raymond james says at $65 or higher, these companies should generate enough free cash flow to fully coverouts at $50, exxon could do it but probably not the others. at the current price level or even less, none of them can. currently dividend yields are relatively high and companies are fighting not to touch them but conco phillips cut last year and the question is who's next? >> jackie, thank you. >> bp, close to a 7% dividend yield in british petroleum, you have to ask yourself, how sustainable is that yield? it's been going higher for wrong reasons, wrong reasons being the stock has been going lower but you've got to worry about bp. i will say this about exxon. i think the last thing exxon-mobil will do is to cut their dividend. but if you see that, that might be the -- >> i want to jump in. i interviewed the ceo of chevron, john watson, looked me right in the eye, not cutting the dividend. that's the reason people bought the stock for decades. >> they don't say not on my watch. >> agreed but there's a difference between not wanting to and not being able to and not to -- >> you have to

now, raymond james says at $65 or higher, these companies should yen rate enough free cash flow to fullyover their payouts. at $50, exxon could do it, but probably not the others. at the current level or less, none of them can. currently dividend yields are relatively high. companies are fighting not to touch them, but energy giant conocophillips tut kuyt last year and the question is, who's next. >> thank you. what do you think? >> b p prk, close to a 7 p% yield. you have to ask yourself how sustainable is that yield. obviously, it's within going hire for the wrong reasons. being the stock has been going lore. but you've got to worry about bp. i'll say this about exxon. i think the last thing that exxon mobil will do is to cut their dividend. i think they'll hell and high water before they do it. if you see that, that to me might be the exact. >> i interviewed the ceo of chevron a while back. looked me in the eye that's the reason have bought the stock. zpl they don't say not on my watch. >> right now, the options market is implying that these names are likely to cut in the same way tha

still to come on "world wide exchang exchang exchange", raymond james chief investment strategist.eaking to jeff in just a couple minutes. don't go way. hello watson. your analysis of social media and conversations on various trading floors, helps us uncover insights. insights that help investors predict market closes, well before markets close. you know, your analysis has helped us improve our predictive accuracy by over 500%. 550.2, to be precise, but we can always do better. i like your attitude watson. and grease in just a minute on dirt and grime 550.2, to be precise, but we can always do better. mr. clean will clean your whole house and every room that's in it. floors, doors, walls, halls he's so tough, he cleans'em all grimy tubs and tiles he'll do so your bathroom looks clean as new mr. clean gets tough on stuck-on stuff cleans kitchens in a minute. mr. clean will clean your whole house and every room that's in it. mr. clean, mr. clean, mr. clean! >>> welcome back to "world wide exchange." yo your wall street setup looks positive. san diego up 29. the dow is on an eight ses

raymond james lowering and keeping market perform on stock.nd james saying institutional investors already increasingly pessimistic about apple's near-term performance. it's not clear if miss on estimates will cause stock to trade in a lower range. apple in a, quote, washed out phase 67 phase. not exactly a ringing endorsement. >> it can't go down much more. >> you're saying -- >> yeah. the second stock in enthera pharmaceuticals. the firm is focusing on the company's upcoming readout on their drug sulpura. the stock could almost triple from current levels, the firm says it expects the drug to be successful due to the trial design. >> amazon bullish on amazon ahead of july 21st consensus according to mkm, too low particularly on international growth and aws, amazon web services margins, aws revenue expected to decelerate to 56%. consent on margins is 400 basis point increase. but mkm says that is probably too conservative. also, second annual prime day. >> i'm waiting for it. july 12th could be a good source of q-3 upside. it's a made up holid

raymond james downgrading from market perform to strong buy retail sales in the second quarter appear softer than expected with disappointing trends in the company's primary offroad vehicle segment. polaris did provide update in june and cited challenging business conditions but raymond james points out the company has faced several transitory headwinds recently including weak demand in the oil and ag markets, adverse weather and product recalls. >> scott wein, he's the ceo, a friend of the show. next time he's on i'm going to ask him do you see price caps. they're getting to be $25,000. >> that's expensive. >> i'm not kidding for an offroad buggy. they're cool and fast, but i wonder if there's a price point and people going in saying that's a car. >> basically, absolutely. >> some of the four-seaters you can go $25,000 on it easy. there you go. so we'll ask scott next time he's on. all right, under the radar stock of the day, pinnacle financial partners, nashville based regional bank with market cap just over $2 billion. piper jaffray upgrading overweight says the company has been do

