you know, he didn't want to talk about ibm what the strengths and weaknesses of ibm were. in the past at the very beginning of the meeting the first thing he says is what we won't talk about is what we're buying now. now it seems to be we don't want to talk about what we own and why we own it. charlie munger once said if you can't say what you own and why you own it, you're not an investor. so i thought it was kind of unsettling. >> are you implying, jeff, that it's age-related? i'm trying to read in between the lines of your comments. >> i'm not talking about -- i'm not trying to -- i'm not trying to diagnose it, i'm saying it was unsettling because it was a different guy than i've heard in the past, i think. >> you sold brk last year after precision kas parts you have said was madness. >> right. >> this time you did not attend the meeting for the first time in a decade although you did watch the webcast. any regrets? >> actually, no. i guess i avoided a lot of rain, which i've hid in the past at those meetings, i know how they can be. the best part of the meeting now is

that's why ibm is missing out. >> ibm, 54%, microsoft 92%. amazon, 442%. >> wow. >> amazing. >> making $3.6 billion in capital expenditures in q one, they bought ten companies. they are trying to accelerate this growth. it continues to be a long term play. >> what do you make of the effusive praise for bezos? >> he sounded jealous, like i wish i had a bigger position in amazon. i think he's exactly right about bezos as an operator, an executive, someone who is always a step ahead of the market. they are eating share frankly. all of e-commerce is flat. his retail business is actually growing. you know what's growing faster is aws. we talked about cloud a second ago. i'm wondering, this is sort of going to how he's thinking about it, if and when he spins off aws, it's the fastest growing unit within amazon, most profitable unit within amazon. if i'm an amazon investor i want just a piece of that. >> a few months ago, i sat down with andy jassey -- >> ceo. >> he still said they have absolutely no plans to spin it off because of the flexibility t

ibm, i actually like that one. here's why. we talked in the beginning of the show about whether or not you want to buy valeant. this is a turn-around that is happening. so i feel like i have a much better probability. not only do they have watson, but i was in a bit coin conference, but they're into bit coin block change. they have two growth drivers. plus i get a dividend. i got it at a low price. yeah, i buy it. >> i tell you what, the gm story, we talked about ford and gm, and companies that are trading record margins, record cash flows, top of the cycle in terms of sale, yet they probably haven't been cheaper with the exception of -- actually, they were cheaper, but almost getting out of bankruptcy. it's a place where this is a 5% dividend yield. a company i think there's a lot of perception that these guys will not survive a technological kind of disruption factor in the industry. meanwhile, they've made more investment than almost anyone other than tesla. gm to me is one you ride through here. there's so much negativity

that didn't pan out though on the ibm investment. what is your take on what this means for investors in apple? >> first of all, it hasn't panned out yet for ibm. don't forget that berkshire -- nothing changed in terms of the time horizon. so i'm not surprised to see a pop in the price of apple today simply because of the buffet or berkshire effect. but i think they're buying apple for a very long term play. now i don't have apple in any of the portfolios i managed but i have a lot of ibm in my portfolios. again, it's a long term investment. >> thank you for joinging us. we appreciate it. >>> stocks are hitting session highs that hour. let's look at the dow 30 stocks right now. we were just talking about apple. it is in fact the biggest gainer on the dow jones industrial average. still it is practically at session highs right now if not at session highs. home depot ahead of earnings is also making some nice gains today on tail end of things, american express, travelers as well as disney. those are the biggest drags on the dow. much mo

. >> we saw -- remember the day starbucks reported, microsoft, ibm, apple. what did it mean for the broader market? absolutely nothing. the s&p has looked past every single piece of potentially bad news and ratcheted forward. can the s&p trade lower tomorrow? perhaps. but this is not the reason to sell the broader market in my opinion. going back to disney, it comes down to this, do they deserve a premium multiple over cbs? i say yes. is 16 the right number? i don't know if it's the right number. >> i say yes, too. because of the studio. when we look at the studio and look at the success they've had, i think that's something they can hang their hat on. and i think that continues. with espn, we'll know on the conference call. it's important to look at the fact that this stock like ibm had a 15% run in the last three months to where it is today and now pulled back 6%. the names that have run into these earnings and skyrocketed in, they're the names that seem to be able to not hold, unless they beat in a big way which they obviously missed tonight. i'm long. ri

