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tv   Power Lunch  CNBC  March 9, 2015 1:00pm-3:01pm EDT

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thank you so much for being here. loo thank you. >> cautious near term. bullish long-term. >> we're still in the secular bull market. that has a ways to go but we may have to grind here. >> thanks for coming in. josh, final trade. >> oh, final trade is wetf. >> emc long. >> general motors more room to the up side. >> that's it for us. great rest of the day. power and apple begin next. ain't that the truth, scott. power and apple. welcome, everybody, along with mandy drury. i'm tyler mathison. a big hour ahead. we'll be giving investors a preview. tim cook gears up now to unveil the exact details about that apple watch. >> moving to the up side by half
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a percent. >> let's get straight to kayla at the apple event in san francisco. kayla, tell us what you know. >> center for the arts which you see behind me. also showcasing a picture of empty seats inside the theater with the quote "full of anticipation." of course, that's an understatement as we are awaiting apple's first new product launch in five years. since the ipad in 2010. this is apple's tenth first generation generation. >> it helps the player into this luxury market.
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unclear which executives beside tim cook we will hear from today. that will be top of mind. exactly how many details we get, but lest we think this is just about the apple watch. much of the focus has been about that. apple observers say we could get an announcement of a new macbook today, and that that could be the reason why the apple store has been done as of this morning. typically that happens on the day of an apple product launch, and they say that could be the reason the macbook ready to go on sale once that site come back up. expect at some point in april it would launch. we knew it was spring. it will be important for investors to figure out in what quarter the bulk of these earnings could come down.
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>> very quickly, does this watch tell time? that's all i care about. does it tell time? >> i have to imagine, ty it does tell time. in some interviews johnny, the svp of design said what i realize the problem with my watch is sometimes i would look at it and then realize i didn't even remember what time i just saw, so whereas with the phone, even though you might be looking at it to get a text message or an e-mail or something else, you notice the time when you look at it, so they reportedly want to incorporate time centrally to the watch as well as other functionality. >> all right. thanks a lot, kayla. >> we are now getting word that the event is going underway so we will get the headlines as it begins and we will be back to you as soon as we have them. >> fantastic. western you're on the case for us.
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>> that is compared with a slight dip in the average return on the s&p 500 on those days. now, five days after a product announcement apple shares have dropped on average by 1.5%. let's look at how the apple shares does after it releases hits the market. the stock has returned an arrivaling of .6% on release dates. that's compared with a half percent rise for the s&p 500. now, five days after the product release, are you following me here, folks, apple shares have returned an average of about 1.5%. let's talk more about apple and its shares. >> what do you think the driver is about to be in apple shares? is it going to be the watch or
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continue to be the phones? >> it's going to be both. the phone is going to be. >> the watch will add functionsality to the phone and -- >> at what point do you think apple needs to reduce its reliance on the iphone? do you think the watch will be that new hit product? >> >>. >> they don't need another hit product, but they need to expand the ecosystem of people buying content for the phones. >> tim cook has taken the stage. ivan, if i don't have an iphone is the watch autosless for to me? >> i think it's designed to compliment the phone and the ipad as well. >> are you going to buy one, ivan? >> i would be intrigued about
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it. i like android as well as apple, and i do have an android based smart watch, but the apple watch is intriguing. >> what would make the apple watch stick out for you more than, say, the android one that you are talking about? what particular feature do you think you need in your life that would make you say, okay i don't need the android version anymore? >> i think the most powerful driver of people using smart watches are fitness apps the ability to tie it to a heart rate monitor, to use what you're exercising. more and more gyms will have apps that tie your exercise routine and your time in the gym to the apps on smartphones and smart watches. >> i hate to bust in here. stick around. hold that thought. let's get to kayla. she's now in san francisco with breaking news from am. kaya. >> well, mandy, apple ceo tim cook has taken the stage here until san francisco. the first comments that he is making actually have to do with the apple tv. remember we first learned last week that apple tv would be the partner for hbo when it launched
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its stand-alone service, and that is the crux of the opening remarks from ceo tim cook here in san francisco. >> i assume you heard kayla's remarks that tim cook has talked about a tie-in with apple tv with hbo and hbo go products. >> people have been waiting a long time and expanded apple tv product, and the tv would be the next natural extension of the apple ecosystem and an important platform to consume more apple based content or more content from itunes.
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>> the ceo of hbo is talking about the product launching on april 12th. it will be a new app that people will be able to subscribe to even if they don't pay for cable vee wra apple tv. i'm going to continue to watch this now. let's take a look at time warner shares. they're up 1%. we'll continue to listen and be back with more. it's called hbo now launching april 12th. >> hbo now. this is a product for people who don't want to sign up for cable but do have broadband in their house, and this will be a way, i assume, that there would be some fee that you would pay through your itunes account for access to hbo. i doubt they're going to give it away for free. >> right now hbo go is part of your paid subscription to hbo.
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>> what are you expecting today that could mean the needle of the share price significantly, if anything? >> i don't know if the announcements today will move the needle because the watch has been pretty much expected since september of last year. the apple tv announcement is also positive but i think the initiation or the launch of the watch is just another way of expanding people's connectivity to the phone, and i think the more apple products you buy, the more apple products you tend to buy in the future. the more you have things that connect to the phone and other apple products, the more you stay in the apple ecosystem and continue to update your products. >> you raise an intlent point about the ecosystem because apple already has a large really loyal group of devotees. to that point, what degree do you think apple can actually have a little leverage with its pricing? i know there's a start-up price, and then there's lots of speculation that the price is
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going to the premium, including the gold model. oh ivan sorry. i have to break that question. julia, more breaking news with you. >> richard butler just announced that the service will retail for $4.99 a month. it's going to be a direct to consumer service which will have hbo's entire tv and movie catalog, access to all its original programming, as he said past, present, and future. all you need is a broadband connection and apple device. if you start in april, you'll get your first month free. it will be ahead of the april 12th debut of the next season of "game of thrones." right now they are showcasing a new trailer for the new season of "game of thrones" to get people excited and to get them to go on to their apple devices and subscribe before that launch. this is a way for hbo to reach more consumers who don't necessarily subscribe to cable. the big question for the industry here.
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>> that will be what everyone is watching very closely. hbo clearly trying to take its content and go head-to-head with the likes of netflix and amazon as they start to invest more in original content. that trailer is running right now, and certainly going to be a hot topic to watch, and it will be interesting to see how many subscribers sign up for that service in april when it goes -- becomes available. >> he you say the stock is significantly undervalued. thank you very much for your thoughts. of course, you have lots more thoughts coming up. on the big apple event in san
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francisco. >> let's go out and check in with kaya who is there. go ahead kayla. >> ty want to show you tim cook taking the stage just moments ago. apple ceo has had a morning of light-hearted banter on twitter and here he is welcoming the crowd, greeting them. a chockfull audience in san francisco where there's opening remarks that had to do with apple tv rather than with the apple watch, as many expected. this announcement of tim cook as apple tv is the exclusive launch partner with hbo now that comes apparently parallel to when hbo made the announcement as well. we just learned $14.99 will be the price for the stapd-alone hbo service, and apple tv will be the exclusive partner. we will have more from apple ceo tim cook live here in san francisco on the other side of this break. power lunch is back in two.
