tv Squawk Alley CNBC June 19, 2015 11:00am-12:01pm EDT
happy friday to you, welcome to "squawk alley," joining us this morning, shelley palmer with landmark vethd turs is here, along with jon fortt and kayla tausche. on a day where we're looking at the markets, the s&p is going up four straight days. in the red now. the nasdaq hit the record high yesterday, passing the highs of march of 2000. top winners as we talked about yesterday, monster beverage. keurig green mountain. apple has had a good run. 3,000% or so. not the 27 cents to $137. but obviously the markets are on the move. shelley, your thoughts on some of this stuff? not to the degree you follow valuations. >> look, we do. there's an over-arching thesis in the 21st century. the velocity of information is
increasing and will always increase. if you believe that and look at the stocks at nasdaq, you say if i'm long, i'm in a good place. >> there are a lot of people who come on our show and say it's hard to value technology because it's not really a sector any more, it's a theme, something that's affecting all industries and all companies. how do you put a cap on something like that? >> i think that is 100% correct, as a matter of fact. it is a 3m. i can't imagine a company anywhere on the earth that isn't affected by the transformation that's occurring right now. if you're not in the midst of a digital transformation, you ought to be. the difference is there are certain companies that literally do provide the infrastructure and the tools that allow for digital transformation and those companies obviously can go only one direction -- up or, they can fail. wait, that's two directions, oh no. >> mark andreessen likes to say software is eating the world. jon you've been on this for a long time. the transition from hardware to software and the messiness in
that. oracle is a good example of that this week. >> yeah, that's true. and part of what oracle is doing is just transition to the cloud. despite the fact they had currency headwinds and when you do a cloud transition you don't get as much up-front revenue. they had a strong story to tell if the trends continue in the direction they have been. the number of commerce they say they're getting on the cloud that weren't already legacy software customers, i think in today's technology, you got to separate from the technology that everybody is already using and understands, a lot of that falls under smartphones, even some of the cloud stuff and some of the bets where technology is trying to get closer to life. your ubers, your airbnbs, your munchries. where will those end up? some will succeed and some will fail. >> a lot of them will go public. >> fitbit is up 15% today. >> they will. what jon just said is true there
are two ways to think about that uber and companies like it are meta companies, they take advantage of inefficiencies in the world and try to solve for them with technology. there's an amazing growth in that area. on the other side, you have to sit back and say -- the tech bubble itself isn't really a bubble. it's a themed bubble. when jon just spoke about the cloud, the cloud future is based on security, right? can you build a data center that is more secure than oracle or amazon or ibm or -- fill in the blank? i would think a lot of people are going to say i would like a gigantic tech company, who is awesome at security. preventing me from the u.s. government which just lost four million employees' information. the cloud business is going to become a different kind of business than it was just a year ago. jon is right, the meta services, you have to look at them.
because, if there is a bubble anywhere, it's people getting exuberant about oh, they're solving inefficiency that may or may not exist. they say the number one provider of hotel rooms doesn't own a hotel. the number one car provider doesn't own a car. the number one camera service provider doesn't own a camera. there's an opportunity for people to get a little too excited that these companies are making money. >> that's a good caveat. let's move on to twitter. chris sacca, outspoken investor wrote a blog post on twitter's ongoing ceo search. he said quote the ceo transition announcements were sloppy and confusing. he said specific statements about twitter's future crushed investor hopes and turned what could have been a very positive event for the company into a debilitating mess. joining us to talk about it, bob peck of suntrust joins us on the phone. bob, good morning to you. >> thanks again for having plea. >> you were, i would say the first to argue costolo would be gone by year end. you were clearly right. what do you think happens now?
