The markets relatively flat, the lie, a lot of news today whether its politics, earnings, Central Banks and apple a strong gain for apple shares profited estimates and company says that iphone and ipad shipments were better than expected. Josh lipton talked to tim cook and joins us with more this morning. I feel fantastic about how the iphone did. Thats what ceo tim cook told me about the products performance in q3. Investors also seem encouraged breathing a sigh of relief this morning and thats in part because the pressure on the iphone isnt getting worse. In q3 units were down 15 . Its about the same as q2 and now looking ahead theyll be down 8 in q4 and the se is attracting a whole new group of apple fans. One point of concern in the quarter, Greater China down 33 . Cook acknowledging near term concerns there including economic weakness but on the call he sounded bullish about the longterm. We opened our 41st Greater China retail store during the quarter and also made a 1 billion investment. Switchers and smartphone buyers represented our shares in the quarter and our base has grown by 34 over the last year alone. When i asked about china he noted despite economic challenges the China Business remains in his words really good. Investors also like to hear that cook isnt just spending money on updating his current products. He said that apple is investing in products that you cant buy yet. Couple with that his comments about chuy need Ride Sharing Company where he said there are strategic things they can do together and you cant blame investors for thinking about the possibility of that. No, you cant. Lets take a closer look at the stock and the company. Good morning, guys. Good morning. I know you got your overweight. Does the quarter remove or wash out worries that theres cuts to come. Going into this it was anybodys guess in terms of how the iphone was going to be at the end of this disappointing cycle and i think that the guidance that was fractionally prove where the street was at was a sigh of relief and gives investors the chance to think about what the iphone 7 is going to do and what will happen in 2017 with the anniversary edition. Theres a couple of things that jump out and the iphone se and more of an inventory draw down and actually sold or more were reflected in the quarter because of the big draw down on inventory. What does that tell you about how apple is surviving, thriving, in this environment where luxury phones, smartphones are doing well. They can fill inventory in late september when they announce the product so i think thats why theyre confident about it. There was another draw down for the first time in two years. We heard josh mention a couple of the investments in the quarter but do you see that trend continuing . Apple getting more liberal with the way it uses its money. They have to. And youll see that trend down. Tim cook has been clear that theyre being more inquisitive. He said they are making an acquisition about once every three weeks right now. Most of those are small. But investors most importantly want apple to do more with their Balance Sheet to lay the ground work for future growth monthly active users werent as bad as expected but overall revenue not great especially on the important advertising line and eps okay. But overall is there anything to take away from this twitter report to make you feel better about the company . Perhaps the engagement and content strategy they seem to be pushing now . Video hasnt gotten traction yet. Im going to feel better if i see the deals they signed with the nba and nhl and nfl actually result in higher engagement and more time spent on twitter and thats what advertisers are looking for too. Theres some of those events in the Third Quarter, do you think that video will pay off in the near term or do you think its a longer term bet . Its a longer term bet. Were seeing price pressure on the missing business because theyre the high priced version of advertising on social media and theres still going to be pressure in the Third Quarter. Speaking of companies that are adding users facebook tonight, we already had discussions at this table this morning about the one and i mean one cell thats on the street right now. Does that make you nervous . Yeah it always makes me nervous when everyone is on the same side. Thats one of the reasons apple is doing well today is people are so negative going into it. So yes it makes me nervous about how facebook is. The good news they have is everyone knows a lot of big drivers in the future that they havent capitalized on. Instagram is about one fifth what facebook is and they can turn that up. Theres so much good that the near term doesnt matter. Appreciate the insight. Good to see you both. Thank you. When we come back, history in philadelphia. Hillary clinton officially nominated for president of the United States. The biggest takeaways and what to expect later tonight with potus. And mondelez in red and the man that got nintendo right. Well talk to a Hedge Fund Manager that pushed nintendo years before the launch of pokemon go when squawk alley comes back. Bend me shape me, any way you want me as long as you love me, its alright bend me shape me, any way you want me. Shape the best sleep of your life. Sleep number beds with Sleepiq Technology adjust any way you want it. The bed that moves you. Only at