tv Fast Money CNBC August 20, 2013 5:00pm-6:01pm EDT
5:00 pm
a row of declines for dow. the dow finishing down 7 and three quarters points tonight. the nasdaq was the big winner technology one of the bright spots on the upside. 24 points higher on nasdaq. s&p 500 picked up six and a quarter points. thanks for joining me. stay with cnbc. fast money begins right now. live from the nasdaq market site in new york's times square i'm michelle ka review sew in for melissa lee. i'm here with my traders. let's get right to our top story, retail detail. it's been a mixed bag for the retailers this earnings seasons so far. we asked the question tonight, how strong is the consumer right now? >> karen? >> i like retail.
5:01 pm
it's been a painful two weeks. i like macy's. i like foot locker. they're best in class in what they do. i don't like the teen retailers as much. jcpenney we haven't liked. >> despite what we've seen in the last couple of weeks? >> yes. in terms of valuation i'm comfortable here. >> ride it out? >> yes. >> bk. >> i'm not a huge fan but the selloff would get you intrigued. for a trade i might want to get into that. i'll give you a quirky one i was looking at today. radio shack, they have got $500 million in cash $900 million in inventory and their inventory is increasing. what's interesting about them is it's a quirky inventory that nobody else has. so to me increasing inventory just adds value to it. it's an option. it's a $3 stock but worth looking at here. >> steefy? >> apparel has been soft. macy's had a tough time of it.
5:02 pm
>> first miss in 25 quarters. >> exactly. i'm long deckers, long home depot but we see the consumer buying houses and autos. i still think you're okay to stay there but the market is getting skittish here. home depot opened today. everyone loved it but then it turned around and went negative immediately. >> what does that tell you? >> people are gearing up for a skittish september. you might want to pick spots and trim a lot of your longs. >> it was pretty stark. it had a nice move and then fell off the cliff today when most of the market went the other way. >> people were happy but they didn't want to get overenthusiastic. >> people are concerned about interest rates that you are not going to have -- >> how's e sales go down. >> exactly. the fixer upper as well. >> paul hickey you're new here
5:03 pm
welcome. >> thanks. you have to watch interest rates rising. that's a negative. gas prices have been falling over the last month again and the jobs pictures is improving. you have two pluses, one minus. the pie isn't growing that much. you have to know where to look. you see apparel retailers not doing good. we're seeing bricks to clicks. netflix is doing well pandora. people are spending money online. >> it's a secular shift. >> the overarching message is that the average investor is not going to be able to thread that needle. you can't really sell everything and then buy the bottom in september or october. trimming not a bad idea but stay long the overall market. >> my koeike khouw? >> karen mentioned macy's foot
5:04 pm
locker and looking at names like ralph lauren these names are trading well off of their highs so it isn't as if right now you're chasing the tail end of a huge rally. you are buying them at a mild discount to where they were earlier. i don't think this is actually a bad place to even look at initiating new long in those names. >> let's turn to jcpenney because we got more news yet again today, the stock getting a big bounce after reporting that heyman capital has a position in the stock, not just the debt anymore. the big question is is jcpenney the next big buy or is it the next circuit city which was liquidated? >> if you had to say if it's circuit city or best buy i'd say it's more the next best buy. the balance sheet right now, they are holding on. certainly seems like that's a lot of change happens. it's not working that great yet
5:05 pm
but at least the wheels are in motion and everything we're seeing out there from everyone else is almost as if whether it's macy's what they said it's been a weak consumer environment. back to school has been a struggle in order to get the sales. >> have we seen any bottoming in sales whatsoever in recent months at all? >> you have seen a bottoming in general. look at jcpenney where the comps were worse. we're hearing people and companies talking about august picking up. >> i'm talking specifically about jcpenney. do we know if the consumer is returning to that store. >> the fact that the comps are less negative that's what you have seen. the st. john's bay line that came back in the store is better received than what was there. >> hold on. we're going to go broader in a second. grasso is jcpenney the next best buy or circuit city?
