tv Fast Money Halftime Report CNBC January 28, 2016 12:00pm-1:01pm EST
overtime. finally this back and forth action has put pressure on the afternoon. we had 200 plus moves in the dow. up or down for the past four sessions. let's get over to headquaters. the judge and the half. >> carl, thanks so much. welcome to the halftime show. let's meet the starting line-up for today. joe is here along with josh brown and pete also on set for the full hour is kate moore. she's the chief investment strategist at jp morgan's private bank. our game plan looks like this. the fang trade, our experts on facebook's big blowout and what to expect now from amazon and why the hottest trades in the market may not be dead yet. under armour rips. that company's strong quarter and optimistic outlook means for the stock and why one bear still isn't convince. the surge of crude oil higher on a possible production cut by
opec. here's where it is trading at this hour. well off of its best levels. it's a gain of more than 7% today early on. so a 5% production cut. what does it mean? >> it shows you the power of saudi arabia in all of this. i remain skeptical of the whole story. we're already hearing that the iranians are balanceking. it tells me that we neared or are in the pain threshold zone. i still think we can go lower but it's gotten their attention. that's what i -- >> so you don't believe the story? you don't believe the headline? >> no. >> do you think there's going to be an opek meeting? >> no. >> maybe others are skeptical too. that's why those gains were greater than 7%. joe had evaporated nearly as
quickly as they ran up. >> i don't know. i still think the market is moving higher. got a range of 26 up to 37 for the year. trying to figure out the fundamentals of oil are incredibly difficult. more sentiment driven and technically oriented. a lot of last week's expiration. what happened on the bottom. a lot of the guys i talked to got stopped short. this week has been confusing. there's been indications that it looked like it was going to roll back over again so here we are this morning. a quick thrust up higher. still think there's more upside. i said to you last week 28.5 is your down side protection. now below 38 and a half. >> nothing else, the headline like this shows you the perils of being short crude. >> he had a record short interest and what happens is i have seen this more often on the long side of things. a lot of times record longs in
this market. when it happens, it's got a tip back for a time so the guns can get reloaded and they come back after this commodity. i think it's going to happen again. i don't think the lows are in at all. you call this a tradeable bounce. that's a great term for what's going on right now. >> 28.75 or so. do you buy these stocks here? i think energy is the best or one of the best performers today. >> actually a week and a half ago on the show i mentioned i bought xle that at a and it's important to separate the oil stocks from oil itself. first of all, the energy sector and the s&p is the second best sector this year believe it or not. only down 6.5%. oil itself, oil can rally 40% from where it is right now and still be below the 200 day moving average. it's incredibly overextended
from the down side. nobody should fall out of their chair when you see a big one day or two day pop but i agree with the gentleman here. it's very rare that a bear market like this ends with a whimper and without throwing out a price target. i woen be surprised if it gets undervalue. >> is this the place to be or not. >> we're not tipping our toe into energy stocks right yet. we need to get through not just fourth quarter earnings but the guidance in terms of cost containment. we talk about the supply side. even if there was a significant supply cut and we're still sitting on a huge amount of global inventory. we don't have a great picture of how big that inventory is because there's a lot of private storage as well. >> it's a little too early to dip our toe into stocks. >> our chief international correspondent sending me a
headline t. no saudi proposal to cut outlook. that according to a senior opec delegate. you don't know what to make sense of it on either side of it. the power of a headline though. >> the saudi plan is to destroy our producers in particular and iran aside, this gives those guys, this pop today, that gave them hope. they could see $40 oil again. resources can get by on 4 had $0 oil and hang in there as an example. >> this is the last thing the saudis want. >> you don't think it's gotten to that point right now. >> from a geo political standpoint they actually can't cut production because the family business is staying in charge of the company and if people are not working or if they lose their social welfare programs they are susceptible to terrorist organizations or radicals making serious in roads isn't that a big part of why
they continue to produce even when it's uneconomical? >> absolutely. every barrel saudi produced is economical because their production cost. >> globally. >> but globally yes and even russia cant necessarily have complete control over their private oil industry to coordinate a cut back. that's the other issue there as well. >> john good stuff. thanks for running over here. appreciate it very much. let's talk about one of the biggest stock mooufrs today. that's under armor having it's best day in two years after reporting that slam dunk quarter. sneaker sales nearly doubling. pete what's your take on this one. >> when you look at this company you actually -- you look at the sneaker sales but that's a very small percentage of this business. apparel was strong. >> it's part of the growth part. let's be honest. it's part of a $1.1 billion quarter. yes it shows growth but growth on a very small level right now but when you look at the direct to consumer that's where the growth is going as well.
