big wave of capex. everybody's got to upgrade their computer systems and networking systems. it doesn't seem to be happening yet. so that's the one take away i would say from the macropicture here, it doesn't look like worry really reaching that escape velocity on capex. >> what i saw, mandy, was beat on top and bottom lines both. even though it wasn't up year over year as far as revenue, it was 300 million i believe better revenue than expected. top line is a pretty big beat in the text base these days. that's with the emerging markets decimated as they have been. as far as $51 billion in cash or thereabouts i have this sheet as quickly as i'd like yet. that's what they have at the end of last quarter. $51 billion in cash and/or equivalents. i'm not at all happy about these results. i think a lot of people betting on the computer space, pcs and the like being dead are wrong. cisco on the virtualization side, they have been building a lot of folks, taking customers programs from the m-ware and the other

reducdes capex protects the dividend. that is a big driver within utilities.he fundamental change in terms of what is going on with the energy -- >> interesting what you say but the wholesale power prices, which are at their lowest level for seven years. the company has been beating a presentation to analysts that says that european coal prices have troughed as well. forward power prices have reached bottom. when it comes to germany, everyone is thinking about what is the link between germany and russia? rwe and other utilities get 30% of their gas supply from russia. ukraine.mes via the eu is importing a bigger portion of its gas from russia. any turbulence in the market is reflected by these companies. >> it is. before we go, i think it is worth mentioning that the euro has turned around. 1.3365. andad stagnation and france contraction in germany. a market that is so sure. we are now at 1.3365. record.like a broken but if you break that level, the stop loss is that -- is at 1.3325. of rwe isthe cfo going to join us on "the pulse," to talk about geopolitical

can you address what your plans for expansion are given that drop in capex that we'll see? >> right. we're still going to spend significantly this year. it will be around $87 million or $90 million for the year. that's down from what we originally thought about. there were a couple big projects in that. in terms of stations, this year melissa will build 25 stations. in texas, it's amazing what we have there. we have opened up several truck stops from the texas triangle so you can move goods and heavy duty trucks from dallas and houston to san antonio. ups is running dozens and dozens of trucks in texas so you are seeing a lot happen there. a lot of trucking companies are coming to the party. seaboard, dillan, fedex is now testing. others are showing great leadership, too, waste management in houston announced their 3,000 natural gas refuse truck. there is a lot happening there. we are seeing this in parts of the country too like down in florida. >> andrew, it's karen. as you know, shareholders of your stock has been a frustrating ride. talk to me about the uptake of the new

we hope that translates into capex down the line because companies want to see organic growth.im bianco on yesterday. continue at the same level in the next six months, that is a bad sign. that starts to mean we may see a peak in the stock market. we have come from low levels of >> day. the thing about the last few years, every january you get reports that this is the m&a. finally it is happening. isthe same time again, cash at record levels. something needs to be done about that. given the low volatility, that is -- >> what is different in here, james? >> taken over five years for consumer confidence to come back. that translates into higher corporate confidence. over the past several years we have been concerned about a double-dip recession or excesses in the market. we are finally at a point where we are seeing unemployment ticked down to a 6% or 7% level. over the gop will go up, and i think that is getting confidence. corporations should be taking advantage of this while they can. >> are we anywhere near a peak right now? >> i don't think so, based on valuations. i know pe

you need to things to be more bullish on capex. bigger, meaning customers are ordering more, and you need ratios to the above 1. >> this is the nasdaq 100, heavily influenced by apple. feeling,just this adam, wait a minute, wise guy from morgan stanley, you wanted me to buy right here? that is the heart of the debate. >> sure. corporate earnings are at an all-time high, balance sheets are at the best shape they have ever been, so at some point, you expect the market to reach new levels. if i say tom, you are managing in equity portfolio, the fastest three are biotech, internet, and software. do you want to own none of those in your portfolio? we have to be mindful. >> what you're getting at is peg ratio. you should be willing to pay higher valuation for higher growth. >> actually, it is stronger than that. fast-growing stocks that are cheap underperform fast-growing stocks that are expensive. if they are fast-growing in and cheap they are cyclical. you actually don't want to buy cheap stocks. >> we can go all day on this. it is alm

