tv Closing Bell CNBC April 16, 2012 3:00pm-4:00pm EDT
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for ten days patient use a feeding tube and get 800 calories a day. the doctor says it is perfectly safe and on average patients lose 20 pounds in those ten days. only in america, folks, to people pay up big to starve themselves. this sets people back $1500 bucks. >> thanks for watching, everybody. >> "closing bell" is next. welcome to the "closing bell." >> welcome aboard. looking forward to this week. in the markets right now, kind after choppy start to a very busy week on wall street. solid earnings from citigroup helping the dow post strong gains but the nasdaq is under pressure, amid another sell off in the shares of apple. that stock is now down 8% in the past five trading sessions. a lot of sectors are in the spotlight today. in the next couple of hours. we will take a special look at the knew tour of four key groups. we're talking banks, technology,
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housing and transportation. we have a host of experts lined up and ready to offer their investment strategy for these groups. you will want to stay tuned to hear what they have to say and help plan your investments. that's a real whistle you are hearing there, by the way. >> it is a real whistle. today's really an interesting day. sometimes we use that word too much. but take a look. dow jones higher than 105 point. triple digit gain. and yet, we have the nasdaq probably still in negative territory, all because of apple. the outsize effect of apple. remember the nasdaq is a market cap weighted index or big company like apple will have a disproportionate effect. even with the day on the dow, normally in the positive territory, not the case today. nasdaq is lower by half percent. s&p 500 is higher more than two points. that's a lot higher if not for apple. 1372. dow is rallying into the close. it's near its session highs.
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as bank stocks are leading charge and taking off at about 1:30. shares of apple flying high, coming back it earth for the last couple of days. >> let's look at today's closing bell. we have bob here at the new york stock exchange. kelly evans stuck around at hk. bob, very strange day. a lot of the typical inner relationships are not working today. >> you would think we were down today by all of the worries out there. my heavens, the anxiety is so high. we moved up in the middle of the day because the dollar weakened, euro strengthened. that helped us. but take a look the at nonconfirmations. there's been anxieties out there for a long time. first the transports didn't confirm the industrials moving up in february. that's one source of anxiety. then the russell 2000 hasn't been working the last couple of weeks. then today, as michelle pointed out, nasdaq is underperforming. can i say, nasdaq is underperforming not just because of apple, but google is having a
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bad day as well. there are three anxieties people are bringing up. take a look at apple. apple is down today. would you think there was some kind of massive tech sell-off and there is not. if you look outside of apple and look outside of google, put up the charts. you will see, ibm is on the upside. you will see all of the big names here. microsoft and intel and ibm, all on the upside. >> one standout there. >> right. and michelle is right, it speaks to the out -- look, if i had it look at this and say what is going on, this is apple used as a source of funds. can i point out, goldman sachs and morgan stanley are on the upside as well. >> they are taking up so much of the trading volume at at one point 10% of the daily volume. crazy. >> we have had this tug-of-war between international news which i will get to in a moment but domestically as well, kelly. for example, home builders sentiment index. starting to soften as we head into the spring selling season. >> if this was some of the anxiety we've been hearing which is basically how much did warm
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weather pull forward optimism this year and might we be disappointed going forward. a three-point drop, at such low levels, doesn't necessarily mean much in a one-month move. in the group talking about how they are not necessarily seeing conversions, even though residential activities, and there was good news on the trade front pointing to something in the 2 1/2, maybe higher than that range in the first quarter, they are still going forward and it'll take the next round of data to put that to rest. >> you talk about anxieties, considering wh we saw in spain today, i mean, there was a time when that kind of move really would have, you would never see a triple digit day when we saw yields rising. but it is happening today. >> right. we saw our market move up at 8:30 when the retail sales numbers came out and immediately the nay sayers say, just what kelly was saying, pulling forward all of the information. apparently the market thinks there is good news out there. >> here in the u.s. versus -- enough to offset overseas.
