telco, reits and home builders were hit hard. technology has been a safe trade for all intents and purposes. there is old tech with yield. then you have names that are growth stocks powering a lot of the games. you have to think about the xlk, the technology select etf. it is an interesting etf when you look at it. apple is the largest hold. my view on apple if you watch, i don't think the stock is going anywhere. it is going down to the lower right and you have a bunch of names. there are growth stocks there. now you have no growth tech. microsoft, intel, cisco. i think they are deemed to be defensive because of the yield. but they are not particularly expensive with good sheets. one last bucket and this is something people don't think about. 10% is u.s. telco. verizon, at&t. >> i saw that. >> another 5 to 6% is mastercard and visa. this is cyclical, defensive, yield. it could be vulnerable. the facebook and google names stick out. obviously facebook has tremendous gains. google is near the all-time highs. if you have hiccups be

that killed a whole revenue stream for the telco companies, namely sms's.how big of a bugbear, alistair? alistair: it could be a really big one. the main problem telcos have is, you know, these over-the-top internet services are acting more and more like regular phone calling services. and yet these internet companies don't have to play by the same rules. it's a bit similar to the net neutrality debate that we had over here, where google and other companies seemed to fight that as well. especially in europe, where the telcos are the big businesses in europe and they don't have big internet companies, it does not bode well. emily: alastair bear -- alistair bair and alex webb, thank you. a private equity firm has raised billions for its latest round with plans to keep pursuing software and other tech buyouts. this latest fund is more than twice the size of the pool of -- in 2014.a bravo raised coming up tomorrow, do not miss an interview with the father of google cars. the google founder turned tech pioneer joins us in the 3:00 p.m. the civic hour. up next, f

yesterday energy over took telcos as the best performing sector year to date as wti rallied 4%. in general, though, it was a theme of taking money off the table. the ecb failed to deliver with sufficient dovish action or rhetoric. either way we didn't get what we expected. markets lost a little bit of steam. as we look at the bond markets, we did see yields tick up yesterday around the world as that ecb action didn't come in in terms of easeness. and today we're just seeing yields move a fraction in the other direction. 1.616 on the ten-year treasury note. >> all focus right now on korea. breaking news out of north korea overnight. successfully tested a nuclear war head in what might have been the most powerful launch ever. very worrying. covering that story for us from asia. >> good morning, morgan. while it was enough and it was major enough to really rankle the markets over here. we did see heightened risk sentiment and no surprises. south korean benchmark was down. dollar juan was relatively stable around 1100. important to note the bank of korea met today and elected to kee

telcos. >>> good morning and welcome back to "street signs." a leading european business lobby has said china could face a backlash if it doesn't open itself up more quickly to foreign vice president. th investment. this comes before the summit. taking a look at chinese preparation for hosting the big event. >> reporter: empty highways, police barricades, sewer grades completely sealed off. not the first country to host the g 20, but holding the event like no one has done before. taking place in the tourist town. 9 million people. one of china's weltiest cities. home to some of the nation's most successful companies like alibaba. none of that is as important as putting on a good show for u.s. leaders, like president obama, who are coming here to discuss the global economy. so business is at a stand still. >> hung joe has been a ghost town. normally bustling with residents and tourists. all the shops have been closed down: ordered by the authorities to stay closed until the end of the g 20. >> the city declare add holiday for the week as a way t

the telco retailers are placing the galaxy 7 modems withth models with the 7 features. >> that will continue to be good news for the share price. as you bohnt out, it's been a troublesome few days. in fact the watchdog is warning people over using the note 7. i want to tell you about details in the electric vehicle front. chevrolet releasing details about the bolt 2017 modem. they are saying it will have a charge. that has surpassed many expectations when you look at their competitor tesla 3. keep in mind it is due to hit this year you will have to wait until next year to get your hands on one. >> that tesla scar heating up. this is your chance, just ahead, will you have the chance as many others will, to live in the white house, sort a few million dollars more. >>> but first, we just received new video of a cargo plane. it's sliding down a runway in indonesia. the plane was reportedly carrying nearly 15,000 tons of fuel. no one was injured. the airport is closed while they removed the fuselage and assessed the damage to the runway. are you watching "early today." are you watching "early tod

