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tv   Fast Money Halftime Report  CNBC  October 8, 2015 12:00pm-1:01pm EDT

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plays out. certainly interesting to watch that. meanwhile, ibm has taken the dow positive as we head into midday. dow currently up about 25 points in a reversal on that average. that is it for us on "squawk alley." thanks for being here. thanks to john out west. let's send it over to the judge who is back from jury duty. >> trade lerz serve up their winers and losers just ahead as well. gaming the numbers. the sectors likely to hit and miss. what all of that will mean to your money. we begin with stocks on a streak.
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the dow up four straight days going for active. the s&p up 6 of 7, and questions now about whether this week-long rally has some legs. earnings kicking off tonight with alcoa. expectations that couldn't be much lower. joe, interesting market action thus far. we've mentioned the streak that we've been on. you do have a lot of these big technology names. as we speak, rolling over, the guys on the previous show were just talking about ebay, but it's more than ebay. it's google and amazon. it's facebook. it's netflix. apple hasn't been participating. what's going on? >> i mean, before doug got an e-mail about the -- you got the fangs getting hit. you've got technology, health care getting hit, and it's all about energy. it's a rotation back in energy. wronk that's going to defeat the up trend and the momentum that the s&p has right now. i think that's going to continue. i expect oil to bust through $50 very quickly. it will all change for oil. it will all stabilize for oil with the presence of the russians and the middle east. pickins -- t. boon pickens
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talked about a new sheriff in town in the middle east. i think oil will continue to push the market higher. i know pete is seeing big paper in there as well. that's the trade du jour ask where the momentum is. >> this market has legs, do you agree with that? >> i think what we need to see here is what the verbiage is with ceos and cfo. >> it's indeterminatant right now. we need to hear from apple and gm and others what's going on in china to see if this rally will continue. >> where hasn't apple participated spshgs what's the message to the investors? >> right. that's been a huge disappointment. i mean, joy is talking about energy, and, yes, we had
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incredible amounts of energy. paper coming into last week. late last week. even into the beginning part of this week. we have not seen paper really in a bullish way coming in towards some of these names like an apple. apple just seems to struggle each and every day. i guess what they're waiting for is the proof will be in the pudding. yesterday we had an analyst on talking about apple. could be $100 stock or it could be $150 stock. tony was talking about apple, and he was saying, hey, look, it all depends on how well this phone really is the adoption cycle of the new phone. how well is that going? if it's strong, stocks will sprint to the up side. if it's weak, we're seeing something below $100 a share. that seems to be what everybody is waiting on right now. it seems to me that up side seems to be much greater, though, than the $10 risk to the down side. if he is looking at this thing going up to $125 towards $150, he is not talking very short-term by the way, but he is talking about future. we are looking at an apple that i think is a great opportunity. i have not added anything to apple. i have been mostly into energy.
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>> and, of course, we're not so certain that they're joining the fight against isis as much as trying to carve out a little piece just like vladimir putin is trying to carve out a piece of the middle east. apple just quickly to that point you brought up, i like apple a lot on the sell-off. i haven't bought it here yet, judge. what i like is that there's basically a pivot right around 105, 10 7 area, and you certainly have to like it more down around that level than if it would have sprinted up to 122 from where it was. then they announce the numbers. >> does its lack of participation put a dent in the legitimacy, if you will, of the
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move that we've seen over the last six days? in the stock market itself. >> no. i think this is an apple specific story that we're talking about here with apple. it's whether or not the 3-d touch as they call it and all these other things are enough to get people to upgrade. we knew they had tough comps coming in with the 6 on the popularity of that. prosecute what we're hearing the 6s is not going to basically exceed those numbers so we'll have to see how far into the middle or lower end of the estimates it is. >> so speaking of the rally, emerging markets are on their best sixth day winning streak in something like since 2011. anything to believe in or no? >> i guess the first thing i would say is this reversal makes sense, right? august and september, the market and emerging markets, you're already pricing close to a crisis. wronk we're in a crisis. we're in a growth recession. >> are we heading towards a crisis or not?
