Skip to main content

tv   Closing Bell  CNBC  April 23, 2012 3:00pm-4:00pm EDT

3:00 pm
the super sized snack measures 80 feet in length and ten inches deep. it said a world record according to guinness. irony alert, in order to get a plate of the nasty nachos, you have to make a donation to a local donation kitchen. love the irony. >> thank you for watching, everybody. >> "closing bell" is up next. see you tomorrow, everybody. >> hi everybody, good afternoon. welcome to the "closing bell." hey, scott. >> nice to see you, maria. in the markets right now, stocks are still lower, though we are off the lows of the day. ongoing eurozone fears weighing on wall street. let's get right to where things this hour. dow jones off 123 points. technology is under pressure as well today as nasdaq is down by more than 1%. s&p 500 is under pressure as well today, maria. >> yeah, a lot of big stories on the agenda today. we have wal-mart dragging things down.
3:01 pm
let's talk about netflix first though. stock down ahead of the company's earning results. investors will be closely watching what the video provider will say about growth prospects ahead. how it plans to rebound from missteps. we are on the net flicks story. also, all day as wal-mart, stock with the worst day in more than three years after allegations of bribery at its mexican affiliate surfaced over the weekend. we will have more on how investors are playing stocks. what's ahead and we are looking at implications. meanwhile, less than an hour to go in trading. let's take a quick look at market themes today. of course, once again eurozone fears weighing on traders today sending the market lower even though we are off of the worst levels of the afternoon as we approach the final stretch. dutch officials failing to agree on budget cuts and a socialist victory if france, casting down on the future of the eurozone austerity measures and that certainly set the tone today for wall street. investors watching apple today. heavily traded will stock now down nine of the past ten
3:02 pm
trading sessions out of the earnings results, all eyes on earning results after the bell tomorrow. some taking note of comments by walter who point out that street may be missing the fact that carriers like at&t are reigning in upgrade offers which could hurt iphone sales. cutting the stock from neutral to a buy back on april 9 and we are seeing money come out of apple after the tremendous run-up. one other thing worth watching today, did it pay to invest in blue chip dividend companies? dow component companies are expected to hike payouts to shareholders by more than 8% year over year and distribute some 107 billion over the next year. of course, we could see a change in tax rates so we are zeroing in on dividend payers and what higher dividend taxes may mean to investors on that front. let's focus back on the eurozone right now. fear is continuing to weigh on the market even though we are off of the worst levels. buzz among traders as we
3:03 pm
approach the countdown to the close, how are they setting up for tomorrow ahead of the next federal reserve meeting and those big earnings results from apple? in today's closing bell exchange, bob along with scott and myself and jonathan, managing partner with meridian managing partners mp jeffrey grossman president of brg brokerage and with all of the action in chicago, jeff killburg with treasury gentlemen, thanks so much for joining us. bob, let's talk french elections and earnings. what is the market looking at here in we know that sarkozy lost the first round and we are waiting to see the result of the second round. >> i don't think there is a problem with the emphasis on growth because holland, the socialist candidates said i want more growth. i don't think anybody has a problem with more growth. i think the problem is they will emphasize stimulus and things. he want it renegotiate mandate for the ecb. remember, bhan date is just inflation. between the change it to the federal reserve here. inflation as well as concern for the economy and for the people
3:04 pm
in europe, that the back door for more endless stimulus from the ecb. i think that's what got people concerned. >> you got to believe that if trance goes socialist, that's not going to be good for france or good for europe at a very critical time for the economy there. >> i think the important thing is whether or not stimulus is going to be endless in europe. that's why the markets are reablgting in a negative way. they won't address the really tough problems about reforming the economy, opening the labor markets up. >> it's the instability of our sarkozy loss that becomes the issue, right? that's what mark set concerned about. >> he is a capitalist. >>? nejer lunds -- >> they know what they are getting. >> in three months in the netherlands, there won't be election until july. so now a government that been wobbly for a while. you see the earnings numbers, they go up day after day. >> earnings are good. >> they will be almost 5%. >> earnings are good but are they good coming out of europe? you know we will see recession number out of places like spain, places like portugal.
3:05 pm
we got them, right? jonathan one say headlines are can continuing to dominate and tomorrow consumer confidence will be key. tell us what you are expecting. >> it seems like we are back to five months ago where every headline out of europe was dictating our market. that's what we are seeing now. i'm surprised our earning season hasn't moved as much as in the past. but so far we are slowly getting into it. yes we see positive numbers. no economic data on the tape today. so that left an lot to focus on coming out of u.s. but we have sales, consumer confidence, it gives consumers something to look at domestically. we will have big names coming out tomorrow, telephone, steel. and apple after the bell. hopefully tomorrow we get the focus back here to the united states. one of the things i think is interesting to look at today is mr. is no real panic selling in the market today. we open low and pretty much stayed on the low ests day until 45 minutes ago. after that, the market slowly is moving higher. when you don't see the market open low an go much lower, that means we found the right price.
