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tv   Fast Money Halftime Report  CNBC  August 13, 2012 12:00pm-1:00pm EDT

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how handsome congressman ryan is. dow's down some 80 points. market not rewarding the pick, but, of course, a lot else going today. that does it here. let's get back to hq and the fast time money report. . welcome to halftime today. here's where we stand. a little bit of a giveback here. down and nasdaq and s&p in negative materials. here's what we're following on halftime. betting with the bulls. legendary market walker jeremy segal sees dow down 15,000 by the end of next year. he'll tell you how we get there. apple versus google. google gets a big upgrade. is it beater bet right now than apple? the traders will trade that. we're trading all that with.
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what does the duo mean for the markets and your money? steve grasso. jared bernstein is the former chief kmeconomist for vice president biden. how would they look if they're looking for some pop on the street, they're not getting it. >> to think we're going to get it right off the bat, there's so many things we have to weigh in on. i don't think the american population is going to make their decision until they see an actually debate. seeing these men sit down face to face, hearing their storying, but i will tell you i don't think there's any person in the u.s. congress who is able to portray the right side of the opinion when it comes to fiscal cliff better than paul ryan. so i'm happy that governor romney made this choice because i think it brings everything to the forefront. >> let's also let everybody know, i know you've met with the
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congressman on many occasions, you're an ardent supporter. how do you think? >> it's too soon to tell but some nervousness about two keyishes that ryan brings to the table. one is deficits and the other is growth. i know he has street credit as a fiscal hawk but it's totally undeserved. does he actually get into the guts of his plan. it's a big deficit increaser and if you look at the growth side it's pretty dismal. so based on deficits and growth, i actually think the markets may be making right call today to go into negative territory. >> grasso? >> we have to go on what we know already. we know that president obama has raised government spending as a percentage of gdp to record levels. romney/ryan ticket i think is going to be mored on the private sector. i'd rather have a ticket that
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brings us a private sector than a president who brought us solon da, housing effects, subsidies on ethanol. there's so many issues here. i'd rather let the private sector lead and i do understand jared is on the total opposite side of that. >> grasso, how do you reconcile the fact that paul ryan voted against simpson-bowles and he was on that commission? >> you have to look at everything. as far as politics go, there are a lot of different things and nuances in a lot of these different commission statements, so you might agree with 90% of it, but 10% is not worth leaving it on the table, so you have to really drill down to what it was that he didn't agree with that he wanted to put his own stamp on it. >> guys? >> so look. here's the thing. i suns invoking the private sector. i think the attack on the president is unfair just because of the depth of the recession and stuff he had to do. but here are two numbers e'd like you to keep in mind and maybe respond to.
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one is that not only representative ryan and romney, both of them, support extending the bush tax cuts permanently but they also double down and add another $4.5 trillion in tax cuts on top of that. then you look at the only way -- they want to increase the fence. the only way they're going to get there is if they massively cut the heck out of everything else. when they get down it to. everything else is stuff people tent to like, even tea parties, medicare, veterans benefits, fbi, border control. a lot of things like that. research on disease. so theoretically you can say, aye, i'm all for the private sector, but in reality you're looking at the same time. supply side trixle down that hurts growth and leads to much larger budget deficits. >> the only thing, jared, i'd counter that with is we don't know if the cuts are going to take place right now. to say it doesn't work, think it's become a derogatory term circle down. but coming out of ronald reagan, it's led to the longest run of
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the bull market place and the most explosive growth this country has ever known so i think it's disingenuous to sate doesn't work. obviously the term is derogatory. >> i guess i should say i don't mean it derogatory -- actually i do, so i don't want to hide behind that. >> just real quick, having said all that, if you're on the other side of that where you look at stimulus dollars having a multiplier feegt, why on ertd would we ever stop with stimulus dollars? we'd just keep them going forever. >> jared, i want to bring in some of traders who are trying to get a grip on the news today and over the weekend as well. stephen weiss making a living based on policy. >> i don't think it's a referendum either way on the romney/ryan ticket. it's purely the fact that negative china news came out over the weekend and has been coming out for the last week that you've about got the greek bond payment due on the 20th. so i don't think it's any
