biogen down almost 12% this year alone. that strike three, all three trades not working anymore. what should you do? maintain some perspective. it's true some of the best performing sectors had a tough weak but all of them remain up for the year. and the s&p 500, that is the benchmark, after all. it's only 1.6% from its historic closing high. you know when that was? it was just last friday. doesn't that seem like a long time ago? for "nightly business report," i'm bob pisani at the new york stock exchange. >> daniel morris joins us now to talk more about the markets and what lies ahead in may. global strategist at tias. $60 billion under management. good to you, danny. welcome. >> thank you. >> i know you feel stretched in terms of valuations but looking at decent earnings growth the rest of the year correct? >> i guess it depends how you define decent in this environment after the really good results we've had over the last several years. the bottom of 2009 we're at a point you look at perhaps high single digits earnings growth excluding the energy sector. that's okay but much l

shares of biogen are up. this after the company authorizes an additional $5 billion share repurchase program. that $5 billion is in addition to $500 million left on a previous authorization so those shares of biogen in focus. back over to you. >> speaking of biotech slew of data coming out next week ahead of the largest cancer conference of the year. there's three things you should watch for next week. >> on wednesday at 5:00 p.m. when you get this huge data dump coming out. a lot of data presented come out early and that moves a lot of stock. one of the main themes, we've been talking about it for years, therapy. big competition going on between bristol myers and merck and astrazeneca and roche. they think bristol myers leads in lung cancer. he sees sales topping $16 boil lone in 2033. the smaller names often move more. thursday morning or wednesday after 5:00 p.m. we could be looking at clovis which has two drugs. one in lung cancer another in ovarian cancer. the drug in lung is competing with astrazeneca.

biogen 318. some biogens are stretched at $98 but add -- a bidding war and add in j&j to the greatest pharmaceutical companies on the earth and now they're at 275. and this morning alexion agreed to buy it a big premium well above yellen said these stocks were stretched. how about social media, facebook was at 66 and now it's at 78. maybe she meant twitter? nailed it. unchanged year over year. i just wish she had said social media was overstretched at 82. yellen would have a cow if microsoft paid say like 85 bucks for salesforce.com. oh boy that would be a black day for the feds prognosticator in chief for certain. the fact is that when you're in yellen's position nothing good comes with calling stocks overvalued. why not raise the margin requirements? that's something she has the ability to do. we know the real worry about stock valuations comes from those who buy stocks with borrowed money. those people can do serious damage including institutions to themselves and the entire market. especially

biogen amgen among other bigger losers. >> biogen was up big the other day.lzheimer formulation i'm waiting for. a lot of people the ms numbers were not that strong. this is a maintenance drug they have. biotech has been all over the place. i think about all the deals they happen at biotech. if any company comes down a lot, they've been eccentric in nature. >> mylan. the company chairman has been meeting with lots of fund managers and giving them his strong opinion why selling to teva would be a big mistake. we haven't heard from teva in a while. there is an expectation still perhaps teva will raise its bid. we will see. he's been very aggressive in terms of articulating why a sale to teva would be a very bad idea, and why he believes the stock price of mylan, if they were to do the perigo deal -- >> there was a lot of chatter on the activist call whether he should spin off his business. there is a free for all in generics. i mentioned the ms franchise. the clock is ticking on teva. >> they migrated a lot of their patient population from 20 milligrams to 40.

