tv Fast Money Halftime Report CNBC September 26, 2017 12:00pm-1:00pm EDT
money. >> we're out here of course ahead of the iconic tour our second time in l.a we have a great lineup of speakers can't wait to bring it to you live all day tomorrow. >> looking forward to the coverage so what are we watching? a few sorts stories. >> trying to hold steady is the main thing >> all right "halftime report" starts now welcome to the "halftime report." our top trade this hour, the roll over in the fang stocks and what whap happens if they can't recover. and also an alleged bribery scandal. we will take you live to lower manhattan as soon as the u.s. attorney appears to formally
announce the charges in florida case with us for the hour today, joe terranova, stephanie link, josh brown and jon najarian and also gentleman gentleman theirian the nasdaq's skid would be a troubling sign it is the worst stretch in some ten months josh, i'm wondering what you make of what is happening with the fangs. >> thank god i'm back. no one is talk lick wquidations today. these stocks are allowed to go down 10% it is not the end of the world and in fact i would actually say look at how well the market holds up in the face of the most popular hottest stocks in the market doing poorly. this is a positive not a negative so let's think about it. apple down 9.6%. the russell doesn't move
the russell is up 6% this month. this is a good sign. you have an oil rebound, you have the itb, builders making new all-time highs as i'm talking. you have the transports within pennies of a new all-time high this is a positive, not a negative let these stocks correct they are up very, very big and at the end of the day, we could point to, oh, such and such stock, a canary in the coal mine no, it's not 50 day moving average breakdowns a are noise. >> i'll go to you. you won't outrun the liquidation thing anytime soon, but that is okay we're just playing around. >> i love josh, so i won't say send him back to wherever he was. i do wish however he would shave when he comes back >> it's the fall >> josh is talking about things in the marketplace that i think we've been talking over the last
couple days and we talked about this yesterday, pete and i were mentioning it, jon was mentioning it, i think you are seeing they rotation once again. and i don't think there is anything here for the longer term investor to say now it's time to break up the diversification philosophy and implement strategies and getting out of things. i think this is about energy lifting, i think this is about some of the value names lifting once again and the only concern as i said yesterday is if financials themselves give back a lot of the gains that they had in the last couple weeks. i think that would be important. but as far as technology, you're getting a natural rotation, i agree at some point it bottoms and you buy them once again. >> deutsche down grades jpmorgan and pnc on a flatter yield curve. i don't know what you think about the fangs sort of rolling over, but this month alone, yes,
there has been a healthy rotation as josh says about does it matter for the long term health if fang oig is dislocated for a while? >> i don't think it's a big problem if they correct in a material way it's a problem because 23% of the s&p in weighting. so you have to have this sector hold in there. so we can kind of hold in like it's been doing when you have some winners and some losers, i mean, cisco is acting pretty well oracle is bouncing a little back so some of the havevalue names doing better but i think earnings will be very good. and so if the technology stocks can hang in there until we get earnings, then you might be able to see kind of a rally in this group fp nechl group. in the meantime, it's all about rotation the bottom tier names in the s&p since september are up a 5%. the top tier names are down 1%
so this is reversion trade >> but doesn't that only last and take you so far? >> not if earnings are good for that group, too. stocks will continue to do well. >> you can still have this trend where the better performing stocks are the ones that roll over and the lower performing ones are the ones where the money goes and that carry the market higher through earnings season >> i think so. if earnings are good, people will find a way to buy these stocks >> do you know what else is working? patience patience is working right now. because you wait patiently for apple to make that 9.6% correction that josh is talking about. you and i pounded the table saying they bring out the iphone 8, but the next one is not coming for a month everything sets up for this thing to correct several of the big analysts on wall street called it, i'm not saying i did, but i followed them. sold a lot of calls in the money, at the money. now it corrects 9.6%. that took basically 10 days. facebook made a 6% correction in
a day. i mean from friday to yesterday, that was a 6% correction >> you know what is so great, though this whole narrative where, oh, it's just ets, they are pushing up everything, it's creating a bubble what will you tell me now becauseapple and microsoft, tw two biggest in the country if not the world, are both in quas free wall and the rest of the market is going up it's not all one trade f factually, you ever people who made a lot of money in large cap technology names and now they are finding areas that haven't done as well, they are reelecting r relocating assets. energy is just the latest example of moneany, health care another. so you really don't have the etf phenomenon that everyone is
wringing their hands about you have a market of stocks. >> but those stocks are very crowded. faang are very crowded there was point in time in in year where faang plus microsoft and police apple plus a few tech names accounted for 60% of the returns in the zcs&p. so they got overowned. i'm not saying it wasn't justified. >> but that is not an anomaly. if you study the bull markets throughout history, there are always the ten best that have the canned for the lion's share of the gains there was a piece yesterday where since 1926, all of the gains came from t34 respect abot 4% of the best performing. it happens in every era.about 4% of the best performing. it happens in every era. >> i'm just saying if they got crowded, so you can see why people are looking for some value ideas or even within growth finding some value.
