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tv   Squawk Alley  CNBC  October 20, 2015 11:00am-12:01pm EDT

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♪ somewhere you will find me caught beneath the landslide ♪ ♪ in a champagne super nova ♪ champagne super nova welcome to "squawk alley." joining us this morning angel investor jason from our one market bureau in san francisco. kayla is live at jp morgan's revolution conference in half-moon bay, california. what a gorgeous shot. john and i back here holding down the fort. the dow up 27 points. first up this morning, apple ceo tim cook giving a wide-ranging interview last night at the wall street journal wsjd live conference. he said the new apple tv will ship by the end of next week and be available for purchase on monday. he was more forthcoming than usual on the car business saying
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"i do think that the industry is at an inflexion point for massive change. not just in evolutionary change." he also revealed some new user metrics for apple music. >> apple music -- i know i'm finding personally that i am discovering a whole lot more music than i was before because i was getting into a rut listening to that same old -- those same old songs. so i think it's -- i think it's fabulous and honestly to have, you know, over 15 million people on there and six and a half of those in the paid category in just people just started falling off in the beginning of the month. i'll really happy about it. >> still won't give those apple watch sales figures. says he doesn't have to. jason, we really -- we got a lot of information from cook last night. >> yeah. he was talkative. i think what he has inherited from steve jobs is the reality of distortion. he is basically laming now that
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itunes has solved from a pandora solved almost ten years ago. i wasn't bresed with the music stuff. that's an example of them, you know, not coming out with an all-star product in the 1.0. apple typically comes out with the best product, the most desired product in their first version. >> what can can be difficult to factor in is the sheer size of the stalled base and the fast start. we saw that with the ipad affect. how strong out of the gate they came. then you have to track the growth over time and the ipad just did not continue to have that kind of growth. i think for apple music, same thing. as tim cook said, some of the initial sign-up users are just beginning to fall off there at
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six and a half million paid. that's nice, but how does it growrom here? especially considering mixed panel says ios 9 is now above 60% of the ios installed base. they've sold well over a billion devices. apple music isn't available in every geography. all not all of those are in use. all those cavats. they have a huge install base that should be using apple music. >> yeah. they're 30% out of the gate of spotify's paid user base. it's a fair point. the apple tv, of course, is going to be a hit product. it's a little bit expensive. ist $150, $200, which is much, much more expensive than the sticks we're seeing, which are typically in the $30 to $50 range. the chrome cast and -- apple tv isn't about television. it's really about being the next nintendo wii. it's really a video game system
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in disguise, and the app store is really going to be the killer feature there. you know, we have pretty much product parody between what you get for free in your samsung tv, when you turn on the smart hub. free. you get netflix. you get amazon. you get access to everything, hulu. the apple tv isn't about tv. it's about the apps and the video games. >> certainly he had enough criticism about traditional television saying that modern tv needs to be brought up and modernized, saying it's a bunch of channels, 700 channels, and you can never find anything you want to watch. >> apple tv is going to be a strong product for them, i believe. >> they're a huge share of people who are mobile, who on over the top and are willing to pay. that said, i have to admit, i had forgotten why i want apple tv. why i'm supposed to want the new box. i mean, yeah, games.
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i got enough things i can play games. i can play games on my phone. why do i want this again? apple has the marketing dollars to remind us why we should want it. >> next up, more on a topic we've been talking a lot about. signs of a slowdown. drop box may be able to go public at the $10 million valuation that it previously raised money at. essentially saying the valuation got ahead of itself and the problem is now rippling through the private market. 67 offers have been postponeded or canceled this year. that's a statistic we've been tossing around a lot lately. jason, you've had thoughts on this for a long time. sloot valuation was high, and
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then you have a stock market correction. so you put those two things together, and the gap between, you know, what thee raised that and what they can go public at had very moment that, might be off. >> they have stiff competition. it's going to be a challenge for them to define what they are beyond storage. >> it's got to be a topic of discussion where you at the jp morgan conference. >>. , it's down sharply from where it went public, and the price at which it went public this were
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turning lead into gold. they were spinning paper money, essentially, into these multibillion dollar valuations. i think that we are going to start to see which of those companies were raising money because they needed it for a rainy day, and which of those companies were raising money because they couldn't pay their bills day to day. we're about to see that come to bear. where bobbing evaluation is below $2 billion. if you give the same multiple to dropbox, saying their revenue is half a billion dollars, you are just getting barely above half that $10 billion valuation where they last raised money.
