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tv   Fast Money Halftime Report  CNBC  January 30, 2013 12:00pm-1:00pm EST

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multi-tasking. >> do you think the developer community could be more with it? are you frustrated at 70,000 apps? >> carl, how many of these devices have sold so far? zero. i think 70,000 apps on board for a device that has not yet sold one unit to its consumer is actually a major accomplishment and you're going to see the momentum build. nobody's ever launched that large of a platform with that many apps. >> you said you weren't going to get a haircut until the launch. >> that's right. >> you got it today. we'll roll video now. when did they ask you? >> it started like you said a while ago. it was more a stupid thing i said one thing and a month went by and a month went by and i thought, oh, man, i'm really committed here. i can't cut it. they were doing the planning for the event. i got a little e-mail a few days ago, hey, kevin, get ready for some scissor. it wasn't getting asked. it wu more like being told, you're getting your hair was, go
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back to being normal. >> you're going to hear about it when you get home. congratulations again. >> thanks so much. >> thanks for stopping by. kevin of that does it for us on "squawk on the street." jon fortt will talk to the ceo thorsten heins first on cnbc during power lunch. and thanks to those on twitterland, we just top 1 million follower online, on phone first in business worldwide. no matter how you get your news from us. we'll see you tomorrow. let's get to wapner and the fast money halftime. welcome to the halftime. the dow is sort of in healeding patent as the march to 14,000 continues. 13,951 is where we currently sit. here's where we're currently following on halftime. what's under the hoodie.
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facebook reportings after tonight and with the stock on the street, what will the company deliver? a perfect ten? what does the real money think of blackberry's big bet? don yak min with more on the stock on where r.i.m. goes from here. but first the top story, the dow's posted its best month in 16 years. it sits only about 1.5% from its best level ever. will it get there or should you be prepared iffer a pullback. we're trading everywhere today. how about it, pete? are we going to get there or should we be prepping for a pullback? >> i'm prepping for a pullback. i'm very positive but at the same time i'm realizing the market has gone up. we've watched the volatility index go from 21 all the way down to these very low levels all the way to 13. but here were are today. it's been a broad-based market rally and that's the one encouraging side. it's not just the financials. it's energy, it's industrials.
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so you're getting a broad participation, but i think at this point in time one of the reasons we talk about taking off the stock positions and rotating into the options is at these low levels i can have exposure into the market but at the same time i'm taking some of the risk off the table. >> brian kelly, what are you doing? >> i think that's the right thing do. if you look at the other asset classes, they're not confirming the move in the stock market. it makes prudent sense. new zealand dollar. even italy, down 2%. you've got to watch out for these things. not saying the world is coming apart, but certainly if it's up, take some profit. >> the sentiment is still up. we had a shocker of a number this morning on gdp but you get the feeling that the market still wants to launch higher. >> i think as long as the vix is low, as lodge as protection is cheap, what happens is people can drive with the safety and protection behind them. so it's very hard. i would watch the vix very closely unless protection prices
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start to move higher, i don't think you'll see much of a pullback. even the pullback you'll get will be 1%, 2%. it's going be like that. having said that, i would be more discerning. like health care and energy. those are more value-type sectors here. i wouldn't change the high-end gross stuff. >> big dock, what's the play? >> well, i think you're going to have another play put before you on friday, as far as the jobs report. the gdp report wednesday and the jobs report. i'm seeing a percolation about jobs, not just the public sector which we follow but the private sector which we care more about as far as are these guys, men and women willing to commit capital and jobs. from what we're seeing think the answer friday will be yes than will be enough to turn around bad gdp number today. >> all right. how does today's shocking gdp number factor into this whole debate? let's bring in senior economics
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supporter steve liesman. any big concern about the gdp number? >> yeah, yeah. >> in past years, months, whatever, a negative print on gdp would have been the headline in the market today and it's not. >> it's an excellent point. can we play a little game here? wapner never has any idea what i'm going do here. let's say that blackberry had some new technology, right, and it was the thing from "men in black," and we all looked at this thing and i flashed this thing and we went back before 8:30. you didn't know what the gdp numb berry is. let's say i told you the consumer spending was best since the first quarter of 2012. let's say i told you the business investment was the best since 2011. let's say i told you going all the way back into 52 quarters since 2000 the government spending was one of the worst since 2000. okay? what would you say is happening to the economy? would you say this is the economy on the verge of ooh recession or an economy that's chugging along and not doing too badly?