>> so pete, up in minneapolis for us, more healthy rally without faang or more watersoore >> more healthy. i love the rotation idea we've been talk about it for a very long period of time but i look at this as the same rally that we have seen. yes, we're losing some of the fang names, yes apple has pulled back it's actually why it was an opportunity. looking for that 10% pull back the only one of the fang names that i'm truly interested in right now would be facebook. and if that pulls back toward 156, with the growth model that they have got, i would absolutely step in there just like yesterday i stepped in and bought some apple right around 150. i think the broadness of this market is something that getting completely clouded over by the fang names take a look at red hat brand new 52 week highs. this is a name that came out last night, earnings were spectacular. and it's almost forgotten
because everybody is looking at fang names the reality is this market has been far broader i understand when you look at market cap and a number of stocks and i think josh used ten as the number that actually is really moving the markets, but underneath that, there is a great market that is also trading and those names are not often talked about on the network. i'm looking at baba and facebook i absolutely would look at and say you know what, i'll be buying those >> well, despite the recent pain in tech leadership, our next guest believes the s&p could see another 12% rally by year end. the cheefief investment strategt bmo. so 2800 every on the next few months nap is a sizable leap >> that is our best case base indicacase is 2600 best case is buying exhaustion so listening to all of this banter, it's awesome, josh is on fire today helping all of us active
investors with the sildlyness of passive, pass suffer, passive, whatever that's what i say about that >> amgtoversensitive? >> i am, because we get paid to making money for our clients i think what end up happening is good old fashioned brchl answpe and portfolios will go up again and people will buy the product that is working. so value works when growth in the overall market begins to increase when growth outperforms, everybody that wants to talk about fang, whatever, we're neutral tech for the first time in ten years in our strategy because i don't see -- >> as of of november last year >> you've been neutral in tech since has november >> time to get him out of here >> listen, no, that is still 22% of your portfolio, right
and the names that we own are what we like to call consumer staples. tech, apple, google, microsoft so i don't think that should you have more than 22% or 23% if ooer you're a d you're a diversified portfolio manager, period. but the bottom line is value will start working because an increasing amount of companies are giving you above market growth growth is scarce, so we were chasing the fang stocks >> what is the statistic backing this comment that etf fees are riding and active fees are coming down? you're right about the active fees coming down, but that is because the money is leaving even faster. on the etf side, pretty much 80 or 90 krencents going in are gog into products with less than 20 basis points
>> we've seen fees in the fancy stuff, triple leverage type. i think those are the ones where you are not seeing as much volume and you will see big volumes are in the diamonds, qs. >> van guard >> but what ultimately could be the problem, people are buying instruments i think they don't understand i think we have to return too to more than transparent investing. it got us in trouble when we didn't understand. >> what if the dollar actually starts to creep back higher? >> well, we think the dollar will creep higher because the economy is improving and we need to rebuild stuff in our country again. so that is why in the material space we like the papers and some of the steel and aluminums. and plus remember when you are running a portfolio, materials are 3% of the u.s. market. so you can have a pretty decent tracking and be a little above 3% with respect to industrials, industrials have benefitted in the fourth quarter last year because of the domestic revival,
but this year we've seen synchronized growth. so industrials from a fundamental per sbek tispective great. when you look at return on equity and assets, they are just now beginning to recover >> so i'm not ready to move away from the tech thing yet. >> i know you're not >> well, because for obvious reasons. 2600 base case, 2800 best case and that will work without tech in your estimation >> if you look at portfolio construction and we are now advocating a 22%, 23% position in tech. think about that so now we're talking about 18 to 20% of your portfolio should be financials 12% should be industrials. 4% should be materials okay now all of a sudden you're bumping up to rates where you have to be kind of careful on the consumer side which we're very neutral consumer discretionary aside from amazon is a disaster. so we're talking about fully load portfolio where you could
have strong positions in big companies like the amazons, like the comcasts, like the microsofts, when you more importantly, i still think financials are the place to be they are massively underexposed because they are so negative we're still living in the 2008 world. >> so u.s. banks are selling at 24% discount to the multiple of the overall market european banks are only at a 5% discounts. why are u.s. banks more hated than european and if they will grow earnings 12%, 13%, which is consensus, have we completely lost our minds where is that gap coming from? >> we've lost our minds because we just so in love with the emerging are arkets. we want to try to be the smart giants we have awesome companies here in the united states and canada