we all look to ibm because we're all curious about it. what's the board see and what is the plan there. it looks like hp wants to put all growth in one area. to your point, guy, do they want to use the balance sheet to be able to make some kind of an acquisition. there are plenty of acquisitions out there. who knows what direction she really wants to bring this thing. so i don't know anything specific right now. but i think it's an interesting thing. she's obviously focused on growth. and are they looking for security. where would she want to go, that would make sense to me. >> buyer of the new company or hpe? >> i would be buyer hpe. but i would want to trade for a bit. >> still ahead, the lucrative world of esports. what is three-time nba champion fox saying the space could be offering up the next big sports gold mine. find out where hoe's pe's putti money to work right now. >>> here's what else is coming up on fast. >> america, this man is getting closer to being your next president. >> my new game is trump, the game. >> the game where

he's looking for ten-year return on ibm. he's not looking for a quick trade. and if that is a different m.o. that's -- >> in terms of sentiment, we got to a place where the stock was trading with a 12 to 15 rsi indicator. total momentum. and i think a lot of people out there have been saying look at some point apple is in a place where i'll own the stock. i actually think despite a lack of innovation, the stock will continue to produce 60 to 70 billion in free cash flow. that is part of why the piling on as of last quarter, it gets to a place you can see there's some very very quality guys that are -- >> it seems like a buffett, even though this is not buffett's decision, it's a buffett decision anyway services. where is the only place apple really showed growth this last quarter? credit suisse was all over this. talking about services. and not only did services grow by double digits but they continue to grow year after year to become a multi-billion dollar business -- >> it hasn't worked out. >> i understand. but that was the thought process of ibm. it was a

that's just my opinion. >> we talked a bit about ibm. there were shareholder questions that came in over the weekend about shares of ibm, particularly since they're trading at about $145 versus a cost basis just under $175. you made some comments you're not sure what to think about the ibm investment. >> i'm not sure it's going to come out. i like the fact they're doing it. and any kind of artificial intelligence is very much in. it may well work. i have no way of predicting. >> do you think warren does? >> no. >> you can take that to the bank. >> when you talk about artificial intelligence you talk about watson in particular. >> i don't think we're paying much for the opportunity. >> the opportunity to be in shares of ibm? >> i think that there's not much optimism in the current price of the shares. what is it you like about the artificial intelligence there? >> i like the idea of using art official intelligence because we're so short of the real thing. [ laughter ] >> bill, you've spent some time working on artificial intelligence and

it's all in the ibm cloud. if you combine that with the data your business already has- then things get interesting. so right now we're working with a retailer to blend social and inventory data to help predict demand. we can help a hotel chain match weather and local event data so they can adjust room prices from minute to minute. and another company we work with can apply analytics to sensor data to save millions in energy cost. today, every business runs on data. that's exactly why we built the ibm cloud. today, every business runs on data. steve, other than making i'm here atme move stuff,rade trader offices. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade. >>> we're back on the halftime report. big week for earnings.

we built our business on the ibm cloud. because that's what the ibm cloud is built for. >>> it's a big day for hard data. cpi starts and now industrial production. let's get to rick santelli. >> oh, man, this is a big number. finally, industrial production on its month over month change up 0.7 of 1%. we haven't seen a number anywhere near that in quite a while. looks to me like we could go all the way back to february or march depending on your rounding, and that's of course of 2014. keep in mind so far this year other than this number two out of three numbers were negative. last year 10 of 12 numbers were negative. here's the negative part of this number though, minus 0.6 last month, and two or three negative outside of this one moves to minus 0.9. capacity utilization done, it is 75.4, now, the utilization rate was expected to be 75, we're doing better. and unlike the last number we gained a tenth to 74.9 last month. 75.4, how does that stack up? well, 75.75 is where we started the year in january, so there's your comp. t

it's all in the ibm cloud. if you combine that with the data your business already has- then things get interesting. so right now we're working with a retailer to blend social and inventory data to help predict demand. we can help a hotel chain match weather and local event data so they can adjust room prices from minute to minute. and another company we work with can apply analytics to sensor data to save millions in energy cost. today, every business runs on data. that's exactly why we built the ibm cloud. >>> disappeared from radar this morning over the mediterranean. flighting at an altitude of 37,000 feet when it disappeared. the last reported position was 165 miles from the egyptian coastline. >>> let's get up to speed on the early market action. global market selloff was the reaction to the fed minutes which suggested june was more of a possibility than investors were betting. you saw that immediate reaction in the bond market. commodities and the dollar. stocks ended flat yesterday but they are losing g

it's all in the ibm cloud. if you combine that with the data your business already has- then things get interesting. so right now we're working with a retailer to blend social and inventory data to help predict demand. we can help a hotel chain match weather and local event data so they can adjust room prices from minute to minute. and another company we work with can apply analytics to sensor data to save millions in energy cost. today, every business runs on data. that's exactly why we built the ibm cloud. todaythere's no oness no one surface...e. no one speed... no one way of driving on each and every road. but there is one car that can conquer them all. the mercedes-benz c-class. five driving modes let you customize the steering, shift points, and suspension to fit the mood you're in... and the road you're on. the 2016 c-class. lease the c300 for $359 a month at your local mercedes-benz dealer. >>> time for a mad dash as we head to the opening bell. a lot of people from u.s. food here, too. they have a big

