tv Power Lunch CNBC October 9, 2014 1:00pm-2:01pm EDT
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so ally bank really has no hidden fethat's right. accounts? it's just that i'm worried about you know "hidden things..." ok, why's that? no hidden fees, from the bank where no branches equals great rates. the market down as you probably know, triple digits. one of the steepest sell-offs so far this year. take a look at the dow. the dow moved nearly 2,000 points in fewer than seven days of trading this month. look at these peaks and valleys. we have $5 trillion worth of advice on this rocky day. we have some of the biggest players on wall street with us here today. advice you won't hear anyone else but "power lunch." you'll hear from blackrock's
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president rob kapito. which is a better bet, stocks or fixed income? bonds and stocks, we have two people who will make the case for fixed income. we'll have a top pick. $5 trillion, folks, that's a trillion dollars every 12 minutes. 100 million about every minute. don't miss even a second of this show tonight. sue, down to you. >> sue is not there. i'll pick it up here. big market sell-off following yesterday's huge rally but one of the bright spots today as hand apple. it is up on the icahn letter, carl icahn explained his move just minutes ago to our scott wapner, right here on our network. listen in. >> every time they sell a phone, scott, they have another annuity. they have another flow that they guarantee. people don't get rid of these
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phones. i think this is not realized and as a result we are writing this letter. >> let's hear from an apple shareholder, michael farr from washington. welcome. you're actually here with us today. what do you think of apple? what do you think of icahn's exhortations to buy back more stock. >> i think apple is fairly priced high. i'd have another 35 stocks that i'd like to suggest are undervalued as well, because i own them all. i think you have to keep in mind that mr. icahn own s stocks of icon and will benefit if the stock goes higher. longer term is a growth story. it's sale and gadget dependent that you do have to be a bit cautious. >> let's talk about the broader market and why you think the market is behaving the way it is behaving today, over the past ten days. what does it signal to you, these big moves?
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>> across my career, we have noticed a couple things. from time to time, markets go down. stocks can go down. okay? it's not the end of the world. it's not a reason to panic. but this market has gone up remarkably over the last five years, six years. i mean, it's been terrific. from 2009, i guess, in february, to now, it's been a remarkable run. we haven't had a significant pullback. this feels toppy to me. you can't judge the effects of what the fed and all of this quantitative easing are going to do. this week is a great example, right? you saw the fed release yesterday, market was up a couple hundred points, we're down a couple hundred points. it feels toppy. to quote a friend of mine, we're feeling dire exhaustion. >> let me ask you to flush out your thought and fast forward the movie a little bit. is toppy code for correction or is toppy code for meaning that
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the bull market, the fundamental pillars of the bull market are over and that we may be in for something different? >> i don't feel like the fundamental pillars of the bull market is because the economy is constructive and xparnding. economy has to shift from a fed monetary policy and deficit-driven spending kind of an economy that's really driven a lot of the growth to a consumer, consumption, demand driven growth. that's going to be a rocky transiti transition. but i think we're still okay on the economy. we're due for a correction, you know? we're due to let air out. as warren buffett tells us, you get to see him swimming naked when the tide goes out. >> sue, we've apparently been able to establish connection with sue and her guest down there. go ahead, sue. >> joining me right now is george young. he's the co-manager of the
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villory balanced fund. we're down 284 points. as a money manager what do you do on a day like today. >> you buy. >> what do you buy? >> a couple things to remember, one, it's important to withhold at the top. >> it's hard to do that all the time, though. >> it is, it is, sipsychologicay hard to do. >> where would you put it? >> lkq, like, kind and quality. when you get in a car wreck, you may think when your car is repaired you're getting brand new parts. what you're getting is refurb h refurbished parts. >> what about apple, you know, mr. icahn was on our air. a lot of people think he's talking up the stock because he does have a position in apple. what do you think of apple? >> love apple. we own apple. it's interesting.