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>> you'd say the latter. not doing too badly and it is chucking along. >> let's call up the chart we just had up and show you how we got to negative. do we have it? there it is. there you go. 1.52. all these numbers here add up to 0.14. this is the contribution of gdp from the critical mack rowe sectors of the economy. consumers add 1.5% to gdp. business. government taking off 1.3. this was the worst die klein in national defense spending since 1972. okay? what's going on here? really there's an interesting side note here which is why the street can't do a better job and i mean the forecasters figuring out what's going to happen with defensemen. there were some guys who understood it. the guys who do the bottoms-up stuff seem to have done a better job. >> let me ask you this. will the fed be as dismissive so
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to speak as the numbers today as the market appears to be? you know what i mean. the market doesn't seem to care about this negative print. >> can i just ask the guys this question? what is the market doing today? >> flat. >> i know that. but what -- it's had a nice run-up and now it's flat. is this a day it would have been up if gdp had been in line? >> you would think so. >> i think the market's waiting for the fed actually. think right now there's a bit of uncertainty. let's see what they're going to say. >> we know what they're going to say, don't we, steve? >> let me go backes to my question. if i told you this was still a 2% economy, would you be buying the market today? >> i think the expectations are that it is a 2%. >> so no change at all. so the market is flat with an unchanged view prior to 8:30. they did look into this thing and they had forgotten about the real gdp. unchanged is the general perception. >> it's all about friday's jobs number. i think that's the biggest risk to it.
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>> that's crazy. >> it snies this. >> that's crazy. >> if that stop, the whole thing falls apart. >> my appearances on this show have not been in vain to the point where i can tell you that and you know employment is an outgrowth of what happens with growth. gdp is not. >> we had the fiscal cliff, the election. >> i'd love to ask steve a question thouo that point. if you look at the manufacturing surveys and industrial production over the last six months we receive a bit of a downtake. do you thinks the fed is going to distinguish between fact that employment seems stronger than the underlying economic data? >> i don't think so because what's really interesting when you think about the fed's thinking on this is what they do with the participation rate. i think they think it's going to increase over time. remember we did that work that showed that at the current participation rate it will be five years before you get down
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to 6.5% unemployment. i think that number's going to be more of a rouk around the sis i fis that is the economy. i think it's going to be harder. i think bernanke has a pretty cool outlook on what happens to jobs and this notion of 2015 is time for heeking rates, thank remains in place. >> all that matters at 2:15 today, what the real debate, if you will, should be about is whether the fed gives you any indication, makes you feel in any such way that proverbial punch bowl will be taken away sooner than we'd like. that's all that matters. >> that's exactly right. i want to throw something else out. you guys are going to have to figure out not only when it's going to stop but the tapering. the fed doesn't stop q e.on a dime. i'm seeing in our data that we have from the fed data, it's beginning to be a second quarter late -- early third quarter --
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late third quarter, early third quarter event when they expect them to be tapering which is why you don't do 85 billion total per month. the average right now is 71 billion. so i don't know when you want to start making trade to think about getting ahead of what enthe fed starts to taper, but that may be something that upsets your considerable summer vacations that you guys take. >> steve, i want to thank you very much we want go back to our own jon fortt and thorsten heins. >> when are you going to be slipping and what percentage of total device mix do you expect this to be by the end of the calendar year. >> that is a very detailed question. so we know we announced it today on stage. europe goes really quickly, really dynamic with the blackberry z10. we're already shipping.
