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tv   Squawk on the Street  CNBC  July 31, 2013 9:00am-12:01pm EDT

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bridge that we need and the wild card is the global. we think that europe is more important in improving emerging markets, but there is a lot of questions. the fed is your friend even though it is tapering, but the global picture is the wild card to keep your eye on. >> bruce, thank you for joining us today. that does it for us today, and join us tomorrow. right now it is time for "squawk on the street." >> good wednesday morning and welcome to "squawk on the street." i'm carl quintanilla and jim cramer is back and david faber at the new york stock exchange. 1.7% was the gdp in the second quarter, and it is above expectations, although nothing to write home about. and q1 is revised down, and futures have been hesitant to respond ahead of the fed decision at 2:00 p.m. today. it is worth the 10-year at 2.68 and whether that move is on any mention of the word taper.
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our roadmap begins with the look at the gdp, and better than expected and what does this mean for the fed's next move as we countdown the to the decision this afternoon. >> and facebook has friends and trading above the ipo and priced at $38 in the premarket and the first time since that ipo in may of 2012. >> and the story that faber flagged last year, bill ackman said he did own a stake. >> and ford's nat gas guzzler and cramer is wait ing ting the it. and the new jobs numbers from adp showing that private employers added 2,000 job tho 2 july which is ahead of expectations. the fed will wrap up a two-day meeting today and issue a policy today and investors will look for any new indication ofgs when the fed will scale back the
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bond-buying program. even though 1.7 is not fireworks some say we might be in taper territory with this number. >> well, they don't need to taper, because inflation is low. they don't need to taper, because the employment is not there yet, but the employment nu numbers have been coming out right now, and better than expected and the bond market is moving and again 2.75, and in sights of the 10-year and mortgage rates will go up if we get that. so it is mixed news. it is hard to have a stock market really take off when the interest rates are rising. >> and roughly of 200k growth and two good months in a row, and then june revised up to 198 and not bad. >> well, this is why the market is taking it into its own hand, and fed doing something, but the bond market saying demand is coming, and this is by the way, the federal government is cutting jobs left and rig, and a big story in the paper about the corporate taxes and i doubt there is a deal, because the gop never sees eye to eye, but the
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economy is getting better, and the interest rates are getting higher. >> right. this is good news and we will see what the unemployment is going to be friday. >> thank you for saying it is good news. >> it is. and we will see what the gdp number is, even though people expect it to be stronger, and we will see how we end the year in the face of what you say a government does everything to screw it up. >> everything. >> and/or china if they get to 7.5%, but they are certainly not the engine they once were. >> and europe is turning up in the eurozone. >> somebody has been telling me that for months. >> and the gdp consumption was a beat at 1.8 and business inv investment up, but as you point out, offset by the imports which were big, and then of course, the federal spending, which again continues to be that weight around our ankles. >> you would expect at this point to be some let-up and a
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little more fed spending, but state spending is coming back and city spending coming back and those can be big drivers of employment, and don'ter forget that. >> and the jobs number is the big day the point friday, and by the way, the nail the number contest continues, and this is a good one this year, jim. a cnbc tote bag signed by everybody and filled with cash, and don't forget to nail the numb number. >> it is high quality. i have to tell you. >> and it is a nice bag. wabt one. >> nobody has given me that bag. >> we keep upping it, i don't know what it is next month, but the trinkets are nicer and nice nicer. >> and we are getting your house at the shore? >> oh, really? >> your house at the shore for labor day weekend. >> tweet us at squawk on the street. >> right. >> and this is ahead of the 8:30 release on friday morning. jim is saying that the facebook is crossing the 48 ipo price, and first time that the stock
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has crossed that price since it went public last year. there were as high as 38.05 and now the shares have surged is more than 40% in the last week after the quarterly results last week, andff that, cramer called the climb straight to 38 and a straight shot. >> if you believe that they are monetizing without alienating, do you buy here and how long until it gets to $38? >> i think that it will go a straight shot to $38 to be honest. >> all right. that was 40% ago as we pointed out this morning on twitter. >> it is nice to be right. >> yes. >> and is it your largest holding in the charitable trust. >> yes. and why did we go so big in this? it is simple, carl, because they have the holy grail. nobody can reach the millennials and the right demo so to speak on the web except for facebook and they have figured it out with nonintrusive ads. these guys were always smart, but they had a bad ipo and now
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holy cow, the firepower of zuckerberg, and he is remarkable to generate clicks on ads by the people that you want. so if you are a major consumer of consumer products company, you have to call facebook and you must advertise. or buy. >> and the mom and pop paper, "usa today," all about the investors refriending facebook, and now that the people are whole theoretically, jim, what do you do now? >> well, you should get a wave of selling by people who always say, hey, listen, i'm back to even, and thank the lord. >> but there are not that many people who stayed. >> and 40 years in the wilderness and lots that happened before they got to cana canaan, but here is what you need to know, the facebook numbers are in a virtual circle, and meaning that if you listened to the call and you are not
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going to call omnicome, and you are saying, this is the biggest buyer i have and get me the 23-year-olds. >> and the flubbed ipo and what disconcerted the people in the early days was simply the growth rate coming down. >> right. >> now are you saying that it is reversing itself? >> they have a mobile strategy and even google which i love, because i think that it is great here and great opportunity, but google did not come up with a appropriate mobile strategy. remember, there is a vicious form of advertising and call it and one or two analogies. there is night time saturation bombing which is programmatic selling, and you give them a ad and they blast it everywhere and then there is daylight precision bombing, and say, i want to reach x. the anheuser-busch, and maybe after that quarter they have a lot of money, but this is embedded, reaching x and everybody wins, but i don't know why you would go with this programmatic advertising program of google if you can do the targeted campaigning because of
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the precision bombing without the lozs that losses. it is fabulous. >> the high of the day of the ipo was 45. >> oh, man. >> yes? no? yay? nay? >> well, the stock went up way too fast. it is a parabolic move. and i haven't seen moves like this in anything other than takeovers. parabolic. >> well, what is interesting from a longer term perspective, this is a company that found itself in a difficult position early in the life with the botched ipo, but more significant changes in the business that it seems to have effectively responded to, so doesn't that point to management. we all had the doubts to some point about zuckerberg's age and management, and it is a something to come out on the other side. >> one thing that is great is that they were abject, and we
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didn't know mobile and see it coming, but i don't know if you are in touch with the people coming out of college -- >> some the best producers. >> they wanted to go the facebook and always wanted to go the facebook, and this is a crowd of the people who are the smart nest the worest in the wo go the facebook instead of google. and i will say it is a sweat shop. they make the people from m.i.t. who could be at nasa, but nasa is cutting back, and they go there and work eight days a week, and that is enough to show they care. >> just like the beatles, and we will watch it. it is one to watch today. and by bill ackman's pershing square is taking a hit because it cost ackman $2.2 billion to acquire, and it is the biggest investment made for pershing square at cost. >> i can tell you that there is speculation that in fact air products is the target of one
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mr. william ackman who runs pershing square. >> what is funny is that fedex today, david, is down, and as we know they are not it. >> there was a lot of speculation when he came out with the letter on july 8th trying to raise money for an spv and it is unclear if he was able to raise that money for the special provision vehicle to make this investment. there was speculation that it was fedex as the target. he likes the higher profiles kinds of names, but in the case he goes after air products which we told you he was when they put in the poison pill citing unusual activity in the stock, and i had sources who felt strongly that it was, and bill would not confirm it to me, but of course, he did to us this morning to our own becky quick. but to this point, i have not looked in the last five minutes a 13b filing giving us a sepsns of what he is thinking. he has not spoken to the air
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products management, but jim, when you talk to the people who know the company they say maybe he is after operational improvements, but we trade at the three-year track record and the return on capitol and judge us by the metrics that we judge the competitor through, it is not clear what he is going to go through in owning this roughly 10% stake. they have a staggered board and poisoned pill to prevent him from going to 15%, and if he wants to file it, he will have to do it between october and the end of this coming year. you know, we are still questions, a lot of questions. >> you are stuck with the earnings. the biggest one deutsche bank talk about the pricing pressure and the potential headwind of a very big european business and say 2010 is the -- well, say, do 7. give it a premium multiple for the rest of the group, you get like ten more points.
