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tv   Fast Money  CNBC  October 16, 2015 5:00pm-5:31pm EDT

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rnings and don't kaelly care about it. >> we cant to see the color and the guidance and the comment youry. >> we'll check it next week. sara eisen evan newman. "fast money" begins in moments. >> the self-driving car. that looked like fun. guy did virtual reality. guy in the sky. that is a little hint. >> i want a v.r. version of guy for our next hit. that would be cool. >> a better version. thanks kelly. "fast money" starts right now. live in the nasdaq market site overlooking time square. our traders on the desk. tim seymour, josh brown, brian kelly, guy adami. now steve bomber and what is it about twitter that has the richest people jumping in and who should be next. plus netflix releasing a film today and it could be a big deal to the stock come phone. we'll explain in a special report. but remember the august swoon. stocks have recovered all of the losses but it could be china
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that holds the real key. some earnings feeling the heat. yum and wynn with the heavy exposure to the country and next week we do get key data with heavy ties to china. ibm, microsoft, google and mcdonalds. and we talk about the slowdown but it is right here with us in the earnings season. >> some of the most important stocks. we talked about mcdonald's with tommy. dan nathan was on the desk. it trading from 82 down to 68. we talked about 65.5 being key support and it held and it has bounced nicely. so though it appears as though things are ratcheting down in china, a lot of the stocks overshot to the down side and yum included by the way. >> it doesn't all come down to china. >> really. you don't think gdp and all of
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the earnings reports and what they say about china. >> direct exposure is 1.6% of revenues and we get 4% of our gdp from e.m. and china is 1.5% there. and the numbers out are very important. and the positioning going into the numbers, and we know china has been weak for three years. if we look at companies that are hedgered or tethered is the word i'm thinking about, you have the fast food and the tech companies, apple is 27%. these are the guys where the guys have pointed to the china growth model that important but i don't think it is important here and we've overreacted on the way down. >> but china is what started this. >> the deval. >> which was an over reaction. >> maybe it is but maybe it is not. but now we're back up and we reaced everything that we lost on. >> that even if china is stable i think i'm more in your camp, where we've overshot on the china side and now think about
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what the fed will do. the reason they did not raise rates was because of overseas. now the u.s. stock market rallying and the china news let's call it flat lining the situation in the next week you have the wild e. coyote and so i would be careful in this market. >> if companies come out and say we are seeing a slowdown in china and i get the limited economic impact but if you hear that that will cause, what, ibm to swoon. that is what we've seen before. that is the reaction. >> it would be a better excuse than some of the other stuff, cozy sandwiches blamed the pope somebody else blamed justin beiber and then the chips. and tim is right. the absolutely percentage of gdp
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and corporate earnings from china is not a huge number but the problem is china essentially is 30% of gdp growth on an annual basis. it is how much of the slowdown eats away. however, this rally after the correction from august 24th has been characterized by something that is really well connected to china which is the most heavily shorted stocks were the biggest winners and they tended to be industrials and materials oil and these are all things that are china related. >> does that mean the rally is flimsy. >> i think you need follow-through. and the chinese economy is not getting better. but there may be a shift for e.m. the third week of september we saw 10% of the aum in the big two markets. vw and eem ripped out by investors. 10% taken out in five days. >> that could represent a tradeable bottom and e.m. stocks
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are up 8% month over month since that time. >> and the ovx, below for the first time. that is encouraging for you folks that think the oil rally is in tact and the bottom is put in. and the other side beek talked about 2016 and the s&p being a level this this will gravitate or leave tate towards, i should say. my number is 20.54 and i think it is imperative that we end above that. >> that is one point away. 1850-2050, i don't think i want to be a buyer in this market. >> i agree 100%. >> and we have to move on. twitter. it is popping after the ceo disclosed a 4% stake in the company and that got us thinking about the very interesting makeup of twitter's biggest shareholders. chris sacka there and steve balmer jack dorsey and the saudi prince with more than a 5%
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stake. there he is. >> i'm also on that list. unpictured. >> blue blockers. >> they didn't fit me on the screen. >> what? that is camels in the back? >> i thought he was wearing sunglasses. >> i like twitter here. they were finally embracing the fact they are the largest newsroom in the world and finally getting down to business on that. so i have been critical of the twitter management i thought they were terrible. this is a new beginning for them. so i like twitter here. i think there is more to go in this stock. particularly with the big holders in there now. >> i have a question. is steve ball mare the kind of investor you want to throw into at microsoft who pushed for the nokia acquisition. >> it is just a vote of confidence. >> it is not him. >> he's not a social media visionary. >> he is a visionary. look at that guy. he is righteous. i'm in the b.k. camp. i think this stock will catch
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people off guard. it feels finally the worst is in. would you be surprised to see the stock trading 36 next week and the answer is no. and percentage wise that is a big move. >> netflix is releasing a movie in theaters well here is a clue. >> you like me. right now, you like me. >> julia boorstin is joining us with the full story. plus a slew of big name companies out with earnings next week and with mcdonald's versus chipotle, which will have the better report. and what about google versus amazon. it is take your position earnings showdown style. much more "fast money" right after this. become the only thing you think about. that's where at&t can help. at at&t we monitor our network traffic so we can see things others can't. mitigating risks across your business.
