einhorn's assessment of eog and pxd, so let's debate it. joe is a bull.usly owned both stocks. i think -- you still own pxd, in your portfolio? >> yep. >> and you have, at times, eog. >> correct. >> einhorn, right or wrong? you said yesterday you disagree. >> i disagree. i disagree more specifically with the names he's mentioning. to me these would be the survivors, if the apocalypse does come. the question becomes, does the apocalypse come to the oil market? where is oil going to be? commodity volatility is incredibly difficult to predict. where's the value of the u.s. dollar going to be? price of oil right now is $61. pxd is not going to $78, as mr. einhorn suggested if oil stays at 61. i'll be the first to tell you, if oil goes below 40, than mr. einhorn's thesis on a lot of the industry itself would be correct. >> so if the dollar is going to go up, if you think the economy's getting better, oil would have a trend or tendency to go down. >> mm-hmm. >> that will be a problem? >> i think whether or not oil goes down, i disagree with that statement. if o

einhorn addressing that. well, thank you for your perspective within the industry, and your mentioning costs that can be 20% to 30%. that was karen moreau. coming up, why the mcdonald's turnaround plan is leaving investors wanting more. ♪ alix: a happy meal for investors, a turnaround plan to boost sales. shortly afterward, s&p shot down the mcdonald's stock. what more are investors looking for from the fast food chain? i am joined by a fund manager with a fund which owns more than half a million shares of mcdonald's. what did you make of the announcement today for a turnaround plan? chris: a lot of it came in as expected. they really wanted to see more dynamics going on with the company in the way of menu changes, i believe. the division changes within the new segments make some sense. dividing it up geographically where they had established international and separating out the high-growth -- because the u.s. and the established international make up 80% of the profit, they have to give the concentrated effo

david einhorn misunderstood it completely. hope that's not the reason or the pred cakes for his position on the frackers. if it is, he got it wrong. i suspect that's a part of his argument. i want to explain the term structure and futures do not predict where prices will go never have never shall. >> when i look at this, the guys that trade this space sector specific in energy, they don't agree with how david got there, but they agree with his premise. they don't agree with the names he is picking. there are other names that you could pick. it seems to me the overarching opinion that he has is accurate just the way he gets there on his calculus people find a little questionable. >> steve, you and i have been in the busy a long time, sometimes you can get the idea wrong. you can get the thesis incorrect. if you get the price direction correct. you are the winner. i am jaundiced enough to understand that to be true. i think he is right on the thesis on the trackers, they are not as profitable and they have problems with earnings

petroleum is one of the stocks that einhorn attacked.rally, he locked in production, a good sales price, and that is good. there is a thing called a frack log, drills that are -- was that are drilled but not completed. bloomberg intelligence says there are about 4700 drilled uncompleted wells. they are waiting to be put online. the issue is the debt. they have a lot of debt. overall, we have seen a big increase in the high-yield energy sector. betty: thank you. always a great analysis on the oil industry. let's play it. >> we ran high case using last june's commodity curve and otherwise held -- betty: ok, no. that is not elsa from "frozen." there we go. thank you. ♪ [let it go] betty: the song from "frozen." if you are a disney fan and investor, you will be happy with that movie. we will talk much more about disney earnings. ♪ ["let it go"] >> there are now just 13 minutes until the opening bell. today's countdown is brought to you by invesco. ♪ betty: let'sbetty: get back to you bringing the important stories before the ball. j margolis

david einhorn and the list is very long. we won't go through it all right here. one of the investors making pioneer resources fall like a stone. see why and see what other stocks these folks are moving. big change at cisco. john chambers leaving as many expected this summer. we will introduce you to the new ceo and tell you what you need to know. that stock cisco is up about 27 1/2% over the past year. can the new person in charge take it to the next level. mannedy is off today, but kayla is with us and we will get downtown in a minute. we start with a slew of investing titans as i mentioned on cnbc. warren buffett with our becky quick following berkshire hathaway's meeting in omaha, nebraska. wide ranging from the stocks he is buying to market valuations overall and becky is with us from home ha. hi becky. >> good afternoon, everybody. why don't we start with what buffett is buying or what he has been buying recently. he told us that he had been buying more shares of ibm in the first quarter. that will be public soon. there will be plenty of naysayers to plow in

some of the other fund managers have been sort of vocal that they disagree with einhorn.t to be clear on what the filings do for us because i feel like we always need this disclaimer, right? they come out, they give us a snapshot of where the holdings were at the end of last quarter. they could have tweaked them to some degree since then. you don't know. alix: and they don't just disclose short positions, either. julie: or options positions. there is a bit of wiggle room for these guys. nonetheless, when you are talking about someone like druckenmiller or someone like a berkshire hathaway, whose filings are starting to come out, they tend to be more buy and hold stocks. and dan loeb has a reputation of being a trader. if you are one of these people who try to follow and mimic what these investors are doing, there are a lot of caveats that you have to take into account. these are some of them. you have to know the stock worth investing. the particular person involved. you have to, you know, sort of track them quarter after quarter. alix: to your point, i looking at pioneer

