings. Be aerospace, another one. Terrific numbers. Look at the industrials. United technologies really helped the Dow Jones Industrials average today. Strong in aerospace. Illinois tool works was a bit of a disappointment. Two cents lighter. They said things would be better in the second half of the year. Material stocks. Dupont fair, not great. Light on the revenues. Ended on the downsideme mentdow. Tough time for copper, but a nice beat overall. They came off the lows of a couple of weeks ago. Why are we at new highs . People keep bucking me about this. Theres a bunch of reasons, but its obvious. Record earnings. Mr. Bernanke has been dovish. The secondhalf improvement is expected right now. And china talking this morning or this evening about 7 growth being the bottom line there. Finally, look at coleman over at dupont. Look what she had to say. This is the reason the markets are holding up here. We anticipate sec half earnings will be significantly better than last years second half. Guys, thats whats motivating stocks, the second half. Back to you. All right, thank you. Music for the earnings parade has begun. Seema, wall street is looking for even more blockbuster earnings for the rest of the week. Were going to get apple in a few minutes. What else have you got your eyes on . Tomorrow, wall street will hear from facebook. Analysts will be once again focused on the social media firms Revenue Growth as more consumers use their phone to log into the website. Other bigtech names are qualcomm and western digital. Biotech earnings kick off on thursday where. Three stocks are up more than 50 this year. And, of course, all eyes are now on apple. The street forecasting a 21 drop in earnings per share, which would be a thirdstraight quarterly decline, and thats primarily due to heightened competition in the smartphone market. Analysts want to know how many iphones it sold in q3, how successful its been in china, the Worlds Largest smartphone market, and how ipad sales are faring. Thats one of the catalysts behind the slump in the pc market. Michelle . Yeah, absolutely. Were going to be watching for it, you heard it from seema, all eyes are on Apple Earnings due out any minute news. Keep it here for the fullteam coverage and instant analysis of the tech giants results. And another media hot company here. Its been a couple of rough days for netflix stock, though. Off the street, they are flying high with subscriptions and 14 emmy nominations for original programming. So is netflix the new hbo . Something more, something less . Well discuss that one next. Dont touch that remote. [ kitt ] you know whats impressive . A talking car. But ill tell you what impresses me. A talking train. This ge locomotive can tell you exactly where it is, what its carrying, while using less fuel. Delivering whatever the world needs, when it needs it. After all, whats the point of talking if you dont have something important to say . So you can capture your receipts, ink for someall business purchases. And manage them online with jot, the latest app from ink. So you can spend less time doing paperwork. And more time doing paperwork. Ink from chase. So you can. A barrage of earnings hitting wall street after the bell. Josh lipton has the highlights. Reporter a wave of Companies Reporting here. Lets get you caught up. Electronic arts, ea, a loss of 40 cents. Remember, the street was looking for a loss of 60 cents on the top line ea reports 495 million, analysts were looking for 454 million. Looking ahead, guidance for the year, ea saying theyre looking for a buck 20 on 4 billion. That is in line with what the street was looking for. Also, juniper. They report 29 cents. Thats a beat. The street was looking for 25. On the top line, 1. 15 billion. Street was looking for 1. 09 billion. Also some news here, the ceo of juniper will retire once a successor is named. Also, the Company Announcing a 1 billion buyback. Guidance for next quarter also above estimates on this name. Guys, back to you. Got it, josh, thank you. Speaking of earnings. Netflix reported yesterday, the company beating expectations but falling short on subscribers. Still the stock go ahead, michelle. Sorry. Still, the stock is 170 this year, tyler, and it received 14 emmy nominations. We can usually read each others minds, but sometimes we trip up. After comoderating the netflix Earnings Call, our own Julia Boorstin sat down with reed hastings. Heres what he had to say about the streaming services original content. We should probably be more adventurous, so we should have some failures, but were not being adventurous enough. Well continue to build on that. As long as most of them are great successes. Interesting company, interesting guy. So where does netflix go from here . Can it be the new hbo, and with us now is mitch lowe, netflix cofounder and the current ceo of quarterly, a subscription service. Mitch, welcome. Good to have you with us. Thank you. This stock has been hot, c d cold, hot again, cold the last couple of days. Whats next for netflix, the company . Well, i think its you know, its fascinating how theyre beginning to get deeper and deeper into exclusive content. And it really i think it really means that theyre looking for a way to differentiate themselves from upcoming stronger competitors like amazon, which are, you know, amazon is really going to be kind of more like