Fox sports had an electronic failure that caused the delay in the game during the 4th inning but little did everyone know the game would go another 10 innings. The game starts with a rare inside the park home run. There it is right there. Putting the royals up early. Dont often see that. The mets would come back though and they would lead until the ninth when the royals ended up tying it up. They did finally win the game on a sack fly. 54 royals. Game two is tonight. But dont watch it because tonight is the debate. Since there was a stolen base during the game taco bell will be giving away a breakfast churchwrap on november 5th. The News Reporter is me is watching like wow how much ad revenue are they losing with this power outage. The four minutes and then the embarrassment. I guess the first time on the big stage that youve had an issue. Remember at the super bowl in new orleans, remember that, a few years ago right. That was a much longer. More than half an hour. 40 minutes. So it happens at the worst possible times sometimes. I dont think they lost money during the super bowl when that happened. They might have even made marginally more money because they kept running ads. So you have to think of it as opportunity. Unused inventory. Thats why im not ceo. The other main event besides tonights gop debate which starts at 5 00 p. M. Is also todays fed meeting. Were hours away from a decision on Interest Rates and most economists not expecting a change this time around but the sentiment, the statement could provide clues about a possible move in december or just more guessing games about a possible move next year. Either way the markets will find out. The futures are suggesting well get a positive open. Not by much. The dow would open higher by 39 and the nasdaq 16. 5 points. Oreos had a famous tweet they put out and they were able to create a viral situation. Really . Well go back to that later. Apple posting profits and revenues that topped expectations. Earnings per share were 8 cents ahead of estimates. Revenue topping 51 billion. A couple of other metrics. They sold more than 38 million iphones. Came in a little under the expectations. People expected just a marginal amount of phones to be sold. More iphone shipments to china climbing 87 . Sales 9. 9 million versus 12. 3 million and apples mountain of cash now officially climbing to 206 billion with a b and thats up from 33 a year ago. Apple remaining conservative on First Quarter revenue and as for china tim cook sees no signs of a slow down. More of this in just a moment with analysts that tried to figure out what it all means. Still on the one hand they were able to say after what is an incredibly tough comparison from a year ago theyre going to grow this coming quarter they think, right . And people were worried they werent going to grow. But its how much youre going to grow. The real question is and we, yesterday spoke to the number one ranked it hardware analyst on wall street who suggested exactly what in the context of what youre talking about that apples best days are behind it at least from the growth rate. Not a shocking statement to make because youre trying to sell a whole bunch of phones into a mature phone market but you have to reset your expectations as an investor as to what kind of numbers you expect to come down the pike. Even based on law of numbers theyre so huge. The fact that they could put up revenue and profit gains like they did last night at the size that they are still now but going forward, theres talk of maybe seeing a first decline in iphone sales year over year. The one figure i found fascinating was the smallest one on the sheet which is other products. Iwatches. This is beats, this is apple tv. 3 billion. Not a bad business but on a relative basis. That was growth of 60 . But when you think about how you diversify your business and can you, law of large numbers, even if youre killing it and im not sure the watch is just yet, its hard to see how you get there. For apple you sell 3 billion of a product and were like like any other company that would be great. The other thing that really jumped out to me and i think i got this right that they said 70 of iphone users still have the 5s or older. So obviously youre eventually going to get the upgrade cycle to strike in. Its just a matter of are people waiting longer than they normally would. Do they not believe the 6 or 6s has enough features on it to upgrade now and the neck nolg wasnt increasing that much. How about the fact that they can charge more for the phone. 670 a phone. The average selling price sup. That gets your margins. Even if you dont get the upgrade cycle your margins can help improve the bottom line and you can sell in china and the vast majority of the population. Expectations get extraordinarily low or people think that the bloom is off the rose they come back and they surprise you in a big way. I completely agree with you but at the same time is there a compelling reason to buy the stock now . Were going to have an analyst on in just a minute and we can talk about that more. Twitter reporting after the bell. Yesterday the company beating on the top and the bottom lines but the stock getting crushed after a weak revenue outlet. The social networking site reporting that average monthly users only gained by 3 million to 307 million for the quarter. Shares of twitter this morning, you take a look in the premarket down about 10 or so. So theyll be closely wachd throughout the rest of the day. You guys want to spend a second on this one too, this was a surprising number. I think i was reading sort of a recap from our news desk and the gasp that julia had when she saw the 3 million number because it was disappointing. It was so much smaller than people expected and that remains the key issue regardless of any other me trick you look at, its monthly active users. Twitter cannot grow its user base. And how do you charge and get more advertising revenue down the road . You cant meet your targets if they dont get that number up. Okay. Theyre monetizing mobile. Their revenues are nice. They cant grow their maus and thats been the problem for this company for at least the last few quarters. Twitter has lived successfully in