ibm is more important. ibm is going higher. i think it is a bbb. that's the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. working 24/7 on mobile trader, rated #1 trading app on the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other competitors do on desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivatives pricing model, honey? td ameritrade. ♪ no, you're not ♪ yogonna watch it! ♪tch it! ♪ ♪ we can't let you download on the goooooo! ♪ ♪ you'll just have to miss it! ♪ yeah, you'll just have to miss it! ♪ ♪ we can't let you download... uh, no thanks. i have x1 from xfinity so... don't fall for directv. xfinity lets you download your shows from anywhere. i used to like that song. >>> remember, when you're out of slits, you're out of beer. it is exactly why toll brothers chairman bob toll turned out that old line when he was describing the lack of

that's what the ibm cloud is built for. >>> the big focus for markets, janet yellen's speech. we asked what you expected. joining us from minneapolis is jim cahn at the wealth enhancement view. >> if you look at the data, you have to believe that there is going to be a rate hike between now and tend of the year. right now market is pricing at 30% chance of a rate hike in june. we think that is probably a little higher and the market is discounting some positive news we've seen south out of the economy which may lead the fed to believe things are closer at hand. >> do you think we stall out here? >> it is possible. i do think there is going to be more volatility. the market is under pricing we believe this the probability of increase in interest rates. increase in interest rates reduces value of other assets like equities. so if we do have an increase in interest rates we do think we'll see potentially a sharp selloff in equity market because it is under price at this point. that said i think energy has room to go a little higher. we've gotten noise out of iran and continue to

they trade just like general motors or ibm. but instead of owning a piece of a company, you own a piece of a bond portfolio or a lot of these are ones that i picked say if it's trading at, you know, 7% less than the nav it's called, that means you're buying a $1,000 bond portfolio but only paying $930 and getting a yield of 10.29%. i don't know where else you can do that. >> mark, i don't know, we've been waiting for five years for this horrible super spike in yields where everybody rushes for the door at the same time. i guess it will never come at this point. but if anyone ever did the efts or closed in funds, you're selling it as a benefit like it's a stock, but it's only worth what someone is willing to pay for it on any given day. the same supply and demand as shares so that can be a negative if everybody is trying to get out at the same time. it could sell for 30% below mid-asset value at a time like that theoretically. >> even if with a decline in value, you're getting your money based upon what is in the bond fund. so,

meantime, ibm continues to hire for its cloud services and data analysis businesses. on friday the company said it had 20,000 open positions there and of course they still have more than 350,000 employees overall in an i.t. business that's challenged with often having too many people versus cloud resources. it's a struggle they continue to manage. >> certainly not alone in the struggle, either. >>> the head of the tsa warning of more long lines with memorial day just around the corner. phil lebeau is in chicago with the details. >> i know i will be at the airport this weekend reporting on how the tsa is handling what's expected to be a busy memorial day weekend and really, all summer because we will see record levels. we are going to see long lines. the good news is over the last couple days we have seen shorter tsa lines reported at a number of airports around the country. the tsa is adding staff and overtime ahead of the memorial day weekend and then going into the summertime. some critics have called for more private contractors to run security operations at differ

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today it's their mobile app running on the ibm cloud. across every transaction, the hybrid cloud helps their data move quickly and securely. our clients are building out features and pushing updates faster, on five continents. with the ibm cloud, they can move at the speed of any start-up. e.t. phone home. wit[ soft music ]d, when you find something you love, you can never get enough of it. change the way you experience tv with xfinity x1. we're always looking for ways to speed up your car insurance search. here's the latest. problem is, we haven't figured out how to reverse it. for now, just log on to compare.com... plug in some simple info and get up to 50 free quotes. choose the lowest and hit purchase. now...if you'll excuse me, i'm late for an important function. compare.com. saving humanity from high insurance rates. >>> puerto rico is going to default on debt today. we have the latest. >> another painful day for puerto rico. the island is poised to $337 million in debts due by close of business. what is likely to be puerto rico's