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>> i don't think so. having said that, i don't believe the current valuation is enough on its own to be a catalyst for a long-term rally. for that you need to see growth to pick up and earnings revisions to start turning positive. you start to see currency stabilize, and i can't really check the boxes on any of those to see a medium term rally in emerging markets. >> why do you think we're not heading to some sort of crisis moment in the emerging markets? >> i think ultimately it comes down to china. if you believe china is going to have this hard-landing growth just disappear and they basically lose control at the policy level to help provide support, that would be the crisis. >> let's just say that china's growth is closer to 4%. let's just say that. that's what it really is. if that were the case, what's the impact on the emerging markets? does achange your view if i told you that? >> not at all. to your point, i think some might argue that you are already there. right? in essence, the last five years
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of the commodity prices, everything we talked about has been a realization of chooirn not growing as fast as they used to. >> wis it it's 0%. that is a different story. that would be the true recession/crisis. i don't think that's in the cards. i tell you something that is often not quoted. china's real estate is actually starting to find a bottom. if you remember, the whole bear case for china is this collapse in real estate. they've had three months in a row of up ticks in prices, and the breadth is so to 20 cities to over 50 seeing price increases. if you continue to see that, the bears are going to have less legs to stand on this hard landing. >> all emerging markets are obviously not created equal. there was a note from eastern europe, russia. >> would i love to see that report. i agree russia is our biggest -- right in front of you. all right. i'll send an e-mail to that
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person. >> we think there's more up side. >> there's so much negativity priced into four and a half times price to earnings. i don't have -- i think when you get that type of valuation, it starts to get -- >> it's over $50 by the time we finished having this conversation.
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it leads us back to china because there are many stockpiles of xodty resources. there's so much over supply that was predicate odd a still booming china. doesn't it still just keep the oversupply of moderateties across the board. not met by demand, and isn't that a problem for russia and the rest of the emerging markets? >> i think from a sector standpoint, we're actually underweight materials. you would agree with you, the question is is it in the price, right? i think em is trading at 10.5. i would say, yes. we're facing a slowing em. we're accustomed to a growing em. for that reason until we start to see signs on that, it's very hard to get excited. is brazil so bad it's good as
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one investor put it a couple of years ago, or is it so bad it's really bad getting worse. we need to be worried about it. >> they're in a recession. it's only going to get worse. on the currency side, i think currency has seen enough pain, and a year out there's asymmetric risk profile where you have more up side than down side. the currency is pricing crisis while the equity market is pricing out shallow recession even though they have a deeper recession. a good way to play would be on the bond side and not the equity side. not ready to call it on the equity side. >> you have risk over there too with the government and everything else going on too. snoo shake shack, domino's, mcdonald's on the move today. we're serving up the best fast food trades coming up. next, go pro shares hitting an all-time low. morgan stanley, really cut its
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price target today. he owns the name. it's our call of the day. we'll tell you how much had he slashed it by. you're watching cnbc first in business worldwide. i take prilosec otc each morning for my frequent heartburn because you can't beat zero heartburn! ahhh the sweet taste of victory! prilosec otc. one pill each morning. 24 hours. zero heartburn.
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we're back. members of the house republican conference meeting as we speak to elect a nominee to replace speaker john boehner. let's get to john harwood down in d.c. with the very latest. hey, swron. >> hey, scott. there's three candidates for this job. kevin mccarthy, who was the current number two behind swron boehner as the house majority leader. jason chafitz, who is from utah, and he is an upstart conservative member, and dan webster from florida who is the speaker of the house in florida. now, we are pretty sure that kevin mccarthy is going to come out as the nominee of the republican caucus. that doesn't mean he is going to become the speaker. let's go over the numbers. it comes down to math. 435 members of the house. there are 247 house republicans. you need 218 votes to become the speaker. if 30 republicans in the house decide not to support kevin mccarthy, republicans are back to square one. they're going to have to pick someone else. conservatives have said they're not going to -- some of the most staumplg conservatives say
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they're not going to support kevin mccarthy today. of course, the final vote is not going to come until october 29th. we've got a ways to go in this drama. the conservativing are trying to make sure that nobody thinks this is over today. >> john harwood live for us today in d.c. by the way, cnbc moderates the next republican presidential debate. the your money, your vote event airing wednesday, october 28th, from the university of colorado boulder. we're looking forward to that. shares of go pro, meantime, hitting an all-time low. morgan stanley slashed its price target by more than 40%.
