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tv   Fast Money Halftime Report  CNBC  August 16, 2012 12:00pm-1:00pm EDT

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i'll see everybody tonight on "fast money". talking about this facebook lockup. we'll see how shares close. apple tv set box, we're taking a look at how this impacts the cable companies because they could see the biggest impact. >> we've come to the end of our time. that's it for street. >> "halftime report" gets under way right now. >> welcome to the halftime show, four hours to go until the close. here's where we stand. stocks are in the green. teches leading the way, the dow is within 60 points or theres about of a 4 1/2 year closing high. and here's what else we're following on halftime. big dividends, high yielding stocks have been the winning trade. is that about to end as rates back up? apple's next frontier your living room. how an apple cable box can disrupt the media industry. we're tracking all the big movers. first our top story the facebook
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face plant shares hit agnew low today as the first of several lockups expires, freeing insiders to sell their stock and sell they are. in the first ten minutes of action facebook traded half of its daily volume. it's been a spectacular fall for the company since interests ipo, more than $46 billion in market cap wiped out. in fact no stock in the dow, s&p or nasdaq 100 has had a worst performance over the past three months. mike murphy, what in the world are you doing now? you're lucky you played this thing with options and you're long gone. would you get in here >> it septembers up pretty interesting. look at facebook from 38 ipo price down today under 20. i don't expect lot of big investors to dump their shares on the market. i don't think microsoft was in facebook for a trade. they were in there for technology and long term. facebook is setting up here where you can take a chance with it. however i would do it with option. if facebook rallies i wouldn't
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be in there to go from 19.90 up to 20 or 20.5. so you buy it with options. >> we'll work on fixing your m.ic up. how about that stephanie. is it attractive with this decline we've seen below 20 bucks? >> tempting for sure but the biggest question that i have after the company reported earnings is that their operate expenses rose and we don't have a lot of clarity in terms of how that's going to progress throughout the year so that's a really big unknown. you have the bigger lockup coming in november. you have a cap on the shares. maybe trade a little bit from here. you'll have a better opportunity post-november lockup. >> brian kelly, you want to get in here? >> what i said about facebook from the beginning and i've said this from the 30s and 40s down to here is you can't buy facebook and look at it and analyze it like any other stock. marc zuckerberg said he won't
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manage the company to please the street. you have weak hands selling the stock. somewhere around here you get rid of those weak hands. if you're going buy at these prices you buy it, take the stock certificate, put it in your drawer and look at it 20 years from now and you'll be happy. >> let's bring in the investor director at gamm investors. so thinking about buying more. your pulling the trigger and buying more as you see the stock fall to a new low today? >> not today specifically. we bought the vast proportion of our stock but i do think you can make a clear valuation case. now it's a case of trying to finesse the next two or three months and work out when the best star to have it. >> what's the problem with this stock? >> i think there are two reasons. a lot of technical issues. the ipo itself got off to such a
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poor start. became a very slippery slope. became an easy target for shorting. i think that the understanding the business model is extremely difficult. this isn't an easy company to analyze as brian just said and when you look at this from my perspective in a number of buckets and value it to $20 a share based on basic advertising basis any social advertising or other fee income which is very unknown comes for free. >> why did you buy shares in the first place. if you say understanding the business model is difficult, why did you get in to begin with? >> you have to look at it as a risk-reward trade. facebook has a billion users. it's the major piece of real estate in social networking. they will find a way of monetizing. there's no room for error and they made a number of errors and that's hurting the stock. providing amazing opportunity. >> when you look at facebook, i
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think they will be able to monetize it. you hear about the want button that they will put out there. is that something long term. they are expected to have 1.5 billion users in a couple of years. is that ad revenue >> there are two additional source of revenue beyond the current and basic display of advertising. one is social revenue in general. might be that. might also be the stories which seem to have started reasonably well but the social advertising will be a key part. i also think there will be a major income from fee income. facebook with their position on "the social network" will have a lot of opportunity to again rapist fees of all sorts and i think the parkt is not applying anything to that at all. >> there seems to be a real interesting problem for facebook in that as more smart phones are adopted as more smart phones come on the market, iphone 5 will roll out by the end the