stephanie: we have david einhorn. he does not just dislike frackers.e was calling them mother-fr ackers. ♪ ♪ stephanie: welcome back. i'm stephanie ruhle with my special partner cory johnson. it is time to bring you up-to-date on the top stories. first-quarter profits rose at europe's top bank. securities unit increased and its divisions for bad loans fell. it has been cutting costs to boost earnings. it may still move its headquarters overseas. british politicians have been pledging to raise taxes after thursday's elections. amazon prime customers will be able to access movies, tv shows and music on jetblue planes. it gives amazon access to a captive audience of potential customers. passengers who are not amazon prime customers can sign up on board for a free 30 day trial. and the highest-paid female executive in the united states is apple's retail chief angela aaron. bloomberg figured out that she has made a most 83 -- $83 million -- almost $83 million including a sign on bonus. cory: there has been a lot of taxes. bill grossman says the super cycle

einhorn was criticizing. is he talking his book?dding new information, or did you know already everything he said? vince: i am not sure we chartered new territory here. we were down 50% on the overall commodity. the names in general are elevated relative to historical valuations, but but that seems to be -- tom: are his investor comments appropriate? vince: valuations are what they are. you are not buying these names for cash flow, you're buying them for replenishing the assets for reserve growth. olivia: what tom is getting at is that our toward a question of the day -- we asked you, what you think -- is activism good for business? david einhorn has come out swinging, saying it is doomsday for american fractures -- for american frackers. tweet us @bsurveillance. ♪ tom: good morning, everyone. "bloomberg surveillance." let's get to top headlines with olivia. olivia: the imf is talking about a debt cram down in greece. the imf had told creditors that it may cut off support to greece unless greece writes off significant sovereign debt

energy was singled out on monday during the frac attack by david einhorn.ing to understand his beef with this particular company. >> mother fracker. but everyone else will know it as pioneer natural resources, ticker pxd. it's the second largest shale oil producer behind eog which is the father fracker. >> eog, father fracker. i bear no animus against einhorn, he directly attacked me as the primary advocate for that stock. seemed prettied a hom nam. so it was a little gratifying to say the least when the "new york times" wrote last november that ion horn's green light capital ultimately covered the short position of 67 bucks, writing that the bet was and i quote ultimately unsuccessful. it was a good cover to a terrible trade as keurig tripled. i have lost my enthusiasm for the company after the miserable quarter that came out tonight. i have said play this one through coca-cola which has a large stake in it. yet, even after keurig's huge decline it's above where it was when einhorn shorted it. einhorn revealed he was going after amazon as the next target.

david einhorn takes a shot at producers. at what he said yesterday at the sohn investment conference. david: this is less than half of the $72 where the stock trades. it is dramatically overvalued even if they have a 11 billion barrels of resources and we see a return to prior peak prices. the problem is that oil fracking is high cost. mark: alix joins us. alix: it becomes a question of in part, valuation and this is something that david einhorn talked about. mark: he took them to the woodshed. alix: the prices are up today as well. some analysts are talking about this. barclays says, for example producer and expiration shares are pricing in a $95 barrel of oil, and they may need to see 50% changing if they do not see the prices move their way up to a different oil level, and it raises a question. you only see this because they have dividends and juicy cash flows, but for the sort of expiration and explore companies, you own them to monetize production later. they are going to get a lot of oil out of the ground later, and th

julie: as opposed to a torso sitting at the debt secured one of the things that emerged after david einhornthe mother "motherthe fracker." druckenmiller, each of them taking on a case, empire natural resources specifically, taking stakes and the one that einhorn specifically targeted, druckenmiller also took a stake in eog resources, also some of the other fracking companies. pioneer valued at 500 and $18 valued at $518 million. dan loeb reduced some of his phillips 66 holdings, he bought into a company called clayton, soreness sort of a mixed bag as it tends to be. in terms of philip 66, that is a refiner, so as oil prices rise, that gets squeezed. to make a distinction between that and the shale, that will be a different beneficiary. julie: right, talking about the whole energy complex not just the fracking. jock and miller had made some of hadother -- druckenmiller already made some of the other comments. just to be clear on what the filings do for us because i feel like we always need this disclaimer, right? us acome out, they give snapshot of where the holdings were at the end of last