well first of all, back in december said we thought this could happen. if he had execution issues and obviously it has now. so the question is who takes over. and you put out a note today where we identify top five leading candidates you know, two internal with adam bain and jack dorsey and mike mccue on the board and now ceo of flipboard and ross levinson, former ceo of yahoo and neil mohaned a google. and we've heard a range of 30 other names a that are very interesting. the top five you've seen, the most speculated about by investors right now. >> there's a thread in the piece in the "new york times" this morning talking about adam bain and anthony nodo and saying maybe the internal candidates won't get as much consideration because they don't have experience running a public company. how important do you see that fact in the search? >> we do think that's pretty important. that's the one negative you hear the most about adam bain. that's one of the reasons if our note this morning, we thought
somebody like a ross levinson who has run a large media company in yahoo coming in for the next two or three years, almost sort of grooming adam bain to take over is an interesting scenario. think almost like in the nfl where you have the veteran quarterback and comes in and tutors the younger rookie quarterback. we that's an interesting scenario. >> i see shelly shaking his head. >> top management at twitter is very important. top management everywhere is very important. twitter has a fundamental flaw, a problem that's so significant and no one wants to admit to it they have to deal with it first. the product is terrible and the way i know the product is terrible is very simplistic. if you believe television advertising works, and i do, twitter gets more free television advertising than any other product in the entire world. and since it has not been able to build its user base with all the free advertising including from myself and everyone on the show, there's no show in the world that doesn't have a twitter handle.
no person of note that doesn't have one. the product clear willcy not resonating with consumers, it's resonating with television people, resonating with hollywood for q level. the product itself for a normal person is suboptimal. if you look at the migration off the product. fix the product, the problem is solved. fix the management -- the product first. >> the they've had a lot of churn. bob i'm wondering, what's the risk if the ceo search takes a long time? say it's beyond the end of the year, into next year and they sit on jack as the interim ceo for an extended period. do they lose people nnlly who are key to them? do they turn off people who they are bringing in and talking to? do they need to do this quickly or no? >> we think they do. we raised that in our first bullet of our note this morning. they need to make the correct decision and they need to make it quickly. that's why i think you see the short list, so interesting there. the key will be the cadence of product innovation, think shelly is right. what's the new products that get
the masses back to twitter that increases engagement and gross the user base, that will be key. the great point that chris sacca made yesterday, is that a lot of these products are already under way. and that inside the company they can see them and have a gauge what the impact can be. but the public hasn't seen them yet. so hopefully that's correct. >> bob, good to talk to you, thanks so much for your time. bob peck from suntrust joining us on twitter. up 4% as the changes are announced. the apple watch now available in stores. and 9-5 mac south with new details on the next generation. saying the next version will have a video camera, a new wireless system for greater independence from the iphone. battery life that's similar to the current model. and then more apple news. according to buzzfeed taylor swift refusing to put her most recent album, 1989, on apple music. she pulled her albums from spotify following a dispute last year. i'm getting used to the term a
ralphie, which is a selfie that you take from your wrist. >> this could be a terrible idea. i feel like the watch is not good enough at core things they need 0 get right. we'll see how watch os 2 does for those things. whether it's slow directions from the maps if you're walking, they're terrible. there's some basic things that the watch has wrong. add a camera to it to do video calling. on the battery, how long a video call will you be able to do? apple didn't add face time to the iphone until iphone 4. if they add it to the watch, too, i'm concerned. >> shelly, your thoughts? >> are you noticing what's not on this wrist? here's why -- >> you have a nice one on the other hand. >> god bless you, that's not the point. i wasn't going to go there. what i was going to say is that what it does to my iphone 6 plus battery is unacceptable for the benefit it gives me. it's nice to get a notification on your wrist -- now we're done
