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tv   After the Bell  FOX Business  October 20, 2014 4:00pm-5:01pm EDT

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are going full force. looking for eddie lampert to do it. [closing bell ringing] david: a lot of people shop at sears. they have these warranties with sears. god knows what happens if sears goes down. market struggled to get into the green and it managed to do so. liz, you had this kind of feeling all day that the dow wanted to get in the green, to join brothers and sisters at nasdaq. s&p 500 is well into the green, up almost full percentage point. what brought the dow down was ibm. liz mentioned, taking a terrible hit today. may be a time to buy. we have analysts suggesting just that. as you can see the nasdaq up 1.35%. we have apple earnings. apple is not only one coming out with earnings. we have chipolte and some others as well. texas instruments. we have very busy hour. fasten your seatbelts. "after the bell" starts right now.
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liz: as we wait on both chipolte and apple let's get to today's market action. joe durant, united capital ceo, here to toll you why you should stay away from the very thing a lot of you are attracted to right now. not brad pitt but treasurys. bob phillips, spectrum management group, says why you should be wary of small caps so stay away from those. peter kenny, warns of more volatility in the next couple weeks. bob iaccino in the pits of cme. we begin with you, bob. ibm we know what happened this morning. they missed, they warned, it was a total mess. look at the dow in the last final hour, crossed the unchanged line 12 or 13 times. it was really trying and made the grade here. what does that bode for tomorrow? >> i think one of the things you have to worry about is the way that the s&p and nasdaq are behaving right now. they're doing this little bit of an up move on lower volume day,
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not as much volatility. not as much excitement in the move. i think when you look at it from price action perspective, we went the entire time without a 10% correction. we got it in a few of indices. i think there is a lot of money buying. but that money will wait to make sure it is the bottom. you want to buy on the way up. liz: hold on, we got chipolte mexican group numbers. sorry to interrupt. cheryl? >> something interesting happening to chipolte. the stock is moving to the downside in after-hours trading. they beat the numbers earnings per share and revenue higher than analyst expectations. 415 on earnings per share. estimate was 3.84. revenue on 1,008,000,000,000 a beat on 1.06 billion estimate. opening new restaurants. looking for sales forecasts 2015. that is next year. looking for mid-teen increase. nothing i'm seeing so far in the headlines points to anything to
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the negative. 1850 to, 195 new restaurants for all of 2014. operating margin a good number a decent number. will dig on chipolte. let you know what else i'll fine. david: one thing you might want to look at are the margins. keep close eye on margins as food prices go up and down a little. whether or not those are reflected in the quarterly figures we'll try to figure out. ii want to go to peter kenny who has been watching these markets and particularly the fear factor, peter. last week the fear factor with ebola, with what has happening in europe and asia really kicking in. do you get a sense that fear has been a little bit, anyway, shaken out of this market? >> yes, david. for the near term i think some of that panic, some of that capitulation that we saw on thursday this past week has taken some of the fear out of the market. but, we've had two, three
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successive days to the upside for the s&p 500. volume is really not there. i would like to see more in terms of volume and enthusiasm for the rebound. not seeing it really. we'll see more volatility as we get to this month. awful lot of economic data coming out focused on pmi and housing. that will get market food to work with. earnings will continue to drive a positive narrative for equities despite volatility. liz: you used the "v" word once again. let's get to bob phillips. not as important to look as much in the rear view mirror but forward. the volatility people endured on wednesday was enough to scare the guy who won the nobel prize on volatility. he was with us last hour. dr. robert engle, nyu school of business and he pinpointed it and said it was europe and angela merkel's inability to simply come out and say we'll do what it takes to keep germany's economy strong. you have a different opinion why we saw volatility and why it
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will continue. >> yes. liz. i think we've been in uncharacteristically low volatility times. i mean if you look at last week's volatility compared to many times in history, it was high, but it was not, actually low by historical standards. i do think there is this building fear of deflation in the marketplace. qe, in theory is going to end. that is like tightening. the dollar is the about getting higher. that is like getting to be monetary tightening. dollar is reacting to fear of monetary tightening and i think that what caused a couple fed presidents to come out last week and talk about extending qe. we think there is high amount of uncertainty in spite of the fact economy is doing fairly well. david: i want to go back to bob iaccino here. joe, we haven't forgotten about you. we'll come to you right next. bob, you're a buyer even though you still see weakness in this
