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tv   Closing Bell  CNBC  August 24, 2016 3:00pm-5:01pm EDT

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>> ultimately maybe it'll benefit the entire industry. they aren't the only ones to raise drug prices maybe someone will act to the point where the entire industry will have to act. >> that's a perfect solution. this is a systemic problem. and probably won't be solved on the crisis. >> thank you. loved it. >> thank you for watching "power lunch." "closing bell" starts right now. >> hi, everybody. and welcome to the "closing bell." i'm kelly evans. >> i'm mike santoli in for grif edge. >> and outrage over the hike is growing in washington and stock now down almost 5% today. white house democratic nominee hillary clinton and senate aging committee all weighing in on the eppi pen in the last couple
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hours. we have their comments about the epi pen coming up. >> samsung says the new phone causes problems with the supply chain and we will see if it can also cause problems for apple's new phone which is expected to be announced next month. >> a new app aimed to build a younger teenage base. we have details on quote unquote life stage coming up. can't wait to hear about that one. little bit different tone than the new strong home sales yesterday. right, diane? >> right, kelly. sweet read on sales of newly-built homes yesterday. today we have sales of existing homes in july fell 3.2% and down 1.6% from a year ago. that's only the second annual drop in nearly two years. this should not have been a huge shock given that mortgage applications to buy a home, well they have been down five of the last six weeks. all right. so what's the problem? >> there's nothing to buy. the number of homes for sale
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dropped nearly 6% from a year ago and with demands still strong that just pushes home prices higher and out of range for some buyers. homes that are for sale are snatched up quickly on average just 36 days to contract. it took about a week longer to seal home a year ago. realtors reported a drop in the number of people out house hunting and the way they do that is by counting how many lock boxes are opened. learn something new everyday. >> they say people can't get excited about shopping for a house if there are so few on the shelves. on the bright side as we said sales of newly built homes got a boost likefully the lack of existing supply. back to you. >> wait, what was that about the lock boxes, diana? >> this was very cool. i didn't know this. the way they gauge how many people are out shopping for a home on any given day is they can count the number of lock botches on the door. when the person is not home or has left the home, you get the lock box with the key, they can count how many people are in and
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out a day and that gives them a gauge of buyer traffic. >> i love it. >> channel checks on the housing market. federal reserve policy makes are gearing up for their conference in jackson hole, wyoming. our steve liesman is there and he has results of the new fed survey on the economy. tello, steve. >> hey, michael. yeah, we are setting the base for what kind of economic outlook, at least 39 respondent on the fed survey are looking for and can you see there's been a drop at least for this year that weak first half we've had in measured gdp. now we look for 1.8%. that's below 2% again for the year for 2016. now again they are hoping that next year it accelerates above 2%. 2 1/4 is what they are looking for. that's unchanged from the prior survey. and tick down a little bit and this is probability of recession in the next 12 months. ticking down to 21.6 and 22 pretty much unchanged. it had been elevated earlier
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this year with concerns about china and global recession. but you can see their remains elevated for the uk and for the eu and it comes off a little bit. still, uk, eu, troubles with post brexit and economic weakness that makes economic weakness the number one threat to the u.s. economy. that's chosen by 31% of our respondent's followed by taxes at 19% protection is trade policies the choice of 14% an outcome of the u.s. election 6%. let's come down a little bit from where it was. we will put all of these questions about the economic outlook and outlook for interest rates as well as making kind of a more durable framework for making monetary policy. we will be interviewing george tomorrow at 7:30 and the dallas fed president live at 10:00. michael? >> steve, you know, not among the four big threats to the economic recovery, economic expansion is 25-basis point in
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the fed rate. everyone is wondering when does that come? does the survey sample, are they pretty much comfortable with the idea we will get another rate hike this year and that that's going to be okay? >> i'm going to visually show you the attitude of our 39 respondent's about the fed. it's this. they are done with it. so frustrated. so, you know, confused. just like this idea we asked them and 60% say the fed is not following a framework. you got to go in and read my piece on where i quote peter. he says they just aren't paying attention any more. i don't think they are all that concerned about a quarter point rate hike. moving back from the original december last year. sorry, december this year. to january 2017 for when they expect the next interest rate hike. they have very, very modest expectations for both the economy, stock market, and for the fed funds hike. not seen as a big risk for the u.s. economy.
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>> that is super interesting. thank you so much. steve liesman kicking off the coverage for the next couple of days. we have keith fitzgerald joining us. along with steve graph. still there at post 9. and our very own rick santelli. and economists are shrugging at the fed, do you buy that? >> not only do i buy that. but everyone showing up in jacksonville will look like bono with dark sunglasses. because they finally have all seen the light. absolutely. they've seen the light. policy is a hodgepodge of selective jambalaya and i that i going there, maybe they will see why their models don't work but absolutely, i'm glad that we're now on the same island. maybe we can figure out the best way to hit land again going the other way. >> keith, if that's the
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backdrop, maybe if whatever the fed might do or say this coming next couple of days is not going to be the thing to really categorize markets. say the equity market where it takes its next cue from. >> to rick's point, they all have reality distortion in jackson hole right now. here is what i'm watching. real traders work with real money. academics and policy works work with models. the two don't mix. especially lately now that sfed realizing that its policies are way out there in left field. as soon as she begins talking the interpretation of her remarks is critical. if there is anything even the slightest bit hawkish, most markets are not pricing that in and i think we will have tremendous volatility. >> what about you, steve? >> i think keith just nailed it. so rick and all of us can agree that economists don't care any more and steve stated that.
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but unfortunately the market still cares and the market during normally slow couple of weeks heading into the end of summer is really taking a back seat. i see the volume as light. but the market is still waiting on yellen. unfortunately, you've seen money come out of savings, going from dividend plays into tech. that can't last forever. markets had an incredible rally and i do think you're going to see incredible volatility going into year-end. i don't think you will see it run up again. >> rick, you know, all these other markets, all the markets have been quiet. p but the treasury market has been remarkably stable. if you look at the last month's worth of close and ten-year note yield, it has been rock steady. is that because we have general agreement that ma crow is what it has been for a while and nothing will move it and we have the global landscape being where it is. >> well it is kind of like the
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same reason pictures in your house don't move, mike. policies nailed and it is managed and mailed in. i think that the markets aren't moving because basically they are held hostage to policy. and what's more, i remember before market makers and futures, and mid late 70s, cash market and trade and treasuries was very boring. because you have huge bids and huge offers and no way to get them together and twice discovery market makers speculators creating a much more liquid dynamic market. we're going backwards. back to the way markets used to be when they didn't move just for different reasons. >> and we have a lot of people buying gold because of it. keith fitzgerald, before we go, what would you recommend to investors here? >> right now i'm looking at american tech which had a huge run. i think some to go because of the picks and shovels and tomorrow's economy, not today. that puts it out of touch. defense stocks attracted to me and finally single-use medical
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supplies are attractive because we are all getting older no matter what the fed does next. >> that's pretty specific. >> for example, a company that makes huge, millions and millions of syringes. that's the medical application delivery mechanism that world uses. great stock, dividends, no matter what happens with the fed. >> toilet paper. single use too kimberly clark. >> maybe not medical. >> we have to go. leave it there. but thank you very much for joining us. about 50 minutes to go in this market. dow is moving lower. near record highs yesterday. certainly the case of the s&p and nasdaq but dow is down 62 today. s&p down 11. interesting how the transport is holding up. nasdaq down 42. >> generally down all day is basically the story. up next, signs that samsung's galaxy note 7 will give apple a run for the money. samsung versus apple debate is
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coming up. >> two market bulls. equity strategist and finance manager 19,000 prediction for the dow isn't too far away. they will tell us which areas of the market have the most room to run. you're watching cnbc, first in business worldwide. ♪ mapping the oceans. where we explore. protecting biodiversity. everywhere we work. defeating malaria. improving energy efficiency. developing more clean burning natural gas. my job? my job at exxonmobil? turning algae into biofuels. reducing energy poverty in the developing world. making cars go further with less. fueling the global economy. and you thought we just made the gas. ♪ energy lives here. well right now all our new plans come with no data overages. ...we'll finally be in control... and we're back...
