tv After the Bell FOX Business November 1, 2018 4:00pm-5:00pm EDT
liz: just to be clear, rick says the big move to make sure it doesn't swing out of your favor, not sell when types are volatile right? >> exactly. [closing bell rings] liz: good to see you. markets end higher for first day of november. dow industrials up 271. tomorrow the jobs report. melissa: green across the board. it is the third straight rally on wall street as we're awaiting new remarks from president trump at the white house. the commander-in-chief is expected to speak at any moment on immigration. we'll bring you the president's comments as soon as they happen. i'm melissa francis. >> i'm connell mcshane. that is one of two big breaking stories we'll watch on "after the bell." apple will be reporting its latest quarterly results in this hour. you will find the numbers first on fox business before it impacts your money tomorrow. now the dow is up 265 as we
close things out. melissa: nice. connell: very nice. s&p five hundred and nasdaq up three days in a row. the first three-day winning streak since august. melissa: isn't that amazing? connell: that is crazy. >> i checked before the show. connell: gerri willis on floor of new york stock exchange. hey, gerri, pretty good day. >> i love a day in the green as you say. dow up 264. s&p 500 up 28. both indexes up 1% and change. look at nasdaq, up 1.75%. of course that index that has suffered most. i want to talk about hbo going dark for the first time in its history. this is due to a standoff over dish network over the terms of its deal. this is a very big deal. lots of words being thrown between the two companies. hbo went dark on dish and sling
tv. dish says it could be the first of many blackouts. want to talk about fitbit. this is a good news story. weighting estimates on revenues and earnings third quarter. the company's smartwatch revenue growing significantly. it makes up 49% of total revenue. why is this important? we'll have apple coming back. they don't break out their watch results. it's a view into that business. accounts very positive. spotify, they're reporting but they are reporting profits that tempered the outlook for new subscribers. that is a big headline with spotify. send it back to you guys. connell: gerri, we'll bring in the market panel. talk about the day that was. look forward what we'll hear in a few minutes. heather zumarriaga is with us from vision four. jonathan hoenig from the capitalist pig hedge fund, fox news contributor with us as well. heather, do you view anything
three days in a row upside or the conversation between the president and china? >> this is great rally after the awful month we had in october. this is about the conversation and productive talks president trump had with president xi this morning, easing some chinese trade tension concerns and those tariffs. the fact that the market rallied after those productive talks tells me the market is still worried about two things, the federal reserve raising rates and tariffs. those are two major moves, macro moves driving this market higher or lower. lower today. connell: it is true, heather, we do get moves in either direction once there is a little hint on the tariff story. we got that in the presidential tweet. jonathan said, hey, we had a good talk, things are productive, next thing you know the market did take a or move a leg higher. what do you say? >> the real selloff, october was
a selloff was massive. the real disasterous, 900 point reversal came after the president hinted at more tariffs. to heather's point, market welcomed certainty with respect to tariffs. interesting more 52 week lows than 52 week highs. breadth is still quite negative. everyone is waiting for apple coming up any moment that will move the market. connell: talk about technology. you're watching on the split screen, white house on bottom right. i want to follow a couple things. president will speak on immigration in a few minutes. we'll take that live once he begins speaking. however you will hear and be able to hear analysis of the apple earnings report as soon as it cops out. so we'll come out, come in and out of the president. melissa: not going to miss a thing. connell: you never miss a thing. heather, what do you make of action in technology? apple, if you think about it, that is one of the big techs that actually held up pretty
well when everything else was selling off. only off 3% in october. amazon down 20. what are you expecting here this afternoon? >> i expect a good earnings report from apple. steve jobs, you pointed it out bevacqua he said, you don't know what you want, customers don't mow what they want, until you show it to them. the fact that the market is so saturated with iphones, not everybody in the world has an independent phone, but you're getting there in terms of saturation. apple had to increase the price of their iphone. look, they did it and at 999, the iphone x. i wasn't going to buy it. i didn't think anyone would pay for it. people did. although they sold less phones revenues were up 14% last quarter because their prices are going up. i think that's key. connell: the market is pricing in a big move, larger than normal move tomorrow, jonathan, the options market in apple's share price. it is interesting to see how these companies stocks react to
