but for the fang stock, the market's down. okay should the market be down? should multiples be where they are now? they have room to grow, and the companies that are in the u.s. that are -- that are preparing themselves for the next five, ten years of growth should not be underestimated. >> this was a very interesting and somewhat counterintuitive way, josh, that mary erdoes looks at where the market is not so much should you look at the fang outperformance, but the fact that all of these other stocks are undervalued should they be down as mary said given the current environment we're in don't focus on a narrow number of stocks. focus on the big pond, where there is a lot of value to be had and maybe that's a better tell on where the market truly is >> yeah. i'm actually surprised you hav as good economic growth as you have, good as a consumer picture as good as a climate in terms of optimism among small business owners and really don't have performance where it should be, but maybe that's -- hate to say second-half story, but maybe that's what happens. >> d

what goes down because of one fang member can go up because of another. which brings us to the stock of amazon now everyone was worried about this prime day breakdown that happened yesterday it continued today, but not the breakdown, but the prime day and the stock initially, whoa, it shed 22 points and it looked like a real ugly day coming. but then midmorning amazon told us that prime day sales so far are bigger than ever meanwhile a fee adviser said spending jumped 89% in the first hours of the event holy cow that helped turn around the whole group. and a major reason for the rebound in netflix was pin action the other way and all this reverberated well beyond fang. netflix is a subscription site so every subscription oriented stock came back. apple had been down a buck costco shed a buck boom, they all returned to the positive when netflix opened down hard this morning, i was on "squawk on the street," and i wanted so badly to say buy it. however, it's very hard to say right at 9:30 ignore management's own verbiage about how things were less than stel

if you get away from the fang and say, this is fang stocks, it's not the entire marketplace. >> i hope, i think we're all saying this, i don't think this is unhealthy at all. i think in the -- i don't want to make this about facebook or netflix. i think in both those stocks case -- i've been out for facebook since cambridge analytica. i don't like how management can't tell us what it costs to secure your data they haven't told us, and they told us the other day, they don't know the product comes off the assembly line how to do it netflix, everything tells me it's this great contact play they're taking our data by the way, and making these content pieces which to me, outside of a couple don't make this a content company. not like disney. >> i believe if i read your tweet today, i'll see you at 330. i assume you mean $330 a share >> netflix, at a time when we're grappling with how the media sector is going to do it, everyone is going after them for their success. you're right >> my point about facebook wasn't about facebook. what does it say about the structure of the broader market if a

. >> the so-called fang stocks, facebook, amazon, google and alphabet now and maybe a couple others, facebook and microsoft, they've seen the lion in the marketains for the last several months. is that a good thing or a bad thing? >> i suppose that depends on your perspective. you've owned some of them or all of them and that certainly has helped a you tak a broader perspective. i think you're always going to ve a bell curve and you'll have winners and losers. five or six companies have been winners for a number of years now. you know, i think we can talk about possibleort of rising risk, if you will. you'ree seeing m sort of market value get concentrated in a few names and that's the fear side and the flipside is look at the fundamentals. the earnings are growing like crazy and they're really sort of backing up investor excitemenla with d and cents. as long as that continues we know these names will contiroe to nicely. >> clearly, it's not lost on anybody that these stocks are seeing good fundamentals, and a lot of people feel many of them are very expensive rig now. so when you sta

that's not fang. 61% of the stock and energy are up that's not fang. 56% of consumer discretion, yes,zon is a big help there it's not -- it's only one of several of them. as far as where the s&p 50000 is going for the year, look, some of the sectors that are up there, you could make plenty of money and not be in fang this year as oil and gas is up, russell 2,000 small cap is up dramatically aerospace and defense is up nicely even the broad health care sector all these sectsors except tech, they don't have anything to do with the fang names. don't give up on fang names either remember when everybody gave up on facebook. look at march. went from 180 to 150 everybody said crisis, and it was, but the company came back missing on subscriber ads for a company like netflix may be disappointing, but it's hardly an crisis. facebook had a much bigger problem back in march with cambridge analytica, and you see the mixed reception here today netflix was down 11% at one point. now only down 4% guys, back to you. >> robert, thank you very much can the rally keep going without fang that's what bob w

remember, what really drives tech, the anti-china, it's fang.market somewhere, i promise to find it just for you right here on "mad money." i'm jim cramer and i will see you here tomorrow! >> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ i'm brandon. i'm steven. and i'm bruno. and we're the owners of sand cloud. we love the beach, and we used to go to the beach all the time right after work. one of these days, we woke up on the beach super uncomfortable and looked at each other and had this idea of putting a pillow inside a beach towel. and that's when we first came up with our million-dollar idea: the pillow towel. we created the product and tried selling it on the beach, and that's when we realized it was a total fail.

