tv Fast Money Halftime Report CNBC April 27, 2015 12:00pm-1:01pm EDT
bucking the trend, 1.43 as investors wonder if google buys them in the end. >> downgrades of stock and popped. maybe twitters -- >> doesn't happen to peck often. >> no. >> big week coming up at the new bureau, the lineup includes don, john, and yahoo president among many others. you can hear the bull's toll, let's get back to headquarters, scott wapner and the half. welcome to the halftime show, our starting lineup starts with josh brown, along with pete and steven. we have a big game plan for you today as well. we have that twitter downgrade that we're going to talk an awful lot about. bob peck will be here live as well. we're going to count down to the big apple earnings report, we're even going to talk to an investor with billions of
dollars under management who says to stay away from china, even with the great gains that we've seen in the stock market over there. we're going to toss it out to the conference in los angeles. two big interviews with two big people today. blackstone's chairman and ceo steve schwarzman. he's sitting alongside brad sullivan. >> scott, thank you very much. steve schwarzman, runs a bunch of stuff. all of our audience knows what he does. they teased you with china, steve, welcome, thanks for joining us. i want to start with real estate. a lot may not realize you are the biggest owner of homes in the united states. what's your view? is housing still a good investment? >> housing is a good investment. its been coming back for quite some time. we're only building about half
of the houses we did at the top of the last cycle. people need to be in houses as immigration continues in the united states. >> so we'd still buy. you bought at the bottom, would you put new money in housing right now? >> we still put a little bit in now. not as much, nearly, as we did at the bottom, but we're finding that the market continues to go up. for the value of houses. though not at the same rate that it did obviously off the bottom. >> it's good, but it's less good. is that a fair way to sum it up. >> it's good enough. >> good enough. there you go, you know what's been great is china. the shanghai deposit is up about 17% this year. you made some waves recently because you said there is quote, excess in the china market. now when you speak, people listen. when you say excess, do you mean like it's exuberant or maybe is a little hot? >> well, you can put money
almost anywhere in the world. in china, you can't take your money out. it stays in. and it goes either into deposits and financial institutions, it goes into real estate or it goes into the stock market. at the moment, deposit rates aren't that high to attract the money, and real estate in several asset classes has been going down. so, if you have money in china, you are now putting it in the stock market, regardless of what the prospects are in china and in china, they have huge savings. like, 40% savings rates in china. so there's a lot of money there. and when it starts going in one area, it really goes into a boom. >> so, scott walker, there's your investment strategy, you buy stocks, whether you want to
or not, apparently in china. >> well, because it's hard to argue with the gains i suppose that you've gotten. mr. schwarzman, great to have you on the show today. i'd like to ask you a quick question, along the lines of investing and how it certainly seems as though private equity firms like yours and those that you compete with are open more than they ever have before to individual investors rather than institutions. you can see it in the amount of money that is now flowing in. you've changed some of the waves that folks could actually get a little bit of piece of the private equity in ways that they never could. i'm wondering why that is and whether it just simply is a reflection of a bigger appetite for alternative investments. >> well, we've been taking money from private investors for really very long period of time, probably about ten years. four years ago, we set up a unit to focus on those investors. the reason we're doing it is
that, private investors as opposed to institutions, typically have only about 2% of their money in alternatives. this is a very, very small amount of money compared to the 15 to 25% than institutions have. our type of investing has had very high rates of return historically. depending upon which type of asset, whether it's private equity or real estate or some other type, whether it's 800 to 1,000 basis points over the stock market. so this is good for people, and it's good for institutions. and so, giving individuals a chance to invest in these kind of products is good for them, it's also good for their retirement. >> steve juarez smaschwarzman, pleasure, i wish we had another 20 minutes. >> okay. >> pleasure to see you again. thank you very much.
and scott, listen, we have ceo of blackberry, some love it, some hate it. ceo of blackberry is coming up. >> thank you so much, mr. schwarzman, great pleasure welcoming you in. thank you and we'll see you back with john in just a bit. let's talk about the markets, steve. we're at a point where you had a breakout last week that caught a lot of people by surprise. do you think it was for real, is it something to build on? are we just back now in this uptrend? >> i think we are. i've had so many conversations with hedge fund managers and investors over last week, including here, everybody thinks that the markets kind of full.