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year that becomes a negative for facebook for a company that seems to have trouble adapting to this quick move to mobile yet more mobile devices are coming on the market. how do they catch up to that wave? >> i think the mobility is a problem for many companies. it's criticism of google recently. question for microsoft, can they have a mobile strategy. i don't think this is just a facebook issue. all these major technology companies are grappling with the problem of mobile and how they can benefit from 5.5 billion users as they become smartphone users. >> facebook is one of your biggest holding? >> one of our top ten. >> do you continue to have faith in marc zuckerberg? >> i do. i have faith in the company. i don't think they have misled the market. they made it very clear what their targets are initially. number of users and amount of time people spend using the side. it's not about the monetization
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as the primary goal. >> what are your thoughts, keith? >> i don't know what else you can say about that. go lower. >> you think it will go lower? >> yeah, why not. >> you're being flip about it. >> it's broken stock, it's a broken idea. it's not being flip. making the obvious call. unless you have a catalyst why wouldn't it go lower. >> mark, how are you valuing this company because that's the thing we're trying to get our heads around. what specifically are you looking at and why do you think it can go higher from here? >> i'm valuing the company initially based on its display ad basis. i can get it for about 20 bucks a share. this level represents a basic flaw to me. i won't say it will go lower. that's quite possible. in the context of one to two year investment and the possibility this share can go up two or three times over a longer period of time i won't nickel and dime a dollar.
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>> keith it seems you're being fairly quick to dismiss the prospects for this company and what marc zuckerberg perhaps has in store for the future. why are you a nonbeliever. >> in the beginning it was easy to believe. i was positive on the ipo and i was dead wrong. now you have a broken stock with no catalyst so now basically hostage to price momentum. whenever that happens what you need really is time. so i'm not trying to be flip about it. i'm saying you don't catch a falling knife when it's falling. >> you're saying, in part it's a technical break down as much as anything here. for a guy who was positive on the ipo to have a 180 degree turn is fairly dramatic in a pretty short period of time. >> yeah. if you look at our northwest this profession is basically checkered with short term performance pressures. you're not allowed to own this stock unless you run your firm or invest it with unlimited
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duration. the stock is lower unless you fine a catalyst. >> mark, it's interesting facebook lost $46 billion in market cap just since may 18th. it has been a spectacular fall. >> for me that provides a spectacular opportunity. everybody wants the stock at 38 bucks. everybody was complaining they weren't getting enough and now you can't find anybody to buy at 20. >> looking at the mobility issue is there anything out there, any company out there specifically you would like to see facebook take a run at. a lot of people are talking about twitter. is there something out this that you think could definitely make facebook, bridge that gap for facebook pretty easily? >> i don't see an obvious player. i think the problem is that the advertising industry in general has got to get its head around social media and social advertising. all players are in the same position here. i'll develop over time and facebook is in the prime position to take advantage of that. >> what's your top tech pick
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right now? >> top tech pick is probably seagate. in general we like mobility, we like cloud, we like growth in data and we try to play that through device names. seagate giving a lot of cash back to shareholders is our top pick. >> mark, great having you on the show. another reason ipo having some trouble today. let's go the market flash desk for the details. >> good afternoon. we're watching manchester united down 2.24% on the day coming off it's intraday low. made its debut last friday closing flat at 14 where it priced. yesterday the club acquired a soccer star for $33 million. this was creating some buzz. bob pisani reporting earlier the drop because of the syndicate bid has been pulled. >> you bought this ipo also?
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i did. i was in and i didn't write it up, if you remember the stock rallied over 15 up to 15.30 was the high print. >> giant pop. >> compared to facebook it was phenomenal. >> facebook trade up to 40. >> looking at that -- >> or whatever. >> nobody wanted to be long on this thing when it came back down the cindy indicated bid. where is the going? we were on. missed the 15 glad to be gone. >> you wouldn't get back in. >> no. when i called in i was in there for trade aaspect because i thought the deal would be priced better. . >> coming up on halftime apple and google dominating since the facebook ipo and raising the stakes for your living room. who has what it takes to rule the next frontier. all of that is coming up next.
