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tv   Squawk Alley  CNBC  October 2, 2015 11:00am-12:01pm EDT

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>> you never know these days with the markets. lots of intraday. twists and turns. with that we hand it over to you, carl, for "squawk alley." >> it is 8:00 a.m. at ham zon headquarters and 11:00 on wall street, and "squawk alley" is live. ♪ >> welcome to "squawk alley" on a friday. we'll talk to cara swisher in a moment, but, first, we have to talk about the markets. starting to regain some ground, of course, after a rough open. a disappointing read on jobs.
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142,000 in september. that is a miss, and more importantly, there were revisions negative for august and july. hours worked were down. earnings were nothing to write home about, and that's taken its toll on equities this morning. bob passan where i has more on that. >> good morning. what's interesting is we've really cut our losses in half. i want to show you the s&p. if you can see the volume, it would be better for you to understand what's going on, and we had a couple of volume spikes. put up the s&p. around 10:15 and 10:45 we just had a sudden whoosh of buy orders come in, and why the whoosh? a few people decided put in buy orders. if you can see the volume, and traders would say what happened? what was that? we just moved to the up side here. heeshz the markets mid-morning. let's say what it is. buy programs took the stocks off the lows. 2-1 declining to advancing. moderate to heavy volume. it can go either way here in the middle of the day here. what led the rally was health care. if you look at the xlk, big
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basket of health care stocks, that was the first thing to come off the lows. xlk went from negative essentially and almost into positive territory for a brief while, and that's the important thing. i'm talking about health care, not technology. let's take a look at pharmaceutical stocks. the important thing here is big pharmaceutical names led the move, and i know everybody is obsessed with biotech. biotech also moved up. those boring names that i watch carefully, the pfizers, bristol-myers, lilies and the mercks were negative when we started. they have all turned into positive territory. one other point, a few energy stocks have also done well this morning. even though oil is not doing anything, oil remains negative, chevron, for example, one of them, has moved into positive territory and is now contributing positively to the dow jones industrial average. >> the reversal in biotech and
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energy is one of the more remarkable things about this rally. we're going gang busters here because the morning looked very bleak. futures were up 109 prior to the jobs number and then swiftly down 200. >> europe was up two. europe sharply reversed its trading course. we're going to get more from simon on exactly the path of trading over there. >> the banks had been hanging on the edge of a potential rate hike. that would lift the value of bank earnings. the amount of money they are able to make on what they are lending. there's also the consumer standpoint. if the economy is healthy, consumer borrow more and put more money on their credit and debit cards, and that's good in for them too. not today in the market, though. >> micron earnings, we might have talked about more on a different day, which we'll get to later on. let's bring in cara swisher, of course, of recode. good morning to you. >> how are you doing? >> let's talk some twitter hoor. you reported that dorsey is
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expected to be named ceo. >> yeah. >> the question, of course, remains on the timing of all of this. what's the latest that you know? >> from what i understand and they're trying to settle the other executives, which we had reported in the piece, that it could be as early as yesterday, but it's in this time frame right now. the key executives adam bane and anthony nodo, the cfo and head of revenue, they're trying to figure out their status with the possibility of adam becoming coo of the company, and, yet, says nodo reporting directly to dorsey from what i understand. they're working that out. >> so, cara -- >> go ahead. sorry. >> this has been somewhat of a clumsy process from where i sit from the board's percent pictured. they came out and said we're not going to consider anybody who is not going to give full-time to the ceo position, and then it seems like that's exactly what they did, what they said they weren't going to do. what's going to happen with the board? you have already reported that we should expect for dick costello to step down from the board. there are a lot of other board members in there that are facing
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some criticism. chris sacca criticized board members on this program yesterday. what do you expect after this announcement from the board? >> i suspect there's going to be change, but not immediately. i know chris called for them stepping down, and there's a lot of investor eyre at some of them. if you do -- to be fair, the microsoft ceo search took six months, and then they ended up picking up the insider, and there were tons of names floated. in this case they did look outside the company. there is another ceo candidate that is called plan b that they've talked to, and they've talked to a number of people, and i have talked to many of the people they've talked to. most of them felt like it wasn't -- they didn't go far in the discussions, and they were all incredibly credible people who they talked to that i spoke to. i think they did -- they are making an attempt to do the best search possible.