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>> i mean that the company is saying, listen, we have had a 2013 total shareholder return of 21.6% through july 4th when we put in the poison pill which is more than double any of the peers in the group apparently, and even bet ter than that of prax air. so ackman is endlessly fascinating and here he is on herbalife and told becky, he has not cover ed a share. that has to be killing him. and jcpenney, marginalized to a certain extent and having made a huge change of management that failed miserably, and success in canadian pacific, but here going out to try to raise permanent capital and the spv and comes after a company that people say no m&a opportunity here, and what are you going to do? maybe a weird thing to take some of the industrial facilities and create a master limited partnership, jim. it is a real stretch. >> well, i don't know. there is an element that air gas is involved in this, too, of developing the great natural gas
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into, you know, into a business where you need welding, and that gas goes into the welding, so that is one niche business and electronic products and this is interesting and people feel it is a sleepy allentown company and having been born close the allentown, it is a country club and maybe you come in there and shake it up. but when they tried to buy air gas, they failed. >> and here is a comment from a student viewer, if you are a ceo, david, and the phone ring, and would you rather the kacall i.d. be bill ackman or carl icahn? >> bill ackman, because you have more ammunition in terms of being able to effectively fight off ackman at this point. you have questions about his decision making or track record and carl icahn at 77, top of the game. never been tougher. nef been richer. never been more willing to say,say,
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i will throw another $1 billion in the pie. we have more dell news, so i want to hear from him rather than ackman. >> and what about -- >> that is good stuff. and soon to come, he will drive the most popular vehicle in america with natural gas, and we will tell you about the new option that ford is offering. and the movie of spike lee and the kick starter campaign to raise money for the next film is raising con trtroversy, becausey is someone of his stature going to startup funding? >> and we go the comcast and soda stream and so many more when "squawk on the street" continues. i want to know, are you long neshg america? >> we at ford in the united states are competing with the best companies in the world. lackt the global competitiveness of american competitiveness.
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ford is announcing that it will soon offer a natural gas version of the popular f-150 pickup and the option is available on all 2014 versions.
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they say it cost the equivalent of 2:11 gallon which is well below the current gasoline prices at the pump. would you buy? >> if we had the infrastructure. they will put the infrastructure in the southeast, but this is al mulally saying it is not chicken and the egg thing any more, because we will build it and they will come, but right now, they can't. are there different fleets to fill up? i had a student transportation up, and they have a bus fleet, and u.p.s. is moving quickly to order 1,000 natural gas vehicles and this is what starts the revolution, because it is the most popular truck, and now if you are chevron or shell, maybe you have to install the natural gas extensions. >> well, jim, people are coming from the different sides of the aisle, but they say, boy, nice to see an energy bill out of congress to conceivably help this along, yes or no?
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>> it is not going to happen. >> it is not going to happen? >> no, it is not going to happen, and it is impossible to even imagine it. >> no energy strategy. >> well, the question is if we did have one, and we had an executive and congressional branch to put it together, would it help in the effort? >> well, what you need is to say, look, we will provide -- look, first of all. all you need is for the president to say, instead of the we favor all fuels, we have a once in a lifetime opportunity to go natural gas, because we are cleaning the skies and natural gas the break free of opec and natural gas is going to create a huge number of jobs, but the president won't give anything other than lip service it to, and that is in itself made it so companies are so unsure, and the engines do cost more, and the payback has been uncertain until now. and the president were to go and say, listen, we are going to make it that the fuel tax doesn't apply here. >> and you need to be able to fill up though. that is the basic problem. you have to go somewhere to fill up the tank. >> yes, but there is a reliabili reliability, and exxon is not in favor of the surface fuels, and
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there is a marginal gain, and natural gas tax that is hard to understand, and that need to give an incentive, but in the end, the big majors bp and exxon, and they have not faved using natural gas as a surface fuel. >> and boone pickens has been talking about making it a transportation fuel for years. is it bad for tesla? >> no, because the cars are not economic, and trucks are. i know they use them aggressively in argentina and netherlands, but in our country, because of the tank size, it is not going to work. ultima ultimately, it will. be but as boone pickens will tell you that the imported oil used for trucks is diesel. it is the dirty field, and if they care and a la bloomberg who has been right of getting the diesel out of the urban eareas like the waste management does for trash truck, it would be monumental for the particulates in the sky and the urban areas
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and the president just has to say, let's go nat gas for trucks and go out to the al mulally plant, and then their hands are forced a and thatly put it in there, and right now clean energy, and very few. two natural gas stations in chica chicago. this is ridiculous. ford is taking it. they are taking the bull by the horns. >> and that is amazing. >> and cummings on the conference call, and they have the best natural gas and they said nothing. and westport -- >> well, cramer's mad dash and then the opening bell after a break. i've been doing a few things for a while that i really love-- tdd#: 1-800-345-2550 playing this and trading. tdd#: 1-800-345-2550 and the better i am at them, the more i enjoy them. tdd#: 1-800-345-2550 so i'm always looking to take them up a notch or two. tdd#: 1-800-345-2550 and schwab really helps me step up my trading. tdd#: 1-800-345-2550 they've now put their most powerful platform, tdd#: 1-800-345-2550 streetsmart edge, in the cloud. tdd#: 1-800-345-2550 so i can use it on the web, where i trade from tdd#: 1-800-345-2550 most of the time. tdd#: 1-800-345-2550
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about six minutes before the opening bell and time for the "mad dash." what have we got? not since gecko went after teledar, and horseshoe loves the data, and the thing about ackman is that he is the focus of -- and today, judge wapner has chapman on saying that herbalife should go higher and air products and who knows that if he sells it and he has a big prof profit. >> well, $2 million is a large position. and he was buying here and here, and here. remember, we did the story last week, and he was still buying into, that and he said that the poison pill prevented me from going higher and created liquidity, but also created a higher average stock price for him to buy the position in. >> and air products, because was you been so great en into dell
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the breaking air product, and buying breaking news as opposed to the type of stuff that farad is not happy about it, but air products is a european source of revenue. and europe turns, air products turns. people don't understand how european-related it. so 2015 i can get there, but not now. i don't know, but do you break up the company, and break it into air and products and chemical. >> and in working on this last week and at least i had a little bit of doubt could this be ackman, because people could not come up with a constructive reason why he would want to be an activist in it. and we haven't gotten the 13-d and the reasons other than operational improvements. quickly on herbalife. take a look at it. >> chapman talking about it today on wapner and captain is a big bull on it. the stock had a spike, and then, david, you were saying that maybe they do a dutch tent, and lever going back and forth and maybe the financials the do it, but i was shocked that the stock
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went up just on earnings, because michael johnson is authoritative guy, the ceo, but he is still coming with the point system for, you know, like the pp, and the price to earnings to point system, but it was not enough, and ackman put out a statement that day and the profit takers came in. they are going to keep trying this, but with al icahn saying $250 million and i love it and maybe he can make $500 million, you won't get a higher stock price, but we will see what they have to say at the half with the judge. >> all right. we will listen to halftime of course, and we have more of course, and we will watch facebook of course and if it is go ing the stay above the ipo opening price. the bell is about 3 1/2 minutes away.
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>> well, the futures comes out like a hair trigger, and some slam it down wednesday afternoon for the fed and then that is the chance to circle back to the cable companies reporting good cash flow, and circle back to the anheuser-busch with the big number and the mastercard and i can't believe the blowout visa, visa, and these are incredible stories. >> there's the opening bell and the s&p at the top of the screen and big board bioamber celebrating the recent ipo, and over at nasdaq, arm holdings, the chip designer celebrating the 15th year as a company, and we will speak to company's ceo in an hour. >> they are academics and i like the way they talk. i like them. >> no question. jim mentioned mastercard and all time high up almost 4% which is some $22 and beats earnings, and u.s. volume up 7, and as you said, it is going to bring visale along for the ride.