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the xfinity tv go app. now with live tv on the go. enjoy over wifi or on verizon wireless 4g lte. plus enjoy special savings when you purchase any new verizon wireless smartphone or tablet from comcast. visit to learn more. welcome back to power lunch. we're watching shares of tesla with this market flash. down by about 2%. the electric carmaker saying it's cutting jobs in china after missing sales targets and not specifying how many jobs will be lost. meantime, tesla also denying reports that there will be a construction delay at its nevada gigafactory. tesla shares in focus. back to you. >> thank you very much. let's go to nasdaq now and check on the movers there as apple unveils its latest tech gadget and an expected deal with hbo. bertha following the big movers. >> bye, tyler.
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as you would expect apple has been higher throughout the session. it has moved to the high of the day. biotechs a drag after that decision on bisimilars last week. also probably some profit taking because biotechs have been very strong movers as we're starting to see fewer highs, fewer new highs of momentum getting a little stretched according to some investors. and some of the big losers today are on analyst actions. you've got amazon and black bear both seeing down grades today. be sure to check out about how many more tech firms are now paying dividends to
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return cash for shareholders. back to you. >> that's an interesting development. we have breaking news from the apple event with kayla. >> mandy, apple ceo tim cook has covered a lot of ground since we last checked in with you. first, he announced that apple tv will be cutting its price to $69 from $99 saying this is just the beginning of many changes coming to your television. we will stay tuned to see exactly what apple has in store for the television market. it's growing at twice the rate of the smartphone market, and that customer satisfaction is at 99%. he talks a little bit about apple pay saying they now have 2,500 banks on board and 700,000 locations that are currently now
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he is talking about the car. announcing car play and changes coming to the car based on new technology that apple is unveiling. >> the fingers of apple into every facet of our life. we are all things apple this hour, folks. we're currently watching the share price $127.76 is where we're sitting. it's up by nearly 1% with a tech giant unveiling new details about its watch. that's what we've watching. no pun intended. the special event right now in san francisco.
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>> absolutely incredible the stats we're looking at on the board for you. don't go away.
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welcome back. check out shares of time warner which are climbing so far in this session. this after apple ceo tim cook announced that apple will be the exclusive partner of hbo now. apple saying hbo now will premier next month. time warner owns hbo. apple at the apple event. both companies getting press at hbo's parent time warner getting a pop. back to you, ty.
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>> thank you very much. >> to the bobbed market now and rick santelli at the cme. >> i found an easier way to handicap where they've been hanging out. let's look at year-to-date and thus the movement thus that are and getting ready for the kwaupt taifsh easing. it's pretty much the first week will be the high yields for everything i'm looking at. we're down three basis points sitting here at 220. basically from where he we had the highs of the we're. boons, down 23. italy at 62. they're buying some of the crudiest -- is that a sdeebt word here -- and getting in front of it, and thus far, the strategy has worked. the markets on guard for hiccups, and if you think there's hiccups, take it easy.
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just buy the euro -- dollar versus the euro that continues to make 11 and a half year new lows about every session. back to you. >> the king dollar mampz on. thank you very much, ricky. let's take a look at what gold prices are up to. marginally to the up side right now at 1,166. still accident not far away from the three-month low. you might remember that we hit it on friday after the strong pay roles. jackie deangeles is tracking all the golden action at the nymex. >> that's right. gold got whacked on friday after the jobs number came out. it pushed the dollar higher. >> hanging over the critical level where are traders saying we're seeing bargain hunting in this market but really nothing too convincing. mixed picture in the rest of the metals today. actually silver is moving to the down side.
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they look at as an indicator of the global economy. copper is up 6% year-to-date. >> thank you very much jack where i deangeles. >> since we're all things apple today, let's take a look at the stock. it's currently up 1%. therefore, by my calculation, the stock needs to rise another 4.5% to hit its record price of $133.60 that it hit on february 249. apple, one big event on cnbc today. the other big event? this guy. yep. mr. jim cramer. his thoughts on apple coming up. also ten years of "mad money" is something i believe we're celebrating this week as well. lots of things going on. do not go away from "power lunch."
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hello. i'm sue herrera, and here's your cnbc news update this hour. volkswagen will invest about $1 billion to expand its plant in mexico's pueblo region.
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the investment is expected to create 1,900 jobs. the congressional budget office is projecting a $486 billion budget deficit for this year. the deficit projection is slightly larger than the one made by the agency in january, but the office says the change was mainly due to increased spending on student loans, medicaid, and medicare. well they say timing is everything, and tymex is getting into the smart watch business. it's connected over 4 g by at&t and has a blue tooth feature. it also allows the watch to download apps from apple. it sells for about $499. you might not believe it especially if you live on the east coast but, in fact the national oceanic and atmospheric administration says record temps out west outweighed the frigid weather here to make this winter the 19th warmest on record. the winter contiguous u.s. temperature was 34.3 degrees, and that is 2.1 degrees above
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the 20th century average. that's actually quite a bit. >> sue, maybe both of us wish we were back in california at some points, but anyway we're watching shares of big lots right now moving up all session long. several analysts including those at mkn partners are reiterating their buy ratings on the shares. the stock posted earnings results above wall street expectations last week on friday. big lots is up nearly 5% on the day on the heels of earnings and those analyst comments. tyler, back to you. >> all right, dom. thank you very much. jim cramer joins us now. first, congratulations on -- it has gone by so fast. >> it has. >> to me -- >> i remember the fifth year anniversary, and it seems like yesterday. >> you know it is kind of shocking when regina my congressional producer says you know what we've got to do one-tenth. i don't know. how many years is that away? here it is. >> here it is. >> here it is. apple stock, do you like it love it? what do you come down on it? >> i'm not a trader of apple stock. i think people should own it.
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therefore -- >> as a core holding. >> until it gets somewhere near a market multiple. i mean it's hard to imagine that a color objection or procter sell well in excess of this given the fact of its growth, balance sheet, dif debbed. it's got some room to run. if you try to trade it around these events you tend to be fooled. stwroo a lot of people say the watch will be a flop. concerns about battery life. what do you hair about the potential of tl surprising sxvsh maybe even transform, evolving from something like a consumer discretionary item to something that is absolutely necessary from the health perspective. you know that sort of something that could potentially have a lot of applications. oh they have the phone, i'll get them the watch. it's health apps. what my cardiologists says the
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holy grail would be something that would buzz because your blood pressure spiked so that you could -- >> that would never happen to you, right? any device that gives you a few more years, people will pay anything they can for. let's look at the apps. the apps aren't there yet, by the way, for the blood pressure and people are working really hard on those. is it good enough that you can look at this rather than take it out of your pocket? i'm sure people like the convenience. i am a huge believer in apple pay. i would love to be able to go like this rather than have to go like that. kayla out in fran sifk where all the action is happening. what more are we hearing? >> well jim cramer was just talking about apple's foray into health and the health apps and that's exactly what executives have just spent the last about ten minutes talking about. svp of operations jeff williams came on stage to talk about a
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new platform called research kit where top research institutions would partner with health care. of course, that's the health platform apple unveiled at its developers conference last june. to turn your iphone into sort of diagnostic tool. they will be targeting parkinson's, asthma breast cancer diabetes, and a couple of other diseases in the first generation of research kit. the first apps on research kit will be available in the app store today. research kit as a whole will be accessed next month. that's what we spent the bulk of the recent part of the presentation on. certainly a very new initiative for apple as they try and turn their technologies not just into something you used to pay or to communicate, but that can also help you lead healthier lives. tim cook apple ceo, is back on stage, and we'll have more headlines for you in a moment. >> let's come back with jim cramer here and get your quick reaction. >> i think i can get -- make my
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health insurance premiums cut if i have it. you have to say, listen if i can do early morning, then why can't i did g to humana to united health -- >> i'm hooked in here. >> breast cancer they actually have that. again, that's holy grail. don't know if they have it but anything that makes it so there's an early warning system means that people are going to not have to spend as much team in the hospital if something really goes bad. your insurance company will want that, and your company will say to the insurer, i gave these people an apple watch. >> you have a wearable device. i'll cut your people yum 5%. they kind of throw it in. we have this other good news. >> who knows? i mean those of us who have it and don't use it or don't use it as much i think are keefe saying i get that. >> you made the point earlier that apple for you is not a
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trade. it's a good core holding. you and i remember the days when dell was the stock everybody loved, and it's easy to love apple. when you fall in love with a stock, it can be a dangerous thing, can't it and what's the difference between apple today and dell 15 years ago? >> i once took a chainsaw to a dell. what can you do? he was furious at it. how about intel chip micron chip, microsoft software, seagate drive. there was a pujdzer of products. would i never take a chainsaw to apple because that would be horrendous, but what you -- everything is proprietary in apple. there's nothing that is anything anybody else has. >> you can't mimic it. >> that's the greatness. it's a proprietary system. samsung will do something to kind of say, wow, you know it's -- and samsung chips are in a lot of apple -- in the end apple is an ecosystem.