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dwoent remember the search for microsoft's ceo. people forget these kinds of things. >> i wonder if you can put a finer point on whatsoever time frame we're looking at here? that seemed to be the sense of what moved this stock, what turned it negative yesterday was that as of wednesday jack was going to be named ceo. it was a sure thing. it was going to be announced the next day. then the time frame seemed to be -- >> that's not what i reported. i said as soon as today, and then everybody said next day. i think that what happens with this stock -- i think they were waiting until after the quarter ended, which was september 30th. >> it seems to be a relief rally. >> yes. >> just move forward, put this behind it. now do you think we're looking at more of a november, december announcement? >> oh, no. no. no. they can't -- no. not from what i can tell. no. i could be wrong, and i have -- i haven't been wrong a lot, but i could be wrong.
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this is going to happen. this is going to happen relatively soon. >> there were previous ones where they were going to be imminent in the summer, and i never thought that was the case. now i do. >> we remember that. some people argue that the people who could do this job are not interested. they already have better jobs. you do this job, you're going to be watched. it's a high profile gig. why this apparent derth of would-be candidates? sfroo that's not true. there's a lot of great names raised, and the people i have talked to who they talk to were all people that would have been credible candidates. you know, i think the "wall street journal" named beth comstock. that was an interesting name to bring up. you know, padma warrior from cisco was an interesting name they brought up. they talked about jim lanzone, and there are others that have been named. i do understand they've talked to several people quite seriously. i don't know what -- i haven't been able to find out what the
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disposition of that is, but it seems like jack has been running this company. he is likely to be the ceo. he is going to be -- i would be shocked if he wasn't the ceo. they're behaving internally as if he will be the ceo, and i think it's a question of the board trying to do its job by doing a search that is a credible search essentially. >> kara, is it your sense that the way jack has run this company over the past quarter and the response from the managers and executives internally might have been what tipped the board in his direction? it certainly seems like if you are starting off from a posture of we don't like the fact that he is actually running another company that's about to file an ipo, then you would bring in at least a couple of really strong candidates, have them make presentations to the board in how they would run the company and do sort of a runoff before focussing so much on the internal candidate who you seem not to want to focus on in the beginning. >> definitely. i think he has done a very good
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job. there's been some really interesting stuff going on within twitter. they do have this project lightning. they've started to do a number of things that they have needed to do around the product for a long time. he is a product person, and, therefore, that's where he focused. he definitely has the loyalty of adam bain and anthony nodo and kevin weil, the product person there. he has changed out product roles and things like that. he is behaving as if he is running the company. it would be really -- i think he is one of the people close to the search was telling me this is on the job training and on the job interview essentially. so i think he has performed relatively -- despite all this incredible, you know, public agonizing over this ceo role, which i think is separate from what they're doing in the company, but it's super hard when all this noise is happening to be able to do anything effective, it would seem, and this company attracts that kind of attention. you know, it attracts a lot of attention from wall street and from the media. >> oh yeah.
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a disproportionate amount. >> totally. totally. >> given its breadth and market cap. that's a discussion for another day. >> yeah. >> next up talking about amazon. the company says it will bar the sale of google's chrome cast along with apple tv by the end of the month, and amazon, of course, sells its own streaming device, the fire tv. the company said in a statement it's important that the streaming media players we sell interact well with prime video. it s there anything new about this, kara? >> i'm sorry? >> is there anything new or novel about this? >> i kind of -- you know, they're competitors, and they're putting them out of their marketplace. you know, it's interesting because amazon has two issues. they're a retailer that sells everything. whatever they have some motto that sells everything, except the things that compete with us. it creates the issues around them creating all these other products that are amazon products means that they're going to run into these fights over what they should sell. you know, the only thing you could also say should facebook
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have youtube on it? should google have this on it? you could go on and on in this area because there are so many people that are in each other's business. it's a very aggressive move by a very aggressive company saying we want to facilitate the sale of our products over other products that may be more popular. we'll see if consumers don't like that because when you go to amazon, you expect to buy everything you want or that's the feeling of doing that, and i don't know. it's interesting. what if they start making, wron, laundry detergent. are they going to knock out procter & gamble? it's an interesting move. >> could you add many layers to this debate. kara, it's interesting that amazon is choosing to do this now after having sold chrome cast and previous generations of the apple tv. do you think they're just threatened by the next gen products in the pipelines at these companies? do you think they just don't want to pay the 30% fee to apple if they sold their products through itunes? what do you think is behind this? >> i'm not sure. it's really -- i find it -- i don't know why they couldn't sell them along side of it.