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you. all right. welcome back.
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obviously having some audio issues there so thanks for your patience as we try to work all of those out. we're back. let's talk about the stock market right now. we're at the highs of the day as technology and materials takes the dow jones industrials average within 60 points of a 4 1/2 year closing high. keith, interesting we come on the air and you're starting to short the s&p. why? >> we put out a note to our clients at 11:55:00 a.m. that's the time stamp. very interesting spot, you know, inasmuch as it was in mar because it's your second be opportunity here to sell stocks and buy bonds. why would we do that? because we think in the end economic gravity matters which in this case is growth. we think growth continues to slow not only globally what the chinese said last night but locally with $116 brent oil, we think consumption in the third quarter for the u.s. is a big problem and you're starting to see that in corporate earnings and revenues. >> rates have started to back
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up. treasuries now becoming more attractive than stocks as the prices go down? >> i don't think so. i think keith nailed the top of the market back in mar. he was all over it. i think this time i'm on the other side of this trade. the s&p will trade up through the 1422. stocks are better place to be right now than bonds. money coming out of bonds will go into the equities market. >> stocks versus bonds, stephanie? as you see rates sort of creep up here whether that winning trade of dividend high yielding stocks start to become less attractive as that trade that's been such a winner going start to lose some steam in >> you have to look at the dividends and each company disposal. yes, we've had a nice run. i think maybe murphy is right we can trade up to 14.20 and see where it goes from there. you look at each individual company, dividends are on the rise. one of the most impressive things for me in the quarter is
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how much cash flow has improved. relative to the ten year and bonds i think that stock is still very attractive especially over the ten year. >> brian kelly? >> i don't see why they can't both go up. if bonds are going to go higher it meanings the f it means the fed will be in there buying them. you can buy both. also look at corporate bonds, lqd has come down 118, 119 level. great entry point. >> keith what's driving interest rates to 180. >> meaner version. you had every opportunity for the last call ten years that you've been able to bet on u.s. growth not being what old wall street or washington thought it would be or really any strategist who is running around with 3% growth expectations. growth will continue to disappoint on the down side and that will not just be a three month or six month thing bath protracted and structural thing. so when you get a bounce in
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bonds, think of where we came from. if we had this discussion in mar which we did, buy stocks because of whatever but at the end of the day you had a 10% draw down in the s&p 500, you had a 13% draw down from the march 26th peak. we're looking the equities, volatility and equities versus bonds and both giving us that same message you only had one other time. >> you feel we can be on the cusp of a big rotation out of treasuries in to stocks? >> no. absolutely not. i mean i think -- if you look at what stocks keep hoping for and we're talking about some of the most abysmal readings that keep sucking people in. a lot of people have to chase
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the rabbit. if you look what's blowing people up over time and could have been in staples yesterday, walmart today on the top line, pick your stock. stocks are blowing up. the market hasn't blown up. the entire hedge fund community is trying to game it and tippy toe around where it goes to 1420 or not. i think it can go lower. >> for every walmart i can come back and say there's a target. target was great yesterday. not like walmart was bad. the stock has been all that good. >> they missed on the top line. that's the bottom line. the point is, i agree, there's probably 40% of companies that actually legitimately beat the top line. we're running at 62% of the companies have missed the top line and that's the point. the beat miss spread on revenues as bad as it's been since q3 of
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2008. if you bought stocks since qe3 of 2008 tell me. >> i think the market can and will rise if the fed doesn't do a qe. that's the best case scenario for equities right now. i agree with keith. we don't want the fed to continually pump money into the system. what the s&p over 1400, you're not going to see a qe and i think once we digest that it's going positive for the market. >> the biggest overhang is the fiscal cliff. if we have no movement on that -- >> we won't get anything before the election. we know that. >> i agree with the hedge guy we're going lower. >> do you really think we're going get some kind of grand par gain before november? >> no. all we need is a little bit of movement. you just need the door open. that's a catalyst for higher prices. if we don't get that within the
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next month which it isn't looking that good then i think we'll be heading lower. >> you don't get that. what if you get the fed in the next month? >> the fed will have lower rates more but companies won't start hiring because their commercial paper went down. >> you think the stock market is going wait around to see what does. if the fed says it will act doesn't the stock market go higher. >> the stock market goes higher ahead of the fed action. >> that's why it is where it is now. >> that's it. >> you might as well go full frontal republican on this. you'll have $140 oil and have a huge growth problem. fiscal cliff is one think but there's a debt ceiling. the debt ceiling comes in play the lower the growth. the lower the gdp falls. the economists have been wrong. i expect them to be wrong. growth will come in lower and