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dow down 56, nasdaq worst performer down 41 point and outrage grows about the epi pen auto injectors. about 11.5% over the past week. here is what white house press secretary josh earnest did have to say about an hour ago at the white house press briefing. >> there is certainly more that we believe could and should be done in general to address the question of rising prescription drug prices. i will observe, however, that pharmaceutical companies that often try to portray themselves as the inventors of life-saving medication often do real damage
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to their reputation by being greedy. and jacking up prices in a way that victimizes vulnerable americans. >> again, that is just about an hour ago as shares are selling off here for myla. hillary clinton calls it quote unquote outrageous. she says it is wrong when drug companies put cost ahead of patients. clinton calling on mylan to immediately reduce the price of its epi pens, mike. that's where the rubber hits the street. >> kind of not how business works. kind of not how capitalism works when you have to justify cost increasing if you want to raise the price of a product. the problem for mylan is that the epi pen is almost the perfect product. no real competition. bought by parents for kids.
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>> i didn't realize how common it was for people to have to buy them for a back to school item. schools are asking you to buy them? >> if your child has severe food allergies. but i think a lot of people, even if not severe, they have them as precaution. >> so if the cost has gone up say 500% over the past decade, people are taking notice. >> and the reimbursement is another web of complexity. not going away. meanwhile, hillary clinton is in silicon valley where tim cook is hosting a fund-raiser for her tonight. josh lipton is on the seen right now. josh? >> mike, i'm here in los altos, california. tim cook will be raising funds for hillary clinton and the democratic committee. for apple ceo, it is all about access to powerful politicians. >> for him, you know, this is a multinational corporation. he leads a powerhouse.
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lots and lots of issues before the federal government and it never hurts to have an open door. someone you can call when you're in a time of need. >> now with this fund razor cook is throwing his weight behind silicon valleys preferred candidate. donating $3.3 million to clinton since june. strum. receiving just $117,000. clinton supporters including facebook's sandburg, investors like chris sacka and even tech heavyweights like meg whitman and andresen. there were a series of proposals for tech including affordable internet access for all house holds by 2020. student loan deferment o program for entrepreneurers giving up to $17,500 in debt as f they launch a business in distressed community. and start-up visa allowing top
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entrepreneurs from abroad to come to the u.s. the invitation to this cook clinton invite included three contribution lists. guys, back to you. >> thank one joshua. samsung might have supply chain issues for the same reason every company wants. pushing back the release of galaxy note 7 because of stronger than expected demand. mike? >> not a bad problem to have. some smart phone watchers say the android power device may have an edge on apple. joining us, andrew and martin. andrew, let's start with you. does this new launch, does the new galaxy note 7 really change the market share dynamic between the two companies? are they pretty much locked into their own customer bases? how do you see this shaking out? >> i feel like there isn't necessarily just head to head
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fight between the galaxy note 7 and yet to be released iphone 7. it is the fact the note 7 is part of the galaxy s7 and s7 edge that came earlier this year as well. you're talking about three product going up against apple's you know 1 or 2tive rent sizes of just a single product. it is an imbalance there. >> there is, gene, excitement around this new phone. and joanna stearns with you and the journal citing a number of features that seem to be ahead of what the iphone can offer. we know they aren't getting a refresh this year and they are saving features for the tenth anniversary. but how much beat is samsung getting on apple here? >> well a little bit better beat. and it better be. there is a lineup of phones. at the end of the day, this is the same story we see every year as that samsung leaps forward and then apple catches up. and if you add it up over the last few years the market share doesn't change.
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so i put this under the context of what is to not expected between this cat and mouse game between apple and samsung. >> andrew, you have the phone right there. and is it appreciatably different? kind of a quantum leap? or just incremental, more of the same and sort of pushing the line of where the competition is. >> it may seem like an increm t incremental upgrade. if you follow along or have the previous one, you're not the target market anyway. you're not interested in buying a new phone and ten months later or 12 months later. samsung is targeting people coming from iphones or from really old android phones. they will get something that is absolutely fantastic and blows them away if they haven't been following the smart phone market for the last year or two. >> andrew, can we see you use the stylus? curious how that works. >> yeah. that is something that get people. when the pen just comes out of there. and can you actually start writing on the screen right away. you don't even have to turn it
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on. they have apple beat there. you can't get this anywhere. you can get it on the ipad pro. that is a 13-inch tablet. you're not getting something where you can use the stylus to collect parts of the screen and right on them, send that off to somebody else who could be a meeting note or an idea that popped in your head. then when you're done with it, all it does is jams back in the phone there and like it was never there in the first place. >> you know, gene, i kind of go back when i see the sort of very -- a lot of applause, critical response to the phone to the macpc wars when critics love the mac and thought it was a superior device over pcs. but the windows ecosystem was entrenched and high cost of switching. samsung is not a small player the way mac was relative too pcs back then. is there something to say about
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apple ecosystem about not being sticky and each device. >> it is not about each device. at the end of the day, people learned how to use the ios operating system. that is something we track closely. we typically look about 15,000 people in the u.s. every year and those rebuy rates are at about 93%. that's been consistent for the past few years and so at the end of the day there is a feature or two or three that samsung outdoes the iphone on but people stay with the iphone. i think the question is are they going to upgrade for this iphone 7 or wait until the anniversary version next year and hold off and do it then sp. >> that said, even people using the iphone like google's apps better. apple has never been able to get apple maps. people to use that instead. google photo is widely cited as something people will download because it manages their photos better. google now et cetera. is actually google already
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making inclouds in terms of not just superior hardware. but even the software that iphone users are responding to. >> yay, that's a great point. samsung of course builds all ofity own apps and services there but if you want to you can take the note. out of the box and install things like google photos and google chrome and use google now and g mail and all these fantastic features from google. that is the extra level of the little bit of customization people can do. these might be absent they are already using on the iphone. google has some of the most popular ios maps that can ease that transition a little bit even though they are stuck on the iphone historically. >> a win for consumers as we say when there is technology this good facing off. thank you, guys. >> thank you. >> thank you very much. >> bit more than half hour of trading. dow down 56 points.