their reports. facebook be the other night. didn't think it was greatest report. next thing you know there was buying in the stock. anything we can read in broader market? >> apple tells the tale. that terms the attitude of broader market. apple is not any other tech stock. this is 6% of the dow jones industrials. it is 13%, this is the 100 point behemoth, big elephant in the room. connell, all rest of technology melting away, apple amazingly still up. rest of the market flat for the year, apple still up 30% year-to-date, heading into these numbers. the stock will move. connell: we have them as soon as they are out. we'll come back. the other big story, melissa. melissa: president trump expected to speak on immigration. blake burman live at the white house with what we can expect. reporter: ten minutes out from the roosevelt room. we'll talk about the immigration crisis is how one white house official put it, that is how the
president and this white house sees it. a few big topics the president makes the speech, statement, however you want to describe it. he will first talk about the southern border. secondly we expect him in non-specific ways potentially process is asylum claims. sours tell fox one plan they are considering those seeking asylum have to go to a port of entry in order to gain asylum. third, the president once again will put blame on democrats for the current position we are in. we have heard the president talk about this for days if not weeks, into months at this point. we're five days away from the midterm elections. the president last night was in florida, campaigning for rick scott and ron desantis when he talked about this upcoming caravan. >> republicans want strong borders, no crime, no chaos, and no caravans. [cheering] democrats want open borders, and
they want to invite caravans after caravan into our country, which brings crime upon crime. [booing] port for the that is part of president trump's final pitch as we head down the stretch here to election day on tuesday. by the way, it will be a quick turn here at the white house. after this the president boards marine one, air force one and he will head over to missouri. there is a razor-tight senate race there, claire mccaskill, incumbent democrat, josh hawley, attorney general, trying to unseat her. last three fox news polls including most recent one, show it dead-even. it is that way in missouri for couple months. the president is trying to flip the senate seat. medical sris is a. melissa: plenty of time to sleep after wednesday and beyond. blake burman, thank you. ken paxton, texas attorney general. let me ask you about one of the ideas that blake put out there, that they're anticipating the president is going to speak about this idea only being able to process asylum claims at the
port of entry. i was wondering if the whole thing about birthright citizenship was to get the conversation going, betting this other topic going, once you cross the border into the country you can't claim asylum anymore? if you want to do it, you have to do it the right way at the port of trendry, what do you think? >> i think it's a great idea. it makes it more orderly. allows people to know what the process is i it is not as chaotic than it has been in the past. probably better for people seeking asylum and they will know how to do it. melissa: will they know though? one of the things reported from the caravans on the way up they are not getting a lot of information. >> tends to work this way, once we set policy in place, ultimately people find out what the policy is. whether it's a lax policy like the obama administration or tougher policy like the current
administration. typically they end up finding out what the policy is. >> you're someone who is in a border state. one of the claims that has been made. that as people come there, the caravan comes to cross the border in one place that drug cartels target another place along the border because they know the focus is somewhere else. some people say this is true. another side this is an excuse for sending more military or border enforcement down to the border. what is the your take? what is the truth? >> they will look for weak point crossing. we have our own state police. there we have the military. there anything that we can do to protect the border. you know we're for it in texas. melissa: ken paxton, stick around for a second. we'll come back to you shortly as we await the president. we have breaking news. connell: breaking news on the earnings fronter from not apple, but cbs, big media company just
out with results. gerri willis to go over them for us. looks better than expected, gerri. >> that's right. it's a beat on the top and bottom line. adjusted eps coming in at $1.24, better than expected. revenue higher as well at 3.26 billion. the company itself trading higher after-hours. they are saying, this is according to the company, this is our best third quarter every. they have final four next year. they have the super bowl next year. this is coming out in their earnings conference call. they say they are on track more importantly to achieve their 2018 out look, citing strong entakenment avenues. this report considered a referendum on ceo, formerly coo, stood in for moonves, les moonves, joe ianniello. everyone was watching this particular earnings report how cbs can do with ianniello at the helm.
