tv Street Signs CNBC September 26, 2014 2:00pm-3:01pm EDT
drubbing. >> with the ten year note that is story to unfold over the weekends. street signs begins right now. have a great weekend. >> you, too, sue. >> we'll see you monday. yahoo under a hedgefund attack. one of the world's biggest investors quits his job and stocks on the rise t. is a huge news friday. all the developing stories ahead. melissa with us today. >> it is great to be here. let's get to the big yahoo news here. starboard upping pressure to buy aol. yahoo analyst gene munster great to have you with us. >> hello.
>> 67 cent per share gap, is that what you see is potential here? >> we are not as optimistic in part because of the gas rate. what is the tax rate that yahoo will pay on existing shares? if it is 10% that gets to $8 more per share. starboard gives it a more optimi optimistic. i think that is the real core focus here as it gets down to the minutia of tax accounting. >> you are one of the most bullish out there with a $48 target. so it is still more bullish than where the stock is now. i imagine you don't fundamentally disagree with everything starboard is saying. >> we absolutely agree. it is the magnitude of the difference but the fact that yahoo is under valued and we think investors are missing the significance of what will be more favorable tax treatment. >> i think it is interesting
that starboard is urging yahoo to holt aggressive acquisition strategy. and that is what concerns a lot of people that marissa mayer will have too much cash on hand to blow. do you think she will be more disciplined? >> we think it is a good idea if they acquire something. we don't want them to blow money. the core problem for yahoo outside of alibaba is they don't have an exciting story. if you can use acquisitions as a way to drum up excitement i think most investors look at that favorably. >> is aol that exciting story? >> that is what i was going to say. >> who has aol? >> in the third point they make is halt these acquisitions. >> and then buy aol. is aol the acquisition that
yahoo should make? >> it's the best way to think about aol is that it is a fading giant as is yahoo. so yes there are a lot of synergies that both companies can benefit but doesn't change the structural reason why you would use yahoo. the combination of that doesn't add excitement that new users are going to come to it. so to answer the question i think there is financial value there but the long term future of yahoo still is in question and i think that would benefit from some small acquisition. >> fundamentally, though, gene, what is yahoo? i play fantasy football there. >> yahoo is sports. it's finance. it's omg. it's a home page. it's a decaying e-mail business. >> my point, then, those are passive industries.
does that merit the valuation that you and starboard, does that merit that? >> the core of yahoo we give it almost no value. i think that the real exciting part about the stock is the tax treatment on the alibaba shares which isn't very exciting for long term holders. so i agree with you. i think yahoo has some questions to answer longer term. >> so let's say you had your druthers and said what should we buy what would you say? >> something along the content angle. i don't know some of the valuations but something like what twitch did, something next generation to leverage existing sales force a hulu or twitch or something in those aspects. i don't have a great answer. >> it's not aol is the bottom line. gene, thank you.