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roughly where it was at the lowest. but still we haven't had one of those half percent move days in a while now. >> what does it take to turn market bulls into bears? adam park earn jeremy siegel talk about. >> and the great cheese bailout next.
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welcome back. piper jaffray and deutsche bank, missing estimates on to the and bottom lines. thanks to weak customer foot traffic. that stock getting hammered losing a quarter ofity value today. >> oh, man. uncle sam, meanwhile, buying 11 million pound of cheese. amid a cheese surplus hitting a 30-year high. eric is here with the story. eric? >> that's right. usda announcing it will buy 11 million pounds of cheese for $20 million. these cheese yoes, maybe there is cheese in there. congressmen wrote a letter asking for emergency help. dairy prices dropping in the past two years suffering from too much supply and not enough demand. high prices encouraging expanding production and last year the eu remove id milk quotas.
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so that hurt prices along with a slowing demand in china and russian ban on western dairy imports. over 1200 dairy farms shut down in the past year. for the money it comes from a program called section 32. passed in the agriculture act of 1935. usda sets a site with import taxes using the money to buy food to stabilize prices then sending the food back to food banks the school lunch program and even prisons. in the past two decades, section 32 has been used to buy dozens of different foods with some of the biggest purchases being peaches, pork, beef, salmon, cherry answersies and potatoes. taking out less than 1% of the cheese currently in storage but they are optimistic it might spur higher prices in the commodity. >> trading market. >> this is saying okay is it worth it for taxpayers to fund this amount by the dairy farmers own admission denting the surplus.
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>> hoping for an emotional response saying the milk market is like the oil market. goes up really high then starts it crash. it hits six-year lows earlier in the spring and summer, and started creeping back up a little bit. but they don't know how long the rally will last. >> unlike oil which someone could buy and store for a long time and waiting for prices to go back their way, milk and cheese within exactly -- >> cheese can you store a while but milk you can't. that's why they buy the cheese and not the milk itself. >> this is the next thing to watch, where do they show up? if there is such a sur plas, hopefully it isn't the cheetos showing up in the school lunches but maybe string cheese. >> remember how the sanctions went after russia for invading crimea and they said we won't buy western cheese. this is a direct result. russia isn't buying western cheese but americans are eating it. 35 pound of cheese a record high per person in the last year. not an american issue.
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i did my part with the $30. >> and so what, every american should go out and buy cheese? >> this asked $150 million from the usda and they only did 20 million. there is a lot more they could have done. but it is the end of the fiscal year so there isn't as much to -- >> pizza, lasagne, this is your moment. >> paying about $1.80 a pound. >> they will get it delivered over the next quarter or so. thanks, eric. >> time for cnbc news update with sue herera. >> sheer what is happening at this hour. white house is closely monitoring the situation in kabul where a gunman attacked the american university of afghanistan. adding it is deeply concerned about the attack in which at least one student killed and 14 wounded. powerful 6.2 magnitude earthquake levelled three towns. at least 120 people killed with hundreds more injured.
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president obama phoning the italian president telling him that the u.s. sends its thoughts and prayers to the victims and their families. the white house saying u.s. officials are reviewing evidence that turkey has provided about muslim cleric who was blamed by turkey for a failed coup there in july. he has demanded that gulen be extradited from the u.s. to turkey. >> researchers at san diego look at physical and mental well-being of 1500 adults of all ages and were surprised to find that seniors were the happiest and young adult the least happy. it suggests that seniors have the benefit of experience and have learned not to sweat the small stuff. which i would agree with. however i think it has to do with something like they have a lot of free time and can golf and go to exercise classes and they are not going the 9 to 5 like we are. but that's me. >> i think, listen, 20s were
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stressful. i never want to go back. >> absolutely. i agree. >> i'm at a point where i think i want to go back. just to see if i remember. >> yeah, check back with me in a few years. >> all right, just under a half hour left in trading. we are trading at the lows for the day and dow down about 61 point. s&p as you see down more than half a percent. nasdaq under performing down .8 of a percent. >> and we speak with morgan stanley's adam parker and wharton's jeremy seeing el about what could way lay stock. stay tuned. seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot!
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welcome back. we have breaking news. meg has details. >> u.s. patent offices invalidated a few patent on teva's drug. bernstein says he expects the imminent interval dags of further one supporting copaxone.
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down more than 4%, kelly. >> i thought maybe it had something to do with mylan because i thought the two were exposed to combine. but it turns out this is a very different issue. >> that's right. in one of the alerts we got here it looks like mylan may have been the petitioner here actually challenging the patent underlying this drug. so interestingly it is involved here but mylan shares don't appear to get a boost given everything else swirling around it today. >> wow. fascinating. thank you, meg. >> thanks. >> mike? >> thank you very much, kelly. in the home stretch here, trading with alan valdez and you know we took a leg down in the last half hour, just more pressure. anything to point to with that? >> not really. and it is uncertain and usually trades at their desk. volume breaking 500 million now a few seconds ago. and you're right, selling off more on that little business but we are waiting for friday. >> what do you think it will
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hear? >> we think we will hear nothing, just more talk. most of the market doesn't think we will see a raise in september and looks like december. you know there is so much money, fed notes out last week, money chart of savings account, $12 trillion and they are scared. people are scared. they are in their bank accounts and paying no interest. they aren't getting involved. i don't think they will raise interest rates in september. >> and we still wait. thanks very much, appreciate it. >> thank you, guys. next guests are both optimistic. one says the u.s. is a best house on the block. other is calling for the s&p to hit 2300 by year end. and market positivity is a cause for concern. more with is equity strategist adam parker and jeremy siegel. thank you both for joining us. adam, if we could, let's start by flipping it. which is to say what are the factors that would cause you to change your tune on equity? >> it is either you know, some
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political risk that causes me to believe the u.s. earnings will collapse or change in corporate behavior more arrogance. capital spending. hiring, inventory. and things that put costs in place that turn out not to be -- >> those are the things that can make people afraid. >> you don't want cap x? >> not too much pch what happens every time we've seen that movie is it puts depreciation burden in place on cost of goods sold on the margins get creamed and margins getting creamed is not good for stocks. >> professor siegel, we have weathered what we call the earnings recession, and earnings declining every year and dragged down by certain sectors. but the market did not go down step for step. clearly the market expect an earnings rebound in the next parters, is that what you expect to keep market at these levels? >> absolutely. we are expecting every 3% gdp and the first half of the year with a dismal 1% contributed to
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the earnings recession. with the bounce back in the domestic economy and in the world economy, actually, there is definitely hope for higher earnings and i would say levels of stock prices now are betting on those higher earnings. so would they expect them in the materialize? hope they are going to materialize. and janet yellen is not going to raise rates in september but i think she is going to tee it up saying if the economy remains strong, we may go another quarter point in december. so that's what i think the market is going to look at and if the economy is actually going to be strong they will buy that projection. >> how does the fed and economy factor into where you see stocks going. >> i care about the fed less than other people do to be honest with you. whether they do 0 or 25, i don't think it matters.