5:06 pm
>> i think there is huge squeeze opportunities and that's what you are seeing. whatever there is slightly better news -- >> the stock can rise. >> yes. >> you're afraid of shorting it? >> i would not get in the way of this. if you are short you could be taken out quickly but i think the macro story is bearish for jcpenney. >> i don't think we know what's going to happen with them. there is management issues there. things are getting worse. i don't think it's the next circuit city. the retail sector is flooded with electronics retailers that have gone broke but i think they have the staying power and the old strategy is back in and not the high priced goods and more discounting. >> karen, any thoughts? >> we're short in long puts but i don't like the story here. there was nothing good to me in this earnings except that it could have been worse. that was, i think, the only positive. you did get some of the same
5:07 pm
language we heard from a couple of retailers -- >> when you hear kyle bass has gone long in the debt and the stock, do you get nervous? >> not so much. i don't. i've been on the other side. look ackman bought it thought it was great. it was at 40. >> we don't know what kyle bass' thesis is anyway? >> we don't know how big the stake is. he's a bright guy but to me it doesn't change. they told us august 1st the balance sheet would be 1.5$1.5 billion and it was 1.3. >> i'm with karen on this. of all the stocks to invest why are you in jcpenney? i want to buy a stock that has hidden value, that people haven't found the story out yet. the best you can say is things aren't so bad and they're going back to an old model that wasn't so great anyway.
5:08 pm
could you get a short squeeze, is it good for a trade? potentially but i've got more things to buy here. >> dana what's the best and worst trades you can name right now when it comes to the position of the consumer related to retail stocks? >> i think some of the ones that look interesting, urban outfitters, up. i think the other ones out there that look very interesting, limited, look at limited and the earnings power that you have down the line with international with the pink area. victoria's secret is expanding in the u.s. and overseas. macy's, whether it's the weak of wow, private labels and exclusive, there is more to go with them. >> what can you tell us about
5:09 pm
the consumer? >> there isn't as much of a must have item this year as there was last year. the consumer is healthy but their wallet isn't growing so much to afford the discretionary items. there isn't a what do you want item out there. >> i'm trying to think of what i want. dana good to see you. twitter chatter increasing as ibm stock falls. shares hit a 52 week earlier today, down 15 percent. paul? >> we're negative on ibm. the stock was a former dow leader. there are issues surrounding the company's cloud business and cheaper competitors coming in. it's a name we want to avoid here and look for other opportunities in the cloud space. >> next up book seller barnes and noble reporting a bigger quarterly loss than expected on
5:10 pm
the back of disappointing nook sales. chairman and ceo saying he suspended -- >> i don't love this name. you think of how challenged the brooks and mortar business is. everything was bad here. they don't have a hunger games, a 50 shades of gray this year but how many times do you have a 50 shades of gray. >> not often enough apparently. >> why don't you tell us, the go of you. we're off air, go ahead. >> i don't like what i see. >> i have never read it. i have my own imagination, thank you. last up lululemon lighting up the twitter sphere the stock initially selling off and popping back up. grasso you look like a yoga man. >> comp sales would be lower end of guidance. that set the stock down two
5:11 pm
percent. tried to fight its way back it didn't fight all the way back but i think you're okay in lulu. >> do you do yoga? >> yodels caseoccasionally. >> stock picking is back second half but not every name is heading higher. after the break the man behind the world's number one large blend fund big nygren gives us his top picks next. from old tech to electric cars should you buy or beware these momentum names coming up. [ male announcer ] come to the lexus golden opportunity sales event and choose from one of five lexus hybrids that's right for you including the lexus es and ct hybrids. ♪ ♪ this is the pursuit of perfection. i've been doing a few things for a while that i really love-- tdd#: 1-800-345-2550 playing this and trading. tdd#: 1-800-345-2550 and the better i am at them, the more i enjoy them. tdd#: 1-800-345-2550
5:12 pm
so i'm always looking to take them up a notch or two. tdd#: 1-800-345-2550 and schwab really helps me step up my trading. tdd#: 1-800-345-2550 they've now put their most powerful platform, tdd#: 1-800-345-2550 streetsmart edge in the cloud. tdd#: 1-800-345-2550 so i can use it on the web where i trade from tdd#: 1-800-345-2550 most of the time. tdd#: 1-800-345-2550 which means i get schwab's most advanced tools tdd#: 1-800-345-2550 on whatever computer i'm on. tdd#: 1-800-345-2550 it's really taken my trading to the next level. tdd#: 1-800-345-2550 i've also got a dedicated team of schwab trading specialists. tdd#: 1-800-345-2550 they helped me set up my platform the way i wanted, tdd#: 1-800-345-2550 from the comfort of my home. tdd#: 1-800-345-2550 and we talked about ideas and strategies, one on one! tdd#: 1-800-345-2550 really gave my trading a boost. tdd#: 1-800-345-2550 all this with no trade minimums. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 after all, i'm in this to win, right? tdd#: 1-800-345-2550 open a schwab account and learn how you can earn up to 300 tdd#: 1-800-345-2550 commission-free online trades for 6 months tdd#: 1-800-345-2550 with qualifying net deposits. tdd#: 1-800-345-2550 call 1-888-254-2600 today. tdd#: 1-800-345-2550 [ male announcer ] come to the golden opportunity sales event to experience the precision handling of the lexus performance vehicles including the gs and all-new is.
