taking it from neutral to underweight.ng out a note at this point at $16 placing at an underwei t underweight -- >> down 86%. i think the market cap now, we checked, earlier, it was $400 million. >> neutral all the way down. >> come on. really? >> all right. let's talk housing. morgan stanley upgrades kbh. that's kb homes. they upgrade toll. they increase price targets on dr horton and lennar. they make it clear this is not a sector call. they say growth is going to be slowing. what do you -- >> i think the outlook for housing has been a focus for everybody during the entire recovery. i think our view is not necessarily different from the consensus. we expect there continuing to be growth. we expect it to be moderate. i expect a return to stocks. pulte down for the year, and everybody else is up. meritage reported or warned a week or two ago, and took down expectations heading into the quarter. a lot of this has been sort of a known and, again, looking forward i don't think that there's any reason to think that it's going

they were aggressively underweight. see this rolling back. much more is there to do to get people up to the correct weight as you would see it on energy? rising in argy is pretty steadfast manner. volatility is being underpriced. we had a period without a 10% correction in the s&p. qe smothered volatility. levels intouilt low their risk models. in emerging markets, we have not had many emerging market crises in the past 10 years. that is now being repriced as we lack ofsome cases, the the properties in the emerging markets come through. at 52.9%. trading we are beginning to come off it now. we still don't know what iranian oil's will look like towards the end of the year. or what supply we will see. we don't fully understand the implications of those covenants expiring. he was production is definitely down. there is a lot of this in the old market right now. let's say there are a lot of asking, where will the market be again? prices: i believe that until they cause pain and cause people to change their behavior. you've seen this large in the

cutting tesla to underweight from equal weight. the price target is $180, which is quite a bit below where it's currently sitting at $222, but the street can't really seem to figure out the tesla story because the price ranges, even with four downgrades this week, those four price targets cut anywhere from 180 to 450. >> you get to multiples, and it seems silly. some seems to be focused on the ability to increase significantly the size of their production. whether they're going to be successful in executing. >> yeah. certainly so far we're waiting on those delivery numbers for 2015. just a couple of months left. it would seem that they've got a long way to go, but certainly a lot of people are watching that number. next up, kara, live interviews and news from beautiful pasthum bay. the head of apple pay what's your big take-away of the interviews and -- >> yes. they're adding more and more big vendors. they have to get everywhere. i think it's going to work. i thought the interesting thing from google is they had observations about

this underweight situation coupled with the fact that many money managers are just now warm ug up to the notion that they're improving, the chinese consumer is start to go buy goods again. all these sign ves made the portfolio managers frantic, frantic in their efforts not to miss this bullish reranking to use their term of the industrials. they want in and they now use any weakness not to sell, but to buy these kinds of stocks. at the same time, there is now a palpable sense of hatred surrounding the once beloved drugs and health care stocks. this companies that were always so consistent. i think the money that is coming into the industrials is out of health care. ever since that tone deaf health care manager came on tv and bragged about jacking up prices for some old drugs, this cohort has become too dangerous to own. we're going into an election year for heaven's sake and in an election year, nobody wants to champion pharmaceuticals. so the companies people identify with dramatic increases in drug prices want you to think valiant and verizon pharma are being trashed almost daily.

another received a warning for killing a bear that was underweight. mollie: it is nice out today but the overnight temperatures are getting colder and colder. it looks like this might be the best day of the week. frank: temperatures have been nice. we have seen the sunshine out there that has helped to warm us up. the clouds starting to filter in. we sit at 60 degrees in the metro, the wind out of the south at 17. humidity still pretty dry at 40% . as we head throughout the west of the day, the wind stays pretty light. 62 by 2:00, and clouds on increase. thicker clouds by 6:00, and 61 degrees. we are tracking some rain that is going to move in. mollie: coming up, breaking sports news at up isu. new warnings from cancer researchers on the dangers of eating certain types of meat. and why the sales of new homes took a huge plunge in september. news at noon continues. >> this is iowa's news leader. this is "kcci 8 news at noon." with mollie cooney. iowa state university head coach paul rhoads announced that mark mangino is out as the cyclones' offensive c