>> yahoo hosts talking numbers, my digital show so that has value there. >> you would like to think. we will have much more on this yahoo news on "fast money." we will speak with eric jackson 5:00 eastern time here on cnbc. >> teasing the show four minutes in. let's turn to today's other huge story. bill gross, familiar face to viewers of the program, out at pimco. today morning star is putting every single pimco fund including flagship total return fund under review. is this a warning sign or is this standard operating procedure when the manager flees. >> we don't view this as cause for immediate panic. despite headlines pimco has never been a one-man operation. bill gross has had a huge impact
on pimco as a firm. he has a huge impact on the firm's investment process over the years but it has become a team effort. so yes he is leaving. that is clearly a big deal. we are reassessing what impact that may have for the investment strategy and how it gets executed day to day. but there is a deep bench of capable talent behind him. >> you don't expect any sort of directional change? because the bond market didn't react on the news on the thinking that pimco is so big it basically is the bond market. with gross leaving the direction of the fund actually might change and there might be a directional change in the trade. >> that may be the case. we are keeping a close eye on flows from the fund and from the firm. obviously total return and pimco as a firm are large enough that if outflows picked up more rapidly or picked up significantly it, in fact, could
effect pricing across the bond market. but with that one thing that we would emphasize for viewers today is the pimco total return portfolio is very liquid. we don't view that as an immediate risk today but implications are not out of the question. >> it's a real pleasure. thanks for coming on the program. >> my pleasure. gross is leaving pimco for janus. let's bring in vice chairman and portfolio manager of arial investments. so far we have seen janus shares reach new highs. implied in this is that bill gross will bring assets to janus. with every report we get out including one that in the days leading up to this gross was exhibiting erratic behavior, are you concerned that those assets might not follow him? >> those are leaks coming from
pimco trying to minimize this. he is the number one bond investor of his generation. some would argue of any generation. he has been an enormous attractor of funds and assets. we expect that to continue. so we are very bullish on the impact this is going to have on janus which already had a $30 billion fixed income business. we think he is going to bring a lot of assets to janus. >> he is bringing a lot of assets to the stock today. 39% gains. are you trimming a bit? why not sell under the news? >> i will not tell you how we are trading our position. we are the largest u.s. investor in janus. our valuation of janus went up a lot today but became a 40% bigger weight, too. so that is something to take into account. >> what do you see in terms of upside from here for janus? are you able to actually estimate or guesstimate the amount of assets that janus will be able to attract and impact on
estimates? that is what is so exciting here. when you do the math you think your calculator is broken. if he can bring managing $400 billion at pimco. if he can bring a quarter of that we estimate 50 cents a share to janus. right now estimated to make about 90 cents. that takes it to $1.40. at 50 billion that is 25 cents. we think impact on earnings could be huge. >> your assumption is 40 billion to be brought over? >> he is managing 400 now. so if he can bring 10% of that you get to a number like 23 cents. >> what if he brings nothing. >> it would not be a good trade. he will bring assets tomorrow. >> bill is a friend of the show and i consider him a friend of mine and a great guy.
is there a number that you have to put on this where you say this doesn't make sense anymore? what if he brings 5 billion or 50 billion like that is not worth it? >> at $5 billion he is earning somewhere between 50 basis points of average fees. he is a huge name in the mutual fund world. he is a great name in retail investing. at 50 basis points average fees he is going to earn his keep even at 5 billion. he will bring a lot more than 5 billion. >> did you know or were you just as surprised as everybody else? >> when i saw the headline i checked to make sure it wasn't april fool's day. >> it is not every day the stock goes up 40 -- did you do a cart wheel? >> let's say it was a very good day in the research department of arial mutual funds. >> and a good day probably tonight for the chicago
restaurant scene, my guess. >> thanks for having me. let's break down all of this and what it means to you and your money. more than half of all big 401 k plans hold pimco total return fund, single largest fund. check your work 401 k. something with pimco in it is probably in there. this is a big deal. >> it's a huge deal and the reason why many 401 k investors are paying close attention to this. this is a reason not to panic but to review. do exactly what morning star is doing and see where this fits into your portfolio. keep in mind people have total return fund because they need fixed income and they are putting this fund in there for a specific reason. that is what they need to continue to do as they are evaluating. based on what we just heard from morning star there needs to be evaluation of the manager, of the expense ratio, of all of
these things that you consider. >> there is still some unknowns. we have seen a lot of the pimco funds sell off. the total stocks fund is down. the high insome fund is down. some people say this is theoretically if what he says is right and team managed then things shouldn't necessarily change and this is a buying opportunity or is it still too early? >> because bill gross is such an iconic figure they don't realize there are over 700 investment proficials looking into the various mutual funds. just because he is leaving does not mean that means your fund is changing directions overnight, tomorrow, next week or perhaps ever. we need to see who is in place of the different funds and what happens next with the different management of the funds. >> help us out. by us i mean us. pimco's total return fund is in
fidelity's 401 k. i have a little total return fund because i believe in a well diversified portfolio. >> you have options. >> i have choices. you have other choices for your bond portion of your portfolio. and you want to look at what those are. you may not have paid attention to them before because total return. now you should be looking at all of your options. you should have done that from the beginning. now this is opportunity. the problem is realistically many 401 k plans don't have much else. in terms of that there are not many alternatives but worth looking at those alternatives. >> are you scolding me? >> i am happy that you are well diversified. >> every day i look at it. >> don't look at it every day. that can make you nervous. >> this is your retirement plan.