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debt ceiling comes sooner. >> let's talk about apple may be on the verge of wage agnew war in the battle for your living room. there are reports that the company is in talks with cable operators about a apple set top box for live tv. let's welcome in manage partner at tech. >> this is old news. these talks have been going on for over a year. what we have in terms of the apple tv sprut an existing box, set top box that apple has already sold 4 million of this year. it's not new news. what is news is the fact that apple is now willing to consider partnering with cable rather than fighting them and setting up their own television eco system. steve jobs had it wrong when he told walter isakson and practiced cracking the
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television code by coming up with a tv set. it's going to be apple operating system, the ois that makes television and cable amenable over tory device out there and that's where cable has to go, we're at the inflection point with broadcast television and cable. what's surprising is google has a google tv out there that sony manufactures that they should be talking to the cable guys too and they are not. apple is stealing the headlines. but the story is not fresh news. >> so, porter, why do you think that apple is choosing to partner with them? is at any time technology is too difficult or do they think they can get to direct relationship to the consumer? what do you think is behind them actually working as a team which is not typical of apple? >> the key is content, stephanie. they've been talking, apple has been talking to all of the movie
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studios, all the networks and they haven't got a deal yet. they have the itunes, the apple app store and they have access to the whole digital domain. that's what the cable msos are looking for. the cable guys still control the content and that's why putting an apple tv set out there is not going work because what your going to show on it? they are caving in and going to come together and partner with the cable nsos. we're at an inflection point right now. >> important terrify, just to be clear you're saying that in your view that and we can take this on a couple of different levels, apple is not coming out with an apple tv to the expectation that the market thinks it might. >> it will never happen. that was steve jobs dream and his vision but it will never happen. the television set business has gone south. everybody is exiting. and trying to write off as much as they can because we will
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still have flat screens but it's the operating system that makes the television set work and apple controls that. it's interesting as i said, google has many, many more users in the android system but is not talking to the cable guys right now. >> respectful ly, porter, most f wall street and analysts have built into their estimates and models that apple is coming out with a television. you're completely on the other side of the street. >> it's called apple tv but apple has been very judicious in not defining what apple tv really is. as i said they got a set top box. it's a nice form factor and next delivery system. beats the pants off of anything that the cable industry is using. already in 2012 they sold 4 million of them which is not insignificant. >> what's the short fallout, let's go back to the cable, the
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set top box point ever view for the cable companies themselves. what's the short fallout here? this is apple joining force rather than taking on. does it eventually morph into the threat of the traditional cable operators? >> it was a threat in one sense if apple had succeeded in making deals with the content providers. right now those content providers are very comfortable with distribution through cable systems. but cable industry does not want, they don't own the set top boxes, that's a nuisance and the set top box is 20 or 30 years old in terms much its efficiency and user friendliness and capabilities. so the capable industry would look to apple and say you provide the new age boxes. we get out of that business and you can enter our realm and you can bring our realm of cable television content into the apple eco system, the digital
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eco system. that provides interactive, there are hundred ways they can monetize it and big arguments about how we're going to share the revenue, but that, that whole situation is going to evolve and it may end up apartment some point five years from now with elimination actually of the set top box and all of the set top box software being a chip in a high-definition tv screen. but "first look" at the partnership that apple has to forge with the cable msos. >> no apple tv and then went off on that discussion because it was interesting. he says not coming. >> i disagree. again respectfully i don't see how -- i've heard from a lot of people who did general checks. apple tv is coming. to think it's not going to come oil respect his opinion but i think it does come. >> give me at that look at what
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the stock is doing. stephanie, take the apple turns v question and then what it means in the set top box issue with the cable companies and broader media in general. >> the more important thing for apple right now is the iphone 5. there's all kinds of speculation that product is coming out sooner than expected. expectations are quite low. other products are coming out in terms of other iterations of the ipad, et cetera. we would like to see the itv come out, give me the iphone. >> apple is peeling off a little bit. technology has been a leader throughout the day today as overall stock market is at its highs of the day. apple shares certainly taking a little bit of return lower perhaps on, you know, on the thoughts of important terriport.