3:06 pm
we found the level and the panic isn't there. i have spoken to a lot of different customers and today is a day where they watch the market stay down. from there, we might see buying opportunity later into the week. >> you have wal-mart, uncertainly over apple and we are focused on the fed. all eyes looking at the federal reserve statement. you say treasury yield will keep going lower. >> we talked about this a week ago on the closing bell about being in the hurt locker. we have the latest edition of the collapse of the dutch government. now the potential for the french government to possibly explode everything german. so we will see the yields continue to be a safe haven and i think 1945 low of 1.67 is on the radar. >> you would think that oil dropping would be a positive. jeffrey, energy trade right now, what does it look like with oil down to 103? >> i tell you, we were right on the press pous of really coming offer today. we are down crowding $2 but the gasoline firm and the gasoline
3:07 pm
is the lead eater this time year and gasoline came back. values blew out at about $2 at the end of the day here. normally i would have a normal bearish slam as i usually do. but last hour of action really gave us reason for concern that this market isn't over yet. >> all right, well be watching that. good stuff, everybody. thanks so much. scott? >> thank you. >> among the biggest decliners today, not one stock in the sector is in positive territory. bertha coombs has more on that. >> cot scotty, i've been watching that all day. materials, not huge, but nonetheless, not one stock is in positive territory all day. consumer staples, a couple in there. best performers during the day las been energy. was positive just for a few minutes ago, exxon is the big move to the outside on there. the one dow component that's positive all day. in terms of the materials, we
3:08 pm
have been led lower by gold miners. a also the steelmakers as well getting hit on on that concern about global growth with the concerns in europe and china's numbers not quite as strong as some might have liked in terms of pmi. wal-mart is the big drag in terms of the dow and in terms of the s&p having its worse decline since january 2009. very heavy volume on allegations of widespread bribery and mexico off 4.5% right now. a little bit off of the low ests session. meantime on the earnings front, checkpoint software after beating on the bottom line, following disappointing sales outlook off about 6.5%. kelloggs off as well. apparently we're not eating as much cereal. sun trust among those defying the downward draft. leading the s&p after seeing better than expected revenues and improved credit quality in
3:09 pm
the first quarter and xerox as well. apparently their shift to the service business seems to be moving ahead with more than half of its first quarter top line coming from services. maria? >> bertha, thank you so much. a big rally in treasuries. we are looking at the yield on the ten-year note. rick, rates keep going down, down, down. rick, over to you. >> they do. we are in the same kind of range we were on interest rates the week before the march 13th, the last fed meeting as we are about to begin the next two-day cycle of the fed meeting tomorrow. as you look at the trends, in the the high is 1096. low yield is 190. we are smack in middle of 193. down 3. should we closed, according to my charts, might be the lowest yield close. if you look at the third year,
3:10 pm
312 to 305. where did it settle in 3.12. should 2 close here, the lowest yield close since around the 27th of february. here is an interesting one. certainly the euro currency is reflecting some of the anxiety that is pushed these markes to the where they're at. that's the anxiety in europe. the dutch, new entry into the equation, as their government is dissolving and at 1.3147, certainly it's down, settling around 1.3188 friday. but not down a lot. fewer currency and dollar remain in ranges despite how out of the range activity seems to be going on politically in europe. scott, back to you. >> rick, thanks so much. about 50 minutes to go here before the bell rings on wall street. dow industrials with a down day. s&p 500 and nasdaq also under pressure. >> financials, technology among those groups, really setting this market down. can't forget wal-mart.
3:11 pm
our shares of wal-mart looking attractive after the bribery allegation selloff. we're talking numbers on the largest retailers. >> plus, should you buy or sell shares of netflix on earnings due out in an hour in two have a stock brawl. >> investor reaction from netflix and texas instrument, we will tell what you to expect. >> as we head it break, here is the sea of red in the s&p 45u7b. you're watching cnbc, first in business worldwide.
3:12 pm
3:13 pm
3:14 pm
welcome back to closing bell. brian shackman here at the markets desk. we don't usually do caps here but when one is moving at 30%, it is worth looking at. halting and resuming trading with a strong move to the upside, basically the news is a $35 million investment and it is up 50% with another pop in the last few seconds.