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market. why? >> i think this correction has been the thing that everybody has been waiting for, to sort of confirm this is a healthy bull market. you have to have these corrections in healthy bull markets. you have to flush out some speculation, bring more of that value money in. i do think this will do that. it is interesting because you have two fed governors think wage inflation and inflation overall is coming in. i agree with bob. i think bob is talking the exact, along the exact correct line in terms of inflation nowhere to be found. new qe will not happen. you have oil prices lower which is decent replacement for qe. not as big obviously. if you guest sustained $10 move a barrel lower for 12 months that is plus 25 basis points of global gdp. that can actually happen. liz: there is near irrepressible behavior response among many market participants to rush to treasurys. we bring in joe durant. he says that is the exact opposite what you should do. jo, why is that? i want to quickly mention, looks like chipolte is getting
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hammered in the after-market session because it sees 2015 low to mid single-digit comps same-store sales growth. that isn't as hefty i think people had hoped. but anyway, go ahead. >> i think what you're going to see is high volatility all around, when the fed steps away you have less liquidity you will have higher volatility rates and people are accustomed to stocks being volatile, even though for three years we've been very spoiled but not accustomed to what happened with fixed income where rates go up. from these levels. low 2s to three, which is almost something that can happen overnight in couple of weeks. that could be as much as 20% decline in 30-year bond. so i don't think a lot of people understand the incredible impact of low rates, what happens if we just go up one or 2%. again not to a normal trend of 6% but to 3 1/2 or 4% on a 10-year bond could have eight to 10% decline impact. we tell people since we're
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managing all their net worth you need to think about the risk. a lot of areas which used be safe with such low yields are not anywhere near as safe as they used to be. david: joe, real quickly, is there any etf out there that somebody can buy, hold on to, and not have to worry about these wild swings day by day? >> no. i think what you want to do is buy short term there, is plenty of short term money market alternatives. if you own equities, own dividend-growing equities like vig, you want to participate in stocks where dividend are growing, not passive. david: perfect. thank you very much. joe durant, bob phillips, peter kenny, embarassment of riches today. thankthank you. bob iaccino, we'll come back to you in a few minutes when the s&p futures close. liz: apple earnings are set to be released in a few minutes. we'll have instant analysis the minute the numbers are out. david: speaking of apple, apple pay launching today all over the
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country. we saw a demo from liz. exactly how does it work from the perspective of the credit card companies? mastercard one of the main partners with apple in this venture. we'll have a representative from mastercard to tell us whether or not this new app is going to put credit cards in the museums. >> he has a live demonstration. plus, lend remembers considering new programs to make it easier to get a mortgage. we know how difficult it has gotten in the wake of housing implosion but lower down payments? really low. are we heading down a dangerous path again? or will this stimulate a much-needed housing market boost. david: also in good times and in bad times we talk to strategists who not only beat the markets consistently during bear markets but also, outperformed during bull markets. what is this particular individual's secret? he reveals it all for us coming up. how can power consumption
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can you start tomorrow? yes sir. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid. we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. when csx trains move forward, so does the rest of the economy. csx. how tomorrow moves. who would have thought masterthree cheese lasagna would go with chocolate cake and ceviche? the same guy who thought that small caps and bond funds
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would go with a merging markets. it's a masterpiece. thanks. clearly you are type e. you made it phil. welcome home. now what's our strategy with the fondue? diversifying your portfolio? e*trade gives you the tools and resources to get it right. are you type e*? david: chipolte not doing too well after-hours with their earnings. liz: nicole, i had a burrito bowl. i guess that didn't help. >> help a with a few more. i see a beat and a beat. earnings per share are 4 :15. beat analyst estimates of 3.84. when you look at third quarter revenue, 1.08 billion versus 1.06 billion, again a beat on both top and bottom teen. what is making this go to the downside in this manner?
