gilead down more than 20%. year and a lot being attributed to the sort of leveling off or even the decline in hepatitis c revenue. if you look here at the last few years of, they're just gigantic hepatitis c franchise. 2014, more than $1 billion. 2015, $19 billion. you can see it has started to come down. in addition to that, competition in the space is heating up. you have not just abv who we know has been on the scene. merck with new combinations and johnson & johnson. so just making it harder for gilead to maintain that market share. on the flip side of this, though, they have gigantic hoards of cash, up to $30 billion. so people speculating what are they going to buy, are they going to buy something and is it too late. that's what you're hearing about with this downgrade today, was going to happen with gilead, can they buy anything that will change the deal. >> stick around, meg. we want to bring in the analysts. jeffy borges, the man behind this call. joins us now. great to have you with us. >> thanks for

what could gilead potentially buy? are they going to do something big and transformational or tuck-in deals? people are talking about cancer assets. this class known as park inhibitors, which medivation had one. tesaro is in that clays. they'll have a european cancer conference in early october, people are looking close to that to see whether gilead and others might step in there. intercept is in the liver space. gilead has a lot of nash assets, nash being liver disease. vertex would move them into a new space of rare diseases. incyte hassam immunooncology asset. this could be a foundational molecule for gilead to build around. however some analysts don't think they're going to pull the trigger on something that big. >> the suspicion would be greater that they're going to be do a big transformation deal. >> brian jeffries came out with a note, looking at the language they used to explain what they were going to do with the proceeds that did include, quote, possible future acquisitions. >> stay right here, another reaso

>> gilead is extremely undervalued. amgen is incredibly cheap too. i prefer amgen over gilead because they have to start buying something with that money. they should have been buying some of the companies we talk about all the time on this show. they could make money. gilead won't come on the show, but at least they could watch the show. ray in illinois. ray. >> caller: hi, jim. my question is on monsanto. it was selling at about $108 prior to the offer that bayer gave it for $128. after that offer, the price went down to $103. my question is why would it go down to $103, and then would you expect to recover as you get closer to the buy out date? >> it's kind of like the chicago bears. it could go 0-3 and no one makes the playoffs. this company is -- this deal is not to be believed, and i've been saying that from the moment it was asked because the farmers will not let it happen. take it from me. monsanto is not going to be able to close that deal, and i wish i were being an advisor in that room. i don't want any money. i would just tell them stop w

and thishe bloomberg is a lifetime chart of gilead sciences.ows a beautiful uptrend but also shows gilead has tended to consolidate down for the uptrend after times of congestion. it suggests we could see gilead sciences, one of the biggest in the nasdaq consolidate to near $60 a share. this chart could suggest the bearishness we have seen in biotech may not be over quite yet. as for the nasdaq, it is slightly higher. we have some apple-related weakness with apple flipping back up into the green. we have broad common t-mobile trading lower. finally, a standout loser on the day is a cnet retail group. acena retail group. they guided the full-year down. it looks like slowing traffic. they are having their worst one-day drop on record in more than 31 years. a lot of longs and that stock not happy, but there is a high short interest there, so they are probably pretty please. job: the treasury market is staging a comeback as investors await policy decision from the fed and doj. both central banks will release policy decisions tomorrow. the u.s. 30 y

zero reason to go in and buy gilead today because of the note. on the other side, buy iogen, b to hold, confuse you more, raising price target. >> i like amgen. >> okay. >> gilead is cheap. have to do an m & a. a big deal and doesn't seem to be coming. >> cheaper all the time. >>> jon najarian couldn't stay away. while he'll join us live from the pits in chicago. unusual activity today and it's in a security company. >>> plus, retail is moving lower. number of big stocks are in the red. there's a look at the board. other bargains. on that board. talk about it, next. >>> announcer: "halftime report" with scott wapner is "the" place for market-moving interviews. >> you don't call a company a sewer because the company made a mistake. >> announcer: real money -- >> we are short both tesla and solar city. >> announcer: -- real debates. >> people think that globalization has hurt businesses. it's not. it is technology that's hurt businesses. >> competition is a good thing. i don't want to go back to a single marketplace. >> announcer: the most profitab