that's where they help that so much. they're concerned but there's focus now by the company that they have to do a better job in women's apparel and in the women's department they have to do much better. that's something that the company has talked about. and that's where i think the lulus of the world and nikes of the world have been able to beat up on under armour but this was a great quarter. >> i want you to think about how smart this company is. they did a deal with yale's athletics department. they haven't been in a ncaa championship since the 1960s but yale has a global brand and the people that have fwraj waited that school are all over the place, all over the world in every industry and there's a lot of prestige attached. under armour cuts a $16 deal with this university and sets themselves up to get way beyond basketball and shoes and workout
clothing but to be global. >> is the quarter in the outlook and the performance, whatever, 23 quarters of 20% growth. 28% in 2015 is that enough to justify the current valuation. >> the stock has gone up 100%. the nature of these names is when they get cheap that's probably when you don't want them. the secular growth is over. you have a huge amount of growth ahead of it. that's will be one when the company transitions to a value play hopefully many years from now. >> i thought the internationals up 85% was incredibly powerful and we talked the other day about retail and all about it having momentum. you saw that with lulu and the same thing is happening here with under armour. yale won the championship in 2014. >> i'm talking about basketball. >> under armour hockey. >> seriously. >> my cousin played football for yale by the way. >> not hockey.
>> understood. >> that's a joke. >> i think the important part here is that and i think josh you hit on this that companies that have really strong growth momentum and strong secular growth stories are going to command premium valuations for sometimes. this is an example of the broader market and until people have great confidence in broad economic growth and earnings growth the strong stories are going to be winners. >> despite under armor's blowout one bearish analyst is sticking to her call that investors should not buy that stock today. welcome back. >> thank you for having me. >> did this quarter dispel any growth fears that you and others may have. >> i wouldn't classify myself as bear on the company. i think our bearish concerns are more on the stock and there's a disconnect between the fundamentals and the sentiment. so we're seeing a relief rally today. short interest through the roof recently. there's a lot of negative market
news. there's a lot of people with concerns about the weather and several competitor downgrades since mid january. what we're seeing is people covering those shorts. and they didn't raise guidance. inventories are up 46% but they're also liquidating some industry there. so first quarter down a bit which we had anticipated so, you know, the sector concerns linger into first quarter and i think what we're seeing today really is a relief rally though. we do still have a very positive view on the growth over the long-term. >> not to be overly technical but don't they show you by their results today that it's enough to offset the concerns about inventory. >> for sure. the top line momentum continues.
they're guiding to a first half that's going to increase versus the second half of this year. so, you know, there is continued momentum but then when you dig down into the income statement and we start looking at the structural changes going on in growth margin adding more expenses the earnings power diminishes a little bit. but how can you argue that's not priced into a stock trading 50 or 60 times. >> you made a good call no doubt on a short-term basis when you downgraded in october of 2015. to a hold. we know what the stock has done since then but i just wonder if some of the concerns were overdone. it's down 30% over the last few
months. >> certainly. >> maybe just in the short-term. >> yeah. for sure. we did think it was a bit of an overreaction. negative. just as we see it on the outside, the negative sentiment does capitulate and we saw multiple analysts downgrade it and negative market data but, you know, those were offset by a strong print. so yeah, i think you could play this for a tradeable bounce. however if you look at the landscape of retail right now we think that there's probably a few other names that are trading also very cheaply where, you know, maybe there's a little bit more upside in the multiple. >> appreciate you coming on talking about these blowout results. >> have you missed an extremely attractive entry point for under armour. >> one of the other names trading in a valuation that's
more appealing like a lulu or nike now. and those two both have incredible growth story bess hind them and with lulu you have a margin expansion that they were talking about the other day and there's reasons why you can wait and if we get any kind of a pull back in under armour that would be an opportunity but i don't think you want to chase it. >> you don't think the innaysayr notes need to be back in the drawer. >> remember the day the lot was made about an 800 page morgan stanley note that talked about the stock praised for how thorough it was. raising some very interesting issues about falling market share and particularly womens. >> right. >> when you look at these multiples there's no room for mistake and just off that note alone look at how far down the stock was pushed. you don't have room. you don't have room where if they stumbled during a quarter that's when you see this stock down 25% from the stock.