3:15 pm
so that stock is seeing a strong move, scott, in just the last few minutes. >> thanks so much. with about 45 minutes to go in today's trading session, let's take a market stat check for you. weakness in materials, staples putting a drag on stocks today. let's take a look the at worst performers in the material space at this hour. all posting sharp declines today. international paper down about 2.5%. dow right now, industrials trading off session lows. still down .9 of 1%. looking at a loss of 116 points right now. dow did fall 184 points, maria, at the day's low. >> let's get into a stock brawl, shall we? taking the gloves off for netflix. due out with earnings in the next hour. we are anticipating the numbers even though the stock is expected to be low. it bounced back sharply since last summer's pricing fiasco.
3:16 pm
remember that? up nearly 48% since last summer. let's get that momentum growing. subscriber growth is key. as competition heats up in the video streaming business. should you have fios or netflix? we have both sides and we bring in martin of wedge partners, in the bullish corner. taking the other side is barton crock out of bizarre capital markets. gentlemen, good to have you on the program. thanks for joining us? >> happy to see you. >> what is going to drive growth at the company? let's call it for the next year. and two years. >> certainly what you just mentioned, subscribers. everybody is focused on that. they came back with 200,000 plus net gains last quarter. that's good after the debacle of last summer. i'm looking past that. that was a miscue. i think the simple service has a good market for it. it has good content. i think subscriber growth will continue and i'm looking for that over the next year.
3:17 pm
i think they have to challenge how to license premium content but i think the subscriber number through the year will be solid. >> so challenge is licensing that content. but you think there is room to run over the near term? >> right. >> barton, you have a neutral raiding on the stock. >> right. >> what is holding you back from upgrade. >> i think the long-term story is very challenged. this company will face an increasing snowball of competition over the next several years. the number ever places where you can get streaming content will explode. they will come from your cable company, satellite tv company, amazon will step up its content selection. hulu is getting more aggressive, so netflix has a niche today basically the only meaningful source of on-line content. it won't own that niche in a couple years. i think it'll have a good quarter tonight. i think the longer term future is very challenged for these guys competitively. >> good point. they are undercutting everyone else in terms ever pricing, correct? >> right. they are undercutting but that
3:18 pm
creates challenge. if you are undercutting on price, it is difficult to sustain a selection of content that i think will stand out and be a very expansive list of content from other providers. other providers don't have to make money, it can be done by other services. amazon uses it as a way to drive people to their website. cable companies as an extra feature. coin star to drive the dvd kiosk business. >> i think you bring up a really good point. martin, what about that? everyone is launching video streaming from amazon to hbo. what about the point barton makes? what can netflix do to stop customers from leaving? >> it is a valid point. he is right. there is a lot of competition. i would say of those that he mentioned, what i'm most cautious about is verizon partnering with coin star and red box. with premium content with the older library content that netflix has, if they put money into it, that's a challenge. i think the bottom line for netflix is a strong brand,
3:19 pm
value, brand recognition and so forth. they have to spend carefully. this is a company that can't afford to, waste money and make more mistakes in my way. >> martin, bottom line, are you putting new money to work in netflix right now? ahead of the numbers? you want to do that? >> no, i have it say we don't officially rate stocks, period. but i think if you are looking at this for the rest of the year, into 2013, i think it is a more positive than negative as far as what is going on with the company. >> all right. we leave it there. gentlemen, great conversation. we appreciate your time tonight, see you soon. scott? >> maria, thanks. let's get out to kate kelly with breaking news on facebook. facebook is making a deal with patents with microsoft today. is this that news or something different. >> well this is different. we should touch on that as well. there is a filing in advance of ipo where they have to give financials that are updated as they go along pt q1 revenue is $1.6 billion.
3:20 pm
that is soft compared to what analyst were looking at. analysts were looking along the lines of 1.3 billion. that is up over the year so pretty good growth despite the softness relative to what people were looking for. down a quarter of 6%. one other thing, monthly users, 901 million. that's up from 845. good picture even though revenue was not as robust as expect, scott. >> all right, kate, thanks so much. so facebook making a good amount of news, blmaria. with 40 minutes before the bell rings. >> most actively traded, is it an opportunity to go bargain shop org is this stock going further down? then courtney reagan looking at potential fallout or wal-mart customers. court? >> most analysts i'm talking to think the selloff will be short term. i'll tell you why coming up on the "closing bell." my mother froze everything.