worst performer, telcos. that rotation we were just hearing about. more to come.ack in a couple of minutes. >>> sit time for must reads. my pick in the "washington post" titled congress is showing how not to fight the zika virus. it is notable because it comes from the directors of disease control and prevention and the national institutes of health. they write that this is a major issue and the money so far that has gone to fighting zika and to trying to find a some sort of solution here is being drawn from other places, and this is going to run out in september they say without additional funds. the path forward is unclear. the progress against zika will slow considerably. the cdc will have to reduce emergency response staff. nih has to delay or halt work on vaccine. pretty dire warning. goes through the numbers here. i highly suggest you read. more people than i thought confirmed 1595 pregnant women have been infected with the virus here. 17 babies born in the u.s. with birth defects related to zika. major outbreak in puerto rico. two demean communities in miam

it's a typical satellite or telco top set box. it is today. this could be in your house today. this could be in your house 20 years ago. an investigation led by senator blumenthal and i found that one, approximately 99% of american paid tv subscribers, rent this set top box from their paid tv provider. two, subscribers spend on average $89 a year renting a single set top box. but the average household spends $232 a year on set top box rental fees renting about two and a half boxes. in other words, over 10 years, the average family is paying $2300 to rent this box. $2,300. that's a good business to be in. the set top box rental market may be worth $19.5 billion a year. now, this little device i have here in my hand is an amazon fire stick. it costs $40 for a consumer to purchase. and there are many other devices like this out there such as roku, chrome box, apple tv. consumers today can use these devices to watch content from multiple sources. hulu, netflix, for which they also pay. but this device cannot play the programming package that consumers pay for each month from their

i think you stay long tech as an overweight and you also do it with telco and utilities. >> you don'te any other choice. >> you don't have any other choice. >> up next, final call from the options pits. hey gary, what are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. steve, other than making i'm here atme move stuff,rade trader offices. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade. >>> welcome back to "op

animal especially those in need, like chance, the cat, injured after being shot with an arrow last year telco her mom says that she became so angry that she donated te to help in the cats recovery also began raising money i given to cleveland apl >> we do vallone stands hot chocolate standsds the neighborhood police department sometimest will buy some stuff. >> it is the viewers who are helping to make a difference at the cleveland apl, thursday volunteers will be taking pledges by phone and online fro the live broadcast will also feature social stories about some of the special pet house here.l l >> homeless animals, some that have come here through the she made investigation department that have been victims of cruelty or neglect.ti index of evidence we are a nonprofit advocate for thousand each year and cannot do that without support. in addition to donating money from the telethon you can also adopt, the epl is extending adoption hours from 8:00 a.m. until 8:00 p.m. and lower the rates for dogs, $88.50 for cats isabel and her mom will be participating in hope that others will follow suite

verizon is a utility, telco. pfizer, good drug company. nike, down grade today.tarbuck's, looking pretty good, so we've got a restaurant, an entertainment company, an apparel company, a drug company, and we have a phone company. again, who comes to play and regina and her boy are met fans. okay. stick with cramer. experience the thrill of the lexus is f sport. because the ultimate expression of power, is control. this is the pursuit of perfection. mary buys a little lamb. one of millions of orders on this company's servers. accessible by thousands of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack. with the help of at&t, and security that senses and mitigates cyber threats, their critical data is safer than ever. giving them the agility to be open & secure. because no one knows & like at&t. >>> his two yachts and private plan can't help a scammer escape from the millions he stole. don't miss an all-new american greed at 10:00 p.m. and remember, stay right here where you are to see our documentary, ground zer

as sam gerard said, also from verizon is a utility, telco. pfizer, good drug company. nike, down grade today. disney, starbuck's, looking pretty good, so we've got a restaurant, an entertainment company, an apparel company, a drug company, and we have a phone company. again, who comes to play and regina and her boy are met fans. okay. stick with cramer. marco...! polo! marco...! polo! marco...! polo! marco...! polo! marco...! s?? polo! marco...! polo! scusa? ma io sono marco polo, ma... marco...! playing "marco polo" with marco polo? surprising. ragazzini, io sono marco polo. s?, sono qui... what's not surprising? how much money amanda and keith saved by switching to geico. polo! fifteen minutes could save you fifteen percent or more. polo! you can finally break up with bleach. lysol with hydrogen peroxide. >>> his two yachts and private plan can't help a scammer escape from the millions he stole. don't miss an all-new american greed at 10:00 p.m. and remember, stay right here where you are to see our documentary, ground zero rising which starts right after this. it ju