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there was no dell ecosystem. there was just a box. >> what dell had was replicatable by others. >> yes. >> as was their manufacturing approach, which was at the time a break through. >> you can't knock this thing off. it's very very hard to knock off and to get something that mimics an apple and they're not doing it in china and not doing it here. >> certainly one of the big questions with the apple watch is whether or not it will actually help all wearable devices because it will bring it so much into the mainstream because of the must have things that you carry around on your purse. whether it obliterates the competition. >> kevin plank will say he is the most technologically -- i know that the great koechlz chip kelly, okay i'll just say, it he has everybody wired. are they going to be wired better than a watch? i don't know if apple proves it is right. everything, including fit bit is in trouble.
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>> i have told my friends to apple, this is my gift. this is my gift to my family. i was with my daughter this weekend. she wants to weigh. she has apple pay. we have to get on the case here. the younger people are so far ahead of us. i looked ten years younger. how about 20 years? dad, it's only -- apple can only do so much. >> okay. apple stock up 1.3%. let's get out to kayla once again. kayla. >> apple ceo tim cook just taking the wraps off a brand new mac book. he spoke about how the mac book for apple has seen 21% sales growth over a period when the rest of the industry has seen its sales decline, and the new mac book is what he calls its thinnest and lightest form ever. it weighs in at two pounds and it's 24% thinner than the
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previous models. it will come in silver space gray, and gold. we're waiting on when exactly it will be available, but the new mac book has been unveiled here in san francisco. we'll send it back to you. >> your reaction sir? new apple mac book, thinnest ever. >> they're all too heavy. i have a hewlett-packard, and i feel like i'm carrying around a farmer's ball. i blame hewlett-packard at the chiropractor and what it's done to my back. this is the thing. a lot of companies will not support this. the e.t. guys have been won over by dell years ago. >> my daughter says dad, the typewriter. no. i mean, people paid big money for it. you know it's really good. she says it's a doorjamb that works so much better than apple, and it really is good. it's like a counter weight when you are trying to lift.
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you know i want something that works. >> do you remember the k-pro portable computer. it was the size of a suitcase and i remember walking from the time at the port authority, i thought my arm was going to fall off. it's craze where iy. >> i think apple -- again, kids like this stuff. >> good luck wal-mart and target. >> it is a whole week of commemoration for "mad money". you have incredible guests on this week. all weeklong. we're going to hear about it in a minute. let's take a look at the very first guest you ever had on "mad money". that is april 12 2015.
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take a look. >> i think we can take this company significantly down the road. that's what this is about. hitting the next milestones. showing we're making a difference to people, and we'll be fine. >> thank you so much for coming on. >> thank you. >> jim cramer's "mad money". let me tell people where i think i am on this one. i was actually one of the initial investors in this thing when merrill lynch brought it public. jeez, we have a chart 15 years ago. you can see the stock has did hes appointed. >> that stock subpoena more than 700,000%. >> len had a better mousetrap. he had something for mac lar degeneration. he came on and described that. nobody else wanted talk to len. i have been buying it for 420
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points. >> who else have you got on? >> len is on tonight. starbucks, howard schultz, and an american icon. the best -- one of the greatest -- really to me ceos of our time. we're going talk leadership and about the how this all happened how the great -- about how capitalism is so fabulous. it's remarkable what botox can do. >> was that going back to the events? >> when we announce the watch, we'll come back to you and get your first thoughts. as we saw a moment ago, apple unveiling its latest mac book calling it the thinnest display ever. let's bring in two money guys who actually own apple. jerry, president and chief investment officer at castle ark management. hugh johnson, chairman and cio of hugh johnson advisors.
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as i said you both own apple, and i believe jerry, you have actually got quite a substantial position in the stock. how are you feeling about what you have heard so far today? >> as no one would argue with jim on his big stock -- his comment with respect to how this company is valued in the marketplace is probably the most important thing to professional investor today. the fact is apple has too many good things going for it. it has too great of a balance sheet, and it's too many unique and inventive products for the stock to be still trading at a market discount. there is more behind it now than there probably has been in the last couple of years. when you see a company like that trading at a discount to the market generally you have a wind at the back. >> what do you think? >> that's why we have a full position. >> well it's currently sitting at $128.55. >> where would you see apple
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sitting six months time from now? >> the stock could be over $140 or $150. >> okay. well, the $145 i believe is the price target that you have hugh. >> yeah. it sure is. you know i'm starting to think, though, maybe 145 is a little too low. when i start to think about the i watch and tv and all the other things we're hearing about, i'm starting to think maybe my stuff -- forecast for the slowdown in revenues and on my forecast for the decline in margins, which gets us to $145 is probably -- those are probably too low. those assumptions. that means soosh or later i'll have to go higher. >> it's really good value. >> listen up guys. as we're speak, the stock is
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climbing to currently its highs of the day. kayla, let's get back to you at the event. what's happening? >> yes, mandy. the event here in san francisco is honing in on a new mac book that the company is calling its thinnest and lightest yet. here is apple ceo tim cook talking about the new macbook. [ applause ] >> it is unbelievable. can you even see it? >> i can't even feel it. there it goes. [ applause ] >> it will come in three colors. its retina display will show three million pixels and be a 12 inch display, and apple also said that it has re-engineered the keyboard to have an l.e.d. display underneath, so it has a glow to it as well as a track
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pad. it says it's reengineered that from the ground up. it will be pressure sensitive so you can touch the track pad and that will be used to fast forward movies and have other functionality as well. those are the latest on the macbook. back to you. >> the stock is cleeming. continuing to climb throughout this hour. currently sitting at the highs of the day nearly at 129. it was a thunderous applause. i even actually had to pull out my ear piece because it was so loud. tim cook was on stage. >> tend to be somewhat uncritical. that crowd somewhat uncritical. >> this is netflix, and this is hbo. i mean these are -- one of the things that you always find out about apple is they arrange these things. i remember when jp morgan was in the front seat for apple pay. what the heck? i thought they would be against
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it, and then i see visa -- >> they all -- this is a biography that's -- the record companies, they are, like hey, are you kidding me? all i spoke with is apple. good luck. >> visa and master card on board. i have to say, you know listen good luck. >> that's roll tide right? >> right. >> roll tide. >> he will crush you. that is so true. >> the butte where i of appear to me is the idea that you hit on a moment ago, and that is once you're in with a toe, you're all in. you end up tsh. >> ecosystem. >> you go in to buy this and you come out with that and that. eventually ewe all in. >> that is an excellent point because a wearable is something. before you buy a wirable, you probably want to touch it, feel it, try it on right? >> how about a -- >> maybe it will get people into the store and while they're in the store touching feeling, playing with the apple watch,
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they'll buy other products. sfla is he watching and he will do exactly what i'm going to say. you'll see it tomorrow. he will offer you a watch if you buy his apple phone. that's what he is going to do. >> you do that and i'll throw in an apple watch. >> then you're deeper into the ecosystem. >> because it's -- >> and then you buy the macbook, and the whole thing. >> everyone knows that that's what happens. if you have -- remember it's about 20 million. you don't want to use any of those numbers. in the end if you have a phone, you're probably wanting the darn watch. >> this is why they can charge the premium for their products. we have breaking news now. >> let's go to eamon javers in