another received a warning for killing a bear underweight. >> glor: jamie, thank you very much. a study suggests new guide lines for fasting during labor. and why a famed artist will not be making his statement with legos. when the cbs evening news >> glor: for years women have been told it's damage rouse to eat during labor, both for them and their baby. a new study suggests that may not be true and food could actually be a good thing. here's contessa brewer. >> ask moms who have been through labor how they feel about fasting their way through the ordeal. >> it's really impossible, i think, just to feel like ice chips would be enough. >> reporter: for generations the rule was no food or liquid because of the risk of inhaling it into the lungs. especially under general anesthesia. >> good morning. >> reporter: but anesthesia has changed. now typically an epidural or spinal block. a doctor obstetrician at nyu medical center. >> the rules that have been in place about eating and drinking during labor were intended for practices that have been yut dated for den rations. >> absolute

it is concussed and underweight.they fed it some sardines, and they say expensive sardines for a few days. what happens when you have a guest who's real comfortable at your house? you're giving them expensive seafood? they don't want to leave. >> yeah, he's not ready to check out, is he? >> it takes three attempts. >> well, maybe he's just full of fish. you're not supposed to fly for 30 minutes. >> one more attempt. >> oh, look. and all's well that ends as well. >>> just another night on the motorcycle. this was not. this was a very dangerous ride on beijing's roads. in fact, it's one of the main roads. it's about 23 miles long. this rider, though, decided he's going to fly at speeds of up to 147 miles an hour. weaving through traffic, merging from one lane to the next. here's the thing. not only is he going way too fast, he's also not even supposed to be on some of these lanes because apparently motorcycles are banned from some of the lanes on this road. >> it's crazy. driving at that kind of speed on open roads. al

underweight. [laughter] you don't downgrade to overweight. sorry, my mistake. are looking at ten minutes to go here. the s&p trying to eke out its best week of year. will it make it, and are the bulls officially back in charge of these volatile markets? jpmorgan's steven parker weighing in. "countdown" coming right back. the dow is now up 34 points. can it hold? ♪ ♪ opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. liz: six and a half minutes before the close of the session, up for the sixth straight day in a row for the dow jones industrials. let us go first to the new york stock exchange, ashley webster is right there. an interesting move here in these last 17 minutes. >> yeah, it really is, liz. there's two things i've heard about on the floor or today, will the s&p finish above 2010.51? if it does, we can say this is the best week of 2015. and the other big sto

today, barclays trimmed its 12-month target price and rated the shares underweight.nalysts have been skeptical of tesla's future since the company's model s unveiling last week. here to discuss, dando left, an analyst at jefferies who covers tesla. dan, you are saying buy. why? guest: as far as i am concerned, all of the negative data points have not been confirmed by management. it has all been downgrades and data points. if you think about tesla, you have to think about the long-term story. they are building a new car on the same production line. they have to deliver it. they have to actually get it ramped up. these are baby steps they are making. you have to look at the long-term story. you have to look at 2016, are they going to lower the battery costs. we have done in-depth research that shows you can get the battery costs down to $125, literally 50% decline. you have to look at all of that and then you have to think about the demand out there. the demand is very big. that is the other piece of research we have done. demand is there. the cost of the battery is g

after getting downgraded to underweight at barclays.ohnson made the call. >> why this call today? >> really just taking a look at the likely ramp of the model x. we realize that 4q we are only talking 15 to 100 cars. we've actually been at 19,000 cars next year for a while. what we've seen is now realization on the part of the market that, yeah, that's probably going to be a slower ramp than some . >> it's that long outlook on the model x. >> you are a pretty good hater on the company by virtue. words that you use in the record, you missed four negative data points. yet, you only cut the price target to 180 from 190. why should i own the stock at all if i believe all of these four things that you list here primarily the one where you said, look, the -- you say no way this company is not the next ford. >> we're making a valuation call. it's not the hate them and sort of, look, they've been successful. they do have a future as a nearby luxury maker. we just question for a while that -- is that worth $200 and more a share. we think just wi

