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tv   Squawk Alley  CNBC  May 24, 2016 11:00am-12:01pm EDT

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good morning, it 8:00 a.m. at snap chat and 11:00 a.m. in new york, and "squawk alley." ♪ good tuesday morning. kayla tausche is live at jpmorgan's live conference in boston, and along with jon fo t
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fortt, we have vanity fair special correspondent and contributor nick vilton, and we will get to our guests in a moment, but nasdaq is back in the green for the month, and s&p is 2023, and over to the mary thom sopn >> we just got the dow jones industrial data, and the housing data is rising, and so that gave a lift to the market in the large part because people are starting to expect the latest poll showing that a brexit is likely, and that helped with the data off of the highs of the day. and we are watching monsanto, and the company expects to the reject the bid from bayer and seek a higher off, and the stock is up 3%. let's check the dow movers today, and their reflective of the gains that we are seeing in the broader markets. it is tech as well as financial
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stocks leading the dow higher as visa and microsoft are taking the top spots, and the check with the i.t. financials and health care. and these are the worst performing sectors, and one trader is telling me that what we are seeing here is a short squeeze, and some of the s&p leaders are that the market should help pick up for the second half of the year, and that is helping the stock move up, and of course, we mentioned the home builders and not only strong data on the new home sales, and toll brothers with their stock up, and the res of them benefiting from the blockbuster numbers on the april read on the new home sales. the dow is up 209 point, and back to you, carl. >> thank you, mary thompson. to tech news, facebook is revamping the trending section after that meeting with the conservatives. it is going to be editorial guidelines and a top ten list of
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approved website, and they said they did conduct an internal probe, and did not see any bias, but nick, we have talked to political types who were in the meeting with zuckerberg, and they are seemingly satisfied with the meeting, but how is that playing in the valley? >> well, two different schools of thought. the people who are the liberal tech folks who are not thinking that there is bias and they have their viewpoints on it, but also the tech media, and some of the folks that i have spoken to there have a philosophy i which i share which is that everything has bias, and the to say that, you know, this is a fundamental problem with news that has gone back centuries that we try to say that there is no bias in news, and the reality is that there is bias in everything that we do, and that is human nature, and what is disturbing about facebook results is that it is more understanding if they had said, hey, we did some research, and found out that there is a little bit of the bias na both
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sides, and so we will even it out with a little bit of the bias on the right and the left, and everybody is getting the right thing in the middle, and to say that there is no bias, i don't see how that is possible. i just don't. >> well, i mean, the statement seems to say that the no intentional buyia, and possibility in the system that every now and again, somebody might have put in something they should haven't, and they are trying to fix it, but to me, this is an affirmation of this being overall nonstory, and the assertion is that there were people inside of the system who were explicitly excluding con sser vative viewpoint, and facebook is saying that didn't have it, and where are you on this? >> well, the part of the problem is the lack of transparency here, and i actually find it troubling that they are going back to relying on the algorithms, and it is going to make sense to have some people to be in the room to make some editorial decisions, but you need a process for it, and you can't go rogue to make decisions. be i the way, i was looking at facebook trending today, and
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there was uber and lyft and international turtle day. no way that is really bubbling up by algorithm. >> and somebody made that happen. >> somebody made that happen, and somebody thought that international turtle day is an important bit of news for today. >> well, it is important day. >> and yeah, happy turtle day. >> and we know it is not the turtles, because they are not fast enough to get that. >> trending. >> and we spoke to somebody from the american heritage foundation, and the names google and twitter are coming up on the other platforms that at least conservatives and who knows what the liberals have in mind that they are looking to target, and should all of the guys be prepared? >> of course. i mean, this is the way, and especially on the election cycle, and this is the first true election cycle to be seeing the importance of these networks and the platforms to sway opinion. i wrote a piece in vanity fair
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last week about how the polls are broken in part because leading into the primaries and so on in the uk and all over to the place, in part, because, because of the speed of the social media and the speed with which news proliferates around the world, people's opinions can change in the second. in the morning you can be polled and say, hey, i like ben bernanke and then later on -- bernie sanders, and you say, hey, i like him, and then read something and say, hey, don't like him in the afternoon. so it is a war for the next few months. >> did facebook win or lose through the whole controversy and bubbled up and a big deal, and then zuckerburg with the meeting with the leading conservatives and put this thing out, and dead for them in a good way or wounded? >> well, it is not dead yet, but, you know, facebook trending is very, and facebook trending was trending just on facebook
