Investment target. The firm expected higher Gross Margins estimates for the lowerpriced iphone coming out expected to be called the iphone 5c. The slump follows disappointing earnings be it sales came in lower than Sales Estimates and the company cut its forecast. Liz white house is deeply concerned on reports from syria. Hundreds of people have been killed in a chemical weapons attack by apparently government sources. Syrian rebels say 1300 people were killed. Adam and reviewing what happened after a computer glitch at Goldman Sachs disrupted trading at multiple exchanges yesterday. Wall street sources so that glitch could cost goldman 100 million. After the bell starts right now. Liz we were saying earlier as soon as the fed minutes came out, everybody got whiplash. The market gyrated and spasmed, went down and back up, now down. We have management director warning more volatility and in the pits of the cme. All the while we remember we are waiting hewlettpackard numbers. What was it like in the pits after the fed minutes were released after 2 00 p. M. Eastern . It was typical fed day action. The following move we rallied up, got a little whiplash and the final move now we can see we are closing down near our lows. A good technical bounce 1640 on yes and p. A nice bounce, the market is in real trouble going below 1640. We will go a lot lower. Adam let me ask about those minutes. We went down and recovered. But shouldnt the investors realize that tapering is going to happen september, december, shouldnt it already be priced in two equities . Everybody knows it is coming but they want to know what the magnitude is, are they doing it for the reason they are afraid there is a speculative bubble in Financial Assets or because the economy is getting stronger so they want to know the complexion of the taper and the fed thought process. The thought there is disagreement in the fed has investors somewhat unnerved. That is partly negative reaction this afternoon. They are still debating it. Liz isnt that an opportunity for the gutsy investor to get out there and pick a winner . In the long run, yes. But the twoyear treasury going up pretty consistently which can be damaging to the economy and stock valuations, thirdquarter Earnings Reports in september. A lot of uncertainty, stocks up, we are going to have a lot of fog for the next few weeks with a lot of people on vacation, probably best to do nothing right now. Adam do you agree with that . We had a guest on earlier today who said w because the s p by te yearend. I dont think this is a buying opportunity. It is very quiet. It is great to observe the market and stay on the sidelines. Iyoure probably waiting for a spot to get short because the market is breaking down a little bit. We have had 11 lower closes. Technically the market getting a little bearish. As i said earlier 1640 is a key level. As an investor sitting on the sideline and observe. If you are a trader, probably looking for a spot to sell in this market. Liz everybody was scared of emerging markets, but you are not. Talk about that potential investment. They will stay mean and ugly for the very reasons that have been going down. In the long run that is where the growth is, the middle class growing in china 7 is low growth, in the United States 3 is hig highgrowth, so that is e big picture. The emerging market has had historic underperformance in 2012, 2013. Put a little bit in every month or two or three for the next six months when you look back in four or five years you will have made very good money as you just said, in this case you do it very gradually. Adam you like financials, particularly bank of america. The government wanted them to raise more capital, isnt this time to stay away from them . That is why he can buy them at reasonably attractive prices. They are not Growth Stocks by any stretch of the imagination. They will never return with a used return. It is a huge market play. He has a good job so far, he has more to do, much more earnings power in this company then there is slightly above tangible, and can really drive the earnings with no Significant Growth in the economy. Dont forget if you have rising intermediates rates, that helps the margins on the adam we can put up the stock. Hewlettpackard is trending slightly lower as we pick through the numbers. Let me just quickly ask todd, jim was talking about the financials but what about technology . Is Technology Going through the positive cycle where people have to upgrade heading into the fall and backtoschool season . That is great for them. We are seeing a lot of these Technology Companies are missing on the revenue line as well. They are not as aggressively upgrading as they have in the past. It is a problem because the money, the market being created is artificial. We are having consistent on the revenue line meaning we are not getting real growth. People are sticking with the old products. People are buying a lot more cautiously this backtoschool season. Even with target, their numbers are way down. We had a little bit of a problem. Adam pc sales were not as bad as they had been for the whole industry, but who would buy hewlettpackard if they were to split . Would lenovo go for them . It is a great company. Hewlettpackard is a great name. It was a great name. I think lenovo is trying to grow into that. Adam Dennis Kneale has the final numbers for this quarter. Dennis meeting expectations at 0. 86 per share, missing a little bit on revenue, while strickland 27. 29 billion, it comes in at 27. 23 billion. 