>> thank you. >> guess what we are at session highs on all three major indexes. quite a difference from yesterday. if you think this week has been crazy wait until next week and the big jobs report we are about to bring in two top money managers with their plan to navigate the huge week. we are going to bring on the biggest bear you have seen on our air. i mean that guy. the fattest, laziest biggest bear haunting the people of canada. you will want to see this video coming up. when change is in the air you see things in a whole new way. it's in this spirit that ing u.s. is becoming a new kind of company. one that helps you think differently about what's ahead, and what's possible when you get things organized. ing u.s. is now voya. changing the way you think of retirement.
right now seeing the nasdaq being the session leader up by about 0.9% compared to yesterday. interesting movements within the major markets seeing the small caps a little bigger than large caps right now. energy stocks, xl up by 1.3% despite continued strength we are seeing in the u.s. dollar. we have a big week on tap with the end of the quarter, lots of housing data. how should you position yourself for the week ahead? let's bring in chief market analyst and portfolio manager and david speega. great to see you. david, what did you make of this week's turmoil or volatility? are we in for more as we get into next week which is a big week? also the start of earning
season. >> which david? >> the guy from texas. >> a little confusing. >> let's go to the crescent center live. >> thank you. we don't want to get caught up in any of the short term noise that seems to effect market participants. it is important to note we are in the process of transition from fed monetary driven market to one driven by market growth and earnings. we will pay close attention to key economic data such as manufacturing data and jobs report because that will effect the economy which will effect earnings of the companies. we are not going to make trades based on the data however that is information that does go into our analysis, our fundamental analysis, when looking at long term earnings prospects for our company so we will be paying attention and closely focused.
>> david, in terms of earnings season and the strength of the dollar we saw the dollar index rise by about 7%. we haven't gotten a lot of warnings based on currency fluctuati fluctuation. seems like it can be a wildcard. are you concerned? >> no. i think the dollar movement is still near term appreciation, longer term i'm concerned that i think the dollar has weakness ahead of it. but if you think about this earnings season that is going to come up that my preliminary thoughts is it will be a solid beat. earnings grow 8% to 9%. revenue will grow 4% to 5%. and not to be forgotten free cash flow will grow in the mid to high single digit. companies i think are very judicious on their allocation of capital and use of cash and one of the best features the market
has going for it not just in the fourth quarter but over the next year or more. >> i assume that because of the 8% to 10% earnings growth you believe will happen the market is not overvalued in your mind. everyone says the market is overvalued. nobody can say that until they know or have a good idea about how earnings come in because if the e on p.e. moves is disrupts everything. >> it does. and in valuation it is a soft plus. let's disregard the schiller ratio because that gets people i think quite anxious and is not proven to be a good valuation indicator. if you look more appropriately at free cash flow yields, p.e.s i think the market is a soft plus on valuation. in the near term maybe a yellow flag. we will get that long awaited 5% to 7% hiccup in the market.
over the next balance of the year we are moving into a solid period. for stocks we get the election behind us. fundamentals will take over and back to what i have said before capital discipline and allocation of companies i think is quite sound for five years into this bull market. >> last question. give us reason to be optimistic going into the weekend. what is the last thing you have been buying? >> we like the health care sector. we like the industrial sector. and we like regional banks. think about the point of the cycle we are in. we should see longer term rates go up along with the fed funds rate. we should see yield curb steepen. something has to replace the liquidity. historically that has come from the banks. we are likely to see increased loan activity from the banks and strong dollar and that would help the banks, as well. those are areas that we are
looking at right now. >> david s. and david s. thank you very much. tell the folks i said hi. we hope you didn't have to take a flight near o'hare this morning because a major headache may have been caused by one single arsonist. we have the complete story next. we will take a closer look at the blowout numbers from nike. the stock is soaring but are the numbers as good as they look? stay with us. the world has g, but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.
