especially when you have a period of underperformance, it often follows up without performance on the other side. >> now obviously, anybody watching this thinking about their own portfolio, thinking about having tore start using that money, but let's assume for the purposes of a moderate investor. what you think it should be in, you're recommending 30% in large cap stocks that you hear about on tv. 15% in national stocks, 10% in mid cap. 35 in bonds, and 30% in large cap. tell me why. >> if you had set your allocation, this is a typical investor who can accept a moderate amount of risk, and it might be 60% stock. but what you're doing is trying not to put all of your eggs in one basket, and have all u.s. blue chips. that's where you might be the most familiar and be the most comfortable with, but as we just saw, if you had that, you had out performance in that area, and underperformance in the other categories, so when you rebalance, you're going to take advantage of some of the areas that haven't performed as well in the last 12 months ago. but you have to have international stocks a

and right knew, you have a situation where smaller companies have underperformed the larger companies. if you look historically, you typically get out performance from the smaller companies. because you're taking a little bit more risk, and you should be rewarding over a period of time because they're going to grow faster than the larger companies would, but that has not happened over the last 12 months. >> i'm going to talk to you in a minute, but this is a different one, the international markets. don't worry about what the officials stand for versus the s&p 500. in this case, it's in blue, and they tracked each other for the last year, and then they started to separate. international markets of lower an annual basis. tell me about that. >> that's true, and you have seen what we call corallation, acting in tandem, and you're starting to see a little bit of divergence here. but here, you should expect greater return for the additional risk that you're taking, and yet over the last 12 months, this is another one of those anomalies where it's underperforming. what that sets up for are

>> it is interesting europe has underperformed the u.s.mas especially given the contrasting central bank. i think it has been driven by the fact that investors think the ukraine and russian conflict will have a better impact on europe and the european economy, we have had weaker data. investors thought the european economy was further along than the data is showing now. is whether question good news is bad news. meeting september coming up and jackson hole right behind us, will we enter a time where bad economic data and european equities rallying on expectations of the ecb doing more? faqs they are traditionally months where we have seen large stock market the kleins, but the pressure ukraine story is not going to go away. >> it has clearly had an impact on psychology. i think the bigger question is will the economy with the highest exposure, will we see impacts in sanctions come through in third-quarter earnings results? unless there is a big risk to energy supply, investors have learned to live with it. haven't had a massive selloff you

typically risk assets like small caps underperform when volatility rises. another factor that started to be a little bit concerning to me is the fact that housing, which has been a really good backdrop for earnings has started to show some weakness at least from the economic news that we're seeing around housing. and so that's been a really good tailwind. and now it's not necessarily, you know, as good of a tailwind as we've had in the last couple quarters. >> i didn't realize how levered small caps, the indices, are to housing. 19% of profits for the small caps are from housing. what percentage of that index -- because most people out there are playing it via sml and sort of etf -- what percentage of the index is housing? what kind of weight are we looking at? >> i think you're talking about 19% of profits here. it's a little bit less in terms of, you know, as a weight for the overall benchmark. but really what we're looking for is for earnings growth to start to accelerate as the year kind of progresses. and i think that will get small cap out of its funk

and they have been underperforming. there will be an economic cost. i'm talking about an economy and a slowdown in china will stop people might dark to shout at the screen right now. german be bearish on the economy? a big risk and we mentioned that they will address some of the issues and a misnomer is that they are not just buying germany. they are buying global growth. got a littleng optimistic. and i think we have neutralized that to a large extent in the last 6-8 weeks. we have seen underperformance. another thing that is happening is that china seems to be waking up. a credit condition seems to be there is lows. that there isy another boy on the block. >> coming into the second half, there seems to be a blanket on europe. it appears to get slammed for local reasons. macro reasons.r are you starting to draw a line on the position? ande look at countries characteristics we like. like in theing we context of the level they are at. view, thereint of are sectors that are growing well. and we think that some of the positioning has been normalized. ofa