trading a at 14 times forwartd e ward estimates i think still a lot of people are in fang. so it's got flush out a little bit. i'll be in, but i don't think it's right >> joe, you like kevin will looking at things to buy and doing doing so >> i agree with the comments of everyone i love your explanation of what might be going on with facebook. i think a large part of this that really doesn't get talked about often enough is this is really about mean reversion. this is about momentum moderating about quad models that are very ak neviaeh tctive right now. over the last couple of day, yes, i've been a selling of long positions. microsoft, twilio. so if i've sold out $100 worth of stock collectively, you have to recognize the market early on was under pressure for the nasdaq you mentioned three consecutive down days. nasdaq is going to close higher to reverse now it's very strong today you have to step in. you have to look at a name like adobe. take a small position in adobe you look at some of the earnings reports in the fangs like an amazon and google. >> collectively, if i'v

, fang, fang and let me talk about a cult following and this has been a pr train wreck for over six monthsry time zuckerberg opened his mouth it was one disaster after another. as recently as last week and to me, the fact that investors brought this up to an all-time high where they've been materieling us for three quarters that they're hiring here and they know they've had this huge. did we have any sense at all that when they were saying it's going higher that it was going this high. >> look at the margin numbers and 40% revenue growth and it's stunning over $50 billion in sales this year at some point it had to cool out. >> it was dropping >> that's what i'm saying. no one believed it >> and gene just said that >> gene, is still on the phone hey, gene, do you think facebook should have warned >> no. they did everything they could and people were intox waited here and so they just missed it. facebook did everything they could. they told us last quarter that this would have an impact on engagement engagement and it was a simple connect the dots and nobody did that. >> everybody missed tha

the fang stocks have been fantastic.body knows that so what i'm kind of looking at is if you already own fang or if you're already in an index, that way you own fang what are you going to buy next? and so we are looking at names that are in the retail space, like dick's sporting goods, or in new tech, smaller cans like a d the ocu sign something like that or if finish tech, paypal, a big well-known company backup but nonetheless doing well and having a great, you know, runway ahead of it i'm stumg you own fang you should continue to own fang and definitely doesn't give up on netflix they have not disappointed yet i really don't expect them to disappoint so. >> you railroad not concerned about the downgrades from the last couple of days in a lot of analyst looked at the tremendous run. i mean it's the nvidia of the year. >> it's tremendous it is. >> and how do you expect the expectations built into such a run? >> you know, that's what they said last quarter appear the quarter before that. and the quarter before that. they

everyone wanted growth stocks particularly the fang names. actually buy value etp and growth etp the growth line is up 13%. bottom line the value that's completely flat that's because the fang stocks in the growth. the energy stocks and bank stocks they are the value stocks have been struggling my only question are female finally going to start paying attention to the exxon or jp morgan the old classic value names. >> that's a big question i think, pete you have to have some rea assurance probably that in fact we are not seeing a cycle peak in the earnings picture pause that's whoa you want to own value when the cycle is on the upswing that might be what it takes. you hear about people tag o talking about the value indexes if not value investing is broken or out of step. >> one problem with the value versus growth it's the definition is squishy. used to be value is stocks below the intrinic value or cases. it's been underperforming may not be true value in the warren buffett way it gets tough with the games. >> all right within guys thank you

the economy is growing maybe if momentum, if fang is out of favor for the moment. you have to wonder if people will look to the banks >> certainly it's very cheap historical, right at the bottom. in an economy in a very good place. i look at the sequencing of how this went through last quarter banks first day of trading, didn't go so well. if you want to follow the same allegory, you have plenty of fundamentals behind it, yeah, i think the banks continue to move >> what really changed i'll tell you, my thing has been, banks slu trade about 1.7, 1.8 times priced to book, i'm trying to figure out why they've underperformed my reason is deutche bank. >> and finally it hasn't today >> maybe that finally gives some air cover to these banks deutche bank will report on the 26th, but they gave preliminary guidance today which aswathed some of the fears. i don't think that is the story. >>> cnbc jim cramer will be sitting down with brian moynihan on mad money tonight you'll want to catch the exclusive interview at 6:00 p.m. >>> it's a big after hours move. netflix is tankin

when you look at this company in the world of fang, stcott, look at the pe of facebook. when i look across facebook, i don't own netflix, amazon. i own facebook i own facebook stock, calls. the reason is they've got so many verticals and i think zuckerberg has done a magnificent job of at least taking a lot of what the headaches were when the tstock was hit down to 150 away and gotten focused on hey, look, here's the cash generation we've got. all the different verticals and how we're going to win >> three months. i said facebook is the top fang performer. up 34.5% amazon, 25.5 apple, 18, google, 23.5. we needed microsoft. a great performer. up 17. we've debated, doc, whether facebook or google is the better stock to observe and the majority of people on the desk said google. what do you think? >> that's what leon cooperman said yesterday, too. i don't own google, but i do own facebook it is now my biggest position. i think all about royal. that is revenue, operating margin, instagram and legal or regulatory, however we want to do that. so in order, i'm taking fang and t

maybe fang is tired. it's now man na. the key to the markets microsoft, amazon, netflix, nvidia, alphabet change up the way we've been thinking about these stocks as being grouped together as leading the market higher? >> you had amazon outper the same time you had facebook decline. my view let's worry about trade still, but also we've seen the ten-year yield creep up. we almost got to 3%. a hair away from it earlier this morning. that's what the market's focus on the fed that's coming u. apple is a value stock, tnot a growth stock. so it's sort of like you know, it's a thing to have, but in terms of the application of it, if you're a value investor like these guys are, you don't all of a sudden go o goh to growth because you think it's going to work you find the best in groups. >> wondering if value is going to come back into favor. >> you have to sell off in growth, but not across the market growth is really driving the market so at least seeing some type of floor that money is being moved into other sectors you go to t