>> the stock has found support in the low 60s going back to the middle of 2014. do you yourself a favor and give it one more day besides today and see if there's follow through to real buyers because to the analyst point about 15% short position in the name. probably a lot of people don't want to be as short here as they were when it was 30% higher above 100. see if there's real buyers that come. there isn't any rush. you tonight get penalized for pitches you miss in this game. >> what about others? >> nike. some other stocks. >> the thing is its the same sector. but there's only one under armour. there's only one nike. >> but you could see if you're just coming off a conversation by oil. >> if you're wondering when and where consumers are spending those savings they're spending it at places like under armour and there's nothing to suggest that that's slowing. >> that's true. brands are going to -- with strong appeal are going to
continue to attract dollars but we also have to think differently about how the consumer is spending money in this cycle. a lot of people got it wrong by buying retailers. they needed to think what are the consumers spending on today. it's media, it's tech, it's experience. >> lottery tickets. >> something that paid off for a few people. the point is if you had a great brand or you're offering a great experience you're really going to attract consumer dollars in an area and time where we think wage growth is going to be okay but not outstanding. >> we're even getting into how much they're spending on technology. >> the other blowout, facebook's quarter. and what mark zuckerberg is doing. the focus turns to amazon and will they deliver and unhealthy returns, biotech. why is it having the worst month since 2001.
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>> others bought it ahead of earnings. what can you say about people that continue to exceed. >> it's accelerating revenue growth like nobody else. >> they do deals. they do instagram and this and that and it's not a deal for the sake of doing a deal like yahoo!. they actually have a plan to make money and what they have done with instagram and what they'll probably do with virtual and estimates continue to go higher because they continue to surprise. i don't think that goes on forever or that 16 times sales is the smartest multiple on revenue to pay for a stock but there's very few stocks to kate's point that have this kind of growth rand not relying on a global economy. >> you call it the best stock in
the market. >> what makes me so impressed is not only the numbers you talked about. year over year up 50%. >> mobile accounting for 80% of ad sales. >> forget the questions about mobile. the deals that they have done. the what's app and instagram. >> they talked about what they were going to do in mobile. they're talking about there might be an opportunity here. you have to get in front of this thing. joe was smart enough to put it in his portfolio. i was lucky enough to put options on in here. i'll be out by tomorrow. and pushed around by oil and pushed around the sways of the market. we might see it back under 100 faster than most people think. >> what about amazon?
. >> amazon will do fine. when you look at the results for paypal -- ebay paypal we'll get into that later. amazon is going to show a blowout quarter. it returns to $70 as soon as the environment for equities gets more stable but i would expect a really strong quarter tonight. >> over the last -- just quickly over the last 12 quarters the stock is up an average of 9%. so here's another company that packs quite a punch when they do deliver an upside quarter as they want to do. >> does fang still work this year? does high growth rule the day or are all bets off? >> as long as companies continue to produce revenue growth. you need to own sectors and industries that have sales growth. that's been ridiculously disappointing in last quarters.
and they like themes producing strong revenue and are going to continue to win. >> you're not willing to say yet that value is back in favor at the expense of high growth. >> i want to be in a place where i'm excited about value. that's a different business cycle and i'm not there yet. growth is still quite important. >> perfect time to ask our next guest that invests exclusively in stocks. welcome back. it's good to see you again. what's your take on what facebook delivered and what you could see from amazon? >> we were very pleased with facebook's results last night. obviously top line growth was in excess of 60% on constant currency basis. you guys mentioned significant up tick in mobile ad revenue now. comprising overall ad revenue base and to your guests point it show cases that results still drive stocks higher.