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bad day for one of america's biggest airports. air traffic snarled in chicago after a fire. kevin tibles is live outside of o'hare. i understand a few flights are starting to come in and out? >> reporter: when you say the word few you have to put a capital f on that. we have spoken to a representative from american airlines. she says in the next few hours about 20 flights might be leaving here. these are the long haul flights from chicago to tokyo, london, these sorts of things where there is only one flight a day.
this place remains shut down. chicago has just reattained the title of the world's busiest airport. i can tell you the skies above chicago today are first very blue but there is no air traffic coming in and out of here. very minimum. all of the activity unfortunately is taking place on the ground in the terminals like american here behind me, united down the way and as well as delta where overall and at midway airport overall saying more than 1,000 flights have been cancelled and more are expected to be cancelled. and the real thing here and this is for all of you people traveling on business and those going to a wedding in san francisco this weekend before you come out here you better make sure your flight is still traveling because they have had thousands of cancellations. >> thanks so much for the update there. we don't want to lose sight of other very important stock moves today. our daily street talk segment with five key analyst calls coming up.
this is awkward. go to comcastbusiness.com/ checkyourspeed. if we can't offer faster speeds or save you money we'll give you $150. comcast business built for business. just 90 minutes left in the trading week. we are looking at a 1% gain on dow jones industrial average. a nice change from the sell off that we saw yesterday. >> wednesday a big gain. the one thing we have seen come back is volatility. we went for months without 100 point day. now we have had three in a row. it is almost like the market can't figure out what is wants to be right now. >> somebody tweeted peter of the lindsay group said stuff happens when qe ends. >> it was a different s word.
>> i am cleansing it for tv. still a lot of analysts saying it has to hit 20e which is a level we saw in february in order to feel like we have gone through. time for "street talk." >> on "street signs" we do this every day. we go and dig out five analyst commentaries and we find interesting, no junk, no upgrading it to neutral with $1 price increase. we try to find good stuff. >> underarmer is up 4% on an upgrade from buy to hold. the target price increased. >> should be called over armor. nice upgrade there. one of the hottest stocks in the market. doesn't think the run is done. >> nike helping underer armor in today's session, a halo. washington prime group getting upgrade. >> they are based in washington,
d.c. hence the name. the firm notes the pullback in the stock following recent deal. their target is $21. just under $4 a share higher. next up talking letter d. a little south of washington, d.c. based virginia. dominion resources. >> i-95 corridor. >> upgraded to buy from hold. their target on single d is $75. the stock is at 68.20 so they say with the dividend and their price expectation it is about a 14% gain. stocks have been side ways lately. and goldman sachs initiating coverage on a software company. >> never heard of it today. their target on vrnt $68 a share
a day after analysts raised their price target on the stock. bullish calls on it. >> 46%. our final under the radar name of the week goes to packaging corporation, fourth largest producer of uncoated free sheet in all of north america. >> tonight at a fancy party talk about who is the third largest performing you will know. >> upgraded to buy from neutral. believe the recent selloff is undeserved. their target $75. it was this stock at 64. this is a $20 stock three years ago. old school. >> think about all of the things that need to be shipped. >> it's a beneficiary, i guess, of online shopping.
