tv Power Lunch CNBC October 2, 2015 1:00pm-3:01pm EDT
back up to 210. >> i think we'll start to get commentary about earnings reports. >> mr. block? >> key levels like steve is watching. the fed minutes. we'll see how hawkish they are. >> great week end to all of you. see you on the other side. "power lunch" begins right now. welcome, everybody. to "power lunch." stock making a big comeback at this hour. the dow wiping out big triple-digit gains as the comeback gathers steam. up about 47 points. >> incredible turnaround. another month of weak jobs growth. is the u.s. economy running out of steam? and how the latest data plays into the fed's plan to raise rates. glencore down 70% amid the
global commodities crush. and tracking the big storm. hurricane joaquin phoenix may miss the east coast. we're not out of the roads yet. >> stocks wiping out the big losses there this morning. the dow was down as much as 258 points earlier. now it's up by 44. the s&p by 5. let's get more. what's behind the turnaround, bob? >> initially, the trades can't decide if bad news is good news again. i want to show you what happened. take a look at the s&p 500. we dropped more than 20 points on the future. we gapped down at the open for the s & p 500. i think europeans look to the u.s. for growth help, they initially thought that this might be good news. it wasn't. they, too, also sold. but then, things turned around.
if you put up the s&p intraday, we had a series of strong rallies about 10:15 or so. every ten or 15 mine out-- minu, spikes. you can't see the volume here. the dollar is notably weaker. that's a big help to global multinationals. e emerson, dover. inger sol-rand. we're seeing the building products company. owens corning. u.s. gypsum. and mohawk. how ridiculously oversold health care has been. particularly the big names. the hmos, the hospital names they have had a notable
turnaround in the middle of the morning. another one, there you see in health care. another one with the turnaround is all the energy names. even though oil, and i think this is very important. oil is not rallying. big energy names are. chevron has been helping the dow out. the one sector, obviously, lower rates. not helping. banks are down. the big banks are off of their lows. i think initially, a big group disappointed, particularly europeans. they were selling initially. now the crowd is looking at it saying, dollar better, some things will be a little bit better for invesers right now. back to you. >> already. thank you very much. brian sullivan? >> time for the weekly recount. we may finally be seeing the impact on drilling rigs. baker hughes reporting the number of oil rigs dropping by 26 last week. we have seen declines of three the last week. six the week before. maybe two or three up.
this is the biggest drop we've had. we were down about 15 cents a barrel before the number came out. we're now up 40 cents. about a 50-cent swing. 26 oil rigs falling week over week, according to baker hughes. maybe finally, the real slowdown in future production. >> thank you, brian sullivan. a reversal of bioteches. the ibb. we've been on very close watch. it's currently sitting up by 2%. let's get more from bertha coombs. >> alex yan pharmaceuticals and vertex farmer are the big gainers. the pair are up about 10% for the week. the stocks remain in bear market territory. they're down about 20% from their highs. as is the nasdaq bio tech index.
quite a reversal for the week. you look at the one-week chart. crashing through the august 25 lows. we have seen the reversal holding the low levels and moving higher. on pace for a weekly gain. chip stocks, also moving higher on pace for weekly gain. memory chipmaker micron posting a smaller than expected loss. amd moving up, too. they're restructuring and cutting jobs. wynn resorts are the biggest gainer. china's casino capital is lifting a number of chinese stocks as well. back to you. >> thank you very much. so, the u.s. economy posting another month of weak jobs growth. how will the latest numbers influence the fed's plan? steve is here. not that yellen had the jobs data at the time of her decision, a lot of people are
saying she's being vindicated. others are saying, the feds missed the window. >> some people said they were going for a global third mandate. it's affecting the u.s. economy. here are the words we use. awful. lousy, and terrible. just some of the adjectives used to describe the jobs report. those are the ones we could use on family television. there was nothing good about the jobs report. it's come the see 200,000 as the standard. anything below that is, you guessed it, sub standard. nearly every piece of the jobs report missing expectations. 142, we were looking for 200. 59? we were looking for 60 to 100,000. average hourly wage, looking for 0.2%. unchanged. unemployment could have gone down to 5%. you had a lot of people leave the work force.
labor force participation going the wrong way. morgan stanley says, ugly report. bad payrolls. bad house hold survey details underlying a stable report. goldman sachs. we see a december raise hike as a close call. steven stanley, one of the more thoughtful out there said i'm highly dubious. retail up 24,000. a good sign for consumer spending and construction housing helping out the economy. look at mining. down 10,000. you heard brian sullivan on the rigs report. manufacturing troubled by the strong dollar and overseas weakness. the good news? we don't have to fret about a fed rate hike for the october meeting. november 6 sth the next jobs report. we'll see if the current weakness does a three-peat. >> i'm starting to hear the -- >> october is in bed.
>> i'm hearing q.e. four. >> somebody sneezed when you said that. say it again. >> q.e. 4. >> i think the fed will tolerate some weakness. it will work through the economy. it will provide stimulus, so to speak, by not hiking. i think they're a very long way from believing the economy needs additional stimulus. it's low right now. it thinks rates are accommodative. a large part of the board wants to hike rates. they want the data. they don't have it yet. >> october is off the table? >> at this point, off the table. >> thanks, guys. treasury yields moving big. let's take a look. yields on the benchmark ten-year note dropping below 2%. they're up a little bit from this morning. the first time since august 24
they've been that market plunge that they've been this low. now at 1 pnd 979. almost 1.98%. how are these falling yields affecting mortgage rates? diana olick is tracking them. >> it's the link. the short answer is, they're pushing them down decidedly. as mortgage rates loosely follow the ten-year yield. we started out at the high for september of 3.292%. now we're coming down. you don't see it in the charts yet. this from mortgage news daily. some lenders at 3.625%. this will have a much bigger effect on refinances. we have been low on rates for years. there are still some unable to refi before. on the buy side, we certainly saw a jump in rates in the
summer of 2013 hurt home sales. it doesn't work that way in the opposite. we have tight supply in housing. the jobs number is a negative for housing than the lower rates are a positive. >> thank you, di. seema mody with a market flash. >> sick mother's takeover talks have stalled with chico's. that's akouding to reuters. this is the second attempt this year of sycamor toerks te to tr acquire chico's. what is that? it's a picture in astronaut scott kelly. it's hurricane joaquin. there's another big storm causing flash flooding in the
east. here's mike seidel with the details. >> the baeches are getting battered for the second day in a row from the carolinas. this will continue all weekend. the strong northeast wind having little to do anything with hurricane joaquin, which will stay safely offshore. on the south side of virginia beach, we have lost a lot of sand. with each high tide, we're losing more. the big concern is the beach erosion. winds at 40 miles an hour gusting. we may have power outages. down into south carolina, the boat load of rainfall will add up. we could have double-digit total there is. most of virginia into north carolina and south carolina under flood watches through at least sunday, if not monday. with all that rain and the rain they've had, we could be look at catastrophic flooding. virginia beach, meteorologist
the wall street journal reporting sprint will cut as much as $2.5 billion in costs over the next six months. that involves job cuts and a hiring freeze. the stock is up 3.5%. about 50 million t-mobile customers are victims of a data breach. it affects customers who applied for t-mobile device financing or postpaid services. the stock, little change. we continue with the september jobs report. revised lower. is the economy headed in the right direction? joining us as they do moat months, mark moreal. we have ron christy, ceo of christy strategies. and former special assistance to george w. bush. what you to think? are we seeing the real effects of the international slowdown?