they talk about the bottom 10% is being be underperforming stores.have been asked, why don't you shut down the stores? they do close some stores every year, but they don't tell us why they don't shut them all. >> the very important point you are bringing up is that the company is questioning the supercenters. talks about the biggest stores being too big. unfortunately, their entire asset base is supercenters. they got themselves in a little bit of a box. >> i remember when doug macmillan was named the ceo. e-commerce atands walmart better than doug macmillan and he is as good as anybody in retail globally. i've been left wondering why hasn't walmarts online strategy been more of a success? is it because the growth they're getting online is just the cannibalization of sales that they would have had in their physical stores? >> cannibalization is part of it. you have to think about your e-commerce business in relation to the other assets you have. consumer a bull e-commerce is still an -- consumerable unprovene is still a business. >> it has not scared

over a certain period of time but hedge funds are ninety nine point nine percent of the time underperforming those two guys and because they simply cannot match the. predict. bill of the that is the heart of these markets there's only really one way to beat the market you have to go like it like warren buffett does which is the take he takes control of the market he owns the market he has the market he's not really betting against the market warren buffet is the market so like i said their departure e and crime of the hedge funds and their low returns nothing adds up two thirds of hedge funds fail but no more i just came out with a report and they also look at it and they find that shockingly pension funds are piling into it if you look at this chart this is from no more and on the left are the percentage of assets held by pension funds in various assets at the bottom on both sides of equities and then the gray is bonds light blue is property and the dark live atop is private equity and hedge funds where you see is that the assets under management by pension funds they put ten percent in pri

and you'll end up with an underperforming investment versus being an the saenl 500.urse there is actively managed funds with fabulous managers, i'm going to tell them find them another time. when the mutual fund delivers great results for a so long, they'll stop accepting new investments because at a certain point when the fund gets too big, it's difficult to beat the market. as a general rule, if you're investing in emu chill funds, you don't want to be an in an actively managed one, the fees are too high. it's pretty staggering. you know that i think your best strategy is to manage your own portfolio than individual stocks. that's what i talk about. that's what cramerica is about. for those who's 401 k won't let you, you want a cheap low cost index fund that mirrors the market as a whole. one that mimics the s&p 500. index funds with the fund, you have a vehicle that will let you participate in the strength of the market without having to spend the time picking individual stocks. this may sound like a really simple solution, but don't overthink it. the whole point

>> well, they've really underperformed since the middle of the year. given up all their outsized gains. and there's a divergence between -- there's not a lot of liquidity in the street to absorb that. we'll see some more fundamental investors jump in. >> and you seem relatively indifferent to the move, or unimpressed to the market moving data points. are we watching the wrong end of the curve? are the fixed-income guys saying we're going through a major change? >> i don't think we're there. the first six months of the year was about the fed ratcheting down their expectations for interest rates. and the regime change we're seeing made a greater focus on inflation. what i'm focused on is inflation break-even yields as a predictor a couple years out. >> thank you for your time, guy. >>> and let's get our traders' picks around the market. >> well, citibank, that is how you play it. better for citibank in terms of inflati inflation. stay in citi. i think there's a lot of potential for growth there. >> i think you stay with ewz. you have a bit of a cushion.

look, jc penney closing underperforming store is a positive for macy's particularly in some of these bnc malls out there where jc penney, the bread and butter of the company was that they owned some of their lower-tiered doors. giving macy's opportunity there. >> let me be more clear. i should have been more clear. is jc penney stealing market share back from macy's that it had previously lost, and was that reflected in part in the most recent macy's quarter? so i'm looking more jc penney opportunity rather than macy's. >> yeah, i don't think so. i think jc penney's opportunity is taking some of the share back that i think they lost to off price, that i think they actually lost to walmart, target, sears. i think when jc penney eliminated coupons, i think their customer disbursed to the deep value retailers out there. that's what i think their opportunity is. i think macy's and jc penney could coincide very well from a longer-term perspective. >> good to have you on. talk to you soon. >> thanks for having me. >> matthew boss with jpmorgan. who's a buyer? who's a believer? >> well, i t