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>> these are two stocks that people want to own. these are faux financials, and people want to have overweight in financials, and they say, i will own mastercard and visa and then you have it going. american express did not have as good of a rt kwquarter as these and these are incredibly well run companies. >> and this is some of the biggest companies in the country. >> everything that you want to be. >> and everywhere. >> yes. visa is a remarkably well run company and a lot of the regional and the community banks owned a stake in it. >> right. >> these companies are the big play of paper to plastic that is still going on worldwide this emerging marketplace, too. >> facebook at $38.16 for the first time since going public. above the ipo price and if you puts a side what it did that particular morning, jim, what a long strange trip it has been. >> and the dream is realized and you have a company that said, we missed the mark and now we are back. they have reinvented and now you
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are starting to talk about the big ad buys and remember omni coomnicon versus google, but facebook is where you can -- and talk to kids and they say, i did not click on anything, but i bought $100 worth of chi-- red hot chi pepper t-shirts, and so they are owning the ads and zuckerberg comes out and says our ads are the gold standard and no more dead growing plants or whatever. >> and now the analysis aside, is that how you are judging the name or momentum right now? >> well, this is a company that was heavily shorted and the stocks were heavily shorted because people felt they could not figure it out and in one fell swoop, they are the yellow pages and the way to get the local ads and the national campaigns and everything thought that twitter and i cannot wait for the august 7th twitter
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documenting, and turns out that a lot of people were thinking that twitter killed facebook, but the facebook daily users are up, and now they say it on the conference call, and now it is the dream realized. >> and 17.55 on september 4th with the stocks up 114% since then. remember the first day of trading opening at $42.45, a nd people will blame for years why the wheels fell off. >> empty-suited company, and i remember two guys at google and they said they are too young, and look! i'm way too old to be able to go to a company like this. the people at facebook are young and fast and smart, and the same thing with google. they understand that there is a billion people that, one billion one that are on facebook and if you are trying to develop, and you are unilever and you want to sell worldwide, you call facebook. if procter & gamble wants the game back, they call facebook. and h.a. laughly is saying, what
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is this thing? what is facebook, i want to sell more pnt. >> well, they may not call omnicon. and the big deal sunday announced and omnicom was up big, but now it is flat since the deal. >> people were saying to cut the costs, but will they get the big head and shoulders account? where is rg3 going to appear? facebook. facebook. facebook. >> yeah, facebook. >> we are is not mentioned comcast our mothership here, and beats by two cents and the revenues up by seven, but first quarter owning all of nbcu, and rev nooenues are up, and that w beat, and typically, david, not a great quarter for ads and sub
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ads and adding broadband of 147k. >> well, broadband is the key product, and the question is will you start to see the people pulling the ad video, but a it is not growing, and the sub growth is over for the cable industry in general, but not bad and operating cash flow continues. >> did you see that -- >> just to move up sharply. >> we work for them and i want to put that out, because if you say operating cash flows up 23.5% and the free cash flow up, and we are talking about executionable and profitable for a all. >> and brian edwards of comcast addressing the notion of cash flow this morning on "jacquessq the street." >> well, all of the businesses grew revenue, and this is a real highlight for me. so our decision to invest in another $18 billion in content, we e feel great about that.
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all of the businesses for the first half of the year had a strong yearb and i'm please pleased with steve burke and the nbc universal team. >> with that in mind, the dow is up 63 points. >> yeah, but people had japan down and this is about the united states. i keep hearing that the earning season is not good. down know what people are looking at. i am stuck with the four walls of corporate america that i see. i see great earnings. defense, great earn inings, and great earnings cable, and great earnings for most of tech. some old line tech that didn't do as well, but if you let intel and microsoft define the earnings period, you are a su sucker. a sucker. it is facebook defining the earnings period, and i will tell you when i look at the internete old days, because they are making money. and pharma numbers are not as bad as they were and companies restructuring and you can win in air products and pharma and the
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only places that you are losing are european banks, because they are issuing equity. >> a lot of it. >> we didn't talk about that. >> and bob pisani is on the floor watching what else is movi moving. >> moving up here and getting out of the 155 range, and adp and gdp, did it matter? well, adp is the indication that the fed will get the taper prog gram in september, and the revisions are confusing for the gdp, but we will let the economists figure it out, and you look at the recreational goods and vehicles and autos up 4% in q2 compared to the same period last kwleer and more evidence if you needed that it the auto industry is back big time. did you see the delphi numbers? big beat, and should open up down, because the q3 guidance is low aggressive expectations, but that company is back and tripled the stock since it went public again. was that late 2011 or so? more evidence that the auto industry is back here. and look at the other earnings
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reports, and i know you mentioned mastercard, but the numbers were out of the park and i hear that the conference call has gone well. everybody is complaining about the lack of revenues everywhere and not at mastercard, 15% net revenue increases, and that is a huge number and we are at a historic high, and not just volumes, but the transaction percentages are growing and the conference call, we are talking about the 20% plus earnings growth and big, big number there and the hotel rates and i tell you monday i have represented hertz three times and the hotel cars are going up, and the hyatt nu numbers are outstanding and the ceo went out of his way to talk about higher growth rates for the hotel industry overall. so, jim, looking at higher hotel rates and looking at more usages for mastercard all over the world, and increases in volums s and transactions, and somebody is spending somewhere out there. jim, back to you. >> thank you, bob.
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your travel is on fire, and i forgot the point out that the "wall street journal" just wants to focus on the fertilizer stocks, that is a downer. so maybe this is it. >> it is on the front page of the paper. >> they will talk about potash and mosaic, but mostly talking about fertilizer and how it has colored the entire earnings period and stunk up the toy. they could not resist. now over to rick santelli and bonds. >> well, i was fantasizing about buying a ford f-150 like we converted. congratulations to ford. my hat's off to you. listen, looking at the data, i can't tell you how inflated the current gdp number is or how affected the first period revision is, and the new calculations. when you make a wrong turn with the gps, it says to recalculate and that is what we will do. today, the interest rate shot up to 2.70 on a 10-year, and notice the right side is now higher than the left side. that is key.
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moment momentum. if we look at the boon, 5:00 eastern the numbers came out for unemployment and only improved 12.1 versus the 12.2 which is revised. the yields went down, and the pattern from the 20th of june on the chart is the same. and the dollar index caught a whiff of the interest rate up, and it improved as well. but if you look at the dollar on the long-term chart, symmetry, but we need to get above 82 on a closing basis. back to you. >> all right. thank you very much, mr. santelli. the bond report for a rapid faber report. we will talk dell as we often do at this time. today, more news, and the special committee of dell's board of drirectors saying, hey we are not changing the voting standard by which the shareholders vote on what is your increased bid, mr. dell and si silver lake, and we will ep kite as it is. but if you are willing the go to the $13.75, we are happy to push
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the record date for the vote and the vote, itself, of course, off. maybe the record date beings august 10th, and a change in the shareholder base is conceivably good for michael dell and silver lake. this is what i can tell you at this point, sources close to dell and silver lake say they believe that any change in the record would not be enough for them to win the vote, and so thus far seem unwilling to say that we will give you $13.75 without conditions. i don't quite get it. if you are willing to pay $13.75, you are willing to put it, and put it to a vote and it is better than $13.65, and all of it leaves us at this point uncertain as to where we stand. it could be that we actually hold the vote on friday we -- they hold the vote friday on -- >> it does feel like we. >> yes, it does feel like we at this point and a part of the whole crazy thing, but we will see. maybe they will change their mind in the intervening 48 hours before the vote friday.
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but at this point, again, sources close to dell and silver lake continue the tell me now and they don't believe it is enough with the change in the record date, and therefore, as they said, they would go back to 13.65 without a change in the voting standard, and they did not. >> more to come. >> it is falling apart. >> falling apart right here right now. >> and the chicago pmi is coming up after of the break. don't go away. peace of mind is important when you're running a successful business. so we provide it services you can rely on. with centurylink as your trusted it partner, you'll experience reliable uptime for the network and services you depend on. multi-layered security solutions keep your information safe, and secure. and responsive dedicated support meets your needs, and eases your mind. centurylink. your link to what's next.