how worried are you that this may presage a rather soggy economy? >> it's a disappointing report. the job creation we like to see and would expect did not occur. the effects of europe and china are affecting the american economy. and, the fourth quarter may be a continuation of what i would call growth but stagnant. not what we need to see. not the robust economy to lift wajs and put all americans back to work. >> ron, your thoughts? >> i agree 100%. this is a disappointing report. the ripple effects from china have come across to the united states. the revision downward of 59,000 jobs is a disappointment. having just over 142,000 jobs created is not enough to sustain the growth we need. we have far too many people out
of work. we need to find a way, across paertd parties and with the private sector leading the way, to create jobs. >> the country needs most, i think we would all agree, solid jobs growth, wage growth, and economic growth. in the second quarter, we got nice growth. 3.7% or something like that. ron, let me ask you, we have another debate here in the next few weeks. the republican candidates will be right here on cnbc end of the month. and all of them have varying tax proposals out there. whose tax proposal do you think would be the best to generate growth? >> believe it or not, ty, i like a lot of what donald trump has to say. the consolidation of the marginal tax rates. lowering of the business tax to 15%. i like what he'll do with capital gains. certain dividends. you look across the spectrum,
his plan has a lot of merit. >> mayor, i know you don't have a dog in this fight, so to speak. what do you think of those -- and there are a lot of -- they're all across the board. some calling for a value-added tax. some for eliminating the social security taxes. what do you think in terms of the growth potential of the tax proposals? >> let me address the trump proposal. it's really rubbish. it's stale ideas rewarmed and repackaged. it would benefit the highest income americans. it would increase the deficit substantially. having said that, i believe the people of the nation are open to new ideas. when it comes to tax reduction and tax reform. that would have the effect of growing the economy and helping the pocket books of all americans, not just the
americans at the top of the information scale. >> how would you do it? if you could nail one or two little points? >> i would do an assault on tax loopholes. reducing tax rates. adjusting marginal tax rates would have to be combined with an assault on special interest loopholes. and a trillion dollars in the swiss cheese holes in the american tax code. we should focus on reduction of what i would call tax rates for working middle class americans not for those at the top of the spectrum? it's got to be combined with reductions, loopholes. all of these things that have come in through lobbying. >> ron, are there enough loopholes, as mayor moreal calls them, to make the tax plans
whole? or if you want the lower rates, you have to restrict the kinlds of deductions that many americans, not just businesses, people with mortgage deductions, charitable deductions. the costs of health care opinion those are things people hold pretty dear. >> funny how you say that, tyler. the devil is always in the details. folks talk about corporate loopholes and special interests. almost everything you mentioned tends to benefit folks in the police departmental class. i think we could close some loopholes. repatriating. >> thank you very much. hope the storm doesn't hit you too hard in d.c., ron. >> thanks. don't forget, everybody. cnbc hosts the next presidential debate. october 28, in colorado. the same day as the next fed meeting. a lot to talk about then, mandy.
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and welcome back to "power lunch," everybody. what a week for glencore stocks. shares plunging at the beginning of the week. rallying toward the end of it. questions persist about the health of the company. kate kelly is live in london. hi, kate. >> hey, tyler. another active trading day again for glencore in london. right behind me, it operates a large office where the energy unit is based. that's drilling as well as marketing, buying and selling energy to customers all around the world. that trading unit in particular, as well as the company's old balance sheet is under scrutiny. the threat of default swaps which would pay the holders in the case of a drop.
we did see some levity on news of thing are ing a ri kuing aril sale. that, plus a separate deal they're close the finishing, the sale of the so-called melt tall streaming business for about $1 billion is close to fruition. sometime in october. that will helped get their debt down. it stood at about $30 billion of late june. they're looking to get it to $24 billion by tend of the year. lower than that in 2016. the ceo and his top officials seeking so reassure equity and credit investors this week. an all-employee memo was sent out on tuesday. they have $13.5 billion in as yet undrawn credit lines. in addition to that, they have about a $15 billion bank credit revolving facility that they
don't need to worry about for another year and half or so. and, dha have some $50 billion in short-term credit that essentially backs up the marketing i was talking about. this shipping of car goes aroun the world while they're in transit. it's a highly leveraged company. that look like what the market is going on. >> thank you very much, kate kelly, live in london. getting america back to work. cnbc travels the country to show you where the jobs really are. which companies are looking for workers for higher paying skilled jobs. as we head out, a look at the widely held stocks. "power lunch" is back in two. don't go away. cannot be controlled.f hay when a wildfire raged through elkhorn ranch, the sudden loss of pasture became a serious problem for a family business.