>> fang taking a little break? >> you have to be willing to accept this. >> last month it was terrible for me >> stop denigrating yourself it drives me crazy, really the gilead was riding. you bought the gilead. that was so smart and counterintuitive and working >> since jim went there, tell me why you got the gilead >> because it's really cheap and it's going to value forever. we're seeing that the bad news is in, hepc. and $9 billion in cash they're going to grow double digits in earnings midsingle s in revenue i kind of believe the value trap actually becomeses a value idea. you just got to have patience. >> and expedia is another new name you've added? >> i've never owned expedia before >> why now >> because they can go through and haven't been able to execute. they're had a number of misses in the past year i actually think this is the reflection that the recession signs in they actually had a really good quarter last quarter it's also had a nice run but now they're very incentivized to get the stock higher >>

real quick, we don't have a lot of time, they are telling their clip to short fang stocks, the nice fangf that call? >> look, we've had such a historic run. we've had such a historic run that good results don't cut it anymore, you will start realizing that you have to have bang up reports, there's been such over -- the stocks have gone up so much i think that the world will have to start small in reality and will kick in. >> we will be watching that, scott shellady, thank you so much for joining us this morning. cheryl: thank you for joining us here on fbn:am this morning, lea, happy to have you this week. >> we should go buy scott's outfit on amazon after having drinks later. cheryl: dagen, druk, online, shopping. dagen: thank you, cheryl, good morning, i'm dagen mcdowell, tuesday july 31st, top story at 6:00 a.m. eastern, earnings driving the action, three dow components, three, reporting earnings today, apple in focus, tech giants results are out after closing bell. we have a preview plus closer look at tech wreck. town 10 per from recent highs. checking market action, mixed moves, do

apple, if we're talking fang with two as, it had, what? a 15%. peak to trough decline and it came all of the way back and you get your opportunities to buy them and the news is out there after a quarterly print trading an all-time high is the day to do it, or facebook when it trades at an all-time high >> facebook, we talk about the market cap of facebook the stock like that goes down 25%. what does that say for the potential for the broader market to have a move of that magnitude, but a move of that speed like the 5% to 10% in a day. if facebook can move like that with the speed and the acceleration that we saw, who is to say it couldn't happen in the broader market >> the counter could be that facebook moved this much and the markets barely moved >> which absolutely emboldens the bulls. >> i get it 100% when you see a move like that, you have to take notice, i would think, if facebook can move in broader market. >> if you don't see that that's so idiosyncratic to them to me the idea that google was up today is astounding >> just barely the etfi

mentioning the fang names. these are pretty modest moves for the fang names given the sort of battering some of them have taken in the last five or six sessions let me just show you what they're off from the 52-week highs. facebook and netflix obviously had disappointments in their guidance that was the key alphab alphabet, amazon, and apple, modest declines in the 52-week highs hit a few months ago over all, if you take a look at other sectors, i have been mentioning other tech sectors have had tough times the internet content names, look at the snap and twitter, ebay, they all hit their highs way earlier in the year. they are down significantly. some of the other software names also down 10 % to 20%. and industrials, there's been a price to pay for all these tariffs and higher costs in the steel and aluminum area. american, cummins, illinois tool works, they all hit their highs earlier in the year. those are significant declines it's been tough for those industrial names where are we right now essentially we

and that's why it continues to lead itself higher, along with the rest of fang there is much more "madey" ahead. i'm telling you how danaher's decision to spin off its lackluster dental business could be best smiling. could today's drop push pause on the move i'm not sure let's talk to the ceo. and rapid-fire, tonight's edition of the "lightning round. so stick with cramer ♪ you shouldn't be rushed into booking a hotel. with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip. add-on advantage. only when you book with expedia. add-on advantage. with tough food, your dentures may slip and fall. new fixodent ultra-max hold gives you the strongest hold ever to lock your dentures. so now you can eat tough food without worry. fixodent and forget it. where in all of this is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you partner with a firm that combines trusted, personal advice with the cutting edge tools and insights to help you not only see your potential, but live it t