working with watson in the ibm cloud, we can help an energy company predict pipeline corrosion. and help a start-up to use social data to predict market trends. now businesses can get more out of their data. that's what the ibm cloud is built for. >>> coming up in 19 minutes on "power lunch" the biotechs are down this week, and is it a buying opportunity or are the stocks headed down low eer? >>> and one of the stock categories bullish on amazon says it is going to be a 3 trillion tlrz bill -- 3 tr$3 trillion business, and should you buy? >>> and with will look at how business and conservatives will back trump, and if the that is going to happen? back to you, scott. >> thank you, michelle. welcome back to the halftime report, and gold is higher today after the legendary investor stanley druckenmiller called to sell stocks and buy gold at the sohn conference yesterday. jackie dean jeangelis is up wit report. >> we are seeing a bounce in the goal gold, but -- gold, but it is a quick run, and ki see why people are cautious getting into the gold trade, and do you? >> yes, u but more

today it's their mobile app running on the ibm cloud. across every transaction, the hybrid cloud helps their data move quickly and securely. our clients are building out features and pushing updates faster, on five continents. with the ibm cloud, they can move at the speed of any start-up. with the ibm cloud, we're always looking for ways to speed up your car insurance search. here's the latest. problem is, we haven't figured out how to reverse it. for now, just log on to compare.com... plug in some simple info and get up to 50 free quotes. choose the lowest and hit purchase. now...if you'll excuse me, i'm late for an important function. compare.com. saving humanity from high insurance rates. >>> welcome back to halftime now. to sue herrera with the latest headlines. >> here's what's happening this hour, everybody. donald trump has tapped new jersey governor chris christie to lead the transition team that would usher in a trump administration if he wins the white house. christie endorsed trump back in february, when he dropped out of the

it's all in the ibm cloud. if you combine that with the data your business already has- then things get interesting. so right now we're working with a retailer to blend social and inventory data to help predict demand. we can help a hotel chain match weather and local event data so they can adjust room prices from minute to minute. and another company we work with can apply analytics to sensor data to save millions in energy cost. today, every business runs on data. that's exactly why we built the ibm cloud. today, every business runs on data. ♪ ♪ (singing) you wouldn't haul a load without checking your clearance. so why would you invest without checking brokercheck? check your broker with brokercheck. >>> welcome back to "the halftime report." shares of monsanto are halted. monsanto has formally rejected coming from germany's bayer ag. in the statement they talk that the current bid undervalues the company. also saying that, again, from the company's ceo and chairman hugh grant we believe in the substantia

ibm has little price risk. intel is tough. anything related to personal computers. companies had a bad miss. no kidding. it did. it is time for the semiconductor giant to split with exciting forward thinking business that's can dominate the internet. intel's 3.4 yield offers protection but not enough for the decline. 17 j and j. this company delivered the best growth. it is the best balance sheet in the world. phenomenal management. i think money managers, i would pounce but good luck. it probably won't. jpmorgan, not the u.s. economy, not the global economy is strong enough to hand the rate hike let alone what people say it needs. they must be so rich it doesn't matter. that's the only explanation. then must be so rich they don't care where the market goes or where anything goes. if we get that many rate hikes, we freeze markets any way and business will halt. so be careful what you wish for. mcdonald's. here's the strange thing about momentum. people want to sell in the worst way because they want to lock in the gains. my experience is the opposite. mcdonalds is a

today it's their mobile app running on the ibm cloud. across every transaction, the hybrid cloud helps their data move quickly and securely. our clients are building out features and pushing updates faster, on five continents. with the ibm cloud, they can move at the speed of any start-up. >> legitimate concerns about any consolidation in healthcare. >> when you think about amazon, you have to think about the long-term secular trends in its favor. the first is people want to buy things more conveniently. >> valiant was genius at gaming the system. that game is over. >> people are trying to bottom fish in this name thinking the stock is cheep but we think it is anything but cheap. >> i have a real problem with apple in that steve jobs is the man. and what is their product cycle going forward? i think apple is going to be diminishing in importance looking forward a generation. >> highlights and opinions from yesterday's big sohn conference here in new york. cnbc is the official media partner of the sohn conference foundation. and we had a

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the dow, s&p, goldman sachs, ibm having a major influence. with the best performance in nearly two months. you can see the nasdaq higher as well by 1.3%. this is good news for investors as well as other markets recently. >>> meanwhile we want to bring you up to speed with some of the top earnings numbers here in europe. al stom announces it's debt-free. and a record intake which put the company on track to meet its 2020 target. joining us live from paris i'm pleased to say it's henry, the ceo from alstom. thank you for joining us, a strong set of results. i want to get straight to your record order book. we're looking at record order book, record backlog. tell us where it's coming from at the time where global growth has affected. >> good morning. i think this is the proof of the soundness of our markets. one of the major challenges for most of the cities around the world. we had a very large order in india. and as you know, we have ordes s across the middle east. which are impacted. on behalf of their priorities. >> let's talk a bit about th

