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tv   Fast Money Halftime Report  CNBC  July 31, 2014 12:00pm-1:01pm EDT

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combination. so they would still have that economic interest, but if you're giving them an opportunity to cash out entirely at a significant premium, you can't just say no to that. that being said, again, i want to do more. i want to hopefully talk to some people who actually can tell me exactly what's going on. but i would point out it's not clear iliad, whatever the bid may be, can reach that economic number for the entire stake, and it's unclear to me what synergies would be available to them. >> did you talk to investors who said there's no way this iliad company can do that? any sentiment from investors? >> you get people looking simply at what their business model is, reselling network capacity and the size of the company and people scratching their heads a bit. not much more than that at this point, john. again, i'm working off headlines from a competitor. >> right, trying to read into what legere told us at 9:00. >> interesting. of course, he said a list of potential options, carl, when we interviewered him in terms of not jut sprint, but wouldn't
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offer much beyond that. and obviously, they're doing quite well at this point independently. so more to come. sprint itself, down because of the prospects, perhaps, a deal might not happen. even the idea of that is interesting to the market. >> david, thanks for returning down. david faber. kayla, john, thanks, as always. hand it off to the judge. all rise, the "half" starts now. >> thanks. continuing to follow that developing story and all of those ramifications if that does, in fact, come to fruition and where those talks may go from here. welcome to the "halftime report" show. jon najarian, co-founder of option monster.com. josh brown, ceo of wealth management. mike murphy, ceo and stephen weiss, managing member of short hills capital. top story, stocks headed for their first down month in six and whether new russian sanctions and potential of a faster fed will be the tipping point for the rally.
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welcome in two experts. chief international kpoernt michelle caruso-cabrera and steve liesman. michelle, to you first. you can take this, i guess in any way, shape or form. rates first. however, a lot of talk in the market today increased sanctions against russia and the fallout for these multi-nationals is going to be more dramatic than people think. that's weighing on the market. >> yes, because we've heard from some companies already today that suggests there could be more to come. for example, adidas, have you seen that stock today? getting hammered. reduced expectations for august earnings report sharply saying partly golf. also because of the situation in russia, leadsing to weaker consumer sentiment and spending reducing the amount of stores they'll have here. anheuser-busch, they came out and said their russian beer volumes are down 10%. europe was 5%. because ukraine was down 27%. if you exclude ukraine, only a decline of half a percent and the cfo said on the call,
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geopolitical risks were having an impact on beer consumption in a being way. used that phrase. and exxon, last hour, waiting to hear what they would say in light of bp. waiting for details on the sanctions and would not comment on the impact on a huge project going on in russia and we're hear that as well from siemens, saying geopolitical issues could definitely impact germany in a big way, but he's got to see the details of the sanctions, which are coming out as we speak day to day. they put out the paperwork in europe. >> one part of the story. steve liesman, the other, a focus on rates. wondering if we're going to get a faster fed, so to speak. whether they behind the curve at this point, and that is a bona fide conversation that's happening today, and will be again tomorrow on the jobs number. >> i think for sure. i think yesterday's gdp number began the conversation in earnest. people out there saying the fed's behind the curve for a while. not necessarily been true, until we got 4% gdp growth.
