tv Fast Money CNBC September 25, 2015 5:00pm-5:31pm EDT
thank you so much. morgan brannan. >> that is where you are going. >> i'm not getting close to that. >> i love that set. >> i love the lyrics. >> you belong in tomorrow world. >> evan and jim, thank you so much. that does it for us on "closing bell." "fast money" is coming up. over to melissa lee and the gang. thanks, kelly. "fast money" starts right now. live from the nasdaq markets and time square, i'm melissa lee. traders are tim seymour, steve grasso, brian kelly and goid. tonight the best smartphone on the market for apple, the stock still closed lower. we'll tell you what that has investors so nervous. and xi jinping and president obama having a meeting in washington today. we have the four stocks that are telling the real story of what is going on in the chinese economy. but first to the story that could have serious implications for stocks. the biotech bear market. falling into bear market territory and at one point the
shares have the worst day in four years on record volume and falling below the flash crash close. so guy, is this a broader problem for the market. >> it is a big problem for the biotech market. ibb trades down 5% and tim talked about 285 being a left on last night's low and then i think you have something that favored kyle bass in the after market. hillary clinton's remarks this week. all point to these things continuing to go lower. people are selling the etf which drives the stocks down. you can't buy these until they start to report. i think celgene reports in three weeks. otherwise i think timmy's level of 385 is in the cross hairs. >> and this is not just biotech it is health care as large. biotech 20% of the health care sector. but you take a look at the big names, the pfizers, the bristol myers, down big, 2.5%. >> just look at the health care
etf which is xlv. that was down. so that has all of the big ones in there. so this was mass liquidation. and we talked about it in health care and biotech in particular where you have investors and people getting into the space and it creates bubble-like characteristics. these were broken before hillary clinton said what she said. but for me, i still think biotech health care is a short until after the presidential election. >> and so that is the point. are you explaining -- and i don't mean brian, is the market concerned about the valuation in some cases that are absolutely unexplainable and the ceo's said if one eighth it correct -- for biotech, it is cheap. or is there going to be a regulatory backlash on the gouging and all of the things that we heard earlier in the week. from the market perspective, there is still a lot of fast money in the insect. you have to goc go back to market, mrk, good pharma and
good location. >> what do you do at this point. >> to tim's final point there, i think people are locking in profits, locking in where they did have profits in the market place. but it is month end, going for hedge or mutual funds. but we have a more hawkish joil and fed -- janet yellen and fed representatives. what performs the worse, health care in a rising rate environment. we saw that chart a couple of weeks ago. so i don't know how much of it is indicative of the a rising rate in environment but i would say it is 80%, 20%, locking in markets wherever they have them. >> what has driven the biotech sector in the previous. it has been the notion of m&a correct. and if you have headwinds charging for the drugs that the biotech companies are paying to aquite, does -- acquire, does that make you recalculate whether or not m&a is feasible in this environment. >> and we talked about p.e.