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we'll see how it ramps up region by region, carrier by carrier, but we're prepared to, you know, deliver the volumes that we expect to come out of this. >> the second part of the question was about the mix between blackberry 10 devices and your more classic devices at this point. what kind of mix do you expect, say, by the end of the calendar year. >> that is a transition of the whole portfolio. we'll be building new 10 devices over the year. we need tocover that. so you can expect that transition to be somewhere in the range of 1.5 to 2 years. >> no specific percentage you're prepared to give. >> no, because blackberry 7 on turin level is still very successful and really hits the bull's eye in market like asia and nigeria and others. we don't want to pull this away
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from our customer. >> thank you very much for your time, thorsten heins. >> thank you very much. >> i'll reiterate what jon said. thorsten heins, ceo of the formerly known r.i.m., now known as blackberry. we'll want to pay attention to that. in the meantime, guys, we can trade it on the desk. bients a sell in the news. the stock has gone up 100% in three months. >> yeah. >> what's your take? >> it's one of the reasons why -- this is one of the names we talked about. this we talked about the beta of this versus apple. nokia and research in motion have been flying to the upside. that's why i felt there was a point in time, take some of this risk off and roll it into the options. the options aren't hurting you nearly enough today. you've given up enough that i'm actually considering adding to the position. >> all right. coming up on halftime, the company form ler i known as research in motion making a big bet on blackberry 10 including
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the company name. don yachtman rode the rally in the stock. and am mon surprised the street. is it too late to get in? twotraders, one big debate still ahead. delity, but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.
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welcome back. watching the markets as we closely do. let's bring in mike ryan, chief investment strategist with ub wealth management with more on the market's next move. mike, good to see you. thanks for coming on. >> thanks, scott. >> i'm not sure if you were listening to us on a view of where the markets may head. how do you see it? >> well, actually i listened to the whole conversation. i found it pretty interesting. i think the first thing in the economy, everyone was so oub saysed with the fourth quarter gdp that everything is backward. we're focused more on as the employment report and the fact that we're seeing cyclical momentum. i think this private sector momentum is ongoing. as far as the fed is concerned, everyone is focused on the wording of the fed statement. what i still come back to is the fed is still a majority of one. i think it's all about bernanke. it's not about calendar year,
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midyear, end of year, it's about the outcome from a macrostandpoint. >> so not to say you're not optimistic on where the market could go, you're looking at 1540 on the s&p but it's not like you're looking for gang busters. what's the holdback? >> we still have headwinds. let's face it. we're still going to go through a leveraging process. there's a few more hurdles that have to be heard. as we see the economy continue to gain traction, as we get more clarity on the earnings outlook for the end of the year, we could go well above the 50 and 40 target as we see this continuing momentum go and as we continue to see an accommodating policy sector. >> the sector you like the most is technology, one that is largely not participated in this last leg toward 14,000. what's going too change that? >> well, you know, it's interesting, if you think about the areas that we're focused on,
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it's on hardware and i think part of it is -- part of it is going to be evaluation. secondly it's going to be the fact that we think the inventory destocking has run its course and lastly the business spending that has been absent. we think that begins to pick up. so thing those drivers will be enough to continue to push the technology sector higher. by the way, one important thing, scott, when you look at the technology, when you look at it on an equal weighted basis, you find that it's done very well. so it's all about the big names that haven't made it so fafrmt mike, good to talk with you. >> thanks, scott. meantime the new blackberry as we showed you is finally here. officially unveiled today in new york city. it's so important that the company is staking its name on it literally. don yacktmanman manager of yakt
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man's, welcome back to halftime. >> thanks. great to be on. >> you have been trimming your stake as the stock, as we said, has doubled over the last three months. where does it go from here? >> well, that's a good question. first of all i want to deny the rumors that i was the first one they asked to cut their hair at the lunch. launch. >> all right. fair point. we'll write that down. >> please do. yeah, i think this is a little bit like drying wildcat oil wells. we look at the forward wide risk of rate of returns and this has a outcome. when it was below 7, we had almost 5% of the company's stock. we temd tnd to beas my son stev said dumpster divers wchl head a