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they have come down an extreme measure across the board. morgan stanley, the latest. their biggest concern, obviously, is just how the session has been selling, and the fact that they're going to have to slash the prices from $399 to $299. when you look at emerging markets where they are looking for that growth internationally, they've got the stronger tlar. there are all kinds of different pressures right now, and certainly a huge flip from that $62 price target down to $35. >> are you guys surprised? you cut the price target that much, but you don't put a sell on the stock. it's not like they have equal weight. wron. >> well, i would tell you, it's still a growth story, scott. when you look at some of the fundamental sides, it doesn't mean -- they're going to have, what, $2 billion in sales for a company that's trading at $3
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billion and a $3.5 billion market cap. >> did you -- their note says that they're talking about, as you mentioned, the session. they view disappointing session sales as a harbinger of future disappointments. i mean, that's about as negative as you can get. >> right. now you just wonder, is this technology something that we've talked about this before, though. is the technology strong enough? is this a big enough field? everybody is talking about cameras, smartphones, all the rest of that. is that something big enough that somebody wants to come out. i want to talk about it for a while, and does somebody end up having to buy go pro is get the technology and be able to use it in that manner? maybe, maybe not. i have always thought it was something that certainly would fit in with awe couple of different places. whether it's google, microsoft, or an apple. >> anybody else have a thought? >> you just look at it. its still up 15% from its ipo price. if you basically forgot with all the trading in between and looked at it and said, okay, how about 15% on it. remember everything that happened way above.
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that's probably the fault of a lot of what we do in the market sometimes. >> doc. >> i have traded this one, judge. i'm not in it right now. i know that yesterday we put it into our board for folks that follow us about amberella. yesterday it was only down about 2%. maybe 2.5%. when go pro was down ten. this continuation slide in go pro now you take a look at amberella. it's down $4 plus today. down to $57 and hang. i think amberella is the play to the down side there. not go pro. >> coming up, ebay falls. super models help sales and european banks take a hit. that and much more in our treasure blitz coming up. plus, pete recommending emc yesterday and today. well, there's talk of that potential deal with dell. should you stick with the name? take some profits? what is your best move? pete will tell you next. you pay your car insurance
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i'm going to transform the way the world works. (proudly) i programmed that hat. and i can do casaba melons. i'll be helping turbines power cities. i put a turbine on a cat. (friends ooh and ahh) i can make hospitals run more efficiently... this isn't a competition! it's time for our trader blitz. four trades on four stocks. first up is el brands. 9% jump in stam-store sales. >> you really can't argue with 9% same store sales, and that's why the stock is higher.
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that's well in excess of what we're seeing in retail sales. it's well in excess of what we're seeing or expecting from same-store sales from any other retailer. that's a lot of wind in the sails of this company. i think can you hold it or buyer it here. sflo costco. flat comps. better than expected. i mean, for people looking for a decline. >> i think it was strong across the board. all the metrics look good. the fresh food was good. canada was up 11%. i don't think there's anything in this report not to like. deutsche is to a report. it's to report a record pretax loss of $6 billion youros. >> in other words, both might be in that same boat, judge. the news here also that credit suisse may give up its broker dealer. they're looking at cutting costs and entire units out and the u.s. broker dealer is one of those units. that could be a big windfall for the likes of jp morgan, goldman
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saks accident or morgan stanley. >> let's look at the bullish call by pete on emc. >> if you regularity the yield, and it's the weight that the management needs to have done -- it's a big winner. >>. >> emc and dell. >> right. >> talking about this. >> right. >> and potential for a very big deal. >> you saw jim cramer earlier today talking about, hey, look, this deal is going to be a deal. i mean, it's not just chatter. that was just yet. if you were lucky enough to be in there, i was not, i think you would want to take profits off the table. i don't think you would want to pile in. if you want to be involved, though, up side calls would be the only way that you would want to be in this name because if there isn't a deal, we're going to see this name sift right back down towards 25.