einhorn is a titan and smart guy.ieve the fracking revolution in america is still extremely young. like any revolution, you'll have fits and starts. this is a long-term growth play, i believe. charles: i agree with you. we should let the audience know, "after the bell," we had a couple of these energy plays that reported, they missed on the top line. eog beat on the bottom line. so far the action is mixed. i like ibm. the place to be. they reinvend themselves more than once. if you want an old dusty stock, ibm. when it comes to robots, we have no problems, they want to mow our lawns. have you lost your mind? they're managing our money. my panel is quaking in their boots. ♪ ♪ charles: all right. looks like the industry might be saying, if you can't beat them, join them. i don't know if you guys saw them by now. charles schwab, coming on real strong. realswe also know the robo advisers. robo advisers have taken $18 billion under management. interestingly, one would think robotic thinking, they'd all think the same. take

he responded that david einhorn, the hedge fund manager.s that is in trouble. here's what he had to say. our view and mr. einhorn's view regarding the assumption of analysis and conclusions differ materially. he said our assets are among the very best in the domestic oil and gas arena. the economics of the wells are very strong. in sum what they were saying is crude prices are only one input to assessing the business overall and they think that einhorn may be relying too much on the price of crude which has fallen dramatically in the last year. >> kate kely. thanks so much. i think the stock of pioneer is down 1%. what david einhorn calls the mother fraktcker. >> it is 8:00 a.m. in seattle, washington. 11:00 a.m. on wall street. squawk alley is live. ♪ ♪ ♪ ♪ >> welcome to "squawk alley" for a wednesday, joining us from pallet or, roger mcin anain a mcnamee. markets try to claw back from the lows of the session. first up microsoft considering buying salesforce after the company was approached by someone else about a possible acquisition. mic

. >> the latest one, david einhorn green light capital. notable moves, new positions being reported in general motors. 9.5 million shares there. another consumer theme, macy's about 1.7 million shares. then -- bank of new york melon. ingram micro. [ audio problems ] 7.4 million shares. marvel technology, emc and time both there. kettle metal and green dot completely out of those. einhorn, one notable trade we want to talk about here is that and alley baba. interesting moves. dan lowe at third point got oust his entire 10 million shares stake as of last quarter. 3/31. tigers tiger global and tiger management did bosnia their stakes in alley baba. two-way traffic there. we'll tag out with what is happening with mcdonald's. if you look at the intraday chart there was possibly talk about activist investors maybe being involved with this. we haven't seep a whole bunch yet. janay partner an activist fund did take a smaller stake in mcdonald's. but we haven't seen a large, large player as of yet. mcdonald's, you can see there a bit of a bid-day p

>> well i love david einhorn and he's a brilliant investor and he does great work. for me though i would rather bet with david on the long than a short because you have sort of the two elements. you have the dynamics of the short and then the underlying story. so it remains to be seen if the long-term -- i think to see this unwinding the way he expects. it's been hard to play his shorts. another one athena there was green mountain and so as brilliant as i think he is this is one that i probably wouldn't follow and i think they will probably trade close to -- if oil trades up it would be a long time to see this unravel i think. >> it's sort of an interesting time to say you're going to go and short a name like a pioneer. in the course of all this the companies have already announced plans to shore up their balance sheet whether it be selling off assets or doing some raising of debt or what not. >> i said that. a huge run. look at whiting. this is cyclically and where we've been in this rally. an darko just reported after hours. it was a classic relative value play an

david einhorn is amongst one of the speakers. will be live. >> saudi arabia is to open its stock market to foreigners from june 15, giving investors direct access in the middle east. joining us now in saudi arabia is our guest. wonderful to have you on the program. give us a sense of what this good unleashed for that markets. the moment it looks only about 1% of investment is from foreign investors. how they could it become? >> it could become quite big. we expect that over the next five years. it could reach all the way to $40 billion. that could be 10% of the total market. it is important. once they join that is going to lift the importance and inflow of foreign direct investments. >> when do you think of that could be accomplished? how big would be relative to anything in existence? >> is probably going to happen between 18-24 months after foreign investors begin to invest directly, which is june of this year. evidently saudi arabia stock market is extremely important. it is one is the biggest stories in the emerging market. i

the: david einhorn called players mother frack spurs and that they are not producing the free clash for -- free cash flow they would like to see. david: at think you have to look at the opportunities that are in front of you. one thing we talked about on this asset base is we can still --nificantly crow this asset significantly grow this asset. whatever the position this is a good time to get into these assets. alix: when taking a look at the oil price, do you think the next move is up or down as we trade below $60 per barrel? think -- david: i don't think any of us could predict that if we wanted to make sure we could strengthen our part leo that critics -- that could withstand fluctuation in price from either direction. that is why we like a diversified asset lease. it is all about managing risk. alix: thank you so much for joining us. buyout.lations on your david stover, ceo of noble energy on its $2 billion acquisition. that does it for the first market day. we will have many great days coming up. the wonderful evening. -- have a wonderful evening. ♪ . . announcer: from our studios

