Beating consensus, short of expectations, but cook says hes not worried. Microsoft missing consensus. Saying the dpaen is still in the midst of a bold and disciplined effort to focus business. Boeing and delta beat expectations, deltas ceo on this network this morning commenting on the middle east. Pepsi came in on a streak despite a decline in carbonated drink sales. Apple had earnings of 1. 28, a nickel above. Just shy of consensus. Ipad sales came in low of expectations, same for the current quarter, and last night, tim cook spoke about sales on the Conference Call. Sales met the expectations, but they did not meet yours. Our sales were gated in part by channel inventory and market softness in certain parts of the world. Two consecutive quarters up double digits, 12. 7 this time, down 9, and two years ago, ipads up 9300 . Right. I want to call this is transition story. We watch tv shows, we watch them on this series, like, that goes on, say 13, 14 show, and theres an episode where nothing happens, but a transition episode setting up for the next. This quarter was a transition quarter. If you make a judgment on it, you miss out on iwatch, the giant new screen, the huge bill, on what the ibm deal will do. Come back, say, you know what . Given the fact of transitions, its interesting. Sales, 35 million, another 13 growth. I like the fact that brazil, russia, india, china very strong. 94 mac, selling well against an industry not doing well at all. You have the highest growth rate in zent quarter so people buy the stong. People focus on new products. The larger screen, 80 million iphones preparing to potentially produce. One would expect the bigger that screen, perhaps less reason on the mini ipad front to buy that that the sizes are not different unless they are on that front as well, also an expectation. I think one of the analysts yesterday said they consider this new large screen phone its own platform. All right . Its not going to be a phone, but a new category. The samsung killer and ibm deal is a blackberry killerment company on the offensive in its quiet way. Job was never afraid to canni l cannibalize product. Cook never afraid to cannibalize product. The call was assertive, describing the good capital allocation, and not beating the chest, but i think the reason why im putting it like this because i think people want to they people want to sell the stock on headlines. As there was with microsoft, the stock down a buck and a half, no, this is a quarter a prelude for good second half. 164 billion in cash. Yeah. I know. Enough for 500 dollars for every man, woman, child, in this country. And the new ceo. They have borrowed against the cash pile, outside the United States which we talked about many times, which gets us into other conversations about how apple is taxed and inversions, but thats confers for later in the show, but they barred against it, returning the capital, but it grew. Last quarter, of course, First Quarter is shrank a bit. This was up, what, over 14 billion. Still at 26 billion. Still 26 billion domestic. The scary thing is they could buy back 5 billion in a quarter. Doesnt matter. No. Doesnt even matter. It doesnt. Thats bigger than the vast majority of companies. Put it in perspective, say, all right, why isnt it at a hundred bucks . The answers not a hundred bucks because why not at 90 . People are afraid to sell ahead of the launch. Too much excitement. All right. Lets talk microsoft as well as we said also out with its results. It did miss the streets estimates in terms of quarterly operating profit. That was 58 cents a share. Bottom line impacted by expenses to incorporate the hand set business. Revenues above forecast, add in revenues, adding in losses. They said growth in the cloud based offerings, and the ceo on last nights Conference Call. We accelerated our commercial Cloud Business to a 4. 4 billion dollar annual run rate. And perhaps more importantly, we made bolden disciplined decisions to expand the call and Platform Company for the mobile first class first world. Theres a lot of positive things. I spoke to a couple large shareholders what they see in the enterprise part of the business, real business, cloud part of the offerings. Nokia, why obama why that deal was allow to oture when you think about it p zblp worried about earnings per share 1234. No, what a waste. Problem is by 16 they break even. Hes the problem with trying to understand this. The whole thing is that its x, everyones accepting that. The reason why is because amy this was the cfo, and the key line in this whole Conference Call comes when they go, weapon kept focus on rigorous operating expenses. This is the line i love. We grew revenue 9 , more than twice as fast as operating company, that grew 4 . Holy cow. Right. Thats where the focus, i think, the hope of many investers is that continues to be the case. On the Balance Sheet. On cost. On maybe future capital returns as well, but on that, that differential you just described. Being run, clearly as a country club and now a ymca camp. Just, you know have as much fun at ymca camps, by the way. We, e like them. Cloud is supposed to