tv Street Signs CNBC September 29, 2014 2:00pm-3:01pm EDT
2:00 pm
ni source, up 6.75%. iron mountain up 6% and tyson foods up a solid 3% on the trading session. >> all right. thanks very much. it is sort of bumpy end to the quarter. >> sure is. and we have october hlooming large. "street signs" begins now. three major stories we're on top of. number one, stocks down, protests rocking hong kong, the u.s. government now officially urging beijing to show restraint. the big question, what does this mean to you and your money. we'll work to answer it. also, the fallout continues at pimco after bill gross announces his departure. we'll begin advise you on what to do if you have pimco in your 401(k) plan. and what may be the most significant breast cancer breakthrough in years. it's a big one. melissa is in today.
2:01 pm
how are the markets looking? >> it is great to be back. it may not look like much is going organization bn, but what market come back. pairing losses by more than half. we're seeing relative strength in technologies. quite a difference from last week. and underperformance by the small caps once again. recurring theme. let's get straight to the market reporters. bob to you first. >> the market feels like the market wants to go higher. s&p 500, we started at the open and ever since then, we've been trying to move into positive territory. russell 2,000 actually did move very briefly into positive territory largely sideways. strong dollar continues to hurt certain companies that operate outside the united states. so i've been showing the brazilian real down 10%.
2:02 pm
this really affects u.s. companies doing business in latin america. whirlpool for example, that company has been having some real problems as we have seen the brazilian real move to the down side. let's move organizatiuove on, c continuing to hurt a lot of companies. iron or producer, bottom line, eastern or $80 a ton. this company could produce iron or from $80 to $120 a ton. it's not roprofitable anymore. the whole industry has to restructure and find some way to either get the price up or produce a lot more at a lot lower prices. >> let's get to rick santelli in chicago. >> you know, we don't really have a tiger tooth type treasury market. the weak employment report, ecb
2:03 pm
meeting, it seems to have gotten cold in terms offing a gra vagt the sell side of the marketplace. yes all the news on friday gave us upticks and selloffs in treasury, but knee jerk reaction on people company might have been the best market mover. we're going in to quarter he said oig about four basis points lower and it doesn't feel as though anything other than a weak stock market will take it long end going up and price down in yield. of course the data at the end of the week especially nonfarm headlines coming off a 142 will be significant. >> all right. thank you very much. just over an hour ago, the white house issued a statement urging the chinese government to show restraint. this is pro democracy protests in hong kong. so this is how we've gotten to where we are. back in 1997, hong kong transferred to chinese control
2:04 pm
after 150 years under britain. hang seng was at about 14300. 1998, first happened overelections, hang seng down from the previous year. fast forward to 2001. they considered undue chinese government involvement in their business. go all the way to 2011. peak of the markets. china unveiling plans for fully democratic elections in 2017. three years from now. that promise providing a lot of optimism along with a financial run up on the hang seng index. fast forward to this june. china says it will pick the candidates, basically that the candidates that they would vote on is simply illegal. that is what people are outraged about on the streets of hong kong today. and keep in mind the happening sang peaked just under 32,000 in november of 2007. unlike our markets, hong kong
2:05 pm
has not recovered all that it lost pre-financial crisis. and the folks there outraged by the fact that china excerexerti control over what they felt were free and open elections. >> so what does this mean for your money? let's bring in former u.s. consulate general and also mike holland. great to have you. ambassad ambassador, if i'm in hong kong, august 31 when they came out with the report citing hong kong residents in consultation, that exceptionally beijing can nominate candidates, i'm feeling like the rule of the game are being changed mid game. >> yeah, i think so. there are two issues here. one is democracy. hong kong people have been promised universal suffrage.