let's talk about what it can mean for the rest of the fangs. joining us now -- is our guest. been a lot of handwringing about the fangs, about frothiness potentially in those stocks in particular. what do you think? ben: i would make the case that now more than ever is the time i n tech more broadly but including fangs. joe: wow, i would've rather five years ago. ben: we are in an environment where the global business cycle environment is growth, were volatility has been rising and i would argue will continue to rise. we can argue about the pace. that is tech. the shade the gets thrown at tech is that' it's expensive. scarlet: it also is defensive when things turn over. ben: as long as it keeps turning over on earnings. julie: the results that we saw from alphabet that is an example of delivering on earnings? joe: no offense, but this is all the u.s. doing better than everybody else. tech really growing strong and fairly insulated from the trade fight. why isn't this already discounted in the markets? ben: quite a lot of it is. a lot of these risks are discounted. i would mak

netflix down again the fang names have been bullet proof this year, but is the market finally ready for a big rotation and trade tariff troubles. a triple t caterpillar warning it will take a financial hit, and it will raise prices harley davidson ceo speaks out exclusively to cnbc about tariffs, and cvs shares sinking again. the board meeting to discuss the investigation into the ceo less moonvess well as plans to examine its overall corporate culture. the future of cbs and its ceo in the fate power lunch starts right now >> welcome to "power lunch." i'm courtney reagan. stocks taking a leg lower in the past hour. the nasdaq, again, taking the biggest beating on track for its biggest three-day loss since late march despite today's drop, though, the dow and the s&p 500 remain on track for their biggest monthly gain since january tyler mentioned tyson foods. the stock down 6%. right now on its warning, more on that ahead. american express is down about 3% on reports that it raised currency prices on business clients without warning. the "wall street journal" says this went on for more th

having a little fang fatigue that's why i was oso thrilled today to interview the anti--fang, ed walkenheimvalue in this market, and he is finding a ton of it that no one else seems to be considering he has a list of the least sexy stocks in the market, a list that puts a lie to the idea that that will is no cheap equities out there. he has such an amazing long-term track record, and i like his book, common stocks and common sense so much. first, citigroup and goldman sachs, especially with the latest quarters. ed is not a flipper. he believes in a two to three-year time horizon, and in that period he is talking about a possible dramatic reevaluation he believes investors will come to their senses and start paying dramatically more for their fantastic banking abilities that means giving goldman's earnings power he thinks this 230 stock could almost double or even more and still not be expensive the key, wall street needs to start recognizing the investment bank as a consistent grower. he was even more bullish on citigroup. if it keeps buying back share, he thinks the 70 stock could go much

results, estimates calling 2.18 a share of revenue of $52.34 billion, this this ths the so-called fang stocks, facebook, apple, netflix and google, falling facebook's massive miss last week, joining us now senior research analyst daniel, daniel, what are you looking for from apple because this, again, a facebook and twitter problem, those are social media networks, apple is a consumer electronics giant and they don't have the same quite the same privacy problems and user growth problems that are facebook and twitter too. >> i think that's right, dagen, i think what we will look for is performance of the iphone business which we know is in a seasonally weak quarter but the health of the ecosystem and understanding how services is performing and then looking out we will, of course, get new products likely in september and ultimately the key for apple is to build a differentiated user experience and leverage newer technologies, augmented reality in order to attract new users and keep users happy and ultimately within their ecosystem. >> do you think that apple will be able to provide inve

. >>> take a look at the fang stocks not too hot today.is up almost 2% on blowout profit number the rest of the group is down. facebook losing otanher 2% "squawk alley" will be right back >>> mixed picture for stocks on this friday morning. dow is up 25 points. s&p 500 down .and nasdaq not surprisingly getting hit the hardest. down . 6 the weakest performer. big double digit decline for names like twitter shares are down 19%. overall though, stocks are higher for the week. the dow and the s&p head ed for their fourth of the week in a row and the nasdaq would be three weeks high nr in the last four despite huge misses on earnings and negative reaction. amazon is higher now, but google, netflix, facebook, all trading lower within the s&p 500. groups like telecom and financials are really shining. banks are an interesting sector. they've come back to life, up more than 2% david. >> didn't want to draw our viewer's attentions to shares of cvs, down b about 4% hollywood reporters tweeted something, a link as well, in which they are citing expec

we've been talking about the banks are in, simply overlooked ashley, with the "fang" stocks.anding loan book, making something called profits. then that's where you will find your action. ashley: funny what you want to say about big tech that is where the money has been going for years now. people said that made the whole thing unbalanced. so few stocks are pulling so many along with them. what's your thought on that? is it, is there something underlying not as healthy as we think? >> i think so. you know, i've seen this before. i've been doing this over 20 years. this reminds a lot of 1999. 1999 actually, you know, ashley, that was a great year. nasdaq doubled that year. but remember here's the first thing, that fang acronym, it is getting more letters in it, right? then we're getting the bat part of it. netflix, insert names, we'll start growing internationally, that is where we have huge growth, doesn't that remind us of cisco systems 20 years ago, every child in india will be on the internet. reminds me of tower records, we'll sell the snot out of south america or coca-co