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the other week, and now it is not. so it has a short news cycle probably, and they have taken some steps, but i don't know if they are necessarily the right steps, but this is not a big wound to them in my opinion. >> and like some of the changes to twitter will be trending if they are not already. and up next, tech crunch is saying that snapchat is raising money to value the company at more than $22 billion. kayla is joining us from boston with more on that story. >> well, carl, it is hard to keep track of the times that the companies like uber and snapchat raise money, because they are in a perpetual state of fund-raising, and the fundraisers who are wanting to put their money into the giant decacorns, and they have just approached them, here is the money, and here are the terms and are you interested, and so to see a company like snap tlt chat in talks to the raise more money after closing in an earlier round of fund-raising
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already this year alone is not necessarily surprising. if they are raising funds of a certain size, we should see a filing of who is participating and what are the terms, and what is the valuation of the company, and the round is. we don't have that right now, and so we are going off of the reports, but it is going to be interesting as soon as we get the details to see if we can glean anything about the company or companies like snapchat taking while to getting is good. >> okay. thank you, kayla tausche. and what are you making for the numbers, michal? >> well, a few more numbers 10 billion video views which is an incredible number. if these numbers are correct for valuation, this puts snapchat up there with the highest values tech companies and the pall
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pallenteers of the world, and so it is interesting to see the increase in tech, but we will watch that one >> and jon, snapchat management is thinking several generations down the road. >> and yes, that i have a brilliant thing they are -- they have a brilliant thing they are doing with the video the create a little bit of a time, and then encourage you the stitch it together in a story, and one story plays after another and it is an addictive engagement they have hooked up there, and then word to twitters in the private market, and so you don't know how that is going to be translating on the twitter market cap, and it is hitting the lows and down to $10 billion but you are wondering in the light of day, when we start to see whether snapchat can scale, how many advertisers it can get and sustain on the platform and worth that? is twitter worth more?
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we will see. >> and nick, what are they saying at twitter about this snapchat valuation? >> well, i would say probably not much, because they have bigger problems, but it is interest, because i was in the valley last week, and it is fascinating that i met with the vcs and the entrepreneurs and the one thing that everybody is talk about is about a company not based there, and it is snapchat and they are petrified because it is affecting instagram, and facebook and h hampering the twitter stories, and moments kind of the response to the snapchat, and people are worried, because this company is a juggernaut, and it is the one that, i wrote in the first story about snapchat and i called evan speeg hl in the dorm room and i thought that it would literally disappear in a week, and it is the company that everybody is talking about and it is only a
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couple of years ago and i believe it will continue the growth. >> and it is interesting to see how quickly they have been innovating and outinnovating everybody else. i am not on snapcha chat, and w are not the right demographic. >> and i asked if anybody is using it and is it over, and how wrong and i am on there trying to figure it out how the youngs are doing it. >> and yes, you can read the editorial after it, because it is like going to the m.i.t. >> yes, it is true. you can buy the movie tickets there on snapchat and getting the broader and the the larger advertisers. >> why would you do that? get off of my lawn. >> and nick, do you think that was it a failure of imagination or execution that other platforms couldn't do this what snapchat is toing? >> well, it is interesting, because i have spent time with ed spiegel, and the thing that i u find fascinating is that every ceo in the valley has the merits and zuckerburg wants to rule the
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world and put chips in our head, and larry great, and everybody has the merits, but what evan spiegel is unbelievable at is understanding the millennials and it is amazing to see him talk about these thing, and the one thing that was the moment of zen to me where i said, okay, this is a company that you should be afraid of is when they launched a new sticker product where you had to pay for the stickers a few months back, and they launched it, and they didn't put out a blog post, but people started to use it, and i spoke to somebody at snapchat at 11:00 a.m. and i said, you have not notified it, and how many people are using it and they said 80% of the network, and so tens of millions of people are telling each other, hey, i know this thing that you don't know, and that is what they are amazing at. >> and now, an exec at oracle who was at snapchat for a while thought deeply about this, and how people primally communicate