we think earnings are going higher because facebook is an example of long-term secular growth stories. investors in stocks and here's a perfect example that's riding a wave of digital advertising taking a greater share of the overall ad spin and facebook is delivering and today's action is nothing less than just making up the losses year to date. we think the stock has a lot more that it can do over the next 12 to 18 months. >> we're looking at a headline bottom of the screen that said are fang stocks ready to bite back? are you convinced that that trade still works? >> we own facebook and amazon and google. >> you better hope so i guess. >> but again, you know, to the point of secular themed stories, amazon is a perfect example of e-commerce taking greater share as a percentage of overall commerce. we just talked about facebook.
we just talked about ad spend and facebook and google still represent a very small portion of the overall market share to us growth still works. growth is scarce and we think growth is trading at a discount to both value and the overall market. >> i show you quickly having apple as either your top holdings. are you throwing mt. towel on it? are you sticking with it? have you bought more? >> the position stayed where it is. we are underweight relative to our benchmark but again we focus on the long-term themes and less about short-term moves in the market. >> we'll talk to you soon. thanks for coming on. >> great, thank you. >> speaking of guys, apple hitting it's flash crash low today. intraday of 92. where it is now? let's pull it up. 93 and change. what's going on here? >> no growth for now. >> all the positive stories now we're talking gook again.
>> apple -- >> it's not complicated. they're in an s cycle and not the new model cycle. they will be fairly soon by stock market standards but there's no growth. there's nothing going on year over year and that's what the street wants and they're willing to sell this name down to 8 times earnings cash and may not get it next quarter either because that's going on. >> that's a lot of what's going on this morning. a lot of selling rotating into facebook. >> coming up it's one of the few trades that's working this year. >> i love gold. >> what do you do now? stick with it? plus today is the busiest day of earnings season. we hit all the big movers including caterpillar among the best performers of the dow. up next.
investors seeking shelter in safe haven assets but trade here impacted by the fed. you are not a big fan of gold. what do you make of the strength that we've seen? >> i think it's a factor of what's going on in chuy ina and example of that is tuesday when the s&p was up 26 and gold was still up $15 so you can still look at the s&p and what's going on in the united states and gold you have to look outside of the boarders. >> how much higher do you think gold can go from here. >> we have it around 1130 or 1135 area. it's going to take awhile to get through that. when the asia stock market are sold off those buy gold. it may not be the safe haven in the u.s. but overseas it is. >> last conversation coming up on the online show we're talking to jack ablin. he's going to tell us why it's time to dump u.s. equities.
we're also talking about the bond market from bank of america and the blowout month that we have seen. 1:00 p.m. scott. >> thank you. today's worse sector and that's health care dragged down by eli lily and the bio techs. a lot of the experts are long these stocks. those trades are just ahead and oh canada. is our neighbor to the north headed for a recession? what does that mean for our economy? we head to vancouver for a closer look. i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade.
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don't settle for u-verse. x1 from xfinity will change the way you experience tv. hello i'm sue herrera. here's your news update this hour. a man found to be carrying two handguns has been arrested at a hotel in disneyland paris. he was a 28-year-old european whose bag contained guns and a copy of the koran. you see the iranian president and the french president presiding over the signing of business agreements worth about 15 billion euros. that includes an order by iran air to buy 118 aircraft. and there you see secretary of state john kerry attending a celebration of the washington
post opening up it's new headquaters. but the big star was the recently release post reporter jason rezaian. my iran interrogators told me that the washington post did not exist and no one knew of my plight and the united states government would not lift a finger for my release. today i'm here in this room with the very people that helped prove the iranians wrong. >> mattel is now offering barbie in three new shapes. tall petite and curvy. they can be purchased online. the company hasn't said when they'll be available at retailers. that's the news update. back to you. >> thanks. take a look at the markets right now. give you a picture of how things look at this hour. dow jones higher by 75 points that is. gain of .5%. nasdaq is up today.