associates, they are market to model. we don't know what earnings will be. so you have to slice something out for the political uncertainty. the one thing you do know, the prices aren't as high as they used to be or potentially could have been. so you have to lop something off and lop even more off and some chtd big names are okay. >> and i'm going to be a debbie downer today. we did see the rotation going on. we saw rotation into the financials held up very nicely today so this just means that money is going elsewhere in the market, not necessarily that the market is going to have problems. >> actually, that is right. that is puppy upper, debbie downer. any way, i think the market is showing signs of strength. that the biotech market is able to discern against a sector that is frankly overpriced and go into financials where there is
value. and i'm not sure what the market thinks. but i think that and then you want to own financials. >> but the consolidation in space, last week there was a lot of chatter, gilead and we alluded to it and it was getting press but it fell off a cliff. exactly to your point. >> xi jinping holding a joint news conference with president obama today. coming amid the concern of the health of the economy. michelle car urocabrera joins us now from washington. >> the chinese president was asked about the state of economy and he reiterated what he said in seattle over the last two days. he said the economy is under pressure but they are taking prudent macro and fiscal policies, monetary policies as well and china can continue to grow at mid to high growth rate. the good news is the two
countries were able to announce some kind of agreement on cyber security. >> i raised one again or very serious concerns about growing cyber threats to american companies and american citizens. i indicated that it has to stop. the united states government does not engage in cyber economic espionage for commercial gain and today i can announce our two countries have reached a common understanding on the way forward. >> the common understanding is that both governments agreed that governments about not commit cyber espionage to seize international trade secrets or intellectual property or nor will they allow other proxies to do it on their behalf either. but president obama made it clear that he wants to see action, not just words from the chinese. so it remains to be seen whether or not this is satisfactory before they talk about whether or not they might impose
sanctions in retaliation. >> we'll see about that one, michelle. i listened to part of the news conference and there was one question regarding the global economy and the chinese interventions and the impact. was there some sort of acknowledgment from the president that it does have ripple effects and that they are watching the ripple effects. >> he stuck to the same line that he has repeated in the written interview with the "wall street journal" and the speech he made on friday night -- i mean tuesday night in seattle. yes, there are economic headwinds and the situation with the dollar has caused ripple effects in chinese and they are trying to take policy action to stabilize things and keep the country growing. >> okay, michelle, thank you. michelle coming to us from d.c. tonight. okay, so let's talk about this for a second in terms of what president xi jinping said in terms of security. we've heard it before.
>> and what are they going to do. shake their finger vigorously at them. it has no teeth whatsoever. you can look at the cyber security stocks, they will continue to be the hot sector. people want to be involved in that. >> okay. here is a market mystery we were talking about last night. shares of nike. they surgeon better than expected shares in chinese. and caterpillar taking in part on sales in china and so which stocks are taking the head and so for every nike there is a caterpillar. >> there is no correlation between the macro and consumption. so i think starbucks is another great read in terms of where sales are going. the sales in china have doubled. they are opening more stores in china. they are in creasing across tea and coffee. starbucks said thousand strong china is. other than currency and fx headwinds, is it a drag.
it is a growth cycle for them. this is what you want to talk about. consumption, that is the china trade. >> b.k. >> we know, china told you, we are moving to a consumption-led economy and caterpillar, those type of names looking in the rear view mirror and i'm bearish because i think we have to work off the excess in the commodities and nike, starbucks like tim was saying, that is looking forward in china. >> grasso. >> it has to be caterpillar for me. >> wow! >> to push back, it has to have a leading indicator to it. you have six or else there is no use. otherwise we all die in the coal moan. >> i wondered what that meant. >> it has a six to seven month lead time. if you look at a chart, and you look at china, a six or seven month lead time. down 20% as china was ramping
up. that is where i want to see stability. >> freeport macmaran makes the -- >> so you're in the grasso camp. >> yes. i understand what they are saying. i want to go to consumption. but freeport macmaran and mckhan can't get out of the way. and carl ikan announced a stake and immediately trading $12. guess what now. the stock is below $10. he can fix many things but can't get people to buy the stuff they make. i think it goes lower. >> coca-cola going lower today. and could expectations fall flat. we'll break down the trade. and a stagger drop in ratings for one key demographic. a top analyst will explain why some stocks could head for a blood bath. and later, a rare cosmic event that could set us up for a
series of lucrative trades. much more "fast money" right after this. ctive management can protect capital long term. active management can tap global insights. active management can take calculated risks. active management can seek to outperform. because active investment management isn't reactive. it's active. that's the power of active management.
