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tv   Fast Money Halftime Report  CNBC  November 2, 2015 12:00pm-1:01pm EST

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22 case of e. coli reported customers who ate at six restaurants in the region. the company says an abundance of caution led them to cancel it. we hope those people are feeling better and the outbreak doesn't spread. >> absolutely. let's get to wapner who has a big show with citron. let's get to the half. >> all right, carl, thanks so much. welcome to the halftime show today. joe terenova is here. our game plan looks like this. valeant latest. the man at the center of the controversy is with us today. he join us in a cnbc exclusive interview. the earnings outload ahead of fit bit. and the setups and the trades to make you some money. the winning streak at stocks now at five weeks and counting.
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the largest stretch of the year thanks to an october to remember. now with november, what does the homestretch of 2015 hold for investors? ed, it's great to see you again. you have quite a headline. you're the most cautious you've been in years. >> cautiously optimistic than i've been in years. look, i'm really not happy with what's driving this market. i'd much rather see revenues doing extremely well. earnings doing very well. but it is what it is. we have bibauy backs and m & a. >> it is what it's been. >> yes. >> that's been the story. so why -- why grow more cautious now? when the narrative has been the same for the last many years? >> look, i've got 2150 on the s&p 500 by the end of the year.
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i didn't flinch. i thought they were an etf meltdown. i've got 2300 by next year. this is not being driven as much by the fundamentals. i think the fundamentals were pretty good until really last summer and what happened was commodity prices came tumbling down. the dow went soaring higher. >> it looks like in 2016, the problem for the economy, the problem for the markets is going to be the collapse of the -- from the efficiency of technology, the absence of demand. how is it exactly the momentum builds again and we begin to have pricing power accelerate? >> i'm cautiously optimistic. the caution comes in exactly from that concern. there's a difficult pricing environment now. and it's hard to see how that
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changed. i don't think that's going to be passable through in the pricing. and then global demand. with the easy monetary policy we've had for five, six years, to be seeing this kind of slowdown is a concern. but that doesn't mean that the market can't go higher. it could go higher, leading to increasing perception that the central banks are going to continue to flood the system. >> you surprised the way the market has rebounded? five straight weeks of gains? october the best in four years? you see that coming? >> it was august 25th, a tuesday, the market has fallen. i think that was the low. i didn't expect it to go straight up but i held on to my 2150. >> you think it moves this year? >> i don't know, i mean, i don't think it matters. if they do 25 basis points. going to get up at the press conference and say, don't take this too seriously.
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just 25 basis points. we're not going to do it again any time soon. just get it over with. the drama. it's like, enough already. >> if i'm reading you right, as far as the reason it's not going to matter all that much, number one, it's a very small move. 25 basis points. in addition to that, with central banks around the rest of the world pushing rates down, our rates are going to be -- >> it's being discounted already. i mean, as a matter of fact, they should have that back in september when everybody was expecting it. so 25 basis points isn't much. however, if we're going up 25 basis points and he's going the other direction and car rat that in japan is going the other direction. then the problem you have is a strong dollar. gets me back to cautious optimism. i think the united states economy is the leader of the pack here. we've got the growth but it's leaking because of the currency. >> i would just point to one thing that maybe should be covercove
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err ed today. it's been what's ailing the market. which is across the board weakness in small caps and a lack of participation from health care. both of those two things are going the other way today. health care is the best sector in the market by a long shot. and small caps are leading large caps. the reason why that's important is in order for people to say, okay, i want to pay above the new high, they've got to feel likeal has changed. the only thing that changes is really with the market. it was not as bad as expected. we think the fed might do something in december, might not. the market's saying 50/50. what's the tiebreaker here is to see a big breakout from a majority of stocks. last week, we saw something really interesting, scott. we basically saw a scenario where 80% of the s&p was back above a 50-day moving average and trending higher. today, you've got small caps going wild. the market basically grinding through resistance. really doesn't care about the fact that friday was a weak
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close. and the only other thing worth pointing out. think about the qqqs. that's really the best performing area of the market. if you look at the equal weight nasdaq, it's really only up 3%. that difference where three stocks have made most the gains. if that's in the process of being cured, that's really going to be a green light for people to pay above those highs. >> when you say it's tough to pick stocks, are you inclined to pick value stocks over growth? because there's a significant conversation developing as to what is going to bleed going forward out of favor, maybe back in favor. >> my approach is top down. from a top-down approach, it seems to me almost sector neutral makes sense here because m & a is popping up everywhere. you're seeing more of it because they're trying to consolidate. they're trying to have
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competition. i think you can pretty much just make an index approach to the market. >> is there any -- specifically anything you say where you say, you know what, we're getting through earnings season. is there an area where you say it right now, but i do like this sector a little bit more? because it sounds like you're -- >> i mean, yeah, i mean, if you want there to be more specific, absolutely, i think the market wants growth. and growth is hard to come by. i think that's why there's so many large cap nasdaqs. i mean, the high-tech stuff has been absolutely monstrous. so it's kind of -- reminds me of 1999 all over again. >> but the bio tech world, the reason i press you a little bit. i look at health care and what's performed through earnings season. but then you start looking at the am jens, gilead, there is growth out there. is that sort of an area?