kill the margins, thats what everyone is worried about. Obviously, they its not happening to them. This is a quarter that went from people in the head sines saying, wow, what the heck is going on here, to say, you know what, amy hood has your book, dell does interesting thins, but clark has your back. I like this call zplp good to moe, boeing anticipatories at 224, beating forecast, and dow raise the full year guidance by a lot, actually. Citing strong jet orders, and delta above consensus as profits expand my more than four points. Boeing, commercial margins 12plus. Oc operating cash flow down year over year, going from Building Three dreamliners a month to ten dreamliners a month. Pouring a lot of money in. The guy up that you did get is from margins and tax rate. People dont like that, revenue numbers in line light. I step back and say, look, the stock up a couple bucks, still down, an under performer. People are not going to like the quarter. Sounds crazy. They are not going to like it. Despite that full year view. 790 to 810, and now 715 no, prior 715, 735, and now 719 to 810. This is a company having trouble analyze earnings. That is extraordinary. As soon as you saw the revenue number was in line, as soon as you read that it was taxing and Free Cash Flow was no change. Say, okay, they dont have a right yet. Do i think the stock should be hire . Absolutely. Is it going to be hire, no. Delta, beats by a pepny, perceives up 5. 7. Factor is 86 3, if the airplane feels full to youings you know why. A year ago, 84. 8. What a great interview on squawk, and is it going to soar . You have a beat of 10 cents, using that airlines, used to them beating, but they have integrated, bought a ship in order to move oil. Got their own train or refinery. Your swing factor is that you need to keep your fuel expenses down. Why i go back to what i said about boeing in the quarter is because you need fuel efficient planes. Delta did the most of any airline in the world. More upside. Terrific interview. Speaking of the interview, he mentioned this ban, this 2446 ho 24hour ban, and they will not fly again today, listen. We routinely at delta establish nofly zones. Today, for instance, were not flying to israel. We will not allow a flight to be dispatched over iran, iraq, ukraine, seen ya, afghanistan, or north korea. We make the decisions and have an obligation holy independent i any geopolitical or regulatory mandate. Its been more than 20 years since we had a ban. Benjamin netanyahu called secretary kerry saying reverse this decision. Obviously, this hamas is impacting trade in the economy. Its faa. Do what the faa says, right . As for the airlines, they are an investable sector. It was based on oil prices, and i assume capacity will come back and labor. Capacity will come back, but right now, constrained. By the way, you cant talk about boeing and build planes that quickly. When you have the structures that broke or changed the agreements, you had deals done, consolidation made it so you think some of the theres competiti competition. Low cost carrier entrance, yes. We dont have it to get a new plane. This is what what happens right now. Go to the break, see how much delta made. I have a guy who has ten planes, you do the pilot, you do the gates, and next thing you know, theres another airline. You would be the guy directing them with the flashlights and maintaining them and flying them. Like you do at the m. . Of course. And carrying the bags. And load bags, of course. Reservations, i know how to do that. I can handle seating. Its not happening because you cant get planes, why the market loves boeing. A big day for tech, innovation landscape and more with the technology engineer, jaywalker, later this morning. Facebook after the bell, and hear from the dominos ceo told cramer about the social network last night on mad money, did you know s ps up and down alternating for seven sessions and seven weeks . Crazy, lucky seven. A lot more squawk on the street from post nine in a minute. [ male announcer ] if you cant stand the heat, get off the test track. Get the mercedesbenz youve been burning for at the summer event, going on now at your authorized mercedesbenz dealer. But hurry, offers end july 31st. Share your summer moments in your mercedesbenz with us. Pepsi co reporting better than expected results. 1. 32, snack volumes up, and raising Earnings Guidance for the year. Gross margin up by a full point, jim. North American Soda down two. We got to get used to that, i guess. Yeah, you do. People scramble and what did cocacola do . They were flat. In the end, were trying to figure out what metric moves. This is a consumer package good company, and that group is horrendous, as we know, and so in the end, they did boost their target 8 from 7 , and thats a big win, ogranic Revenue Growth at 3. 