tv Street Signs CNBC October 24, 2014 2:00pm-3:01pm EDT
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holding on to the green right now. so we will see whether or not it holds on to its advances going into the weekend. by the way, have a good one. >> you, too, sue. that will do it for this edition of "power lunch." >> "street signs" begins right now. and welcome to "street signs." today we are giving you a forecast for your money. ahead this hour we will tell you about the dark cloud and the rays of sunshine cast over this market and what it all means to your investments. i also have the dynamic duo of john fortt and robert frank along with me. great to have you with us. great to have you john to talk about amazon earnings and you here talking about billionaires. we will be talking about the
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fight against ebola. >> good looking show today. >> and we have a reverse oreo thing going on. this is great. >> okay. moving straight along. let's talk about the markets. stocks looking to finish another wild week. looking ahead, there are three dark clouds that could rain on the parade. first a new case of ebola, this time in america's biggest city, new york. second, fears from abroad with europe and brazil in focus. and third this week's shooting in canada renewing terrorism fears here and abroad. we will dig in on each of these and find out what it means for you. let's start with the first ebola patient in new york city. meg terrell is live outside bellevue hospital in new york. what new news do you have? >> reporter: we just heard from the cdc that it has confirmed the diagnosis of the patient here, dr. spencer. the cdc says that three members of its ebola response team arrived in new york last night
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and more are expected to arrive today. we just got off a news conference with health officials here in new york saying that dr. spencer is in stable condition and is talking on a cell phone. we know that a cleaning crew has arrived at his apartment in harlem. his fiance is in quarantine and two friends have been served with orders. they will be isolated and monitored for 21 days, taking their own temperature once a day and having health officials take their temperature once a day. they are all well right now. it is important to say. mayor deblasio is emphasizing that new york is prepared to handle this. >> looking at the juxtaposition of what happened in dallas versus here i have a lot of respect for our colleagues in dallas dealing with the crisis much earlier and without as much information as we now benefit from. it is an entirely different situation when you are prepared. i think we are in a position to constantly monitor any individuals that may be a question mark that is changing this profoundly.
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>> reporter: mayor deblasio is emphasizing ebola does not spread like the flu saying there is little risk to new yorkers. ebola spreads by contact with bodily fluids. health officials have been retracing dr. spencer's steps until he became feverish yesterday. they know he went bowling at the gutter in brooklyn. that has been assessed and cleared to reopen. they also know that he went to the blue bottle coffee stand on highland park. they know he visited the meat ball shop on greenwich avenue. that is temporarily closed and is expected to reopen later today. we know he road the subway. this is all before he became feverish. health officials stressing when people are not -- saying the subway is safe to ride and health officials agree there is no risk to subway customers or
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employees. >> a quick question on the world health organization which i understand may have some doses of an experimental vaccine maybe even millions of doses of a vaccine by the end of next year. how much more do we know? >> that's right. we know that glaks osmith among others are accelerating efforts to get the vaccines ready. i apologize for the ambulance. we are outside the hospital -- are in the lead to develop the vaccines -- sorry about that -- should have them ready for testing early next year. >> thank you very much. you are outside a hospital. these things happen. thank you so much. >> there has been really big money behind the ebola fight. zuckerburg with 25 million and now paul allen. >> bill gates giving $50 million. this is big news.