3:21 pm
3:22 pm
i was 18 years old before i had my first fresh bun. the invention that i came up with is the hot dog ez bun steamer. steam is the key to a great hot dog. i knew it was going to be a success. the invention was so simple that i knew i needed to protect it. my name is chris schutte and i got my patent, trademark and llc on legalzoom. [ shapiro ] we created legalzoom to help people start their business and launch their dreams. go to legalzoom today and make your business dream a reality. at, we put the law on your side.
3:23 pm
welcome back. pretty good sell off on wall street today. part of the reason, wal-mart shares down almost 5%. the story everybody is talking about down here on wall street, the allegation of massive wal-mart bribery scandal in
3:24 pm
mexico. the news weighing heavily on the stock here and in mexico and took a toll on mexico's stock market. from wall street to main street, what people are saying could impact the company's business going forward. courtney reagan in new jersey right now looking at that angle. over to you, court. >> good afternoon, maria. the competition here a wal-mart is different. most shoppers weren't aware of allegations. once we told them, the common theme was fairly similar. they said, they're not surprised. and in fact may want it shop elsewhere for other reasons but the low prices keep them buying here. and the heart of any retailer success is sales growth. while shares are tumbling today, many wall street analyst say as long as key u.s. same store sales continue to grow wal-mart could get a pass from investors. patrick mckeever says there is no impact on the company but a management shakeup could be potential live disruptive to the
3:25 pm
trends. and does it make it more attractive international? many ak acknowledge it could be an overhang but so far no cuts are made as a result. in fact believing it is a thorough and transparent review and recommends buying on the weakness. but one thing that is the same for most analysts, saying these allegations will certainly bring trust issues, more questions and even further potential investigations to light in some of wal-mart's other foreign business units. >> scott, over to you. >> thanks. could this selloff be a great buying opportunity for the retail? let's see what charts say. let's start talking numberes with chief market technician al oppenheimer. we know what the papers are saying, what are the charts saying about wal-mart? >> weakness to take advantage of or stay away from? >> sure. >> well look at the chart and try to define that together. what is important here is the
3:26 pm
gaps. today's gap is news related pap big drop, not good. look at the gap, just a month or two ago. in fact, monday, february 21st. heavy volume, 30 million shares. stocks that show drops and gaps like that, news related, whether it is news that you think is right or not right, is typically an good thing. so this is weakness we would not take advantage of, we would stay away from. >> you say if the chart looks unattractive, did it look that unattractive before the news broke? >> no. well, there are two things. again, that's the point here. drop in gapping, it is opposite, stocks that surng on good earnings or good news, approval or product announcement, stocks that have bearish price line correlation twice in two months like this, never good. here is the long-term chart which speaks to something what is not so inspiring. >> right. this shows dead money. >> i think this is where money goes to die. exactly. look the at range this thing has
3:27 pm
been in. what do you do with that? i would say leave it alone. >> so you say long-term prospects aren't that good either? >> yeah, talk about expansion of the multiple. compression of a multiple, now probably fair money, dead money. >> good to see you as always. carter worth chief market check nation at oppenheimer. maria? >> thank you, scott. we have much more ahead on the "closing bell." take a look at dow industrial. up next, how to protect your portfolio in case head winds from china continue to weigh on this market. and much more on the wal-mart bribery allegations to come. >> i'm michelle caruso-cabrera in mexico city. markets have been closed in the wake ever allegations of widespread bribery. >> michelle will be back to you live as we take a break. take a look at the red wall. a few in the green today. travel is now flat. back in a moment on the "closing bell."
3:28 pm
tdd# 1-800-345-2550 we're hitting new highs. tdd# 1-800-345-2550 and i'm on top of it all with charles schwab. tdd# 1-800-345-2550 tdd# 1-800-345-2550 i use streetsmart edge and its tools like... tdd# 1-800-345-2550 screener plus - i can custom build my own screens tdd# 1-800-345-2550 or use predefined ones. tdd# 1-800-345-2550 and i can trade wherever i want, tdd# 1-800-345-2550 whenever i want. tdd# 1-800-345-2550 the kicker? tdd# 1-800-345-2550 i pay $8.95 a trade. tdd# 1-800-345-2550 that's a deal in any language. tdd# 1-800-345-2550 open an account tdd# 1-800-345-2550 and trade up to 6 months tdd# 1-800-345-2550 commission-free. tdd# 1-800-345-2550 call 1-866-393-6174. hey, heard any updates on the game? i think it's final seconds, ohh, shoots a three, game over. so two seconds ago... hey mr. and mrs. harris, where's kevin? say hi kevin. mom, put me down. put...the phone...down. hey guys. did you hear... the choys had their baby? so 29 seconds ago. well we should get them a gift. [ choys ] thanks for the gift! [ amy and rob ] you're welcome! you're welcome! [ male announcer ] get it fast with at&t. the nation's largest 4g network. covering 2000 more 4g cities and towns than verizon.