2:06 pm
it's been postponed once or wois already. we're 20 years on. it's time. but the second thing is the deal. the deal was universal suffrage. it wasn't you could vote on people after we decide who you can vote on. and that's what they have instituted in the process. and so any harm to hong kong's integrity and autonomy, going back on the deal, has to be a bad sign for hong kong. >> mike, at the same time, beijing doesn't want to kill its golden gho en goose, so it won' anything that would endanger it from being the financial center of the world, will it? we are seeing reaction in the bond market, flight to safety trades out of hong kong into treasuries. >> yeah, this one is different. i've been going over there since '97. and this one is different. i was over in hong kong last week. and the people there whom i've dealt with over the years were
2:07 pm
more nervous about this and now i see why this potential for some problems for hong kong as well as for china because the chinese have done a number of things with the new regime that would indicate they're pretty tough. and when they look at macao and taiwan, they see things that if hong kong goes in a certain direction, different than what they're talking about, the pro democracy forces that ambassador refers to, there are all kinds of things going on here. so it's a very uncertain moment and that's why these people were as trepidacious as i've seen them. >> you have 80,000 plus people and we're showing video of it right now exceptionally camped out in the central business district of hong kong. how long is the chinese government going to allow them to remain there? because they don't appear to have any intention of moving.
2:08 pm
>> well, i think first of all these are peaceful protesters. they deserve to be respected and so it's a whole lot better for beijing and especially the hong kong government to back off a little bit and let these people have their say. but they need to think about what is in china's interests and that is to show respect for hong kong, let them have the rule of law, let them decide their leadership. because china's economy, china's future depends on having an outlet like that. a place where people can book their deals and do their trades. >> agreed. but to follow up on that, the chinese government has never been known for its soft touch. they have not been afraid to show a hard line stance. do you believe they will here again? >> internally, yeah, that's true. but externally, they have had a lot of i'd say a fairly good record on respecting hong kong's
2:09 pm
integrity. the problem is you're now coming into a year when you've had new leadership, imposing a lot tight are controls in the mainland. and then taking forays into the issue of hong kong's integrity, this thing about universal suffrage and how it should be carried out. there are a lot of questions in the air about their willingness in the long term. and it may not be an immediate crush on what is going on in hong kong. but i think it's better for them to show that they will respect hong kong over the long term because china needs that. >> if could i -- >> last word. >> if i could just back up what he was saying.i could -- >> last word. >> if i could just back up what he was saying. there is already a sense of nervousness going on over there, so the sales actually are about as flat as i've seen them in 20 years for these companies who
2:10 pm
used used to agree 5%, 10% a year. so they don't want a lot of unemployment. they need the businesses to be growing. if they don't grow, they don't have employment. so i think what he's saying makes a lot of sense. i think this can be done peacefully, but i think right now they're showing their hard edge and i think it will soften. >> great conversation. thanks, guys. so now geopolitics obviously impacting the markets here. major averages all in the red. dow a little bit off its lows. let's get more market insight and how to play the volatility. john manley and neck, let me frame the world right now. we have bankruptcy in argentina, sven say venezuela, isis or isil, whatever you want to call them, germany on the brink, and massive protests on the streets
2:11 pm
of hong kong. and yet the dow is down a whopping 0.3% before should we find optimism and dare i say hopeism, that's our work, by the tact we held up so well? >> i think you're on the right track. i think guy o i think geopolitics is taking the place of all the worries earlier in the rear byear but cg more volatility. and the vix is twice as likely to peak in october as the average month in the year. so i fully expect that we'll sigh the vix over 20 in the next two to three weeks in october and probably over the 22 level of the highs from february. so it will be a choppy period. but you're right, geopolitics drives the volatility bus. >> how are you feeling about earnings given we haven't really gotten too much commentary from
2:12 pm
companies? brazilian real down 10% against the u.s. dollar. and we haven't heard much in terms of warnings. >> i think it's something to worry about, but i don't think it will be a terrible impact on the market. we know what currency does. we know that to a degree it's ephemeral. sometimes the dollar goes up, assigns dow sometimes down. i think the fed will remain accommodative and i don't see any reasons yet to see that the earnings will show signs of deteriorating from the top line down. >> and neick i spoke to you before the ali baba ipo and we talked about it might back the market peak. the high was made on september 19, the day everybody was toasting ali baba's huge ipo. have we seen the best of the are markets in the third quarter? >> it is really tempting to think so.