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caused by hurricane joaquin. new details about the gunman from yesterday's chej shooting. chris harper mercer served one month in the army in 2008 before being discharged. prison officials received the wrong drug for lethal injections in oklahoma. mammoth discovery. a michigan farmer thought he was digging up an old fence post when he realized it was the skull of a woolly mammoth. think think it was from 11,000 to 15,000 years ago. breaking news from the fed. let's go to steve. >> thank you very much, tyler. federal reserve vice chair stan fisher making no comment on current policy. he does talk about the monetary policy in financial crisis. policy can be used to curb
financial stability at times. i want to throw out this quote. i also struggle in trying to find consistency between the certainty that many have that higher interest rates would have prevented the global financial crisis and the view that interest rates should not be used to deal with potential fnl instabilities. if you thought that the rates were too low and caused the financial crisis, maybe you should think about using rates to deal with financial instability now. he says there are no acute rirvrisks to financial stability in the short term. he says u.s. regulators lack some tools to combat stability. he criticizes a number of the regularities. he's certained about activity levering regulated institutions. james bullard talking in the last half hour. he's the first fed official to comment on or after the jobs
report this morning. he says the fed ought to focus on cumulative progress, not month-to-month job reports. >> he's been among those who said what the chair has said. he expects the conditions to be appropriate to raise rates sometime later this year. right? >> that's where he is. an interview from jackson hole. >> steve, thank you very much. let's take another look at the two and ten-year notes. the ten-year this morning, dropped below the 2% mark after the disappointing jobs number. currently at 1.979%. the two-year note a 0.577%. and in a programming note, the former federal reserve chairman, ben bernanke will be on "squawk box" on monday. gold had been down.
prices are up by 22. about 2%. sitting at 1136. so gold, i believer, if first positive day in about six. jackie, tell us more. >> g >> good afternoon. a big day for gold. $25 move or almost 25 bucks is pretty good. we've been stug in a range of 1100 to 1150. we're still smack in the middle of the range. having said that, where do we go from here? gold could go higher if the dollar continues to weaken. at the same time, we could see it go lower. that's been the pattern lately after we get a big move like this. traders do think we could move to the upside, maybe test the 1150. they're not very optimistic of the significant breakout to come. as you mentioned, i think we're going to get close to the record of from august 20th. i don't think we'll get to that 2.25% move that we were looking for today. having said that, still positive
in six days. we'll close negative on the week. back to you. >> thank you, jackie. seema mody with a market flash. have shares of united airlines are down 2%. a union is accusing them of dragging their feet in stalled talks. the union has been in negotiations with the company since nf 2012. the stock is down 23% this year. >> let's take a look at where the markets stand right now. a bit of a reversal from earlier in the day. and how. a major reversal. the likes of which we haven't seen in quite some time. 16,341. there's the s&p at 1932. bob, go first. >> i want to show you the s&p 5 500. actually the spdr.
the circles are volume spikes during the morning. we had a big initial selloff. down about 20 points. and then, just about 10:15, volume in spikes. every time we saw a buy program come through, the market moved up. why? there wasn't an awful lot of sellers. you get a lot of entirbuyers, t markets go up. why did that happen? look at the markets midday. we had europe disappointing. multinationals. take emerson. put up emerson, please. emr. there's a two-day chart of emerson. a big gap at the open. people looked at the multinational, a weak dollar, great for multinationals. all of them started turning around. same situation with merck. we had oversold conditions.
most of the big pharmaceuticals. that was one of the first groups. the first group to go public. the other group with a notable turn around was energy. energy stocks moved. despite the fact that oil did not move. oil has moved into positive territory late in the day. chevron is benefiting. chevron and all the big oil stocks moved well before oil started moving to the upside. the bottom line here is up in of these are happening on particularly heavy value yum. we're seeing the opposite of recently. today, not a lot of heavy selling going on. >> let's get a look at the tech stocks. >> it's too easy to call a bottom, ty. but biotech, a big reversal. the last three days, we have seen this. an awful lot of strong volume
there. now, biotechs, after cratering on monday, are set to be fractionally higher. higher for the week, the nasdaq. apple turning higher as well. when you look at apple, for the week, it's just another tough slog for am share holders. once again, it's the laggard here as far as tech stocks. notwithstanding record sales of the iphone 6s. some reports that am might be cutting back on chip purchases. you look at the fang stocks. facebook, amazon, netflix, and google. the first three out of the correction level losses.
down less than 10% from their highs. and netflix which is up 4% this week. we have had an awful lot of discussion in new york. ad week. what tirzs are looking for. advertisers are looking for. a bit of movement. >> a bit of movement indeed. thank you. so as the market turns around, sit a sign that the stocks will rally in the fourth quarter. joining us, bill stone. chief investment strategies at pnc. and joe from be essemer trust. bill, jobs not what we hoped. steve saying we could probably put october to bed for a hike. what does that mean? >> you can stick a fork in october. you know, while it, you know, certainly is not a positive note for us, because we were hoping to see more momentum here, we're still believers gnat the u.s. economy is not giving out. this is just one data point.
the consumer still looks good. i say other employment data looks to be holding in there. housing. what does it mean in the end? i think you can make an analogy to 1998 and 2011 where you saw double-digit selloffs in the s&p 500 in the third quarter and went on to have double-digit gains in the fourth. i would say don't throw this year away yet. i think, as you see better data, i think stocks may actually perk up a bit. >> bill, just picking up on what you were saying, maybe the u.s. economy is not giving out. per se. but at the same time, for a long time, investment strategists have said, they like the u.s. compared to other places in the world because the u.s. is like an island of decent growth while everyone else struggles. is that giving out?
>> i don't think yet. you can't say that yet. yesterday, we got auto sales numbers reaching new highs. certainly for a few years. the other part is wait until next week when we getd the ism nonmanufacturing. certainly, the manufacturing side is getting softer. i think we all knew that before. hopefully, we'll see that the services side continues to hold in very well. >> what about you, joe? has anything changed? your thinking? towards your investment strategy after you saw the jobs print this morning? >> no, mandy. nothing has meaningfully changed. the number this morning was clearly a disappointment. i don't think we want to shoouger-coshooug suga sugar-coat it. it's only one number. a few thix ngs we know and don' know. the consumer side of the u.s. economy appears to be doing well. the drag on the manufacturing
side has stemmed from a strengthening u.s. dollar and weakening u.s. oil prices. both of those appear to be stabilizing. we're heading into the holiday season. the consumer is well-positioned to step up to the plate. we certainly don't want to dismiss the number that we got this morning. but all else quaul, we continue to believe that markets will move higher. >> not to energy or commodities. would you still underweight those? we're not quite as the reflection point for positivity? >> i think we're getting closer to finding a bottom. i wouldn't dare call a bottom in oil prices. we're seeing encouraging signs. the number we just got was encouraging. u.s. production anymornumbers a finally rolling over. it's difficult to get excited about the asset class considering the growth concerns from china. i'm not so sure that we're done
with that yet. as we look to position clients around the world, we continue to favor risk. i don't think the underlying fundamentals justify the drop we ve have seen in equity markets. >> thank you, bill and joe. enjoy your weekend. you can go to powerlunch.cnbc.com to see how bill is playing the earning season. the bond report. a busy day, rick. >> yes, very exciting day in the fixed income markets. futures and options. looking to enter day two down seven basis points. it's staying down more. the ten-year is down, too, but they're moving back up a bit. back to april 26th, the last time we were down here was the 27th. the last time we settle anywhere near 2% was august 25, as you see on the chart. it's not a fait accompli.
