nicole miller reagan follows mcdonald's for piper jaffray. you with us. >> good afternoon. >> why do you hold out hope for mcdonald's? if you take a look since don thompson took over in june of 2012 p t 2012, the stock has been an underperforming not only against it's peers but the broader market as well. >> we take the balance sheet, the dividend yield. i think there's an opportunity for them to focus on speed of service, focus on accuracy, things that will ultimately translate to increased frequency. >> there's been a big to-do on millennials turning their backs on mcdonald's. i take a look at those potential products, guacamole burger, mozzarella sticks, is that really going to drive the younger folks in mcdonald's? >> no, on that point i think that's only part of the puzzle. frankly, they need to get up to speed on technology to truly get the millennials interested in the brand and to get that attach rate. >> have they learned anything from the paneras, from the chipotles. >> dominos. >> are they trying to take -- or are they just going t

piper jaffray and bernstein believe aly baba's valuation will be north of $200 billion.euters reports money managers will make room for that 800-pound e-commerce gorel i willa by shares of its compensate to, amazon. meanwhile, yahoo! a major shareholder, could see a boost. aly baba is eyeing a debut here at the new york stock exchange in mid september, following two weeks crisscrossing the globe to meet investors. it will be a milestone for the market, the largest ipo ever in the u.s. both in the technology sector and beyond. for "nightly business report," i'm kayla tausche in new york. >>> our guest tonight says aly baba will be the stock to own in every investor portfolio. she is kathleen smith, ipo fund manager at renaissance capital. cathy, nice to have you here on the set. and you're really not giving to exaggeration in the years i've interviewed you. this is such a bold statement. why do you say alibaba is going to be such a hit? >> it's such a fast growing company and a way to own the digital economy in china. and i think that every portfolio manager is going to t

i spoke with piper jaffray, and asked him at the new ipads would be any different or better than the current ones. >> it is probably not going to be much different than the existing ones. the touch id sensors added. they added a less glare screen. i think the big piece we are focusing on is when they will make a bigger i've had, something that is more industrial, mobile of . i would not expect that this fall. i expect that will happen eventually. i think the ipad is still the troubled child here. i do not see some of the changes this fall being enough to really get that business kick started. there are some other things going on that could potentially get that going but as far as this fall, that would not be one of the focus that investors will be eyeing. >> what about these new iphones? couldn't they cannibalize iphone sales even more? that is big. >> you were spot on. as you mentioned, it is been down 3% year-over-year for the last year and total. be ipad unit sales, that has been a problem. i think there will be cannibalization from this tablet and i think that is a good thing for

joining us is piper jaffray senior research activist gene munster, who has been covering apple since 1995. my question is, are the new ipads going to be any different? we know the phones are going to have biggers creams, but what can apple do to get consumers excited about them again? >> it is probably not going to be that different from the existing ipad. they can add a touch i.d. sensor, and a less glare screen. when are they going to make a bigger ipad, something that is more of a pro version? in the supply chain, we're are not picking that up right now. eventually, i think that is going to happen. i your earlier comments, think the ipad is still the troubled child. i do not see some of the changes this fall being enough to get that business kick started. some other things going on could potentially get that going, as far as this fall, that is not going to be one of the focuses investors are going to be eyeing. >> what about these new iphones? couldn't they cannibalize iphone sales if they are as big as 5.5 inches? big headwind the ipad is going to face. year, been down 3% every y

pip piper jaffray's, over the last two years they've moved after from denim gates and tore, lululemon victoria's secret. and while many consumers are dressing down, sporting yoga wear beyond the gym, they're tired of the same old jeans as the go-to option. it's showing up in the major denim player results. particularly at the high end. lee, wrangler, and rocking republic. it has seen revenues fall 3%, vf corp acknowledges the trend, working to incorporate stretch-type inoy investigations. they say it's the key driver for the back half of the year. sew jeans are starting to look more like yoga pants, perhaps, because that's -- >> a little stretch in there never hurts, you know. >> thank you very much. that are following you may not be following a human. the fallout for the giant. plus robots for room service. one of the world's top hotel brands is making a bold move. it is a cnbc exclusive you have to see to believe. ♪ [ radio chatter ] ♪ [ male announcer ] andrew. rita. sandy. ♪ meet chris jackie joe. minor damage, or major disaster, when you need us most, we're there. state farm. we'

hitting a 52-week low and the analysts are also cutting their ratings now on this one as well, piper jaffraynd such. melissa: nicole. thank you so much. outbreak fears subsiding. one u.s. ebola patient get as go ahead to leave the hospital. plus walmart puts iphones on the dollar menu? why your smartphone could cost less than your next cheeseburger. smart money coming up. ♪ she inspires you. no question about that. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long t

today is ever -- that's piper jaffray starts with an outperform, a slightly less bullish, but still wellve the price target. they call this a pioneer in the gene therapy field, mandy. >>> time now for talking numbers. let's look at the overall market. breaking above 2000 for the first time today. is there more room to run? jason robin of advisers on the fundamentals. ari, i'll start with you technically moisture horrid mojo if any does the s&p 500 have left? >> we think there's more mojo left here we know it's a good trend, above the 100-day moving average. higher highs and higher lows. the question, of course, is does it continue to move higher? and all indicators we look at say yes. not just as important as it making a new high, was how it made the new high. really good leadership, so looking at the bottom panel of the chart, a relative ratio between high beta stocks verse low volatility stocks. the fact we saw a any high about by the ratio, investors still want to take risk, this is healthy. >> so jason, ari already asked the question low pressure will this market go higher? what do y