you get relentless protection. [ baseball bat cracks ] [captioning made possible by telco productions, inc.] follow us on facebook every time a new charter school opens in massachusetts, it takes funding away from regular public schools in that area. this year alone, charter schools will take more than 400 million dollars away from neighborhood public schools. that's not right. instead of draining even more money from neighborhood public schools and giving it to charters, let's devote public resources to all of our students... don't lift the cap on charter schools. every time a new charter school opens in massachusetts, it takes funding away from regular public schools in that area. 400 million dollars away from neighborhood public schools. that's not right. instead of draining even more money from neighborhood public schools and giving it to charters, let's devote public resources to all of our students... not just a select few. don't lift the cap on charter schools. vote no on question 2. feel warm inside. feel our big beautiful candle. feel glade. sc johnson. >>> in march of 2016,

disruptive high-speed optical, telco services, or overseas with the al i baba which has doing nothingut go higher. it takes an awful lot of factors to overcome the downward pressure going into a slowing economy, but these companies show that only can the pull-down be stymied, it can be beaten with the right set of circumstances that happens more often than you might think. joe in new jersey? joe. >> caller: hello, cramer. thank you for all that you do for us home gamers. you make a difference. >> thank you, i appreciate that. thank you very much. >> caller: my question is about hewlett-packard inc. >> yes. >> caller: a broker called me and said that it's the stock to buy. what a 3.5 dividend, high earnings and low p.e. ratio? should he keep it our sell it? >> this is very tough. i didn't like the cost going in. i thought they could cut costs. that being said, it wasn't a disaster, it just wasn't great. i'll take a pass, and if they get the cost cutting right, then -- ♪ hall -- hallelujah >> caller: in may you discussed tractor company, since then it's down over 12%. is there a fundame

telco are doing well. economic news as well. yur pine retail sales were up in the month of july, up 2.9% on the year end figure. that was better than expected. we did get mixed numbers coming from the pmi from the german and eurozone pm. is. those were disappointing. we did get the spanish, italian, french numbers. better than forecast. here's the market by market view. down by a third of 1%. once again, some of the banks are weighing on the index. downgraded by deutsche bank's zet rah dax. we're seeing similar percentage increases for the others. >> in terms of the u.s. close on friday, there was plenty of confusion over what the job reports means fort fed. we eeked out modest gains. the s&p -- seeing percentage gains and the nasdaq for the week. 0.5% gain led by utilities because those are dividend paying stocks because we saw the interpretation of the jobs report. >>> let's talk about that report. knock on payroll increased by just 151,000 in the months of august. that was below the 180,000 that was expected. steve leash man

it was the only stock to be up on the dow after some of the telco companies released early sales figuresor the iphone. >> apple is a bright spot. the ten-year treasury note yield. check on the mood that has been a source of concern for the markets. this jump up, ten-year above 170. 171. yields plat this morning. we'll see if that lasts. a global phenomenon, higher yields have spooked equities. the question is is the great big bond rally coming to an end? how sharp and violent does that come? a lot of talk about that at the alpha conference. >> the 30-year moving up closer to 2.5%. d it depends what the driver for yields is, if it's rate hikes, not so much of a problem. if it's a lack of confidence of central banks to efficate things moving forward, that's more of an issue. we'll bring remarks from people far brighter than us in just a moment. let's look at european equities. they did decline yesterday around 1%. bouncing back today. perhaps that's a sign that the u.s. figutures market can hold to gains when we get the open. slight gains across the board for europe, other than spain which

of your portfolio should you allocate to what you're calling out safe dividend stocks, yiels and telcos much to the more sicyclically oriented company. >> what i'm saying is that there is not this pending disaster. there's two stories to the market. between now and some kind of fiscal stimulus stable boring companies like those at risk consumer staples companies everybody loves to hate i think they continue to lead the market even though they look frothy. once you get fiscal stimulus it's then that the bank stocks and discretionary and industrial names really start to hit it very hard. >> thank you so much for joining us this morning. >> we know what we're watching, delivering alpha all day here on cnbc. >> don't want to misogyny of that. "worldwide exchange" is done. "squawk box" picks up next. so many things can go wrong. it's my worst nightmare. every second that power is out, my city's at risk. siemens digital grid manages and reroutes power, so service can be restored within seconds. priority number one is keeping those lights on. it takes ingenuity to defeat the monsters that live