. >>> despite increasing concerns over subscriber growth, raymond james is sticking with their outperforming, saying the stock is becoming even more compelling into the report. it's our call of the day. pete? >> they're talking about stabilization in some regard. >> can they get over that hump? if so, i think this could be a surprising report. i understand you can understand why they're so bullish. >> got it very worked up. >> look, the stock is down, almost 30% from its high about a year ago, right? that is all multiple contraction. there is room to come down. you can come down to a 45 multiple. >> down 20% on the quarter. it would be the perfect acquisition for them to slow down away from itunes. nothing else there. there's so much competition now. amazon, hulu and everything else. >> tim cook, if you're listening, a great place to put your cash. >> a final look at this day and a look ahead at tomorrow's big earnings when we come back. ♪ [announcer] is it a force of nature? or a sales event? the summer of audi sales event is here. get up to a $5,000 bonus on select audi models. >>> welc

. >> and our final two stocks of the day, cabela's and dick's sporting goods, raymond james coming outally more bullish on both because of june firearm background checks. there was substantial increase almost 29% in the number of checks initiated through the fbi, which is a leading indicator for sales performance in the firearm and ammunition category. and that category by the way about 20% of cabela's revenue, about 10% of dick's revenues, raymond james rates both market perform. both stocks trading higher today. >> silver a hot commodity lately up 22% in the past month. should you get in now? plus, oil trading closing for the day. we're going to get the final trades when "power lunch" continues. don't move. when it comes to medicare, everyone talks about what happens when you turn sixty-five. but, really, it's what you do before that counts. see, medicare doesn't cover everything. only about eighty percent of part b medical costs. the rest is on you. consider an aarp medicare supplement insurance plan insured by unitedhealthcare insurance company. like all standardized medicare suppl

and raymond james said netflix is a buy and we'll find out carl.n a littl less than 20 or so. >> let's check in with rick and get the santelli exchange. >> good morning, carl. i like to try to pick out trends that are changing and sometimes it's difficult to pick them out in the early stages and by time its evident to more and more, many times it's so far underway. it's so far into the game that maybe it's much less useful. and i think central bankers have missed clues the size of the empire state building but hopefully they don't miss the reversal of prices. they're spreading nationalism. i'm not sheer to debate whether it's good or bad. but it is what it is. it shows up in many forms and many countries and one thing is for certain, people versus those that govern them are at odds with each other. and this new shrinkage or new nationalist situation most likely will result in higher prices. whether it's through trade issues that get unresolved or delays in recalibrating trade issues and brexit all will result in higher prices and just a question of

managing director raymond james joins us now on the phone. welcome. >> hey, how ya doing?> good, thanks. so revenue decline of 15% year over year in the june quarter. operating margins of 23.9%, lowest in seven years. domestic cash down 7% of total. i'm quoting directly from the gillis note of the sell. where is he getting it wrong? >> i think just not looking into the future. i think this is as bad as it gets. the guidance for next quarter is for revenue declines to be better and i suspect as we move farther away from the hangover of the iphone 6 launch it will continue to improve and probably the march quarter when they start growing year over year. i think at the very least, multiple expansion as the year over year trends get better the next several quarters and wen seal see how next year's phone does. i suspect the 2017 version of the iphone will engender significantly more upgrades than we've seen in the last couple of versions, or are likely to see in the 2016 version. >> what did you read into, if anything, of tim cook's tone, if you want to call it that? even some

let's bring in the head of fixed income markets at raymond james. where do you sit on this debate? have benefited in the treasury markets from global events, so typically you would not think it would be that low at this point based on where the economy is. that is starting to reverse a little bit. whether the reverse is 30 or 40 basis points will depend on the numbers. but if you look at the spreads the flatter they are, it tells us there is still room to go down should an event change. it's just not happening. shery: are these high yield and risk free as investors think? guest: as far as we know, there has not been a real test of the treasury credit quality, so the assumption is they are higher yield compared to any other sovereign debt in the world. as far as safety, we assume it is the safest in the land. shery: i want to ring in the inflation factor. if you take a look at my bloomberg, tenure treasuries are in the negative, the lowest since 1980. when you factor in inflation, where do we stand? guest: the economy starts to reinflate and inflation number start to go back up. it