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>> with apple, there are clearly concerns. apple is down five days in a row. there are big macro concerned the last five days. it has been on the mixed side the last few weeks and let's be frank about that. >> and the lows today, there is some discussion as to whether the valley is short covering. so the real request going forward is going to be, which do you believe? do you believe the rally we are getting today or the sell off last week? >> 195 on the ten-year, low estd since november there. but let me dwell a minute more on europe. >> they did inl promprove, abso. after spain closed, you know what they did in argentina? they are threatening to nationalize their oil company. last thing that spain needs, nationalizing products. >> great it see europe lining up against argentina. which made disastrous moves, as you have reported, many times. >> the last 15, 20 years.
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>> arguably for 50 years. >> yes. >> the country enormous size, potential leader, should be a leader on the market stage and is not. >> guys, i have -- >> we are talking about argentina, spain -- >> in argentina, you talk to the business community there. the financial community, whatever, exist. there's not a huge one and they just feel as if they are standing alone. they are worried if they would nationalize ipf and they weren't getting return on investment in argentina compared to the rest of the world. so a real quagmire down there. >> argentina will get everything it deserves if it continues it make these decisions. >> a country that size and with those natural resources down there. >> matching the united states with income per capitia. >> thank you, bob, kelly, see you later. >> let's look at movers and
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shakers. courtney regan has details. court? >> on both sides of the flat line today but with less than an hour it trade, outpacing decliners at least slightly. we have utilities and financials, the best of the bunch. if i can turn around over here, you see the discretionary movers and technology to the down side. apple and google still dragging on tech as you mentioned. edison international, one of the utility outperformers today. outperforming on oil out in the sea pb a range of 1601 to 160 million barrels. you can see shares are up about 2.4% with the best of the utilities performers today. baxter plummeting because the fda is requesting more information on the company's joint immune system disease drug in development. down grading to market perform
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but research firm believing the sell off is an opportunity to buy shares of baxter which are down more than 6.5%. why not end with make-up and toys. it's monday. privately held, cody, that owns avon. investors aren't moved to the upswied that offer. avon shares down almost 2%. mattel selling off big time, almost 10% after toy maker showing disappointing earnings. hot wheels sales not so hot. and barbie as well. i made sure my mother hung on to every last one of those barbies. >> and you still have your ken doll. thank you, courtney. treasuries rallying again. seeking out relative safety of u.s. debt. rick is in chicago with the details. rickster?
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>> thanks, michelle. this is a chart of the emini s&p futures contract. shadow boxing all morning a. >> with we notice how retail sales, weather issues, housing sentiment index, all affected not only the equities but of course interest rates. here we are virtually unchanged, close to 190 a yield. even though there's better strength in the equities, this traders continue to really hold hostage the better weather is potentially keeping some of the data point up. now if you look at the next chart, we're going to switch to currencies. year today, chart the dollar yen. the dollar gets hit hard against the yen of late. as you look that pattern, you can see we add strong rally at the beginning of the year. now the euro, let's look at euro yen. you can see the pattern to the right side is very similar. came out of box strong. when you look at the right side to the left side, what really jumps out at you is that the dollar really had some historical strength against the
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yen. where as the euro doesn't. so it continues to be the weaker of the currencies but still seems to be doing more work well above 130 than nl of the currency experts would have thought, given the news of the day m spain, italy and post greece. back to you. >> all right, rick, thank you very much. hope can you stick around for the next couple of hours. a lot to get to. ahead after very busy week on wall street. well off the high ests day for the dow. up 103 points right now. nasdaq is still negative today. very wide discrepancy between the two indisees. falling after the builder sentiment data that we saw which fell, is the home builder rally over? we will get answers up next. >> that's been going fon for a while. plus, the financials are the silver lining. are the big banks finally back, or are there still too many uncertainties in that sector? well look that come up. >> plus, apple, dragging down the nasdaq. the stock is down for five
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straight sessions. is this a buying opportunity or a big red flag? >> we want to know which sector you think will have a better run next year? financial or tech? >> you can see our heat map there on the wall. you're watching cnbc. we are first in business worldwide. [ male announcer ] citi turns 200 this year. in that time there've been some good days.
