Our map goes Something Like this. A lot to talk about. We will start with a stunning quarter boating estimates on the top and bottom line. Company increased capital return. Over 60 million iphones. It looks like apple shares will open at an all time high. It is a busy morning of earnings as well. Shares of merck, pfizer and Bristol Meyers all moving higher in the free market. Numbers from ford disappoint. North america the bright spot. The Company Continues to lose in south america and if europe. We will interview the cfo bob shanks a little later on. Apple poised to open up 33 if profits. More than 61 million iphones were sold. Revenue in china grew 71 from a year ago him apple boosting the capital return program. Tim cook on last nights Conference Call. Take a listen. We are in the very fortunate position of generating more cash than we need to run our business an keep making these important investments. So today, were announcing another significant update to our capital return program, expanding its size to 200 billion through march of 2017 to reflect our strong confidence in what lies ahead for apple. Of course jim the record cash now at 194 billion. Pointing out they can combine gm and ford and tesla and still have some left in the bank. My answer is why the heck would they want to do that . Okay. This is one of those quarters where tim cook really had to restrain himself. As a matter of fact, there was one moment he was talking about the apple watch. By which the way show wes are up. I went to my help my mess engs. I checked my stocks. He didnt say the watch is being blown out and of course he gets called out and says look the demand is the far greater than the supply. The demand with everything with the exception of tablets. What happens when you do that . You can raise price. Thats what they did. The china story. Its really extraordinary. There is a great moment of kind of a geopolitical moment where he says the great middle class of china is buying this phone i absolutely love. That then switching, thats another great team the other guys there was agree bury samsung call. Its funny, you have to remember apple is one of the largest employers in china. Certainly employs a great many more people there than they do in our country. Because some would say, when you are that relying on that market things can change and we know that certainly from so Many Companies that we follow. But in this case i think the retort is they are a very important part of the chinese economy in terms of the paychecks they send out every week. Now Greater China has the second biggest market. Obviously, the stock, jim, 136 after hours. We are beginning to hear some reports out today that all the good news is baked into a name baked up. We x out cash. In this company you can actually do that. You get 12andahalf times earnings. I mean thats what a deep cyclical is trading at. Davgsd i loved your job comment. They talk up front 670,000 jobs related in europe. A lot have to do with app writing. 2 billion thrown into ireland and denmark. Why is this important . If you create jobs then the heat is off. If you suck jobs away from europe the heat is on. This is very well played. I wonder whether there isnt an expectation you will get product announcements into june. People noticed they lowered the apple tvs, theyre doing that to clear something out. Is something new going to come or are we going to see a new iteration of a tv. We decided we dont know what television means anymore. What is this point . What is this obsession . I mean it seems to be the when thats breaking its like theyre the first Record Company to roll . Is that whats happening . Compelling content is the only thing i can think of. They think people want i. Hbo now. We already had an Analyst Report yesterday right here about adding what 5 bucks a share is to time warner price. But apple tv new products well see. Maybe well even get a new 20inch ipad people have talked about. Long rumored. For sure. I had you picking revenue down 29 on ipad. If you buy the ipad the market share is still theirs. Tim cook there was a time when his narratives were not that good. Now his narrative is like it is a great hbo special. Not amc. The last thing he says is i think hbo has incredibly great content. Our great content. We have only been at this a couple weeks or so, period. And cut. Apple tv. He leaves you wanting the second series, first series is a buy. Second series i got to see it how long . They didnt break out watches. We did not expect them to do. You did talk to intel yesterday about the whole movement of wearables. Heres what he said. This button is actually a computer that i walk around with. This is cury basically the first adaptation of a wearable. With a small little battery, this can be powered a month on end. Imagine your steps, your environments. All kind of things. Look i got the apple. All right. Can that do more than this . The apple iwatch can do a bit more than this right now. Give us a year or two, we can take the technology and put it in a button. You have a year or two . That was gooth good. I thought conversations the q from bond. I thought it could blow my head off. All it can do is a little computer i was fanning out last night. Ceo salesforce. Com. I remember when he had all this information. The iteration also of his watch i can do is take a web call. He had his whole business on the watch. Really . He had all of his lines of what he had done that day on his watch i kid you. He had major, he will lose his eyesight at the very least. He knows lou to program a watch. I cannot program i am thankful you have the mickey face up. I got it set by the way, at apple, i had took a switch out. Where is the brightling is what i want to know . We may be in San Francisco the theme is the same. Where is it . A brightwing from canal street. It was ten bucks. I could not advance it. I was with the usualic wis requisit people who made much more than me. I was the poorest person at dinner. Thats