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important when you talk about money being committed to fighting the disease. paul allen contributing $100 million and set up a website called tackle ebola. he is saying join me in helping those responding to this. some people say this may be a little bit too late. there hasn't been as much given to fighting this as there was the tsunami in japan. you look at the earthquake in haiti. the question is why? why haven't people responded as quickly? maybe this is sort of a slow moving crisis as opposed to something sudden. it is hard to figure out what to give the money to. paul allen's money is going to the state department and other causes. bill gates' money some going to the cdc. >> where is the most effective place to put your money? sometimes you might give it to an organization but you are not sure it is going exactly to fight the cause the way you want it. >> with this disease it is particularly difficult because you have these governments involved. do you just go to beds and gowns
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and gloves and the equipment on the ground? so there is a lot of confusion about what to fund and that is holding up the money. what paul allen has done is try to open up the flood gates and say this is a huge catastrophe that could get really bad, give money now. so he is taking the lead. >> he said it really resonated with him to do this fight. we will get back to you. we have dark cloud number two in the market, fears from abroad. european banks facing a big stress test this weekend. let's bring in international correspondent. how much credibility do they have? >> this should have more than the last few. the last couple of times they did the stress test within weeks or months banks failed. the transparency is tremendous. sunday morning i know at 7:00 a.m. you will log into your european banking authority site and look at the millions of pieces of data that they will
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throw at you so you can see the depth of what is the capital standing for all of the banks in europe. they don't come out until sunday. reuters has gotten a leak which suggests 25 banks originally failed and a lot have raised capital since then. ten more have to raise capital in some of the weakest economies. i don't think we will really know until everybody can get into the data on sunday and take a look and feel that they were rigorous enough. how are they marking assets? there is a lot of stuff sitting on european books for years now that they are marking at full price that a lot of people believe should be marked down. are they going to get around to doing that which would free up capital. the goal is for the banks to lend money again. >> is good news if we get a decent number of banks failing? but just the banks in the places where you expect them to fail? >> the leaks so far suggests we are not going to see anything big out of italy and spain and france. and so i think there will be
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critics who say how is that possible? >> if that turns out to be the case we have to see what the situation is on sunday. it is possible that can be a response. >> thank you very much. final dark cloud, renewed terrorism fears after that shooting in canada wednesday. let's get insight with someone, the voice of reason from canadian businesses. the former deputy prime minister of canada. great to have you with us. you were also responsible, i believe, for canada's response to the 9/11 attacks. you have quite a lot of experience. on wednesday this was an act of terror. is it misplaced to lump this into the general narrative of terrorism and the question of whether or not we are safe? >> i think it really is.
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what we saw 9/11, of course, was 19 perpetrators executing a carefully prepared plan of action that saw them hijack four aircraft simultaneously. that took a lot of planning and executed flawlessly. here in canada we have two incidents, both cases very tragically resulting in the death of a uniform service person in canada. one of them was spectacular because the perpetrator ran from our war memorial into parliament buildings. you can see the door he entered behind me in the shot. it was spectacular but the more we learn about the individuals involved, the more they sound like they were solo people, probably with some serious addiction and mental health issues on top of anything else that might have been troubling them. >> for me that is the question. clearly this is tragic whenever it happens, whenever there is a
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loss of life. in this case is it terrorism, per se? is it someone who had an imbalance issue who latched on to radical islam as kind of a cause and reason? in a way does that make it if it is just one person and relatively isolated, a bit more comforting than if it were a group of people who we learn had been radicalized through some system? >> having been through this post 9/11 i don't think you can call it comforting. but i don't find it as alarming as i did with the coordinated attacks on that date. what is concerning, of course, is that there is a repeating pattern of young people, mostly western born and educated who have becomeredicalized in some fashion through exposure of radical islamic elements. that is not exactly what we saw this week. we saw an incident which neither
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speaks of this being a generalized problem nor does it indicate a lack of security. when you think about it, we have open institutions. you can see the door of parliament behind me. when he burst through that door and ran up the steps into the main hall of our parliament, 14 seconds later he was dead. >> to that point this has sparked a huge debate over canadian openness and ability to bring in people from around the world, the lack of guns and lack of heavy security. couldn't you have put a swipe badge, a security gate on that door and other doors? aren't there concrete things you can do in canada that don't change the openness but make it safer? >> i think there are. i think that generally speaking people who are not -- who do not have passes to enter the building go through another entrance and this was a case of
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somebody that just took advantage of the element of surprise to race in. yes, there are other technologies that could be used. but i don't think that what we see here is an overall lack of security. it could probably be better implemented, might have prevented one security officer from suffering an injury due to a gunshot wound. the shooting at the war memorial there was really nothing you could do about that as you can't really prevent these things from happening in schools or shopping malls or other public places. i think it is important to maintain perspective on what is happening. >> indeed, it is. we should maybe focus more on mental health as well as terror. thank you for joining us. we just talked about some of the potential dark clouds hanging over the market. we like good news on this show. up next three big bright spots for your money. we will tell you where to find them when "street signs" returns. being a keen observer of the world has gotten you far,
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and torlakson's plan calls for more parental involvement. spending decisions about our education dollars should be made by parents and teachers, not by politicians. tell tom torlakson to keep fighting for a plan that invests in our public schools. welcome back to "street signs." we laid out the dark clouds hovering over the market. now it is time to spread sunshine. first lower energy costs. second, good news on the housing affordability front. we will dig in on each of them.