requests whether he is a programmer. he has blown this quarter out. they are waiting to get a permanent chairman and ceo in place. connell: future moving on from les moonves, big question from cbs. looks pretty good. we're waiting for apple. melissa. melissa: we're waiting for the president. let's bring in james freeman, "wall street journal," he is a fox news contributor. what are you hearing about the speech coming up in the roosevelt room? that he will lay out guidelines potentially for changes to immigration? what do you expect? >> i'm hoping we hear more what we heard from the president yesterday when talking about the great economy. all the job openings we have and we need more workers. he hasn't been able to say that in a while. there is a discussion about the caravan. he is synonymous cracking down
with illegal immigration. we have a discussion how we have system to enforce the law at the border. there is more talk like we heard from him yesterday, how we bring if talented people who want to work. melissa: let's bring in ken paxton as well. ken, do you agree that is one of the problems? when we see interviews with peep in the caravan, some say they're coming for asylum. a lot of people say they want to find a job. they're good people. they want to work. we have seven million open jobs. we don't seem to have a organized system in order to get people in here legally and efficiently. what do you think is the solution? >> i do, i think that is absolutely correct. solution is for congress to come up with a lawful way for the workers to come. it is clear, in my state, while we do want to prevent illegal immigration, we do need legal immigration because we are short on workers. there is all kinds of businesses in texas that could hire legal immigrants. we're certainly open to that in texas. melissa: james, why is it so hard to have that conversation
at the same time? i mean it seems like it gets lost in the yelling that for people that don't want illegal immigration, they're not against legal immigration. if we could straighten out the system, we could get workers we need, and you know, sort of sort through folks that are trying to get in in an efficient way that makes sense? >> it has been one of those frustrations of over the last couple years. obviously a lot of good news out of washington in terms of tax cutting, deregulating but the big frustrating deal never occurred you thought there was an opportunity there where the president gets the wall in return people who want more legal immigration get that as well, once people are comfortable that laws will be epforced. it never happened. i think the democrats decided resistance was the better approach politically to deal with president trump. i would hope after this election 2019 maybe is an opportunity to get that kind of deal where you
get enforcement but also an open door for people that are, that are, should come in and can help the economy. melissa: ken, seems like part of this conversation is a clever trick on the part of the president, hei will do it by executive order. then you have people in congress immediately screaming no, no, it is our job, you're stealing our job. we sit there and say, right, it is your job. why don't you hop on that, try to reform immigration like, it is very obvious we need it? what do you think? >> now there is no doubt, you're right about this. the president did offer up a compromise where he got the wall and then he would open up more immigration. so, i'm pretty sure that the democrats stopped it because they wanted it as an election issue in the midterms. hopefully after the election is over we can get back to business, congress can actually get something done. ultimately the president can suggest lots of ideas but it is
up to the democrats and republicans to solve this problem and people expect that. melissa: james, seems he is trying to trick people in congress to do their job for a little while here. he started out with the idea of compromise solution a little something for everybody to love, something for everybody to hate. couldn't come together. there was a "schumer shutdown." couldn't come together to get something done. he will issue an order and do something you really hate, why don't you hop on it so i don't have to do that? is now going to be finally be the time they do something? >> it is interesting i think this may be a political winner for him because while i think most people, you look at polls, they appreciate the contributions that immigrants make when we have more legal immigrants coming here to work, people value them but the president, or reaction from democrats has been so radical, we can talk about how far away this caravan is but, to say that thousands of people shouldn't be able to unilaterally decide
they're going to ignore our laws and cross the u.s. border, to make it, have a situation where some politicians are unwilling to say that's bad and they oppose it is really bizarre. i say thises as someone who is wants to have more legal immigration. this shouldn't be a tough call but democrats for whatever reason are reluctant to agree with the president, even on something so basic as enforcing our laws. connell: do wonder about the timing of all this, we look at roosevelt room in the white house, wait for the president to come out any minute now. we're talking about how congress has to pick up the ball and move along with this but we do have this little thing called the midterm election, james, next tuesday and almost part of me wonder whether this issue goes away after that? maybe that is cynical. the president's critics said he only brought this issue to the
fore because of politics. >> part whether participant in the caravan still see purpose to it. this began, according to left-wing political activists in honduras taking credit for it. among, from political actors i should say who have very different we're looking to embarass the president among other things. maybe he has less interest in it. i don't think issue, problem goes away. this year you can see the perfect, sensible bargain where we get the rule of law at the border but we also get passage for people who want to come here and work? connell: ken what is reasonable time frame to expect some actual action legislatively on this issue? >> james is right. this was created in honduras and other countries.
this wasn't created by the president. he is reacting to it. he has been asking for congress to deal with it since he came into office. i don't think it would be unreasonable for new congress to take it up immediately. everyone is interested in the issue, from the presidency, across the nation, my state, everybody is interested in the issue. want something done. melissa: can see the president walking into the room right now. walking up to the microphone. let's listen in. >> appreciate it. and good afternoon. i would like to provide an update to the american people regarding the crisis on our southern border and crisis it is. illegal immigration affects the lives of all americans. illegal immigration after hurts american workers, burdens american taxpayers and undermines public safety and places enormous strain on our local schools, hospitals and communities in general.