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this is nothing new. apple has been buying back stock for some time. it's nothing new. i think he's overly optimistic. he thinks it can double from here -- >> maybe not? >> 0 every a long period of time anything can double. i don't think it's quite as optimistic. great stock, great products. >> what about the global growth scenario? we had a bad data out of germany which started this market sell-off. can the u.s. market continue to march forward if the entire global growth scenario is basically being wree written? >> right. we don't buy foreign stock. we know domestic stock, remember, he has a level playing field and a strong economy. if it's a level playing field, you have s.e.c., maybe they're not perfect but they are good at leveling the playing field. you have great opportunities here. germany, france, italy, all
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those problems over there, that's for them to deal with. >> thank you so much. appreciate it very much, george. all right. breaking news in the bond market, the 30-year bond up for auction. rick santelli is tracking reaction. >> the last -- 29 years, 10 months, making a premiere in august. what's the deal here? those 13 billion had a yield of 3.074. almost identical to the side of the issue market. priced about right. $2.40 of investor dollars chasing every dollar's worth of available security, it's smack on. 46.2 on indirect. the one light spot, 21.5 on direct, takes out the ten option average of 16 but the recent trends have been higher versus lower. c plus on the last of the auction as we are just about
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ready to cut 301 on the dow right now, breaking news. so, sue, i'll toss it back to you with that dismal number. >> it's not a pretty day down here. it still feels orderly but the fixed income markets. dominic chu. >> let's take a look at the worst performing sector in the s&p 500. that is energy as oil prices continue to fall, early today we saw brent crude fall below $90 for the first time in a couple years ago. exploration and production companies, anadarko, danberry, chesapeake, neighbors industries, a broad group of oil and gas are lower on the day. oil services companies lower as well. back over to you. >> and it is what a day we're
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looking at here. the dow industrials down 300 points again. it was earlier at that more than 300-point down dive early today. once again here as we watch really the return of a kind of volatility that we have not seen in, dare i say a couple years here over the past couple of weeks. one of the many legs impacting the markets are comments by the ecb, the central bank in europe. the president there, mario draghi who vowed to enact more monetary stimulus as needed. steve lease miesman has details washington. >> thanks very much, tyler. mario draghi, speaking here in washington, the brookings institution. he had plans to increase the size of the balance sheet as needed over a period of time. he wants to go back to the 2012 level which is almost 1.1 trillion euros higher than it currently is. the question is whether or not
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it's enough. here's what he said about the new era at the european central bank and its policy. >> we are transitioning from a monetary policy framework, predominantly founded on passive provision of central bank credit to a more active and controlled management of our balance sheet. we expect measures to have a sizable impact on our balance sheet. >> reporter: so what the ecb had done previously, guys, it would do its policies without considering the effect of the balance sheet. that created a huge decline in the balance sheet and perhaps european economies went along with it to the downside. now they'll targeting a balance sheet. he's not giving it a time period. we talked to stan fisher. i got to ask him a question about the impact of the dollar on u.s. monetary policy.
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>> there will be a separate factor, we'll be judging what's happening to inflation and acting on that basis. >> so stan fisher not really adding to the comments made yesterday. he cited the minutes and said you know what, that's what we have to say about it. remember yesterday those minutes which sparked a rally, showing the fed's concern with overseas swell the depreciation. >> carl icahn we began the broadcast with him, urging apple's tim cook to increase its share repurchase program for stockholders. he did so in an open letter today that he hinted about yesterday. he then stopped by "fast money halftime report" to talk to scott wapner about it. give us the highlights of what's in the letter and what he said to you. >> i asked him about the market.
