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tv   Street Signs  CNBC  October 28, 2014 2:00pm-3:01pm EDT

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percentage gain of just about 1.25% for the nasdaq. a number of bio tech stocks leading the way. dow jones industrial up about 0.5%. russell 2000 up better than 2%. >> that will do it for "power lunch." >> "street signs" starts now. they call that a quick tease. you have stocks up, confidence up, jobs up, housing up, the dollar up. let's just try not to screw it up. the only down thing lately is oil. >> you are absolutely right. good news america. pump prices continue to fall. aaa says the average price for a gallon of unleaded fuel is now at $3.03, down a penny from yesterday and down a full 31 cents from a month ago. gasoline prices have not been this low since december 25,
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christmas day, of 2010. it could get even better if our friend is correct the national average could be $3 even by halloween which, of course, is this friday. we will have to wait and see if we get there. that is more money in everybody's pockets which hopefully they can spend on holiday. >> two quick things. i would pay $2.63 in new jersey. mandy, let me be the first to wish you a merry christmas. >> 57 days away. i better get out my shopping. luckily i only use a scooter so i don't have to fill up my scooter at the pump. we are watching the falling price of oil. we are going to be speaking about the politics behind what is going on with the falling prices and whether or not it can keep on falling. >> one of my best friends is named scooter but i assume that is not what you mean. don't use him although he wouldn't mind. our next guest says not everybody is celebrating over the falling price of oil.
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joining us now head of north american commodities research. how wild has this been for you and your team? how much have you had to readjust your feelings about the oil sector? >> you look at june. prices were 115. we looked like the risk might be to the upside if you look at the situation in iraq. now with the prices in the 80s there is a lot of pain for producers because this is an unanticipated price decline. >> you can't say one price will hurt everybody because there are so many different costs of productions. $16 anywhere up to 80 for the newer producers. but try to aggregate it for us. what percentage of the u.s. companies, shale, midland, whatever, can survive at $80 and maybe at $70? >> i think it depends on which play we are talking about. you have plays in at the 50s.
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and then you get into the 80s for some of the north dakota plays. it is a range. what i am focused on is a question of how long we will be in the price environment. it could take 18 to 24 months to put these plays out of business. and the question is saudi arabia going to come into the market sometime in the next couple of months to defend that floor. i think that is a big question. >> it is a big question. there is all kinds of speculation out there. maybe you can put some of that speculation to bed. some speculate the saudis are cluting to squeeze putin. others saying they are liking to squeeze the u.s. shale players. >> i think the saudis are caught off guard. i think they thought libya would stay off the market. i think they thought there would be problems in iraq. i don't think they thought we would be in the 80s. they are scrambling. i don't think they can balance the budget in a $80 price
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environment. if we get into the winter and don't see a seasonable demand pickup saudi will have to come into the market. >> generally the common wisdom is that lower prices are bad for the u.s. shale companies. is there any other flip side to that? i know the market is reacting as if there are. is there any way lower prices because of the way saudi arabia might react that could be good for the shale companies? >> it is good for u.s. consumers. that is where you see the benefit. >> what about the companies themselves? if they decide they will produce more because saudi arabia tries to ratchet up prices to make up for the gap you referenced. we start to permanently wean ourselves off of saudi oil. >> here is the question. if the saudis come in and defend of a floor that is good for the producers. that is the dilemma for saudi arabia. the higher prices are the more you are basically bringing on