alix: what do you have to say to david einhorn?ek he came out and said it players were mother factors not raising the cash flow that investors want to see. what do you think about that and >> you haveto him? to look at the opportunity in front of you. one of the things you don't live with this asset days is that by managing cash flow we can still significantly grow this asset. we are in a position that is one of the right time to get into the asset right now. taking a look of the oil price, is the next move up or down? >> i don't know that any of us could predict that. i think we wanted to make sure that we written our portfolio with premier asset that can with dan actuation in either direction. that's part of the reason we like a diversified out to manage that risk and in this business is all about managing risk. indeed. david, congratulations on your buyout effort. a $2 billion acquisition. that does it for the first "bloomberg market day." we will have many great episodes coming up. have a wonderful evening. ♪ china's great slow

but pioneer natural resources selling off, down nearly 2% after david einhorn said the company is worthe. he was speaking at an investment conference in new york. you can call chuck robbins the new cisco kid -- the computer networking company named the veteran executive chief executive beginning this july.

i'm thinking about exiting walmart. >> steve brought up einhorn's comments. he's right. look at where it bottomed out. bottomed out at 130 in december. topped out at 180. 50% correction of that move we just saw is effectively 155. guess where we made a low. 155. risk/reward, i'm not saying it's going low but risk/reward sets up really well. >> with today's big reversal we're in the midst of the third longest bull run. what's this magnitude. we've crunched the numbers. jonathan should we start getting more read at this point? >> i don't think so yet. to get a view from where we are now let's look at some of those markets you talked about. the first market is the granddaddy of them all the '87 to 2000 bull market which ended with a tech bubble. we started with the crash of '87 that led to a 13 year, 580% rally. and what we want to focus on is right up here. what you notice is what we call distribution. started to see stocks churn on the 200 day moving average and wasn't until the 200 day rolled over that you see an end to that bull market. let's go to second longest bull m

also reporting results, pioneer natural resource is, they focus david einhorn's critique at the investmentnce yesterday. reported today an unexpected loss. mel watt, electronic arts reported fourth-quarter sales and earnings that beat analyst forecasts.

pioneer was not the only fracker that einhorn singled out yesterday. about eog which he nicknamed the father fracker. resources and others. those two reported earnings but after the bell we will be hearing from a bunch of others including dan lobes portfolio. claims all american and others. >> another long night for kate kelly. over the past month, the dow is up 1.3%. that is paltry compared to the gains around the world. even egyptian market is up nearly 3% in one month. even with gains like that opportunities abound around the world. let's bring in paul, portfolio manager of the huntington global selects market. welcome. going through the list of what you like tyland taiwan, korea, indonesia and obviously all asian nations. there is a lot of fear about china slowing downright now. if chinaic tas a turn for the worst, do you revisit what what like or will it bring down the region? >> china is a major country to watch. my concern is the equity markets in china are ahead of the economic realities. it is soring. they are up 13% year to date or something?

but this week at the soehn conference, they came under scrutiny by david einhorn and pine resources and eog, not on the same side of the discussion that he had and watch the frackers they had interesting weeks given the conference. >> dom chu, thank you for that. and we have to go to brian where he tracked oil and what is going on with the oviox and is there volatility in the oil. >> and when you see the kmomidities -- commodities, and when you talk about the oil volatility index, it has volatility. when it broke above 28 and into the 50s, that was a extreme sphere, people were panicking and getting out of the oil and now it is looking to be trending back to 28. why is that significant? if we get less movement in the price of oil, the hedgers and the airlines, the petroleum makers and the hedges, they will know where to hedge them and that will put a bid behind the oil so i love seeing oil volatility to come off the highs to see a buyer there. but in $58, $58, we'll see if that will hold. >> and mike you're looking at an integrated in oil this week. >> don't feel like crude has a whole

conference, oil and gas fracking companies came under intense scrutiny by hedge fund manager david einhorn. and pioneer resources and eog, you want to watch the frackers, those guys had some interesting weeks. given sohn and the conference. >> you have to go to the ever-emergent brian sutland. oil volatility, what's been going on with the ovix and is there a direct correlation with the oil equities? >> when you see oil move, you'll see it reflected. the refiners have done well. but when you talk about the ovx, the oil volatility index it has a lot of fear indication. when it broke above 28 and it spiked up into the 50s here that was extreme fear. once we broke the 28 level, that was people panicking, getting out of the oil markets, now we've seen it come off its highs here and it looks to be trending back to 28. so why is that significant? because if we get less movement every day in the price of oil, the real natural hedgers, the airlines companies, pet lum makers, plastic makers that hedge using oil. will start to get back in the market and that's going to put a little lift behind oil, a