with all the things that are nice about the apple watch. the idea they're making a second apple watch? we knew they would, if you were silly enough to buy the first one, which i was, you're going to be silly enough to buy the second one, which i won't. >> are you serious, is this full me once, kind of thing? >> jon's right. there's no compelling reason to own this device, not yet. i think they have some work to do. now as for taylor swift, taylor is the lone wolf because she's so famous she and she's make so much money she can probably hold out. but she's on the wrong side of history for the right reason. she wants do make money, artists should make money, they are not making money the way they should, they never have in the entire business. at the end of the day, though, you got to fish where the fish are. at a certain point and i had this experience this weekend. my little granddaughters wanted to listen to taylor. i had spotify going, pressed the button and, as i'm looking for it i realize wait a minute, she's not here. and when i tell you a 4-year-old has no tolerance for you don't
have it? in the 21st century. they don't know why tv shows aren't always on and they don't know why music isn't always available, sorry, granddaughters, taylor swift is not on spotify. trouble in the palmer house. >> seriously. >> shelly, good weekend. shelly palmer joining us today. let's take a check on the markets at this hour. we're losing a little bit of steam after hitting records in yesterday's session. we were trying to go for a fourth day of being up for the s&p as carl mentioned, that hasn't happened since january. right now the dow has lost about .25%. as has the s&p. the nasdaq down by six points or .1%. but it is another good day for fitbit, shares soaring in the company's nyse debut, having another good day today. perhaps a lot of people who couldn't get their hands on shares yesterday are trying to make a second go at it. that stock is up about 12%. meantime, shares of hershey, slipping after the chocolate maker cut its 2015 forecast, the company said its sales growth in
china did not meet expectations. of course that stock down about %. >> before we go to break -- 3%. >> it is with great sadness we report the passing of ralph j. roberts, the founder of comcast. who built our parent company into the media giant that it is today. he is remembered foremost for the family culture that he fostered even within such a large corporation. he died at the age of 95. of natural causes. he is survived by his wife, suzanne and four children. katherine, lisa, ralph junior and brian, the current chairman and ceo of comcast. and eight grandchildren. ♪ building aircraft,
disney and pixar's newest film "inside out" hits theaters today and is getting rave reviews, "the new york daily news" says whatever brainstorm led the pix aor team to "inside out" it led to the most extraordinary film of the year. here with more is the man who wrote that review -- joe neumeyer, film critic for the noew york "daily news." >> it sounds like a complicated, ivy league-type concept.
unlike man-eating dinosaurs. how is this not going to become the therapy film, the film parents want the kids to see when they want to see the dinosaurs? >> at their greatest, pixar movies aren't just for kids, and that's what this is, an exhilarating, exciting emotional movie. it's about joy and sadness, getting through the pain of growing up. it may face the unstoppable dinos, but the real evolution is pixar getting its head screwed on right again. it's an extraordinary film. it's really great. >> the most serious movie that pixar has ever done? >> i would sigh. "up" has its moments, the first few scenes of "up" the first 20 minutes. and the end of "toy story 3." there are moments on "inside out" for anyone to keep a dry eye. whether they're ten or 11 or 70 years old. >> you think pixar lost its mojo? >> yes.
>> which films characterize that? >> "brave" and "monsters university" and "cars 2" weren't up to expectations and not up to the standard we have been expecting from pixar. even though "monsters university" made a lot for its opening weekend. the budgets were up, the box office were down and they were not what we were expecting after "up" and "w"wall-e."" enough star power in the voices? >> these movies aren't about the star power, they're about the emotional message and the extraordinary visuals you're getting and the ride you're going on. poehler is amazing and lewis black almost steals the movie, he he plays anger. as great as the vocal performances are, everything clicks with this movie. they're working on all cylinders. >> is this franchise-able? >> no, it's a stand-alone movie that needs to be on its own. and for my money, it's the best
