what do you do with qualcomm? guys on this set, every single time we talk about qualcomm. >> yeah. >> they love qualcomm. >> 63 last week. >> what do you do with it? collateral damage -- >> at what point do you look at the apple story and say i got to get out of qualcomm? >> people are not buying phones and the thing about qualcomm and the reason we've been buying that rather than apple all year long is very simple. regardless of who wins, this is very high likelihood, 9 of 10 chance qualcomm's chip set is in the product where we're talking about phones or are we talking about tablets? so you know for us to try to guess is nokia the best phone, this one now this quarter, are they going to say that's hot? it is much easier to just buy the guts and the guts are qzom. we'll look at the collateral damage today and decide if we want to own more of qualcomm but we think the name works regardless of whether or not apple is winning or losing in china this week or this month. >> pete? >> qualcomm. >> i like the name. for a

all of a sudden, today, qualcomm is down 5%. let me tell you something about qualcomm, there's a $100 billion market cap. $26 billion. they pay a $1.67 dividend yield, expected to grow earnings, 16% next year and sales 23% and trades at a market multiple of about 15 times next year's earning. this is a company that gone thrown out, baby with the bath water today. i think it's worth taking a look at. >> the key stat was 6% of revenues come from apple. >> fairly simple strategy but always good to open the playbook and review. it's a bullish strategy where you buy one call and sell a higher strike call against it to reduce the cost. how do you make money here? you want the stock to go to the high strike. that's where you make the most money. that eesz that's where the markets are capped. dan, lay out the trade for us. >> this was a tough trade. buying out right premium on a directional base business, very difficult to make money. by the end of the day, it came in. i traded a couple different things. i'm going to talk about what i t

>> qualcomm. >> good deal. we'll see you next week.

qualcomm will be taking a stake in sharp. the story for us from tokyo. >> the deal will see the two uses sharp technology. sharp will receive $61 million from qualcomm by the end of this year which wou year, but the chip maker will also make additional investment the in the future if the partnership turns out to be successful p. the nikkei reporting the total amount of investment would be around $22 million which would give qualcomm a roughly 5% stake in sharp. sharp likely to post its second consecutive net loss for the year ending in march. it has lost three quarters of its market value this year due to massives losses andfuling market share. since sharp significantly lost it market value, investment talks has bogged down. so the market welcomed the reports of today's deal sending sharp shares up 1% before the formal announcement after the market closed. back to you. >> okay. thank you. still to come on the show, japanese companies have been able to raise record amounts of money abroad thanks to some intimate thinking. >>>

sharp will get funds from qualcomm under a capital and business tie up. the struggling electronics giant said it will get up to $120 million from qualcomm by march of next year. the two firms will also jointly develop new panels at a sharp plant in western japan. sharp is forecasting a record net loss of $5.5 billion for the current fiscal year due to a slump in tv and lc d sectors. the company will receive half the funds this month and the rest will be provided only if sharp posts operating profit in the fiscal second half which ends next march. secondly, sharp is also in talks with taiwanese electronics giant 00 high regarding a possible capital tie up with them. negotiations have stalled due to sharp's low stock prices. >>> more business headlines for you next hour. i will leave you with a check on markets. >>> tens of thousands of egyptians have returned to a place that's become almost anonymous with the desire for change in that country. they marched to tahrir square to protest morsi's plan to hold a referendum on a draft constitution. the demonstrat

qualcomm makes the wireless semiconductors for the iphones. qualcomm dropped 4.7%. volume tripled. jabil circuit shed 5.5% on heavier volume. at least 10 percent of jabil's sales come from apple. and cirrus logic makes audio semiconductors for iphones. its stock fell 6.7%. software company adobe fought against the weakness in technology. adobe is known for its photoshop and other design software products. last night it reported stronger than expected earnings leading to a stock rally today. shares rallied 5.7% as volume jumped almost six fold. this is a post-recession high for adobe. meantime, in the materials sector, steel stocks were the flavor of the day thanks to stronger than expected manufacturing data out of china. u.s. steel led the gains, shooting up 6.8%. volume more than doubled with the stock finishing at its highest price since may. and iron ore miner. cliffs natural resources jumped 5.2%. iron ore is used to power steel- making furnaces. many of these steel-focused stocks have been under pressure over questions about chinese demand. the early flu season this year has