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new plays in north america and potentially all over the world. it is a problem over the medium term. what do you do about the global shale phenomenon? >> do you think opec as we barrel towards november 27 you think the credibility is shot in the meantime? >> i think opec is watching closely what happens in the nuclear negotiations. if you get a deal on november 24 and potentially 700,000 extra barrels on the market you will have some producers screaming for a cut. >> how low is oil going to go? >> i think potentially we could move a leg down if we get a good deal on iran. i think the pressure will be back on saudi arabia, on kuwait to defend the floor. the middle east is a mess. >> you keep saying defend the floor. i guess my previous question was can they? are they impotent? >> i think at this point if they took a million barrels off and you had seasonal demand pickup
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it could swing back. i don't think the price environment will look like it does now. >> quickly six months from now where do you guess the price will be? >> ten bucks up or down i put it ten bucks up. >> thank you very much. with oil and natural gas prices continuing to slide how is it going to impact alternative energy specifically the solar industry and the stocks in the space? gordon johnson you can really see how the incentive to keep on investing in alternative energy like solar is being taken away as traditional energy prices keep falling but you are negative on the solar stocks anyway so does it make a difference whether oil prices are going down or not? >> i think absolutely it does. if you look at the correlation particularly u.s. stocks to oil prices over the past year there is a very high correlation over 50% over the past five years it is quite low. correlation is persistent with
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natural gas. thinking about the macroback drop of oil. in 2009-10 you had qe 2 introduced. you had the arab spring in which issues spilled over to libya. and you had real growth in china. those three things which were driving demand. those things drove oil prices to a level that was unsustainbly high. those things have reversed. now you are getting oil prices coming back down. i don't necessarily agree that you will see a significant increase or an increase at all. right now the stocks are discounting $60 per barrel oil. that is where they are headed over the near term. given the ones that looked at yield companies are looking at oil prices and they made the assumption that energy prices are going to continue up. if we get those decline in oil prices the decline we expect i think you will see real pressure in the solar stocks.
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>> if i can peel apart little pieces of my first question to you. if we see oil prices stabilize at current levels or move high are you still negative on the solar stocks? how much negativity and sell ratings on a number of stocks is predicated on low oil prices? >> it's not a -- a very small percentage of negativity. you have to differentiate which stocks you are talking about. are we talking about chinese module manufactures? if oil prices go up and stay high i think it provides a tail wind to sun edison. i think the high performing stocks will come under pressure. alternatively i think for the chinese stocks the more important dynamic is what is going on in china. right now demapd in china is disappointing. we think it is a big disappointment in q 4.
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if we see a sustained move higher in oil i think stocks like solar city and sun power outperform. >> not a lot of people driving around america in a solar powered car. don't we care more about natural gas prices than oil? >> that is a great point. if you look over the past five years the correlation of solar stocks if you look at the index to natural gas is almost 100%, almost perfectly correlated. if you look at it to oil it is more like 20% which is insignificant. over the past year there is higher correlation to oil and solar stocks but the way that you evaluate solar stocks is natural gas. solar power versus natural gas what you pay for your energy from the fossil fuel base source. natural gas is more important. portfolio managers have more focus on oil and it will have an effect. >> just to hold you accountable,
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let's rewind one year ago here on "street signs" october 25, 2013. and you said about first solar that it is overinflated and you had concerns about the accounting and you said it would end badly and had a price target of $13. it is now $57 and change. are you going to throw in the towel or do you think it will end badly? >> i think it ends badly. what happened with first solar is people shifted focus to yokeo. we put together analysis that suggests they are not ready to announce. the story is simple. solar has a number of projects they acquired in 2009 when natural gas prices were $10 and $11 and now natural gas prices are $3. they are recognizing revenue on the projects which inflates the earnings. once the projects one out if you look at core earnings of the company they earned roughly 30 cents. the stocks trading at $56.