>> the data that we've been seeing, if that does start to pick up. that's going to be something that will give us a tail wind on top of what we've got going on. we've been talking about riding this for a while. how about the fact that the volatility index is trading in the 12s. we're near the low end. why wouldn't and why haven't, and this is exactly what people are doing, scott. they are buying protection, they have protection in place, we are seeing moves within the market itself, day in and day out, and
yet, the actual volatility measure because we're going close to close is extremely low. and actually, right now when you look at the vix, it's above where it should be given the close to close type of opportunities that are out there right now. i tell you what, if you want to be in the market, if you're buying protection of the downside, you're able to ride it and look at the companies through the rotation, the microsofts of the world that were given up for dead. > so, what's in your favor, is that you've got a bull market that's now gone global, and it's expanding beyond just the united states, so the bulls would look at that and would say, wow, you've got europe about 4.5% above of its moving average. we haven't seen as much bullishness there since at least
last summer. you've got china now moving much higher. you've got all these other positive developments away from the u.s., maybe there is something to this idea at the new higher. not in your favor is the fact that steven weiss mentions there's decent amount of bottom line beating going on, unfortunatelily, revenue picture is really ugly. only about a third of the 200 companies in the s&p that have reported so far have exceeded revenue expectations, you have earnings, trends still continuing lower. you're looking at a 0% year over year growth rate. and we haven't even heard from a majority energy sector. so you do have this real push and pull here, scott. i'm the first to tell you, i don't feel i have a strong edge on in sch direction the next 5% may happen, but, the technicals are telling you that people won't want to own stocks way more than they want to sell stocks. that's why we have the 5100, and s&p at a new high, new york stock exchange is breaking there
as well. >> you have selling into that strength we saw earlier today for certain you saw the major averages turning negative. at least from the nasdaq, russell 2,000 has gone negative, but you have the dow and s&p holding on to positive territory. speaking of big earnings reports, apple, after the bell today, already action happening in that name, stock is on the move into the number, pete's going to talk to us about unusual activity or anything going on at the telestraiters with the x's and o's. downgrade with twitter before the earnings report. it's our call of the day, we're talked to the top tech analyst who made it, bob peck. then we we tuk someone who manages more than $5 million who says stay away from the two investments. we'll tell you which ones when we come back on the halftime show.
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i spoke to him a short time ago. here is what the investor told me, quote, we are very pleased with the iss endorsement. iss agrees that the company's operating performance is not what it should be. and that change is needed in the board room, further more, iss believes that having a representative on the board will add a stroong, well informed and constructive voice for shareholders. iss recommended a vote for john myers and myself, they also noted that bob zata and art winkleblack are well qualified given their experience as cfos with significant strategic responsibilities. steve, this is a big news. this is victory. stock is up at least was up about 4%. could we take a look at the shares again. i'm sorry, i missed that. up 4%. iss going on to say, iss operating not what it should be. there is compelling evidence that the disdants are on to something in their critique. >> to a certain degree,
shareholders. they're influential. that's why the stock's responding. i think that it changes the odds here and does put someone on the board. and that's going to make dupont more interesting if they weren't. >> do you buy the stock? >> i'd wait for it to pull back. >> up 50% since he got in there. >> i think people were expecting something to happen. and that's been the argument, his argument, he's right with the stock had done as much as it did, if he weren't out there agitating the change, i don't believe it would have. it's moved up far past its fundamentals. i'd wait for a pullback, dupont something to own going forward. there's a lot of change to effect there. if he does the most significant change, that's great. he's only one board member, maybe two seats. >> they say of him getting on the board, josh, seems clearly in the best interest of all shareholders. >> yeah, i don't know how you could really argue against it. >> how do you make the argument against it given what the stock's done. now he's going to be in the