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>> i think the market has a tendency just to go from one area for a while, pick that a while. then the rest of something else picks up. i think it's been a very broad-based market. >> that's where i want to end actually. you sort of noted when you do come on at least the last few times you made the distinction of past bull market periods and saying we haven't entered that final stage yet of euphoria. where are we in the cycle? if your just look for 2016 is really muted as well. >> well, i hate to say this time is different but it hasn't been different so far. look at where interest rates are. there's a possibility this could be one of the longest expansions on record, the way it's going. that kind of throws all these phases of the market by the way side to that extent. >> turns it on its head. it's good to have you here. good to see you in person. coming up, from the e. coli outbreak affecting chipotle to an upgrade for wendy's.
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we're trading the food stocks in the news today. plus, the short seller at the center of the valiant controversy. andrew left of citron research.
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welcome back. valeant shares down, wiping out nearly $60 billion in market cap over that period. the stock, a hedge fund favorite, has been in free fall ever since a short seller questioned the company's business and linked it to enron. the executive editor of citron research is with us. welcome, it's good to have you on. let's talk about this new report. you put out a tweet promising updated allegations, quote, dirtier than anyone has reported about valeant. now you've somewhat walked that back. your report today says scitron' last word on valeant. what happened between friday and today? >> so citron's been publishing for 14 years. and my goal is to get a conversation started of stocks that are otherwise uncovered, unnoticed by wall street or stories that are uncovered,
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unnoticed. i realized, starting on friday, the valeant story is taking a life of its own. if you could imagine, we have as citron to release any new moving right now that would be incredibly damning. it would be a lot easier for me to give it to mainstream media who has deeper legal teams, who can deal with the fallout of any accusations that would be made. right now, my role is -- should be known that i put out three stories on valeant. everyone's focusing on only the third one. it's nice to start the conversation but i noticed if you look at the introduction, it's the short seller at the center of the valeant controversy or valeant scandal. i don't want to be the center. the focus should be on the company. i said what can i do to remove myself on being the center and not have people focus on citron or left but rather focus on valeant. >> isn't it fair to say you've
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made yourself the center of this controversy by trying to compare this company to enron? when you put your tweet out on friday at 11:25 a.m., the stock went down 10% from there. now you come today and say, in fact, i don't have anything new. were you contacted by the sec over the weekend? >> no, i was not. i was not. it had nothing to do with any trading. nothing changed in any of my trading from that time to the time that tweet was put out. it was something that my legal team, we decided what was best was to go ahead and take any new information and give it to more mainstream sources and walk away from the story so people can stop focusing on this story being a short and long story but rather focus on the information. >> do you regret, though, the enron analogy? even though who have been critical of valeant, scoff at that? charlie monger, berkshire
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healthway for example says some of what they've done may be immoral but it's no house of cards like enron. what's your response to that? >> okay. first of all, let's use the word house of cards -- that was actually used, a term that was brought up by morgan stanley when they were looking to buy. referring to the business model of valeant. so that was not my term. second of all, if you notice, i put a $50 price target when i put the enron story out. everyone knows enron went to zero. third of all, when you say enron, and something is enron-esque, what was enron doing at its nature? it was making undisclosed related party entities to go ahead and alter their true financial results. as we've seen, that's the same exact thing we've seen within valeant. >> you've said on friday this stock was going to go to zero faster than herbal life. so you have made --
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>> no, what i -- actually -- >> -- where you thought the stock could go -- >> no, read my tweet again. it has a better chance of going to zero than herbal life is what i said. and i still agree with that. and i said that because he had a three-hour conference call depending valeant in which no new information was brought up. i personally believe the main reason for the decline in the stock price was everyone was sitting on the end of their chair looking for him to give some reason to buy the stock, some form of hope in the stock. when his call finally ended, no one saw it, and i don't think anyone maybe wanted to go home long over the weekend. we wake up this morning to see a goldman sach's downgrade. you saw num ruls articles on the stock over the weekend. right now as an investor it's probably best to stay away from controversial names. >> you devote an entire page, in