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coach popping 2%. >> great short selling opportunity but you got to be price sensitive so wait until it gets over 57. the realilty sales have been cut in half from 15% to 8%. >> dollar tree is dropping 4%. >> a name that i am short and missed on their earnings. they had a pretty decent conference call but still seeing an awful lot of competition from walmart, target and from the other dollar stores. stay short. >> you want to do the mini flash crash on this one? tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 that kind of focus... tdd#: 1-800-345-2550 that's what i have when i trade. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 ...helps me keep an eye on what's really important to me. tdd#: 1-800-345-2550 it's packed with tools that help me work my strategies,
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welcome back. as you know we've been looking out four the investor. we want to bring to your attention a peculiar move in dollar tree today. we mentioned one of our pops and drops that it was on the move. well take a look at something. the stock lost 18% in 1.5 seconds earlier today. somewhat of a flash crash type event in a single stock. if you take a look, murphy, this takes place two seconds after
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the stock opens. this is not good for investors to see things like this happen. many of these things, who knows how many more things are happening on a daily basis. >> happened to see this, i was watching dollar tree. the stock ever indicating down $4 and came out printed at $38. what's happening here and again i don't have fact the all evidence of this but there's a local of algorithms out there trading above and below the market. so i think this could simply be referred to as a mini flash crash. >> what do you make of a move like this in a stock. right after 9:30. stock opens, goes down 20%. recovers in a second and a half and back to the levels that perhaps people expected it would be on a day like this? >> that's machine. somebody had a bad finger or dumb finger. at the end. day this kind of stuff will be ongoing because the machines are contributing the only margins that's left in the broker dealer
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communities and you saw this issue at night. that's why we've been shorting knight these issues are endemic. brian shactman is watching shares of cisco. >> brian actually not here yet. >> jackie. my bad. >> you guys were talking about the strengthen in tech watching shares of cisco up 8.3% today. the bellwether posting quarterly results that edged past estimates boosting its dividend by 75%. in addition at least nine brokerages are raising price targets on the stock and even though cisco warned about weakness stock still strong today. >> jackie, brian, story about that. stephanie, what do you do here? this is a sizable dividend increase, startling in many ways from cisco upping its 75%. >> that's the reason that the
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stock is up. you have value investors, income investors saying 3% dividend yield is attractive. quarter was okay. basically in line. it's basically what we were expecting. guide jan was a little slow. there were pockets of strained pockets of weakness but on the whole i wouldn't chase the stock up this much today. but you have a floor because you now have new interested investors. >> rough day for walmart. stock falling on a weak full year profit forecast and comes after a stellar three month run. are walmart's best days behind it? debbie, welcome to the show. great to have you back. what's the story here? i think i brought thunder earlier. was walmart really anything bad here or has the stock move just been too good? >> you certainly had an impressive move here. one interesting thing upon talk with the company today is that, you know, they talked about the paycheck cycle.
