moved to a strong buy at raymond james.ll the way to a strong buy, because raymond james analyst say microsoft is the cloud winner, beating out everybody else on platforms, on software, on functionality. services from the cloud. apple, bloomberg has a great story out saying apple only spent 3.5% of their 200 $30 million in cash this year on r&d, compared to 15% at google and 22% at qualcomm, 21 at facebook. the smallest summative r&d, and they have the most money of any tech company in the world. double retail stocks appeared lululemon and under armour both moving down, both because of concern that they are discounting too much. .ululemon cut to underperform it is said they had high clearance levels at the stores, undated channel check spirit under armor is down. moving down there i started. supplye of beauty companies. toy got a downgrade underweight by morgan stanley. ulta at jpmorgan boosting its seems to be, but it moving in sympathy with cody as they both sell beauty goods, supplies, and services. your marketsp of to h

raise to a strong by at raymond james.y are really the cloud winner on everything you can think of from infrastructure as service to platform to microsoft. , if you take a look at the last year, microsoft versus apple, and have reinvested dividend, you would be surprised outperformingft apple in the past few weeks. microsoft the better performer then apple for the entire year. betty: interesting. matt miller at the market desk. pimco's term -- total return fund still reeling from the exit of bill gross 13 months ago. it is beating at least 98% of its peers from this past five years and they had the first month of net inflows in more than two years. joining us from l.a. john pendleton who covers the bond king's or us. tell us about how he has been able to do this. very divided this investing process. half of the funds approximately is in very safe dividend-type yielding returns and the other half is in riskier type of investments that give higher yields but a little bit more volatility. by keeping so much in the study but s

what we're looking at here is raymond james downgraded the stock.een neutral on the stock. here's the way i look. oil is up $40. if you look to take a shot at oil here, are you going to buy exxon? are you probably going to buy something that's higher beta, the kind of stocks that joe has loved historically. joe is not here, obviously, right now. you are going to buy the higher beta names. meanwhile, while stocks are in turmoil, this is an atm machine. everyone owns this. when i talk to buy side traders that trade this sector, they say this is like eating cardboard. talking about the stock. it's not interesting. not enough beta. >> they make the point that they have limited leverage. limited leverage to oil prices, acts as a hinderance during recoveries. even if oil recovers -- we said it's below 40 for the tifrt since august. even if it recovers and goes higher, they get less leverage out of that. you buy the stock today or no? >> no. i don't. in our portfolios for clients, we still hold the stock, but we have calls written from here until three mon

it's interesting -- and raymond james is essentially making the bold kale for allergy again. >>> theirm cites the company's third quarter results that implies about a 25% high, 25% higher over the past year. >> this one is a assistantout today, ty. pallet alternate network is lifting targets. pacific crest is among them with the price -- the note is come on in, the water is fine. with revenue growth over 68%. >>> and the -- is my father's favorite store when i was growing up. pep boys, manny, mo and jack. research slashing the stock. however, the analysts maintain a $15 snare price. manny, mo as well as jack up as well. >> all of them doing well. >>> the final stock here, facebook, raising the price target to 130, saying there's no reason to decrease exposure on consider the stock any bug a core holding. there are still several up -- as well as virtual reality. that stock has had a nice run this year. that does it for "street talk" today. >>> coming up, the big bet on being delayed. how you cash in if you're stuck on the tarmac. >>> final the crude close is coming up when "power lunc

microsoft is in the green after getting upgraded to strong buy at raymond james.st saying it looked for a while that the company perhaps missed mobile but is now well positioned in the clourd going forward, and that is enough to bring microsoft shares up. fit bit rallying after being upgraded to overweight by barclays. the firm says fit bit is a proven company and the recent slide in the stock is what it called unjustified. tis the season for some fit bit givers. >> we'll see. like john's -- when we come back, we'll find out how people are spending, so far, this holiday season from a leader in mobile payments. plus, a closer look at the top gifts in tech this weekend. what 116 million people in ebay are shopping for. and it's backed by big names like eric schmidt, barry diller. we're live with the company being called the uber for helicopter when "squawk alley" continues. the throttleuldn't push on his little boat any harder if he tried. he's beached here, gazing out on an unforgiving landscape. for while the people who come in here use quilted northern, a toilet

market perform up from underperform at raymond james.nth the firm had downgraded that stock. it follows tech data's increase in net income and profit growth for the fiscal year. gains can be attributed to strong i.t. demand in particular of apple products. they make up 20% of third quarter sales. stock with a target price of $67. right now it's trading a little bit above that. >> next stock, dollar tree. eps sort of expectations. raymond james lifting the price target to $90 from $85. it did lower its eps for q4 in 2016 but it's focusing on the outlook from management on synergy opportunities of a run rate of $300 million in the next three years. >> noodles and company with a bullish buy rating and a $13 target price. a lot of noodles. analysts believe it's increasing focus on natural and organic ingredients will raise shares. today shares are down 53%. >> that's a lot of noodles, too. sun edison pulling back after a 37% pop after news the company has paid down most of a margin loan. it is getting hit with a downgrade. u bs cutting sun e