2:13 pm
i think we're facing a downdraft in october. i'm hopeful that the corporate earnings do pull us through, but, yeah, that's the number one question i hear from clients, have we seen the highs on the year. >> amazing that we're talking about a company effectively trading at 25 times sales respect that is worth more than facebook and being the future of a country who on the same day we're showing video of 80,000 peaceful protesters who might get cracked down on by the chinese government if they didn't scatter. isn't that an incredibly juxtaposed position? >> same day the shanghai composite hits the high. >> as of now, today, literally, you, us, foreigners can buy domestic stocks in china. nick, i'm sure you know that. they created a new vehicle. you could never find domestic mainland china shares. now there is a vehicle created.
2:14 pm
i have a feeling they're not unrelated. >> it's hard to find growth anywhere in the world right now and the chinese economy does offer that growth to investors who need that mandate. so you can totally see why the demands is there for chinese stocks or big internet ipos. >> all right. last word, john. our viewers listening, watch, whatever, thinking let's hope these peaceful protesters are left in peace and that it resolves itself, but what does it mean for my 401(k)? i own ibm. >> remember everyone has something to lose. and when you have something to lose, you tend to behave more rationally. and i think as we work our way through the number of problems that seemed insole uheuableinso hoping that happens now. let's watch the earnings and fed. at the end of the day, i think they make more. >> thank you. the fallout continues following the bombshell announcement that bill gross
2:15 pm
will be leaving pimco and will be joining janice. both companies starting to spin the story. plus business travelers and every else still dealing with that air traffic nightmare out o'hare. we have the latest on when the mess is expected to get cleaned up. % how much money do you have in your pocket right now? i have $40, $21. could something that small make an impact on something as big as your retirement? i don't think so. well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. ♪ mr. daniels. mr. daniels. look at this. what's this? clicks are off the charts. yeah. yoshi, we're back. yes, sir! ♪
2:17 pm
2:18 pm
joining tiny janus capital. it's rocking the investment world. there has been talk that basically gross quit before he could be shown the door. >> what is it interesting about this, yes, because when he left, he left on his open terms. he already had a line job lined up, obviously janus. in essence he will be managing their unconstrained global fund in conjunction with his arrival. so what it comes done to, how much money will he be managing. it's not even in the billions. the janus unconstrained global fund currently has about $12 million or $13 million in assets. >> whereas at pimco, he was in charge of $300 billion. >> right.
2:19 pm
so total return bond fund at pimco is what he's most well-known for. he also managed their pimco unconstrained bond fund. that's about $20 billion, $22 billion in size. what janus is looking to do is take a huge rock star beg name in investing and use that to take the field of dreams approach. if you build it, they will come. it if you have bill gross, people will flock. just today, pimco put out a note on their win seebsite and they all the virtues to why you you want to stay with pimco. so this is very much an offensive. the methodology hasn't changed. our performance will still be there for you. stay with us. but of course janus hopes that they go with them. >> a huge wild card here with janus that i don't know the
2:20 pm
answer to. these firms, they hire consultants. by law they are required to have a consultant. call it a russell, they are by law required to have these firms. >> an adviser. >> to get on the approved advised okay list at russell, pca, cambridge, et cetera, you have to go through this expense extensive vetting process, et cetera. so i don't know the answer to this. is janus on the russell, pca, vetted -- because if it's not, nobody can recommend that they give the money from pimco to janus. >> and how much of that is a track record. this fund has only been around since may 27 of this year. so it's a very young fund. a shell of a fund if you will for right now. but it needs to build up a track
2:21 pm
record and show fiduciaries that it can be a viable investment option. and like you said, they have -- >> because think about this way. if there is $100 billion at pimco that someone says bill gross is gone, we should move $25 billion of that out of pimco, all right, just to be safe because we didn't know what will happen. he has a track record. we don't know the new guys. if janus is not on their list, the consultants cannot say take the 25 and move to janus just because bill gross is there. if they're not vetted and approved, and again, i don't know if they are, they might be. i'm reaching out to find out. >> so we as individuals can choose to move our open funds and we might want that smaller entrepreneurial fund because beta is better at a smaller fund as opposed to a fund with hundreds of millions of dollars. >> even at the very least as a retail investment adviser, you still have to conduct a certain
2:22 pm
amount of due diligence. so beyond consultant, you still need to do a little bit of homework on your part before you start putting your clients into those funds. >> i talked to some investors today, they said he's never met him. doesn't know him. >> they will have to recommend dwi th recommendity that. >> they should hit the road. come on cnbc. dom, thank you. bond world still coming to grips with bill gross' departure. what role did his leadership style play in his exit? thanks to you both for joining us. tracy, i would positive it i.t. it's not necessarily his personality, but his performance because it has lagged the past three months or year to date. bottom 30% of the morning star.