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let's talk about lower oil and gas prices and bring in jackie. >> reporter: what a week it has been. more pressure on oil prices. we saw crude oil hitting interday low of 80.36. it is relaying a little. a couple of factors that traders are citing first is ebola. they are worried about demand for oil if consumers don't want to travel and spend and contribute to the economy. we have the relatively strong dollar. and you do have a supply glut out there. the perfect storm to send the prices lower. in addition a report from the eia talking about potentially lifting the ban on crude exports saying it wouldn't impact oil prices and wouldn't raise gasoline prices. traders are telling me that is hogwash. if you have cheaper cruden market all the buyers are going to flock to the cheaper crude. those prices will rise and then the gasoline prices will rise, as well.
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speaking of gasoline, that has been a bright spot for consumers. aaa is saying we will see gas prices potentially dip below $3 a gallon in terms of national average. half of u.s. stations selling under that level right now. that is where consumers are saving money and that helps the economy. >> moving up to the holiday shopping season. >> newest home sales rising to a six year high in september. what does this mean for home buyers and sellers. >> i get to talk about prices in a good way. the home builders raising price cost for land, labor and materials that were higher. they figured there was so little supply that they could command a higher price. that hurt them. ceos of the major builders admitted that. in the september report on new home sales this morning the median price of a home sold was
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down 4% from a year ago. that is the first big annual drop. this is a median which could mean more lower priced homes are selling. we know builders are focused on higher end homes so prices may be coming down for new construction. we know the price gains are easing on existing homes which are by far a larger share of the market. cheaper existing homes will force the builders to get more competitive even though you pay a premium for new. so there is your bright spot. >> what is interesting to me when i look at high end markets in miami, california and new york, the inventory story has been so fast, the rise in inventory. in miami you have a 50% jump in inventory particularly at the high end. that has hurt prices. what do you see going forward in the pipeline? is there more inventory coming online and therefore more price pressure both at the top and the middle? >> i think more in the middle. miami is a tough market because
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there is so much foreign investment and so many condominiums being built to fuel the foreign investor. when you look at the rest of the nation you are seeing more inventory come on eechben though we are getting into the slower season because home prices rose which brought people up from under water which allows those who wanted to sell their homes last year or the year before finally they are above water and they can. the question is how much is that new inventory going to put pressure on prices? so that remains to be seen because we are heading into the slow part of the housing market. >> thank you so much. our final bright spot is the market itself. s&p and nasdaq on track for their best week this year. big money guys have come out giving stocks even more of a green light. let's bring in dominic chu. >> there are folks who don't want to put into the market. some think with the recent
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pullback we are seeing opportunities. let's start with the mutual fund. that is mario on just this week on squawk box talking about what he sees. he says s&p around that 1,927 level is a reasonable place to kind of pick your place and start buying stocks. if you have a shopping list maybe this pullback can give you a big enough discount to want to dip your toesn market. another is from the hedgefund side. we are talking about david einhorn. he said this past week in the last couple of weeks we have been able to pick up a bunch of things we are pretty excited about. he makes pretty positive comments, if you are a stock picker there are the bears out there but a couple of big bulls on our air saying this is the time to buy the stocks in the market. >> in a world in which we all learn from warren buffett, does
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this actually give you pause in that perhaps we won't get the correction that we need? because everyone is so trained to just buy on the dips? >> that is the way it has been. you can argue since march of 2009. the last significant correction we had near 20% was back in 2011, april to october of 2011. since then people have pretty much bought every single dip. this went a little deeper than the average. most go 4% to 5%. this one was more along the 7%, maybe getting towards the 8%, 9% range. people did step in and buy. the question becomes whether or not the money on the sidelines is still feeling good enough about the economy to weigh in. it is getting towards year end. historically speaking this is a strong on average time of the market, not to be a cheerleader but over the past santa claus has brought a rally. >> start coming out of the dodgy part of the year and moving into a stronger part of the year if history serves us well.