samari was full-term but substantially underweight. she has several birth defects, including a cleft lip and palette. >> once i saw her, it made me like sad, kinda depressed, but it's something that i eventually got over it, because i mean she's gonna be here regardless whether her lip gets fixed or not. i mean she's my daughter and she has to be taken care of. >> areil was still homeless and waiting for her public housing to come through. but now with a newborn baby to take care of. >> so what kind of future are you hoping for for samari? >> i definitely want her to have a better education, a better group of people to be around, a better society to live in. i mean for the time being we're here, so we make the best of it. but when i definitely get a chance we definitely moving, somewhere away from here. >> these people have decided that today they will be arrested. >> i know that i'm being surveilled. >> people are not getting the care that they need. >> this is a crime against humanity. >> hands up... >> don't shoot. >> hands up... >>

a veterinarian call to the site said the horse was severely underweight and malnourished. it was immediately removed from the house on mckinley avenue in derry where police say a woman was keeping three dozen pets in poor conditions, including 17 with six cats, three dogs, a guinea pig, and an iguana. >> we determined that she had fallen on hard times. she was unable to care for the animals. luckily, she voluntarily gave them up. jean: police say animal waste cover the floors of the home and cages. the stalls were filled with manure, and many of the animals had no access to food at all. the spca in stratham are going to work to bring the animals back from starvation and treat a parasites. police say they are working with the woman, and right now, no animal cruelty charges have been filed. >> there are no charges right now. jean: the new hampshire spca says the animals won' t be ready for adoption until they are healthy again. that will be a costly rehabilitation process. they are asking the public for donations to their sos fund. wmur news 9. shelley: if you would like to

large company but a bigger underweight to u.s.mall cap because the valuations are much higher and those expectations are much higher. >> sandy -- >> granted that still means -- that doesn't mean there isn't opportunity in those markets. we think that going into more quality oriented companies is the right way to play it given the expected volatility we're seeing. >> understood. so sandy, let's get a little more micro if you think there could be better days ahead. which ones are you looking at? >> there's a handful we like. the smallest company i like is taser, $1.3 billion market cap. they make the nonlethal weapons for police and military. with all the headlines, whether it's ferguson, how do we stop all this force, et cetera? with their body cameras it's actually -- they've done studies it lowers the use of force by about 59% and citizen complaints by 89%. so i think it's going to be companies like this that are going to stay in vogue and do quite well. another company i like is a railroad called genesee in wyoming that's a best

we will keep you up-to-date on an underweight. underweights are a little different. not getting an endorsement from rick heitzmann, either, even on square. rick: i think you will see the stock come down a little bit because everyone was expecting maybe in m&a -- maybe an m&a event. now they have to share a ceo. tom: it is like sharing speaker of the house. how about a morning must-read right now from hallen -- from outer hunt. gekko jamesrt hunt k. polk, who many historians raises a great president, only served one term, with speaker for four years. first two when his mentor, andrew jackson, was president. his later tenure as governor of tennessee went -- was a failure. we need to bring in phil mattingly. the cubs are toast. phil: i predicted weeks ago when vonnie quinn asked me that the dodgers would smoke the mets. so my predictions are irrelevant. tom: i love the single phrase on mr. ryan from wisconsin -- "agree to certain conditions." what are the gop and conservatives going to agree to? phil: this is all about 40 republicans. caucus.e house freedom paul ryan wa