in the banks especially. i believe the most underserved client tell is wealth management mom and pop america are not engaged in this rally.tell is w. mom and pop america are not engaged in this rally. they are still in bonds, they are still cared. we need to put them in dividend growth, in value and high quality growth that will get them back in to believing in the whole function of the economy and the stock market again >> brian, appreciate your time >> thanks for having me. >> bm oochlt chieo chief investt strategy breaking news on the college basketball bribe charges >> that's right, a jaw droerp from the sports world. court documents just unsealed actually talking about financial advisers, agents, coach, teams all involved a lot of bribery to get kids to pick certain schools and get them after they leave college to pick a certainly agent or financial adviser. so the u.s. attorney's office will have a news conference
coming up here anytime this hour and some of the schools implicated are the university of louisville, a big basketball program. university of miami. there are coaches implicated from usc, oklahoma state among others so this is a big thing here. and as you can see, they are getting started there. >> let's go to manhattan right now. >> today we announced charges of fraud and corruption in the world of college basketball. the picture painted by the charges brought today is not a pretty one coaches at some of the nation's top programs soliciting and accepting cash bribes. managers and financial advisers circling blue chip prospects like coyotes and employees of one of the world's largest sports wear companies secretly funneling cash to the families of high school recruits. in all, we have charged ten people in three separate
complaints foul college basketball coaches, three people associated with professional managers and advisers, and three with ties to the page sports wear company including its global marketing director for basketball. these men allegedly participated in two different but related schemes. in the first, college coaches took cash bribes from managers and advisers in exchange for directing players and their families to those bribers. in the second scheme, managers, advisers and those affiliated with the sports wear company worked together to funnel money to families of some of the country's top high school recruits upwards of $100,000 for the player's commitment to play for the schools sponsored by that company let me start with some details
about the first scheme we have charged four college basketball coaches chuck person, what monla monthm evans, anthony bland, assistant coaches at major decision would be schools with top tier basketball programs. they have all been in and around the game of basketball for a long time. and one, chuck person, played and coached in the nba all of them had the trust of the young players they coached and recruited. young men who looked up to them and believed that the coaches had their best interests at heart. chuck person in describing his influence over one of his players put this way quote, he listens to one person, that is me chuck person also explained that his players trusted him, looked
up to him because as he reminded them, he had coached kobe bryant and had worked for philcksojack. but as alleged, these koecoache abused that trust placed in them and they violated the duties that they owed to their schools. in exchange for bribes ranging from $13,000 to almost $100,000 each, these coaches allegedly pushed particular managers and advisers on to players and their families and certain evof the coaches around the for separate pavements to be made to the families, as well. anthony bland described what he could do for the managers and advisers this way. quote, i can definitely mold the players and put them in the plan of you guys. the professionals whose lap the corrupt coaches put their players in were the defendants christian dawkins, know these
sued, ray shon rochelle. dawkins was an athlete recruit forea sports agency who was trying to start his own sports management business. sued was an investment adviser and michelle owned a company that sold suits and other high end clothing to professional athletes for these men, bribing coaches was a business investment. they knew the corrupt coaches in return would pressure the players to use their services. and they also knew if and when the young players turned pro, that would mean big bucks for them in professional fees and profits. as dawkins put it during a meeting that was recorded by law enforcement, quote, if we take care of everybody, we control everything, you can make millions off of one kid. while pushing these professionals, the bribed skoechs showed little regard for
the player's well-being. they ignored red flags seeing only the green of the cash bribes flowing their way for example, in steering players to a financial adviser who it turned out was actually cooperating with the government, most of the coaches never asked the adviser a single question about his qualifications, his track record in handling the money or really anything else about his business a simple google search by the coaches of the advisers name would have revealed that the sec had brought securities fraud charges against him just last year, including for misusing his professional athlete clients' money. similarly, with christian dawkins, none of the coaches warned the players or their families that dawkins had lost his job at a sports management company after an nba players association investigation revealed that he had misused his client's credit card to pay tens
of thousands in unauthorized purchases. but it wasn't just that the bribe taking coaches ignored red flags and didn't seem to care about the qualifications of the advisers as alleged, the coaches affair affirmatively lied to the players and their families in talking to the families, they build up these professionals, some of whom they barely knew, with bold faced lies chuck person claimed that one of them was his own personal adviser and a financial adviser to hall of fame baseball player charles barkley. well, that wasn't true that adviser, the same one who was cooperating with the government, had never even met charles barkley and had never handled chuck person's money other than paying him cash bribes chuck person also assured a player's mother that he himself had not received a penny for promoting that adviser to her. that was a lie, too.
