tv Closing Bell CNBC July 27, 2015 3:00pm-5:01pm EDT
en so they are doing something right. >> great list. thank you. take care. >> mandy, thank you for pulling double duty today. >> always a pleasure. >> is it? >> yes. categorically, yes. always a pleasure. >> have a great day. "closing bell" starts right now. >> welcome to "closing bell." i'm kelly evans at the new york stock exchange. >> i'm scott wapner in for bill griffeth. china's selling overnight has been pressuring u.s. stocks all day long. we'll discuss whether the china fallout is just the beginning for u.s. investors. >> fiat chrysler paying more than 100 million of its handling of recalls. transportation secretary anthony fox will join us live.
the ceo of boyd gaming will discuss where he sees growth. >> today we have henry tao, steve grasso. should we be as concerned over what's taking place in china? >> i don't think the u.s. market should be concerned at all. in china only 15% of household assets are in the chinese market. people are not spending according to what they make in the chinese equity market. i don't think there will be any substantial impact on the u.s. earnings at all.
>> do you buy that rick? >> not even a little. i don't disagree with his information. i do think there are many aspects to china unique to china. many have no problem when commodities were racing and copper was racing saying this represented global demand. maybe it was china's demand. i think that this reversal may not be exactly correlating. let's speak or let the market speak for themselves. the dollar index, bund and dax all hit the same levels in july.
when i see the dow, it's not everyone's favorite gauge of value, but the lowest levels since february this year. is there a major thread that binds them together. >> >> depends if you are talking about the stock market or chinese economy. if you can talk about them separately or they become intertwined. not like when china had the 30% run-up earlier in the year. our stock market ripped as a result of that. why should we fall out of bed if the chinese stock market has a crash? >> they ran up 30%, we ran up 10%. it's demand issue. there is lack of demand and that is what the market fears right now. just think about it this way. if china is a net exporter and
there noise demand there when they have 11% growth everyone is, oh my god, we are off to the races. it's 7%. everyone questions that. is it 3% or 4%? >> we talk about this the same thing. we talk about the market as if it's the economy. >> it's greece china, lack of demand we are seeing. >> i wonder if we were to bracket that whole period from the u.s. financial crisis to this year as being kind of a china-driven story for the economy here for emerging markets, for australia, whomever you want to throw into that box, for some of the oil companies and related commodities industries even in this country, what phase are we entering now? what they have in common is liquidity. you can argue even though there
is less energy it brought good things like fracking technologies. a lot of ships moved higher. where we are at all i can tell you is countries like china are adults when it comes to how we view their economy, but they are really very much like children in terms of the sophistication, different aspects of their economy they are trying to liberalize. they are trying to liberalize their markets for more of the world of trade, and a lot of that activity is crossing into some of their slow growth. you have central planners gone wild trying to fix all the widgets. i think you can look at an economy and stock market and find big correlation. the reason we have a problem with that because it started at home. there are many who still believe the level of the stock market moved way ahead due to central bank issues then some of the underlying fundamentals. i think caterpillar reflects all
of that. >> stay right there, guys. crude month oil to four month lows. jackie deangelis covering threes moves. afternoon. >> good afternoon. we saw down side pressure again today as a result of the conversation you are just having concerns over what is happening in china right now. it was perceived demand from china that was helping crude oil stay supported. now add that to the rest of the story and we have a breakdown. another 75 cents shedding off crude oil. $47.39 less than $4 off your year-to-date low which was made on march 17 $43.46. what is interesting in terms of momentum, you had a weaker dollar today. gold bounced on that yet crude continued to go lower. the things traders are going to watch for, they are going to watch the fed to see how the fed feels about china. what fed action may do to the dollar. they'll be looking at tuesday
and wednesday's supply numbers and inventory numbers from the department of energy and api. also we'll get rig counts again on friday. last friday we had a bump-up, 21 rigs were put back online. the big question in the energy market is what is it going to take pricing pressurewise to get u.s. producers to stop producing or take it down? >> thanks so much. shouldn't we be more concerned about this commodities melt we are seeing? the clear impact the signal it seems to be sending about what kind of demand you have over in china? >> it's be a old story. if you look at where copper prices were it peaked out in february 2011. silver prices peaked soon after. gold prices oil prices everything. it's a supply issue.
producers have been much more efficient producing commodities. i don't think it's a major issue. in the u.s. stock market has been supported by consumer discretionary, health care and tech stocks. china are transitioning to more of a tech commerce consumer-oriented commerce. it's not surprising the growth commodities demand is slowing down. >> can you give as sense where the opportunity might be? >> i like china mobile. china only started transitioning to 4g wireless nationwide system the end of 2013. china mobile are trading on forward pe ratio of about 13 while the cheapest wireless providers in the world are scheduled to sign up 240 million subscribers this year alone. this is my best idea right now.
>> i wonder. you see what the chinese government, communist party is trying to do in propping up the market fixing the market. the market is going to go down. we don't want the market to go down so we'll buy stocks. it's not working. i go back to a couple of weeks ago. the impact of china is more political than anything else that we are making perhaps too much about the economic pass through. >> for every action has to be a reaction. it has to enter into their calculus when managing their books. a week or two ago, we started to believe maybe growth is out there and isn't as weak or anemic as we thought. maybe the government will come to the aid of that. now you see the market saying we don't believe it because the chinese markets don't believe it. why should we? that's why you see risk coming off. >> talk to us about this market does it trade in china today?
is it going to depend what happens with the shanghai composite going forward? i'm thinking of teva's huge deal. what is happening in biotech and nasdaq. >> huge. >> if you look at the names henry alluded to before if you look at the names under pressure, it's materials and industrials. you look at those names. no one expected any surprises out of that. it's when big hedge funds start to take money off the table with apple. >> why do you think they are going to do that? >> we are still in a rangebound market. bouncing off that 200 day moving average. if we break that level, guys take their money off the table where they have profits. >> you think they will throw in the towel on a name like apple? some of them will look at apple's decline and buy more. >> you can look at both sides. the guys involved the top ten holders of it probably aren't going to do anything. the guys trading it want to take
their profit first, ask questions later. >> at least we are not talking about greece. good to see you all. appreciate it. 50 minutes to go into the close. it rye another negative session. the dow is down 140, s&p down 12. nasdaq down 48. pharmaceuticals on the move after teva buys allergan's genetic drug division. meg terrell with all the details. >> also ahead, fiat chrysler buying back half a million vehicles from customers to settle legal issues related to 2 dozen recalls. >> transportation secretary anthony foxx joins us live and will give us his take.