the bear appears to be underweight, is missing a paw, a nonprofit says they will it will build a habitat for them if it's but feel bad for him. we were curious about was the real thing or not. steve: but of course with no potty would have to be upright. and the weath and the weather turning colder and the wider. l.l. bean duck boots are the footwear of choice. sharon crowley tells us that the company cannot keep up with the demand. reporter: this woman and her dad shopping for a the popular l.l. bean boots known as duck boots. she came here to the ridge hill mall because.goods were sold out on their website. >> we have to wait like a month and a half. >> roster during the holiday its popular reporter: so we asked l.l. bean and they sent us this statement saying that we are not in the business of disappointing customers and would never knowingly or wantonly do anything to undermine brand affinity and loyalty. >> i highly doubt that l.l. bean is not reading this on purpose. reporter: one of paltrow became a fan of them. >> a couple of years ago when of paltrow and around the letter and she

we have been underweight for the last 45 years. it is still -- for the last four to five years.t's still too early. jonathan: india speaking about brazil. a country that kept chasing high rates of growth. it sacrificed reforming. are we over emphasizing the role but the fed? we should be focusing on the specific countries? to group alls hard of these countries into one basket. we have to look at the fundamentals. with gone past the stage of valuation. we need to start differentiating on that. in terms of china, the orientation toward moving from an investment led growth story to one more consumption led. it won't be as smooth as we thought. that has bigger ramifications on asian a.m. which has more to come. jonathan: we have set so long in the developed world. or bad?e, is it good it seems like a ridiculous conversation. thushka: that is the question that the markets are asking now. the big point is we have the central banks that are handicap, because they have taken so many measures. -- the why the market tax cut that we're getting from em. we are seeing that in terms of low in

a veteran veterinarian said this horse was severely underweight and malnourished. a woman was keeping nearly three dozen pets in deplorable conditions including several chickens and the pigeon missing a wing along with three cats, several dogs and a guinea pig and eguana. >> luckily she voluntarily gave them up to the stratham spca. ray: police say the stalls were filled with my newer and many animals had no access to any food at all. veterinarians are going to work to bring the animals back from starvation and treat them from a variety of illnesses and parasites. the spca says the animals will not be put up for adoption until they are healthy but it's costly. you can find information on donation at our website. reporting from stratham, ray brewer. wmur news 9. erin: police say richard pen ye was being held when he allegedly called someone he was not supposed to have contact with and is now charged with stalking. a separate hearing is also set today on whether to dismiss charges stemming from a violent incident in 2013. he was charged withholding a gun to his broth

guy: where is the market most underweight, but you think that underweight will close? little bit and commodities of last month into this month. are there other -- patrick: the biggest area in the risk of a snap is probably short of the commodities sector, mining sector. i am not a view to be buying that. i think we have a supply glut that will play out over the next year. that seems to be the consensus. anna: you are not with the guys who say we have seen the worst? patrick: not yet. i think what will changes we comes when china that was more monetary stimulus that will be announced. they have a doing it since 2014 and they are probably behind the curve where. armstrong, he stays with us a little longer. guy: health care. caroline hyde. caroline: health care and a little bit of booze. the first, i want to dig into one particular deal, a combination of health care companies. these are, after we saw talks start, coming to an agreement to merge, and will create a leading private health care group. number three in south africa, number one in switzerland, number one in the

very often we have been talking about optimism but we are underweight in the equities.ve a cash position, which is quite rare for us, and we are sitting out that period of volatility. grosspeaking with mr. among others, it is a recalibration and readjustment. how are you recalibrating into the fourth quarter and in the 2016? something dramatic, or are you playing golf? richard: i think the recalibration has happened for us, but we have to keep on our toes and think what will happen next. we are a little bit underweight inequities. we have cash, we have long duration bond, and credit. we are constructive on credit but we are not expecting a recession. we think the earnings story is flagging. tom: within the revenue and earnings dynamics of equities, are they linked to central-bank policy, or can you look at them as a separate continuum? richard: i think they are not disconnected, but the idea that -- the u.s. has delivered great returns for investors since the crisis, driven largely by earnings. there have been buybacks but it is not just an inflation story. support of c