that conversation took place five days after person had taken an envelope filled with $15,000 in cash from that very adviser during a secret meeting in a manhattan hotel room by allegedly accepting bribes in this way, these four coaches not only breached their obligations to their schools, violated ncaa rules, and betrayed the trust of their player, they also committed serious federal crimes as did the managers and advisers who paid them. the second scheme, although slightly different, came from the same playbook of fraud and corruption in this scheme, you toddawkins again worked with three people with ties to a major global sports wear company to send wrib money to the families of some of the top high school recruits the three men are jamgs ges gata
the sports wear company, merrill code, and jonathan brad augustine. the complaint alleges that these defendants conspired to secretly funnel six figure payments to the families of three high school players in exchange, the players would agree to commit to playing basketball at two colleges that was sponsored by that company and eventually retain the advisory services of dawkins and sued and to being sponsored by that sports wear company recognizing the illicit nature of these payments, gatto and code allegedly took steps to hide them. instead of paying the families directly, they made the payments through dawkins' company and an amateur basketball team. they also conspired to disguise the payment in the code's books
by using fake invoices and false entries. as merrill code put it, it's on the books, but it's not on the books for what it is actually for. close quote. as alleged, the charged defendants claim that the payments to the players and their families were made in coordination with the coaches at the two colleges sponsored by that company now, if you read the detailed allegations in the three complaints totalling over 100 pages, you will find yourselves in the dark underbelly of college basketball we were able to get in to that world through a cooperating witness and two undercover agents posing as corrupt advisers and financial backers and we obtained numerous court authorized wiretaps and made hundreds of consensual
recordings we were able to hear in their own words their skeems and i will quota couple. awe as dawkins put it, quote, if you will fund those kind of guys, referring to the coaches at the most elite programs, dawkins said, quote, i mean we'd be running college basketball, close quote. in another recorded conversation with the fbi undercover, dawkins explained what they were doing, funneling mean to players' families, could, quote, not be completely accounted for on paper because some of it is whatever you want to call it illegal. close quote. he was right that is what we call it, illegal. so let me walk you through some of these visuals that you have here these two charts or diagrams show the two different schemes in a paper format.
