MARIA-01
Email Case; Trump Extending Commanding Lead in the Delegate Race; Exit
Poll: 58 Percent Concerned if Cruz Elected President; Trump Sweeps Five
States; Trump, Clinton Dominate; Chobani's Big Giveaway; Apple Earnings
Miss - Part 2>
Roberts, Betsy Woodruff, Michael Warren, Angelo Zino>
Business; Stock Markets>
ROBBIE VORHAUS, VORHAUS MEDIA FOUNDER: I look for passion. I speak to Trump supporters and I haven't seen this passion in years. You speak to the Clinton people. They are buried in their heads. The Trump people are buried in their hearts. So it's almost like it doesn't matter what Donald Trump says, they believe in him. For what Hillary says it's only reason not to vote for her.
MORGAN ORTAGUS, MAVERICK PAC CO-CHAIR: The big loser last night to give Cruz some fairness, he never claimed that he was going to do well in the northeast states. This was not his battleground.
This is supposed to be where Kasich was really supposed to have a shot and he clearly failed miserably. I continue to not see any sort of justification for him going forward.
Indiana, as you said, Dagen, is definitely Cruz's (inaudible). Trump is going to win California, probably handle it. I don't see a path for Cruz if he doesn't find a way to pull up Indiana.
MCDOWELL: He needs to pull it off in a Wisconsin like way and it doesn't look like he's going to be able to do that.
BARTIROMO: Michael and Betsy, let me ask you. What do you make of this election data compiled by Breitbart, which basically says voter turnout on the Democratic side was down 4.5 million, 20 percent versus 2008 when obviously the turnout was huge with Barack Obama?
WOODRUFF: It's not a huge surprise. It just indicates how weak and how little energy there is. Overall, sort of within the Democratic Party. One thing that struck me last night was the fact that the Democratic establishment had a really good evening.
Not just in Hillary winning four out of five contest, but also in Pennsylvania where the Senate candidate of the Democratic Party establishment won and also in Maryland where we saw the same thing.
Chris Van Hollen, a more establishment, moderate business friendly guy, hand the latest (inaudible) Donna Edwards, the more progressive candidate.
So what we are seeing is that the less exciting, less sexy, less dramatic forces of the Democratic Party are actually the ones that are winning. That's where the energy is.
The energy is on the side of the party that ultimately is probably to be less impactful as far as growing it getting young folks involved. In terms of progressives, it's not there.
BARTIROMO: Final word from you, Michael Warren.
WARREN: Yes, well, you know, I think it's interesting. You know, we look at the enthusiasm on the Republican side and that must mean very good things for Republicans in the general election.
I think things actually kind of change completely once the nominees are decided. Democrats have a real big motivator and Donald Trump being the Republican nominee.
That's going to be something that they don't have an exciting candidate at the top of the ticket if Hillary Clinton does go on to win.
But they do have a really exciting enemy to go after. I do think enemies of politics are more motivating than inspirational (inaudible).
BARTIROMO: Yes, that's a good point. That's basically what Debbie Wasserman Schultz said as well. We will leave it there. Betsy Woodruff, Michael Warren, good to see you both. Thanks so much.
Coming up, a bombshell of the Hillary Clinton e-mail scandal meanwhile. Reports show that the State Department was hiding a key Benghazi e-mail. We've got it.
And then the CEO of yogurt company, Chobani giving a very special gift to 2000 employees. Details on that straight ahead.
Don't forget "Wall Street Week" getting new life on Fox Business Network airing on the weekends, Friday night at 8:00 p.m. Eastern and then again on Saturday and Sunday mornings right here on the Fox Business Network hosted by our very own Anthony Scaramucci and Gary Kaminsky. Catch it this weekend on the Fox Business Network. Back in a moment.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. New developments in the Hillary Clinton e-mail controversy. Cheryl Casone with the details on that and the other headlines. Good morning to you, Cheryl.
CHERYL CASONE, FOX BUSINESS: Good morning, Maria. Well, conservative watchdog group, Judicial Watch, claims the State Department was held a vital e-mail for two years that would have exposed the existence of a private server.