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lot of it. and our position at the end of the year was actually less than it was at the end of june so you can get an idea as it's run up what we've done. >> are you optimistic? >> here's the way i look at it, the value side, the protection side we saw before or the cash, the patents, and the imbedded base that was paying money to store information, as you know, that one -- that last leg has been thrown out and it's bit the ranch. on the other hand the backstop position is probably lower and they would probably end up having to sell the company. but it looks very promising. i mean i watched the launch, i mean two models, you know, and a
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lot of giz and gadgets. i'm not a social media guy but it looks very interesting. >> let me get the money view on the market from a guy who's got $17 million under management. how do you see the landscape here? we're not that far from all-time highs. and certainly within the striking hour of 14,000 on the dow. >> yeah. we're actually up to about $21 billion now just to update that g figure, but, again, it's fun to talk about the economy and the politics and the market, but the reality is this business is what you buy and what you pay for. we can't control the wind. we can set the sails. and so we look at them one at a time. but the basic theme that i keep seeing is these very large, very profitable businesses, our largest holder being proctor and
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gamble. the dividend is almost equal to the long-term treasuries, the long-term treasury's risen somewhere in the last month or two from about 275 to 317 or something like that. but on a relative basis, what it's telling me is the long-term u.s. treasury bond seems to me to be very overpriced and the others to be relatively good values. >> let me ask you about procter & gamble since you went there. that's your biggest holding. you may have heard about this conversation we had on friday with bill ackman. he's taken a position. he's wanted the ceo bob mcdonald out or he's suggested he's not the right guy for the job. let's listen to mr. ackman and then we'll react. >> base oddtown last three years of p&g it looks like bob is not the right person for the company
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but if the company can make a dramatic company, i hope that bob can be successful and make it. >> don, what's your reaction? >> well, the other day we had our fourth quarter call, and, again, my son steve commented that if one wanted to be an activist, i tlink are a lot of places where if you wanted to be critical of management or see some changes, this would not be the first one to attack. we've met -- bob's met with us, and i see him as a solid operating guy. and i think that, you know, a lot of these consumer companies have had a bit of a headwind margin pressure because of costs and pressures that are starting to dissipate. so -- and their margins are actually down from where they were a few years ago and if you
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remember procter & gamble thought they could stlar margins up. that's his predecessor though. i guess i would have to have a little bit of a different opinion. >> i see it's interesting two smart guys, one named ackman and one named yacktman are on opposite sides, right? >> well, sometimes that happens. part of it's a horizon-type thing too. i see bob is like up with our longer term holding period. we have a very long horizon time. >> sure. greats talking with you as always. thanks for coming on. >> glad to be on. >> don yagtman on for us. >> despite all the noise around the stock -- >> i thought he had the right things to say because he talked about gain and how they basically addressed how folks
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wanted to trade down and they still have a proctor & gamble in their cart when they go to check out. and i thought a lot of the things he said were exactly right. you look at the stock performance from that dip back there, what was it, july or whatever when it was down there in the 60s and you look at it trading up through 70, that's a nice move out of the stock. >> can i get one more view on research in motion whether this product is going to be strong enough, whether they can really legitimately compete with the likes of apple, with google and android and some of the other devices? >> the product is probably good enough. the problem is that they have an execution issue, that they've had the premiere product for a long time thamd let that slip. so we have to see if the company can execute and get the product out there. the software seems great. i think there's a huge opportunity. >> they've had the premier product in the corporate world's eye for an awfully long eye.
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>> that being that of the public opinion, that's changed. >> these completely changed. remember, motorola has the clam shell thing. think pete still has one of those. it lost its market share. >> okay. well, coming up on halftime from transports to tech, we're trading three big movers in today's top three trades. plus it was good news for gold but is there a trade to be made ahead of the feds meeting this afternoon. we're going to make a pit stop when we come back.
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we're going make the turn on the halftime show which means it's time for our top three trades. the first is right on the wall.