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once those projects run out and the company is exposed to today's economics on projects i think the earnings falls significantly. i think this is slated to take a beating over the next year to two. >> you are sticking to it. we will be watching. thank you for coming on and joining us. announcing bigger plans for a bigger michigan factory to support the volt. let us bring in phil lebeau. are they doubling down on a car that can be called nothing short of a massive disappointment by now? >> reporter: they are doubling down. when you look at volt 2.0 gm has high hopes this volt will do the trick in terms of getting people to buy electric vehicle. it will be unveiled in detroit. it will have a new battery pack which will store more energy and
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as a result gm says that means the volts will go further on a charge. it will be launched in the second half of next year. so general motors is not waiting long to get the new chevy volt out in the show room to replace the current chevy volt which is short of expectations in terms of what it has done about the market. when you look at volt sales since it was launched in 2010 approximately 70,000 have been sold. this year sales are down 13.2% and consider this, the industry this year is up 5.5%. so the volt clearly falling short of expectations. gm believes the next volt will certainly do better than the current one. the key point here, what will be the price point? will it be about $35,000? you better hope the range is substantially higher than the first 40 miles all electric. otherwise you see people staying away from it. they need to dramatically increase the range. we will see what the numbers are
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when they launch it next year. >> i have good news about the volt. want to hear it? it's not the cadillac elr. >> nothing is the cadillac elr. i think people within gm realize the cadillac elr huge bust. it has volt technology in it. >> it basically is the volt. phil lebeau, thank you very much. so america as a whole must be down with hopium. everything is up. why now might be a better time than ever to go all in on the usa. it's a bird, a plane, a windowless plane. could this be the future of flying? "street signs" will be right back. @p
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welcome back to "street signs." welcome back hopium because consumer confidence jumping to highest level since october 2007. confidence back to prerecession levels. consumers are feeling good but how is wall street feeling? let's get to steve leesman. the most of the improvement from the expectations category. so forward looking. is that joe with your survey result snz. >> what is interesting is headlines we have had, weakness in europe and asia. the ebola scare that is ongoing right now. what about the growth forecast for the cnbc fed survey, unchanged at a pretty high level
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for 2015. let's look at the history of this forecast for this year and next year. it was 275 back in april and 3%. that came way down with the negative number in the first quarter. it bounced back up. we are at 2.9% expectation for next year. one of the better years of growth we have had. note we are at 2.3 for this year. we didn't do such a good job. take a look at the outlook for inflation very modest at 2% back to where they thought it was after a bump up in september. low inflation, pretty reasonable growth. add those together and you get a low recession probability down near 15.1%. 14.6% is the low of the survey. 36.1, the chance of a recession. the high was 36.1. now we are down low probability of recession. the federal reserve there has been a tug of war between whether or not people think the
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fed is too accommodative. back in july of 2012, 43% said just right. that was on the eve of qe 3. now that we are about to end 49% say just right. 44% say too accommodative. pretty good agreement on policy. and a decent outlook for growth. >> we like to hear it. coming up this way let's bring in vice chairman of arial investments and jamie cox. i don't know if you heard the top of the show but i repeated a tweet i sent utearlier and said confidence is up, jobs are up, stocks are up, wages are soon to be up, i think, or i expect. we should cowboy up, let's not screw it up. we know the good news. what could screw it up? >> i think europe. i think the fed survey that steve talked about, that was the one thing all economists were
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worried about. if the ecb doesn't thwart deflation trends they could drag us down. there is nothing worse for us than to have to import deflation from europe. that is the thing that needs to be addressed. if it is we should be just fine. i'm pretty happy. >> i'll push back a little bit and i don't disagree but that would be bad for the euro if it lasts and good for the u.s. dollar. stocks tend to do well when the dollar does well. why is that a bad thing? >> it isn't a bad thing but you asked what is the problem? >> you are saying a small chance the whole thing can come down like a game of jenga. >> it is very small. we will find a bottom here in europe and we will realize that probably the disinflation in europe was probably caused by stress tests, things that happened with the ecb and the banking system over there. t i think that once you see some time pass you will notice that lending will pick up and the