film so far this year. >> i can hear lot of hollywood people saying thank goodness. the franchise premium is getting ridiculous. >> ha it bodes well for pixar, they've got the good dinosaur coming up at the end of the year. that had some trouble early on. they moved it from last summer to this coming thanksgiving. and they have the "finding nemo" sequel, coming up. >> and this is an extraordinary film, it covers so many bases. it's not so deep that an 8-year-old or 10-year-old won't enjoy it. but younger ones might not understand why people are crying. but they'll react from their heart, i think. >> is it okay if this film does not do as well as other pixar films, do you think, from an economic perspective? >> i think it's a good question. they open often in the mid 60,
66 million is usually the pixar spot. "monsters university" opened at about 80 million. it will make as much. it faces the bad luck of facing the dinos and the evolution here is pixar. think it will be an oscar nominee. just like "wall-e" was or "toy story 3" should have been and so it will be up at the top of everyone's list. >> when it's brainstem versus the rest of the brain, the brainstem wins. >> the heart versus the head or the dinos, as the case may be. let's get more on what "inside out" could mean for disney investors. joining us object the phone is fdr markets media and entertainment artist, barton crockett. there's the danger that this is the "birdman" of pixar films, it's all cerebral but doesn't necessarily make the money. i don't know if the merchandising possibility settle for a big brain with little characters inside it. how do you feel about this movie
for disney's bottom line? >> this movie is going to be just great for disney's bottom line. you're right you're not going to sell "inside out" toys, it's not going to be a "toy story 3" or a "cars" merchandisable movie. i think at the end of the day, these guys will make good money on this. i think the movie will contribute 100, 150 million to the bottom line. it's nice that these guys can put out movies that are not franchisable and still you know, get a good return on it. as kind of in between the megafranchise, which is coming up to these guys at "star wars." i think the big picture for disney is they're in a real massive super cycle in their studio i think unlike just about anything we've ever seen. think the studio profits are going to go up from 1.5 billion last year to you know, northwards of 2.5 billion to 3 billion. when you start stacking in "star wars" sequels, marvel, "toy story" coming back and the
possibility of "frozen 2." these guys are going to make tons of money in the studios and it might drive the theme parks. >> bigger the studio gets, the less a movie like this that doesn't have the franchise quality could possibly contribute to the bottom line? you say 150 million, but i mean there's still, there's still a chance that it comes in below that 200 million budget. you're setting the bar pretty high. >> well i think that the tracking is pretty good this weekend. i mean i think the numbers i'm reading will put it squarely in kind of the 60 million to 80 million kind of bracket and you do the multiples on that domestic box office, dplshl box office, they'll make this money. i think that you're right. it is a drop in the budget and the big mover here is going to be star wars, that's going to be marvel. but it's not, we'll take it. >> barton, you might have, you could have built an argument saying when oil started to rebound, this would hurt theme park business, stocks back to
113? what's that about? >> so you're talking about disney stock? >> relative as an oil play, summer gas price. >> oil not going to drive if you're going to spend 100, 200 bucks a day at a disney park in orlando. that's a big vacation you plan as a life-moving event for your kids and family. it's not 100% clear that oil is a huge mover for a theme park. think that disney had great momentum in their theme parks, i think they actually slowed a little bit in the last quarter partly because they were redoing some stuff in california that's done as of may and i think we're looking for a very good quarter coming up for the june quarter. >> we work for comcast, where we're all crowing about "furious 7" "fifty shades" "pitch perfect 2" "jurassic world."