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so the walmart u.s., it remains pronounced but this is something really interesting. they talked about the fact they are starting to see a paycheck cycle on the sam's club side and also on the international side. so definitely starting to see some change in the consumer on the higher end. >> b.k.? >> i'm curious, they talked about slowing down development in brazil and i believe in china as well. and is that then make the growth story here broken or do they have other areas that they can grow their earnings? >> they are pushing out a little bit in mexico as well. so it sounds like what they are trying to do is to increase sales in existing stores and invest there and also investing more online. so online right now just represents 1% of sales, which is far below almost any other retailer. they alluded to, basically, you
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know, launching a new online platform. didn't give a date. but sounds like there's going to be a bigger focus online which, obviously, could be significant for margins and for sales going forward. >> how much does it hurt walmart's stock performance today given fact it comes on the heels of target. it's looking at -- the market is looking at a nice target and what it perceives as not as good as they wanted to be for walmart. >> since walmart doesn't report monthly sales is that you're getting so much information in one day that it's a lot to digest. and so it's a very good point. you don't have sales. you don't have margins. you don't have earnings. a lot more the market to take in all in one day. >> the stock has been a great performer, trading at a couple multiple points higher than its long term average.
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going forward from here, do you see earnings have upside? do you see multiple expansion. how does this go higher, in your view? >> i definitely think -- this is one thing on call out they did say that if you look at the back to school season so far, you know, apparel has been extremely strong. that's a real key here. obviously that's much higher margin. that has been driving. the gross margins came in better than most us expected. obviously if you were a higher margin business they are doing better that should also lead to multiple expansion. so i do think that there is still at that long term growth story here. it's not that mexico and china and brazil are on hold forever. i think maybe there's a one year let's focus on our existing stores and grow maybe a year out. >> debbie great to have you on the show as always. looking to have you back. >> what's the retail?
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>> walmart really hasn't talked about the paycheck cycle in quite sometime. that relates back to what i was trying to say about these qe rumors and what it does to the oil price and what the oil price does to 71% of the economy which is consumption. i think walmart is down today because they missed the top line. they missed comps. if you keep pushing oil higher walmart will continue to miss the top line. that's a pressure for the group. >> i hear what you're saying, keith. walmart missed and the guidance number wasn't great. you look at the run the stock has had and even in the last week or so a blow off the top almost stock being down a small percentage on this. it could be backing in filling here. >> i think that's fair. the corollary to that is what home depot did. home depot blasted the upside new all time high. but i think again as an investor you have to really have a view on growth for the next three
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months. where will we be in three months. >> let's finish the conversation with b. k. whose best position in your mind b.k. for back to school. who would you put money in right now? >> write have my money in is target. they are crushing and you get a nice dividend. >> buying and selling counterfeit goods is an exploding enterprise. the bad guys show no signs ever slowing down. watch as our cameras go undercover. >> the salesmen provides our shoppers with a counterfeit catalog with phoney version of almost every conceivable handbag to choose from. >> once they make their selection a phone call is placed. as our team waits other vendors seize the opportunity to make their sales pitch for a fake
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tiffany bracelet. a counter fete michael coors watch. ten minutes later their bag appears. >> with demand for this market showing no signs ever slowing down, authorities can they ever path stop to this criminal enterprise. tune in tonight at 9:00 p.m. eastern only on cnbc. all right. coming up, everyone worries about china but there's one part of the manufacturing industry getting ready to explode. details when halftime returns. with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know. because personal service starts with a real person. [ rodger ] at scottrade, seven dollar trades are just the start. our support teams are nearby, ready to help. it's no wonder so many investors are saying... all ] i'm with scottrade.
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a beautiful day in new york city. today on power lunch everything old is new again. we'll show you some of the left for dead that are now flying high. is it too late to cash in with some of them? would you rather leave your house without your lunch or without your smartphone? a surprising new study on just how addicted or attached we are to our toys. and of course analyzing the analysts bull and bear cases for abercrombie & fitch. who is right? buy, sell, do what? join us on power. now back to scott and fast half. >> investors continue to worry about the pace of china's growth, credit suisse said one part of the country's economy is set to bloom. >> i think our viewers we agree for many industrial end markets
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chinese growth going forward will be very subdued. i think automation is a big difference and that's really by automation i mean factory managers are using hardware and software to replace labor. that's a function of rising wage inflation, wage inflation is here. it's accelerating and force manufacturing companies to keep on investing more and more in the automation of their plants. >> let's cut to the chase and go the winners. who win? >> three main companies we're focused on. one is rockwell auto makes. second is emerson electric and third is siemens in europe. >> how dramatically is the chinese economy slowing? are you looking for a hard landing? >> growth for industrial companies is really at a trough right now. you had a big deso less ration from 2011 up until this year.