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we've got about 46 minutes to go in today's trading session he. now a quick check. dow is up more than 100 points on citi's better than expected earnings. but we have come off the high ests session. nasdaq underselling largely due to apple. held up by google. but apple is off by a fifth straight day. look that, 2,995, bill. >> laws of gravity haven't been repeeled after all. major setback for housing
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recovery. national home builders sentiment index decline fed april. first time we have seen that in seven months. diana joins us to break down the results. diane? >> that's right, bill. given how much optimism we've seen lately, this was a big reversal. especially in the heart of the spring housing market. sentiment dropping three points on the index to 25. 50 is the line between positive and negative but the index had been rising steadily since september and more dramatically during winter. it stalled last month and then of course as we said, dropped in april. that hit the stocks with the big builders. pretty hard when the news came out at 10:00 this morning. a lot of them are pushing back with the rest of the market. now the stocks had been on a tear since last fall with some analysts suggesting some might be overvalued. but optimism reigned as of late and in fact just this morning raymond james analysts buck horn upgraded. now tomorrow, we get a reading on the housing starts in march.
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single family struggling as multifamily surges. multicould fall and single making gains, but we will see, because so far a lot of numberes have been largely disappointing. back to you guys. >> all right, diana, thank you very much. does today's survey mean that you should shut the front door on investing in the home builders? >> analysts are joining us here on the show right now. dan with credit suise. bob, let me start with you. home builder sentiment falling for the first time in seven months. does that put a chink in the armor of what was a great story for the home build sners. >> no, we're not worried about this. this is high frequency data that comes out all the time. same print last year is 16. today we are 25. year overier, you are materially better. the key thing to keep in mind is we are focused on getting 700,000 starts. better in multifamily. better this single family. that's what we need to see for
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the housing recovery it see on the current projectry. >> dan, obviously, all home builders are not created equal. there is much you like better right now? >> we see the ones that will do well. those that have a strong land supply and so toll brothers, when nard, dr horton are ones that we think can do well. it is competitive for land as builders are looking a couple years ahead and realize they don't have a sufficient supply. >> we are looking at the bottom of the financial crisis, or the peak, however you look at it, they were selling land because they didn't need it. was that a mistake in the long run? >> well we have seen them selling off land p that was in the wrong locations. that is was in 2004, 2005, 2006, not focusing enough on location and probably true for builders as well. now focusing on the location of the communities they are building and now seeing them with not love land development as of late but bulk up the land
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supply here. but toll and lenard had a sufficient supply. >> bill, is yours the same with home builders? do you care about land as much as he does? what drives stocks? >> we think there is extremely tight correlation. if you are more aggressive, you want to bond out stock lake katie homes. if the recovery actually happens. if you want it be long-term defensive investors, we think lenar is best in class. stocks are around 26. a lot of upside in the next two to five years. >> very basic question, though. tremendous rally, is it all priced in now? how much more can you get out of this group? especially with a number like today. >> how long do you want it hang out in the secretarior for? if you are a hedge fund, that's a lot more challenging. you want it see confirmation of the recovery happening every month. if you're a two to five-year investor, they are still upside. so you need to look into stocks. >> pointing out the discrepancy
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between multifamily dwellings and single family homes which lagged, would you rather see more multifamily dwellings? is that a good investment opportunity in your view, still? >> we will see the numbers coming out in terms of sixth family starts and the permits coming out. i think that's just the multifamily category, very vot tile but a strong environment for owning rental properties. that just helps that area. but we think we will see recovery in terms of single family and also a real difference in terms of geography as well if we look at numbers today. midwest is the key lagger and that is just about 13, 14% of overall housing starts. so it wouldn't read so much into that. >> that's a trend we've seen that continues rental properties are very hot right now. who benefits most? how do you play that as an investor right now? >> you already see strong demand for rentals. it is fully captured and very lofty valuations. the way it play it from an invest many standpoint is to look like owens corning and
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armstrong that feed into the multifamily growth. >> all right, bob, dan, good toe sue both. thank you for your thoughts on the home builders. >> thank you. >> we have about 40 minutes before the closing bell. dow jones up 108 points. bill? >> michelle. goldman sachs up nearly 30% this year. should you buy the stock at tomorrow's earnings? we will break done these charts coming up next in numbers. >> intel and ibm, strong results, are they going to fuel the next leg of this year's tech rally or not? >> we want to know which sector you think will have a better run this year? technology or financials? tweet us. we will reveal some of your best responses coming up later in today's closing program. >> as we head into break, here is how each member of the dow is trading as we see the heat map in the studio. choose control.