jp morgan chase, raymond james, and others. >>> still to come, ford shares also down, although not nearly that much, with an earnings miss from ford. we're going to dig into why that is raising some fears of the auto rebound that we have seen in the last few years may finally be skidding to a halt. first, let's send it back to michelle at the dnc in philly with what is coming up. >> we've got a lot more coming up. hoping to talk to a bernie sanders delegate. what do they do now? just like the ted cruz delegates at the rnc. when you walk into the booth in november, your candidate's name isn't there. so what are you going to do? clinton or trump? that's the big question. we're also going to discuss just how big a footprint or fingerprint bernie sanders has left on the democratic party at this point, moving so far to the left. what is that going to mean when it comes to november? and also discuss, is donald trump going to try to hijack this thing all over again tomorrow after hillary clinton speaks tonight? that and more, coming up on "power lunch." hello prashant b. co-founder of the fintec

joining us with reaction to these numbers, rob sanderson from mkm and mark kessler from raymond jamestart with you. facebook did so well, it raised the question of are they beginning to take share from google. do you think they're going to continue to thrive here? we lost rob. aaron, question to you there. >> yes. facebook and google are taking the dominant share of advertising dollars. that's played out so far this quarter. facebook continues to gain a lot and twitter at the expense potentially. google had a strong quarter, 24% site growth after what was perceived to be a softer growth. google assured investors so far today that they are continuing to grow at healthy growth rates here. >> what about when we talk about the advertising space for them. as there's so much being spent on this social platform that is facebook, does google need something like that itself? >> they don't need that today. maybe longer term you can argue that google could use a social platform as increasingly ad dollars going to social as well. google benefits on the video side with their youtube offering. you'

with us, jeffrey sod from raymond james is sitting here at post mine, so is rob morgan of citi financial group is out there in the ether somewhere. jonathan is here at post nine. and rick santelli is in chicago. jeff, you've been through enough bulls and bears markets. larry fink probably is not alone in his feeling that we really don't belong at these levels, given all the head winds that the market faces right now. >> yeah, we've been with bulls all week at goldman sachs, over at lord abbott and deutsche asset management. and even they don't believe the $134 estimate, bottom-up operating earnings estimate that s&p has. they think it's more like 125. even if it's 125 at the low at 1995, you're trading at normalized 15.2, 15.3 times earnings. >> so you can rationalize these levels? that's what you're saying request. >> yeah. i think the stock market is going to go a lot higher. >> jonathan, what about you? >> we're not seeing the rush of money coming back into this market just yet. there hasn't been this fear that you've missed this rally so far. we have seen opportunities recently where

and this was from raymond james. it looks like it's going to open fractionally higher.t's $97 a share on that world's greatest technology company apple computers. >> hillary clinton will not be prosecuted in that e-mail scandal. now the focus changes to this. the conflict of interest within the clinton foundation. we're going to discuss that. huge weekend at the box office for universal pictures new movie. the secret life of pets. it's the sixth biggest opening for an animated film ever. you do all this research on a perfect car, then smash it into a tree. your insurance company raises your rates. maybe you should've done more research on them. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. just one of the many features that comes standard with our base policy. call for a free quote today. liberty stands with you™. liberty mutual insurance. >> secretary clinton said there was nothing classified on her e-mails either sent or received; is that true >> that's not true-- >> secretary clinton said i did not e-mail any

genocide is raymond james chief investment strategy. good to see you. thank you for joining us.t more optimistic than people on the show recently. >> are modeled on us out of the way for the first part of january. they targeted the lows in mid-january. a lot of chips on the table. the call was for new all-time highs. i think the markets go a lot higher based on improving earnings. too much cash on the sidelines. i've been in the business 46 years. maria: what happens to the negative stories. negative interest rates. record low rates. recession around the corner. europe still not where it should be in terms of the economy. what about all the issues that divide? >> i don't buy the recession. i did a speaking tour through the balance of mississippi and every third semitruck had drivers wanted. every fast food place i stopped outside help wanted. not the kind of stuff you see in front of a recession. >> one of the biggest things this week is the big earnings coming out. starting thursday and friday come to you with it the biggest bellwethers. we have seen time and time again a the r