2:23 pm
>> that's certainly very true and we've seen outflows from the total return funds over the past few months. but you can't disregard the personality factor all together. there is been quite a few reports about erratic behavior by mr. gross. investors have complained they weren't informed ahead of time of el-erian's departure and or of the gross departure and that doesn't sit well with conservative investors. >> jeff, there is a lot that i want to say but i'll refrain from saying it. >> oh, come on. say it. >> no, and our viewers know bill gross and pimco have been great to our show and us. but i will say this. haven spoken to people with inside knowledge of the works of pimco, there is no question amongst both consultants and
2:24 pm
insider ares about bill's prowess as an investor. there were many questions about his ability as a leader. i'll leave it at that. >> i think there is a founder's phenomenon here to be considered. we have seen the grandiosity of some retailers like lululemon and american apparel flash into scenes such as this. we wondered what was going on at oracle and now pimco. founders think they have what is on which called idiosyncrasy credits. they don't leave unless it's a feet first exit the way a monarch leaves. and in this case, the grandiosity was certainly getting to him. of course the firm has lost almost a third of its backing. that's pretty bad. they have been underperforming the last two years against key
2:25 pm
benchmarks. so yeah, there are performance issues. but the erratic behavior, the grandiosity, the sunglasses at key investor meetings and eulogies to his dead cat and things like that, it's disconcerti disconcerting. they do speak to some concerns. and we haven't had a chance yet to talk about the shadow cast on his reputation perhaps unfair. i don't know nthat the allegations from the s.e.c. of improper reporting of assets. >> there is a guy named bill thompson, on the board of citigroup. he was the co-ceo of pimco for a couple of years. what i've heard today in my reporting again is that he really was part of the glue that held people company -- pimco is a great company, but bill thompson was highly krund raund
2:26 pm
and never took any attention for himself. when he left, there was bill and bill is an investor and leader were very different things. >> there is something to that. i'm not saying co-ceo, but often a great partnership. frank wells when he was alive and well made michaeli eisner te greatest media bear. after he died, it was much rougher going. we've seen that happen repeatedly. at coca-cola, don was happy to be the quiet understudy that fixed a lot of problems. when he was gone, it mattered. and i think you're right, bill thompson made a difference. but there are quirky qualities of bill gross that we didn't know so much about. but you also have to play in the age. at age 70, ironic will he the exact same age as fred smith at
2:27 pm
federal express. >> all good points. i want to get back to tracy, though. if personality and leadership style was such a big deal, how long do you think he'll actually last at janus? he goes from bond king to bond i don't know what, prince for the bond fund barely under existence. he has a founder's complex and now he's not in charge at all. there. >> gross said he was leaving because he wanted to get back to the bread and butter off efe e investing. so now he has an opportunity to go to janus and show what he's made of, show that the reputation that he's developed 6 being a bond picker extraordinary is still there and he can still do it. and he doesn't have the excuses that he used to have at pimco
2:28 pm
which were he's managing a ton of money and whenever he changes positions, the market front runs help and they all know his investment strategy. this time he has no excuses. he's at a small eveuller fund a has to show what he's made of. >> he's writing his open narrative. fight not flight. create a new mission. he's doing it just right for his open recovery. >> all he has to do is rchl n perform now. >> and pimco has tos assure everybody they're fine. >> if you've been ranked at the bottom 30%, maybe you're inclined to keep your money there. >> consultants are starting to recommend money be placed elsewhere. if you're headed in or out of o'hare, you need to stick around. up next, the latest on the
2:29 pm
massive gridlock crippling the busiest airport. >> and if you are short this trade, prepare to get roasted. want to know more? stick around. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.