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referendum. ly tell you the people i talk to on the street, some very, very significant money managers both on the loan-only side and thej fund some who had been obama supporters are uniformly against obama in this election, thinking he's bad for the economy. they're all willing to a person to pay more in taxes. they just want to be sure that it's going go into the right place. so it's not the rich getting richer. >> jared, let me just add to that. you know, this does -- this pick of paul ryan, it absolutely focuses the debate squarely on the economy now. can the -- does the president have a problem running on his record in terms of the economy? >> you know, i've spoken to business folks who express the same views you just heard and i've tried to understand them, but a couple of facts for the case. first of all, if you actually look at how the market itself has done, if you look at corporate profits, they've done
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extremely well under the president and, in fact, much better than the middle class has dub, so i always find that a bit of a head scratcher. i understand things like regulation, let's say dodd/frank. that's something that romney and ryan would appeal and oppose and a lot of people don't like that kind of oversight, but the fact is we need it left to the wrong devices it codo that. i probably agree with the idea that any one day is not a referendum. if they took a longer view in terms of deficits and investments and productive infrastructure, you're never going to get that from them. >> jarrett, you're the guest -- >> real quick, the reason the operations have been looking good, jared, is corporations looking into the abyss of obama care and looking into the abase of what stimulus is coming next and what tax policy we're going to be seeing we're forced to drop a lot more people. it's not necessarily better
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iffer the economy. >> jared, quick will i the last word. >> one factual point. you keep talking about stimulus. stimulus is fading. it has largely faded. it's a fiscal drag on the economy now. we're doing less and less of it consecutively every quarter. >> jared bernstein, thank you for your time. steve grasso, enjoy the rest of our vacation, we'll see you soon. >> i think it is great pick because i do think that it's going do be about the economy, and i think a lot of folks -- jared is a very smart man so this is not meant to slam him, but when you're focused the stock market versus the economy, this is two different things. many say the stock market is leaning toward the economy and is looking forward. what we look at right now when you take something like the xls which just got a flood of money from the t.a.r.p. and a number of other programs, it's not surprising to see the market
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turn around but the feeling that the middle class has and the lack of that extra spending power that they've gone in their pockets rm that's something that's going to be dragging in the election and work zbemts the president and with ryan add romney, it's theirs to lose now. if they can't make it strongly enough to create jobs, the president has proofrp he can't. it's not like he was beating obama. >> i think he -- i when you take look at the things like the young folks who voted obama in the first term, don't think those folks are having a very easy time at all trying to find jobs and think a lot of hispanic and african-americans are also having a very tough time with record unemployment in those groups. so i think a lot of those guys, i'm not kidding myself that they're not going to vote for ryan and romney, but i don't think they're going to come out and support the president raich they did.
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>> scott, i spent some time yesterday with a good freptd of mine who had some one-on-one time with romney last week, and before ryan was nominated -- of course, romney knew who he was going to police on the ticket, he said it's going to be all about the economy, the jobs, stay away from social issues, only responding to questions and that's why it goes more into their favor because that's what's important to the mom and pop -- >> what i want to know, stephanie, is whether romney/ryan is good for the stock market or not. >> i think they do. thank are a good team for the stock market, particularly when you look at the corporate tax policy that they're talking about, so that should stimulate jobs. and i think also the repatriation of capital is under appreciated right now. it could come back in the form of buybacks, in the form of dividends and m & a activity. i think that's a positive for
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the market. >> joe terranova quickly. >> i wouldn't touch any of the name, the civilian aviation names. i think in argument we're going to have about the budget in the next couple of months is going to bring us closer toechlgt we're going to have to memd whoever wins, a lot of bruised egos and i think if we see qe3 embarked upon in september it will be very interesting to e soo what the action is. >> okay. the s&p trying for its first seven-day win streak in about six years. what's behind the market melt-up? we'll get some answers from jeremy segal, the mega bull when we come back.
