tv Closing Bell CNBC September 7, 2016 3:00pm-5:01pm EDT
>> maybe it doesn't matter. the stock didn't move. >> the software stuff was more after surprise. >> let's look at apple stock. let's see it. there it is. doing anything? down half a buck. that's it. >> all right. >> thank you. >> we're going to go play with our iphones. >> "closing bell" is up next. >> hello, everybody. i'm kelly evans with the new york stock exchange. >> i'm bill griffeth. tim cook doing car pool karaoke. how cool is that? but the real music story, the new head phones, true, apple is getting rid of the traditional head phone jack for the iphone 7. investor reaction so far has been muted. we will take you live to san francisco for the latest developments. >> i think those will be a bull market in the pharrell
sunglasses he is wearing there. >> or maybe not. >> i think people will buy them. under armour making a big push into asia. we have more with the company ceo and with stef curry and live coming up. >> sarah, staying up late with us. >> i told you, the da test that completely changed my life a couple years ago and the book i wrote about it, plug, plug, plug, today we are looking at big business of genome sequencing. the cost is plunging. but there are some people still willing to pay $25,000 to have their whole genome sequence. >> i noticed we don't have griffeth in quotation marks. >> not today. i know who i am. >> and we will talk about the value of his company and latest news in drug pricing, joseph papa coming up next hour. >> meantime, the stock market sitting here down 23 point. a lot like yesterday and all of
the last several weeks here, the beige book out today which didn't enlighten us again too much about the economy. >> job openings at a record high. in terms of some movers today, on the apple news, look at fit bit, look at go pro. getting more details about what is happening with these new device answers some competitors have some doubts. >> let's go to the event, ka kay kay la taush has more for us. kay la? >> let's run through what you will get in the devices. more storage starting with 32 gigs. that's double the previous line of phones. then moves up to 128 gigs and 256 gigs and the company will extend that to new purchases of the 6 and 6s lines.
you will get a battery that lasts between one and two hours longer. one hour longer on 7 plus from the 6s plus. two hours long owner the 7. part of that is powered from two new chips that are going to be embedded in the iphone 7 and 7 plus. the company described them as rocket ships. they said don't throw away your dslr just know this is the best smart phone camera on the planet. if you get the iphone 7plus you will have a dual camera that includes tell photo or better zoom optic lens on that as well. then on both of the cameras, you will have an hd camera on the front for when you face time or take all those selfies as i know you guys do. perhaps less controversial is the addition of the new head phones. apple did away with the head phone jack that we used to know on previous models of the iphone. instead, they are moving to the
lightning port. that's what we used to use to charge our phones and still will. now head phones will plug in apple if you buy the 7 or 7plus you get new head phones and adapter for old head phones then they will try to sell you something new called airpods. these are are little baby wireless ear foephones basicall the size after cuff link. operate through a wireless chip present and they will have to be charged separately. apple will provide a charger but have you it pay for them. they cost about $159 and they will be available in late october. it will be interesting to see how those are received from consumers as they hit the selves. the new apple watch 2 came out. faster processer pb better screen. new ways to contact emergency
service if in fact something happens. a special nike edition of the apple watch available in late october and they took prices down by about 30 bucks for both the series 1 watch and this new series 2 watch. of course there are software updates as well. updates on apple pay. on siri and stats on apple music. but it is really going to be the iphone which makes up for a solid two thirds of apple's revenue. people are going to be partsing and seeing what it means for the company's bottom line. guys? >> so many things that are interesting here. they will change behavior a lot. >> it is part of the evolutionary process. they make us change our behavior when new stuff comes out. the airpods, do those handles point downward or up in the air? how does that work? >> like an antenna? >> i don't know. depend on you. i haven't gotten to hold them in my hands and see how they operate. it looks like they should fit right into your ear but they are very small.
i know that in the lap rin j that is my purse, they would never make it out alive. but perhaps they are more organized than i am. >> joining us, awelcome to you both. max, what are your thoughts from what we have learned about the new product launches? >> certainly no excess humility or underpromise here. but we have come to expect that. the phone is interesting. the phone is the story. this is a phone company dragging around other exciting stuff. until we get virtual reality, this is the story. i think there is very invenus things. the new earpods, even though they aren't great, they will advertise to the world whether or not you have the money for the new phone. other thing that is exciting to me is as you get the new phone they can discount the old phones. that's where the real growth is
on unit sales. because almost all the growth in smart phones is not the western and developed world which is replacement cycle but the emerging markets where the lower price 6s is about to become hopefully a hot selling item all over the world. >> i know is clear and obvious, but i find it ironic that they don't talk about the phone itself. they talk about the features that go with it. is this as evolutionary as we thought or is there something in there that caught your attention? >> that's exactly right. apple has become a solid valued company. well positioned to take advantage of the marketplace right now. but not a revolutionary company any more. i wrote my notes a week ago and the notes are the same. they talked about exactly what they -- what was said in the media. and you know, it is still a great solid company, solid
phones, that you watch is what the first watch should have been. gps and other features. but definitely an revolutionary company as we come to know. >> let me ask you about a couple of things. is there a dual camera? that sounds like what this phone will have. that's a big question. a source of differentiating other phones on the market. >> yes. the dual camera is available in 7plus model. obviously superior camera. saying the best they've ever built. but unless you're a photographer and can you tell the difference, is hard to tell the difference. you know, i take great pictures with my iphone 6. not running to get a new phone because of the camera. >> one more question, is there a different kind of wireless technology apple is using with these head phones? because it doesn't sound like it is bluetooth.
sounds like it is similar. but would this technology be a new thing here? how is that going to work? >> from what i heard. they have a new chip in the airpods that it is going to improve equalist transmission between the earbuds and your phone and this is something that the technology that is being kind of stale and i think with the wireless head phones and ear spos pods and that will improve over time. which is great for us. who likes wires anyways? >> max, before we go, the rest of the gerber kawasaki shop, they love apple. and they feel it is okay for this company to mature. we don't need sizzle from apple any more. they can grow and thrive without that. do you a agree with that? >> yeah. but i think there is some sizzle to be found. the new chips are exciting. they are fast. the iot tie in things around the head phones and the house is smart. apple pay is smart. apple pay is a chance to be an om any chat checkout option.
i think we see that with japan, new credit unions, banks and folks like market pay pushing a whole new way it use this for live streaming video and check out. still a lot of big and exciting things going on. your life is not just different. and at some point perhaps the presentations they give will settle in to the exciting if not completely earth shattering new technologies they release each year. the next two point, that i think are important, virtual reality and maybe apple is setting up for the iphone 8 with those two topics in mind. >> something to look forward to. that got kelly's attention. good to see you both. thanks for joining us. >> thank you. >> to the "closing bell" exchange. with the dow down a fraction, 18 points. jason brown from fund x investment group is with us here at post 9. so is steven sarge and rick santelli checks in with chicago as well. sarge, we had the beige book,
apply named beige book. what did we learn, if anything? >> how frustrating is the federal reserve bank. really. john williams, which he has been doing lately, and she is no joe namath but i like her. she thinks the economy is at full employment. >> 4.9%. >> you know what is not growing modestly or moderately? gdp, wage growth, auto sales, worker productivity, ism manufacturing and ism nonmanufacturing. >> isn't this the way it is going to be a for a while? >> what it means is that they are unable to raise interest rates like jawboning at this meeting in september. can you imagine the perception in the perception if we went into a recession? we never have gotten that far away from recession. if we went into recession after raising rates, you think they lost credibility at this point, could you imagine it that point.
