tv Squawk Alley CNBC August 6, 2015 11:00am-12:01pm EDT
good thursday morning. 8:00 a.m., at fitbit headquarters in california, 11:00 am on wall street and "squawk alley" is live. ♪ ♪ throw away your television time make this clean decision ♪ ♪ master weights for its collision now♪ >> jon fortt, kayla touashy out today. kelly evans working double shift. nice to have you back again. market day, so much to get to. apple, the company announcing that apple music has more than 11 million members during the free trial period. senior vp focused on china.
he spoke to josh lipton. josh loins us in san francisco. good morning. >> good morning, carl. eddie cue tell me apple's business in china continues to stay strong. the app store did a record $1.7 billion in transactions in july, qusays a big reason for that is the growth in china. injuly, apple saw its largest number of transactions in china on the app store ever. now i also asked eddie what the average spend by chinese ios users on the app store continues toen crease, eddie says it does. that is a critical troend watch for investors. they want to know that chinese consumers are continuing to spend more and more money on apple's products and services. in its last reported quarter, china contributed 60% of revenue according to ubs. now, eddy highlighted new number on apple music, 11 million
people signed up. saying that the feedback has been, in his words, overwhelmingly positive. i did ask him about whether people are listening to beats one and creating play lists to, to me that would indicate real user engagement with the new service. eddy are seeing that level of interaction by new users. of course all of this news coming as apple stock unreal pressure. investors concerned whether the company can grow iphone shipments in q1 and 2016, whether the engine of china continues to hum. sounding very confident that it will. guys, back to you. >> josh, great stuff. so if you're an apple shareholder, how do you play the company now? let's ask one. channing smith owns 250,000 shares, manager director at capital advisers and joins us tulsa. good morning. you pared your position last
year. >> we look at increasing the position. if you miss expectations, your stock is going to get punished despite apple being on the top and bottom lines the iphones unit came in shy. the stock reacted negatively, bouns bounced up. >> you trimmed your position, i think, late last year. i think you got to five, brought it back to three. i would ask you about the music and 11 million members and how many to keep as paying customers, but it's like that's change in their sofa cushions, right. >> it really is. it strengthens the ecosystem. everyone will focus on iphone. we had a miss but if you read through the earnings transcript the numbers are astonishing. we saw 35% growth units, 59% growth in revenue. china grew over 100%. 89% unit growth.
if you look at numbers, they were the high end of management expectation. what's happened analysts, like usual, have got too aggressive so stock's come in. but this is a buying opportunity. the setup for apple is very good in coming years. >> if we heard you right, you're saying, yes, time for investors to buy here. how do you know we're not going to see further weakness for apple as we move into the holiday period? >> that's a good point. look back a couple of year, what caused the decline? gross margins. gross margins went from 40% down to 36 and there was a fear that gross margins were going to collapse. today gross margins under 40 and stabilized. the other issue that was concerning a couple of years ago, market share. android taking market share from apple. that is not happening. apple is taking market share, if you look at going forward over the coming years only 27% of the installed base is upgraded. a huge number to still upgrade. the emerging markets, fuzz out of china encouraging.
we have tremendous growth opportunity as head. looking at next quarter, that's a throwaway quarter. people look at new product, if apple delivers on a lot of the functionality and makes it good enough to upgrade, we're going to see a strong christmas season. >> you did get out of facebook last year, which you said it was too early. i assume is it too expensive it get back? it continues to work in the tape. >> it is. in this market, if you can deliver on earnings, the stocks are going to go up. the valuation is lofty. we love the growth opportunities. love to get an opportunity to get back into facebook. but we sold early and unfortunately looking at valuation and this market, if you beat your earnings, hitting numbers, the stock's going to continue to go higher. >> your top idea for our viewers? >> i think you've got to go with what works. from the technology standpoint, you know, look at amazon, one of the key factors to amazon's
success their operating margin. we were on the program probably a year or two ago and talked about that operating margin. if amazon can get operating margins to 5, 6, 7% on a revenue basis, probably $100 billion, $250 billion the earnings power for that company is going to be considerable. i would watch amazon carefully and look for entry points but that's going to be a dominant franchise in the coming years. >> remains a believer. channing, thanks for joining us. channing smith, also saying apple here is a buy. check in on the markets. right now, take a look. the dow negative session, makes it 3 out of 4 for august. down 84 points. green mountain, absolutely tanking this morning, after that revenue miss. and sales with coffee pots fell for the first time. the company lowered its sales and earnings forecast and said it would cut 5% of total workforce. shares down 28% this morning. facebook, another good day, a port in the storm.
