>> oh, those were clever boys. >> they picked all the sixes. >> they were clever. >> life is a three legged stool. >> the best gains may be behind us. >> in terms of the double digit prices or movements from long bonds are a think of the past. >> street veterans. >> now i am flat and i'm nervous. some revuz to believe that stocks could have another do nothing year. >> flat? how much more can we take of this? remember, i don't do flat. we have got an exciting show coming up.

>> let us get to the top story. it is hitting a three and a half year low here today. markets have been fixated on jackson hole later this week. he joins us now. he has been to china many, many times. how much of a reason to worry is there around china. >> they are not very comfortable with the place. the fak is that it is growing lower than it was. we have got big problems.

u.s. is growing but slowly. so china is the only story in town. but china is not big enough to drive the entire world growth. >> we know china's importance as an exporter. but i was looking at the beige book today. breaking my rule of ever mentioning the beige book on tv and some manufacturers were slowing down. reason to worry? >> they will be more like eight. we will see eights in the second half. in particular, the china's exports to china for reprocessing and reexport out to the u.s. and europe are slowing. as we know, things like the ipad and i pod were built in china.

they are really just a similar poll and most of the value comes from u.s. and europe. >> i guess what i am trying to gather is we know china's importance as a buyer of u.s. debt. i get that. what is their overall importance in the global economic scheme. >> i think it's pretty important. it's a trickier place to invest there because of the way the markets function. markets are really not ready for broadway. >> so john, we have seen three rrr cuts. we have seen some stimulus program. smaller.

>> the cuts -- the slow down this year was caused by last year's heavy handed crunch down of the real estate bubble and by the slow down of infrastructure spending after the stimulus wore out. residential real estate markets already started to lift in china and we have also seen infrastructure spending from the big state owned companies. they will be able to revive real esta estate. >> one of the hot topics of

discussion emanating is that australia is really an area that china koultd play havoc with. they're talking about the real estate bubble coming to an end. >> china slow down has really weakened the commodity markets and that shows up in companies like rio and mcmoran and bhp activities. australia is also the sight of an awful lot of the shale oil -- the shale gas that is going to be growing very strongly.

so overall, i think australia is okay. but this is not the time to be a ball on the commodity's cycle this is a time when prices have been sagging and are really hurting the earnings of the mining companies. >> on top of a really good brewery in fosters. >> that's true. >> just get back to australia. what's really in there is this is a country that really relies on outside funding. 40%. >> and a lack of interest in more commodity exports. you get worried and then you look at the common stocks and they have not reaked yet.

>> i think it's about to. >> back in china, stephanie asked the question about the easing. they have had the reserve cuts. they have had the interest rate cuts. why is it that the chinese central bank is ap hencive to actually further reduce rates and to me it's a curious thing. we are so focused. we're at three and a half year highs and yet we're talking about quantitative easing. so to me it's a curious thing. they are fearful of actually reflating these bubbles that they are worried about actually popping. i don't get it. >> the good thing is the ppi and cpi numbers have come down in the last year alone so at least they can do it. that's something that they pay the most attention to when they want to make changes. they have not been really aggressive yet, i think they are waiting for the leadership change yet.

>> he has been talking about this now for months. the fact that he would see a soft landing. it sure sounds to me like he is still diagnosing this as a soft landing. when you look at the turn around and i know we will be talking about joey global. i certainly think that says something about people's appetite. what's oversold, what's turned around. this is one of the names, it is a great reflection of that.

>> if that story starts to slow, what you were just hear something that, you know, 10 to 12% growth in basically the incomes of the chinese, that's still a positive. slower, but i think it's probably not going to affect those that much. >> all right. thank you very much. let's get to the market flash death. >> they are getting closer to profits with pandora. that was better than the expectation. the street looking for a loss of three cents. also on the top line, it was driven by revenue growth and one of the real bright spots was their mobile revenue.

listening was up 80% year-over-year.