would you say our slate is comparable or better than disney's? >> so far you're beating disney, we'll see what happens with "star wars." you set quite a standard with "jurassic" and i we'll see if "star wars" can take that on. it will be a close fight. >> come on, it's "star wars," it will be the biggest movie of all time. >> think it will be big. i think what you have on your side is that you really surprise people. i mean "jurassic" we thought would be big. but i don't think anyone saw it being as big as it turned out to be. >> chris pratt, he's the prom king. >> yup. >> barton, thanks. >> thank you. up next, shares of mindbody are open for trading, up at the nasdaq, they are actually down about 4%. but the ceo will join us in first on cnbc interview, coming up next on "squawk alley." but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform,
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the ipo market is surging, fitbit surging by r50% in its wall street debut yesterday. that stock sup 11% today. and fogo de chao is up 5%. and mindbody debuting under ticker symbol mb, trading at about 13.63. joining us on cnbc is rick stallmeyer, the founder of mind-body. your thoughts on the opening trade, opened at 16, now seems to have given some of that back? we're not getting distracted by the noise of the stock market. our focus is continuinging to grow the business around the world. we're the leading platform for the health and wellness industry services. and our sass software is in 42,000 businesses worldwide comprising over 250,000
practitioners serving over 24 million consumers. we're happy with where our business is going and it's a great time for us to go public. >> 42,000 customers, 32 million users. what's the quest to grow those and how sticky are those customers? what's the risk they move to another platform if another one comes along? >> sure. our business system is deeply embedded. some people have compared us to the open table of wellness, if we were open table we'd be managing the bar and the cash recommendingster, the staff scheduling, we'd be managing their payments, so we are analagous to open table, but we're much more deeply embedded in the businesses we serve. and so therefore, our clients are very sticky on our product and that's one of the key parts of the business. >> rick, how does your model work? your costs are growing so quickly. i'm not sure i understand how you're going to be profitable. if i understand correctly. your losses are in by some measures, growing faster than your revenues, you have subscribers on monthly terms, not longer.
i'm curious, how do you keep them from churning? at what point do the profits start to flow and the costs level out? >> i can't make any forward-looking statements like that. whatky tell you is this, when you look at our performance in the past periods, what you're seeing is the deep investments we have made to create a unique wellness services marketplace, no one has ever done this before. this is a transaction-enabled platform. you can think of us like an airbnb. like an uber where the consumer can engage directly. find the services around them and actualliful fill the transactions. you have to build the business management system first so we've made a lot of big investments that way, and we're growing around the world. we have teams in six countries, offices in three countries. so we're confident what we built here is going to be scaling nicely. i think that's a good answer. >> we won't argue with you on that one, rick. you mentioned a fewer companies,
airbnb, those were started just a few years ago. many people were surprised to find out that mindbody was founded in 1998. how many times have you had to evolve and at what point did you find the model that stuck? >> the founding of the body was in 2001 and it was originally an on-premise software that linked multiple locations and could synchronize to a web-scheduling system. but where the company took off was when we pioneered the saf solution. and that's where the growth story began with mindbody. >> wick ric, we wish you the best of luck. >> thank you. >> rick stallmeyer, the ceo and c co-founder of mindbody. risk over the course of the weekend. the news that the 27 members or leaders of the european union are going to meet in emergency session, 1:00 p.m. monday our time, great what might precede it over the weekend.
some people are going to cover their shorts, for fear they could get burned. in general the records we had on wall street last night lifted europe from the open. we've come down from there. the news during the session of course is that the european central bank has increased the amount of liquidity, emergency lending to the greek banks, only under 2 billion euros, michelle is reporting in athens they're burning through 1.2 billion euros on the session today. they're on a tight leash, will they last until monday, we'll see, what they have to do moving forward. the good news from russia is that the greek finance minister in an email statement suggested he was working for success at monday's summit and he was pleased it was happening and those peddling crisis and terrorist scenarios will be proven wrong. angela merkel's spokesman has also said it isn't too late for the greeks to do a deal. the onus is on the greeks to present the reforms required. in the meantime in luxembourg it's day two of the eurozone finance ministers meeting or the
european union finance ministers meeting today. they're going to meet again before the summit on monday. junker, who is the commission president is calling the eurozone leaders as leaders and hollande merkel are going to speak tonight according to news sources, we'll have a further update live from the streets of athens in 30 minutes. not least on the withdrawal of deposits there today. the central question for monday remains -- with all the adults in the room, are they going to do a deal? or is it political cover now, for the leaders of the european union to say okay, ecb, finance ministers, you can let greece go over the coming days. back to you. >> see what happens over the weekend and on monday, simon, thanks a lot. when we come back, stocks in the red after the nasdaq hit the new all-time high yesterday. amid all the bubble talk, our next guest is looking at three different tech companies, he thinks could be pretty good buys, we'll get details.