take gilead. gilead like you, it's a cure, basically for hep c. but in a populous uprising against pharma, these large numbers are turning people off. you obviously can't develop a drug for a small sub-set and make $500 off of it. what do we do, what do we do in the great ethos debate about pricing for something that brings back sight but costs your company a fortune to develop? >> i appreciate the question. first of all, it's obvious for us to talk about specific price therapy. we need to make the progress and get approval. but i will say what we're seeing here has the potential to change most if not everything about the way we think about reimbursement and paying for these therapies. if you take a step back again, we think we're developing something that has not been seen before. we're both gaining function in these patients and doing it with a potential one-time treatment that has long-lasting benefits. so we as a company are intending to come with solutions and ideas where we're saying, let's think differently about the way we contemplate payi

if you look at the top drugs, gilead's drug, you have -- even though it was only approved maybe 15 years ago. the price has increased quite a wit over that time. and people say as these cost so much money, this could be something that helps the plan to take a look at. you look at ivb. people trying to justify this news. there's a lot of uncertainty here. investors never like that. >> we sper viewed amy globe char today on "power lunch." i would would you advocate going through every pharma company and seeing how much the price increases. 400% is too much. 300% is too much. no clarity on actually how this would be implemented. >> i think it's a lot of noise. we have the washington research group, a policy firm we brought in and they put on today, late in the day, close to 4:00, where they talked specifically about this and the impact in pharma and they think it's a nonevent on pharma. it's a sentiment possibly, more probably in the pvms, less on pharma, but i say it's a lot of noise. the only thing, you think u about price changes or the fees and what have you. they need congressional sup

i also thought the gilead downgrade was vicious, 15-jarrett taunt. you know. >> well, they've got to do something and i think they're angry at them. they haven't made a move. >> yes. >> that's what angered them. they look at the pipeline and are concerned. >> right, but they bought -- they made smart moves but the anti-gilead pro-lilly crowd is interesting. >> interesting for lilly, nice. >> lilly is underperformed -- bristol has been the one. >> look, i -- >> lilly is down 5% when you have johnson & johnson up 15%, a huge difference and they've got a really good pipeline. >> join in the party? >> jim said yes today. this is a thinking show. i'm just sitting taking this all in. if you're sitting there -- it is. as an institutional money manager what jim outlined is the fact that technology is clearly the new economy. by the way, neither candidate spoke about technology. >> is that not unbelievable? >> that's the economy. and if you think about all these companies that we're all talking about, chip stocks, facebook, all these salesforce, they have the

i said gilead has a lot of capital. may i suggest they buy gw pharma. vivitrol is an anti-opiate.he long run hope for gw pharma is to get our country off the hook of opiates, which remains to me the hidden and secret epidemic that no one is talking about. both candidates should address it. it is happening all over this country. people are dying from black tar heroin and opiate addiction. the only companies doing about it is richard pops and gw pharma if the company lets them. >> the gilead, which did a bond offering and which we pointed out recently so many times has more balance sheet capacity than any pharma company, period. >> including the pfizers of the world. >> it goes the route of allergan and we might assume it goes the bigger route. >> i think gilead is a very conservative company. they did one big acquisition for $11 billion. if they can find more $11 billions, i think they would do that. gw pharma is about $3.5 billion. they should do that. i think they're a great company. >> it has been a -- >> i will not -- there's a book called "dreamland." people have to read it. p

gilead was also in that. many people think they will do a deal at some point. >> david, why do they need money? >> the pepsi, of course that deal they did one of the greatest of all time. >> they have the best war chest for them to raise money here to me is they're going to do a deal. and we're going to have to work on this. we're meaning you. >> i already did and i haven't gotten an answer other than it's really cheap and you can -- you know, why not take it when you can get it to have even more of a war chest. >> that was oracle's rap. raised a lot of money when they didn't need money, they have more cash than know what to do with, but they bought back a ton of stock this corner. maybe gilead's going to -- >> i don't know. they got a lot of fire power. >> they have fire power, yes. they could burn down a village and save it that's how much fire power they have. >> could. one hopes they wouldn't do that. >> no. >> there's somewhat of what appears to be a bidding war in amazon price targets. rbc's mark mahane