it's the outperformer. getting a lift from facebook. the sector has been dragging down this year by bio tech stocks tracking for its worst month since 2011. our bio tech reporter joining us now with a check up on the sector. these had such a tough time. >> it's been a bad year for bio tech. down 22% year to date. that's the nasdaq bio tech index. it's not really anything specific that is necessarily going on here. if you look at the big four bio techs. all of them down double digits year to date. that's big moves for very, very big companies. michael putting out a note today giving back up to two years of gains alone. it's been a tough time. i have been trying to figure out what's going on. it's a risk off environment. all the drug pricing concerns also in all of these stocks. mark saying the sector has basically been for sale since hillary clinton's tweet about
price gouging at the end of september. if you were to look over a one year time period you see the stocks falling off at the end of september and while they did try to rally toward the end of the year they have given all of that back since january. it's not fundamentals they're trieding on now. if you looked at bristol myers, good quarter, people really excited, they were up about 3% earlier in the day but you can see they can't get into the green and bristol myers having good news. we have a lot more earnings coming next week among the bigger companies. gilead is going to be a huge one to watch. pfizer that day as well. just tomorrow. wednesday next week, thursday aztra zeneca. folks are hoping the earnings growth will drag bio tech out of this but we're really not tading on fundamentals right now. >> it's a good point. cramer of bristol myers says they have an extraordinary cancer franchise. celgene says i think it's cheap and this morning he said don't give up on lily.
>> when the whole index though tripled was it trading on fundamentals then? so what we're really talking about is multiple expansion followed by multiple contraption when risk appetites dry up. i agree with you. it's not that all of a sudden all these drug trials are failing. it's that people don't want to pay 80 times earnings. >> more of the more toxic names. >> look at it equal weighted at its worst down 43% from its high. if you pick out four or five of the biggest names in there you weren't trading at the multiples right now. the amgenes of the world weren't trading at that. they have used this as a spot. >> it's a presidential punching bag. >> absolutely. hillary clinton. even on the republican side. so it did start with the hilary tweet but that has been the problem ever since. >> doesn't help.
martin doesn't help. >> how about yesterday when bio gen came out and sales were up 7.5%. look at the bristol myers today. they were very solid. there's other things moving these things around that are not fundamentals. >> you like health care as well. >> yeah. we like health care as well. i would note in addition to politics and pricing and valuations and the concern, one of the other mack kro concerns m&a. people are worried that a softer macro environment will mean less flow. >> or lower multiples for the deals which were at incredible highs. >> right. >> heat on inversions. >> i should point out a lot of the bigger companies are saying the lower valuations are making them more opportunistic. abbott highlighted that. they want to emphasize that they're looking for opportunities. >> medical equipment names still work in the environment. you still see m&a there. striker. they talked about that performing well year to date.
all those names in medical equipment will work. >> thanks. >> all right. coming up a bright spot in china as alibaba's earnings beat the street. stock is turning lower though. josh brown earns it. we'll get his take on the numbers. microsoft reports after the bell. we'll set you up ahead of those numbers. you're watching cnbc first in business worldwide. >> the halftime report is the place for market moving interviews. >> as i look to the fourth quarter of 2016 i see really bright spots. has a number.surance py but not every insurance company understands the life behind it. for those who've served and the families who've supported them,
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all right. let's do the blitz. six trades on six stocks making news today. first up cat beat on earnings, missed on revs. he is the ceo saying it's going to be a rough year. yet the stock is up almost 4%. what gives? >> a little bit of a bounce. a recovery here in the commodity natural resource space. goldman sachs with a nice note out talking. they have sell rating on caterpillar by the way. >> i listen to the entire interview and he sounded dower about this year. there's no other way to put it. >> so the beat was all about cost controls.
you could only do that so much. we call that financial engineering. so i don't trust it. i don't know if it's going to 5055. where ever it is right here i don't know take some profits. >> alibaba, josh. the stock was up very nicely. maybe that was until the conference call. i don't know but tell me what's happening here. >> it's a lot of apathy around asia or china. this is trading here on a u.s. market and u.s. investors are losing interest in china by the day. so it's a great quarter. 5.3 billion in revenue. they beat. they beat on earnings by 11. >> gmv gross merchandise value is not great. >> 32% revenue growth. we're cheering on lesser revenue growth stories to a degree. so i think this is related to the fact that it's china and china is not what's popping in the streets right now. >> all right.