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p.k. we're going to you on the boeing. i don't care about the earnings. all people care about is whether you should buy the stock given the issues with the battery and the dream line. we want to know from you. >> no. you do not buy the stock. we thought originally it would be battley problem. by this time they're supposed to be up and flying. if this is a production issue, it's a significant issue for boeing. they're going have to go back and revamp the whole production line. i would stay away. >> they beat the street, stuck to the forecast. nobody cares about that. >> nobody cares about that. again, if it's a production issue, it's a big fix for them. it is not simply replacing your aa batteries in your remote. this is a big issue. >> phillips 66, stock's up 6%. that's record level. >> the reason they're diebl all this is because the margins are unbelievable right now for the refinery space. the fact that they can get the crude from their areas of the country a lot cheaper than they
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had in the past, still think all these names are undervalued. it's on the under side. >> big doc, give me the view on broadcom. >> broadcom, topped expectations, judge. dhad have warning in there and sometimes that warning is enough to really cause the stock to testimo tumble. not this one that. i increased the dividend. they got pac crest, pa siflk crest giving them comments. i think that's conservative. so the stock is moving up today and it's still only about 34.5, 35. >> gold now is adding about 1% awaiting the fed's statement this afternoon. for more let's go to jackie deangelis. she's the host of cnbc's "futures now." >> that's right. with had bad news for gdb. that's good news for gold. when number came out another at 8:30 in the morning the gold shot higher. the question is does a weaker economy mean more action and higher gold? let's talk futures now.
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we're looking ahead to the fed's statementer are you getting long ahead of it? >> i am. there's one thing clear about this gdp number. the stimulus isn't going to stop any time soon. when you look at the gdp number itself, they talked about a big cut in defense spending was the reason why we were down. well, sequester happens in another month. you're talking hundreds of billions in defense spending. >> so the feds are going to help with the easy money policies. that's going to be good for gold. jim, gold's really not done a lot this year but the stock market has certainly soared. do you think we could see a flip in that scenario? >> i do thank could both do well. the thing that was most interesting to me about that is gold spike in the gdp number but the bonds held still. so to me it's a bigger story than just about the feds coming in and supporting bond prices. i think what the gold's telling
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us is we might be opening the door for real wide inflation. they come together, you probably want to be long on gold and i am long on gold but i've been long a long time so i've suffered that move a while. >> griz, jim, thanks so much. appreciate your insight. scott back over to you. >> jackie, thank you so much. b.k., give me a quick trade on gold. >> love gold and silver. slv, probably a little more levelered and volatile. >> coming up at the half, will fatebook prove they can go mobile? business insiders, henry blodget shares his take on the company ahead of its earnings tonight and amazon soars despite missing estimates. is it time to take your profits and run. two profits and one heated debate. more halftime is up in two minutes. ♪
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welcome back. am mon shares surged. wall street focusing on the better than expected profit margins but will that be enough to keep the market rallying. let's debate it. b.k., you're up first. >> here's the deal. the biggest knock on amazon has been their valuation. all the market focus on is profit margin. they're actually taking market share and increasing the profit margin which is something everybody wanted them to do. i know people are talking perhaps walmart is going to eat their lunch. i shop at walmart for one thing, shop at amazon for something completely different. they deliver it to my door. however, i just want to say, up at these prices, the price action is awful. i'd probably wait for a pull back on this one. >> the price level is terrible. it sold off immediately this
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morning. put that aside and duo to your point. margins are primproving. margins are -- operating margins are 7%. it's 25% for both. i don't see how amazon goes and then all of a sudden it should be the same worth as walmart. this stock, i don't care what valuation metric you use, they all look super, super expensive. >> but that hasn't mattered. it doesn't trade on valuation. >> let me give you one other number. >> all you need is the margins to improve. i don't care if they go to where walmart is. >> walmart this year will have 500 billion dollars in sales. amazon will have a hundred billion in sales in 2015. it just seems totally insane to me to be buying this stock. >> walmart does not have an e book which is a huge part of their company. they changed the game there. >> you know, again, moving
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average, that's where i'm a buyer. >> we go to the jury to find out who won that argument. pete, who made the argument on a-m-a-z-o-n? >> i think it is an opportunity because for how long have we heard this story about the valuation and amazon being too high? we've heard it forever. but the stock continues and now with the market expansion obviously the global expansion and everything that they're doing to develop themselves as a next day or within hours delivery company, i think they're doing all the right things right now and people seem to be able to look past that with the growth. so at a 200-day moving average, i'd be a buyer. >> all right. we're just a few hours away now from facebook's fourth quarter results. so will investors like what they hear after the bell or will facebook stock face plan? again, henry blodgett has been follow facebook's path closely.