taking precious resources away from the poorest americans who need them most. illegal immigration costs our country billions and billions of dollars each year. america is a welcoming country and under my leadership it is a welcoming country. we lead the world in humanitarian protection and assistance by far. nobody even close. we have the largest and most expansive immigration programs anywhere on the planet. we have issued 40 million green cards since 1970. which means the permanent residency and a path to citizenship for many, many people. but we will not allow our generosity to be abused by those who would break our laws, defy our rules, violate our borders, break into our country illegally. we won't allow it.
mass, uncontrolled immigration is especially unfair to the many wonderful, law-abiding immigrants already living here, who followed the rules and waited their turn. some have been waiting for many years. some have been waiting for a long time. they have done everything perfectly. and they're going to come in. at some point they're going to come in. many cases very soon. we need them to come in. because we have companies coming into our country. they need workers but they have to come in on merit basis. they have to come in on a merit basis. the communities are often left to bear the costs and influx of people that come in illegally. we can't allow that. there is a limit to how many people a nation can responsibly absorb into their societies. every day above and beyond our existing lawful admission programs, roughly 1500 to 2,000
people try crossing our borders illegally. we do a very good job considering the laws are so bad. they're not archaic, they're incompetent. not that they're old. they're just bad. and we can't get any democrat votes to change them. only the republicans that are in unison, they want to change them. they want to make strong borders, want to get rid of any crime on the borders which there is a lot. we've done a great job with the laws that we have. we're moving in tremendous numbers of people to get out the ms-13 gangs and other gangs that illegally come into our country. and we're getting them out by the thousands. but this is a perilous situation and it threatens to become more hazardous as our economy gets better and better. a lot of the cause of this problem is the fact that we have
the hottest economy anywhere in the world. it is doing better than any economy in the world. jobs, unemployment. you look at any number, right now we have more workers than anytime in the history of our country. we have more people working. which is a tremendous statement. more people working than at anytime in the history of our country. people want to come in and in some cases they want to take advantage of that. that's okay. we want them to come in but they have to come in through merit. they have to come in legally. at this very moment large, well-organized caravans of migrants are marching towards our southern border. some people call it an invasion. it is like an invasion. they're violently overrun the mexican border. you saw that two days ago. these are tough people in many cases. a lot of young men, strong men, and a lot of men that maybe we don't want in our country but again we'll find that out through the legal process but
they have overrun the mexican police and they have overrun and hurt badly mexican soldiers. so this isn't an innocent group of people. it is a large number of people that are tough. they have injured, they have attacked and the mexican police and military has actually suffered. and i appreciate what mexico is trying to do. so let me begin by stating that these illegal caravans will not be allowed into the united states and they should turn back now. because they're wasting their time. they should apply to come into our country. we want them to come into our country, very much. we need people to help us. we're all the companies coming in. we never had anything like this. we have car companies coming in. we have foxconn, so involved with the manufacturing of apple products, coming in in wisconsin. we have a lot of companies
coming in but they have to apply an they have to be wonderful people that are going to love our country and work hard. we have already dispatched for the border the united states military and they will do the job. they are setting up right now and they're preparing. we hope nothing happens, but if it does, we are totally prepared. greatest military anywhere in the world. it is going to be, is now in great shape, no longer depleted as it was when i took over as president of the united states. the government of mexico has generously offered asylum, jobs education and medical care for people within the caravan but many members of the caravan refused these offers, which demonstrate these migrants are not legitimate asylum-seekers. they're not looking for protection because if they were, they would be able to get it from mexico. mexico has agreed to take them
in. and encouraged them to stay but they don't want to stay. they want to come into the united states. so this is no longer safety. asylum is about safety. asylum is not a program for those living in poverty. there are billions of people in the world living at the poverty level. the united states cannot possibly absorb them all. asylum is a very special protection intended only for those fleeing government persecution based on race, religion, and other protected status. these caravans and illegal migrants are drawn to our country by democrat-backed laws and left-wing judicial rulings. we're getting rulings that are so ridiculous, so bad, they're writing the laws. can't do that. collectively known as, as an example, catch-and-release. it is a, it is a disgrace that
we have to put up with it. these policies lead to the release of illegal aliens into our communities after they had been apprehended but we're not releasing anymore. big change as of a couple days ago. we're going to no longer release. we're going to catch, we're not going to release. they're going to stay with us until the deportation hearing, or the asylum hearing takes place. so we're not releasing them into the community. we have millions of people that over the years have been released into the community. they never show up for the trials. they never come back. they are never seen again. and those people, they know who they are, and we know a lot of where they are, who they are, and those people will be deported, directly deported. the biggest loophole drawing illegal aliens to our borders is the use of fraudulent or meritless asylum claims to gain
entry into our great country. an alien simplies crosses border illegally, find as border patrol agent and using well-coached language by lawyers and others that stand there and trying to get fees or whatever they can get, they are given a phrase to read. they never herd of the phrase before. they don't believe in the phrase. melissa: we have apple earnings just seconds away. we're listening to the president right now, talk about immigration, making his points again about how this is congress to fix and we are a nation of laws, people seeking asylum have been offered asylum in mexico. he wants to fix the system to bring more workers here as we need them. we'll keep an eye on that. we're seconds away from apple. get a few thoughts before we get the numbers. adam lashinsky is "fortune" executive editor. fox news contributor. lance ulanoff, tech expert, heather zumarriaga and jonathan hoenig are back as well. heather, i will start with you.