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welcome back. first five day losing streak for stocks in six months. the dow at its worse. down 160 points. not that far away from that at this hour. watching biotechs. i share's nasdaq etf falling for a fifth consecutive session losing about 6% of its value over the past week. >> and this as teva is buying
allergan's generic drug unit and abandoning its pursuit of mylan. meg terrell is here with the pharma drama. >> a lot of this m&a activity has been what's driving biotech valuations up. teva is buying allergan's generic drug unit for $33.75 billion in cash $6.75 billion in stock giving allergan 10% stake in teva. teva is dropping its mylan bid and reconsidering what it's going to do with that 4% to 6% stake in mylan. if you look at the stocks of all the players today, you think teva and allergan trading up there. mylan getting hammered down 16%. perrigo up 6.50%. mylan will be under increased pressure to make the perrigo deal happen. there is another name in this.
a fifth stock and that is abbott. abbott is mylan's largest shareholder after it bought part of mylan's generalje ne sais quoigeneral generic drug business last year. abbott's ceo came out in support of the perrigo deal and against the teva deal last month. folks are annoyed that isn't happening on the abbott side. >> you made the point earlier allergan could go in your words, elephant hunting, looking for the big deal. >> one analyst was picking names like amgen, biogen as potential targets. and he talked to sam eisley act actavis could be shrinking itself to be bought.
>> how much consolidation and concentration are we seeing in this industry? what effect will that have on prices people are paying for these drugs? >> one side people say consolidation we are seeing among insurers is driving this consolidation among drug companies to keep the power balance. insurers are pushing back on high costs of drugs. they are getting together to push back on that. folks say perrigo will be in play no matter what whether it goes to mylan or tries to sell itself to somebody else. people are starting to get worried about what that means for anti-trust in terms of all the drug companies. >> wonder if as sam eisley said he expects mylan to raise the bid for perrigo. >> it's coming under pressure. >> perrigo is saying no go. we are not interested correct? >> absolutely. folks are telling me maybe if the perrigo deal doesn't happen
perrigo will look for another buyer. >> the drama will continue. thank you so much. meg terrell. 40 minutes to go now before the bell. the dow is down 137 points the s&p 500 is off today by 11. coming up we'll discuss why china's stock market could reflect weakness in the economy. what does that mean for your investments? >> plus we'll speak to transportation secretary anthony foxx about the government's record fine against fiat chrysler. working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivative pricing model, honey? for all the confidence you need. td ameritrade.
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markets under pressure. we are seeing a five-day loss streak for the first time since mid january. dow shedding 150 points on real weakness in china overnight. twitter and facebook also falling ahead of their earnings reports out this week. twitter reports after the bell tomorrow. there it is down 2.5% today. facebook posts after the close wednesday. down about 3%. >> no comparison what the stock market performance has been. facebook has been the winner. the question going forward, if you are trying to decide which stock to buy, where you think the most upside will be and twitter's gotten hammered so much, whether you think it's not going to take all that much to get the stock back moving. expectations are so low. >> that is what bill mueller
told us twitter is an investment of his. he thinks it could be that $19 facebook moment everybody missed. they have to show they have the user growth. instagram numbers are constantly a reminder of the boat they may have missed. >> that is a definitely show-me story. facebook has shown the marketings it's capable of delivering monetizing mobile and all these other things adding users. >> instagram part of that. spotlight is on fiat chrysler today. federal regulators slapping the auto company with a record $505 million fine related to its handling of vehicle recalls. joining us is our own phil lebeau with transportation secretary anthony foxx. good to see you. phil, take it away. >> thank you very much. anthony, let me begin with the most pertinent question. $105 million fine. does that truly send a message to fiat chrysler or at the end of the day are we looking at a
company or industry that three or four years down the road will be right back where we are today in terms of slow to handle recalls? >> thank you for the question. first of all, this whole approach of this penalty, not only the fines but also the remedial efforts we would be undertaking with fiat chrysler are designed to do both those things. one, to deter fiat chrysler from engaging in similar patterns of slow-walking recall activity not being as responsive to consumers as to dealers as well as to ntsb. it is to get fiat chrysler in a position where they know what is expected and won't behave in this way again. >> secretary foxx we talked with the ceo of fiat chrysler a couple of weeks ago. he sounded like a person who had learned his lesson. a much more contrite executive than we've seen in the past when it comes to dealing with nhtsa.
when you were going through this process with him, did you have conversations with sergio? has he and has his company changed their attitude? >> i talked to the ceo very early on in my tenure at the department. i really allowed nhtsa to spend the time and do the work to work up a workable solution to these 23 different recall issues that arose. i'm pleasantly or i'm very pleased with the way this has worked out. i think it is the right type of penalty. it's also the right type of rehabilitation that's being used here by our team at knitsa. >> so $105 million and general motors was fined $35 million for an issue that certainly got a lot more publ and press than this particular case. is that saying that you believe
that this particular case was three times as bad as general motors? >> each case is different. in this case we had a pattern of failing to properly execute a recall, problems with notifying dealers and consumers, as well as failures to inform nhtsa is required by the motor vehicle safety act. in those three categories each of those problems is at least $35 million worth of penalties involved when you've got 23 different incidents involved there. we feel it is commesurate with the violations and we feel will improve their ability to comply going forward. >> do we know how many deaths were linked to the issue at fiat chrysler? >> we haven't compiled those numbers as such. we've been asked that question and are working to pull those numbers together now. >> secretary foxx good to see
you again. talking about fiat chrysler reminds me of the jeep cherokee incident recently where we found hackers could disable a transmission of a vehicle while it was on the road. what are you doing as these reports come to light about some of the vulnerability in the next generation of vehicles to ensure drivers and roadways are safe? >> two things. on the specific case of the jeep situation, we have obtained fiat chrysler's agreement to do a recall on those vehicles. that is under way. or to issue a defect warning. more broadly, this is a conversation that is going to have to involve not only nhtsa but the industry itself. we are working diligently to get the industry at the same table to focus on the cyber security issues. they'll be more forth coming in the comes days and weeks on that. >> but secretary foxx, the question i here is technology is moving faster than you guys are
moving in washington. there is not a lot of confidence you can move fast enough to ensure the safety of these vehicles. >> i think on the issue of just the typical use recall situation, i think the industry is seeing a very muscular nhtsa, a nhtsa that is not going to allow itself to be gamed by the system, and we are going to continue working to enforce, and i believe over time the industry is going to adjust and we are going to see a lot more proactive effort by the industry. these are issues which, as i say before, industry and government are going to have to work together on this. we had success in our other modes of transportation working with industry to develop solutions and to have the information sharing that allow all the industry to benefit from the knowledge all of us have. we will work to address this issue as we are doing today. >> mr. secretary, deadline on friday for a highway bill. we going to get one?