board room. >> you have to be on the payroll of the existing management in order to concoct a way that this is negative. pelts comes in, rattles, sabers and takes a profit. >> he'll be if he gets elected. this is obviously a recommendation. >> right, if you're a shareholder, i really don't see how this is a negative any in either the short or the long term. market's telling you that. >> all right. it's the countdown to apple earnings, the company is set to report after the bell today. analysts expect apple will report revenue of more than $56 billion, iphone sales numbers. we have on the floor down at stock exchange. he with stewart frankel, pete is over at the telestraiter. pete, you first over there. what's the sentiment telling us going in here? the stock is up -- >> yep. >> what are you seeing? >> the stock is up obviously as weapon come into the earnings that are coming out tonight. you start looking over at what kind of expected move do they have, scott. the expected move is about 5%,
maybe even more, 5.3%, and how do i get to that? i look at the calls trading about at the money. these calls expire on friday. this is folks that are trying to play the earnings itself. if you add these, along with the main 33 points, you're going to come up with about $7, 7% move give or take in the stock. now last time, they underestimated the move, scott, they were looking for about a 6% move, maybe even a little bit more, 6.5, got close to an 8% move on the earnings last quarter. if we looked, you asked about sentiment as well. the sentiment, the top ten options trading right now. the may 135 by far are the most active. if you look through that. almost all of those are calls, it's about two to one calls trading right now. if you look at the expectations, i'll tell you what, they're selling, they're buying calls. it tells me that people are getting more and more push. doesn't mean they're always right. expecting a move and a bigger move to the upside. >> i wonder if you had your
chance at 123. >> you did. >> i'm saying, if that was your last chance for a while. >> it might be, scott. >> that's why people like kramer say, buy the stock, invest, don't trade the stock. >> you look for opportunities. every time there's a selloff on something that doesn't seem reasonable. i look at that as an opportunity. scott, we talk about this all the time. i gave you last week, we talked china mobile's numbers, they were absolutely extraordinary. you had record numbers of subs coming in. what do you think they're buying over there? i'm going to tell you, it's apple products. the iphone thing should be a big one. not a home ruin for apple, but the numbers coming out of china, i think, bode very well for tonight's numbers. >> the funny thing is that the dow's essentially flat, since apple joined, the other big tech, large cap names in the dow have all outperformed apple since it got on the dow. >> well, you know, apple had a good head start too. if you look at year to date
performance, apple has outperformed all of them. if you think about what pete just said, all the levels that pete was talking about. there's price targets around the street, the savage $141. if you look at the chart here, scott. all of these are mostly off of earnings. so what pete was talking about before, if that implied move, if we're, let's call it 133-ish is where we are right now in apple, if it does come in, this level right here is your 50-day, that's 127. so that's the level to keep an eyeball on. now this is 120, that is your 100 day. so if we do get that selloff and all of these selloffs if you look at the whole chart, starting back here. all of these were viable events. if you're lucky enough to get that discount, i don't think you will, you should be buying this. no one's expecting anything from the iwatch, people are starting to operate to the six-plus, six-plus holds better margins for apple. i think going forward, things
are going to be better for them. people talk about law of large numbers, but you can't bet against this one for too long. >> what they're expecting, steve, is a sizable capital return like the dividend -- >> yeah. every april so far for the last couple of years. yeah, i think that's going to happen. i think they're crazy enough to do it. they have nothing to do with the cash. they have way too much cash. and that's a poor return of cash right now. they will give back to shareholders. iwatch or apple watch, they're not going to top that. it's good to have no expectation, but in terms of phones, what people lose sight of is the dynamics with the companies, the wireless companies, they've changed their process and the ability to get new phones is so much easier. the finance that were receive, the two-year agreement, that all drives it, and as pete mentioned, i was going to mention this later, china mobile. numbers are huge, and apple's really getting started there. >> you're certainly helping the buy that you made on apple is going to help you out. >> it's helped me out.
i have others that are just terrible. thank goodness for apple. it was around 125. >> okay. we will certainly see what happens shortly after the close of today's trade. we will get those numbers and the analysis that all of you would expect from cnbc. we have some sad news to report now. we to want go to kate kelly for that, kate. >> scott, thank you so much. the respected bankruptcy lawyer harvey miller has died after a battle with als. the large international law firm where he was a partner for many years, he was the 14th partner at the firm joining it in 1959, worked there for many years. also had a brief stint at the investment banks advisory green hill and company before returning in recent years. known as the undisputed dean of bankruptcy law, miller worked on many, many significant chapter 11 cases in the u.s. he worked on texaco, continental, more recently gm and others, scott. and he is survived by his wife of 60 years, ruth miller.