they have gone up and google. , fangs. they have gone up in unison.tumble. netflix with slightly disappointing results and facebook with that 20% drop yesterday. both of those are cases of extraordinarily inflated expectations. facebook, the day of its announcement of results, shares hit a record high. we have the trouble earlier in the year when shares dived on concern of cambridge analytica and they recovered from that and were scaling new heights so it isa that and were scaling new heights so it is a case of vertigo. more than 2.2 billion active users around the world and an increase in user numbers of 11% in 2017. for others that would be incredible. 42% increase that would be incredible. 4296 increase in revenues, 11% increase in users and the markets is terrible. because they expected more. what is interesting, facebook has said for months, listen, things will get sticky over the coming months because we are spending so much on moderators, dealing with privacy scandals. it will have on effect on growth. they reinforced that message the other nig

tech has been the leader and so has fang, so can the rest of f the market work. you have strength in fames like materials and energy, b financials even doing better caterpillar raising its outlook. adding 18 points to the dow. overall u indexes are being weighed down we'll see what anning shows. >> absolutely. all eyes will be on that tomorrow >> tesla is going to report earnings interest rate decisions from the federal reserve, bank of england expected to raise rates this week bank of japan, where there's been lot of chatter. >> then jobs on friday >> another fun one >> that's does it for us on "squawk alley. over now to scott and headquarters for the halftime report, scott. >>> welcome to the halftime report top trade, the question that could impact your money more than anything else in the months ahead. whether value stock finally falling back into favor at the growth trade seems uncertain here to debate, joe, jim, steve and sarat. congratulations on being named one of the final times top 300 financial advisers congratulations. stocks are gearing up for a big

he nyse fang index down almost 3%. dropped about 9% since the facebook earnings and all those big names getting sold off. there's been a change in sentiment, not only the faang name, the broader nasdaq composite getting hit. about $462 billion taken off that index over the past three days. this has given you an idea that investors are starting to wovender has this peaked and sit time to just move on to omething else? ramy: the upside, caterpillar, people are optimistic, bullish but people are saying not so fast. >> a year ago they talked about the high water mark. this year they posted 297, the high water mark moved up and you saw the stock rallied at the open but faded as we got in later to the day, that was primarily the cost of the tariffs. they were saying $100 billion to $200 billion primarily tied to rising steel prices and that basically took the wind not only out of caterpillar but a lot of their competitors as well. still a lot of concern here about how the tariffs are going to affect these companies. haidi: o

. >> just fang everyone loves fang. it's really hard the steepness of these rallies. >> i don't >> it's just ridiculous ridiculous no matter with the geocorrectness, and if it just seems like it's overdone and that's when you get back in those things and apple is the other one and i know carry the will come out later and they'll retrace it back to 180 you can get apple before the refresh in the fall. are you talking about ten bucks on a $200. >> i think people invest in apple in the long term i think you have this capital return story all of the time you love amazon here do i buy it here >> it makes new all-time highs every day. >> we've had sell-offs in all this stock tern, 15% and that's when you have to do it when earn else has to get out of it there is an understanding of the revenue growth and the earnings growth that they're on and investors had their arms around that so from a safety perspective i do think people are gravitating to the names like facebook and the amazons in there look at facebook numbers facebook

of course the fang stocks.been a rocky season for the fang names a lot of hedge funds lost money on some of the stocks recently who knows what happened? but you see amundsonen we were 1880 on amundsonen now 1812. we were at low as 1818 you see the drip down after noon look at facebook same situation sort of just dropped down right after that there you see a recovery a little bit but near the lows microsoft, the whole group, all the tech and momentum names all drooped and recovered since then we have been talking about the prospects forrotation from these growth stocks, hypergrowth stocks, and perhaps maybe some day we would see value names doing a little bit better. these names today these are classic value names. have been holding up they're off the highs but holding up as well what's the bottom line don't see any real evidence of a big rush towards value but at least on a day like today the defensive names holding up better than some of the others back you to you. >> thanks to you i guess we don't get the tri

the next couple weeks, these are the things that are going to crack before you ever see a crack in fang >> the recovery in fang, last week was the worst week in 12 weeks for the tech sector itself the worst in 14 weeks, just recovering a little bit. i mean, the question is, are the highs that were made two weeks ago, going to be enduring over the next week, are we going to make new highs can we do it in two weeks? no we're stalled, we're struggling. all you need is another red hat or two, then you have real fragility. >> look at what happened last week >> there was a lot of dynamics along with the china trade that made everything you said factual. >> the chart master says there are two sectors you have to avoid. >> we know that tech has the most exposure to foreign sales in particular, the true cyclical frayed synchronized global growth i want to talk about industrials. this has been the dream that you want to belong financials, and for all the good things that have been announced and yet it's really not working so what i have here is every single s&p 500 stock, about 140 names, $6 tril