wow, one of these big telco companies places an order with cisco and cisco's stocks jumped. are those days just gone? >> i this i that we still have big orders, but we have a big revenue line as well. >> right. >> i think that the internet of things and this digital transformation that's occurring, there's 18 billion devices and people connected to the internet today, and it's going to 50 the more value we help bring our customers. i think there's a bright future ahead. >> i agree with you. you know i think i stock is so cheap of these big technology companies. it's probably the cheapest i follow. that's chuck robbins of cisco. "mad money" back. >>> coming up, could the world's most populated country be ready to roar? some of the world's biggest friends are making a big push in the people's republic. what does the state of china's economy mean for the markets that you are invested in. find out when "mad money" returns. when it's time to potty train... has an all-around stretchy waistband. and pampers' protection. so you'll see drier nights. and they'll see their first underw

finally consider telco equipment disrupter acacia communications, acia, which just pre-announced better than expected earnings this very morning, but simultaneously announced the secondary offering of insiders who certainly have every right to ring the register if this market will run. remember, acacia came public at $23 in the ipo dog days of may 2016. the secondary offer. you usually have to chase this one to get into it. the combo of the increased float and the weak market has brought it low. i believe this secondary will be widely oversubscribed, and while you may not be able to get in on the deal -- yes, it could be that tight -- at these levels i think acacia is a bargain. you can buy some, down $12. market wide selloffs happen. they may last longer than one day, but you have to take advantage of them. start new positions when they bless us with lower prices for be rallying like crazy on, say, a lower dollar or higher oil. and of course end of the month markups that happen like clock work a few days before the end of a quarter. look for mix of stocks. i say some too strong to get

utilities, telcos, staples, safe havens, unchanged. >> if you go back a couple of years also, utilities have continued to outperform. then you had health care the one sector also -- >> you say those are the places to get out. >> exactly. >> rotate from. >> because they've been the biggest beneficiaries of these macrotrends off central bank policies, falling yields. >> the market is exactly where it was last may. 15 months ago. there's been no movement in the s&p. >> pete, if you are inclined to be a bill miller guy -- >> which i am. i'm listening to these guys, and they're talking about, well, all the money has been in these places, and they've been performing. yeah, i do think there's a rotation. that's why i am not sure why you're quite as bearish because if there's a rotation out of those and they're still going to be looking for equities and still looking for yields, sounds to me like you're telling me, look, tech, that sounds like a great place to be still. the semisounds like a great place to be still. there are places out there where valuations are great, the yields are fantastic

the stock is called a little bit higher with the consolidation of the telco sector in france.ere focused at the back of last week on the german banking sector. senior management at germany's isgest bank, deutsche, talking about the strategies, what they now need to do. that message is coming from john cryan's office. we do not know if we will have dramatic steps from this man. i expect he is paying attention to what is happening with mr. draghi this week. , and everybody else in the banking sector, must have their fingers crossed this week. >> absolutely. when you look at the issue of european banks, it is negative rates. there is no doubt that as that rate goes more negative, it is punitive for the financial system. to be fair, the ecb recognize that. when they went more aggressively likelihood is a lot more qe and a lot less in terms of negatives. guy: what is happening in italy i, the banking sector cannot fail. that economy desperately needs a functioning banking system. germany, in many ways, is in the same position. >> it is. you will see a lot of the entire banking syst

certainly, you know, staples and telcos have been that defensive lead but we think underneath the surface you're getting that shift in leadership. >> the credit markets generally do a good job of telegraphing where the overall market is going. i find it interesting you have high yield at an overweight and investment grade at an underweight. could you explain that implication on the equities narc. >> no, fantastic question and it's really about, you know, the -- how much we think rates are actually really going to go up and how much coverage you have. all right, so spreads are an investment grade have come down a lot and so the question is, from a total return perspective which our clients care a lot about, you know, can those returns, can those spreads absorb maybe a 25, 50-basis point move in rates. you're getting close. in high yield you still have that coverage so preserving your total return. so we like high yields here and our view even if we muddle along a muddle along scenario of 2%, gdp growth for another two years is going to be great for high yields. you can sit and clip it. >>