so this one shows the coaches, this is the alleged coaches bribery scheme these are the managers and advisers who paid the bribes who in turn pressured players to go to use these managers once they turned pro and some of the college coaches alleged to have funneled some of the bribes who players and their families this depicts the alleged sports wear company fraud scheme that has the company affiliates and the managers and advisers paying cash to families, players and their families, some of them directed by the coaches and in exchange the players and families would commit to a division one school and receive athletic scholarships in return. and these were schools sponsored by that company. this investigation has required
the dedication, hard work and skill of many, many people and i want to recognize some of them first, i want to thank our great partners at the fbi represented here today by assistant director in charge bill sweeney, special agent in charge mike mcgarrity and assistant in charge. we thank them who worked tirelessly on this investigation about that we also thank the agents around the country who menned execute t e helped execute the arrests last night and this morning we do so many -- >> that is the acting u.s. attorney outlining charges against ten people allegedly involved in a bribery and fraud scandal. we want to bring soin someone wo knows more than anyone, sunny have i ck vi
vicaro joining us by phone welcome. great to have you on >> good to be on i woke up and the world has changed. >> for on sursure i'm wondering what your reaction is as you hear these charges laid out today >> in totally, shocked but not surprised in the sense that the financial end in college sports is -- you read all the statements on the indictments. it's a for real world and you're talking about the man referred to, the athletes themselves, are stilt in a purgatory world when you're talking about money and some people who don't have money, and then you listen to a lot of things maybe you shouldn't listen to. i'm surprised at the immensity of this thing. it's not one school or one rogue
somebody it was an organized, you know -- organized i don't understand my belief i mean, i'm totally shocked. >> i read the comments of one well-known college basketball analyst who said, it's a nuclear bomb dropped on college basketball on the eve of the season is that how we should be taking in today, that serious of a bombshell? >> i think the world nuclear bomb in today's world, it's a perilous world to begin with but in the sense of what college sports are pretending to be and the reality of the sports and money in college athletics, the reason it's such a shock i believe, and i realized something like this could happen, i sort of predicted a
long time ago that it would happen more so than not, is the pure insanity of the nca acha. i mean they are also talking about a multibillion dollar interest where everyone including these coaches that you're talking about and universities, all these great universities that hang their flags on the wall and winning champion sips, recruiting battles, it's all done at the expense, i use that ironically, at the expense of the athletes are basically are doing this day to day and hoping to get by to tomorrow and what we're talking about in major college sports and the athletes are the unserved and underappreciated athlete because they are only welcome because they play their sports and they recruit money for the university so this is huge. and it's not a good -- nothing is good about anything this bad
because it is deceit >> the reason i said you were the perfect person to have on today is because in many respects, you sort of created the relationships between athletic apparel companies, shoe company, and college sports and college basketball in particular the jordan deal that you helped do while at nike and then the kobe deal at adidas while he was still in high school.genie is so far out of the bottle. can you ever put it back in? >> you should have started when they started paying the college coaches. but that business evolved into the business of today 2017, you know, 50, 60 years later and you're right, so i've
watched this erosion, if that whis what it is, but what is failed to mention and using michael or those guys is a wufonderful thig but they were professionals. here they are talking about universities, you are talking about the very people that are supposed to be protecting them, they don't have a system enough to protect them that well. this isn't the first time this has happened with agents or with shoe companies, with outside influences, money managers and what we've seen here is what we've seen on saturdays when the games are played i don't want to get away from your question. i've watched all of this, but do you know today those same universities that we're talking about are now getting $250 million for 10 and 15 year contracts from the shoe companies, all of them, to sponsor their athletic teams, not their literature and their arts and sciences.
so this is the other part of this investigation today that we should be talking about, the financial connection between the universities and the industry, the shooud industry if that's what it is and when you're talking about agents and financial ebb investigati investors, you're talking about individuals who somehow -- by whatever means they were put together with these kids, everybody met under the auspices of the coach or that university. these kids were being recruited to go to those universities and playing for these coaches. so it's not a good picture it's a hard picture. but the only thing that wasn't in any of the stories today was when does the ncaa step their nose in and say what can we really do to these kids other
than pretends all get good educations i apologize for going where maybe i shouldn't glp n >> not at all. >> it's a bad day. but it's a pretends day, young fellow >> understood. sir, thank you so much for being with us. steve liesman now has breaking news for us. janet yellen speaking saying persistently low inflation could require if it stays low looser monetary policy. i want to read you a direct quote from her speech today where she says if these sorts of favorable supply type shocks continue, our 2% inflation may require a more accommodative stance than otherwise might be appropriate. goes on to say that the policy could be easier than now an at this time tanticipated. but supports gradual adjustments. she's not necessarily saying
that they will change policy, but the fed should be wary of moving too gradually sources of low inflation she expects to fade over time. there is a risk she says easing monetary policy could lead to increased leverage and prudent to stay on hold irn till inflation is at 2%. that is one part of the speech the rest is the speculative speech about the fed may be quote/unquote misjudging the strength of the labor market as well as potentially misjudging the forces acting on inflatioin. she says current sustained is undesirable, 2% goal miss could undermine the fed's credibility over time. there is a risk she says inflation expectations are not well anchored and some signs expectations quote/unquote may have slipped possible also the economy could sustain a hire employment and output levels. so what i think the if i had
compafe chair is shaying is the policy as we understand it, the gradual increase in rates and tightening of policy is on track, but she's open to the possibility given more data, more he research that something is amiss here with the fed's understanding of the inflation dynamic. and if the fed can be persuade that had they have the inflation story wrong, ultimately the fed chair would change the policy track as it is understood now by the market >> all right steve, thanks so much. stocks for the most part holding steady yield on the 10 year about 223 as well. steve liesman with that breaking news back to the story we were covering, in developing scandal involving major college basketball let's bring in another voice, the legendary new york sports radio host mike francesa of wfan mike, what a thrill to have you on the program mike, are you there?