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and that intelligence is how they communicate. >> filters. it is all about the filters and the stickers. >> and talk about social and more. thank you. and now, more data on the new york fed and the delinquencies, and we have steve liesman back with more details. >> the fed is reporting that the total household income slipped a little bit and now at 2.5 trillion and it is the second quart quarterly rise and the second increase in mortgage debt since the great recession began going with the good housing numbers, and increases in auto and student loans, but the decline in credit card and home equity debt $400 billion below the peak of '08, and so the per capita debt is rising. so instead of looking like a debt cycle, it is increasing, and newly delinquent loans are rising. so by contrast in the teeth of the recession, the stock of the
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delinquent consumer debt was increasinging by more than $400 billion a quarter n. this quarter, new foreclosures and the bankruptcies both fell. so s so it is a mixed signal on one side. on the babk side, speaks of the underwriting loans to best credits and the best credit scores before the recession got 25% of all mortgage and the worst got 13%, because of the subprime lending and now the best will get 60% of all of the mortgage money, and the second tier has fallen sharply to 32%, and the bottom the tier, no money for them, and just 4% of the current mortgage originations. and it is good for the banks and the credit cards, but terrible for the consumer who doesn't have great credit. and it is if they are too sheepish, it is where they remain, and total auto and student debts remain above a trillion dollars, and the 90 days plus delinquent is slightly
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hi higher for the autos. and so not a bad picture of the consumer, and their debt and certainly not one to suggest that we are in the later innings of the credit cycle. carl? >> thank you, steve lease map. finding value in a credit sector that is negative for the year. and plus the fight over viacom's future and the latest in the redstone saga. and plus, a venmo-enabled chip into his hand to ditch cash and credit cards. was it worth it? he will join us in a moment on sigh squa "squawk alley."
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we are back from the jpmorgan telecom and media conference. and we are joined by gavin baker, who is a top portfolio manager, and thank you for joining me here. >> thanks for having me, kayla. >> you have to always measure the tradeout of momentum and value, and you have both, but how is the tradeout playing out in 2016? >> well, value is winning out in 2016, but the year is not over. >> and you is named like solarcity and groupon, and which some portfolio managers would not be willing to touch, because the swings are volatile, and why are you confident about those names? >> well, groupon has a new ceo, and they are beginning to have
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progress, and added more new customer s customers in the last quarter than at any time in the last 12 quarters, so i am optimistic about the ability to the make progress under the new ceo who ran marketing for amazon for a ten-year run, and for solarcity, there is more of solar taking shares of the electricity. >> and you were not dismayed? >> i was not happy that it went down 20% or 30% that day, but i think that as of today, it is right back to where it was before the quarter, and it is very important in the volatile times to tune out the volatility and focus on the long term. >> and meanwhile, the top holdings in the portfolio, and amazon, and alpha, and alphabet, and facebook, and hardly contrarian picks, i would say, and why are you sticking to those, and in some cases adding to those? >> well, i think that alphabet has not been a contrarian pick for a long time, but it is a
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great pick despite being to some degrees a consensus stock. so i don't really, i guess i don't care if the stock is contrarian or consensus, but i want to think about where it would be 3 to 5 years out, and compare t compared to the current price, and so if it is a gap, it is a great holding. >> and what will take google or alphabet up the next leg? >> well, sin dar talked about going from the artificial first company, and machine learning is one of the underappreciated changes happening in world right now. and alphabet's victory in the alpha go competition is an important moment, and has machine learning to become more pervasive in the form of a a/i assistant or self-driving car, it is going to be valuable. and self-driving cars, and 1.3
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million people die in the car accidents, and what would a drug be worth that is going to save 1.3 million a year, and that is what self-driving cars are. >> and people are wondering when to get that and when some of the private companies will go public. the private investments are convertible, and 3% of the portfolio, and i imagine that you do have a window into the private company valuations and the performance, because you the holdings and i'm wondering what you would say at this juncture? >> well, kayla, we can't comment about the private companies, but i am saying it is a small part of the fund as you referenced and generate ad ld a lot of alpr the fidelity shareholders, and we are selective and we own the best of the best when it comes to the company, and uber and spacex and snapchat. >> would you put more in? >> i can't comment. >> and the fund was down sharply at the end of the year, and it
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is quite an anomaly, and you are up 15%, and take us to the second half of the year, and down 9%, and do you see the tide evening out for the otc fund? >> well, i try hard not to focus on the short term, and since i took over the fund in june of 2009, it is up 90% ahead of my competitors and so i am using the volatility to set up the fund for the next 3, 5, 7 years. >> thank you, gavin, for joining us, and your insights. and now, we will send it back to you. >> no nonsense, a fan of groupon and google. and up next, the fight over viacom, and the fight of redstone's new appointee, and the dow is now up 200 point, and ton of green, and stocks are in rally mode. back in a moment.