the fang stocks. there their. they've been a big driving force in the markets this year if you are looking to get in now, what name is your best bet? we are going to rank them. and the meat glut. yes, there is one. tariffs are in demand for u.s. meat around the globe while that may be great if you are on the atkins diet, it's not so great for the markets and farmers. "power lunch" starts right now >> welcome to "power lunch." stocks higher with the nasdaq today leading the gains ahead of what will be a very big week for earnings particularly. the fang names financials and technology are your leaders today utilities and consumer staples are lagging. take a check on yields that are on the rise following a big move in japanese rates overnight. there was a reuters report saying that the bank of japan could scale back its stimulus, and that caused a spike in the yen and a spike in japanese yields a ten-year yield, meantime, hitting a high of 2.9%, and that moving yield pushing footballed higher the xlf is on pace for i

i'm beginning to have a problem extending apple's prowess in the after hours rally to fang, my acronymor facebook, amazon, netflix and google, now alphabet because amazingly, despite apple's consistent circumstances it gets a much lower price-to-earnings multiple than what is rapidly becoming the episodic nature telephone four fangs. even more glowing, the stock i have urge you'd long time to own and not trade isn't even valid like a regular tech company. it's valued as if it were some sort of sturdy cyclical industrial i'm telling you this is poppycock. given the rapid growth of that service stream, this company deserves to sell at a price to earnings ratio that is more like a consumer packaged goods company. in fact, should it be covered by the same analysts that follow up procter & gamble, clorox and pepsico or colgate because if it were, i could argue it should be valued at well north of $280 instead of about 200 where it is right now. that's right you heard me 280. how did i dream up that number because the organic growth of these so-called steady eddie companies is nowhere near t

well, the fangs, are they just so yesterday? the closing bell ringing in ten minutes.ks are becoming way sexier than tech names that make up the so-called fangs. he's going to name these banks. "countdown" coming right back. the dow is lower by 74 points. en fish oil supplements. not all omega-3s are clinically proven or the same. discover prescription omega-3 vascepa. the one that's this pure... and fda approved. look. vascepa looks different... because it is different. it's pure epa. vascepa, along with diet, is clinically proven to lower very high triglycerides by 33% in adults, without raising bad cholesterol. that's pure power. proven to work. vascepa is not right for everyone. do not take vascepa if you are allergic to icosapent ethyl or any inactive ingredient in vascepa. tell your doctor if you are allergic to fish, have liver problems... or other medical conditions and about any medications you take, especially those that may affect blood clotting. 2.3% of patients reported joint pain. it's clear. there's only one vascepa. ask your doctor about pure epa prescr

of america says it's time to short fang stocks.♪ emm bloomberg has learned that the board of cbsa: will discuss the future of a less moaned les m -- sd oonves of sexual harassment. a law firm to investigate the claim. harley davidson plans to build a more accessible smaller motorcycle for selling emerging markets in asia. harley plans to fund the strategy through reallocation of planned investment. u.s. areerators in the jumping into the sports betting business. sports gambling operator gbc holdings is teaming up with mgm resorts international. aegis putting up $100 million to offer sports and online betting. seasons will start taking bets and casinos in new jersey and mississippi . alix: are you a gambler? david: i'm not a gambler. alix: texas hold 'em play with friends? david: if i go to las vegas i play craps. i had a couple of serious players teach me. it is a social game. alix: another big week for earnings, apple on tuesday and tesla on wednesday. bank of america's call over the weekend to short apple and the rest of the fang

joining me, katie fang, msnbc media analyst.ector at the house permanent select committee, and greg brouwer, from the office of congressional affairs and former u.s. attorney, as well. mika, let me start with you. i'm going to read a quote here from vox about comments that dan coates, the director of national intelligence made a while ago. coates compared the warning signs he's seen to those ahead of the september 11th attacks. quote, here we are, and i'm here to say the warning lights are blinking red again. what do you make of this apparent dissonance, disagreement among those advising the president of the united states? >> awell, i think when the nation's chief intelligence officer says the lights are blinking red, you need to take that seriously. and one wonders why kirstjen nielsen is trying to downplay the threat, especially given the slowness with which dhs has rolled out help to the states to protect this election cycle. >> greg brouwer, i want your reaction, as well. dan coates isn't the only senior administration offic

that just run from 123 to 127 has now gone down below 1236789 or how diamondback energy the wrong fang so to speak it climbed from 129 to 138 and now it's back below the 130 level. so where the buyers wrong? no no, no. i think they were just overenthusiastic no sarcasm that's what they were, because now that crude has come down to 68, i think once again you have to take the other side of the trade. you've got to buy the oils why? simple let's say we were going to unleash some of the oil from the strategic petroleum reserves let's say russia does put more crude into the market to give trump a win. hey, it's the least putin can do let's say the saudis are making deals to off-load more oil into the market these are not matters what long-term. it's not about individual countries boosting the production long-term the oil market is all about exploration. we need these countries to start spending more money on discovering new oil. that's what's not happening. we heard from core lab last weekend and listened to schlumberger talk endlessly about how drilling budgets really haven't increased muc