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we are up by triple digits here on the dow at 16,781. it's the best week for the dow since april. it gets better for the nasdaq and s&p. the best week for the nasdaq composite since december of 2011. for the s&p 500 it is best since start of 2013. so we have a lot of green on the screen. the question is, today is friday, next week is a new week. how do you play the good news and the bad news? lots of headlines that are conflicting and impacting the markets in different directions. let's bring in steve from web bush equity managers. great to have you both with us. steve, you have been pointed the three es, ebola, europe and extremism. you believe one of them counts for our markets here in the united states. >> that's europe. and that's because it is an economic impact.
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i think ebola as scary as it is will ultimately be controlled by western health care organizations. extremism is something we have been living with since 9/11. it is also a scary thing. in terms of impact on the stock market i think it is limited. the poor economy in europe coupled with the poor economy in asia is quite troubling and something that could impact corporate profitability in america. that is great concern to me. i think that is part of -- >> when will it start to show up? europe has been struggling for a while and hasn't shown up to a significant degree yet. >> well, i agree with that and i think that the 8% decline we saw in the s&p just prior to earnings season, this last correction i think we had was prompted by earning concerns coming out of the weak economy in europe and asia. this is something the market was concerned about. now that earnings are rolling they are quite good i agree.
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i think the concerns will resurrect again as we get future earnings reports. of all issues discussed i think europe is the one to focus on. >> as we look into next weekend and into the end of the year, what is the story in your ahead as you look at what to invest in and where to put your money to work? >> i think it is very positive story. on october 14 we wanted to show our clients, we had conviction in this market and we raised our year end s&p 500 target to 2,050 to 2,100. i think the down side was overdone. people are panicky. there is a lot going on out there. i would agree with steve. for me i look at probabilities. ebola, terrorism. those things are around. i think there is a very low probability of either having an effect on the market. it is global growth that spooked and triggered the market and
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triggered this sell off here. if you are not expecting much out of europe the market is worried about what will happen going forward. and the work we are doing and the work our international team are doing says that is going to stabilize and get a little bit better in 2015. that is what we are counting on. here in the states next year we will probably see 2.8% gdp growth. that is better than this year and modest. i think it is dependable. the world knows that. we are the lead sled dog and i don't think that is going to change. >> when you look at what is really going to drive this market higher not so much why we shouldn't worry so much about negatives but what are the positives to power the market, when you are talking about 2.8% growth that is not that inspiring. corporate earnings have not been that great. a lot of misses. what are the positives that this market will aim for to take us higher? >> here is what you have to keep
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in mind. we are in this modest growth, modest inflation environment. you cannot expect a surge in the market. you will see 6% or 8% earnings growth this year, 6% or 8% next year. what will drive the market higher is valuations and people being under invested and retail investors sitting on too much cash and really the fundamentals continuing to chug along without much of a stumble here in the u.s. and we will see international improvement. we have had valuations on our side for almost all of the last five years. this pullback continued to show that valuations are on our side. and to be honest with you to get the numbers we are looking at which is the mid point of our range of 2,200 in the s&p by the end of 2015 we are not making some outrageous economic acceleration call. we are not looking for a big pe expansion. we are talking about being slow, steady, moving forward in the right direction.
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that level in the s&p 500 15 months from now does not require anything spectacular. >> steve big meeting next week. any risks that janet yellen might ruffle a few feathers for the markets? >> i guess we can argue about considerable time, whether that gets pulled out of the statement or not. janet yellen is not going to raise interest rates. the dollar is already way too strong. they have to be concerned about that. we have no inflation data that shows any kind of problem. we still have significant under employment in the nation. i think interest rates stay where they are at for a very long time. i wouldn't be worried about the fed. >> good to have you on the show. enjoy your weekend. coming up next, amazon is deep in the red today. john, i know you are all over the story. we are going to talk all about it. amazon when "street signs" returns.