>> let's talk about areas you like including mid cap value space. pretty specific. but what are your ideas for this environment? >> i think the market leadership in general is broadening. this year we went from sort of the dividend funds to funds like i j.j. or mid cap value or if you like mutual funds you can look at artisan value investor but mid caps have been doing well. small caps doing well. and one of the nice things about that is i think there's a lot of investor concern with the election coming and september coming and so forth, we will have some kind of pull back. and yet at the same time we see the broadening leadership which isn't the kind of thing you see at market top. any market is a buying opportunity. >> rick, do you think the economy hold here the way it has going into the election? or could we see volatility in the meantime? >> if the fed does something you
will see volatility, which is probably why you won't see anything from the fed. there is a litany of indicators that if you use the term nod ra moderate you are probably being kind and it isn't congruent and look at today. 5.87 million record job openings in the report. after pondering that, all i could think of is maybe there is a skill shortage. everybody out there, don't fib. we all like to read the blogs. all like to read the wild web sites every now and again, in addition to cnbc, best of the bunch. but 1 in 6 abled bodied americans aren't working. this is all over the internet today. that's comparable to the depression. when you take bubblicious event like the employment area, which the fed has gone overboard to get that one pillar right, once you start to dig you never really find the gold and exactly what is that goal getting you if those quote unquote litany of jobs and the fact sarge pointed out were close to full
employment if it doesn't garner the type of wages that the type of consumer growth so you know millennials can buy housors qualify for credit or translate into productive uses in economy that translate into growth and higher tax base and less debt. what's point of it all? something doesn't add up here and i continue it hear many expert we had one yesterday at 3:00 when i bit my tongue, bit my lips. when you use the bubblicious event, the proof after good economy, tight spreads, demand for corporate, just behind the sublime and makes no sense. >> gentlemen, i would like to talk more but this apple event is causing us to move on here. >> we have about 45 minutes left to go here. >> with the decline of 15 point at the moment, s&p is a little bit lower. and we are watching the nasdaq
with a record high close yesterday. >> very quietly. >> very quietly. and areas of strength. amazon today, facebook and ebay. >> up next, under armour with a market share in asia. we will go live to taiwan where sarah eyesen sat down with kevin plank and marketing front man and nba superstar steph curry all coming up in a moment here. >> and then later, valiant ceo talks about drug price hikes. you're watching cnbc first in business worldwide.
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of food born illnesses. >> a huge play for market share in taiwan. sarah is there. and with two time mvp steph curry, and sarah our own mvp, joins us to recount that for us. good morning, sarah. >> good morning. 3:18 here in taipei. we came to taipei and hong kong to get an up close look at what curry and under armour are trying to do. they are trying to fight for a piece of what has become a major consumer opportunity and that is the basketball sneaker market in asia. we followed them as curry scrimmaged games with players at high school here in taipei. he dazzled a crowd of thousands at a major stadium with his famous three-pointers and along wait took a zillion selfies with fans.
why is he doing this? because they understand, in china for instance, nba is the top selling league. more than 300 million people in the country play basketball. it is double digits for under armour and nike which is 25 times that of under armour in the greater region. with that comes unique challenges. not just competition from nike but from players and counterfeites. like a brand called uncle martian. a chinese apparel maker with a logo closely resembling under armour's logo. i asked him what he will do about that and listen to what he said. >> in some ways it is a compliment that you find out you have that. but there are serious issues in china a specifically that need to be dealt with. so it is one of the things we reach out and ask the government to help us with. they are working towards it and i think they are making good strides.
but you know, it is pending ongoing litigation that heaps when someone says we will do our version of your company. but our trade mark and our ip is something we take incredibly seriously that we are dealing with and it is not as easy as you think, though. >> curry has ambitions for the region as well and for his own line of sneakers which we talked a lot about about the curries. new curry 2.5 with new design specifically for this china tour. but so far these sneakers have been selling as performance sneakers. and he hasn't captured the sneaker head market like nike has say with jordans where the sneakers are exclusive and people line up for them and they have high resale value. so i ask whether these were plans steph had. listen. we don't have that clip. but he says he is just getting started and hopes to penetrate the market.
that opportunity takes time. he looks up to kobe bryant in terms of leveraging his global brand. just getting started and that's the same exact answer i got from plank when i asked him about his growth stage in this china market. the question, for investors, is is it happening fast enough for under armour for it to grow into its leverage and that depend on the centerpiece which is steph curry and his performance in the season coming up in a few months. >> i never cease to be amazed at interest they will have in u.s. sports over in asia. it was understandable when you ming was playing in the nba. a tall chinese man. but how does steph curry or any nba star that is not of asian
descent play in asia there? >> it is a phenomenon and one that nike tapped into very much. espn put together a list of the most famous global athletes in the world. and in the top 10 you saw a lot of soccer players. no surprise there. that has international appeal. but the other players, lebron james, kevin durant, kobe bryant number 11. stef curry at number 34 which shows that he needs to really leverage this brand intern internationally. but there is a real fever for nwa players and it was amazing to see the fans that couldn't understand a word curry was saying, they didn't understand english, but they love him, worship him. it was like traveling with elvis which is a quote borrowed from kevin plank. it is one where the brand, under armour, nike, adidas, can translate into sales of basketball sneakers. but they are very universal. not like selling soccer cleats.
can you wear them on the streets and it something you see all over the streets here as well. >> great stuff. sara, again, thank you for staying late. now 3:23 a.m. in taiwan. >> my pleasure. >> see you later. >> it is a poetic performance there. >> breaking news now on intel, by the way. don has details on that. >> what we have are dow jones reports citing sources that intel is nearing a deal to sell mcafee secure it to private equity term tpg. the report goes on to say the deal could value mcafee at around $4.2 billion. that includes debt. also this deal could be announced as early as wednesday as we could expect a deal sometime soon. this is the same deal intel paid about $7.7 billion for in 2010 when paul odolini was still ceo. we will see if this effects intel stock. but for now big news about cybersecurity. >> they will probably be happy
to unload it. >> stock not moving. still down a fraction at the moment. >> head together close, 35 minutes left in the trading session here on beige book day. didn't move the market a whole lot. dow down 13 point. but nasdaq in recordtory. >> up next, genome sequincy is in a blockbuster. there are a wide range of options now available. you won't want to miss it. >> plus, valeant ceo, joseph papa, talks about drug price hikes and whether his company will follow in limiting increases. ♪ using 60,000 points from my chase ink card i bought all the framework... wire... and plants needed to give my shop... a face...