>> qualcomm got knocked around a little bit with apple's weakness. think you see 65 bucks in the next month or so. >> brian kelly? >> the copper market is projected to be in deficit next ye

that there are other things going for qualcomm.hey do have 4 g. skyworks, skws, has been similarly appointed. when you see a stock like this break down, people don't know what to do, because you're not allowed to come out, you're not allowed to mention apple. jpl, an assemble erassembler. tim cook, the ceo of apple says, don't worry about your apple business anymore, you just lost it. jay reports this week, i think a lot of it has been, maybe apple is slowing. so be careful. there's a lot of hidden apple stories. the other side is true, too. now, texas instruments was downgraded this morning. it will be very interesting to see, cypress, let's mention cypress, it is not an apple story. when you see these stories that are not apple, even though they haven't done that well, if we can look at cypress. very big yield. this started bottoming when we heard problems. they're a kindle play. people are scrambling to be away from apple. look at kindle. let's look at amazon. if you really believe you can get a yield here, you get terrific mana

i think we're closer to 550, even 570 by year end. >> qualcomm, apple, android. >> bank stocks continue to rip. the sector hitting a 1 1/2 year high with goldman sachs and morgan stanley as a time to bank some profits, is this going to keep going and there are those that are saying going higher, meredith whitney, for whatever you say, she did a great job creating the bottom and so the banks are moving up in line with it. by the way i'm glad she's along for the ride. welcome to the party and let's talk specifically about goldman sachs, morgan stanley the last couple of days exploded to the upside. it wants to go to 130 why? >> as you talked about before, there is a movement for revenues within the trading division. those are the two names that you focused on. >> around the 1080 range, recently waited for a pullback, came down to 1060 and we didn't jump back in. you can look at jeffreys, great quarter, trading 2 1/2% on the day. >> the dow component is the buzz of the floor today. let's talk to our friend steve grasso. how are you trading hpq today? >> i've been long the name. i sold it y

sharp's expertise will help provide qualcomm with high panels. they are developing the screens for smart phones. media mogul rupert murdoch will split into two corporations next year. under the plan announced on monday the reorganized news corporation will manage newspapers and other publications. a new group will focus on entertainment including tv and movies. the decision to split comes after a phone hacking scandal at one of murdoch's newspapers in britain last year. murdoch is expected to maintain firm control over the new companies. he plans to manage fox group as chief executive and serve as chairman for both firms. that's the latest in business for this hour. here is a look again at markets. >>> investigators are trying to understand why highway tunnel near tokyo collapsed. panels gave way trapping people inside. nine people were killed. the accident happened sunday morning along a highway connecting tokyo to other parts of central japan. operators say both holding up concrete panels on the ceiling may have been defective. more than 300 pa

. >> we bought qualcomm for the same reason, positioned yesterday. >> mr. weiss. >> i'm with josh, qualcomm for a long time, goes a lot higher. >> stocks not too far from the highs of the day. tune into fast money at 5:00 p.m. eastern time and our special coverage, mission critical, rise above continues from the nation's capital right now. >> time is running out. >> right now the american people have to be scratching their heads. when is the president going to get serious. >> washington remains. >> that is a bad strategy for america. it is a bad strategy for your businesses and it is not a game i will play. >> but the fiscal cliff still looms. cnbc has called on lawmakers to rise above gridlock and reach a deal. now we're beating down their doors. live from our nation's capital, this is a cnbc special report. mission critical, rise above d.c. >>> welcome back from our nation's capital. i'm mario bartiromo with brian sullivan. we continue our fiscal cliff coverage, "mission critical, rise above d.c." we've heard a lot after a morning of interviews and action

people get paid to that. >> you hope it's apple or qualcomm.e something completely different. therein lies the problem. bah humbug or hamburger. mcdonald's asking franchisees to open their restaurant on christmas to beef up their sales. scrooge or a good business move? bob, you go first this time? >> look, it's very tough of the company has a right to ask stores to stay open, franchisees to stay open. they need to increase their numbers. they were good last year. >> open thanksgiving. >> up 2%, helped a little bit. people who want to stay with their family should not be forced to do so. subtle pressure on franchisees to do it, put pressure on franchisees to coin. i'm not sure mcdonald's needs that image. >> i think it's terrible. people who object to it should refuse to enter mcdonald's, not just on christmas day but the entire week around christmas. send them the message we think christmas is important and we're not going to let them force employees to do this. >> john carney, they have tarnished the golden arches a bit in your opinion. thanks