we did have microsoft getting a strong buy rating from raymond james.vron and exxonmobil, the big oil names, also moving higher. investors, of course, may be stuffed from turkey, but let's stuff you now with real focus on how to bring some holiday cheer to your portfolio. no better person to give us a holiday investing plan than gamco investors' chairman and ceo. huge question marks hangover this market between now and the next couple of months, but as we hook at the macro picture here, the question marks are isis, the federal reserve and whether it will hike rates in december, just a few days from now. we've also got a quiet consumer or a questionable consumer. and on top of that, should we invest in stocks or not? >> wow. you've got a long christmas list. liz: man, i hope you have a good memory. >> i can remember all of it. about a year ago we were worried about ebola, now we're worried about isis. we should have been worried about isis three or four years ago -- liz: okay, but we weren't. >> we'll have an election in 12 months, but that's an ongoing

let's start off with microsoft, raymond james saying it will be a long-term winner in the cloud race.t grade do you give this call. >> i give it a b. they are doing a lot of things right. but the stock is up 35% from the august lows, up 17% on the year. trading at a post-financial crisis term. but they are getting things right but it is important to remember that the street, investors, are fascinating with the whole notion of things moving toward the cloud. there will be a transition. and this is also a company that missed the cloud. they were late on it. and they missed mobile and a lot of things. so to me, i don't think you buy it at 54. if it fills in the earnings gap at 50, that is where you buy it. >> next up, fitbit, over weighed. saying the company was off to a good start for the holiday shopping season. grasso. >> i was in the name. i'm out of the name. when you see shortages of 35% in the name, it should pop on any good news. i get the enterprise and the brand name. but to me it feels like another go-pro. i give it a b. i give the up braid a b. but -- the upgrade a b. but i'm

. >> microsoft, over at raymond james, like it? >> it seems a little bit late. seems like it's sort of ratifying the move that microsoft stock has already had. basically, there's twice as many buy ratings on microsoft today as there was a year and a half ago. i don't think you can argue with the rationale necessarily. but, you know, it seems like the market can figure that out. >> they say, look, you got a company that looked as though it was a pc software vendor that had entirely missed mobile. to now one of the only hyper scale hybrid crowd vendors. i mean, it just speaks to the whole perception of where microsoft is, not to mention the fact the fundamentals of what they're doing and the perception of it have changed. >> i think that's the market getting the stock back up in the mid-50s. part of that redefinition of what this company is. >> yahoo!, underperformance and big turnover have some saying the ceo should be out. suntrust bob peck had a note out today with the candidates for position. we don't need to go through them but he says if not marissa, who? >>

you can see the stock is up more than 1% in the premarket after raymond james moved into to a strong. it is up to full spots because that raymond james thinks it is going to win against all of its competitors. let us move on to lululemon. underperformed that fdr. it lowered the price type target to $42 from $55. they are saying there much higher clearance levels and had been expected. there was also a shift to making lululemon women's products into men's products and that will be difficult as well as well as difficult internationalization. at barclays, they say the current valuation is too compelling to ignore. they continue to raise their outlook to $1.77 billion in revenue for this year. that is a big boost by barclays. finally, if you look at my bloomberg here, i've got one interesting from gadfly this morning. that is for ari. valuations that this is far too compelling to ignore, but i think it means it may slightly different way. for our readers training at 28 times forward earnings. that makes it more than double any of its luxury competitors like bmw or mercedes. a bigger valu

. >> when we come back dan mcmahon from raymond james will tell us where he sees the market going from random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. so wi got a job!ews? i'll be programming at ge. oh i got a job too, at zazzies. (friends gasp) the app where you put fruit hats on animals? i love that! guys, i'll be writing code that helps machines communicate. (interrupting) i just zazzied you. (phone vibrates) look at it! (friends giggle) i can do dogs, hamsters, guinea pigs... you name it. i'm going to transform the way the world works. (proudly) i programmed that hat. and i can do casaba melons. i'll be helping turbines power cities. i put a turbine on a cat. (friends ooh and ahh) i can make hospitals run more efficiently... this isn't a co