we'll try and reconnect with mike francesa. but the news conference still going on in lower manhattan. we have a reporter in the room we'll bring more on that when we have it. again, laying out charges against ten people allegedly involved in a bribery and fraud scandal in major college basketball several coaches somewhere behav charged tlooalong with three pes related to adidas. more after quick break where to get in... where to get out. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. hi, i'm the internet! you knoarmless bowling.lt? ahhhhhhhh! you know what's easy? building your website with godaddy.
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we have re-established our connection with mike francesa. good to have you on. >> my pleasure i watch you guys every day before i go on air so it's a thrill to be on. do you a great job i'm a big follower of your program. you're the best show by far on cnbc >> you're very kind to say that. >> i mean it and josh is my favorite guy. he has good opinion. >> my man. >> i'm telling you, he has good opinion. >> thank you, mike >> you've made this guy's life >> listen, having sonyn on was
like having thomas skrefr son. he is the guy who brought this to every college in america.n ya like having thomas skrefr son. he is the guy who brought this to every college in america.y y was like having thomas skrefr son. he is the guy who brought this to every college in america.lik. he is the guy who brought this to every college in america. >> has it gotten out of control? >> it's so far out of control. listen, i'm the biggest phony in the world ybecause i still love the games, but the system is so far out of control in both college football and college basketball the problem -- let me tell you this because you will like this, talking to a couple coaches who were not involved, but who tell me their phones were tapped they told me, waiting to come on, they told me this started when a guy got pinched by the feds and to on lesson his load, he said i might have something you like. will you lessen my load. and he dropped them in their lap. >> you have a on two pronged issue. one is with the advisory folks trying to get clients funneled
in their direction and the other one, which mr. vaccaro plays into and the one you referenced is the role that these folks at adidas allegedly played in trying to get these athletes to go to either adidas sponsored schools and then later if they made to the pros to endorse adidas products. >> it's a cradle to grave thing. it's a system now completely run amok and the sneaker companies are a big part of it and the nba money which is enormous now is a big part of it they want to control the player, they see the player at 12 years old, he's a good kid now the high school coach has no control as he tries to bring them to a high school because his aau team or travel team which is a funded team now mass the k has the kid lokcked up. so the kid is money because he's talents. all of a sudden he gets pushed up the chain
thousand guys wi guys will recruits him to college, sneaker company wants control, agent wants control and the sneaker company wants to on control him when he becomes a rowe so they try to take the kid at 12 if he's lebron james and control him right to the minute. and now the one and done thing which has to be destroyed, has to be eradicated and that is an nba thing, not a college thing. college does not control that. the nba players association controls that. they decide when people enter their league there should be no one and done, they should either come in as high school guys right away or not allowed to come on in until they do three years. s one year does not work it creates a phony system. and listen, they have so much money now these colleges they get it from cable networks and so much different places that all it is about is generating more cash, more cash, and the presidents are the biggest phone anies because they want to be harvard monday to friday and alabama on saturday it doesn't work. the system is completely -- great entertainment, but
completely out of control. >> is there any way at all to fix it or is the genie so far out of the bottle there is not even a chance of getting it back in >> there is not a way in the world without taking it back to just shear players who would never even appeal to an nba team, there is no way because once you make it about wins and losses, getting into the state tournament and winning gymame, then they compete for the top players. as soon as the competition start for the talents, then the money starts so there is no way in the world. the genie is so far out of the bottle the question is do colleges ever come to grips with this? i don't think they do. and remember, the nba and nfl, they have a fwlree minor league system, their players come that are already promoted
so they don't want to create their own minor league system. so it is a great system for the nba, a great system for the nfl. and it's great for the guys who take a check only good for the kids if they are reallital leby talentetalen they get kicked to the curb. it's good for the coaches because if they are successful, they make a lot of money too and they are fine. but the bottom line, it will only take care of the really talented kids and the system as we know didn't surprise anybody. the only surprise is that these guys got caught. >> we'll switch topics real quick. i'd love your thoughts on whether you think the nfl has a business problem or what your thoughts are in general about what has been going on the last several days between the president and the league >> they are trying to find a middle ground where they can appeal to everybody.