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remains concerned about where we are. thinks a correction is a matter of when, not if. of course the point of our conversation was to talk about this document right here, that is the letter, the latest one, that carl icahn, his son brett icahn and his own business partner, shadavid scheckter hav sent to apple, asking for a massive buy back, a tender offer and arguing that the stock is dramatically argued -- undervalued. in terms of the size of the buy back, remember a year ago they asked for $150 billion. today i asked carl, how big do you want this time? here's what he said. >> i'd love to go all in but obviously they'll never do that. that's my nature on this one. but i would like to see them do a massive tender offer. i think if they did that, it
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would be very helpful to shareholders that stick with it. you know, as we've said, we would never tender into it. >> sure. >> if they did a dutch tender or a massive tender, i can say as much as $100 billion, i think this would really change the whole paradigm. >> i think you gathered from our conversation and even the tone of the letter, that the conversation that carl and tim cook are having now versus a year ago is not quite as contentious. carl went out of his way, he does in the letter, that cook is a guy he believes in. >> there was a real detente there. didn't apple, did they split the stock, raise the dividend on it? >> they bought back more shares than anybody ever. they have a big buy back program in place. they say, look, it's dramatically undervalued. if you do this massive tender,
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it could make the stock where it should be trading. they say $200 a share. they say it's underowned, one of the reasons they believe it's undervalued. apple came out with a statement, by the way, within minutes from the release of this letter, yes, we appreciate input from our air shoulders. >> wouldn't you like to be at the next table when they have dinner? >> yes. >> thanks very much. sue, down to you as we look at the dow diving there 307. >> it was down 327, ty, just a few moments ago. we did make a new low on the day. art kassin saying we took out that 1950 mark and the 1940 mark on the s&p 500 which triggered technical selling. we are at or near our lows of the day on the dow jones industrial average, the s&p as well. and basically, the market's momentum to the downside is picking up. volume is picking up down here, too.
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where is the money going? it's going into the ten-year note. the year was 2.30% and the transportation average confirming the downside move in the dow jones industrial average, transports are down better than 2% on this trading session and the russell is getting really hit very hard, too. so we're keeping an eye on it. coming up on "power lunch," we're going to talk more about whether activist investors are a distraction. one management expert will tell us what he thinks of carl icahn's letter to apple, plus thoughts from cnbc's jim cramer.
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jeff sonnefeld is here. and dom chu joins us from across the way from the studio in englewood. let's start with carl icahn and what jim cramer just said. what is interesting here, some is of the activists, whether it's icon, mr. peltzen in the case of pepsico, they seem to be going after the suma cum lauds of the equity world. why is that and is it justified? >> no, it's not justified. i think jim cramer is right on the money as he generally is. in pointing to the irony of going after places like, you know, dow or due upon, strong performers, not to mention looking at the record performance we have coming in from pepsico at all-time highs, both on the frito lay and the snack food side as well as on
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the beverage side. strong revenue growth and profits. a lot of new products coming out in the midst of all of this. how in the world -- or tim cook, of course, the topic of the afternoon right now is how could you not be investing in and be enthusiastic about apple, is to suggest a cash flow issue because it's a ready target. carl kicks up a lot of dust. he's a brilliant investor. he doesn't always get them right. he's had colossal failures. blockbust blockbuster, wci, xo, pkf, these companies all went to zero while he was on the board, generally the chairman of these enterprises. they lost all their value. >> nobody needs to speak for carl icahn. i won't presume to but i think he would say, hey, look, a year ago we made proposals to apple, they adopted some of them, got more aggressive in buying back stock, they split the stock and
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look what's happened, the stock has gone up 50 some percent since that time. >> hey, look, i was telling ebay years ago to split into two. look what they do. they're doing it. no. it is a little -- you know, ebay, perhaps you would argue on that. they'd argue back at donahue and others that they were not ready to split at that time. maybe it was the right idea but the wrong execution. timing matters. they had to unravel hr and all kinds of strategic interentanglements between these business lines to make that work. he's done well with netflix, chesapeake. he was brilliant and great american. but when you take a look at apple, you have, what, $170 billion of their cash trapped abroad. 139 of their accessible cash is overseas. >> right. >> when we have analysts talking about how much overcapitalized perhaps apple is, there's not