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welcome back, we are at session lows for stocks. decent reversal from earlier in the day, dow was good for about 70 or 80 points with, now it is negative by just about 11. and you can see the nasdaq and the s&p following suit here as well. let's go to the call of the day now. sun trust, downgrading twitter to neutral from buy. also slashing the price target down to $50 from 58, move coming just a day before that company reports its earnings. bob peck is the analyst behind the twitter downgrade, and he joins us once again now, hey bob, welcome back. >> thanks for having me. >> buy since may of 14, why now? >> great run with it. 30% since the last report. so the genesis of our downgrade was a couple fold. one, i think they'll have a good q# #, we're all expecting that, the focus is q2. data is indicating that the maus so far for april haven't been that strong, the engagement as well hasn't been that strong. could be a little bit of a short fall. we also point out in the other
side of things, twitter is not facebook, fantastic, but it's not the must-buy for advertisers. that facebook is. twitter is more in the beta bucket. there is a pullback there, you could see twitter be impacted by that. when you look at pricing, the cost per engagement similar, to where facebook is. but the last part we wanted to point out through investors was, questionable content on twitter, deemed not safe for work, in violation of terms for service. they cleanse it off a lot. the problem we found was there is some advertising around this premium, 100 type companies, and you would not well, it's going to cause a, a cleansing of their users, as they cleanse these users off, or b, advertisers are sitting on their advertising budget until twitter can do it. we to want underscore, we don't think twitter is cop police isn't a, we don't think they know what's happening. we don't think advertisers realize it either. if it does come out, there's a quarter where there's a bump in the road. >> why do you think the stock had that run that it had?
did it have anything to do at all with fundamentals or it was simply on some of the business initiatives they had made? takeover speculation, seemingly now is talked about every day. anything to do with the real fundamentals of the company turning itself around? >> you know, we think it did. actually in q1 in january. we saw user data take up a that we looked at. that stayed strong in february and march. it ticked down a little bit in april. i think investors felt good that the q1 guide in the cfo was strong for q1. now the real question is more of a blip, sustainable, we're actually still very bullish long-term on the opportunity here, as they convert logged off users to log on. we just thought at this point, 30 times dow multiples, expectations going in, we'd step back and decide. >> you're not looking for great maus numbers or tweets per day numbers, so you don't see a real pick up in seemingly two of the areas that were most concerning to investors. >> yeah, we're actually looking
for 15 million maus, ned ads for q1. and q4 just for reference, it was more like four. you've seen a nice uptick. seasonality that there, product initiatives that drive that as well. the real question is what will we see throughout the rest of the year. >> you think that he should still step aside or have you changed your opinion on that? >> you know, it's funny, as we think more about that, as long as they're executing and hitting on the fundamentals, i think he's probably okay. you know, as we think about it, if there is a stumble, investors will get more accurate. >> bob, appreciate you coming on. >> thank you for having me. >> bob peck with the downgrade, josh. >> i was just going to say, and not a slight to my friend bob, it's funny how everyone's cool with him, as long as the stock is up 23% since the last time you reported earnings. i read the report from suntrust, i think it makes sense to get more cautious given the huge run-up, especially if you're short term oriented.
i looked at bob's four positive points on twitter, mainly the potential for the goog the deal and the fact that the company's iterating at a fast pace coming out with improvements and new products. and i think that that trumps anything that he had in the negatives column, whether we're talking about tweets per day going down. >> do we still have bob, or is he gone? he's gone. okay. >> either way, i think he makes some really valid points on both sides of the lenler, when i weighed the two in my mind. the good four versus the bad four, still makes me want to stick with it. >> you get the feeling that the stock, i mean, look, peck is probably the most respected twitter analyst out there. >> no doubt. >> downgrades the stock, stock is up, someone else talking another bit about the google rumor. >> my guess would be the fact that i think bob doesn't sound all that bearish. even though he downgraded, when we were listening to josh's point, there is some bullish and bearish, sounds like a conservative play to me. look at the run they've made. we saw the chart.
what it's done over the last couple of weeks or months. it's been going straight up. the appreciation to josh's point, 23 odd percent, very impressive. i think bob saying hey, take chips off the table, see where the dust sorts itself out after the earnings. we'll see exactly where they are. if there's a pullback, that's a great opportunity. >> up 2%, ahead of tomorrow's number. coming up, my next guest managing more than $5 billion and warning to stay away from two specific areas. that plus where he is investing next. then tesla shares leading the s&p today. we're going to get to the bottom of that move. also next, first on interview with blackberry's ceo, john chen, we're back right after this. ♪ if you're looking for a car that drives you...