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economies over there will do better. that is my expectation going forward. >> we hope we don't fall off a cliff. am i right in thinking you have a slightly different view on inflation, disinflation and deflation and you think headlines out of europe, ukraine, russia and ebola that inflation is a risk that is being ignored by our market? are you sure inflation? >> look what is in the headlines. that is probably what is in the stocks. risk of europe turning down ebola, et cetera is in the stocks. we would say overestimated in the stocks. the biggest risk is actually china. china people are forecasting 6% growth. there is a significant chance we have a state bubble in china and will get lower numbers out of china. the other long term risk is inflation. we have never printed this amount of money and not had inflation come back. around the world we have never had this growth in money
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supplies and not had inflation come back. nobody is worried about it. that is why all of us need to be worried about it. >> how many people saying with money printing coming on and saying wall of inflation is going to hit us and it hasn't -- wage inflation to speak of. energy prices are down. that chicken has not come home to roost yet. >> not yet. that is why people don't seem to be worried about it. you are quoting government statistics. the government is not good at many things and not good at measuring things. we argue inflation is already a little higher. have you looked at your kids tuition bills inflation is probably already higher? there is a lot of long growth demand. remember when the fed puts money into banks it doesn't cause inflation until the money gets lent out. we are seeing growth in loan demand. we think we will see more inflation over the next 12 to 18 months. >> you just hit on the most important two things that cause me to be so optimistic which is
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loan growth. let's hope credit eases up. i expect it will. whenever credit expands we can go into the whole is debt a good thing, that is a different segment for a different show. that is a big deal. that is not something people made enough of a deal about. i am disagreeing with you because you are right. >> i am more bullish on the economy overall. we think people are anchored on gdp growth. 2.9% steve said was fairly good. that is well below the 60-year average of 4% coming out of a recession. we think you could have more like 4% growth but you get a tick up in inflation. >> let's get back to what this means for the market. what are you predicting? >> in the short run in the very short run up until the end of the year i predict very good things. what happened in october was an aberration. we are looking towards all-time highs running towards end of the year. as interest rates rise next year
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the market is going to be climbing a little bit more difficult hill. we are going to see probably subparaverages next year, 7%, 8% on averages in 2015. it is not going to be as easy as it was the last five years. people need to be a lot more careful in their investment decisions going forward. in my view it is still okay but it is not as good as it was in the past. >> we appreciate it. thank you both very much. probably a good point to mention that jamie was saying that october this year has been a bit of an aberration. the nasdaq is positive for the month after its gain today as is the s&p 500. it has not been that bad. dow transports an all-time high. >> it has the biggest swings. >> it's a little bit volatile. it turned out to be good. we have a big show on tap tomorrow. the fed releases latest policy
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decision at 2:00 p.m. eastern. as we are the fed show we will bring it to you live right here on "street signs." >> i will be in texas. >> you still going to bring it to us but from over there. sitting down with the president of motorola mobility. how is their new phone going to do? >> a twitter told you so courtesy of mr. herb greenberg. he gives us his take when "street signs" returns. ♪ [ radio chatter ] ♪ [ male announcer ] andrew. rita. sandy. ♪ meet chris
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they'll only show up when you print a label and it's automatic. we save time and money. time? money? time and money. awesome. awesome! awesome! awesome! awesome! (all) awesome! i love logistics. the president will be speaking on ebola from the white house within the hour. he is going to make a statement after holding a conference call with members of the u.s. aid dart team. that team has been on the ground in west africa. the moment the president begins speaking we will bring it to you. motorola is back from the brink back what is next for the struggling smart phone maker.
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let's get to the top executive. over to you. >> reporter: i'm joined by rick osterlo. thanks for talking to us today. you were talking about how motorola is not yet profitable. what will it take to get you there? >> just scaling our business. we are on the right path. we are growing really fast. we are going in the right direction. >> you are 3% of the global smart phone market and 5% to 6% here in the u.s. that seems like a pretty tough task to grow such tiny numbers. >> it certainly is. this is a really tough market. we are going in the right direction. there are some places where we have really succeeded. if you look at our position in brazil we are at 20% share. we are growing everywhere we are. one big thing we have to do is expand and we are excited to go into the countries in the coming year. >> you announced a new phone today made out of kevlar.