5:13 pm
♪ ♪ this is the pursuit of perfection. >> stocks clocking in as generally weak. now i can talk. stocks clocking in generally weak so far this month. however the second half of august has been known to be typically better for the bulls. paul hickey here to give us a breakdown of some of the best bets towards the end of summer. is there a seasonality? >> yes. the first half of august over the last ten years has been notoriously weak and then you
5:14 pm
tend to a rebound in the second half. looking at the s&p 500's performance in the second half of august in the last ten years, they have averaged a gain of one and a quart percent. all ten sectors average gains led by consumer discretionary technology and energy. >> any specific names in there? >> there is also ten stocks in the s&p 500 that have been up over the last ten years during the last two weeks of august every single year. normally when we do the seasonality report we see maybe one name maybe two. for this upcoming period we saw ten stocks led by pvh which has averaged a gain of 8 percent over that two-week period with gains every time. so getting to dana's point earlier in her segment, five of the 15 best performers are in the discretionary sector. if you are looking for a rebound in retail the calendar is working in your favor. >> the one thing that gets in the way of that premise is last
5:15 pm
september we didn't have taper talks. that's the only issue where this could take another two months to play out, that seasonality. >> certainly the taper talk if you look at it the fed minutes we have tomorrow. it's more priced in here. >> that's the thing. the seasonality, i've never been able to trade off of seasonality and make money. i think it's interesting when we talk about this year and the fed minutes, we've discounted a lot of what's going to happen tomorrow. so i would be looking -- >> even though the s&p 500 rises 70 percent of the time for an average of 1.4% it doesn't necessarily happen this time? >> no. i think it could be happening. a lot of taper talk is in this market. >> last friday when we saw larry summers taking the lead that's what spooked the market. they're not spooked by the taper
5:16 pm
but by who is actually going to do the tapering. >> the surprise would be if there is no taper, they are doveish and what if they did more qe. >> so grasso's point, the seasonality, you don't want to necessarily invest in the calendar. we found that the options traders like the seasonality report see where you have the wind working at your back. >> it's called a stock pickers market but right now it's really true. listen to this stat. the average correlation of each sector to the overall market has plunked from 89 percent in june to 70 percent in july. correlation, that's when all stocks move together. if you have a correlation of 100 percent everything is moving together. so when it's dropping, it suggests that fundamentals get more important. you have to pick who is going to go up and who is going to go down. bill nye gren has $10 billion
5:17 pm
under management. good to have you. >> thanks michelle. >> it's always a stock picker's market for you, isn't it? >> that's exactly what we do at oak mark. in fact we do opposite from "fast money" as you can get. we're taking positions that we expect to hold for at least five years unless the market gives us an opportunity to sell at full value earlier than that. >> what's the fun in that? >> investing is not supposed to be fun. >> what are your good ideas right now? >> well again at oak mark we try to find the names the rest of the markets isn't excited about and gives us an opportunity to buy at value prices. sectors we like today would be financials industrials, technology names, really the areas where there is been a lot of controversy and investors haven't bid up prices. one of the things we think investors have gone excessive on is bidding up companies that pay
5:18 pm
high yields. we think it's interesting that companies that have been large share repurchasers it should be the same whether the money comes back as dividend or share repurchases but those stocks aren't that expensive. >> it's karen. i know you're not a norm at "fast money" guest so happy to have you on. i know you have a big financials push. what are you hoping to get out of these stocks? >> is it sentiment changing? it's already moved obviously but is it a price to book price to earnings, how do you decide how long you're going to hold on? >> you have bank of america, jpmorgan chase and capital one, correct? >> yes, we do. we like all of them. they are all large holdings. we see low pes. most of these companies sell at about 8 times the level that we think they'll earn after the legacy mortgage costs stop going through the income statement.