biotech the nasdaq industry is gilead science. operating officer earlier this morning said that they may be considering buying a cancer drug company. our team one to find out more about this. clovis oncology appears to be cheap in some ways to some investors, he said. they're looking at a cancer drug that would include clovis oncology plus the recent .edivation acquisition that was one factor providing support that there could be in acquisition within this space. matt: thanks very much, abigail doolittle at the nasdaq. joe: let's turn to real estate. on commercial properties has increased. joining us is the ceo and chairman of prologis. thank you very much. we got an interesting quote yesterday that stood out to me. only modest expectations for sales and construction activity ward surrounding the november elections. do you see any evidence that anxiety about what is happening in november maybe impacting the market? i think it relates to residential business and we are in industrial. it started out with vacancy rates on commercial

originally from mount gilead ohio between columbia's -- columbus and manville. best known for appearing on the house is a virtual tie between hillary clinton and donald trump in the latest ohio pulse. down in akron, on saturday, donald's daughter-in-law was among a group known as women for trial. the group toured haven of rest ministries, the homeless shelter. i'm back here at home, northeast ohio's largest gold district is looking to keep positive momentum going. help at the ballot box. saturday, local leaders, parents and students got together for a kickoff rally. a were all there to support renewing cleveland schools levy. it cost the owner of a 50,000- dollar house $230. the renewal was not to increase taxes. voting the levy down would decrease taxes. parents and students say they can see the difference the levees have made. >> there has been a difference in cleveland public schools. the graduation has gone up every single year. the fact of the third grade guarantee which impacts all of up. the fact that more families are coming back to the school system, it

a lot of folks speculating that gilead could start buying. if you look at their hepatitis c franchise people are worried that the revenue will start to run out. it is starting to peak and topping off there. so the big question is what is it going to replace that hepatitis c revenue with. >> what is the speculation? >> the hottest is around cancer. their head of r&d made comments saying this area known as parp inhibitors could be high. other areas could be other liver diseases, rheumtology or potentially rare diseases. so vertext has been on the table. >> how steady is that revenue for the businesses? >> depends on whether they have a product on the market. some folks wonder whether they go for earlier stage company or see how they launch their products. people speculate about companies such as kite pharmaceuticals or buy like vertext then you can model revenue stream better. there is disagreement over whether they go for smaller deals or maybe one big one. >> health care deal chatter continues to heat up after the purchase. health care is pos

gilead sold a drug for hepatitis c for $1,000 a year. epipen prices raised 500% over the last several years to more than $600. martin trely raised the price of a life saving aids medication by 5,000 percent. are we concerned about that? i would hope some of us are. now, also above and beyond the fact that the pharmaceutical industry is ripping off the american people, the f.d.a. itself tells us that this voucher approach doesn't work. the g.a.o., the government accountability office, released a report in march. they found that there's no evidence this program works to incentivize drug development. not only does the program not work, it actually slows down the review time of drugs that are clinically important. when one of these vouchers is used, that means f.d.a. stuff must take time away from reviewing priority medications in order to review drugs that have bought a pass to the front of the line. by moving one drug faster, more important drugs may move slower. what we do know these vouchers sell for hundreds of millions of dollars. just

ne and gilead are down sharply. take a look at a weekly chart of the nasdaq.o think that this volatility may have more to go. this is roughly a year and a half chart. at the end of august, the nasdaq put in an outside week. this is when the candle from another week extends into the next week. we see the last four times this has happened, it was accompanied by congestion and pretty slides down. it will be interesting to see if this happens again. julie: usually, not everything is down. what is bucking the drum 10 today -- downtrend today? >> western digital is higher today on bullish comments from cleveland research. they say that checks are and see the potential for earnings to grow up in fiscal year 2018, considerably above current consensus estimates. that could support a mid-70's stock. at one point, the stock was down more than 40%. now down less than 5%. cleveland research thinks this could turn positive as early as this year. julie: thank you, abigail. we appreciate it. scarlet: the option model is one most widely applied economic theories, but it doesn'