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introducing gold choice. the freedom you can only get from hertz to keep the car you reserved or simply choose another. and it's free. ya know, for whoever you are that day. it's just another way you'll be traveling at the speed of hertz. according to the signs, ford is having some sort of big tire event. i just want to confirm a few things with fiona. how would you describe the event? it's big. no,i mean in terms of savings how would you sum it up? big in your own words, with respect to selection, what would you say? big okay, let's talk rebates mike, they're big they're big get $100 rebate, plus the low price tire guarantee during the big tire event. so, in other words, we can agree that ford's tire event is a good size? big big
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start toss on energy. the collapse with enbridge announcing the pipeline reversal will now come on-line on may 17. that's the beginning of breaking of the log jam. they will start with 150,000 barrels a day, and by the end of may, they should be up to that level. as you can see, to the pull willing back and wti up.
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little bill, we got rbob gasoline along with that. >> that's what set the tone for gasoline here in the states. thank you very much. as we head into the final hour of trading, we are looking at goldman sachs trading. we have heard from citi, j.p. morgan, wells fargo. but you only have a little time left to trade this stock. you want it buy it or sell it? that's what we are talking about. talking with carter worth, chief tech on oppenheimer and on the other side, jnp securities, gentlemen wp good to see you both. carter? >> we like it here. it has all of the hall marks. important in charting is how well defined trend is broken to the upside. that's one way it analyze or interpret the trading action. there is a break in trend. another of course, is to look at how a stock's moving average or
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smoothing mechanism. that is also important. i have brought a long-term chart, goldman, since its ipo, that's an interesting thing here. >> in 1999. >> look at the wedge it's building. so you have euphoria. despair, less euphoric, less depondant, then settling into fair pricing. >> when does it hit the peak? >> i think up and out. >> so you would go higher here. david, as i said, we heard from wells, j.p. morgan, citi, what are expectationes from goldman sachs? >> you know expectations have risen the last few weeks. but i think looking at friday and today, fixed income trading is very strong. goldman is good for that. it is a big business pound for pound. i think they will beat on that alone. goldman has a big principle investment portfolio. about 2 million in gains on that
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one. >> in your view, is it the best bank to own right now? >> certainly, you know, i think of the short term, i think the next few months, i think this will not only be a good quarter in the stock will rise after the report but i think the second quarter we have good momentum building in. further out, you know, relying on steady macro conditions and no new negative. >> all right. that's technical on goldman sachs. carter worth, david trunk, good to see you both. >> thank. >> michelle? >> so bill, triple digit rally and the dow slip wade here. only up 96 points right now and nasdaq is lower by 21 point. it is below 3,000 as we have about 34 minutes before the closing bell. so we will watch that as we head toward 4:00 and see what happens. despite the big rally in treasuries the past year, our next guest is still overweight fixed income. we will see why and where he sees the best opportunities. straight ahead. so don't move. here are the stand out performers in the s&p 500 as we head toward the close.