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that much they can liberate right now. his company admits has done well. all the school yard antics of the frat boy demeaning comments on others, they he does love andreasen -- he does love tim cook, that creates news but it won't create wisdom here. >> frat boy or school yards in queens i think in his case. >> he's looking at the play ground in queens for the bill ackman. >> that's right. different playgrounds he maintained. i'm looking, dom, at the dow here. all 30 stocks are negative. it's the kind of day we grew accustomed to in the late part of the last decade. what's going on in this market? you heard michael farr say the market looks toppy to him, these kind of wild swings up and down. >> it's interesting. back in the depths of the financial crisis, i remember waking up to headlines saying futures were down in japan or
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somewhere else. we haven't had to deal with this process in a while, certainly not as much during the zero interest rate policy from the fed. there is a sense among many in the markets right now, many professionals, that the one thing we lacked during the market peaks that we've seen since 2009 is a good amount of volatility, especially over the last couple of years. as everybody's been waiting for this pullback that's been something deeper than 3% to 5%, what we have not seen are these types of major swings. so there are some in the market that say, dom, this time around, it may very well be different than it has been for all those little pull backs that we've seen over the last three years. the reason why is because this type of volatility sometimes does signal a change in sentiment. so as we check out what's happening, we are right now just down about 4% to 5% from our all-time highs given today's 1.5% pull back. if that is the case, this is in line with other pull backs we've seen over the past two to three
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years. the question becomes whether or not this leads to a greater correction, this is to say a 10% or bigger pull back in the market and if that does happen, does the bull market trend stay intact? we've seen 10% pull backs in the market before but we've managed to rally higher since march of 2009. guys. >> dominic chu, thank you very much. jeff sonnenfeld, thanks to you as well. >> dom put it in perfect perspective, ty, the major averages are indeed moving lower. we were down 327 points. the dow seeing its third straight move, the s&p dropping more than 1.5%, the russell is down better than 2%. it's a messy day, the volume is picking up swell the momentum. fred algiers, c. there's more advice coming your way as well with the dow down 253 points.
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what a day it's turned out to be here. after yesterday's 270 some odd point gain, that one followed the day before's 270 some odd point decline, we have another 270-point move, this one negative. we were off about 320 some points just a few moments ago. the losses have retreated just a little bit. but our next guest is not intimidated by what he seize in the market right now.
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he's going full speed ahead into u.s. executives. a "power lunch" exclusive with dan chung who is with fred alger management. $21 billion under management. alger as many viewers will know, is almost synonymous with growth-oriented investing. make the case for growth stocks now in a market like this one with an economy that is moving nicely but that is not on fire, certainly. >> thanks, tyler. alger is synonymous with growth investing. we just turned 50 years old this year. i case now is as good as it was 50 years ago. we are always looking at innovating companies. these are companies that have the product and services, strategies that can grow. we think even in slow economies, particularly perhaps when economies are slowing. so you know, we have examples of that across our port foal toes
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and -- portfolios. >> you are known as the stock pickers. and the market action doesn't really get in the way or hinder you. i do have to get your thoughts about what you see in the broader market right now. then i want to get some of the smart investing ideas you have, some names. what's your thought on the overall market? >> yes. it's important for investors to take a step back and realize every year since the financial crisis we've had one and often several sell-offs in the market during the year. each time the market has come back quite strongly. for example, right now we're talking about -- i think we should see downside here. we're talking about, we think, a 4% or 5% correction from just the recent highs. we had similar action in each of the prior years, particularly in '11, for example, around the european crisis, that started there and last year around the beginning of tapering. we've seen these market moves
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before. they've been good buying opportunities for u.s. equities. >> let's talk about the sectors that you are focused on right now. biotech and health care, why -- which names? >> well, in particular health care overall. if you are really concerned about the economy, this is one of the least economically sensitive sectors there is. in particular, it's benefitting from the affordable care act which rolls out and covers more people in america is really offering opportunity for innovation across the sector. but in the biotech pharma space, we're excited about the development of new drugs coming out from gilead, biogen, cellgene, many that have been long in research. they've culminated efforts around the human genome. most of the companies are basically 20% growers, top and bottom line. right now they're trading at