p pulte beating expectations. >> you would think it would get more pop. all these numbers across the board were fantastic. you look at the order book as well in terms of the log. that looks impressive as well but the stock is not reacting. it's the way the builders seem to work. i would hope to see the stock get over 17. they have given everything the market would want and they're still not getting along. >> there's been so much housing news lately. existing sales, new sales. he was on. talking about the home building stocks. they have gotten gapes. now i can't speak to him specifically because i don't remember the last couple of weeks. but maybe they're already in it. the earnings are the same as when the stock was at 23. it just shows you right now there just isn't a love for this sector. >> up next the deep freeze in canada. doing some recon on how the crude crash is hitting the
economy up north. >> scott how much would you pay for a head of califlower? canadians are paying up to $8 for these things. after the break we'll be talking recession here in canada. i've been called a control freak... i like to think of myself as more of a control... enthusiast. mmm, a perfect 177-degrees. and that's why this road warrior rents from national. i can bypass the counter and go straight to my car. and i don't have to talk to any humans, unless i want to. and i don't. and national lets me choose any car in the aisle. control. it's so, what's the word?... sexy. go national. go like a pro.
u.s. government. plus the big money impact of the quickly spreading zika virus all coming up on top of the hour. >> a news alert on disney. julia has those details for us from los angeles. julia. >> that's right. an update on something going on at disney land paris. disney land paris telling me that during a routine security screening at one of its hotels weapons were discovered in one of its guests backpacks in their luggage through the x-ray machine. the police were notified and the individual was arrested. disney land paris saying they continued to work closely with authorities and that their guests and cast members is that upmost priority. it's a big focus on security at those theme parks in the wake of those paris attacks last year. back to you scott. >> thanks. appreciate the update. back to the market. the plunge in crude is causing trouble up north as canada wrestles with recession worries. live from vancouver with that
story. a lot of people already saying that canada is in recession. not heading for one. >> that's right. a lot of folks also saying that we never got out of last year' recession and if oil stays at these low levels it could get worse. that's because canada's economy is so dependent on energy and minerals. oil is expensive to produce and also sells for less. so it is a double whammy. alberta has been hit hardest and the pain is spreading across the country from the energy heavy stock markets to foreign investment to the loonie at 13 year lows. but in places here like vancouver it is a different story. it's expanding and the real estate market is white hot. check out this 2400 two bedroom condo. the asking price a staggering 4.4 million u.s. dollars putting the vancouver dollar on par with likes of new york and san francisco.
a lot of this is fuelled by foreign money. a realtor saying that some 60% of listings sell for above asking prices. it really is a tale of two economies but if oil like vancouver as well as toronto won't be able to prop up the canadian economy to keep it out of recession for long. back over to you. >> deirdre, thanks. quite an apartment. i don't know about the market. would you invest there? >> would i -- we actually -- the market, equity market. i think the point is there is a lost resource, but a lot of financial. you look at percentage of the market cap that comes from banks, it is very high. north of 40%. have to a view on the real estate market, on lending and the ability for banks to continue to grow credit in a very lackluster economy. we're not there yet. >> you have a view on the u.s. versus the rest of the world? >> we like the u.s. one reason why we like u.s. equities relative to other opportunities is we think we have better visibility on the earnings in the u.s. than in other parts, but we are neutral to modestly overweight europe
and actually have a constructive view on japan. so developed market over emerging markets and overweight equities in our portfolios. >> coming up, the flood of earnings continues, around the desk for trades on microsoft, chevron, philip 66 and others. stick around. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. father, why can't we have directv like the macgregors do? we're settlers, son. we settle for things. like having cable instead of directv. hey, jebediah, how's it going?
want to get some more earnings movers today, ebay gave disappointing guidance. what do you do with the stock here? >> you do what carl icahn did and is probably doing now, probably doing that cam newton dance in his office. he was right. split pay pal, ebay, you see all the growth, you see all the momentum, the base is growing for pay pal, doing phenomenal, ebay struggling. ebay is struggling, completely difference. the earnings today validate the split, call was right. >> icahn doing the dab. >> he is.