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welcome back to "squawk on the street" and the envelope please. we are looking at a read of 52.3 for the july chicago purchasing manager survey right from the source. okay. alice, how does that stack up in history? >> well, rick, that is about the best level since is the april and may area and not a historical event here, and we are coming in below consensus with a small upgain at 0.7. the things that weighed on the barometer are the new orders and production component are the two most current areas of
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employment, and unemployment was down and that is with a rise in new orders. >> what are the new orders? >> well, we don't give it out to the media right now. we are telling you that it is down and employment down a little bit, but running above new orders and production level. what helped out the order was o order backlogs and lead times. once you see the lead times the purchasers get nervous, because they are used to on-demand economy. so once you see it linkeded out with the lead times they place out the orders for the future, and that is why we are seeing a lengthening out in the backlogs. >> i'm confused. so the inner workings of the index i can't see until what time? >> 9:45 eastern time, and that is when they are released to the public. >> i got you. and one final note, really quickly, did the survey have written issues that were
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importan important. >> i want to address prices paid up for the third month and this is big, rick, because what we are hearing is that the suppliers are not saying no. >> okay. carl, tossing to you, but the last point is important, because the emphasis is going up on the prices paid and we need to monitor that, and a lot of the o other numbers don't show that, and back to you. >> thank you for walking us through the internals, rick santelli. >> it is a wild ride for some of you on facebook and we remember the haters when the shares were $17 and now the stock is back to the ipo price of $38 a share for the first time since may of 2012, and brings us back to the squawk on the street, and what is the investment stat for those investors who sold at $17 an tweet us at squawkstreet, and we know there are some. >> yes, with a retaining wall,
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hisser to cli, you will get selling, and there are people who say, thank heavens and maybe the opportunity to let it come in a little bit. the opportunity. >> and some technicians, jim, at 16.90 said it will either turn into support or firmer resistance. i mean, you are thinking that we are at a pift point tvot point ? >> well sh, i have to say that have seen over and over again that the futures blast over what the fed says and trying to get the market down. a lot of the hedge funds and david you feel this way, that they have not kept pace with the s&p, and if you are a hedge fund, and last day of the month, you have the blast out the futures, pause they don't have the exposure that we are seeing and the numbers at the bottom of the screen and i can't believe how many companies are doing so well. >> it has been quite a market to say the least. >> quite a market, and air products. >> especially since the headwind there from the fed and then we moved over. merging markets have not moved past it and the bond market has not moved past it, but the stock market has. >> and it is a whiskey day and
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bud day and vodka day. we have beer and wine -- >> it is a margarita day? >> well, that is an interesting question. >> i prefer that. >> well, mescal is equivalent to the malt. >> well, we have not mentioned soda stream. >> oh. >> and up 12%. >> that is a good number. >> and they beat street by 18 cents and full year adjust and the ebitda number. >> i don't think that soda companies are worried. >> i mentioned dell, but it is not down this much and this low since the deal buy was announced and $12.54 and real doubt creeping in as i have reported that michael dell and silver lake do not appear to be staying
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with $13.75 to allow a change in the record date which would conceivably give them a decent shot to win the vote or better shot, but they don't believe that is the case to give it. and they are trying to let the market know it is $13.65, and we will see, but if it is, many people on the stock market saying it is not going to happen. >> people know it is a pc company. >> and leverage will not occur and down on friday. >> dell owns a pc company, and hello, it is not that good of a business, hp. >> and let's get apple in here as well. it is not up a lot, but it is the best month for the stock since early 2012 and up about 13% this month. >> and the multiple got too low and business is not that bad and analysts cut it. you will see that if the stock comes down, you will cut the price targets, and you know, david, they are arguing real insight when they do the price target thing. >> and the headline, tim cooke
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the chairman of china mobile, and you know that. >> and tim cooke is quietly doing the right thing off of the radar screen and back to the conference call, it was pretty good. they are saying analysts, you don't know what you are doing, and the analysts that cut the price targets and the numbers and they say, oh, no, i have to go raise and my chief strategist and the research director is thinking of firing me, but not tim cooke, but the analysts. >> and now, forget the big hollywood studios, because spike lee who brought us films like "malcolm x" and others is going to be here to discuss his next film. [ male announcer ] come to the lexus
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six in 60 with jim. six stocks, jim. people are worried today. >> well, that ri worried about a second half story and do not sell the jenworth, because it is a buy. >> and what about this one? >> the f-150 fueling station and this a companyb to get involved in it. >> washington management? >> i cannot say no, because the strategy is taking hold. well done. >> the ceo is on in the 11:00 a.m. hour. okay. ques questar? >> i was shorted, but i got it
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back. >> and now you see this one? well, we have agco doing better than deere. >> and morgan stanley downgrade ing the charts. >> that is a mistake, because this is a company that is the natural gas play, because you need the equipment to convert to lng, and they have the own lng fueling station, and they have done a remarkable job. by the way, air gas, and air products and chart are all kind of in a similar area, so maybe there is hope for air products to go higher. >> and what about this one this is. >> well, two of them, athena is the hottest stock in health care, and this is about health outcomes, and buffalo wild wings and people were worried, but wing prices are going down and it matters tremendously, and it is no longer by portion but wings and so now you won't get hurt any more on the other side. >> well, we will see you tonight at 6:00 and 11:00 p.m. eastern
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time. we will get to simon and see what is coming up at 10:00. we will have the ceo of arms holding which has the chips across the industry live on the pr gra pro gram, we will hahave chet kanoji, a, the ceo of aereo. and spike lee will be here to talk about how he wants you to have an addiction to love. ♪ the world is changing faster than ever, creating new opportunities for those who stand ready to seize them.
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the street," and our road map begins with faceback with the stock rising more than 40% in the last week to get back to the ipo price of 38 today. and will the stock finally get back some of its friends? thus, if you have a smartphone you probably own a piece of arm holdings, and the company has the chips in almost every part tof the technology industry, an the ceo will join us live with an inside look. >> and cbs and time warner
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battling it out. and aereo could be reaping the benefit benefits. >> and ahead, spike lee will join us live on set to tell us why he is choosing kick starter to fund the next big film project. >> we kick off with the second quarter gdp in u.s. climbing at 1.7% in the quarter. there is more to the report than that, and steve liesman joins us this morning. it was 84 pages, steve? >> yes, including the e revisions, and i could sum it up that the data is bet ter than expected both jobs and economic growth, but overall still not that strong, and economists however still believe it is strong enough to keep the fed on track to taper in september. here's the data that we are talking about. adp coming in 200,000, and the street was looking for 183 and maybe some modest upward revisions for the forecast for the friday's job report which is
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184 total and the second quarter gdp expected 4% and coming in 1.7 and the government even though it is negative doing better than expected and sense that the government numbers could be revised down in the prints of the future number or that the weakness shows up in the third quarter, all of it because of the sequester. concern ant strong inventory numbers helping to be revised away. so nobody is going to the bank with the number. maybe to the bank with the revisions of prior quarters so that the first quarter of this year was revised down by 0.7. and 2012 revised up with for a stro stronger year which could explain the stronger growth last year. and the recession not so much. up 0.4%, and the expansion is better than we thought up 0.6%.
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and this is what we have on the statement of the gdp by greenhaus, if friday's payroll is up, it is going to help. kelly. >> i am surprised because if you have seen the market reaction and we will have a couple of hours to hear from the fomc and taper is what has been happening if you look at the 10-year, but we are talking about gdp increasing at barely year-in year end rate, and in order for the fed to hit the target we have to get growth of in the range of 3%. >> 3.55 is my estimate before the revisions. >> yes. >> and the fed is not looking to hit the number exactly and the forecast is 2.45%, and what the fed wants is confidence that the economy is rebounding in the second half from weak numbers in the first half. i dont n
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i don't know if it has to hit that number, but you may well get in december a down in the forecast and then the fed ends up tapering if that is the case. the july data is decisive and that is why dan greenhaus says that the numbers have to be in line with 183. the fed wants to do this, kelly, and i think -- >> no, you are right. they clearly want to. because a lot of the pressure on friday's number to be a strong one. >> but it does not come in the vacuum. they will give us a taper and maybe some guidance to stay at that level for a while, and who knows maybe tinker with the plans or the guidance on when they raise rates to bring that unemployment rate down a little bit. >> yes, we will watch the bands. thank you, steve liesman and plenty more with steve coming up. and we go the facebook with the ipo trading at $38 a share this morning and the stock has had a major, major move this morning and will it go higher? dennis berman is the marketplace
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columnist with the "wall street journal," and eric kessler is a se senior analyst with j.s. stream, and he says that facebook is his top large pick. and eric by the day, we are learning zuckerberg and the colleagues vit back together, and what about the conversation and what if they seriously monetize 1.1 billion users? >> well, last quarter is evidence of that. a year ago mobile was a headwind and now becoming a tailwind, and the mobile revenues grew sequentially, and basically zero a year ago and now mobility is 40% of the revenue and the amount is never the amount of users, but it is monetization, and that is driving the revenue growth here. >> dennis, what do you think of facebook exchange to allow the advertisers to target the users according to the web browsing history. is that game changer for you. >> well, it can be, because it is leverage of 1.1 billion people, and if you can get
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enough advertisers and create a reason for them to come into the system, you have a printing press. it is the same as the newspapers in the last century, a scale. and facebook is a global scale. it is worth pointing out what we call a success. if the day of the ipo, we said that facebook would be trading at the rate for july of 2013, would that be a success? not probably, and we are calling it from the stock price which was in the teens. so we have are to put it in rational perspective here. >> okay. then let's talk specifically rational about it. we have on nielsen on facebook that more 18 to 24-year-olds are on facebook than watching the four major networks and looking to sell advertisers video tv commercials for $2.5 million a day, and is that a game changer?