okay. Can i handle that. Good. Thats a good this inc. To get over. This is a town where a billion here every person in the 1950s, it is an incredible place. Place. The the chew of people expected to be millionaires is outstanding. Currency affects causing pfizer to trim a full year guidance the q1 profits beat the strength of new products. Then there is bristolmyers beating on the top and bottom line raising the low end. Merck appears to be jim, at least the winner this morning. Has been the stepchild, red headed stepchild of the group. They seem to not do things right. Last night we got a terrific report of the diabetes drug fought having side effects. This morning we get some more data on a small cancer. They are buying back more stocks. It looks like merck, which had been the Company People thought the most to disappoint blue it away. Pfizer does lowerer that full year. 1 live in to 295. Estimates 210. Bristol my i have not seen. I imagine you have. I had to gargle with saltwater and say bristolmyers. You are looking at this play as a cancer play. Theyve just become this oncology biotech masqueradeing as a big they got that in the market t. Multiple on Bristol Myers is not a cellgene. Did you the other day, there was this rumor floated by jokers they were going to buy cellgene, sorry it wont happen. Bristol myers is a little bigger. Not much. Pocket change. The point is. Its too expensive. It has moved up dramatically as a result of tear manyics. Im not going to disagree. Bristolmyers had good expectation, merck had good expectations. It gives us a chance to ask you what happened to biotech and why . Holy course, i thought there was a seat change going on yesterday, people decided they wanted to own freeport upgraded today by morgan stanley. I think people felt the multiples had gotten away. Then you come back and say, what am i going to boy, parker ha napin . Some Mining Companies that frankly have really no upside . What was behind that yesterday . The drug crisis t. Fact that after mergers, it does appear older drugs get moved up in price. What happens we will see people mit get that. I think you are right. Is there a concern about patents and things after that nature . I know its a challenge. Cellgene is a very expensive stock. We will larry from gilead this week. I think david is right. There is this ground swell wait a second when you buy horizon, they buy drugs that are not doing well and then suddenly they raise the price. They also have a better sales force and the numbers explode on drugs that cost much less and i think that article presumed the backlash. There will be no backlash. Yoke this is smart enough to catch on. You do not . No i do not. Valiant lives. Slashes r d, raises prices basically is the airline of drug companies. Ford here First Quarter profit 23 cents below wall street estimates. Revenue also shy of consensus the stronger dollar impact sales t. Commentary from shanks on south america, jim, in his words, the external environment in south america has deteriorated to where we were a few months ago. That number in south america, that has been by the way a terrific line item for some of these guys. It does appear south america is in major turmoil. You will hear that from whirl poly. It does a gigantic result of it. The currencies are weak there. A lot of people talk about venezuela, as a failed slip. Although north america, they see operating margin up a tick. And the f150 is going to get there. I also didnt think asia pacific was all that bad. But north america cant carry i. One of the things is that you know im wondering, ford and gm. The european line is bad. Im beginning to wonder if its because they dont have the right costs. Holy cow, some of the german companies, i think when you see fiat. I think there is something the matter with gm hopeful. Remember i told you i ate crow last week i will eat more crow. Its like when you go to the restaurant. You say ill try the crow again. Maybe its better than the last time. I got salt in the wounds from gm i say you got to be careful with these, with the autos. They dont have it. They just dont have it. When we come back we will discuss the wireless wars with the always color john legere. The twoday fed meeting begins more optimism about what they are doing in greece. China settled back and well get with aetna and whirlpool and more when squawk on the street begins from one market in San Francisco. Hello. I am technology that is changing investing forever. I am a fully automated Investment Advisory service. I can help you choose the right portfolio. Monitor it. And even rebalance it. Ive been called innovative. Revolutionary. And just plain smart. Id blush at the compliment if i could. But i cant. So. I wont. Say hello at intelligent. Schwab. Com state of emergency in effect in baltimore. Violent protests and clashes with police in that city yesterday afternoon and overnight after thousands mourned the man who died from an injury he suffered while many police custody. Darcy spencer joins us with the latest from baltimore. Good morning. Reporter good morning. As has been reported baltimore is under a state of mortgages. That means National Guard troops have been brought in to restore order and keep things calm here. You can see this is city hall in the heart of baltimore. National guard troops have been progressioned around city hall. You see heavily armed. Maryland state troopers are here as well. Theyve ericed the metal fencing you sometimes see on the National Mall out here around city hall. There are also some military vehicles positioned out front as well as some Maryland State Police cruisers. We den know if this is the result of any kind of threat that may have been made towards city hall or as a precaution to protect this valuable government building. As you know it was crazy here last night in the city of baltimore. We havent seen anything like it since the late 1960s with the looting, with the ri oughting and fires being set to building whether its the