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closed 653 to 649 range in the after-hours. some people say whisper numbers were actually higher and in fact they missed those. also the comps, that is something else everybody is looking at. going forward they see 2015 low to single digit comp as well. >> thank you nicole. >> go back bob iaccino in the pits of cmet was a hard fought win for dow jones industrials but rest of the market looked good. >> but you know it looked that it finished positive. i don't want to overplay it. you didn't see volume. with the tone of the market right now, the bad news will be exaggerated to the downside, bringing in volatility. good news will be have to be a lot of it. days like this are good. slow griped is good. we need good news. we really good beats. -- grind. liz: thank you so much. >> thank you. david: apple owners and
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shareholders are hoping apfell pay-- apple pay becomes another breakthroughs that changes the worldwide marketplace. it might happen. will consumers warm up to it? is it safe and how does it work? questions our next guest can go a long way to help us answer. we have edward mcglock lynn, mastercard emerging chief payments officer. >> glad to be here. david: clear the decks. we have here a demonstration we'll provide for you. you have the apple iphone 6 right here. how does it work? >> first question everyone has, where can i use isn't the good news there are already 220,000 merchants in the u.s. that can do it. we have what we think essential companion app for apple pay, mastercard nearby. i was in times square today like the disney store. david: everyone of those dots is place that can use apple pay? >> absolutely. download mastercard nearby shows every are with you can use it.
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next thing, we show you how to use it. david: iphone here on camera 2. >> here is the mastercard. i loaded in. i would like to use this mastercard with apple pay. it connects to our servers, our servers, citibank or your financial institution says, you're good to go. i load the app. anywhere i see contact list. make a payment, use touch i.d. to confirm who i am that is it. i just made a payment. david: no second hands here. no wait or any clerk who has access to your number or anything. >> fastest, most convenient way to make payment. see from the application, connect to my bank. david: here is camera two. >> here is mobile banking application. if i want to touch through and see, that see transactions i've done on the phone. last four of the card. david: move your hand out of the way. go ahead. >> there is the special number, device number we do. that is the unique number goes into the iphone can only be used from this iphone. david: as liz mentioned last
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hour, the iphone 6 is the only iphone right now that has apple pay, correct. >> right. 6 and 6 plus. we'll get theut moments from now when apple reports its earnings but at most they have maybe 37 million of these they have sold. that is what, 10% of all the iphones out there. that is not a very big market right now of people who can use apple pay. >> there are two elements that are important for this. what we're doing with apple pay, we're using same type of security in the chips that are on secure chip cards. david: go back to camera two here. i have will show. this is we're talking about. you've all seen the chip cards. they have them in europe more than they have them here. >> taking chip off the cards and using chips that go into the 6 to help enable security. i have biometric security and fingerprint sensor. the unique number, token goes into the phone. we're generating a one time secret krypto gram or code for every transaction. david: we should mention, by the
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way encryption on the apple 6 and add that to encryption you have, is so good the fbi doesn't like it. thethe fbi wants a back door to that encryption. will you give it to them? >> everything at mastercard we're making sure to make digital transactions as secure as we can with the digital card. david: again, law enforcement doesn't like that. they want a little bit of an in here. are you going to give that to them? >> that is not part of what we're doing on payments. there are things on messaging side. this is just like the card systems work today. david: who benefits more. you don't like the name american express or visa, i know. who benefits most from this? who is in better position to take advantage of apple pay, mastercard, american express or visa? >> we think anyone with a mastercard. you can use the card anywhere where mastercard is accepted. this gives you a great way whether in store with an app or mastercard. david: we have the chief emerging payments officer.