so where are you overweight and underweight? where are you looking to place your bets?of the areas that i really like, emerging markets broadly speaking, but i do like looking at the emerging asia. i think that from a financial position, a lot of the companies are in a good position to weather a rate hike by the fed. the exchange rate volatility that we might see. the financials to me look very attractive. but europe is particularly interesting, and today is an interesting time to be talking about it because with about 12.5 hours we will get an europeanent from the central bank. the expectation has been set that they might expand or extend their asset purchase program. if you look at the results of their bank lending survey that they just published, it suggests to me that quantitative easing over there is having the desired effect, and they might not need to do any more quantitative easing. maybe in the short-term, we get a little bit of disappointment, but over the longer term i think it presents a good opportunity to look for growth in europe. angie: does that give re

a veterinarian called to the site said this horse was severely underweight and malnourished and immediately police say a woman was keeping nearly three dozen pets in deplorable conditions including 17 chickens, seven birds like a pigeon missing a wing along with six cats, three dogs, a guinea pig and an iguana. >> we determined she had fallen on hard times and unable 20 care for the animals and voluntarily gave them up to the stratham spca. ray: the stalls were filled with manure and many animals had no access to any food at all. veterinarians at the stratham spca are going to work to bring them back from starvation and treat a variety of illnesses and parasites. the spca says the animals will not be put up for comes to until the animals are healthy. it's costly. you can help cover those costs. go to our website to find more information. reporting from stratham, ray brewer wmur news 9. erin: a man accused of holding a woman charge sincere now facing new charges. richard penney was being held at a state facility when he called someone he was not supposed to have contact with. he is scheduled

this underweight horse is one of nearly three dozen animals rescued from poor conditions in derry, new hampshire. six cats, a pigeon missing a wing, and 17 chickens are some of the others. a complaint from neighbors brought police to the house. they say the owner fell on hard times and couldn' t care for the animals. she' s given them up to the spca and is not currently facing charges. a teenager faces life in prison, convicted in the stabbing death of another teen in new hampshire. jurors found 19-year-old tristian wolusky of rochester guilty in the june, 2014, stabbing of aaron wilkinson. prosecutors say wolusky and two others drove to the victim' s madbury home to steal money and drugs. the accomplices testified against wolusky. randy: there' s now a third option on the table as education leaders discuss the future of standardized testing in the commonwealth. yesterday the commissioner of elementary and secondary education suggested making a hybrid of the existing mcas and newer parcc test. it' s not clear what exactly that would entail. a vote is scheduled for next month on whether

one of the tightest markets out there, people are very underweight.of the markets that a lot of folks ability has the willingness to continue using it. that is a positive thing. >> hsbc without with a call that says is not going to be a huge crisis like in the past because more of the debt is not dollar-denominated. there is more flexibility. the currency channel is more flexible. is there any risk of a full-blown crisis, or do you not see that happening? fed makes one of nervous. there are a lot of known unknowns. we know the data, but were not sure who owns it and where it is the system, and that makes people nervous. that is white em is d rated. for a long time, at this point in the em weakness that we have had, we've had problems somewhere. but we have not had them yet. em has been out of favor for 5-6 years. policy has been week for a long time. we have not seen meaningful issues yet. that has me confident. scarlet: rather complaining -- rather than comparing em in the past to now, what about to the financial crisis back in 2007? ben: it's slight

tom: how will they respond to one of our boats going, how many knots to be go underweight?underway? by,ral stavridis: we cruise show the flag. it is not anything military. we are not launching missiles but these are international waters and we need to demonstrate freedom of navigation. vonnie: how fast could this escalate? admiral stavridis: it is highly unlikely that china is going to come with direct confrontation. they will conduct close surveillance and overfly our ships. we will warn them on the radio. i doubt we will see missiles flying. but it is of a piece with a growing pressure between the united states and china. vonnie: is it an exercise in keeping military morale high? admiral stavridis: i would not say morale so much as it is emphasizing we have to be free to operate on the high seas and in international airspace. tom: next time you're here, we will speak of the philippines. fletchervridis, the school of tufts university. we say thank you to jon ferro in london for that coverage on hsbc and their lower rate call. major know from steve major. bloomberg go is ne