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fact, page five of today's report, to mr. akman himself. you tweet on friday came during his presentation, as you say. is this more about trying to hit bill akman and his position in valeant than at this point it really is about valeant itself? >> oh, no, it's nothing with bill akman. this is about valeant. i can't make money shorting hedge fund managers. if i could, i would have been the guy who found out madoff, but i didn't. why would i have anything with akman. he's a respected man. he makes big bets. he's very right many times. and is very wrong many times. this is about valeant. if you look at the tone of this interview, it's akman, left, left, short, short. it's about valeant. >> okay, valeant calls your accusations in their words sensational, false, misleading, like yelling fire in a crowded theater, that you've been trying to crush the stock for your own personal gain. how do you respond?
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>> i'm not yelling fire in a crowded theater. when goldman says there's too much heat around this company to actually make it investible and there's going to be overhang on it, they've actually defended the process i'm going through. which is saying there's something really wrong here. >> are you playing on the feerps of investors? haven't you played on the fears of investors? >> fears -- i put out information that turned out to be true in four days. do you understand it's a short sell is the most amazing thing. sometimes you can make an accusation and it will take two or three years. i mean, he'll tell you in the future he still expects it to be shut down. how amazing i was actually able -- it was pure luck i was able to go ahead and find something that shows, that defended the house of cards, defended something might be there besides smoke or possibly some fire and sure enough when the pharmacy benefit managers dropped them four or five days later, it turned out to be i was
quote
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true. that's what the focus should be on here. >> you can say that valeant probably can be faulted for not disclosing more information than they originally did. maybe there was some monkey business going on at filidor. maybe valeant was aggressive in some practices. take all that for what it is. even if all that is true, that doesn't necessarily make what valeant is doing a fraud or enron-like, does it? >> so you're telling me that there's something that can be a half a fraud? >> i want you to answer the question. maybe they should have -- >> there's nothing -- >> maybe they should have disclosed more about filidor. i think investors who have been long valeant stock would have wanted them to do that. maybe there was some shenanigans going on within filidor. we're talking about -- let me finish. we're talking about 6% of
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valeant's revenues. if you take that away, does that make valeant and enron and a possible zero? >> where did i write zero? i wrote $50. with the enron story. so if you're going to go ahead, call me into your studios and accuse me, please get my tweet right, please get my story right. that's exactly how it was. does it make it enron? yes, it makes it enron-esque. i explained it very quickly. after 6%, also understand the case upon it is contingent upon the growth. also, most importantly, do you believe that the misdoings -- don't forget, the whole valeant controversy did not start with me. as you misstated in your intro. it started with the senator bernie sanders requesting information about price gouging in the united states. it then went with their request for subpoena. it then went with valeant
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earning it's discussing how they're not going to raise prices. i came along. so let's keep everything in perspective about the investability of valeant. been you accuse a short seller of making the story up, actually look into the nature of the story. >> no, i didn't -- i didn't accuse you of making anything up. i simply asked you the question about the promise you made on friday to what you actually delivered today. whether it was misleading on your part to do that. an event that drove the stock down nearly 10% -- >> you're naturally assuming -- first of all, you're making these wonderful assumptions. you're first assuming i'm the reason why the stock is down. you're second assuming i'm the reason the stock went down on friday. i wish i had some magic button that made people realize the truth and couldi could press it. the first two stories i wrote, the first one was overshadowed by bernie sanders request for
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subpoena. the second story, the stock actually went up on the day. it went higher on the day. there's no magic button or magic words that i have. it's nice to go ahead and demonize the short seller but let's go ahead. that's okay if you're not. that i'm misunderstanding you, okay. >> i have short sellers on this program all the time. i certainly don't do that. >> okay, that's fine. maybe only in this circumstance. >> well, i'm just asking -- i'm just asking -- i'm asking you the questions that investors today want to know. let me ask you this. >> i take that back. you know what, i think traders might want to know. investors don't want to know. if you believe this stuff, this company's investible, what happens in the course of two hours shouldn't make a difference. >> what's your position in the stock? >> i don't discuss my trades. >> i knew you were going to say that. why don't you reveal it? why don't you be more transparent? there's so much heat on you. it's probably going to come out eventually anyway.