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this morning, falling to the lowest level since 2006. so that's significant. and finally the -- employment cost index, 0.7%. maybe that's all. talking about a snapback from the first quarter. but what is clear is that if these higher levels of growth persist, you have to be thinking about the risk of a faster fed. the forecast is the consensus we don't. under the 4%, back down to 3% absorb slack in the labor market in an orderly gradual fashion. no reason for the fed to speed up. dissent yesterday about charles plauzer, do we get a second from richard fisher from dallas. >> raises the specter, what happens at jackson hole? once jackson hole started a rally, you have to wonder whether jackson hole this time could end it. >> what will happen, a battle of, call it the slackers. right? yellen's got to come forward and say, here's my case for why there's a lot of slack in the economy, and policy can be
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gradual. and they'll be a lot of people talking, you know what? as alan krueger from princeton has, others have said folks who left the workforce are not coming back. this is key. the social policy question is, how hot do you need to run the economy? how much do wages need to go up to bring people back into the workforce and if ever they would come back. >> murph, you guys, as market participants, traders, invest herbs, have to take what michelle and steve said inkrezably more seriously given what's happening in the market? >> i lean towards michelle. the global pictures of more immediate concern to the markets. what steve's talking about as far as the fed goes if 4% gdp growth is our biggest problem, i'm not that concerned for the market. we know that the fed -- no. weis -- economy is getting enough steam so the fed can get out of the picture. i don't think any want the fed in there a longer amount of time. the better the news is on the economy, i'm looking at that as
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a positive. but when we have sanctions going on over in russia that are affecting numerous companies, that is going to put a major cap on the markets. we have to get through that market. >> raise a question for traders. seems like the market is programmed to think less fed, bad for markets. >> right. >> and not thinking of the next step, less fed means better economy, better wages, better job growth. better profits? >> exactly. >> because we all live with, don't fight the fed. right? we've said that forever. >> but that doesn't mean that the fed going to a less accommodative policy, and we're an accommodative policy as far as the eye can see. used to be, neutral policy, 3% to 5%, we're nowhere close to 3%, more close to 1%. that's convention. but it's convention rumor. because actually, when rates go up, they go up in maesh measured way for the right reasons. equity markets go up. true since the markets began.
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i'm worried about why i'm nervous about the market is it's virtually impossible, if you're in nip line of work, in any business, to pick up the newspaper each day to hear in the news about russia, about ukraine, about jetliners going down, about israel, about africa, about everything, just headlines are overwhelming. that causes at least temporarily a sentiment shift in terms of being very aggressive in the market. >> the most important word used there, josh brown commented on it, temporarily. >> right. >> at some point the correction is going to happen. >> it's got to. >> it's going to happen. >> in the last 25 years, we're in our third longest win streak, if you will, without a 10% correction, and over 1,000 days, maybe close to 1,100. we're going have -- going to happen, going to get there. the underpinnings of the market, murph points out, are very, very strong and we continue. i'm not going with, healthy to get a correction. never good for my health to see
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me lose money. >> can someone tell me where the money goes? if you flee stocks today, don't you run into an oncoming train if you put youren in bonds? >> yes. >> maybe in cash. what's wrong with that? >> nothing wrong if you're preserving. in terms of investment idea, it's not -- >> the bright spot in my portfolio, still losing money, but that is in the ten year. which is not, you would expect, with so much world strife, argentina, portuguese banks fails. that you expects to see the ten year go back below 20550. it's hardly budged. and hear from josh brown first. >> bringing this back to stocks, it's very possible that we're in the midst of a correction already. look at market on a sector by sector basis, you could make the case that that's already been the case for a while. even though it didn't show up in the s&p price index, which, of course, is what everyone opens up the newspaper or logs on to look at across the country.