up less 1%, shares closer to the $100 mark, about $97 and change. as twitter falls, once again, take a quick look. down 2% today, under $28 a share. >> when we come back, the cable hangover continues. fox, viacom's down 20%. cbs making moves to the downside. the future of the bundle and whose best positioned to stay on top. major hearing could decide the future of the sharing economy. what that means for uber and other start-ups. share of fitbit hammered despite strong report in the first quarter as a public company. the ceo's response and his recipe for growth the rest of the year when "squawk alley" continues.
welcome back. joining us to talk about media, henry blodget, founder, editor and ceo of business insiders joins us today at post 9. >> great to be here. >> we had iger on yesterday, cramer's take, disney set up for multiday fall, which is clearly playing out, because, in your view, are we here. >> reaching the tipping point of television. it's important to step back, rhetoric, death of tv, this is a generational shift, it is going to take decades, tv's not going to die. the same way newspapers have not died. but newspapers peak in terms of money and power and influence, 15, 20 years ago, i think we are
at the peak for the traditional tv business today. and will decline inexserbly going forward. netflix, the future of television distribution, a better format for distribution in a digital world than the current model. and that's why netflix has valuation it does. >> are we talking about distribution or talking about content? netflix doing well today the cable names hanging in there relative to content provider. viacom down 20, fox down 12.5%. even names like time warner, twx, down 4.7. that's larger than the cable piece of the business. why those providing content, if anything, the distribution out there, you know, proliferate, getting hit harder than the old traditional pipes? the big picture, talking about distribution, so we're talking about networks funded by cable affiliate fees and advertising versus the netflix model where they can cram 50 networks worth
of content into one consumer subscription available on any screen, anytime, vastly more convenient, my kids consume a frightening amount of television content that i grew up on, they never ever watch television. they watch netflix, itunes, amazon, and youtube. that is the future. and you look, you tweeted other day, carl, ratings for children's shows down a shocking almost 15% year-over-year. it's a generational shift. and is only going to get worse for the traditional tv business as we go forward. >> a lot those are viacom names, whether looking at nickelodeon, things like that. less moonves' point, broadcast remains stronger than the basic cable model. >> it's highly available. this is one of the only places that advertisers can still reach mass audiences, you have this weird thing going on where ratings are dropping, so folks are paying more to reach the
rating points you've got because it's the only way to get to the number of people. that lasts for a while. but ultimately the money will follow eyeballs. it takes five to ten years, after the eyeballs begin to move, the same way it did in the newspaper business. remember when we got to 2007, after a decade of oh, newspapers are screwed predictions, it fell off a cliff. and that will happen to the traditional television industry at some point, even though the consumption of long form video is going to skyrocket as we get it on all of our screens. >> is content king? i mean, that's ha we say, right? that's why i find trading interesting the last couple of sessions. content providers to your point, getting hit, maybe people finding content they need and like elsewhere. that's a little bit of a different narrative than everybody cutting the cord because they're dissatisfied with cable offerings. >> you need both. content, distribution, netflix, has the market cap, no content providers that that. look at vice, doing incredibly
well. tiny fraction of netflix market cap, so you can say, financially, distribution's king. but you need to watch something, a lot of what is made for television now will ultimately get restructured and go away. you will have new content creators. but we need to watch stuff. you can't create it with algorithms, good for all of us in the content business. >> when computers aware, we're in trouble. fitbit, shares are falling after first earnings as a public company. the ceo james park did join us earlier today and discussed how the company's using social media. >> we want to try to make the social experience much more compelling on fitbit. so we integrated facebook friend finding weep want to increase density of the social graph. one of the largest social networks in the world than results in greater engagement for users. >> is it a function, henry, of being a new issue, post a quarter like this and be down
15%? >> it's a function of the stock going straight up since the ipo, maybe got ahead of itself. step back, silicon valley will talk about it's a platform, gopro's a pedia company. they are selling gadgets. they sold a boatload and have a an attractive price point than, for example, apple watch which is expensive. step back from the market, it's not clear, ultimately, whether fitness trackers are going to be a separate market or whether integrated into phones and watches, but fitbit's growth would suggest that this may be a separate market and if they can build a social network, you feel like you've got to be on fitbit, everybody is, they're golden. >> a pattern we've seen including tomtom, it soared, everybody loved it then it crashed down to $2 and took a while to work its way back up. aren't we going to see the pattern time and again with trendy devices as they list? >> it's possible.