2:32 pm
massive travel mess in its third day. more than 2,000 flights in and out of o'hare have been canceled since friday after a map set fire to a nearby ray dwar ifdar. kevin tibbles joins now. >> reporter: october 13 is the date we've been given by the faa. and that's still two week down the road. so this is a real mess at o'hare, midway and for anyone flying out and out of the midwest as well as flights flying high, cross country flights, transatlantic flights. there have been a number of people strappnded here since la friday. so this act of sabotage is a
2:33 pm
flow. and you can't even get a rental care. so much business hangs on flights coming in and out of the windy city. just imagine the count on, the domino effect of the cost that this one single act sabotage by this one accused man seems to have caused. it's quite something. the faa said today that they have some 29 banks of computers in this building. and they will have to replace about 20 of them. there's a lot of damage in there. >> kevin, thanks for the update. hope you don't have to travel anytime soon. we're talking search engine, special deliveries and banner day for one under the radar stock. >> plus after a tweet sent out this morning and we'll hammer him into the ground about owe
2:34 pm
2:35 pm
time and sales data. split-second stats. ♪ its so close to the options floor, you'll bust your brain-box. all on thinkorswim, from td ameritrade. ameriprise asked people a simple question: in retirement, will you outlive your money? uhhh. no, that can't happen. that's the thing, you don't know how long it has to last. everyone has retirement questions. so ameriprise created the exclusive.. confident retirement approach. now you and your ameripise advisor can get the real answers you need. well, knowing gives you confidence. start building your confident retirement today.
2:36 pm
the conference call. the ultimate arena for business. hour after hour of diving deep, touching base, and putting ducks in rows. the only problem with conference calls: eventually they have to end. unless you have the comcast business voiceedge mobile app. it lets you switch seamlessly from your desk phone to your mobile with no interruptions.
2:37 pm
i've never felt so alive. get the future of phone and the phones are free. comcast business. built for business. time for street talk. >> we do the work for you. stocks that you must know about today. >> first up, yahoo!. >> been in the news a little bit lately. upgraded to buy from hold. lauren martin, one of the best on the street, her target 48 bucks, about 20% more up side to i can't yahoo yahoo!'s current price. >> 1767. >> they see the stock worth 6 and change. fedex getting upgraded.
2:38 pm
>> target all the way up to $210 a share. folks, that is another 30% up side to where fedex is trading right now. >> up next, mckesson. >> barclays target, $223 a share. 13% more up side to now. last week, goldman sachs bumped their target to $225ed. 16 analysts average rating is a buy. >> and finally walla walla washington based bank. up tragraded to buy. >> i just wanted to hear you say walla walla washington. banner likes the core business and dividend increase could be
2:39 pm
possible. they pay 1.85. a little low maybe. but still banner. under the radar name on street talk for today. let's move on. software company tibco being acquired by vista equity partners for approximately $4.3 billion in cash. let us bring in herb greenberg. he is editor of street.com rely realty check research report and also cnbc contributor. i must ask you about a tweet that you sent this morning and if people don't know you, when you e-mail us, i can't even read it. your hmisspellings, like invertd sin tax. oops, just got killed on half team report. but will be on maybe favorite show street signs. we're maybe your favorite show
2:40 pm
some g? got to be a typo. >> a you know you're doing it and you just put something out and it's auto corrected for you. the next tweet i said my favorite show "street signs".yo it's auto corrected for you. the next tweet i said my favorite show "street signs". i knew i would catch flack for it. >> and you're also indirectly insulting "fast money". >> faexactly. equal opportunity ensuggeeninsu. >> so "street signs" is your favorite show. and that was just a horrible mistake that could have jeopardized your entire future with this fine program. >> street signs ois my home awa from home. >> he didn't say it was his favorite show. let's talk tibco. do you think somebody else will come in? >> i think that when you look at
2:41 pm
this thing and the valuation and the history of tibco and it was in the mid-30s from hewlett-packard and you look at what this bid -- the way it's being valued. it's based on the recurring revenue when the recurring revenue is only part of the company. it doesn't take into account the future growth of its real growth engine which is spot fire. so you have to think this is -- vista has nothing to lose. they will flush out if anyone is out there and we'll see sooner or later. the interesting part of this story is every single analyst came out today saying there will be no morbids. and what i would say to that is every single one of those were saying there will not be anymore bid. so you have to take that sort of with a grain. >> we will similar do that. herb, great insight as always.