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you just don't know. find a certified financial planner professional who's thoroughly vetted at cfp -- work with the highest standard. we've got some news here on the controversy surrounding fantasy sports. seema mody has the latest. >> dow jones is reporting that the fantasy sports trade association gets a subpoena from the u.s. prosecutor. the subpoena is from the u.s. attorney's office in tampa, florida, according to dow jones quoting sources. they are under scrutiny from regulators and prosecutors, following criticism around the league and the business
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practices. but the main headline here according to dow jones, is a subpoena being issued to the fantasy sports trade association. back to you. >> thank you. shares of netflix trading lower today following wednesday's disappointing earnings report. but today is a landmark day because they are releasing the first feature film online and in theaters julia has the details. >> beats of no nation is in a limited release at 31 smaller theaters across the country. the film directed by the person who did true detective got a 95% audience score on rotten tomatoes putting the millm in theaters isn't expected to generate significant retch. instead it is a play by netflix to qualify for oscars. just to show the netflix range and ability to equip with high quality content and those
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directors who want their films in theaters and have the chance at rewards. some are refusing to show it because it is being made available immediately online. they usually have a 90 day window before it is available on demand. they are working on several films from adam sandler but only the award contenders are likely to get a theatrical release. melissa. >> this is not the first time right, julia, that they are up in arms over this. didn't that happen over -- now the name is escaping me at this very moment but the movie about north korea. >> the interview. >> yes. didn't that happen with the interview. >> yes. the big movie theaters hate the idea of what they call collapsing windows. we want to keep the period of time when a movie opens in theaters and when it is available on demand that is want to -- they want to keep that woend as big as possible. because they want people to pay the big ticket price and the
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popcorn and the babysitter or whatever else it takes. now the interview was a unique situation. i chatted with the ceo of sony afterwards and i said the fact that it did quite well in video on demand does that -- while also having a limited release, does that mean you will experiment with collapsing the window and what lipton said and sony said and others in the industry said was that was such an unusual situation, the threat of terrorist attacks on theaters it is an unusual situation and they don't expect the big studio films to take this day and date release concept, idea of putting films in theaters and on demand on the same day. so it will take the folks like netflix to experiment with collapsing the windows. >> julia, thank you. out in los angeles. what does this mean for netflix? for the week it is down, what, more than 12%. that has been a rough go here. >> netflix is disruptor status
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lives in and starty plays into that. but it gets back to what we were talking about last week or early in the week is this a dumb pipe, or a media company or a software company that you need to pay a ridiculous multiple for. calling it a dumb pipe might be path oraive but it should not be doing that when u.s. growth is slowing the way it is and it is a decent and i think that is a read into the international. everybody said there is competition. u.s. is i think the example of where competition comes into play, and that and also price increases. and do they do a price increase when u.s. subscribers may be weak here, josh. >> if this is a dumb pipe. i want to be in the dumb pipe business. this is company that owns the engagement for a entire generation of people in this country. it is quite remarkable. and i'll speak to the competition issue. no doubt there are more competitors than there had been previously but none of them have gained enough ground to effect
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this company's numbers. please don't tell me that hulu is being considered a serious competitor to netflix. don't tell me a one network thing like a hbo or showtime app could effect netflix. and i don't buy it. and i like when people over react to one quarter's worth of news. this is when i buy the stock rather than sell it. >> and to some of the big -- >> i filibustered. >> and you're going to be up next for this earnings showdown thing and you have to keep it zippy. earnings season kicks into full gear, to name a few. so time to take your position of stock versus stock. earnings showdown what will have the better earnings report. josh is going to kick it off. zippy, mcdonald's or chipolte? >> mcdonald's. >> that is spiteful. don't be that way. >> i can't believe i'm saying it but i think mcdonald's will shock the street. i think the breakfast thing
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gives them moment. chipolte it is tough to follow through earnings time. >> good job. and beakers on sunday google versus amazon. >> i'm going to pick google not amazon. and if you think about what amazon has done they've gone several quarters where they are making money and showing everybody that we can make money. we'll have good revenue and we're not a losing company but yet they have to start spending money and that could be this quarter. so the way amazon has traded i don't want to be in that, i would rather be in google. >> are you sure google? >> yeah. i'm pretty sure. yeah, yeah google. >> he's breaking everybody's chops tonight. not just mine. >> he said amazon first and he met google. and on thursday caterpillar and boeing. >> and dan, what do you choose.