3:29 pm
at&t. ♪ mine was earned off vietnam in 1968. over the south pacific in 1943. i got mine in iraq, 2003. usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection, and because usaa's commitment to serve the military, veterans and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve.
3:30 pm
3:31 pm
3-1 declining, not great but concerns of french elections means less willingness to tackle europe's fiscal. not far from the highs for the day. i know people are complaining, vicks are over 20 but don't look at the future, they aren't really moving that much. not a big move considering the french elections with less panic out there. semi conductors, two big namees. after the close, texas instruments and st micro. guys, back to you. >> thanks, bob. as bob just touched on, off the low ests day. but with global head winds, how can investors protect their portfolios. >> we have chris with us from u.s. trust. brian belski from bom capital
3:32 pm
markets. thanks for joining us. chris, let me kick it off with you. we know the head wind is out there and add oil prices to europe, to a slow down in the global economy. do you want it take to the side lines or put money to work in this market? >> really a little too early to put money to work. mostly likely down to the 12, 1300 level. that's consistently where flows were coming in at the beginning of the rally, somewhere around january, february of this year. with no new liquidity in the market by the central bank or federal reserve, people will slide backward here. >> good point to make. brian, what it will take to get sideline cash put to work? everybody is just trying to protect their assets rather than find some yield. >> people, we think, maria, will start putting money back into the stocks once stocks continue to go up. it is really the consistency of returns. for all intents and purposes the last couple three years have been very volatile and it is not positive enough in terms of having consistency for people to
3:33 pm
really feel about he reasset allocating out of bonds and stocks. just because we put up descent numbers year to date, that's quite frankly, not enough. >> you have been among the more bullish strategist on the streets, are you as bullish as you have been? do you look at europe and concerns in china and change your folk us a little bit? >> we have strategy coverage with the 1425 target for s&p 500 for this year. we are saying highs are in place. you know, in terms of the relative degree of bullishness, last year was so easy to be bullish in the beginning of the year and scared during summer and we maintained our forecast all of that year. you have to be consistent for the longer term, meaning the next three to five years, we think we are on the press i pous. >> are expectations out of control here? is it just too much built into this market? >> that's partly for the 12% rise that we saw at the 1422
3:34 pm
level, without any regard for the policy phase which is what we are just about to head into. may through early august will be all about policy and that's why you will get into this constant consolidation and back filling sliding down potentially to 1320. as brian said, the next three years, if you travel across the country you see real job growth in small business size companies not picked up the "globe" al spectrum that will be the story for the next few years. >> one thing we are focusing too much on is the investor looking at the absolute invefrtor or growth. quality of earnings are better than they have been in several years in terms of operating efficiency of companies. that's why the believability factor of earnings is as strong as it's been in several years. >> 80% of s&p companies topped expectations but perhaps the market isn't giving earnings the kind of credit it should. expectations coming into earnings came down so much that it makes the beats look better than perhaps they really are.
3:35 pm
is there anything to that? >> i think if they put anything out there, maybe 98 to 100, somewhere around 14 is right. then you have to figure out what is the policy discount on top of that, both policy premium or discount, depending on what happens over the summer and i think can you go between 13.5 and 14.5 times. >> all right, pol policy question. if the bush tax credit expire, are gains higher or income across the board or do we have a stock selloff? >> you almost get into a recession focus. you good down negative 3.5% gdp of the year if it sticks through it. we will see what happenes with lame duck congress but to allow that would be negative for equities. >> we will leave it there. gentlemen, thank you so much. we will get to brian shackman. he has breaking news. over to you, brian. >> on the heels of the facebook, take a look at the chart. i see a pop stock still down
3:36 pm
today but way, way off the lows. look that move there. that's when the news of the s1 came on. i want to share something people, it says quote in 2011, q1 of 2012 we estimated up to 19 and 15% respectively of revenue was from payments, processing fees from zynga, and revenue for third parties from ad pages on zynga aps. if they do not maintain engage many or if we can't maintain our relationship with znyga, it could be harmful. zynga a big, big part of facebook. back to you. >> thank you. now julia with more on facebook. >> yes, just digging into this s1 here spot, it is worth pointing out that while revenues are up from a year ago quarter they are actually down sequentially. from q4 to q1, revenues are down in first quarter. 1.06 billion. now looking at other numbers,
3:37 pm
the company has been growing. adding about a thousand employees over the past year. ending the first quarter with 3,539 employees. from 2,431 a year earlier. looking at the insta grak acquisition there are more details about the billion dollar deal. that billion dollars breaks out into $300 million in cash and 23 million shares in facebook common stock. another interesting detail about instagr instagram, there is a $200 million break up fee. the growth facebook is reporting in s1, its monthly active users are up to 091 million monthly active users up from 845 million in the last filing. for the first time facebook says how much those users are worth. saying the average revenue per user is $1.21. that's increase of 6% from the first quarter of 2011. back over to you. >> thanks, julia.