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however, the negative divergences have been piling up all summer. didn't matter for a long time. we laughed off the small cap divergence, then the nyse advantaged decline line started to go against. the nasdaq followed suit. you have 52-week highs falling off, nowhere in sight. that's trailing down for a while. nobody cared. then all of a sudden, and i agree with steve, you get a spate of these nasty geopolitical headlines, whether it's trading missiles in israel and gaza or the russian thing or whatever the case may be, and then these divergences become glaring, and people take a second look at how much risk they're taking. not getting that upward lift on a daily basis of new highs, new highs, new highs, forcing people to rethink. it's companily natury complete. i don't think this should cause people to think a trend this strong all of the sudden is at an end. >> up until today wep had not heard from a specific country talking specific geopolitical
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tensions. today we see companies saying we are seeinging it in the bottom line. >> worst day for stocks since tax day. certainly feeling it in the markets. thanks to you all. gopro up. could this afternoon's earnings report knock the stock off the wave its been riding? talking to the most bullish gopro analyst on the street next. joiningous nasdaq 2.0 series today, a man managing billions during the dotcom crash. find out why he went from getting autographs to death threats. then, which trader has enough to rise above the turmoil and make it to the top of our leaderboard? checking out our battle for trader of the year. is anyone buying on the dip? that and much more is trait ahead. straight ahead. in today's market, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers
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which could bring they say $2.7 in synergy. allergan lower, valeant saying if they combined it would bring a lot more cash to allergan shareholders. >> bertha, thanks. valeant ceo saying if the deal doesn't happen, something else will. also let me say, i spoke with bill ackman a short time ago. he calmed the move invaleant stock today a buying opportunity. 's in his words, "a gift. at this price it's a gift for investors." he's still confident that that deal's going to happen. trying to get that special meeting called, which he is confident will happen, too. >> wouldn't you expect a company announcing sale of an asset, used to saying, here are the dilution or here's what we're losing from earnings because we don't have the costs, that's troubling to me. >> well, a name that's certainly -- people on the other side of the valeant story as well. >> a battle, man. >> right? who's still as best we know, i suppose, short that name. but we'll see where that goes
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from here. bill ackman, at this price, a gift to investors. shift gears. high-flying camera maker gopro set to report first quarterly earnings since going public last month. next guest, the highest price target on that stock on the street. welcome back from jmp securities. you must have high expectations? hyatt price product? >> building a brand to last and a team that can take to the next level particularly in the media area. a company showing it has tremendous vision. come in, been disruptive in the space. it's taken the top camera or m camcorder market share in the country now and can move on to become a major media brand. >> the bar is high, given what the stock has done since the ipo? >> achieved great things, and the company now, 1 billion views, gopro branded content of about 50 million hours in the first quarter.
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it's the number 11 fastest growing brand on instagram now at about 212,000 followers last month were added. achieving great things. why our expectations are so high. >> alex, if gopro can't somehow monetize this media play, and it's just a cameramaker, you know, isn't that, that works i assume, throw a big monkey wrench in your thesis? isn't the jury still out on whether or not it can be a media play and if it is, how you value that media segment? >> i think it's already a given it is a media play. what that media value savannah ysavannah -- value is, is yet to be determined. we think up for grabs this year, the business model as it exists today, monetizing the content they're already creating. the opportunity is there. yes, it has to be proven. i've said to investors, it's something of a leap of faith but not a blind leap of faith given
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all the success to date. >> to clarify, they can do a billion in revenue just from videos posting now? >> yeah. >> wow. >> you can imagine with the content growth they're experiences right now. this is a company dwhoog it's doing after having sold only 8.5 million cameras to date. they're just getting started. globally speaking, only 5% share of the image capture market. we think there's a lot of head room. >> the street is listening. gopro shares up as were we're having this conversation what what is an otherwise rough market. murph brings up interesting issues. competitive issue as well. which you cite and some of the possible risks out there. then consumer appetites. which change rap it lidly, you >> what i like about gopro, it's in an industry with a number of giants and took them down. mowed through the competition already. a lot of investors concerns,
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what is sony going to do next? sony is already trying to imitate gopro. it's doing a poor job of it from everything we see. i don't know why a beleaguered company like sony would suddenly be able to turn things around. apple, doing its most phenomenal growth during the great recession. companies like gopro, go against the tide, disrupt markets and show grade leadership. >> micron as well. having a big move today. on some potentially negative news resulting from samsung and comments that samsung made. justified in the market today or overdone? >> micron is is a volatile stock, high beta. i can understand in a take lice thlice -- like this, it's going to underperform. >> saying this is a blip? >> part of it. >> a one-day thing for a stock that's had a great run since april. big name hedge funds guys behind it, et cetera? >> right.