6 . If you go over q 1 against q2, theres disapointment, a tougher quarter, and this stock goes up in part because many, many Money Managers need a good stock. They look at pepsi, they dont have it, i dont like kimberly, not getting it from General Mills or conagra, oh, pepsi, this is good. They want x, and interest is y. No, hey, look, this is one with growth. Ill buy this one. Thats why its up. Interesting. Ogranic revenue up 3 preponderate 6, and people are knit picking. Thats the correct word. What i do, just so you know, this is what i do, i have q1, didnt talk about the earnings, wheres the apples not to the apples. Take a look. They got you wont like what you see. Quaker, for instance, three in the previous versus quaker now flat. The problem with doing all that is youre just splitting hairs. You need a growth stock in the group . All right. Thats the name you step on. I do that too, david, dont you . Get the previous quarters release and compare side by side. I do do that with the financials, sometimes. Goldman, you need that, but never know with pepsi. He does it with every single one. Im insecure. That makes up an app entire Conference Call. Its helpful when you dont sleep, and i need sleep. Its not good. Its not good to me. People like you inhabit the world. I wake up hungry, i go to bed hungry, i think i should eat something. Facebook coming out after the close, and cramer and the pizza chachb ceo, patty doyle, last night on mad money. Seems to me the dollar in facebook gives you more bang for the buck than whatever you do with twitter. Has been a little. We do well with paid search, banner adds, worked for us, and basically, we balance it out. We have the analytics to move digital dollars around. We can see exactly the return on investment that were getting to those, and so if we start seeing something not work as well, we shift dollars quickly and get the return off it. Its going to be an interesting print. Ptig taking the target from 68 to 80 ahead of the number. Dominos just smoking. One of the things i lost weight, by the way, made a joke he was off the cheesy bread, but hes totally committed the product. What makes me excited about dominos is pizza hut because they are doing poorly. Be careful, i had ipg on the same show. He also was saying, listen, i think we can get more bang for the buck facebook. No one wants to slam twitter, but pizza hut is now with ipg. It is a donor, shared donor, he called it. He called it a shared donor. Talk about share, though. The big picture, ipg, you mentioned, of course, making decisions. Right. Its not all new money. Its coming from somewhere, some from good old analog, advertising on Cable Networks . I mean, 12 million in revenue on facebook, whatever the numbers going to be this year, i dont know. Digital not all just new money. Coming from somewhere. Online past offline this quarter. That was the transition. Ipg is newly innocent in the center saying it is digital, the market is growing, but the money in digital is lingered, facebook, they report. I dont want to say, oh, cramer says buy facebook. Its google. Its not as much twitter because people have a hard time getting a return on investment on twitter. Dont short twitter because i said that, but they are comfortable with facebook. We have fox going after time warner right now, not seen as a concern necessarily, but i wonder about the Bigger Picture in terms of exercising. Foxs story in the paper, listen, they are not willing to go to a hundred because of the Balance Sheet, but they could do it with stock. Listen, ive reported on this last week, we can go in more details, but theres a lot of back and forthright now. Is there a willingnd to lever up at fox . Depends who you speak to. Disciplined is the word they use. I have not heard anyone say they want to get to a hundred, and the tone from the time warner side is notable, id argue, but we got a ways yet to go here. Youre going to see ewe know, you see incremental reports like that, dont draw too much from that. Too many conclusions from that. Poll the reporters, price is 96. No, thats not what happens. No, no, not right now. The story made it seem. When we come back, cramers mad dash, opening bell, a look at futures and keep our eye on reports of two ukrainian fight every jets shot down this morning. More squawk on the street straight ahead. Just take a closer look. It works how you want to work. With a Fidelity Investment professional. Or managing your investments on your own. Helping you find new ways to plan for retirement. And save on taxes where you can. So you can invest in the life that you want today. Tap into the full power of your fidelity greenline. Call or come in today for a free oneonone review. With a new volkswagen turbo. 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You know, biogen. This is not a small cap stock. No. A breakthrough drug, and sales much better than expected. Youd think with the stocks that are just up, up, and up, they cant go up anymore. No, because the companies have growth. Money managers take a growth over a dividend any day of the week. Beats by 18 cents, and we are going to talk with the ceo later this morning. Quick, theres the opening bell and look at the s p. Down here at the big board, cys investment celebrating the fifth listing, and Biopharma Company doing the honors. Whirlpool, you get the home sales up, you can make a coraltive. Down on a big estimate cut. Theyve been in the sweet spot for a