you would think the importance of the fang stocks would have the dow down kind of weird.asdaq is getting hurt it's a market of stocks. >> the dow just turned negative, too. >> just turned negative. i thought given the -- given the press conference, given everything going on, i would have thought the uncertainty engendered, i thought we would see the dow down a couple hundred points, but the dow was still up >> you still have earnings coming in. >> you do. things are still percolating in terms of the economy >> walmart just made a big push to take on amazon in a bigger way. the company entering into a strategic five-year partnership overnight. the retail giant will use microsoft's technology to power wider use of the cloud and artificial intelligence. walmart saying they are looking to make shopping quicker and easier for customers we'll continue to watch this through the morning. >>> when we come back, despite public controversy, business is booming for the nfl. we'll look inside the league's finances next. >>> and a programming note for you. tomorrow is the eighth annual

a decent sized nest egg for retirement, and you just want some appreciation, then netflix and the fang cohort, amazon, google, google, let's say they look a loot more attractive given that mind-set and sure, before you can start making judgments about stocks, you need to figure out what your own internal yard is going to look like. that's the foundation, knowing what you need so you can find stocks that are suitable to your particular needs let me put it another way. if you want to fly across the pacific ocean, you do it in an airplane, a boeing 747 you don't try to fly across the pacific in a ford fiesta now, if you want to pick up your kids from school, taxiing down main street in a 747 i'd say would be really impracticable. in that situation much better with theed for fiesta. how filibuster you're renovating your house so you need to go to home depot for a metric ton of lumber and tiles and paint and maybe power tools. theed for fiesta is too small. there is no way you're going to fit a 747 in the packed home depot parking lot, ah, but a pickup truck sounds perfect. it's the same wa

if you look at the fang index, higher p.e. was back in late january before volatility erupted there. the stock price is not the index for the fang. it's not quite as overextended above working support as it was then. it's up there. i think -- regardless of what you might think about the individual companies, it seems now for the earning season for the other guys that are going to be coming later week, really turns out perfectly. lot of caution is here. longer term, i would expect that any dip in amazon and facebook and google, will be pretty aggressively bought. emily: there's still a question netflix's subscribe is a a speed bump or is it part of longer term trend? >> it wasn't just the weakness in the second quarter. netflix was forecasting a decline in the second in third quarter numbers.r maybe the company is being conservative with its forecast with itsat happened second quarter. it's interesting that we were sort of two soft quarters in a row for netflix. which makes a little bit harder to argue the blip scenario. had an

snap and twitter are dropping partly in sympathy and you are seeing some of the other fangs week todays well. there is a concern going to the market right now about the maturation of markets across the tech sector and whether or not some of these business as well as stocks have actually peaked. far you are not seeing the same sort of severity and reaction in some of the other stocks so that seems to suggest that a lot of investors do think this might be confined to just a facebook. we will probably get a good sign of that later tonight when we get amazon earnings after the close here in the u.s. vonnie: we will have to see at what point hedge funds start getting back in. romaine bostick, bloomberg news, thank you. are wonderful function g tv on the bloomberg allows you to browse all recent charts featured on bloomberg television and catch up on key analysis as well and save your favorites for future reference. looking at. right there. g tv . this is bloomberg. ♪ vonnie: the heat is being turned up on turkey from the administration, the president now tweeting the united states

fangs start diverged.you to tell us what that is, because i haven't looked through, but there is a lot to this. absolutely, and it's kind of reaping what you sow, ultimately. as i say, is the biggest one day fall in us history, and this warning has been issued. but still a huge amount, billions of people are facebook users. it's a huge market. o nto facebook users. it's a huge market. onto the times, they've got a particular line on it, haven't they? just read that out to us. the anti—semitic gateposts on facebook. this is the ongoing anti—semitic argument about the labour party, perhaps, but it's claiming that these posts have claimed that the holocaust is a lie and that jews are, quote, unquote, barbaric and sanitary. these comments have named on facebook, despite being flagged to the social media company, and this is thanks to a times investigation, so there are these foul cartoons depicting jewish people, describing them as cockroaches and different things. all of us are aware of the stories when peopl

. >> it's an interesting point my old producer put out a note internally that the six fang stocks areible for the majority of the percentage gains in the s&p 500 because the market cap weighed in and have have had big moves up small group big cap stocks moved forward big can push the index around that's true as we pointed out many times you can only individual parts of the universe make a lot of money it's not there is only six stocks matter nothing else matters. retail had a great run the russell up 10% so far this year other individual names like boeing industrial space have done well. i don't want anyone to think it's just the fang names and nothing else matters anymore that's not true. >> the majority of stocks have been participating in the rally even if the amounts of market cap there adding can't keep up with the top five. >> all right, gentlemen thank you very much. mike and bob meanwhile, notable wolf moves in the bond market sparking recession fierce but are the fierce justified in steve leishman with the answer. >> that's a bold statement i do have an interesting thought. >