ibm said its counter suit is totally without merritt. >>> and the united carrier continues to struggle in the united states along with lower s surcharges. >>> microsoft says it remains committed to the country and will also cloud services, microsoft shut down its system in china back in 2014. >>> now, we've got some trending stories for you starting with facebook which could be in hot quarter with a bias allegation. saying the network deliberately sensors pretty kay sensitive articles. late yesterday, facebook denied the report saying quote facebook is a platform for people and perspectives across the political spectrum. clearly, they take these allegations very seriously, as they increasingly become an important place for news, especially for young people. >> it's interesting to see this kind of accusation, not based on the concept they themselves produce but justify the way they amalgamate. >>> the hyperloop wars are on. saying it is licensed technology that is safer, cheaper and faster than conventional trains. stating that it's 750 miles per hour, travelers can get from l.a. to san

we know ibm hasn't been performing all that well since his investment. and apple stock took a big hit after their earnings report. only time will tell, so to check that out if you want to know more. back to you guys. >> well apple's ceo tim cook will be meeting with the indian prime minister when he equivalents the company later this week. and it follows the trip to china after apple announced a $1.4 billion investment in the company. good morning, welcome. what do you make of apple's interest in dd economics? >> there's a couple things going on there, apple is trying to grow its share in china. investing in a china company helps them build pr as well as getting a relationship in the chinese market. they're also clearly trying to grow what they're doing in maps negotiation and maybe over time. and didi fits into that strategy as well. >> what's the time frame for this happening. it doesn't happen overnight. and yuber is also present in china, but didy is much bigger than u verse. >> they did that wither siri, with the chip company that helped them design

we built our business on the ibm cloud. because that's what the ibm cloud is built for. we built our business on the ibm cloud. real is touching a ray. amazing is moving like one. real is making new friends. amazing is getting this close. real is an animal rescue. amazing is over twenty-seven thousand of them. there is only one place where real and amazing live. seaworld. real. amazing >>> the pentagon did address briefly the egyptair crash saying that it is too early to tell exactly what happened. but they did mention it. if they bring you any more headlines, we'll bring those to you as well. let's go now to another part of washington, d.c. if you've been wond wrerg tyler, is there he is not too far away from the pentagon. tyler? >> that's right. this is the investment company institute. this is really the nexus of where america main street meets its own money because these are the folks who run your money in 401(k)s, etfs, mutual funds and so much more. they gather every year. you know what is going to happen over the next ten years is the way people interact with thei

today it's their mobile app running on the ibm cloud. across every transaction, the hybrid cloud helps their data move quickly and securely. our clients are building out features and pushing updates faster, on five continents. with the ibm cloud, they can move at the speed of any start-up. igoing to clean betteran electthan a manual. was he said sure...but don't get just any one. get one inspired by dentists, with a round brush head. go pro with oral-b. oral-b's rounded brush head cups your teeth to break up plaque and rotates to sweep it away. and oral-b delivers a clinically proven superior clean versus sonicare diamondclean. my mouth feels super clean! oral-b. know you're getting a superior clean. i'm never going back to a manual brush. you gein your car. odors you think it smells fine, but your passengers smell this. {ding} eliminate odors you've gone nose blind too, for up to 30 days with the febreze car vent clip. wow, it smells good in here. so you and your passengers can breathe happy. >>> welcome back to "worldwide exchange." th

i will be interviewing ginni from ibm. and susan from gates foundation. so i will be busy. >> yes. lots of people. >> and so as jon and i will be heading out there to see everything that happens. we can't wait. kara, rest up. >> see you at the pool as usual okay. >> and kara swisher, big week next week. thank you for join g using us. >> thank you. >>> and meanwhile a slight gain in the dow up 18 points, and the s&p up 4 after the best week for equities the nasdaq up for the fourth straight day, and seeing the best gain of the averages up by 0.33. and ul ta salon raised the forecasts for the rest of the year, and monster beat, and the stock is up close to 10%. meanwhile, gamestop is falling after giving the current quarter outlook that fell below the edge expectations, because they are spending more time on the digital gaming systems than gamestop games. >> and now are the long tsa lines getting any better? we will go to o'hare to find out. >> and the companies picking up steam, and what is ahead for the rest of the year? and look at palo alto giving estimates below, and struggling

that's what the ibm cloud is built for. there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. 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. man 1:man 2: i am. woman: ex-military? man 2: four tours. woman: you worked with computers? man 2: that's classified, ma'am. man 1: but you're job was network security? man 2: that's classified, sir. woman: let's cut to the chase, here... man 1: what's you're assessment of our security? man 2: [ gasps ] porous. woman: porous? man 2: the old solutions aren't working. man 2: the world has changed. man 1: meaning? man 2: it's not just security. it's defense. it's not just security. it's defense. bae systems. >>> our courtney reagan just got off the call with the jc penney ceo. >> i just spoke to marvin ellison on the ph