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welcome back. "closing bell" is taking a look at new business and an industry built on people interested in their genealogy. >> i can, if you haven't heard, i took a dna test just for family history research purposes and found out oops that my father wasn't my father. that's the family i grew up with. that's me there in the lower left in 1961. but i got say, kelly, as you know, just in the last two weeks that the book has been out, i've heard incredible stories. i thought it was unusual with my story, apparently not. >> people coming up to me -- >> a gentleman just came walking by, saying he met his father at
25 and didn't know about him until he was 20. >> the way you deal with that as family and the way you deal with phone calls is an issue for society to explore. >> all because of dna testing and the growth in that industry as well. >> and offering genome sequinsing to the masses and prices very widely but in way never cheaper, right, meg? >> that right, kelly. it is cheaper and getting cheaper. market for consumer genetic testing is in the early days but as bill expressed, this is something that a lot of people are experiencing and potentially will experience. the addressable market may be 75 to 100 million people at the low end of the cost of these tests at $75 to $150 he puts the market size here for consumer genetic testing at 5 to $15 billion perhaps over the next decade. and there is a wide spectrum of offerings available right now. have you things like ancestry.com's dna test for $99
you can get information about ethnicity and even potential relatives you didn't know about tp going more expensive, you have 23 and me which people have heard of. for that you get ancestry data but also health information and more everyday. up on the higher end for about $2900 is a program that dithrough genome sequencing company, sequencing your whole genome and gives you health information back. there is a $25,000 offering called the health nuke lee use from genome sequencing pioneer. he joined squawk box in july to discuss this. >> we're learning that we're dna software driven species and that your software determines everything about your life including how long you're going to live. >> so for $25,000 and spending eight hours with them in california you can measure a
whole number of things for not just your genes to everything else about yourself. a tip of the iceberg and big spectrum. >> how far do you need to go in order to get, you know -- what are the different levels of information from the $the 99 where you mentioned a couple dozen combinations to this thing where it is giving you information about the whole thing? >> right. full disclosure, meg is the second person i ever told here at cnbc about this test that i took after i told the bosses. she has been my dna mentor for the last two, three years that you've been here at cnbc. can you start with just testing 12 -- what are they called again? i'm a terrible student. >> the combinationes. >> yeah. up to 111 of these things. what are they, meg? >> you mentioned the hapla group in your book. >> well, 12 and 30 -- my cousin
doug is yelling at the tv right now. 36, 65, 67, 111. what you're trying to do is determine how close a person is to you genetically speaking. you have to go back many, many generations but some you can be very close relative based on how extensive the test was. >> right. so if you stay op the genealogy side of things you are given a spit sample and depending on how big the data base is, they can try to find different potential relatives that may be out there. going pretty far back. some folks may be pretty distant cousins. >> i also didn't realize a lot of the web sites or at least the one you mention in the bookstore this data and allow people to connect on that basis. that's interesting too. i guess you get what i sign up for, but talk about, you know, learning different things about
different groups. >> people use this as way to reach out and find relatives they didn't know about. mostly cousins. >> social network mp. >> and we will have someone from the dna website that i used in the book tomorrow with us here. >> thank you so much. >> thank you, teacher meg. >> thank you, guys. >> and we will have more on "closing bell" on cnbc.com. >> time for a cnbcup update. >> donald trump campaigning in philadelphia making his case on why he would be a better president than hillary clinton. he said she is unfit to be commander-in-chief. >> sometimes it seemed that there wasn't a country in the middle east that hillary clinton didn't want to topple. she is trigger happy and
unstable. whether we like it or not, that's what is going on. >> federal appeals court lists unindicted co-conspirators on the lane closing case shouldn't be released before trial. the trial is set to begin this month. morning commuters in illinois experiencing traffic delays after that fell off a truck. a 53,000 pound engine that fell off the truck, rolled off the bed of the truck during a turn, denting the road underneath, a large crane had to be used to remove it off the road. and beer lovers gathering in a small town in slovenislovenia. for about $7 you get a glass with a microchip in it. it allows you to pour a modest amount of beer, about 7.5 ounces, but can you do it from
the taps at the beer fountain. >> homer simpson would be very happy. >> very happy. i i owe you a manhattan. >> thank you, sue. >> you're welcome. >> 24 minutes left in the trading session. a leading trigger will tell us what he is watching going into the close next. when we come back on "closing bell."
welcome back. aheading knot close. matthew chestnut joins me on the floor of the new york stock exchange. what are are you watching? >> watching to see if there are any adjustments in the forecast. we will see if they increase their bond buying program. other thing we will be looking at is gold. gold is probably you know, flight to safety but in the last four tightening cycles gold has rallied. not just a flight to quality or the environment with the rates low. it is when they are tightening. >> by the way, warnings about fixed income keep coming in here
and people just keep riding the bond or bond proxies? >> yeah, i think so. if you can get any kind of return and people bring that up at the time of the year. and with ipos and chase returns in the last three months of this year. >> we will see. now get back to it. thank you. >> bill? >> all right. vip coming in. getting toward ring the "closing bell" today. just about 20 minutes left in the trading session. dow is down 20 points. when you think of big brown you think of shipping and packages. up next, cfo of ups will join us to talk about why he says ups is really a technology company. still ahead, the ceo of valeant pharmaceuticals to see if his company will limit big drug price increases.
companies noncore software assets. a lot of reporting is done on this and in fact not that long ago the ft weighing in. we can give you details according to sources. a deal that should be announced most likely right after the close of trading of this afternoon and that does appear to be involving a spin and merge of their software noncore software assets at hp into a uk based company called micro focus. an household name for many of us but controls a number of more mature software assets and is a growing company with significant down margins apparently. the deal structured as follows. a reverse trust so tax-free. a spin, as i said, and merger into this micro focus. 50.1% of which will then be owned by hpe shareholders. so created 50.1% owned by hp shareholders. they will value that, at least if you look at where micro focus
is valued, that's about $3.6 billion overall and $2.5 billion payment made by micro focus can with cash that is here to hpe. so overall value around $8.8 billion. it is a deal that's been much talked about over the last few days or weeks. as hewlett-packard slims down significantly. a similar transaction last spring under which the company will spin and merge its enterprise services business into csc. that was very well received by the market. we will see how this deal will be received and we will bring you the actual earnings from hpe after about 4:05 or so when they hit the taken a certainly adding in what we can tell you specifically about $8.8 billion price tag for this spin merge of the noncore software businesses at hp.