5:19 pm
i saw the other day something that simplifies our financial position is that the return on equity for utilities and banks is 20 percent cheaper. most expect higher financial but they don't expect in utilities. that's an example of what we see of not paying enough for expected earnings recovery. >> attachpacheapache direct tv and hall burton are your picks. >> direct tv their share base is down 50 percent or so in the past four or five years. apache is telling assets at close to full net value, using proceeds to repurchase a stock that's selling at a large discount to net asset value. even if you assume that their egypt operations aren't worth
5:20 pm
anything and we think they are. hall burton has announced a large tender offer, repurchasing four or five percent of their shares. re that's a really nice way to purchase shares. >> with attachpache i know you're not concerned about egypt but for 24 percent of the cash flow and 19 percent of their production i get it if you take it off the table but it means a lot to perception. when you see that on rest how scared does that make you, especially when you look at the chart and it just fell off the cliff. >> i know you won't like to hear this but we don't look at the chart. we look at the company based on what we think the assets are worth. we try to take a private equity-like perspective, how might public investors change their attitude toward this stock over the next five years. it's something like 20 percent of the value, maybe a little
5:21 pm
less than that. apache sells at about nine times earnings so even if those earnings went away, they would still be at something like a 25% discount to the average company. they're still producing oil, earning the money out of egypt. i think the likelihood is that they're going to find a way to capture of value of to those egyptian operations. egypt needs the money from the oil, too. >> the country, no matter who is in power absolutely wants that part of the business to succeed. paul? >> taking a step back towards the financials we've seen a wide dwer -- is it regulation or something else. >> i don't have a strong explanation on that other than we've seen the small and mid cap names do better pretty much across the market relative to large caps. we think that's another
5:22 pm
opportunity today that large cap stocks have a lot of advantages that small and mid size companies don't, including easier access ability to financing, better global platforms for accelerated growth. we don't think it's clear that small and mid cap names are better. >> bill, great to have you on even though you don't look at the charts. >> thanks for having me. >> coming up is best buy back from the dead? shares hit a fresh two year high in today's session. as they look to cut costs, is the retail a value trap rather than a value trade. plus it's the battle ground our traders have been all over the move in tesla. take a listen. >> you need to be careful here. >> i actually bought it today. we've been bullish. >> you can't fight momentum in this stock. >> this is not a trade i would put a bunch of money in.
5:23 pm
5:24 pm
she loves a lot of the same things you do. it's what you love about her. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision or if you have any allergic reactions such as rash, hives, swelling of the lips tongue or throat or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial.
5:25 pm
(announcer) at scottrade, our clients are always learning more to make their money do more. (ann) to help me plan my next move i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning
5:26 pm
every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." # >> hewlett packard reports third quarter earnings tomorrow. john fortt joins us with an earnings preview, john? >> it's up 75% so far this year. wall street wants to see around 87 cents nongap on $27.3 billion
5:27 pm
in revenue. of course meg whitman wants to show that the momentum is continuing in this rebuilding year. hp continuing to do better. but based on some of the results that we've seen so far this year specifically ibm, oracle sysco, dell a few things to look for, we've seen revenue short falls from them. particularly sysco citing uneven global gdp issue. the pc and printer businesses are going to be particularly interesting to watch dell to be gaining share in the quarter from price cuts. if the trend is continuing hp might have lost also servers because of that. on the other hand, last quarter they were doing pretty well with the printer business particularly because of supplies and commercial. then on the enterprise side
5:28 pm
you've got that server issue, plus that's where you tend to see global gdp issues hurting, especially in those emerging markets. if hp isn't able to gain share there, particularly seeing sysco's strength in servers and networking. those are the plus side. maybe the pc business isn't down as much as it was the last quarter. but then they look for losing share. we'll see when the numbers come out tomorrow. >> wow 75% higher year-to-date. it's a lesson in when the stock is one of the most hated in america that you can make money. >> flip that on the other side when it's one of the most loved stocks, do you want to be big here. bk says no. >> you talk about yourself in the third person? >> yes. if you look at this stock it has
5:29 pm
been pretty decent resistance so if we get a pop on market share gain because they cut prices, that again doesn't excite bk. i would short it against 2760 as your stop on any pop. >> what do we think, john hickey? >> haul hickey. he's my brother. let's call him up. just trading the name on its earnings the stock has averaged a decline of two percent following earnings. whether it's stops higher or lower, unless you have insight into the name i would avoid it. >> from hp to tesla, up more than 330 percent in garnering the nation's top safety rating. some options traders are making big bets that the electric auto maker is about to run out of charge. mike, what was the action today?