what are you looking for in this report? >> two things. average selling price. see if the price of their phones are going up. but are customers willing to pay for that. i want to see if the service sector is growing. that is very important. melissa: lance, what is the number one thing you're looking for? >> some hint how the new phones are doing. they haven't been out for that long. we will get some indication of the 10-s and 10 x max how they are selling through. melissa: adam, what is the biggest point to you? what are you listening for? >> the other big point what they say about the china business, which is very large and obviously very volatile. melissa: jonathan i will give you the final round on that one. what do you think? >> i'm curious to hear they mentioned tariffs. president in his remarks mentioned apple as major manufacturer. more than anything, the reaction of the apple is 10 points from the all-time high, if they can stick it, this market might have hope for sustained turn around
indeed. melissa: on the panel, i'm not sure we got numbers yet. would you bet we're going to see -- i'm sorry? would you bet we're going to see a beat? lance, what do you think? are they going to be able to beat? apple has been good sandbaggers for a long time. >> this not the quarter, it is not a blowout quarter for them usually. they have kind of given us predictions where they're going to be. i don't know they're going to beat. they will certainly meet. i always say i never bet against apple. melissa: heather, what do you think of sandbaggers? >> that's right. going into the fourth quarter usually their biggest quarter before the shopping season. connell: let me jump on you, heather. headlines are crazy. 2.91 a share, versus expectation of 2.78. that is better than expected figure. now the stock after-hours is down 3%.
tim cook has comments already, crossing on the tape. lark lash, you want to take -- adam lashinsky, you want to take it. more figures? >> i am not surprised. very good. they have been playing this game for years. i'm sorry, did i not say sandbagging? melissa: jonathan, what is your reaction to number on eps? >> stock beat yet market trading down. this is trend we've seen this entire earnings season. even got earnings sold off. not a big move so far, 3 1/2%. how the market continues to react the news, how it goes out, will set the tape for tomorrow's trading and the rest of the year as well. melissa: susan li. >> apple in terms of earnings per share, profit, bottom line, a beat, 2.91 a share for the quarter. ahead of estimates.
connell mentioned 2.78. revenues ahead of expectations. 62.90. ahead of analyst calls, looking for 9.7 billion. reason why the stock is down close to 4% we got revenue guidance for the current quarter we're in coming in a little bit light. from what i see expectations $93 billion. apple calling for something between 83 to high 90s in terms of billion dollar revenue guidance. that is little less than expectations. i will sift through and look for handset sales. break those down, rest for individuals. melissa: not for a little sandbagging. you have to set up the sandbags ahead of time, when you manage back the expectation and come in and beat it. susan thank you. connell: we should go back to adam. started to have the conversation before. almost reminds me of i guess amazon. when companies come out with guidance, what type of guidance? it is sales guidance.
it is lower again. a little ground hog day. what do you make of it from apple's point of view, adam? >> i do think it is funny. they're setting up to beat three months from now. melissa: right. >> if they possibly can help it. they give us wide as range as possible. they have made their assumptions for the christmas season. but they don't have, they're not necessarily sharing them with us, despite what they're saying. melissa: i want to throw in a few more figures as you guys are talking. number much iphones sold worldwide edged up 1% to 218 million. they did deliver record revenue as we said of 265.6 billion, up 14% from the previous year but what do you think of those iphones sold, connell? connell: lance, why don't you jump in on that if you can? >> i was going to say, it is interesting, the number didn't move very much at all. there may have been a pregnant
pause because they knew apple would come out with new phones or new models. apple didn't count in the 10-r, which was a month after the 10 hx and 10s shift. the biggest lie on es share are iphone x and newer models. people are not adverse to the price hikes. they're still going after the most expensive phone. connell: you think people will pay up for them? that's kind of -- >> they do. connell: absolutely and they have. i guess the question in terms of going forward, will they continue to, heather? that is the idea, heather. >> that will carry them forward. if people are willing to pay more for iphones, when iphone x was $999 i didn't think people would go out and pay. revenue is going up because iphones are going up. service sector growing in terms of icloud, itunes.
