we're going to keep a close eye on tesla and solar city's stock in response to what jim chanos is presenting right now. again, no trade out there yet per se. however, the comments up to this point in chanos's presentation have been generally bearish on tesla and solar city, guys. back over to you. >> i mean, i can -- dom, thanks so much. >> the trade is what we've known it to be. short tesla and solar city. he has said that at the conference when he was sitting on the set with us. we'll get more from jim chanos, the legendary short seller, coming up in a bit. plus, the head of ups's $30 billion pension fund is here to discuss how he is finding alpha for its more than 400,000 employees. delivering alpha has been especially difficult, as you know. we'll talk about it more from delivering alpha, the conference, here in new york city straight ahead. hey ry, wh are you doing? so we can share our coamazing trading knowledge. at's a great idea, buy don'yojuto ideas,ven actual tdestwith mkets i know. ur brain td my brain before you told my face. mmm, blueberry tap into the knowledge of other traders

. >> it's not just about jim chanos. a lot of people are short alibaba for a number of reasons about accounting and structure and how you can trade shares and have ownership. i thought it was interesting the way tsai was saying fundamentally our top line just keeps growing. >> and it does. there is no real questioning that although they are actually eliminating any sort of real focus on merchandise value. to your point the top line last quarter accelerated and that is the overall theme that you get from alibaba executives like mr. tsai is we are playing to the growth of the chinese consumer as the economy changes that will only continue and we have the wind at our backs. there are no shortages of potential critics in terms of actual numbers and some free cash flow numbers. >> the biggest ipo in history. >> and just in the last year up 54%. much to the chagrin of jim chanos. >> we have 48 minutes. this is an interesting last hour of trade. the dow down almost 300 points. we are heading to the lows of the session. i will w

debate going on right now. >> all right, steve, thanks so much. >>> well, today, delivering alpha, jim chanosller, continuing to express his doubts over tesla and its take on elon musk, other companies, solar is city. jim also warned about alibaba. >> after the minority investment, it is hugely negative.ously negative. they're growing their balance sheet much faster than their business. it is the chinese model, you never see anything. what you do see is the cash going out the door, not coming in the door. and accelerating going out the door relative to the size of -- even though the business is growing. and that's concerning. >> all right, so, happening right now, at delivering alpha, i believe we're getting jim cramer. >> right. >> and joe sy with david faber. we'll get to na that in a momen. this is a position that we heard from jim before. not a new short position. but it is interesting that he continues to talk about it, even as there have been a number of positive data points here coming out of ali baba from wall street in terms of analyst expectations for the company. >> yeah, okay. the

>> melissa, so jim chanos, noted short seller, had an interesting thesis when you think about the market'sla. he does not like tesla's attempt to purchase solarcity. doesn't like it at all. notes that both companies are cash-strapped. notes in particular that solarcity might have needed a bridge loan in order to help get this deal done and get them to the finish line. it's still under independent review. here's what he had to say in short. >> we know tesla is gearing up with its factory and model 3 production line. but i think what's less obvious is the problem at solarcity. and solarcity is in the business of leasing panels to homeowners. the problem is, if you look at the model, it's just plain uneconomic and has been for a while. >> worth noting and perhaps unsurprising, both stocks were down today, and also the go shop period that solarcity has, 45-day period to go out and find a better offer if they can, expires tomorrow. so perhaps we'll hear an update on what's happening there. moving over to paul singer, elliot management's founder, had a very interesting discussion with kelly evan

jim chanos will be our special guest. plus the man who beat the s&p 50015 straight years, bill miller gives us his stock strategies today and we'll have advice for many top and successful investors today with the markets under significant pressure from right here at delivering alpha. we'll see you in about 20 minute s or so. can't wait, guys. see you in a bit. >> thanks so much, scott. >> meantime, secretary jack lew kicked off our delivering alpha conference with a strong warning to eu. steve liesman did that interview and joins us with some highlights. good morning, steve. >> jack lew did not mince words, calling it retroactive, outside the framework of normal tax policy and also warned europe keep its hands off what he sees as essentially u.s. tax revenue. >> we can fix a broken tax code, make it so our companies don't feel like they have to leave the united states to put their income overseas and we can fix our broken infrastructure. what i don't think is right is for tax authorities in other jurisdictions to reach in