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look at the samsung results, actually one bright not their earnings was memory growth. they expect supply/demand tight in the second half of the year. not only that, number one competitor, samsung, suffering. this is an opportunity. name like micron, i don't know it's the name you want to catch but shaping up to be an opportunity. >> herb greenberg, kicking himself a little today. i understand, herb, at least what you wrote to me earlier. what do you think of what alex just said? >> i actually think alex made a great point given the market. i'm kicking myself what i said in march, concern samsung would come in and increase supply. what you had yesterday, the other interesting piece of this puzzle, lam research came out and had positive comments in terms of the growth its sneen demand for deram products. semiequipment manufacturer. so you have that combined with what people were trying to parse
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out of samsung's call. now, i will say this interesting part of this. that is, that what samsung said that was perhaps most important, and you've got to take it to the bank, or roll your eye, and i'm grog to look over here add i read it, from the "call." we are -- >> not roll their eyes. they're going to say the market is tight. >> very important. not take this an an opportunity to increase our market share just for the sake of it. they're saying they're not going after share at the expense of profit. if you really believe that's what's going to happen, then the market remains tight, and therein lies a bull/bear fight going on now. >> i got mike murphy here as well. owns the stock. murph, you've made the case for it. you can take the side of a one-day blip. the other side, some will make a federal case out of where the stock is going today and think it's a more fundamental big picture reason to be worried about a name that's getting smacked down? >> yeah. i bought more micron today. 30, the stock comes into a lot of support.
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where i look at it, i look at the samsung news. it's giving me an opportunity to buy more. micron is a stock i expect to earn $4 a share. the malt puultiplmultiple, love alex's take on this. at some point multiple expansion, trading with the market in-line. >> i think -- herb next. >> look it's a the forward catalyst in this name. qualcomm had a tough quarter because of licensing. its mobile chip sales on fire's about to come into the iphone 6 refresh. micron is a strong and strengthening partner for apple. i think it's going to have a blistering holiday season this year, and i do believe what samsung is saying about keeping the market tight in terms of supply and demand. i think micron wins. >> herb? quick. >> one point. remember, if saum seung were to do something to cut prices, that's hedging apple. do they really want to help am
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keeping apple's costs lower? that part of the story, too, one reason i took it off my reality checklichte and as prices did not fall the way people expected them to. >> herb, thanks. alex, thanks as well. a check on the markets, at session lows. dow jones industrial average down 1 1/3%. loss of 226 points. looks like we're going to have at least if things hold in this manner, the worst day for stocks in some four months. since tax day, in fact. there's the s&p. down 32 points. nasdaq composite down almost 2%. certainly hit the hardest today. coming up, right in the middle of the nasdaq boom and bust some 15 years ago. so what did paul minx learn heading up technology investing for merrill lynch during that time? his survival story, moving into top gear. also, red sox ace john left sir a red sox no more. insight from nbc sports on the big move and what else could happen before today's 4:00 p.m.
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deadline. who will be the biggest buyers, biggest sellers. which other big stocks, if you will, are going to be on the move? the rest of the big market moves as well that we've missed. that's coming up next. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier.
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yeah... i can take 2 aleve for all day relief. really, and... and that's it. this is kathleen... for my arthritis pain, i now choose aleve. get all day arthritis pain relief with an easy-open cap. welcome back. hit the three things traders are watching that might not be on your radar but should be. doc what do you see? >> l3 communications. defense contractor and aerospace division. basically four divisions. misconduct investigation going on. the stock opened at 110. crashed all the way down to 99. hovering around 100 here. down 16%. >> ouch. >> one of the biggest.
