Good morning, welcome to squawk alley. Were at post 9 of the New York Stock Exchange joining us this morning, re ric executive editor kara swisher joins us a lot to talk about including Apple Earnings after the close tim cook tempering expectations especially when it comes to iphone sales as more Customers Put off buying new devices in anticipation of the tenth anniversary iphone which may arrive as late as apples december quarter kara, a lot has been written about this particular cycle. Both the features and phone and the timing of the release. What are you going to be watching for tonight well, i think nobody is paying attention to this quarter. Theyre anticipating the next quarter. Projections will be happening in the december quarter thats whether they start selling the phones there is some stories it will be release the later and theyll be in limited quantities. I think everyone is focused on the phone and not you know this is the midyear trough as dan wrote today on recode. But i think everything is about the next phone and how much theyre going to sell and how much they anticipate and how much theyll have available. They do rack up a lot of gains in the last month. The christmas month for this iphone which should be fascinating to see what they say about it some odd cross currents in the language around what is happening. On the one hand, analysts like to point out look at all of these people who are right for an upgrade who had phones for go years or longer. Then on the other hand, tim cook is saying well dont expect much from this quarter. Can we really have it both ways . Even though there are a bunch of old iphones throughout that people have to upgrade so the quarter should good or people just are not buying iphones like they used to im anticipate thchlgt ive had a phone for the same phone for a while. Im not going to buy until the new one is out but i will buy it so through have it. I think this quarter is really not the point, as i said its whats coming next. I think theyve got a lot of other things arent watch and the home pod and things like that but thats also thats so much peripheral compared to the phone which is always been the juggernaut at apple and its going to be in the next in two quarterers from now. Not this quarter but next quarter. While were speculating on what we can expect from the new iphone, kara, what are you hearing and what are your thoughts on this idea about apples willingness to push a 1,000 plus high end smart phone . Well, i mean, its the tenth anniversary phone. Obviously apple changed the entire equation when they entered into the iphone. You never know what theyre going to do. They have a group of people that like the phone its a very expensive phone. There will be subsidies, presumably but i think its an expensive phone. A lot of people are using their phones i know i use it pretty much for almost everything now. I was out yesterday in palo alto i used ut for stories. I used it for everything i was struck that i didnt touch my laptop for 24 hours which is interesting to me. So the phones matter a great deal i mean, at least im willing to pay up for it if its a critical device in my repertoire for my job. So well see but it should have a lot if its going to be that expensive care yashgs youve been all over the executive search for ubers sikceo. You told us that meg whitman would not take that job. Your column jam packed with news jammed. He said hes going to seek jobs and now dede continued this partnership. Who is going to want this job . Wow i dont know do you want it, carl i dont know im okay. I suggest its scaramucci now that hes free i dont know i think that its a really difficult thing. Theyre down to a few people theyre all men who theyre looking at in the finalists. I have not been able to determine exactly who those are. Ive gone through i literally called almost every possible ceo in america at this point to find out. One is supposed to be a person of color i keep getting little clues. But, you know, theres about three or four finalists. I have some thoughts but i will write them on recode once i confirm them but it will be interesting to see whos going to take on this because of all the problems, one, major one being what is travis you could ens role Going Forward . And when he is done in the past . I think thats really i think thats a focus of everybodys talking to uber is concerned about that issue kara, is there a risk of this becoming sort of twitter all over again in a sense of a some what dysfunctional board starting to steer what happens with the executive and thus, you know, the new cycle with the economy . I think the problem is that it has been built around this founder. The founder is quite controversial on lots of things. Then its attached to all kind of xanldals. Its not just Sexual Harassment xanld scandals, whoever gets this company has a basket of trouble that they have to work on. Obviously at the same time, they dont have much of a staff. I mean many of them, even though this excellent people at uber, most of the senior positions remain empty so youre going to have to have the board step in in some way just because issues of management seessentially. Im trying to figure out what google is doing in this. Alphabet is suing uber over issues around the one of the employees going to uber. But at the same time, google has a major invest ment. I think its 300 and some Million Dollars it in. And someone at google said to me, who do we call there they dont know. There is no cfo. There is no pins principal pers. Its a fascinating company with a great product but a lot of as i wrote in the piece, a the hoff hair on the dog i was going to ask you whether you have any intel from inside the company about what actually is going on there since he left. Whether thats been good for morale or difficult to have such a rudderless ship. Well, mixed a lot of people love him theres a bunch of employees that signed a letter about it. Other people that driving him crazey hes still in there. The senior employees dont know what to do because hes still involved even though he probably shouldnt be and, so you know, theyve been trying to put the word i used one of the quotes i used from someone close to the board is theyre trying to put guardrails around him but he keeps driving right through them in a driving metaphor but its a really problematic situation. And they got to get a ceo in there even as the rivals get more funding, they join up all kinds of things. The world doesnt stop because uber is in a, you know, a meltdown essentially and its, again, its a great product. And its a Great Service that people love. And so it should, unlike twitter, the sky is the limit nor company. The xwe can they get out of their own way . And well see. Well see if they can. Obviously, if they get a great ceo, it will make a big difference for them. Care yashkara, the idea that shot ceo given guarantees about autonomy that travis wont try to make another run, do you that i is unlikely . That kind of a carrot . I just dont believe it i mean this is a very aggressive founder. And they have not side lined him. I mean the jobs thing is not a verb, it was interesting jobs went away for 12 years from apple. I think its something like. That im not sure if im completely accurate. He did next and a bunch of other things and then he came back to am a mature man. Travis is over 40. I think this is his baby and he doesnt want to let it go. The question is will he hurt it by holding on to it so strongly . Or does he think hes the best person for it so he wont leave . Its a really interesting psycho drama going on there at the same time, this