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>> this is it right here. >> two day battery life. seems good. what else makes this different? >> two day battery life. it has top specks, great performance, 2.7 giga hertz processor. it is a great phone. >> people moved so far away from motorola devices. how can you convince them when there are the beautiful apple new phones out there and phones from samsung, how can you convince them to come back to motorola? >> our focus is to develop great products and people will figure out we are making some of the best products in the industry. >> how will you convince them? people will figure it out when the iphone is part of the cultural landscape as the hot phone to have. how do you change that? >> word of mouth is one of the key things. we are going to keep marketing and talking about our story. we are really focused on end users and giving them great choices. we think we have a great lineup. >> your acquisition is expected
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to close by the end of the year. what will it mean? >> it will mean instant scale. lenoevo is number one in the world and when combined we will be number three phone manufacturer and instantly in twice as many countries as right now. that will help us grow very fast. >> you keep talking about overseas opportunities. does it matter if you are tiny here? do you need to be a player in the u.s.? >> a lot of growth has been overseas. we are growing here, too. we are growing fast in the prepay segment and our share in the high end is growing, too. >> tell me about the phone you are wearing, the 360. you had comments about how phones should have round faces so you are not excited by the apple watch. >> i am excited about our watch. this is the first smart watch. it has a round screen and is really useful. >> how have sales been? >> really good. it is a very early category. we are definitely the leader in
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this category. >> we'll see what happens once apple launches its alternative. thank you for joining us. thank you very much. it looks beautiful over there. sure beats this windowless news room. you can check out cnbc.com/tech drivers. i had to put that dig in there. i'm not bitter at all. >> not one bit. for one firm thinks madison square gardens latest move may be a slam dunk. we will talk more about it. coach getting benched today. so maybe now is the best time to get in. we are talking numbers when "street signs" returns. coach down 6.5%. 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.
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tthat's why i take metabiotic,ed toa daily probiotic. health. new multihealth metabiotic with bio-active 12 is proven to help support a healthy immune system. experience the meta effect with our new multi-health wellness line. thank you. ordering chinese food is a very predictable experience.
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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. comcast business. you have the dow, nasdaq and s&p putting on good gains. the nasdaq up 1.5%. with these gains has gone positive for the month of october. the s&p positive for the month of october. we have a number of records like apple. what stocks have you got? >> i like the best performers in
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the s&p because they are old school companies. cummins engine top stock in the s&p, auto nation and whirlpool that do not make holes in the ocean that sink pirates. they make driers. it is called "street talk" hitting four analyst calls. normally it is five. >> it is deflation. >> we are being efficient with our time. morgan stanley adding sales force.com. >> the price target nudged up to 80 from 79. that is a 30% upside to salesforce.com's price. >> let's move to entertainment. madison square garden exploring spinning off the physical and entertainment assets from the sports and tv networks.
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securities really like the idea of the move. >> up more than 10% today. raising price target. they said sum of the parts analysis yields to $92 share valueuation and the stock is up 25% year to date as new york rangers look pretty average. next up, brazilian low cost airline up to buy from hold at raymond james. >> the target is $6. at $5 a share it is like 15% to 20% upside seen. total system traffic up 5%. load factor up. highlighted the name because everybody hates brazil after the election. here is a firm coming out and saying at least one brazil based company is actually a good buy. >> i should say b of a did
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downgrade from a buy to a neutral. not everybody is on the same page. finishing out our lineup your under the radar name is hsn. you know they own front gate and ballard design businesses. i did not know that. we learn something new every day in this show. that is our only goal. >> a buy and target of hsni. only about 10% upside. they said mobile sales are a big catalyst especially because they are bringing in younger and wealthier buyers to the hsn family of products. now to "talking numbers." we take one stock and look at it from fundamental and technical perspective. today is one of the worst performers of the s&p 500 right now. that is coach. we have mark newton on the technicals. mark licktonfield on the
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fundamentals. mark, coach sales below where they were last year. is there a reason you see for our viewers to put their money into coach? >> if you are a patient investor i think it is a buy. this is a classic contrary yn story. we have seen this many times before. we have a hot brand or company that runs into a rough patch and everybody piles on with negative sentiment. hasbrois a similar example. wall street hated the stock up 50%. intel last year same thing. you have a new creative director. they are still profitable and cash flow positive. sentiment is so negative right now you have 25 out of 36 analysts who raided a hold or sell. you have 10% of the float and a million more than last month. typically when sentiment is so negative and you go the other way you make a lot of money. i think it is a buy here.