ofl, these days a lot services traditionally offered by telcos are now available from apps.s a month to get unlimited data for voice calls and messaging as long as you do it from inside the line app. unlike messenger, line is not a simple sms service. ecosystem, entire streaming video, music, and you can order a cab or even find a part-time job from inside the line app. if that's not enough, for 11 bucks they will throw an unlimited twitter and facebook. haidi: pretty appealing when you put it that way. this comes straight out of this year's biggest tech ipo. how does that fit in with their global tech strategy? juliette: you know -- pavel:, you know, line used to talk a big game about extending in latin america, the middle east, and since the ipo they have narrow the focus to the three countries where they are already dominant, japan, thailand, and taiwan, and including indonesia where millions of users will be buying new smartphones and downloading their first apps and choosing between messengers. so you can see this move as something of a defensive strategy, about user at

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to watch the programming that they are paying for is to rent a box from their cable, satellite or telco company. consumers cannot watch their tv on these third party boxes. $2,300 every year for this. good business. that's what the fcc is considering right now. how do we transition to the modern technology? we did it with the black rotary dial phone. it was a big thing in 1992 and one in eight had slate dishes but they were not willing to sell hbo and show time and cnn to them. we had to change the laws so that the 18 inch dishes had to get access to the programs. it has to be reasonable, but we changed the law. who would imagine a world today without direct tv. who would imagine that? we had to create it. so this device is something that only the fcc now can do something about. the fcc's proposal is going to insure that through an app created by the cable company, the cable programming package can be played on the third party device so that consumers are not going pay huge rental fees. it's that simple. that's what this debate is all about. we don't want consumers to have the rent a bo

i'll tell you telcos in south dakota and i suspect in most of the states that members of this committee represent are very concerned that unless more specific information is made available soon, their investment plans for 2017 will be seriously impacted. i find that and i think most members find that to be unacceptable. so the question has to do, and i would like every commissioner to answer the question as to whether you will commit to do everything you can to ensure that rule carriers receive in a timely fashion all information they need to make critical investment plans for 2017 and beyond. mr. clyburn. >> yes, i think we have rarely do we move as quickly as a persons or entities want us to, but we have been very deliberative. we have, for a number of years now, i could speak for several years of first hand, really our laser beam on providing service to areas where there is none, and to provide efficiency for those dollars that are limited. >> yes, my staff has been working with the bureau to provide information and to expedite the answers that the carriers think they may need. we've

>> we've been underweight utilities and telcos since the beginning of the year and underweight energy. we're long the -- and overweight cyclicals, industrials, materials, technology and consumer discretionary. >> and specifically utilities because they're interest rate sensitive. >> because they're interest rate sensitive. in addition to that as the year progressed they've become increasingly overvalued. they'd already given back about a quarter of their gains from the start of the year to june as of last friday. >> doesn't the hawkishness this time around feel a little bit different? because there's this notion that we're in a state where it's very critical. there are two paths to be taken. you either step aside and risk the overheating economy and overheating asset bubbles essentially, i mean, that's what i read. those are my words, not rosengren's words, or you go the other way. it almost sounds like the fed has to thread a needle. maybe that's why markets across the board are selling off. we're not just seeing dividend yields because if things were getting better, we wouldn't nece

given the rotation coming out of high-yield defensive sectors like utilities and telco which i think on cyclicals that have a year less well. people will still want dividends in this environment. it is ok to pay up for some high-end dividends in the attractive places. david: what about financials, what you like there? chubb, that is one of our preferred names. this is a very high quality franchise. that is bringing together a legacy strong franchising and personal as well as a commercial line for some -- commercial line. they year be selling opportunities as well. we think that is another good attractive dividend paying name. alix: great stuff, thank you for a much. morgan stanley wealth management. car,g up, and apple sports a potential investment has investors wondering what type of car the iphone makers are actually working on. take a look at where stocks have opened there is an s&p up by 6/10 of 1% and the nasdaq of 6/10 of 1%. all of these in a positive for september, the risk on hawkish rally continues. ♪ ,avid: this is bloomberg go coming up later today on bloomberg television