>> now it's 29 million shares short. when they gave out that outlook as far as the revenues are concerned above the street. it sure seems to me. >> pan do rah, if you are a subscriber, you pay $39 a year. they collect money directly from the consumer. they don't rely on the drunken mouse click. >> the pandora story, i am starting to like it a lot. subscription is a very small part of their business. if they can grow the ad base and i never have to click on anything. the service is playing. they run an ad. it's an audio ad. i don't have to do a drunken click. this is starting to act like

link'd in. i think we can't look at these names as a monolith any more. >> it is. >> that's a company that people are a little down on it right now. that's one you want to put on the radar. >> i will say as a consumer, i think pandora needs to be analyzed along the lines of a serious satellite radio. >> pandora, this is a company that should not be a stand alone. it should be a tap. you're in a second inning. you said they almost got the break even. they will have losses again this year. to me, buyer be ware on this one.

>> it may be a quiet week for the markets but we are giving you ways to get ready for what could be one of the rockiest months of the year. stay tuned to get your september set up. 17 billion dollars worth of advice from an all star money manager. lots more fast money, kenney g free. straight ahead. this country was built by working people.

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rsh we have had nothing but a very, very tight range. that is where we have been for the month of august. now that we're getting towards september, i think you can expect to see this vix really move around quite a bit. so, what should be at the top of your september watch list. joining us now is michael. five star portfolio manager. 17 billion under management. michael, what is on your september watch list?

>> diversification, i think, given all the factors you mention. i might take the opposite side of that argument and say with so much going on, we have had a light volume summer and maybe that continues into the fall until we sort out all of the various things from our elect n elections, the fiscal cliff and more. there is not a lot of clarity for investors right now. >> diversification could mean a lot of things to a lot of people. >> we would not advocate those two strategies. our portfolio holds a vierity of things. i think what we're trying to do is balt lance out inflation al

reason value based on earnings. q2 earnings are not as bad as we may have thought. in the event, we do hold a smattering of high grade corporates and treasuries. >> mike em? >> yeah. >> i'm just curious. it's always popular with investors for period of times. it gets really popular after a lost decade. is there any we could derisk or

rerisk whatever the case may be. >> it's not a targeted once a month, once a quarter, once a year kind of thing. so we're constantly tweaking the portfolio? hour belief is that investors have to have exposure to this variety of asset classes in any scenario. given the assets that i mentioned, some are more geared towards deflation. there is that balance that we're trying to ride. >> where do you want to be involved in you stay growth

stocks. i know you're looking at dividend as well. >> we have stayed away from the defensive names. there have been a lot of money going into utilities and consumer staples, etc. so those that are leveraged more towards growth and activity, it has hurt us to some degree. that's where you want to be. >> it was a pleasure. see you again soon. >> thanks, brian. >> let's get our traders' own watch list. i know crow have a similar view. big pharma? in a good or bad way. >> they continue to perform and they can extend upon this performance. when you look at what they are giving you on a dividend level.

when you look at a chain where all the different pipelines here. they are all moving towards the cloud. >> the reason i chose them is not so much for the defensiveness but also because it's gotten hit. >> it's one of the classic companies that will deliver double digit earnings growth and i like the dividend. >> one thing i like about what the pharmas have done is they tend to be teaming up on almost every major drug so if it doesn't work out, they get hit but not crushed.

>> they're not going out and making monster acquisitions. there is still a lot of great acquisitions. i think that is the smart way to build the portfolio. seems like something you want to press. to me the component guys if you look at it. it is very disappointing. it has gone sideways. >> everybody points towards the pc cycle when they talk about the different disk drive companies. i will talk to the servers and

data. >> i'm with you. >> and services and soft wear, too. >> one was a basket of stocks we like and a basket we would avoid. one is vallero, which has been on fire. it runs into a little resistance here. everything is lined up. >> fundamental story. confusion analystics, we use

fundamentals to tell us what to buy and technicals to tell us when. the other thing i will mention is right along the same lines. this is a stock that has been destroyed but the fundamentals are starting to improve. the technicals are lining up. i like this one to 40. >> thank you very much. we will send it back to bertha. >> up a bit after reporting better than expected earnings. still posting a loss of 23 cents, but that was a penny better than the expectations. the company says it has 2.7 subs and its churn rate actually fell during the quarter to just over 1.5%. people are watching tv. through the box. so that's something they are very excited about.