at 12:00 we will stream david einhorn's presentation live.soon as david einhorn get on the stage and get behind the podium and utters a civil -- a syllable the stock moves. it's all very entertaining. we will have barry rosenstein, a very well-known activist investor. and think about it just a day after carl icahn talking about the value of activism kind of taking a jab at larry fink, it will be interesting to get very resins point of view. barry rosenstein;'s's point of view. betty: herbalife earnings are out. will he talk about that at all? stephanie: bill ackman will never miss an opportunity to beat that drum, and so he will definitely cover herbalife, but what else he will present, we don't know. betty: what else could he say about herbalife that he has not already dead? -- already said? thank you, stephanie. it's all starting at 1 p.m. eastern time right here. still to come from a very -- an end to a very long road for cisco's john chambers. after 20 years he's stepping down as ceo. ♪ betty: back to some news that broke earlier this mor

that was part of david einhorn's presentation.started to key in on what they said and presentations that were not necessarily accurate. sometimes they tell you what you want to hear. it is our job to interpret the answer -- the information. it is hard to find good management. betty: you have been doing this for decades and you do such a great job. how do you know when something is up? they will give you their best. they do are wearing a suit and they will see you. david: i would not say we are the best psychoanalysts in the world are at that question, i would have to be able to analyze people's behavior. there are behavioral specialist that tell you whether they are telling the truth or not. we do not use those services but they're out there. you just build a relationship. third avenue holds onto stocks on average for seven years. when you are with a company for that long, you really get to know your management team here they like the fact we are in their security for longer time. we are not just sitting there worrying about what

hedge fund manager david i horne -- einhorn is asked -- scheduled to give a presentation.ring their latest ideas but we will take you live to those remarks as soon as they begin. stephanie ruhle is at the investment conference. julie hyman is in the newsroom to follow market reaction. stephanie, let's begin with you. how much

david i am worn came out -- david einhorn came out against it. is it the timing?i have not had the time to go through david's analysis of it. it certainly struck a nerve. these companies typically are accosted for having poor return on capital and poor investments. i would argue though that in this case the core of the shales are good investments. what you will find is that i would've thought that you could make the argument a year ago and pointed out that some of the places are good investments. what the market is doing is sorting that out right now. they are saying something like the mississippi line or tuscaloosa marine shale is not good investment. the core of the permian i would argue is going to turn out to be a good investment. one of the keys to that going forward is going to be technology. these new advances in technology are starting to see people like resources taking 20% to 30% more of the reservoir for low income of the cost. that is the argument against. erik: in the meantime, oilfield services are costing a whole lot less. lloyd: that's right. that

some of the other companies we heard about earlier included fracking companies, david einhorn comingstrongly with eight there is case on those companies, saying their spending too much money, that they have not really adjusted expectations for oil and natural gas prices. in particular, he called out pioneer natural resources, whose shares have been down sharply today. on the bullish side, we heard from barry rosenstein calling out walgreen and qualcomm as his two long picks for today. much more is coming out today on what the investors do and do not like. emily: thank you so much for breaking it down and thank you all for watching this edition of "bloomberg west." we will see later. -- you later. ♪ . mark: from bloomberg world headquarters in your, i am mark crumpton. this is "bottom line," the intersection of business and economics with a main street perspective. to our viewers here in the united states and to those of you joining us from around the world, welcome your it we have full coverage of the stocks and stories making headlines on this monday. we begin with greece racing aga

. -- pimm: he believes that david einhorn is wrong. olivia: he is not calling him a mother frack are. -- fracker. pimm: no. up, we and coming discussed the u.s. senate to vote on the trade bill. ♪ olivia: welcome to the bloomberg markets, i am olivia stern. pimm: and i'm pimm fox. new report says that inflation is well under control, and unexpectedly fell last month, and the consumer price index fell in after april. the big reason is lower energy and food prices. a report today says that fewer americans than expected filed for unemployment and if it's. -- an up limit benefits. unemployment benefits. and sales picked up in march and kol's,or calls -- for kohl's, and before today, the stock was up 28%. bombardiery a -- cuts a most 1800 jobs. those are some of your top jobs. let's go to julie hyman with a look at what is happening in the markets. wanted to check on some of the big movers in today's session, and we have been talking about kohl's and also, jcpenney's shares were falling sharply coming out of the earnings report. just like w

over a week ago, david einhorn had a presentation calling them mother fractures -- frackers.says it's time to go negative on names like pioneer. pierre: i don't trade equities i always listen to the earnings call to have an idea of their guidance and to double check my numbers about production growth in the u.s.. helped the industry was by low interest rates and the fact that they could pump up the money. i don't think prices will go up a lot. i don't think interest rates will go up a lot. stephanie: how does the timing on a rate hike o affected you i don't think it's significant and terms of supply and demand but it's important to look at the impact on the u.s. and stability. we have to follow it but does not seem like we will go to high rates soon. stephanie: what is the number one factor that matters most to you right now in how you are investing? at speculation. the market is positioned for a v-shaped recovery but i don't think we will have one. we also look at inventory data. you cannot look at only one thing. stephanie: what is your biggest fear right now? i am open-min