cvs store or an Apartment Building complex for senior citizens. They went up in flames. There was another building set on fire earlier this morning. The good news is that no one was hurt in any of these fires, but there were at least a dozen officers were seriously injured. Some remained in the hospital after violent clashes with protesters. There havent been zras, protests or looting that we know about and no clashing with police it seems to be calm today, but the guard is here. They want to make sure that things remain that way. Schools have been cancelled for the day. The other big thing here is there with is going to be occur few put in place tonight at 10 00. Everyone need to be off the streets until 5 00 in the morning. So theyre hoping a combination of things they are doing will make sure there is no violence that breaks out tonight. Back to you. Darcy spencener baltimore. Thank you so much. When we come back we will get cramers mad dash and count down to the bell and get a look at the premarket, what the fed will do at their meeting, a statement tomorrow. More squawk on the street 80s from one market in San Francisco in a moment. Can it make a dentist appointment when my teeth are ready . Can it track my crews performance, and protect their heads . Can it tell the Flight Attendant to please not wake me this time . At cognizant, we see opportunities for every company. To meet the new digital demands of their customers. Can it process my Insurance Claim . Like, right now . Can it download a track while im sampling it . Can my keys find me . With the power of digital, analytics and automation now every little thing can provide even greater value. Ok, so can it tell the doctor how long you have to wear this thing . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . We are seeing an amazing transformation thanks to consolidation. Yet the story isnt getting nearly enough attention. I think its time to wake up and do buying for energy consolidators. About eight minutes to go before the opening bell. Time for a mad dash San Francisco sometime w. Le start off with coach. Yeah. You know there is a magic number, david, that most companies cant come back from which is Comparable Store sales that are below or my fuss 20 minus 20 . Thats where the companies have been stalled. It happened once with young. They got it back. Kfc. Coach down 20 north america. Now what really surprises people is there have been a lot of runways that this was the turn quarter coach. If the turn is minus 23. They got a far way to go. I think the coach, while down is not down enough. By the way, another one in Comparable Store sales i should have mentioned earlier that were abysmal, the Container Store. That is a tough quarter. Has it had a good quarter sense it went public . Sample not really. The Container Store i think people will rethink the notion of gift wrap of this kind of the model people dont know what to do with this stock. They try to call bottom in coach. Its better to try to buy companies doing well. Buy a viet corps. Boy colombia. Dont bottom fish. People who bottom fish in j. C. Penney are trying to get out of the bottom. They should have gone with nordstrom. You are uncomfortable. Do you think they have a chance of coming back . Look, i have to go with david novak. He said if you have a story that is compelling overall, the chinese did not have a lot of problems with young and regulations in kfc. If that goes away people have short memories. They will go back. By the way, this hand bag business, kohrs is not doing well. There is one accessory thats selling well. Im wearing it. You got me . And im not wearing a fossil. You have a mickey mouse. I have to change that. We may come back. I want to mention that move yesterday was quite significant the move yesterday in dupont shares, it would steam e seem on iss recommendation of course in favor of two of the nominees. Now its interesting, the csa said they went to buy. This is this whole issue of who is causing the stock to go higher . And whether nelson peltz leaves does the stock go higher . You know this is the ultimate hot button. Its something we discussed when we did the interview. There is a thesis here if nelson peltz goes away the stock goes down big. What you saw yesterday is a partial victory, some regard as a full victory. But you know what in the end, the earnings werent so hot. Dow chemical which had blowout earnings cant get out. The only one doing well is a total commodity place. In the end, lets not forget these are companies. Sometimes it doesnt matter who necessarily is on the board. Because if you have the wrong product mix in this ag business is horrendous for everybody. I think its a moment in ag where you are beginning to realize that everyone was growing the wrong crop. You know that north by northwest, the scene. Where cary grant is running from the plane . In there the guy is dusting crops where there aint no . They are dusting crops where there is corn they got to have soy. That is hurting the business. You heard it there. We got to have osy. We have the on bell we are back from San Francisco right after this. Sosy. We have the on bell, we are back from San Francisco right after this. Osy. We have the on bell, we are back from San Francisco right after this. Yosy. We have the on bell, we are back from San Francisco right after this. Sy. We have the on bell, we are back from San Francisco right after this. Y. We have the on bell, we are back why do we do it . Why do we spend every waking moment, thinking about people . Why are we so committed to keeping you connected . Why combine performance with a conscience . Why innovate for a future without accidents . Why do any of it . Why do all of it . Because if it matters to you its everything to us. The xc60 crossover. From volvo. Lease the well equiped volvo xc60 today. Visit your local volvo showroom for details. Here at td ameritrade, they love innovating. And apparently, they also love stickers. Whats up with these things, v