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. good morning, everyone, i'm sue herera with your cnbc news update. two men who escaped from a new york state prison are now on the u.s. marshal's list of the 15 most wanted fugitives, david sweat and richard matt were added to the list, which the agency's director said is reserved for the quote worst of the worst. u.n. negotiators struggling to
keep peace talks on yemen on track as rival delegations prepare to head home from geneva. the houthi rebel delegation says there have been disagreements, but the u.n. negotiator insisting the talks have not broken down. a volcano in western indonesia continues to spew clouds of searing gas high into the sky. mount sinabung let out a in flow of hot ash, the volcano is located on sumatra. and some sad news to report to you, ralph roberts, the founder of comcast, the parent of cnbc and nbc universal has died. he built comcast from a small cable tv system into one of the nation's largest entertainment companies. he died of natural causes at the age of 95. for more on his incredible life. go to cnbc.com. and that is the cnbc news update this hour, back to "squawk alley."
even amid talk of a bubble, the nasdaq only off slightly today after hitting the new all-time intraday high yesterday. our next guest says he's not overweighting the tech sector yet. paul meeks is an analyst with saturna capital. >> happy friday to you, i love the segment, happy to be on. >> walk us through why you wouldn't overweight tech at large. >> i don't think valuations in the sector, i've been doing this a long, long time are as egregious as they were i wouldn't call this a bubble scenario. i do think valuations particularly in some of the hottest themes, internet of things, big data analytics, cybersecurity, cloud are, a bit elevated. so when i take a look at the allocation that i would recommend, if you look at the s&p 500, it's about 20% tech, you add another 100 basis points for telecommunications, i would be there or less, not overweighted here.
>> you point out big data, one of your requirements in terms of your criteria. splunk is an example of a stock that you like. when do these names give awe chance to get in? >> an excellent question. you try to identify the themes, the themes change from time to time. i do like big data analytics, i was in chicago for the management of tableau software. a goot good example of this phenomenon, you put your leaders or sustainable leaders on your watch list and sooner or later even the top-ranked names will have a slip. last quarter, splunk, which i like very much, dropped 9% within three days after its first quarter report and it gave investors at least a glimmer of an opportunity to buy at that point. >> yeah, that is, you also like tableau. speaking of that space, right? >> i like tableau a lot. the problem is, its valuation keeps on ticking up and up. i'm waiting for it to come back in. >> does it even make sense to
talk about tech as a sector any more? i mean is it kind of like lumping in at&t and verizon? with tech? several years ago? do we need to lk more narrowly as you hinted at, at some specific areas that are mature versus ones that might be overheated? >> that is an excellent question. i still think we can talk about tech. the problem is if you take a look at the giks, the industries that are used to form the s&p 500, they have things within the tech sector such as hardware, software, semiconductors, don't you think that the definitions today for subindustries within the sector should be things like big data. >> breaking news, we have to break this conversation, but we'll have you back soon. san francisco fed president john williams set to speak on the economy, steve liesman back at headquarters with more. hey, steve. >> john williams is the first fed official to speak since janet yellen's press conference.
he said he still believes 2015 will be the year for rate lift-off, but at this moment he remains in a wait-and-see mode on rates. and reason he is still not convinced that inflation has bottomed out. he does expect in his forecast to see signs that inflation is coming back towards the fed's 2% target. expects that to happen next year. whey thinks is going to happen is what's already happening, the dollar has weakened from strong levels earlier this year. oil has bounced back. those both should end downward pressure on inflation and boost it in the months ahead. he does point out that waiting too long to hike rates poses its own risk and sees solid improvement on the or side of the mandate in the labor market. pointing out that most new jobs are full-time and higher-paying jobs and wage growth is beginning to take off. he's fully satisfied on one part of the mandate. is not at the moment. which is why he doesn't vote for raising rates right now.