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he knows this stuff inside and out. best of luck to you. fun stuff. liz, over to you. liz: tell us what you think, will apple pay replace use of apple cards? tweet us @fbnatb for your answers coming up. apple set to report earnings any minute. what impact does the fast-selling iphone 6 have? it only had a couple days before the quarter ended to be counted. could apple have another share buyback? questions and instant analysis next. mortgage giants fannie mae and freddie mac reach a deal that will make it a lot easier for borrowers with weaker credit to access home loans. could this lead to another housing crisis or will loosening up the standards help the housing market. we'll break down your ability to get a loan or your ability to sell your house. ♪ it's monday,
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liz: either fear or greed in the housing market. since the financial crisis, it has been fear. very, very hard for borrowers of all levels to get loans due to tightened restrictions. the tide may finally be turning. fannie mae and freddie mac announcing a deal that will expand access to home loans for many americans. what does it mean for the housing market and ability to get a loan? with us, bankrate.com, greg mcbride and university of pennsylvania wharton school of pennsylvania susan wachter. is it a rule? i guess they're going to loosen standards, greg. now for at least some fha loans you will only have to put down 3%. can you give us a little more color on that? >> well, i think it will go beyond just the fha. it will be fannie mae and
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freddie mac. it will have down payment availability as low as between three and 5%. and what troubles me, is that it is not just lower down payments but the potential for intersecting that with consumers with weaker profiles. we've seen this movie before and it didn't end well. when you intersect both lowdown payment and weak credit profiles, that to me is a recipe for problems down the road. liz: susan, how do you see it, as somebody who has studied this very closely? i'm sort with greg. it was very hard for me to get get a mortgage recently. i wouldn't fall into the freddie mac or fannie mae parameters. make it easy for me to buy a house too. i think i had to put down 25 to 30%. >> lenders are actually with you. they're not making these loans. they are able to make loans under loser standard but they're not making them. their standards are far stricter than gses will require.
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this will not change. that i think down the line this could have consequences but right now the issue lenders are not making loans they can make under today's standards. liz: so you don't expect that at all to change with the new lower 3% minimum, the previous minimum was 5% for fannie mae and freddie mac? >> no, i don't expect this is going to be tomorrow a game-changer we'll wake up to a new world. what i do see is two things. one, that there is ongoing conversation in the private sector and fannie mae and freddie about putbacks which is the real risk and why banks don't want to make the risky loans. who can blame them. they're absolutely right. we don't want to go back to poor underwriting some that is in discussion. down the line, which i think is really interesting here, this statement tells us that fannie mae and freddie mac are back in the game. that will have con concernses down the line. -- consequences down the line. liz: might have positive consequences. greg, is there a disconnect and can we get gap tightened between
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the ben bernankes of the world who had trouble getting a refi and looser standards from fannie mae and freddie mac? would that help stimulate a housing market in a better way? >> the ben bernanke circumstance is great talking point, great headline. reality of this, liz, if you or i quit our jobs and went into business for ourselves, we wouldn't get a loan either. liz: he will make hundreds of thousands of dollars per speech, he has a book coming out, where is the logic with the regular lenders. >> that doesn't fly with regulators. they want to see track of income, not what the guy make down the road. whether he is ben bernanke or joe smith. that doesn't matter. they want to see proof of income provided, not potential down the road. the disconnect, with a lot of credit worthy people whether ben bernanke or joe smith the business owner, can not have not been able to get credit for the past two years. what you're seeing now, easing
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credit for people that arguably should buying a house be really high priority for somebody with weak credit and doesn't have any money for a down payment? i don't think so. yet we'll ease lenderring standards in that area without addressing the very credit worthy, very affluent asset-rich people that otherwise can't get credit. >> liz, if i break into that right now. i think key word is bureaucrat. these decisions are being made by bureaucrat. that has got to change. liz: again, a privilege, not a right to own a house. thank you so much for weighing in on one new standard. greg mcbride, susan wachter. david: i will personally back ben bernanke's loan. i give him my phone number. i give him my money. we're moments away from ap's earnings report. will they give into pressure from carl icahn to announce a new buyback program? he outperformed during the last bear market and outperformed during the current
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bull market. what is his secret? he joins us coming up next.