i think that every generation, is annoyed biogen the generation before the generation. and i am wondering if that is what it is about. >> it has something to do with millennials told that economy is bad, if you need to stay home that is fine. a lot of people i wonder if they are scared into staying home rather than trying. >> this is not just a millennial problem. neil: i was around during the depression. >> we need to think about boomers, you talk about boomers it takes two to tango millennials are empowered by baby boomer parents for doing this. >> are you blaming us after all that we've done for you? >> you better believe it. neil: do your parents hate you. >> they love me, maybe not after this. neil: you have a view, that you know too each his or her own but you can't make a sweeping like charlie gasparino did. >> and you are an attorney, right? >> you can't stay home catching television doing nothing. >> do you think he has apple ground to sue for using language like that? >> i am sorry. >> you hate my. >> if you do not like the way the youth is going on, maybe mak

how about biogen? stock surged as if it has no problem soaring past the cost discipline express scripts is trying for. maybe he didn't read the article. just said he didn't. i'm not making a case for giant sell off. i'm not arguing that today's action is inconsistent i am however making the case that if tomorrow some fed governor comes on the tape and says that the housing market is too strong or we're due for a tightening because we just are, some german statesman grabs a mic, we'll see this whole rally reverse yet again. there's simply no underpinning to the broader market at all. we're swinging with people that went to college to get stupid and clean up the next day with actual stock ifs they knock it down. it's funny this morning after i said i wished the fed would stop talking and let the market out of its way, asked me if i just wanted to dance until the music stopped. basically hoping to get out while the getting is good. here is my take. i'm trying to encourage people to buy stocks of companies

amgen, eclectic value stock, trading at the low end of peer group, if you look at biogen, amgenis fantasticallyced, great pipeline, and a new cholesterol drug coming along the lines and reported stock earnings, the stock dropped 15 bucks. liz: why is royal caribbean on the list? >> has excellent greth potential and trading at a reasonable valuation. keep in mind, the overall market is trading at 19, 20 times earnings for a lot of stocks. stocks are in the same multiple. they have above average growth, and so i think there still is value associated with the good balance sheets and dividend yields as well. liz: john buckingham, remember, has had a better return record than warren buffett. you didn't go to the meeting. i didn't see you there. >> some of us have to work, liz. i'm sorry. he didn't invite me, either. liz: john buckingham. teaching you how to find the value investment stocks. >>> famed venture capitalist marc andreessen goes in for companies who aren't stocks yet. he may have a favorite. zenefits just got a cash infusion of half a billion dollars that now values this two-year-old comp

you get your amgen and biogen. your cellgene, everything you want to be exposed to. you don't get exposed to a 40% drop after hours. >> gilead popped over. that's the one generation as opposed to amgen and the claims is they have so dependent, look at what brings this down. off this news. >> facebook is taking on google. the company confirming it is starteding to test out and in app search engine to make it easier for users. what could this mean for search team google? do we think pins and needles? >> i definitely think we will. when you consider how much searches, yeah, they're doing it in video, too. they are right up on google's heels here. so i'm not particularly negative on google whatsoever. i'm bullishly positioned in the near term. what if people get upset about facebook spending. every time we have an analyst on that's bullish. they get excited. they have this currency. they have gone out and have mobile messaging. they should be. the only problem i have right now is the stock report is down about 1% from those gap highs after earnings. it kind of feels like

it wasn't surprising that they saw a pull back especially after two of the bell weathers biogen and essive beaten raise put a floor on this space. i don't see a massive rotation out of this sector. fundamentals look good and i think it's going to continue from here. >> takinging a look at the earnings it was impressive when you look at the complex specifically. it really just blew past expectations on the street. is that where you see value? a lot of people are taking a look at this and saying i see a pull back. a sect or that i missed out on. which names should i look at? >> so what i'm seeing is that any time one of the stocks breaks, they are taking a really hard look. it's hard to find stuff. they have run so fast. a lot at 52-week highs and normally when something breaks no one wants to touch it. i am finding the opposite that i cover. it broke the other day and now everybody is taking a look and seeing whether it's time to get into names like that. >> you like valiant? >> that would be the top overall pick. it's not a biotech stock, but more of a specialty farm. the most under e