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the fight for viacom continues. philippe deman is filing to block some of redstone's efforts
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to oust him and fellow board member george abrams and trying to block new trustees. the yale school offing management dean for executive programs is joining us now, jeff, and tell us about the p performance has not earned rave reviews, but on the other, there is no clarity into sumner redstone's decisions, and the decision process on his end of thing, and if you are the investor, and what outcome should you be pushing for here? >> well, as an investor, what you will often see is the break of the value of the businesses that are run by what i have termed a monarch, and i have wrote a book about this type of thing called "a hero's farewell" and the monarchs are 6% to 8% of the u.s. industry. you will find them heavily in the media industries, and jeff bewkes and rupert murdoch are
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exceptions, but there is a lot of uncapped value, is you would like to see it delivered in other hands. right now, the stock is down by half, and this is one of the highest paid ceos in the country, and i think that he ranks as number one for the mismatch between pay and performance, and this is philippe dolemahmann, and it ist of the reason for redstone's behavior, and steven hawkings have written many books, but unable to communicate because of a disease. and in the tom fres tton in hal of that time, so he has a history of destroying people in the pipeline who could be a successor and a brilliant visionary, and obvious ly, toda, he is not, but there is a good plan to deliver this to the trust and the national amusements to make a change
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happen. >> and so, jeff, as a, for investors watching and they have been obviously confused by the chapters in thep story, as a bull, on viacom, are you routing for redstone and change or are you routing for dohmann and stability? >> well, it is sherry redstone, and you are routing for her to prevail here. dohmann has contradicted the public statements, and if you consider the prior court testimony as public statement attesting to the coherence and alertness of sumner redstone to now flip out of mere self-interest seems to be a violation of his oath of loyalty. you have loyalty and a duty of care in his position. but it is interesting that les mo moonves has no problem, because a lion's share of his investments are in the kcontrol
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of viacom, and if we weren't on cnbc, i would say, why would anybody want to be a minority shareholder in this business with the 20% stake is risky to be in there. >> yes, and lessons here, and decades down the line for tech investors, and is some of the most successful businesses in tech are monarchies like facebook, and google and others that where the strong founder in effect controls the company. danger there, and something that the investors should be pushing for now? good luck. the monarch controls the company. >> and there is danger, and it is a good question. in the recent deals, mark zuckerberg and facebook, and jack mal in the second bite of the apple as an ipo for alibaba, you have in those two cases, the emperor for life.
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it is written in there, and they have incredible control, and if you go through the -- the manhattan director is shorter than the alibaba filing, and jack is secure. people are taking a bet if they will get in and out of alibaba stock and facebook before they get out. but that is the danger, and the fact is they are a visionary. and warren buffett is in the mid-80s and fred smith has run the company very well at federal express, and rupert murdoch has run news corp. longer than redstone who is older and run viacom and cbs. >> and investors can get in and out, and it is a matter of timing. jeff sonnenhein, thank you.