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google and apple both having strong days even and google plans to lay off 20% of its motorola mobility unit. instead investors are paying attention to the upgrade google got from morgan stanley. that i say that stock option
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office a 20% upside. what do you think about it? >> i do like it but i think if you look at it over time it still shows you apple's the pick of the two. apple's got a bunch of new product coming to market. we no at least one of them, september 12th, which, by the way, happens to be the same day the german court is going to be listens to the lawsuit filed by efs. but let's focus on this one first. as far as google, what have nay got? the nexus coming out? i don't think that's the big iphone killer. at this point, if you want to draw a line in the said and, i'll take apple every day versus google. >> do you think apple's run its course and google is getting a little bit of the sun? >> no n. i think you buy up until launch. i don't look at google as a tech model. i look at them as an ad model. >> googlethe s&p 500 has klein
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climbed 9%. jeremy segal, profoefrs fin at the wharton school of business says the dow will hit 15,000 by the end of 2013 and could go much higher than that. professor segal joins us live from philadelphia. sir, it's good to see you. >> good afternoon. >> why have we had -- we've been talking a lot on this program about trying to solve the market mystery if you will. this recent run that you've had that have taken shot with a 4 1/2-year high. how did we get here and why are we here on the dow? >> i think there's three important factors. certainly one of them was a mario draghi saying we're going do what it takes to prevent a blow-up of the european exchange mechanism, the euro, and in particular the banking system.
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there's less anxiety about europe. now, their long-term problems are still very serious, but certainly short term there's less anxiety. the second factor is second quarter earnings have come in very good. i knew they fell short on revenues but bottom line, what determines value is those earnings and they did. and then a third factor, which i think is underestimated. is the recovery in the housing sector? i mean i think the evidence is now under deniebl and that really the sector that caused the crash to begin with, the worst performance of housing since the 1930s directly or indirectly, 25 to 30% of gdp is tied to that housing sector. and think we're finally seeing the rumblings of a real recovery there. >> you think the stock market keeps running here?
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>> i think it definitely can keep running. we still have that fiscal cliff which is, you know, getting closer and closer, and if we come to some agreement, you know, not -- there's not going to be an agreement on what type of ultimate reform we need, but at least an extension of the current tax cuts just even until the middle of next year, thing there could be an explosive increase in stock prices. so i think they could work their way up from this position. but until we get some settlement on or extension on the fiscal cliff, i think those gains will be muted. >> professor, stephanie link has a question. she's won f the traders on our show today. >> in terms of earnings, since we're a mundane growth at this point do you see for the market to get higher, that kind of implies maybe you're thinking multiple expansion. is that right and what would get us that multiple expansion to get us higher? what is behind that? >> well, i think -- and you're
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perfectly right. first of all, current s&p is only selling at about 13, 13 1/2 time this year's earnings. only 11 1/2 and 12 times next year's projected. that's low on an absolute scale. but what is very important and this is what can give us that multiple expansion is the extraordinarily low interest rate. so as alternatives. my research shows when everything is low and moderate, anything at 7%, 8%. actually earnings are 19, well above our current level. that's what could give us expansion. if it's a little less anxiety on europe which i think is happening, get some settlement on the fiscal cliff we could see that expansion 16, 17 or higher earnings. >> professor what sector of the markets will carry us through the explosive pop that you think is likely in stocks? >> i think it could be all of them. even in the much aligned financials, if we really do get
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a housing recovery, i mean think of what that would mean for the financials because all the mortgages and loans they still hold against housing, the market is discounting those to 50 cents on the dollar. they may actually be worth 60 or 70 cents on the dollar. if housing really improves, think we'll see some shine there in the financials. >> finally as someone who's seen a lot of markets and administrations come and go, how do you think wall street should view paul ryan today? >> well, i'm very pleased with the choice. it's real substance. i mean long term those deficits -- i think what i like is ryan was the person that identified the fact that it is medicare. it is medicare that is the source of all those multi-million-dollar deficits down the road and he's trying to do something. you know, it takes guts to tumble the third rail of
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politics, which is medicare, and i think the choice is a bold one and a good one. >> professor, great pleasure to have you on the show, thank you so much. jeremy segal from the wharton school. stephen weiss? >> i agree with everything but the ultimate target. >> 15,000 is too lofty? >> i think so right now. i think you've got more than what draghi is saying is you've got the roadmap to get there. the longer you put it offer, the higher the market goes, plus you've seen a lot of short coverings. noib wants to be short in front of jackson. >> joe terranova, 15,000? >> i don't know. it sounds to me like professor segal is feeling the need to be far more active in the marketplace which is something on the show we've been talking about if many years. >> what do you think about his call for the financials that that could be the sector that get use there? >> i think it will continue to lead the market higher. >> stephanie link? >> yeah, we like financials.