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i don't really care, ultimately i actually only think the best case of earnings that matters that much either. if you ask me about february 10 a market low i would have said 3, 4% earnings this year. you ask me now, i think we can go 3, 4% earnings this year. what changed is the change in perception. i will take zero earnings the next few years as long as i'm afraid after collapse and much higher market. it is less about the base case and more about sign together bear case that is driving markets. i don't think the bear case is that light. >> if the bear case is not likely and people don't fear it that much, what is the market price for in terms of delivering future returns right here? that is the caveat even the bulls will grant to you which is well the market certainly doesn't look cheap. maybe it is overvalued. where do you come down on that? >> you know, i agree.
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the bear case so strong early this year with the collapse of oil, down in 26 with china bringing whole emerging market down, getting flow nets emerging market and really recovered. china stabilized. i definitely agree that's one the reasons why the market stayed up. but it seems hard for me to believe the market can have much of an increase at all if earnings are going to stag nate the next couple years. we have 20 times earnings. maybe more expensive on gap reported earnings and i think that needs at least 4%, 5% earnings increase. i agree there isn't much after down side there but i do think we have to seek aeshings begin to pick third and fourth quarter if we see the market really move ahead. in the second half of this year. >> what would you say to that adam? >> yeah. our base case, i think what makes the u.s. market
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interesting is a yield that will grow. over 2% net buy back and this call option on earnings growth. maybe. maybe not. we will see. but it is better than almost every other major liquid asset out there on earth. it certainly looks strong to me. i think can you have multiples that go higher. if it gets hard to forecast the multiple. if you talk about spreads where they are. i don't know why 25 times wouldn't happen. >> and over utilities here? >> yeah. so what we do is try to play a portfolio that doesn't have massive bets op factors like rates on dollar or oil. you know if you are underweight utilities and telecos and financials, you know you are a bottom performer. kind of a risky set of risk management protocol. so it is overweight biotech and underweight software and on growth rates and the dollar so i could beat the index scenario. >> adam, jeremy, thank you both.
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talking through the u.s. equity market as it is below its all-time highs. >> with 18 minutes or so to go we are at the lows of the day. dow selling picking up steam down 86. s&p 500 down. there you go. almost two thirds of a percent which qualifies a big move. nasdaq down almost 1%. for years facebook is questioned about its cool factors with teens. now they are launching a new app just for high schoolers. we will tell you what makes it so special next. >> and apologies from andrew lloyd weber. maybe we should cry for argentina. since macri became president in december, what's ahead, next on the "closing bell."
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welcome back. facebook has been losing its appeal to teens. now it is launching a new app just for them. >> joining us with what is on tap with the social media giant, hello, julia. >> facebook wants to lure
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teenagers to their new app before they are hooked on snap chat. now profile and stat updates are compiled with videos and emojis. the app is it allow to you list snap chat handles. it is free in the app store and you don't need a facebook account to sign up but only becomes unlocked once 20 people at a school join. if you're older than 22 you are only able to see your own profile. the app was designed by someone under 22, michael s aeman who is just 20. there are no ads and no plans it launch them. while facebook messenger, what's up and instagram are hugely popular, facebook is getting rid of poke, sling shot and paper. we ceil if they work out or if
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facebook just uses it to learn more about what teens want. kelly? >> julia, thank you. >> and your daughters? >> not yet. facebook has always been there. mom and dad have been on a for a while. it is amazing how fast something becomes linked to older people. >> a tough market to crack. by the way, 450 to sell on the bell today. look at this. market is taking a leg lower. dow is down almost 100 points. we have not seen a move like there in quite sometime. and it has picked up steam as we head into the session with 12 minutes left. s&p down and nasdaq down more than 1% down 53. >> argentina stocks are rallying. but economic strategies show a different story. details are next.
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welcome back. president of argentina just in december with hopes he could turn the economy around. >> numbers out today, though, indicate it might be harder than he thinks at this point. seema mody is back at headquarters with more on that. >> mike and kelly, that's right. argentina's unemployment rate
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rising to 9.3%. first numbers released since macri became president in december. he is tackling high inflation including devaluating the peso and partly contributed to the rise in unemployment and the drop of oil prices and recession in brazil made his ability to turn around argentina's economy even more challenging. meantime, stocks in argentina have rallied on hopes that this new leader would deliver sweeping changes. it is currently the best performing emerging market this year up 36% but experts point out that if the data doesn't start to improve by this fall investors will likely lose patience and guys a story we have seen play out in other nations new leaders of economically strapped nations making promises and sometimes underdelivering once elected. an example in india and italy. research conducted found on
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average 90% outperformance happens in the first two years of a new leader coming to office and after that the returns typically flatten out. kelly? >> yeah, the honeymoon period. true in these cases too. joining us on the floor as we keep an eye on the markets is brian nick. chief investment at tiaa, welcome. >> thank you. >> you like the opposite parts of the market, least good performance this year. >> i think you obviously have seen a tremendous fall in interest rates this year. not just the u.s. but globally. have you investors chaing the higher yields. i think i would rather go the other way. within the cyclicality of the economy. >> seems like that has been the mode of the market for the last several weeks and take og on a more cyclical tone. where does growth have to come in for earnings for gdp to substantiate? >> it would be nice to see one
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quarter of 2% growth of gdp but we don't know yet what projectry of the earnings and we know it is better in the third and fourth quarter but are we back at robust corporate and possibly not in the next quarter. i think consumer discretion is the most potent part of the u.s. on con my. stocks vchbt behaven't been rew where i think they should be. >> and what about terms structurally? >> obviously for financials and globally can you see more, look at financials heavy parts of the market in europe. look at heav i think if you want a sort of potential for higher growth, look at financials. you see to see interest rates come up from where they are, especially in europe. >> thank you. we will see how it all plays out. we do have a sell off on our hands. >> we do.
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and the closing countdown next. >> also coming up after that countdown after the bell, disney squeaky clean media giant. deeper ties between the two may be in the offing. we will explain that story ahead. you're watching cnbc, first in business worldwide. the first person to survive alzheimer's disease is out there. they're going to hold on to everything the disease steals away. that smile they can't hide. the dance class they love. every single piece of them is going to make it through. and the alzheimer's association is going to make it happen by funding research, advancing public policy and spurring scientific breakthroughs.