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sxwlel, with the investors have been expecting video advertising would be a game changer and increasing the monetization as well and instagram as well. they have over 100 million users fully engaged. one of the concerns is that facebook was losing that populati population. and if they are losing that population, it is due to instagram and that has not been monetized yet. >> and as they mentioned in the conference call they want the bring advertising to the infa gram, and that is a lot of upside. >> how do you do that, dennis? bring more advertising dollars to the instagram. >> well, just like facebook started to exploit our information, so will happen with instagra instagram. you can roll an advertisement to the side or give people special access for the business advertisers. so i think that it is a blank and potentially very fruitful canvas. >> and aaron, what they are doing is more potentially using
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people's information and co-location from instagram as opposed to showing the instagram's ads and is that in your view one way they will go about this this year? >> well, we haven't seep it yet. it is going to be more of the facebook ed a vadvertising and news feed, and they also love videos as well, so you could see videos within instagram as well. and a number of opportunity, but we haven't listed that yet. >> and another fate of cheryl sandburg, is she going if go? this is a great moment for her to go. she has written book, and been on "60 minutes" and is this the moment -- >> are you hearing chatter, dennis? no. what else might she do out there? >> well, you want the leave at a high note. >> you are naughty to raise nit that way, dennis. aaron, before we go, let's
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subject sobriety here, and we saw netflix rise in the last year, but facebook is a much bigger market cap at $90 billion. how do you rationalize where the stock will go from here? >> well, i would say that facebook is better positioned today than a year ago. a year ago the revenues were slowing down the 30% growth and now reupped to 60% advertising growth and so a better position today than when it was 18, and now in a better position today. you have and upward bias with two estimates at this point. >> what was the price target there? >> we have $38 target currently, and there is some buy up for facebook estimates as well. >> dennis berman, and reports that he may beleying the journal imminently to go out on a high, and completely wrong. guys. >> thank you. nbc universal, parent company
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comcast improved the revenue this morning beating the estimates and seeing growth in broadband specifically. comcast's ceo brian roberts said that the company had the highest yo growth in high speed saeldz. >> we had a good second quarter and 6% revenue growth, and 6% cash growth and right around there, but we had the best quarter in high internet speed sales and 20% better than the same quarter last year than we have had in the last five years. >> comcast is our parent company and we are relieved that there are no regrets about finishing the purchase, and robert said that the timing of buying out the rest of nbc universal looked good and the shares are trading up by 5.4%. >> thank you. are the days of gas guzzling over? ford announced a gas-powered truck. we will tell you when you can get your hands on one, and movie
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guaranteed! ♪ sleep train ♪ your ticket to a better night's sleep ♪ ford announcing it will start selling a version of the f-150 truck that runs on natural gas. phil lebeau joins us from
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chicago with more on that. >> good morning, carl. this is is one of the things that i hear a lot from people, and when i can get a nat gas version of the truck, and that question has come quite a bit not to me, but the ford as well. ford is saying it will start offering with 2014 model a nat gas engine for the f-150, and this is a buy fuel option. you get the regular gas-powered f-150 and you can add on the option of nat gas power as well. they are looking at the option of making it all nat gas if that is what you are looking for. and now this option that is out there comes at a time when more and more people are looking to fuel up vehicles with natural gasoline, and the question becomes is the infrastructure ready around the country, and ford says it sells approximately 15,000 nat gas vehicles in this country, but keep in mind there are 1,328 nat gas refueling
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stations in the united states. compare that with 121,000 regular gasoline filling stations, and that is the question that is out there. this is certainly going to help, and ford is hoping to get some benefit of this in terms of the f-150 sales and the shares of ford are trading above $17, but the bottom line is, yes, the most popular vehicle that has the nat gas option, and the question is how much will it help in terms of the adoption of nat gas options. it is not going to hurt, but the question is how much will it help? >> an important one as well, phil, because a lot of people of electric vehicles have become pop popular nand is the coal fired an nat gas is cleaner. >> right, right. and the benefits are there, and potentially, you are looking at the range of a regular gasoline powered f-150 being in the 600 to 620 miles on a full tank of gasoline, and if you buy the nat gas operations, you are going to
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increase the range capability ther there. >> they have plenty of nat gas to go around there. and phil lebeau, thank you very much, sir. >> coming up, filmmaker spike lee is standing by on the new york stock exchange and he will talk to us on the set about bypassing the system to appeal to the public to fund his next film by kick starter. we will talk to him next. if you're serious about taking your trading to a higher level, tdd#: 1-800-345-2550
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we had breaking news impacting both the banking and the retailing space. the district court has basically struck down the federal reserve rule on debit fees. you recall in 2011 the federal rule imposed a debit fee of 21 cents on transaction and a number of basis points that had to be paid by the retailer, and essentially some retailer filed a lawsuit claiming that these fees were too high. and so in the court ruling it favor favors these retailers who want the lower fees and the court said that the federal reserve clearly disregarded congress in setting the rule. the rule was mandated by the
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dodd/frank act, and the 21 cent fee will remain in place until a new rule is written, but again, the district court striking u down the federal reserve rule for now. carl, back to you. >> between that and bernanke having to sit for the deposition, it has not been a great week for decisions and the fed. >> they have had a bad week for the fed. certainly, this is not good either for the fed or the banks, and we will see if there is any reaction in the markets to this, carl. >> and of course, we have a fed decision coming up in a few hours with the dow up 53. mary, thank you for that. spike lee has launched his very own kick starter campaign and he wants to raise $1,330,000 to fund his next feature length fi film. and spike lee is here at post 9 and great to have you here, spike. >> first time i have ever been to the new york stock exchange. >> it is an outrage. >> personally. >> what do you think? >> you lived in brooklyn for how many years? it looks bigger on television.
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>> it was. >> it was. >> and now you guys, thank you for having me, and i appreciate it. >> you have done a fair amount of press on this. well, the press is how you get t the word out, and we need to get the word out. we have 21 days left now, and the thing with kick starter, if you don't reach your goal, then i give you a german word kaput. >> people say you don't need 21 days, because you have your own money to put up. >> people can say a lot of things, but the fact remanins that what you are doing with kick starter is that you are going directly to your fan base. people want us -- people have done this to do their plays and albums, and i have funded my films. my last film was completely self-financed. >> do you regret that? going that route? >> well, no.