>> well it's tough going. we are watching what's happening in the senate as well as in the house. i, of course believe we need a long-term bill. we are going to work to get there it's a tough moment and we've got just a few days before the extension from last may runs out. >> transportation secretary anthony foxx joining us from headquarters in washington today on a big day, guys where they announced a record fine of $105 million for fiat chrysler for mishandling the recalls of more than 11 million vehicles. back to you. >> phil lebeau and secretary anthony foxx, thank you for joining us. you were just asking that question of the secretary, house majority leader kevin mccarthy is ruling out house action on that long term must-pass highway bill. he told reporters the house is not taking up the senate bill before it adjourns for a
five-week recess thursday. jurors deciding whether james holmes should be sentenced to death have been questioned about whether the deadly shooting in louisiana influenced them. a defense lawyer raised concerns to the judge and asked for the inquiry. russian president vladimir putin telling switzerland television news people like fifa sepp blatter deserve the nobel prize. the initial autopsy of bobbi kristina brown has found no significant injuries and no obvious underlying cause of death. that is according to the medical examiner. brown, the only daughter of singer whitney houston died last night six months after suffering irreversible brain damage after found face down in the bath tub at her home. that it's cnbc news update this hour. back to you guys. >> thank you so much. 30 minutes to go into the close here. dow still down about 145 points.
s&p down also about 0.6%. up next a top trader tells us what he is watching into the close. >> deeper dive on china's economy and whether the stock market weakness could be a bad sign. need to hire fast? go to ziprecruiter.com and post your job to over one hundred of the web's leading job boards with a single click. then simply select the best candidates from one easy to review list. and now you can use zip recruiter for free. go to ziprecruiter.com. (trader vo) i search. i research. i dig. and dig some more. because, for me, the challenge of the search... is almost as exciting as the thrill of the find. (announcer) at scottrade, we share your passion for trading.
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welcome back. 30 minutes to go in this session. stocks under pressure from china and a five-day losing streak. what are you watching into the close? >> it's about china. growth is slowing. you get a sense maybe the government might be losing their lock-tight grip on activities over there. that means you are going to have some of that going to other markets and commodities. domestically you look at the spx and half the gains are a handful of stocks. that means high growth. high multiples. >> is that a warning sign? >> it's a reason not to be overly comfortable to jump in. you are looking for what is it going to take? throw on top of that august vacation time. not a lot for guys to support this thing. guys on the floor though
traders are hoping we'll see some capitulation or sharper correction. >> the kind that could get more people involved. >> pick up the vix, get people here and get opportunities to trade. this slow to the down side we've seen last week and continuing today is just something traders aren't all that comfortable with. not seeing the kind of volume we like to see. >> what is most important? oil prices chinese stock market? >> it's all about china. >> thank you so much. >> china markets took another dive last night. shanghai down 8.5%. shenzhen down 7%. does this reflect a fundamental
weakness in china's economy? joining us is the author of "unmade in china." jeremy haft houchlt concerned should we be of what's happening in the chinese stock market? >> thanks for having me on. we should be concerned to the extent the chinese stock market is a reflection of the broader chinese economy. this is also good news for america because to the extent china struggles to make safe goods reliably we've been talking about fiat today and the recall. if you are a mom in shanghai you are probably looking at what to buy that is safe on the shelves. every day it seems there is another recall ranging from food and drugs to exploding cantaloupes, glow in the dark pork windows that fall out of buildings.
to the extent china struggles to make things reliably puts demand on america's goods and services. that's why we are seeing demands on growth. >> what does it tell us what's happening with china's economy from here? >> remember when i look at the relationship between the equity market and china, the economy was very robust in china and equity market was weak. now the economy is a little bit weaker and the stock market is weak. i don't see that much of a relationship. in terms of whether we want to look at it as a representation of the economy, the economy was weak in the first quarter. stabilized in the second quarter, so i get the impression there is an avalanche of stimulus in the pipelines. the economy should be stronger. if if the professor is right, that should be reflected in the equity market as time goes on. on a day-to-day or
month-to-month basis, i see little relationship between the economy and stock market. >> what does it say that the government has been unable to deal with the decline in the stock market? they say they are going to keep throwing money at it. now it temporarily works but goes right back to correcting. >> i think it shows us that trying to engineer china's economy through state-owned enterprises and the government is not working. the government has made all the easy choices, pumping massive stimulus into its economy, cutting interest rates, giving huge tax rebates to exporters, et cetera. now they are going to have to roll up their sleeves and make the hard choices about reforming its manufacturing and agricultural sectors. it's uncompetitive, noncommercial financial sector. >> what happens next for the stock market then? even begin what you said about how they are not necessarily reflective, at the end of the day it comes back to the clines authorities. >> absolutely. we heard a lot of criticism for
the chinese authorities when they were intervening. now you are hearing more noise they are stepping back and market is going down we are criticizing them again. we should be excited they are stepping back and that -- >> are they stepping back? >> of course they are. one thing traders were talking about last night was that csi was stepping back the chinese securities commission was stepping back. that's why the market dropped. let's not lose sight that the shanghai equity market index is up 15.2% on a year-to-date basis. have you checked the s&p 500? it's up less than 0.5%. can you imagine how excited we would be if our s&p 500 was up 15.2%? >> if it were june 2000 i'm not sure we would be excited about the roller coaster ride not knowing the future and how much those gains of 15% might disappear. >> you are going to have a correction. market was up 115% over a 12 month period. that is not a normal number not only for china but any economy
in the world. >> this has been a crash. >> this is a bear market. anything over 20% is a bear market. you had a 32% decline, now the market has recovered. we are 6% off the lows. eventually as all this stimulus gets through the system i would not be surprised to get more reserve requirement cuts interest rate cuts and more fiscal stimulus. over the weekend, the vice premier of finance says that between now and the year 2020 would not be surprised if the economy grows between 7% or 8%. i think that is a bit exaggerated. 20 minutes to go into the close deep. spite all of this the dow still struggling here. down about 145 points. s&p down 13 and nasdaq shedding 52 points.
>> boyd gaming is claiming an earning success and promising more success at its hotel casinos, including atlantic city borgata. only six stocks account for more than half of the $664 billion in value added to the nasdaq this year. we'll discuss what that means for the health of the market. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it. what are you supposed to do, drive three-quarters of a car? now if you had a liberty mutual new car replacement, you'd get your whole car back. i guess they don't want you driving around on three wheels. smart. new car replacement is just one of the features that come standard with a base liberty mutual policy. and for drivers with accident forgivness,rates won't go up due to your first accident. learn more by calling switch to liberty mutual and you can save up to $423. for a free
>>. >> china's market feeling some concerns over stability in asia though. china's casino and gambling industry has seen recent hard times. >> boyd gaming operates 22 gaming properties in eight states and it is the managing partner and 50% owner of the borgata hotel and casino in atlantic city. >> joining us now is boyd gaming ceo keith smith good. to see you. >> thanks for having me on the show today. >> your strategy of not necessarily doubling down on the chinese consumer seems to be paying off. if anything it sounds like you are looking at opportunities in japan potentially here. >> the second quarter was a great quarter for our company as
we saw continued revenue growth fourth straight quarter and double digit ebitda growth third quarter. we are taking a look at japan. we would like to expand internationally. we are waiting for the legislature in japan to move on some bills. >> there continues to be more evidence of this booming market and online fantasy sports and online gambling in general. what plans does boyd have as this technology continues? >> with internet gambling we have a market-leading presence in new jersey with the borgata brand. we've been doing that for about a year and a half now. we are waiting for other states to expand or approve that. with respect to fantasy sports it's a mixed bag. certain states approved it other states haven't. we are trying to understand. it is a form of gambling though not regulated like a form of gambling. >> want to ask you about atlantic city and the borgata which you are a 50% owner.