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about 20 times next year's earnings. we think that's extremely reasonable for the high quality growth they represent. >> we have to leave it there. thank you for joining us, the ceo and cio, dan chung, with fred alger. we are seeing a big move into the metals markets today. the comex gold was up 20 bucks. the copper market is up as well, platinum, palladium, up across the board. the money is going into treasuries. also earlier, the u.s. dollar, let's talk to rick santelli at the cme. >> it's interesting, i'm not going to start at the ten-year yield. the 10s and 30s have a lot in common. let's start at the 30s. we had an average plus auction today. even though we're hovering at the lowest yield close since may
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of 2013, it's a sideways chart, all things considered. now go up the curve to a five-year, that same two-day chart, if you're talking about following the money trail, you want to be looking more at 5s than 10s and 30s. on the dollar index, well, you know, take a look at the hyg first, excuse me, about ready to make a new pass at lows we haven't seen since september. the lqe doesn't look like that. there's a discriminating credit trade going on underneath that shouldn't be going on. the dollar index, yes, it hasn't gotten back everything from yesterday but the phrase on the floor that everybody is using, the thumb on the scale has a half life of mayonnaise in the sun these day. "power lunch" executive coming up, rob kapito. we'll get his view and the company's take on triple digit losses on wall street, on bonds,
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welcome back to "power lunch" on this down day for the stock market. another triple digit move for the dow, this time to the downside as well. the dow has fallen as much as 335 points today. currently it's down 250. a good portion of the losses have been recovered. big oil, $85 a barrel for west texas intermediate. the major oil companies are lower today, followed by caterpillar, goldman sachs, johnson & johnson. those are the dow stocks leading the decloonines. it's moved 200 points up and down since the start of the month, down 367, up 425, down 436, up 344, down 316. it's been a volatile month and, again, sue, just to keep this in perspective, this day to the downside, again, just one of the six or seven days so far that we've seen this kind of a move. back over to you. >> that is the perfect chart to
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really put everything in perspective, dom, thank you so much. obviously a big down day on the markets. where does the world's biggest asset manager find opportunities amid all this volatility? in a "power lunch" exclusive, we've joined by rob kapito, president and founding member of blackrock with over $4.5 trillion in assets. welcome back. >> sue, good to have you. >> seeing what we're seeing in the market today, you were spot on on the market's performance last year, what are you telling clients today? some may be calling in wondering what to do, should they change their allocations? what are you telling them? >> i'm going to be the optimistic one. we're in a period of low interest rates. i know this quantitative easing that's playing place. i know there's a lot of regulatory complexity. we're telling our clients that you can't invest for the future in the future. you have to get invested today. and as i told you in the very
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beginning of the year, i still think there's opportunities in the bond market. and in fact, our total return fund that i talked about last time with you is up 6% this year. that's a pretty good return in the bond sector. and i think equities are going to be low single digits this year. i'm hoping to convince investors to get into the market because even though we're in this low interest rate cycle and you're seeing volatility in the equity markets, you've got to be in these markets to make a return. and you can't be sitting in cash. >> right. >> and expect to have enough for retirement. >> let's talk about the total return fund, especially in light of bill gross's departure from pimco. it does have -- it did have a market impact. we are seeing money from that total return -- from their total return fund go elsewhere. it's seeking another home. has blackrock and the total return fund you run been a
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beneficiary of that? >> well, of course. we've been seeing flows all year. the reason we've been seeing flows is because of performance and because of the team approach and the process we have. i couldn't be more proud of the team that we have. so flows have been coming in, both total return and our total return fund is in the top decile of performance. i told the team i'll have to create another category if they keep this up. in our strategic income opportunities fund which gives us more tools. we're in the top quartile. we are seeing more flows. we're telling our clients we are there for them to provide any solution that they need in the fixed income markets. >> rob, talk to me about the global growth scenario, because