. >> some are on biobacks like biogen is ringing the bell at the nasdaq.o miss this rally because they are short. the technicals have been so powerful. everyone is following technicals because no one can make sense of anything. they can't make sense of interest or earnings. technicals are letting them down. >> you get past the real heart of earnings season. you start to move on. you get to that area where maybe more companies can continue to do these buybacks. >> some will buy because the companies are buying. >> buybacks $141 billion in april. the highest total ever. >> what does that say? conviction with their stocks are so high. a lot should be able to move the earnings up dramatically. it's been a lager. celgene is a laggard. boeing a big dow stock. people worried because the dollar and airbus. i could tick down what worries are coming out. that's very important. to be worried-free into mother's day is victory. >> who do you have at 12:00? >> i've got to think about it. i don't remember. >> that is a plug. >> you caught me by surprise. alibaba. i'm pun

biogen it could be a 20% gain if analysts get the number correct here for upside moves.month to date. it has some momentum. if you look at the financials second biggest sector in the s&p 500. citigroup, 13% gain is possible if we see the upside that analysts expect to see. it's up 4%. it has some momentum behind it short term. prologis can go up by 18%. it's up about 1%. the biggest sector of them all facebook. technology. it could go up by 18% according to average analyst forecast. it's up 3% this month. hewlett-packard could gain 21% on average and it's up about 1% no month to date. in this case those are some of the stocks in the s&p that could be poised for gains if again, the big caveat the average analyst forecast is correct, guys. back over to you. >> thank you very much. now we have two market pros who will tell us where they are finding value. >> joining us with their plays is charles from brandywine global and stern. you go first. >> hi how are you? our top picks are in financials we like citigroup. we think citigroup is a misunderstood investment story. it's t

the clinical side, one month ago the report by bio biogenic off what appeared to be a possible positiveresult 1st time after dozens of failed trials from a monitor flow antibody has gotten a lot of people interested in whether we might be onto something. very small very small trial 300 patients and have to be careful because it is so easy for them not to end up being replicated. the initial excitement is something that people are feeling more optimistic about. one thing we one thing we are doing is to partner with industry in an unprecedented way. >> is that the accelerated medicine partner? >> estimate is. it's then i personally cochair the executive committee of that group. we have only been added one year. that also is showing some considerable promise all the way through the basic to the clinical. we are on a roll in terms of tackling what has been for most of the years that we have studied a really frustrating disease. starting to get a much better handle on what is going on. it is clear one thing that we need to do's is to start early. i assure you this is an intense area of focus

on the clinical side, i think just a month ago the report by biogen of what appeared to be a possible positive result first time after dozens of failed trials from a ant body has gotten a lot of people interested in whether we might be on to something. now, very small trial. only about 300 patients. you always have to be careful here because it's so easy for those things not to be replicated but the initial excitement is certainly something with cautiousness people are feeling a bit more optimistic. one thing we are doing is to partner with industry in an unprecedented way. >> is that the accelerating medicine partnership? dr. collins: it is. i personally cochair the executive committee of that group and we've only been at it a year and we're ahead of the schedule that we thought would be possible. that also is showing some considerable promise all the way from the basic to the clinical. so i think we are on a role here in terms of tackling what has been for most of the years that we've studied it a really frustrating disease. we're starting to get a much better handle on what is goin

because i remember carl icahn buying motorola he has no idea what kind of phones are out there or biogene same with you or how did it change with ibm? >> i got great news for you, joe. you are only the second dumbest guy in the country about the cloud. i got you beat out in that respect. what we do and there's no question that i -- i have far less technical knowledge about how ibm works than i do how wells fargo or coke cold la works, we do have 70-plus companies, when we talk to them we learn something of their plans and we learn about competitive products and we make some estimate. we'll take wells fargo. my guess is that wells fargo, ibm is their biggest supplier now. my guess is ibm will be their big he have supplier five or ten years from now. i think there's a significant difference -- sometimes the location of the information actually has to be geographically specific but there's certainly differences in the degree of security that people feel they need in terms of storing information on the cloud and as i talk to ceos and i talk to our own managers i feel pretty good about ibm's