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d.c. >> here's a story. up to 200 million people new york state attorney general eric snyderman at this hour announcing a deal with the credit reporting agencies. that's equifax, experian and trans union. the companies keep data and spit out the numbers that are so important to getting loans and other credit in the economy. those agencies have agreed to revise their terms in terms of fixing errors. it allows users that have mixed updata a little bit of an easier process, including actual human beings brought into that. they also calculate medical debt. they will put 180 day waiting period into medical debt before it goes in to your credit score. that's going to help a lot of people who have snafus with medical issues and their insurance company. then also on payday loans, they'll say that the credit
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union -- the credit reporting companies can include debts by lenders who have been flagged as violating lending laws. that's an effort to keep those payday loans from hurting people's credit scores. guys a big story here in terms of how credit is going to be processed in this country. >> thank you very much. eamon for the breaking news. it is a day filled with new apple products, but as we head out, take a look at some of the past apple products that maybe didn't quite make it. the computer in 1993. the mute ant message pad ten years later. the pippin gaming console in 1996. usb mouse in 1998 and the power macg4 cube in the year 2000. do you have any of those in your house, jim? no. power lunch is back in two. every day, our teams collaborate around the world to actively uncover, discuss and debate investment opportunities. which leads to better decisions for our clients. it's a uniquely collaborative approach
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you won't find anywhere else. put our global active management expertise to work for you. mfs. there is no expertise without collaboration.
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>> welcome fwook power lunch. power electric weed ators.
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the ruts of the test it conducted as part of its story per that agency's request. now, "60 minutes" says the company's lamb nabts contained potentially harmful levels of fomaldyhyde. they our big conference call later on thursday. now, a big rally in the street. the market taking a leg higher in the last few moments. over to bob apasani on the floor of the new york stock exchange. >> it's a slow melt up. take a look at the s&p 500s. we've regained about 40% of the losses that we had for the s&p on friday. >> it's largely a big cap rally. the nasdaq is layinging a little bit. the important thing is up until a few minutes ago, there were only half the stocks advancing. the other half declining at the new york stock exchange. we've been ramping up here. small cap stocks in the metal space, have had a terrible time of it recently and again the big metals names are down and there's been concerns for days
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and days and months on slower growth globally. all the big metal stocks on the down side. there's negative comments from barrons, rio tinto all to the down side. the metals etf, that is active volume in the month of february has been down six days in a row. gold had a big down day on friday but it's been up today. the gold miners are continuing to climb. we have had a huge decline. we're talking 10% decline in the gold miners. just in the last couple of days. the important thing is 10% in the last two trading sessions. more on apple and apple's new watch coming up when we return on "power lunch." don't go away.
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>> the highly anticipated apple watch. of course, we had expected that to be the main event on the docket today. the company has talked about everything from a new macbook which will ship april 10th. price point is $12,99 and $15.99 as well as new advancements in the health software sector as well as card play and new advancements for apple tv as well. now is the moment weave all been waiting for when the discussion about the apple watch gets underway. ty back to you. >> all right. thank you very much. let's bring in one of the big apple watchers month pun there. actually i did intend it. max. max, welcome. sfla thanks for having me. >> what do you think the most important selling point of the watch product will be? >> you know i think the health thing is important, and i think
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pay is important, but i think right now it's all about the luxury product. it's about presenting this as something that you are going to want to wear on your wrist that's going to impress your friends, that's going to look cool. that's a real departure for apple. i think that's something sort of new for them that we're all going to be watching pretty carefully. >> when you talk about a departure for apple, is it making it more of a play for the luxury fashion end of things, and do you think that is a strategy that will work in. >> i think that's absolutely what's going on. when you look at the -- when you look at the different optionses that we'll see, gold steel, aluminum. the question whether it will work is an open one. i think what apple is hoping is that they can use some of their brand, equity to sell more expensive products, and hope that some of that goodwill -- the idea of presenting is very expensive watch will then sort of flow back to their other products. people come in to an apple store hoping to look at you know a gold watch that they'll never be able to afford and they stay and buy an iphone or one of
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these new macbooks or even the apple tv. >> that was something we were just talking about a few moments ago with the gym. it feeds back and that's the beauty of this ecosystem. it feeds back upon itself. is this a mass product or a class product? >> i was just listening, and i was thinking what happens if everybody has one? i mean you know the point -- >> it undercuts it. it undermines it. >> it does. that's the one -- i hope they have enough variations. i wear a watch that i think is a nice looking watch. it keeps time. it doesn't really do more than that, but the fact is it's a nice looking watch, and if everyone were wearing the same watch, i think we would feel defeated by that. i hope they have enough variations. >> and then -- right? >> everybody has a different case. i mean, i hope that i can do enough varying so i don't feel like my watch is the same as everyone else's watch. >> different bevel or whatever it is.
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>> his worst nightmare daylight-savings time and the end of daylight-savings time. these were the things that consumed him. >> we're at the end of february and my watch is still stuck. >> yes. that would be brilliant if it did zoosh it should. >> you would also hope it would do right? >> it's dick tracy too. dick tracy. >> max, what is our supposition about battery life and rechargeability of this product? >> well it's an open question. what we're hearing is that it's going to be good for a whole day. now, it's hard to know what that means exactly because is it a whole day if i'm using it nonstop, or is it a whole day but i can't use it for more than an hour or two seriously and it will die? the other issue is if they want this to be a health product, recharge act is a problem. a lot of these sleep tracker
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that is have done really well do so because you wear them while you go to bed. you have to take this thing off your wrist to go to sleep, that is sort of removes some of the health usability that i think some people are hoping for. >> i believe it's the touch screen in particular that really gobble that is batsry life doesn't it? >> that's right. and all this communication back and forth with the iphone. that's why they have sort of tried to keep as much of the actual activity on to the phone. of course, it's a down side because now you have to carry this other device with you wherever you. if you go running or what have you, you are tethered to your phone. >> am i right in thinking you are still a little skeptical with what we know so far and still we're going to learn more about this new product? you're still a little skeptical that apple is going to be able to shift as many of these watches as perhaps they're internally expecting? >> i don't think they're going to sell 20 million of these in the first year. i think it's going to -- we're going to see a slow start, which is what happened with the iphone. now, everyone -- it's easy in retrospect to see the iphone as this big success, but it took a
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couple of years to really get people on board. i think we're going to see something similar with the watch. >> all right. max, thanks very much. jim cramer will stick around. once again, congratulations. >> thank you. >> a wheel lot more coming up. for that, sir, you have the honors. >> the dow jones industrial average just off its highs of the day. the nasdaq is up. apple is up a couple of percent. the apple watch just rolling out. >> information indeed the moment people were waiting for on a day they announced a bunch of stuff, but the watch is what we are watching.