they throw a lot of money at new capex at a time within they have all these new lines out in the fall. this oto me seems more where people are concerned. >> just to hit on these points, certainly, glass half full. a lot of investing for the future. is this happening at the wrong time. because you have expansion on multiple continents. you got starting up new businesses like they will ramp out ecom and start the men's business. maybe they will be doing this at the wrong time when everyone is starting to ratchet down. this could be a situation where you go into the next coach or it could settle down here? >> it's so far away from this being the next, sorry to interrupt. i'm going to ask a question myself. let me ask you something. just to give you a little of a hard time. you have an $80 price target, the stock is what 77? i don't know where it closed. what does that mean? were you $3 bucks away, were you saying,led who, sell, what does that mean? >> well, okay. first of all, that's really resting on a forward, that's relative to growth. so if we lock at maybe high teens, low 20% growth

. >> this has been a darling where you get a good dividend yield everyone talked about the capex that's coming. companies will upgrade because of windows xp. that's all happened. we are probably in inning 7 or 8 and add on to that, intel is trying to get into the possibly space. we seen the ipad and tablet sales going down the question now becomes where is the growth prospect? has it gotten ahead of itself? i'm not sure i'm ready to buy it quite kwet. i'd much rather see it flop. >> i was wrong when it gapped up after the earnings. here is a company expected to grow earnings in sales mid-single digits. it is expensive relative to its historical back grourngsdz it has a great balance sheet and yield, you don't buy it up 30% in three months. >> to dan's point, this stock is back to where it was 30 cents or so. they had the initial pop. with intel, peak mar jens lead to peak stock price, somewhere we might be seeing right now. now to groupon, revenue coming in lighter than expected. follows groupon and forester research. great to have with you us. you along with people on the street were e

i think there's reason to see a little capex improvement going into next year. >> all right. we'll take a break and bring you both back. as we head to the close, we'll see what happens. we'll have the closing countdown. >>> then, the barrage of major earnings after the bell. disney, activision blizzard, groupon and zillow among the names reporting. we'll bring you the numbers and what they mean for the market. >>> plus, disney's ceo, bob iger, will be here as well with instant reaction to the media giant's results. you don't want to miss that coming up. you're watching cnbc, first in business worldwide. ♪ when the world moves, futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with paper money to test-drive the market. all on thinkorswim from td ameritrade. >>> we get about 3 1/2 minutes left here. come on in, ladies. come on. here we go. you get tourists, you've got the members of the homeland security team, they're ringing the closing bell today. it's always very busy at the close, and we've had a very busy close

there is a huge capex investment but also because he continues to contract.tory pressures in europe which are making mobile company's decline to do the investment. regulators in the background saying you've got to invest. what is iliad's plan? they can raise a small fortune. say, are they to really geared up to do that premium position? probably not. it seems like they need a lot of money. >> could american mobile come in or not? we have to offer fixed and mobile, but yes. but again, it's going to be about price. >> it has been great speaking to you about the ups and downs in the telecom area. >> coming up, a bit of monkey business is under way when it comes to selfies. >> welcome back to "countdown." i'm caroline hyde. >> pga today, the fourth major. mcelroy went four of them? a in the off at valhall u.s. today. digs usually come at the end of the show. >> have a look at this. was in ourf london building yesterday. this is the bloomberg building in the background. he's in our building, he made his big announcement about his ambitions to return to politics in

a lot of parallel that you can draw is a lot of the capex going into macau and las vegas. hard to justify that anywhere else. really, you want a geographic monopoly. that is a big problem for atlantic city. ad you want to be close to large population center, those are the keys. >> that raises the question, why aren't there other true casino centers outside of vegas? i guess atlantic city and macau. maybe we can throw in monaco as well. opportunities coming back to the united states. these are really become the border wars where you have expansion that is running rampant. of course, as brian points out, expansion throughout the world. this is not unique to the united states. everyone understands that enormous revenues can be generated from gaming, huge gaming is jobs, and economic engine that allows you to build all of the other stuff. >> what the return on investment, when you see new projects coming in for $130 million, how long does it take to make it back? >> it depends on the market you are in, and that's a stage for how much you can spend. outside of new york city, th