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i guess they want to puff push -- they have a whole -- this is -- it's a daisy chain of stuff. they want to sell the products, use prime video, use their shows, sell the products. it's part of a thing. i just -- i guess apple doesn't really sell products by amazon in its stores. amazon is known as the world's retailer, and so it's interesting they would do it, but their competitors don't sell amazon products, so i guess it's fine. >> that is what to me is interesting. it's a very apple-like move. apple kind of wiped out products from its retail store earlier in the year that don't play nice with health, with home, et cetera. amazon has been known as the everything store, and now it's known as the everything but. if you look at the amazon rankings, number one is amazon's chrome cast competitor. number two is chrome cast. it seems to me let google stand
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to get the bigger blow from this because if you want to buy an apple tv, you know where you can get it. you can go to an apple retail store. can you go to apple's on-line store and get an apple tv. it was number five or six in the top seller ranking, but chrome cast was number two. they stand to perhaps take a ding here. roku could benefit. >> absolutely. kara, great week. wow. congratulation on all of your reporting, and it's always good to see you on fridays. >> thanks. thanks a lot. >> kara swisher of read code. when we come back, hurricane joaquin is trending east. it's still going to be a rough weekend for most of the east coast. we are live on the ground with an update. apple ceo tim cook touting one feature in particular during an interview with npr, and that's privacy. we're going to tell you what he had to say. we are keeping our eye on the markets. the dow is down 96, and the biotech index has gone positive. the nasdaq ten points away from breaking even after that disappointing jobs number. we're back in a minute.
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>> apple ceo tim cook is speaking about privacy and whether apple will ever offer government az back door to break its encryption in an interview with npr. josh lipton is back at headquarters with more. josh. >> well, john, privacy is a fundamental human right. that is what tim cook told npr. apple's ceo says that view
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reflects the tech giant's core values. >> our values are we do think that people have a right to privacy, and that our customers are not our products. we don't collect a lot of your data and nan understand every detail about your life. that's not the business that we're in. >> cook has said that they don't make money off advertisers targeting user wrrz that's a not so subtle shot at rivals google. he also talked to robert seagull about national security encryption and calls for a so-called back door or a secret door to access a computer program that bypasses security measures. >> any back door means a back door for bad guys as well as good guys, and so a back door is
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a nonstarter. >> for the u.s. government and other governments as well. >> for any government. i don't support a back door for any government ever. >> now, npr also pushed cook on rumors of that will apple car. of course, the "wall street journal" reported that apple has set a target ship date for that car for 2019. cook, though, did not bite on that question. apple stock trading lower today. down about half of 1%. guys, back to you. >> all right. thanks, josh lipton, with an update on that story. josh, thanks. up next, a rough day for stocks, but not as rough as earlier this morning. still, that weak jobs number, 142,000 jobs gained in september and revisions to the down side for july and august. what is the next catalyst for the trading day? well, it's usually the european close, and we will bring that to you on the other side of this break. so what's your news? i got a job! i'll be programming at ge. oh i got a job too, at zazzies. (friends gasp)
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>> hurricane joaquin is tracking up the east coast. the weather channel's side side is live in virginia beach with a very blustery look at how things are going. mike. >> reporter: good morning, kelly. yes, once again, we bring you the angry atlantic, and it's not really courtesy of joaquin, which is going to track off the coast here on monday, but so far off the coast that the only impact we'll have is the swell, or the waves propogating in. we had five days of this last week, which took out some of the beach. now we've got another, what, four or five days of it through sunday and monday, and then right here on the edge, you don't want to go any farther. here comes another wave up over the area. we don't have much beach left. we have what looks like now about eight or nine feet, and we're going to lose the fence
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here. it kind of collapsed into the surf. the waves are seven to eight foot in feet. some of the buoys off shore are running as high as 17 feet this morning. whoa. another slap in the face from the sea foam. it's not only here, but from the jersey shore down to the carolinas, the beaches are getting the brunt. this beach has not had beach replenishment other than like north of us and south of us, and then the other issue inland is the heavy rainfall. we're expecting some of the totals in south carolina to top double digits, and that could cause not only flash flood, but also river flooding, which could last into the middle of next week as all that water drains down in elevation down towards the atlantic. we've got that threat. we also have this big coastal threat. beach erosion. coastal flooding. some of that could be major at the time of high tides, and the high tides will be running three to four feet above normal through the weekend and possibly into monday. guys, gals, it's going to be