revenues there were up 5%. what is your long-term outlook for that part of the country? >> the atlantic city market went through a painful right sizing last year as several properties closed. rhett the remaining properties are seeing good results. almost 4% growth year-to-date basis. we have great confidence long term against growth or viability of the atlantic city market. >> are you capitalizing because there are just simply fewer places to gamble so you are getting the customers who would have gone somewhere else or are you seeing higher consumer spending as a result of what's happening in gas prices as we've been waiting to are folks to spend that money they've been saving? >> sure. i think it's a combination of both. borgata is a market-leading property. it's the market leader since we opened in 2003. we are getting more than our fair share of new customers, customers looking to call home.
customers displaced and seeing increasing consumer spending. >> got to ask but real estate. we've seen a number of consumer companies come under pressure to spin off real estate to get tax advantages from that. your peer group, as well. what do you think about the economics of spinning off your real estate assets now or at some point in the future? >> the whole conversation about reits has been an interesting and topical conversation for the last year. it's something we have been studying and will continue to pay attention to. we previously said that we choose not to make a public statement about this until we have a definitive direction. >> millennials. especially if you are focusing on the u.s. market here. what do you do to capture them? >> millennials are very important up-and-coming customer group for us. we embarked on a new initiative
to renovate and enhance and expand many of our nongaming amenities, food and beverage outlets to provide a more attractive environment. make no mistake, baby boomers are our core customer and will be for some time to come. we need to reorient our product to make it attractive to the millennial generation. >> borgata has been in the forefront. thank you for joining us. >> absolutely. >> keith smith ceo of boyd gaming. >> over 10 minutes to go before the bell rings on wall street. dow not at its worst levels of the day, but not that far off though. off 148 points. s&p is pulling back under pressure. nasdaq down by more than 1%. amazon google apple and facebook are not just tech companies. these names are four of the most important stocks on the nasdaq. we'll tell why you next.
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and netflix along with gilead make up more than 50% of the nasdaq's gain year-to-date. >> joining us is jeff mortimer to elaborate on this. i guess we saw the same phenomenon in 2000. is this a topping signal? >> nice to be here kelly and scott. we looked at data going back to the late 1990s, even onto 2006 and 2007. the thing investors need to be concerned about is not that markets narrow because they do. as bull markets age as the hour glass of time and sand passes through it markets narrow. they tend to favor late-cycle bull markets which we believe we are in one. we've been in a late cycle bull market a couple of years. bull markets, as they age narrow. they favor large cap stocks over small and growth stocks over value. as you play that out, you get to
a more narrower group of stocks. the question is what is the valuation of those stocks that are in that lead pack? if you go back to the late '90s which i think we could argue was the bull market of all bull markets, especially on the blow-off top, the pes were up to 100 times earnings on stocks like cisco systems. when you look at the stocks leading as mentioned in the article in "wall street journal," pes are much more reasonable. down in the low double digits. we are monitoring it at by mellon on behalf of clients. we moved some internationally to better risk return trade-offs. if you asked me if i think this is the ultimate top of this market, i would say no. this is a pause. the markets make a leg that will take you to new highs. >> if if my friend lee cooperman were sitting here he would say
bull markets don't die of old age. >> they are murdered by our fed, typically, right? that's how they tend to die, right? that is a line stolen but a good one. three steps and a stumble is famous. this time might be more than that. they are starting from such a low base. whether they raise in september or december these are things our committee is discussing. those are the things that typically end bull markets. we are long overdue for a 5% or 10% correction in this market. it is a growth scare we are in. it is not something we think will be long lasting. >> you can't help but worry about the health of the rally when it does become so narrow and you look at instances in the past where it certainly, if not signaling a peak suggested we were awfully close. >> like i said we are monitoring that situation closely. i don't think we are here yet
because the valuation in those few stocks is not stretched. this year energy utilities, reits, those interest-rate sensitive as well as energy patch, we felt a lot of pain from the energy trade so far and have not gotten pleasure from that yet. we might get that pleasure maybe some day. we haven't had it yet that. tends to be six to nine months after the fall of the price of oil. maybe the consumer again sits on their hands and will spend later. >> is that boston in your background? >> it is boston. >> how do you feel about the olympics? >> or lack thereof? >> i think a long way to go on that. would be wonderful to have it for this city but may be a long road to hoe and the issues there. >> what a story. jeff mortimer, thank you for joining us.
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welcome back. time for the closing countdown. been a rough day because of the china sell-off overnight. one of the chief catalysts unsettling investors, dow off its worst levels. down 133 points s&p and nasdaq under pressure today. let's bring in our market expert bob pisani. is that what it is, china? >> earnings are really bad. partly a reflection of what's going on with china. when you see energy stocks down 35%. their earnings you see industrials diving because a lot get more than half their earnings outside the united states. when you see materials for the same reason diving. those sectors. we are heading towards 500 new lows on the nyse. we probably won't hit that. that's almost 1/5 of all the
operating companies on the nyse. that worries me a little. watch market leadership. we lost energy and materials and lost some of the other sectors. we are losing industrials. >> you want to watch the ibt. that's been going down. banks are the other big leadership group. this is a weak day along with the market if that gets worse the next few days you'll see people screaming. the greek stock market has not been open three weeks. that is a three-year low in the greek margaretkets. they don't seem to believe any deal will make a difference. >> feels like everybody is pessimistic. >> i think there is reason to be concerned. people are screaming about the lack of a 10% correction. i care about the earnings.