which include that autonomy unit, by the way. this is another uk company one has to imagine they did a lot of due diligence this time. back to you. >> thank you. we will see you in a couple of minutes. >> meantime, south korea's shipping unit filed for bankruptcy here in the u.s. and will do the same in about 10 other countries. struggling container operator is one of the biggest in the world, number 7 as a matter of fact that handles about 8 will% of all u.s. cargo and its financial problems could have a ripple effect throughout the shipping world especially as we get into this critical period getting ready for the holiday shopping season. >> oh boy. richard perez, cfo at ups and member of the cfo council joins us at post 9. welcome. >> thank you. good to be here. >> do you have goods surrounding the ships? >> no, right now we are fine with what is going on in freight forwarding. and on the demand side, not quite the same as a few years ago. many companies matured in distribution so we don't see
this as being something that will cause a big backlog and more importantly there are other product that can be used across the ups portfolio even in the event of something like that happening. >> so easing the backlog, is that what you're saying? it will ease? >> for ups and ups customers we're not seeing backlog and also other options in our air cargo and our own planes that can off-set if we need to. >> you would be happy if customers had to use those price years express methods, right? that aside, the going back to what's happening with ships, rates got so bad and bankruptcies are now piling up. if those rates start to rise again, is that going to have a ripple through effect on the business? >> so when you think about the particle this is a trance that matters and because of other substitutes as prices come up it makes other product more attractive. >> yeah. >> you have said we were doing
in the tease that you feel like you are more a technology company than a shipping company. what did you mean? >> when you think about how technology is used at ups, we really have been for over 30 years developing technology that is used to improve operating efficiencies and provide customer solutions that allows our customers to communicate with their customers in a way that we never did before. if you think about the board, almost 30 years old, first mass implementation of a two-way communication and we brought a hundred cellular companies together. come all the way to today and what you have is things like orion. you have autonomous vehicles. robotics. all of those things. so it is just continues to invest about a billion dollars a year and in fact we actually manage about 20 byte of data. >> how big is a petta byte? >> take every person in the united states. take the dna data, multiply by
three, that's one petta byte and we manage 20 of those. >> are drones a realistic part of the future of shipping or is this kind of you know, snazzy way to talk about exciting ideas? >> we think it is but we don't think it'll be highways of drones across cities. >> won't be the jetsons any time soon? >> don't think so. but maybe in remote areas or human. areas. we are working with zip line and doing rwanda vaccines deliveries. but also testing with sci-fi works, part of our strategic enterprise fund, use of drones and more after business application as well. >> richard, thank you for joining us. >> thank you. >> richard peretz, cfo of ups. >> now breaking news on sony's play station. cnbc landon downy at an event in new york city. what did you learn, landon? >> hey, there, bill. that's right. we are outside of the sony play station meeting where sony is
taking the stage unveiling first new play station since 2013. here are the bells and whistles. first, souped up play station. play station for pro 4. supporting 4k resolution. working side by side with ps4, improved graphics, targeting hard core gamers. cost $399. sony also announcing a redesign ps4. slimmer, lighter and more energy efficient. new model packs the same component at current ps4. cost $299 and will be released september 5th. all announcements ahead of the new head set which hits shelves next month and will come with new games. i'm sure you're wondering, will the old games fit the new ones? don't worry. all of the old games will fit your console. so you can still play call of duty on the consoles. >> what a relief. ways so worried. >> i was more worried about the
head phone jack. >> yes. >> oh, wait, that's the other story. thank one landon dowdy in new york city. >> let's see, dow and s&p are lower. nasdaq closing at record high yesterday and adding five points again today. >> just pointing out, $300 million to buy going into the close. that's as good as it gets any more these days. when we come back, yield to market veteran david darst and his acronym of the week. across new york state, from long island to buffalo, from rochester to the hudson valley, from albany to utica, creative business incentives, infrastructure investment, university partnerships,
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dow down 22 points. joining us on the floor of the new york stock exchange. am i allowed to say you're just back from burning man? >> please. >> okay, you're just back from burning man. >> the ism manufacturing and nonmanufacturing have slipped. to bring them closer to the slow and steady performance of the philly fed and empire state which will be announced a week from today.
so yield is what is yellen and company thinking? that's the why. the i is the international energy forum meeting which will be on the 26th to 28th in aljeers to talks about maybe freezing production. that's going to be on the side of that. and iraq has said they would and you saw at the g20 meeting russia and saudi arabia actually signed a cooperation agreement. e is earnings. adam parker, morgan stanley's brilliant investment strategist for the u.s. equities recently raised his target for next year to 2300, from 2200. based on 13 times -- sorry, $130 of earnings times 17.7 multiple which would be an increase of multiple why the low interest rates. so maybe that could justify that. y, i, e, l. l is low volatility and volume.
this is very rarely bursts to the upside. so be careful. >> your d is dollar it weaken. >> dollar to weaken. the dollars has been -- it went up, as you saw last week. by .6 percent. even with yields coming off at the end of the week. so basically, our investment committee, we last week took some money out of treasury inflation protected security and put it into mass limited partnerships to get a little bit of yield, okay? and the most recent move before that, as you know, to take money out of europe and japan. still overweight japan. equal weight europe and put that into small caps. and into emerging markets which i still think has growth ahead. >> that's twice we've heard that this hour. paying attention to new -- >> starting to see a trend here. >> thank you, guys. >> have a lovely day.
5 minutes left. dow down 22. closing countdown in a moment. >> still not friday. so still not fair that he is with us. after the bell, we will talk with valeant's chief executive joseph papa about drug pricing and possible selling of valeant's assets. this car is traveling over 200 miles per hour. to win, every millisecond matters. both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every
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the dow again, another narrowly traded day even with beige book numbers out and down just a fraction, about 23 points. same thing for the ten-year yield. no movement there. not even a beige book report. >> moderate. >> over and -- >> yes. >> moderate. >> apply named beige book. hewlett-packard tonight, a special report on that. >> news on that as well. important thing about today is the trend away for a few days but the trend is the same here. tech stocks leading. all the big tech names breaking out so intels, amazons, ebays, yahoo!. all at 52-week highs. and there's stocks that hit new highs on an intraday base its. and banks. you might think no interest rate hikes from the fed but banks have great movement this quarter again today up and presidential election here we talk about this h this morning. banks do better in that period
from labor day until presidential election day. best performing set. and once again today -- >> very good. >> good to know. >> thank you. >> down 15 as we head toward the close here. and honoring fallen firefighters on 9/11 as we get ready to commemorate that on sunday. stay tuned now for kelly evans and company. see you tomorrow, kel. >> thank you, bill. welcome to the "closing bell," everybody. i'm kelly evans. looks like a record-setting day, dow finishing down 11. s&p down. and nasdaq up to 5283 building on yesterday's record close powered by ebay, facebook and amazon. all flirting with their highest levels since their ipos.
again nasdaq up 8 points today. more on that in a moment. coming up, valeant ceo joseph papa will join us. stay tuned for that. here on the panel, welcome guys. steve grasso will join us in a moment. mike, the nasdaq at it again. >> yeah. broad market playing into a tie again today but nasdaq and just sort of the growth names, really a lot of companies specific drivers. and so you did see that rotation yesterday beginning with some of that grabbing for some of the large cap growth. i also think the transports today were an interesting move. airlines driving that. again, conference season. companies giving outlooks. that is one of the per pellants so to speak. but more broadly speaking, i that i we've been neutral for so long in terms of this trend, we
almost stopped talking about how common market is. >> and transports with a nice session. up 105 point. delta, american, united, oh, and apple launched new product too. >> i think we heard a couple of things about that. it is amazing with the fed beige book coming out and some of the data we are seeing. obviously giving many more people pause in terms of whether there will be a september rate hike. we know that i thought that that was off the table but goldman was very bullish. now walking back on that. and so obviously a lot of support for the market. i think what is interesting is seeing the rotation and into sectors like transports and technology as we are talking about. >> we come back to this. breaking news and liberty media and david, what is happening? >> kelly, this has been around for some time and we can report it's official. liberty media acquiring formula 1 of course people may know that the racing circuit certainly extremely popular in europe.