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built for business. good afternoon. police have locked down a high school in marysville, washington, washington state after reports of a shooting there. the high school is being evacuated. seattle times reporting that a gunman has died of a self-inflicted gun shot wound and that as many as six others are reported injured at this time. this is at the marysville high school about 30 miles north of seattle where a shooting apparently broke out about 45 minutes ago. 10:45 local time, 1:45 or thereabouts eastern time. that high school on lockdown amid reports of gun fire inside. again, seattle times reporting that a gunman has died of a
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self-inflicted gunshot wound and as many as six others have been injured there. we will continue to monitor this story for you about a washington state school shooting. "street signs" continues after this. [ male announcer ] your love for trading never stops. 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. ♪
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welcome back to "talking numbers." let's talk buybacks. pfizer shares moving higher after announcing a stock buyback program. is that the best use of cash or would they be better off spending the money on developing a new drug? let's start with todd gordon of trading analysis.com on the technicals and ted berkeley on the fundamentals. andy, do you think they should be buying more stock or developing more drugs? >> i definitely think they should be looking for drugs as opposed to buying back stock. pfizer has had relentless downward. even with big buybacks and the ones now it is not doing a whole
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lot. so there has been some potentially mergers or acquisition talk this year that have gone by the way side largely due to emerging rule. even outside the buyback i would argue a dividend would be use of the cash to make it a more attractive yield play. pfizer doesn't do a lot for me and the buyback really prolongs the story of no growth and just lackluster opportunity. >> pfizer not doing a lot for you. the charts doing anything for you? >> they are. technically speaking the chart looks very good. pfizer has broken above the precredit crisis highs. we are using the $28.5 level as a shell. it is holding support. if we go to the next chart and take a look at the recovery sense those credit crisis lows you see a nice upward trending
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channel. within the channel you have seen three major pullbacks. each is about $5 to $6. first in 2010, 2011 and here we are again holding the magical pullback number. it is our pattern and structure. they are not random. i like the stock above $28. any weakness i would like to buy. >> pfizer is down about 5.6% year to date. within the sector, andy, are there other drug makers and pharmaceuticals you would prefer? >> two other bigger ones look more attractive is j&j or bristol-myers. both of those have growth prospects and the analystvise been raising numbers. we like health care just pfizer is not one that we like. >> andy and also todd thank you very much for joining us on "talking numbers." you can check out the online edition of "talking numbers." let's talk amazon really getting hit hard today.
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heavy volume for the stock tracking for the worst day since july 25 which i understand was after earnings. what is the story here? is the love affair with amazon finally come to an end? >> many people have made the mistake of calling the end of amazon love too early. here is what i think is interesting about what is going on with the company right now. they made aggressive investments in building out in europe and also in hardware, phones and tablets and i think that happened at the same time that media and europe sales haven't been showing up. media sales were disappointing which perhaps says something about why they want to lower e book prices to increase volume and also europe hasn't been panning out. i think the sales number, the growth number around 13% which is the lowest it had been since i had been tracking it. so calls into question the amazon thesis of we can give
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away free shipping and hardware to drive sales and always kind of work out for us. you have to ask what happens if something on the macrohappens and growth slows in europe? they can't stop the buildout. >> i think you were mentioning about the possibility for activism here. i know mckwaury put out a note saying if the shares keep dropping we could end up in a situation where we are going to start to see agitation. what do you think on that part? >> i think they have to drop pretty far. i look at jeff bezos has roughly 20% of the shares. doesn't have super voting control. look at larry elson under pressure and has been able to make moves to stay in control. steve jobs when he came back to apple had very little stock at all. he was able to structure the board the way he wanted to. when he came under pressure he was able to duck it.
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he is an enormous personality and a founder. it is going to be hard to take him down. who do you put in his place? >> he has lost $2 billion in this recent drought. we shouldn't feel sorry for him. >> he still has 27 -- down to his last $27 billion. it feels like a company that is dominated maybe even a dictatorship by one guy. yet he doesn't have the supervoting. he only has 18%. it feels vulnerable to me given that ownership. >> i ink the many of the things that amazon has done one could argue pretty much everything they have ever done investors would not have gone for. expanding beyond books and even doing books in the first place, doing the cloud. doing hardware. we don't have numbers on the kindle tablet. they seem to be doing okay. >> and the $93 million worth of inventory in the phones. >> maybe they cut their losses.