3:38 pm
julia out in lax lks. dow jones industrial level, off with the worst levels of the day. nasdaq also off its worst levels. >> our next guest is saying this selloff here, big buying opportunity. find out why he believes we are on average for a new high of all averages. >> all eyes ready to may attention to netflix and texas instrument. our team standing by to break down the numbers at the top of the hour. >> as we take a break, see the s&p. lots of red on your screen. back in a moment on "closing bell." first, before we go to break, the dividend tp which stock is underperforming so far this year? best buy, good year tire and rubber or yahoo!? the dividend pays off after the break. look, every day we're using more and more energy.
3:39 pm
the world needs more energy. where's it going to come from? ♪ that's why right here, in australia, chevron is building one of the biggest natural gas projects in the world. enough power for a city the size of singapore for 50 years. what's it going to do to the planet? natural gas is the cleanest conventional fuel there is. we've got to be smart about this. it's a smart way to go. ♪ [ male announcer ] while others are content to imitate, we'll continue to innovate. the lexus rx. why settle for a copy when you can own the original? see your lexus dealer. what ? customers didn't like it.
3:40 pm
so why do banks do it ? hello ? hello ?! if your bank doesn't let you talk to a real person 24/7, you need an ally. hello ? ally bank. no nonsense. just people sense. feeding your lawn need not be so difficult neighbors. get a load of this bad boy. whoa. this snap spreader system from scotts is snap-crackin' simple -- just snap, lock, and go. [ scott ] feed your lawn. feed it!
3:41 pm
just before the break as part of the dividend, we asked, which stock is underperforming so far this year? best buy? good year tire and rubber? or yahoo!? now the payoff. good year tire and rubber. which is wiped out more than 20% of its value year to date.
3:42 pm
>> welcome back. as tech stocks slide volatility continues to move higher. nasdaq indem for the first time in a year is trading above the vix. a lot of technology can be expected. now apple of course, sharp, correction, adding to that implied volatility. other losers for today include high beta momentum names when risk is taken off the table, these stocks sell off first. take a look at first solar, also getting hit by a downgrade. guys, first solar shares trade at 4.9 times sharp discount to average for renewable energy players. >> thank so much. time for a quick market stat check. check out the volatility index which hit a high above 20 this morning. the vix is off the levels just above 19. hasn't settled above 20 since
3:43 pm
back on april 11. among the worst performers, checkpoint for solar. baidu reports earnings tomorrow and netflix posting earnings after the bell. netflix has the results after today's close and we will be all over that for the instant reaction once they are released. nasdaq composite dipping back below 3,000 again, on course for the worst drop in over a week. right now the nasdaq is down by just about 1%. now let's get more on facebook and the breaking news we have been talking about with kate kelly. kate? >> thanks, scott. to just pouring through the s1 filed within the last half hour or so. with a a lot of interesting nuggets i want it draw your attention to. advertise net income also down slightly versus a year ago. latest number is 205 million versus 233 million aier ago. and 302 million last quarter. seasonality, we're told, is part of the reason for the dip. a couple interesting things
3:44 pm
about the groaning areas. brazil, india and u.s. were key growth places. internet areas like china, chile, turkey and venezuela estimated 85 or more percent. the latest number for daily active users, scott and maria, is 526 million. >> kate, thank you so much. kate kelly with the latest there. watching the developments on facebook. of ahead of that ipo, market under pressure partly due to wal-mart. putting pressure on the dow, s&p 500. as we approach close, down about 102. there is the dow down 102. s&p down 11 point. both indexes down about 1% because wal-mart is down almost 5%. cnbc market analysis peter costa with me. he is looking at the flow and has more info. you say major averages are likely to hit all-time highs in the next three months.