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>> it is the biggest lacquered, in fact. josh brown? >> nobody's talking about sell-off in consumer staples. notable. the most punishment for the xlptpf. these stocks are the proxy for people wanting to get out of defensive stu because of of better than expected growth numbers. the pain continues. coke and p & g. >> and murph? and steel dynamics, 38%. >> yes. the whole sector under a lot of pressure for years. u.s. steel breaking out to a high today. the stock's flat after a 20% run-up yesterday. he talked about demand increasing and next quarter should be better than this quarter. keep an eye there. could get legs. coming up, target finally finding its man. can executive experience with
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pepsi help that retailer? we'll debate. this big and lost it all during the bubble of the late '90s. >> i think technology bottomened and feel good about people should neutral weight technology sector in portfolios going forward. >> the former head investing for merrill lynch. joining us series, nasdaq 2.0. that's after the break. from 2000 to 2011, on average 17 manufacturers a day shut down in america. there's no reason we can't manufacture in the united states.
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here at timbuk2, we make more than 70,000 custom bags a year, right here in san francisco. we knew we needed to grow internationally, we also knew that it was much more complicated to deal with. i can't imagine having executed what we've executed without having citi side by side with us. their global expertise was critical to our international expansion into asia, into europe and into canada. so today, a customer can walk into our store in singapore, will design a custom bag and that customer will have that american made bag within a few days in singapore. citi has helped us expand our manufacturing facility; the company has doubled in size since 2007. if it can be done here in san francisco, it can be done anywhere in america.
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welcome back. nearly 2 billion shares traded at the new york stock exchange already. that's 3.1 on an average for a full day. stocks, you know, are looking at their potential, the first down month in six. and also having their worst day in some four months, since tax day. there's the nasdaq leading wait lower. losses bigger there down 2%. meantime, we continue our nasdaq 2.0 series with a fund manager who survived the dotcom boom and bust. and lived to tell about it. paul meeks ran technology investing for merrill in the late '90s. managing six funds and total of $8 billion at the height of the
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frenzy saying he went from signing autographs to getting death threats when things headed south. one of the era's survivors now investing money at a portfolio manager of the four-star rated sexton growth fund. paul, welcome back. always a pleasure. thanks foyer joining our series. >> always my pleasure. >> so many amazing stats. some of which we just read off. the internet strategies fund raised $1.1 billion inship tl s three days of marketing. ran up to an $8 billion franchise. what do you remember most about back then? >> i worked at merrill at the time. for merrill lynch asset managers, es collusively sold its fund through retail brokers. when the topic is hot as internet and technology was,
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like a fire hose like anything we've seen and probably ever will see. >> you got death threats? >> at that time i co-host add show with maria bartiromo. on television a lot. and would take my kid to princeton, new jersey, to starbucks on the way to little leagues. a couple years later said something on the air. a day trader hatched to be in los angeles, california, not eve a merrill client, up, very upset about something i said. even i was bullish on a stock he was bearish on or vice versa and threatened to kill me. >> wow. so what do you make of what's happening today in the market? does it feel at all similar to '99-2000 or no? >> there are similarities. but i think the overlap is limited. here's why. there are always going to be buzz words. today it's cloud computing. big data analytics, cyber security. and, of course, some of those stocks and some of the hot
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niches within the technology sector, probably have valuations that aren't sustainable. there are some cloud computing leaders in 2014 that may not be in business in 2018. however, i see it much more subdued than the go-go days of '99 and 2000. >> a point if you had cloud in your description and did you an ipo now, recently, your stock was bound to rise. i guess that's what's you're referring to? >> yeah, bound to rise. i look at the analysis. back in '99, almost 500 ipos and about one-third of them did a double in a single day. on average up 50% in the first day of trading. today, at least so far in '14, the average return on a one-day ipo is about 20%. it's much more moderate, and i think much more sober which is good. >> job brown, want in? >> yes. mr. meeks, do you know of any