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like this for the next two to three days. it won't stop. you know, they are happy that joaquin is going to miss hitting the coastline, but they still are going to lose a lot of beach. this is how they usually lose most of the beach. a wind from the northeast that just blows for days and days. back to you in what i hope is a much pleasanter new jersey this morning. at least inland away from the jersey shore. >> thank you, mike. i'll stay away from the beach. it's well after labor day. let's get back to the markets. major turnaround after that disappointing jobs number. we're well off the lows in the major indexes, and bertha is live at the nasdaq with more. hey, bertha. >> hey, john. you know, the nasdaq has come well off the lows we saw at the open there. the nasdaq 100 actually moving fractionally higher for the two days. for the week we have the russell down about 3%. the nasdaq composite, it's down 1%. the story this morning is the
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big reversal we have seen on biotechs. we really came well off of the lows, and it's a very interesting story in the biotrek index. it has seen slightly higher lows every day this week. it's the third day in a row that we've seen this kind of reversal in the movement in the biotech index. well, it may be too early to call a bottom. you are starting to see some analysts step in. morgan stanley this morning find soming value. upgrading vertex. they're going from yaefr weight to equal weight. they're cutting gilead from over weight to equal weight. apple is down for the fourth day this week at a one-month low. amazon saying it will stop selling apple tv along with the google chrome cast ahead of its own debut of the new amazon fire device. china related stocks today, they've been higher out of the gate. really bucking the trend. wynn resorts and other gaming stocks surging on very heavy
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volume after chinese media reported that the government is considering measures to prop up gaming in the capital -- the gaming capital of mckoy. chinese internet stocks have also been strong on these stimulus speculation reports with c-trip, one of the chinese travel stocks. somewhere d.com has been a leader all morning as well. back to you. >> bertha, thank you very much. bertha coombs. we are getting word that secretary of education artie duncan will step down. that's coming from the white house. now word that president obama will make a personnel announcement at 3:30 p.m. this afternoon and possibly answer some questions in the state dining room. when that happens, of course, we'll bring it to you live. in the meantime, europe is about to close in three and a half minutes. simon, back to you. >> as you look at the map, the important thing to realize is europe was much higher at around 6:00 this morning. the paris market was up 2%. 1.9%. the affect of the disappointing employment report here and the
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fall on wall street has been to cut the gains in europe, which were led originally by the oils and the semiconductors. the other important point to make, of course, is that inaction from the fed in this country means it's more likely that the ecb will enhance the qe that it's involved in on that side of the atlantic. not least because it sends the election from the fed sends the dollar down and the euro up. that is deflationary, and it's also, of course, harms exports. in the currency wars, the ecb must try and bring the euro down by upping its qe. that's the argument anyway, and it's supportive for stocks anyway. just mft individual movers. volkswagen is down again today. the ceo in a letter to shareholders asking for patience. we've had credit suisse come through with a note suggesting the costs could be up to $78 billion. more immediately, vw is to appear before the house here in this country on thursday. television that's not presumably going to do the stock any favors. on the second week of their
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problem. volkswagen down 36%. the holding company, porsche, down 40%. the other troubled stock we have, of course, is glencore. the mining giant fell 29% on monday. it has been able today to recover some of that ground, as you can see, as a result of the meetings that it's had during the week attempting to reassure analysts and indeed shareholders. the credit ratings agency experion is another big loser today. t mobile ceo john ledger saying he is angry that 50 million of his customers may have been exposed due to a data breach at experion, and the stock is down 4%. finally, i want to show you the affect of analyst upgrades particularly in the beaten down german market. an textent to which it can affect a stock up the leaderboard. rta had an upgrade from sell -- just from sell to hold, and it's lifted both rwe and these are the utilities as the debate continues as to whether the german taxpayers will aid the nuclear decommission there.