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definitely on the housing theme. but also because their balance sheets have gotten so much stronger and they are starting to lend again. i don't know about 15,000 on the dow, but i can say that given the macro environment and the global macro policies around the world, i think thats up very positively going forward. >> dr. j., am i hearing that? >> to professor segal's point as far as where the treasuries were, judge, back in 1987 you were getting a 5-point differential. now you're looking at them trading like this. that's awfully cheap and that's some of that boost that he's talking about, so i agree with professor segal 100%. >> let's do pop asnd drops now, the biggest movers at the big day right now. international paper popping 3%. stephanie link. >> they upgraded the
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containerboard group. container prices are moving higher and they're sticking. inventories is very low and this industry has draw maddicly cut production. i like that. >> w.p., that's well point and it's dropping. >> she's under some extreme pressure even from our pressure lee cuberman. they had hoped she would be pushed out. that's not happening right now and that's why the shares are down. >> joe terranova, how about tesoro. >> >> it grows even more. understand this is a disaltry. what i would do with the stock, however, is rering the register. they're continuing through those names. >> a pop for tesoro, not too much. >> this is one ipo that worked well, so it's up substantially since its offering price so the analyst could ride on it for the
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first time. all of them came out with a neutral so, they're taking profits essentially is what i would do. >> pop four after a good old usa. america dominated with the most. usa won not only the most total but the most gold. the biggest pop went to u.s. women who earned 56% and 63% of our gold medals. coming up president obama expected to speak this hour. we're expected to take his comments live and later where you can see the biggest upset in the market if the romney/ryan ticket does go the distance. we'll be right back. sometimes investing opportunities are hard to spot. you have to dig a little. fidelity's etf market tracker shows you the big picture on how different asset classes are performing, and it lets you go in for a closer look at areas within a class or sector that may be bucking a larger trend.
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heavily shorted. i will tell you, though, it is still a very, very troubled retailer that hasn't spent on its store base in a long, long time. i would take this opportunity to get out of it. hometown accounts for 25% of ebitda. this is not a surprise. this has been brewing for a year. >> this is sears, not jc penney. >> that's right. the only difference is the number of letters in their ticker. >> coca-cola. citing sloer growth and increased competition. stephanie link, they think this stock has run its course, at least for the near term. >> it has. it's trade out 17, 18 times. so it's not cheap. i still think this is a fabulous franchise, a great ceo and malkt team, and if it gets hit, you know, down a couple bucks, i think it's definitely a buy. yahoo, the firm there calls
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for the potential removal of a buyback perceived negative. joe, the stock is down about 3/4 of 1% today. >> yes, and you get a fundamental negative. since marissa mayer was name ceo back in july, i purchased yahoo! got out of it luckily on thursday at $16.10. the reason being, nothing more than a time stop. you have to place a tomb stop on your trades. yahoo! performed much better than it did especially given the appreciation. > dr. j., what do you think? >> i think they're happy about her and happy the direction she wants to take with the company but they here not happy with the spin-off of alibaba and where it's going to go.
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counselli inlin inlin inline coming up, how does romney's pick of paul ryan shake up expectations for health care and defense stocks and the technical case for the summer's market melt-up and whether today's pullback is a market blip. more of "halftime report" is up next. tdd#: 1-800-345-2550 you should've seen me today. tdd#: 1-800-345-2550 when the spx crossed above its 50 day moving average, tdd#: 1-800-345-2550 i saw the trend. tdd#: 1-800-345-2550 it looked really strong. tdd#: 1-800-345-2550 and i jumped right on it. tdd#: 1-800-345-2550 since i've switched to charles schwab... tdd#: 1-800-345-2550 ...i've been finding opportunities like this tdd#: 1-800-345-2550 a lot more easily. tdd#: 1-800-345-2550 like today, tdd#: 1-800-345-2550 i was using their streetsmart edge trading platform tdd#: 1-800-345-2550 and i saw a double bottom form. tdd#: 1-800-345-2550 so i called one of their trading specialists tdd#: 1-800-345-2550 and i bounced a few ideas off of him. tdd#: 1-800-345-2550 they're always there for me. tdd#: 1-800-345-2550 and i've got tools that let me customize my charts tdd#: 1-800-345-2550 and search for patterns as they happen. tdd#: 1-800-345-2550 plus webinars, live workshops, research. tdd#: 1-800-345-2550 whatever i need. tdd#: 1-800-345-2550 so when that double bottom showed up, tdd#: 1-800-345-2550 i was ready to make my move.