5:30 pm
>> i want to give credit to mr. steve grasso who was a bull on this when i was still skeptical on it. i remained skeptical along with a lot of other traders. the total interest is in puts. traders paying about $1.85. those are bearish bets. the stock is going to be below 1415 over the week. given all the chatter it will be almost impossible to short it. if you are going to make a bearish bet, that's the way to do it. >> if you really want to show respect for the chart you have to wait until it breaks out of that -- >> the news today that it has achieved the highest safety rating -- >> we also heard that it was the best car not too many weeks ago, the best not the best electric car. that's what's really sent this into a whole different level.
5:31 pm
people that looked at the nissan the police yus, theyrius, they were looking at electric cars. people want to own this car -- >> and we learned today it's safe. >> but you have to wait until it breaks above 160 to buy. >> what do you guys think of these options trades? >> to me the car seems safer than the stock but i would have said that 80 points ago. it's not my kind of thing. it would have to grow and grow to get to the valuation. >> when he started talking about hyper loop that's when the stock ran out of charge. >> because he's distracted. >> he's the best sales person for this company. when he's telling you the story he's so believable such a great person to dictate the story. >> but now he's got another
5:32 pm
focus. >> exactly. it was a one night event. he drew it up. let's move on right now. hyper loop will take some time. focus on tesla. >> still ahead making money off of headlines. why sell the news might not always be your best bet. plus a look at some of the biggest movers and shakers in today's session. we'll be back in two minutes. ♪ ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ ♪ all on thinkorswim.
5:33 pm
from td ameritrade. [ kitt ] you know what's impressive? a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ ♪ after all, what's the point of talking if you don't have something important to say? ♪ ♪
5:34 pm
5:35 pm
ship has finally stopped sinking. we saw a flattening of same store sales. online store sales surged ten percent. amazon has finally relented on collecting sales tax and that coupled with best buy's price match is going to increase traffic into the stores. samsung store within a store is helping helping drive traffic. you're going to tell me this is priced in the stock is up. it may be but this is fast money. when you look at prior periods where the stock is up five percent on earnings it's averaged a gain of four percent over the following week. >> how do you know what he's going to say? >> he knows how i'm going to come after him. certainly, yes the stock is up an awful lot. a lot of people missed this. this was all low hanging fruit. we knew that they had a problem with showrooming. i'm sure they watch "fast money"
5:36 pm
and got the idea from us. as well when you talk about the store within a store, when you talk about matching the internet prices, all these things cutting costs, are all the easy things to do. growth from here is going to be a lot more challenging. if i'm long in this you've got to take your profit in it. they're not show me phase and i don't think they're going to be able to show us here. >> karen, the verdict, who won? >> i got to go with the broiler. i just -- are you going to buy it up 185% and hope it's up 197% on the year? i missed the whole ride up here so -- >> short term trade over the following two weeks we're looking short term here. these types of gaps have been good for the stock going forward over the next week. >> tell us who you think won the street fight. tweet us @cnbc "fast money" using either the hashtag bull or hashtag bear. we'll have the results at the end of the show.
5:37 pm
switching gears, our next guest uses the news to trade the market. adam joins us with trades on the headlines. let's start with your overall strategy which is a shock response strategy? >> yes. the shock response is a post event trading strategy. we're looking and we think some of the best trading opportunities happen when you have inanticipated events in the marketplace. generally speaking you can look at a macro economic shock or a merger. more specifically, if you look at blackberry they made an announcement last week of a strategy -- >> this is stock number one, what was the announcement? >> a strategy review process, this is something that we feel is nothing new but the stock popped, up about two bucks a share, 1060. the next day traded up to 1218 which we haven't seen since the june earnings announcement.