we're looking at cisco, ibm, intel, microsoft. not terrible, but if you're looking for like a real outperformer, this is not where you would be going. >> you know, we should say that according to our own reporting and many others that this wasn't actually a warren buffett pick. it was picked by one of his lieutenants, he does have two former hedge fund managers running the big stock portfolio. and i just wonder if it says more about the changes inside berkshire hathaway than about apple. but clearly you have to wonder given their portfolio. >> i'm sure it wouldn't have happened without buffett's stamp of approval, but it's a good point because the hard core buffett crowd is saying, oh, this is not really a buffett stock. it's not even really a value stock because the real value people, and buffett was always in this camp, look at asset value and whether the market cap is close or even below the book or asset value. technology companies never fit that profile, which is why for a long time buffett didn't invest in them. and apple ce

we built our business on the ibm cloud. because that's what the ibm cloud is built for. came courtesy of james and patricia thompson. this tv? margaret and tom lee. the championship game ball? that was sebastian diaz. good guy. and all i had to do was ask for their money and pretend i was investing it. their life savings is now my lifestyle. female announcer: don't let someone else live the life you're saving for. find out if you're dealing with a registered investment professional at investor.gov. it's a great first step toward protecting your money. before you invest, investor.gov. >>> time for the "final trade," tim. >> not catastrophe, but the hyg has had a very good run. short. >> i'm happy to be a short seller this market, spy. sell that short especially if we break the may 6th lows. >> paypal, first analyst meeting as an independent company tomorrow. when they reported a couple of weeks ago they did not guide up for 2016. they might have saved a little something for the meeting. i think this breaks out over the next two months at 42. >> will from lehigh, great. he

that's what the ibm cloud is built for. we like that. not just because we're doers. because at sheraton, we're changing. big things. small things. spur of the moment things. ♪ changes you'll notice. wherever you are in the world. >>> it has been a rough couple of years for hedge funds according to data provider hedge fund research. the average fund was down 20% in 2015 and was up 0.3% through april. alpha magazine is out with its 15th ranking of. world highest hemp fund managers. citadel's kept griffin. and james simons. the names are well-known. it was the year of the computer guys. >> yes. >> if you look at the performance, the people using fundamentals or macro to invest really had a tough time. the computers seemed to nail it. it was pretty amazing. renaissance, funds were up 15, 16%. citadel's was up to 15%. impressive year for the clubs. >> david tepper doesn't trade with a computer. >> no. >> he's done well. one of the greatest investors are all time, obviously. you can make money in the environment without a computer, it's just an extraordinary difficult en

today it's their mobile app running on the ibm cloud. across every transaction, the hybrid cloud helps their data move quickly and securely. our clients are building out features and pushing updates faster, on five continents. with the ibm cloud, they can move at the speed of any start-up. >>> i'm melissa lee coming up at the top of the hour "power l lunch" rallies, on the oil, but not for the gap. and tesla is down 15% in the past month, and we have por on the trades of those two big name, and titans of the valley are will be here to talk about the health of the unicorns and the thoughts on twitter. all that and much more on the top of "power" and meanwhile, "back over to you. it's a huge upside bet. somebody is in there. i'm in there with them. >> pete, you got something too? >> financials, we talked at the top of the show. some. movement we saw. already moving to goldman sachs. the june 170 call. somebody came in. over 6,000 of these trades. 1.45. spread off. that's what i did with the trade. probably in there for a couple of weeks bu

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it's all in the ibm cloud. if you combine that with the data your business already has- then things get interesting. so right now we're working with a retailer to blend social and inventory data to help predict demand. we can help a hotel chain match weather and local event data so they can adjust room prices from minute to minute. and another company we work with can apply analytics to sensor data to save millions in energy cost. today, every business runs on data. that's exactly why we built the ibm cloud. years ago, i was starring in a allergic to other cats.cat opening - slash - closing night it hit me: hats for cats. everyone said i was crazy. when i went online. i got my domain, catswithhats.com from godaddy. now these things are fee-ly-in' outta here. got a crazy idea you think you can turn into a success? we know you can and we've got a domain for you. go you. godaddy. ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ ♪jake reese, "day to feel alive"♪ >>> turns out amazon's