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>> stop, stop, stop. why is there heat on me? i'm not a publicly traded company. >> i know, but let's not be naive though. >> i put out information that turned out to be true. within three days. and instead you have me on and you should be asking me, well, mr. left, that's amazing, you found this story and three days later -- don't you feel fortunate the information came out so fast. but now you're focusing on a tweet that affected the stock for an hour and a half. i just don't find it honest, quotes you're asking. my trading, it's not relevant. the focus of the story should be on valeant. okay. whether or not i made $1, $1,000, $1 million. regardless of what it was has nothing to do. is there information i'm putting out valid. beyond standing by it, think you'll see many government
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organizations and pbms and bankers saying, you know, left might have something. >> i'm told you made $150,000 on valeant options. is that true or not? >> i'd love to know who told yoyou that. i hope not my ex-wife's attorney. >> you're saying it's not true? >> that's great. >> okay. all right. >> that's a great statement. >> i want to say that's not true. you also -- you say in today's report, you say in today's report, quote, our work here done. does that mean you've closed out your short? >> no, our work here in going ahead and trying to disclose more information to the public, this is a story. i like to get stories that get covered. that get media attention. i want to find information and put it out in the mainstream. this story has a life of its own. new any information that i do receive, i will pass on. "wall street journal" did an amazing piece last weekend
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discussing how some of the representatives from valeant are using fake names. "wall street journal" can write that and get away with that, if you can believe that. i'm actually held to a different standard than that. "wall street journal" has deeper maybe better attorneys than i do, or maybe not. that being said, i'd rather have them deal with it. from here on in, any information i get will be given to mainstream. >> nobody is going to suggest that some of what you brought to light in your various reports is true. you've shined a spotlight on an area of valeant's business that not enough investors probably knew about. that's fair. that is fact. but doing that in the same context of the possible enron, i'm wondering if you have any regrets what so offer, of doing that, of mentioning valeant and enron in the same sentence? >> absolutely not.
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if i said it's enron, it's going to zero, it's a bankruptcy, a price target similar to enron. what is enron? enron was more than a stock that just went to zero. enron was a company that had undisclosed related party companies in order to alter their financial statements. in return, it went to zero, okay. we don't know the whole nature. i still believe we do not know the whole nature of what we're going to see in valeant in the next -- whether it be weeks, months or years. i cannot predict that. >> i don't know that anybody else knows that either. let me read you a statement from valeant that i got today. i'd like to read it, put it on the record and get your reaction. quote, citron admits in its latest report it has no substantiation for further allegations against valeant, given that its last report was filled with demonstrably false statement also about its business. we are not surprised, even as citron continues to mislead investors in an attempt to
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profit by driving down our stock. how would you respond to the way that valeant feels that you are acting and especially with your latest report today? >> i think it is completely maniacically crazy to put the focus on me. when you look at what's come out, in "the wall street journal," in bloomberg, in any credible organization that's looked at valeant. i'm flattered. they've turned me into some character. i mean what am i going to say? i couldn't get my kids off to school today without a fight. i just don't understand how they can blame -- they should be more focused on what has happened to them over the past week. they should be more focused on the people who they're gouging prices of prescription medication who need the medication on the future changes in government laws on their marketing, on their pbm relationships. the fact they issue a press
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release on me, flattering, i don't know. desperate, flattering. let's go get him, he seems to be the easy target. i think they should put out a press release about united, someone else but me. >> what led you here in the first place? how did valeant even get on you were radar? >> i've seen the stock for a while but really was not interested as much. honestly, when i saw martin on cnbc. and the issue of pharmaceutical pricing just came into the mainstream. it's amazing. it went from zero to 100 real fast. i said, okay, who else is guilty of this. who else could have the fallout? immediately, when i started to do my research, i pretty much startleled by what i saw with valeant. then i looked more into the organization. the more i just read and became obsessed with the story, i said, wow, there's a real problem here. and i can't let the stock price dictate what i think the problem can be. i have to look at that.