60 million miss. This is a company under scrutiny, a company in trouble even that number you are talking more than an 8 decline in revenues that a tech company supposed to be growing, not shrinking. Hp has gotten the market moving past servers and laptops and regular computers into smartphones and tablets and hp has gotten crushed by that shift away from it so this could mean the Enterprise Business that is the mainstay, big Corporate Accounts simply isnt yet robust. Adam revenue numbers lower than a year ago, exactly what you are saying, 6. 79 billion versus 7. 5 billion a year ago, so a slowdown in enterprise which is sort of what they were hoping would be a big breakthrough for them. Looking for corporate customers to take the ball and start running with it because consumers led the way for the past five years or so, now consumers have slow down as the Smartphone Market slows down. You have to wonder. Hp. Adam are they too big . Should they make a separate business . Should they do something to bulk up corporate enterprise . Adam lets bring todd back in. Enterprise Service Revenue declined yearoveryear. This was their growth area, i thought. That is right. We are seeing this over and over again where the Bigger Companies cannot make all the numbers. The result has been artificial because they are making on the bottom line but cannot get the revenue figures because theyre cutting costs and getting cheap money instead of pushing out product. That is the problem were facing a long entire economy. Liz they are saying the fullyear view, you had others looking at 3. 57, that is maybe the reason we are seeing a slight pullback. That is the pattern we have seen. It does not speak well. Toleration of the communist secondhalf which is the real bowl on the stock market. Adam you talk about investing in china. But this area, they were seeing some not necessarily pc growth but less than bad in india, emerging market, the school system, now that is flat. This seems to me maybe i want to stay away from emerging markets. I think the news in the emerging market will get worse before it gets better. In the long run the growth will be far superior to the develop market and you want to gradually buy during times the economy is decelerating because that is giving you the longerterm secular opportunities. The news for the next six months will be ugly if you use that to establish positions in a couple of years you will look good. Liz hewlettpackard has looked very good. Trying to wrap their arms around a fragmented economy. Adam a moment of truth for hewlettpackard. Meg whitman, the tech giants latest Earnings Reports giving us a reality check on her latest plan on whether or not she can fend off critics. They want to break the company apart. Liz a slight slowdown recently. Who better than the ceo of highend luxury carmaker. Telling us whether the good times will continue rolling and we will ask him even in an era of higher Interest Rates whether the trend for your home appreciating in america is going to be a positive one. He is our guest next. Adam do you still feel safe trading on the big exchanges . Log on to facebook. Com afterthebell and let us know. [ male announcer] surprise youre having triplets. [ babies crying ] surprise your house was built on an ancient burial ground. [ ghosts moaning ] surprise your car needs a new transmission. [ coyote howls ] how about no more surprises . Now you can get all the online Trading Tools you need without any surprise fees. Its not rocket science. Its just common sense. From td ameritrade. Ask me what its likee. To get your best nights sleep every night. [announcer] why not talk to someone whos sleeping on the most highly recommended d in america . Ask me about my tempurpedic. Ask me how fast i fall asleep. Ask me about staying asleep. [announcer] tempurpedic owners are more satisfied than owners of any traditional mattress brand. Tempurpedic. The most highly recommended bed in america. Buy a tempurpedic mattress set and get a free twin tempursimplicity mattress. Find a store near you at tempurpedic. Com. Adam shares of Diamond Foods skyrocketed following reports the company has agreed to settle a security lawsuit. Back to Nicole Petallides on the floor of the New York Stock Exchange to tell us about it. Nicole a couple of things. A settlement and raising your outlook. And nice wedding day on wall street. The stock moving to a new 52week high. Year to date is a stellar performer. Year to date up about 57 . Lets start with what they saw. Kettle chips, pop corn, the emerald nuts which we all know agreeing to sell the security lawsuit due to some accounting issues. That in itself was great news. The Company Issued a strong fiscal fourthquarter outlook. So raising the outlook looks great, issue a strong outlook to be more specific gave them a nice pop today for Diamond Foods as a result the stock a clear winner. Liz ever since Warren Buffett bought into heinz, the companies have looked very good. Do you see the trend playing out on the floor of the New York Stock Exchange . Nicole absolutely. Liz what was interesting is Warren Buffett wanted to get out of craft, he did not like how they sold their business, but it has not been a bad story. Thank you very much. Adam want to show you what is going on with hewlettpackard. Disappointed lot of analysts, especially when you look at dropping for several quarters now. Although they still generate billions of dollars, you have to ask the question. Raised during your program at 3 00 p. M. , is it time to reconsider the former ceo thought about salvage the company, break off the parts performing and stick to enterprising. Adam about two years