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lufthansa has gone from hold to buy on the basis that it will face off with the pilots, and it will cut their pensions or it will go to a nonunionized carrier further down the line. it says that management is resolved to do that. in the meantime, guys, have a great weekend. >> tu, simon. simon hobbs. when we come back, stocks still in the red to the tune -- jobs number in september. as it's been pointed out off session lows, we're fwog get more from the former chairman of the council of economic advisors in just a moment.
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>> i'm sue herrera, and here's your cnbc news update this hour. police are searching for a motive in yesterday's deadly mass shooting at an oregon community college. pete williams is reporting that enforcement officials have found a hate-filled note left at the scene by gunman chris harper mercer. the white house says education secretary aron where i duncan will step down from his post in december. duncan is one of president obama's last remaining original cabinet members. the white house says duncan is being replaced by current deputy secretary john b. king jr. linked in, the company traveling across the country offering users to get a chance to get a free professional head
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shot which then can then upload to their profile. the tour makes its next stop in san francisco today. and is your cell phone killing your love life? researchers say constantly checking your phone and snubbing your partner is a big problem. 46% of people in their study said fubbing was causing a conflict in their relationship. that's the news update this hour. back to "squawk alley" and carl. don't be fubbing, carl. >> okay. thank you for the tip, sue. sue herrera back at hq. as sue has been talking, we've been getting word from going that will they are proceeding with the implementation of that new operating structure as of the close of business tonight. shares, as they reopen on monday, will be trading as alphabet c and a shares. not google c and a shares, all although the ticker will remain. not a conventional company, as they like to say. >> not at all. it's going to be confusing to trade alphabet under google, but we'll get used to it.
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>> schek in with rick santelli, and get the santelli exchange. hey, rick. >> hi, carl. thank you. i like to welcome my unemployment day guest, ed lazear. he is the former chairman of the council of economic advisement under george bush. thank you for ale taking the time. >> pleasure to be with you, rick. thank you. >> listen, you know, the economy's average 2.1% since the first quarter of 2010. not crisis type numbers. janet yellen and company didn't raise rates. we get a very weak number. we lose 59,000 over the last two months in revisions, but at the end of the day you need to reconcile that. did the window close for normalization, and is there going to be a cost to that as the world's glide path, and even at the u.s. potentially continue to disappoint in terms of the slope? >> well, i think, first of all, you know, what i always like to point out on jobs day is don't look at the current month in
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isolation. obviously, you know, one number doesn't tell you the whole story. there's a lot of error in every monthly number. in fact, the average error is about 75,000 jobs per month. you know, that means that things could be a lot better. they also could be a lot worse. your general point is an important one. you don't want to set policy on one month or one quarter's worth of movement. anybody who has done policy or who has studied policy knows that at best all you can do is work on the longer run. the attempts to try to remedy things in the short run always steer you in the wrong direction. on i think the problem we've seen over the past couple of
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years is that we probably should have gotten to a more normal level of interest rates so that we had a bit more flexibility right now. i know some of the other guests disagree with that. i think they're wrong. i think that you do need to think in the term of a longer run type of path, and we haven't been doing that, and i think that's part of the source of our problems right now. >> now, listen, ed. you and i sometimes end up talking politics, but it isn't what our favorite topic is, but it's hard for me to imagine, especially with the great cnbc debate coming up on the 28th, that the fed zero interest rate policy, all the extra debt in the world, and lackluster growth, these all have to be topics as we decide who is going to run the country next november. is that not correct? >> oh, absolutely. one of the encouraging things, of course, is that a few of the candidates have been talking some specifics. jeb bush, of course, put out a