trades, deutsche bank, with a $45 price target. analysts saying the stock is firing on all sill enders and should over come the headwinds. grasso, you agree. >> when you look at the stock, last sell 39 and 3/4, and a handle on that yield and if you look fog something gaining for something and if you are hunting for that yield because you can't get it out of the federal government, the $45 price tagt is not a reach here. so they've done a great job at stirring away from the regular sodas. they have a whole host of other drinks to go with. so if you are looking for quasisafety in this market place you could still be a buyer here. >> are you still long. >> still long. and this is a name i might talk about later which is mcdonald's where you have a country with tremendous global brand and a lot of bad news in the price, expectations very low. sales growth low. i think these guys are changing their business. i would love to be in the name, if it could trade off more, i
would buy more. >> gee, are you a firing? >> you know, this was a $45 stock this time last year and trading $39. so i don't know what cylinder it is firing on. i understand what thur saying. but the stock is telling me something. i would sit this dance out. >> up next, the kids are not all right. when it comes to tv. this fall premiere has 22 less young viewers according to nielson. rich greenfield is the big media analyst and he joins us on the "fast" line. great to have you with us. how much worse is this going to get. where are they going. >> look, i think you hit tipping points, melissa. there are so many things to do now. you look at twitch tv and the online gaming and the growth of netflix, the household is now watching over 2 hours a day. there is so much great content to watch. when you look at amazon and hbo,
and showtime going direct to consumer, the problem is there is very little content on tv that you have to watch live tonight. why not just wait and binge a show and have the enjoyment of watching it episode after episode without commercials. >> so i get why you like netflix. that is the obvious beneficiary here. but in terms of the traditional broadcasters, is there value there? are there broadcasters that are making their way with ott offerings or because of the preem um offers like a showtime. >> there is no doubt what showtime and hbo going great to consumer is innovative but neither of them have advertising. i think you need to try to create and break a new show. all of the new shows are failing. empire came back to a roaring number and yes nfl came back to great numbers but traditional
comedies and dramas are struggling. if you want to look for who is thinking out of the box, look at turner. and i know that sounds crazy. turner just this week announced a deal with wme where they are going to do e-sports life on tbs on friday nights. so they are creating live event programming, not trying to compete in the world of comedy and drama and think of content that you literally can't get anywhere else. so this is original content that only airs on tbs. and if you want to see this event you have to watch it on tbs. that is a interesting different tact that we haven't seen from others. >> does that make time warner a buy? >> there is a lot of challenges to turner's over all programming. there is no doubt that the over all eco economic is struggling. and all of the talk about advertise leaves off the other part of the discussion, and that is subscribers to multichannel television are in decline. and i think the panic that set in in mid-august was after disney talked about the fact that cord cutting was accelerating. and so you can't look at
advertising or things that drive live ratings in isolation. the challenge over all is that kind of both core tennants of the core media eco-system, the advertise and subscription are under pressure and that is why we are cautious toward the whole eco-system and bullish and have buys on netflix and facebook, which is where we think engagement and consumer time is shifting. >> rich, great to speak with you. thank you. >> thank you for having me. >> ptig. if you are a believer in what rich said and it will be worse, it is harder to break new shows because of the ads, then it seems like a cvs, a viacom or -- >> disney. >> they have other businesses. >> but they are worried about espn and that is the real driver. so disney broke when there was concerned about espn and whether they could sell the ads. that is what you're talking about here. and the way disney has traded since the august 24th low, it rallies back up to the 200 day moving average and rejected
there. so that is the one i'm concerned about. >> i don't think disney is the one i'm really concerned about. what i'm concerned about is cbs. everyone thought with thursday night football coming back, would they have super bowl, they were going to garner attention from advertising but this is the channel and the name getting hit the most with the viewer ship. that is what is falling off the cliff. netflix up 109% year-to-date, that has to hold on to the par level or somewhere around there. disney, a little bit of a lead but i'm not worried about them. cbs is the true troubled one. >> all of this that favors netflix, that is in the price. all of disney that is worried about has been taken out of the price. i agree with brian. some of the time warner, that is hbo, and offers the most upside and that is the one i would go for. >> and we have a special report on twitch, coming up in the hour. and sales of iphone running at a record pace but stock won't
rally. what has investors so concerned. you're watching cnbc, first in business worldwide. in the meantime, here is what is coming up on "fast." >> something strange is happening with the moon and much like the tide some stocks could be pulled higher. plus -- you might want to. because the fed just did something that could make cigarette stocks smoking hot and we'll explain what that is later on. (vo) what does the world run on?
