Apple earnings came in better-than-expected on Monday. Sales of iPhones continue to surge at the most valuable publicly traded U.S. company. Bobbi Rebell reports.
Apple coming in strong with an after hours earnings beat. Quarterly revenue surging 27 percent. Sales of iPhones jumped, and the company is increasing its share buyback. The most valuable publicly traded U.S. company is boosting its dividend 11 percent.. During the regular trading day, a rally lost steam, with the major indexes closing in the red. One catalyst for the decline: Amgen. U.S. regulators said their skin cancer immunotherapy will not be considered for accelerated review. Call it un-merger Monday. Applied Materials' stock dropped after it called off its takeover of rival chip equipment supplier Tokyo Electron, citing antitrust concerns. And Mylan rejected Teva's $40 billion unsolicited bid, saying the generic drug maker's offer was too low. In economics news, the services sector grew at a lower rate this month. With weaker-than-expected economic data and earnings, analysts say don't expect the Fed to hike rates soon. The central bank's policy makers start their two-day meeting Tuesday. Mizuho's Steven Ricchiuto: SOUNDBITE:STEVEN RICCHIUTO, CHIEF ECONOMIST, MIZUHO USA, (ENGLISH) SAYING: "I'd like to see the Fed get off the discussion of rate hikes and get to a discussion of ending the distortion they've created in the market by slowly ending reinvestment. That's the smarter thing for them to do." In Europe, stocks turned positive after Greece's prime minister reshuffled his debt negotiating team. This comes as Greece comes closer to running out of cash.