it goes to show that company proves a good point. you don't have to be google or apple or netflix to see high growth and make money. that is a cardboard and uncoated free sheet whatever that is company. >> apple needs to put its iphone in something when it ships it. >> coated free sheet. >> that is a box. nike soaring 11% after reporting a better than expected quarter. let's bring in katie mcshane who joins us on the phone. >> fuchy orders were strong for the september to january period. >> it was a fantastic quarter. going into it people felt pretty good with nike having 60% of the business outside of the u.s. there was some concern that currency might play a negative role. there is skiddishness around north america because it has
been so strong for so long so the fact that nike accelerated their north america futures growth from 11% last quarter to 15% this quarter was really a nice surprise. and then the final thing that we are super excited about is growth margins. it's not the sexier part of the story. it is not the growth part of the story but an area that nike is being revolutionary with changing their supply chain. we really started to see some of that contribution come through this quarter. >> is that really the kind of story it is? general mills is a good example of a company that didn't have a lot of sexy top line growth but they had huge gains in productivity. the boring stuff we never see on commercials or think about. is nike largely becoming that story or is it still a sexy story? >> we think it is the best of both worlds. we think it is going to be a top line story and has been a top line story. last year they posted around 10% of top line growth and this year
it is better than that. we are estimating closer to 11%. that is an accelerating top line growth story. they have -- they are employing the category offense which is resulting in unprecedented amounts of market share gains and just embarking on it in europe and china and it is really sustaining the growth momentum. and then they have the growth margin story, as well, which is really important. >> we act like underarmer versus nike. we just talked about stock doing well, also. can they both win? >> we think so, yes. we are neutrally rated on underarmour. we haven't seen in the ten orsore years that, it is more adidas and smaller brands. now these are the two guys to
compete against. >> you know you are hard core when you have the german pronunciation of adidas going on. >> shares of foot locker are on our radar. let's talk about go pro. the stock is up more than 240% since it went public in june. wow. let's bring in a guy always willing to throw cold water on stats like that, herb greenberg and editor of the reality check research report. are you here to pile on or say go. >> in a story what i end up saying is it is too soon to call and too important to ignore. the point here is that you have people who have looked at this, the first earnings saying there are quality issues here like they sell off a bunch of receivables for one big
customer. best buy is their biggest customer and a variety of different issues that i sort of put out in that story that make you say you want to watch this because you may say why do you care about earnings quality going into this. the holiday season, christmas season and say you know these numbers can actually help you determine whether the growth is sustainable and genuine or whether a channel is being stuffed. there is no shortage right now. i go shop the san diego market for go pro and there is plenty of stuff on the shelves, accessories and cameras. >> what do you mean? >> i am surprised you are willing to remain sort of neutral on the sidelines on this stock given that a lot of valuation expectations in go pro have this content. it is going to be a channel, a content creator, this sky high valuation predicated on the fact that go pro will be a content player and not just a hardware player. >> i have been knocked out and
run over so much in my life on these early stage situations. i'm smart enough to know that this stock had go to 40 there is competition. there is media company talk as much as you want. you have htcu, sonny, consumer electronics show where people start looking at anything out there. the other thing you have to look at is a company which supplies them the shifts for the camera. that's an important part of the story. people want to reach out here. >> two quick points. your buddy is always like putting up mountain bike videos. go skiing. i don't think you are a big skier. every single person on the mountain now has a go pro strapped to his or her head. point two -- >> what? >> how often -- when i shopped the market for this i asked the
sales people about their friends. i say do you wear it all the time when you do an extreme sport or does it sit in the closet? you get a half and half answer. it is still a camera. people still wear out in terms of what they are going to want to actually film and go and edit. at some point this will matter. >> i race cars and ski a lot. everybody has one. i will agree with the point that there is a new competitor out and you will not believe who it is from. >> htc. >> no. polaroid. polaroid launched a little cube. i wish we had a picture of it about that big. i think it is $99. full hd, waterproof, drop proof. one wonders if they get -- if go pro starts to get into a pricing war and whack the margins. >> remember this is a heck of a
stock. there is a company beneath the stock. yo ahave to pay attention to the company, too. at some point i would say post holiday season this starts to matter. >> you know the answer to the trivia question which cnbc reporter went to high school with the founder of go pro. >> josh lipton. >> same class in high school. by the way, the afore mentioned ceo of go pro, nick woodman, probably luckiest guy in the world, billionaire, good looking, 38. >> you have a man crush on this man. >> who doesn't? i will be his assistant. markets picking up speed in the final hour. 1.1% here on the dow jones industrial average with a gain of 192 points. we are about to tell you about another stock soaring today after a blowout quarter next. we are getting closer to crowning a winner in today's
million dollar home battle. my house lost earlier today. i smell a conspiracy. still stick around. semi-finals. the best house for the million bucks coming up after this quick break. stay tuned to vote. place your vote for the winning home. get ready to start voting. (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. i have $40,ney do you have in your pocket right now? $21. could something that small make an impact on something as big as your retirement?