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i'm courtney reagan, here's the cnbc news update for this hour. death toll from the devastating earthquake in nepal continues to rise. now above the 4,000 mark. people were surveying the damage in the central part of kathmandu today. survivors set up tents near the downtown, afraid of sleeping indoors because of powerful aftershocks. back home, loretta lynch has been sworn in as the nation's 83rd attorney general with vice president joe biden presiding. lynch replaces eric holder who
had served for six years. >> i am honored beyond words to step into this larger role today as your attorney general. as we continue the core work of our mission, the protection of the american people. >> the penalty phase of the boston bombing trail continued this morning. dzhokhar tsarnaev's lawyers in an attempt to save their client from the death penalty, pinned much of the blame on older brother tamerlan for the bombings. the u.s. has returned a collection of more than 100 ancient egyptian artifacts that were smuggled in. the collection included statues and coffins from the third dynasty. that's a cnbc news update for this hour, for now, back to you. >> all right courtney, thank you so much. back out to the global conference wob brian sullivan catching up with another ceo, first on cnbc, blackberry ceo john chen, hey brian. >> hey scott, yeah, you talk
about all the time on fast money halftime, welcome everybody to the milk conference, john, let's get into it. let's say i'm a customer and i love your new product, but i've got an android or apple phone, i'm probably locked into their halo. right, my music, apps, books, whatever it is. is on that device, no matter how much i want to change, i feel trapped. how do you combat that? >> well, there are applications that allow you to move a solid device application to move on one device to the other. you could transport your stuff from the itune and the music and the photos and all that. >> question get into average selling prices, earnings, all this stuff, i don't think that's relevant today. i think your job is to convince people why they need to go back to blackberry. probably all of our viewers had one of your products at one time. >> exactly. >> most of them probably switched off. how do you get them back? that's your job. >> we're going to focus a lot on security, plooif si, we talked
earlier about productivity, your battery lasts forever and the keyboard and all that stuff. and you know the input and all that. so, it's really about creating the next phone so to speak. it'll evolve, and there are opportunities to regain them back. >> how do you sell that to us? to our viewers and listeners, say come back to blackberry, give us a shot? >> again, application has been one of our achilles heels -- >> lack of apps. >> yeah. we're doing two things about it. i'm not at liberty to tell you what i'm doing beyond just the amazon apps, but we're working hard at it. >> something brewing or something big brewing? >> something brewing. >> yeah. >> i'm working on something. and the other part, we're focussed on the enterprise apps. we're talking about health care apps and apps in the iot world. i think there's a new generation of apps coming. that's an important thing.
if you don't want to just kind of play in the old game. you want to kind of get ahead. we're working that. >> i do not know, shame on me, that you are the board of disney, i just learned that, we have michael coming up in 20 minutes. on board of disney, i did not know that. how sbig star wars going to be? >> i'll let disney comment on disney stuff. obviously everybody loves it. if you see all the noise and talking about it, i can't wait to see -- >> are you going to slip a blackberry passport into the movie somehow? >> i don't think so. i don't think so. i would love to. >> how are you texting, oh my new blackberry. >> the new generation of blackberry. >> chubaka slamming, john chen, thank you very much. >> pleasure. >> thank you very much. scott, no blackberry in the new star wars. >> at least it was something, thanks so much. brian sullivan, see you in a bit back out there. steve, you've traded the stock. i don't know the last time you've been in it.
>> its been a while, regrettably, it's done well. >> chen says something's brewing, is that enough to get you excited? >> he moderated what brian's comments had to say. something big, and he said something brewing. i still think it's a company that's evolving, i think there's a place for it -- >> that's a ceo not wanting to say more than he has to. >> i long for the phone. i still think it's a much better phone for business than the iphone. >> blackberry's great, it's like radio shack in your pocket. it's a $10 stock since last june. i don't really -- look, there could be some kind of strategic partnership that pops into into two points, i would wouldn't say to the short, i don't know why anyone would allocate to this if it really breaks out on news that's transformative to the company, you will have a chance to buy it. there's absolutely no reason to anticipate that. so i'm staying away from it. i'm not attracted to it at all. >> what at this point could even be transformative for blackberry? >> okay. >> i'll tell you. >> that's it.