could that in peril the m&a we've seen are the early stages of the capex we are seeing?ass of the composition of growth has changed, it would definitely include single-family housing. there's a lot of transactions. a lot of people own homes that are buying other homes and vice versa. but if you talk about marginal buyers, someone who doesn't own a home in new survey them, the demand levels for new single-family home from non-homeowners, about one third of long-term average. there is a real shift away from the desire to be a homeowner. housing is stronger and really has nothing to do -- it is weaker now and really has nothing to do with interest rate or mortgage rate level. will point toe that, but they don't come to the fact the mining sector is growing at a double-digit pace and providing gradually about as much employment growth as you would see out of subsector much larger sector like housing. >> last question is i want to circle back to the consumer. the fact both nordstrom on the online sales and amazon, which is all online sales, posted some issues, problems, shrin

spend a lotp, you of money on capex. you do shared buybacks. what is the long-term plan?o grow profits to over a billion dollars. you are talking about incremental $300 million. what do you want to do with that? of having the benefit a robust balance sheet, the strongest in the industry. we have a large property portfolio and our intention in practice over the last several years have been utilized a invested in those assets and recycle it. we are selling properties and investing in new properties where we can benefit from growth in key markets. we have a cash flow positive business and have been able to sustain that as we grow. we are going to do both and have demonstrated that over the last several years. >> really interesting conversation. thanks for being here. ceo of hyatt hotels, thank you for talking to us. >> coming up, john boehner's they get challenged, fellow republicans could prevent him from other turn as speaker of the house. ♪ >> republicans are confident they will hold onto the house this coming november. the prospects are less certain for the speaker of th

they're spending some money on capex, or they're doing acquisitions, which are very accretive in a low interest rate environment. so, i think you've seen a leadership change as of maybe july, where more economically sensitive stocks are leading in the s&p because they are going to benefit more by the economic recovery. i mean, it's still one of the worst recoveries since world war ii, but there is clearly an economic recovery. we can argue about the magnitude and the duration. but as long as the economy's getting better, you are better off owning the economically sensitive stocks -- technology, industrials, consumer discretionary, and even financials -- if the economy gets better and, eventually, rates start going up. so, those stocks are undervalued right now. they're at a discount to the s&p, whereas utilities and telecoms, reits are overvalued. >> i'm reading through this, and it's fascinating to the extent to which the u.s. think it's the only game in town. i think that's what scott was saying, it supports valuations of u.s. bonds and equities, but overnight, at least for us, the b

>> i'm looking for any signals capex is slowing anywhere in the economy, whether it be tech or spendingthe defense. because that will tell me what the rest of the year has happened. has anything scared a ceo from making an expenditure? i want to know i got my buck 15 on the s&p earnings and i'll be okay. >> it will be a steeper climb after this candy crush. the maker of the game after the bell missed expectation shares after hours ouch. guys. >> i'm going up the income statement, kevin is looking at eps. i'm looking at margins. i want to hear from people like wal-mart and nordstrom what they're saying about mar jen pressure, something i will be keeping a very close eye on in the coming dis and weeks and watching destiny xl. >> i'm also watching these gas prices, i'm fascinated at the fact they keep falling. the consumer is rather pessimistic. what is this going to mean ultimately down the road in terms of companies as well, it will be interesting to see diesel, jet fuel at the prices for four years for the summer months. >> amazing, time for back-to-school season for parts of the countr

they're putting capex plans on hold, they're putting job creation on hold to a degree, and that doesfor the world, potentially if it gets bad enough. >> although that's also converging with a europe still in stag population and draghi and the ecb are trying to figure out what to do about it. it's hard to figure out which of the causal factors is most real, and you're right, they certainly compound and make for an already somewhat grim situation. >> and that's the other thing a lot of these stocks i mentioned, the tech stocks have in common. the ones that are particularly strong in developed markets, in the u.s. in particular, don't rely so much on europe or emerging markets, are the ones that are running, are the ones that are giving these better-than-expected results, like your sales forces, for example. >> that's a great point. dominic chu wants in now. hi, dom. >> all right, guys. what i was trying to do was get a sense from the floor about what's happening here, and obviously, everybody's trying to get their books closed out and head out on their long weekend vacations here. but