einhorn that knocked the stock down. you want to own the independents.t people are drilling down on and saying they don't like. eog, fine company. steven in california. steven. >> caller: yes, sir. >> steven. you have jim. >> caller: i would like to know what's going on with kraft. i own some shares. a bunch and i would like to know what is going to happen. >> well, it's merging with heinz, you're in a great situation. they have warren buffet's blessing. 3g is in there. they'll take out and grow the company. i wish my charitable trust owned it. we have been talking about it so much. but kraft is real good. fiat chrysler is killing it and i don't think it's slowing down any time soon. much more mad money ahead including my earnings exclusive with the ceo of salesforce. but does the king of the cloud even need a deal? and it's a rocky road for retail. don't think about shopping this group until you get my take. plus a brand new edition of the lightning round. stick with cramer. there is an ancient rhythm... [♪] that flows through all things... through rock

we had oprah in the house, diane sawyer, morgan freeman, david einhorn, bill loeb, bill ackman.re there. i was there. my partner erik schatzker was there. board funds the entire event. so any money you are giving to robin hood is on top. last year alone, robin hood from the00 million public and an additional $70 million from their board alone. like to hate on the industry, and we can because those are some really rich guys. money togave a lot of a really important cause. pimm: and there was a $25 million anonymous donation as well. stephanie: specifically for technology and education. number is not even right. it is 23%. if you are in new york, tack on another 14%. it is a private equity, not a hedge fund. pimm: i want to thank you very much. stephanie ruhle, coanchor of "market makers." let's go to julie hyman for details. julie: bloomberg television is on the market. let's to -- let's take a look at the action on the street before we look at what is going on with options. stocks are very little changed across the board. a lot of reaction to what is going on in the bond market.

. >> it's been just over a year since david einhorn launched this attack.th him over the past year. clearly, there is still huge short interest in the stock. >> at first i did learn who he was when everybody started texting me and said einhorn doesn't like you? i thought he did the scarsdale diet honestly. totally confused. i learned his story. i appreciated the chance to talk about the market. >> have you met him? >> no. he was able to give me a phone call after his first sort of short show which was almost a wall street meets mean girl. videos of me. >> in fairness you were comparing your company to amazon. >> yes, the business model is very similar. we are much much smaller. more profitable in many ways. but very similar business models. the software is the story to go into to get the results. most doctors pay for their software and get their own results. our doctors get the software free and pay us for the results. that's the similarity in the business model. it's a much better model for cash-strapped hospitals and medical groups that can't afford multi

do i think david einhorn is correct about $78 for pxd? no, i don't.pxd is a survivor in shale? yes. do i think they're a prime takeout candidate as rich and i talked about the other day, he disagreed with me. yes, i do i think they're a prime candidate. but ultimately the right now the risk/reward when i measure it there's more potential down side in pxd than upside. >> so i can be clear, you made the case at sohn or pa seeno if oil goes down to $40 a barrel. that he could be right. about some of the names. >> absolutely. >> are you saying that now you think as well we're going to go from 60, wherever we are today, 60 and change back down to 40? >> i think that i've spoken with a lot of confidence about where i thought the price of oil was going to go over the last six weeks. and that was higher. i no longer have the same degree of confidence that oil can continue to go higher. does it go down significantly? i have no clue. otherwise i'd be short. i don't know. but i do know that a lot of what david said the other day about the fracking industry is co

big fund managers cut their stakes in the most recent quarter, including the cooperman and david einhornwho do you follow here? 240? that's practically a double here. >> i think it is, i think it's expected, the call talked about it being a long-term investor in apple. that's what he's looking at. he's not looking at the next three to six months, he's looking into 2015, 2016, so when with that confidence, i like the letter. i think what he states in the letter is warranted. if you own apple, you feel good about owning apple. if you don't own apple, you consider a point to enter or reenter if you've owned it in the past as i have. i've gotten out of apple personally, i've said i'll get back in at some point, not necessarily sure that the time is now for me, but i think exactly what carl stated in terms of their ability to keep growing that top line is what you want to focus on. they've been consistent with it, they have a proven track record, and that's why ultimately, go as high to $1.5 trillion valuation, i don't know. >> in case you have not got an chance to read the letter, which by t

is david einhorn right in his takedown of stocks in that space? joe theerranova says no.ebook's ceo mark zuckerberg have too much power? one shareholder thinks so and will be here to tell us why live. we begin with the market stocks

. >> what did you make of david einhorn and many folks talking about pioneer, talking about eog, talkingcks to get cut basically in half? >> everyone has their point of view. to the degree that i can listen to people in odessa and midland, i didn't do it personally but we had someone do it, that they can make money at $55 a barrel, the other part is the equipment suppliers, their prices come down substantially so the rates of return on certain investments are good. this is what makes the market. i don't have a particular point of view. it's very hard to make money out of currency, commodity-based stocks. but we are looking at those that are going to be taken over. there is a benefit to somebody in tanzania in regards to energy? once it's announced, we'll participate. >> we'll take a quick break, come back, give you your playbook for the final three hours of this trading day. let's take a look at your credit. >>i know i have a 786 fico score, thanks to all the tools and help on experian.com. so how are we going to sweeten this deal? floor mats... clear coats... >>you're getting warmer...