right. >> otherwise, it's an it rare process, there's no one event. >> somebody says we love your security so much, and we understand your security's value proposition so much that we want to make it the center piece of our platform. so like, china, or apple, or -- but, how do i know if that's really going to happen? that's the thing that changes it. >> corporate americas, you know security. >> if somebody else adopted and paid them, that could be game changer. >> okay. >> how do we know? coming up, tesla shares up big today. what's behind the move? making sense in the trader blitz. look how the major averages are fairing right now. hey mom, you want to live by the lake, right?
you're looking for a place for your life to happen. zillow coming up at the top of the hour on power lunch is the u.s. stock market overvalued? is grr money better off overseas like europe or japan? the trillion dollar man weighs in. also apple reporting earnings after the bell. we look at the stocks that beat estimates more than 90% of the time and how they trade after the numbers. and we're live at the global con ferns, more specifically, brian sullivan is live. we have a big lineup as the ceo of fox, disney's former ceo and the barclay's ceo bob diamond,
just some of the big names on deck. back to you in the meantime on fast money halftime report, do join us for power lunch at the top of the hour. >> thank you. we'll see you in a bit. one of the hottest trades this year, trades in china. ur next guest says buyer becare. chief investment officer, oversees more than $5 billion in assets over there. welcome to the show, nice to welcome you, i don't know on the network as a whole, but certainly on this program. china's up 40%. stay away whereby why? >> basically, everything is laced as bad as its been in 2012. in some cases, 2009. number two, occurring on the level, number three, we're seeing significant hot money flowing out of that economy. >> yet, you've got a central bank like many around the world that is more determined than ever to keep growth going. >> that's right.
>> why go against the trend? >> look, you've got a lot of stimulus pumped into the economy right now. in terms of stock market, as far as we can see, it's nothing more than liquidity, the profit market and moving into another bubble. if we look at investing on the top of the growth numbers, they're not looking strong at all. it's like channelling him over here. >> i don't necessarily disagree with your view on the economy, and i think that it's far overstepped where it should be relive to fundamentals, a lot has been driven by retail accounts, steve schwarzman put it eloquently, however, how do you fight the central bank when we've seen in playbook play in so many places. >> my point. >> they'll come in, doesn't matter the growth, you can pull money out of the u.s. in 2009, if you pulled money out of 2011, you missed 2013, now '14. >> don't fight the pboc. >> don't fight the banks. the issues is is does not print
u.s. dollars. china is heavily reliant on liquidity as many emerging markets are to fund their company. we have a huge number that have u.s. dollar denominated debt. and back to your point, don't fight the fed, the fed is going one way. >> don't you feel like you might be a little bit early in this game though because of the central banks and because of the involvement right now that maybe your, maybe as much as a year too early in terms of it? >> it could be a year earlfully terms of short in china. we are in other the commodities as well. >> off negative view on anything tied to commodities as well. >> that's true. growth in china is slowing. we are seeing the government actually planning on moving away from investment growth. it'll be negatively impacted. >> if we turn it then, negative there, what are you positive on? >> equities. we like japan, europe, selective
parts of the u.s. as well. there are economies when in japan, europe's moving from stability to recovery, the u.s. moving from recovery to expansion. >> where in the u.s., if you say selective places, where are they? >> technology's check been specifically technology hardware and semiconductors as well as industrials and moving into the consumer space as well. >> so in the trading book value, china is 1.7, so you short india? >> no, we're not short india. india's got the benefit of number one structure occurrence referring, number two, probably the best globally. and number three, fiscal reform, you have the most popular elected prime minister in over a generation. >> are you long? >> in terms of emerges markets, it is the preferred exposure. >> euro dollar? >> we are. right now we still have a preference to the u.s. dollar. we're short on the australian dollar and canadian dollar. >> it's great to have you on.
>> thank you very much. >> thank you so much. all right. coming up, the big earnings to watch, tech giant apple as you know, after the close, just a few hours from now. also on deck this week, big names, twitter, time warner, exxon, there's the calendar, marriott, chevron, ford, samsung, bp, i said there were a lot. we're back after this. [ male announcer ] legalzoom has helped start over 1 million businesses. if you have a business idea, we have a personalized legal solution that's right for you.