they have underperform pepsi, the last few years, coke has underperformed. does it force pepsi to do anything? i don't necessarily think so. i think they dominate the snacks. who is left out there? i will go back after the news came out how far many months ago that was. we talked about soda stream. it was initially lower, then spiked higher. with the short interest that soda has close to 30%, market cap of less than $700 million, you wonder if somebody out there might take a shot at soda. >> everybody else is wondering, too, when you look at after hours trading, soda stream for sure. there is speculation they could be in play as well. one interesting, there is two directors coke has the right to put on the board now. we haven't seen 13 d-filing yet. it will be interesting to see whether coke is buying more shares. >> does anybody define coke or monster because of this deal? >> i tell you what, the nice thing about coke, you are not chasing the company, they had decent second quarter number, people are looking for a decent inflexion point in the stock we will

they are now underperforming. this is most notably in the u.k.ermany through the third quarter. joining us is a stock reporter. what changed from the first half of the year? central-bank policy stayed the same. most were expecting the fed to change its language in terms of stimulus. it has been more in line with doing more and helping the economy. the ukraine and russia situation has come front and center. thisld say that now with ecb coming up in september and jackson hole right behind us, this should be back to what central banks will do. merkel saying that the german economy faces uncertainty on ukraine? this was because of the ukraine uncertainty that there was this weakness in the german story. , is thate and russia part of the risk for investors that we look ahead to? risk that theya look too. i think investors will be paying close attention to company earnings and whether the company's with the highest exposure to ukraine and russia will see an impact in the sanctions that have been announced and if the german economy starts to show signs

the stock has underperformed and the broader index underperformed when it comes to other restaurant stocksll. weathering the recession, guys, pretty well, and the few years before that, i mean, amazing growth for mcdonald's for the stock. we'll see how patient investors can be right now with some of his new moves as he tries to connect. >> was he the ceo when they sold their stake in 2006? >> no, he was not. he came on board i believe 2012. i have to check that. but the stock is only up about 5% since he came on and you know what the major averages have done in that time period. >> yep. we've seen what it's done the last couple months. it's been tough. thanks very much. more breaking news, this time with john ford. john, what do you have? >> appears a judge in california has denied preliminary approval of a settlement between apple, google, intel, adobe, and tech worker who is allege that a number of firms colluded to prevent poaching of workers from one company to another. the settlement was going to be for $324.5 million, but the judge saying the settlement falls below the range of reaso

and adidas is underperforming so far. the price target was slashed so significantly below with a recommendation changing from a buy to a sell. the dollar is under pressure on friday after we got the weaker than expected payroll number to give support to the u.s. market, in particular on friday's session they weakened into the close. euro dollar is trading at $1.3425. the ecb, the bank of england and the bank of japan meeting. we had stronger than expected retail sales from australia to give a bounce to the currency, but seemingly getting right back in there, we have to try to talk the currency down a little bit this week. we are bringing it together and did have the data in the u.s. a lot of questions being asked about the case of the u.s. recovery. the question is, are we back to good news for the u.s. economy being bad news for equity markets? listen to what dennis gartman told us earlier. >> the fed is not wanting to raise the short end of the curve for another year anyway. the long end of the curve was probably going

the ruble is the most underperforming currency. where are we?d a miniature run in terms of the gas markets in emerging markets at the start of all this. what is your perspective? how do you look at that at the moment? >> i think we come back to what you said about the central banks and they're not moving and so on. >> that's a positive? >> that is a positive environment. the fundamentals on the emerging markets side are not typically negative, so it is a but if it's true the fed is hyper cautious and the other central banks are hyper cautious, we will continue to see carry trades, and that will support e.m.'s. >> and the euro funding currency, we had a guest about the euro -- why isn't it? >> funding currency, typically it has an interest rate. there is quite a lot. if it was that everyone else had high interest rates, yes, but i don't think that is really the case. >> how are you constructing your carry trade at ubs? what is the majority of the base carry? >> i think the dollar is still more of a funding currency dan the euro because typically