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celebrity mutual fund manages? i don't. if you were running money in the internet space or wireless space, you were a star. or stars now, the big shot managers, bond managers. nobody talks about the equity guys. there is no new peter lynch and certainly no janus fund or anything that's crossed over and gotten public appeal. they're not watching financial content as much as they were in that era, no the buying the magazines anden certainly not trading to the same extent on a broad basis. i agree with you. when do you think we get to that point, though? what level of the market or how many months of a rally before we start to see that kind of mania on main street for stocks? >> well, it's very interesting, because there has been no prohibition since 2000 on greed. and we are human beings and that's part of the human condition. so i think we're always exposed to that, though through regulation and through people still being around that were burned back in '99-2000, 2001, i
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see it less. the other thing you mentioned, a lot of equity shops, particularly trending towards team-led funds. minimizing an impact for a superstar and the way media portrays what happens in a sector is far more sober and realistic than it had been. remember, back in those days a lot of the superstars were some of the financial anchors. >> do you think you scrutinize stocks differently? more harshly today? than you did back then? i mean, is that reflected in the kind of stocks you have in your portfolios today? >> yes, sir. i absolutely do that. and then the other thing that's interesting is, they are scrutinized better for me through more intense regulation, even before they get to the ipo process. >> paul, thanks for coming on the show today. appreciate it. talking about this topic all week trying to reminisce and hopefully learn something from
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what happened back then and not repeat some of the same mistakes. >> yes. good idea. >> paul meeks. back to today's sell-off, stocks sliding. vix surging. you want to comment on what's taken place, doc? >> sure. highest since april 15th, into that backwardation. what is that? spot vix higher than futures all the way out to november. what does that mean? anybody that actually owns some of that is going to slam it into the market here, in my opinion, judge. which means that i'm going to be a buyer this afternoon. based on this. >> what's interesting is that if you took a look at the asian markets. they actually did okay. china was up and flowing into that, around a 4 1/2 year high and latin countries, trading at multiyear highs in terms of net exposures for hedge naunds think they're going to go up. surprising when the u.s. market is a leader that it doesn't pressure the other markets. i think we'll see that come tomorrow, feeling the stakes, steve, rise highly now?
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heading into the jobs report? >> yes, i do. i do. i think we seem to say every job number is important and you know what it is. why it's particularly important. because janet yellen's speech in jackson hole is focused purely on jobs. it's focused on, do we have the right metric for measuring employment growth? and for me that can be a seminole speech like bernanke was, you pointed out earlier, for capping the rally near term. >> for more go to "futures now" host, mandy drury. >> with a colder vix, fear index. ript? seeing a little bit more fear out in the market today with the vix, you say, rising to the highest since april. and do you feel the con placeancy for today is leaving the market? >> absolutely. lasts longer than today, mandy. certain things have changed in this market for sure. the sanctions, argentina, just a couple. investors are now looking for a way to hedge portfolios against these falling equity prices and the vishgs is one way to do
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that. and as far as the jobs number tomorrow, expand more on the show. we could be in an area where good news is actually bad news for the markets. >> rich, what do you think? how far could this vix rise? >> with vix up 20% pointing to lower equities to the tune of 1% to 2% tonight into tomorrow. and really close up here above the six-month high in that vix points to 10% higher. maybe even 15% higher in that volatility index pointing stocks lower mid-term. 1938, 3900 in the nasdaq close below the number, wee contin co lower. >> and talking to the bearish strategist on the street, and from wells fargo. how bad could it get for stocks? find out on "futures now." back over to you, scotty. >> see you in a bit. coming up, what's behind the sell-off? right back with answers.
