Well get more on all of it. An rue, apple reported report earnings. Strong iphone numbers,. Apple shipping nearly 40 million iphones and with a 16 year over year and better than analysts estimated the rt yeaher including only about a week or so or iphone 6 sales, but cook telling me demand so far for the new iphones has been, in his words, off the charts. Here is what cook told analysts on the call. Today, weve launched in 32 countries, including china, and our new iphones will be shipping in 69 countries and territories by the end of this month, making this our fastest and most successful iphone launch ever. Another high lie of the quarter, mac ships, the best in the history of mac. So what didnt work . Ipad clicking in at 12 million. That was a 13 drop. Consumers dont buy ipads as frequently as iphones and its increasing competition with smartphones from bigger screens. Looking ahead, coke is bullish on his companys prospect. I think this will be the best Holiday Season we have ever had, he tells me. Guys, back to you. Thank you, josh. It is amazing how many phones sold. And the revenue number is like for a quarter and its not christmas. Thats 40 billion dollars, wasnt it . Its the launch of the new phone, which is impressive. Im its a gadget. Its amazing. And everybody already had an iphone. I still bought an iphone. I like the bigger screen. I have to tell you. I know youre not thrilled with the bigger screen. The big, big it doesnt fit in the pocket. Youve got a problem. You cant put it in your back pocket because youll bend it. You cant put it in your front pocket because youre pierce your nads, basically. Thats not the issue. The issue is you will its too big to have in your pants and sit down. How about that . Once again, thats been the story of my life. Chipotle, your entire life has been too big, it couldnt my god. This squadward moment has been brought to you by Andrew Ross Sorkin. Thank you. You were not talking about anything untward at all right now. Apple, remember they introduced everything. And it was exciting and you did one more thing and it was at 99. And it didnt really budge. So its hard to move that stock. A lot of finishes, a lot of love for the stock already. The results that came in were so staggering, just simply the law numbers thems themselves. How do you sell 39. 6 million phones . They didnt even need that. The plans arent up yet. We should close down the patent office. I dont see anything after the iphone that would be as popular. What is the next wave that people will use . That is the thing. Monitor your heartbeat on my watch. But thats not new. Theres nothing and everybody already is Walking Around on the street like looking at the internet or how about talking to it . Just read your mind. That would be new. Nothing would surprise me at this point. Theres swiggels every where are going into the phones to do all this stuff. Something i do understand much better is mexican food. Chipotle, Mexican Grill beat earnings and revenue in the quarter. But as shares fell sharply after hours after the Company Forecast a drop in Comparable Restaurant sales from current double digits. The company says higher beef, higher dairy prices. Diners appeared to shrug off most of these price increases, just like the markets yesterday shrugged off the ibm. Even with, i think when the closing bell range, i think it was pressure. So if its up 20, how much was ibm you dont want to say. You dont want to say single best at the end of the day was tend of the market. At the closing bell. Maybe people should at a say at the closing bell. That is. Wait a minute. Ibm was down how much . 10 or 11 at the end of the day . At the end of trade, yeah. So you can add that in. So the dow was actually up like 80 points, probably. You look at the s p, a nis day for the s p yesterday and down again today. And the nasdaq was up a huge amount, so if ibm in any way if ibm in any way represented technology, why was the nasdaq up 40 points . Because here is what happened. Remedi says shes not sure, but they thinks they have to say its ibm specific. Thats what she told david faber yesterday. I think everybody already knew, didnt they . Why didnt we play drucken millers comments yesterday . Everybody else played it. Squawk on the street played it. It was not something that we really no, i think anything over well, it hasnt been six months. At the end of the day. At the end of the day, a number of cars recalled from potentially problemic air bags has been up to 5 million. That defect has been linked to extended exposure to high humidity. Toyota is warning ownerings that the recall ed vehicles not to carry passengers until theyre replaced. I think this is a weird thats a weird lead story. The headline itself is weird from the New York Times i saw. It looked like a stabbing, but the air bag was the killer. Isnt that weird . It seems like a weird headline. They usually have bigger although i the picture for you. It does. I would have been more serious about i dont know. How do you find out if its in your car . Bad air bags. They made a big deal on the nightly news last night about it. A terrible situation, russian officials are investigating the air crash that killed the ceo of total. Stephane pa drazis has the latest from paris this morning. Good morning. Well, the french raters have decided to open an official inquiry and will send an Investigation Team to russia to assist the local team on the ground based on the early indication the plane crashed at takeoff with a snow removal truck which was operating on the r runway at the time. According to russian investigators, the driver of the truck was also drunk at the time of the accident. In paris, total will organize a Board Meeting as soon as possible to appoint a new ceo. The new ceo will likely come from within total. Will the new ceo use the same strategy as de margerie . He also insisted on the need for Oil Companies to operate in all countries, even when the threat of sanctions from conflict makes it difficult, for instance. He was a strong dvenlder of