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tax plan as did donald trump. some of the ingredients, i think, are very positive for economic growth, and in particular i always like the full expensing, not taxing capital, and jeb featured that as a major component of his tax plan. most of us who have look at that in the past -- this, by the way, is from both sides of the aisle. the tax advisors who worked for democrats as well as the tax advisors that worked for republicans find that those have very big affects on economic growth anywhere from 5% to 9% of gdp. those are big deals, and i think if the candidates push that, they'll be moving in the right direction. as you know, you know, some of the candidates are actually talking about doing the reverse. raising taxes on capital and increasing spending. i would argue that that's counter productive in terms of moving the economy. >> counter productive, where he. listen, right now whether it's hillary. better than where i sanders is doing pretty well. i can't imagine that spending all the money that better than where i sanders is going to talk about will be good. in the end it isn't just the
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fed. it isn't just the ecb. the globe has a lot of macroissues. ed, thank you for taking the time today. john fort, it's all yours. >> all right. thanks. coming up, shares of twitter recovering nicely. up more than 4.5%. now higher for the week after falling about 8% yesterday. we'll take a closer look at where the stock is going now that jack dorsey is expected to be named permanent ceo. right back.
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>> coming up today, what does that ugly jobs report mean for the markets and that fourth quarter rally? well, we'll discuss that with our panel of experts, including john rogers. after posting its worst day ever, drunkin brands gets an upgrade. we talk to the analyst behind the call, and our own donut expert. you can guess who that is. what is the massive emerging markets exodus mean for your money? we'll success as well. kayla, we'll see you in about 20. >> see you then, scott. thanks. after a slow summer, the ipo market is heating up. credit card processor first data is kicking off its road show with a meeting in new york city today. >> in the meantime, supermarket chain albert son's says it plans to raise $1.9 billion in its
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ipo. the company expects to price between 23 and 26 a share, and it expects to list here on the nyse, guys. we have more than a dozen ipo's in the pipeline in just the next 30 days. the debt isn't getting any less expensive. >> good enough. thanks. >> as rumors continue to swirl about twitter's search for a permanent ceo, all signs point to co-founder and interim ceo jack dorsey as the choice. yesterday creek sacca of lower case capital joined squawk alley, a vocal supporter of founding leadership. here's what he had to say. >> this board has been a disaster from the beginning. if you look at the history of the company going all the way back, it's the outside board members who fired both of the founders from this company. those are the founders who took this from zero users to 200 million users in just a few years. since then we've seen professional managers get
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sideways with this. yet again, i'm not shocked. i'm as upset as i have ever been, but i'm not shocked by this board continuing to screw it up. >> all right. well, joining us now is analyst for stern agcrt. arman, thanks for joining us. >> thank you. >> where do you see this news taking the stocks, assuming we do get jack dorsey in a permanent ceo position? a lot of people thought this was going to happen from the start, and jack dorsey himself in the last earnings call said everything we've been throwing at the wall in terms of product to get growth moving has not worked, and it's going to take a while for anything to work. does this make a difference? >> it does. i think the timing and the fact that he is really busy in something else as well, and that's square, the ipo coming up, but he has the moral authority. he is the founder, and nobody cares about the company more than he does, and he has the
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product expertise, and that's what this company really needs over the next 12 to 18 months. the solution is he needs to come in, and he needs to fix things that need to be fixed. meanwhile, i think he needs to find a successor. somebody that he can groom. whether it's somebody that's internal or somebody that can come in from outside, he needs to have a succession plan and then ultimately decide which company he wants to focus on because this company is going to need somebody dedicated, but i think given where we are with twitter, he is the right guy to fix things. >> at twitter or square? >> i think he has made it clear he wants to run square full time. he will be involved in the ceo role there, and while we have all seen examples in the past and somebody that he idolizes in steve jobs who is been able to manage two companies at the same time, jack might be able to do the same thing.