still a downgrade at raymond james. eps visibility has deteriorated.ffective promoting. there's also possible monetization of real estate assets and we've seen that time and time again in this space. >> and because this is the parent company of outback steakhouse did you pick it because mandy returned today? >> mandy is back. >> with kangaroo steak. finally -- >> kangaroo. >> the medicines company. new jersey based biotech reviewing strategic securities. the company could either sell itself entirely or break up into pieces and sell them, hop off into the distance. four potential block buster drugs. the average target is $44.38 per share. >> they also have ten marketed products in the u.s. market and a lot of options. they could sell assets or spin out into different companies. so a lot of options here and analysts seem to like it. >> the ang kangaroo appreciatio society is on line two. i'm hopped up on cold medicine. ignore me. >>> just ahead, the manager of a top performing mutual funds joins us with three small cap top performing picks. "power lunch"

raymond james upgrading to a strong buy from an outperform so they like it like it.inal target of $80 was hit so they bumped the target to $90. they say the fundamentals are terrific and the company has a moat around it with limited supply threats. >> you see the nice chart and it's the self storage space is a bright spot within the reit sector but something to watch with rising rates. how are these reits going to react. >> maybe retailers could store all their excess inventory -- >> exactly. >> -- in these self -- >> good idea, brian. >> we're bringing worlds together, melissa. >> exactly. the market slide is continuing right now. stocks nearing session lows. the nasdaq the big loser on the day. we're setting you up for the close when "power lunch" returns. >>> all right. a weak end to the week. the dow jones industrial average is down 188 points. folks, that is a session low. don't need to remind you what happens generally when you start losing steam toward the close. i'll let the traders speak to that, but generally it is not good. this is the heat map behind me h

exxonmobil getting a downgrade at raymond james.st moving his rating on the stock to underperform. fancy way to say sell. that's from a market perform. he says while he expects oil to recover next year, exxon oil is less exposed to a recovery. we have five big analyst calls coming up later in the show. first, the nation's biggest doctors' organization going to war a bit with big pharma. why they're calling for a ban on prescription drug ads. >>> plus, nfl hall of famer bruce smith in the house. we'll talk everything from his growing real estate empire to life after the nfl and maybe something about a school named virginia tech. who knows. "power lunch" rolls on. stick around. hi watson. annabelle, your birthday is tomorrow. i'm turning seven. what did you ask for? a princess. and a pony. you like things that begin with p. i like pink frosting too. will you have a cake? yeah. i was too sick to have one last year. the data your doctor shared shows you are healthy. are you a doctor? no. i help doctors identify cancer treatments. i want

talking about a patch in the takeover bid also in the emp space and raymond james is downgrading it torform from outperform. here are the reasons. the analyst was positive on recent quarterly results. got a best in class balance sheet. the stock has held up well versus the index down 25% since june. it's getting downgraded on valuation. valuation of the sector, brian. >> things are so good they're not good anymore? >> things are so good it's already reflected in the stock apparently. >> okay. downgrades an upgrades in oil is turning my head around. next up we have two stocks and one call. restoration hardware and pier one. buy restoration hardware but sell pier one. now, they start restoration hardware with a buy. they say the company is filling a void of creating a brand to fill the $200 billion a year aspirational consumer market. ubs says sell shares of pier one. they're 10% below the current price. >> i didn't read the calls. just punched up the stock prices. restoration is up 31% over the past 12 months and pier was down 44%. it's interesting how they're saying buy the one that's

upgraded by raymond james to a strong buy from a buy and they say while microsoft may have missed pureis now one of the only what they call hyperscale hybrid cloud vendors basically able to integrate infrastructure and software as a service. they note that the company is keeping margins under control by cutting costs. also, they note a stock buyback. the target, 62 bucks, higher than the stock has ever been in nominal terms, but inflation adjusted microsoft was an $80 stock back in 1999. not to be negative. >> you know, the analyst points out the cloud students is still pretty nascent. next year for estimated 2016 estimates, it's about 17% of revenue. so there's still a lot of runway there for the cloud bit for microsoft. stock two, synchrony is getting an upgrade to an outperform. they had downgraded it to a market perform ahead of that anticipated spinout because of anticipated technical pressures. bmo expects big cap returns of 20% dividends, 60% buy backs in 2016. the fed had prohibited that when it was part of ge. the price target is 36 bucks a share. >> i don't know if i agree wi

joining us is an energy analyst at raymond james and dan wise. >> pavul, immediate impact on the oilda's new prime minister says the industry will if you are vief without keystone, i believe him and frankly the canadian oil has much bigger problems to worry about like having a couple million barrels of projects canceled or delayed because of low oil prices. if the oil stands were going gangbusters they probably would need keystone eventually, now it's a sideshow. >> i think the first time a major project has been blocked specifically because of climate change, dan, what's your response to that? >> yeah, and that's very important. the keystone pipeline would have put as much pollution in the air as the equivalent of 6 million cars every year. so for the president to block this project primarily because of its impact on climate change is a game changer. he's showing the world that these are the kinds of actions we are going to have to take, we're going to have to rethink how we go about approving our infrastructure projects to make sure that they don't make the climate problem worse. t