and underperform the neighboring countries.is raising the pressure on government to do something new and hopefully hollande will be schroeder has this moment and take onboard not just his own party but the grand coalition to get things moving. unfortunately it looks like that moment is sometime away. >> does france need no forget about these budget deficit targets altogether? >> i think they shouldn't abide to these target fwiss letter. it would be counterproductive. i don't think that massive fiscal stimulus now would change any of the long-term malaise that france is in. it needs reform. it would get figures up in short-term but not the long-term. >> i want to talk to you about e.c.b. and policy in the second half of this year. they seem to be pinning their hopes on credit growth. that demand will pick up and supply will be there. what do you view? do you think there will be a strong pickup for that funding program? >> the timing is very important here. there may still be some uncertainty around the first allocation and the r

. >> do they just underperform home depot every quarter? >> this is the 30th consecutive quarter that home depot sales have exceeded lowe's sales on a quarterly basis. >> for a while, lowe's was doing better than home depot. they had a targeted approach, women for instance. >> targeted not to be confused with hitting the target. [laughter] enough, enough. lowe's, staples, where are we? petsmart. after the bell, we have hewlett-packard. there you have it. >> hewlett-packard will be important. look for bloomberg television as afternoon for those rates -- reports. futures go negative. the 10-year yield does nothing. the euro is the news. euro evenarply weaker in the last seven minutes. american oil. on to the next. . -- on to the next grid. the equity markets. dollar yen, a weaker yen. there is brent. this is janet yellen's worst nightmare. the bloomberg terminal. we had a little bit of a spike down in negative yields. you can see the persistency here. this financial repression that we have enjoyed. this is the price of salvation by our centra

the financials have been underperforming as they have all year.it very hard by the geopolitical worries and by the general mood. therefore, if you are buying equities on the dip, you should be buying the dax. >> wherein the united states should you be buying? are there industries that you like? people,e like a lot of we are bearish on bonds. we think of the housing market fires up again, the yields will go up sharply. we are avoiding staples, utilities, reits. our favorite sectors are technology and health care. >> even though janet yellen said we are worried about technology valuations, she felt they were toppy. technology sector, which is probably apple if you think about it. they are not too concerned about the stock market valuations generally. i still think we are in a world where bonds are hugely expensive. stock earnings yields are about average. >> a lot have investors have been telling us on the right of line. it's not going to keep happening. optimist, so the yield of the treasury market is zero. trend growth is probably two. at some poi

80% of them are underperforming. but are they now poised for a comeback? we're going to ask, next. >> not if the market goes down. plus, we want to know, would you rather invest in an actively managed fund or a passive one that simply tracks a larger index? cast your vote right now at cnbc.com/vote, unless you're driving. vote in our live poll right after the break. we're back in a moment. (trader vo) i search. i research. i dig. and dig some more. because, for me, the challenge of the search... is almost as exciting as the thrill of the find. (announcer) at scottrade, we share your passion for trading. that's why we rebuilt scottrade elite from the ground up - including a proprietary momentum indicator that makes researching sectors and industries even easier. because at scottrade, our passion is to power yours. [ squeaking ] [ water dripping ] visit tripadvisor hawaii. [ whistling ] with millions of reviews, tripadvisor makes any destination better. and cialis for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed

middle of the year, in a terrible shape, well underperforming now it's come up.ta that looked subdued. there's a new high. japanese stocks gains, it's not obvious why. high effort levels in four months, up 2% in japan. but the japanese economy's contracting. they had that tax hike, that's not good news. the prime minister abe will face tough decisions soon despite the rally. lots of comments from food companies. dean foods, disappointment, bigger than expected loss, talking about a rocky recovery from the ceo. balance of the year looks rocky what he says, continued unpredictable and dairy commodity environment. talking about lower numbers in third quarter. most of the big food companies all to the upside today, if you'll notice. cisco matched, the food company, and their revenues beat here, 50 cents in line with expectations. aramark, terrific profit, sales better than expected for aramark. dow's up 33 points. >> thank you very much. >>> want to come back to a story from last week. i was out but able to join my colleagues on the phone at least when we learned of