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3-2 advancing in declining stocks and yet it doesn't feel that way, even with the dow not far from the highs of the day. that's because of vague anxieties about apple and too a lesser extent, google to the down side today. and while they're down, most of the other big tech stocks are not to the down side. please bear that in mind. to the sectors, the same situation. can you see some of the other group tech stocks, industrials, materials, financials all to the upside. guys, back to you. >> all right, bob. thank you very much. >> u.s. markets faired very well so far this year. one of the next guests, that's chris wolf, from merrill lynch, he says it is time to be neutral weight in equities and better opportunities in the fixed income credit market right now. >> what's the best investment play right now? not just with chris wolf. guys, good to see you. >> here. >> chris, neutral equities, overweight fixed income? that doesn't mean you like treasuries, right? >> no, it doesn't. simple strategy is follow the cash. in this case, corporate cash. corporations have profitability,
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margins, cash on balance sheets and we think that's good for credit. spreads can come in further and on any kind of pull back, we want to be adding to those positions. >> because the economy is slowing down? >> broad view around economic growth is that it is stimulus and economic recovery. that will be determined later this year by congress. our reality check is that corporations fundamentals are reasonable strong. we want to be a more picky but the credit markets look more attractive. >> you agree with that? >> i agree with the treasuries and avoiding them. i think high yield credits are interesting. the area i'm most interested within the equity market is the areas that generate dividend or buy back stock or things like that. that will hinge upon what is going on in the credit world. in other words, where our credit strategists are worried about what corporations will do in terms of rewarding equity holders, some at the expense --
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>> so it corporations raise dividends and they get so much better than actually buying the credit then you've got competition for -- >> i think it can certainly show in the treasury world. i'm an hundred percent sure it is as much an issue in the corporate sector where the yields get substantially above the corporate bond yields but more so you're favoring on your balance sheet, equity holder away from credit holder. >> so we do sw s have credit markets. they are broad like high yield, like international credits as well. so clarify that thinking, that's part of it. >> what do you think of today's move? there are people who came out and said, you know what, apple is its own class. so there are people who said, you know what is happening today? people are doing an asset, shift in asset location. shifting out of apple into everything else. >> you buy that? >> the google asset today if you want to, in terms of the two biggies in the nasdaq. i have problems with people tell me, market is up x without apple or y without apple.
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if we take out tech stocks in 90s, then valuations were final. >> or financials. >> wratrigright. >> we are trying to be a little cute about this. i mean, the markets have had an incredible run in the first part of this year. they probably got a little too frothy, investors sentiment got a bit too high. it was modelled in our survey work. people got ahead. i got make the winter sport reference. but as a result we now have to let the fundamentals catch up and markets have to settle down. there are a bunch of risks to think about. >> you are mutual equities. what is in that neutral position there? >> the problem with neutral, sounds like you aren't committed. favor u.s., versus international markets, think the profit growth stories a lot better. and energy, healthcare, technology and into t.o. a certain extent industrials think they can subsidize market and groaning and that we expect to
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see the remainder of the year. so it is a mental place holder for saying, look, if you have cash, dabble in some of the places you like. if you have too much wsh rebalance and sell your excess equities and good back it things that we like. >> it sounds like both you've think that perhaps the markets are not quite expensive but fairly valued and we have so many other people come on and say, look wheb you look at the price earnings ratios, it is not expensive at all right now. >> there are a couple things about pas. i think that's where a lot of people look at the ps and shea, it shaped through history. >> yes. >> against margins, people say, it doesn't look that good. >> we look at it against and use 40-year averages ---or rather ten-year, four averages and the earnings yield against the five year futures market on the five year -- >> and you get that on the board? >> just to be safe here, we just try to normalize, get way from the immediate moment. with peak margins, at