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liz: breaking news. apple just came out with their numbers. we're showing the stock's reaction. it is moving fast and furiously. apple closed at $99.76. the bid, 98.66. it is moving all over. now the bid, david, 99.09. david: mark spoonour, editor-in-chief, here to talk about products.
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john bright coming up from avondale. he is going through the numbers to tell us how the numbers are shaking out. we see it has 101 handle. this stock is moving up after-hours. you know how it is, it could move down again. we were talking about apple pay all day long. this is the biggest sort of game-changer that apple has to offer right now? >> i think it could be. a lot of analysts are asking when will the next big product going to come. people are talking about hardware. apple pay is trojan horse. when you set it up it says you have the card on file. people are making too much of the in-store payments. apple pay, in app payments is game-changer because you don't have to do anything. liz: let's get to cheryl casone. the iphone number is staggering. they sold on the quarter, 39.3 million iphones. outpacing. >> that is definitely a beat on estimates. we were looking for 38.9 million.
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talked about iphone 6 and iphone 6 plus. that is only 11 days of quarter. we're seeing a little bit of weakness. sales down 13%. mack, this is interesting. up 21%. one of the things that analysts at avondale are saying you have to be aware, now with the cloud and connectivity of devices you will see more mac sales, desktops, believe it or not. it is 1997. we're seeing strong iphone number. a big part of that is china. we're getting comments from the ceo. believe it or not. the chinese iphone sales surpassed previous iphone 5 and 5c sales. we're seeing big boost from china, guys. we're getting a little bit more of a pop. earnings per share a buck 42. the estimate was 1.31. nice beat on that. revenue coming in at 1 -- david: cheryl, you mentioned avondale partners. john bright came out with a long
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report on apple. they have a price target of $110 for apple. john, what do you think of the numbers? >> i like the numbers. number one thing i was looking for was the gross margin. how profitable are the new iphone 6, 6 plus sales, although small portion in this quarter. where did they outperform. europes and america. i like numbers. i like guidance as well. guidance such on revenue side. gross margin guidance is up as well. liz: gross margin came in 38%. i know why you like that number. i think chinese phone sales are pretty staggering. remember the iphone 6 only went on sale last friday in china, correct? they're now saying that the chinese iphone he is sale surpassed previous iphone 5 and 5c launches there. how big could the china sale be? >> i think it could be a very big sale. down sequentially 3% looking at
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numbers i think that shows an area for geographic expansion when people talk about this market being fully penetrated. there are still significant penetration to go on geographic front. david: mark, let me talk about an app that i don't think has been given enough attention. when we talk about game-changers, one of the biggest g are looking for, i assume europeans and asians as well, is how to get away from cable. there is an iphone 6 app for hot spots. if you have an iphone six to create a hot spot in the area for all of your apple products, whether its an imac or an apple tv. i don't need a cable. if i have a hot spot through my iphone 6, i can get rid of my cable and use my apple tv, correct. >> you could. a lot of people are looking to cut the chord literally and figuratively. david: that is a game-changer, mark. not only for apple but for the entire industry, is it not. >> i at this it has the
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potential to be in terms how it is executed, yes. liz: when will apple tv come out? david: it is out. i have it at home. liz: but it's a little cube and it doesn't do very much. >> i thing to watch with apple tv what they will do with the smart home implementation. imagine it becomes a hub for the smart home and connects through it. that is where it has a lot of potential. david: if you use the new app of the iphone 6 to cut the cable, you could reduce the fees 200, $300 a month. this could enormous game-changer, not only in the u.s. but europe and others. i have to talk more finance now. this carl icahn idea of share buybacks, he is always pushing for share buybacks for apple. do you think he will get it this time or in the near future? >> i don't think so, dave. they tried to set the standard last march, all capital allocation will be revisited annually in the march time frame. i think they hold to that