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if energy could come from anything?. or if power could go anywhere? or if light could seek out the dark? what would happen if that happens? anything. welcome back to the "half time report." morgan brennan, breaking flus on reports that iliad, french telecom ill yid put in a bid for team mobile usa. we hear that's the case. the press release from iliad right now. the offer, $15 billion. that comes out to the equivalent
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of $33 per share for t-mobile usa. the equivalent of a 56.6% stake. right now t-mobile trading at about 32 and change, up about 3.5% on the day on this news. on the flip side, seeing sprint, at&t and verizon all down on this news. we're going to continue to dig into these details and get more analysis and bring you that as we get it. scott, back to you. >> okay. morgan, thanks. there's certainly an interesting developing story there and before we continue, let's get a check on what's coming up next on "power lunch." >> scott, thank you. on wall street today, red is the new green. big selloff on the street. major averages breaks key levels. volatility, spiking. where's do we go particular xwleer the key technical levels to watch now and what's an average investor to do? the very best four and five-star fund manage ngs the business how to protect your portfolio and navigate this very tricky market. the big question of the
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market. inflation coming. when it comes to the economy, our janet yellen and her policymakers, are they behind the curve? the fed's next move. we'll talk about that. meantime, back to scott and the "fast money" "halftime report." telling you the nasdaq is getting hit hardest today. seema mody watching that action unfold with a front row seat. right? >> right, scott. down almost 2% on the day. definitely a tough day at the nakds dak. 97% of stocks on the nasdaq 100 trading lower. break down where we are seeing the weakness. here at the nasdaq. tech, internet and chips as well as biotech. when we have seen a certain level of fear in the market we tend to see investors sell riskier assets, growth-oriented stocks many of which in the tech and biotech space, despite a strong quarter for a lot of large cap tech and biotech stocks that reporting innings. in terms of giants, intel,
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microsoft, trading to the down side weighing on the nasdaq. internet under performing. facebookdown 2%. >> one of the najarians finds something and tries to make money on it. jon spotted unusual activity in an entertainment company a couple weeks bag. working in your favor. >> you're right, judge. in melco, saw the stock around 32, 32.5. just popped over 34. bot the weeklies that expired, of course, last week, as well as the august 32s. basically, bang, right -- whoops. sorry. right around there, judge. we took profits. we're out of that trade. now as far as some fresh meat, take a look what's going on in consolidated. seeing a lot of these stocks in the utilities space and so forth starting to move to the up side. well, this one's selling off, and now somebody jumped in and
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bought almost three times the open interest at the 57.50 line. just like -- in the mel co-this one's down here, judge, and they're looking forward to pop back up through 57.5 because they're buying september 57.5s, i bought those calls today. i'll probably be in it two to three weeks because these are september options. yob ubs obviously starting august tomorrow. a little less than two months for this one. >> coming up next, could not being to follow this market sell-off, a big afternoon of earnings on tap. what you need to know about companies like tesla. more "halftime report" coming right back.
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america, you cast your votes. now, go to xfinity on demand and select the people's hotlist to see this summer's top 100 shows and movies. i voted! welcome back to the "half time" show. stocks looking for theirs first down day in six. bob pisani watching from the floor of of the new york stock exchange most of the day. >> put up the s&p 500. we broke through the 50-day moving average. that's technically important. haven't brn been there for a while. no bounce once europe closed. europe had an awful day from the get-go. put up europe and what happened there. portugal, needs to raise capital. vitriolic rhetoric coming out of the ukraine.
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we have portugal lowest level since october. germany's near a three-month low. ugly over in europe overall. adidas didn't help. based in germany. they talked lowered earnenings 20%. rather surprising numbers. talked about russia impacting them, also generally a weak retay environment. sow adidas moving to the down side as well hurting them overall and heavy volume here in the united states. spyder, spy, iwr, many more times volume, a lot of energy stocks and emerging market area also on the down side as well. the gxc and emoerging markets specifically china, also on the weak side. put up the ten-year yield, scotty. 8:30, once we got the economic numbers, particularly the employment cost index, we saw the yield spiking up mostly. yields slowly coming down late
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in the day. finally, taking a hit, a lot of people are uncertain about the direction of interest rates. down on utilities reits and telecom. the other major numbers, awful in home numbers. beezer, orders down. a big miss on top and bottom line and still scratching my head over 1.7% odor orders up. looking 10% for orders to be up. these stocks have come down dramatically. most at lows for the year. >> bob, thanks. bo pisani on the floor of the exchange.