we're going to close at 2%. we're hovering at 1.98. you look at the counterintuitive. fives versus 30s steepening now. the dollar is coming back a bit. i'm not sure what the fed or central planners are afraid of. the market adjusted, obvious by the effects. tyler, back to you. >> all right, rick. have great weekend. 142,000 jobs created last month. well short. there is one area projected to see a lot of growth. mary thompson has that story. hi, mary. >> reporter: hey there, tyler. the government expects jobs here to grow by 24% by 2022. i'll have that story coming up after the break. i'm here at the td ameritrade trader offices.
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welcome back to "power lunch." novartis has received fda approval for a like drug to amgen's arthritis drug. a new share repurr chance program for in orderstron. the maker on semiconductors, amd, expects to save about $58 million next year. the stock is up by nearly 3%. let's get to seema mody for a market flash. >> hey, mandy, shares of keurig green mountain. the firm cut the single-serve coffee machine's price target
two days after the soft drinks maker cold was launched. the stock has had a tough year. keep in mind, down almost 60% since january. back to you. >> all right. it was a disappointing jobs report. there is one area that is expected to show a lot of job growth over the next few years. it's all about wind energy. in our latest installment of "where the jobs are." and mary thompson goes and finds them. this time, she's in sweetwater, texas. >> reporter: i'm at the turkey track wind farm 300 plils west of dallas, texas. you can see some of the 161 turbines behind me. in nolan county, the home of sweetwater, there are over 1300 turbines. the big numbers mean steady business and a steady need for the wind technicians that repair, service, and install the
turbines. >> it's a specialized service that we provide. there are not many folks out there and to, if they're looking, we're hiring. >> von the ceo. he's looking to expand his work force by 10 to 20% this year. that includes hiring up to four new wind technicians. the bureau of labor is it a 'tis, says the need grows 24% from 2012 to 2012. it's off a small base of 3200 jobs. those 800 new hires will be well paid. >> you're coming in as an entry level job. probably $40,000, $45,000 a year. there's an overtime element. you can get up to $60,000 or $80,000 a year. in a few years, it's not uncommon to get to six figures quickly in this field. >> driving the growth, a 154%
increase in wind-generated electricity from 2008 to 2012. the energy department's forecast to have wind double to 10%. helping to drive this adoption has been a dramatic decrease in the cost of prousing wind energy. right now an investment bank says producing electricity through wind is almost as cheap as coal and gas, without the federal subs dies that have supported this industry for so long. back to you. >> very cool. and very majestic. still ahead, the five stocks you might want to consider owning following today's jobs miss. we look at the sectors right now. energy is leading. up by 2%. telecom and financials are
welcome back to "power lunch." stocks staging a turn jrn around. the dow was down. energy, materials, and health care are leading the gains. chevron and caterpillar are leading the dow. we have seen a lot of market volatility. where are the big money managers putting their cash right now? we'll talk to one with $346 billion under management next.
all right. hi, everybody. coming up at the top of the next hour, what is holding back the job market? we're going to lay out the pros and cons of the uncertain economy. and more in this uncertain stock market. our standout stocks of the week. and the latest on hurricane joaquin phoenix, as tyler calls it. >> not my original idea. ly not take credit for that. thank you. let's get back to the markets. you're seeing a big recovery. following this morning's selloff. up 43 points.
jim is ceo of principal global investors. $346 billion under management. i don't want to waste your time. does it take a rate hike off the table for october? yes. i want you to give me three smart ideas of ways i can make money over the next three to six months. >> one would be u.s. small and mid cap. the reason i say that is earnings are domestic. and the domestic u.s. economy, it may not be growing as fast as people want it to, but it's growing faster than other economies in the world. >> so stay home. >> stay home. >> before you get to number two, which sectors? >> i think anything domestic. from the consumer to manufacturing. to aerospace suppliers. the things the u.s. is good at is aero space. software. entertainment.
anything in those should be a good place to be. >> number two is? >> probably tack. it's boring to say so. but the big tech companies are modestly rated. what it's apple or ibm. i thing they'll be just fine. i would avoid the highly valued social media stocks. i think those are kind of dangerous. they're too high. the winners will do very well. they won't all be winners. the port toll folio may be a das thing to have. >> number three? >> i'm rung out of ideas. i would stick to the bond market. some of the fears around credit have been overstated. we have events out there. volkswagen makes the car, the automobile sector and its suppliers a lot more dangerous. you have seen glencore. i was surprised it took so long to see a meltdown in the commodity-based stocks. the banks will have problems with commodity lending.
generally in the industry, generally across the economy, credit is improving. investment-grade credits are at the y.e. for the year. they're not in a bubble. >> is china, are the emergencying markets in a void? >> they are in a void. the problem that line that has and brazil has. in the near term, debt has grown faster than economies. they're indebted. we are in the u.s. we have a productive economy. they don't have the pruk tifrty to pay off that maxed out credit card. i'm cautious on the markets. >> taking you back to bonds. quickly. have we not yet seen the low in yields? >> possibly not. the way i look at this is with say 2% growth in the economy, there's no real reason i can see why the ten-year yield should be
above two rather than below. i tend to think that rates will be steady at the urnt level. i don't see a rise. the fed funds should still go up. >> thank you, jim. helpful, actionable ideas. >> that will do it for the first hour. >> it will. the next hour coming your way. for brian. you're the host. over to you. >> i hopeky live up to that. mandy and tyler, thank you. 2:00 on wall street. 8:00 p.m. at glencore's ed quarters in switzerland. the dow is up 38 points. we were down 250 points at one point during the session. if we hold here, it will be the margar market's biggest upside reverse until four years. let's get to the market reporters.