400 million fans or so. it is a deal that as you might typically imagine for liberty is fairly complex inity structure and doesn't involve them by 18.7% immediately and then the remainder when they close the deal perhaps as soon as first quarter let's call it of next year. in doing that they will spend $1.1 billion in cash. 138 million lm ck shares and 351 million worth of exchangeable debt instrument to be issued by formula 1 and exchangeable shares of lmck. this will give of course liberty media control formula 1 and they are going to then change lmck into the formula 1 group. so we will be a tracker of formula 1 same way they have a tracker of their stake and syria satellite and stock in the
atlanta braves. did you know that? yeah, they do. and so many others involving liberty will mean that cvc one of the current large shareholders will own 65% of lmck, soon to be renamed formula 1 group. but they won't have control, john malone will have control because they won't own voting shares. overalthough it is a large deal. $4.4 billion equity value and assuming $4.1 billion in debt from formula one and that will become a credit of the newly created formula one group. and it is a large deal as we said for liberty media. one that has been rumored for some time. importantly chase keri, remember his name, man who ran fox news -- excuse me, 21st century fox, coo for many years, important operational role. same here, chairman of formula one. the man who created this will
remain head ceo. he is about 80 years old and john malone moving into racing. i'm an big fan but perhaps you are and can have more on what the opportunities are here in the u.s. for what is clearly a very popular sport in much of the world. >> the u.s. question is interesting. what you say is you go overseas and these are pretty lucrative property. some of the better known talent. we are talking about one of the now corporate executives, one of the biggest u.s. private land owners by the way, and trying to figure out and follow all of the tracking stocks and different structures he is constantly juggling around makes one's head spin. you mentioned braves tracking stops and other things going on. what is this all fundamentally about? >> well, listen. liberty as you know, i know mr. malone quite well through the years and always looking for tax efficient deals and yet in ways
to show value of its entrancint states and that's where you are going again. make no mistake, acquiring formula one. it is a big deal and again $4.4 billion. cashing out many of their long time shareholders who will receive to a certain extent as we said, shares of the new tracking stock but won't have any voting control. but it is a big play for liberty. a big bet on european assets at this point. some wondering whether so much is going ala cart. we will ask a couple of quest n questions a. >> to the strategic rational. >> i think you can think of formula one as content of a sort and probably if there is one way that it links up with the rest of the liberty media it is that and seems like a preferred exit type transaction. have you a long time founder owner want it to find a buyer
and you have someone who thinks they can make a little more of it. international speedway with publicly traded stock, nascar, not formula one, looks like someone will try to get more for the stock after hours. >> not only content but also experiencees. and the whole experience meets content is very on trend and makes sense to move away from things that aren't experience oriented that they have within the portfolio. >> real quick, steve? >> if i request explain, 15 second. i would rather not trade. david much smarter than myself took a couple minutes to explain so i will stay way. >> back to david on a different subject. hul hewlitt packard. >> yes, hewlitt packard end prize, the earnings kelly, 49 cents adjusted versus 44 cent estimate. but the revenue number a bit of a miss here. the company citing what was
challenging from a macro perspective in europe. particularly in enterprise services from the brexit which did come in this quarter that is being reported. overall they did have a very strong gross margin. up 60 basis points and year over year. that did lead them to a certain eps number as well tax benefits also came in through thereabout 4 cents a share through recent divestitures. they have been such a key thing at hul hewlett-packard enterprises. and remember hpq, printing and ink. and then they split and then the big deal announced last spring to spin off enterprise services to csc, that's still in progress. expected to be complete by the end of next year's first quarter. and now as we told you earlier,
the spin off of their noncore software assets and merge them with a uk based company called micro focus. hpe sayhareholders will own 51%f that company. value is $6.3 billion. then go fr micro focus to hpi. a number of areas they entertained with the software assets. they could have gone from private to equity. it might have taken the value down and they have 8.8 billion and a tax free deal and what we call a reverse trust and so that certainly is still going to potentially be the headline but that revenue number may be something that some investors are not particularly happy with though the company continues to return a great deal of capital kelly to its share holders in the share of share ru purchases.