future of medicine with digital, and improve the quality of lives. ♪ >>> a war of words between jim chanosba's joe si yesterday. here's what mr. chanos said why he's still short the chinese e-commerce giant. >> it's the chinese model. you never see everything. and yet what you do see is the cash going out the door, not coming in the door. and accelerating going out the door relative to the size even though the business is growing. and that's concerning. >> mr. chanos of course an expert at watching the movement of cash and free cash flow in particular. later on yesterday jim cramer and i spoke with alibaba's executive vice chairman jose tsai. >> the problem is he doesn't seem to try to understand the business and try to appreciate the power of the digital economy in china. and you can lay a lot of claims, a lot of accusations on our business, the bottom line is on the logistics business we made full disclosure on the profits, loss, revenues, assets, liabilities of the business. so investors can do their own math, whether you're consolidated or not consolidated. >> of course that being a ke

we're going to be there live tomorrow in new york city and we will be joined by the investor jim chanosssociates. we're excited about that. >> oh, yeah. >> let's do our final trades. >> we were talking about the fed possibly raising rates and what sectors to be in. i didn't mention financials. josh did. but i think there is a lot of places in financials you can look. one of them being citigroup, below book value, we talked about this a lot, potential for dividend raise. a lot going for it. and if the fed raises rates, that's good for it too. >> yep. >> i like the financials as well, be they wells fargo. i think any of those two stand out, b of a where relatively large position. look, the market is about seven years old and nothing wrong with taking a little bit off the table, keeping dry powder and staying there. if the fed centers out, throw some water on the rate increase and the end of september, that's one thing. that's not my bet. to me that's going to be the key. lockhart will speak later. we know what he's going to say. he already said it. so i'm going to watch her and take my cu

we know jim chanos in previous panel took him on. it's a horse americans love alibaba. >> yeah.me bull argues that 90% of the time when you're in september and stocks are up 5 to 20 for the year, they're higher at year end. so he says the pullback has to be bought aggressively. you buy that? >> i never like to go against tom lee. he's really smart and good. does a lot of great impericle work. >> what about presidential elections? i wonder that too. >> yeah. may have to change the parameters there. ex-trump. he should have asterisked it. >> the part where all analysts say we could be long, it's election based. >> i think that's probably a well advised analysis of it, i think. >> finally, beverages. we mentioned credit suisse, pepsi, monster with an outperform. coke, constellation neutral. >> i think constellation the other day it got a recommendation, i think pepsico is totally spot on, stock is down. but remember in july 7 to 10 almost all these stocks beat clorox peak, campbell soup peak, a lot of those are bond market equivalence, constellation is plain old growth. monster pla

jim and david will talk to chanos, bill miller. oil is down triple digits. we'll be back in just a minute. [text message alert rings] [texting keystrokes] >>> apple's up in the premarket, t-mobile announcing preors of the i'm phone 7 and 7 plus shattered all previous iphone records of the wireless carrier. both t-mobile and sprint say preorders friday through monday were up almost four times compared to the next most popular iphone. question, jim, is whether or not this is really worth two points or not. >> it is if you look at sprint which just put out an announcement. i think we'll discover that verizon and at&t have very similar, very similar increases. >> four-fold at sprint as well. they're talking about. the question i have is we know t-mobile has been successful at getting a lot of new subscribers. percentagewise, what are we talking about aprils ples to ap when you look at sprint out, preorders of the iphone 7, iphone 7 plus, increasing nearly four times. you're getting a sense there was a good amount of demand on weekend one. >> indeed. walt mossber