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duh wit for excitement to come back, or do you go public and take your lumps and make due with what you get? >> facebook will be -- >> it dpoendz what the companies -- sorry, jason. go ahead. >> no. i was going to say facebook would be a good core lear for that. they went public and went up a little bit and then tremendously down. oh, my god, are they going to be able to figure out mobile. they have a huge liability. then all of a sudden it comes back, and they're absolutely crushing it. over $200 billion company. you know, these companies have to figure out each of these waves, and then you have massive competition. this is -- there's multiple factors at work in each of these valuations, and what's really 2k3w509d about what's happening, i believe, is that now people are putting really hard metrics to each company and everybody is slowing down. i don't think we're going to have this massive wipe-out where people just kept investing and didn't really do a discerning
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deep dive into each company. theranos twnk. >> jason, the moment taking the internet by storm. the final trailer for "star wars, the force awakens" preer mering last night during halftime on "monday night football." fandango crashed. weren't working properly after all that demand for opening day tickets. the trailer has currently nine million views on youtube and counting, and the next big question, of course, is where is luke skywalker. i'm curious to know what you think of disney's marketing strategy because that line between giving away too much and not giving away enough is interesting. >> yeah. listen, it was tremendous response on twitter and facebook social media.
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>> now have you multi-generation. i'm going to be taking my 6-year-old daughter to see "star wars" and she hasn't even seen the first "star wars" yet. it's going to do tremendous in the box office, and you compare what they're doing in the marvel universe with many films and an entire, you know, dozens and dozens of film, they might go the same with star wars with bobofat and rogue one. disney is a tremendous company even though they have problems with the cable and the transition to direct consumer. >> your 6-year-old must have a strong stomach. my 7-year-old, i want to take him -- looks like a pg-13 movie. i'm not sure he can handle it. i'll have to watch it a couple of times first to make sure. >> yeah. >> i must say, on the where is luke, we do see that hand. maybe he is gone. reclusive like the jedi and all the other movies. that's what we hope, right? >> yeah. i mean, it was -- jason, the choice for them to use the interest and funnel it towards a cable channel, the same cable
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channel or one of the same cable channels that came under question with all the downgrades in august. that was interesting. i mean, last night you had a lot of people watching cable tv to look at an ad for a movie. >> i really think disney is a tremendous company. with what they did by buying pixar, marvel, you know, and star wars all in the same decade, i mean, these franchises are going to be billions and billions of dollars in annuity for some time to come. >> i must ask, kayla, did you watch the trailer? >> can i plead the fifth on that? >> oh, man. >> baby steps.
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baby steps, kayla. >> she's consistent. i love it. >> at this point it's just too fun to give you guys a hard time about it. >> believe me -- >> how many times? >> jp morgan for years has had a it rags for a conference to tap into the mindset of what their west coast clients are thinking. this is the inaugural event with ceos of both public companies and private companies talking about levels of confidence where slowing growth of the old guard meets with some fading -- for some of the private companies that previously were growing at break neck paces. one of the most influential bankers out here in the valley is a guy named noah wintrop. fortune's 40 under 40. he is the vice chairman of jp morgan chase. we sat down with him yesterday
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to ask him a little bit about this friction and how jp morgan uniquely is facing this on. here's what he told me. >> what magically we do at jp morgan is have the conversation 234 a very fair way, and really honest way with our customers that are incumbents about what's going on around the corner much disruption and with disruptors and how to make bluechip built to last companies for the next 100 to 200 years and really fundamental. >> the client facing business, they don't work for any given sunday, but we can did ask whether jp morgan's balance sheet helps them get some business. we asked them about the confidence in the boardroom and what the ipo market means, and we'll have more from that conversation up later on "squawk alley." guys, back to you. >> sounds good, kayla. a lot more from her later in the hour. check in on the markets. dow has erased an 82 point loss, although we've settled into the red just slightly by seven points. monitoring a speech from yellen today. speaking at an event of the
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labor hall of honor in washington. not expected a policy speech, but we'll update you of any headlines as they come. when we come back, some big stock stories this morning to get to. yum spinning off the chooirn business. we'll get some proprietary data on yum foot traffic compared to mcdonald's. plus, ibm, another disappointing corner, and get a slew of downgrades. a lot more on ibm's slide, and will the stock awaken? disney did hit the speed bump back, and it's been coming back ever since. we'll talk about that when "squawk alley" continues in a minute.
