schlumberger over halliburton.ob in florida. >> caller: thank you for taking my call and for everything that you do. >> you're welcome. >> caller: my first grandchild was born just about a month ago and i wanted to buy her some disney and put it in a company reinvestment program. >> i can't think of a smarter thing to do. i would do it. that's long term. when your granddaughter grows up and do you think they're going to be focused on whether the lone ranger was a bomb or not? i don't think so. let's go to ralph in new jersey. what's going on partner. >> caller: i would like to know about praxair. >> i like these air plays, the compressed gases. i like airgas and i also like praxair and it's a winner. that's the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. >> coming up, supersonic stocks? defense plays shook off sequester fears to power higher this year, but at all time highs, are these stocks about to hit a ceiling, or could they be ready to kick in the after burners? cra

schlumberger, a jamname i can'ty often enough. profits at the world's biggest oil field services company schlumberger rising almost 50% from a year ago. higher overseas activity offsetting weaker revenue in north america. now, the rival company baker hughes missed the mark and shares there are getting hit. there you see them down about 3% as we look on the board. earnings off 45% because of weaker profits in, yes, north america. sue? >> ty, we're going to go out west. we have an update on that giant southern california wildfire. it's now forced several thousand evacuations not far from palm springs. plus my sometime partner on "power lunch," simon hobbs, is with me. you have an update on some late-breaking news with the travel and leisure stocks. >> you'll probably be aware the big hotel groups are lining up to start reporting earnings. next on the program we'll have an analyst with proprietary access to millions of their future hotel bookings. hear the shocking truth about one area of the lodging industry. that's next. "power lun

. >> schlumberger, anybody?> i'll take halliburton over schlumberger. >> you can almost do everything except the refiners. i think it will be that broad based when these names start to catch fire. >> up next, want to know how the best are investing? a stock star picker reveals three areas of the market he's zeroing in on and what names he's buying. >>> plus, with he know how jim chanos feels about caterpillar. >> we are short caterpillar inc. iconic american company, leader in its class, but tied to the wrong products at the wrong time in the cycle. >> after the break, mike murphy is going to tell you why jim chanos is wrong, and he's going to try to convince josh brown of that as well. one heated dog fight over cat just ahead. [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td a

schlumberger up 6%, baker hughes down. that is beat and a miss.ger is the word's largest oil field services company. better-than-expected profit. drilling activity outside of north america hit a 30-year high. stock hit a 52-week high. lower than expected profit with baker hughes. tracy: thank you, nicole. we'll see you in 15 minutes. >>> on deck, one ceo says president obama's health care law will fundamentally change the workforce. andy putser in, chief of hardee's and carl, jr.'s parent kke will tell us how. ashley: the market is just slightly flat today. the u.s. dollar has been strong of late but somewhat after mixed performance overall. as you see a little weaker against the euro, the pound, the canadian dollar and the japanese general. just the peso down against the dollar today. we'll be right back. [ shapiro ] at legalzoom, you can take care of virtually all your imptant legal matters in just minutes. protect youramily... and launch your dreams. at legalzoom.com we put the law oyour side. the most free research reports, customizable charts

no price war at schlumberger or g.e. or honeywell or boeing.issue where the competition is so ferocious in tech, that nobody can make a profit. >> and 71% beat iing on the earnings, andp 3 beating on the sales and revenue. >> not bad. >> that is fine. i would have expected a lower ratio on the sales. the earnings mixed, and remember, we have a lot of companies like the unitedhealth and i come back to that, carl, because it is one of the bull market stocks that is like, well, a dow stock and what is that up there? shwell, the drug companies are very, very big companies and i want people to focus not just on what is going on with microsoft and intel, because if this were 1977, i would be very afraid, but this is 2013, and we are seeing some great earnings from industrial industrials. >> and no question. we mentioned whirlpool and honeywell and g.e., and we haven't, and we are getting news here on john paulson who was at delivering alpha earlier and it appears he will be called as a witness in the trial of fabrice to tour tourre, and there were fo

you've got schlumberger. i think national oil well kb embarko is a good name. so should tensions go down, i think the stock goes up. >>> coming up next, we have given you the fundamental take on the markets on the back of that better than expected june employment report. right after the break, we'll talk the technical side of the equation with louise yamada. and later, earnings season officially kicking off with alcoa. back in two. humans. we are beautifully imperfect creatures living in an imperfect world. that's why liberty mutual insurance has your back, offering exclusive products like optional better car replacement, where if your car is totaled, we give you the money to buy one a model year newer. call... and ask an insurance expert about all our benefits today, like our 24/7 support and service, because at liberty mutual insurance, we believe our customers do their best out there in the world, so we do everything we can to be there for them when they need us. plus, you could save hundreds when you switch, up to $423. call... today. liberty mutual insuran