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>> the apple wuch has been the most anticipated announcement. tim cook is talking about that right now. we were talking earlier in the show about how important it is to customize these watches. jim said it needs to be different, and that's exactly what apple appears to be doing with customizable watch faces. can you keep whatever information on the top of the watch that you want whether that's the weather, whether that's a stock quote, or whether that is a picture that you like. you will be able to control music from your apple watch. you'll be able to receive messages on your apple watch. if you get a message, you will get a gentle tap on your wrist. that was one question. exactly how apple would notify you when there is something happening on the device that it expects you would want your attention notified. also you'll be able to receive calls on the apple watch. it has a built-in mike and speaker. fwet ready to potentially listen into a lot of people's conversations, so certainly some interesting developments. now they are starting to talk about fitness, xer sees, and the
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health compoen enlt of what this technology will do. brian, i suspect that will be the next chapter for the apple watch, and we will bring that to you very shortly. >> all right. we're going to look forward to seeing you in a bit. i guess we're going to hear a lot of conversations to kayla's point. hopefully there's going to be some headphones associated with that as well. jim cramer still with us here and, jim, i'm going to say first off, congrats. the big story of the day, the of the week is what your eagles are doing. let's fwet back to the apple watch. >> they might have done something -- let's bring up a chart of the nasdaq intra day at apple. i just looked at it prior to coming on set. i overlaid them. you're seeing apple go up. nasdaq go up. there's a response. how important really to you to the markets is apple? >> well, look, i think apple is the way people think of the stock market. i had a group of teens that were down before the stock exchange. who is recommending apple? everything goes up. now, that does worry you. everybody seems to be in. the price to earnings multiples still low.
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it looks to me that there is an indispensability if we have health care. if we have health devices. i have had ceo after ceo on and they're all trying to figure out devices that don't puncture the skin, that give your reading for cancer give you a reading for blood pressure. if they're going to do those for apple, that's who the apps will be written for because that's the most lucrative to write for. >> most people would agree that a smartphone is a must have not a necessary, but there are many hold some hold-outs. this is important for apple and maybe microsoft even. it's going to be a must have for personal data. >> this is definite. >> what do we do now in. >> >> this may be a prelewd to
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have personalized medicine impact you. >> do you believe then the medical research app or the presentation which is about an hour ago, and ultimately may become more important? >> yes. one of these i want to emphasize, they don't have it yet. when you start hearing, well cramer said to have this. no, no. i think it has to happen. it hasn't happened. we say listen, i don't need this. i have a terrific watch. when you get the apps written for heart, if they can write one for cancer are we going to stick with our brightlands the knock-off -- >> you talked about it this morning with david. i usually wear fitbit which is a semi-competitor. i do not have it on today because i forgot to charge it. it's dead. it requires a charging about once every -- >> you can't take it in the shower. >> it requires charging once every five to seven days. the apple watch as we know it may require charging every day between phones tablets, watch. do you think that could be the achilles heel of these products? thief got to be charged and
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plugged in? >> the next generation already does it. i mean i remember i had a psycho -- that's a watch, not a personality. they used to -- if you moved it like this, it went. that's fine. that's not what this is about. people -- this next generation or the millenials, they're all used to charging everything all the time. they are used to having their phone run down than if they take too many pictures. they are accustomed to having to charge everything. >> i call it the red battery syndrome. people at airports, they're not smoking. they're in the corner huddled near outlets. nervously shaking as their phone goes to the red battery. >> the wireless charging of some competitors will be really important. if they can do wireless charging of that phone and you just walk around and go to a starbucks and, boom, you're fine, that can help. sfroo we have a hidden indirect winner to apple watch. we'll unveil it. it's called a tease. forces people to watch. get it? watch. melissa lee at the nasdaq has been watching. she's been listening. we've also got gene with us.
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jim will stick around. >> what the heck. >> on shares of apple this is worth watching as we're getting more details on the watch as we speak. gene munster is at the apple event stepping out right now to talk to us. gene has an overweight rating on apple. $160 price target. good to see you. arguably, though, even though you are positive apple overall, you are a bear on the watch. your estimates for a unit sold this year for calendar year 2015 is eight million which is way below the street consensus. walk us through how you get to that eight. >> well we think that it's best to be conserved because a lot of the value will be determined by the app developers, and that's just starting out. so we thought it would be -- we understand where the street is at, and we thought a level of conservativism would be helpful. ultimately, we think that the big first break-out of the watch is probably december of 2016. this is going to be a huge category for apple, but it's going to take some time to get
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momentum behind it. >> i think doctors will clearly nantd that but if you look back again at the iphone as an example, it just took time for develop toerz really build the excitement around the platform and so the average person is really probably thinking about this as some sort of a gift for the next big holiday, and so that's why december of 2016 is the pivotal point. >> gene we just got tape of tim cook unveiling the watch moments ago. we wanted to play this right now. take a listen. >> i would like now to turn to the newest addition to the apple family. of course, i'm talking about the apple watch. >> it's not just with you. it's on you. since what you wear is an sfregs
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expression of who you are, we designed apple watch to appeal to a whole variety of people with different tastes and different preferences, but the one thing that's consistent, we crafted each one of them with the care you would expect from apple and used incredibly beautiful materials like this stainless steel and sapphire crystal. anodized aluminum and a jaw-dropping beautiful 18 karat gold. now, in addition to being a beautiful object the apple watch is the most advanced time piece ever created. >> again, tim cook moments ago. he made a big push on taste and preferences saying you can buy
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one in gold or stainless steel. as a consumer though as somebody who upgrades her phone probably every couple of years, i'm scared of buying something really expensive and having the technology embedded in that expensive casing. >> think for the $5,000 watch, whatever the highend version will be, i could see that be a big apprehension. i think the average person is kind of thinking this is maybe a $500 to $700 purchase, and i think that's less intem dating. we think about it in two years. it ultimately comes back to what's the value people will get out of it. if they get a ton of value out of it they won't think twice about spending $500 $700 every couple of years for it. it really comes back to what's the substance and the experience and we're going to learn a lot more about that in the next few months wlsh. >> i guess swrim cramer my concern is we don't know. you can say it's going to be a hit or a flop. i guess what we could say is how much apple watch expectation is already priced into the stock. are people expecting it to be a hit? >> gene is the ax. that's why it's so great that
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melissa is interviewing. if he says it's going to be eight million, we have a new benchmark. i got to tell you, we have watches. what are we going to do? do we throw away our current watch? that's why when she says it's a gift, she's right. >> the category has been around. >> it's been around. you really -- look i fwot to tell you, if you are t mobile you really want to go and you say, listen, i want a deal. buy a phone and get the watch. that's how this thing -- >> gene i'll ask you the same question. how much apple watch expectation is already priced into apple stock? is it priced in as a winner? >> it's not. i think that most of the buy side struggles with the same things that we're talking about. it's really a good position for the stock because as soon as it actually takes off i think that's going to be up side to the shares. >> what's the bottom line gene for margins? you're thinking that asp's average selling price could be higher because of the different bands that are offered in personalization options. >> i think that's going to be a big take-away from this and
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people aren't focused as much on what the asp and the gross margins are. it's not fwog have the same margins as the high-end designer watch market, but i think this is going to set up for clearly higher margins than an iphone margin, and so units might not be that impactful, but i think ultimately it's a slight lift in margins that are always good for the stock, and i think the watch will contribute to that. >> is it dangerous to get to a point where i think that we almost are, gene and jim, which is we automatically assume that everything coming out of apple is going to be a hit? what if it flops? what happens to the stock? >> well i would think at this point apple pay could obscure a flop. i think apple pay not talked up enough is going to be something that the big retailers must must take? that's not in a lot of people's numbers. the big retailers are said we're probably not going to take it and i think they're going to lose business to others that do.