the fitness tracker is good enough for me. i get to watch, i don't have a fitbit but if fitbit gets really good at that piece of it and it's only $90 or whatever it happens to be versus the apple watch, $600, this $600, they may be able to carve out a initinic people feel like i've got to have it it, it's my health. >> 120% ye-to-date worked up until now. finally, tesla, another big mover to the downside, the company cut sales forecast for the second time this year. that does appear to be weighing on shares this morning. earnings and revenue beat expectations. henry looking at cash levels, dipped into a credit line. >> they are burning a phenomenal amount of cash. i think if you're looking forward with tesla, assume big financings, maybe delusion, more debt, they get to cash flow positive if they debt there. folks are looking at that. they've delayed shipments.
people are saying, how big is the market? how fast can it grow? how fast can they produce? it's hard to do what they do. >> cramer's view this morning, he calls it a cult stock. >> no question. >> but with that is the notion if they get more financing and raise capital, bears have -- the bulls would have another leg to stand on. >> i think with this one, step back and say, how many cars would they have to sell to justify the valuation? right now they're selling 55,000 cars a year. look at porsche, for example, sells about 200,000 cars a year, generates enough profit to justify tesla's current valuation. could tesla quadruple the number of cars and throw off as much cash as porsche? then the valuation starts to make sense. if you don't think that, you've got a good bear story. >> you look through the numbers, you used your head and say, it doesn't look that great. then it's in scandinavia. norway, tesla's everywhere,
people love. there's a lot of subsidies that go into that. i think they had electric cars selling one ut out of every fou. hard to see that going away overnight when, if anything, it's gone mainstream albeit in a small market. >> the current model el anding to people for whom money is not an object and owning a tesla is status, cool, a hundred grand to throw away, now going after mass market. people are focused on what does it cost. gas prices collapsed that makes the equation tougher for mass market buyers. it's a long-term play. a huge range of reasonable valuation based on projections for the future. we are ping-ponging around within that range of valuation. >> ping-ponging good word. not the first freakout on tesla. >> won't be the last. >> down to 181.
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welcome back. shares of mondelez hit an all-time high after bill ackman announced a huge stake in the company. disclosing 7% maker. shares are slightly lower. david faber here to explain why. >> you know, it's a surprise in all ways. of course you say one of the things that surprise, company's stock at all-time high, not a place you would see activist playing. the biggest we've ever seen, the largest single position on the initial taking of that position we've ever seen at 5.5 billion. makes him the largest shareholder at mondelez at 7.5% owner. of the company stock. yet to see the 13, but it's
coming and we will see it. i'm told not to expect much more than we know, he believes the company can improve on its margins and the like and also sees possibility and/or likelihood at some point of consolidation in the industry. but that is the area where many people certainly are surprised, at least to hear, because the thought has been for some time that mondelez is doing many things right now. it has an activist on the board, nelson pelts, improving margins, doing zero based budgeting for a time, margins going you, and the prospects of consolidation, pepsi said some time ago, we're not interested. so, the likely potential candidate would be 3g, which is just in the midst now, having a month ago close the kraft/heinz deal of getting things in order. people tell me, sure, another deal is always on the horizon but that horizon is some time
away. don't think months, perhaps years. that can always change. perhaps that is the thinking of mr. ackman, who i have not had an opportunity to speak to, understanding what is behind this. buying a company whose stock is trading 15 time ebitda, margins moving in the right way. but $5.5 billion, a huge position, how much will change? maybe not as much downside. how much upside in the future unless you find that opportunity that's out there, kelly, in terms of a buyer? >> how many buyers are big enough? a huge company. >> enormous, $78 billion market val up a premium on that, you get a bigger number, 3g conceivably, might have the wherewithal to do it at some point. pepsi certainly. but beyond that, there's not much out there in terms of even potential buyers. and again, things are going quite well there, that would seem to protect his downside. i searched for a month to figure this out and crossed out
mondelez many times. so hence the surprise amongst many people this was the name. >> vinvestors trying to figure out what to do with it. europe will close in five minutes. simon hobbs here to wrap that up. >> mixed session, as you can see in europe overall. the biggest news for people in this market is that the central bank most closely aligned to the fed is becoming more dovish. in the uk today, super thursday. that means the monetary policy committee of the bank of england comes through with the poll significance decision. they published minutes of the meeting. they have the news conference. a look at mark carney during that and at the same time publish the inflation report. what was interesting is that this time one of nine, only one of nine, was more hawkish, voting for a rate rise in the united kingdom. two hawks, usually one of those has turned more dovish overall. mark carney suggesting the pound will push the strength in the pound, as you've had strength in the dollar will push down inflation for some time to come. he said the likely timing of the first rate increase is drawing
closer but the precise timing cannot be predicted in advance. it is data dependent. but the uk will raise rates in the first half of next year, importantly, that has shifted back as arguably the fed may or may not have done depending whether you listen to what lockhart said. the pound is at an eight-year high. the second-best performing currency after the swiss franc where we've traded over the week. you can see the way the pound has fallen. the earnings were mixed in europe. standout is the giant danish biotech down 12%, 13%, deutsche post is lowering guidance for the year. good news, the fourth day of the week, fourth day the greek stock market has been open remember the banks were all you falling 30% limit down for the first three days? buyers today, buying in banks at 6 cents a share, 12 euro cents a share. actually the greek stock market overall today up 3.6%.