5:38 pm
>> when people hear a strategic review process people think that means the company is going to put itself up for sale. >> we think that the private equity guys looking at this stock have probably been doing it for maybe 18 months up to this point and we think there could be issues here. obviously there is a cash flow issue and they do have a lot of cash on the balance sheet. >> you short blackberry? >> yes and we do it through buying puts. the stock closed well today because there was a private equity rumor buyout. we want to be short the stock through buying puts. if it gets to the 11 or 1150 range we would short the stock probably depending on the announcement. >> do you use any ailing rhythmic methods to short the stock? >> we're not a high frequency
5:39 pm
shop. we look at events and have our proprietary screens on what comes through on a daily basis. to manage risk we know this is a relatively crowded trade. 33% short interest in this name on the float. so if it does get squeezed up we don't want to be shaken out of this and we're looking to short them again at around 11. >> one of your long positions is co bolt. >> it's a little off the beaten path. it's a deep water drilling company. they do some production as well and mainly focus in the gulf of mexico and off west africa. they had a dry well and the stock was down about 15 percent. we think this is overdone. you look at how the street was set up before the announcement. there are 16 analysts covering this name. you have zero sells, zero holds.
5:40 pm
when you are looking at a name like this you have a small negative announcement, the stock is going to be down too much and we feel like that happened yesterday. >> you're long delta? >> yes. it's a well public sized -- >> drama. >> that's the short answer. last week with the department of justice reviewing the us airways merger. we feel like it doesn't matter where the department of justice lands because delta is set up in a good way. they have a decent business model, a secular shift in this industry. it was beat up last week. it acted well today and we're an owner here. >> my question is and let's use delta as an example. how do you distinguish between a game changing event and something that's trance terror? >> for us we look at the industry as a whole and last week when the whole sector was
5:41 pm
down a fair amount and we try to isolate something that would be a good response to that event. >> but why not buy united airlines versus delta. >> that's actually another one that we looked at. we feel like delta is better situated regardless if there is going to be four major airlines in this industry following the doj or five. we looked at them which would be a possible buy as well. >> thank you so much. your shock response strategy. time for pops and drops, the big movers of the day. dropped today, light in the box holding. dropping 40 percent. >> i wasn't really familiar with this chinese online retailer. i would stay aweay from this one. >> netflix, a pop. >> they broke out to new highs for the year and we think it's a member of what our 50 stock list
5:42 pm
of high growth stocks. investors are going for growth here with names like netflix and tesla which would be holding up well. >> tesoro mike khouw? >> utilization in the industry is 90 percent and low gas prices for four weeks in a row. that's what you are seeing. i don't think this is a good time to pile in. >> a drop in deer down one percent. >> they have an inverse relationship to potash prices. longer term it gives farmers more disposable cash to spend on deer equipment. longer term you'll be okay. >> tractors and fertilizer prices like this. pop in weyerhaeuser up two percent. >> they got an upgrade from long bow today. not so bad.
5:43 pm
you get a 3.2 dividend yield. that will do well if we end up going to a low rate environment. >> pop for free driving. here's a story that will make you flip. a columbian dare devil performed a 75 foot back flip out of a helicopter into the hudson river. he's also the holder of two guinness world records including the highest score ever for a competitive dive. is that legal? i mean getting the helicopter to lady liberty. >> was he rescued by ryan lochte? >> i would be rescued by him any day. coming up the market is anticipating tomorrow's release of the fomc minutes. we're going to go around the horn on what they're looking to hear and we'll get a better
5:44 pm
5:45 pm
if you're serious about taking your trading to a higher level tdd#: 1-800-345-2550 then schwab is the place to trade. tdd#: 1-800-345-2550 call 1-888-284-9410 or visit schwab.com/trading to tdd#: 1-800-345-2550 learn how you can earn up to 300 commission-free online trades tdd#: 1-800-345-2550 for six months with qualifying net deposits. tdd#: 1-800-345-2550 see how easy and intuitive it is to use tdd#: 1-800-345-2550 our most powerful platform streetsmart edge. tdd#: 1-800-345-2550 we put it in the cloud so you can use it on the web. tdd#: 1-800-345-2550 and trade with our most advanced tools tdd#: 1-800-345-2550 on whatever computer you're on. tdd#: 1-800-345-2550 also, get a dedicated team of schwab trading specialists tdd#: 1-800-345-2550 who will help you customize your platform tdd#: 1-800-345-2550 even from the
5:46 pm
comfort of your home. tdd#: 1-800-345-2550 and talk about ideas and strategies, one on one. tdd#: 1-800-345-2550 get all this with no trade minimums. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 call 1-888-284-9410 or visit schwab.com/trading tdd#: 1-800-345-2550 to open an account. tdd#: 1-800-345-2550 and learn how you can earn up to 300 commission-free tdd#: 1-800-345-2550 online trades for six months with qualifying net deposits. tdd#: 1-800-345-2550 our trading specialists are waiting to help you get started. tdd#: 1-800-345-2550 so call now. tdd#: 1-800-345-2550 >> in case you missed some of the best moments on cnbc today here's a rapid fire recap in
5:47 pm
tonight's executive edge. >> as someone who has met bill ackman i'm going to say personally, this is your chance, bill. apologize to mike goldman. >> what keeps me up is being able to deliver on our promise. defining what we do is not that hard but doing it is the hard part. >> when i go to the pool it's all about me training. when i get out i want another life outside of the sport of swimming. i like doing other things like what you just saw, me delivering a pizza pretzel combo to adoring fans. >> we like consolidation. we find that exactly what you said is true. routes get eliminated or at least there is less service to our smaller cities. >> we're going to be taking arena football to the next level.