3:45 pm
>> i love to say this because i do think we will touch the all-time highs. >> okay. >> i don't think we will break through them. i think we will see them. if you look at today, today is not a good indication of it. but overall, consumer confidence is rising a little bit. you have to wait until the gdp numbers come out thursday. that could put a crimp in my plan. but i think that markets, there's a lot of money sitting 07b9 side lines. >> absolutely. >> this money is looking for a home and at some point during the next two or three months, they have to put it to work somewhere. >> you see, i don't necessarily want it hear predictions but what i want to hear is exactly what you are saying. you are in the middle of it all. you are seeing the flow of money. where is the conviction? where are you seeing buying interest. >> buying is still in big cap stocks. whenever they see a market like this, where it is down 150 on the opening, that's where they get involved. they are looking for dips and putting institutional money to work. it is not a significant amount. an huge amount of money but they are dipping their feet into the
3:46 pm
bigger cap naps again and looking also for the other part of it. the dividend play. . >> yeah. >> that's driven by customers, more than investment strategy. i think the customers are saying, we're not getting return anywhere else, let's put it to work where we get a return. >> how much of an issue is the fact that dividends taxes may go higher? triple by the end of the year, if in fact the bush tax cuts are not extended. are you hearing this from your customer base? >> i tell what you i'm hearing, not hearing it from my customers. i'm hearing it from my father who is very interested in that because that's what he relies on. you will get into a political discussion with this, but i think that's a very, very scary thing for a politician to start mentioning that. because there are a lot of people that rely on, you know, the dividends that they receive. and i think that that -- i don't think you will see that. i've heard it. >> you don't think it can can happen. >> no. >> you think they will come up with a deal. >> there is just too much political firepower behind something like that.
3:47 pm
capital begins and dividends. >> that will cause a selloff. i know you will be watching apple -- >> and so will everybody else. >> thanks. scott, over to you. >> on wall street with less than 15 minutes to go here. hanging ton losses. dow jones down by triple digits, 103 points to the down side. nasdaq down about 1%. up next, bertha coombs rounds up today's under the radar stocks. >> that's right, scott. a couple of stocks that are defying trend. one in biotech, one in energy. i'll tell you what they are when we come back. i build them. i am a bigger is better kind of guy. i absolutely love building locomotives. i knew i wanted to design locomotives from when i was very young. [ jahmil ] from the outside it looks like such a simple device. when you actually get down into the bare bones of it, there's so much technology that's submerged. [ rob ] my welds are a signature, i could tell my welds apart from anybody's. you lay down that nice bead
3:48 pm
and you look at it, i love it. they don't go together by themselves. there are a lot of little parts, and everyone has their job. [ scott ] i'd love to see it out there on the open tracks. and when i see it, i'm gonna know that i helped build that thing. [ train whistle blows ] here she comes! [ bell clanging ] [ train whistle blows ] wow! [ charlie ] well, it's one thing seeing them built, but then to see them out here, pulling freight across america, it makes us proud. ♪ introducing gold choice. the freedom you can only get from hertz to keep the car you reserved or simply choose another. and it's free. ya know, for whoever you are that day.
3:49 pm
it's just another way you'll be traveling at the speed of hertz.
3:50 pm
welcome back to the floor of the new york stock exchange. here, we are talking about tnc, that is the tenant company. tnc posting the worst drop at nyse today after reporting first quarter earnings, well short of analyst estimates. minneapolis maker with an equipment of $800 million market cap. first quarter sales are disappointing because of credit tightening in europe. the first quarter is seasonably the company's weakest. he said he sees improvement at
3:51 pm
its business in the americas and ordering growing momentum in strategic accounts overseas. today's drop is tenant's 52-week gains to about 2%. maria? >> scott, thank you so much. i just got the end of day market orders. and it looks like we have a leaning to the sell side. about half a billion dollars right now, or -- sorry, 587 billion, half a trillion here and sales orders coming in, in this market as we are 10 minutes to the close. wal-mart pressuring this market today. stealing the headlines but there are a number of stocks under the radar. let's get to it, bertha coom th ofs bertha coombs names them. over to you, ber that. >> thank you. biosciences leading the russell 2000. a 54% premium, most advanced trial right now, is for a drug
3:52 pm
to combat euric acid. barnes & nobles, taken a nearly 12% stake in company shares p. up nearly 20% on the day. meantime, sonuku, this is a big story in the northeast, in the talks with carlyle group to sell a majority stake in its philadelphia refinery. sunoco says it'll keep the 330,000 barrel a day refinery open through the end of july. it had been slated it close july 1 if they didn't have a deal. this deal, if it goes through, would certainly impact drivers on the east coast, guys. one to watch carefully. because closing that refinery will put a lot of continued pressure on gas prices in the north easter. maria? >> bertha, thanks so much. we have a short break. when we come back, the countdown for you.