that is important for apple. that is the second biggest revenue generator. melissa: susan li has more details. don't want to put too fine of a point. guidance had been for 89 billion, 89, to 93 billion. so analysts had expected 92.3 billion. so it is still the same number. it is just slightly lower. putting range a little lower so you can beat. that is very cute. what else are you talking about there? >> we want to look at individual iphone sales as well, which came in a little bit light than expectations. 46.9 units they sold in three months. analysts looking for 47.9. revenue comes from handset sales. that a little bit light. new phones were only for sale a few weeks into the previous quarter. ipad sales, 9.7 million. from what i see that also came in less than expectations.
analysts are looking for 10 million ipads to be sold. there is a little bit of a concern coming to hardware sales. don't forget, shift to services pretty much intact with the growth weave -- we've seen. 8.89 billion for the quarter. connell: thank you, susan. that is the conversation we were having at the top of the hour, now they're up three dayses in a row. people wonder whether we turned a quarter after terrible october. apple sells off after hours. what about tomorrow? >> this will make it tough for the market writ large, connell. even before the october selloff, apple alone accounted for about 12% of all the market's gains. this is really the big elephant in the room. given the fact, it had been one of the few stalwarts of the technology sector holding up even as amazon, facebook and the rest held off, if apple closes down five, six, 7%, sets us up
for a very weak tomorrow, apple has a back up on the chart, $190 a share. two buck as way from that. connell: that is conversation we haven't had yet. maybe susan digs some of this up or comes on the call about any commentary from china. we talked about whether apple would, go ahead, who is jumping in there? >> that is me. i think we'll have to completely digest what happens, when they say in the call because they give a lot of good information in the call. i don't disagree with jonathan, if we're down 6, 7% that is bad for everybody. with all the volatility in the marketplace i wouldn't discount it. i would be surprised from what we've seen so far, if this is a terrible earnings report. connell: because the question about china wasn't so much whether or not they are going to get hit hard directly by tariffs. apple is largely, and its supply chain is immune from the tariffs at least for now. what was the slowing economy, i
know so far is important, was the slowing economy in china going to hurt them? are they getting hit by currency in china? they have a big part of the business in china, if the economy is showing down as much as people think that could hurt the business, right? >> i was going to say if you look at china numbers they're up this year. >> there you go. >> considerably up this year compared to last year. i am certain when tim cook gets on the call he will reiterate he does not think it's a good idea to impose new tariffs. he doesn't think, he is not saying that the trade imbalance, everything is good but he thinks that is the wrong approach. i'm sure he will reiterate that. doesn't seem like they have headwinds in the china market. connell: all that is backward look, lance, to be fair? >> you mean backwards looking as far as -- i'm not sure what you mean by backwards looking? connell: in terms of what type of business you say they're doing in china. you say they have done well or did well last year.
the question would the impact be? >> last quarter in china is better than the quarter, same quarter a year ago in china. that to me seems like a good trend. melissa: i want to throw in another detail. i'm not sure we saw this average price per unit increased 2.8% year-over-year. we talked about people willing to pay up. average price of iphone is 793 people are paying. the analyst had been 750 where you were looking. $750.78. they're all the way up to a average selling price of 800 bucks. >> what people are doing, remember how people are buying phones now. they're not paying money up front. they're paying each month, they put money in. melissa: right. >> maybe even for higher priced ones. paying 40, $50 a month for the phone. few people are plunging down
800, $1200. with the phone going for liar storage models -- higher storage models. never going for base one or middle tier one. connell: that keeps price up, allows you to update the phone every year. what were you going to say, adam? >> i was saying that is not relevant the way apple records it. somebody is buying that phone. in this case the carrier is buying it. that number is astounding. that shows they're continuing to have good success at the higher end of their portfolio. keep in mind, the higher end of the portfolio was, just got introduced. i have to tell heather and viewers one important thing. it is not the x. it is the 10. connell: try to tell them, apple calls it 10. no it is a 10. we get it. that is the news right there. that -- >> if i wasn't a buyer i would
agree with you, adam. >> i'm just trying to help you. connell: take one second, after the news, susan has more information. what have you dug up for us now? >> also pressuring the stock, looking at gross margins, expectations how much in terms of percentage apple makes on their products. they were guiding this quarter for 38, to 38 1/2%. actually street looking for 38.62. that is a bit of a miss there. probably pressuring on the stock as well as people dig through the numbers of the current quarter we're in. connell: stock reaction is not awful for lack of a better term. not getting hammered by any stretch. is that you, jonathan, that wants to make a comment? >> connell, less than what the options market mentioned a few minutes ago were predict. bulls should be heartened at some strength this isn't a major selloff. given apple talked about, one of the few technology stocks unaffected by october selling.