yesterday we saw an underperformance of the periphery, the ftse and the imex underperforming and that seems to be continuing in today's session. let's have a look at the bond markets. no surprise. we are seeing safe haven buying, bunds going into treasury. the treasury 2.47%, largely ignoring the better than expected nonmanufacturing data that we got into yesterday's trading session and, once again, take a look at the portuguese ten-year yield of 3.7%. in the forex markets, the dollar is holding on to the 11 -month highs, especially after that very strong services manufacturing services data that we saw yesterday. euro/dollar at 1.3373, close to nine-month lows. it's pretty much unchange on the day, but i guess investors don't want to take too much risk. we have that ecb meeting later on this week. the japanese yen against the dollar, 102.51. you would think there's more safe haven flows into the japanese yen with all that risk aversion going on. and the cable rate is at 1.686. we're going to get industrial production in about half an hour's time. so with developed markets continuing

jays and jpmorgan jace and nordstrom is underperforming. [closing bell ringing] david: we had awful news from overseas again. they would react to the bad news overseas with bad news in the markets today. again, shows the optimism. bullishness of all the traders in this market, even on bad news abroad, they boast good gains today. not spectacular gains but healthy gains on the dow, nasdaq, s&p. only the russell 2000 had relatively small earnings. even green arrows there. a lot of earnings. "after the bell" starts right now. liz: breaking news. s&p and nasdaq end at session highs. there is decent market action. great to have larry shover in the house. he says second quarter strong gdp growth is headwind for the equity market. how does that work. >> we have the investment council president. he will tell us when and why he is predicting pullback of equities. we'll ask how big of a pullback. dan stesich from the cme. dan, a nice day for the dow, nasdaq, s&p. transports look good. we had oil coming down so those names got hurt. most s&p sectors c

i think that was an underperforming sector or etf for a better part of this year. i think in a lot of ways it was zeefbing. if you looked at a lot of the components, beth, bath, beyond, lumber liquidators, were doing boarly t. data is one month's data. i don't think it makes a trend, if you look at that shp chart, it's a reversion trade. it's back to the mid-point of the ring. i don't think this is anything you go casing right here. i think it's stock specific. the situation with the home depot, it was a beautiful breakout. >> that stock can be basing four year between 74 and 84. it was under performing the s&p. in one fell swoop, it just got back into line with the s&p and made a beautiful breakout. >> home depot and loees for the last three months outperformed. i here what you are saying. i don't think these are stocks that woke up out of nowhere. i think lowes going to surprise tomorrow. it's starting to narrow the comp gap to home depot. i think this is a stock you can play. >> just to speak broadly to the economy. this is what we have been seeing, right, bette

very underperforming. >> yeah. it's an odd year, seth. i will say that.at team, you're saying hey, that's the world champions, right? i mean the dodgers are the team -- well, they're battled -- the giants -- the red sox have been a battle. it's hard to repeat. you don't realize how hard it is to repeat. there's not a hangover effect. it's hard to be a champion. so this year you know what, last year was their year, right? and this year, it's been a battle, it's been a dog fight. it just hasn't had that same swag. >> seth: now when we think of underperformance, one thing we can all agree on -- 50 cent had the worst first pitch in history -- 50 cent threw out the first pitch of the mets game and let's take a look. and you guys can tell me if there were any mechanical issues with his throwing motion. that looks good. looks good up here. oh! >> he looks athletic, he looks athletic. whoa! [ laughter ] >> hello. >> whoopsie. >> that's like asking millar to write a rap song. [ laughter ] that's how millar's rap song would've sounded right there. >> you can't make