3:53 pm
minutes from netflix and texas instruments, we will break down the numbers after they are released and tell you how they trade after the info. how we are trading as we approach the close, about 8 minutes until closing bell. [ jane ] how did i get here? with determination. courage. and all the points i earned with my citi thankyou card. [ male announcer ] the citi thankyou card. redeem points for travel on any airline with no blackout dates. a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms. but if you have arthritis, staying active can be difficult. prescription celebrex can help relieve arthritis pain so your body can stay in motion. because just one 200mg celebrex a day can provide 24 hour relief for many with arthritis pain and inflammation. plus, in clinical studies, celebrex is proven to improve daily physical function so moving is easier.
3:54 pm
and celebrex is not a narcotic. when it comes to relieving your arthritis pain, you and your doctor need to balance the benefits with the risks. all prescription nsaids, like celebrex, ibuprofen, naproxen, and meloxicam have the same cardiovascular warning. they all may increase the chance of heart attack or stroke, which can lead to death. this chance increases if you have heart disease or risk factors such as high blood pressure or when nsaids are taken for long periods. nsaids, including celebrex, increase the chance of serious skin or allergic reactions or stomach and intestine problems, such as bleeding and ulcers, which can occur without warning and may cause death. patients also taking aspirin and the elderly are at increased risk for stomach bleeding and ulcers. do not take celebrex if you've had an asthma attack, hives, or other allergies to aspirin, nsaids or sulfonamides. get help right away if you have swelling of the face or throat, or trouble breathing. tell your doctor your medical history and find an arthritis treatment for you. visit and ask your doctor about celebrex. for a body in motion.
3:55 pm
in your fight against bugs. ortho home defense max. with a new continuous spray wand. and a fast acting formula. so you can kill bugs inside, and keep bugs out. guaranteed. ortho home defense max. like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering, web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account.
3:56 pm
time know for the closing count. i will show you what the major averages are doing because we have finally broken the triple digit loss for the dow industrials. just a down day. sea of red. industrials are week, cyclical stocks, technology is weak today. you can certainly see that showing up in the nasdaq which is setting down about 1%. nasdaq off 11 point. economic and political concerns over in europe, growth concerns in china are certainly weighing on the market today. and look, very much of this has to be a wal-mart story. wal-mart's drop is having 21-point negative impact on the dow jones industrial average. if you take wal-mart out of equation, you have a dow down 60, 70 points.
3:57 pm
wal-mart is having a terrible, down almost 5%. bribery and cover-up allegations weighing on the stock today. we turn our attention to after the bell today. one of the most talked about stocks has to be netflix. the stock down sharply ahead of the numbers. it'll be closely watched when the numbers do come out and we will be all over that report and instant analysis with the closing report. . another down day but again after the bell tomorrow, in a closely watched report. let's walk back over and talk with brian belski, first official day at bmo capital markets as chief market strategist? or senior -- >> how about chief investment strategist. >> okay, where does the chief investment strategist on his very first day at bmo go? >> we really think that, that as the bond market unwinds, u.s.
3:58 pm
stocks are by far going to provide leadership over the next three no five years. the market's gotten ahead of it self, so far year to date. there is a good clans we have seen the high for the year but that should be dissuade you from buying stocks for the long-term. as we tell people, invest. >> what kind of stocks do you want it buy? we had the dan from the fe dellity fund on today. he doesn't do a lot of interviews. he was fairly bullish. he likes rest restaurant, retailers. yes, he has his eye on europe. he thinks stocks with a u.s. focus are the place to be. do you agree. >> yes. quality, transparency and consistency are fundamental. it could be consumer staples, technology name, but the three sector that we favor are technology, industrial and consumer staples. >> what makes you focus on that? everyone focuses on a daily basis on what apple is doing. >> daily fluctuations in tech are no different than what we have seen the last 20 years.
3:59 pm
>> but in the last week or so, there have been questions that maybe tech is ready to roll over. >> right. but from a fundamental procedure, you have to remember that tech is for all intent of purposes the poster child of what we have seen in america the past 20 years. great balance sheets, using cash as a weapon. coming up with new dividends. buying back stock and new companies. >> what would you avoid here? >> i think healthcare, utilities -- >> staples? >> staples are moof a longer te area of international health but also great u.s. companies as well. >> at what point do you become concerned with europe? how bad do the headlines have to be for you to rethink strategy. >> for all intents and purposes we haven't add test. europe is quiet. if we see default from countries, then we will worry. >> brian at his first official day at bmo capital. glad you spent that first day with


info Stream Only

Uploaded by TV Archive on