you talk about services coming underweight.d hoped to come to the enterprise. >> including the ipad and the 6 s and 6 s plus flows through the enterprise. >> trying ho told the 50 day. >> new data. we're going to dig into that. >> on a morning when yum brands -- we dug into their business on taco bell breakfast visits and what that might reveal about mcdobld's recently launched all day breakfast menu. here to break it down is cfo genglick. he joins us once again. jeff, it's good to see you back. >> good to see you, carl. >> you are measuring traffic, essentially, just passive foot traffic, right? >> that's right. >> what have we found from mcdonald's since they launched this thing? >> the good news is consumers seem to be loving it. we're seeing foot traffic up 9% across u.s. locations. that's 14,000 mcdonald's stores. both for active check-ins and passive desection. showing a 9% lift since the launch over the first. >> when taco bell did the same thing, they saw a multiple of that. >> taco bell is a good comparison because we

i would be overweighted in those areas and underweighted in em still.we have financials and a mixed picture, how do you think earnings are going to play out? we've got 20 seconds. >> i think a mixed bag. clearly the themes are strong dollar, cost cutting, shrinking revenues. that's going to plague us right through the end of earnings season. so it's going to be a little struggle. liz: big headlines on a constant basis. great to see you, david. thank you so much. >> thank you. david: david joy of ameriprise, it looks like a win, a close to the upside for the week for all major indices, i'll hand it to david asman and melissa francis. happy friday. melissa: to you as well. david: the dow and the nasdaq are higher for the week, the dow up for three weeks, let's hope it's a bull run. robert gates telling fox president obama's micromanagement of the military drove him nuts, his words. is that why things are spiraling out of control in the middle east right now? our panel weighs in. melissa: high alert in jerusalem as hamas calls for another day of rage. we'l

>> yeah, well, let's start with industrials because i actually have an underweight on the sector because i think the dollar is going to continue to rise. that's going to hurt multinationals like caterpillar so even though they could have a great earnings report today i still have some what of a dim outlook and then as far as energy goes i'm neutral on the space. we have started to see a -- we've seen rig counts come down dramatically. we've seen oil prices rise a little bit but at the same time production hasn't kept up or drop in production hasn't kept up with the rig count drop so i'm still going to be neutral on the energy stocks. >> we have to talk about apple. you're overweight technology, traders are pricing in a 10% chance of an apple earnings plunge for the quarter. what are you seeing? >> well, i think long-term -- first of all i'll say long-term i like apple. their long-term growth prospects look great and the stock is attractively priced. at the same time, its hard to predict on a quarter by quarter basis what we'll see out of them. they normally have been pretty good but yes

. >> they're so underweight. they are only fed small amount of alfalfa hay every two hours. chris: the owner of the non-profit farm was allowed to keep 20 horses. they are going to make multiple trips to monitor the health of the horses. >> it's just wrong. we felt they shouldn't allow her to have the animals anymore. since she is letting them die and neglecting them. >> charges have not been filed against the owner whom we did reach out to. but the phone calls were not returned. online petition has been created to remove all the horses from the property. it has already garnered 10,000 supporters. in orange county, chris papst, abc7 news. alison: the orange county sheriff just announced that a press conference will be held monday on this case. we'll let you know what happened. twitter ceo dorsey giving the employees $200 million piece of the ownership of the company. he is putting a third of the twitter share to an employee equity fund. he tweeted, "i would rather have a smaller part of something big than bigger part of something small." it comes weeks after he made the deci

shares of twitter taking a beating this morning after morgan stanley cuts it to underweight saying the site is loaded with ads and that the average time mobile users are spending on twitter is falling and fall at an accelerated rate. weigh in on that is the author of hatching twitter, new york sometimes columnist nick bilton. fwood to see you again. good morning. >> good to see you. >> notes fairly harsh. had he say the ad load is high, and pricing is high compared to -- it might be too late to change per acceptings about this company. too harsh? >> not too harsh, no. absolutely not. i think we all move this. the stock went up last week just because of layoffs. there's only so many people you can lay off to make a stock go up. >> hoer thoepg they can grow the user base. the thing with moments is i don't believe it's had its moment yet. moments will really shine when there's a big news event like a ferguson or something like that, and it's still to be determined if that's going to happen. >> so, nick, what separates twitter from yahoo? just -- i was just giving marissa myer a bit of a h