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>> particularly in software which has been a stronghold for them. it's where a bulk of their profit comes from. also, in global business services. what's becoming important is the growth rate of these cloud businesses. we see something in the 20s for
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ibm. amazon has been growing its cloud business in the 80 plus% range. we can see the gross margin on that. we have a vm wear report. it probably has a little more to play into this. they will try to get done. what vm wear says about how the growth is playing. enterprise traditional versus cloud growth. this ibm to amazon dynamic is going to be a really interesting one to watch. particularly on the growth rate now because we're starting to get those numbers on the infrastructure side from amazon, which is on so important. >> stock 141. man, continues to test these levels that it's been at a couple of the times. tony with bernstein earlier this morning. >> the apple partnership sent
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doing them favors. you talk about services coming underweight. they had hoped to come to the enterprise. >> including the ipad and the 6 s and 6 s plus flows through the enterprise. >> trying ho told the 50 day. >> new data. we're going to dig into that.
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>> on a morning when yum brands -- we dug into their business on taco bell breakfast visits and what that might reveal about mcdobld's recently launched all day breakfast menu. here to break it down is cfo
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genglick. he joins us once again. jeff, it's good to see you back. >> good to see you, carl. >> you are measuring traffic, essentially, just passive foot traffic, right? >> that's right. >> what have we found from mcdonald's since they launched this thing? >> the good news is consumers seem to be loving it. we're seeing foot traffic up 9% across u.s. locations. that's 14,000 mcdonald's stores. both for active check-ins and passive desection. showing a 9% lift since the launch over the first. >> when taco bell did the same thing, they saw a multiple of that. >> taco bell is a good comparison because we saw 21, even 25% foot traffic increase when taco bell in may 2014 launched for the first time. menu items like the taco waffle and things like that and so you saw a whole new day part open up for taco bell.
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these things tend to fade. if mcdonald's were to learn there the taco bell experience, they had the 25% foot traffic initially, and it fell over time over six months back to about 5% to 10% foot traffic gain as the novelty wore off, and that's significant for them. just in q2, they announced that it was added about 7% to their sales, the whole breakfast thing for taco bell. if mcdonald's were to follow that same trajectory, you might expect the big initial lift might over the next few months fall back to 1% or 2% gain. what that means for sales is another question. how is your measurement capability different this year from what it was last year and what are you going to be able to show? >> well, we would love to be back with you to talk about black friday. we're gearing up for black friday analysis, and one of the
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interesting questions this year will be how early black friday starts. last year it started creeping into thanksgiving day. we'll be able to look at that with our foot traffic. again, we have millions of users, and we're able through detection to identify when you spend five minutes in one of 65 million businesses. we identify it through wifi signatures. all the nearby wifi access points. beacons. there's 100,000 blue tooth beacons installed around stores, and gps signatures. that lets us understand where phones are going, and by definition to people that go with those phones. >> a lot of your users don't explicitly know that you are tracking those things. is that okay? or at a certain point do you need to get a higher level of buy-in than, well, you downloaded the app, and now we know where you are. >> all the information is anonymous trends. secondly, every one of our users opts in double opts in, and the reason they do that people tell us all the time we give them a great value.
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>> we know it's a new place, and we'll send you tip from your friends on what to order. it's a bargain with consumers. again, we're very privacy centric. there's full double opt-in, and they're getting value from it every day. >> we know where they are. we don't know what they're spending, right? doesn't give us any kind of sign on ticket. >> correct. >> what about day part. are they come in more? is the growth most in the morning, middle of date, middle of the night? >> that's a great question, carl. interestingly, for mcdonald's the growth has been biggest in breakfast times.