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and i put out a story. and it's amazing. you actually see, i put out my story the same day bernie sanders made a request for a subpoena. i think it was like an 18-page story. obviously, i couldn't write it that morning. it's been written. again, it was just amazingly fortunate the day i put that story out, the request for the subpoena came. and then the story has unfolded. i mean if you think about where we were with the price for prescription pharmaceutical also three months ago and where we are with the story right now and the fallout, maybe it's a credit to cnbc and the media, sources, but it's gone pretty fast. forced valeant to change their business model as they discussed on their last conference call. >> do you think you could ever go too far as a short seller? you once said, sometimes you got a great story to tell and the biggest challenge is how do i get people to read it. you ever go too far in trying to get people to read the story? >> ever? >> i'm talking about you personally. >> no, i try not to go too far.
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i try to make my story for anyone who's been reading citron. i try to make them entertaining. for the most important thing, i try to make my stories intellectually honest with a slice of humor in it. wall street research tends to be boring. people these days are just inundated with things to read. why not make it more entertaining for them. that's what i try to do it the key thing is, can i deliver intellectually on a story with the wrapping of some kind of humor and entertainment value. that's what i try to do. >> andrew, i'll leave the conversation by reading rig ini remainder. that is, we will continue to gok cuss on running our business in an honest and transparent manner. the story certain lip -- >> they should have said, and the insurance companies who pay for them. >> we'll see where the story goes from here. thanks for coming on. >> have a great day. >> all right, you do the same.
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citron's andrew left. we're back right after this.
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hello, everyone, here is your cnbc news update. president obama is signing the two-year budget deal in the oval office. saying it reflects american values and strengthens the middle class. he added he is confident congressional appropriators will pass that spending bill on time. ford says it plans to offer customers the same auto discounts it offers employees. the program provides hundreds of thousands of dollars in price cuts beyond current incentives. bernie sanders television campaign will begin airing its first paid television ad tomorrow. the minute long spot which costs more than 2 million bucks begins by telling viewers about sanders childhood in brooklyn. a new study finds many kids are now using mobile devices by their first birthday. the survey of 300 parents revealed 20% of 1-year-olds had their own tablet. while nearly 30% of 2-year-olds were able to navigate a phone without help. that's the cnbc news update.
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shares of chipotle mexican
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gril falling more than 2% falling off their worst level so far today. the company says in an abundance of caution, it closed aits restaurants in those areas after the reported outbreak. health officials are investigating cases from customers who possibly ate at six restaurants in those areas. shares are now down 16% for just the past three months. a stock that was very hot at one point running into some trouble as of late. >> guys, how do you size this one up? >> i think it's tough. the stock's down 125 points in a few days. this is tough because when you're serving this many people and your empire has grown and stretched across the country, you're going to run into these things from time to time. the only thing as an investor and shareholder you want to make sure of is the company taking the right actions. even if they're painful short term to make consumers feel good about the brand long term. it appears they're acting quickly.