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>> over the simon. >> germany and spain, and four-week high, and strong rally, and perhaps moving forward but maybe it is a watershed, because the supervisory chief daniel nooyi said that we should expect more performing loans to expect from the euro, and the bank is sitting on $1 trillion of nonperforming loans, and they can't resolve them. she says one of the biggest problems is to resolve those more rapidly, and that is potentially a game changer for them, and the financials are in the rally, and the insurers are doing well, and the italian banks, but some tof the insure rers are up 5%, and generale is doing well in milan. and you can see the uk stocks following through as well. it is a mix of underperforming
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names at the top like tesco which is making me think that we are linked to the brexit. and sterling is shooting up higher # 1.5 cents against the dollar. and this time, a poll out suggesting a 13-point lead for those who want the uk to remain within the european union with that vote on the 23rd. in fact, the governor of the bank of england, mark carney was in front of the bank to warn of the riskses of the economy. it appears that the pensionneers are moving into the remain cam tain, and the telegraph is suggesting that the report for leaving is collapsing. the bookmakers if you are believing the odds as indicator, 80% chance that the uk will remain. all important stuff, and meantime worth the mention, the brussels, the finance ministers meeting finally to approve the cash for the greeks, $12 billion
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to get through the bills, and of course, as you note by now, the debt relief, and the extension of the maturitys and the payment of the holidays has been forced on the imf with germany suggesting that as a of couple of weeks ago, they will kor it. >> thank you, simon. lots of consolidation happening in the tech sector. the top banker at jpmorgan is here, and he is going to tell us how to capitalize on that. and looking at the markets, off of the highs of the session, but not much. and all of the majors are rallying, and nasdaq is up 1.65%. back in a moment.
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hi, everybody. i'm sue herera, and this is the cnbc news update for this hour. president obama arriving if ho chi minh city, and the second of the three-day stop in vietnamment he did sightseeing taking in the jade pagoda and said to be one of the most beautiful pagodas in the country. a fight broke out at a major demonstration attended by tens of thousands in the center of brussels. the crowd is protesting the social and government economic policies, and at the end of which is aaceful rally, a scuffle did break out with a few protesters. and in macedonia, doz ens o migrants have been in dire situations, and buses filled
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with migrants are the first to leave. and bill cosby is arrives at court to see if prosecutors have enough evidence to charge him that he drugged and sexually assaulted a woman. the woman says that he violated her sexually after giving her three blue pills that made her dizzy. we go to kayla in boston. kayla? >> thank you, sue her rare rashgs back at headquarters, and 2016 from the mortgagers and the the acquisition standpoint is more known for the deals that are scrapped than the deals that have been inked, but earlier this morning ing we sat down w jennifer nascent who is the global manager of telecom and banking, and closely looking at
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comcast and other tech companies that are look to get into the cloud. have a listen. >> particularly in technology, we have not seen the rounds of consolidation where the big players get together. a fear of the integration risk and the missing technology cycles. it is possible in the near term to see more of a push to do the big consolidation plays, because scale does matter, and co competition is fierce. we are seeing the new entrants into the areas, and people are jumping into each other's backyards so to speak which may prompt consolidation. we could see tens of billions of dollars in terms of the market cap companies coming together. it will not suggest a peak, but it is the peak prices that are preventing some of the
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consolidation happening, but if we see a dip in the prices and the valuation, then maybe people may as we say pick the opportunistic moments in which to pounce. >> of course sh, the hard thingr any big deal is integration, especially for the executive or the company that is not a serial dealmaker and does it all of the time and has the road map set, but despite nason's call for the large deals on the horizon, it is not to say that some of the smaller, and bitef-sized acquisitions won't happen, and they are of special focus here in boston with yahoo here, and jack dorsey presenting later with twitter hitting a new low this morning. so certainly a lot of companies are in focus there, and nason said that half of the companies that are in jpmorgan's ipo backlog are also having conversations about what an m&a transaction would look like instead of the ipo trying the figure out the avenue in the
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market would be the best route for companies of a certain size. if the companies do choose to sell themselves, i asked her, who are the companies that you want to show up to buy you, and this is what she said. >> when you think about the market cap, and the capacity of names like google and facebook and amazon and apple as well sh, and many of them not in the m&a game very much at all, and are they going to the become the new buyers of the smaller companies, and potentially bigger consol day or thes -- consolidators and so as we are thinking of the sell side, those names are typically on the list every time now. it was not that long ago that they weren't considered potential buyers of very much at all all, but now they are on every buy list, and so are the chinese investor, and so they are also the new entrants into the m&a game as minor investor into the
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tmt. >> she said one name in particular, and she said don't be surprise d if the m&a engine at apple starting to rev up with the growth slowing and such a huge cash pile there. so it is going to be interesting, guys, if the we do see the new horsemen step up to become the biggest buyers in tech, media and telecom. back to you. >> a lot of conferences out there, but that is one that you want to cover. our kayla tausche at the jpmorgan conference in boston. >> when we come back, the heat map is extremely positive. rick santelli, what are you watching today? >> well, like so many investors, i'm watching the yield curve for clues. at the markets are not enamored with the negative rates, and a little ketchup makes my burger taste bet, and maybe a little ketchup on the curve will make it on the long end more appetizing for investors.