we have more from raymond james, and recorrectly called the bottom in august.e bottom correctly, but thinking things look choppy? >> well, the model that turned cautious at the beginning of july and called the bottom much to my pleasure called, and there's retests in late september correctly, turned cautious a week ago. not that we're looking for any serious decline here, but i look for a pullback, putting money to work in the pullback, and i would note we have now had four consecutive down days in the s&p, which has not really happened in a few months so that could change the trend on a short term basis. >> what's the pull back? talking the 8%, 9%, 10%? >> i don't think we'll get 10%. we saw that in the 12% pullback last summer, but you could get a 5%-7% pull back for buying, not that serious on the downside. >> long term, though, it's a bull market? >> i do. i ever since the week of march 2 of 2009. they last 14-15 years. they compound at 16% a year, past is prelude, we have another seven, eight, nine years left in in thing. >> is that -- people wonder, is th

front and center for safety concerns, on the whole restaurant chain consumer traffic an issue, raymond jamesrices next year should blower maybe that will help, the group overall but right now we've seen a slew of names -- >> chipotle, buffalo while winnings all lower under upcoming. >> out performing mickey d. >> stay at home order mcdonald's killing with amazon mickey dee, everything else crushed if you look at legacy retail capacity, restaurants, it has been ugly in the last three months, they haven't participated in the most recent rally. >> you said we have i make children get a salad with whatever they order, always. >> better eat the salad. >> thank you nickel, on earnings story chipotle down big you mentioned visaa. >> again, the consumer stupid avsays consumer is fine the companies are guiding down, again if you are looking for a recession, in is a thing called corporate profits so if you look at year to -- earnings to at a time 341 companies out of a -- 500 revenues down 5 1/2%. >> quarters or year. >> for the quarter earnings down 4% the financials consumer stocks had kind of like

one quick stock to watch this morning, microsoft upgraded a strong by from market performer raymond james stock up more than 1% pre-market trading. >> 60 would be a multichip year high and that's been pretty good run in recent years. >> what's wrong >> nothing. i'm not laughing. i'm just happy. happy to see you, sir >> you're totally punchy. >> yeah. i have a cough, guys. look a little robitussin. it's a big week for energy with opec ministers meeting in vienna on friday. we'll talk oil prices in just a moment. also security in focus this holiday season. former nyc police commissioner, this is very important, ray kelly will join us right here on the set to talk to us about precautions in place right here in the big apple. we're right back with him and a lot more. surprise!!!!! we heard you got a job as a developer! its official, i work for ge!! what? wow... yeah! okay... guys, i'll be writing a new language for machines so planes, trains, even hospitals can work better. oh! sorry, i was trying to put it away... got it on the cake. so you're going to work on a train? not on a train...on "t

>>james: over a year after he was arrested the murder trial begins raymond chow has begun prosecutors and the the case against an and reputed san francisco game later the fbi raided the clubhouse last in the corruption probe that indicted 28 others including defenses of hundred and 60 criminal charges included a murder the trial is expected to last the next two or three months. >>james: police say the 40 year- old shot himself in the foot with a rifle and settles the apartment complex the same bullet went through a floor and and of having a child he was a ride on several felony charges including being a felon in possession of a gun the child remains hospitalized but is expected to recover. >>james:: it happen a lot it o'clock friday morning in california for the owner of the california said the have not been burglarized in years and fear of the stores will be targeted a man convicted of killing a police officer five years ago was sentenced yesterday to the judge sent to the fore when euro three life terms in prison he was found guilty of shooting officer after a bank robbery and foot

>> raymond: i would rather be shot by a smart gun than sell one. >> this cbs sports update is brought to you by ford. i'm james brown with scores from the nfl today. cincinnati improved to 7-0 for the first time ever. carson palmer throws four touchdowns and arizona scores 20 unanswered. the saints win. minnesota wins its third straight on blair walsh's 36-yard game-winning field goal. and derek carr throws four scores. for more sports news and information, go to cbssports.com. and crack, and storm. but mother nature can't stop us. the new 2016 ford explorer. be unstoppable. here at axa, we believe that when it comes to helping you reach your financial goals, taking small, manageable steps can be an effective... and enjoyable approach... compared to the alternatives. push! i am pushing! sfx: pants ripping how you doing eddie? small steps. at axa, we'll help you take the next steps, with more confidence. for advice, retirement and insurance, talk to axa today. has anyone seen steve? oh, there he is, at the top of the christmas power rankings. because when you enter best buy, it means you're gifting on all cylin