5:48 pm
again, family entertainment, bomb bast more fire power than most third world countries. it's right in your face. it's in your face football. >> is the economy strong enough to sustain a taper and ultimate rate rise? i don't think so. if it's not the conventional type of people who run of fed are obviously goes to print more money. >> heyman capital run by of course kyle bass owns a large equity position in jcpenney. >> what struck you there the most besides ryan lochte saying he wanted to do more than swim by swimming in the river? >> i thought the thing from cramer was interesting. i think he did as good a job as anyone could have done coming into that situation. >> should ackman apologize? >> i don't know. if we ever sold the stock i don't know if that would be the
5:49 pm
sort of -- >> i think the rate issue is at the forefront. i don't think we've been talking about enough is the impact of emerging markets. i don't think you're going to see a taper that's impactful in september. >> you think the fed doesn't taper because it impacts the emerging markets? >> for a whole host of reasons. >> they don't give a darn about the emerging markets? >> then it all comes full circle around to us. i bet you the only reason we're talking about taper is that ben bernanke wants it on record and he gets credit for having an exit in this prop trade. >> now that we have discussed what happened today let's look to tomorrow's release of those july fomc minutes. what exactly will you guys be watching for when it comes to the minutes out tomorrow? obviously details about the taper? >> well yes.
5:50 pm
although i don't think it matters if it's september or a month or two later. the market knows it's coming. >> what you need to look for is how fast they're going to taper. in the last minutes some of the members, the majority of the members talked about ending this latest round of qe by december. assuming it started in september, that's a rapid, rapid taper which i do not think the market could take well. who i'll be looking for tomorrow in those minutes is to see if anybody changed their mind. i do think you can buy bonds into this though. >> that's contrarian thinking. coming up karen is unveiling her mystery trade of the day. don't miss it. back in two.
5:51 pm
5:52 pm
5:53 pm
dry bolt tankers. both of those businesses are turning. day rates are moving up. the supply demand dynamic is stabilizing, a lot of operational leverage as they go up. they also have a south american logistics business. you have a four percent dividend and if you believe that these product and tanker rates have turned or bottomed which i do then you could see a lot of upside here. >> ceo on cnbc during the greek crises to talk about the situation there. >> i love the ceo. she's done a great job of buying assets. she's great. >> your first move tomorrow when we return. more "fast money" right after this. (announcer) at scottrade, our clients are always learning more to make their money do more. (ann) to help me plan my next move i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve
5:54 pm
my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." it starts with something little like taking a first step. and then another. and another. and if you do it. and your friends do it. and their friends do it... soon we'll be walking our way to awareness, support and an end to alzheimer's disease. and that? that would be big. grab your friends and family and start a team today.
5:55 pm
register at alz.org ♪ ♪ [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ]
5:56 pm
>> we have tally the votes and you said bk our bear won the street fight on best buy. are you going to cry? time for the final trade. let's go around the horn. grasso? >> kree has seemed to have stabilized. you're okay there. >> hickey? >> pvh. i want to say thanks to everybody. you guys make it look easy but this is a difficult job. are you short or long pvh.
5:57 pm
>> long. >> it's harder than it looks. h and r block. i like it. we're look. >> buy tlt. >> tender loving my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it. "mad money" starts now. . hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, i'm just trying to make a little money. my job is not just to entertain but to coach and teach you, call me at 1-800-743-cnbc. everything in retail is about -- execution. everything. the right merchandise, you package it right, you
118 Views
IN COLLECTIONS
CNBC Television Archive Television Archive News Search ServiceUploaded by TV Archive on