not that anybody cares. directly investing in athens. >> we've got other fish to fry, true. when we come back, major hearing in san francisco could decide the fate of uber and a ton of other companies in the sharing economy. details on that with the dow down almost 92. ♪ i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one.
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here is your cnbc update. a strike shut down the london underground system for the second time this summer. union workers walked off the job amid a dispute how to implement the new 24-hour service on weekends. the death toll from an outbreak of legionnaire's disease in new york city risen to eight. 92 hospitalized, five cooling towers tested positive for the bacteria and that deadly disease is spread by inhaling contaminated water. a choking hazard prompted the recall of 500,000 baby oncies. the company precious cargo recalling the garments with a three-snap bottom closure because they can detach. sole from july 2014 through last month. 25 years after the notorious burglary of the isabella stewart gardener museum in boston, law enforcement officials seeking
assistance in identifying an unauthorized visitor before the theft. the footage shows unidentified man allowed into the museum by a security guard. the mystery deepens. that's our cnbc news update. let's get back to "squawk alley." it's a big day for uber. hearing in san francisco could go a long way in determining whether drivers are employees or independent contractors. scott is on the san francisco board of supervisors as well as san francisco county transportation authority. good morning. >> thanks for having me. >> do you have a dog in this fight? >> well, the judge and the lawyers will figure out what the law is and will move forward. but to me, as a policymaker, what matters is that these ride sharing services have transformed transportation in san francisco.
it used to be our cab system you could never predict whether you could get a cab. and now whether it's a cab, a ride share, people know that they're going to get a ride when they need one. and that's important. and we need to make sure that whatever happens, these services are able to survive and that this innovation continues. >> trying to read between the lines there, scott, sounds like maybe you would not be so much in favor of the workers or the drivers themselves looking for additional relief, that is fair? >> the workers, we want the workers to be treated fairly and compensated fairly, and this is a new industry and in various regulatory aspects, i think the system is working itself out and will eventually achieve some sort of equilibrium. to me, whatever the regulatory scheme is, we need to make sure that these companies are able to survive because this really is about people in san francisco
being able to get around the city and the ride sharing services have transformed people's ability to do that. used to be if you called a cab you didn't know if it would come in a minute or 30 minutes or never. now people know that whether it's a cab or a ride share, something's going to come within a few minutes and you're going to be able to get where you're going without having to drive your own car around. >> scott, you're the capital of innovation in san francisco. as you said a lot of people like the services that uber offers here. so why not try to innovate some other way to protect employees instead of either/or classification that california judges said maybe is 20th century and outdated? there some other way, whether encouraging unions to help cover certain benefit for some workers, et cetera, to avoid having to make this in some ways false choice? >> well, you know, i think that there's going to be a lot of conversations about this new economy and how do we make sure
that all of our workers are treated fairly, taken care of, have the benefits that we expect in this country for workers while also making sure that new models of working are able to thrive. and so i think it will take some time to work that out. we all want to make sure that these workers are treated fairly and compensated fairly and have the same social safety net as other workers. and we need to do it in a way that allows innovation to occur because this innovation, ride sharing services, i cannot overstate the significant positive impact it's had for the residents and visitors to san francisco in terms of being able to get around our very crowded city. yeah. no, absolutely. you're talking to two people who live in new york and understand exactly what you mean. i mean, all that said, there have been some people who have tried to do some back of the envelope calculations on what would happen to uber's financials which, by the way, have been the topic of some discussion lately. if these drivers were included,