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germany's data recently has just been terrible. there's a lot of talk that europe is either back in recession or about to lapse back into recession. how do you think that will impact the u.s. economy and more specifically the u.s. market? >> well, of course all the markets are related. but i've just traveled around the globe. i can tell you, there's a significant amount of investment that's coming into the united states. and that's because people are more bullish on the dollar. they're a bit negative on the yen. and also there are issues of growth in europe. so i still think there are good opportunities here. i think we'll have a 3% gdp growth. that's consistent. it's slow but it's moving. we're seeing better employment. we're seeing better investments by companies now for the future. the companies in the united states have been the beneficiary of low rates that have done a
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lot of financing. i think earnings are going to surprise everybody on the upside. so i'm very bullish in the future for money flowing into the united states. now, that's on top of the 10 trillion that's sitting in cash. >> exactly. >> that money at some point has got to be invested. i think it's going to create a great investment environment in the united states. >> well, as we mentioned you were spot on last year. we'll see what happens this year. good to see you, rob. thanks for spending time with us. >> thank you, sue. good luck. >> ty, up to you. >> let's talk to our contributors at the cme, jeff killburg, jim iuorio. what do you make of what mr. kapito just said, a great environment for investing in the united states. jeff, you first. >> it's hard to argue. he's the michael jordan of portfolio management, ty. he's alluded to the fed's balance sheet, the safety net will remain. i do like him but i'll tell you
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my education and take a run at his harvard education for one second. i think we'll see choppy markets. long term the u.s. stock market will grow substantially in 2015. there is tumult that's representing the vics right now. >> i think this is a fairly decent time to invest in the stock market for long term. i do, however, think we're about halfway through what's going to be a bit of a deep correction by the last couple of years standards. what he's saying is a much longer term picture. when we've seen the volatility we've seen in the last couple days, particularly when you add the strong market yesterday, in downward trending markets we tend to see wicked, take no prisoners type of rallies. that did nothing to convince me we're not in a downtrend still. >> we're tight on time today. appreciate you being with us. triple digit losses for stocks, are bonds the better bet right now? two of the top bond fund
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managers will join us next. there you see the dow industrials, all 30 are lowerso turned in by johnson & johnson, chevron, exxon, goldman, disney in the bottom ten. ♪ [ radio chatter ] ♪ [ male announcer ] andrew. rita. sandy. ♪ meet chris jackie joe. minor damage, or major disaster, when you need us most, we're there. state farm. we're a force of nature, too. ♪
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welcome back to "power lunch." i'm bertha coombs. it is throwback thursday for small caps. already down about 10% almost from their all-time high in july. take a look at the russell. today it is almost trading at the same level it was exactly one year ago. the russell had so much underperformed, the small caps 8% year to date compared to the nasdaq's year to date gains of 5%. biotechs are the biggest point of pain, the biggest decliners. even the big caps are getting taken down as the mood seems to be more bearish.
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semiconductor chips getting hit hard in the decline. a few stocks holding out. it's been two or three stocks that have stayed positive. apple for one with the carl icahn news. also sigma aldridge today, green mountain coffee hitting a new high and costco has been in and out of positive territory today. but it, guys, is at historic highs today on a down day. back to you. >> bertha, thank you very much. on a day of triple digit losses for stocks, are bonds the better bet right now? we have two of the top bond fund managers here to give us their picks. laird landman and from columbus, ohio, doug swanson who manages jp morgan's $25 billion core bond fund. welcome, gentlemen, to both of you. laird, let me start by asking you, are bonds a good buy now? and if so, where in the whole panply of bonds?
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>> we're caution on the bond market. even today's action, this move down in rates is largely down in our opinion. sure it could go another ten basis points but you've got to worry that the welcome-term trend will be the higher rates. that's what the federal reserve is telling us. when you look at other segments in the credit, credit tends to be expensive right now. we're a disciplined value manager, a team approach. we've been basically cycling out of these risky sectors. >> doug, do you agree with what laird just said? we've seen volatility in the ten-year, certainly, it's 2.33 today. a week or so ago it was 2.6. it's been yo-yoing quite a bit. >> i think we are going to stay in this kind of a trading range for the near term. to get a more significant rally from here, i think you'd have to see something bad happen, maybe what's going on in stocks, something like that would have to continue.