they have a patent trial coming up in october against verizon. they are also pursuing cases against motorola, cisco and more. >> up next we are going to get to the bottom of the action. stay tuned to get the trades. want to try to crack it? yeah, that's the way to do it! now we need a little bit more... a little bit more vanilla? this is great! [ male announcer ] at humana, we believe there's never been a better time to share your passions because the results... are you having fun doing this? yeah. that's a very nice cake! [ male announcer ] well, you can't beat them. [ giggles ] ohh! you got something huh? whoa... [ male announcer ] humana understands the value of spending time together that's a lot of work getting that one in! let's go see the birdies. [ male announcer ] one on one, sharing what you know. let's do it grandpa. that's why humana agents will sit down with you,

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>> these are never earnings story. $76 target. >> and a drop, zynga. >> the hits keep oncoming. their chief creative officer. the guy who brought you the fantastic graphics of farmville left and started his own company. >> and now a pop for joseph a. bank. buy one, get 32 free. >> apparently people are really goes for those advertisements and they are going online for them. might be an indication that the online sales are going. >> all right. thank you. and a pop for the swimming

koala. one marsupial is making quite a splash. this curious koala decided to get out of the trees and. luckily cameras were rolling and captured the backstroking bear. koalas can be aggressive towards people. luckily we don't have one. apparently this one didn't get the message. he hung out in the canoe for a while before returning to shore. mitch wishes he had a koala infestation because they are so darn cute. and a pop. ebay popping 1%. >> they continue to gather these partnerships. >> i think it's still too cheap. >> still too cheap. family dollar? >> there was no real new news other than a retail complex

rally. this is an interesting turn around in the dollar stores. so i think it's interesting. >> all right. big pop for a biotech named after a shark? >> maco is like robotic surgery. it has dropped. if you stayed short you were a big and you got hurt today. i'm not sure this pop is over. >> and continuing dan's i hate computers and all things related theme? intel jumping? >> these guys are exposed at pcs and not really that well exposed to tablets or smart phones. so after that guidance, we are seeing a ton of short dated expiring friday puts. the 25s and 24s have been very active and people are planning for a pre-announcement. >> and finally another drop for first solar. mike? >> you know, we talked about a pop in this thing last week.

cutting forecast, this is a weak space. you don't want to touch this one. >> and a pop for russian president's health. a new report claims to shed some light on his lavish lifestyle. reports say that he uses billions in government cash to fund his exploits among his reserve of toys? four yachts and 43 jets. 42 is not enoo keep him entertained all over the world. >> it really is good to be the king. if you're bored, google koa koala std. will america and markets actually buy what the gop is selling? much needed rain is headed to the corn belt. we're going to hit that story coming up.

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>> that was some tough talk last night at the rnc. what would a romney victory mean for the markets and how can you play it? >> we try to understand what stocks will move for democrats and republicans.

-- were could start seeing movement in sectors. >> if you think romney is going win or senator is going to go republican? >> yeah, well, there is two ways to look at this. one is through an etf and the other is through individual stocks. look at defense. they are facing a sequester at the end of the year.

already that is hardly a ringing endorsement. if the republicans open up more natural gas drilling and fraccing, that will open up prices and sharpen the guillotine for the industry? >> it's a much more complicated situation. the republicans are talking about natural gas and a lot of these regulations are what is closing down some of the coal plants so you will still have more demand. there is all different types of connection and i think you will see a rally in the coal stock. >> with thank you very much. we will see you soon. special coverage of the republican national convention. we will hear from paul ryan and

former secretary of state con condoleezza rice. that is at tonight, 10:00 eastern time. rumor has it i will be involved in that program somehow. any comment on that? >> okay. so part of the idea is if you think obama is going to win you would not buy any health insurance or medical related? >> i don't think anyone should really be doing those trades. >> by the same lodger if obama gets the white house, the banks are dead? you would have got p yourself into a position where the banks were starting to become buys. i don't know that there is any real connection. it's interesting conversation

but real investors should not be doing those trades. >> the midwest gearing up for what is now back to tropical storm isaac. the region is suffering from a severe drought that has destroyed its crops. can rains devastating to mississippi and louisiana help to save corn, wheat, and soybeans? let's talk to jim. certainly nobody is saying it's a good thing that we have this massive storm. a lot of people are struggling. it is still raining hard. but up the spine, you need rain. is it too late? >> this is a very unusual markets, weather markets are volatile. they are difficult to master and this is no exception. i do think the rains from tropical storm isaac will help the central and northern corn and soybean belts. i don't think it's going to help, though, the delta and the