and has more cash once it completes the various deals. back to you. >> david, that's a tour deforce here this afternoon trying to dig through those earnings and everything else going on. thank you for bringing it to us. thank you. eshares are whipping around on those results and david will sit down with the company ceo, meg whitman in an cnbc exclusive, tomorrow morning at 9:00 a.m. on squawk on the street. don't miss it. well, you want to tackle that one? >> he should go in for contract negotiate right now. hpe up 50% against hpq. the market decided that hpe is the way they want to go. >> but a franken company and it is one of those things they are now spun off or in the process of spinning off software. we know that they are starting to make acquisitions again. meg whitman is a brilliant
leader but we don't know what this company is going to look like by the time they finish all of the spin offs and sale of assets and things they want to buy. i don't know how you begin to think about value because you have no idea what it's going to be. >> shares down about 1%. >> i don't think it is trading as much on the quarter. we got the news of the spin off and i think is continued unspooling and the market base can trust meg whitman to get descent value. it doesn't have to be a fire sale liquidation. presumably unschooling happens in an advantageous way. >> we have the nasdaq add record high today. where does that leave investors? ? >> you speak all day long to the brightest as i do. it is really almost, you don't want to say a flip of the coin but we have all put our eggs in the fed's basket. we have no way it play that. if you believe we're at the end
of the easy money scenario or closer to the end, all relative, right? closer to the end than the beginning. the market right here has to be fully valued. what are we missing to the upside? maybe a 2% move to the upside. i think you're better off selling this market a at this level versus buying. >> all right. we have breaking news on the cost of those pretty common medical procedures. meg has more for us. meg? >> hey, kelly, a focus on mark-ups. drug makers often respond by saying we are a fraction of the health care industry. and a new study out from johns hopkins examines mark-ups that some hospitals take on some procedures. same with the uninsured and folks who are out of network. now they look at different procedures across the hospital system finding that from about 1.8 times for inpatient general routine care to about 6 times for the drugs charged to patient
within the hospital up to 13 times for mri and more than 20 times for anesthesiology and ct scans. on the top there, the researchers suggest that hospitals mark up higher in the departments with more complex services because it is harder for patient to compare acrosses to departments. they say quote the high charges led to personal bankruptcy, avoidance of immediated medical services and much higher premiums. while this looks at unainsured folks and it may affect a lot more people than that kelly. >> the take way is that hospitals have come on and told us how bad it is with the drug companies raising prices. and now this is suggesting that in some ways they are part of the higher prices too. >> just how involved everybody in the health care ecosystem is and the higher cost of health care recently and that's a discussion we will have more and more. >> is there anyone here, meg, or
anything that is particularly singled out? >> yeah. i think if you look at the sort of span of the mark-ups going up into more than 20 times and you look at things like ct scans and anesthesiology, potentially marked up to 20 times the cost, that is something that they really focus on saying these are complex areas where patients may not be able to really tell how they compare so they are not getting as good of deals at hospitals. people may be being taken advantage of to increase revenue. >> meg, thanks for bringing that us to. parting thoughts? >> it is interesting. anesthesiologist would be the one area where i might say mark it up because i want the best person possible. but in terms of the rest, this is everybody's frustration with the approach of the affordable care act. we didn't need more affordable insurance, we need more affordable health care. the fact that there isn't a level of transparency of what it is you're paying for or to price
shop or make comparisons is the crux of the problem. if people weren't going bankrupt because of ct scans -- >> i do wonder, now 40% of plans and the general reporting this today up 25% from years ago and maybe that moves things. but it depend so much on what is in and what is out. >> and transparency. >> we're not done yet with the breaking news. john ford joins us with more news. john? >> yes, kelly. remember when intel bought mcafee and renamed it intel security? they are keeping a stake, intel announcing that tpg, investor and intel will jointly invest of a spinout of intel security valuing the business at $4.2 billion. intel will retain 49% of that entity and tpg will have 51%.
chris young who had been running intel security is going to now run the mcafee entity and says that as a separate entity, as independent entity, it now mcafee will be able to more quickly innovate and coordinate its security effort. not sure if that indicates that some people felt like under intel they were able to move as quickly in security matters, as they will be now. but this news, intel of course acquired mcafee and renamed it and now spinning mcafee back out and intel retaining 49% stake. i should say the business overall values at $4 h.2 billion. kelly? >> john, thank you. not budging too much on this news rumored earlier. thank you for joining us here on a busy hour already.
stay tuned. there is much more coming up with steve on fast money today. there is something troubling on the horizon and he will reveal what that is at the top of next hour. now ceo pledging to limit big price hikes today. coming up, valeant ceo, joseph papa, tells us if that could be the big rage. plus, apple officially having that head phone jack hit the road on its new iphone coming up. we'll discuss whether that could force iphone users to hit the road in favor of android devices. you're watching cnbc, first in business worldwide. we've just been hearing so much about how you're a digital company, yet here you are building a jet engine. well, ge is digital and industrial. like peanut butter and jelly. yeah. ham and cheese. cops and robbers. yeah. nachos and karate.
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apple has a highly anticipated event today. and officially saying good-bye to part of the iphone. josh has the latest details. hi, josh. >> kelly, let's start with apple's flag ship device here that iphone 7 does boast new bells and whistles. among the highlights here that iphone 7 will be 40% faster than the 6s. its display is 25% brighter. best camera apple says it has
ever made. and the battery lasts on average 2 hours longer than the 6s. as you mentioned though kelly, also notable for what it will not include, head phone jack, fans of wired head phones can use an attachment or they can buy what apple calls airpods for $159. >> the airpods deliver truly an apple magical experience. when you try it, you'll just be blown way. listen to beautiful music in stereo or if you want to talk to siri or make a phone call it routes the audio across whatever you choose to do. there's no buttons, no switching, no pairing, no unpairing. those things are of the past. >> now as for the price, the iphone 7 will run you $649. that iphone 7 plus starts at 769. preorders start september 9th. it wasn't just the phone.
apple also introduced a new version of its watch. financial analysts don't yet consider that device a home run but the new version apple saying will be faster, brighter, cost there $369. kelly, back to you. >> josh, thank you. was the unveiling everything everyone hoped for? kevin landis, welcome. i have so many questions about the ear buds but i don't know if you can answer them. what happens if they fall out of my ear. are they connected somehow? magnetic? >> how quickly will we lose them? >> what does this technology work like if it is not bluetooth but kind of bluetooth. what are your thoughts in the early hours? >> my dad says separate apple the company, which is a great company making wondering products, and apple the stock. it is a beautiful phone. but the issue is that smart phone market itself, growth is grinding down to 1%. you're seeing a longer upgrade
cycles. this is the top generation of this phone and you may see consumer demand pushout to 2017 for the tenth anniversary of the iphone. >> what do you think of apple's general prospects? >> in general, they are just running into this plateauing problem. they've kind of conquered a huge portion of the world's biggest market and there's just not that much more growth left to be had. so now they just try to evolve the product and get you do more different interesting things on it and boy, it's really incremental. and the fact we are spending all this time worrying about a head phone jack is a sign of that. >> yeah. to kevin's point, the world's problems must be solved because this is what we are worried about. i think it was modestly interesting that they did turn around in the middle of the day. they did recoup very small losses. low expectations basically met.