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>> you own it now? >> i do. i have a four, and i'm not lucky enough to be in there right now. >> they're implications for vm wear, other stocks around this. >> thought on this one? >> emc was named the last couple of wreerz. could be diversification. they're phenomenal in terms of storage, and exactly what pete is talking about. no reason why we can't store above 0. >> if you look for value in this market, just in terms of earnings multiple as well as strong balance sheets, you look at old line tech, which i will qualify emc as.
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>> there's a lot of put buying at the 26 strike. that's not necessarily a down side bet. i think it's more putting a floor in underneath so people hold to the gains, which is a smart trade. >> that stock is right now up by better than 5%. >> coming up, as earnings season kicks into high gear, we break down the sect ors that are likely to outperform and the ones that could fall flat. plus, 60% of ipo's this year are trading below their ipo price. what does that mean for the big names on deck? we'll discuss next. important than your health.
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hello, everyone. i'm sue her air wra. here is your krst nbc news update this hour. spencer stone was repeatedly stabbed in sacramento, california, overnight, and now is in stable condition according to nbc news. a fight in the street led to the stabbing. stone and two friends subdued a gunman on a high speed train back in august. he was recognized by president obama at the white house for his heroism. >> bond guru bill gross is suing
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pimco for at least $200 million saying he was wrongfully ousted by a kabal of executives that want his share of the bone where yous pool. he left pimco in september of 2015 to join janus capital. >> lionel messi will stand trial on tree counts of tax fraud. a judge has rejected the request to clear the barcelona player of wrong doing. messi and his father are accused of defrauding spain's tax office. after shutting out the pittsburgh pirates and the nl wild card play swrof game last night, the chicago cubs move on it play the st. louis cardinals on friday. the average ticket price at wrigley field is over $650. close to what's charged for world sears games. the cubs haven't won a world series since 190le. we'll see if this year is their year. that's the cnbc news update this hour. scott where i, back to you. >> sue, thank you so much. breaking news and a stunning development as it relates to the race for house speaker john harwood has more from d.c. right
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now. swron. >> scott, remember how i said about five minutes ago that the smart bet was on kevin mccarte where i. take that money off the table. we've got a house republican caucus that is in full meltdown right now. his preferred successor has him saying that he would be too divisive. we've just had members who were coming in to elect a nominee for speaker. be shocked by kevin mccarthy come in front of them and saying he didn't want to divide the caucus any further. what that tells you is that nobody has a majority right now. it does not mean that dan webster will be the speaker. you could see other people.
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no pressure more pressure on paul ryan, for example, who has declared he does not want the job of speaker. somebody like peter rosscom from illinois. somebody who may have the ability to bridge different factions. the house republican caucus is really a mess right now because the people who have been leading it are not capable of leading it anymore, and dwoept know who is. >> interesting. john, if you take a look at what the stock market is doing, probably as a result of this news, stocks were selling off maybe on a little bit of wrup set with the lack of continuity or what have you. do you think this is really about the votes? is there any other reason why mccarthy would take himself out of the running where you and so many other pundits are saying that he was the guy? >> the fundamental problem the house republican caucus faces is that a significant chunk of its
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members have ambitions and beliefs that are not consistent with the amount of power they hold within the caucus, the amount of power that they hold within the country. they're disconnected from the reality of governing a politically divided capital. you have a democratic president. you have a senate that is closely divided. republicans have a majority. they need 60 votes to do most things. the people who have been leading the party, like john boehner, do recognize those limits. understand they have to compromise to govern. these members, this minority of members within the republican caucus does not recognize that, do not think they need to compromise, and are facing a disconnect as i said, from political reality, and that's something the republican caucus has to resolve. >> that is a stunning development. i know a big surprise to you, john, and certainly to everybody
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else. john, thanks. doc, you want to comment on this? >>. >> the market reaction is fairly interesting. >> i'm keeping an eye on the t-bills, both the three-month and the ten-year, judge. keeping an eye on some of the short-term and longer term paper out there. looking also at, you know, just what a stunning move this is and seeing, okay, then if it is a paul ryan that gets pulled into this, what does that mean? that's a big power shift right back up into wisconsin again for him. i was just flipping through some stocks that were based there. >> we'll continue to follow that story for the rest of the day. you want to go to christine short? okay. we're going to go to christine short. why? because she's sitting right here. we're going to talk about earnings season which kicks off
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with alcoa. how is that for a transition? >> really smooth. yeah. thank you. >> we try our best. expectations couldn't be lower. >> yeah. i feel like a broken record. the last three quarters have come on. we head into the season with negative expectations on the top and bottom line. for this quarter for s&p 500 we're looking for earnings growth to be negative 2.5%. negative 1.7%. we do tend to see companies beat. what's the culprit? it's energy. he thought this was going to be the first quarter that energy sort of saw even year-over-year comparisons. >> all commodity related. >> exactly. >> it's energy. down 66% on the earnings per share side, and then, of course, materials. materials are expected to be down about 5%.