named employees, do you believe it would be the death knell of uber, severely hamper their growth or profitability long term? >> i can't speak in terms of uber's profitability or lyft's profitability or how this would impact them. i don't -- i'm not inside either of those companies. they'll have to speak for that, and the analysts will have to speak for that. what i know is that it's really important for these services and it's not about one company, it's about a sector and various companies. this service needs to continue to exist. if these services went away, it would be much harderer to people to get around in san francisco. we would have more people owning cars, more problems with parking, people need to know and have confidence that they'll be able to get a ride when they need it and it's much better for a whole lot of people to share one car than each have their own car. >> scott, that's the point a lot of people would make. now precisely the time for
creative solutions to a problem that may be shouldn't be plaguing us but will confront us as we move into this kind of gig economy. are you hearing, considering, you know, any -- is there anything out there that suggested a way forward that would both keep services like uber in place and make sure that drivers have access to the same benefits as workers in many large existing companies? >> i think a lot of conversations going on. we went through this in california in the last few years around the insurance issue. there was a major gap in insurance for ride share services and there was a lot of concern that maybe it would be impossible to get insurance that would fully cover these services and lo and behold, insurance that fully covers these services. they are going through issues around background checks. all of these issues will work themselves out. this, when you have a service that is so important, to so many people that the consumer wants and is willing to pay for these issues are going to get worked out. i'm confident that we'll be able to work out a system where these
workers are being treated fairly and humanely and have all of the social safety net that we expect for workers in the country al w allowing services to thrive. >> we'll see what happens at the hearing this afternoon. thanks to you for your time. scott wiener joining us. speaking of uber, the company's valued more than $50 billion. but according to gawker, it continues to lose millions, leaked financials show that uber's lost tens millions in last couple of years. gawker says it lost $56 million in 2013, $160 million in the first half of last year alone. uber did respond to the piece saying, quote, shock, horror, uber makes a loss, this is hardly news and old news at that. a case of business 101, raise money, you invest money, you grow, hopefully you make a profit, and that generates a return for investors. some people thought that was a good retort from the company's side. >> sounds like the ceo, sounds
like something that comes from him. it is interesting, carl to look at documents and realize uber's not quite cranking it out than was what surprised me the most about this whole thing. not that they're losing money but they're not quite as of the beginning of last year, granted, for being the size they are, operating in so many different countries and as we've discussed, changing the entire transportation model, still not quite making the bank yet on revenue. >> as expenses get bigger and bigger. >> yeah. something to keep in mind. >> lending club earnings topping expectations but shares are lower this morning. we'll speak with the ceo in a moment. first, though, rick santelli, what are you watching today? >> what i'm watching today, i'm thinking about the notion that the fed goes to great lengths not disappoint the market but how high should we prioritize that type of relationship regarding the fed? we'll talk about that after the break.