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♪ on the dark side of the moon ♪ >> stargazers will be treated to a rare cosmic event this weekend. a supermoon lunar eclipse. it happens when a full moon is orbiting at the closest point to the earth and undergoing a lunar eclipse giving it a reddish glow. so we asked the traders to make the tick pic that will send your stock portfolio to the moon. >> it is not going to the ploon. it is an all-time high. mcdonald's, mcd and david easter brook and kiosks and all day breakfast. and 20 times earnings, 3.5%
dividend yield and 3% away from the fresh high, and not tough to get there. trading great. >> it looks like m eclipse because of the graphic. grasso. >> home depot was my devine trade the other night so i'm staying consistent here. >> or being lazy. >> i'm staying with the winner. i'm staying with the horse that got you here. it is a 2% yield, up 11 and change percent year-to-date. and tour safe. if t if the stock market takes a hit, you will see less of a hit on this one. >> for me this is cvs, if the economy is slowing down, you still need to buy your shaving equipment. >> star wars. >> wait. there is more to it. >> captain's log. >> are we ready. so there is more to it. two things. it trades well with the strong dollar. most of the revenue here in the u.s. and $98, tremendous
tremendous support. so that is what you trade it against. >> this was a strange day in the market. it is moon on sunday, right? >> yes. >> you have john boehner offered to today. you know john bonham passed away 35 years ago today, i'm just pointing it out. very odd. very odd date. don't make a face at me. >> i'm not. >> and i'm talking about facebook. they report on october 27th and 35 times forward earnings and many say expensive but i say no because you have growth of about 35 times. i think facebook is going into or bit. >> here is a question. and i'll pose this to steve grasso, if you could pick your own cosmic trade, who's trade would you choose. >> if i could pick my own? >> if you couldn't pick your own. >> oh, facebook. without hesitation.
up 19% year-to-date. when the fang stocks -- she asked me. when they sold off, the one that was bought back -- the one that was bought back with momentum was facebook. i agree with guy adami. >> and guy almost got me once. once we found a way to get led zeppelin into "fast money." i think it is a good call. >> time for the final trade. around the horn. >> you have to watch the emerging markets. i think it is time to nibble. >> grasso. >> everybody is looking for the biotechin tex to show signs of life. it has to stabilize before you buy the market again so i'm looking at the biotech index, not to sell off dramatically on monday. >> b.k.? >> not only do we have a full moon but we have the equinox and that is a golden period and gold is the color, you buy gld. it held up despite the strong dollar. >> and you have the dan nathan guy, who love him, carter braxton work, sexy man and mike
ciao, and i'm watching the refiners because they traded well which means lower will go low and refiners higher. >> i'm melissa lee. enjoy your supermoon eclipse this weekend. see you back here on monday at 5:00 for more "fast money." in the meantime, don't go anywhere, "options action" begins right after this. stay tuned. this is the place. ♪ ♪ their beard salve is made from ♪ ♪ sustainable tea tree oil and kale... you, my friend, recognize when a trend has reached critical mass. yes, when others focus on one thing, you see what's coming next. you see opportunity. that's what a type e* does. and so it begins. with e*trade's investing insights center, you can spot trends before they become trendy. e*trade. opportunity is everywhere. so you're a small business expert from at&t? yeah, give me a problem and i've got the solution. well, we have 30 years
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and we're live from the only place the pope seemingly hasn't visited, the set of "options actio action". the guys are getting ready for the show. while they're doing that, here is what is coming up -- pretty much sums up the action to the apple new phone. so why did shares close lower. we'll explain. plus, online competition is coming to your tv and the world of medium sport may never be the same. we have a special report. and -- >> it is an entirely different kind of flying. >> that is what people are saying about the arms and one name in particular could take off. the action begins right