so i feel like the stock is a steady state right now, about 108 will. >> don't you think they were active into the market? >> app snell. >> yes. >> and somehow that's magic? >> how many tens of millions to date and -- >> that's the multibillion dollar question. this is a company that is basically a mint. printing money. what are they going to do with it that is going to, you know, get us jazzed and be able to for us to expand this multiple because certainly they have the capabilities and the things that we're seeing out of them aren't matching sort of the capabilities that they have. >> we are stuck in like a total trading maze. you go back one month and the stock is one penny lower. than it was a month ago. so i don't think it'll stay there. either break up or break down and that's all going to depend on reception to the iphone 7. . >> kevin, do you have a general sense of what apple needs to do in terms of sales. in order to justify a current
price or justify a higher one? >> it is not rich on a pe basis. just a huge market cap. i think of apple as pretty much on top of the world. but for tech world everyone is looking for a top. they look like a top. what they need to do is figure out more spings to enrich your experience so you do more things on the phone. putting pokemon go on the watch encouraging p em to do pokemon go and do one more thing on their iphone. that's a good thing. it is siri. think about how you interact with siri and does that make the phone more and more indispensab indispensable. they are selling so much hardware now, how much more can they sell? >> with the pokemon go example, is that really incremental or a trade-off because you are doing this on your phone. so now can you do it on your watch. it is sort of the same consumer,
i don't know that you are bringing on a new consumer and that's not going to change the game, no pun intended, for them. >> i like that though. >> there is a subtle difference. >> go ahead. >> there is a subtle difference. that is that when you're not actively playing the game but walking around, you want a notification that you're near something so you can pick up the phone and start playing again. that's what vibration from the watch is and that's what people are talking about. for hard core gamers, this will get them more closely tied to their iphone. >> i thought nintendo themselves were coming out with something like that too. >> they are. they are. >> the galaxy note 7 had great reviews. looks like it could have been a -- then the fires. >> that's a phone that could have just blown up in sales but instead -- >> oh don't do it. don't. >> don't go there. >> that is still all shaking out though. it could be a huge success and broader question is this. is apple really increasing its
market share? >> oh no, they're not. it is worth noting that apple's market share, they sold a billion iphones. that's wonderful. but that took nine years to do that. they sold, we will sell 1 bnt 2 billion android phones this year alone. their market share is below 15%. key thing for investors out of today's key news is you have to worry about selling prices. as they put more memory into the phone, more storage, asps can slide down because people pay up into the mid and higher tiers. very profitable money for apple. that the reason why there is 44 buys out there and we still have our sell. >> kevin landis, collin gillis, thank you both. appreciate it. talking apple as we keep an eye on the shares this hour. >> coming up, don't miss an exclusive interview with valeant ceo, joseph papa. he will talk about how he is reensuring investors during
hey, it's been crazy with school being back- so we're constantly going over our data limit. oh, well, now - all of our new plans come with no data overages. wow, no more overages? so that means... go on...say it... we'll finally be in control... and we're back... introducing new at&t plans with no data overage charges. welcome back. time for cnbc news update. now back to sue herera. >> jeh johnson says hard work and more hires have helped elivate wait times in security lines at the nation's airport. johnson says about 98 will% of flyers waited po minutes or less for screening over summer months. three people killed after two
planes complieded in west virginia. that collision believed to have occurred as both planes were attempting to land. the faa is working to determine the actual cause. a colorado mine that spilled 3 million gallons of contaminated watt here in riffs in three western states has been designated as a superfund site. that clears wait for multimillion dollar federal clean-up. december ilg nation is after months of negotiationes with colorado residents. and a kansas city man accused of robbing a bank says he committed the crime because he would rather be imprisoned than live with his wife. 70-year-old lawrence ripple was waiting for officers in the lobby of the bank with the cash that he had taken. he had reportedly argued with his wife a bit earlier in the day. >> trying not to laugh. >> separate bedrooms. divorce. separation. >> to win sympathy from the police? didn't seem to work. >> he didn't leave with the
cash. he took the cash, is the sat down in the lobby and said, please call the cops. you can't make it up, kel. you can't make it up. >> i need more information. see you later. up next, an exclusive interview with valeant chairman and ceo, joseph papa. find out whether or not he is planning to sell some company assets, including core ones like like baush boush and laum.
questions surrounding valeant. let's get out to wells fargo health care conference where we are joined by our own meg terell along with joseph papa in a cnbc exclusive. meg? >> kelly, thank you so much. joe, thanks for joining us. >> my pleasure. thanks for being here. >> so four months into the job and four months into the turn around, you reshuffled management. what is next?
asset sales? ? what can we expect next for valeant? >> i think first we are focussing on how can we improve patients' lives, how can we improve people's lives. that's first and foremost. but there are still additional people things we are working on. in terms of rerecruiting the existing team to the business. that's one of the thing i think is critically important. especially in my sales organization. they are key for us for the future. >> is that concern you're losing folks and maybe had to do things over the top to retain them? >> no. i would say that what we tried hard to do is really recognize the value that they bring to the organization. importantly, whenever there is change in any leadership, there is always some uncertainty, and we've been working hard it make sure there is outreach and reinforcing the mission of improving people's lives. i think that's a very, a noble cause. one that they are excited about and i'm very excited about talking to them about it.
>> one thing you've been focussing on is potential for asset sales and you have the potential to sell up to $2 billion in revenue in products and you have focused on noncore aspects. does that mean bausch & lomb is off the market for selling. >> i will never say never but there are core assets i believe are very important. dermatology franchise. eye care franchise, bausch & lomb. and as well as what we do in the consumer phasing side. those are critical important us to. would we have to look at something if someone came forward? of course we would. we are a public company with over $40 million in debt. we have to look at it. but there are noncore asset sales that could yield up to proceeds of $8 will billion that that would be where we will focus first in terms of asset sales. >> you said that evaluation is
based in part on unsolicited interest from the outside. can we expect announcements in the near future? >> i think is how we define future. i would say that we believe certainly my history of being in the pharmaceutical business for over 30 years, it takes some time. usually we characterize it to reach any type of a deal on an asset sales taking approximately six months. towards the end of the year we could have some announcement. i will tell you we already announced three. all, it smaller, we announced the orphan disease product and outlicensing of the european rights of a new drug for psoriasis. so we have done three things already but there is more to be done here. >> i want to tradition that your colleague made this week, a pledge saying there is a social contract the drug industry has to not raise prices egregiously.
is this a pledge you think the rest of the ipd us try should take? is this something you would take? >> i want it look more into what brent said. but on balance he is saying the right thing. pharmaceutical companies are doing first and foremost something to do something through health care products. making sure there is access and that pricing is reasonable reflecting the needs of both the company as well as society. on balance, i think it is very similar to what i did when i joined and established a pacing act. so look at patient access and pricing. albeit i came from a different background but he seems to be correct pch. i want it look into it more though. >> why can't they just drop the price of the epipen? >> i'm not going to make any comments specifically on mylan.