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they might even be acting out an overabundance of caution. >> 600 big ones to buy the stock today? >> i like the note talking about the benefit possibly to pan nara bread. clean food. obviously doing well. like that, trading around 180. i think pan nara bread is something i would look at. >> one thing you have to watch is when we get to these big numbers like $725 falling down to 600 like he accurately said. it's the same as a $74 stock falling to 62. that's what's going on here. >> do you have a ph.d.? >> i do. >> he's a doctor. >> a doctor. >> where do you see that? it's obviously not good for you, the shareholder. put it in context of, as josh said, 120-point drop. it's a 12-point drop for the same -- for a normal price stock. i think it's a pretty good buy here at around 61. >> you as well, unsuft the way the stock's gone down? >> unjust because we already had
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the price in, right, i understand that people would want to exit because now all of a sudden -- they already had it after the earnings. we've seen some of that sales contraction. we'ved that revenue growth and they continue to expand their stores. they plan in 2016 more expansion. revenue growth will continue. >> what about the e. coli thing? >> obviously, they'll get past that. they can get past these types of things. obviously, this is an issue. they addressed it. they immediately took action. when you look at the stock right here, this thing gets a little bit lower, towards 610, 615, i absolutely think it's a huge upside. >> when you run a food service business and especially one that takes your supply chain so seriously and makes it the centerpiece of your company's marketing. when that turns around and backfires in a specific episode, again, what are you going to do? you have to take question action. they did that with the issue of pork. they seem to have cleared it up. it only took a quarter or two to get back to normal. i don't think e. coli is the new
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normal. i think it's a problem. they'll deal with it. maybe a couple consumers don't come back. but i think the time tested strategy of wrapping your arms around it and being very public, which is what chipotle's always done, it's going to get them through this. >> because they addressed it right, that does create opportunity. one trader says crude is set to rally soon. he'll join us next and tell us why. take a look at the halftime portfolio leader board as well. who's in the lead now? because it changes like every minute.
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coming up at the top of the hour on power lunch, october has been a strong month for emerging
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markets. will those gains continue for the remaining two months of the year? plus with just about 50 trading days left in the year, are we setting up for a merry season or will it be a lump of coal? and the best performing sectors this year. the names that could take that group even hyigher. >> jackie deangelis at the nymex. >> breaking a three-day win streak here for crude oil. china is one of the concerns. also, a concern, record outputt from russia. are we going to expect it to continue here? >> it looks like oil volatility is subsiding. when i looked at the index, we haven't had that critical print or close above 45. to me, that means slightly priced good stability. good stability and the price of oil means the fundamental picture is taking hold. when we trade above 45, maybe
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that's when some of that high production starts to take effect. >> the commitment of traders showing more short positions coming on now. what other levels are you watching? >> look at the $48 level, going back to early august. that's what we broke from. it's recovered. that's an imperative level. now the $48 which used to be the higher end of the resistance. it gets above $48, it's a technical tradeoff at $54, get on board. >> for more futures now, head to the website featue futures now. the one name everyone on the desk likes in earnings. plus, fit bit shares down more than 14% over the past three months due to earnings. 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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all right, welcome back. the biggest names in media set to report this week including disney, cbs and time warner. live from l.a. with a preview, highly anticipated earnings, julia. >> that's right, scott, well, remember, last quarter, bob eager shook up the media industry when he warned about
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the fraying of the cord impacting the results. that sparked a sell-off. analyst reese dus reducing thei expectations. there's no question the hot topic is the bundle. investors will be listening closely for updates on subscription fees, ratings, and ad revenue, plus how quickly digital dollars are ramping. so far this season there is some good news from the three largest cable companies. improvements in video subscriber numbers. comcast and time warner have both dramatically reduced their subscriber losses while charter actually gained subscribers. signs concerns about the pace of cord cutting might be overblown and some companies might be better positioned for skinnier cable bundles. >> we like cnbc tbs the most an rationale is they don't have any basic cable bundles. they have a lot less risk than their peers. >> we have expect plenty of
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questions about digital offerings and whether they're cannibalizing traditional models t . this morning cb s announced a new star trek series. it's the $6 a month streaming service which cbs launched earlier this month. that show and the big push to the app will launch in january of 2017. back over to you. >> julia, thank you. guys, what do we think about this? the last quarter was what really set off the media stocks. >> and last quarter when he stepped up and he started to talk about cutting the bundle and some of the concerns in terms of espn -- >> he being bob iger. >> that's when things started to sell off. the numbers they produced were strong and you look at the pipeline. we're always looking forward, what's the guidancguidance? the guidance would be related to star trek in terms of disney. the pipeline looks extremely strong. if you look at the fall football