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>> copping town "halftime report" and why the rally in tech could be what they needed. the rally is likely to be rising. and under armour inking a big deal and what it means for the stock. and the man who say to buy at the bottom is back to dday, d what is the prediction now? we will find out in about 15. >> thank you sh, and back over
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rick santelli. >> and there is a pro and con with respect to those who trade it, but it is above the radar screen at any more time than i have witnessed in the trading and the tv run. if you are looking at the following chartsk and this is the 10s minus the 2s and currently 93, 94 point, and basically the flattest since 2007, but remember, it was reversing as we are catching up to the metric, but there is a month-to-date chart there, and the meat of the curve and the long end including the 30-years minus five and you could see it is resting on the area that a lot of the traders are nervous about with regard to whether there is a major violation to break the long term support. but take a more common sense approach no the yield curve, and with respect to flattening, and we have done many of the talks, the curve yield can flat tten o
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steepen with rates moving in the same direction or not in the same direction, and after the minutes l.a. week from the fed, we saw that all rates are moving higher and the curve is flattening or remaining flat. what does that mean in english? a 2-year note yield is moving more to the upside, but the 10s and the 30s are moving to the upside as well. why is that important? well, from the common sense approach, every trader i talk to, and i mean, every single trader on continents varied, but more than positive investing in the interest-free environment, and they say it is one of the thi things to grin and bear it or grit and bear it. but in the end, there is more to it, because in my opinion, in a curve with the long end moving up at a time when the fed is maybe deciding to normalize the rates and the fed's first
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tightening for the first time in a year is show ing thing that ts are in a positive mode like positive data. if we get the positive data, we will see that the long end rate s are going to be moving higher. if negative rates are bad, then less negative should be positive and the fed taking the bull by the horns so to the speak, and going against the grain of japan and in many other countries like draw gi -- -- draghi in the eurozone, it is not outside of the realm of possible that the rise by the fed could give us a steep yield. >> thank you, rick santelli. and now, looking at tim cook and his speaking of the future of the television world. >> apps are the future of tv. and so we have launched the new apple tv product, but it is clear to us as we pull the string, there is a lot left to
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do, and we'd like to be a catalyst in changing the world of entertainment. >> carl, a lot left to do. >> i picture tim cook in this headquarters of apple and filled with string, because the first time he talked about pulling string was february of 2012. and it is a lot of string if you have been pulling it for 4 1/2 years, and still pulling it, my goodness, knit a sweater. they have to come out with an over the top tv and the interative strings, come on. >> tell it to gene munster. >> and is the future of mobile in your hand. >> he paid with his hand. he put the hand up, and you are good to go. and like that, is crazy. >> and literal ly in your hand.
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our next guest ditched cash and credit cards and wallet for a chip inserted directly into the hand. sounds painful. he is going to joins next.