i would say the iwm, the russell 2,000 has been underperforming for months. now, it's a divergence, here's the thing, if we are at a topping process, i don't think you have to keep a klees eye on the russell anymore. s the a broad index, the transports, some of these things are rolling. the up trends e trends has been in place one-to-years. that's what i think you want to keep an eye on, what the bill money is doing right now. >> i thought the fundamental data you decided was very good i thought. this i do think is noise. i think this will pass actually. i think it's going to be driven by earning, i don't know, halfway, maybe a little more through earnings season, i think if we see deals, that will be a good thing. although we saw an anti-deal tonight with time warner. i don't know, i kind of think this is noise, i don't think anyone thought the ukraine situation was cleared up, already. so we didn't do, i didn't do a ton of trimming or buying actually. >> let's talk high yield market. we had a big sell-off there. high yield bonds or corporate bonds have been

factual misrepresentations -- >> neil, do teacher tenure laws still provide a basis for teachers who underperform>> there are certainly teacher tenure laws. i want to point out that probably most teachers are doing a very good job. we focused on tenure a little problem. it is not primary problem. it is a problem in that if you want to remove a teacher who is demonstrably bad, it is a very inefficient, competitive process. even -- rks -- expensive process. to provide some very long due process is very inefficient and that's tough on taxpayers and can be tough on school districts. but teacher tenure is not the primary problem we have in education, in fact it could be a very good way to compensate teachers, if we had school choice, if i want my school to get good teachers and then make money get students, tenure might be a good way to compensate them with lots of job security. so it's not that tenure is bad. it's the system in which it has been placed is the problem. >> well, the community has child in, on facebook we have kathleen gives a nuance perspective. i've seen ineffective teachers who shoul

shares in mcdonald's are underperforming other indices on wall street this friday. comes after the fast food chain reported a disappointing 2.5% drop in sales in july. mcdonald's is facing a tough u.s. market, and also the fallout of a chinese food scandal. sales in asia were down as much as 7.3%, following claims th is is "democracy now!" >> today i authorize targeted airstrikes to protect our personnel and a humanitarian effort to save thousands of iraqi civilians were trapped on a mountain without food, water and facing almost certain death. >> is an obama becomes the fourth u.s. president in a row

it's been a massive underperformer here.t's got that recent bounce on the i caan necahn news. >> thanks for that trade, dan. catch more "options action" tomorrow. check out optionsaction.cnbc.com. millennials are apparently ditching mcdonald's and the company might be shaking up its menu to bring them back. will it work though? we'll have all the details after this break. ♪ when the world moves, futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with paper money to test-drive the market. all on thinkorswim from td ameritrade. ♪ ♪ [ male announcer ] during the cadillac summer's best event, lease this all-new 2014 cts for around $459 a month or purchase with 0% apr. hurry in -- this exceptional offer ends soon. [ radio chatter ] ♪ [ male announcer ] andrew. rita. sandy. ♪ meet chris jackie joe. minor damage, or major disaster, when you need us most, we're there. state farm. we're a force of nature, too. ♪ >>> shares of mcdonald's down more than 7% over the past two m

european stocking have dramatically underperformed the s&p 500, so there is a value there now, or still better off investing here in the united states? dom chu and seema mody, they're going to debate it, next. >>> and what are big investors buying and selling these days? the disclosure filing deadline is moments away. we're starting to get the market moving news already. much more of that will be coming up. keep it right here. you're watching krmt nbc, first in business worldwide. i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, it helps pick up some of what medicare doesn't pay. and could save you in out-of-pocket m

p&g is in the process of reviewing up to 100 underperforming units. duracell batteries and braun electric shavers are reportedly two of the first to go. >>> dollar general looking to acquire rival family dollar for nearly $10 billion. trumping a competing offer from dollar tree. here's how shares of all three dollar retailers ended the day. dollar general up 12%. family dollar, that seems to be the one everyone wants to buy, and dollar tree down more than 2%. gordon reagan now with more on what's behind the battle for family dollar, and whether the stakes could go even higher. >> it's the deal wall street anticipated all along. >> i've been expecting dollar general to buy these guys for 18 months. and i just was surprised that dollar tree, which is a very different business from family dollar, decided to make this transaction. >> dollar general is offering 78.50 per share in cash for family dollar. superior to dollar tree's $74 and 50 cent offer at the end of july. dollar general says the cost savings of its combination with family dollar would roughl