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welcome back. president obama is making a stop in iowa today. we're going to follow his comments. and certainly the topic of paul ryan is in political talks today but the obama campaign is null circle as well as paul ryan at the state fair there. but president obama is making his way up to the podium. in fact, when he does begin speaking, you will hear the beginning of his comments live. steve weiss, i'm just wondering. the president is going to try to steal some of the ryan/romney thunder today. >> he's a master at taking headlines. that's what's going to happen. i'm tell you, they're looking to spend money on everything. i think they even gefthey've go
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spending. >> okay. let ee's listen to the presiden >> it's good to be back. [ eers and applause ] >> well, it is good to be back in iowa. i missed you guys. [ chanting ] >> thank you! first of all, can everybody please give patricia a big round of applause for the great introducti introduction. a couple other people i want to acknowledge, your outstanding former governor, now i think the best secretary of agriculture we've ever had, tom vilsack. congressman leonard boswell and mayor tom hannafair. you see the sun is coming out.
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i love being back in iowa. now, we're starting here in counsel bluff but we're going to be heading east and i think i'm going to end at the state fair. michelle has told me i cannot have a fried twinkie. but i will be checking out the buttered cow and i understand this year there's a chocolate moose. so i'm going to have to take a look at that if i can. the last time i went to the state fair, secret service let me do the bumper cars, but they said this year i -- i wasn't president yet so i could do that, but not this time. now, before i get started, i just want to say a few words about the drought because it's had such an impact on this state
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and all across the country. you know, right now folks here in iowa and across the heartland, we're suffering from one of the worst droughts in 50 years. farmers, ranchers depend on a good crop season to pay the bills and put a roof over their heads, and i know things are tough right now. the best way to help these states is for the folks in congress to pass a farm bill that not only helps farmers and ranchers respond to natural disasters but also makes some necessary reforms and gives farmers and ranchers some long-term certainty. unfortunately right now too many members of congress are blocking the farm bill from becoming law. i am told that governor romney's new running mate paul ryan might be around iowa the next few days. he's one of the leaders of congress standing in the way.
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so if you happen to see congressman ryan, tell him how important this farm bill is to iowa and our rural communities. we've got put politics aside when it come doings the right thing for rural america and for iowa. now, it's always a problem waiting for congress, so in the meantime i make sure my administration led by tom vilsack is doing everything we can to provide relief to those who need it. so last year we announced $30 million to help ranchers and farmers to get more water to livestock and help rehabilitate land affected by drought and today we're announcing that we'll help producers by purchasing $100 million for meat while prices are low and freeze it for later.
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in counsels bluff iowa. you heard his comments on the drought saying he is urging congress to pass the farm bill. that would be the best way to help farmers and ranchers, particularly in the state of iowa where he is making his campaign stop today. he also did briefly address his choice of paul ryan at least in term os the farm bill saying mr. ryan is one of the leaders in the president's words standing in the way of the farm bill. so, again, the president make campaign stop today as the election campaigns roll on right now. the drought of 2012 meantime has not only pushed corn prices to record highs. it may also be increasing price you pay at the pump. there's a certain amount of ethanol to be sold and the shortage is why the regular price of average gas has jumped 18 cents in the past two weeks. joe terranova, should we be paying attention to the story? >> i think you have to be paying attention to the story. there's been multiple reasons to
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continue the refinery as we talked about. i think that's the right trade, scott. i don't think it's to chase a lot of the agricultural story on the belief that higher corn prices will translate to stock appreciation. it hasn't for the likes of an agrium or potash. i think you focus on it and look at the consumer staples, a lot of the food names we talk about, hershey or sjm which goldman sachs talks about favorably today, like those names. they're favorable tail winds to kind of offset the increases of input prices in rising corn. >> steve weiss ethanol prices are up 30 cents. we're talking about where corn prices have gone. >> first of all, i'd say that the president's hair has gotten a lot grayer since ryan was named to the ticket. that's my first observation. second, it's such a bad move to try to play weather in the portfolio because you have rain