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>> they don't have a new category to go into like taco bell, but for a brand that's had seven quarters of same store sales decline, this is really a shot in the arm. it's exciting for them to see. sfroo we are watching some of the pricing signs on ferrari tonight. >> breaking news on the ferrari ipo. it is set to price after the market closed today as high as $53 per share. if it came at that price, that would be eh $1 above the intend the price range of $48 to $52. up until this morning we were hearing that interest was strong and that a $52 price or thereabouts was likely. that would be a nice price level for this ipo. especially following a week in which one ipo was postponed amid negative pricing pressure and
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another came public below its price range. >> there's so much it could support a $53 price so it could be above the range. >> that is interesting. as robert frank this morning, kate said, harder to get some of the shares in and it actually gets a real ferrari. we know you'll be on top of it. >> we've baeshgly broken it is four-day winning streak. it's china-related stocks that are edging lower. the big news actually coming from the european central bank, in advance, of course, of its meeting tomorrow and then the day afterwards when they'll finally have the news conference suggesting that bank lending conditions are easing in europe. basically the terms and the conditions for loans across the board are getting ease wrer. partly because the margins in which they're lending is so low,
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and because of competition. you're unblocking the lending channels, which is what the ecb is all about, of course. it's one reason perhaps why the your wroe is tracking higher. good news being bad news if you know what i mean. it makes it less likely that they'll talk about an extension to qe at that ecb meeting. the euro, which has been under pressure in anticipation, slightly just moving higher there as you can see, and christian has been the second senior member of the european central bank to play down the idea that there would be an extension to qe. he says it's well calibrated and does not need to be altered at this particular stage. it looks like sed exbuy of tft is going to go through unconditionally from the european anti-trust authority. tnt express is jumping, as can you see, and indeed is posted now which has, of course, the financial relationship and real good news within launching. we've had a lot of the big hotel
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companies guiding down what they think will happen in the fourth quarter. today ihg, intercontinental, holiday in's, crown plaza today came through with the revenue per available room figure, which is the metric that they use up 4.8%. it's lifted in london, but also the bigger players or the big players here in the united states. let me just show you day one of the chinese president's official visit to the united kingdom and meeting the royal family. obviously, this is all about diplomacy, and perhaps more importantly, deals being done. gf has become the first investment manager from china to say it's going to set up in london as it expands into europe. that's wrelt to be confirmed. you can get confirmation on that sort of thing. i'm not sure.
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back to you. >> as you just heard, good indications for ferrari tonight. kayla will have more at half-moon bay, california. kayla. >> carl, we're going to have more from our exclusive conversation with jp morgan chase vice chairman noah wintrob talking about whether there is, in fact, a chill in the ipo market, whether we'll see more acquisitions, and what the confidence level in the boardroom looks like. all of that coming up on "squawk alley." but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.
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>> li, everybody. i'm sue herrera. here's your update at this hour. slovenia's president is asking the european union to send traditional police forces to deal with migrant flows. no, city firefighters spending sel hours balancingsing a five alarm blaze at a ten-story building early this morning. the building was under construction. it was slated to be a luxury apartment building. no injuries reported. >> lamar odom has left a las vegas hospital and is now in the los angeles area to continue his recovery. that's according to a family representative. he was found unconscious at a las vegas brothel a week ago. hershey's iconic kisses are doubling in size. the company launching the new product in the u.s. it's going to be called hershey's kisses deluxe. apparently it's flecked with
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rice crisps and has a hazel nut center and will have a gold wrapper instead of a silver one. it will be available in stores in november. just in time for the holidays. and that's the cnbc news update this hour. back to skwaul squawk alley, and kayla out in half-moon bay, california, and, you know what, she's making me jealous. it's really beautiful out there. >> ibm still weighing on the dow. utx is managing to offset a lot of that with ma massive buy-back they announced with the sales of the proceeds when they finally do sell. >> let's get over to half-moon bay at that jp morgan conference. hey, kayla. >> hey aring carl. sfwloot conversations are people talking about the health of the capital markets.
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this notorious of the tech sector and whether you continue and just how healthy is the overall economy. the pace of company creation. and vice chairman nobodia wintrob about just how honest the conversation and the dialogue with clients has become in this market. here's what he said. >> we frame our conversations on a 20-year horizon. we say where do we want to go? there are a lot of events along the way of financing, public or private. buying companies. potentially selling your company. the question is where do you wa tgo? what -- how do you create defensible moat for the business that you want? then what do you need? do you need capital, relationships? once we figure that out, then we can help facilitate that in any way the customer needs.