. >> one of the things that david einhorn, who i respect, hedge fund manager made a point around thee that lehman failed. he said 35% of lehman's net tangible equity was in three commercial real estate investments, so lehman essentially became a reit with an investment bank on the side and that hurt a lot of us. and because we couldn't compete, lehman couldn't compete with the big banks, the big banks had trillions of dollars in deposits. it was just a slow-moving train wreck. that many, many in the leadership at lehman and around the street just didn't catch it coming fast enough. >> andrew, what about this notion that dick fuld simply waited too long, that the writing was on the wall, others made deals, maybe some had urged him to do something and he simply thought a lifeline was going to come and it never showed up. >> i actually don't believe he ever thought a lifeline was going to come. people talk about the phrase too big to fail, i don't think a when they were making the decisions to buy archstone or take on risky bets they thought, we'll shoot the moon and see what happens, i

. >>> up next, why one student's theory on tinder has big names like david einhorn and bill ackman swipinght. interesting. >>> but first, rick santelli, what are you watching today? >> well, we're definitely watching the yield z athey creep up to a significant level. also looking at something i don't look at much, labor market condition index. it's so much weakness today when there's so much goodwill about friday's numbers still in the air. more after the break. a simple question:meriprisee in retirement, will you have enough money to live life on your terms? i sure hope so. with healthcare costs, who knows. umm... everyone has retirement questions. so ameriprise created the exclusive confident retirement approach. now you and your ameripise advisor.... can get the real answers you need. start building your confident retirement today. the secure cloud services the network that monitors her health. that store her genetic data the servers and software on a mission to find the perfect match. and the mom who gets to hear her daughter's heart beat once again. we're helping organizations transfo

the conference will feature david einhorn and bill ackman. let's get you of the top stories. the u.k. election and the results could change britain's relationship with europe. joining us now is a policy analyst. a very good morning to you. you say there will be -- it will be of defining election in relation to the eu. one but assume that of labor prevails labor being anti-referendum, it is the status quote. let's look at the labor scenario first. what happens if labor cobbles together some sort of government? guest: there would not be any referendum in 2017. this is not likely in the next parliament. in the sense of the policy, they are similar to the conservatives. they would try to limit the impact to welfare. they would be for expanding the single market. in terms of the substance, a lot of the policies are very similar. they would not want to bring it to ahead by having a referendum. mark: how are the conservatives progressing before the election on the reforms that cameron has pursued ahead of this referendum? we have seen progress being made. we don't hear about it on a

julie: this is not normally a company we would talk about but it was highlighted by david einhorn yesterdaystment conference where he targeted the company and said he doesn't think it's a good investment. and the numbers as you see don't look like they are meeting expectations. the adjusted loss per share is three cents. analysts had been looking for earnings per share, a gain of six cents. the company's oil and gas revenue coming in well below estimates. the estimate was $709 million. the company says it's capex cost will be declining. pioneer also saying the sale of its eagle ford midstream business should be completed at some point in may and saying in the statement today, the ceo commenting that once that is complete, the company should be able to move forward with other investments and do drilling on new wealth. on balance, does not look like a strong report and it looks like we see that reflected in the shares which are pulling back by more than 5%. alix: earnings from groupon are out. cory: analysts were wrong, big deal because analysts are often wrong. the numbers are worse -- the a

stephanie: david einhorn are you watching? be back in a few talking shiny stock market. ♪ stephanie: the chinese stock market has been on a tear since the middle of last or but how long can the bull market run? recent speaking with the ceo of capital management specifically investing with china and japan. china has clearly been working. when does this end? >> valuations have increased immensely. trading in the high single digits of august of last year. they are now trading at 25. if we stripped down the state owned enterprises, valuations could be as high as 40. we are very close and cautious about the market continuing. i'm hesitant to say bubble yet. i think we have more to go. the momentum is a mess. we have trimmed our exposure a great deal and are a hedge fund that hedges. we are doing far more than just speculating on the market flying higher. we trade with a lot of value. it was obvious last year to be long in china. right now, i think it is not for the faint of heart it upside prices are far more limited. erik: how per