we've been underweight biotech all year.re seeing the market realize the valuations were ridiculously high. in general terms, health care is expected to have a positive revenue number, more positive than the broad market. that makes health care attra attractive to move into. >> you also like financials? >> we do. kind the same story. that may be the revenue story and the earnings story. if you look at those sectors of the market in a world where growth is going to be hard to get, we think companies that are able to generate above average growth sectors that are able to generate above average growth are going to be awarded by the market. we think financials fit solidly into that category. >> thank you for joining us. go to our website to see how john is playing commodities. let's get to phil lebeau with a news alert. >> this is an interesting story. there is a lot of interest in the tesla giga factory, the giant lithium ion battery factory they're building. apparently a photographer from a local reno paper has been arrested a

>> no but the underweight positioning in oil and minors in particular is sizable. so there's a yield. and what tends to happen on the way up is it can snowball pretty quickly. the more they go up the more you're hurting. the more you're hurting the more they have to bring them back. price momentum is how you gauge consensus positioning. this was taking down these positions because they started not working. >> what a month we've had. i didn't realize it's some of the best monthly performances. since 2011 i was thinking about the violence earlier in the month in september. so the sustainability of that move to the upside is questionable once the momentum starts if we do see trade. >> a lot depends on what happens next in the u.s. economy. a lot now rests on the shoulders of the u.s. consumer. what you have seen is the down trend and you don't get the backing passed on to wages that makes the recovery look more fragile. i guess if what we have seen is just normal volatility in an up cycle and you find a pick up again in wages, you'll find your recovery is more sustain

jpmorgan downgrades to an underweight peabody energy to an underweight.jetblue airways to a neutral, it makes sense as a neutral downgrade. a couple of downgrades down from jpmorgan this morning. in earnings news, we talked eps, j&j beating on missing on revenue. down on therading trade market this morning at 1%. also missing on the top line. missing on revenue. that theme can be worrying as these companies are able to ratchet up the earnings but they cannot ratchet up the top line of growth there. that to you. stephanie: thank you. are we ready? morgan stanley analyst jay joins us. jay: good morning. athletic wear? stephanie: i cannot hear anything so i will hand this to david. you are bullish. jay: we have a bullish outlook on athletic footwear stocks. nike is our top pick. we are responding to a question we get all the time from investors. how can the strong athletic cycle continue from a stock perceptive -- perspective and revenue perspective. we did a global collaborative survey across morgan stanley reject -- it was not just the u.s. the u.s., europ

barclays cutting it to underweight. $180 price target. morgan stanley price cut earlier this week. sell the analyst says, the x boost, the shares, the margins, 2015 guidance delivers and tesla energy upside, that could be limited. for the week tesla is down 10%. >> stock number two, sun edison. jpmorgan raising the price target to $21 from $19. that doesn't sound like much but here is the catch here, it implies a more than 130% upside. j.p. citing a higher than previously estimated value for the devco business. the stock's overweight rating remains unchanged. >> saying it in french doesn't make the stock decline feel je better. the stock was in the 30s in august. third stock here gap. mkm is downgrading to neutral after disappointing september sells after the bell yesterday. the price target goes to $29 from $40. ouch. the old navy miss goes beyond the old weather excuse and the drag from banana republic will be more severe and last longer than expected. >> a lot of turmoil at that company. number four, edward life sciences. cowan initiating coverage with an outperform rating. $185

