>> it's the best idea for our department at morningstar.50 estimate and i like gm for the longer term investor there's a lot of hair. >> good advice for long-term investors. than from morningstar. f drama at general motors to possible drama at netflix. the company is hosting its annual shareholder meeting and buzz is all about a potential massive 30 to 1 stock split and shares are currently trading at $647 a share and they have soared almost 90% this year. shareholders are being asked to approve a investly expanded reserve of stock which could potentially pave the way for a split as big as 30 to 1. >>> te is also hosting its annual shareholder meeting and investors are looking for reassurance that th company is on track to hit several milestones including the model x later this summer. shareholders are expected to ask about tesla's strategy in china whether its growth targets can be achieved and where production stands on the giga factory, battery place. shares of tesla fell slightly to close at $256. >>> tyler, on wall street the s&p 500 s

morningstar analyst estimates the drug if successful could draw $2 billion in annual revenue, likely priced at $10,000 a year. it will have to get through the last stages of testing first and may not hit the market until late 2017. the movement in the stock price y reflect too much optimismh and another medicine for cholesterol will work. >> both of the drugs are a little bit more on the risky side. swing for the fences and a lot of times you strike out. >> repor with alzheimer's cases expected to triple by 2050 without new treatment, they are all hoping for a hit. for "nightly business r" i'm meg terrell. >>> 11%f children have attention deficit disorder according to the centers for disease control. billions of dollars are spent each year to treat the disorder. dina has this story. >> go ahead and put it in your hand. this should go behind your ears. >> am i the red guy or purple guy? >> you're the purple guy. >> reporte this was created by anntrepreneur and it is meant to help people with adhd. exercises like this could help improve concentration levels. >> the more you concentrate

technicals to suggest that that trend is exhauste any way, in fact it's accelerated as we move fo morningstar analyst says drugs are boosting drugmakers. f these firms hit a nice inflexion point in their pipelines looking at areas of unmet medical need and areas where there's no medicine out there so any sort of drug that the biotechs bring into that space is one, received very favorably by the regulatory agency and two, has very strong pricing power. >> m & a activity has become a huge driver as well. according dlogic, healthcare has racked up the most deals value wise. that's helped biotech, but also managed ca stocks which are soaring as anthem tries to buy cigna and etna makes a bid for humana. a lot of these firms need increase scale to deal with the new health care reform and some of t lasting impacts that that is having on that sector. soe firms need to negotiate with other players within the health care supply chain, the scale really helps them to do that effectively. health care also faces some headwinds mos notably from the supreme cou which will soon rule on whether to eliminat fed

i was talking with morningstar's damian conover. he said they're taking these high risk high reward bets they're swing for the fences if they're successful it's great but if not they're very risky. >> meg, thank you. meg tirrell, our biotech reporter. >> i've got to tell you, pipeline, a big move in that stock. roughly a $12 billion market cap move since june 1. that's alzheimer's. that's not a pipeline. i've got to tell you, i think it's way -- i'm very surprised this stock wasn't down more than just 2 1/2 bucks today. i would expect to be down much much more than that. if you look at a forward p of let's say a biogen to lilly, you're looking at roughly five or six turns higher for lilly. >> you think it was a move on hope as opposed to -- >> i do. i think that was a move on hope and i think it should have been moving back a lot more than it actually did. >> to david's point eli lilly's trading like an old school biotech. alzheimer's is a great thing. there's a long race ahead in the alzheimer's race to get a cure. i don't know if

for more joining us is our analyst from morningstar. this leverage point is important. are you expecting to see a flurry of deals getting done? >> definitely. i believe the aetna/humana deal is the first domino that will fall. that will pressure cigna to make a deal with anthem or seek help from unitedhealth in order to grow its own size its own membership book on the scale of a potential humana/aetna tie-up. >> they are trying to achieve greater scale with these tie-ups. will it mean higher or lower premiums in the aggregate? >> the theory goes the bigger these players are, the more efficient and cost effective they can be. thus this should hold back premium increases and growth for the u.s. consumer. >> will they buy that? >> i believe regulators and federal government recognize the bigger entity it is in terms of being a payer, the better off the consumer is in terms of getting better pricing from hospitals and physicians overall. >> we have the ceo of mount sinai on the program last week and was explicitly against saying it was going to raise their cost. >> the cost