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what a day for the dow. wednesday we were up. yesterday we were down. today we are up big again. nearly 200 points to the dow. 30 stocks in the dow 30 hence the name. 28 of them are up. only two stocks are down and pharmaceuticals are getting no love. pfizer and merck lower now. time for today's sunshine stock. this is a big pop in today's session. shares of micron up. there has been a lot of consolidation and prices have been firming. prices have been picked up because the iphone 6 has more memory in it. what do you need? more man and so that has been
beneficial. >> i say -- >> you need to say nand. >> i will have to take some dramamine. >> the million dollar home competition going back to school. reporters visited college home towns to find million dollar homes. you determine which house is the best bang for the bucks. you can do so by logging on to cast your pick. the winner moves on. the loser, my house, got eliminated. remember, the locations are not revealed until after we get a look. it's the perfect mix of country living and rustic luxury located ten minutes away from two sprawling college campuses this 12 acre property features a 5,000 square foot patio. this kitchen is for serious
chefs used by one of the top culinary programs in america. viking appliances with italian tile floors. you will be hard pressed to find the master bedroom. if it sounds like a hotel you would be correct. this is currently rated as one by trip adviser. you never feel couped up with four separate buildings to choose from. still not sold? how about a meditation room painted by tibetan monks? all of this for $975,000. far from college dorm living this grand custom built home sits on three acres of beautifully landscaped property, a circle drive way, three car garage and large deck. this home has it all. behind the massive double doors almost 9,000 square feet of living space complete with built in book cases and other high end
finishes. this gourmet kitchen has a large breakfast nook. this lavish home has seven bedrooms, five full and two half baths, a large master suite has a sitting area, two walk in closets plus a massive suite with double vanity. the lower level has ample room for reunion with college friends, a wood burning fire place, separate bar and sliding doors. this estate can be yours for 9 999,9$999,90 $999,900. . >> voting is underway. go to cnbc.com/vote to pick your winner. let's bring in super broker for the rich. i mean that dom chu cheated and defeated my house in virginia. he is from cornell, ithaca, new york. mary thompson? >> where do you think? >> i know. i have known mary since 1997.
>> it is notre dame in indiana. both of these houses are really well matched against each other. you don't have the grand country estate. we have two grand country estates. three acres, 12, one with $10,000 a year taxes. one with 8,000 a month income rental and one with five. those are all very different metrics and numbers. it is a difference of how we stick it in the washing machine and come out clean. the pictures speak a lot to these properties. which pictures do you love? that is what it boils down to a lot. >> what does your heart tell you? >> exactly. >> in all seriousness. >> indiana versus ithaca, upstate new york. what is the market like in those two places in terms of real estate prices in general? >> neither has a huge amount of
traction but both have specific retires that go there to live and both have specific buyers that want that. it is a reasonable price point. i know a million dollars is a lot of money. it is not outrageous. the nice thing is exit strategies. you on sabbatical? rent it out. i love that. >> ironically, south bend the north part of the state and perfectly straight. i found that out and ithaca is gorgeous but it's one of the coldest -- seriously. >> terribly cold. >> this has to go against dom's house. it's 14 degrees for 9 months a year in ithaca. >> people are ready for the -- >> eskimos? >> they love it. >> they do. >> you know what they do on vacation? >> mexico. >> ice fishing. >> oh. >> ice fishing. they go to somewhere with ice in the summer and dig a hole and fish. i swer. >> they do it in wisconsin. they build a little hut. fantastic. >> this is what they love. >> which -- somebody said mansion wins.