i see them coming down in the third quarter. they were supposed to be going up. dow down 125 points s&p 500 down about 12 and nasdaq down almost 1% giving up 50 points on the session as we await big tech earnings this week. names like facebook and twitter. as kline concerns predominant will also get earnings from baidu. joining me is dan greenhouse and stephanie link also with us
"fast money" trader tim seymour. tim, china, china, china? >> yeah. people had started to feel china was stabilizing. we got a bad pmi number friday. the policy officials are sending very mixed messages. the whisper overnight was they would step away from defending the market. they came back in and said that's not true. almost explicitly saying we are going to defend this market. i think if you look at the broader market reaction volatility is being priced into a lot of different asset classes. china by the nature of its overall weighting is dragging em to five-year lose. essentially the march '09 lows. it's setting up for a total washout or we keep going. >> stephanie, which of those two options? >> where do i begin? >> when people say as we are, seeing the lowest level since the financial crisis for a lot
of commodities, for some of these markets, there is reason to be concerned, right? >> commodity sell-off is something to keep our eye on. i think what is going on is it's not only china that is happening right now. we actually have not gotten such good data here in the united states. we were hoping that we were on this road to recovery. i don't think we are in jeopardy of growing less than 2% kind of thing, but we are probably not seeing acceleration to that 3% level based on data. you have seasonably difficult time. people don't want to do anything in the month of august into september. there's a lot of uncertainty. i would point back to i don't think earnings are that bad. so far you are looking at 40% reported. you have a 4-1 positive to negative ratio. you have 73% of the companies beating. it's only a 40% sample set. i think it's pockets of the
market that are healthy and good and where you can still invest. >> we'll talk more about earnings. the fed is meeting this week. if we take it at face value, it's priced onto the market. rhetoric would be last meeting before they raise interest rates the first time over a decade. it's against this back drop the drop in commodity prices is deflationary. are they going to raise rates next time? >> let's keep this in mind in perspective. we have numerous fed members over the last couple of weeks, dare months that have come out indicating they are ready to raise rates at least once several twice. let's be crystal clear. peak in the crb index was four years ago. the decline in commoditiesy sies has been an ongoing story with weak
global environment. perhaps global growth will be weaker than it might have been. again, this has been going on for so many years. >> it is perhaps a rebalancing. one of the major ones we've seen since this whole area began, arguably going back to our financial crisis. so what investments do you make for this next period we are entering? >> in china, for example, you don't want to be invested in the infrastructure plays. that is clear. we heard it from a dozen of companies this earnings season. there are pockets in china you can invest. here in the united states we will eventually see a reacceleration. i do think you want to own domestic-focused companies. i think technology has been a good place.
i am nervous about industrials. >> is that going to be the $4 billion rebuilding of laguardia airport? are we on the cusp of some major infrastructure development in this country? >> i couldn't actually mind laguardia as much as everybody else. the drive is much worse than the airport. >> that's it. we need the fast train to the airport. >> sure. i don't thick earnings season is going well with respect to china. i heard a lot suggesting that something different is going on in china. you've seen generally speaking positive commentary about india and negative about brazil. i find this quarter's commentary about china differenting from previous quarters. >> in the industrial space, for sure. on the consumer side you listen
to a lot of -- that's the area i would be looking at. i wouldn't be going on infrastructure. >> tim before you jump in. let me bring in dominic chu. >> first of all let's look at etf that tracks the chinese market here. you see the fxi that tracks the chinese companies versus s&p 500. we see this huge drop on the right hand side. whether or not that is going to be a big deal is something traders pay attention to. we asked our data partners at kensho to look at some of the items. cnbc pro has a story talking about some of the companies in the s&p 500 that tend to fall
the most on average when that china etf falls by 10% in five days. some of the names are intuitive. names that have exposure to china. wynn resorts, alcoa and ford. those are some of the stocks that fall the most in that five-day span when the chinese markets show turmoil. on the corporate side dab greenhouse talked about the commentary out of these earnings calls. from freeport-mcmoran. they say in their conference call the slowdown in the china economy is a factor and carry-on effects of the drop in stock prices in china and impact is being shown in copper price. and alcoa mentioned china around 17 times during their earnings conference call. for qualcomm a chip company that does a lot of business in china. they mentioned it 28 times, the
word china, on their conference call. a lot of companies do have concern and are using that as part of their earnings story this time around. >> great stuff. thank you. for more on china's impact welcome. the divide we seem to be having is this weakness in china specific to the commodities and investment and infrastructure plays or is it more broad? >> thank you for having me. as we have already seen from the economic indicators there is no doubt the chinese economy is slowing down. no doubt commodity-related trades are being biggest impacted by this. what we really think about the market is if you look at msei xhooin indexchina index, it's four
times earnings. in the asia market some of the stocks are becoming attractive from valuation standpoint. that makes us very excited. >> we heard that from a guest last hour saying he liked china mobile here. tim seymour, let me throw this back to you. going to this question of is it that the chinese consumer plays are going to hold up better than the industry ones infrastructure ones how are we going to know? >> i think we are getting near sentiment bottom on china. this has been 2 1/2 years of pmi struggling to stay above a contracting or growing level economy which they have not.
i look at freeport problems be structural to the company. they are making more moves. i think the opportunities on the sell-off are coming from the adrs traded here for some of the biggest and most well rooted and best balance sheets in china. that is alibaba and china mobile. baidu will report tonight. you are seeing reasonable growth at a reasonable valuation. i think people overreacted to news that isn't different. it's the chinese stock market people are imputing upon the chinese consumer who they think drives the global economy, which i don't think they do. >> tim mentioned the market is down 30%. dove tailing off that the index was up 150% leading to the peak some of the more volatile chinese indices were up.
what makes us think 30% is going to be the bottom? can't this fall 40%, 50%, 60%? >> yeah. here is what we think about here at thornburg. even an example of last night. what happened was the first half of trading hour we saw hong kong was leading the decline. that's because the investor is concerned about macro indicators we talked about. the second half we think is because the rumors of government going into exit rescue measures affecting the stock market. at thornburg our basic case is premature for the government to do so. consumer sentiment is weak. financial leverage is coming down but still high. we are far from being normalized market in asia.
we think china government should still provide a support. that's why we think it's good for stock pickers like thornburg. we are going to get good stocks. >> it would seem that way. thank you. appreciate everyone joining us this hour. we'll leave it there. there is much more with tim seem seymour and "fast money" at 5:00. there is one can't-miss opportunity in this carnage. >> another read on the health of chinese economy. [ male announcer ] some come here to build something smarter. ♪ ♪ some come here to build something stronger. others come to build something faster... something safer... something greener. something the whole world can share. people come to boeing to do many different things. but it's always about
gold miners have been hit particularly hard lately. gold miners etf down this past month. one says you need to buy the miners before wednesday. larry mcdonald joins us now to explain why. >> that's aggressive. i agree with the heart of what you are trying to say there. what we are trying to say, we have a model that measures
capitulation. they are like hurricanes. this is a katrina, a hurricane vibe in the depth of the capitulation for the gold miners. >> everybody hates them. >> but the amount of people that sold the gold miners in the last week are more than almost double the amount of shares outstanding. >> when is the last time you saw something like this? >> june 2012 similar and the end of 2014 into '14. in both cases we've seen five six rallies of 20% to 40%. >> in the gold miners specifically? >> gold miners bear market rallies. these are bear market rallies, they must be sold. in an s&p that is flat to down on the year for the next month, you've got decent probability of a bounce. especially with the fed meeting. that's the type of action we've seen after and during fed meetings. >> do you think supply will change or more a trade, a tactical trade? these miners need to start
shutting down so that the balkan get improved. >> yes. i think they've been doing that over the last year. especially over the last quarter you've seen some. we've done the work gold could fall some more. another 20% more and the profitability of the mine is not as bad because they've taken a lot of supply offline. >> i'm looking at the chart of the gld. around the time you are talking about, after the bounce it was $172 a share. >> this is a proxy for the price of gold? >> it is today roughly $105 considerably lower than the level then. if you are advising people to buy gold for a trade, which it sounds like you are, where is the level they get out under the assumption lower prices are here to stay or a position you are taking that says the gld is $105
today, in a year it will be $140. >> there are periods of time where gold is better buy than the miners. this is the point where the miners are a much better cheaper risk/reward buy the gld. >> should someone be long the miners and short gold? >> sophisticated account, yes. spread between the two is at historic proportions. >> reflecting for a second on the gold price, we are talking about commodities crash over the last four years. it's broad. it's been slow but at times fast. gold is part of that. gold is behaving more like a commodity than a proxy for central bank action. if we have deflation and if its counterparts are deflating, it's not rallying or getting a bid. >> yes.