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we talked a little bit about china, and that's when the bursting of the bubble there was developing. >> right. >> and a lot of quarters were over at that point. you saw a little bit of speculation, but now we'll hear a lot more. >> on the flip side, what's going to be strong, do you think is this. >> the winning sectors are discretionary. lower oil does benefit certain sectors. consumer discretionary being one of them. we're looking for about 13.5% earnings growth there. autos. it's really all about automobiles. the consumers feeling confident enough to go back and make those larger ticket purchases. you know, september numbers for u.s. motor vehicle sales were a whopping 18.2 million. highest level since july of 2005. mostly due to truck purchases. lower oil means consumers confident enough to buy those gas guzzlers once again. you know, you had a guest on earlier on "squawk box". a woman from the jp morgan chase institute that said finally analyzed $25 million -- or $25 million of their credit card and debit cardholders to see how are people spending their money because we've all been perplexed
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by retail sales numbers and some of the earnings out of the department stores. where are people spending their money? they're saving on gas, and they found that 80% of that gas savings is going to things like rest raupts, groceries, entertainment, and services which around, you know, captured in some of the retail sales. >> you want to weigh in on this? >> how about health care? i'm just really cure where yous. that's the sect or that's gotten slammed, right? we've watched it go down, and now going into earnings. can that actually save them and push them to the up side? >> i think so. that's our second expected leader they're looking to post during the growth of about 11%. all about biotech once again. specifically the biotech darling. gilead sciences, yes, growth there has been moderating. some other companies would die for that, and the last it's been in the triple digits, but biotech will be another one to watch again. that could certainly help those stocks. >> as far as financials, they've bechb late in terms of the cycle
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of buybacks. we saw last quarter, buybacks were coming around. do you expect that to continue? the volatility, how did is that factor in? >> financials are middle of the road. we're looking for earnings growth of about 4.5%. >> m and a a bright spot. we had recent m&a going back to 2008. like you said, equities marks. that's going to certainly help them. volatility has helped. bank america, that's expecting the highest year over year
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growthed and a weak third quarter. the five of the big banks reporting next week. should be interesting to watch. >> thank you very much. >> thank you. >> all right. coming up, crude is popping today and rising about 8% in the past week. we'll head to the nymex floor for the headlines on your trade. you're watching cnbc first in business worldwide.
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a princess. and a pony. you like things that begin with p. i like pink frosting too. will you have a cake? yeah. i was too sick to have one last year. the data your doctor shared shows you are healthy. are you a doctor? no. i help doctors identify cancer treatments. i want to be a doctor someday. i can help with that too. watson, i like you. >> coming up at the top of the hour, a busy day. lots of breaking news. also, the dow transports up almost 4% in the past week. the stocks that are taking it higher. it's a five star bond fund, but it's not your usual type of fund. it's carving out some decent returns. we'll talk to you all about it. inside the fed's head. the minutes of the last fomc meetings to be released. policymakers would likely hike rates. could be a real market mover. we'll bring it all to you.
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lots of analysis as well. back to you. >> okay. yeah. mandy, thank you so much. see you in just a bit. we do have the breaking news just moments ago. kevin mccarthy pulling out of the race for house speaker. let's bring in larry kudlow. he is cnbc senior contributor. larry, your reaction. he made an enormous mistake. enormous mistake. very -- you probably know that he was fewer where yous. was furious. the whole point was not to politicize the hearing. >> he did apologize after the fact. he walked about the comments that he did make. you think the -- >> he never accepted. he never accepted the apology.