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cohen has for us. hi, scott. >> hi, mike. judge nicholas says spare me. i wasn't born yesterday. denying bail to kobi alexander. he left for anybodia ten years ago when he was about to be charged in a scheme. came back today. his attorney arguing for a $25 million bail. but the judge said that his intelligence and guide are clear indications he cannot be trusted. so kobi alexander will go maximum security facility. he faces maximum ten years in prison for the options back dating charge. one of the last remaining cases from the dotcom era. back to you. >> scott, thank you. appreciate it. we are looking at a sell off late in the day. >> yeah. i want to put up specialty pharma stocks and mylan started
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drooping in the middle of the day. that took stocks down with them. teva news, you heard about that earlier. and they all started drooping. that moved into biotech and then moved into other areas. so if you look at recent market leaders, biotech has been strong. but weak on this and metals and mining stocks have been strong and the second one there down 5%. we have seen a lot of semi conductors that's that third one there. that's down weak a little bit and oil and gas companies have been strong. and this makes some sense. you get weakness in the market and first thing you do is take a little bit off the table of the most recent winners. those are the ones with the most profits. so this reaction is underable. very, very light volume. >> and 20, 25% below. >> and that's not high but a relatively big and people bracing. >> look out in october, november, you see the vix is a
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lot higher there. anticipating fireworks. >> and people bracing for that. thanks very much. >> ring the bell today. and the nasdaq transaction technology incorporated. >> [ bell ringing ]. >> welcome to the "closing bell," everybody. i'm kelly evans. a down day here on wall street. bigger than we have seen in some time. here is how we finish up the session. dow up 62 points to close below 18,500. remember that old time closing high is 18,636 earlier this month. about 15 points off its high, nasdaq down 42, worst performer today. 5217 is closing level there. it is going to be another busy hour for earnings here. julia boorstin will give us
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numbers from hewlett-packard. we will see you in a moment. back with us for the hour is mike santolli. >> little bit of pressure right from the jump this morn aeng i do think that weakness in health care, biotech in this widely held area. just general rhetoric around pharma pricing. seems like the stocks completely dependent on especially pharma comes down. for now people think it is just too calm for too long. >> we will have more on the epi
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pen story in a bit but again a market where it didn't seem like anything was out of sorts this morning but finally here more of a decided move to the down side. >> yeah, oil and vix are the biggest moves we saw. s&p is on its 33rd day of having a less than 1% move. volume is low. across the board. about two thirds of its average volume. but i'm curious to see what david feels about health care and you are talking about mylan and how it took out the rug from under the pharma sector but it seems like the whole sector is susceptible for that and maybe valuations are overheat t heated because this news alone you wouldn't think would have been enough to really unseat the whole sector. >> yeah, look. the group has shifted. to taking a positive note. look at this mylan thing. people are immune. investors are more immune to the whole concern headline risk if you will. i understand that you know it did take at momentum out of the sector today but in general i
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mean on the desk we've seen much more buying the dip mentality or past several weeks than sell the rallies dh we have seen the past year. so it's been over a year, year and a half since hillary clinton made that tweet on drug pricing that essentially detailed a lot of the sector. i say, they are getting more immune. they understand. they have their head around it. i do believe they understand the aspects of what, the kind of control she will have if she is elect fed raising drug prices when you see something like mylan raising it this aggressively yeah it will raise the red flag and scare people. scare investors to the point where buyers maybe back off to see where the cards may fall. >> and we see the sector, by the way, brings up what best buy cited as one source of
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strength-tsh. >> and go pro. >> right. interesting names that people move away from p.m. one story companies. but there's a little bit of it there. those stocks were interesting today. >> and fit bit up about another 1.5%. they won the first round of arbitration which jawbone pursued against the company saying not only have they poached a bunch of employees but the employees took trade secrets with them. the judge ruled in fit bit's favor and that seems a win forfeit bit. jawbone can't publicly traded. they have come down recently from multibillion dollar. but that a storied stock today getting at least one boost. >> and both fit bit and go pro and fit bit a lot of skepticism. >> is that a drone, by the way. >> i'll take credit for it. >> but both started to look relatively cheap and washed out. in other words not just concept
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stocks. they add real business. and i do think it has hit some of the smaller internet stocks. so you've seen the last couple of weeks and months the likes of yelp and discarded relatively narrow internet stocks and other tech companies ply a little bit. the longer a rally goes on that starts to happen. >> and another thing just returning to health care theme, alyant. valiant. >> and stocks got washed out. and cfo says i'm turning this company around and we have talked about analogies with tyco in the past. so this becomes interesting here. >> i have said it before and we have said it for the past several months. i look at valuation here and sort of the outline he has put forth. it could be an absolute to look at the more longer term to median. no yes from look at it from the buy side. >> that said, down 2% and looks
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like it is pulled downward with some concern about mylan there. let's get to hp earnings. julia? >> hey, kelly. on both top and bottom line, earnings per share adjusted earnings per share coming in at 48 cents. that's 4 cents better than expected. revenues beating estimates coming in at 11.89 billion. nearly all of that revenue bait is thanks to notebook sales and which came in at 4.3 billion versus 3.8 billion estimates. now in terms of outlook, the full year of fiscal 2016 adjusted earnings per share. outlook is top end of that range as being brought down. now between from the previous high end of $1.65. right now it is right in line with estimates because earnings shifted and several shift need the fiscal q3 and we see q4 adjusted earnings outlook coming
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in later than analysts expected stock trading to just over 1%. back over to you. >> thank you. how does hp put out a number of half a billion in expectations. >> another bucking of the trend here. >> it is usually something growing in the market share and who knows the flow of orders in a given quarter. it seems like it is good enough to hold most games. >> we will put an eye on it here. let's get to work days earnings and seema mody has those for us. seema? >> mixed earnings and financial software missing street estimates on bottom line and loss of four cents versus expectation of a loss of 2 cents revenue though leading consensus at $378 million. and from the same period last year see the stock down about 2%
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in after hours. back to you, kelly. >> thank you. what would do you with the work day here? >> i'm an buyer here. there's no new wins we see on the horizon. i look at the stock and say full -- very fairly price wred it was trading. and you know my opinion in general i think coming in and seeing more competition. migrating more down to mid here and customer and i look at him and say stay away here. i don't like it at all inener term. >> we know oracle is going fiercely after the business as it does grow. hp a newer company and frankly work day shares down 1.5% and a little bit of pressure on these after hours. >> that's one thing you say about the season is it is not about this bell weather will take the entire group for a run. so obviously giving back 2%. it is a pretty pronounced move on this tape right now for $14. >> and by the way -- >> excuse me, hp down. >> but tech is one of those parts of the market where it has
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found new investors who kind of like it for the same reasons that they might not have liked itrecentlyrecently. this year all about boring tech names. >> that is a lot of money that it chased hp shares. and because of the dividend deal. because of the stock that they were buying back. and so you know not really on the core earnings. sales have been falling. profits have been falling and they are in restructuring mode and their core business the most profitable cartridges and other ink product for the printers have actually been shifting focus away from that. so it is really more after financial engineering story and if you don't like the core business then you will be selling shares. >> for 8 or 9 times forward earnings where hp trades and 3.5% dividend field then they are looking just not to slichk very fast. >> you mention that revenue number and even though it came in above expectations down 50% year on year. i guess the question is does this become a vehicle for acquisitions or does it continue
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to be what it is really for investors. >> it sound id like hpe is more of the vehicle for acquisitions versus hpq which is just the staunchy old stable throw off some cash type business versus hpe which does a lot of deals. >> exactly. >> that's right. what is funny is sometimes those splits don't go according to splits. the business was supposed to be cvs, not viacom. didn't work out that way. >> hpe ink shares and down more than 4% at this point. we did mention as julia said guidance is weak and especially for fourth quart earn there are timing issues. it is coming in light and look for more detail on those shares under pressure. we are also waiting to hear from retailers. pdh and william so nomo and case by case ever this season. >> absolutely. pdh is priced for being raised. and that company i think will be doing really well long-term but
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they need to be raised and william sonoma is a coin toss and as far as home furnishing market, you look at tj maxx and when they put up their comps for the home goods division, they were down big from like 9% down to 4%. 4% or 5%. that is a read through to what happens with the earnings report. >> would you think that they would be doing better if everyone is in this cycle and they invest more in their homes and maybe they are doing wig projects and not just buying accessories. >> and that's the other way to look at it. >> and best buy comping less than 1% so we will cut them slack. >> any recommendations before we let you go? >> no. but i think that you know these sectors that like a biotech and from growth perspective is there. they continue to accelerate. i like biotech and i think the banks we talk about it in the show before and you continue to own into the potential of rate
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sentiment, if you will. >> but with the biotech, even though you know a whole other round of political pressure is out in best entry point? >> i think you buy the pull backs. you buy the pull backs. there's the political pressure i think from the standpoint of drug pricing is more and more understood by the investor community. there is a lot of underweight, if you will, and lot after portfolios. they want to have them from a growth perspective and m & a cycle will accelerate. there is value here to look at and put in your portfolio. i think you will get descent returns. >> and the banner case of that. david within thank you for joining us. coming up on fast money next hour, david and the rest of the crew will sit down with former apple ceo john sculley. what wou under tim cook, what would he
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elan musk is keeping it in the family. buying up solar city debt along with executives who are musk's cousins. now phil lebeau has the transactions for us. hi, phil. >> hi, kelly. yesterday afternoon when it came out people said it is another debt offering from solar city. understandable since this company installing solar power systems. homeowners don't put money down and pay on a monthly basis. there is a lot of debt. the latest is for $124 million. 6.5% interest. 18-month maturity. who are the people stepping up to buy 80% of the bonds? familiar trio. ceo or chairman of solar city, elan muss sk buying $65 million worth of the bonds.