gilead could be interested. they've got a lot of money, so, yeah. >> got a lot of cash. all right, second stock is ebay. deutsche bank, research division, upgratds fr a buy to a neutral. says it may be the best story in the internet. they note ebay is reflplatformi. changing the way they do things and that's the time when the internet stocks tentd to generate the most performance. they compares to expedia's big run. they note sentiment is muted. their base case on ebay is 40 buck, but they have a bull case of 45 a share. >> actually, this is a pocket of strength in the mark. ebay along with priceline, match have been up. so this is an interesting to group to watch. third stock here, fitbit, getting cut. the flag ship holiday product is off to a slow start. inventory is building a channel and below the blaze and alta levels. fit's utility problem persists like who's going to wear it. it only counts steps and things like that, making growth harder, tilting the risk reward to more unfavorable. >> i just wonder if people in general aren't getting the peek charging. you get w

. >> you pointed out many times it has an enormous amount of capacity, gilead, but they haven't donei can't believe they haven't. a lot of companies are being bought and sold in that area. i put this up because david mentioned it. cities texas instruments was interested in linear, which analog devices bought. people are going to say zylinds is -- i still think marvel, but not really texas instruments. this is the one that refuses to day, they're not that comparable to linear, by the way, but people feel texas instruments was going to gear up -- >> six months ago there was a lot of rumors texas was going to do something, never got to the bottom what they were thinking about. >> texas instruments bought national semi. it was maybe the most brilliant acquisition, now obviously arm holdings, they hope that'll happen. i don't know, that's your men. >> mr. matason softbank. >> i think when i look at the deals in semis, do not give up, or sell your semis. these are all in play. >> on broad market stuff, vix was below 12 on friday. it's a little bit above there now. does anything change? are

we kick it off with gilead.ce target gets cut thmpt primary concern the hepatitis c franchise revenue forecasts and analysts note steady secular decline. global trends are similar, as well. >>> also look at amazon. morgan stanley up -- auto zone. one sells parts and the other one sells everything. morgan stanley saying the stock has several ways to win. i think the inflection point is coming because of the number of old cars on the road. morgan stanley says this strongly coincided with do it yourself auto repair. they raise the price target to 8.40. >> let's do check please. last words on the debate. a couple of things interesting to me. i don't know if you were there. it felt a little anticlimatic. >> it was exciting. >> trump was trumping. hillary was hillary -- i don't know. i don't want to get into who won and lost. i think about whose minds were changed. i think precious few on either side. not a peep on immigration or building a wall. nothing on health care. >> a lot of issues yet to come. >> a lot of issu

. >> also applied materials, gilead.ingle name opportunities certainly. >> larger cap, though. >> thank you for joining us, chris, george. appreciate it, guys v. a great weekend. >> thank you. next time, platinum. >> okay. it's a date, george. see you then. >> kind of industrial. >>> time now for a cnbc news update with sue herera. >> hi, guys. gop vice presidential candidate mike pence received his first national intelligence briefing at the indiana national guard headquarters in indianapolis. afterwards, he spoke to reporters. >> i hope the american people looking on at this process know that donald trump and i will be ready day one if we have the privilege of serving the people of the united states as president and vice president. >>> north korea announcing to the world earlier today that it conducted a nuclear warhead explosion test to counter what it called u.s. hostility. in a written statement, president obama condemned the test saying the u.s. will never accept that country as a nuclear state. >>> nissan recallin

if you look who else is working here in addition to gilead intercept pharmaceuticals trading up.t was a hot stock a few years ago on nash data. it has a phase three program going on. gen fit traded up 15%. people speculating these companies probably worth more if you take into consideration preme mm being paid. >> why is it so large? was there bidding war behind the scenes? >> there is speculation that there were multiple bidders. other analysts say maybe allergan has seen data that the rest of us haven't seen. one thing that is interesting is if you look over the last three months of trading they traded down at the end of july because they had mixed phase two trial results. they were depressed and expected to have data in november. some speculation maybe allergan seeing something positive there. >> shareholders went to bed with a $5 stock and today it is almost $40. >> doesn't happen often. >> thank you. >>> time for cnbc new update. >> here is what is happening. president obama addressing the u.n. general assembly this morning warning world leaders that isolationism does not wo