is a company full of employees who need a leader. And need a lot of leaders, not just one and a team thats really the critical part. Like you compare it to apple, april sl such a team of people apple is such a team of people. Google is a teechl people. Facebook is an amazing team. Theyre so cohesive. And this group, i dont know i compare it to the Trump Administration theyve got like, you know what i mean theyre getting in their own way a lot. And well see if they can get themselves a psychologist and work it out and then move along and do what they do which is provide a Great Service to consumers. Yeah. Anyone who wants to understand the search as it is put out the major call a few days ago. Thank you, kara swisher. Thanks a lot. I have an update on Procter Gamble the Company Filing an official proxy announcing the date of its shareholder meeting. That is october 10th and urging investors in an extensive letter to Share Holders from the ceo, david taylor, to vote against the proposal to add nelson peltz to the board. Here is the argument that we picked out noggin kreme nothing incremental the why not excuse appears to be the extent of the reason for Board Membership which the company says is simply not sufficient it outlined a juicy tick to being of peltzs engage ment over the last few weeks and months with management and the board and some cnbc scoops along the way and new revelations about a dinner, for instance, between the Ceo David Taylor and nelson peltz all sorts of conversations between peltz and the Board Members and outlined a friendly and constructive dialogue between the company and between this investor which ultimately is resulting in a nat ot so friendly fight over peltzs bid to joint board further escalation here. They feel like they have an argument they lay out more specifics one of the advisors is a former cfo that hasnt been at the company for more than a decade peltz can combat this in a white pape cher he paper which he is prone to do. This whole idea that hes not offering increment alval advices going to be the question with the stock underperforming. Yes, a lot of analysts are aplaugd the recent earnings release. There is plenty to pick through there like the fact it was built on cutting sg a cost and advertising, digital advertising. Something that a lot of people think is a nono for Consumer Companies and lots of other ways to pick it apart so this continues and its heading for a vote on october 10th clearly both sides are reaching out to shareholders. Its going to be costly. And going to get a little messy in the process from which is awkward. Its been friendly so far. Yeah. Stock up is almost 5 in a movement outpags the s p 500 well see what happens from here on out when we come back, a lot more on this mornings rally as the dow closes in on a new milestone 22,000 is close lln luion rkng in on the 2 biiovaatma with a new round of funding well talk to the cfo when we come back. Your brain is an amazing thing. 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For more, lets bring in jeffrey klinetop from Charles Schwab gentlemen, good morning to you good morning. The fact that the dow that is in now record territory and its been driven by some old school stocks like boeing and chevron right now. What does that tell you . Well, it just shows how broad the rally s i think some people worry about maybe that the internet retailers run ago way with the entire market the truth is this is a broad rally. A lot of the stocks that participated and well based in funnel fundamentals the all country world index, the vast majority of those are showing year over year gains in earnings and it is lifting stocks across the board. Very much so global Multinational Big Companies like the one you mentioned. Yeah. What did jim cramer say . Boeing is the new thing. Does that mean its time to make Portfolio Adjustments . I dont think so. But the leadership youre seeing or more importantly just the level of the dow and the market overall sitting at records tells us that weve been through a tremendous time. Investors have become more willing to take on risk. Asset prices are up. We think that net worth for household United States is going to get close to 100 trillion by the end of the year. But for us, our data seems to suggest that things might be set to moderate somewhat so even though the economy is growing at a very good clip and reflected in asset prices, we actually took the money off the table just thinking that a tlost good news is likely to price in and weve gone from an overweight position in equities to a more neutral position waiting to see what happens next yeah, jeff. How important are Apple Earnings you think going to be . Its the biggest market cap certainly and weve had quite a run from 21,500 up almost to 22,000 in the dow. And are Apple Earnings going to matter i think for apple, i think for all the companies in the dow, earnings really do matter weve got valuations above average here weve seen as just pointed out a pretty solid rally remember this is the second solid quarter of Earnings Growth for Dow Companies as a whole very important they deliver. That is essentially what is really lifting this market its not about politics. Its not about the fed its really not. And more, its really focused on the earnings numbers thats why this quarter companies do have to deliver and well see later today what apple shows us kevin, you look for some moderation is that going to be the result of any one event or anticipation of an event . Was it a dead ceiling thing in september . Does it have to do with Balance Sheet normalization or Something Else no. I just think this is a natural ebb and flow of a company that gone through turbulence and youre dealing with structural things that will be a drag for a while. So you still have very low productivity growth, labor force is still an issue. Capital. Theres a big question mark as to what happens to growth and call tall formation Going Forward from here. So the 3 number were seeing on the economy now, were very happy to see it. It explains the growth, it explains the pickup in asset prices but were not convinced that those structural issues have been addressed and consequently, we think its more likely that this is a this is a temporary situation and we moderate back down towards the 2. 5 growth rate ill say one more thing. The earnings expectations for next year are very robust f we dont get those numbers, those numbers have to come in too and that could affect equity valuation. Will is this constant question, jeff bshgts Federal Reserve and will they kill off the recovery by raising Interest Rates and now starting to shrink the Balance Sheet. So far its been pretty smooth sailing in terms of fed policy how much of that is a risk does that hurt well, yeah, its a genuine risk but its probably not a risk for 2017 it may be a risk for late 2018 as we got quite a few more rate hikes under our belt the yield curve flattens a bit more and Credit Conditions begin and financial conditions begin a lot more than they are now we still have the bank of japan pumping liquidity and pouring more punch in as the fed tries to take that punch bowl away i dont think its an issue in the next six or 12 months, but further out, absolutely, expansion is going to die of old age number doubt thats when this is coming but still a year and a half away thank you well leave it there when we come back, we have to talk some under armour well get the stock reaction off the lows still down 7 . 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Were watching shares of under armour today the stock down 7 . The company reporting the qu