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>> exactly how consumers will interact with this brand new device when "power lunch" with brooen melissa, and jim cramer comes back right after this break. in new york state, we're reinventing how we do business so businesses can reinvent the world. from pharmaceuticals to 3d prototyping, biotech to clean energy. whether your business is moving, expanding or just getting started... only new york offers you zero taxes for 10 years with startup ny business incubators that partner companies with universities, and venture capital funding for high growth industries.
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sdmrood how disruptive is the apple watch to retailers? let's bring the founder and ceo of -- it's great to have you with us. you actually say the watch could be disruptive to certain watch players out there? >> yeah. absolutely. i think, you know the numbers that are being thrown around eight million to 20 million watches, those are huge numbers in terms of the total watch market. you think about a player like fossil they sell about 30 million watches, and so, you know, it could be very disruptive to the fashion watch category. >> fossil already had a terrible water. you saw the stock just drop off a cliff. is this sort of -- i don't want to say the death nail but is this another reason not to be in fossil? >> i'm pretty bearish on fossil. i think that -- i have been for some time.
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i think that this is just one more reason. fossil obviously has some issues of its own. they're dealing with currency, et cetera, but the move of watches towards smart watches is a huge risk for the traditional watch industry in my opinion. >> and in temz of the other retailers exposed to the watch category, coors is one. coach is another. they each have their own sort of other issues. >> that said i still think this is pressure potentially for the accessories industry. it's really about discretionary dollars and, you know what the consumer is going to be spending on and so if they're spending you know $500 on a watch, that's $500 that they're not
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spending on some other category. >> it may not just be watch for watch. it could be watch for wag or watch for belt. >> right. we're talking about it as a gifting category. accessories are a big gifting category, and ultimately accessories and the whole lifestyle luxury segment is about sort of displaying affluence, displaying lifestyle, displaying relevance, and i hi had if this watch is a success, it does all of that. the biggest impact on fossil. >> yes. >> back to you. coming up, we have an investor who may like the watch, but is actually trimming his position in apple. plus, it's not just apple today. we've got more on oil, more on gm's big buy back news and stock reaction. the dow is up right now. triple digits. microsoft, by the way, is actually up percentage-wise more than apple is today. when is the surface launch? investor harry wilson pushed for gm's big buy back and will be a guest on "squawk box" at 8:00 a.m. eastern time. you're watching power lunch, though. we're back. l?
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decide what to do. with tools that help you see how market activity is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move wherever you are. and start working on your next big idea. ♪ ♪ >> welcome wack too power lunch. the dow jones industrial average still up big. it's given back some of the earlier gains. you might notice that appear is in the news a little bet today. channing smith, managing director at capital advisors.
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an apple shareholder, but he has been trimming apple, and channel, i'll ask you this. is there anything you have seen or heard today that has made you regret trimming some of your apple position? >> not really. i mean if you look at the launch, are you pretty much going to get what you expected. we think it will be slow to be adopted sfwloosh why? >> if you look at must-have products, i think if you have the ipad that will change the way we listen to mooufk. the paied pad changed the way we viewed content. the iphone changed the way we communicated. all of these products are life changers. with the phone we don't understand what's really going to change about that and what's going to change our lifestyle. if you have an iphone in your pocket we don't understand why you need a device on your wrist. >> channing sit tight.
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kayla. >> one of the details about the apple watch that has been most closely watched is the battery life. how it would compare to some other devices on the market. executives just now saying that the battery life will be 18 hours for the apple watch. not even a full day even though they are displaying a bunch of different use cases for the apple watch, including checking into a hotel loading a flight boarding pass and kevin lynch, the apple executive that has been spearheading the watch effort, even used the watch to remotely close his garage door. many in the audience were very impressed with that demo which was showing on a live feed. that being said it remains to be seen of course we have heard that apple executives have said the bulkier you make a battery, the less sleek a design it is but certainly 18 hours is going to be one of the facts that
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comes out of today's presentation that will be very much talked about. guys, back to you. >> well in fact later on on the show we're going to reveal what we're calling maybe the big indirect winner of the smartphone and wearable revolution. you might have a clue as to that. we're rejoined by channing smith. listen, again, the apple watch looks beautiful, looks spectacular. i heard you make the point that some people would already claim they have a wearable if they're using their iphone in their pocket. 18 hour battery life. what does that mean? it means if you buy this watch in order for it not to be a dumb devices hanging on your wrist, you will have to charge it effectively more than once a day. could that be a negative point for the watch? >> a point was made earlier about medical applications. you really need this if you are sleeping. you need this to be on at all times. i think that's going to hurt.
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if you assume a 600 million user base and 5% next year, with the year after that that's about 30 million devices. if you just do the math on that assume a 350 average selling price, you really only get to about 13 billion in revenue, and 75 cents per share in earnings which is great, but in the grand scheme of things it's hardly going to move the needle. >> yeah. the other question jeff more known for bonds, obviously. i'm sure you're familiar with them. made an interesting call on apple about a year and a half ago. i guess it was. i love the company, but i worry that everybody who wants the stock already owns it, and when there's no new buyers that he saw now the stock has come back since he said that. do you think apple may be over owned?
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>> once you get to it point, apple will take market share, and it's going to be tougher. we're excited about the i watch. we think there's a lot of great inwroe vegas coming. earnings are going to slow. it's just natural that's where we are in the cycle. look at the market cap. just take a little bit more conservative approach. you should be in apple, but we're just not overweight it like the last couple of wreerz. >> don't hate it. just trim it back and made a bunch of money on it. i fwet it for you and your clients. channing smith, it was a real pleasure. thank you very much. we've heard a rather skeptical case on apple's stock. we're going to get more of a bullish case later on. plus, we're counting down to the oil price close. will it close above 50. whiting petroleum, will that company be sold? it's more than just apple today. fannie pack makers they're going to be the way to the future because you're going to have to care around so many charging cables you won't be able to do it in a pocket. that's my prediction. back after this.
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now with the xfinity tv go app, you can watch live tv anytime. it's never been easier with so many networks all in one place. get live tv whenever you want. the xfinity tv go app. now with live tv on the go. enjoy over wifi or on verizon wireless 4g lte. plus enjoy special savings when you purchase any new verizon wireless smartphone or tablet from comcast. visit to learn more. i'm sue herrera. here's your kr nbc news update. the university of oklahoma severing all ties and affiliations between the school and its local sigma alpha epsilon fraternity. that in the wake of the video that reportedly shows members singing a racist chant. the university president says they are exploring the
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possibility of student expulsions. the supreme court has sided with the obama administration in upholding a rule making mortgage brokers eligible for overtime pay under federal labor laws. the justices threw out a lower court ruling that faulted the straugs for trying to change overtime rules without following proper procedures. investors reportedly pulled 18.5 million from bill glows's janus unconstrained. it is the first cash withdrawal since he took on the portfolio in october. talk about a fat paycheck. crane says blackstone boss steve schwartzman is in the running to be paid $1 billion in a single we're. nice work if you can get it. now let's go out to kayla in san sfrifk with breaking news on apple. >> hi, sue. thanks so much.