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strategy. see how they sell into the marketplace. don't forget i pads underperformed. macs better. ipad's underperformed. they want to see how the perform in the first quarter. they will review it at that point we know the ipod is pretty much going away but i still find $410 million business, that was the revenue came in for it, is something that they will put in a museum. either way though, john, the next big thing people look for is the watch. it will not make the holiday season. does that hurt apple as microsoft says it is coming out with something? >> i don't know. i'm on fad versus fundamental on watch front. it is another platform might be used for apple pay. people might find use for that. we talked about health applications associated with it. but it is something else you have to put on your body, versus the phone which you're eliminating something you're carrying in the credit cards and adding significant amount of
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security. david: mark, let me talk about something else that i think is underrated. encryption of the new iphone 6. i talked about it to the mastercard guy. he was very excited about that. it is so good, the fb it, department of justice, the police force of chicago, they want a back door to get into that system just in case they're chasing bad guys and can't do it. does apple make some kind of an agreement with law enforcement for a back door, so-called golden key? >> i don't see that happening, at least in the near term especially because apple wants to reassure consumers with security especially in light what happened with photos that were leaked and they want to make sure that people are confident in the security of apple pay even though it is not directly related. i don't see them budgeting anytime soon. security equals trust. liz: we now have the bid above $100. as we look all that is going on with this, mr. spoon now, you're the one who tested these things
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and looked toward the next big thing, how does the iphone become revolutionary again versus evolutionary? >> i think for a lot of people the big screen is revolutionary even though samsung and others had it for a while. you will look toward new features like bendable displays and how do smartphones and wearablessable market converge at some point where you are a lot more different with the designs. david: john, quickly, all the new products and new applications have perhaps already been baked into the price, have they not? >> i think a significant amount of them have but what has not been appreciated very simply is the recurring revenues growing, driving multiple expansion. apple pay, iphone, itunes, the app store. those drive recurring revenues that creates stability. that is multiple expander not reflected in the stock. liz: okay. great to have both of you. mark spoon our and john bright.
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david: apple sup 1% after-hours. -- apple is up 1% after-hours. makes you wonder if a lot of this was baked in. the cdc is set to release new stricter guidelines for treating ebola patients but will they go far enough? liz: plus u.s. safety regulators putting out big warning to owners of more than 4.7 million vehicles. which ones? the details next. david: ibm, it abandons its earnings target and reports sharply lower profit. with 60% of the shares owned by mutual funds and institutions, odds are probably somewhere in one of your portfolios. so should you sell it for good? ♪ (vo) you are a business pro.
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david: next apple, ibm was the most important stock reporting earnings. reports showing big blue transition away from the older hardware business proving to be financially difficult. >> the stock got creamed. joining with us ibm's latest earnings report is shapesa. you really dug into the problems -- adam shapiro. >> ibm's reboot took a toll on company earnings and caused the stock to plummet at the opening bell to a new 52-week low. revenue at big blue slipped to $22.4 billion, found 4% compared to the same quarter last year.
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ibm said unexpected slowdown in sales hit the top line as the global economy is actually slowing down. the tech giant has failed to increase revenue for 10 straight quarters and is now backing off a promise to hit earnings per share of $20 by 2015. now, ibm's ceo says the company, obviously disappointed but they continue to move forward with plans to expand into cloud computing, data and analytics as well as security and mobile digital platforms. now part of that strategy includes divesting of ibm's former traditional business unit. things like ibm micro electronic semiconductor business which i will be a acquired by global foundries. big oui blue is paying them, paying them, $1.5 billion to unload the semiconductor business, to get it off their hand. ibm will still conduct research into chips. despite all of that news, not many downgrades on wall street today. in fact most analysts not only stood by their ratings but maintained their price target.