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what i would look at to see if the volume continues to be at this high of level, it's not muted. that gets me excited. you start to see capitulation, not like the old days. i'm looking for specific stocks. >> kind of excited today i. am. and not drinking more coffee, murph. i'm off the coffee right now but looking at mdso, a great quarter on its way up. given up a little today. other names, gilead, hk, phenomenal yaur, best in a long, long time. spoke to floyd, the ceo. things are better than they've ever been. that's a buying -- over the last month. looking stocks specific and not worrying about the market. because the market will take care of itself. >> buying opportunities we know. wouldn't sit near 17,000 yet again on the dow. right? every single time that we've had some geopolitical flashpoint or
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otherwise, whether simply a political developmehere in the states. eric cantor, a shocking upset there. markets roiled. the situation in gaza. the situation in ukraine. the sanctions on russia. all of those in the past -- >> scaring me, scott. >> i'm just -- all of those types of incidents in the past have proven to be buying opportunities. what would be something you'd look for to say that this time, in fact, is different? >> the number one systemic risk in the world right now, if you talk to a mix of global portfolio managers that china loses control of its banking system. i don't see the signs of that happening, but it doesn't mean it couldn't. barring that, i'm not a seller of stocks, because eric cantor lost his seat in the senate of the house or whatever he is. i'm an investor. i don't get excited when stocks go up. excited when they go down.
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i'm going add to them to when the time comes. on down the list. >> same point steve weiss is making. maybe the time to get out your list, and you have a name or two on it that looks attractive. >> stephen weiss has seen nine or ten economic cycles in his decades on the street. >> takedown. >> what investors should do. trade traderses, different story. investors, you want this to happen. not a new high, because you can't think straight. >> people like lee cooperman have made the point on this program and others on this network, bull markets don't just end. they end with some sort -- some form of a shock or -- >> exogenous shock. >> recession or -- >> josh went to say, i'm wise beyond my ears. >> what you wanted to hear. >> germany is the issue. hap happening in russia could impact
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germany and the averager, a positive way and benefactor. if they get hurt you'd see at least the recovery there come back. >> haven't mentioned the article tina story. yet another flash point of worry for some investors in the market. kate kelly, right? >> right, scott. >> they were trying to figure out a solution to broke aerosolution with some banks that want to the perhaps buy that debt and get the country off the hook or possibly get involved more directly a as principle details still fluid, but i'll be tracking and discuss it more in just a few minutes on "power lunch." >> thank you so much. wie watching the dow sell off by 200 points. worst day for stocks since tax
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and see why 92% of our members plan to stay for life. well the drama's going to continue after the bell tonight. there are the companies reporting earnings, many notable ones, guys, tesla, expedia. i know we have opinions on those, who wants tesla? >> i think its been a master at guidance free and getting to come back. it's probably okay that the evaluation still is way too high. >> linkedin? >> they're all very high volatile names. another selloff like this, they'll have a hard time rallying. >> josh brown? >> i think the pressure is on linkedin. they have to put up a big nau, and they really have to start talking more and more about average revenue per user which is not something they've talked
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a lot about in the past. >> let's do final trades, yours is going to be whole foods today which we spoke about yesterday. you bought more this morning. >> yeah, stocks had a nice rally on a good quarter. >> hk. >> okay. >> kkl. >> sell tarkt. >> have a great day. power begins now. scott, thank you very much. developing story today, the market has been developing all day long. stocks falling very sharply, we are on the floor of the new york stock exchange, from the nasdaq, and always at post 9. sue. >> it is an ugly day. let's look at the numbers. get you up to date right now. the dow is down 208 points on the tradings session. that's a one and a quarter percent loss. s&p, 1.5%. down 28 points. nasdaq is close to the biggest percentage loser. not quite. it's done 75 points, but

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