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some industrial companies are saying the growth is beginning 401-k up. you'll see that carry on through the end the year. again you have to be very selective. you don't get an across the board bounce like you had in early 2009. >> keith? >> first of all, i hear the exact opposite from companies. agilent, look at that stock. if you separate the macro from what you're making, rockwell, how do you think about the other two, siemens and emerson don't have a lot of play. >> emerson, 50% of its business is automation. i called out siemens because it's by a distance the world's biggest automation company. automation is a portion of its total, about 25%. other names i call out in the u.s., stocks like cognex, another one in europe that makes
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robots and a bunch of companies in japan in particular two that we find very attractive. >> thanks. good to hear from you.picks? >> we own emerson. we started buying it a couple of weeks ago and in process automation they delivered 23% organic growth and so i think that company is doing a decent job and a very tough environment because a lot of other businesses are really seeing head winds but they did a good job on margin control and we were pretty impressed with the quarter and buying it under 50. >> a good month for emerson. >> for emerson and the industrials. i think a lot of industrial names are starting to move higher and as stephanie mentioned, the earnings autoof these names don't tell me of a mayor headwind out there. that's part of the thesis on the s&p going higher. >> taking on the greenback, as well as the euro gains ground today. time for profit taking? answers on that question two minutes away.
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welcome back. both coin star and electronic arts are higher after a report saying they're exploring sales to private equity firms. best buy shares jumping on the same type of speculation. how should you trade it? what makes the most sense here? >> coin star. the rumor is a public pe company
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locking at taking out coin star. the revenues are predictable. that's what they're looking for and you could see one or more likely several guys come in to look at a coin star. >> stephanie link? >> i was going to ask mike what do you think of the management changes? does that bode well for them for takeout or snot. >> it's tough to say. i don't think it makes that much of a difference to them. i think it's a clear, steady stream. so down here in the low 50s i think someone could buy them cheap. >> brian kelly? >> you know, i'd go with best buy. i think that's a no-brainer here. you have the founder coming in wanting to take it over. you may get some serious changes or you hope you would. >> the debt financing is biggest issue in that. the most likely deal to happen unless the terms of the best buy take-out change, whereas ponying up more money. >> well right. but that's what we're talking
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about is wlorpt hether or not hs the company. he knows the company and probably willing to negotiate a little bit. this is part of the process and i think afterwards you probably have a decent company if he can start to use it, maybe even as amazon's show room and link up with them. >> let's talk about the euro. gaining ground again the u.s. dollar but can the battered currency continue to strengthen? let's bring in todd gordon of aspen trading group. todd, been fairly resilient around the 123. you have been able to count on the euro over several days. >> yeah. euro hung in quite well. i think seeing dollar strength and more of a dollar strength story outside of the euro. i think u.s. interest rates pushing up or a bid to the dollar and the lesser of many evils right now so the dollar's performing well. i think it's a one off in the summer market here. >> why aren't you trading euro-dollar? >> well i think really think that with higher stock market
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and interest rate move is preventing us from being short dollar. i want to play the euro strength. we are seeing good, upside movement in the euro against other currencies. we have the big september ecb meeting and markets give us a little bit of a heads up on bond buying and the currency that's suffering right now is australia dollar. china, dollar-china hit a nine-month high. bayou ro-aussie here. >> give me your levels quickly. >> we put the trade on of 1.1750. you'll take profit around 120. >> got you. good to see you as always. have you back soon. final trades after this short break. [ male announcer ] when a major hospital
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