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he joins us now from the city. thanks for being here. >> great to be here. thanks for having me. >> wow. you're talking about a highly anticipated earnings report. >> it's been a great run. it's a mow men tumt run and the opportunity is that we could have revenue reaction sell rags continue which obviously momentum investors love. and we could have the profit margin start to increase. and if you have those two working together, this is a scenario where valuation really doesn't matter to momentum guys and the stock run could continue. long term i'll still wired about the valuation on this one. >> what about mobile? what do they need to say about mobile and this graph search? >> the search engine is irrelevant and disappointing for those who were hoping they would be close to a big pot of money on search. they could not be farther from the money. search is search. it's sort of interesting, but they're very far from where google is coining money on search. in terms of mobile, mobile has
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to keep accelerating because desktop is actually declining for facebook. one of the things they were worried about is whether they would be ever able to make any money on mobile. now they are. if that continues to reaction sell rate, thiefr got a vast opportunity, so everyone will be very focused that. >> i know my traders will. right? >> i actually have a range trade on facebook, henry, and i'm curious what your thoughts are on the idea that the stock has obviously rallied on improved expectations, but as you mentioned, the valuation is relatively steady. what is the catalyst in the next couple of earnings reports that gets it back up? >> i think if the revenue continues to accelerate, we get margin improvement. what facebook did after ipo is take what was a 50% operating margin and we're going to invest a lot more. they knocked down to almost 40% but wall street thinks we've had the low in that corner and if they could be expanding their profit margin at the same time they're accelerating revenue,
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momentum guys love that. it drives incredibly fast earnings growth so that could drive the stock. the problem is if you get out to the end of the year, then we're looking for revenue deceleration again and the margins starting to flatten. so there's a scenario where you could have the stock have a very nice run but then the multiple starts to compress at the owned testify year. >> has sediment turned more fully positively toward zuckerberg? i know at the margin it has and he's done better for share houlders more recently than the ipo. are we ready to get fully behind this guy? >> there's nothing like a stock price going up to talk about wonderful management and make sure they're talking about what he's doing. i think he did a huge amount for his own cause when he came out, did the techcrunch tipper video aunld did the talk on search and talked about how they'll make more than they made on the desktop. that reassured everybody who wondered if he was asleep at the switch, didn't care, changed the
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language about business being important and money being important. i think people are behind him now and as long as the stock continues to rise, you won't hear a peep on how he should be replaced. >> good to see you. been in this name for multiple months. it slowly kind of plods its way back to the upside. if they can show us again, think that's the area everybody's going to be looking at. >> are you worried about a possible sell on the news? >> not so much. i think the stock -- it's made a pretty methodical move to the upside. it has. made the kind of move that research in motion has made or nokia. i don't fully agree by the way with the full momentum side. i'm looking at very large funds that have been putting in money, down in the 20s, mid-20s. i don't think they're momentum players. >> upside is 23/24. think the stock's stuck in between there unless you get a
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drastic earnings beat on this number. >> coming up on halftime, one of america's most controversial o ceos is stepping down, we'll take a look. aubrey mcclendon and chesapeake's future. and apple's largest active shareholder, fidelities contra fund cuts its position in apple. should you follow? stick around to find out. [ woman ] if you have the audacity to believe
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for exceptional offers all stations come over to mithis is for real this time. step seven point two one two. verify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. coming up at the top of the hour, a tour of my new earpiece. you can't believe it. what happened to the economy going from 3% growth to negative growth. has the company been derailed? the two biggest challengers, $900 billion worth of advice how to navigate the market how we navigate. and have you got a green thumb? and a knowledge of the black
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market? washington state trying to figure out how to regulate its newly legal recreational marijuana, and it's looking for a weed czar. scott, any ideas? >> i might have a lot of traders who may be interested in that role. we'll see you at the top of the hour. fidelity, the largest sha shareholder in apple cut it position by 3%. it's the best performing large cap growth fund over the last 20 years according to lipor. he cites increased competition or competition has intensified in his words. it's an interesting move when a fund that large cuts its stake. >> it's always an interesting move when they cut a stake like that, especially a name that's in the headlines as much as apple's in the headlines. it made headlines when jim