gilead is in the space.the price up above 40 grand. >> sold to you. >> sold to me. >> cnbc, where you go for financial advise. >> thank you. >>> oracle holding its annual tech conference in san francisco. we're going to go there live and speak with oracle's ceo, saf safra catz and to nymex for the final trades. what if a company that didn't make cars made plastics that make them lighter? the lubricants that improved fuel economy. even technology to make engines more efficient. what company does all this? exxonmobil, that's who. we're working on all these things to make cars better and use less fuel. helping you save money and reduce emissions. and you thought we just made the gas. energy lives here. you know what, guys? there's a lot of tree branches and dry brush over here. we should probably move the bonfire over there. [smokey whistling a tune] i'm guessing smokey liked that idea. >>> hello, everybody. i'm sue herera. here is your cnbc news update at this hour. president obama addressing the united nation

we kick it off with gilead. price target being slashed by credit suisse.is down 22% this year, mostly on questions on how sustainable the franchise is. credit suisse thinking street consensus, revenues too high given competition from advi and merck. that should provide some upside to the stock here. >> free port mcmoran, opportunity on the short side. morgan stanley cutting to an underweight to equal quiet, target to 7 from 9. stocks 982 a share. downside. morgan stanley says the risk reward is skewed to the downside. and that the stock is pricing in $2.75 copper. well above their house view of about 234. also concern about the sale of a stake in a huge indonesian mine and free port may get less than planned. >> they just sold some gulf. mexico assets to apc the other day and a carl icahn holding. so down 3%. macys getting an upgrade to buy. the price target 34 bucks a share. the analyst doesn't believe the changes to department stores are going away, but macy's gets it. last week, macy's talking about partnering with starbuck, putting bars in some stores.

and gilead also has a lot of fire power.that out a lot as we move here into the final quarter of the year with expectations for m&a still fairly high. not necessarily as much in health care as technology. >> pfizer paid $5 billion for a company that is atopic dermatitis, and yesterday even though allergan had a huge bid or huge premium, they paid $600 million for a company that does atopic dermatitis, very big market and a lot of crossovers. there's a lot of underlying m&a, but i also think that this group is a juggernaut ahead of -- you're going into a juggernaut election. >> speaking by the way, finally, speaking of m&a, monsanto now trading below 106 on a $128 offer all-cash deal to be acquired by bayer. their number in notes this morning, one in particular, i forget who saying we don't think this thing's going to get approved. that's a bit of an outlier but it does show this is going to be a long slog for them. >> what are you hearing about the attitude? >> you know, the clock just stopped in the eu, that's happened many

this is the big drag, juliet science, on pace -- gilead science, on pace for its worst year since 1996he lows of the session. an internal meeting tomorrow. the iranian oil minister has said they will have informal meetings, will not freeze. they want to grow production to 4 million barrels of oil a day. he spoke to a reporter in algiers. a time to exchange views and make something for the next opec formal meeting. reporter: are you ready to freeze production at current levels? >> no. reporter: you do not want to freeze production? >> we are not ready to. reporter: you want to go to 4 million barrels a day? >> yes. alix: that was pretty clear. that was pretty surprising. do you see any agreement on the table tomorrow? yousef: the expectation was that there would be some compromise, some sort of pre-proposal ahead of the meeting, scheduled for 3:00 p.m. local time tomorrow, when the opec group sits down on the sidelines. but that has not really materialized. the expectation was that iran would squeeze its current production and saudi arabia would cut back its production. we spoke to seve

some of the winners, royal caribbean, gilead sciences, let's forget the losers because you're our bestor tuning in. we'll see you back after the break. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. whoa. what's going on here? oh hey allison. i'm val, the orange money retirement squirrel from voya. val from voya? yeah, val from voya. quick question, what are voya retirement squirrels doing in my house? we're putting away acorns. you know, to show the importance of saving for the future. so you're sort of like a spokes person? no, i'm more like a metaphor. okay, a spokes-metaphor. no, i'm... you're a spokes-metaphor. yeah. ok. see how voya can help you get organized at voya.com. bacteria can hide in food and make you ill. wow! announcer: but you can keep bacteria from ruining your day with 4 simple steps: clean. i'm ready for the rinse cycle! announcer: separate. all: woah! announcer: co