this is where you get to the fascinating point where the fed kept rates zero for six years. maybe is there a price to be paid for that. the point is commodities are down so much. we've never seen a federate hike with commodities imploding at this pace. at some point you have to say does this leak over to core inflation? >> do you think that will ultimately -- shouldn't people be factoring that into the gold price? >> the fed might be concerned about this rally in the dollar. >> we talked about this before commodity rally has been going on a few months now. they've still been hawkish with respect to rate hikes. >> what we saw in the march meeting and we saw in other meetings the dollar killed first quarter gdp. in the past the fed, when the dollar made a big move they
gently talked the dollar down because it's such a negative on the market. >> larry with the contrarian four-week play thank you for joining us. appreciate it. coming up on the program, apple watch is about to become available at a best buy near you. will broadening its exposure be enough to boost sales? apple shareholder and watch owner ken o'leary will join us to weigh in next. many investors scratched their heads when facebook bought instagram instagram in 2012.
welcome back. we begin with a market alert on oil prices. >> oil has dropped below $47 a barrel. the first time oil dropped below that level since march 24th this year. earlier today crude oil closing regular session at $47.39. weakness in oil is part of this commodities drought we've seen extending in the after-hours session. first time it's been at those levels since march 24th. apple watch coming to best buy. circle august 7th on your calendar. 16 models will hit shelves making the company the first
retailer outside of apple to stock the watch. joining us is kevin o'leary. good to see you. is this going to best buy earlier than apple's other devices? is that a warning sign? >> not at all. what you have to realize about this device unique to its nature, a watch is a piece of jewelry. i have an apple watch. it's part movie watch collection. men and women look at watch eses beyond consumer electronics. it has to look cool. most people want to try on their apple watch before they buy it. i wanted to get the black sapphire. i'm wearing it right now. i like it a lot. i wanted to try it on first. i had 0 to get a sample to make sure it worked with me. right now this will double the base of locations you can try watches on. i'm anticipating a big surge in apple watch sales in the last quarter of this year as a result of doubling the number of retail
outlets. >> i'm only chuckling because of the look on dan and stephanie's faces. some skepticism here? >> i'm curious what your thoughts are in the competitive environment? the fitbit seems to be the product people are gravitating toward especially millennials. with the iwatch being in the first generation is it just going to take time to see the migration toward apple and away from competitive products? >> i think what is going to happen is the apple as we get an upgrade to the os with the watch itself anticipated back of this year/early next year will incorporate the vertical attributes of what the fitbit has. it's a very strong offering in fitness. not everybody runs 50 miles a day and rides a bicycle 100 miles a week. they want to monitor their health. apple watch does a great job doing that plus a lot of other things. i look at it and i buy this watch because i want to be very
close to what apple is doing as a major shareholder. it's a big position in my mutual funds. this encapsulated you back into the apple environment. you get one of these watches, it keeps sucking you back in. it's almost like the godfather. i thought i got out, but i couldn't. i got sucked back in. that's what's happening with this device. >> are there not enough apple stores? >> not for jewelry. this is a piece of jewelry. it's consumer electronics piece of jewelry. you need to be ubiquitous where people buy jewelry. you put it on you look at it on your wrist it gets you over the hump to buy it. you choose the color of your band. all that will be doubled up in the back end of the year. this is a smart move. i wish they would get another 400 locations. keep doing it. >> my company follows apple, we have a buy rating full
disclosure. you mentioned this needs to be where people try on jewelry. i have not bought jewelry at best buy. is that a section of the store i missed? >> no. i'm only saying the idea you have to try it on. i'm indifferent what retail location you do that at. it is not something you are going to spend $500 to $600 online. you have to try the watch on. that's my take. i think we'll double unit sales in the fourth quarter as a result of this move. >> i wonder as we get more to the wearable space how that will affect traditional retailers like a best buy versus some of the fashion retailers where you traditionally go to try stuff on. i have an apple watch. i love it. i use the apple pay all the time. it's super easy. apparently, i'm the odd duck out in terms of the market appetite right now. you are coming down to the nyse tomorrow, right? >> yes. i'll be ringing the opening bell
launching o shares my new mutual fund and etf company. it's a whole new generation of rule-based etfs. not like the old market-weighted index. ousa will be trading in new york tomorrow. i will see you there. >> yes. we are very much looking forward to it. here is a picture of you back in november 1996 ringing the bell with the learning company. i see you next to the bunny there. >> i'm not the bunny. i'm beside the bunny. i am deeply honored to ring it a second time. it is the essence of entrepreneurialism to get up there, ring the bell and bring forward free market activity. i tell my kids about it. this is a thrill for me. ringing the bell twice, i'm honored. >> have a blast. we'll look for your watch. thanks for joining us. >> take care. >> kevin o'leary.
here what's happening this hour. u.s. military releasing video showing an air strike on an isis bomb factory near mosul, iraq. a huge explosion can be seen momentarily when the factory is hit. the u.s. coalition aircraft are supporting iraqi forces against isis fighters in northern iraq. president obama touching the fossilized bones of lucy 3 million old ape-like creature linked to modern humans. he viewed it in ethiopia's capitol. boston's bid to host the 2024 olympics has ended. earlier boston mayor said he would not be pressured to sign a host contract that puts the city on the hook of costover runs. >> nbc news reports the nfl is talking with the players association about a compromise involving new england quarterback tom brady. the nfl would like to avoid a lawsuit over brady's suspension
but still wants brady to serve some type of suspension. the union wants only a fine. patriots open training camp on thursday. we'll see who blinks first. that's the cnbc news update. back to you. >> thank you so much. facebook and twitter getting set to report earnings the next two days. we'll tell what you to expect. >> later, could china's market collapse spoil the fairy tale for shanghai disneyland? ♪ ♪ ♪ ♪ isn't it beautiful when things just come together? build a beautiful website with squarespace.