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>> i choose caterpillar. we know that the farm land and the construction coming out of china is week. in terms of boeing it is an order book that is impressive. it is a stock prices in and trading at a multiple. i'm not sure it deserves these levels. i think it is vulnerable. if you ask me which stock to trade, i might be more opt to look at caterpillar. >> but you think the upside is in caterpillar, and i want to make that clear. >> that is what is tough about the game. it is more about one than the other. >> but the rules of the game as we've explained them to the traders are the better earnings. >> i haven't seen a copy of the bylaws. >> you signed them. >> on to biotech, bio gen and eli lilly. who will have the better earnings report. >> bio againgen and do the ding ding ding. it is being crushed and sold off
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ever since. trades at 15 times forward earnings and lilly is around 22 times. lilly has ho knock the cover off the ball. >> don't think they will. i think bio gen is better than a beet by lilly. i think you'll see a rally. so i'm playing the game wrong i'm sure. no i think bio gen is a better stock, given the earnings they report on october 21st. >> thank you. >> still ahead, g shares hitting a high. we'll tell you about it. your melissa and you're watching "fast money" here on cnbc. here is what else is coming up on "fast money." >> this is guy i'm here in staten island at the future of story-telling virtual reality event. got my rip glasses and i'm on my birdly and i'm going to put this on and we're going to go for a ride.
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want more? get the lowest price on iphone 6s with trade-in. zero upfront and just 5 bucks a month with jump! on demand™ get it now at t-mobile. welcome back to "fast money." as the world of virtual reality continues to explode we sent or intrepid trader guy adami, to
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find out the way people are trying to capitalize on oculus technology on this edition of fast to the future. >> i'm out here in staten island. the future of story telling, virtual reality conference. this is nuts. next to me is max reiner. max developed and founded birdly technology. this stuff is pretty cool. so max, with that what is birdly technology. ? >> it is the dream of flying. usually when you do virtual reality, you just use the visual. and now you have the whole body this kind of illusion. >> explain how it word works in the birdie technology. >> they are glasses for virtual reality so you can wear them and then you have 360 degrees of --
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you are embedded in the virtual scene. what you have here it is the main part. you are a bird so you need wings and theer are your wings. here you can flip. and with those pedals you control your flight. >> this is my flap? >> yeah. >> this is crazy. looks like i'm headed downtown. i'm picking up some speed. empire state building up ahead. let me git my wings flapping don't want to hit any buildings. oh no haven't gotten nauseous yet but still early. there is the met life building. absolutely feel like i'm flying. and the things are flying by me. i have the wind in my hair. this is pretty crazy, i have to tell you. simulation over. >> now can you fly into buildings if you are not
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careful. >> yeah, but then it crashesch the whole thing goes black. >> was your heart racing with you going crazy. >> wise guy. i'll tell you what i got, cautious. i think that is going to be a huge problem for them going forward. i just got cautious watching myself do it on the tv set right now so you can imagine when i was on that gurney what it felt like. >> did you take your goiter pills that morning. >> what kind of bird are you? >> i got so nauseous. >> if you were a bird, what bird do you consider yourself? >> a falcon. >> why? >> that is interesting. >> that is a bad bird. they can fly. >> i think a seagull -- you. >> don't tell me what kind of bird i am. i am telling you i am a falcon. >> you can't give yourself your own bird. >> you asked me the question. >> what kind of bird am i? >> pigeon. >> with that. >> guy said that.
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>> let's trade the virtual reality space. tim, where do you go? >> facebook. i think if they were going to make it work i think it will be interesting but the movies i don't think that is a big deal. that is not why i own facebook. because they have 20% of the internet usage. facebook is the stock for the long-term. >> joshy. >> i agree on facebook. fourth and first quarter rollout, it could be tremendous and even if it is not, not in the earnings estimate so it is all pure upside. >> what kind of bird would you be? >> pigeon. >> penguin. >> doesn't fly. >> why are you so quick to agree with that? we'll talk later. >> maybe. >> so with me i'll go in video. >> because i'm so cool. >> i'm going with nvi dea. facebook, i get it. but it won't move the needle right now. this whole space is difficult to
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invest in. so this company, you need a lot of graphic chips. they are already dipping their toe into the space. and videos ripped on the last couple of weeks. bee careful, you are buying it on a dip. but it is a buy. >> i'm with the penguin and the seagull over there. they will figure this out. >> seagull, it is an upgrade. any way -- >> you are a seagull. >> that is it? facebook. sorry. that is not my final trade, that is how i play the virtual reality. >> goldman sachs was oversold this week. i think on their thick and it is coming back. >> jb. >> beakers. >> stick with the bird theme, twitter, you like it. >> and get ready to get stomps out of that rig there penguin boy. this was a fun show. >> glad to have you on. >> real quick, congratulations to the mets and their fan base. they deserve it. that is a big win.
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>> that is a big of you. >> and amazon is breaking out. >> that does it for us here on "fast money." we'll see you back here on monday at 5:00. but don't move "options action" starts right after this break. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on.
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(laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern.
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next on "options action." is the gold rush on. which way to play gold prices. to put the odds in your hey there. we are live from the nasdaq markets and on this friday look who is back. the chart master. so while carter and the guys are getting ready, here is what is coming up. >> so what do we do? >> one sector could hold the clue to where stocks are going next. we'll tell you what that is and how you can profit. plus tech showdown. not quite like that. we're talking about names like microsoft, alphabet and amazon which all report earnings next week. one stock is set to have a huge move. we'll reveal. and netflix shares are doing something very strange. >> tell me what we're talking
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