. >> no, no, no, just go buy schlumberger if you want to go drilling.iush. >> caller: i want to think say thank you for all your years of wisdom. i want to send a big shout out to my girls and i'm calling about channel adviser. >> ecome, we like ecom. sachs had that 360 thing that really worked. people need a good e-mail strategy. salesforce.com has been a major push for me for five points and i am not backing away. arlene in illinois. >> caller: yes, here i am. okay, i sold 2,600 shares of at&t among other tech stocks last november. i missed the raw naturally. do you recommend rebuying it now? >> no, no, verizon at 47 is better than at&t at 35. let's verizon come down to 47 and pull the trigger then. i'm not done. i'm going to carl in pennsylvania. carl. >> caller: hi, jim. my question is about nordic american tanker. >> i think they're going to have a good quarter but it's going to be a trade. if west texas intermediate icoms down, it's going to come down with it but i still endorse the stock. dave. >> caller: first time caller. just a little thank yo

ashley: okay, schlumberger you pick as your number one. >> number one. ashley: why?re to north america and expose to international markets and we think are growing faster than north america. schlumberger is the biggest internationally and deepwater and places like middle east which are on fire at this point. ashley: jason, let's get to some your picks. you like chevron. why chevron? >> well, chevron is one of the few companies in the very large integrated space that actually has good visibility on production growth and we actually think that chevron can grow four 1/2 to five peers a year out through 2020. that visibility and level of growth is really unmatched throughout the sector and you get paid 3 1/2% through a dividend in the meantime while they're growing. we think that is a pretty good combination. ashley: jason has small exposure right now to the shale game. is it cheaper for these companies to buy smaller companies already in it or do they go ahead and put in infrastructure for themselves? >> that's a really good question. i think in the u.s. you really have

ge, schlumberger, honeywell, interpublic, state street and sun trust to mention a couple of the biggies follow. >>> still to come, emerging market currencies, they have taken a battering in recent weeks. some of them hitting record lows. is it time to bet on the emerging markets? we'll discuss that with our host here in the studio, steven englander after the break. we'll leave you with a view of the heat map to see how the european markets, how they're trading right now. [ male announcer ] it's time. time to have new experiences with a familiar keyboard. to update our status without opening an app. to have all our messages in one place. to browse... and share... faster than ever. ♪ it's time to do everything better than before. the new blackberry q10. it's time. >>> hi, everybody. welcome back. still watching "worldwide exchange" here on a friday. i'm louisa bojesen. we have steven englander with us, from citi. you were just saying, steven, that you have a currency angle on tax avoidance, which i'm assuming some might find quite surprising. >> well, a lot of u.s. firms have lots of mone

schlumberger, yum, they're doing an amazing job on the margin line. that's what the bears were nervous about. they were saying the margin wuss start to collapse. we're not seeing that. i want to see if this continues next week, and guidance -- no one has dropped a bomb in terms of what's happening globally. the u.s. is strong. europe is stabilizing. china is mixed. maybe on the margin bra glil is a little softer. but these are not surprising at all. >> but, stephanie, how many companies are actually raising their guidance in terms of the year in. >> i think that people are expecting companies to lower guidance because of the macro, and so, i think that just keeping guidance and being conservative i think is enough, and again, i think the margins story could actually provide upside. and then, if you get the second half of the year recovery, if the economy continues to improve, and that's a big if, but i think it will, then the top line can start to improve. imagine that. you get margins and revenue at the same time, and you get positive operating lever

oil service king schlumberger had an amazing quarter. they have higher revenues and higher margins because they have so little competition. gross margins are going up. in fact, some of these big dogs have really killed off the little guy competition. both companies have sizable defense businesses while defense orders in the future may be slowing, there's very little competition for these contracts. hey, we know that from lockheed martin, which reported a marvelous number, and it has a stock that simply won't quit. or northrup grumman like we promoted last night on "off the charts." going higher. the defense names are the strongest stocks in this market this year. sequester? no competition. how about the railroads like csx and union pacific? monster good numbers. the rails, they don't compete. they raise prices routinely when contracts roll over. that is a fantastic business. let's talk health care. united health groups dazzled the dow. why? because these health maintenance companies have to -- well, to look -- i think they stopped compet

i can throw out whether it is a chevron, or a hess or a schlumberger or halliburton. is the best place to be right now? >> i think the best position space is the u.s. e& companies, the oil and gas producers driving this energy renaissance in the u.s. one of the most surprising things to me is over the past two years the u.s. s&p, e& p index is flat. essentially all of the economic return has been going to other companies. that's the space and today it looks very well positioned. >> john, if that would not case and this is joe by the way, do you believe the expectations, the earning expectations of the street for energy equities are basically too low? >> i think the expectations are too low. i think it is difficult to make a giant commodity call. i think that's dependent on the overall economy. i am not making big bets on oil prices or gas prices. what i think people are missing are the cost structures. in 2011 and 2012 we saw the refiners substantially out perform everything else in energy because their cost structure was falling. now i think we're on the precipice of