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ubs maintainedded neutral rating at $159. -- $195. citigroup and can'ter to fitzgerald sticking to their price targets. ibm has 19 hold ratings, david. david: adam shapiro, thank you very much. liz: so with so much volatility, many investors are asking themselves, how do you manage your money and where to put your money? our next guest will tell you where to make a profit even if we're heading toward a bear market. david: joining us is kelly wright, investment quality trends chief investment officer and portfolio manager, who by the way outperformed the market during the bull market as well as bear market. first question, kelly, are we heading for a bear market? >> well, at some point, you know, it is very cyclical, david.
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you're going to have one ever so many years. it is the way our system works. we have expansion, we have contraction. sure at some point we'll have another bear market. liz: it really didn't underscore in the beginning when we introduced you, how you managed to outperform even during the downside. back in 2008 during the bear market you were down 18%, the broader market, the s&p was down 38%. what is your secret, kelly? how do you invest so you succeed in both good types and bad? >> well, liz, here's our approach really. we think at the end of the day that the entire purpose of investing is to get a return on investment. so we have a two-phase process. is we look for quality and then we look for value. so there is over 15,000 publicly-traded stocks. not all of them are good. so you need to have some way to filter out the good from the bad and we have good old-fashioned six criterion. very fundamentally and we whittle that down to about 259
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stocks. then we take a look at each one of them individually. and we graph them. we graph their monthly returns over 20, 25 years. we find their highs and lows, and then we identify what their dividend yield was at each of those high and low end periods. so the stocks that meet our criteria tend to trade between two very distinct dividend yield areas. >> kelly, forgive me for interrupting, let me go into just one of your picks because it is right in tune with the news today. ibm, of all stocks the one that is hit the hardest is one of your picks. i assume the old adage, buy low one of the reasons you're going in but give us a more fulsome explanation why you like ibm right now. >> okay. well, here's the nuts and bolts of it. if you take a look at ibm historically, whenever it yields 2.6%, historically that has been a very good buy point. meaning that it is unlikely that the stock is going to drop much below a 2.6% yield.
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so, at $169 based on its current dividend, $4.40, that is right at a 2.6% yield. >> now we're looking -- >> all things being equal, all things being equal that's a great time historically to buy ibm and, so that's what we do. liz: with your other two picks, chevron and walmart, i guess i want to ask a collective question, you don't buy and hold forever. you don't fall in love with a stock. in fact you will sell because you say the value stocks you work so hard to pick sometimes lose their value. when do you know that point, kelly? >> we like to say we like to date but we don't get married and you know the opposite end of buying at the high yield, all of these stocks will cycle at some point where they get to a historically repetitive area of high yield. and when it gets to that, i mean to low yield. when it gets to that low yield
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point it is just not attractive anymore and buying stops. when buying stops you get some inertia that sets in and it starts to roll over. we have these very defined areas of low price, high yield and high price, low yield. and that's when we sell and we to find something else in an undervalued area to buy. david: you want to listen to somebody that makes money when the market is bearish or bullish. that is what kelly wright does for us. good stuff. appreciate it. >> thanks for having me. david: absolutely. two new initiatives from the government in the fight to stop ebola including new guidelines for u.s. hospitals and new response team. all the details coming next. liz: u.s. safety regulate warning more than 4.7 million car owners to get their airbags fixed immediately. are you at risk? >> hi, everybody, i'm gerri willis, coming up on my show at the top of the hour we'll have full coverage of apple earnings and what the stock is doing after-hours. also apple payrolls out
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today. i will break doesn't good and the bad. one of the big consumer stories coming up on "the willis report" in just a few minutes. the absence of improvement. and the enemy of perfection. which is why you can never stop moving forward. never stop inventing. introducing the mercedes-benz gla. a breakthrough in design, aerodynamics and engineering. because the only way to triumph over decay... is to leave it in its own dust. ♪ a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week.