russia on the back of the ukrainian crisis and were planning to double the production from russia by 2020 despite the sanctions. So the whole question now is about the name of the ceo and the future strategy of the company. Stephane, before you go, clarify one thing for us. You said there was a drunk driver involved. Was this the pilot of the plane or was this this was a truck on the tarmac . No, the absolutely. According to reports we have this morning from russia, the driver of the truck on the runway was drunk. It hasnt been confirmed yet, of course. Okay. Stephane, thank you for that. Okay. I understand now. All right. We had 120 points down, but most of that, probably 100 of it was due to ibm. Purely, do the math. At the end, 87, so it was up over a hundred. And then it rebounded to close higher. Going in now for some perspective, steve sacks and richard steinberg, president and chief Investment Officer of global asset management. A lot of people, ill start with you, rich, said capitulation last week was to noteworthy, that that basically put in a bottom on equity prices. Was that it for this most recent attempt in a 10 correction . We have to settle for 7. 5 , i guess . Yes. I think when the pendulum swings as far as it did, joe, that was reflected in that sub2 number. Now i think the market has some work to do and well probably settle it around the 1920 to 1950 level. Earnings are coming in good. We have to see whether or not the u. S. Is going to decouple from europe. So we did put in about you dont think we need to get back down and test the lows and then maybe go lower to make a real bottom . You think we already made a bottom in this correction . I think we made a bottom, but i would anticipate one more time just to test investors involved. Then again, we could focus on earnings. Earnings are coming up from next year since my last appearance. The street was at about 130. And, tale, earnings are almost close to 132 right now. So the real key will be whether or not the u. S. Dollar strength starts to affect earnings and well start to hear that this week. Steve, what do you think happened last week . Was it the fear of ebola . What do you think caused all the volatility . Are we beyond that now . I think there are a couple of things, joe. Theres been a big chase on for a lot of growth in the marketplace. Youve got ebola fears, all the talk going on in september about a big correction. Didnt happen, right . So ultimately, i do think that were probably closer to the end of this than the beginning. Volatility last week, headline headwinds, if you will. I think all this is about revenue growths more than anything. The other big chase that was going on was the u. S. Dollar chase. I think that unwound last week. We have some risk reduction. The so europe is not trying to or slowing growth elsewhere is not going to cause the u. S. To go into another slow period . I dont think so. I think at the end of the day, right, chinas gdp number was, what, 7. 3 . Europe is a different story. Europe is in a tougher position. Its a fairley precarious position theyre in relative to growth, are they going to slip back into recession. At the end of the day, the u. S. Is economy is stronger to lead the rest of the world and resilient enough that its not going to matter ultimately what europe does. Do you agree with that, too, rich . It seems like were having trouble making new highs. I guess its hard to ever see why the market goes to new highs. Do you think we can do that before the end of the year . Yeah, i think were going to settle in, joe, by yearend at this 1920 to 1950 level. Next year, i think we could be at 2100. Investors, when they get these kinds of huge swings like this, you need some time of healing. And for people to regain confidence, that earnings stocks with a 2 yield in the s p brings more for the 2. 2 tenyear. I think its going to be slips and starts and i think slowly confidence will regain. Europe is only going to grow hotelly at 1 next year. Were carrying 2. 5 to 3 year. So the only way that earnings continue to work is if europe doesnt go into a deeper recession. And it would be reflective of u. S. Companies. We repatriated a lot of our International Holdings to be back in the u. S. Because if theres a rebound globally, we think clients will make more money in the u. S. Than they will overseas, especially if the dollar starts to strengthen further. And the fed leaves, steve, and Oil Prices Stay where they are so maybe that offsets each other . I think it does. I think thats the offset to the oil in the economy. I think at the end of the day, the unwide winding of the fed balance sheet, its a big uncertainty. But at the end of the day, we have enough clarity on whats going to happen. I think its a timing question. Okay, great. Rich, thank you. You dont need to be back here. You dont need to be in new york. You can be you can do all this in ft. Lauderdale . I love seeing you and i am in new york. Oh, youre in new york now . No, i wish i were. I would be visiting you. I will loaf you on one point. I wish i had taken andrews advice to start to learn how to meditate, because it would have helped over the last couple of weeks. There you go. Thank you. And you should. Have you we can talk about it during the commercial. Well, i take a 15minute power nap instead. Thats my meditation. I met the guy that you meditated with, partner. You did . Yeah. Bob long. And i asked him about it, are you sure when im in that neglecter world of a nap, are you sure thats not do i have to the a word to meditate . And what did he is . He said its different. And i told him i was mad at you because you didnt trust me enough to tell me your word. My mantra . Yes. Youre not supposed to tell anybody your mantra. Did you ask him why . I want to know your mantra. I did not even tell my wife my mantra. I agree with that, but you can tell me. This says a lot about our we think to ourselves no. Now the story about the passing of a fashion icon. Oscar dela renta died at the age of 82. First ladies Hillary Clinton and laura