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cramer said i can't justify being long on this one. ite like a monstrous problem right now. u think a lot of these headlines, the more of them we get, the more likely we've seen a bottoming apple. >> have we seen a bottoming app apple? >> you can shoot against 435 here when you look at what happened. apple came down 35% and the mashlt shot right up. if you get any pause, you might see some money going back into apple. i think it's worth the trade. >> all right. 458 is where the stock currently sits. let's talk about shares of chesapeake. their rising after the company announced the april departure of ceo aubrey mcclendon. it's one of the best performing stocks. let's bring in stephen weiss. weiss, welcome. >> hello, scott. >> what do you do with the stock here? >> think you sell it. and let me tell you why. when a ceo leaves under these circumstances, it's never a good
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thing. there's always another shoe or multiple shoes to drop. and i think one of the reasons that the stock is higher is that supposedly this puts the company into play, but if you've been reading the headline over the last year or two years, the company's been in play anyway over that period of time. they tried to sell assets which they've been able to do and they try to sell $2 billion worth of assets per quarter just to run in place and they have to be able do that. >> you have to consider maybe what icahn's next move could be. he's the second largest shareholder, my buddy carl icahn. >> he is, but i don't blienk he ee going to take over the company. i'm not sure how much the company is worth either. we don't know what their balance sheet items are. we know they've got them. we know that bhp had acquired assets that were continue us to where chesapeake's are and they've been riding them down
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continuall continually. i don't know if chesapeake has been taking them down to this point in time. there's way too much to go on here. the way you're holding at this point is because you're betting on a take that can monetize the assets which they couldn't do under mcclendon's watch. i don't think that's a good thing. >> good stuff. we'll talk to you again soon. steve weiss. anybody want to make i don't kn want it bet on the ceo leaving or staying and the all of the rest of that and 9 paperwork going on. that seems to be what this is about as much as anything. i look to so many other names, eog, going through the list of names in the space that i think you have a much better feel of the stock. >> wait a minute. this is a stock that's been loved by a lot of people, a company that's been talked about for an awfully long time and it seemed to be that only thing overhanging this was people afraid to get in because of the
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mclendon overhang. >> two overhangs. you are looking at production that's come on-line from shale plays, natural gas. that put a cap on the stock. >> we are not always right and pete will show us how to manage a losing trade. right, pete? >> that's right sf. >> change engineering in dubai, aluminum production in south africa, and the aerospace industry in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.
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welcome back. not so fast, pete. our traders are quick. not always right though. over the last couple of months, pete has been hungry for opportunities in young brands. let's listen. >> ceo pointed out chienal be strong. it will be strong, steve. >> i think this pull back is an opportunity. >> yum is down 14% since that first call. what do you think, pete? >> image is everything. the problem is, when you have 44% of your revenue from china, and i do believe china is the story forum to move up to the upside. i think that eventually it'll turn around. >> so what do you do, though? >> i like the stock at this
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level but i liked it at previous levels. the story is all kb its image and how can they get that change and with once they can get that change it'll be very rapid. at 36, $64 dollars, it'll be the feed. >> first up, deckers, what's the trade. >> i think i'm the o only one still wearing man uggs around here. >> pete, las vegas sands? >> las vegas is a mess but i think is going hard. >> narg partners? >> they are buying another pipeline pay. i think you still pick it up because this dividend is just amazing. >> this next one looks ahead it after the bell. qualcomm reporting and it is year up. >> i like buying this stock.
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i think it is hurt by apple's troubles but it is very well diversified and cheap gross document. >> how about this? cnbc crossing a social media milestone. 1 million followers on twitter. since we can't thank all of you individually, we are featuring twitter handles on air throughout the day so consider this your 15 seconds of fame. final trades when we come back. , making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. [ male announcer ] when we built the cadillac ats from the ground up
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