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lyndon rive and peter rive, brother, the other part of solar city. we have talked about the purchases of the bonds and we've had thousands of people set up solar bonds accounts from all 50 states even our intention to be to continue to expand the solar bond program significantly beyond its current level. ultimately elon, pete and i expect to be minority investors. we will see how that shakes out through the next year and half. we reached out to elon musk through tesla and they say he isn't commenting at all. you've got a lot of the principles putting their own money often money they are borrowing against through collateral stakes in these companies, they are buying these bonds. they would say it is a show of faith in these companies but certainly is one of those where people are saying, an interesting move nonetheless. >> that's for sure, phil.
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thank you. let's bring in steve diamond, law professor or corporate finance. he is advising on the solar city/tesla merger. all of that said professor, welcome. and what do you make of the elan musk and his cousins buying up so much of this offering? >> well, kelly, more heat than light at solar city. this is another troubling move from a governance perspective at least and maybe from a financial perspective. we don't know yet. first it shows ongoing weakness at solar city. second essentially material information that i think the tesla board has to consider and that point back to the issue that ctw investment group made to tesla that their governance problems at the board level with respect to this transaction. >> for sure. so it seems like there are concerns about this from tesla's point of view. i'm sure solar city is fine with it.
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>> you have to get the money from somewhere. it is nice to see chairman and executives putting the money where their mouth is. there should be something about the circular nature of the money. the fact that executives are paid a coupon by the company i think would be a little bit troublesome. people don't ask these questions when elan musk is in the tesla offerings because that is a different beast. but about five years ago, the founder of godaddy, they were trying to take the company private and no one would buy the bond. it was in the middle of the emerging europe market in the debt crises. no one would buy high yield at the time. sew stopped in and bought the entirety of the offer, collected the coupon and godaddy went public to pay him back for the debt so he supported a kep believed in, pa pass go leand collect a little more than $200. >> if solar city -- or if
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godaddy was having funding marketing issues at the time is the same analogy made to solar city or is it just a structural program they are patching over? >> it is not clear solar city would have been completely closed off from selling debt elsewhere i don't think. but it'll raise that question. i think more broadly when it comes to tesla and presumably if this deal happens tesla needs to preserve access to the capital markets. because tesla is musk and his vision and the board is so close to him, he has to maintain confidence of capital markets so i think that's why people will take a closer look and the reason you might be concerned. >> does he have your confidence? >> well he is a creative and bright entrepreneur. no one wants it lose this kind of person at their company. however another ceo might correct these kinds of problems.
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>> right. but i guess your point is -- >> got lost again. >> sorry. stephen's volume was having problems there. his point being if the board of tesla isn't muscular enough to stop this from happening, how much do they shoot themselves in the foot? >> how broad is the deal itself? a quasi bailout of solar city. is tesla not acting as truly independent buy wloer would in a vacuum look to buy this company if there weren't all these cross relationshipes. >> and board of solar city is very small and independent committee they set up to evaluate the merger was only two people. so i think that there are a lot of good questions that should be asked on governance about this company. they might go away once the merger goes through, if it goes through. but it is a very different beast from a lot of the companies we cover. >> that godaddy story is crazy. i remember when they went public down here. fascinating. thanks to stephen. if you are still here, we would love to give you the last word.
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>> sure. i just say this is an open question whether this is bankruptcy protection on the down side for elan musk ahead of his own shareholders at solar city and to support solar city to a successful merger with tesla. we just don't know at this point. >> yes. appreciate you are hanging with us. stephen diamond from university school of law. courtney reagan has numbers for us. >> second quarter coming in line with the earnings at 58 cents. revenues slightly light at 1,000.016. well novo the strongest performer and comp sales up nearly 16%. pottery down almost 5%. however. and if you look at williams sonoma guidance, they gave weak
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third quarter guidance as you can sigh shares for williams-sonoma down 2%. ceo did mention the retail environment softened in the quarter and notes a caution consumer inventories they continuing the trend we have seen with others down 6%. so that actually is good for williams-sonoma. and if we can flip to pvh. owner of tommy hilfiger and calvin klein. they beat the street by a wide margin for $1.47 adjusted and revenue about in line to slightly light at 1.93 billion. looks as if pbh is above consensus currently seeing range of 6.55 to 6.65 there. however, ceo did still cite an environment of traffic and trends of u.s. stores for calvin klein and tommy hilfiger were pressured in the cities that are
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key international tourist destinations. still able to raise the guidance in pvh share answers higher by about 1.6%. kelly? >> thank you. to me, williams-sonoma, brand of stores, 16% when expectation is less than 2. >> remember when we were talking about eating at home versus eating out? people might need more kitchen stuff. >> a nice tray. >> maybe wedding season and all of the registry eats williams-sonoma. >> pottery barn though, that was horrible, down 5%. we know that like the one on 59th street used to be huge williams-sonoma, huge pottery barn, those are closed. >> i think the lesson has been it is impossible to generalize about a category company to company in retail right now. you still have that as upgrade of restoration hardware went up big. people are feeling about about it. best buy became a home play when
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it reported great numbers. then you see this from pottery barn from williams-sonoma. a. >> what is interesting about those two company is pottery brand sells pottery barn branded merchandise where as williams-sonoma has its own private line of merchandise but generally kitchen aid and other name brand things. it could mean that some of those more personalized things are growing. >> $8 bacon bits, things can you find at williams-sonoma. customers are outraged by mylan's huge price hike of epipen. they aren't the only one. spreading across washington this afternoon. details are next. and vice is known for its investigation niece controversial subjects like the islamic state and various drug cultures bp but disney, family friendly house mouse is betting
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welcome back. shares are moving courtney, what happened. >> we're not done yet. take a look at shares of guess. the street was looking for 7 cents. you can see the shares spiking almost 11% here making up some of the groupd ground it lost today.