that's what we call that new gear feeling. you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great. coming up on the halftime show, from tesla to fitbit to a slew of media names the earnings carnage widespread today. what's your game plan on these names now? we will find out. plus, one strategist says the problems in one big area of the market are worse now than in the financial crisis. are you at risk? big moves from big activist investors from bill ackman to dan loeb, should you piggy back
off of their buys? always questions when you find out stories like this. see you in a bit. >> you'll have a lot to work with. dow's down session lows, 130. closing in on a 20-point s&p loss to 2081. a lot of things aren't working. we've been talking about media all morning long. oil hasn't helped trying to hold on to 44. via tech starting to give in the ghost, celgene lower. and fang, the four stocks we talk about, facebook, amazon, netflix, google, starting to sell things they can sell. >> markets finding every place investors have been hiding in the market, knocking them out one by one. cme group, rick santelli with the santelli exchange. >> a great idea on how to make this spot even more real time. so let's consider how the media firestorms and started. started with disney, but let's
consider in the rear view mirror, many years of very great equity returns. one of the themes was that the fundamentals of the economy, news of the day, had little impact that there was a trajectory of stocks, as a sidebar to quantitative easing and fed zero interest rate policy, that many believe were propelling stocks. not to mention the obvious canyon move what happen do i mean by that? that we're at a certain level, crisis hit, wet down the canyon and came up to equal level versus the other side. that's a normal move. lots of commodities do it. energy marks most likely will have some pattern similar to that over the next self-years. but let's dig down deeper. so if this news over the last several days would have come out in 2011 or 2012 or 2013, the stock market maybe had more mojo less affinity to worry about nasty fundamentals, would we have seen the same response? and that leads me to the theme i started out in the ts, and that
is the fed prioritize way too high the notion that they don't want to disappoint markets? they will go through great lengths to avoid disappointing the markets. joe used the word "loathe" and i think it's something to consider. anybody who has ever followed markets, great periods of market history that condition certain responses. down here like i was in '87, the responsed condition, when stocks go down, rates go down because they buy treasure res when the tarp vote failed, everybody has a hissy. flash crash, flash crash in treasuries, stocks. the liquidity issue, it paints a picture. the fed needs to learn what the word macro means and i don't mean macro prudential. they need to stake a step back. i'm sorry, but if you think about who the markets represent today, who the biggest players are, who is profited the most
from many of the policies of the fed like zero interest rates, their heart was in the right place, i think they should let the market breathe. don't worry about knee-jerk, and even if, after normalization, we see big movements and directions that investors aren't happy with the market has to survive without training wheels. if you have a patient on morphine and take it out, what happens happens. are we going to be on a ventilator or move higher? i don't know the answer but they can't keep it interest coming out at some point. carl, back to you. >> all right. rick santelli in chicago, thank you for that. when we come back, several dow stocks in correction territory. some present some decent buying opportunities. we'll talk about which ones in just a moment. can a business have a mind?
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i think about my own kids. they're the reason that i want to protect our community and our environment, and if me driving a that truck means that somebody gets to go home safer, then i'll drive it every day of the week. together, we're building a better california. if you're 99, 2000 for a bubble, whether look at number of ipos, even valuations today, if you look at venture capital dollars, this nothing like what we saw in '99, 2000. >> dealing with problems of 1%. >> i don't want a taxi. i want a car. >> how do i find friends with wednesday night? my act is tuesday. it's completely different. more sustainable problems like food logistics, internet of things out in the real world, not just on rich people's wrists. >> that was jon fortt sitting
down with two top venture capitalists. to see full video of the panel and complete coverage of delivering alpha, visit deliveringalpha.com. stocks in correction territory especially with the selling pressure this morning. there are a lot of buying opportunities. dominic chu with a closer look. >> good morning. buying opportunities are judged by you, the viewers out there, because you are intelligent, you are financially savvy and we want to know among eight dow stocks which ones are the best opportunities. you've taken eight and whittled them down to four based upon your votes with that tweet buy the dip, buy the dip and online, cnbc.com. you've chosen apple over intel, also exxon over caterpillar and on this side here, american express over ibm, proctor & gamble over walmart. those are your four finalists. what we want to know is, based upon these four, which stocks move on to the finals? is it going to be apple or
exxon? look at apple shares here, the chart hasn't been pretty over the past couple of months but still, a compelling case to be made there. also, exxon mobil, what's going to happen with oil prices? is that going to have an affect on the trade for exxon mobil shares? of course look at what's happening this with american express and proctor & gamble. make american express bottomed outing maybe pricing in of the costco business being lost will be in the stock already. proctor & gamble shedding businesses, it's a company in transition. now, apple and american express, two of the lower dividend yielders on the dow right now, but exxon mobil and proctor & gamble are two of the heavier dividend payers. we want to know which stocks move on. definitely tweet us. #buythedip. go online to cnbc.com vote as well. just take a look at tweets that we're going to put up for you. tweet us why you think those are. this one here, bk 14875, my selection based on overall valuation has to be apple with dividend increases.