whether it be cirrus, qualcomm, skyworks solution are all doing well today. qualcomm got defended over first so the iphone story really is not that muted. i'm sitting back, i'm waiting, i'm long. to me the answer to your question comes in january. >> stephanie link? >> citi is talking about supply chain cuts for the iphone. but we also know that apple increased production 45% to 50% and as the yields get easier, as it gets easier to get this stuff i think it's interesting. we could see some cuts. just because they increased production from october to december. so this might be semantics. at the end of the day, we sold it about 584, so i think it's a trading range stock. i've said it. i think the low 500 is very interesting particularly given the china news, given the 50 new countries that they're in. i just don't see this getting resolved until you get to january 22nd which is when the company reports earnings and we get a better read on gross margins, on products yields and all of this noise. >> glen young is the analyst who cut the stock today, slashed its

shares gained 4% after the qualcomm investment firm. in south korea, samsung hit another all-time high, helping the kospi finish higher by .6 of a percent. this despite a slightly slower gdp growth in q3. back to you. >> sixuan, thanks very much indeed for that. that's feeding into european markets. flat as a pancake. this is where we stand. ftse 100 up half a percent. cac up 7%. break that down into sectors, you will see basic resources, best gainer. that son the back of the chinese data. banks not doing too badly as well, so europe helping out a little bit on that side as well. three sectors. household goods. certainly having the market impact at the moment. plenty of other data to go. on the debt markets, we'll keep our eyes on spanish auctions. probably nothing too much to worry about there. this is the service sector and the autumn statement will get a big focus for guilts today. 1.83% on the yields. on the currency markets, we talked about euro/dollar being high. look at aussie/dollar. euro/dollar here at 131. let's show you where

>> qualcomm. >> guy? >> netflix. >> >>> i'm jim cramer and welcome to my world. you need to get in the game. firms are going to go out of business and he's nuts, they're nuts. they know nothing! i always like to say there's a bull market somewhere. "mad money." you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you a little money. >> i wouldn't cop out here every night to try to educate you if i didn't just think it was not just theoretically possible but actually feasible for the vast majority of people to succeed at managing their own money. so if that's the case, then why is investing so darn difficult? how many people struggle to make money in the stock market in how the heck can i believe it possible for you to beat the average, the big benchmarks when so many fund managers fail to do so? simple. you can do it but you have to do it the right way. one of the biggest obstacles to successful investing is a lack of clarity about just what investing is supposed to

and a company like qualcomm. capitalize on what is happening with tablets and smart phones. >> what is your assumption about where capital gains tax rates will end up in 2013 and dividend tax rates and what are you doing between now and year end to take advantage of that presumed gap? >> our assumption is capital gains rates will go up. they probably will go up 5%. >> to 20%? >> correct. here is what happened is the market sold off dividend stocks on the assumption that will happen. so you sell off dividend stocks then you buy what? ten-year treasuries at 1.5%. buy money market at .01 percent? >> right. it doesn't make sense. >> what you have to do is position your strategy, not just for what is happening on the short term from the cliff standpoint but you look from a global basis what is happening. china is starting it recover. >> are you going to back the 15% rate or not? >> depends on the client. really depends on situation. for people with large capital gains, i think they should take the capital gains rates

the plunge, for example, in the apple sound play as well as qualcomm, a semiconductor company, seemedilly-nilly regardless of what the analysts say. we own broadcom at actionalertsplus.com, it's become a very tough hold even as it recently guided up, not down. and it's not dependent upon apple like so many of these other plays. it represents a huge chunk of the s&p 500. you've got to put it to work elsewhere in this sector. that's no mean feat. first you've got to deal with the fact that apple so called disappointing numbers. it would be nirvana just about every other player at least in the computer player. intel is no different. we heard from dell last week. despite goldman's brilliant call. hewlett-packard is a disaster. western digital, two obvious suppliers, dirt cheap. but they ought to go private. seagate with a 5.5% yield. the obvious decline sent investors looking elsewhere in tech. unfortunately, it's a very small universe. there's salesforce.com and most recently adobe. you also have two prospective earnings reports as proxies for tech. oracle tomorrow night and accenture. i

so we've put apple, qualcomm, microsoft, oracle, and your big club stocks.f those have done well this year. the big winners of this month, the banks have come on super strong. china ma and japan. and i think you can start to nibble a little on china and japan, as well. >> michael, is there an argument to be made that you don't want to touch stocks right now until you have some clarity on this fiscal cliff? just in case we see a big sell-off? >> there is, but i'll argue, too, that you're talking about $600 billion being sucked out of the economy next year. the s&p made $20 trillion. while we are looking at the fiscal cliff countdown, there is another countdown to new all-year highs when the dow is close to the prior peak around 600% from here. investors should be looking overseas. you want to look where there is no fiscal cliff equivalent, primarily in emerging markets. but nonpartisan analysts have pointed out that if we go over the cliff and take that $600 billion with it, we go back to recession. how do you justify going into stocks and going into all-time