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i wouldn't be surprised to see them do that. without jeff bezos this is just ebay, market place. >> okay. >> we are going to leave it there. thank you so much for that. this earnings season is proving something that we probably already knew but the big money in tech is in mobile. josh lipton joins us to explain what companies are doing to cash in on the space. >> reporter: mandy, mobile is driving big tech more than ever. we saw that in the results this week. you start with apple, told us they shipped nearly 40 million iphones in the most recent quarter. ceo tim cook telling me demand for new iphones is in his words off the charts. cook was in china where there is supposed to be a big demand for the iphone 6 plus which could be another catalyst for the stock. the biggest surprise probably from yahoo which is gaining traction. ceo marissa myers saying that
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business will generate gross revenue of $1 billion for the full year. not all the news was so good. i heard you guys talking about amazon and took the charge of $170 million for the fire phone. there are some analysts who think that phone still makes sense. they point out that consumers who have an amazon device like a kindle spend more on amazon.com than those who don't. microsoft hardware sales better than expected. phones, tablets, financial analysts quick to point out that those don't carry the same margins. that is why investors don't get as excited. bottom line, mobile technology radekal radcally reshaping. >> i will take it because mobile is a cruel mistress. take a look at samsung near the lows of the year. pandora taking a hit. they are a mobile company. king with candy crush which was
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their big mobile game, they are down more in the past three months than any tech company i track. i wonder, what do you think separates the ones who are benefitting from mobile from the ones who aren't? >> reporter: well, in some sense there is a lot of different subindustries you are mentioning there. for samsung, for example, they're feeling the pinch because they are getting hit by apple on the high end and chinese carriers on the low end. i think it depends where on the market you are trying to capitalize. >> absolutely, josh. >> mistress, that is a good one. >> i apologize for my accent, mobile, mobile, potato, potato. >> i love the fact that you try to understand my strange english. for more on how companies are innovating in cloud, social, mobile and data you can check out cnbc.com/tech drivers for more. ford taking a huge gamble by
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making changes to the popular f-150. we will tell you what the company had to say about the upcoming launch of the new version. stay with us here on "street signs." in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, 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 and see them through, we say: let's get to work. because the future belongs to those who challenge the present. opinions. there's no shortage in this world. who do you trust? whose analysis is accurate? how do you make sense of it all? a simple, unbiased stock score consolidated from the opinions of independent analysts... is that too much to ask?
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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.
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strong end of the work day. the dow holding with triple digit gains. let's do something we do every day. street call. today, of course, jon fortt, robert frank. jon? >> first stock on the friday, old national bank corp. with an upgrade. a midwest bellweather. >> that's right. analysts upgrading to buy. yesterday's announced share repurchase cham is a reason and improving economy in south central michigan and indiana. target remains at 15 bucks. currently at 12.88.
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>> downgrade of abercrombie & fitch. the pace of recovery and revenue slower than expected. target cut. >> yeah. also worth noting that goldman sachs cut them to sell from neutral today, as well. the stock is really significantly lower. down by about 6%. over the past year down by 13%. >> all right. >> hot models, though. >> really hot models. standing out there rain, hail. >> hate those guys. hate those guys. >> storming and snowy an they're standing there looking all buff. >> not working for them all the time. pandora, a downgrade earlier today and the stock not taking it so well. >> pretty heavy volume to the downside here. cut to neutral of positive. the firm is noting user growth concerns and also content cost questions. target cut to 21 bucks from 29. currently down by 14%. >> all right. on tobacco, lorillard.