ago, he was running hewlettpackard, he had said lets get rid of the computer business and there was outrage among many partners including intel who said dont do it, it is what people know you for. These are hewlettpackard computers throughout our building. People use these laptops. But the fact is, adam, that is struggling aspect. Adam really quick, toll brothers, largest u. S. Luxury homebuilder a rise, home prices continue to climb. Liz Dennis Kneale. Dennis first to close the loop on some of these hp stuff. Heres why the stock seems to be falling after hours. They are not talking what the vision of what they are helping companies do, the talk but how much cash they have on hand. About how well theyre doing running the internal. That shows you kind of th a dont have enough good things to talk about. Earnings per share down compared year ago. Cash flow down. Personal systems down 11 . On and on. This is a bad report. Liz the stock does not look as bad as i would expect from a bad report. Now lets get to toll brothers. The largest luxury homebuilder in the u. S. Reported a rise in Quarterly Sales and orders as home prices continued to climb. It is due to a tax issue, it does not matter. What matters is are we in the midst of a true housing rebound . Do we stumble a little bit lately on housing hashtag i am wondering is this positive or is it something to be worried about . We are not worried. We feel pretty good. A year to 18 months and what we believe will be a longterm recovery, consistent with prior cycles. Remember very few homes were built and very few homes were bought for six years, were still at a fraction of what this country has produced in terms of new homes and we feel good. We had good numbers today. We continue to see ordered growth. We continue to raise price. Opening new communities. Remember, our buyers can get a mortgage. 20 are all cash. Those who get a mortgage but 30 down and mortgage 70 . They are overqualified for the homes. We think were in a really good position. Liz yuri many different states. Where do you see the real pockets of mighty strength . Number one is still new york city, where on our 18th building in new york, hoboken. Manhattan, brooklyn, hoboken. The high new york is northern and southern california. Which have been very hot. Texas has been hot. In dallas, houston, doing very well. Florida has had a really good summer, which we wouldnt have expected. Liz hoboken, frank frank sinaa would have been proud. What are the big trends . The pond and so many housing recession through the big house is dead, everybody wants a smaller home. We dont see that even through the downturn we continue to sell big homes, the clients have upgraded to the same extent they did in good times. So the American Dream is still move the kids to the suburbs to a great school district, try bigger lot, a bigger home, but there is a trend to get back into the cities, emptynesters are selling their suburban homes moving into cities. The active adult market is growing as the baby boomers hit the magic age of 55. It is the American Dream to get to the suburbs but that is now being filled in by cities being hot with active adults. Liz i promised i would ask what is your outlook for housing appreciation, price appreciati appreciation. I know there are many different levels. The smaller homes. Overall can you give us a blanket statement over the potential of housing appreciation . So buy a house today will be looking a little bit better in a yoyear or two from now . I wish i had that answer. If you bought a house two years ago you were a lot better, you are a lot better today. We talked on our Earnings Call about how this feels like the first couple of years of the last cycle, a posse 97, 98 the market roared, during that period of time home prices doubled. I cannot predict that will happen again, but it has happened in prior cycles and based on the limited supply out there, and the growing demand, that possibility certainly exists. Liz are you worried about tapering and we actually does come to pass . If we do see it, will it hurt your business . We moved from 3. 5 to 4. 85. The clients dont seem to be affected. If it tapers because the economy is improving, i think we will be fine and i think that is what will happen. Liz thank you so much for joining us. The ceo of toll brothers. Adam coming up, much more on the disappointed Earnings Report. A wall street analyst who has been tracking meg whitmans every move. Exactly how they wa. With scottrades online banking, i get one view of my bank and brokerage accounts with one login. To easily move my money when i need to. Plus, when i call my local scottrade office, i can talk to someone who knows how i trade. Because i dont trade like everim with scottrade. Me. announcer scottrade. Awarded fivestars from smartmoney magazine. train horn vo wherever our trains go, the economy comes to life. Norfolk southern. One line, infinite possibilities. I took my son fishing every year. We had a great spot, not easy to find, but worth it. But with copd making it hard to breathe, i thought those days might be over. So my doctor prescribed symbicort. 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What are numbers telling us about the companys notebook revenue in particular. Analyst for joins us by phone and our Dennis Kneale still with us to talk about all this dennis what do you make of this Earnings Report from meg whitman . Is it more slogging through. It is. And Corporate Accounts, revenues down 9 . Services revenue which is supposed to grow despite falling hardware down 9 from a year ago. Personal