The group successfully sued in federal court for Clinton's e-mails and now claims one e-mail was withheld from them because it showed that she was conducting State Department business on a personal server. She was e- mailing Cheryl Mills (ph), by the way. A State Department official calling this delay an administrative error.
I want to show you some dramatic video of a hero cop at a surface. It happened in New Jersey after motorists reported concern about a man that was walking through traffic next to a bridge and possibly putting himself in danger. I want to watch this.
(VIDEO CLIP)
CASONE: Maria, as you can see, he stopped him from dropping off that bridge. This hero cop is Sergeant Greg Bogart. He's an 18-year veteran of the Riverdale Police Department. That was the dashcam video from his police cruiser.
Finally, we are talking about this pretty cool, the CEO of yogurt company Chobani given a very special gift to his 2,000 employees, shares in the company. They were handed packets detailing how many shares they will get, which can converted into cash if Chobani goes public based on the $3 billion valuation. The average payout would be $150,000. Maria, some employees could have shares worth over a million dollars. Back to you.
BARTIROMO: That is a great story. You know, very generous of the company to give away such a large stake to its employees, Morgan Ortagus, but the fact is once these employees have that stake when the company does go public, they will work that much harder and be that much more committed knowing that their futures are part of it.
ORTAGUS: I think it's a fabulous story. I love the yogurt. I eat all the time actually. But I think this is the kind of thing in corporate America that sells to millennialis. It sells to people who want to have a positive message about business and what they are doing.
And I think more corporations would be smart if they could follow suit, especially in an age where, you know, you have Bernie Sanders rallying against big business so to speak. Stories like this only help these corporations.
MCDOWELL: It also speaks to immigration in this country because the founder, Hamdi Ulukaya, was Kurdish born in Turkey, immigrated here and took over a closed Kraft plant in upstate New York I think in its New Berlin and started this company with some tax breaks again is the classic American success story. And he's given back. I just love it.
VORHAUS: It's a great story. Somebody has clarity of vision and purpose and he's coming from the heart and that will reflect in the product and ultimately the sale price.
BARTIROMO: And makes employees feel good. It makes --
VORHAUS: It is win, win, win.
BARTIROMO: Yes, it really is. I love the story of how he started this. He acquired this small cheese farm or dairy farm and turns it into this great plant.
MCDOWELL: He -- (inaudible) was being sold in kind of limited distribution in the United States, the Greek yogurt, and he basically decided to mass produce it and make it less expensive and that's what he did with Chobani. That's all we eat now.
BARTIROMO: You're absolutely right. Cheryl, thank you. Great story to bring to us.
Still to come, Apple shares tumbling this morning after the technology giant posted its first-ever decline in iPhone sales. Why Apple's iPhone bull-run could be over. We will take a look next.
(COMMERCIAL BREAK)
BARTIROMO: Welcome back. A busy morning here on the earnings and economic calendar. Take a look at a couple of stocks on the move this morning that we are watching.
ExxonMobil edging higher this morning. Even though the company lost its AAA credit rating. S&P lowered the rating yesterday citing the oil giant's rising debt levels.
After the cut, there are now only two American companies left with perfect ratings. That's Microsoft and Johnson & Johnson with AAA.
Twitter shares are down this morning plunging better than 14 percent right now. First-quarter revenue came in below analysts' expectations last night after the close. One area of concern, soft demand for promoted tweets from big brands that have been a big driver of revenue before.
The weakness from the technology sector taking a toll on Facebook shares as well. The social media giant will report its earnings after the close tonight. Investors and analysts are more optimistic about the company and keeping an eye on the mobile business at Facebook. But certainly may very well set the tone for tech tomorrow.
Shares of Apple tumbling to 7 percent right now in the pre-market. Set to lose better than $40 billion in market value right at the open. The technology company suffered its first ever decline in iPhone sales and its first revenue decline in 13 years.
Second-quarter results missed expectations. Apple reported a profit of $50.6 billion for the three-month period, first three months of the year that was down 13 percent from the year earlier. Earnings per share was down 18 percent to $1.90 a share.
Joining us right now is S&P Capital IQ Equity research analyst, Angelo Zino. Angelo, good to see you. Thank you so much for joining us. Your take on the Apple quarter last night. I know you think the stock is valued well, right?