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the first new category launch since 2010 for apple. first, the apple watch sport will come in aluminum silver or space gray. the two price points $349 and dmrars 399 based on the size watch you get. then moving up from there, the apple watch will be made of stainless steel. the two price points there $549 $1,099 for the apple watch. then the apple watch edition is that highend luxury product where the price point had been talked as high as $19,000. that will be a $10,000 starting price point for that gold 18 karat gold edition of the apple watch edition. they will be available april 24th. preorders start april 10th. guys, we'll send it back to you. >> kayla, can you confirm for us, though -- ask this is important -- that the $10,000 version of the watch does or does not come with mickey mouse
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as the hour and minute hands? >> no details on that just yet, but, brian, we will keep our ears peeled for that. >> we certainly will. nothing wrong with ears. kayla, thank you very much. $10,000. apple is going after the luxury market in a big way. these are unsubsidyized products, by the way. it is not just about apple today that you can see apple stock is up 41 cents. we can -- the $50 a barrel level. let's go to jackie deangeles for the -- oh my gosh non-apple news. >> non-apple news. thaefrt. what happened in oil today well, had a little bit of a pop on wti hanging around that $50 level. really not able to break out in either direction. >> not necessarily true if you read the note. goldman was saying that we could see some short-term pressure but $40 may be too bearish, and
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it's the $65 target in 2016 that may be too bullish. it looks like this range is really tightening here. now, catalyst will be that inventory number that we get on wednesday, and of course we did see a huge build last week. didn't take us much lower, and i do want to talk about retail gas prices hovering around $2 .45 right now. no change. traders are saying we could see a spike in the near future. it is getting warmer. drivers will will get on the road and we're going to see that summer driving season spike come. back to you. >> all right. lost in all that news on apple, by the way, some of the big eagle ford shale and texas players are getting walloped. can we bring up quickly an audible. gdp, goodrich petroleum. that's down 9%. comstock resources, crk, another big player in the eagle ford
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shale. that is down 10.2%. the stock of whiting down 2% over the past six months, and. whiting actually bought a company itself. kodiak oil and gas for nearly $4 billion this past year. let's bring in eric director of oil exploration and production at clsa. eric first off, do you believe your reports that whiting is for sale, and if so is the stock maybe a good buy here? in the note we found a liquidity shortfall coupled with the spending plans and also their ability to generate cash. we highlighted in our note three openings opings for the company.
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we saw them issuing their equity, and then the third option which they had noted are earlier, which is potentially selling assets. the fourth option of a potential sale, you know is relatively consistent with what we found about liquidity for the company. correct. >> it's interesting too, eric that listen companies do time things incorrectly, and when you look at the $3.8 billion kodiak and oil ask gas deal it does call into faith the question and management. you say why should i buy this stock? why should i trust this management team when they clearly mistimed the market so badly? >> i think to be fair to whiting, you know i think the market timing is something that is very challenging to do and i don't look to them to be perfect timing on oil prices. in fact many people missed it. if not all the companies. i don't think that's fair to single out whiting on that front. >> i'm not going to single them out, but i will say this. if you are in a position where you pay $3.8 billion for a company less than one year ago and don't foresee any sort of -- i understand it was a 50%
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haircut on oil. it doesn't sound like that was a company that gave itself much leverage leway, or pad. >> sure. i mean our stock analysis i'll stick to the fundamental stock analysis basically shows. >> we don't see any in our coverage area that are up for sale, and outside the coverage universe i prefer not to speculate. >> eric we do appreciate your time. thanks for rolling. we did put ow the spot. we do appreciate it.
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okay. >> the apple watch event has wrapped up. tim cook giving remarks and the disclosure of exactly what tier is the apple watch would be and the pricing. three tiers starting at $3.49. it's availableable in yellow gold or rose gold. both of those 18 karats. certainly that is some of the granule ar detail that the audience and investors alike were looking for. the apple event for today has wrapped up. chockfull of new products. now we go to investors to see what they make of this for apple, the company, and for the
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consumer. back to you. >> you know, kayla, i have been knocking the battery life issue just because everybody is going around charging everything all the time. >> you have to stop and charge those things fairly often. it would look look a long period of time. the question becomes how it's stacking up to other competition. other companies, of course, are going to try to nip at apple's heels to put out a product that at least appears superior to it in some of those details. more functionality. we will see. certainly that is one of those details that you can imagine competitors will begin targeting. >> i guess you could frame it another way. the apple -- i market it like this. the apple watch, the battery lasts five times as long as a tesla.
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kayla, thank you very much. >> 20 cents they're. the stock melissa lee has come off well off its highs. did you notice because are you all over this stuff, microsoft is up nicely today. when is the surface launch? >> interesting. interesting. we should note that, you know a lot of people are saying this is going to be a sell. the event for apple. we did see the shares intraday session highs just before 2:00. just as the watch was about to be unveiled and right here as the watch event can bes, we see the watch -- which is session lows that the point. meantime i think we're going to talk tesla just quickly. under pressure and the entire session. there's a local media report in china that there were going to be job cuts of $180 cuts in china. tesla spokesman is confirming the job cuts but not saying how many exactly. remember, there's some doubts recently about tesla and the ability to gain some traction ha, ha. no pun intended in china.
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reuters said the tesla sold only 120 cars in china which would have been a disappointment and tesla shares. nonapple story, brian. tesla shares under pressure. >> putting out a technical note earlier today that basically said tesla is selling off support that it went to its moving average and kind of failed. technically the stock is also a concern. you probably realize melissa, that i think tesla delivered ten cars in china. sfw like this last month or last water. ten. >> right. i mean, there's some real doubts about that. >> that's not a lot. melissa, says thank you. coming up should you get involved in a company that sells clothes to young people that are trying to be hip? trying. one analyst says it could be an opportunity. street talk coming up. check out the stunning apple stats. apple brought in 74.6 billion in the first quarter. that, my friends, $829 million every day. in fact, more than $100,000 in sales for apple. just happened as i spoke those
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words. there's another $10,000. back after this. d ls and that was something that was kind of growing up culturally, it was quite unacceptable and she really dared to let me be different. [thunder and rain] [thunder and rain] [thunder and rain]
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session lows. they had been climbing steadily higher during the first portion of the apple event when executives discussed a partnership with hbo's new stand-alone service as well as new developments in the medical and health care space as well as a brand new mac book. when the discussion turned to the apple watch, that's when shares started retreating a little bit. just when the event ended moments ago. shares went into negative territory. now they are at session lows. josh lipton has rejoined us here in san francisco from inside the apple event. your reaction to the reception of too many cook and the slate of apple executives. >> first, i was impressed, kayla, how much impression we got through so quickly. it was about an hour and a half and through the first half hour you were watching apple tv hbo, car play health. that was just kind of a warmup. they got to the device. i thought they answered a lot of the questions we had coming into this. i think investors, consumers wanted to know about pricing. you got those details. they had a lot of questions about battery life.