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>> we've seen a lot of companies that are going to access the public markets. i can't comment on ones specifically we're working with, but i can tell you that there are a lot of companies that ultimately do seek on to get access to capital in a public way, access to debt in a public way, and we're working with a lot of great companies. any bank says they have the best bankers and advice. jp morgan also has a balance sheet. how much does that come into play? n your discussion with clients? >> two really important competitive advantages for jp morgan are the fact that we have a large balance sheet and the right people to deploy that for the right opportunities for our customers and that our roots are being a consumer bank. when we look, we have a really good view of the u.s. consumer and we touch the u.s. consumer
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like many of our clients. it's a real differentiator out here. add that to an incredible team that keeps growing. i think our britney spears days are ahead. i'm excited about the bank and i'm really excited about the bankers that we have. >> we value the credit and the opportunities out here and feel like we're really set up and we all know each other reallying with. we've done a good job doing that. >> how has the volatility that we've experiencesed on wall street in recent months trickled into the private markets? in what ways have you seen evidence that the two are related? >>. >> one thing is it's more
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episodic. in the private capital markets, can you make a long bet on a company. it's usually episodic. it takes a little longer for those markets to rationalize any changes in valuation. i would say that if you looked at the basket of all the great disruptive companies out there that private investors are looking at or public investors investing privately, i think you would be really excited about the overall opportunity. i think there's a ton of value to be created. >> not every sector has the sheer optimism and overconfidence that the tech and the internet sector has been known for in recent years. i'm just wondering if you can give us some commentary on overall confidence in boardrooms, in the sea sweep and where generally your clients think the market is going. >> yes. larry summers once told me that confidence is the xheepest form of stimulus. i think it's very true.
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>> there's questions. >> it is easy for companies out here, guys, as we know, to be optimistic. capital seems to be endless for a period of time. that might be coming to an end. here's why you should trust someone like noah wintrob. his clients alibaba, facebook, square. the list could go on and on. that was the first time that he has been on television. hopefully we'll hear a lot more from him going forward. he is someone who is going to be moving some money around out here in the valley. back to you. >> a name we're not -- we've definitely not heard of last of. that's for sure. great stuff. kayla out west today. when we come back, it was straight up and to the right until earnings capped a rally back in august. now will the new star wars film help disney get back on track? first, rick santelli, what are you watching today? >> i'm watching charts today. you can't see my white board just yet.
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you know, when we look at technical analysis, there's some people that are going to roll their eyes, but it really is a record. it's a record of where money has been bet or invested. pick your poison on that one. by looking back in time, maybe you're not going to find exactly where markets go, but you certainly can find where the pain thresholds rise. we'll talk about all that that's technical after the break.
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best performing stock of the year in the dow, but one analyst says it's time to cash out or go short. he will defend his controversial call in a live interview. plus, a hedge fund manager who says the penalty for being long and wrong is painful. see ibm. dan niles of alpha one capital joins us with his latest plays. will the force be enough to awaken disney shares? our experts debate that stock's next move. carl, see any about 15 blsh. >> sounds good, scott. let's go to the cme group and check in with rick santelli and get the santelli exchange. hey, rick. >>. >> while i'm talking we're going show the chart i look at quite ochbl, and can you see it there. if there's anything that should jump at you, and we'll get to the minutia in a minute, is that the ten-year treasury market is definitely compressing. it soochlsz as though in our rear view mirror we leave the 4 hers trade or higher, the 3%
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trade or higher. what we find we can go back to the end of 2008 and come back with five moves that will help us have a clue as to the sixth and seventh moves. the first major top on that chart you looked at was basically a double top at 4%. now i'm rounding off. a couple of basis points. june of 2009 and april of 2010 basically we hit 4%. when was the next top? september and january. september of 13, january of 14. where of the top there? 3%. it compressed. lower highs. when was the most recent top? well, it was june of this year at 2.5%. once again. fudging a couple of basis points. we went from four, three, to two and a half. not's lo at the bottoms. first major bottom was july of 2012. we should all remember that. it's historic. lowest closing yield at least in modern trading times, when was
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the next one? well, it was this year. 164. a very significant level. made in january. we have higher lower yields. we have lower higher yields. we're coming into a giant wedge. now, exactly how the wedge breaks out, i can't tell you. what i can tell you is if you really want to do the exercise, you can use computers or as we used to use in the old days, log rit mick paper, get compasses out, and what you can do is use a function like gannon and elliott wave do and come up with equations to pick exactly where these levels come out to, but i will eyeball it for you. the wedge is going to break out in one direction or another, but that is defined by around the low 230s on the top part of the wedge and around 185 on the bottom part of the wedge. the 185, that's always a big astericks level because that was the flash october 15 low yield.
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sfroo for the most part sideways and not a lot of volatility. compress continuing. john, back to you. >> all right, rick. thanks for the insight. up next the only time people woet a football game so they can watch the ads. not the super bowl. "star wars" and the hype, and the fans mean for disney coming up next.