we track the performance year to date, underperforming the s&p year-to-date.ew options to find yields, while and your when to spain for 2.7% and gees like boeing are paying out dividend yields of 3.7%. space is not too hot, not for cold, a lower for longer environment. industrials are fighting headwinds. thumbnails are just ok. the dollar is starting to go back up. although they have underperformed, they are starting to roll over and you are starting to see investors get more to the short side. >> are you bearish on the economy? >> not at all. as we look across the marketplace, the economy is improving. the finals for the equity market are improving. >> you do not believe it? >> i do believe that. >> sounds like you think it is going to be moderate growth, reits versus industrials. ,> as you look across the globe it is kind of a mix. are more than domestic play. a domestic market is in a better position. >> what if rates go up? >> it depends on the speed and 92. if it is a slow grind up, i think they perform pretty well. if it is a sharp rise, they will have a

tokyo testimonial -- tokyo tatemono is raise from underperform to outperform. they doubled their price target for the stock. tokyo electron up over 4%. this is out of a report this morning that tokyo electron with the company it is merging with, applied materials, that is coming up in what they call a remedy plan, an advanced notification. singapore coming out some performance metrics. up a fraction. oh cbc announcing share sales. ocbc announcing share sales. singapore was oversold this morning. .oving averages james hardie was a big drop on friday. a few performance metrics were announced this morning but they did set aside over $400 million condensation. new crest mining had a big loss. down $10 an ounce on friday. i think we are down a further five dollars last i checked. newcrest mining is trading $11 a pop. >> dark clouds over sydney today. be gathering nationwide with the misery index. let's get over to paul allen right now. the weather still looks pretty 'loomy, just like people sentiment out there. explain. inflationhe rate of lusty unemployment rate. i

. >> germany is underperforming spain. the engines buttered in the second quarter.food and cisco out before the bell. pace one of my favorite companies not based in the valley. >> no idea what he said. >> they host websites. so, they h

that is quite possible they had 700 underperforming stores but they could target for illumination. >>hy do you think they are ejecting -- rejecting this bid >> it is quite possible they had 700 underperforming stores that they could target for elimination. >> why do you think they are rejecting this bid? how does sears turn this around? there was a fascinating last chapter in the book. if people read it, they will understand what i am about to saying to you. has been sinking like the titanic ever since eddie lambert took over. i don't think they're going to turn it around. i think the consumer has walked out the door. because there is unlimited selection, the consumer has gone out and will not come back. they have been nothing to improve the shopping experience. all eddie lambert has done is cut cost. sears is neither high-end nor low-end. there is no store experience. aremajority of consumers moving toward one kind of retail arm or another. anybody who is stuck in the middle, good luck. >> that is exactly right. sears has been there a lot longer. >> mckeever joining me, robin lewis.

include the long term right now it is holding 800 million people hostage for the leaders who have underperformed. >> host: you suggest the children and grandchildren have a role to play and i wonder at a drone experience with that recognition coming from that. i would say that one exciting element of what has been years of export, of brain drain is folks like myself who have an understanding of the incredible dynamism of sub-saharan africa and the facts and i believe it is fact one of the most important stories of the 21st century. it may take someone like yourself a little more time stere get to that realization but it is a slight and vintage if you want to do something interesting with technology and of family friends who would pick me up from school growing up in chicago he emigrated here with the offense to agree andrew is working here at the university of chicago. 2005 went back to ethiopia. he went to become a farmer. that is the agriculture peace. the ada you could leave medicine to go working in agriculture in ethiopia to fired yourself contributing and do better to feel more of life and