connell: the valuation argument wouldn't have been there. when facebook didn't come out with terrific numbers, good on earnings per share, but other parts of it weren't great you could say to your elf, this stock pulled back so much let me hop in there. apple down 20% in october. apple is down 3%. >> facebook was down 7.7% for the month of october. apple was only down 3.1% in october. melissa: let's go to susan li with a few more details. >> melissa, what is helping the stock is cash return. apple wants to return $100 billion back to shareholders. they pretty much affirmed that, returned $23 billion of cash to shareholders, in the form of dividends, strong buybacks, total capital, almost 90 approximately dollars. that is probably the main driver as opposed to sales so far for the stock in 2018.
connell: what do you think of that, adam? >> think about that as opposed to company like ibm which had a horrible report, they have such financial strength so i agree. they have the ability to put a bottom on this sort of, on selling if it is going to happen. there isn't a whole lot of reason for it to happen. connell: we'll see how this holiday quarter goes out. that is the other thing, we're heading in. that is what the forecast is for. does it worry you heather at all, many numbers, reasons you could look at stock would be higher. many of the one-off numbers she reported a little bit light so should -- >> they're just a little bit light, but again the average selling price of almost $800, 793 i think it was, that is blowing away analyst expectations. even though they have a
saturated market. that is positive into q4. melissa: meanwhile apple -- >> one of the things to look forwards because they just introduced new ipad pros. they introduced a mac mini, macbook air, those will have impact on the next quarter. especially holiday season. there is pent-up demand for macbook air. phone is big one. a lot of choices but the xr will sell like crazy. that will make a strong next quarter for apple. i'm sure tim cook will talk about that. melissa: let's pause a second. apple hiking prices ahead of holiday season. increasing price of new macbook air 20% from the current cost. ipad pro by 25%. but the high cost might not be worth it for some apple customers. let's ask them. >> are consumers still willing to dish out the cash? here is what we found out?
>> i would consider it, yes. >> yes, i'll get it. because i just like their products. ♪ >> no desire to right now. >> no. because i have a better phone which underpriced. google pixel. >> it would definitely impact how often i upgrade my apple products. melissa: adam that was very scientific as you know. connell: what is the margin of error? melissa: we did not find a lot of people who were super excited about paying more. maybe for those other products. maybe there is a difference between people willing to upgrade their phone instead of buying most expensive one. they're paying little encreements month by month but look at ipad pro, it is a different story. >> give you equally unscientific response, apple relies on, apple doesn't rely on people you can
walk up to on the street and ask. relatively small percentage -- melissa: somebody walks up to you on the street with a cam raw run in the other direction? >> i certainly will run in the other direction. i want to make the point, we have to keep in mind apple always has relatively small market share. that is true in china. they're not trying to sell to china. they're trying to sell to rich people in china. those are the people who need the latest, greatest thing. >> they are still down 3.70 after-hours, down 8.22 a share. connell: that is the issue. we'll wait for the call. melissa: there you go. >> melissa i have to shake my head when people complain about $1000 for an apple. i remember my parents paying $1000 for encyclopedia britannica in the 1980s. melissa: they were good forever. connell: raise your hand if you want to make fun of jonathan,
now? who wants to handle the joke. i don't care what lashinsky said. jamie did a great job with the interviews on the street. what a hater. president trump talking about immigration on the white house. we took the comments live. we'll go back to that, see what we missed from the apple report. latest from the president next. ♪ raise their rates because of their first accident. ♪ liberty. liberty. liberty. liberty ♪
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melissa: take you back to the roosevelt room at the white house, the president is taking questions from the media. let's listen in. >> we're doing very well in the house, the only problem in the house, there are so many people, i would like to stop for everyone of them. i think we're doing very well in the house. people want to see strong borders. i think they want to see security. they want to see good health care. they want to see things we're providing. they don't want their taxes increased. we're decreasing their taxes. we announced yesterday, you probably heard. kevin brady put it out.