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the 40 conservatives roughly had thrown their support for dan wester of florida. maybe mccarthy could have beaten him. maybe. not clear. if he had won, it would have been very close and would have really damaged the republican conference inside the house. now we're back to square one. to tell you the truth, i think that's good. i think there are other people there that would be better suited it. >> such as? >> the guy that i have been looking at, he said he doesn't want it, but irthink the guy jeb henserling from texas. he has friends everywhere in the party. he was on the old banking committee. a brilliant policy guy. a terrific policy guy.
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he has avoided this so far. i think his name is going to come back into play. the other guy is paul ryan, chairman of the weighs and means committee. i happened to talk to paul yesterday on some tax matters wresh claims he doesn't want the swrob, but i think his name is going to be rights up center. >> let me interrupt for a minute. we do have some headline that we're running at the bottom of the screen. darrell issa, the republican from california, larry, is saying it appears none of the folks who are in the running, at least now, can get the votes, and paul rooen himself now has said he is not interested either. >> by the way, darrell issa himself is the guy who may come into the running. he is extremely well respected. he has run a bunch of oversight committees, as you know, and he has done a very good job. i think this is just fascinating because number one, it didn't play out the way you thait thought whereby nsh two be there
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is a lot of confusion. >> what do the house republicans want? this is so important. we're talking processes, and process is important, but where is the repeal of obama care? where is the corporate tax cut that we were promised? when are they going to put these things on the table, put them in the senate and go to a 51 vote reconciliation package to get it to obama's desk? in other words, there's a revolt of the grassroots. there's a revolt of the base. they are blaming the house and senate leadership for not doing what they promised to do a year ago when they won. this has to be hashed out. who can lead them? >> does this, larry, reveal even more fractures within the republican party itself than even we realized? >> yes and no. yes.
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there are serious fractures. they're also serious fractures regarding taxes, past legislation, policy, in other words, on things like health care, on things like energy, on things like corporate tax reform. there's big tactical, you know, should you confront the president? should you make a deal with the democrats? do you push it through on reconciliation, and that auto will require -- should you shut down the government? should you deal with the debt ceiling and, by the way, i hope they do not mess with the debt ceiling because that's a global event that will hurt us. yes, there are major differences inside the house republican conference on all these questions. >> larry, i have this sound from darrell issa from just moments ago. i want to listen to that, and we can talk on the other side of it. here's the congressman from california. >> my understanding is he felt that he could not get to 218. he wants to make sure that
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whoever does become speaker, wrovl, has the ability to get to 218 on the floor consistently. that's his reasoning. >> larry, if nobody can get the votes, at least the names that we're familiar with at this point and with mr. ryan saying himself he is not interested, the longer this plays out, whatsoever damage does it do to the party itself? >> oh, wron about damage. look, right now john boehner is the speaker. there's a longer two-year deal. the price is skeptical. life goes on. life goes on. however, in a year where there is great tumult in the elections, right, i mean, would you or i have been smart enough to predict donald trump first, ben carson second, and carly fiorina third. i know you are a smart guy, and
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i've worked with you for many years, but i don't think any of us would have gotten that. would we prakt a revelt from the grassroots of the gop after they swept congress a year ago? you know, there's a lot going on. it has to be sorted out. what you are seeing is an illustration, so far, of the failures. it all comes down to the house leadership. >> thanks for taking the time to give us ae call as we watch the markets which had been trying to go positive and were looking moderate it'sly at gains across the board. albeit not by a lot, but nonetheless, the sentiment on wall street clearly changed once this news did come out. we'll take a quick break and come back on the other side and talk more about this. the reaction in the market and so much more right after the break. here at td ameritrade, they work hard.
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wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this.