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>> you think it is a buy here. trading at lows not seen since february 2010. other mark, do you agree? >> i'm not there yet. i think it is a sell. as tempting as it is to try to stick the lows of a stock it is down over 50%. you have not seen sufficient signs of bottoming out yet. a couple of charts back this up. if you look at daily charts you see the minor bounce end of september. this is completely retraced. the stock is attempting to break october lows. really the heaviest volume we have seen over three times average volume. that is a concern. it is really below 33.30 would be lowest since 2010. the weekly chart shows reason for concern if you look at a longer term chart you see the break of three year trend line support. this continues to show signs of under performance and weakness. we don't see sufficient
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technical signs yet to step in and buy. when i see that my thinking is it will come down near $30 and go as low as 26. that would be a much better area. for now really not much there in terms of real stabilization to suggest buying this on a break down on weekly lows. >> one buy, one sell. that is what makes a market. thank you very much for joining us on coach. you can check out the online edition of "talking numbers." you can log on at your leisure. we mentioned facebook shares which have hit an all-time high earlier on today ahead of the earnings report which is after the bell. and on the flip side of facebook, twitter. their stock getting crushed today. is it time for twitter to sell itself to try to get off the front pages? herb greenberg up next. [ male announcer ] your love for trading never stops.
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open port twenty-two-oh-one-seven on the firewall for customer db access. install version two-point-three of db connector and ensure verbose flag is set in case of problems. (clapping sound) isn't the cloud supposed to make business easier? get the one that can connect to the systems that you already have. today there's a new way to work. and it's made with ibm. welcome back to "street signs" i'm here with another round of "earnings squad."
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it is ladies day. we have jane wells along with abigail dolittle. here is a look at the score card so far. 49% of the s&p 500 reporting. 73% have come in above estimates. 8% have met estimates and 19% have come in below estimates. everyone talking about facebook. we have to start there first especially with a day where twitter is down double digit percentages we are looking at fb. >> we have a lot of internet companies putting up weak quarters. can facebook buck the trend? if they do it will come down to mobile. if they can beat on mobile ad numbers. one analyst looking for about 66% of revenues. the company might be okay. this stock is up 50% this year. valuation is rich. okay might not be enough. i am hearing that investors are looking for 44 cents. we'll see. i don't know. >> i'm glad you mentioned the context of the stock run up. the expectations are high based
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on third party numbers. when you take a look at data and total minutes pc plus mobile expect it to be up. we turn to technicals, we have a look of volatility. there is a chance we see this thing fall down towards 70. >> where do you use facebook? it is always on my mobile phone. >> i don't use it at all. i'm not on facebook. so that brings us to what people are listening to on the conference call. who is using facebook these days? daily active users over monthly active users. a lot of reports about younger people not using facebook. they need to talk about that and how they are monetizing instagram as well as plans for
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younger people apps out there. on to bread bowls. panerra bread. >> this is my expertise. >> they are looking for earnings growth 5%. here is the real deal. is it worse than last quarter what happened with same store sales growth? they have guided for the year between 0 and 1.5%. chipotle is projecting slower same store sales growth in the next year. pan era trying to reinvent itself coming up with mobile ordering app. they are incorporating apple pay. i think the expectations are kind of not that great. and yet the stock since the last earnings report is up 15%. so it is like investors know it but they have been buying it up. i don't know why. >> ladies, thank you. i will see you guys tonight on
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"fast money." thank you very much. appreciate it. twitter shares, speaking of the opposite of facebook down about 9%. they reported earnings that only met expectations. the real concern, though, is the lack of growth and the 7% decline in user engagement. herb greenberg joining us now. it's not like twitter didn't grow. it's just that their growth slowed down. why you hating? >> i'm not hating because you know i love twitter the service. i'm saying that this company given the way it is going needs to do this in the privacy of its own home meaning let somebody swallow it if they want to pay $26 billion plus in cash and/or stock. and let this company and this service continue to evolve without being picked over by you, by me, by everybody else out there who thinks they know
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better. >> part of the reason why you believe that they shouldn't be doing things like giving out guidance and being out there for the public to pick over it is you think they should just sell the thing, maybe sell it to google. >> absolutely. >> does google want it? >> we don't know. somebody would find this brand very valuable to have inside. it is a question of price. this is not a brand that is going away. it's not a new service going away. it's my first read of the morning because i couldn't find out what i missed overnight. many people don't understand that. i have been on "street signs" for well over a year saying one thing i think twitter made a mistake of is not explaining how you don't have to tweet and this other stuff. they want engagement but i think people have to note they have to create something valuable and strong with the service. when you are doing it and being pulled apart and what your ceo says or cfo says, to those in
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the investment community who say this doesn't make sense, that's a distraction. >> i don't understand why twitter went public in the first place given they don't need the money to build a factory. that is a different issue. if you are saying -- we all use twitter. probably tweet something about the segment after it is over. if twitter is just a news service that's primarily passive i use -- when google killed the reader thing now i use my news flow in the morning that i separate out, i'm saying shouldn't it have a $20 billion market cap? if it's just a passive thing then what makes it different than business wire? >> first of all, you are the only person left in the world that uses feedly. i think the difference here is this is more about engagement, dissim nation. it is not passive pr many of us.