a sleep number store. Youre here to b great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. I am so happy. Its been a great day and night. What an incredible honor that you have given me and i cant believe we just put the biggest crack in that Glass Ceiling yet. A historic night in u. S. Politics. Hillary clinton becoming the first woman ever to become a nominee for the first Major Political party for president. Former president bill clinton her husband taking the stage last night offering a rebutal to long standing efforts to demonize his wife. Take a listen. There are clear achievable affordable responses to our challenges but we wont get to them if america makes the wrong choice in this election. Thats why you should elect her. And you should elect her because shell never quit when the going gets tough. Tonight the hilary sales pitch kicks into high gear with president obama attempting to help unite democrats as well as vp nominee tim cain and Vice President joe bide b and from washington former Marco Rubio Campaign manager Terry Sullivan thats now a partner with firehouse strategies. Well start with you because the former president spoke last night from his role as witness to Hillary Clinton being a change maker throughout their marriage. Was that effective in shedding the establishment branding . It really wasnt. It worked wonderfully for jeb bush during the primary process. Now voters, not just republicans and democrats they want to burn down washington and talking about your experience in washington and government and getting things doesnt isnt what people want. Democrats almost nominated a socialist and republicans nominated a reality tv star so you think talking about experience in government just isnt the way to connect with voters this cycle. Interestingly, this speech concerned her experience in policy through her advocacy for children and minorities and spent less time on her record in the senate and as secretary of state. Why do you think that was . Well, this campaign, this convention is going to be a process and every night of the convention had a different part of her story being told and theyre weaving together the threads of her life to get us to a certain point and now were talking a lot about the past and you cant run this Campaign Based on government experience. This is a campaign for change but the question is change to what . Are we going to change to someone like donald trump thats arguing that we should pull apart and blame each other and look at our neighbors as suspicious because they look differently or worship differently or love tirgdiffere . No, we should be pulling ourselves together and love trumps hate is the message coming out of this convention. Two words havent appeared anywhere at the convention. One being isis and the second being email and to that end president ial nominee donald trump was speaking moments ago about email in particular. Russia, if youre listening, i hope youre able to find the 30,000 emails that are missing. I think you will probably be rewarded mightily by our press. Lets see if that happens. Your response to that . I cant think of a more disastrous way to start this convention than focus on hidden emails and just when you think that the Republican Convention got as bad of press coverage as it could the republicans figure out a way to trump it. Its a fools errand to stand on stage and try to make Hillary Clinton likable. Its not going to happen but it doesnt matter because republicans are, donald trump isnt likable either. But the difference is do you have the unlikable crook or clown. This is not just about the voters. Its about particular types of voters and for Hillary Clinton he does have a place to go with white women and theres a lot of women today that woke up and said i learned things about Hillary Clinton over the last couple of days and a couple of folks talked about that. And who have daughters and theyre talking to each other about what to do in the course of this election and its incredibly important way to get those voters for her. We just heard donald trump say russia, i hope youre able to find those 30,000 emails. Now from a technology perspective, hackers, is there any risk there. You just called him a clown but he just said something about Russian Hackers thats a head scratcher. Look, donald trump saying things that are a head scratcher is nothing new but doesnt seem to hurt him so the voters almost embrace it so yeah he is communicating with the russian government to figure out how to hack the u. S. Government. Its bizarre but it works because he says salacious things and the media covers it and that, this cycle, sells. And we dont know what the russians are doing but we do know what donald trump is doing thats going to and its talking about not defending nato allies. Who does that benefit. It benefits Vladimir Putin and russia so the question is not just does that go down the dark tank of what is happening with this and having less conflict and donald trump is the one that seemed like. Some of these questions might be answered if donald trump would release his tax returns as we learned this morning. That would have been flown for candidate mitt romney. Yeah. Or any other candidate. Donald trump doesnt play by the same rules and it works for him. It does. Trying to assign the traditional rules of politics or Public Relations