craig johnson piper jaffray senior technical analyst and he joins us.speak if you can to folks who have been in cash, who are afraid of losing that cash, because they have been burned before by market crashes. they feel, perhaps that this is another bubble. now, without being smug about what they have missed, they know what they missed, you don't need to rub it in, what do you say to the folks who are still afraid? >> i would say, you need to step back and look at long-term trend of this market. long term continues to be up. make high series of higher highs and higher lows on popular average of the we had huge run in fixed income. that's over. we ultimately need to see the money in fixed income, as rates rise that will start coming over to equities. we need to remind investors we have a third fewer stocks on the market today than we had in 2000. when that money starts coming out of fixed income and going into equities you have a lot of money chasing fewer number of stocks. i think prices will respond and you will continue to see the secular bull market

joining us now is gene munster, piper jaffray's senior earning analyst -- research analyst.investors are expecting something big. are you? >> we are. and i think you just hit the main question right on the head there, and the question is, is this going to meet the hype or exceed the hype? it's definitely ramped up over the last three months. last week i was meeting with investors on the east coast, this week on the west coast, and i hear that incremental optimism. so that's good in some ways but also sets a very high bar. i think the simple answer is that the iphone 6 when we look at this over the context of the first couple months is going to exceed those high expectations. adam: let's talk about what the device will actually feel like in the hands of a consumer. at home we are all apple, but at work, i've got a samsung device. at first i had to adjust to the bigger phone, i didn't want like it. are apple customers going to want the bigger phone, or is it going to backfire on them? >> indications are they are going to want it. we typically do surveys about a thousand people

two stocks getting downgraded getting flashed to neutral from overweight at piper jaffray, saying delayed printer sales are now trading down about 5%. meanwhile, open hyper also downgrading beth bath and be yond that's because they might see it as a better buying opportunity in the future. bed, bath and beyond trading down about 2.5%. >> thanks, morgan, the auto sector a big focus, voting today to approval a merger with chrysler that's been five years in the works. the move will pave the way for chrysler to be listed on the nyse. it comes as other automaker release latest sales figures. big gains. phil lebeau behind the wheel for us in chicago. hi, phil. >> hi, sue. i'm not surprised to see the auto stocks trading lower, and frankly, this is a sector that's not been loved for some time. that said, as you mentioned, strong numbers for the month of july in terms of what ultimate auto makers reported. here they are and what they did behind the month. the thing to keep in mind, these are very good, but they're not quite what many people were expecting, maybe a percentage to 3% lower than expe

let's bring in managing director and senior research analyst specializing in internet with piper jaffraye in august right now. and expecting some big things in september and then on through the rest of the year. what are some stocks that you think are important to watch this month? >> i think you said it exactly right. it's all about september at this point. so anything you're doing in the month of the dog days of august, it's in positioning for september. and the two most obvious ones are apple with their product announcements likely starting in the middle of september and probably going throughout the rest of the year. and separately is yahoo! around alibaba. the good news is these are identifiable catalysts. they're significant events. the difficulty here is factoring how much of those are already priced into the stock. but i think those are the two most obvious ones. and then there's some e-commerce-related things on the side for a little later in the year. >> gene, walk us through what could happen with the trading with yahoo! and alibaba. how about the arbitrage between those two n

piper jaffray's annual taking stock of teens survey shows over the last two years, teen girls' brandorites have moved away from denim-centric names and toward at leisure names like victoria's secret. but the death of denim goes beyond jeans. the sales of jeans are down 6% year over year. while many consumers are dressing down, sporting yogawear beyond the gym, others are dressing up, fatigued of the same old jeans as the go-to option, and it's showing up in the major denim players' results. bf corps's jean brands includes lee, wrangler, and rockin' republic. the company sells more jeans than any other company in the world but has seen jeanswear revenue fall 3% so far this year, while its sports a wear revenues have groan 4%. they recognized the trend and are working to incorporate stretch-type innovations into its products. it shows nondenim is a driver for the back half of the year and they're responding with innovative textile innovations for the fall and says retailer response has been strong. gap inc. tells me gap is still a dominant category, particularly at its gap and old navy

let's bring in google analyst gene munster from piper jaffray, and ben par, co-founder of the dominate fund. gene, google has this same-day shopping service. how much do they want to compete with amazon? >> i think they do very much want to compete. i think that one of the competitive fields is going to be around sail-day delivery. ultimately if you think about the big picture, huge markets that google has now been successful in, e-commerce is one of those. they're trying to find an edge to try and get more involved in e-commerce. the announcement today, even though the reality is people don't buy books anymore, is more symbolic -- >> hey, i buy books! am i the only one left to buys books? ben? >> i buy books. >> well, there you go. >> it's not just buying books though. it is buying -- like google's been testing its shopping thing with not just books but other grocery items for the last six, eight months. i agree with you, it is a really huge market. books is just another aspect and layer of that. this competition's going to only be good for consumers. >> i buy books, too, ben, but i t

on the phone this morning nicole miller reagan from piper jaffray.prises for you as you look for the release this morning? >> i think the transaction in and of itself, you know, yesterday, the rumors about it, that in and of itself was probably the biggest surprise. >> obviously the deal itself. what about the element of warren buffett, and these preferred shares? we don't know the cost of them. at least i have not seen that, have you? >> i have not seen that. it looks like most of this would be fund with -- which makes sense as both countries are basically franchise more than 99%. and leverage is low, at least in burger king. so, i think that will be well received in terms of the ability to deliver -- >> we talked a lot about this transaction in the context of taxes and the tax inversion element. several sources who i talked to earlier this morning were suggesting that, in fact, from a tax base if you're the treasury department in the united states, you will be flat if not more than flat, meaning we will make more money because of the way the prefer