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come at any point in time. so i don't think you get involved that way. however, in terms of ethanol, that's acute right now because of the price you may, in fact, see a moratorium on the price that would significantly pressure the corn market. >> tax policy will likely play a policy role in the presidential campaign now that mitt romney has chosen paul ryan as his running mate. we're joining now on the fast line. mr. mills, it's great to have you on the show. i guess we can take this from three areas, what it means for the broader market and certainly stocks' sectors, whether it's those that pay dividends, medicare, et cetera. how is the choice of paul ryan going to affect the stock market and investors? >> sure. so this pick just upped the ante on the fiscal cliff. paul ryan is the architect of the republican budget. this election is now going to come down to a vision of what you want to do for taxes and fiscal policy in the united
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states. but ultimately the fiscal cliff is only going to be solved with compromise. so post the election, i think this is going to be much harder to get down now. adding to volatility in the fourth quarter, risk-on names are really going to be hammered during this period and ult analystly i think if the romney/ryan ticket wins, people are going to have a sugar high, but that's going to come down to earth when you realize that it's not just medicare that ryan wants to change. it is an across-the-board spending cut where it comes into health care issues, it comes into industrials, it comes into anyplace that government is spending money now. he wants to reduce. and i think that is going to have huge implications going forward. >> you're painting a picture where the stock market falls, but by how much? it certainly sounds like a negative picture you're painting. >> i think it will all be who wins and what type of congress does that individual have. i think if romney/ryan wins and
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it's an all republican government, tlirng's a lot of people who are going to get excited about the fiscal reforms they believe are going to come in 20to 2013. you might have a repatriation, changes to dodd franks. so the banks do well there, but thing people are going to look at obama care being repealed, medicare being changed. medicaid being overturned, and in that scenario, health care stocks, which i think people would think a romney/ryan ticket would be good for actually add as lot more volatility than it does today. >> do you have a view if romney/ryan, do they get the independent vote? do you have any thoughts there? >> it all depends on how well either side defines ryan. you know, congressman ryan well known inside the beltway, well known on cnbc, but the average american does not know him yet. to the extent that the republicans can identify him as a man with good ideas who can
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sell these programs in a wonky way, i think they can get the independent vote. but if democrats are able to identified them as an ideal log, that it's another sarah palin pick, someone that wants to take away your entitlement benefits, then i think they ee goal away from ticket in droves. >> but this is not a sarah palin pick ought all, sir. come on. when you look at canter, rubio, paul ryan, three of the folks that were the focus of the picks, they're head and shoulders above these other folks that you might say were a sarah palinesque reach. this was not a reach. this was exactly a middle of the road-type candidate as far as what the republicans wanted for your the spot. >> i would disagree because i think pick is far outside of the portman or tim pawlenty pick that a lot of people thought he was going to pick. >> but those are two guys nobody knows. those are two guys nobody knows.
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nobody's heard of those guys. this guy as you said is on cnbc all the time. he's on the networks all the time. pawlenty? when was the last time you saw him? a year ago when he was running? >> but he had multiple terms as governor. one of things about this pick is we know who he is, but the average american does not know who he is yet, so that gives a real task to both sides to define him early. >> ed. >> whenever defines him best has -- >> ed, got to run. just to tie up the conversation. the stocks that have carried the market, those are dividend payers, utilities, tell kohecte that going go away? do investors need to worry about the very stocks? >> i think they do. what we haven't talked about yet but what we're going to talk about soon is the backup in rates. you see the ten-years back up quite a bit. i think you'll start to see money going into equities and you've got to stop riding those
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same horses heavily. next we look at the fundamental race. now the technical one as the s&p tries to cross the territory seven days in a row. there's the s&p picture right now and we'll be back. streamin, any way you want. fully customize it for your trading process -- from thought to trade, on every screen. and all in real time. which makes it just like having your own trading floor, right at your fingertips. [ rodger ] at scottrade, seven dollar trades are just the start. try our easy-to-use scottrader streaming quotes. it's another reason more investors are saying... [ all ] i'm with scottrade.