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artificially depressed bond yields. >> and the answer is? >> the market looks cheap. >> see, there you are, still. good to he sue guys. chris wolf thank you. tobias, we will see you. >> new details in merging delta to buy con 0 co phillips. what is going on with this, kate? >> thank so much, bill. i hear this deal is moving towards completion as early as this week. with a deal like this it could always fall apart but apparently delta air lines board signed off on it. price range we're talking about is $100 million to $125 million. to buy a refinery in trainer, pennsylvania near philadelphia. that's on the block by conoco phillips. couple interesting things. delta is looking to save money on jet fuel which cost it $12 billion last year and is poised to go higher. they have been studying this deal for months. couple things going on, one that j.p. morgan will partner with
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them, purchase crude oil, ship it from across the atlantic and finance the refining process. it'll sell jet fuel back it delta at cost. and here is another interesting twist, bill. is that some of the gasoline that's generated from this refinery, because it makes a variety of product, not just jet fuel, will be traded to conoco phillips in exchange for more jet fuel in a cashless transaction. so they have a couple of novel details to save money. i hear this could be headed for completion this week. in addition, there's a second refinery on the block and in this case by sonoco that apparently may be sold as well as early as this week to a bidder called preferred sands. that is larger, price tag is higher, $200 million or more. >> that's another refinery company? >> correct. >> i still love the -- i know you do too, a consumer of energy buying a refinery. just smart move. >> you no he, maybe it's too
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cliche, kate. seems outside their core competency, but who knows. >> how far out of core competency can fuel prices be. >> we don't know of another airline having done this in the past. delta is getting quite a bit of heat for this since the revelations were first made about it a few weeks ago. >> then it must be right. it must be. >> people think it doesn't make sense. there are environmental liabilities. as well as commodity liabilities. but delta apparently is a believer. they've been working thon for quite a while. they have one of the architects who used to work at conoco, you can assume he is very familiar with the plant. they have done their due diligence, if nothing else. >> see you later. heading towards close. about 23 minutes left. up about 123 points. >> tech stocks weighing on the market. below 3,000, what should do you? buy on this dip? particularly ahead of big
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aroundings from ibm an and intel tomorrow. answers are straight ahead. >> find out why some on wall street believe railroad stocks could be ready to rally at the expense of the trucking industry. >> as we head to break, here is now each is trading only negatives out of the eight sectors -- ten sectors.
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welcome back to the closing bell. tech stocks continue to put a lot of pressure on some of the big tech stocks today. of course, investors booking profits taking a lot of risk off the table. a lot of investors telling me that there is a lack of near term catalysts for shares of apple to help the stock move higher. we saw the dividend, saw the ipad 3. the next one they are seeing is the iphone 5, which is not until october. i believe that's what analysts are expecting. piper jaffray reiterating his overrating on this stock.
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on apple saying that strong growth in the ipad and as well as the iphone will help shares of apple move higher going forward. guys, back over to you. >> thank you. to other tech giant earnings, intel and ibm. analysts will look look for clues for the inus try. the focus will be on software business. for intel, the interest is on softening pc sales. ahead of their results tomorrow, let's get the trade today from our next two analyst. bill and hans, guys, good to see you. bill, you covered intel and ibm. when the earnings come out after the bell, what are we going to see here? are we going to be disappointed or see an after hours rally? >> i think as we have seen the market rally over the course of the year that we need to be more selective. but intel and ibm are two names we think will continue to execute well throughout the year, including this quarter. and they are the types of names
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we would be buying as we move through 2012 pz okay. even today or tomorrow ahead before the numbers come out? >> absolutely. if you look at the consistent execution of these companies, the financial strength of these companies, then overall i just think from a total return perspective they both look very compelling here. >> hans, you cover intel. we are seeing the shift away from the pc and into small phones and tablets. are we going to see that tomorrow in intel's results? >> probably not. i think generally speaking, you will see the industry market kind of having a sigh of relief that the numbers will be okay. shortages will be less of a factor. the guidance will be stronger than seasonal. they have good products and server space. i think the second half becomes murky because of what you just said. smart phones and tablets, not an area of strength. struggling there. look for windows on arm coming up. when microsoft introduced the windows 8 system.