2:42 pm
and we should note herb greenberg as 64,000 twitter followers. the man is a legend. if you're not following him, you're missing out. you've got those magnum pi corduroy shorts on, you're on the elliptical and sending out the tweet. so we forgive you. >> a disturbing image. >> ledgend in my own mind. unpress departme benefits found in a drug for breast cancer. >> and today is apparently national coffee day. we'll look at it as an investment. take a deep breath in... and... exhale. aflac!
2:43 pm
and a gentle wavelike motion... aahhh- ahhhhhh. liberate your spine, ahhh-ahhhhhh aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just four days. ahh! four days? yep. find out how fast aflac can pay you, at aflac.com. your customers, our financing. your aspirations, our analytics. your goals, our technology. introducing synchrony financial, bringing new meaning to the word partnership. banking. loyalty. analytics. synchrony financial. enagage with us.
2:46 pm
in case you're wondering why so many people are getting a free cup of joe, today is national coffee day. seems like a good time to take a closer look at coffee prices. joining us is the president of magathy products. it seems like currency is playing the biggest factor. brazilian real down 10% against the u.s. dollar and that is triggering farmers to sell what they have. >> definitely is. it's putting pressure on the market even though we had trouble starting at the beginning of the year with the partial drought and that boosted prices a lot. and now we're looking at projections from next year that the crop will be a little bit lower and adding that to what the global supplies are that they will be a deficit. but with the real sinking and the strength of the u.s. dollar, it will definitely put a lid on any kind of rally as it stands right now.
2:47 pm
>> so what is the overriding trend at this point the way you see it over the next, i don't know, six months or so and when do companies typically lock in their coffee prices? >> they will start looking at it now because the projections are out, forecast is out for 2015. and the year goes there october 2014 to september of 2015. that is the year the way they look at it. so the projection is going to be a little bet loweit lower. everyone will start to step in for the next number of months. but the markets moving sideways. however today, it is national coffee day. we have a little bit of a pop in the market and it did he said owi oig up on a positive note. if we see the markets continue to keep moving higher, i think everyone will start gathering what they've got. >> may or may not have been somebody on this show that 14 months ago made a bet with herb
2:48 pm
gle greenberg would be one of the best investments. turned out to be pretty good. >> i think they were looking at prices were low. it was lackluster. who would have known about the drought. and it has an extending problem because it really damaged a lot of the trees. so i think that is why the projection even for next year is going to be difficult even without the drought situation. they lost some of the free f of bushes. >> one word answer. one year from now, i'm a consumer. am i paying more or less for himy cup of coffee? >> i believe you will be paying more. >> all right. great to speak with you. a major break through in the fight against breast cancer. a new drug showing unprecedented benefits. this is fantastic news. >> definitely still a ways to go, but doctors are calling this the longest extension to
2:49 pm
survival ever seen. it's given in combination with another drug and therapy. it helped patients live 17 months longer in a trial. this is in a genetically defined cancer. the two drugs are in combination to send life aextend life. often cancer drugs are approved based on a metric showing the cancer has stopped spreading, but it doesn't show whether it extends lives. so seeing the benefit, overall survival extended 56.5 months compared with 40.8 months. so this is a big advance. >> it's considered a standard of care. so does this mean more prescriptions for patients? >> yeah that eat thought.
2:50 pm
we're hearing half of the patients in the united states are being prescribed this this drug, so it could this drug. >> does this hurt with the competing treatment? >> there's another one that's smaller and that one's developing a drug for her-2 and had data in lung cancer which analysts said was more helpful to control the side effects of the drug and it's a biggest maker of cancer drugs in the world and harder for smaller companies to compete. >> thank you. >> thank you. all right. here's a big question this people are asking today. why in the world does a japanese bank want to buy dreamworks? >> not a bank. it's softbank. >> not a bank. that might be a question that people would ask if they didn't know that it was a technology company that had the word bank in the name.
2:53 pm
will that be all, sir? thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. and often even more. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $89.95 a month. comcast business. built for business.