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revenue comes in at $545 million. that's little light. and looking for $551 million. in the americas comps down 2%. that's better than expected. analyst looking for a drop of 4.3%. and the ceo highlights continued weakness in the stores or in the locations in the u.s. and in those key tourist markets. so european performance again was strong. actually greater. china also disappointing. company guests giving weak third quarter eps guidance and strong full year earnings guidance. little bit of a mixed picture there. as you can see kelly shares continue to move higher now up 11.5% after hours for guess. >> thank you. big round trip day i guess for them kind of. political fall out over mylan's epipen price is growing today. let's get to meg for the latest. hi, meg. >> hi, kelly. the price hike of the epipen
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increasing today. let's start with hillary clinton who tweeted out she is calling on mylan to immediately reduce the price of epipenes. a tweet from hillary clinton in the past has never been good for drug industry and today that is impacting stocks all around as well. the white house also answering questions about the mylan epipen price increases today saying that while it cannot second-guess mylan price increases of prescription drugs can raise moral and ethical questions so some comments there from the wlous. then finally what may be impacting shares the most over all is the senate aging committee sending a letter to mylan ceo saying we ask you provide a briefing to committee staff on the pricing of epipen at a mutually convenient time no later than two weeks from today. analysts at every corps saying this may bode a committee to come. there have been a span of meetings on farm suital pricing.
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heather bresh tried to differentiate her company from even telling you in the may interview with her that there is a difference between her company and those. listen to this. >> i think there's been a lot of confusion between washington and wall street talking about drug prices. when you look at touring or the valiants, those were specialty pharmaceuticals that took abuse in practices. with anything there can be loop holes and abuses. thz. >> they are trying to differentate themselves from valiant and touring. the senate committee is look is at them in at least a similar light. we reached out to mylan and they said we have reached out to every member of congress. we look forward to meeting with them as soon as possible. mylan's relation ghosts is very important to their business. we understand they lobbied successfully for the airline
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access to emergency ep fef rin act which -- oh, sorry, the one they are lobbying for now. previously lobbying for the schools epinephrine act which passed in 2013 which provided government incentives for schools to stock epipens. now they are lobbying for airlines to stock epipens as well. this is an increase in sales by 25% since 2013. not just government lobbying, but looking through the most recent filing they are working with disney parks to increase awareness and tell consumers where to get access to epipens if they need them. and in more public places around the u.s., kelly. >> member, even as they expend efforts for people it buy epipens the white house itself is now calling this company out. people who have forgotten,
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heather bresch's father, senator or congressman, had come out again the inversion of mylan. that is now coming back. all raised again. going back to hearing why their price hikes are necessary. >> we did look through the recent filings and in terms of research and development they do provide a graph here. they spent about $300 million in 2011. in 2015 that reached $700 million they say. they are primarily a generic drug company. they say they will spend a mid single digit on revenue. for generic pharmaceutical companies that may not be out of line. >> thank you. those shares were down about 5.4%. selling off as comments from the white house came out. time for a cnbc news update. sue? >> hi, kelly. sheer what is happening.
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foreign staff and dozens of students are trapped inside the campus of the american university of afghanistan. after suspected militant attacked it with explosives and gunfire. witnesses at the same set, the gunfire stopped and special forces have made their way into the compound pt app least one student killed, 14 wounded. strong magnitude 6.2 quake rocked central italy killing at least 120 people this morning. hundreds more were injured as recuers race to dig out survivors. the state department says it has no knowledge of u.s. citizens affected by the earthquake. president obama creating a new national monument out of 87,000 acres of maine woodland. the land is donated by one of the founders of burt's bee's. in time to commemorate the anniversary of the national parks service can which is tomorrow. astronomers found an earth-like planet where life
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might exist practically next door to us. it is a mere 4.2 light years from earth or 25 trillion miles. could be reachable by tiny unmanned space probes by the end of the century. i guess in space terms that is right next door. that's the cnbc news update this hour. >> why i do feel like elan musk will be involved. >> i wouldn't be surprised. >> thank you, sue. >> sure. >> disney is hoping to keep its young male audience engaged. will that investment pay off? that's next. [announcer] is it a force of nature? or a sales event? the summer of audi sales event is here. get up to a $5,000 bonus on select audi models.
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welcome back. digital media company is one of the fastest of its kind with valuation of over $4 billion. that's why disney, family centric media conglomerate struggling with one time cable kingpin espn, and makes disney vice's biggest partner and in line to buy it all. our own kay la toush sat down with them in june and asked who the ideal owner would be if he was selling today. >> going forward i think if you look at companies like apple,
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google, facebook, a lot of -- snap chat, there is a lot of synergies there. i think that disney is a great media company. they are already a partner. the biggest and what they did with pixar, marvel, lucasfilm was amazing. >> wall street journal today has a piece to pick in the unlikely relationship between the two media companies and what the future may hold. let's bring in a media and marketing bureau chief for the wall street journal, welcome amol. >> good to see you. >> it is fascinating to read this from shane smith's point of view. you got to hand it to disney. sounds like they beat out time warner for a big investment in vice and could vice become a part of dits knee in the future? >> it is possible. and if you read our story and all credit to the reporter, you see it is not subtle that both sides, disney and vice, see a lot of synergies and reason to
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combine. they don't come out and say they are looking to do it but you can see that both sides can see that as possibly happening. >> goes back to when you sat down with him in khan and you were talking about what is the end point for vice? it is 20-plus-year-old company at this point. and they have done so well. sounds like they could sell or do they go public? >> you have james murdoch and he said any one offes this would be a good owner. he had previously been talking about an owner. i said why not go public, he said i didn't realize how much money these companies had. i didn't think they could afford us but now i see they have deep pockets. and they could be worth up to $50 billion. >> not too shy on the boasting from shane smith. but it is very hard to value any of these digital media companies. especially if you're an investor in the public markets and you are used to earnings and
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multiples and here you just talk about okay it is a company that has $700 million in revenue. you don't hear much about the bottom line or it is 750 to 850 million this year they are talking about. but it is worth $4.5 billion. that's the last round. he is talking about $50 billion in a few years. what every major media company has flirted with this company at some point because they are all trying to figure out how to chase the young audiences leaving cable tv and looking down the road at which companies know how to reach those. particularly young men 18 to 34 types and vices, that's been their selling point. >> and shane smith was just saying i think today that he predicts a blood bath in media in 2017 which reflect what was said, that he thinks vice becomes the big winner emerging from the chaos if it becomes. >> all of it would fit into his world vision, his world view. fe thinks he can go 10x, what the value of the company is now in three or four years, he is ridiculous to even say he would
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sell this company. let's be honest. and i appreciate your thoughts. disney add boy problem. they had princess and winnie the pooh and they didn't keep boys after a certain age. then they had marvel. and now there a me linea lin ye problem. >> good question. does it feel so hop and you jump in with both feet and you realize in three years looks like we overestimae overestimat what the real risk was? and up and down the cable dial you see this from cord cutting and people just cutting back their bill. they have to do something.