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time will tell. >> ultimately he will need to find a succession plan at tweter. >> the stock has been down since the company -- they would be launching a search for a new ceo. we just heard a couple of moments ago from kara swisher that he has been undergoing an on the job interview, some on the job training. i am wonder whatting impression you are getting from the last few months that would tell you that jack has done enough in that time to put himself in the position for this role? >> i don't think anybody can really make an impact that quickly. i think he would be the first one to admit that. this company has primarily a user growth problem. they've been clear that this is going to take a long time. probably 12 months before we really start to see any impact. he has been very quick.
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to expect an impact right away, i think, is expecting too much too quickly. i mean, in the near term, if you are saying this is going to take time, what is the catalyst for the shares? i mean, barring a sudden acceleration in mau's. >> i think that is it really. we need to see an acceleration in nau's, and outside of that, the stock is going to trade sideways, which is why we have a neutral rating on it. if they can make it easier to bring people on, which is easier said than done, but if they can get the mau problem resolved, all of the talk about the board, the vc's, that's all extraneous. that will go away.
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it's really that fundamental issue that they need to resolve. do you think we've seen the bottom in twitter at least for the time being? >> the upcoming quarter will tell us if things deteriorated from where we were three months ago or were stable. unless we get some stability in the business and as ceo, people are going to continue to wonder. >> have a good weekend. thanks for joining us. >> thank you. >> up next, stocks are still falling, but they have gained a lot of the ground that they lost earlier in the session in just the last hour. currently the dow is down by just 92 points. we'll take a closer look at what the rest of the day will hold for the markets in just a moment. mornings. wonderful, crazy mornings.
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>> oil and gold moving in different directions. jackie deangeles is watching that over at the nymex. good morning. >> hi to you, carl. that's right. you know, we watched that jobs number turn equities around, and that, in turn, took a 1% pop for crude oil and put us in negative territory. we're trading over $44 right now. 44 and change. when the data is not good, of course, oil traders worry about demand, and that's why oil is selling off. note that oil turned lower despite the fact that we do have a weaker dollar today. alternatively, another reason we're moving lower, because the products are moving lower. we're getting more information on the hurricane, and we're looking at the paths that it could possibly land, and we're seeing that refineries probably will be safe here, so when the
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products move lower, crude goes down as well. lastly, we're looking at the technicals here, and you will see if you look at the one-month chart of crude oil, we're getting lower highs and higher lows. this opinionant shape formation, which is typically indicate of break-out, whether it's the up side or down side, i can't tell you, but the last time the shape happened we were at $60, and we touched the three handle. traders think it's possibly to go higher this time, so it's something to watch. on the flip side, gold off of this, you know, potentially dovish fed not raising rates, getting a bid of $20 today. back to you. >> all right. thanks, jackie deangeles at the nymex. the markets still in the red. the dow is back in tellingtive territory by triple dinl its, but for more let's bring in kevin, market strategist at steifel private client group. it's good to have you this morning. >> thank you for having me. >> you heard jason of the president's council of economic advisors describe today's jobs report as basically the matters of the rest of the affect the u.s. that is just plain and simple.
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i'm wondering, given the fact that none of those events are going away any time soon, is this the beginning of a weaker u.s. economy and u.s. business cycle? >> we wul hoped we would see a better break-out. the shock to the market in late august, higher risk premiums, and obviously what's happening is that the data -- is that the issues that are happening overseas manifest in currencies, slower economies over seas. that's now coming home to roost here in the united states. will t will have an impact in terms of monetary policy, et cetera. >> as much, ken, as we focus on what's happening in the stock market, really the bond market is telling the story and telling it correctly. the two-year is half of 1%.