but expects that to happen in the months ahead. john? >> paul meeks, who i believe is still with us. let's talk a little bit more about the technology sector, when you look at mindbody, you look at fit bit over the last couple of days, fitbit doing very well today. is this the sort of area, the internet of things that people might be getting a little over-exuberant about? >> i think so, whatever happens with hot topics, everybody says that they're a player. now some people are players and some people are not. i do think the internet of things, particularly the proliferation of sensors in everyday life will be a big deal. you have to vet them and make sure who are the real players and who are the pretenders. >> i want to ask you about the fed's role in the nasdaq. because part of the rally, if not all of the rally yesterday was due to this overexuberance from what janet yellen said on wednesday. and there will come a time at some point in the near future, when there will fwhot be a
fed-induced raly. when the hope of an interest rate hike or the fear of an interest rate hike will come true and we won't have that underneath the stock market any more. what happens then? >> another great point that you've made. the companies that will continue to do well in this space and outperform the sector and the broader market are ones that have revenue and earnings growth. unfortunately some companies have seen their valuations lifted simply by pe expansion, which is all request quantitative easing, not fundamentals. >> you think some of the names that everybody knows, the apples, facebooks, the microsofts, are close to your buy limit prices. apple, i can understand people argue it hasn't done a lot. trying to break out of the high 120s, but facebook is fighting for 83 today. >> the way i look at it, apple i'll interested at about 125. facebook at the 200-day moving
average, would have to drop about 77, 78 and microsoft i like at about the 44, 45 handle. >> paul thanks so much. thanks for joining us. >> thank you. up next, fighting super bugs, the new methods some companies are using to battle disease. can it make a dentist appointment when my teeth are ready? ♪ can it track my crew's performance, and protect their heads? ♪ can it tell the flight attendant to please not wake me this time? ♪ at cognizant, we see opportunities for every company. to meet the new digital demands of their customers. can it process my insurance claim? like, right now? can it download a track while i'm sampling it? can my keys find me?
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coming up, stocks going for their first four-day winning streak since january. but what happens if greece gets messy? our panel of experts on how it's all likely to unfold. a new motif of the month, how to play one of the hottest sectors in the market and the hottest ipo week of the year. the names, the trades, the warning signs, you need to know about. jon, see new about 10. and are you not only viewer, a wonderful unique person, you're also the home of trillions, drug companies are therefore plugging money into a new area of research -- called the microbio. and meg tyrell is looking at the first public company solely focused on that area. >> those trillions that you refer to are trillions of microbes and we've been talking about the microbe b i/o m.
those trillions of organisms that live on our body. tremendous implications for our health. the treatment of a super bug, anti-bacterial infection or bacterial infection that affects assen many as 500,000 people in the united states. and kills as many as 30,000, it's often acquired in the hospital setting. one of the ways they have started to treat it is through the microb i/o m. taking stool from a healthy person and transplanting that to treat someone with c.difficile. >> it works very quickly, actually for the most part, patients start to feel most patients and everybody is of
course different. most patients start to feel better within the next 24 hours after the procedure. >> there's a company working on this, it's called seres therapeutics, its ticker is mcrb. for microb i/o me. they've shown tremendous success using this in pill form. curing 29 of 30 patience in an early stage study. breakthrough therapy designation from the fda. a lot of investment going into this area, yielding new insights into how this works. we talked with a patient who underwent fmt. take a listen to her story. >> the truth of the matter is when you are sick, really, you would take any means of getting better. >> so natalie told us this cure her, she's feeling better, addressing the yuck factor, if you're sick you'll take just about anything to get better. >> i was talking to meg earlier today. about this story. i learned something new every time i talk to her.
it turns out if you take all the microbes that live in and on you, it would weigh about as much as one or two brick, two to six pounds. >> thanks, jon. up next, a crazy stat, cheaper to book a hotel in new york or london than it is in silicon valley? we'll tell you why and who actually stands to make the most money from that, "squawk alley" is back in a minute. leave early go roam sleep in sleep out star gaze dream big wander more care less beat sunrise chase sunset do it all. on us. get your first month's payment plus five years wear and tear coverage. make the most of summer... with volvo.