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for those who want to use it as passive then it is potential advertising. >> because we are in the media. we are different. everybody else on twitter is yelling at each other in the room. we have a mega phone. it doesn't make us smarter or t don't need a mega phone. >> you don't like it because they're yelling at you. >> yeah. >> you know what? that's what makes twitter fun actually. >> yeah. i'm talking numbers on friday, like semijoking and may be even true. the queen, queen elizabeth ii tweeted and maybe the queen on twitter, a peak? who knows but it was an interesting segment. >> could we be posting a loss? >> yeah. okay. herb, thank you very much for joining us. go and tweet about it. a very quick break. we'll be right back here on "street signs."
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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. i've never felt so alive. get the future of phone and the phones are free. comcast business. built for business. not often that america's called an emerging market but that is what the ceo of mahindra says about the united states. phil lebeau got an exclusive. what is it and why did he say
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that? >> reporter: it is for them. i'll answer the question by telling you guys, queue up the music! i'm in farm country down here. i'm at the mahindra factory in houston building tractors. they make tractors? they can't make that many. they're number one in the world. 10% of the sales are here in the u.s. this is a growing market for them. they specialize in making smaller, less expensive tractors. this is one for 22 grand. a lot of them going to gentleman farmers, people not farming full-time but they want to work some land and a segment that the ceo believes will continue to grow. >> there's something going on here in the u.s. which is about transition to smaller horsepower tractors, as well as to tractor that is are simple, rugged and basic. we seem to be in the right place at the right time. so i am very bullish. there's no sign so far of that
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trend slowing in any way. >> reporter: and when you look at them in the u.s., keep in mind while the tractors are assembled in houston, they're imported and put together. they have about 160 employees here in the u.s. oh, by the way, brian, this is not just a one-trick pony. they expand here in the u.s. we talked this morning about building an electric scooter in southeastern michigan. mahindra is an indian company saying, you know what? america is a emern emerging mar. there you go. there's the farm report today. >> ironic, isn't it? thank you very much for that. great driving there, phil. seeing a little hoe down music, as well. >> "green acres." quite possibly the single best american show ever created. >> go and watch it tonight. >> skip pi or -- kangaroo that rescued people? >> yeah. okay.
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we're exactly one week away from the midterm elections and potentially huge shift of power if the republicans take the senate. don h john harwood, how likely is that to happen? >> favored to win. phil was talking about emerging markets for tractors. we have a very mature market for elections in the united states. the battlegrounds are inundated with campaign cash. run through amount of money spent. first of all, overall totals our friends at the open secrets.org tell us on track for a $4 billion midterm election. that's a record up from $2.billion in 2006 and $3.6 billion in 2010. republicans have gotten an edge this year. they had an edge in 2006. democrats with the congress and presidency in 2010 with a slight edge. republicans up 157 million in their projections but that's not
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all that much. in the context of spending this size. how about the outside groups? that has tripled since 2006. a lot of outside money flowing into these races and, finally, look at the north carolina race. this is the most expensive senate race in the country and you can see from who's spending money that one of the candidates isn't even the second top spender in the race. kay hagan spent $21 million, the incumbent. you have senate majority pac and other outside groups, $100 million race. very close and down to the wire. i don't think money's what's going to decide it, guys. >> okay. thank you very much, john harwood. could this be the future of flying? that story is next.
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