welcome back. now one of the worst losing stretches we had since january. dow down 127 points. nasdaq down 50. that's good for 1% on that index. s&p down 12 and crude getting lots of attention, including after-hours as it broached that $47 level, down about 2.25%. >> baidu as all the concern about china raises out with its numbers. >> baidu reporting 11.19 on
16.58 billion yuan. right in line with the street. just looking through the release here, monthly active users up substantially. about 24%. online marketing, revenue up about 37%. expenses, those jumped 81%. that is a source of some concern for investors. part of the reason that stock was under pressure down 13% heading into this print. baidu investing in mobile offline services. users can now search and buy items. as for guidance spinning ahead 18.2 billion. that is a bit light. i'll be on that conference call and listening for headlines. >> thank you. sent shares down more than 5%. >> combination of higher expenses. you get higher revenue. it's that trade-off. what are growth companies will to do? will investors be patient enough
to have them invest long term? like with google finally delivering. we had to spend years waiting for them to figure out that mix. >> are you saying this shouldn't be thrown into the basket of oh china is slowing down? >> i'm looking at maus up 24%, onlike marketing revenue up 37%. i would hardly say the consumer is falling apart. judge. >> speaking of social media, twitter and facebook reporting this week. facebook poised to take off. twitter on the hunt for a new ceo and way to add users. julia boorstin joins with us a look. >> the tale of two very different social media stocks. take a look at the two stocks. facebook shares are up about 15% while twitter shares are down 33%. weighing on twitter stock are concerns that the company won't be able to grow its user numbers much beyond the 302 million
users that were reported last quarter. suntrust analyst projecting the core active years will be roughly flat with last quarter. the company is hunting for a permanent ceo and yet to launch its project lightning set for this fall. in contrast facebook has been soaring. stock trading around an all-time high on confidence that not only will it continue to grow its users and revenue, but the company should share insight into the potential for generating revenue from its other apps. plus from its new video ads. for both companies, analysts will be listening carefully and asking plenty of questions about long-term plans. when twitter will have its new ceo and new strategy in place, and when we will start to see some revenue from facebook's whole portfolio of apps. >> thank you. what a lovely setting.
julia boorstin. >> instagram a big money maker for facebook. our next guest saying its mobile display ad sales could surpass google and twitter. deborah, welcome to you. how big are we talking for instagram's ad revenue here? >> thanks for having me. this year we are forecasting that instagram will have $600 million in ad revenue. we are expecting that to rise to $2.81 billion in two years. amounting to 10.6% of facebook's total ad revenue. overall i think we are seeing instagram coming on strong becoming an important player in the facebook portfolio of services. and becoming another place for advertisers to look to spend their ad dollars. >> the fascinating thing about this was not just the growth in instagram's monetization of this ad platform but the way that
vult vaults it to a level of google and twitter. >> facebook is doing a good job trying to tell their customers or advertisers that what their individual customers are doing. the targeted format is the most important. that's why advertisers are going to use instagram or facebook. that's why they are not going to use twitter. they don't know what those returns are at this point. >> that's the split we are seeing for twitter and facebook. >> we follow both companies. when you look how the company performed, it's hard not to be positive on facebook. they executed the engagements with user base. twitter has not. viewed strictly through that
prism, it would make complete sense one is doing better than the other. >> what do you expect rivals to do to try and copy or learn from what instagram is doing here? >> it's going to be hard at this point. facebook built up a huge and successful targeting engine. now they are bolting instagram on top of that. advertisers looking for users that aren't on facebook will find them there and target them like they do on facebook. that is hard to replicate. it's hard for companies like twitter and others to figure that out. we'll see more targeting capabilities and features added on to that. >> goes back to baidu. expenses were so high and have been for so long. investors are disappointed with that. we were darn disappointed with facebook the first couple of years. they had to spend money.
they had to plow into technology to see the fruits of their labor. >> what about twitter? >> i think they are so early on. i think they were so mismanaged for such a long time they've rye got to start from the drawing board. that doesn't mean they can't hire great people and use their balance sheet and cash to focus on spending and getting this technology up to speed. i think it will take time. >> investors have shown a willingness to tolerate investment if you are getting something for it whether it's share or greater user base with. they haven't succeeded to the degree as the other companies were discussing. >> that makes it crystal clear. >> thank you for joining us with details. >> thank you. espn has been the crown jewel in disney's media empire.
ceo bob iger says the sports network could be sold to consumers like hbo. how that could impact disney's stock and the cable industry. the latest ride sharing company taking on uber. [dad]i wear a dozen different hats doing small gigs,side gigs...gig gigs. quickbooks self-employed helps me get ready for tax time. to separate expenses,i just swipe. it's one hat i don't mind wearing. [passenger] i work for me. and so does quickbooks. it estimates my taxes,so i know how much stays in my pocket. and that's how i own it. [announcer]stay in the flow with quickbooks self-employed. start your free,thirty-day trial today at join-self-employed-dot-com.
store in shanghai. i was there week before last it's still doing extremely well. we haven't opened the theme park park. but the chinese consumer is not really, in term of its behavior indicating there is an issue with their markets. >> he also laid out what the future of television will look like for disney. particular how espn will adapt to how people are watching tv. >> i think eventually espn becomes a business that is sold directly to the consumer. where there is an engagement in that espn will know who their consumers are will be able to customize their products and offer advertisers more value, as well. >> this immediately generated reaction when espn could go direct to the consumer.