all they want is quiet they don't want sponsors upset, they don't want to have fans upset, they don't want to have players upset. and that's what they are trying to find is a middle ground my point is this about the nm, why national anthem, why is this the only place where we can do this now? maybe the league and players have to find a way to air what they are upset about or what they want to try to fix, and i haven't seen any player actually do anything in a city that shows me that they in any way hoped the problem, which was supposed to be the relationship between the police in the inner cities and the kids who they come up against and hows communities deal with the police that is what started this with kaepernick i don't see anybody even addressing it. now it is about first amendment rights and am i allowed to protest or i'm not and now you have the president in the middle of it and he is good at stirring things up, but i don't think they have any
answers. i don't think there are any answers. i would just like to see them move it away from the national anthem so they can do some good and maybe they should in each city fooel figure out a way with the players and teams to put some money in and get with the police and see if they can get something done take it away from the national anthem >> if you are worried if you'uye roger goodell about the state of your business? >> yes, for a variety of reasons, but that is because they want to grow 30% a year and that can't continue. the league is still incredibly healthy, but they still want the churn to be 20%, 30% a year. they have gotten incredibly greedy about how successful they are. so they don't want to stop the fountain of money that is coming out year after rear. they wa rear nep want t billion in revenue that's all they care about is churning more money. >> other than coming with us for
a day and talk stocks after september 15th, what are you doing? >> i'm not allowed to say. but if you tell me when, i'll come and do a show but guys. i want a seat next to josh brown. >> we'll see you on the 16th if that is the case >> i'm telling you, i'll be there. i love you guys. you do a great job i am a religious are follower of your program >> what stocks are you buying? >> well, i'm a big tech guy, so i'm big invidia, big amazon. but i did really well with alb i still own it he made me a lot of money with that stock >> that is awesome thanks, mike >> appreciate your time. again i hope we'll he so you he see you here shares of axovant is plunging as they fail a late stage trial as we make a hard right turn.
meg tirrell is here with that company's ceo which is a very difficult day for patients and investors. >> that's right. thank you so much. and david, thanks for being here it is clearly a disappointing day, the disappointing day for axovant, about $2 billion in market value wiped out just today on these results. where does axovant go from here. >> we have a pipeline of number of drugs we have and tempering did not meet its primary in alzheimer's disease. we're developing that same drug for a different dementia, a very prevalent one, famously the dementia that robin williams was diagnosed for, which there are no currently approved therapies in the u.s. and europe we have a second drug which we're also developing and a third drug which we're also developing in the same indication so we've got three other drugs in our pipeline, and we're
currently in a number of clinical trials. >> david, how do these results today affect your thinking about the same drug in dementia with liouis bodies. i hear a lot of people suggesting it's not going to work there ever. >> those few diseases are actually quite different this increases a main chemical and there's some evidence that the deficit is greater than it is with alzheimer's disease. and we're testing a dose that is twice the dose that we use in the alzheimer's trial that did not work there are a number of reasons to think that we may be able to generate different results in the trial that we did not achieve in the alzheimer's study. >> sir, can i ask you a quick question for viewers who may not know, understand, or even patients who may be out there suffering from this terrible disease, why is alzheimer's so difficult to try to come up with a treatment for?
there are only, as i see, four drugs that have been approved to treat the symptoms out of so many trials that have etaken place. >> well, alzheimer's disease is incredibly complex it's multi-factorial the brain is probably the most complex organ of all and after the last 14 years, not a single drug has been approved for alzheimer's disease. in fact, there have been more than 125 consecutive failed trials for alzheimer's disease so we knew this was a risky place to be in, but this is one of those areas, you just can't let fear of failure of losing a battle deter you from entering the war. this is an incredibly important disease. it's going to be one of the great scourges of our society. today we spend over $260 billion in the u.s. alone for the treatment of alzheimer's patients the emotional devastation on patients of families are staggering and we really -- someone's got to take those risks. and we would really need to do that every day i do this all over tomorrow.