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that's a tough area for intel because you have guys like inindividuala and qualcomm that will undercut the performance from an intel type of platform. >> what are you telling your investors to do, buy it or not? >> we are neutral at this point. as the year progresses, it gets tougher and tougher. it is up 18% to date. i think that's a level where it'll hold currently. they will have a good quarter. stock might go up briefly but i think money is better deployed elsewhere. >> like where? i was going to ask, anything you like better? >> we like nvda, invidia. look for that one to benefit as windows on arm comes out later this year. based on windows 8 launch later this year. >> phil, you're bullish on ibm and intel, but are there others you like better. >> we like intel investments with technology but from a more growthy perspective we continue
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to recommend apple as well as qualcomm and google. >> apple, what do you make of the sell off in the last five days here? >> well i think that, you know, given the run up, i'm not overly concerned. this is typical pull back and we have to keep in mind that apple is a very volatile stock and sometimes we forgot on the way up that it can sometimes come back to the same degree. and we just have to remind our investors that you know, this isn't one that you put your widows and orphans in. >> do have you a price parg et at this one? >> we really don't focus on price targets. >> got it. guys, thanks. we will see how it goes with intel and ibm tomorrow. >> speaking of technology, we have been asking you to get into the conversation. which do you feel will have the better run this year? technology or financial? couple responses we received. robert bragg tweeted, he fears technology will outperform mainly due to europe. financials are heavily weighted outsite the u.s.
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russia wrote, financials will have a better run in 2012. facebook chose a wrong month for its ipo. tweet your responses on this topic. @cnbcclosingbell. >> that at symbol just gets to you, doesn't it? >> coming up next, courtney regan is getting set to wrap up today's under t-the-radar mover. >> well, coming up, i've got a metal processors, retailer, and semi conductor. who's up, who's down? i'm not telling until after the break. [ duck yelling ] [ male announcer ] find out more at... [ duck ] aflac! [ male announcer ] ...forbusiness.com. ♪ ha ha!
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has been because of the teachers and the education that i had. they're just part of who i am. she convinced me that there was no limit to what we could learn. i don't think i'd be here today had i not had a wonderful science teacher. a teacher can make a huge difference in a child's life. he would never give up on any of us. thank you dr. newfield. you had a big impact on me. ♪ ♪ here we are, me and you ♪ on the road ♪ and we know that it goes on and on ♪ [ female announcer ] you're the boss of your life. in charge of making memories and keeping promises. ask your financial professional how lincoln financial
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first quarter and a sign of the times right now, the members beat estimates on bottom line but due to weak ad sales, newspaper publishing ad sales fell by 8.4%. circulation in the publishing wing was down by nearly 2%. so gross margins came down but on the new media if you will, that did better broadcasting and digital business both increased in the quarter. so you are seeing this shift obviously, michelle. newspaper, old media down for the quarter, broadcasting and ad sales up for the quarter. >> i like it. thank you, bill. >> all right, they may not be stealing headlines but there are stocks under the radar but making big moves. courtney reagan joins us to round them all up, courtney? >> that's right. shares of technology moving higher on common from jenny. the firm believes device makers new product will accelerate the
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river bd bed growth rate and coon slight first quarter bead. shares up almost 4%. shares of michael kors breaking below the 50 day moving day average. shares are up 53% year to date after its december ipo we could look at profit taking and after stronger than expected demand in pricing. steel and aluminum, raising to 1.50 a share, up from previous estimate from 1.15 to 1.25 and currently above analyst consensus, you can see shares up almost 3 '04.5%. morgan stanley, chip maker, from overweight, shares are down more than 11%. that's a big loser today. and diamond food shares spiking a press relieve from march saying the company will submit an updated plan to the nasdaq by today. seeking to file 10 q by the file extension date. shares did spike up earlier. we are up about 2%. back to you. >> thank you, courtney.
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come right back with the closing countdown. and apple, should follow their lead or is this the pull back you've been waiting for to get into the stock? answers in the next hour of the closing bell. as we head it break, here is how major averages are trading minutes before the close. dow up 91. can it get back it triple digit gain? you have to watch it find out. [ scott ] i grew up playing with little toy trains
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and now i build them. i am a bigger is better kind of guy. i absolutely love building locomotives. i knew i wanted to design locomotives from when i was very young. [ jahmil ] from the outside it looks like such a simple device. when you actually get down into the bare bones of it, there's so much technology that's submerged. [ rob ] my welds are a signature, i could tell my welds apart from anybody's. you lay down that nice bead and you look at it, i love it. they don't go together by themselves. there are a lot of little parts, and everyone has their job. [ scott ] i'd love to see it out there on the open tracks.