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if i can't put money on myself, i am always going to bet on myself, and and putting money i kickstarter project, too, and the way that the narrative is that spike lee is some hollywood big shot coming in to get whatever. it is false. it is a falsehood. and that's why i'm here trying to dispel that. >> you have raised about $425k. >> right. >> you have 21 days left. >> right. >> you have gotten big checks from steven soedenberg. >> right. >> and would the big studios not finance it? >> they won't finance it, because it is too small. the studios are dealing with the big films that can open wide on one day all across the world. >> oh, come on, spike. you have a worldwide brand. you have two academy award nominations. >> sir, can i ask you a
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question -- >> you know my biggest denzel, and the biggest film together? what is it? "inside man." >> yes, where is "inside man ii"? that is my biggest hit. >> why not? >> well, i can't talk about what the studios do, but all i'm saying is that the perception that i get any film made that is not true. i worked on ten years to get jackie robinson made. >> and somebody wrote unkindly on the internet if a filmmaker can't get funding after a career like his, maybe it is time to hang up, and move on. enjoy the wealth and i read you are worth $40 million. >> and how much you say i have? >> $40 million. >> well, first of all, sir, you are not my accountant and you don't know how much money i have. >> well, you are a phenom by most standards. >> sir, sir, you do not know my wealth, and many, many filmmakers who have much more money than me can't get their work made. so if you don't get your -- if
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you can't get a book pubished you should stop being a writer or a record deal, you should stop being a artist or filmmakers you should hang it up. that is not fair, sir. >> you have said that the film is like an addiction to blood. >> sir, maybe you should stick to finance and not cinema. thank you. >> how much did it cost you the make "do the right thing." >> that was a studio film. $6.5 million. and the first film "she is going to have." that is my first film. >> that is what i was thinking of and that cost how much? >> $175,000. >> sorry. i got confused. >> so what i am trying to say is that this is not something new. i was doing kickstarter before there was kickstarter, but there was no internet, and social media was me writing letters getting on the phone and getting the money, so that the only
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thing that has changed is the technology. >> i know, but is it less expensive or more? "she's got to have it" was $175,000, and that was a great story. >> 1985. >> i know. i remember it. >> i am glad you brought that up, because the studios would not have financed that film, because at this time as far as black people was concerned if eddie murphy and whoopi goldberg were in it, that i weren't making it. so it is a perfect example of how something became a big hit and did not come through the hollywood system. and to insist you, sir, to insist that if hollywood does not want to make a film is unworthy, as mike tyson would say, that is ludicrous. >> maybe you should put tyler perry in it. >> that is ludicrous. >> and let's talk about distribution and we talk about netflix versus television, versus studios and how inventive are you willing the be in erm
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tgs of how to get the product into the hands of the consumer? does it have to be a theatrical release? >> well, it is not me, sir. all independent filmmakers are using all means, web series, and going directly to dvd. netflix has become a studio. netflix has become a studio. they are power. so, the whole game has changed. the whole game has changed, and crowd funding is the wave of the future. where you go direct ly to your fans. sir, i made films, and let me finish before you speak. i made films for over three decades and let's name some of them -- do the right thing, school days, malcolm x, inside man, he got game, i have amassed a base. so what i'm doing is to go directly to the people who have received humor, good feelings, joy, stuff to think about and
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say, i have done this for you in the past for as little as $5 and you can help me get the next film made. >> but you may not have enough time to make the film, because anybody who gives off$10,000, you will take them out to dinner and take them to your seats on the knicks and that is a lot of people potentially. >> sir, there is 41 home games and when we get our money, we will be done shooting before the home opener at madison square garden, the world's most famous arena, thank you. >> is there a chance, spike, that you have made your last studio film? >> no, i have a film coming out thanksgiving called -- whoa, whoa, whoa. i have a film called "old boys" starring josh brolin and samuel jackson which is going to do very well. so no shape or form if i'm saying that i'm done with hollywood. i'm a hyphen and i do independent films and studio films, too, and i'm not
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retiring. even though he wants me to go, i am not. >> and i like how you have blackberry for the e-mail and iphone for the web? >> well, my fingers can't work. i need something to file on that thing. >> i am the same way, too. and i am wondering real quick as well, when it comes to the next movies and the hollywood system, we have seen high profile industry collapsing under its own west and seen the george lucas and the steven spielberg's saying that the whole tent model is not sustainable, and do you see the crack there. >> yes, and that is why you brought up steven sodderberg, and he pledged $10,000 and he is no longer work ing ing in the fe films and working cable television to be honest, most of the stuff is on cable these days. >> yes. >> and this is so interesting when dan nun goes up to danny aiello and says, i need two
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slice slices. >> extra cheese. >> thank you for coming in, spike lee. >> thank you, everyone. >> and check him out on kicksta kickstarter to get to the $1.2 million. >> simon. >> in the meantime, when apple and google are competing, we will talk to the ceo of the iphone to take a look at the smartphone industry.
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welcome back to "squawk on the street." i'm bertha coombs, and bearish number coming in on the inventories after four weeks of decline we saw a slight build of crude supplies up 430,000. we also saw an inkrecrease in ts of the gasoline of 770,000 barrel barrels. however, there's one bit of a silver lining that we continue to see a drawdown from curbing, oklahoma, which is the delivery point for nymex crude down 1.9 million barrels and refining was down about 1%, so it is a very mixed report. we are seeing now crude giving back some of the day's gains, but holding in here, and that
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cushing supply remains to be a draw. >> and we had the fastest growing quarter of the year and a major beneficiary is british arm holdings who put the smart in smartphones and their processors are found in 90% of the smart devices. fresh from ringing the opening bell is the ceo of arm holdings mr. simon segar, and thank you for your time. >> good morning. thank you for having me today. >> you guys have had here a business that is basically profited in a way that some analysts liken to the people selling shovels in the gold rush. how concerned are you about the competitive threat now that intel has announced it is going to try to come after your space with the smart chips? >> well, the good thing about the smartphone market is that it is very big and room for lots of people to compete. at arm, we think that the competition is good and that the diversity that creates in the end product is a good thing for the consumers and i think that it creates more innovation and better products at the end of the day, and we welcome the
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competiti competition. >> you are new at the company that you call the least glamorous company in the ftse in london, and do you want the company to be more glamorous or happy to stay out of the world's attention for the most part? >> well, you know, really what we focus on everyday is creating great technology and working with the customers to deploy that and helping to ensure that the great technology gets into the hands of the people around the world. so, you know, that's the danger of it. obviously, you know, you can do a little bit of marketing on the side, but the primary focus of the company is deploying the technology. >> mr. segar, it's simon hobbs, a fellow brit, and you say that competition is good in your space, but it can also be brutal as we know so well. your market cap lost in a short period of time earlier in the summer about one quarter of the valuation because of the intel move, and i think that samsung, and somebody had a wind with samsung that wasn't yours.
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how do you assure that, you are go ing to says a sure best practice, but how do you move forward to make sure that arm survives in a brutal environment where things can turn so rapidly? >> well, you know, what we have been doing ever since the company started developing low power very small dice-sized microprocessors and building a large network of partners and a ecosystem around the architecture. in the short term, you know, market might go down, but what re really matters is the long term, and the continuation of the technology that we have been developing for so long. so we are focused on our road map of the innovations to deliver lower power and higher performance and the continue to build the ecosystems of those around arm, and get the scale out of the ecosystem around arm and that helps to lower the cost
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of delivering the products at the end of the day. >> sorry, i didn't mean to interrupt you, but what happens if one of the partners says that arm has a market cap of $18 million and better within our company than outside? i read that when you joined the company 22 years ago it was operating from a barn in cambridge here, and you are all emotionally connected to the firm. if an off came from somebody like apple, would you maximize the shareholder value, and say, maybe we will be taken out, and maybe i go to one of the people in the ecoe system? >> well, to be honest, i don't spend a lot of time thinking about that, because we have a huge opportunity in front of us to continue to deploy the technology. and remember, we are not just in the smartphone, but a multitude of products. as the drirector of the company i have to take the shareholder value as a prime concern, so we would have to obviously take something like that seriously, but the value of arm is in the
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independence, and the fact that we service pretty much the entire semi code of the industry, and a big ecosystem of partners who have profitable businesses around arm, and the value is in the independence, and with the opportunity in front of us, there is plenty of scope to deliver the value to shareholders by executing the business. >> certain ly one way has been y higher royalty rates, and a do you see them heading north to potential 2 or even 2.5% over the longer term here? >> well, the company is based around a licensing and royalty model through delivering more value through the customers is how we can increase the royal tis, and so we are not in the market, and saying, hey, we have a strong position here, and sorry, everyone, the prices are going up. we are focusing on delivering new technology such as graphics, such as intellectual property that helps people manufacture their chips in a more effective way. >> and in other words, 2% may be the top of this move for now?
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>> well, it could go further depending on the mix of technologies. >> okay. simon -- do you want to briefly say what the mix of technologies is before we go? >> sure. we have the his or the line of products an over time, we have added multicore processors and the capabilities of 64 bit proprocessing, and added video and graphics and potentially depending upon which technologies the customers use, the royalties can inkreecrease the price of the chip north of 3 3%. >> thank you, simon segar, and once again, the new ceo of arm holdings. and the dow sup 109 points which is a new all-time high and all-time intraday high for the dow jones industrial average. the top of the session has been 15653 and the s&p is up again
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just a stone throw's a wway fro 1700. another tv blackout is looming as time warner and the cable wars are heating up. we will talk to the ceo of aereo next. [ male announcer ] these days, a small business can save by sharing. like carpools... polly wants to know if we can pick her up. yeah, we can make room. yeah. [ male announcer ] space. yes, we're loving this communal seating. it's great. [ male announcer ] the best thing to share? a data plan. at&t mobile share for business. one bucket of data for everyone on the plan, unlimited talk and text on smart phones. now, everyone's in the spirit of sharing. hey, can i borrow your boat this weekend? no. [ male announcer ] share more. save more.