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they have to bet somewhere and there's really only a few companies, buzz feed, vice, maybe voks and few others that are of any scale that would interest the biggest media companies in the world to roll the dice and say maybe we will pick up these me lin yella0e6r7 0i6r7b8g9sds i6r7b8g9sz 0i6r7b8g9sds 0i6r7b8g9sds millennials. >> i love by the way the piece in the article where vice has to host the screenings for employees because a lot of them don't have cable. that's for their new cable channel which albeit is appealing to millennials. there is plenty more on that piece. if you are looking for a six figure salary, stay tuneed. forget harvard or stanford. we will introduce to you a code camp placing student at google and facebook when we come back.
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welcome back. students looking for a quick path to a six-figure salary and a valued significant con valley job are skipping college and going to camp, coding camp. joining us now with what is going on there, dee dee. >> a lot going on. we are at hack reactor. students here are going strong. they typically start at around 8:30 in the morning and go 16 hours, listening to lectures and coding. let's listen to students here.
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tabetha, what are you working on? >> we are in the middle of our senior thesis. so we are helping test with a traffic website. it has been a great learning experience. >> i know you come from a background in fie finance. did you ever think you could do something like this? >> four months ago, no. but with hack reactor's curriculum, we are amazing what the we can do today. >> this is the cream of the crepe. hack reactor get about 500 apply casecati app /* applicationes a month. tuition is close to $20,000, about a tenth of what it will cost you at an elite private college there. we are joined by wane. i know you also are looking to make a shift from finance into software engineering. why make that decision to make
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that switch. >> a big part is the outcome at the end. you mentioned the average income is 105. i will just about double my income previously to that new mark. that's pretty great. >> it is pretty great. seeing dollar signs here. kelly, a lot of people are incentivized by the starting salary and the fact it is a cheaper alternative for many and saving time as well. >> i think it is fascinating. you still have to do it full-time basically full-on. not like you can do this while working and making that transition. >> not at all. working six days a week. 16 hours a day. for 12 weeks straight. they are pretty much giving up their jobs and taking that leap of faith. >> i think it would be such a good thing for employers to offer. if you want to takes three weeks of mini sabbatical, come back us to -- not that i'm throwing anything out there. meanwhile, in cleveland, one
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venture capital firm is hoping to start up with a unique start-up strategy. we will go live to the rock and roll city next.
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silicon valley is filled to the brim with start up tech companies and a fund in of all places, cleveland, ohio, is hoping to attract new companies to the rock and roll city. these investors are hoping to do it in a unique way. >> that's right. local groups like non-profit jump-start inc which invested in mentors tech start ups here are
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hoping to lead the city's revitalization. they've invested $35 million in more than 80 companies that have gone on to generate over $2 billion. one-third of those investments have been in women and minority led companies. now, they've got a new fund called the focus fund. it's $10 million that will go towards women and minority led tech start ups. they say those are typically overlooked by traditional investors and believe their fund up to $500,000 to relocate here to ohio and help to bring more diversity to an already diverse city like cleveland. >> the focus fund works really well in cleveland because first, we're a minority majority city. so the majority of the residents who live if cleveland with african-american, so our orientation is leaning into that community, finding great tech companies coming out of the community and leveraging those companies and relationships to expand even more.
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women, latino and african-american founded tech companies, so it's a real core piece to the founding of the organization. >> and kelly, that focus fund is gearing up to make its first investment in the next several weeks, so we're looking forward to who they'll invest. >> we were just looking at the street scene for the republican national con veng. that feels like history, but this is a great idea. will it work? >> i think i feel as if every city is trying to spearhead something like this. so the competition is thriving and i don't know if that means in your given city, it's going to put you out ahead as destination for businesses or an incue barrett. >> the thing that could make difference is lebron. you're in atlanta and the way we were talking to ludicrous, he is someone seen as a real katrina list.
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i think. >> someone willing to put capital behind all of these businesses and someone who has a lot of that to spare. also interesting, the cost of living, talking about why it's so attractive to set up a start up in montana or minneapolis. because it's so much cheaper. >> great point and a great city. thank you so much and you can catch the premier of cnbc's new prime time series from lebron james. it airs tonight at 10:00 p.m. eastern and pacific. don't miss it. workday reporting those earnings, this hour, we'll hear from its ceo with jim cramer, next. both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks.
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we have comment frs the attorney of former founder, toby alexander. scott? >> kobe alexander spent the last ten years in namibia fighting extradition. but his attorney still argued for bail and the judge would have none of it saying spare me. i wasn't born yesterday. the attorney said he went to
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namibia twice to persuade alexander to come back. he reacted to the decision not to grapt the former converse chairman bail. >> we are bitterly disappointed with the court's decision, but he's the judge and i'm not. >> what is this pretend for sentencing, the judge was harsh at the end. zpl i don't want to speculate. i think we're going to be submitting a strong sentencing recommendation in form of a mem, which will hopely convince the court that a reasonably lenient sentence is appropriate. >> that sentencing will take place on december 16th. in the meantime, alexander will be in a maximum security facility. he could face up to ten years in prison. his family leaving the courthouse visibly upset. back to you. >> thank you so much. scott cohn with the latest on that case there. want to check in on some earnings movers before we go. hp and work date, under some
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pressure. h prp still down about 4.5%. workday rallying on the back of its earnings and jim cramer coming up on "mad money" tonight is going to catch up with the ceo of about working with samsung. zpl samsung is going through a human capital management transformation project. they took their time. did their diligence and selected us as a true partnership. not only our biggest customer, our biggest in south korea. i feel like we're entore terroring south korea with a bag. bang. >> he'll also be joined by the executives of pbj and grub and ellis. wanted to mention as well, we were commenting earlier about the need for people to see revenue growth not falling too much. when i was it was down 50% from the previous year, yeah, that's what happens when you split up a company. on a like for like base a is, it's down about 4%.
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>> just holding on the top line. >> and with the stock chart, too. it looks like it's been cut in half, but two companies. >> those shares under pressure after hours. we'll follow the calls and comments for you. thank you for joining me this hour. that does it for "closing bell." "fast money" begins now. >> "fast money" starts right now. live from the nasdaq overlooking new york city's time scare, i'm melissa lee, your trader rs -- tonight on fast, stashing the cash. corporate cash levels are hovering near a record, but which sectors are flush with the most cash to spend? we've got surprising answers, plus, a nearly $2 million bet that walmart's record run is only just the beginning. we'll take you bethind staggering trade and later, as tim cook celebrates five years in the apple suite, we'll hear from john sculley for his thoughts on cook's tenure and what he sees as the bigs challenges for apple. first, we start off with a story that moved


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