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the feds fund futures are pricing in june. is that what you are looking at right now? >> you will have a slower path as far as raising interest rates. what you have seen over the last couple of weeks, you actually had some comments out of various fomc measures that they still want to move forward with raising interest rates. if you keep moving lower, then the fed may have to move higher, more sharply, and they don't want to do that. the market is pricing in a flatter trajectory out of here. the data today, the data on manufacturing yesterday seems to support that. there's a friction now that's occurring between what the fed seems to want to do and what the data seems to be dictating. do you buy into utilities, health care, the defensive dividend payers, auto or do you go out on a limb and buy financials and discretionary because you still hope that the u.s. story is one of the strengthening economy where we
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will see interest rates rise? >> yeah. i think the final demand here is going to remain relatively decent. i know that the job number today was a little bit light, but it doesn't mean that demand is falling off the table. i would say, though, after three years where higher torque, higher beta sectors and stocks have been working, it does make sense to go back and look at some of the areas that are more defensive. not so much for the defensive characteristics, but because simply owning a company -- a portfolio of good quality companies that are producing stable results are not -- it's not a bad strategy, and those have kind of lagged behind the last few years. i do think utilities make more sense, and i think you look at some of the consumer names. they make a lot of sense here too. >> kevin, i think at least seven wall street firms have cut their targets for year end versus what they expected at the end of 2014. we're beginning to see some calls like ubs saying the market has managed to digest a big miss in michigan.
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boehner's resignation. also other negative news that we got today. september, was it a complete disaster? the s&p has held that they think the bottoming process is beginning. are you willing to go that far? >> i think that from here maybe a year from now we're looking at relatively low returns. maybe 5%, 6%, 7% looking a year out from where we are today. i'm not willing to make a big bet that we're going to have some enormous rally between here and the end of the year just because we had a couple good bounces. for example, the market performing well because of boehner, for example. i don't think that that's a huge -- i don't think that's a huge issue or anything to key off of. i do think that the data is very mixed. i would be very -- i'm cautious on the equities side in terms of asset allocation, portfolios. the asset allocation call we're exactly even with our benchmarks right now. we're not making any big calls between now and the end of the year. >> of course well, still have the debt limit fight to look forward to, but for now we'll
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leave it there. kevin from steifel, we appreciate your time this morning. >> thank you. in the meantime, elam musk is speaking at a nasdaq event. insight energy, a solar city event. our mount st. helens wra lee is reporting that musk says he saw a big jump in orders for the model s and the model x. he also says it may have been a record day for model s orders. tesla stock in a difficult take has had a difficult day so far. currently close to session highs. up about 1.6% at 243. there's a picture that mount st. helens wra tweeted of musk a few moments ago. >> of course, we're still looking for that 55,000 delivery number for model s's. we'll see if that jump in orders gets them close to it. >> when we come back, some dramatic movements on the markets today. best illustrated by the dow clawing its way back from yesterday's levels only to stall short of just reaching them. we'll have more insight as to why in just a moment. year after year. then one night, you hydroplane into a ditch.
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>> welcome back. a few names we didn't get to. micron reported last night 37 cents does beat by a nickel revenue ahead. they see demand stabilizing soon and maybe growing next year. john, interesting. >> that is interesting. sandisk up quite a bit for the week in that same wheelhouse.
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i want to mention go pro, box, and apple all had big news this week. all were down quite a bit. go pro and box, all-time lows. >> all right. it's friday. i can't believe we made it all the way to the end of the week. have a great weekend. see you monday. let's get back to headquarters. scott at "the half." ♪ >> carl, thank you. welcome to "the halftime show" on this friday. let's look at the starting line swrup. jim is here along with steve weiss, john, michael block of rhino trading partners, and cnbc's steve liesman. a game plan today that looks like this. exit strategy. stunning new numbers of just how much money is fleeing the emerging markets and what all of that means to your money. calls of the day as the stock -- as the street moves on dunkin, google, and facebook. our experts serve up their own hits and misses. we begin with the sell-off on that jobs report and what it could mean for the markets in the weeks ahead.

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