ANGELO ZINO, S&P CAPITAL IQ EQUITY RESEARCH ANALYST: So overall, the quick take is kind of a perfect storm of bad news that the company has to deal with. First off, you got the iPhone 6 launch last year, which we think had a huge pull in effect of demand.
Meanwhile, got an iPhone 6s current cycle, which there wasn't many enhancements to it. As a result, we are seeing a very soft cycle. And then overall, when you look at the total smartphone space right now is just not growing.
As a result, I think we have to start looking at Apple a little bit differently. More of the cyclical oriented company than one that's going to see this robust growth on a year-over-year basis.
BARTIROMO: So if the smartphone market is not growing, is there any market within this whole space that is growing? Though the people are not buying smartphones, they have smartphones. Maybe there is a maturity there coming for the smartphone model?
ZINO: That's exactly what's happening. The market is maturing. The belief here or what Apple is looking to do is clearly looking to enhance its position within the emerging markets.
So the iPhone SE launch in late March is, you know, one area of hope for investors. The problem is it lower priced. It is a lower margin business and we saw that in the guidance particularly. It's an issue.
But nonetheless it's also an opportunity because we think on the long term, it will enhance their overall base and the opportunities with their service business we think will be positive for the company.
MCDOWELL: Can Apple ever be a growth company again? Is there some great - - because again can Tim Cook do what Steve Jobs did essentially and bring the company -- you know, it's not a dead company, if this is a valued company like an ExxonMobil then that's an altogether different business.
ZINO: Right, the company is clearly being valued as one very similar to other companies like an HP at this point given the fall we have seen here after hours.
So it's a mid-single digit PE oriented company. Our view here is it can become a growth company again. What they need to do is start utilizing that cash. They've got cash of $230 billion at this point.
BARTIROMO: The majority of that money is overseas.
ZINO: About 90 percent of it is overseas. They need to start taking some risks if they want --
MCDOWELL: I said buy Netflix. Just go out and buy Netflix, but a content company.
BARTIROMO: Instead of Apple?
BARTIROMO: No, Apple should go out and buy --
ZINO: If you look at what Apple has done here over the last four years since their capital allocation strategy started, they've returned over $160 billion to investors. Think about what they could have purchased over that time. It could have been Tesla, Netflix, both of them.
MCDOWELL: What about Dagen's idea? What do you think about that? Is that something that you think the company would consider buy content or like a Tesla? You know, obviously they are putting efforts into driverless cars.
ZINO: I mean, our view is the connected car market is clearly a long-term opportunity for the company as well as further penetration within the living room, which the company really hasn't been focusing that much on we think.
You know, TV streaming eventually becomes a real opportunity and maybe eventually kind of hardware oriented devices within the living room. That remains to be seen when that eventually happens.
BARTIROMO: Robbie, one thing I wanted to get your take on and Angelo as well, how much of this gives us an indication of what's going on with the consumer?
VORHAUS: I think the consumers waiting to see what's the next big thing. Everyone wants to know what's next big thing. I think Tim Cook knows that too so does the Apple board and Apple investors.
ZINO: I agree with that. I think when we look at the smartphone market right now, I do think there's also quality ahead of the iPhone 7 launch. So iPhone 7 had better be a big hit I'd say and give consumers what they want. Because we do have loyal consumers out there. We just need them to start buying this next generation --
VORHAUS: Is there a big surprise here? Are they going to surprise us like this is -- is there going to be some surprise?
ZINO: You know, unfortunately not. It's going to be more revolutionary than anything. But the thing here is that there are so many consumers that have held onto their device so long. We think just the next generation launch will be enough to at least --
BARTIROMO: And the 7 comes out when?
ZINO: Late September is our expectation.
BARTIROMO: Angelo Zino, good to see you. Thank you so much for joining us. Robert Vorhaus, great to have you on the program this hour. Thank you so much for joining us. We will be right back. Stay with us.
(COMMERCIAL BREAK)
BARTIROMO: Good Wednesday morning, everybody. Welcome back. I'm Maria Bartiromo. It is Wednesday, April 27th. Your top stories right now at 7 a.m. on the East Coast. Super Tuesday 3 in the books. Donald Trump sweeping all five contests last night. Hillary Clinton took four out of five states --
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