you have outflows and you can see all of that in stocks that underperform. they are index sales and that is a nice rebound. it looks more interesting this time. >> you see the dealing news out of ukraine. ofseems to be a determinant the movement of the stock market. do you look through the fault of geopolitics? >> yes. to a point. the ukraine was a minor issue and i think that is still the case. are on the margin and they are always negative. however, it is relatively exposure.d there is they need to do something about that. overall, not a huge issue for the markets. >> great to talk to you. we had to the break and there is big news. have a look at the share price. news came out. the news crosses the bloomberg television -- terminal and we will tell you all about it next. stay with on the move today. >> here are some companies on the move. paul pleaded guilty to a conspiracy count. profits surged in the first half and the home builders said that private reservations have risen in july. they plan on opening new development sites during the second half of the

rebalance on rights and persistently high inflation, we argued that all of those and a lot of that underperformso the oflure of credit, the lack allocation within the economy. it is no coincidence that the turnaround of the u.k. economy but dan and early -- began in early 2013 two improve credit provision and the economy. has improved and productivity slowly. unimpressive as yet but slow to pick up. the trade balances and that is why understanding what is happening we think is absolutely key. >> we have seen it to loosen up. mortgage credit. cost have come down a lot. .ot as much for corporate do you think that is about to challenge? >> we do. significant incentives to increase lending. it is a reversal of doing post crisis where there was a significant incentive to contract landing. baynes will continue to fall and the margins on their lending continue to rise. you saw that first half results of u.k. banks. risenheir valuations have , the required return on new and it hasthe return fallen. it has increased in some ways. worried it will create a bubble in the house. they are putting a limit on h

. >> germany is underperforming spain. the engines buttered in the second quarter. have deemed food and cisco out before the bell. pace one of my favorite companies not based in the valley. >> no idea what he said. >> they host websites. so, they host websites for small companies. they are based in austin and virginia. talkingught tom was about priceline. he refuses to take a vacation. >> john kerry is not taking a vacation. he is the world's busiest man right now. mobilebout to have for telecom operators in the united states. one is becoming the new ceo of sprint. >> not buying t-mobile. in sydney.y kerry, let's get a data check for you. esocks, bonds, commoditi bouncing around. oil is amazingly resilient. we will talk about that. on to the vix -- i would guess it would be above 16. most of you show pretty resilient markets to end the week. there is the dow. nicely under $17,000. recapitulate, at 79. what an interesting weekend of international relations. here are the newspapers. >> chaos in iraq. another political crisis. maliki has now sent troops into the green

growth in the advanced economies has underperformed expectations. well, yeah. so much for pent-up demand. talk about stating the obvious. i think the fed continues to be delusional. these guys are kidding themselves. looking at the numbers that reflect economy 100 years ago. they have sold middle america down the road. every central banker in the world is guilty of this right now. stuart: ouch. sold middle america down the road. they're all guilty. all right. thanks very much. everybody. that is it for today's "halftime report." thanks, everybody. more "varney" coming up for you next. in new york state, we're changing the way we do business, with startup ny. we've created tax free zones throughout the state. and startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. thanks to startup ny, businesses can operate tax free for 10 years. no property tax. no business tax. and no sales tax. which means more growth for your business, and more jobs. it's not just business as usual. see how new york can help your bu

and if they are underperforming, it's very hard for the market to do well.y've been aided quite a bit by this tremendous performance of the real estate investment trusts, which are in the financials. they've been benefiting from these low interest rates. that helps the valuation of the underlying properties and those stocks have been lifting. these low interest rates are a very, very good boom for financial stocks -- >> if you want financial stocks to do better, people have been waiting and waiting for the pure financials, the banks to start doing better. >> well, the regulatory cloud's beginning to lift. what you just said, with settlements out of the way, that helps the financials. the european financials, on the other hand, have had a hard time of it this month. >> you still like technology? >> yes, i do. apple. buy apple. >> what about microsoft? >> i don't have a positive view, the same view -- >> all right. have a great weekend. >> thank you, scott. >> second hour begins now. >>> and welcome to the "closing bell," everybody. i'm kelly evans. it's 4:00