southern part of the belt in if six to 20 inch rains will have a negative effect on harvest and it will be a problem for the producers about ready to go to the field with their combine. >> so for beans specifically, long or short? do you buy them or what do you do? >> i think we have gone from the investment cycle of soybeans into what i would call the trading cycle. we are trading soybeans around $17.50 a bushel at or near all time prices. you cannot trade that the same as when they were cheaper. i do think the market will go range bound far while. they will try to figure out the tables based upon the yields. s i still think we could rachel the market up. it's very important for traders and investors to look at what

the yields are coming directly off the combines. >> how is it looking? >> well, so far, i have done this for a long, long time. the corn yields, to me, particularly in illinois, are terrible. they have gotten better in iowa. we have not harvested too many soybeans yet. it's hard for me to watch a combine worth between $750,000 and $800,000 going down through a field of corn in illinois and getting 20 bushel per acre on corn which is a yield you may have had 50 or 60 years ago or more. it's a situation that we will have to get into. certainly the corn yield particularly is still very much in question. >> i know it's late probably for many farmers but thank you for joining us. >> thank you. >> we continue to give you ideas

to set up for september and one area that should be on your watch list is retail. the retail etf hitting another four-year high today. it is up 19% so far this year. so stephanie? how are you playing the retail sector? >>' ear not chasing the ones at their highs. they are looking at companies that have pulled back. something like coach is down 35% from its march high. it's totally out of favor. it has new products coming out and i think they are under appreciated at this point. they are focusing on their men's business. >> what is that? >> it's wallets and accessories. josh knows. >> a satchel? >> it's going from 8% total sales to about 25%. i also like nike. that stock we bought when it got hit on the quarter, that stock is down 14%. i also think that their gross

margin pressure were some one-time events. i also like cvs. i think the jerer innic drugs is going to be very powerful for margins for this industry. i think you could buy express scripts, cvs and i probably wouldn't trust wall greens. >> how about the discounters that continue to go higher and higher. how about ross or t.j.maxx? >> we took profits. it had a nice run and starting in december and i think they are taking share from j.c. penney. so i think in the comparisons are getting tougher. >> with tjx, their home goods area, supplies. >> certainly. >> why apple's big victory could spell bigger trouble for google than you might think. we will tell you coming up. we're sitting on a bunch of shale gas.

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>> live look outside. all kinds of stuff that goes on that you can't see and i wish you could. >> could apple's victory also mean big trouble for google and other android device makers? joining us now is cnet's editor at large. >> is it bad news for google? >> it's a real challenge for goog toll keep everybody on board to the degree they were before this. i'm talking about the other makers of android devices.

>> do a double check on exit question the whole base for flame proofness if you will. >> something you talked about. i know it's very, very basic because i'm not as basic. is a 19-year-old kid going in to buy a phone say i shouldn't buy a samsung because they lost the trial? is it really going to impact decisions at the level. >> what they do is go in and say there is not as much choice as there was. if these companies end up with a chill on them as they double check themselves, they say let's slow down the pace of innovations. if apple can throw some gum in the works of the android eco-system, that might be enough to slow the torrent of new devices which has been a significant part of the success. >> let's say that the 1-year-old

makes that call and doesn't like what he says do they go to the microsoft combination? >> not yet. they don't have enough to offer. microsoft is ramping up to make a serious push with a windows phone later this year and through 2013. this opens up at this moment in the case, a bit of a crack for microsoft to have new rounds of meetings of all the companies that are an droid hand set firms and say you know what? let's take another look. we know we will bring you lock stock and barrel that we have it locked up.

>> and you have your shiny iphone 4s on the desktop this is a a great deal for apple. it could be great for the samsung gal laxcy 3s. that is a great phone. as a consumer i have had all of the iphones. i would love to have the gal laxcy. i have all of my media in i tunes. maybe that is a justice department case like we saw. >> play your i tunes play list on spotify. >> but you have to have a facebook account to have sp spotify. i pay for it. i will throw this in my man purse and run off.

mike? >> the other thing that is notable is how much the stock needs to move. either to maximize those gains or to start seeing losses to the downside. i think the final thing is if piper put out a note they were talking about possible beneficiaries of what is going on with the apple dispute. maybe apple is going to start depending on it as a supplier more. >> more fast up next. [ male announcer ] the markets keep moving. make sure the news keeps coming with thinkorswim by td ameritrade. use the news links breaking stories

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