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>> people like me expect it to be the biggest movie ever. what is disney going to have to do in the near term? >> well, i think the first thing you have to see is this movie has to work, and every indication that we have today is really supportive of that. they start taking reservations. they're crashing ticket reservation web sites. i can't remember a movie that's
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done that. voo you have hasbro talking about the highend of their expectations. you know, so i think everyone thought this movie was going to be big. it seems to be at the high end or better of everyone's expectations. the leverage on that is huge. you know, if this movie does the type of numbers we think it can do -- you know, avatar type numbers, it can generate $2.5 billion of profit. then you have a star wars sequel every year for as long as the eye can see. that pancakes on top of a disney making $14 billion to $16 billion a segment profit. it moves the needle. i think because people look at movies and they think of it as a black art, as something that's hard to model, they don't put that into the consensus numbers at the level that i think is -- i think there's an opportunity for us to be moving up.
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>> have you a lot of tkt price. you don't need to do avatar type attendance to do bigger than avatar numbers. you have a bigger ticket price opportunity. everything we're hearing about consumer interest in this movie, the early indications, you know, is bigger than any movie i have seen. we've had some very big movies. we had jurassic open this year with an all-time opening weekend record of $200 million. you go on to get close to avatar level numbers. i think most people would assume that star wars could be bigger than jurassic, and if it is, you are in that ballpark. >> you have written a lot about the degree to which sentiment drives this name. we saw that obviously happen in the middle of august. your target is 124, which is really not the not far away from where it was, what, eight weeks
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ago. right? >> i think the business at disney is about half tv. we think the story in tv for disney is better than peers because of espn. you have a very steady afl wrat fee story over exposure to live spots sports, which is better for audience and advertising. i think the other half of disney is really fuelled by what's happening in the movie cycle. you know, i talked about the manufacture profits. i haven't spoken about what that can do for licensed merchandise. i swaent spoken about what that will do over time for the theme parks, but that half of disney, he we think, is a good growth story that people will want to own. >> and so you talk about the theme parks, you talk about the movies that are coming later. none of that is going to show up for several quarters. we're talking about this $124 price target probably within a lot sooner than that. does it all hinge on star wars, or is there something else that we're going to see in the next couple of quarters that's going to determine, you think, the direction of this stock? >> well, star wars is huge,
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obviously, but i think beyond that you have the tv cycle which will be much better as you get into the heart of sports and the football season. the college bowl championships, which were a great rating success last year, and they can sell that this year, and i think we'll see good ad trends on espn. >> then you have the shanghai park watch next year, where i think the opportunity is really large. you know, if you look at a park like tokyo disneyland, which these guys don't own, but they get a license fee from, that makes $900 million a year in operating profit. after paying disney several hundred million dollar a year license fee. i think the opportunity at shanghai, you know, could over time be bigger than what you see in tokyo. you know, that's not on people's models. the opening in shanghai next year is going to be important for the stock as well. >> all right. barton crocket from fbr. thanks for joining us. >> thank you. >> when we come back, a lot more from tim cook on the possibility of an apple car and where he sees the auto market headed next.
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>> what i see is sulfur becomes an yeses leg important component of the car of the future.
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you see that autonomous driving becomes much more important in a huge way in the future. a lot of the major technologies in the car and shift and so it would seem like the -- there will be massive change in that industry. >> interesting talk last night. tim cook talking about the car, and we often call it the largest mobile device. we have a lot of innovation when it comes to self-driving and transmission. that's right. the dash, it's the same as it was almost, i don't know, ten years ago. >> largely the same. you have some touch screens now.
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satellite radio, et cetera. he went farther than any apple executive has in the past. >> when it's big in terms of the amount of change coming to that category, where they can add value. it sounds like it's right for apple. >> certainly working wonder for the stock today. apple has not managed to close above the 50 days day, which has been firm resistance since the middle of the summer. got to go back to july 21. it's on pace to do it today. a bit of a highlight for a company that just has not been able to get over that bar for months. have you apple tv that's going on sale. that's probably not going to do it, of course, in january.
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>> john ledger pushing back that the units night go negative for the industry in q4. let's go to scott whopner, and the half. >> welcome to the halftime show. let's meet our starting line-up for today. jim is here, along with joe, josh brown, and pete. the force awakens as a new trailer for the star wars film drops. why is the street still on the dark side of disney trade? black and blue. what ibm's big miss means to your money and the portfolio of one of our own.


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