bush both wore his gowns to their inaugural balls. The cover of the New York Times has a picture of him, called him the designer who stars and became one. It was peter tiels book party. You met him there . Yes, and arianna was a big meditator. Thats one of the places i go. Yeah. And he accosted me and said that he was well, not accosted me, but he said and he mentioned it. Okay. I dont know. Well get you going on it. Well get becky going. We will do a show all squawk meditation. Its not an elitist . Its not sort of the upper no, no, they do it in jersey. Of all places. Wow. What do they meditate on, the factories . Lets talk about apple. When we come back on mock power. Well be dialing up apple, the break down the results and the Holiday Shopping season. And the verdict is in for oscar pistorius. He was sentenced to five years in prison. Five years . For the negligent killing of his girlfriend. She was killed last year when he fired reef ya stein camreef ya steenkamp . He allegedly shot her three through the bathroom door. Apple beat street expectations on both the top and bottom line, and reported a whooping, as joe would say, at a 39. 3 million iphones have been shipped. The one downside . Ipad sales falling 13 from the year ago quarter, selling just 12. 3 Million Units. Joining us now to break down the results, will power, Senior Research analyst. Good morning. Good morning. You thought the earnings were great. I still dont understand the ipad thing and whether thats longterm going to be an issue or whether we should just forget about it. The ipad weakness has been a continuing trend for the past several quarters. I think in a lot of respects, its anybodys guest. Probably a flatter revenue stream moving forward the last several quarters. The good news is, they beat handling the mac side. What it suggests is expectations were the iphone 6 plus might start to at this pad, youre seeing mac and tim made a comment on the phone that hes just as happy if people are buying mac. Whats the difference in margin differential between a mac, a laptop, for example, and the ipad . That margin, that differential probably starts to close. I think on whole, you know, at this the ipad margins have been whole overall. Tim made a comment on the call that got him some attention, which was when the iwatch finally does arrive, in terms of how those numbers and Sales Numbers will be broken down, that he doesnt plan to issue them, if you will, in an individual column so you can see it clearly. He says hes pretty much in the other category, with all sorts of other stuff. He says hes doing that for competitive reasons, but theres been questions about do you think hes trying to tamp down expectations or do you think he really is worried about what samsung and google and everyone else are going to think . Its a good question. I think that did raise some eyebrows on the skaul. I think the reality is out of the gate, its going to be a small segment and probably not big enough to report. But it will be interesting to see if they actually break out the unit. If they start to succeed, which we expect they will at some point they start to break that, im not reading too much into that. And he does it ahead of time. If you do it before you have any idea what the expectation res going to be, its one thing. The ones who pulled it, like a walmart or a home depot or something, theyre always good in the period of bad Sales Numbers. So pulling information when things arent going well. Will, your expectation as an analyst, what are you modeling for the watches . As we look over the next couple of years, were looking close to 10 million unit s witha slow launch, starting at 10 million and growing gradually from there and reaching 20 millionish in the 16 time frame. Really quick, impasse, saw a lot of people using it already. Thats right. We got out and tested it last night, and it worked seamlessly for us. I think thats a nice opportunity. I think its a revenue driver for them. How much iphone 6s and 6 pluses do you think will be out in the ecosystem by lets say june . Obviously, it only works on those phones. Does it work on a 5s . I think its just 6 and 6 plus. Well, the key is going to be the 6 Going Forward. I think there is some backwards compatibility. I tried it with 56 plus last night. Weve used it with the 6. If they can sell 64 million, you know, this december quarter, which is what were speccing, youll be up to 150 million plus. So that will help. Thank you for joining thus morning. Appreciate it. Thank you for having me. Coming up, more concerns about a global slowdown. Chinas growth falling to a fiveyear low. Levels not seen since the financial crisis. Find out whats dragging china down at this point next. And then five dow components getting ready to roll out results. Will the numbers push and pull the markets this morning . As we head to break, here is a look at yesterdays winners and losers. Theyre coming. What do i do . You need to catch the 4 10 huh . The Equipment Tracking system will get you to the loading dock. There should be a truck leaving now. I got it. Now jump off the bridge. What . In 3. 2. 1. Are you kidding me . Go. Right on time. Right now, over 20,000 trains are running reliably. We call that predictable. Thrillingly predictable. 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. You know how fast you were going . About 55. Where you headed at such an appropriate speed . Across the country to enhance the nations most reliable 4g lte network. Hows it working for ya . Better than ever. Howd you do it . Added cell sites. Increased capacity. And your point is. So you can download music, games, and directions for the road when you need them. Whos this guy . Oh thats charlie. You ever put pepper spray on your burrito . I like it spicy but not like uggggh spicy. He always like this . You have no idea. At t. The nations most reliable 4g lte network. Get to the terminal across town. Are all the green lights you . No. Its called grid iq. The 4 51 is leaving at 4 51. They cut the power. Itll fix itself. Power