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why not take a day toon explore your own backyard?g... with two times the points on travel, you may find yourself asking why not, a lot. chase sapphire preferred. there's more to enjoy. and today, top of the hour, what does adding paul ryan to the romney ticket do to the electoral fight, the map, and we'll break it down and see what the street is saying about the
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race now. the housing market struggling but one side of the industry is cashing in big and we'll show you where the money is. and groupon reports after the bell. we'll get that report to you on "power lunch." now scott with more. >> let's get a market flash on a social media stock that's actually getting a pop today. jackie d., what are you watching? >> ahead of second quarter earnings, the stock's popping 3.63%. ive volume in this name as well. i've seen a slump in recent weeks on how it's accounting for some of its new businesses so we're going to be looking for some of the details. for now, 3.63% for the name. back to you. >> joe terranova taking on social media. you flow, "the new york times," interesting article, positive on facebook. are you? >> anti-social i am. everyone who knows me knows me well. >> coincidence that i want you on that one, joe.
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>> yeah, not surprisingly. facebook, we're looking for the trough. i have not liked it since may 17. have not touched it. i told you i would. i go back to linkedin. this is nothing more than short covering. the $6 get use back to where the analyst targets are which are absolutely ludicrous. >> dr. j. i know your brother was not happy he was in facebook. >> that's an understatement. >> you follow social media. would you take a stab at either of these stocks? >> as i said, i'm in facebook, i bought some shares, and i have the 22, 24 1 x 2 spread out in facebook, fb. as far as groupon, friday they were buying a lot of out of money calls to. jackie's point, that's why they're talking about it today.
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welcome back. behind the scenes of a controversial competition for teenage entrepreneurs. a provocative question. do young people need a college
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degree to make a difference in the world? for some, the answer is no and the time to act is now. >> billionaire investor peter teal is offering 20 young innovators a chance to trade school for silicon valley and start turning their vision in to reality. >> at a minimum, i hope that they will learn far more than they would have learned in college. and then at best i hope that they'll be able to pursue their dreams and make the world a better place. >> am i getting anything out of school or just wasting my time? >> i think it's very important there's some people to take big risks on big ideas. otherwise we would not see big break throughs. >> if mark zuckerberg waited for four years in harvard, it would have been the wrong time. this is the right time for my technology. >> this is only on cnbc. you know the games we have seen lately. giving a little bit back today.
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there's the s&p down. posted gains in the past five weeks. what ao es the technicals saying? michael, welcome to the show again. we're talking about why the market is where it is, whether it's the fundamentals driving us here. how much do the technicals have to do with it? >> looking at short, medium and long-term models, they'll following a trend to the upside. u.s. and globally. we stay long and some cases adding to the long positions in the equity markets. if we look at the technicals i think it's an interesting chart pattern. we certainly had choppiness in the markets and hard for a lot of investors to have the fortitude to stay long in the market but since the june 5th lows, up over 10% for the move and continuing to trade to the upside. i think big levels to watch, 1404, you got to get through there. we've been in a short-term consolidati consolidation. getting through there, target the may high and then the big level of 1420.
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that's the march 27th year to date high. and i think that may draw investors back in to market realizing they've been 0 the sidelines and the market's made new highs. >> joe, what do you have for mike? >> i believe it's on a chase for performance and the question is what point do you believe the small caps, the russell 2000 index underperforming the s&p joins the party in essence? it has to to see further appreciation. >> well, i think it's possible that small caps make a move and follow some of the brethren in the equity market. we'll see the broader indexes move higher and because they're largely pricing in the chance of a third round of quantitative easing. not just in the u.s. with the fed but expecting an action over the next month or two out of the ecb and people's bank of china following the disappointing data last week. they believe they're easing, as well. with global central banks dropping on the market, a fair bet that stocks continue to
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price in the action and move to the upside. >> all of the expectation of the world is not in the market at this point? >> i think if you think back to 2010, between august of 2010 and bernanke mentioned the possibility of qe3 and confirming it, we saw stocks move up over 15% in that period and the market priced in the potential for more easing so i think that we have begun that cycle. the models picked up on the trend and got us long just like in 2010 and a fair case that the market believes it's coming. a lot of people thinking that could be in september. >> gotcha. good to see you as always. >> thanks for having me. : 1-8000 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 gives me tools that help me find opportunities more easily. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1-800-345-2550 and with schwab mobile, tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime... tdd#: 1-800-345-2550 until i choose to focus on something else. tdd#: 1-800-345-2550 trade at charles schwab for $8.95 a trade.
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