bob at the nyc, rick in chicago. bob, kick us off. >> you asked the right question. why the big turnaround? i want to put up the s.p.y. we had a lot of people selling at the open today. at 9:30. when the s&p futures were out. dropped 20 points. the important thing is, we immediately, within at ha minutes, started seeing real buy programs in. the important thing is we saw the moves to the upside. then, gradually, the markets started responding. we're moving up throughout the morning. on fairly heavy volume for the spooider. a big initial selloff. then europe disappointed. the dollar weakness helped multinationals. we saw an oversold balance in health care and energy. banks lagging of course. global industrials.
the weak dollar. one of the first groups to turn around. the emersons, dovers, 3m. stocks that were oversold. fam suit call, hmos, hospitals. >> and a big call on pfizer. thank you, bob. well, the ten-year yield making a move. it's back below 2%. a yield at 1.99, hardly the sign of a healthy economy. >> well, i don't know. is 2.15, 2.20 a sign of a healthy economy? there was a time where the ten-year note not trading above 3 1/2% was unheard of. since the 17th, let's look at how all the maturities have done, including today's number. looking at a two -year.
the high-yield is 71. currently 58. look at the rest of the curve. fives. 150, high, 129. tens, down 22 basis points. 30s down 20. so, basically, all the same. the entire curve is flattened against 2s. everything else has pretty much held a parallel shift. the dollar index. 95.85. it's up 1.3 cents. we're looking at a market that is very inconclusive about the fed. >> just focus on the cubs, rick. focus on the cubs. >> oh, yeah. oh, yeah. we got to try to win and get pittsburgh to lose three so we can do this all in wrigley field.
>> we gained just 142,000 jobs last month. well short of the consensus 200,000 gain estimate. joining us, bill rogers. from rutgers university. also former chief economist at the u.s. a lot of disappointment. it's one month. it does not a trend make. your take? >> i think the markets have shrugged us off. main street is not going to be able to shrug the number often. three numbers jumped out at me and said, why. >> reporter: you surprised. the three-month moving average of the change in job creation over this year. you could just see the downward, downward trend. and so, that's -- that's -- so this is maybe one month. but it does fit to a -- >> it's begin dog be a trend. >> yes, we're in trend. i think. >> why? what is the cause?
>> i was trying to look and see. i had two stories. a broad-based shifting down across all our industries. major industries. or is it highlighted in several industries. looks like it's highlighted. manufacturing. construction. i think wholesale trade. and a few others. they make about 42% of the total jobs. and they have fallen off. they've contracted. >> mining is the big one. you want to go into the weekend in a good mood. i'll highlight the positives. we the did see gains in almost every sector. the big one is mining. the government construes as oil and gas. we have lost 102,000 ming, mostly oil and gas job over the last 12 months. where is oil in this whole story? >> we're, oh, my sense is, where oil is the consume irs have benefitted in the lower prices.
it's helped to sort of buoy the economy. >> costing a lot of jobs. >> costing a great deal of jobs. if we look at other industries that are also just as important, like manufacturing. manufacturing, also, did a contraction. >> so bill, you mentioned that it's a disappointing one-month data point. we got revisions lower in august and july. it extends back as you make that point as well. does this take off the table an october rate hike entirely and perhaps even increase the odds that december is off the table as well? i'm trying to understand hi the markets have rallied so sharply off the lows. >> i tend to agree with you. it will push it back. my concern is focusing on main street. not so much that when the spigot will get turned on. but is it going to be a steady increase. a quarter point here, a quarter point here, a quarter point here. why am i concerned?
i have worked with federal reserve economists. contractuary monetary situations have an effect. >> but even a quarter point, bill? >> i said i'm not focussed on going up by quarter points. it will be a series of increases. or getting to 1%. 1 1/2%. you raise the cost of doing business and being able to, pand. or we raise the cost of business where businesses won't make part-time jobs into full-time jobs. we'll see the impacts. we won't have an expansion as broad-based. >> i will continue to argue until we find a way to make child care less expensive, people will continue to lever the work force. that's a different segment.
>> i have comments on that, too. >> we'll get you back on. a big interview coming up next week. that guy, former fed chair ben bernanke will be live at cnbc 8e a.m. eastern time. you can't miss that. let's get more. scott joins us. you have been out there saying the ten-year could go down as low as 1%. does this number make you more likely that that will happen? >> it certainly plays into the scenario. when you consider, this was a very disappointing number. i've long been an advocate that we're not going back into a recessi recession. we think the gdp is tracking close to 2%. if we see further slowdown and
manufacturing. i heard you talk about the energy sector. spill over from chin nap aa. all the things are telling us rates will probably head lower before they head hire. the models we came up with that i based my 1% call on would tell us that some time, probably in the late or first quarter or maybe early in the second quarter, we would be expecting to see rates at those kinds of levels. yeah, i think, you're not taking much risk to be long. fixed income, especially treasury securities right now. you, there's little downside. the possibility of a rewarding return. >> the reason we like to have you on. a loft reasons. but you think differently. you bring us ideas that normally wouldn't be out in the common
wisdom. you're calling for a continued decline in the near term. over the next two to three years, you think stocks will go up 20% to 30%. you think obviously that bonds will do well. most people would say bonds and stocks should go in opposite direction. why do you think they both can get bids? >> well, you know, it's funny. i say, well, let's look at what bonds and stocks did over the last five years. right? the fact is is that we're in a great liquidity trade right now. central banks all around the world are printing money. likelihood that as they print money, capital flows into the united states and dries all asset prices up is very high. i think that bond yields go down while stock prices go up it's being driven out op the great global liquidity being produced
by central bank. >> i can't let you go without your best ideas. what are you seeing as a particularly good value right now, scott? >> well, you know, it's interesting. about three years ago, mandy called me out and said, give us a crazy investment idea. i said, buy spain. you know, i think -- brazil. you know, brazil, i think, if you can stomach some volatility. you're willing to wait for five years, this is a bet that's going to be probably -- >> like the vespa or brazilian bonds or a soccer team? river platt? is that argentina? >> i would point most investors to ewc. the etf. it's down 80% from its high. we're back to levels that we haven't seen since 2004.