. >>> morgan stanley upgrading coach to equal weight from underweight.he firm saying bad news like market share declines and n negative earnings revision have all been priced into the stock. >>> intuitive surgical topping earnings estimates. they were helped by an increase in surgeries using its technology. that news however not really -- actually not really helping the stock. sitting flat with a downside bias. >>> and new regulations have meant big moves in the mortgage market over the past month. diana olick is live in washington with the latest. diana? >> mandy, it is a roller coaster ride that just keeps on rolling. mortgage applications shot up again last week after plummeting the week before. total apps up almost 12% for the week. break it down, refis up 9%. loan applications to buy a home up 16%. so what's with all the swings? well, on october 3rd new regulations went into effect that require lenders to provide borrowers with new disclosures three days before the loan closes. there was all kinds of anxiety that this would delay or scuttle some loa

. >> mostly the sector we're underweight in the german banks. the end valuations. they're all similar multiples. some of the german banks are at risk. >> but the strategy is so different. you have deleveraging taking place in the german banks. when you have such a diverse strategy it seems unusual to hold the sector. >> just because it's valuation call, i don't want to miss out if they're doing it right about the deleveraging. i want to have some exposure there. i prefer the capital situations. >> sounds like you don't trust the banks. >> what i like about them is the multiples you buy them on. >> is there a reason why you're picking those assets? >> do you trust the tangible book value? >> i think the tangible book values are not that far off. >> they're not still just left holding these? >> well, you have that but then the aggregate, they're cheap. they're a play on the european recovery and inflation and you can't have recovery in the euro zone without a healthy financial sector. >> lovely: share versus reversed. early gains rose as much as 1% in the market debu

we're otherwise underweight in most debt in the world and generally overweight equities.greg, uncertainty and indecisiveness some of it pushed whether intentional by the federal reserve, today bill dudley of the new york fed coming out and saying, i still believe unless we get horrific u.s. data, those weren't his words, those were mine, if we get decent data between now and end of the year we should see rate tightening. are they just saying that? what is your assessment with your expertise, greg? >> it is just maddening you want to take dramamine. up down, we might tighten might not want to tighten. the fed has done a terrible job communicating. i'm usually a defender of the fed. think they confuse people with one day another number comes out. there is endless debate will they, won't they, we overanalyze every economic number, this will continue until mid-december. the fed is negative in the story us. because it is not clear. liz: steven, do you think congress pushes it to the last second about the debt ceiling situation? again 4:00 p.m. eastern, you will get a lot more

reacted a lot like 2011, so our playbook, and we upgraded energy materials and industrials from underweight to equal weight a few weeks ago because that should be the best performing in 2011 that was the best performing sectors coming off of that crash low. >> right. >> people on the street are full of guys like me. they come on and say you want to buy quality, you want to buy yield. after you have crashed, that may be good from an investment. you want to buy the stuff that got smoked the most, and that's those three sectors. that's the best trade in our view. the best investment remains those sectors tied to credit expansion following the financial crisis and the demographic of the millenials, which is financials, consumer discretionary, and information technology. >> tony, we'll talk to you soon. >> great, thanks. thanks, guys. >> what do they do in 2016. i think now is the time to begin to think about that. q 1, q 2, 2016, where are we? i think the markets are in a very good place. we come out of the earnings with session. that's what you should focus on. >> we're going to get a great vi

you are holding of the stock is underweight relative to your bench mash.rt of speaks to what the stock has done. we're to date, up 4%. amazon a double. alphabet, google up 38. facebook up 33. what is wrong with this stock? >> like the cloud companies and software security companies better than something like apple year-to-date. i am concerned about dialogue. down 20%. they get 80% of their revenues from apple. their longer lead chips. that's -- for them to not only preannounce and guide lower, the guide lower is the thing that has me worried. we're not sure if that guide lower is pricing on their side or just weaker volumes, and that's the biggest question. i think, look, if they come in, it's not going to be in line. >> in line is not good enough. >> it might not be. that's our very short-term basis. they only do 77 million phones this quarter instead of 78, which is consensus. you and i are not having the same conversation. this is a company trading eight times free cash flow and -- buybacks and dividend and the s cycle historically is never as strong --