shr schlumberger and halliburton. >> is everyone just waiting on the fed? not a market-moving event. put up the dow here. i think the certain here overall is businesses are not expecting demand to pick up and don't add to their inventory levels. this normally is not a market-moving event. today it was, not dramatically so. take a look at the major sectors, kind of a risk-off day. health care, utilities, consumer staples, see what i mean, a risk-off kind of day when you get these kinds of sectors and leading fractionally overall. the big discussion is what big bank earnings will look like and these are the bright spots for bank earnings. earnings will be up across the board. the whole market knows this. everybody has been buying bank stocks like crazy for the past month and a half. here's the bank index, the bkx, the white line is the s&p 500. look at the outperformance just in the last month and a half because everybody has known who is watching this that the earnings will be outperforming right across the board. here's a number of good points about this, t

i don't know what conference calls they are on, whether it be schlumberger, whether it be johnson controls really should read these conference calls, because they're -- i think that the basis in fact has to do with what these great companies are reporting, not what the journal says. >> he said 20% oshds in the u.s., right? >> the g.e. quarter was superb. remember, margins were expanded. what more do people want? to me these are the breakout quarters. i just don't get all of the woe and worry, because it's just not substantive. >> that's good, because we're only a third through, and we're going to get a lot this week, and we shouldn't judge from mcdonald's. emerson orders this morning just terrific. these things are not supposed to be happening. every bank except for first horizon was terrific. capital one, we don't even talk about that one in a quarter. >> all right. there you go. >> jim, congratulate q and faber. sexiest journalists alive, they won the prize. >> no way. >> unfortunately we're not on the list. >> i'm done. i don't know what to say. >> isn't he taking tweeting lessons from

. >> david, some of the names you like at current levels, cisco, dupont, emr, jpmorgan, oxi, schlumbergeromy will be okay to good and at some point become self-sustaining. a lot of those businesses are selling at very, very reasonable valuations. you're going to get a multiple expansion on higher earnings. we think they're pretty low risk because they haven't done a lot. 10, 11 times earnings is a good entry point. >> guys, we'll see what the next few weeks of summer bring us. david and alan, thank you so much. >> thank you. >>> shares of zynga are surging after a shake-up in the company's c suite. don matrick will take over as zynga's ceo next monday. mark pincus will stay on as chairman and chief product analyst. good morning. >> good morning. >> of what do you think about the move? can don rescue zynga? i guess at this point looking at the stom reaction, he better. >> well, i think don brings a lot of credibility to zynga from the video game industry. he has -- he's been successful at both electronic arts as well as microsoft. in particular strength in building game franchises and plat

>> but mcdonald's within the confines of holy well, ingersoll-rand, general electric, schlumberger, are these not also companies -- >> much better than expected profits. >> but hey, you know, i just see orders going up. you know, the conclusion that things are weaker does not jibe with the facts. i mean, i always -- >> from an industrial standpoint. >> right, from an industrial standpoint. we haven't seen the retailers yet. i don't know what they're going to do, but i do think before we reach a conclusion, coke cola was really the only quarter last week that i didn't like. coke cola another inexpensive priced thing. i'm not talking the goldman sachs tax on aluminum cans, i didn't know about that. >> it's just warehouse, don't worry about it. >> what was the number based? >> 5 billion, something like that. >> a piece in "new york times" about goldman sachs, basically inflating the price of aluminum by keeping it in a warehouse and moving it around unnecessarily. that's essentially the gist. >> the article was quite precise about how a lot offed commodities have an investment banking tax

schlumberger earning of $1.15 a share, beating the street by a nickel. revenue came in line.e're focusing on detroit this morning. in cities like charlotte,ing. atlanta, and chicago, we're revving people up to take a lap around the legendary nascar race track with drivers from the coca-cola racing family. coca-coca family track walks give thousands of race fans the chance to get out, get moving, and have fun... all along the way. it's part of our goal to inspire more than three million people to rediscover the joy of being active this summer. see the difference all of us can make... together. >>> welcome back. appliancemaker whirlpool out with quarterly earnings. the company earned $2.37 a share for the second quarter, excluding certain items. that is 5 cents below what the street was expecting. revenue was slightly above consensus. but whirlpool raised its forecast citing strong underlying trends but the stock looks like it is down 1%. we'll track it as we get closer to the opening bell. >>> google shares are under pressure after the internet giant missed expectations. victo

love them and margins, but this company has the most outstanding growth even better than slumb schlumbergerrms of expectations and everything is falling to the bottom line, because they don't have a cost structure, and when you have local advertising and consumer goods and advertisers, you will take shares from everybody. this is google. when they read this, they will say, holy cow, we have been panted by facebook and they use the verb. >> they were panted. >> and google is not monetizing mobile. >> it is great, but facebook said, basically, hey, listen, you want to advertise with us, it will cost you more money than last quarter and not less. >> so a company that managed to execute over an incredibly important challenge that it faced. >> yes. and zuckerberg, look, these guys didn't know how to run a call last time. >> right. >> this call was a well orchestrated and it had the feeling of tom brady and the patriots with 2:00 left. okay. you just know he had total con fi dense and the first quarter was not that good and the second not, but the third and the fourth quarter, they put them away.