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take a look at the markets right now. you can see that the sell-off is picking up a little bit of steam. the s&p is one-third of 1% lower perhaps on this news that kevin mccarthy has pulled out of the race for house speaker adding only more uncertainty into this situation here today and that's probably why the market is selling off and picking up a
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little bit of steam. food stocks are moving. mcdonald's is on the move along with yum brands because of various calls on wall street. shake shack also moving as well. let's take these individually. yum brands is coming off its second worst day ever, pete. >> struggle in china. >> struggling now. if you're buying the stock, what is your hope? that they do the china spin? >> that there's some kind of spinoff. you can see there's certain strengths when you break apart where they are, you know, geographically but also within the company. the struggles in china is weighing on the stock when you consider how much of the revenues come from china, it's just a weight on top of yum for a while. if they can pull off a spin, scott, that does certainly open up things. people would love to be owning yum if it was a north american brand or something outside of china which is odd to say. >> give me a thought on dominos. they missed, currency is an issue, but there's other issues
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as well. >> i was surprised with the number of stores they have outside the u.s., 7,000 stores outside the u.s. versus only 5,000 domestically. i would have thought it was the other way. domino's has worked well, so to have a correction that is the catalyst being fundamentals i think is warranted right now. i would not step in right here and buy it. i would wait a little bit, see if it is able to stabilize, but i think something has clearly turned and most importantly what has turned is the fundamentals. >> it will be interesting because i think patty doyle, the ceo, is on with cramer tonight on "mad money." you'll get the real picture interest doyle on where things stand. i don't know if it's hard, doc, to make the move in the stock before you watch the interview between jim and doyle. >> i would wait on that one, judge, but easterbrook over at mcdonald's because one of the stocks here, this one is outperforming like crazy. you look at some of the biggest names against them, they're all sliding to the downside going
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from the upper left to the lower right, the opposite of what you'd like to see. so mcdonald's obviously an endorsement of easterbrook and of some of the perhaps the changeover with the breakfast all day long and all that kind of stuff. so that's positive over there at mcdonald's. >> by the way, mcdonald's got initiated today. suntrust has a buy, $117 price target. shake shack. who wants to take this? big shareholders filing to sell -- >> josh brown on the phone. >> 5 million restricted. >> i think the problem you have is the way the market has been completely fragmented. you go back ten years ago and it was mcdonald's and a few other smaller sisters maybe like burger king that were the market. now you have shake shack, you have chipotle, you have mcdonald's and the problem is there's only so many consumers out there. the pie is only so big. i'm not that bullish on the sector. we don't have a holding in any of this industry. >> i think it's a testament to how hard it is to invest in these ipos. unless you're in at the initial
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price, it's very difficult in the days that follow without an understanding of what the fundamentals are going to be over the multiple quarters forward to invest in them. trade them, yes. invest, no. >> quick break. game plan for the second half comes up next.
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three hours to go in the trading day. second half playbook coming up right here. doc, give me a top trade for the second half. >> i like joy, joy global. we started to see a bunch of activity yesterday, judge. that activity continues in here today. you heard the call from i believe it was morgan stanley yesterday when you were at jury duty that they were saying by 2017 they see substantial upside for many of the -- >> by 2017. >> what's wrong with that? >> keep going. >> they said 2017. it's moving today -- >> a lot of babies will be thrown out with the bath water
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by then. >> we've heard tesla throw out 2025 so 2017 is pretty close, right? >> mccarthy speaking live right now. >> the one thing i have always said to earn this majority, we're servants. we should put this conference first, and i think there's something to be said for us to unite. we probably need a fresh face. i'll stay on as majority leader, but the one thing i found in talking to everybody, if we are going to unite and be strong, we need a new face to help do that. so nothing more than that. i feel good about the decision. i feel great to have my family here, my colleagues. i think we're only going to be stronger. we fought hard to win this majority and turn this country around, and this -- >> you said you were going to run for the speakership. why change it? what happened in those four hours? >> you know, we had our conference, and there's calls
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into the district. i don't want making voting for speaker a tough one. i don't want to go to the floor and win with 220 votes. i think the best thing for our party right now is that you have 247 votes on the floor. if we're going to be strong, we've got to be 100% united, and i think, you know what? let's put the conference first because that's -- [ n [ inaudible question ] >> we have been thinking about this throughout the week trying to see if we can get there. i just think it's best if we have a new face. >> mr. mccarthy, how much did your comments about benghazi last week play into your decision to step aside today? >> well, that wasn't helpful. yeah, i mean, i could have said it much better, but this benghazi committee was

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