they're both mansions. >> to me they're mansions. >> wow. wow. >> oh, the mansion. mary thompson's home. >> the pictures. >> look how close it was. 51 to 49. >> tough decision. >> it is. but the pictures really, mary's pictures were amazing. >> this house i think wins talking about money at least when it's not real money, not -- not buying the home -- >> right. >> you go with the biggest house. i imagine the two bedroom or whatever it is in boston, people like -- that's a rip-off. i suspect this house will win. >> bringing the families in and charge them rent. >> seems like you are getting more for the money. >> you want dom to lose. you're bitter. >> i want him to get destroyed. soul crushed. >> did you see everyone's comments about your hair? i love that. everybody said it's the real donald trump. >> forget it. this was '89, baby. before trump. okay? they made us submit photographs of the college years. look at that. that was genius. >> cannot be your real hair. >> it is. >> hair spray?
>> no. >> rain roll off your hair? >> i played rugby and didn't work. i had big ears. had to tape them ripped to shreds and take the tape off, half my hair comes off. i shaved the sides of my head so i had like a mohawk. >> wow. >> and then my ears stuck out worse. i shaved it all off. >> thank you for bearing with us. >> not nice. not a nice person, melissa lee. >> have a nice weekend. >> you are the best. i like you. coming up next, hands down one of the fattest, fattest bears you will ever see. >> and speaking of bears, they're not anywhere on wall street today. we are talking about market bears, the dow working on the best day in nearly seven months. i think it's because the mullet. we're back after this.
that corporate trial by fire when every slacker gets his due. and yet, there's someone around the office who hasn't had a performance review in a while. someone whose poor performance is slowing down the entire organization. i'm looking at you phone company dsl. go to comcastbusiness.com/ checkyourspeed. if we can't offer faster speeds or save you money we'll give you $150. comcast business built for business. fire.ber, lift and side car officials in san francisco and los angeles threatening legal action. cnbc's kate rogers here with more on the story. kate? >> the san francisco district attorney and the los angeles
district attorneys sent letters to the companies saying they're not happy with the way they're operating the background checks or the way they're operating their fare calculations. in both of those cities, it is illegal of multiple fares calculated in one ride which is, of course, what side car does. it's hardly the first time we have seen these disrupters ticking off the establishment. are you a transportation company or are you a technology company? the establishment says they're acting like transportation, not complying with the regulations. >> didn't sidecar just get funding? i would imagine trying to go to investors now it would be a much harder sell. >> these are the hottest start-ups. big names are involved. i think they're going to be here to stay and might have to comply with the regulations down the line. >> always good the see you. >> thank you. stocks higher here. we found a very, very big lazy bear. that story is next. when change is in the air you see things in a whole new way.
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what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. there's a difference when you trade with fidelity. one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade, we looked for the best price, and the trade went through. do the other guys guarantee that? didn't think so. open an account and find more of the expertise you need to be a better investor. paws down. best video to see today. this is a giant, fat -- i mean, this bear on the radio, picture a bear with a belly scraping the ground. on the loose in a neighborhood in british columbia, canada.
>> pretty terrifying. >> yeah. estimating the bear to weigh around 500 pounds. now it's a quick market check. >> we are up by a lot. dow up 1.1%. the nasdaq higher by 1%. nice end to the week here for the bulls. see you tonight on "fast." thanks for watching. >> take care. well, not many bears to be found here today. welcome to "the closing bell." i'm kelly evans at the new york stock exchange where after an ugly day in the market yesterday, the dow jones industrial average today a strong gain up 183 points as mentioned and following three big stories on a very busy friday. >> let' review the stories. i mean, we have the stunning departure of bill gross from pimco. he's jumping to janus. more details are emerging about that story. it