he's dabbing. yeah. yeah, he is. >> have to use the other hand, though. >> he'll help us. >> qualcomm reporting better than expected results. weak demand for mobile chips. josh? >> yeah, so when apple gets -- does the whip, this thing does the nene. the worst -- it is the worst of the chip stocks and most of them look pretty bad. technically this thing is off a cliff. and the market for smartphones is just really, really saturated, plus they're tied up with, like, legal issues, with lg, it is like what else can we add to the pile. if you're a value investor or activist, this is still a prime candidate. >> i'm glad you brought that up. lebenthal, who fan says himself a value player, added this to his portfolio the other day. >> good news, jimmy, even more value. >> but that's been the story for qualcomm forever now. a value play from 70 on down. that's been the biggest problem for this company is everybody looks at him as a value play but
they continue to lose down the road. >> harley. what do we make of harley? >> nobody riding harleys or doing the whip or the nene. >> it is a good book end to the show and maybe an overall theme of whether the consumer will be the thing that saves this economy in a manufacturing recession, durable goods, horrific today. but if you take under armour and others and harley, what do you make of it? >> harley will zoom ahead. harley hit 41 out gave the and pulled back to $37 a share. it is intriguing to watch how this stock traded early. i didn't quite understand why it had the big pop that it did, but you look at the earnings, yes, they beat the earnings. revenue missed a little bit. you can call them in line. a little growth going in the future in terms of delivery. i think people are looking at that, the 1 and 3%, maybe better than people are expecting. >> let's talk about microsoft. earnings coming up. few hours, your long calls. >> there has been nothing but
activity for a long time. this stock is trading around 52. $56 and change is where the high was. i think we potentially could test that, if they're able to execute the way i think they have been able to, i think nudella has been in this transition for a while now and we have seen the fruits of what they're working on which is clout. how is the transition going into cloud and the great growth and revenues they're getting from gaming. so there is a couple of different areas there. we know what the solid performer is going to be. but how are they doing in the 360, all the rest of that. >> kate, big tech. >> if we put all the sectors on the spectrum, tech is in our more liked rather than neutral or less liked spectrum. >> that fits with your overall u.s. -- >> yeah, but i would tell you we're watching software and internet very closely. a lot of that has been sold off disproportionately in the soft market. if we see strong delivery that report over the next couple of days and in some cases a couple of hours that will increase our
confidence in the sector. >> josh, microsoft. >> look at the chart, look how flawlessly this company, since the beginning of the year, pulled all the way back down to where it gapd up from 48 and then bounced off that level. if you're a short-term trader or technically inclined, that's the kind of behavior you want to see on the part of people trading microsoft. they got it there, they bounced it. i think the stock is probably okay going to earnings. new ceo seems to have a good handle on how to communicate with the street. and it is not out of the question for it to revisit that high. it has been a strong stock for a long time. >> joseph. >> if it goes down, you buy it. if it goes up, you buy more. it is going higher over a 12-month period. >> pete, amazon, blow out or blowup? >> this is one of those names that none of us on the desk for the most part can find that comfort level in it. i would expect this to be an sclut absolute indecr absolute incredible quarter. i think the number will be
impressive. at 100 plus times, it is a difficult stock. >> look at the run-up into the number. it is up better than 7% today. i think that's on the back of facebook. >> i think a lot of people -- >> sell on the news? setting up for that? >> no. >> blow out, blow out? amazon? >> flip a coin. when they beat, they beat big and the stock goes banoodles. >> stock is up 43 bucks today. >> that's not my cup of tea. >> let's look at energy names because they are going to be a story tomorrow. chevron, consol and philip 66. >> what is the outlook. ultimately depends on the election, i think. >> i'll watch that chevron report with a paper bag in front of my mouth, breathing slowly into it. because this is really a company that has not gotten their act together in terms of restructuring just yet. and did. >> like an airline bag. you might need it. >> i get nervous with this one. a big component on the xle and i think it has ramifications for
the rest of the group. >> you think we'll get anything on the dividend? are you worried about the dividend? >> they came out and planted a flag and they said -- >> here on this network. >> they said, you can take the dividend to the bank. so -- >> good stuff. kate, thank you for being here. >> thank you for having me. >> see you soon. "power" starts now. scott, folks, thank you very much. with melissa lee, i'm tyler matheson. welcome to "power lunch." the first chart you're going to see here, you got to see it, it is oil. >> yeah, what a stunning chart this is. right now it is up by more than 3%, 3.5% or so. but check out the spike in the fall. we were up 7 plus on news that cuts could be on the way. >> the drop has forced the dow a little lower as goes oil, as goes the major market indexes and the industrials are up half a percent but stronger earlier. 75 points. the nasdaq at 45