. a hotel in silicon valley will cost you more than renting a room in london or new york city, and josh lipton is live in san francisco to explain why that is. josh? >> well kayla, i'm here in the lobby of the historic fairmont hotel in san francisco. where a room can cost you nearly $500 a night. that might seem pricey. but even basic hotel rooms in silicon valley have become some of the most expensive in the world. a hotel room is now going to run you an average of about $300 a night. that's $100 more expensive than it was a year ago. and that means silicon valley is more expensive than new york and london. so what is driving up prices? well if you talk to people in the industry, they'll say there's a relatively limited supply of hotel rooms here, and strong demand, thanks to the booming tech economy. another reason they'll say is that as the tech companies get bigger and bigger, it means they're attracting more and more potential partners, flying in
every day here to silicon valley. for those meetings and deals. >> there's nothing that can replace a face-to-face meeting. nothing that can replace a meeting at the google plex or facebook or twitter headquarters. that's why people are coming to silicon valley, coming to san francisco. >> now shank says more expensive rooms are going to be close to those tech campuses. so in menlo park, home to facebook and mountain view headquarters, to google, shank says if you're looking for relative deal, you might want to look to those rooms near the oakland airport, maybe not as luxurious, but it is a quick hop from oakland to palo alto. if you beat that morning traffic. guys, back to you. >> way to sell it, josh. but i've been to the oakland airport, no thank you. >> we'll see how many people take you up on that, josh. we shouldn't laugh. originally released on cassette tape 22 years ago, one well-known song has found its way to the top of the billboard
charts, we'll find out which one in just a minute. you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business. and life gets lived. ♪ hp instant ink can save you up to 50% on ink delivered to your door,
so print all you want and never run out. plans start at $2.99 a month. right now, buy an eligible printer and get three months of free ink with hp instant ink. available at participating retailers. the most affordable way to print. hp instant ink. ♪ ♪ at chase, we celebrate small businesses every day through programs like mission main street grants. last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs.
creating more programs for these little bookworms. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients, and small businesses like yours. so you can take the next big step. 22 years after its release, the theme to "jurassic park" has hit the top spot on ton the
billboard classic song survey. it brought in over half a billion dollars worldwide biggest opening weekend in history for "jurassic world." how can it be that every score by williams so iconic, even "home alone" san iconic score. >> even playing it in the commercial break, has given me shivers. >> you've seen the old "jurassic park"? >> i have. we're going to take it from there uber has arranged a $2 billion credit facility via nine banks, we learned last month they were seeking about $1 billion. this would appear to be a little bit larger. there will be some people who say is this a precursor to the ipo? maybe it is, maybe it isn't. alibaba did years before it ever went public. facebook and twitter did one while they were on file to go public. there's no precedent for this if they are in fact, jon, bidding for the nokia acquisition, this
would be a war chest. >> they've been raising money one way or another, hand over fist. >> meantime, donald trump already planning the trump administration cap net. could we see treasury secretary carl icahn, not so fast. icahn said i was surprised he would make me the secretary of treasury. i'm flattered, but do not get up early enough in the morning to accept this opportunity. he went on to say i believe we're sailing in dangerous, uncharted waters, never in the history of the fed have interest rates been art officially held down for so long -- artificially held down for so long. >> i was surprised he was up early enough to tweet this. >> maybe he wrote it last night and had someone send it. >> maybe he would be more of a secretary of state. i mean the diplomacy of icahn,
can you imagine what that would do for america's relationships? >> and the amount which trump nofs the nomination. let's gets over to wopner and the half. ♪ ♪ welcome to the "halftime report." jimt lebenthal sheer along with stephanie link, josh brown, jon najarian and our guest today, tobias lebkovich. and investor hardeep walia is here with more. and ipo fest cal. our experts size up the stocks and debate whether you should buy