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season espn has been crushing it. >> you look disney the best? >> i bought it when it got underneath $100. i plan on holding it a long time. >> how could you not want to look and own disney as pete is rightly doing. the end of july $121, falls one month later to $95. it's back to $115 today. pete talks about espn, there's other things right now acting as a catalyst. think about the film studio. you have "star wars" coming up and the good dinosaur which is going to come out, a pixar film. that comes out over thanksgiving. expectations very high. looking forward you have "frozen." why not disney? yes, you should be in this. it should be a core holding and a longer term holding as it accelerates above $125. >> one of the things we talked about when it first dropped was the fact there wasn't any sports season happening other than baseball at that time. now we're in full swing with the nba back, with nfl, hockey is back, college football, et cetera. this is really a sweet spot for them to come out and say
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whatever fears about espn were a little overblown. it's a seasonally weak time of year every year. i think you will get that. obviously the momentum going into "star wars" which opens december 17th. we all know that's happening but even still we might be underestimating the cultural impact and all of the revenue dollars that glow flow as a res. it's a stock you'd rather be in rather than not be in. >> this was intended to be a broader conversation, not just about disney but that's sort of where we went. there are no other stocks, cbs, fox -- >> i'm in cbs because we had unusual activity last week and because i think they're doing the right thing. it's not because of star trek, although granted in 2017 when they come out with this "star trek" reboot that will be a good thing for hethem. however, that's not the reason to own it now. there's been a flood of institutional earnings into it. like everybody on the desk, i like disney a lot. >> we'll take a quick break and then get you sit up for earnings
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zero upfront and just 5 bucks a month with jump on demand. get it now at t-mobile. let's get you set up for your game plan. there's the heat map today. you do have five straight weeks of gains for the markets. best month in four years as we enter november and a lot of earnings on tap. three hours from now you will get fitbit, aig, look ahead to facebook. what do we think about fitbit, doc? >> said it last week, unusual activity in the name which means institutions getting involved or perhaps levering up. maybe they're already in the stock, they wanted the options. the options have already paid off for them. they're holding them. they haven't closed them out, so as long as they haven't closed them out i think it has more upside. that's one of the ones on my week. >> i'm along for the ride as well. i see what they're doing the corporations. they were in target, now they've gone to all other sorts of
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areas, gone to universities, and i think the explosiveness based on that alone pushes the stock higher. >> i know we will talk about the other names at length throughout the week but shake shack on thursday? josh? >> no e. coli let's hope, fingers crossed. i think with shake shack, look, a lot of expectations here, even though the stock has traded off from the high, i think there still needs to be huge growth to justify the multiple that investors have assigned this name. i'm not sure how the earnings this quarter will go but last quarter was a great report. >> are we seeing a potential danger sign in the stock? put the chart back up, guys, if you could, please. stock is up 5%. i don't know what news, if any was out today, but are we looking at a run up into the number, number comes, people sell? >> could be p.m. lo. look how tiny this float is. doesn't take much to move it up 5%. you have enterprising traders who think they know something the market doesn't know, very possible. but overalled stock is down substantially from the peak and even now, look, i'm long, but
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it's not a cheap name. so i think if there are some specs going into the earnings, it might be because they had such a great report last time. >> what about facebook? is that what you want to talk about, joe? >> to me that's going to be strong. it's been strong over the last couple quarters. let's go back again though and talk about quick serve. pay attention tomorrow morning to red robin. josh mentioned at the beginning of the show small caps. a nice small cap name rrbg, specializing in burgers. the other side of that is blooming brands. watch out. it's been under pressure. >> i will take facebook. so i'm long the name, and i think the key here is revenue expansion coming from places that it hasn't been coming from just yet. the first is instagram, which is happening right now, very small trials with some companies introducing ads in there. the second is video. video ads could be explosive. i think the drivers of revenue in the near term that people don't quite have fully modeled yet and we've heard some things
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about tess from companies like heineken and ford that said the results have been explosive. i'm pretty excited to hear about that. >> ten seconds. >> david einhorn, pxd, that's a big earnings report. >> thanks so much. >> thank you. >> thanks to all of you for watching. "power lunch" begins right now. >> scott, gentlemen, thank you very much. welcome to "power lunch." so glad you could join us. along with sara eisen, i'm tyler mathisen. mandy drury has the day off. we begin the new month with a bit of a modest rally. will october's gains keep on trucking? we will keep you how to play the remaining months of 2015. the s&p may have ripped higher but the big huge funds feeling a lot of pain lately. and is the american housing market turning into one of the haves and the have nots? why when it

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