we built our business on the ibm cloud. because that's what the ibm cloud is built for. we built our business on the ibm cloud. at ally bank, no branches equals great rates. it's a fact. kind of like bill splitting equals nitpicking. but i only had a salad. it was a buffalo chicken salad. salad. whoa. what's going on here? oh hey allison. i'm val, the orange money retirement squirrel from voya. val from voya? yeah, val from voya. quick question, what are voya retirement squirrels doing in my house? we're putting away acorns. you know, to show the importance of saving for the future. so you're sort of like a spokes person? no, i'm more like a metaphor. okay, a spokes-metaphor. no, i'm... you're a spokes-metaphor. yeah. ok. see how voya can help you get organized at voya.com. e.t. phone home. when you find something you love, you can never get enough of it. change the way you experience tv with xfinity x1. >>> welcome back. dow is up 27. nasdaq, though, continues to lag down 17 points. check out shares of the msci brazil index as well as brazil's bovespa. what a mess they

when you look at his holdings, like you said, wells fargo, heinz, coca-cola, ibm, you know, a lot of things in these sectors that shift as well. >> that part of his business -- >> weapons of mass destruction, he thinks this show is probably an abomination, i would imagine. the way he talks about it. >> he's the biggest trader of them. >> i know. >> maybe he likes the show. >> phone in to "options action." up next, your tweets and the final calls from the openings desk. i'm here at the td ameritrade trader offices. steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade. herthey work hard.ade, wow, that was random. random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every thir

ibm is sort of treading water here which is interesting. apple is a completely different animal. everything you just mentioned i can explain. back to the top of the show, i think people are just feeling better about things, which is why they're getting out of a small group of stocks and sort of dipping their toe into a bigger pool. whether they should be or not is a completely different conversation. but that's what's going on, i think. >> there is skepticism about that premise. there are opportunities here to trade against what has happened this week. and in today's market. >> yeah, so i would be selling names like proctor & gamble. of all of them, the one i would probably be short aggressively. >> i actually fall somewhere in the middle. i think this -- a bit of a change in tone going on here. i don't think the dollar is going a lot higher. i do think the fed could move. a lot of places in the commodity sector and emerging markets have made this adjustment. when i look at the moves from wednesday to today, a lot of these guys have come back and built a base. that's the weakness

it's all in the ibm cloud. if you combine that with the data your business already has- then things get interesting. so right now we're working with a retailer to blend social and inventory data to help predict demand. we can help a hotel chain match weather and local event data so they can adjust room prices from minute to minute. and another company we work with can apply analytics to sensor data to save millions in energy cost. today, every business runs on data. that's exactly why we built the ibm cloud. as long as you love me, it's alright bend me shape me, any way you want me... shape the best sleep of your life. sleep number beds with sleepiq technology adjust any way you want it. the bed that moves you. only at a sleep number store. >>> cool rain and cooler temperatures are helping firefighters on the fire in canada. it is still growing. just more slowly. and it's now more than of 600 square miles in size. we have a reporter live in edmonton, alberta, with more. >> michelle, that's right. the cooler wea

that's what the ibm cloud is built for. . >>> welcome back to "power lunch." i'm sue herrera with this breaking news bulletin. mexico's foreign ministry approved the extradition of el chapo guzman. since he was captured, the united states juaned him extradited back here. mexico was pushing back against that. but right now the mexican foreign ministry has indeed granted the u.s. request to extradite el chapo back here to the united states. we'll keep you posted. there is no date or time line yet, tye. when we get that or if we get that, we'll bring it you to. >> i expect there could be appeals involved here. he was recently moved from the prison from which he had escaped to another prison that was closer to the u.s. border maybe in preparation for just this kind eventuality. there he is today on the day of his arrest. >> you know, in this latest person that he was in, they would move him up to eight or nine times a day because they were so worried that he would be able to find some way out again because he did escape from that previous prison twice. but they ke

when you look at his holdings, like you said, wells fargo, heinz, coca-cola, ibm, you know, a lot of things in these sectors that shift as well. >> that part of his business -- >> weapons of mass destruction, he thinks this show is probably an abomination, i would imagine. the way he talks about it. >> he's the biggest trader of them. >> i know. >> maybe he likes the show. >> phone in to "options action." your treats and the final calls from the options desk. what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade. igoing to clean betteran electthan a manual. was he said sure...but don't get just any one. get one inspired by dentists, with a round brush head. go pro with oral-b. oral-b's rounded brush head cups your teeth to break up plaque and rotates to sweep it away. and oral-b delivers a clinically