this bizarre echo chamber of the media. Because media people love twitter but the rest of the world doesnt love twitter. They dont understand thousand use it. It has a marginal utility to them and its hard to get on to it. If you think about sort of just the barrier to entry. You can sign up. Im not saying its impossible to sign up. I would tweet more accept its a lot of work. If its that tough for me that loves it. Theres undesirable characteristics and qualities to being a regular on twitter. Just block. Moments where its like a news service. Moments yes but i saw this thing called polling so you can poll your users and ask them a question. They can improve the experience all they want with new features and bells and whistles for the folks already on it. More people. Voblgs wag agalkswagen with loss. It was the First Quarterly loss in 15 years. Taking a big hit as expected due to costs related from the emissions scandal. Barclays naming the new chief today. Appointing jes staley to the ceo position. Big news over in the u. K. Lets check on the markets so far this morning. As we showed you the futures are suggesting a positive open. Dow higher than 44 points. S p higher by 6 and nasdaq higher by nearly 19 points. Speaking of europe, lets show you whats going on over there. Sque germany is higher. France is higher where is greece . Im here today and no greece on the board. Ftse is higher. Thats so last year. It was on the board yesterday. It was . It was. Lets show you what happened in asia overnight. Japan was higher by. 6 . Price of oil. Wow, 43 handle on wti. 43. 45 per barrel. Getting hammered lately. Yeah, i know. His nightmare every day on the screen. 2 on the ten year so were above 2 on the ten year yield t. Dollar is weaker across the board. 110 for the euro. The price of gold at this hour is higher by 6. Okay. Were going to go back to apple. You can never really get enough. Apple earnings surges. 48 million iphones last quarter up from 39. 2 million just a year ago. Here to break it down is ed lee and Senior Research analyst at jmp securities. Thank you for being here. I saw you yesterday, like my fifth hour on tv. I was a little groggy at that point. Help us just understand this, now its basically a phone business. Everything else seems to be irrelevant. All the other products are side shows. Give us the reason to either buy or sell the stock. Youre not an analyst in that context but just in term of how you see where this company is going to be a year from now. Look i think i heard earlier you guys talking about can it sustain growth, will it still be that kind of a company . Yes. The u. S. Market is saturated in terms of people that want to have iphones should already have them. The International Market is where theyre going to see the growth coming from, right . That said though and this is the point i was making earlier the last time i was on the show, we still we still need to see from am whats next after the iphone. Thats the story for apple right now. Its a one product company. They dominate. They win. Whats after the iphone . We dont know. Same thing with google. Google is a search giant. Its massive. It owns that market out right. Whats after search for them . So when it comes to am we still dont know what that is yet and trying to answer that question. But part of the argument at least over the past two or three years has been it doesnt matter what the other products are. As a phone company its a great company. Is the phone enough . For the time being the phone absolutely is enough and i would disagree. We do have hints about what could be next for apple. Open ended opportunity in new media for apple tv. Apple car coming down the pike at some point and theyre gradually but deliberately in the enterprise. Where you doubt apples ability to execute at your own peril here and we should take notice of the fact that its growing at almost a 30 clip here in these saturated markets with asps and Gross Margins rising. So the competition is virtually nonexistence here and with their Balance Sheet apple can do virtually anything it wants. What do you say to folks that say all of that is great. Agree with you on all of those point but at this point the growth rate appears to slow. Even by apples own admission. We say were going to grow but ultimately were getting back to Single Digits here. Whats the compelling reason to buy the stock now . The compelling reason is heres a name outgrowing the name of Global Economic expansion by an order of magnitude and trading at a discount to the mean market multiple by about 50 so the question investors should be asking themselves is what are they waiting for here . So the Value Proposition is there and this should be the time that they believe investors should be putting money to work at apple. Are you you disappointed by the other product lines and the other pieces of the puzzle . Beats . Well, its fair to say that we always want more but one of the things that i like about apple is that it buys its times in markets many of its competitors prematurely entered the gear market with inadequate products too early. So biegd its time until the technology is ready. Doing things organically is very encouraging profitability but no growth. Apple is doing both and it still has a lot of dry powder on the Balance Sheet to innovate in so many Different Directions. Its really an exciting time for the company. You want to address this question of whether the best days are behind apple . You know what, i think no, i think they have a lot more room to run. They have Growth Potential internationally. Even if assume all of that is offshore which its not theres a lot of money to play with here. They could do a dividend boost or a buy back, in addition to that theyre going to do that. They do one of the biggest buy backs in history. But we want to see big picture. We want to see big vision. So they could take that money and buy tesla or uber for that matter or buy both at the same time and get into this car business in a real way and let us know what to look for in the future. Do you want them to use the money to buy something . Thats been a question for a long time. Besides beats thats the biggest thing they ever bought. We want to see am