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and when i see it, i'm gonna know that i helped build that thing. [ train whistle blows ] here she comes! [ bell clanging ] [ train whistle blows ] wow! [ charlie ] well, it's one thing seeing them built, but then to see them out here, pulling freight across america, it makes us proud. ♪ on december 21st polar shifts will reverse the earth's gravitational pull and hurtle us all into space. which would render retirement planning unnecessary. but say the sun rises on december 22nd, and you still need to retire. td ameritrade's investment consultants can help you build a plan that fits your life. we'll even throw in up to $600 when you open a new account or roll over an old 401(k). so who's in control now, mayans?
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okay, five minutes to go before the closing bell. time for the countdown here and the dow, well it doesn't look like it will have a triple digit move today. it would have been the fifth triple digit move for the dow in the last seven session. obviously not always an up move. but the last time, we are making much of the fact that dow was up triple digits with nasdaq down. there is a precedent for that. not the first time we have seen that. last time was september 29 in the fall as we were watching the market, putting in a bottom at that point, as a matter of fact. here is the dow today. and what it did. we had a good move. first thing out of chute this morning, gains, they like the city numbers. retail sales figures. home builders didn't help much. that's when we meander here.
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we move up today and we are coming off this. as bob pointing out, the dollar had a lot do with that. dollar index for the day as you saw this rise here. here comes the dollar moving lower there at that point and we've been holding on to the lows for the session on the dollar index. let me show you this, here is the disparity between the dow and the nasdaq today. you don't often see this, wide disparity. lately you would have expected it to be the other way around with technology being leaders and industrials. but today was the industrial higher and technology lower. why? well, apple computer. fifth down day we've seen for the market bell weather. is it time to wring your hands if you're a bull okay this stock? too early to tell. yields in treasuries continued lower. well below 2% now on the ten-year note, now at 198. we were down to 194 for a time. so late in the day as yields
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were coming back. that's when we have been seeing some of the stocks, major averages move lower here. another interesting trend we are seeing today is the spread between brent crude and wti that traded here in new york is going down. this is just today. spread going down. and much of that is a result of brent price coming down. brent is higher because of this iran premium we've been putting in. the fear of some problems, cutting off supply out of iran. now premiums coming out, brent going lower. good news for gasoline consumers of the united states. because our gasoline is priced against brent crew. utilities is the best sector. that is not the case this year so far. let's go over to tobias of citigroup and again, gets your thoughts on utilities. we don't talk about them any more. that the plan last year and this year, not the case. but i know plenty of people who still own utility stocks. mistake or not? >> no, we think it's time. we are overweight in utility as
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well as telecom services as defendive areas, with the offensive including technology and financials. on the other hand, i will tell you, we did a survey about ten, 11 days ago, most hated grup out there was utilities. investors just don't like the group. too defensive, all this. but it's got yield, other attractive features. >> how can we forget. the mantra is, i don't need to grow my portfolio, i just need to protect what i have and they buy defensive issue like a utility that pays a dividend, by the way. >> also lower grass prices, with gold price answers lower stock. and unfortunately, or fortunately for them, we have to pay for electricity to light our homes to watch our television shows, including cnbc. >> right. >> do you like enveloergy at th point? >> we are neutral. er with worried about natural gas. for those producers. but there is also concern about
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premium in energy and specifically is that faulter we could see it impacting the broad spectrum so it's an area i want to chase. >> natural gas, this may get out of your area. natural gas at $2. don't i think longer term, that's a great play? how do you play that in the equity market. >> i think through fracking and some other producers taking advantage of low-cost today. i agree with you, overtime and the question is how much time and patience do you have? $2 seems like a low price and ultimately it will move higher. we saw $14 not that long ago. but wrs the question is timing. if people are looking to make money at 6 or six months, maybe it's not the time. three to five years is prob lay good time. >> thank you. tobias, good to see you. we are heading toward the close here. an triple digit gain. the dow does better than the nasdaq. we lay that at the feet of google and pap
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