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but it's been more of a trading range for the last six months. we think that's what will continue. >> what's the sweet spot for you right now, doug? >> on the mortgage-backed side, the fed is buying traditional pass-throughs. but there's been a lot of issuance by fannie mae and freddie mac in the multifamily space. that's what's lagged in the past. that's more of an eight to ten-year value life. >> laird, how about you? i take your point that you're being cautious and you see the bond market as a place for caution right now. there must be things you're out there interest in. >> the big picture is keep systemic risk low. there are pockets of value that still exist. the technicals s are marvelous. supply and demand, economics works very well there. we're beginning to see a big
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selling of some of the tips in the 20 and 30-year sector. that's obviously coming out of a well-known place. that will create cheapness for investment opportunities. >> i have to ask you the question. something happened at the end of last month, a guy named gross, the lebron of bonds, he moved. doug, have you been seeing any knock-on effects of that? are you getting more calls? are you seeing more inflows? what if anything? >> we have definitely been seeing inflows. we're continuing to manage the portfolio like we have been. and you know, it's also created some value in the secondary market. where there's been selling and we're finding some bonds that have value. >> to pick up, as they sell, as their redemptions, how about you, larry? >> as our heritage goes back to pimco, the founders all came from there. i think we've seen a lot of fall activity. we got our sector specialist together as we're a team. we made sure to prepare with the
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flows we're seeing. the flows remain pro-found. we're positioned to take that money in. we're not going to change our style of managing money. we're basically just -- we've always managed the firm for growth and we're prepared for that growth. >> laird, thank you very much. nice to see you. >> thank you. >> doug swanson, thank you as well, from jp morgan. >> thank you. >> sue, down to you. let's check the markets. ben willis a few minutes ago, i said what is it going to look like into the close? he thinks it will be difficult. the dow 260 down, the nasdaq down 64, russell 2000 down 2% or 20 points. the market coverage continues with the yield on the ten-year yield at 2.3%. back in a moment. we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities
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downside, leading to the market losses. the s&p off by 33 points. >> more now, dom, on the markets. with this on post nine here is bob pisani, kenny as well as another guest. both of you said the close has the potential to look ugly. ben, you first. >> buy the dip, sell the rip. professional traders will be doing this. what investors are doing is an entirely different story to watch. for the close, i think you'll see professional traders take a long position. >> what about you, ken? >> it will push to the lows on the day and i think you'll find not only professional trader types but more institutional support down there. like i said to you the last couple of days, it feels like it wants a 200-day moving average test. that's where it's going to go. >> bob? >> we've had the slowing growth colliding with the debate on
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when the fed will raise interest rates. we have awful german economic data combining with generalized concerns about ebola. there's worries about how effective the containment will be. let's face it. that's out there as well. we have draghi complaining, there's no real change unless we get reform in europe. the market drooped at 1140 when that came out. >> was yesterday the aberration? >> yes. yes. i said it yesterday to you. i think that the move yesterday was up dramatically on not a whole lot of volume. you could feel there was no real commitment behind it. and so once again, i think that what we're seeing today is exactly that, people -- we're kind of sideswiped by what happened yesterday and the trend is lower and the test has to be at the 200 day. >> buyers and sellers, i don't think was an aberration. i think what you saw was an effect of the dance going on with the central banks throughout the world. it would prove the united states is willing to continue to dance
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with draghi. even though today he proved once again that he's the people e emh no close. >> if you want to go see what's on in the world, you need to look at 9 currency markets. the volatility and the way the dollar -- the dollar's trajectory is an exact inverse relation to what's been going on in the russell 2000. it's all about the dollar and the currencies in the market. that's why we had the reaction yesterday that our own fed was willing to let our dollar weaken a little bit. >> right. >> to allow the eurozone to catch up. >> we are dramatically oversold in the energy market. some are down 20% in a week. lech to the xop today, it's due for some kind of -- >> we have direct relationship to the dollar and the effect on the commodity itself. >> thank you guys, appreciate it. >> dancing with the naked emperor. i'm taking that thought with me. that will do it for "power lunch."
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let's see what's coming up on "street signs." >> we're following the markets very closely. the loss is pronounced in the energy patch. who better to have on than boone pickens? he'll give us his take. greenberg is joining us with the theory that may be -- lots of things coming up on the show. make sure you join us, top of the hour. ♪"in the hall of the mountain king"♪ [beeping on the computer] peter come take a look at this. [beeping sounds are more rapid] [beeping sounds are even faster] mr. daniels? mr. daniels? look at this.
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here yesterday, gone today. stocks and oil are both tanking, beyond yields staying incredibly low. this is an incredible reversal from yesterday. >> it is. let's take a closer look at what is going on, stocks have retraced some of their losses. we are off the lows of the day. we're down sharply around two-month lows. when was the last time we saw this level of volatility? this is the third straight 200 plus-point move on the dow. that has not happened in over three years. with global growth fees at the fore, bonds are rallying, gold reaching a two-week high. the s&p energy index behind me down 3%, down 14% from the record high in june. well and truly correction
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