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our next guest is immersing himself in the business of mobile payments. ch charlie worzle ditched cash and credit cards and wallets for a month. he inserted a chip into his hand, and there is an x-ray
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ther there, and charlie is going to join us here at post 9 to show us the hand, and you cannot tell where it is, charlie? >> well, it is invisible to most people, and you can see it there. and no, it is -- i don't notice it anymore and it is more like a party trick or something that i can talk about. >> and walk us through, how did it start and how did it happen? >> well, so, i wrote a story that came out this week, and it is sort of the expiration of the fin tech and i got rid of the cash for an entire month and i did not use any physical cards and just digital means and throughout the experiment, i wanted to push myself and to find what this is the furthest possible extent of this future of the payments, and i found a guy chipping people in sweden and i went over the sweden, and he did it. how often do you get personally rejected with the payments in the hands? cash is universal except when you leave the country, and then
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a credit card works better for you, and the phones are catching up, and is your hand better than the phone or worse or depend what you have implanted in there? >> well, this is a sort of the -- we are not there yet. >> you are not there. >> and you get rejected everywhere. and one is from the video there from the show who can accept it and on the progressive end of this, but most of the time, the phone paying, you will only see it in the big box retailers or niche expensive coffee shops. >> and what is the reaction of how you want to pay. they are like, dumbfounded. and people are dumb founded when you try to play at your phone at a place that doesn't understand it or there are a lot of places that should accept this, and just that it is a chip card reader situation, and a lot of people don't. >> do you wish that you had implanted it somewhere else, because it is awkward and you
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have to twist the hand over, and less painful than down here? >> yes, it is a glass chip, so it should under some skin, and right here, you are banging it against the thing, and it is painful. >> so are you more pessimistic on fin tech as a whole as a result of this or is the trajectory just more shallow than we think? well, i think that there is an interesting bright future here, and a lot of hype here, and apple put out the apple pay, and the samsung pay and the android pay and all of the things are going to be changing us right away, but it is a generational and behavioral thing, and takes time. >> is that the biggest challenge on the consumer front or the merchant front? >> i think it is both. the merchants can do a lot to theed a dapt to this with the mobile payments and you are seeing it with the chip and pin which is helpful and the rfid,
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but in terms of the consumers there are a lot of people who believe there are security issue, and you know what, there are and could be. so i think that there is something that you will see the new generation come up with more use to it, and you know, that generational change will really make the difference. >> are you going to get that upgraded for the gps or the wireless or the find my charlie or maybe the loved ones can do that. >> and if we could turn it on the the fit bit. >> are we all going to have these or are you going to be taking that out? >> well, i don't see any reason to take it out, and it is a fun thing to show people and throws them off guard. >> good tv. >> and interesting conversation. and charillie, always good to s you. thank you for coming in. >> and the dow is up to 210 and what is driving this rally mode? we will talk about that after the break. ial products. i found that one of the best-kept secrets
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variety's latest cover may raise some eyebrows. it is marissa mayer carrying a wooden cross on the back saying that end is near, and with the sale of yahoo on the horizon, the days are number and no
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resurrection in sight. i am not sure if it is more offensive to marissa mayer or christians, and on the one hand, wrong, wrong metaphor, because everybody thought that the end was near with jesus, but a different position argument maybe? >> well, it is feeling like it is provocative for the provocative sake, but it is getting some attention today. and we want to watch some of the markets today, and the nasdaq is green for the month again, and s&p is going with it, and you will get the upgradeer for western dij today, and microsoft, and we know what amat said a couple of days ago with the semis lit, and you are looking at netflix challenging 100 again, and nvidia is looking al go rhythmic. >> and amd is doing amazingly well, and you are sort of wondering if the bottom is in for certain of the stocks or the pessimism was over done, and the pc market is not going to appear to come back any time soon, and
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still some of the name, and finding the room to rebound, and grant granted, they are finding room to rebound. >> and in may, we have not had a down average since 2012. and when we have a little news on the herbalife, and we will go now to scott wapner with more news "at the half ". >> all right. carl, thank you and welcome to the "halftime report." i'm scott wapner and the tech trade is the tuesday takeoff and why it is the thing to keep the rally going. with us for the hour today, joe terrano terranova, and steve weiss, and jon and pete najarian, and a monster move in the techs today, from the chips to the cloud and old tech on the move pushing the nasdaq positive for the month, and steve weiss, how important to get a pick up in a lagging sector? >> well, it is significant, because it is not the only lagging sector picking up, and also the


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