doesn't mean it can't go lower. but, i think i am known for being early. we haven't committed money yet to brazil. but, i think, brian, that is the biggest opportunity on my radar. >> helio castroneves was on the show earlier in week. he's from brazil. he hopes you're right. mandy didn't say, give us a crazy idea. she said, you're crazy. give us an idea. let's get to sue with the latest. >> hi, missy. we have the 2:00 update now from the weather center. the hurricane center. it's still a category 4. still a very, very dangerous hurricane. it's a category 4 with sustained winds of 131 miles per hour. it's battering the bahamas. it's a slow-mover.
that's the problem. it's moving slowly over the bahamas. the problem is the width. we now see that they have hurricane-force winds chrks extend upwards of a miles from the center of the hurricane. from the eye of the hurricane. and tropical storm-force winds extending outwards of 205 miles. which is why, everyon though th path of the hurricane is moving east, rather than west, the fact that it has such a wide range in terms of hurricane and tropical storm force winds is why five states along the eastern seaboard have declared states of emergency. south carolina, north carolina, virginia, maryland, and new jersey. expect extremely high winds. heavy rain. beach erosion. high tide begins in about two hours. the biggest issue. the rough seas. the high winds, and the rain. the east coast is definitely not
out of danger. it's not going to take a direct hit according to the weather center. back to you. >> thank you, sue. scary stuff. we're going to get back to business. we have five stocks you might want to consider owning following a jobs miss. and we're keeping an eye on shares of glencore. our own kate kelly has been speaking to sources. and we're on the hunt. dow is up a little bit. we're back right after this. 3
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. welcome back. a couple of stocks watching very closely today. shares of tesla. up by 2% right now. the chairman of solar city and the chairman of tesla, elon musk offered commentary about the uptick in orders he's seen for the x and the s opini. he believed it was a record order. the departure of the downward trading pattern since the x launch. i got a chance to sit down with the ceo of solar city as well. he issued a strong outlook for q-4 and q-1.
he says he's seeing a pull forward in terms of orders. people are rushing to get the orders in ahead of the tax date. q-2, the first quarter they're going to price with the expiration of the itc. we have to figure out what to do then. a strong outlook for q-4 and q-1. we're seeing shares up by more than 5%. brian? >> thank you. the most important stock in the world right now is glencore. shares of the swiss mining giant. have fallen 60% over the past six months. the company's scrambling to prove to investors it can reduce its debt load. kate kelly has been speaking with company sources. she joins us live outside of glencore's offices. what is the mood around glencore? >> well, brian, this is a key scene of the action. this is an important office for them where energy is based.
the buying and selling of a physical product is handled. one person said in terms of the exec executives, they've shut their screens off. they're trying not to get too stuck on the price. it's an indication of how strongly the market believes they might default. the ceo trying to reassure employees and others right here right in london to reassure them in terms of the liquidity. that, plus asset sales, seemed to be getting momentum today. interest in the grains business might be reassuring people and accounting for a lift in stocks. >> you get this big debt load. we had a feisty discussion earlier. is there a sense, kate, that
the -- forget the balance sheet. let's talk about the income statement. is there a feeling that commodities will make a real turn high sner or could this be our now reality for a couple of years. >> so of course it depends on who you ask. i would say the couple of years or more on sa predominant attitude in terms of the analysts and investors i have talked to. commodity cycles are long. we just got through a period that many people thought was a supercycle, it lasted 10, 12, 13 years, depending on where you think it started. the downcycle, could be ten or more years as well. we're about in year four. i think the prevailing ew ining. you know this, is lower for longer in terms of oil. also, unfortunately, with a lot of based metals like copper, copper the most important driver of their prophet blt of any
single commodity. one indication of that is people talk about if copper hits $4,000 per ton. those are l.m.e. prices, they have to adjust the whole price table. >> kate, safe travels. thank you. well, the disappointing september jobs report brought more bad news for the overall mining industry. the word mining is used by the government and includes the oil and gas serktd. 12,000 jobs lost in this group. in all, 102,000 jobs in quote mining" have been lost in this group since last year. let's bring in michael. you know, michael, between oil and gas and the slump in other commodities, how tough is it for the stocks that you cover? >> it's been very difficult. a difficult few years. kate mentioned it in her hit before. it's been a tough time for the commodities.
especially the u.s. pruz oducer who have been impacted by the strength of the u.s. dollar. it's led to layoffs. away from oil and gas. we haven't seen it in the mining industry. >> you're talking actual mining. going underground, taking out met also the. that's why i pointed out it includes oil and gas. the price targets on the mining. you have 100% upside on new month. those are very, very aggressive targets. >> they were not far away six months ago. >> they are now. >> i know they are now. i think at the given, with the news from the fed today, that there's a sense that you're going to see a lot more liqui y liquidity and easing. these stocks appear to be basing here on the charts. once you start to see better gold price in this environment. weaker dollar.
lower cost structures and production growth. i think you could see a sharp move to the upside. the stocks are volatile. >> we have to go. here's what i don't understand about gold. i understand why corpper stinks. there is too much. what is the story with gold? >> gold is like a currency rather than a supply-demand commodity. with the strength of the u.s. dollar. they had been doing well. it's tough for gold to get a bid. >> michael dudas, thank you. >> appreciate it. thank you. up next, the newest biotech stock to hit the street moves down. the chairman of novacure will join melissa. we'll roll out of stocks of the week. as we head to break, let's look at the most aiskt movers. pfizer, there's your brazil,
but we've had a heck of a turnaround. more than a 250-point swing for the dow jones industrial average. on the back of a weaker than expected payroll number. i'm recapping the big news. the s&p 500 up. 26 rigs offline in the last week. oil up nearly 2%. oil does look to end yet another week without a significant move higher. we're up today. the crude close. where we close. in just two minutes. stick around.
hello, everyone. here's your cnpc update. the gunman accused of the mass shooting yesterday at an oregon community college had six weapons at the scoop and seven at home. all the fire arms were purchased legally, either by the gunman or family member. authorities have no idea why chris harper mercer targeted the school. nine people were killed. historic rain and flooding is hitting the carolinas. the mess is being caused bay storm that has really nothing to do with hurricane joaquin.
south carolina is under a state of emergency where flooding has closed roadways in major cities like charleston. the vatican says pope francis met with a gay man and his partner during last week's trip to the u.s. the only audience the pope had in washington. the man is a former student of the pontiff. new videos today showing what is believed to be a syrian government air strike near the city of dumas. the u.n. is suspending humanitarian aid to the country due to increased air strikes. that is your cnbc news update. back to you, brian. >> thank you, sue. let's get back to business. let's get to jackie for the weekly now oil close. >> good afternoon, brian. oil prices making a big rever l reversal. to close higher. up about 85 cent. obviously, the jobs report was the culprit, sending us lower this morning.