>> report by "morningstar" says only 9% of the mutual fund managers in the u.s.are mixed, composed of men and women, fewer than 2% of assets are totally overseen exclusively by women, leaving 74% of the assets managed by men, okay? just basically shows you the gender diversity is even harder to find. also in the u.k., where only 7% of the retail investment funds are managed or comanaged by women. let me tell you what the real deal is here. according to the findings, that there was no difference in the performance. in fact the best performance came from the mixed gender teams. but it turns out the bias is from the investors. that investors per to invest with men. so, they don't hire the women to run these assets because investors don't want it. >> i don't care who i give money to. i want a nice return. sandra: women are less emotional when it comes to money. they look more long term. men look more short term. pluses and minuses to everybody. >>> coming up, guys, we hand it over to maria bartiromo. we'll have quick look at market as well. stay tuned. ♪ you are look

pimm: for more, we are joined by an analyst with morningstar in chicago. here is jason mick gorman, r bloomberg industries analyst covering the health care industry. let's go through the list. who benefits? >> primarily hospitals. they were writing off 30% of their revenue for folks who did not have insurance pre-obamacare. now these folks can keep their health care insurance and hospitals can rest easy. this was revenue they weren't getting before. it is a big deal for hospitals. insurers as well, but mostly hospitals. >> it will be a positive for all of the stocks. stated,revious guest for the hospitals and insurers, it is a huge deal. if there is an issue as far subsidies for any of the state exchanges, it was ruled unconstitutional, you would've seen moderate headwinds as far as growth goes for the health-care industries for the last several years -- next several years. some of the changes are state-by-state, others are run by the federal government. what does this ruling have to do with those exchanges in the future? it impacts the states with federal

"morningstar" says 50% of the american muni funds hold debt tied to puerto rico. tomorrow is the deadline to make a 500 million-dollar payment. they expect the governor will say it will be held back to force puerto rico's lenders to restructure and renegotiate the loans. >> like austan's question, is u.s. heading straight for another recession? we have a guest coming up who thinks so. we'll talk to the boom gloom and doom report, mastermind mark faber coming up next. >> a big win for energy industry and big loss for the obama administration. the latest fallout from the latest supreme court decision. >> the nightmare is finally over, new york governor andrew cuomo a on the capture of the second escapee as the worker that helped them escape heads to court this hours. >> 22 days, 2,000 men i searching swamp and brush. no one got hurt. no law enforcement got hurt. no one else was hurt. escapees brought to justice so it ended as well as it could have ended. ♪ (vo) rush hour around here starts at 6:30 a.m. - on the nose. but for me, it starts with the opening bell. and

this is 40-year-old chelsea morningstar, boyfriend charles at a maximum security prison in delaware for robbery. incarcerated since 2005. they've been together a year. why date someone in prison? >> because the option is not to date him at all. nobody else makes me happy the way he does. and, so if it's worth it to put up with garbage that comes along with him being in there. >> reporter: chelsea knew him before he went to prison but they weren't together then. it was only after heave was behind bars that she made the conscious decision to get into a relationship with him. >> he makes me a better person. i make him ape. better person. >> reporter: a host of web sites, convicts make connections with inmate passions and meet an inmate. with pictures profile. david in a texas prison writes i'm an easy going, goodhearted man who knows how to treat a woman. william at a facility in michigan says i am a good-fearing man lacking for a friend some one done to earth and into keeping their word. and daniel locked up in ohio writes i have a warm personality and find it easy to make friends. i love

however at morningstar, we have been saying for years now, that the insurers need to get beth bigger.re is also more competition because of the private exchanges or public exchanges and there is the apples to apples comparisons consumers have these companies need to get bigger overall. >> you say they need to get bigger because it will improve the case for the customer or they need to get bigger because it will improve the profit margin or could it possibly be both? >> well i'm not an equity analyst. i am looking at return on capital from my perspective the more diversified it will be the more it will be better at the end of the day. >> the things that have happened to these insurance companies, everyone is predicting doom a couple years ago. can we throw out a five-year chart is the kicker guys for our viewers? these stocks sig florida is up 70. 7-0 percent in 12 months. they're all way up. what is the driving as far as? forget about the deals, something is pushing these guys to triple and quadruple over five years. >> well there has been a lot of m na talk over the last several year

morningstar came out with another study the last couple of days. guess what?aybe when that happens. >> you are making their case right now. how can you say that? >> speaking of specific stocks let's get dominic chu into the mix. >> us and our friends at cnbc pro took a check at our weekly top stocks. subscribers can go on there. the best performer this week in the major indices, nike up 3% this week. the company posting better than expected earnings for the eighth quarter in a row. stock is by far the biggest booster for the dow, contributing about 30 points to the move overall. as for the top performer in the s&p 500, that prize goes to williams companies. the natural gas pipeline giant rejected a nearly $50 billion buyout offer from energy transfer equity. the bid significantly undervalues williams but is open to other offers. shares traded at an all-time high monday. they are up 19% this week. nasdaq 100 top perform erer is facebook. it's now valued around $238 billion. walmart valued at around $240 billion. facebook has been on a roll. shares up 13%. quart