and that points you towards a qualcomm. that points you toward nxpi. >> you could throw up google. that stock went back over 700 today. technology is one -- >> google is not tied directly to the sales of those smartphones. >> i understand that. i'm talking about just technology -- >> barclays came out and said technology is one of the two favorite sectors for next year. >> one data point i want to get out here. we're bringing up apple in china. right now they're saying iphone 5 sales are running 50% ahead of what iphone 4 sales were in 2010. that's fairly significant if it turns out to be true. the source for that is macbook translating data from chinese. that's making the rounds. i think people are looking at this aspect of wait a minute. this is a whole growth market that maybe is not in all the -- people are bullish on the china story. but maybe not enough. i think that's giving it to credence here. >> stocks off session highs after those comments from speaker boehner. really, we're hanging in there truth be told. dow up 106 points. when "halftime" returns we zero in on the heal

even though you see soloffs in apple, you have qualcomm which has sold off. i still think technology is going to be a huge tail wind industry. i think that's going to result in higher stock prices. >> michael is going to be with us for the whole hour. it's been a great week with you. let's check in with ty. >> a colorful analogy on "squawk box" this morning for the fed's new easing in interest rate strategy. the dow's fed richard fisher comparing it to the eagle's "hotel california" saying you can check out any time you want but you can never leave. jeffrey lacker also making comments today. our senior economics reporter steve leaseman joins us with more. what exactly did the fed president mean, mr. fisher, when he said that, steve? >> once you start going with qe, that you cannot stop because of the effect on the market. and fisher was just one of two hawks that took to the airways to voice his opposition with the change in fed policy which, as you remember, boosted quantitative easing by a trillion dollars this year. fisher and president jeffrey lacker are

intel, qualcomm. this contingent collectively going after sharp.obviously about display technology and that's also about -- and i'm not trying to get close to you, but getting close to apple. because sharp is close to apple. so it seems as though dell is a little bit more advanced in the thinking than hp is. ultra books. have you ever looked at one? >> i haven't looked at one. >> okay. they about 1200 bucks. that's the ability to move -- the profit margins on it are phenomenal. what's the ability to move from the pc to the tablet. now, it's higher -- >> let me make a last word. >> you did your homework this morning, i like that. but here's the reality. we only have a certain amount of capital to deploy. why wouldn't you buy an apple? why would you put it into dell? i think the nicest thing that can happen, dell earns 14%, a bunch of cash, everyone talking about special dividends. a nice christmas present. and then move on from there. putting money -- just doesn't make any sense. >> one reason why. and don't take this the wrong way, it's because i d

we own qualcomm, we own sprint, googl google. >> you don't own apple? >> we did own apple.l in it. we had a position through options but much smaller than it was. there are questions, issues. i'm not keen on their financial management, in terms of sitting on all that cash, earning zero. i think we should be more creative and innovative. a great company and great product. i have an iphone 5 and very pleased with it. i have an ipad. i'm not a big technology -- >> it got the cisco market cap, only 15 times earnings. got back wasn't 100 times earnings. >> that's a deficit business. a google model is more enduring, apple making hardware sales. >> what made you get out? >> we respect the market and understand the issue. >> you didn't get out of the top? >> we didn't get out of the top. >> where it is right now? >> we actually just yesterday re-established a position. >> you did. you got out above this. >> i doesn't own it but thought at 250. >> if we ever get out at the top or in at the bottom, it's sheer luck. >> if you're somewhere 22700 and and -- between 700 and -- >> we got

qualcomm, cirrus, triquint and if you look at how the stocks have performed as apple declined gettingy they've also been under some pressure. cirrus in particular has been off about 16% over the last month falling right along with apple. carl? >> continues to lose ground here this morning, bertha. 508 is not far away from 505 the november lows. thanks. rising milk prices are contributing to what some are calling a milk crisis for the dairy industry. could that lead to a chocolate cri crisis this holiday season? please tell me you did not bring any samples. >> you'll have to wait. >> holidays are tough enough as it is. how is business? how is the holiday shaping up? >> you know the holiday is shaping up for us very well. robust, customers seem to be able to pay for the products and we have, you know, a long wait for the chocolate bar on union square and our kiosk at bryant park is doing very, very well. we're very happy with the holidays so far. >> anybody who lives in manhattan knows where you are and how long the lines can be. are people showing more of a willingness to splurge? are