people worried about demand. out of sight, out of mind. the recount number you broke at 1:00, rig counts declining 26 in the united states last week. traders liked that. it was supportive and it took us into positive territory. not sure. i can't see the numbers for the end to ever week. it was vacillated into the close, brian. back to you. >> we have been in the mid 40s for about six weeks. >> a $2 range. a tight range. we're poised for a breakout. i don't know what the catalyst will be. it's something to watch next week. >> thank you, jackie. let's talk about oil. we have been stuck in the mid 40 range for about a month and half. we were in the mid 40 range in january. we haven't gone anywhere all year unless you're trading crude oil or in the same place. skip york joins us. from wood mckenzie. we were chatting. it seem like everybody is
waiting for something to happen. if you go back 25 years this is kind of the average price of poim is it possible that oil just does what nobody expects and sits around these looefls for a long time? >> well, we think what will happen is certainly in the near term, we think we're going to be in a $ha, $50 environment through the middle of next year. the backside, we see a little bit of uplift at the end of 2016. that will be because of the production in rollover in non-opec production. when the market starts to see the decline, that destocking that will happen of all the stocks will put upward pressure. then the tide oil guys come back in and flatten the price out. >> there's this theme, i guess, the right word. maybe the wrong word. just talk about. the production has to come down because you know, these companies, they can't withstand the price for long. we'll see production drop. oil prices will go up.
i would answer, we have never seen this level of debt in oil companies. there are a lot of companies i have talked to off the record that say, i am losing money on every barrel. i have to keep pumping. >> it's a run to cash, right? it's the variable cost. is it low enough that allows me to generate enough cash and as long as i can cover debt and add to something else, i don't shut the wells down. >> how many companies will not be able to survive 45 to 50-buck oil in the next months. >> we think the volume will be less. a lot of guys can probably eke through another year of oil. it will be uncomfortable. >> they're living on the proceeds of debt, a lot of them. >> and what happens after that? >> we need higher oil prices. >> one of the things that will
happen in 2016 is a lot of the hedging positions will roll off. we don't see a lot of people yet hedging 2016 production. they're going to be more exposed to the price. the market puts pressure on the supply side. there's a lot of reasons to not just throw in the towel and walk away and watch production collapse. >> skilp, a pleasure. have a good weekend. a rocky day for novocure. look at how the shares are faring. 19.02. the price of 22 bucks a share. we have a power lunch exclusive with the chairman, william doyle. >> great to be here. >> you have one drug for a recurrent brain cancer. approved in 2011 by the fda. what are you hoping for the extension of the technology for other cancers? >> it's not a drug. it's a brand-new therapy that
complements radiation and chemotherapy. the first approval is for the deadly brain cancer glee glioblastoma. we published in november. the best date that that's ever been -- they were submitted to the fda in april. when the fda finishes reviewing, we expect to move to the first line. >> there's one that could be used for mesothelioma. it's a completely new mechanism. we use low-intensity electric fields to interrupt the machinery of cell division. it works on every cell type. we're now progressing it through the pipeline for the cancers you describe.
pancreatic. ovarian. m mesothelioma. >> it's worth noting that you priced below the private valuation that you sold shares to t. rowe and fidelity in june. did you have to go public? companies are saying we're going to put it off unless they need money. did you to go public at this time? you had about $106 million at the end of june in cash and cash equivalents. >> we're focused on the patients. we have a strong balance sheet. we filed in april. that's typically a six-month clock. we want to be completely ready to bring this therapy to patients, not only in the u.s. we just started commercialization in europe. we just received our first approval in japan. markets will be choppy. i think if we take care of the
cancer patients, shotock holder will be in good shape. >> you're involved with pershing square. drug pricing pressures have been, front and center in this industry. that is taking the biotech trade down in the last couple of weeks. they're questioning information about the pricing of two heart drugs. how do you view the pressure in the sector? >> i'll let valiant speak for valiant. it's important to focus on the difference between innovative, life-extending therapies. while the conversation tends to be confused, i think that everyone agrees that we want to continue innovating. there's still tremendous unmet medical needs. cancer is one example. there's alzheimer's, neurological diseases.
nobody wants to do anything to reduce the incentive to develop therapies like novocare. the xatherapies can be importan. there's never been a patient denied the novocare therapy. >> thank you, bill. >> thank you, melissa. >> bill doyle. brian? >> let's call this the burl ives version of trading nation. we're going to talk silver and goal. it's only 84 shops days left until christmas. phil and erin. welcome to trading nation. do you see more upside, phillip, for the prers metals? >> yeah, brian. the fed got a wakeup call. i got year-end price targets on gold near 1200. we have had price changes.
august, 1170. i think some of these items happening in the background, like russia, they're been stock-piling gold. they picked up 37 metric tons last month. we saw china add 15. you have a lot of minds like glencore. they're not in the gold business. they're in copper and sell ver. they have debt restructuring. you have a headacheup going on gnat will have long-term ripple effects. just like the crude oil. the guys pumping oil. they're shutting down a little bit. it will cause longer term ramifications on supply and demand. i think the path to least resistance to the upside on gold and silver. >> unconfirmed that putin will slag that gold and make a giant hot tub. totally unconfirmed. erin gibbs, you look at earni s earnings. what do you make of it? >> i'm not so fond. i still see we have a glut of
supply. we don't see the demand coming up, despite short-term pushes upwards. a lot of it has to do with how the dollar will trade. initially, the jobs report puts some downward pressure on the dollar. making gold more attractive. longer term, we still expect interest rate hikes before the year end. even with the slowing u.s. economic growth. we expect the dollar to strengthen. for gold to still be, some prrk on gold as well as just as an asset class making it less attractive. longer term, i still hold off. we don't see that much growth with gold and mining companies. they have a loot of debt. we would still stay away. >> phil likes it, though. could be on the march to 1200. difference of opinion. that's why we do it. for more, go the trading nation.cnbc.com. up next, things sold en masse over the last year.