it's all in the ibm cloud. if you combine that with the data your business already has- then things get interesting. so right now we're working with a retailer to blend social and inventory data to help predict demand. we can help a hotel chain match weather and local event data so they can adjust room prices from minute to minute. and another company we work with can apply analytics to sensor data to save millions in energy cost. today, every business runs on data. that's exactly why we built the ibm cloud. tod♪ no, you're notss ♪ yogonna watch it! ♪tch it! ♪ ♪ we can't let you download on the goooooo! ♪ ♪ you'll just have to miss it! ♪ yeah, you'll just have to miss it! ♪ ♪ we can't let you download... uh, no thanks. i have x1 from xfinity so... don't fall for directv. xfinity lets you download your shows from anywhere. i used to like that song. ♪ >>> welcome back. another bank has been hacked. investigators are linking it to the bangladesh attack that resulted in $81 million being stole

it's all in the ibm cloud. if you combine that with the data your business already has- then things get interesting. so right now we're working with a retailer to blend social and inventory data to help predict demand. we can help a hotel chain match weather and local event data so they can adjust room prices from minute to minute. and another company we work with can apply analytics to sensor data to save millions in energy cost. today, every business runs on data. that's exactly why we built the ibm cloud. today, every business runs on data. but it's actually a triumph of predictive analytics. because of optum. through population health data, they provide insights so doctors and hospitals can identify high-risk patients. like me... asthma... potential hospital visit. so now thanks to optum, this asthma thing's under control. gravity not so much. this is healthier, powered by optum. from health plans to providers to employers. we connect all parts of health care. healthier is here. e.t. phone home. [ soft musi

this man ran sales at ibm. to take that job was a shock for me because it was such a nasty job to come in and have to clean up. we got to get him on the show. >> okay. >> this was a master stroke by him. >> i had an opportunity to speak with him briefly yesterday. >> you did? >> yeah. >> what'd you think? >> um -- >> straightforward guy. >> yeah, it was via phone. >> but still, you buried the lead, what was he like, right? >> straightforward and very much excited about the potential of this combination. my thought was he had to see how the market responded to it and of course the market responded very, very favorably, jim. because the idea -- and meg whitman explained it, if there's going to be consolidation you want to be ahead overit. the question is, well, if there is, would there be anybody looking at buying csc and trying to break up the deal. but when you get a response like this, that's highly unlikely. >> yeah, congratulations to him. that company was very -- you could see all the upgrades today csc, pe

this following similar partnerships we've seen apple team up with ibm and cisco. guys, back to you. >>> jeff gunlock saying get out of utilities and into mortgage reits. what does the trading nation thing of that call? that's next on "power lunch." >>> gunlock made the case at the conference yesterday. >> utilities are up like 40% and mortgage reits are slightly negative over that period. so the valuations have gotten incredibly stretched. if you o. reits, you have a yield of 11-plus. if you own the utilities, you get three. i will bet dollars to doughnuts that the two prices converge. >> is that a smart trade? dave see burg, head of, and kim force a portfolio manager. good to have you with us. would you follow his advice? >> we would not. we think a lot of especially retail investors get a little confused about about what a reit is and what the dividends represent. first of all, anything with a high dividend, there's a warning that there's some risk in that instrument. so i don't think regular retail investors understand is that the reits pay out the dividend bas

we built our business on the ibm cloud. because that's what the ibm cloud is built for. plumping surface cells for a dramatic transformation. we built our business on the ibm cloud. without the need for fillers. your concert tee might show your age...your skin never will. olay regenerist. olay. ageless. and try regenerist micro-sculpting eyeswirl. it instantly hydrates to plump and lift. >>> the dow rising 359 points in two sessions. crude oil $50 a barrel. chief technical strategist katey stockton. i was asked three or four weeks ago when it looked like the market was getting into that area again where it had been lower lows and lower highs. and you said this is a crucial time if it turns down again. we didn't go through. >> he failed near that resistance. >> we are giving it another shot. and i think it will fail again. so a breakout really needs confirmation not just in price but in time. s&p 500 is right around 2,100. you need to see it stay a couple weeks to confirm or break out. and i don't think that's going to happen. >> we have had smart guys saying dead money i

i spent time watching the ibm computer. they say they are the company that can do big data analysis faster than anyone and they are targeting the health care industry. seemingly targeting ims. is that going to be a powerful competitor? >> i will say they can play chess better than we can. but that being said, i think we are the leaders when it comes to big data for health care wefl a company that has been in the business over 60 years. we've been in the business 34 years. we have over 1,100 medical docs. ten 50 phds. focused on life sciences. they have the biggest lake of data that there is and putting them together will have great outcome for the customers. one thing i might add is that all week long, the ceo, and i have been getting responses they get it. this is really strategic. this is what we need to do. this is what we've been trying to do. we've even had a couple of customers that we don't work with. very large pharmafirms say come in. we want to meet with you soon and talk with you about what you're doing. we proba