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there's your look at the markets. nasdaq giving some back, 5,070. dow and s&p also negative. how about this lineup we have next week from the conference in new york where several hedge fund heavyweights are presenting their best ideas. even better, all the proceeds go to a really great cause, pediatric cancer research. here's a look at what sohn is
all about. ♪ >> i think the conference's success is the quality of the experience for the people who attend the conference, combined with the merit of the charity that the conference supports. >> there's no question that the atmosphere of the conference has changed from a small professional, professional conference to what now is a media event. and it's humbling for all of us who participate there. >> the sohn conference started after my brother passed away. he was diagnosed with cancer at the age of 24. but he liked having his outpatient done among children. children energized him. his friends approached my family to do something in memory of ira. less than 4% of all money raised
for pediatric research goes to oncology. i think he would be proud that we donate all the proceeds of the conference and the heart of foundation is really around pediatric oncology programs. >> the sohn conference has produced a blueprint for many of us as to how to look at accou accounti accounting-driven shorting. >> we are donating on the short sale of allied capital to the tomorrow's children's fund. >> we are certainly happy to be a part of that. we are happy to honor the memory of ira sohn and we will be there speaking to those three gentlemen at the very minimum, lee cooperman, bill ackman, barry rosenstein, all coming up on monday at noon. do not miss it. coming up, just three hours
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welcome back. we noted for you the weakness we're starting to see in the market. and there are two real areas to keep an eye on today or at least two etfs i'm sure you're going to be interested to hear about. ibb and the xbi, talking biotech. it's tracking for the worst day in a month. josh, you were just talking about the xbi as well. why do you think that's more interesting to look at or at least as interesting to look at as the ibb? >> so the ibb, if you look at the top ten holdings, they're like 60% of the etf. so it's very heavily in celgene, gilead, what we're calling blew
chip. this is where the more speculative money is. it's taking much more of a beating and tends to be a lot more volatile on the downside. you look at the probable cause of today's selloff, it's a company called celledon. it missed a phase two trial or a milestone of some sort. that's the wake-up call for this -- >> that's a $320 million plus market cap -- >> right. >> that's the point you're making is that it's small. i'm just pointing out -- >> you get away from biogen -- this is the true face of the sector. it's tremendous gains when you hit it and it's huge vegas-like losses when you miss. >> because these are true
biotechs. they're not the biotechs that trade like pharma. it's all about what you have in the pipeline. if you've got it, it will fly to the upside. if not, you'll see days like this. >> celladon is down 66% from the ipo priced to its lowest point ever. just putting a -- >> it's a tough day. now tomorrow they'll start coming out with takeover rumors and -- >> 50% of all russell 2000 biotech stocks were down in 2014. so the market is somewhat -- >> dom chu, you're at the wall with a look at what we should have our eyes on today. >> it is the worst performing s&p 500 industry group today down by 2%, 3%. something to watch for sure. when we talk about the consumer, that's a lot bigger of a deal for many investors because consumer spending makes up two-thirds of our u.s. gdp. this earnings calendar for this
week is stacked with consumer spending pictures where discretionary or on the staple side of things. you have coach and kraft, both -- one's a staple, kraft, the other, discretionary. you have colgate and clorox to round out the weekend. >> winding down to the end of the program. three hours to go until the end of the day. what's your last thought here? >>. >> pfizer and merck. let's see how they do. i like health care. >> i love those names. >> we talked about tesla earlier. >> we talk about it being a technology company or an automobile company. it's a technology move today. it's back to the cars, talking about the improves to the "s" and the launch of the "x." a lot of the reasons why you're
seeing the stock move to the upside. >> josh? >> i want to bring up shake shack, it has now made a parabolic move. don't feel bad taking some off the table here. >> thanks for joining us. "power lunch" starts now. good afternoon, everybody. along with mandy drury, i'm tyler mathisen. this is an all-access "power lunch." >> michael eisner, here on "power lunch" today. >> and apple set to report numbers in about three hours likely moving the stock. check out the chart. apple up 62. yes, 62% in a year. >> and fresh off the ports problems on the west coast, we're about to get hit by a massive trucking strike. in the meantime, we begin with apple with the tech giant