as a general comment, one the of the issues is you have to ensure your patients can have access to products. at the same time to realize an appropriate price for products. that access question is probably one of the things that they are thinking about in terms of looking at the opportunities for access and indeed the pricing point. i don't want to make any specific comments on what my own situation is all about. >> talking about valeant, critics of the former ceo said look this company is basically growing by buying companies and by raising drug prices. if those two things aren't going to be a key part of the strategy now, how is valeant going to grow? >> so one of the things we're trying to do is create the new valeant. the tral jent in my mind is all about how do we make a different in people's lives through our health care product. that's one of the things we are focussing on. by that definition it is focussing on existing products
we have today. for example in dermatology, we have one of the best portfolios coming today. we have the best treatment for psoriasis. i still believe that that's the way form suit cal companies based on the 30 plus years i've had in the business will grow and be successful for the future. >> what is it like working with bill ackman? >> well, i have 12 -- there's 12 board members including myself. 11 other board members. bill has been a wonderful source of information to help us as we think about the future, the business at val ynt. he has been incredibly helpful to me as i join the company. i would say i've got other board members as well who bring different expertise. new board members that as we krietated the new valeant, 10 new board members within the last 12 months joining the company. that's clearly a new board. but some of them bringing great experience, like bill, in the
investor world. others bring experience in the it pharmaceutical world. we have a most of different people designed to bring us what we think is important in helping make a different in patients' lives. >> you still have to deal with a lot of things left over from the old vel valeant news. what are do youing to prepare from the toe ten spotential fal that? >> i have hired a new general council, christina akerman. 15 years years and experience and she has been a great help to me as i started to work on those questions and keep me very well inform end updated on the questions. we have not set aside any specifics. one of the things you have to do from an accounting process is have an eskimo and probable accounting. at this point we don't. we will work closely with all of the investigations and resolve
themes a them expeditiously. >> is there a concern that legal payments could be an issue? >> my sense of this is that we have potential legal payments for the future. i think it'll take time to resolve those. in the meantime we will continue to grow our earnings for the company. and look at assets sales. we think we can work our way through there in a very practical way to get through this. but you know, until we get to that point i won't have the answer but we are certainly working hard. >> thank you so much for joining us. appreciate it. >> pleasure to be here. >> kelley, back to you. >> thank you both so much. aler again ceo brett saunders will be joining us. talking about limiting price increases on its drugs. he will start about that strategy starting at 4: 15 p.m. eastern. don't miss it. straight ahead, howard
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minutes, we hope. it is a moot point because this decision doesn't matter. the government said they will go ahead with this appeal no matter what. why? because they believe they will win because apple didn't get any special treatment. now i spoke to the prime minister earlier today and i said to him, if they didn't get any special treatment did you treat the likes of microsoft the same and therefore are they at risk now of getting a similar kind of tax penalty from the commission at some point in the future? listen in. >> we have three other cases on appeal to the european court to which they are a party with the amount mentioned here is a staggering amount in comparison to the other countries. so from that perspective, this might take a number of years to actually conclude. but it send out the wrong signal from the commission. particularly when ireland is one of the foremost players on to deal with this problem of a broken corporate tax system
international internationally. we have changed our legislation here. we've gotten rid of the stateless concept. gotten rid of the so-called double irish concept. trs. >> so he didn't actually say whether or not other companies are at risk but did say it is a legacy issue. so getting political cover here from parliament behind me a vote to say they agree with this appeal is a good thing for the government here. kelly, back to you. we wait and see. >> yeah, a gesture if you will, of unity on this issue. julia, thank you. >> absolutely. >> julia in dublin. people may be clamoring for the latest iphone. we will break down the latest investor data when we come back.
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welcome back. starbucks ceo just sat down with "mad money's" jim criamer. here's what he had to say about the company's recent quarter. >> we had a little bit of a miss in q 3. i wouldn't overreact to that. i think certain people have. i say to you something that i love the state motto of missouri which is the show me state. it's time for us to show up and we'll see what happens in november. >> it is great state motto, by the way. you can catch the rest of jim's interview tonight on "mad money" starting at 6:00 p.m. eastern. it's funny how to hear a ceo we'll see what happens in november. indicating kind of a transparent way you can't predict it. >> don't worry, in november we'll prove it. you know, he has to play both sides. obviously long term story that's been phenomenal on a three month
basis, you have to actually show momentum. >> i like howard schultz. he's an incredible manager. it's very hard to bet against him here. but at the same time, if you don't own the stock today, i don't know that it would be an entry point you'd be rushing boo. >> i love to keep thinking about the fact that starbucks traded at $5 a share during the financial crisis. we take for granted stock prices -- >> get a drink at starbucks for $5. let alone you could have gotten share of stock. >> in the mid 90s, it was who would pay $2 for a cup of coffee? >> starbucks trading at $56. >> find out while investors are fleeing apple stock. so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go!
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welcome back. apple debuting a brand-new iphone today. gadget enthusiasts may be excited. investors much less so. >> thank you, new data exclusive to cnbc shows among the largest companies institutional funds sold more apple shares than they did of any other stock. the data comes from the investment which tracks over 65,000 institutional portfolios
worldwide. you can break it down by different types of funds. no matter what group you looked at apple was one of the most sold stocks, usually number one on the list. and more balanced core equity funds, all of them dumped apple shares in the second quarter. that's a big contrast from what td amaur trade said investors were buying in august. they felt in the past few months apple's innovation hasn't been what it once was. that's why the products will be a big test for the stock, maybe more so than ever. despite the sales, apple is still the third most widely held stock. it did fall further behind compared to facebook and amazon, which did see an increase in ownership in the second quarter. >> they are also trading at record highs. this brings up one of my favorite discussion points,
which is the smart money and dumb money? >> who did the buying, exactly. it's in the sector that you can't track. retail, private investment accounts, i think the high turnover, institutional managers that might have been sellers of apple, look, estimates are being revised down t seems like dead money on a fundamental basis for a few quarters and people got tired of waiting. >> if you're going to rebalance, this is a stock that stays in a fairly reasonable range. this is isn't a facebook or amazon it's all over the place. you can get back into it. >> that's why it's interesting it's a top 20 stock for the growth funds and the value funds. everyone's got an excuse to see why apple -- >> he brings up the questions from earlier which is it, is it growth? >> it's value if you look at it financially. if you look at the dynamics of how much your paying for dollar of earnings and cash flow and
the rest of it. the problem is i don't think the market knows what to do with an enormous value stock that's still hit driven. it has the elements of riding a growth type company cycle, but yet financially people aren't confident it's going to go on forever and that's why it trades like a value stock. >> you're not a gloerowth stock >> even in their heyday, other interesting sign being bur hathaway. >> if warren buffet likes it. >> what about the tractor supply? that's the question here after hours as we keep an eye on it. i have a feeling it's not a big institutional ownership stock.
>> maybe not. this is one of the best midcap stocks of the last decade. it had this great expansion story. it was growing throughout different parts of the country that didn't have one. it's a mix between rural and urban and had a home improvement thing. another revision down. the farm sector is not doing great and people aren't buying stuff and they say stuff. >> tractor supply being a personal favorite. the issues are there. we were talking last week about what was happening and the dairy industry where they had to buy a bunch of stock. >> they haven't been able to sell enough. >> tractor supply, also, if -- it was interesting to see caterpillar was a stock overnight the analysts were starting to dip the toes in the water and like here. but the argument for farm equipment doesn't seem like it has much different from the airpor argument for -- >> is it catterpillar or farm. >> it's hobbyist farmers, they sell a lot of pet food there. it's not just about hard core working farms. i still think it's a retail concept that has enjoyed a growth trajectory.
>> sicircling back, exxon mobils the third biggest stock. amazon, facebook -- apple facebook and microsoft and then exxon. thank you so much for joining us on the closing bell this hour. that does it for us. fast money begins right now. fast money starts right now. live from the nasdaq market overlooking new york city's time square. tonight on fast, one of the most accurate market forecasters says stocks are in a quote dead zone and it's about to get ugly e. he'll be here to explain. the underarmour ceo says investors are underestimating the power of steph curry. are they worth a second look? mr. wonderful made a big change to his portfolio, he said he may have found a way to beat the s&p 500. he's here to tell us what