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>> any of newport getting an upgrade to market perform from underperform. target increased. don't forget earlier this year competitor reynolds america agreed to merge. i believe the deal is still under review by the ftc. >> smoking stock action though. >> i was about to. i didn't. >> but i did. stock pick, nps pharmaceuticals. mandy? >> under the radar name. nps pharmaceuticals down 6.6%. new jersey based company. the company announced yesterday that the fda extended the review date for its hormone replacement therapy and the target cut to 32 bucks from 40. okay. let's move on because ford
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reporting the results today. introducing the new f-150 pickup truck, however, the actual numbers less important than what the automaker said about the upcoming launch. let's bring in phil lebeau. what do you know? >> i have a number of e-mails of people saying, shouldn't the stock have responded better and did not respond well today. well, yes, it did beat the street. ford warned wall street that it was going to be making less money in the third quarter so when it came in earning 24 cents a share, beat the estimate of 19 cents and everybody saying that's not really what the focus is. automotive revenue light of estimates of $32.1 billion. but the real focus, it has been the f-series and look at the third quarter and say it's a drag on what happened for the company in the third quarter. why? well, you take a look at north america profits down $886 million in part because sales or the volume from the company,
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number of vehicles sold, it was down 60,000 and that's because the f-series plant, the dearborn truck plant shut down for five weeks, final five weeks of the quarter. it's an all new f-series going on sale later this year and a departure. it's an all-aluminum alloy body on this or the panels all aluminum alloy body. better mileage expected because it's lighter, weighing 700 pounds lighter and production started in dearborn and in show rooms by the end of the year. ford cfo said despite the concerns, they're optimistic that they have the truck right and will hit the market and do well. >> we've launched the vehicle in terms of mass production and we're starting to go up that acceleration curve so everything looking good and tremendously excited to get that product out to customers before the end of the quarter. >> so, the real question is, when you look at shares of ford
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and they have been under pressure over the last three months, will the new aluminum f-series help them rebuild their profits? keep this in mind, mandy. they make on average $8,000 to $10,000 every f-series they sell and if it's a hit, they make at least that per f-series they sell and will it deliver on those expectations? >> the stakes and expectations are very high. thank you very much, phil. it's time for a friday look into the future and into the crystal balls or one week's worth. we're going to be telling you what we're watching ourselves next week. don't go away. huh? the equipment tracking system will get you to the loading dock. ♪ there should be a truck leaving now. i got it. now jump off the bridge. what? in 3...2...1... are you kidding me? go. right on time. right now, over 20,000 trains are running reliably.
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we call that predictable. thrillingly predictable. means keeping seven billion ctransactions flowing.g, and when weather hits, it's data mayhem. but airlines running hp end-to-end solutions are always calm during a storm. so if your business deals with the unexpected, hp big data and cloud solutions make sure you always know what's coming - and are ready for it. make it matter.
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make the world predictable. thrillingly predictable. let's look ahead to the next week and big things we're watching for. start with you, robert. >> you know, cnbc we talk about the stock market a lot. i look at the art market a lot as a barometer of that whole world of collectibles. next week we get a sneak peek at the art that's going to come up for sale in early november. more than $2 billion worth. there's a sculpture to sell in early november for around $100 million. it's called chariot. >> wow. >> could sell for up to or more than $100 million. this could be the biggest test for this market in years because there's so much sort of not great stuff coming on the market at very big prices.
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will they pay for it? >> that would look great in my living room. >> looks like a thing on the desk that swings back and forth. >> is it this big? what about you? >> social media week, mandy. >> yeah. >> twitter earnings on monday. facebook on tuesday. linkedin on thursday. facebook is the one to watch, especially the bullishness or lack thereof around projections of q4. >> for me, the october fmoc meeting. shameless plug. we are the fed show and we will have it for you live on the show. fed decision 2:00 p.m. eastern and expected to be the wrap-up of qe and an indication of delay to the end, prolonging, that may send a negative signal to the markets that the economy is not standing on its own two feet here. >> as exciting as the sunday morning stress test in europe? >> 6:00 a.m. >> that's the question! >> and also, we want some guidance on the period between the end of qe and the start of
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any short-term interest rate hikes and key and the wording around that, as well. >> robert, i have a 3 and 6-year-old and every sunday morning is a stress test for me. >> touche. thank you so much. great having you on our show. come again sometime. stop by. okay. "closing bell" coming up next. have a great weekend. welcome to "the closing bell." i'm kelly evans here at new york stock exchange. >> i'm simon. there's a lot of green on the board. let's take a check of where we are. the dow off 110. this is really a tran -- we have an hour to go. this is a transformational week of people invested in the stock market. the s&p for the week up the best part of 4%. there as we run
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