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welcome back to "squawk on the street." i'm josh lipton and we are watching maco surgical making a move. the revenue is 19% higher as the number of hip surgeries is using its systems, and analysts are telling me that the expectations were low here and many fearing much worse results. mako had a choppy 2012 last two quarters in line of downward revised expectations, but that stock is the up 17% right now. carl, back to you. >> thank you so much, josh lipton, back at hq. and while a fee dispute between
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time warner and cbs is going on and there is a bigger worry for other networks, ar rio, the platform that allows you the watch tv online expands rapidly and available in boston, new york, and salt lake city, and chicago are on deck, and now joining us is chet kanoji who is founder of aereo joining us at post 9. glad to have you back. so much written this week about not only the time warner and cbs deal, but where things stand between you and hopper and fox and where are we right now? >> i think that we are at the beginnings of where the shift is, and i think that people are validating the courts in particular that the consumers' rights on technology need to be protected. that is the starting point. this is a precursor to what the future is, which is technology is going to be independent of vertical packaging or monopolies
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and it is a great thing for the consumer consumers. >> we asked you whether or not you felt that it would go to the supreme kour and you didn't feel it was out of the question, but you feel the same way? >> well, we look on a daily basis that whatever comes our way, we will deal with the challenges, and it is what it is. >> and you have raised about $65 million, you told me, and how much more, and this is a fairly capital intensive business to put the antennas somewhere where the people can get this over the air broadcast. >> it is capital intensive in a website sense. you know, we have not disclosed, but think about it as roughly it costs us sub $50 per subscriber in capital expense which is a five-year life cycle of the equipment. >> and cheaper than digging up the streets. >> and cheaper than a box in the home which is the key point here that in the cloud the economics change dramatically. so it is, but it is on a relative business capital intensive and we will continue to expand so that mean s ths th
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will put in more money in the company. >> and what about those who say it is a litigation risk and that is what this company is, one big potential business model that is not firm and you are done, out of business? >> well, every business has risks, and ours probably has two. one is our assumption legally correct, and so far, we have demonstrated that absolutely it i is. and the second is what is the consumer mix going to look liket the end? i think that it is interesting to read "the new york times" article that laid out that if you can put together a couple of different services in netflix, and other things, that is a compelling price point and you will get what you want. and at 1/10 of the price give or take and that is the future. >> and i was going to say as well sh well, we are we have google chrome cast and mossberg reviewing it and people talking about the $3500 device, and is this a partner to you or a threat to the business?
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>> no, all of the devices, and the biggest problem that exists today is simplicity, and the tech savvy consumers are okay consuming the video and the laptops or the phones or the tablet tablets, but people want it on the television set, and chrome cast allows you to do that and ar rio will continue to public the applications, so more can come on. >> so you piece them together like a patchwork of services to kind of bypass the traditional cable model. >> what is going to happen is two or three of the options will merge in a meaningful way. libraries and lives. we are going to be access to live, and most people are accessing to libraries and unique content. >> i am struggling with the long-term of the business and when i asked you last time you dismissed it out of hand and did not answer my question, so let me try it again. ultimately the providers own the content, and amazon and others are willing to pay for that, so
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i don't see how you survive in the long term in that environment. is the idea that you become a portal in the sky that everybody is watching live television and then at some point, you, too, will pay to have cbs? >> there is a distinction between free to ware which is by default free, and part of the broadcast is part of the public license. >> that is doing the go, and cbs is not going to maintain a public license if you trip up the time warner. >> well, a good example is the local news of 5,000 or 6,000 stations somewhere in that range that create local news that allow on the audience aggregation as part of the network. so you are saying that if you take that away you will eliminate local news and broadcast in the country, and i have a hard time it is that easy to do. it takes a long time for those habits to change. >> and we have watch ed ginnett
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buy belo, and so what happens if you win? were those dumb moves? >> we are great friends for them long term, because the technologies can be helpful in local news to create a royal destination and as you called ate portal in the sky for people to come to. the aereo technology start is pl platform, and it is decoupled from a vertically integrated video company where anybody can create video and content and publish to people, and that is going to survive irrespective -- >> has netflix and others improved to take the content? >> well, the access to live on a broadcast basis and we will see what happens after that. >> chet, we will see you soon, i hope. chet kanoji joining us from aere aereo. >> and shares spiking higher than the last week for symantec as they beat the first quarter.
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keeps a close eye on the dow. not quite up triple digits right now but it was so that's a new
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all-time high for the dow jones industrials. we're watching facebook at market cap of $91 billion. it's now the largest u.s. company not in the s&p. >> wow. >> after crossing $38 earlier today. isn't that kind of crazy. let's get to the cme group in chicago with rick santelli. rick? >> thanks, carl. over the last several days the discussions continue to heat up, and i imagine they will again today because the data we could argue how much better but the data wasn't horrible. it's not running a race, but it's improving, therefore, rates are moving up. but here is the big discussion that seems to be getting more gravitas and that is, listen, if you're a long-term player in the marketplace, you have to avoid the fixed income markets, you have to avoid the t-bills, you have to avoid the 3s, the 5s, the 10s, that any smart investor would be investing for the long term in the equities and i completely understand that. and whenever the discussions turn to some of the short-term moves we may get, maybe yields will take a bit of a retracement
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at some point, maybe the ten-year will hit closer to 3% and rally. don't try to play for those. that's being a short-timer, you want to stick with long term. i'm sorry, it isn't what history tells us. this is from my buddy jim bianco. what it shows is going back to 2000, if you would use the three-month bill total return as a proxy for cash, and it's a pretty good proxy, that the return for that three-month bill over the 13 years would be about 31%. you see it on that chart, 31%. well, what was the total return for the s&p at that point? 35%. so, yes, 35% versus 31%. i guess they're correct to the tune of 4%, about you you see how similar they are. the conversation of short term versus long term really doesn't hold water as evidenced by that chart. all right. something else happened.
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today ford announcing that they're going to have the conversion possibility with warranty and that's really what it is. you remember in 1976 when they stopped making convertibles? you could still buy a convertible. you bought the car, they gave you the warranty, they outsourced it to another vendor to turn it into a convertible. for anybody who has bought souped-up mustangs or convertibles, you buy the car from the dealership and they send it out to an associated vendors and they put tricks and options on it fully warrantied. a year ago april i didn't take the v-6, i took the v-8 on the f-150. it's a great thing and i congratulate ford because it's all about choice. we're not talking about abortion. i am pro-choice. the best way to bring energy levels down for the american population is to put a dial on their vehicles. you could use nat gas, liquefied gas, or regular unleaded gasoline. that would bring competition, lower prices. i bet you ford sells a whole lot more than the 15,000 they're
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advertising. good job, ford! back to you. >> rick, that was impressive stuff on the engine work there. i wish i could do it myself. might have to have you over next time. >> anytime. i'll tell you, it's an easy conversion, and you get the same mileage. so if you put an equivalent sized natural gas tank on it, you will double your range. it's an amazing feature. >> thank you very much, rick santelli, this morning. tweet time. facebook back to ipo price of $38. what's the status update today for investors who sold at $17? you can tweet us @squawkstreet. plus we'll talk to the ceo of sa sim man tech. weekdays are for rising to the challenge.
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what are you wearing, jake from state farm? [ jake ] uh... khakis. she sounds hideous. well she's a guy, so... [ male announcer ] another reason more people stay with state farm. get to a better state. ♪ good morning. we're live at post 9 at the new york stock exchange. want to get a check on the markets on this fed decision day. the dow is up almost triple digits, up 98 points. s&p at 1696, within spitting distance of 1700. nasdaq is at a 13-year high as well. people beginning to talk about what this means, what the fed may say this afternoon. shares of humana after second quarter earnings beat estimates.