we're going for reduction of middle income tax of 10%. democrats wanted, double up your taxes. in some cases you have to pay three types what you're paying right now in order to get bad health care. so what we're doing, is something that i think the people want and i think we're going to do very well in the election even though history says whoever the president may be, it trends the other way. it certainly does seem that way but nobody has ever been president that has the greatest economy in the history of our country. this is the greatest economy in the history of our country. these are the greatest unemployment and employment numbers in the history of our country. nobody ever had that to campaign with. so i do. thank you all very much. i appreciate it. [shouting questions] melissa: go to blake burman right now, listening and watching while we were doing apple earnings. blake, what did we miss? reporter: 32 minutes from the president you were watching end of question and answer session with reporters in the room.
the president took to the roosevelt room earlier about a half hour ago, essentially give what amounts to a closing argument on the number one issue for republicans with the midterms just five days away. all the polling we have seen suggest that republicans biggest concern deals with immigration. we heard the president talk about this on the campaign trail. he went into the roosevelt room and laid out everything as he sees it. he justified why, talked about why he is sending the military down to the southern border. the president said he wants to send as many as 15,000 troops there. the president blaming democrats for the current situation as it relates to immigration laws and our southern border. listen here. >> the laws are so bad. they're not archaic, they're incompetent. not that they're old. they're just bad. and we can't get any democrat votes to change them. only the republicans that are in
unison. reporter: the president then said he is working on a plan, his white house is working on a plan that would change how asylum is processed at the southern border. >> under this plan the illegal aliens will no longer get a free pass into our country by lodging meritless claims in seeking asylum. instead migrants seeking asylum will have to present themselves lawfully at a port of entry. reporter: president says he will unveil that the plan to have those trying to get into this country, go to a port entry as only way they can seek asylum, via an executive order. he says he will present that executive order next week. melissa, connell. melissa: blake, thank you for that. connell: back and forth we go between two stories this hour as they break. adam, lance are back with us, we continue talking about apple. it reported better-than-expected earnings there a few minutes ago. revenue was a little bit light.
there was concern about the forecast, guys. it is kind of lends itself to having a wider conversation, adam, about technology, because we worked our way through so many earnings reports now. some themes are emerging. revenue seems to be a question mark going forward. but if you think about it, end of this year, beginning into next, there are some big questions right now in your part of the world and regulation, everything else, what is the state of big tech through the apple figures? >> once we again -- genuinely get through the apple figures, the important thing hear apple explain why the forecast is little lighter than what wall street previously expected. that is usually unsatisfying conversation i mean i don't think they will say much that would be helpful. i would answer the question, there is no big tech, right? google's problems, facebook's problems, twitter's problems are different from amazon's problems
and netflix's problems. that is my take on trying to analyze this together. connell: it is the right take. probably the only take, lance in many ways, because we lump all the companies together. here you have apple, talking a about selling a product, selling an iphone or ipad, they won't have to deal with next year the same issues facebook has to deal with. >> certainly not. the whole business model is different. they're selling advertising, not interested in your data by the way. apple will make a point of that over and over again but even in apple's business you see a sort of a shift. they sell a ton of products, iphone is very important but facebook doesn't have something like that. that services business apple has, it is only going to grow and they will continue to build around it. we haven't heard the complete story for apple's television product, not talking about a physical television, talking about programing.
i thought they would talk more about it. street streaming entertainment. >> right. they are streaming new shows, that in theory will increase services business as more people buy into the subscription service as people want to see apple's programs. connell: we appreciate it tonight as always. adam, see you on "bulls & bears in few minutes. >> exactly. connell: we warmed you up for david and everything else. thanks a lot to lance as well. melissa: president trump is heading to missouri for major campaign rally tonight. he will arrive at joint base andrews shortly. the latest details on the president's visit next. ♪ we started making wine
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general running against the comment claire mccaskill last night and had that race tied. that's a big one. >> a lot to watch here. i does it for us. "bulls & bears" starts right now. >> that's what i'm told. david: hi, everybody. i am david asman. this is "bulls & bears." we've got jonas max ferris, max bunce founder, lauren simonetti, cohost of "fbn:am" here on the fox business network. adam lashinsky come executive editor at fortune and ceo and cofounder of the digital. last but not least, fox business senior correspondent charlie gasparino peter jonas and adam are both fox