another interesting one, you've got it see what's happening with another one, exxon mobil over cat due to the fact i have no oil exposure, cat bi zichlt is poor, oil close to gbottom. ibm monetize technical assets you have a winner. i think that's what buffett sees. an interesting look to what our viewers think is value in the dow now. >> #buythe dip. lending club, showing better than expected loan origination volumes. the company improving on efficiency and consumer marketing. is more growth ahead this year? the shares are down 5%. joining us first on cnbc, renaud laplanche, he's lending club founder and ceo. good morning to you. >> good morning. >> let's begin with this tussle investors are have with your shares. are you a tech company or a boring old bank? which one is it? >> i let investors decide when they want to think. the way we think of ourselves is
a technology company, online marketplace, a financial service to bring more affordable credit to consumers and small business owners. it's driven by technology first and foremost. technology helping us efficiently at the lower cost and pass on cost savings to our customers. >> you know, the originations looked pretty good for your lending platform, almost doubling to $1.9 billion. by traditional banking standards, that's the growth a lot of your peers would be looking for. when it comes to moving out of that, breaking beyond that, what can you tell investors who say we really want to see the kind of growth that could make you a tech platform for the future of payments? >> yeah, i think growth rate has been much more in line with as if-growing internet companies than it has with banks, over financial services providers. certainly we've continued to raise our guidance.
so we grew faster than we told investors we would in the last quarter. but things are going well. we and confident we can keep up with fast growth. again, raise our guidance for the rest of the year. >> we had you on so many times prior to the ipo and then on the ipo and we have had you on since. it's just not been an easy ride. i wonder whether or not you have second thoughts coming to the public marks. >> not at all. i think as a public company, has been good for our business. and we did i think that has helped really raise awareness for the lending club brand, raised credibility in the brand, the public sees us operate as a public company with a lot of transparency. i think we -- by going public, we are here to stay and we want to build a mainstream company and all of that has been helpful in terms of conversion on our website, in terms of the trust that customers place in the
brand, in terms of partnerships as well. it's all -- overall it's been positive. i'm confident that over time they are good company performance and the stock will converge. >> and again, below that ipo price. well below the 28 or so high. but this is the kind, at least of lending growth, people like to see in the environment. thanks for joining us this morning. renaud laplanche, from the lending club. when we come back, a look at names dragging down the major averages. plenty to choose from. we'll talk about it in a minute. (trader vo) i search. i research. i dig. and dig some more. because, for me, the challenge of the search... is almost as exciting as the thrill of the find.
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markets lower as you know by now. and starting to talk about some technical levels. art cashin points out s&p broke 2087 and the next target in carbon's view, 2063 to 67. going to be closing in 50 more points, you're 1,000 point beez low all-time highs on the dow. >> if the dow were to closed here, a six-month low as well, 17408. out to courtney reagan with more details on the floor the level 0 on the dow 17440. that was the low that we saw in july 27th.
we close below that, that is where we are now, we'll hit a six-month low. what's going on here, we're seeing some big names drag down the dow, chevron, proctor & gamble, both seeing multiyear lows. but break down the sectors, almost everything is negative and consumer discretionary, by far the worst. despite retail news being same-store sales day and retail earnings it's media names that are dragging things down even for the week. look at the week, media stocks, viacom down 26%. 20% for century fox. 19% time warner. down 15%. things only getting worse and accelerating in those names. and then also i want to point out even the russell 2000, small cap names, some are small, fallen below the 200-day level of 1220. another technical level to watch. a lot of moments and levels to watch here as we are
accelerating the dow down 145, almost 146 points or so. >> thank you very much. carl, even just in the last couple of moments here, another gap lower. >> weird action. disney, understandable, obviously the worst performing component today. that makes sense. but leading the dow, and we're talking barely leading the dow, exxon and chevron. and that's with oil trying to defend 44. >> and the dow's one of the three major indexes today that's the outperformer. if you look at price action across the nasdaq, it doesn't look good. russell 2000 small caps getting hit. crude oil, some people looking for some place to buy, it's going to sent a negative signal. goldman, we're keeping target in the mid-40s but risk remain substantially skewed to the downside. you're curious about the lows for the year on crude, keep your eye on 4203. you've got some ucushion there.
that will take you back to march 18th. airlines only hope at this point, transports, we'll see? >> that tells you a lot where we've come from. >> thank you so much for -- >> thank you for having me here. >> see you this afternoon. back to headquarters. scott wapner and "the half." thanks so much. welcome to the halftime show. starting line-up for today, joe terranova here with john na gearian. activist play book from bill ackman's new stake in mondelez to dan loeb's in backster what happen will happen next, whether you should buy on their backs? got junction? someone says the problems in one part of the market are the worst since the financial crisis and how you can protect yourself. we do begin with the dow, trying to avoid its first six-day losing streak since october. and the focus at this hour is on