innovate and whether it does that by deploying the cash on its Balance Sheet to buy something or just return that to shareholders while it does things organically given the rate that they can invest in and again what we said earlier on the program, theres really no competition to challenge apple right now so it has a ton of flexibility to innovate in a lot of Different Directions organically so its up to am what to do with it. The key point being that it can. So from a competitive standpoint when it comes to investor dollars, money has been going elsewhere. Amazon to google and other big tech stocks which outperformed apple year to date, why is that . People got themselves very worked up in and worried over the quarter with so much of the growth reliant on china and what we saw is that apple absolutely delivered on growth in china. Sales virtually doubling year over year. We know theyre up to 25 stores going to 40. So still a very large opportunity in front of them for china so we recommend investors dont fear that but look toward it as an opportunity. Yes theres room for money to come back to am here. Theres still a good deal of Economic Uncertainty out there. Apple we would argue is a safe port in a storm. Theyre already facing head wind with the Dollar Exchange rate and still powering right through that so we like it. If youre looking for more lef raj o leverage we like suppliers into apple like sky works that have already been punished so theres more beta in youre looking to mb aggressive. Well leave the conversation there. Thank you. Thank you. Appreciate it. Okay. You guys are look at me. Walgreens and rite aid agreeing to a deal to create another mega drugstore chain. Bertha joins us with the details. Another mega drugstore chain and another Mega Health Care deal. Weve seen nearly half a billion of them. Half a trillion of them this year. 500 billion so far. This deal values rite aid at 17. 2 billion when you include debt. Not a surprise its happening. Rite aid has been lagging. Its been a lagging number three in the pharmacy space and environment where having scale is increasingly important between rising drug costs and tougher reimbursements from payers and insurers and pharmacy benefit managers so its no secret as well that walgreens was on the hunt for acquisition. Shares surged on the news yesterday. The drugstore chains shares had fallen 30 since last month after it lowered its guidance to account for its own acquisition of invision far ma that it bought earlier this year. Walgreens ceo who became the ceo officially in july but had come on board in january through walgreens acquisition made no bones about the fact that there needs to be consolidation in health care and in the pharmacy space and his desire for an acquisition. Question now is how regulators will perceive this deal and what kind of die vestments wall greens will make to secure approval. Walgreens already has more than 8,000 stores in the u. S. Rite aid would add another 4600 with overlap particularly in california, here in new york and in ohio. That would dwarf the number that cvs health has. About 7800 locations. But dont forget they also bought up 1600 pharmacy locations earlier this year. Theres been a lot of movement in this space they will argue this leaves plenty of competitions from the likes of walmart and super market pharmacies not to mention the mail order types like express scripts and we all need to focus on scale and beating back what were seeing from big pharma. Yeah, they got to have more and more leverage and size. If you have a huge number of consumers you can ask for a better price. All right. Thanks bertha. Coming up what the markets are watching today is that the earnings or the fed anticipation are waiting for cnbcs debate tonight. That discussion is next. Donald trump is no longer at the top of the polls. How the candidate is reacting to being in second place. And as we head to break, check out this day in history. Will you get your numbers up, please . Will you get these numbers up . I promise you ill do such a good job. Will you get the numbers up iowa, please . I am second. Thats not terrible. But i dont like being second. Second is terrible to me. I knew he didnt like being second. Thats donald trump second in the polls to gop front runner ben carson. Nationally and in iowa. They will both be center stage this evening at cnbcs Republican Debate and our coverage begins at 5 00 p. M. Eastern time. Joe and kelly hosting the preshow and then becky, carl, and john harwood get to grill the candidates. Thats because they call second the first loser thats why he done like it. Yeah. Some fireworks tonight. Well see. Hes been telling people that hes a winner in everything. When youre in second you dont have that narrative. All right. The fed will end with a statement this afternoon and pay close attention for clues about a rate hike this year or next. Its good to see you this morning. Good morning. Whats the fed going to say today . Nothing. Nothing we havent heard. Theyre going to go to same where were looking at the data. Were probably not going to we not going to do anything until early next year. Theyre not going to say that. Theyre not going to say that but the markets will say great and youll see more money flowing into m a and its easy money out there and you get a lot of liquidity out there so the market will be volatile. Do you think december is still on the table . No, december cannot be on the table because thats the time when most of the people dont participate in the markets and if youll do that in december you might cause a year end thats going to be more volatile than the past couple of months. What about the drum beat that the longer they wait the harder its going to be and the more dangerous it snchts we waited 6 or 7 years, whats another two months for them and i think you got into early next year then you could say we had a little more clarity and we can go forward. Right now you still have the china issue, you have still other things. Why is that going away. To your point the fed survey showed that point. Its not priced in or at least the participants he asked said its not priced in. It would be a shock to the market if they did move. It did and you see