[ light laughter ] the -- fangs! the -- the -- bite! no! fangs! what's the third? the vampire.e vampire diaries." i was trying to do a diary. all right. [ laughter ] >> did you get that? did you get that? >> i was there for quite a a bit -- [ laughter ] >> jimmy: yeah, yeah, yeah. >> i have failed miserably. >> jimmy: you want the -- [ sad trombone ] [ laughter ] you like that? unbelievable you like that. all right. you're up. jamie, you're up. >> i'm up. >> i am sorry. >> jimmy: that was great -- >> what number should i pick? wh [ audience shouting ] one. one? >> jimmy: yeah. >> oh. um, hmm. [ laughter ] >> so it's a film. [ laughter ] it's fivwos ttle. small? [ light laughter ] the! the. "lord of the rings?" >> jimmy: wow! >> "the silence of the lambs." [ ding ] ♪ [ cheers and applause ] ♪ >> jimmy: wow. oh, my gosh. oh, my gosh. rub it in. >> just too humble. >> jimmy: you just follow that -- oh my gosh. "the silence of the lambs." >> just so humble. okay. [ audience shouting ] you got chemistry. everybody ready? zoey, we got this. >> okay. >> jimmy: come on, we can do this.

especially the fang names. >> it may be especially the fang names. we're asking yourselves w ourswi is such a tepid response whachlt the market is saying, we don't really know and to me, at least, this is very much dependent on whether there is any resolution. any softening, not resolution. softening. in the escalating trade war with china. which did escalate when china refused to approve the qualcomm merger the right question, the toughest question >> if you think about earnings, a lot of the companies we did hear from this week, as you mentioned, whirlpool, for example, had some struggles. we've had some really good companies reporting. >> of course >> mainly in manufacturing >> who are you thinking? >> honeywell rock well. >> it is n's not across the boa. >> more broader than you see all the auto oems. >> i wouldn't want to touch auto >> here's the deal maybe more so than trying to figure out where growth is going to be an what the economies of the world are doing. look at the tech trade this week major aver

great move for fang, in general, alphabet, facebook, microsoft, apple is having a good day overall.hen you get these kinds of moves in the big stocks, the s&p moves aggressively secondly, you saw the president saying the allies are going to increase defense spending. the important thing is, that's moving the industrial sector northrop, lockheed, rockwell, all to the up side today as the president made those comments. remember, earnings start tomorrow jpmorgan will kick off with the big banks. and remember, the big banks are all up right now look at that however, here's something very interesting. all the regional banks, they are not in very good shape today in fact, they have not been very good performers at all and the really smaller ones,i can't put them up for you, they are in worse shape many are down 1% to 2% overall maybe there's some assumptions here that trading gains in these big, big stocks like jpmorgan that you don't have, the smaller regional banks don't have trading operations, maybe they will be a little bit better. guys, i can tell you, the big hope for the banks tom

i think if you have tech exposure and some of the big names, these fang names, we talked about it earlierey have attracted allured global assets if you have an overallocation or a high tilt in the portfolio, two tech names, it's time -- goldman sachs has had a rough year if you've seen volatility pick up the back half of the year, they'll profit from the trading they typically do so well at. >> jeff killburg, the fang stocks still look good have a good fourth. >> have a good fourth. >>> best to you and the family. >>> interesting of the day, not what you think but what you -- but what you think what is the biggest risk for the second half of year, higher oil, trade/trump, rising interest rates or calm down, stocks are going up anyway. there's no risk. half of you, 50% said trade and trump. 23 of you were bullish said calm down, stocks are going up 21% said higher rates. just 6% said higher oil. hmm. i think it's rates ve sctacar, random ha apeul day see you tomorrow "squawk box" is next odors with softp and release them back into the room. so, try febreze fabric refresher. febreze finds o

>> the fangs. don't just mean facebook, amazon, netflix, google, which of course are the big companies out there, i'm also talking about elongated fangs. apple as well. i'm looking at the moment at a particular chart shah shows how much has been eroded from that group. a quarter of a trillion dollars worth knocked off their market caps so far since the facebook debacle in terms of their second quarter figures. this is on gtv. bank of america and merrill lynch are saying, this harogbueze of facebook in particular was a sign of a peaking market. they call them consult stocks overall. this is a classic late-stage event according to them. so really when you see monetary tightening start to be debated, when you see slower growth, when starting to see a movement out of these momentum stocks, getting into the safer sectors, getting into travel and an interesting call coming from bank of america, saying get into emerging markets as well when you have dollar weakness going on. this is going to have some nay

we talk about fang, that is a bucket of stocks. neil: what does that say the up the degree we are, fast book notwithstanding technology take that out of the equation, fine? >> i think we can stand to get through one of these "fang" stocks having a little bit of a slip and people are always with facebook expecting that is all it is it is just a slip and it will come back stronger. i don't know if that expectation is real. but i think we see amazon showing there is another side to the tech story when it reports. >> because of nature of passive investing, billions poured into it, almost a guaranty these stocks come back. they have to buy them. if you, if you, any of our viewers right now sent us a portfolio of five mutual fund, took top 10 holdings in each, out of potential 50 stocks you will get 13, 14 names max. they must buy them. they keep buying them over and over again. that is the danger inherent with this at some point. neil: thank you, guys. they were speaking, hard-line conservative, i guess that is good way to describe him,