who does this have a bigger impact, espn or the cable industry? >> the cable industry. espn carries its own brand. it's got the pricing power. there is very little competition. fox tried to do it and it's not that great. i think it's competition for the cable companies. >> clearly, this is the direction which the cable companies are going, the a la carte pricing. right now would be too expensive to cut the cord. espn is one of those premiere brands where it's $20 or $30 -- >> because it could be that much. >> if i polled people most people would pay $20 for espn. >> they pay a lot of money for dish for the nfl network. depends what you are after. >> you mentioned fox sports. fox sports nbc are now starting and trying to bulk up on their sports networks including making hires from espn if they are able to offer consumers a
choice, does that diminish the appeal of espn? >> it could over time. you'll have to see. it will be expensive for the competition to get up to speed to where espn is at. espn will not stand still. they will continue to invest and build out their brand globally. i think that's where the opportunity is especially outside. >> a lot of people tried to take on espn before. >> what about the cost of acquiring some of the rights to these major broadcasts which for them while they have successful shows, a lot of it still revolves around showing the big events. >> goes back to pricing power. they can afford to do to take on a lot of these costs versus their peers or competition. >> people watch sports a lot. >> period. they do. thank you, guys. that's the latest as we just told you out of disney. it's a cross between a cab and
welcome back. your commute to work may be getting an of the latest ride sharing companies roaming around new york city. it's a carpool service available weekdays. it takes you anywhere between 110th street down to 14th street in manhattan and it costs $5 a ride. let's dig deeper into this business. joining us for the spark today is the ceo of via, daniel ramot. welcome to the program. >> thanks for having me. >> you've been up and running for two years now. does carpooling really work? >> we really think it does. in fact what we're seeing is we've done over a million rides at this point here in manhattan and people share the vast majority of the rides are shared. if you're in a via car well aboston majority of the time you're going to be sharing with two or more people. >> is it just in that zone we mentioned -- is the pickup in that zone or the whole trip has to be in the zone? >> up until now the whole trip had to be 114th to 110th street. we just announced we're
expanding to houston. it's in beta today. >> you provide a service at a reasonable expense. i assume your customers enjoy your service. how long until the new york city government gets involved and tries to prevent you from doing this? >> that's a good question. so i assume you're referring to the city council bill that the city proposed to pass over the last couple weeks. of course uber responded fairly vigorously one might say. and that was -- in you're in new york you have no way to avoid that. what we're finding is in our conversation with the city about the same bill is the city's been incredibly willing to listen to us and really understands our model. >> but you guys aren't as big, right? if you become as big as uber overnight will they turn around and say wait a minute we don't know about this car sharing thing? >> at least what we've seen so far, they really understand our model, that it's fundamentally different, that we're about true ride sharing. as i said the vast majority of rides are shared. if you're in a via car the vast majority of the time you're with other people and over 50% of the time you're sharing with two or more people. >> so you're not after uber's market share per se. you're trying to create your own little niche within the segment as a whole? >> so the way we see it is we're
in between the bus and the taxi or an uber. and we're creating a new mass transit service that's dynamic. i didn't really explain this but you get into a larger vehicle, large suv or a van, you share with several other people but the route isn't predetermined like a bus. you get picked up right near where you are and get dropped off within a block or two of where you want to go. >> i'm actually in daniel's defense here the problem that new york city has is some ridiculous argument about congestion to the extent that you're carpooling you would presumably have a bit of an out so to speak with respect to the government. >> that's what we foungd is the city really understood that and was willing to discuss it with us, and i think we're looking forward to working with them to carve out this -- >> it's a very diplomatic answer on your part. >> thank you. i know there's a lot of passion in this debate but when we were speaking with the mayor's office and city hall we had a great response. >> how did you come up with the price point? >> it's $50 a ride anywhere in the city plus tax. we're required to charge sales tax. and we felt that that was a really nice price in between the bus again and the taxi. we're also eligible for commuter
benefits. so you can use your wage works car, transit check, commuter check, to ride with via. we found that was another way that made the service differentiated. it's a transit service fundamentally. you can use a pretax commuter benefit to ride. >> this now is going to be a whole new cultural 23078. because we know uber has gotten into this business as well with uber pool. if this becomes more of a thing, the whole concept of sharing a ride with a stranger i guess first we had to get over the fact that we might be sharing a ride or getting a ride from a driver who might just be using his car to do so casually. now it's who might i end up in the back seat with? >> totally. and it might be a great experience. we're finding most of the time it is a great experience. but you have be to willing to do it. and i think when people are realizing they want to be on their phones, texting, instagramming, whatever it is, it's a much better use of time to ride with someone who's driving you rather than to drive yourself and if you can share with other people and meet some of your neighbors why not? >> fascinating. daniel ramot joining us ceo of via. and please keep us posted. you can check out much more on the spark at cnbc.com/thespark.
this year's delivering alpha conference meantime brought together some of the biggest names on wall street. up next we'll give you a delivering alpha exclusive from bill miller and jeffrey gunlock. and then congress set to decide the fate of the export import bank. a huge story worth billions to this country's biggest companies and their stockholders. commerce secretary penny prits kerr makes her case for keeping the bank exclusively on "power lunch" tomorrow 1:30 p.m. eastern. don't miss it.
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institutional investors delivering alpha conference. we talked about everything from amazon to oil and of course when the federal reserve will raise rates. >> we have no energy stocks at all. i'm personally short oil. so i think that that -- i think the rally we had from january to a few weeks ago was an oversold rally and i think you're probably headed lower on oil. >> i think the dollar will be astable. i'm a long-term dollar bull but not in the short-term because it made such a big move. that will be incrementally helpful for emerging market debt. >> even if inflation goes up and that happens that means the equilibrium interest rate will longer term be higher and that means they'll have more room to tighten. >> the fed really wants to get off of zero because who wants to
be at zero should the economy actually go into some sort of recessionary mode? so i can see why they want to get off of zero but the economy just hasn't really been able to corroborate the hope they've been showing. >> to see the full video of this panel and for our complete coverage of delivering alpha you can visit deliveringalpha.com. guys, what did you think did especially jeff gundlach's point with china and the commodity weakness they had. is he right? >> i think we're all data dependent. i hate to say, it i feel like i say it all the time but we have to keep watching the data. and if the data gets better the fed is going to move. if the data doesn't get better they're going four it out. i kind of think it's simple as that. >> dan? >> i think this is a much bigger conversation than we have in the next minute and a half. but the decline in commodities is a much more difficult development for macro credential policy makers to ascertain than simply a decline in demand equals lower oil prices. which isn't always the case.
if you think of '08 oil did not decline into the worst recession since the last recession. it rallied. there's a lot the fed has to figure out in particular to take the other side of the argument if you will perhaps the decline in commodity prices is beneficial to growth is beneficial to the u.s. economy in terms of the consumer a number of different things. it's not as easy as saying oil's down things must be bad, because the fed must actually raise more quickly after this. it's a perverse way of thinking about it but i can't explain it properly in the two minutes here. >> i thought you did an admirable job but it does all seem to come down to wages at the end of the day. if that was the one data point that was shooting higher it would seem that would give them plenty of breathing room. >> that's one of the reasonsy was encourages in the beginning of the year or mid part of the year when we started to see the eci wage numbers go higher and also in the jobs data numbers but that's kind of leveled off now. that's why i say we have to be data dependent, we've got to see what's happening to the growth environment here for them to really take -- >> i want to know when you guys take a carpool home what the experience is like. no, never, dan? >> no. i ride the subway every day and
i'm perfectly happy with it. >> that's your carpool. thank you so much. that does it for "closing bell." dan greenhouse stephanie link. "fast money" begins with melissa lee and the gang covering the fallout after china's stock market had its biggest one-day drop since 2007. >> "fast money" starts right now. live from the nasdaq marketsite overlooking times square i'm sara eisen in tonight for melissa lee. our traders on the desk are tim seymour, pete najarian karen finerman excuse me, and guy adami. tonight on "fast" could the turmoil in china be spelling serious trouble for america's most beloved stock, apple? we'll talk to an analyst who was just on the ground. plus one of the best technicians on wall street has one chart that is pointing to much more pain ahead. he'll tell you what that is. but first to this market move. the dow falling as much as 150 points today on the back of