2:54 pm
let's talk numbers and talk some dreamworks. ror reports say that japanese softbank which is not a bank may buy it. barton, first to the fundamentals do you, pun intended, buy this report? >> you know, on a fundamental basis, i have a $20 price target for dreamworks. i'm not a buyer of this pop on deal talk and not recommending it on deal talk. i see a company that's got a lumpy earnings stream of success and failure of movies and got a couple years out and a couple bad movies recently and had to get comfortable with the valuation here on a normalized relation. i'm skeptical. i mean, if the take-out report has anything underneath it, we're close to the price
2:55 pm
reported and most people would have a hard time justifying it here so i have a hard time chasing it at these levels. >> what's the chart look like ari? >> technicals support that fundamental story right there. how i see it, take profits right here. to buy and even to stick with the strength after a 24% pop in the stock, you're playing for momentum to build. you can play that game if there's already long-term momentum in the stocks. dreamwork doesn't have that. what they have is a lot of resistance at around $28. that was its june peak. see the 200-day sloping lower. i'm expecting to see sellers here on the downside i don't think we make it back to the lows of the summer but $24 seems like an important support level and work back there. overall unfavorable risk reward. i'm a seller. >> thank you. >> do it in five minutes. >> do it in five minutes. >> we're back after this. [ male announcer ] your love for trading never stops.
2:56 pm
so if you get a trade idea about, say, organic food stocks, schwab can help. with a trading specialist just a tap away. what's on your mind, lisa? i'd like to talk about a trade idea. let's hear it. [ male announcer ] see how schwab can help light a way forward. so you can make your move, wherever you are. and start working on your next big idea. ♪ and start working on your next big idea. i have a cold. i took nyquil but i'm still stuffed up. nyquil cold and flu liquid gels don't unstuff your nose. really? alka-seltzer plus night rushes relief to eight symptoms of a full blown cold including your stuffy nose. (breath of relief) oh, what a relief it is. thanks. anytime. this guy could take down your entire company.h? stay with me. on thursday a hamster video goes online. on friday it goes viral - a network choking phenomenon.
2:57 pm
why do you care? he's on the same cloud as your business. the more hits he gets, the slower your business may get. do you want to share your cloud with a hamster? today there's a new way to work. and it's made with ibm. i have the worst cold with this runni better take something. dayquill cold and flu doesn't treat your runny nose. seriously? alka-seltzer plus cold and cough fights your worst cold symptoms plus your runny nose. oh, what a relief it is.
2:58 pm
protests in hong kong not only still going on, melissa, likely larger, as well. a live picture right now in hong kong 12 hours ahead where 80,000, 100,000 or plus depending on the estimate you believe, people gathered to protest china's crackdown on the freely democratic elections planned for 2017. which now may only include on
2:59 pm
the ballots those people that have been hand picked by the chinese government in beijing. >> and there's, of course, an economic impact to. this hsbc had to close many branches for a few days, same thing for standard charter and retailers there could feel an impact especially the luxury retailers. mainland chinese people may not go to hong kong to buy the goods and getting retail sales numbers tomorrow for august and not seeing this impact but this is certain ling to be on the watch especially for luxury guy that is have seen sort of a pullback in recent months. >> but also, watch the social networking. the facebooks of china, if you will. those have been outlets in the past for talk of instagram. >> it was shut down. >> shut down in china or pushed offline. whatever you want to believe and remind the viewers an listeners, it's 3:00 in the morning. and the crowd is vibe rapt. they're bustling. this is not going away any time soon. >> remarkable. >> exactly.
3:00 pm
just a quick check here. dow industrials down 63. come off the low. crude oil up a bit. up $1 right now. gasoline unchanged. that's the market set-up. >> i'll see you at 5:00 on "fast money" talking about what's in play. "closing bell" is next. at the national coffee day, we are fully calf nated near at the new york stock exchange. i'm bill griffith. >> i'm sarah eisen. a rough market day. it was a lot rougher earlier in the session. those stocks so firmly in the day to start the week and the day and not as bad as the open down about 178 points on the dow. >> as you saw and you've been hearing all day, the angry protests in hong kong that continue even at this hour, fueling much of the selling,
90 Views
IN COLLECTIONS
CNBC Television Archive Television Archive News Search ServiceUploaded by TV Archive on