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that's what will distinguish this watch from a lot of the competition. it's going to be it is apps. stroo lauren good from reco described the display as just a parade of fancy use cases. scrolling through a bunch of different application that is you could use on the watch. uber instagram, checking into a starwood hotel, for instance. >> using the watch to unlock the door at the hotel. >> are these bells and whistles or can you see the consumer really using these in their day to day life? >> well i think those apps from uber and instagram essential are going to have wide appeal but i think to your point you have to now have these developers come on word and really decide to have created ino vative apps for
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the watch. that's going to make the difference here. it sold well. 700,000, 2014. it's the developers now that push this forward. >> you know, josh, the one thing i've been getting comments on twitter is the lack of water proofness of the watch. do we know anything about that? again, if you buy a $3,000 or $5,000 tag, it's probably going to be water proof or water resistant. i'm getting some comments here on twitter basically people saying, hey, if it's not water proof, i'm not going to wear it. are you going to risk paying $1,000 for a watch that may get ruined if it gets some drops of water on it? >> you know, it's a good question. i don't think in that prejs presentation they got into that. >> is it water proof? maybe it is. i didn't hear them say it but i also was doing other stuff. >> they didn't touch on that. at the same time, though they made a big deal brian, of how important this app was going to be in terms of different health and fitness applications.
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gep, what could be the big indirect winner in the smartphone and wearable revolution. we're going to show you what may be the one group no one has talked about yet that may be the big winner in all this. we're back after this.
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>> just because it's apple day, does not mean we forgot about street talk. five analyst recommend dayings. melissa lee, first up urban outfitters. green capital talking it up. they raised their target from $46 to dlashs 42. that's 15% to target from 42 to 46. >> it's up 18% since mid-january. quite a call to the upside. our second stock, phillips 66. hiking the price target by 15 bucks to 100 as share. the analysts saying that the management has come out fighting but the market has not noticed.
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got leverage through the wti pricing here in the united states. and you actually have a call which is the other part of this credit suisse call which is kind of interesting. >> yeah exactly right. by the way, the average target on phillips 66 about 89 bucks so credit suisse is very bullish. another call on a smaller cap refiner, pbf energy in new jersey. outgraded to an outperform. 4% dividend yield. >> next stock up taiwan semi-conductor manufacturing, tsm. downgraded to an underperform. high inventory levels at the top five customers, most notably qualcomm and nvidia. peak monthly sales in january and they don't think order cuts from qualcomm or media tech are factored in. >> new mirror report says taiwan sem semi has a strong probability of
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but the apple 10 chip. >> diamond rock hoss pipitalityhospitality. upped to a buy from a neutral. too much negativity around the stock. their target is $16 a share. >> a lot of hotels are the upper end. interestingly, $1 spend on these stocks would have been a better dollar spent than on diamond rock hospitality year-to-date and for the past 12 months. coming up next we'll get back to the big story and that is of course apple's new watch. did it imprets ourss our experts? >> did it impress you? back in two. retirement account. before he opened his first hot chocolate stand calling winter an did it impress you? back in two. and before he quit his friend's leaf-raking business for "not offering a 401k." larry knew the importance of preparing for retirement. that's why when the time came he counted on merrill edge to streamline his investing and help him plan for the road ahead.
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now the answer to our tongue in cheek riddle about the hidden beneficiary of all these smartphones and wearable devices, electricity and the power generator specifically. this morning with a team i was jokingly saying we would need more power to everything. the global it computer industry using more power than it took to power the world's lights. natalie morris a long-time apple watcher -- welcome, by the way, we're talking about waterproof. apparently tim cook did tell -- >> angela merkel. >> of germany that he wore it in the shower. >> you mentioned it.
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and everything he does is calculated. i wouldn't have said that if he didn't want us to parse out it's waterproof. >> some water resistance. that's a big deal. people wanted to know. they're not going to buy the watch. overall, your take on what you saw today on the watch or whatever else. >> well i was really impressed with that mac book. i also was excited about the apple tv announcement although i'm wondering why they dropped the price but don't up the hardware. that's very old hardware so you have to think they're going to move those out and then they will eventually come out with a new apple tv i shope.hope. with the watch they needed to sell us on the fact we need this. and it's just a fancy, really small smartphone. with the ipad we were asking the same question, what is this? do we need it? after the keynote was over we were like, yeah we need that. >> although i will say this some people are deciding maybe they don't need a tablet anymore because the phones are getting bigger they have a mac book
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air. >> what we needed here was like "the new york times" said, the apple watch is ready, is the public? and i don't know that we're convinced of that yet. of course i think it's cool you can do all that stuff but i don't think the data is out on wearables yet. >> apple is very very good, better than any company in the world at making us need something we never thought we knew we did. >> let me back that up. we think we need it -- >> they tell us -- they bring out a product, we don't need that and a year later it's indispensable. >> we're going to see it improve, we're going to see the price drop. so i don't know we'll have that kind of rush to adopt because we already know what happens with first generation apple products. >> natalie morris underwhemed edunderwhel ammed by the watch. >> i want to be impressed by how much r & d apple puts in miniaturization and battery life. i know they have worked hard. it's a technical feat but, again, am i going to get it for
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my mom for christmas? >> yes. >> now you just told her. >> apparently investors may not be impressed either. apple stock is virtually unchanged. so prewatch event levels where apple stock is right now. let's get to robert. great to have you with us. >> thanks. >> was there anything they said that would make you believe that apple watch is going to be the gift for the christmas tree this year? >> well i think everything we saw today was actually right in line with what they already previewed. there really was no new information apart from pricing and i think frankly pricing was pretty much in line with most expectations as well. i mean i think this is an iphone accessory. it's a high-end accessory but frankly iphones target a high-end demographic. this fits perfectly actually with apple's market. >> isn't there a big unknown
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because we don't nope what the uptake will be amongst the developer community. they're only going to get access to the watch i guess at this point. we don't know how robust the app universe will be specifically for the watch. how long does that usually take to happen? >> so the watch kit extensions for the ios have already been available since november. it's playing off the iphone at this stage. it's glances, notifications from the phone. in the future we'll get native apple watch apps but not even yet. really this is playing off the phone, but it's doing it on purpose. it's because you want to limit the battery usage and so you push all the heavy lifting to the phone. >> you say that this is going to add about 4% to apple's calendar year '15 revenue accounting for 36% of its growth. do you stick by that after what we've seen today? >> yeah. my estimates -- i'm looking for them to sell about 18 million in the first year. i think that's a doable number.
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basically our statement is based on getting to a 5% attach rate to the iphone. if you look at it i think that's a doable number. ipads were like 20%. >> robert going to leave it there. thank you. >> thanks very much. >> brian, i'll see you tonight at 5:00 for "fast money." of course, we'll be talking much more about apple and the trade now that the stock is, in fact in the negative. gave up all the gabsins from today. remember today the ecb started buying bonds. there's other news aside from apple. >> there is oil around 50 bucks and microsoft a better performer today. thank you very much. take care. cleb with "closing bell" with more on apple starts right now. happy monday. welcome to "closing bell." i'm bill griffeth. >> and i'm sara eisen in for kelly evans. all about apple and the stock market rally.
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retaking 18,000 getting back some of the steep losses from friday and the dow is strongly outperforming other indices right now. we've got industrials and financials in the lead. that's bullish. energy is lagging behind. >> which would be just the opposite of friday when financials were more concerned that the fed was going to start raising rates, down they went. now we're coming back. so we've got a bit of a bounce from friday. interesting activity for apple today. it was up about $3 at one


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