just doesnt work. It doesnt matter. We will see what night three of the Democratic National convention brings. Jamal simmons, Terry Sullivan, our thanks to your both. Thank you. By the way, gop president ial candidate donald trump will take questions tonight at a Campaign Event in florida along with the reddit ama. Well bring you any news as it becomes available but he has already made comments which he says are out of date. Meanwhile they wrap up a two day meeting in washington. The question, when will they next and what role will the election play in its decision. Steve with what to expect. Hey, guys, theres little chance of a rate hike today there is some nervousness the u. S. Central bank raises the possibility of a september move. The cnbc fed survey sees the next rate hike coming in december on average and just one rate hike this year along with an average year end funds rate of 0. 6 but they warn the market is warned and that the fed could introduce the risk and the sharp decline of bond yields and stock prices raised the stakes on getting the fed wrong. The keys to the meeting are how much they upgrade the Economic Outlook today. Since the last statement prospects brightened a bit as did the jobs picture though the inflation looks amerimurky. Will they monitor the fall out or signal less worry by dropping the word closely. And does she resume her ways after putting them on hold in june. Is she joined by others that want to hike now. Finally the fed will never say this but if business contacts are telling them that president ial election creates economic uncertainty. The fed might choose to wait until december before acting. Back to you guys. Thank you. Steve, mondelez shares down 1. 5 . After a mixed quarter beating on earnings but missing on revenue. Coming up Irene Rosenfeld is going to join us on a cnbc exclusive. Well be right back. [child giggling] child look, ma. No hands. Children i, j, k. [bicycle bell rings] [indistinct chatter] [telephone rings] man hello . [boing] [laughter] man you may kiss the bride. [applause] woman ahh. 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All plans like these let you visit any doctor or hospital that accepts medicare patients, with no networks and virtually no referrals needed. So, call now, request your free guide, and explore the range of aarp Medicare Supplement plans. Sixtyfive may get all the attention, but now is a good time to start thinking about how you want things to be. Go long™. Chocolate cravings making a bid for hershey earlier. Our own sarah and a special guest. Id like to welcome back to the show irene, the share man and ceo of mondelez that joins us by phones. The question on everyones mind is what is the status after the rejected offer last month. As you would expect we dont have any to make. And this timing here, investors are in limbo. I think we have a lot of investors and solid quarter in a very challenging macro environment. We continue to return cash to our shareholders and i think our back half will strengthen given some of the investments were planning to make. As far as the results go the deal is interesting because it would give you more exposure to the u. S. North america is a spot on your report again. Its the only place you saw growth. And its areas of continued and in emerging markets and we continue to see the longterm Growth Potential and those markets are quite sizable. Speaking of longterm Growth Potential, entering that market and how popular is chocolate in china and what are you looking for in terms of growth at a time when some big multinationals are reporting a slow down in china and starbucks. Well, longterm opportunity for us there and its just about every other market in the world and its the access of our brand and help the strong profile we have in terms of offering variety of consumption occasions and we see this as a terrific opportunity and biscuit and and you think about it, we just entered the gun market about 3. 5 years ago. So we see a similar opportunity. What about we begin to ponder the after effects . We feel quite good about our momentum in europe and thats an area we will continue to invest in the back half and continue to be up by half a point driven by chocolate and biscuits and we have great hope for the continuing in our time line in europe and significant margin improvement and increase our margins to 18 up 300 basis points. Europe will continue to be an important area of investment for us. I have to ask, youre such a big global company, protectionism is on it. And especially donald trump. We know how he feels about oreos. And does manufacturing abroad. Do you worry about a Trump Presidency . And we will stay focused on what we can control. We have a very robust strategy that allows us to source from a variety of countries around the world and we expand the footprint of those brands so that will be our continued focus regardless of the outcome of this election. I know the margin improvement is a big focus for you as well. Thank you for joining us on the results as always. That is Irene Rosenfeld. The chairman and ceo of mondelez. Thank you. Lets get a quick market flash here. Good morning, carl. Well take a look at a couple of the movers today. Down about 16 early trading after their Second Quarter profits rose about 10 on strong revenues from the Cloud Security business but the Company War