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welcome back to "power lunch." i'm brian sullivan. let's look at the yield on the ten-year note. 1.996%. below 2%. mortgages will go down in price after this. ken show wanted to look at what stocks have done well when this kind of thing happens. a jobs report miss and a subsequent drop in yield. believe it or not, those things, the jobs miss and drop in yield have happened 22 times in the last years. when it's happened, investors get nervous. they go for safe, higher-dividend paying stocks. number one, wec energy up an
average of 2.1%. drug firm perrigo. and public storage. those are some of the stocks. there are more on the list. if you want the name, go to cnbc pro. there's a story on powerlunch.com. major shift on the markets. outflows. that would be the first time in nearly three decades that more money has left the emerging markets than has entered them. seema mody joins us. it's a buy signal? what do you think, jeff? >> certainly, we focus on the equity flows. they have been a big record this year. and therefore, there's been quite an amount of capitulation. the big number you're quoting includes bond and equity flows
and probably fdi as well. so much money has come out of it does make it interesting. we need some things to fall into place before we get a decent rally emerging markets. >> such as? >> the most important thing from our point of view was growth. we have seen a substantiation. we have seen more corporate earnings. we have had declining earnings in the last five years. we measure everything in dollars. the dollar has been strong over that period of time. this is a growth story or a lack of growth story recently. you need to have that coming back in. i think, for up vesters getting comfortab comfortable. our feeling is the fed is a side
show. we need growth. >> growth is important. the you have no growth plus you have a fed rate hike looming, analysts make the point that the last time we are in a fed-hiking cycle, we had a commodity boom under way. we had growth presence. em might have a harder time this time. >> no question at all. that's right. we have head the same point. the last fed cycle ep did well. it's fair to say that that perfect storm, as many are calling it, was exactly what hit us in the third quarter. when emerging markets fell by 18%. we had the worst quarter since the third quarter of 2011. at the least, some of this bad news is priced in now. and we tend to believe that a gentle set of fed move over the long term combined with improving growth, if we ever get that, will turn out to be quite
positive. >> jeff, when it pertains to china, we have seen five interest rate cuts. three reserve requirement rare yo tuts. the chinese economy continues to falter. when do these moves start to feed through to the real economy? give us a timeline. >> we feel the chinese economy is very confusing to a lot of people. the classive ipd carrots, like industrial production. inka indicators continue. i don't think it is the goal to stimulate this part of the economy. there's a big rebalancing going on. from investment toward consumer spending. in our view, the other parts of the economy, people are not taking notice of retail sales and the service sector. that improvement will be sufficient to offset the disappointing environment.
we also think one of the drags on china, which is the same everywhere on emerging markets is the weakness of exports. we expect the economy to start to pick up. we focused focus attention main the consumer. >> okay. jeff, we've got to leave it there. thanks of course to our seema mody. a big turn around continues on wall street. we're only up 60 but we were down more than 200. where will we close? "power lunch" rolls on right after this. ♪jake reese, "day to feel alive"♪
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september was another great month for car sales, but now the auto makers are facing difficult negotiations with the unions. fill lebeau joins us with that story. >> the focus this weekend is on the ford truck plant in kansas city. why that plant? the local has given ford notice that it's 7200 members could walk off the job as soon as
sunday afternoon. they have begin their five day notice. that strike could begin unless they resume negotiations or something changes by sunday at 1:59 p.m. central time. the uaw and uaw president there was an agreement a month ago on an initial contract while the rank and file voted against t 65% voting no, the uaw leadership will be meeting over the next few days deciding what the next step will be, whether to resume negotiations or move on to gm ford as they look at those contracts as well. here is the heart of the issue right now, you've got booming auto sales and the rank and file are saying you've also got booming profits. they want more than what's been negotiated so far, shares of the auto makers they have been down for gm and ford year to date, fiat chrysler we know what's going on there in terms of discussion about a possible merger. coming up next two, stand out stocks from this week. that's next. time. sup jj? working hard?
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can it tell the doctor how long you have to wear this thing? ♪ can it tell the flight attendant to please not wake me this time? ♪ the answer is yes, it can. so, the question your customers are really asking is, can your business deliver? welcome back to "power lunch." when double line capital's jeff gunlock speaks the market listens. he said that there is going to be another wave down in risk assets and it's happening globally. he also says people are waking up to the idea that global growth is not what they thought it was, that the u.s. equity market as well as other risk markets including high yield junk bonds face another round of pressure. >> i'm trying to figure out he
says another wave down in what? everything? >> at this point he says u.s. equity markets as well as other risk markets including -- >> okay, stocks. >> high yield junk bond face another round of selling pressure. >> interesting. stocks and junk bonds, you know, tend to go in the same direction because it's one part of the credit market which is sort of a proxy for equities. we will see if he moves the market down ahead of the close. thank you. >> seem for our stocks of the week. certainly these are not recommendations they are stocks that stuck out to melissa and i for one reason or another. mine is wynn resorts. a huge up day. the stock still down 66% this year but wynn is up 20%. i'm speck dating a short covering inside. >> 20%. kudos to chris jones of union gaming. he said he would be a buyer of
wynn. >> i guess you could say he is wynning. >> my pick for the week, shares of apple. we've been flagging this one since tuesday when it really started underperforming the market for the week, down by 4%, compare that to the nasdaq which is down about .6% for the week. it has been lagging. it is coming off what could have been a very big weekend -- or what was a big weekend, what could have been a big week for the stock price after the record selling 6s and 6s plus phone so that's my stock of the week. >> we have to say 6s by the seashore. >> it's too hard. it's a new phone. record numbers of the new phone. how is that? >> i like that. sold. >> by the way, tonight on "fast money" at 5:00 we've got the analyst brian white who has the highest price target on apple, 200 bucks initiated on thursday. by the way, kre that's an under performing on this notion that perhaps the fed rate hike is
further off because of the jobs report. the banks that lend won't benefit as much sooner. i'm watching that. >> by my count you owe $3 for the fed jar. >> done. >> sold. all right. melissa, have a great "fast money." have a great weekend, "closing bell" starts right now. hi, and welcome to the "closing bell." on this friday i'm kelly evans at the new york stock exchange. >> i'm bill griffeth. big reversal for the market. stocks understandably sold off hard on the open on the disappointing jobs report at the low the dow was down 258 points, but this -- i mean it spent much of this day, though, coming from back from that low and at its peak we were up 80 points, the highest i saw, right now we are up 43 points. if the dow were to close higher today it will be the biggest reversal to the