a lot of company, a lot of brokerages, going up and down on the oils with an unsteady group and einhorn'sonitions about the frackers continue to churn through the hedge fund community. >> not often even in these days when you -- it's always worth mentioning. >> you may not like the oils but this is a great american company. >> let's move on to another american company. >> yelp. piper says this one is not going to happen. they lowered to 46. yelp! yelp yelp! >> there it is. it's coming. >> i think the speculation is afteria after yahoo disposes of. >> aliblebaba is first. though there's no plan under way at yahoo to yet separate that out. >> i come back david. people are still talking about the verizon/aol deal and the coming consolidate action among portals and what tim armstrong will do. this is a natural property. grubhub is a natural property, we know about these unicorns to have a vertical where you literally, you know expedia is out there. expedia is a good company, trip adviser, you could make it with one butting you could travel. that's kind of what people are talking about. whoeve

last week david einhorn, he came out and talked about how the mother fracker was pioneer, and he's talkingbout fracking being -- just not economical i'm going to be kind about that. he said pioneer eog was the father fracker, this is obviously a play on word i'm not familiar with. this morning rosetta gets a bid from noble is regarded as a smart company. this bit -- interestingly enough rosetta's assets are next to the mother fracker, which is pioneer, and right next to the father fracker's assets e.og. i don't know if can you say eyen morn -- the thesis is hurt by -- >> where are they? >> eagleford and permian. i used the frack term loosely, but i think we ought to pull back, because it's a morning show. people are in school. >> people come up and talk to me so we don't want that to do that. >> this is the beginning of what i regard as the real takeovers. >> today it's up 30%. >> noble has a lot of interesting acreage in the nigh obrara. this is the -- i did not regard the world dutch as any good deal at all. this is the combination in the fracking patch, and so i didn't -- i would love t

the investment and pioneer is striking given the drubbing that the stock has taken since david einhornit the mother fracker and the prospects in the environment. perhaps he was thinking that the stock had bottomed and it's up more than $20 a share from the december lows. even with the haircut from the last days to two weeksment it's not just stocks that are benefiting from the rally. gains of more than 37%. just as retail prices have risen to about $2. gas feels cheap right now as opposed to last summer. diesel known as gas oil and crude are up. west texas intermediate which is the benchmark crude is not quite as strong but with 11% upside it's still in the top five. whether u.s. crude bottomed is the question of the moment. the market is decided on that. some like goldman sachs believe the recent upside encourages new drilling and delay the rebalancing. they are bullish and suggest the best days may be behind it. >> kate thank you. have a great weekend. >> thank you. >> net flex here crossing the $600 mark for the first time ever. one analyst said the stock has nearly 50% more upside

setting the tone on monday was david einhorn with his huge short on -- i should be careful.'t elaborate on what his own book was. one would assume he's short pioneer natural resources and other frac'ing companies. >> that was his point. that was a controversy throughout the week. you had other people just taking a cautious tone and saying we don't quite know what's going to happen. we feel like the fun may be over, the party may be ending in terms of the equities ral. we're in the recommending a lot of long new positions right now. people talked about their existing positions. you had bill ackman giving us a lesson. it was egg heady stuff. there was a young generation manager that talked about ukrainian bonds. it felt like this was a dearth of ideas. >> their whole view on it it's like a liquidity play. it's not based on the individual company per se or the munn fundamental fundamental. >> right. >> to them it's this idea that all the funds will go down. >> europe is involved in dqe. >> and china as well. >> and japan, et cetera. >> china has shown real uncertainty in the la

you have the frac attack from einhorn. that's getting all the attention.he etf flows lately and for first time ever, mom and pop are putting more money into etfs than they usually do into mutual funds. okay, now, there's still a lot more money in mutual funds than there are in etfs but some are saying this is a start of a trend. you never know. finally "the avengers" have been kicking it all day. it came in at $187 million for the weekend, second only to the first "avengers" back in 2012. of course, it faced stiff competition, you had the mayweather fight. all sorts of playoff matches, the kentucky derby, you had great weather. a lot of people are saying you shouldn't read too much into that. anyway, "avengers" seems to be popular. i think people are looking at the film clips and the pictures. >> i don't know who's complaining about that. the second best opening ever. that sounds good to me. >> i mean you'd take it on a great weekend and everything. you figure this thing is going for a few weeks. >> likely they didn't know what was going on this weekend wh

david einhorn, of the mets came out against some of the oil companies yesterday in a conference. plates across america is alligator meat. "the wall street journal" reporting that alligator prices have tripled in the past three years. >> no. >> that's okay. >> you know what alligator meat tastes like? chicken. just like everything else. >> mother frackers. >> why doesn't chicken taste like alligator? >> brian sullivan, thank you very much. >> did you hear him speaking of dangerous things in the water? there was this australian surfer attacked by a shark, had his arm bit. you know what he did? he used his other hand punched it in the nose several times. shark scattered. >> well that's true. do that. >> i advise you what to do. >> and dogs. up next secrets of the rivers family. melissa rivers joins us. so i'm having birthday brunch with my family. when my husband hands me a present. a galaxy s6! so i call my mom. i have verizon! i don't. she couldn't really hear me. i tell her how much she means to me. but she thinks i said she was always mean to me. i could hear how happy she was.