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ghave a nice flight!r bag right here. traveling can feel like one big mystery. you're never quite sure what is coming your way. but when you've got an entire company who knows that the most on-time flights are nothing if we can't get your things there too. it's no wonder more people choose delta than any other airline.
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david: the national highway safety traffic administration is warning owners of 4.7 million cars recalled for airbag
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problems to get them repaired immediately. the warning covers dated back to cars from 2002. deflators could rupture, causing metal pieces to fly out when the bags are inflated. expected 20 million cars have faulty inflators. automakers affected by recall, toyota, mazda, meets beer think, nissan and subaru. if you have a open recall to need to be addresses, visit safer car.gov. safercar.gov. liz: cdc is set to admin steer strict new guidelines for ebola. that might affect hospital workers nationwide. david: rich edson from d.c. it deals with the protocol issue. remember when the nurses got sick, the cdc is kind of putting the blame on them for not following protocol. now i guess the protocol is wrong, right? >> first couple days they had exposed skin when treating the first ebola patient.
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now the cdc says if you treat an ebola patient, no exposed skin and protective gear all over. the new guidelines will set standards for removing the gear safely. the new rules are expected within the next day and as a result of those two health care workers in dallas. one top government health official reassured medical staff the new guidelines will be a significant safety improvement. >> right now those protocols are being changed so that we can have as jessie said, much more stringent attention to training, to training to observation, to make sure you're well protected. >>? washington, more criticism over the nation's ebola response. he select ad attorney, former vice president biden's chief of staff ron klain as ebola czar. the house government oversight committee requested klain testify friday at hearing on administration ebola response. the committee claims white house
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declined as klain starts his new job on wednesday. republicans say klain is political appointee is with no health management service. they say his extensive work, with the stimulus under vice president joe biden says qualifies him for the job. david: apple reported earnings moments ago. its trading 1% up from the end of the day. what will happen overnight? what will it do tomorrow morning when the runner -- rubber hits the road? we'll find out. liz: a group of researchers find a smart watch game-changer. we keep hearing about game-changers but wait until you hear this one. we take you "off the desk." ♪ are we still on for tomorrow? tomorrow. tomorrow is full of promise. we can come back tomorrrow. and we promise to keep it that way. csx. how tomorrow moves. what a day.
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top and bottom line, posting earnings per share of buck 42. apple, selling 39.3 million phones. that is up 16% from one year ago. while 12.3 million ipads. 5.5 million macks and 2.6 million ipods were sold during the quarter. guidance, 63.5 billion to the 65.5 billion, that is at the high-end of apple estimates. >> time to go "off the desk." if you have a smart watch you may be able to scroll through the music library by simply touching your own skin. carnegie mellon interfaces group, they paint touch sensitive icons, they are made of tiny little lasers that respond to touch sensitivity. liz: tattoo u. number one things out tomorrow, yahoo! earnings coming out after the bell. expected to post eps of 30 cents a share.
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1.4 billion in revenue. they will listen closely as always to ceo marisa mayer on the conference call. she is expected to announce a new plan for the company. anything alibaba related we'll report. "willis report next. >> imgerri willis. coming up today on the show. apple set to move markets tomorrow morning after they report blockbuster earnings report just a few moments ago. we'll have details. thomas duncan's family may now be in the clear on ebola but officials in dallas are still monitoring more than 100 people who had contact with another victim. plus a look at what the virus actually does to your body. shoppers are scared. that is what a new survey says about retailers that have been hacked. so will you be staying away this holiday season? "the willis report," where consumers are our business, starts right now. gerri: we begin tonight with apple earnings. once again beating analyst expectatio

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