joining us our analyst from morningstar. which direction do you think this is going? where do you think the most value would be created in a tie-up here? >> a lot of this is going to happen because there's pressured opting environment for all players moving forward. with affordable care act, greater competition, which will extend over the next five years, i expect to create value. where i see most activity will lie in the realm of anthem buying one of the smaller below it. cigna, humana or aetna as the prime targets. >> that's where you see the tie-ups. who gets left out, anybody? >> that leaves unitedhealth care out. that company is positioned very well. it's the largest insurer in the u.s. and has the most diverse membership base. the management team executed very well over the last several years. i expect that to continue. when you look at the tie-ups in the industry and look at which companies need to become bigger more diversified, you are looking at humana aetna and cigna as being the prime targets. i wouldn't be surprised to see a merger between two out of thre

morningstar says in addition to cost cuts if this big cap biotech has one of the best pipelines it had time. analysts estimate this stock could gain 12% over the next 12 months. william blair likes another big cap name biogen. he thinks this could outperform thanks to four highly anticipated clinical trials. you can see here the implied up side for this stock, 16%. another one, small cap is nektar. this is a name with a lot of assets. it's often overlooked. analysts expect a 38% gain over the next year. novavax, results for four clinical trials expected next quarter. that could gain 23% over the next year. lastly, kite pharma. this is a name that maxim group rated as a buy yesterday. that could gain 31% over the next year based on consensus estimate. names to check out. >>> from biotech stocks to micro bios. >> earlier we were talking about johnson&johnson which is trying to mine trillions of microorganisms this live in and on our body that scientists discovered have serious implication from our health from modifying our immune system to affecting our metabolism. one way johnson & john

morningstar sent me a note.of the rise for fiat chrysler is because of what we've seen with the euro in terms of its costs and how it's benefited there. the other issue coming into play here is when you look at where fiat chrysler is in terms of its execution, sergio marchionne is better interested utilizing the capital this company has in the form of a merger. that it's divergent. don't expect gm to talk to sergio any time soon. >> it's new to the market. up's interested why they ended up at gm? you will know it's no secret sergio was shopping fiat chrysler to anyone who would listen. why has he ended up at gm's door with this force? is it industrial logic or because he feels it's a weaker management team arguably that could be corralled into some deal? >> it's not just gm. gm is the most public right now. we know he said there were other e-mails. john elkin said there have been other conversations. gm is the only one we've seen leaked so far. his theory being if you take out all the excess capacity if you comb

according to figures put together by morningstar based on dataing from this calendar year some 53% of open-end mutual bond furnds in the u.s. are invested in puerto rico in some way with the average position size being at least 3%. now creditors on the hedge fund side apparently have made a deal offer to puerto rico within the last few months of about $3 billion in new loans with some contingencies, but from what i'm told mandy and tyler, the government has essentially shrugged that off and they are once again asking for even better terms. >> thank you very much for filling us in. kate kelly live in san juan. >>> the liquidity illusion. genesis' bill gross will be joining us on "power lunch" to explain about his big fear in the bond market ahead and the dow, s&p are headed for their worst month in january, down about 2% in june. will we get a july bump? why next month may favor the bulls. ♪ every auto insurance policy has a number. but not every insurance company understands the life behind it. ♪ those who have served our nation have earned the very best service in return. ♪ usaa. we

i'm dick morningstar. i'm the founding director of our global energy center. and we're obviously involved in it program. but also the rafiq hariri center for the middle east. and richard doan, former ambassador to turkey and egypt is the director and will be part of the panel. and the brent scowcroft center on international security. i want to thank all of the centers here for their cooperation and organizing this event. i want to give a special welcome to the only two-time ambassador to saudi arabia. i'm sure you know and remember ambassador walter cutler, who is here and as well as our esteemed board member ode ode aberdeen, who's also a true expert on the middle east. we have really an outstanding panel of experts to discuss these important issues today. the discussion will be moderated by david goal winn who i'm sure most of you know who's the chairman of the atlantic council's energy advisory board and the president of goldwyn global strategies which is an international energy advisory consultancy consultancy. david has -- i've known him for 20 years basi

i saw 50% from morningstar. they had the exposure because it has been offered to pick up in yellow.ight now they offer a 12% pick up and yelled. you know what you get when you stretch for you. you take a raider risk. absolutely, puerto rico to the united states is very much like what graces to europe at the moment. it has sort of gone through the same path that greece has gone through and has accumulated a pilot that. in labor force participation, a huge unemployment rate. absolutely this is the time the cache is running low and the budget you have to have another plan. >> retail investors is that it does share? they might order rico barnes to get restructure. that doesn't mean they defaulted in perpetuity. it does mean a lower coupon in the locker of maturity. that is the best outcome at the moment. but i do want to say to investors in the municipal bond markets as this is not the way to be fearful. this is a problem symptomatic of the market. that is not the case. if you look at the debt to gdp ratio for puerto rico it is something like 70%. if you compare it to that of other stat