>> david, i appreciate your time, very much. the axovant ceo with us today. megan, thank as well it's the second day of the annual ad week conference in new york our julia boorstin is there now with ceo of blumenthal >> hey, scott. neil, thank you so much for joining us here, right before your panel so washy parker is the rare exception in the retail world. you're one of the rare exceptions that's not being crushed by amazon. why does that make for you, started off as a digital brand, to open about 20 retail stores this year. >> so our retail stores have been this great brand experience, but more importantly, it's a great customer experience. and i think at the end of the day, retail is not an either/or phenomenon it's not purely ecommerce, it's not purely bricks and mortar in fact, i think we'll probably get rid of the word ecommerce in the next few years it's potato. and we find that over 80% of our customers that transact in our stores, have been to our website
first. so we think a lot about creating holistic customer journeys >> one analyst speculated that after amazon brought whole foods, that rory parker was the next obvious acquisition has jeff bezos approached you? >> he hasn't >> are you at all concerned that amazon could copy you or would you be interested in selling to an amazon like many other etailers have. >> i think we draw inspiration from amazon. what they have done is nothing short of amazing and their values are very similar to ours. that's always putting the customer first the greatest thing about customer that is they're unhappy. and when customers are unhappy, urg figure out ways to provide more value and compete and that's what we try to do every day. >> do you plan to go public? >> we think that that's definitely an option and probably the most likely option for us, but we view it as a
financing event. >> would it go more sense to go public or sell to a giant like amazon >> we love building an independent brand that can have influence and transform an industry, and hopefully leave a mark, especially from a social impact perspective, and we're enjoying being an independent company. >> thanks so much, neil blumenthal, appreciate it. >> thanks for your patience, guys oil in the red today it's still on pace for its best month since 2016 now jackie has more on that. >> wti crude, pacing for an 11% gain this month. crude rocketing to a five-month high before turning lower. scott nations, what's the next move here? >> well, i think that today's 25-cent loss, that's ordinary profit taking, but now we have a problem with potential iraqi exports, so i think that that's just fuel for us to get above $54. >> grays, what are your levels >> jackie, i'm looking at 52.30
to 52.60 is the next level of resistance and if this was january 1st, i would say it's going higher, but we're coming up to october 1st i think it's going lower >> thanks, guys. today on "futures now," we're joined by steven parker of jpmorgan private bank as well as scott rand of the wells fargo investment institute, all coming up at 1:00 p.m. eastern, futuresnow.cnbc.com. halftime is back after this is where i trade andrs. manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities- trade confirmed- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. i enjoy the fresher things in life.o.
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all right. markets close up in about three hours. that means it is time for final trades dr. j., you are up first >> this one's made a correction. i think it's one of the techs that will help lift us back up it is adobe. i bought it today. >> josh brown? >> puerto rico needs debt relief the president needs to do more 3.4 million u.s. citizens, they pay taxes, they paid $3.4 billion into the u.s. treasury last year. let's do better on the puerto rican crisis >> westlake chemical, it's pvc, housing, europe, it trades at 15 times forward earnings and has that great support following >> honeywell continues to be the complete opposite of ge. we talk too much about ge, don't talk enough about honeywell. above 140, staying lod ining lon for 150. >> how about oil above 150 >> we talked about that two weeks ago. you pay attention? >> let's talk about it again
>> energy banks. we talked about it, they're up 15%. >> xle is running back into that crash. >> you're pushing the banks again? that's not what i asked you. is oil sustainable >> texas banks -- >> is oil sustainable -- >> yes, oil -- >> oil is sustainable -- i'm sorry, stephanie >> i liquidated that thought from my mind i apologize. we got to go thanks for watching. "power" starts now and we have a big six-pack of developing stories for you right now. one, moments from now, fed chair janet yellen set to answer questions about the economy and interest rates two, president trump holding a news conference this hour with the head of spain's government three, mitch mcconnell set to speak on the fate of the gop health care and maybe tax reform bills. four, a massive bribery scandal rocking college basketball a number of top assistant coaches arrested along with an adidas executive five, equifax says its ceo is retiring following that company's massive data breach. shares are down again. and six, much of puerto rico still without power, as pr