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humana expects a strong year ahead. raised g ed guidance for the en year. soda stream well into the green today. the company's second quarter earnings well above expectations. boosted the revenue outlook for 2013. says it's encouraged by operating income growing faster than revenue. >> and your road map for this hour. if you have been holding onto facebook all this time, congratulations, you just made a little bit of money. a couple cents. fwa facebook is trading above its ipo price for the first time since the stock debuted. and symantec posting a blowout quarter. we'll talk to the company's ceo in just a few minutes. also, ford going big on natural gas. ford's coming out with an f-150 pickup truck that runs entirely on natural gas. we'll hear from ford on what it can do and how far it can go as this trend continues. first up though, facebook earlier this morning traded
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above its ipo price of $38 a share. finally. want to get some more insight of why investors like it so much right now and whether the bullish band wagon will continue. dan ackerman is senior editor with and yousef quauly. you initiated coverage of facebook with a buy just off the lows of september. he now has a $40 price tag. good morning to both of you. i think you took it to a buy at $21.87. not bad. but you must -- at this point it sounds like you feel it's almost fully valued. >> well, we've actually had to increase our price target two or three times since we initiated, and we're not there yet. we're not ready to jump ship only because the story keeps getting better both on what they're going on mobile which has been incredibly impressive and eventually what i think they're going to end up doing on video. >> yeah. people forget not too long ago
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mobile ad revenue was zero. now it's $600 million or more. are you prepared to weather a period where people have been made whole get out because they are done with this ride? >> i don't think so. i think the $38 price, the ipo, clearly in hindsight was a mistake but i think if you look at the company today as it stands on its fundamentals, when you look at the business we talked about mobile being a little over $600 million in revenues this quarter, we think by the fourth quarter, in about four months, they're going to pass the billion dollar mark. you know, i think that growth rate alone should make a lot of investors think again about maybe not selling here and hold on a little more. clearly though i think the easy money has already been made and now for the stock to go way beyond where it is today, they need to, you know, they need to continue to execute and, therefore, the horizon is a
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little longer but we still like it. >> interesting. dan, give us sort of the lay of the land from how the valley sees it. are they viewed as the golden child once again and how does it compare with last fall? >> i think we have a big difference now compared to last fall, compared to when the ipo was. people had a lot of issues with facebook back then. they were very concerned about the mobile stuff. they were concerned about facebook spending a billion dollars for instagram. they were concerned about a lot of the privacy issues that people were complaining a lot and threatening to leave facebook over, and i think that the big change is people now see the company, whether it has ups or downs, as somebody who is here to stay like google, like amazon, not as something that's sort of social media and faddish like some of the previous social networks that were popular for a short while and fizzled out. >> what happens it facebook does move to start doing more traditional tv-style ads on its site. does that risk alienated people who to this point have beared along with what it's introduced.
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>> they need to monetize these users. i'm already seeing more and more innovative and more almost intrusive in a way ads in my news stream on facebook. i think it's a delicate line. if you start putting video in there that may turn people off. i think in the mobile setting you have to be especially careful because people only have a little bit of time to look down at their phone and maybe make an update or see an update. if you take up too much time with ads, they could stay away from it. >> at a time when they seem to be executing on mobile, should they continue to be aggressive on rolling out new types of ads or should they let this technology continue to power their results? >> i think dan is correct. i think it is an extremely delicate balance between increasing engagement and increasing monetization, and i have to give facebook's management credit for having done a really nice job on mobile, increasing engagement, and dramatically increasing mobile.
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you don't want to overwhelm people with a mobile format that may not stick. and i think that's probably the reason they delayed the launch on mobile -- i'm sorry, of video about two times now. we were expecting it for summer, end of summer perhaps. now we're talking maybe by year end, and i think that's exactly what they're struggling with, trying to have a viable video format that is attractive to users while at the same time very, very attractive to advertisers but reach is clearly key here and facebook has tons of reach and that's really what marketers want. >> dan, one last question. youssef mentioned management. we talked about sheryl sandberg. does she stick around? what's the best intelligence you have on her tenure? >> i don't have any particular insight into that, but she's so tied in with the company, i think it would be a big loss for her to leave because they don't have that many other big name
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executives. obviously mark zuckerberg is a big personality. >> interesting story. we continue to watch it move today. thank you so much. >> thank you. when we come back -- want to stay with facebook for today's squawk on the tweet. facebook back at ipo price of $38. what's the status update today for investors who sold at $17? tweet us @squawkstreet and we'll get some aens later in the show. >> and the dow is setting a new all-time high. adp is painting a good picture. let's bring in paul, chief global economist with dunn and bradstreet. jason and paul, good morning. >> good morning. >> so we've gotten a ton of data this morning, and, paul, just to start with you, what jumps out? what's the most important thing and what's the message we should be taking from the dow up almost
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triple digits and the ten-year almost at 2.7%? >> well, i would take the sub elements of the gdp report has giving you positive signs. as we have been see in in the small business health index, there's some strength below the top line numbers in the overall u.s. economy. while a 1.8% gdp number isn't a strong result, when you look at business investment and consumer spending we are seeing strengths below the surface and you are seeing that in the payroll number and that's boosting confiden confidence. >> there's been a lot of focus on small businesses. people concerned about the impact of obama care, the changes now that are happening, the delay to the employer mandate side of that. are you saying you're not seeing any sign of that in your surveys? >> well, there are still headwinds and still pressures on small businesses because they were hit broadside by this downturn and the subsequent hesitant recovery. we have a leading index on small business we look at every month. we're seeing signs of positives.
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small business has certainly restructured, they're leaner, meaner, more competitive. there are headwinds out there for small business in the economy but things are better than they were a year ago at this time. >> jason, what's driving this? what's driving the continued pace of job creation at what now appears to be a steady 200,000 or so a month when we only have gdp growing at 1.5% year on year rate? >> listen, we have -- i think this is a goldilocks economy right now, which you're having some increase in employment, certainly companies have done a very good job in terms of profitability. i think the dog that hasn't barked in this recovery has been capital spending, and one would expect capital spending to pick up. it's rare you get strength in employment without some sort of follow through in business spending. so i think, you know, what's happening essentially is this. you're grinding forward. i guess the good news for investors is that the economy isn't growing so fast that you're actually taking away
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liquidity to put into the real economy. it's very ironic, but this is almost the perfect scenario for financial assets. >> it is, but, jason, i also wonder how much -- how cautious we should be ahead of the fed decision today because we saw that prior six or seven-week period after the chairman first started to talk about the taper, there was a bit of a retail panic in credit. stocks didn't digest that well at first. is there a risk we get a repeat of that scenario now. >> there might be a short-term risk of that. i'm not particularly worried about the backup in interest rates because inflation and inflationary expectation has been very well anchored. so the backup of interest rates has been entirely in real terms which either suggests that it's ephemeral and you'll see the interest rates come back down or it's suggesting stronger real gdp growth in the second half of the year. my own view is it's the latter, that you will see stronger growth in the second half of the year. so i'm not quite so sure it would be as shocking now as it
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was the first go-around. >> sure. well, it does mean it's going to be important to see that growth actually happen. we'll leave it there. jason and paul, thank you for your time this morning. >> thank you. good some breaking news. scott wapner is back at showers. >> the battle for herbalife has just gotten a whole lot more interesting. i can report according to sources that george soros has taken a large long position in herbalife. it's said to be one of his top three positions. the official word from soros is no comment, but it certainly amps up the battle that's been going on as bill ackman has his big short position telling cnbc he has not covered a single share of that. we know about carl icahn's long position. the company was out with earnings just recently. the stock has shot up higher as a result of that. as you can see on news of this, herbalife shares are up 10% on the day. just about 66 bucks -- right there $65 and change.
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but, again, the news here george soros taking a large long position in herbalife. said to be one of his top three. it would be below 5%. that's important because if it was above that, there would have been a filing that we all would have seen, so it's safe to assume that it's below 5%. let's also assume that maybe the position was taken in may or june and that you would see a filing appear let's say in mid august or so, but again according to sources, george soros is going long herbalife as yet another investor lines up on the other side of bill ackman. and, carl, i should also note that bob chapman, robert chapman, will be on our show "the half" another investor who was long herbalife long before anybody else was. before there was dan loeb or kacarl icahn, there was bob chapman. >> this is turning into a bit of a soap opera here. >> yeah.
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>> two, did soros sense weakness obviously in ackman's position and to what degree do he and carl icahn gang up on bill when things are tough? >> you know, carl, those are interesting questions. there were reports several months ago that george soros, who had some money invested with bill ackman's fund pershing square had asked to withdraw several billion dollars. actually, i'm sorry, several hundred million dollars, that he had asked to withdraw several hundred mill dollars from pershing square several months ago. that was a report in "the wall street journal" some time ago. so these guys do have an obvious relationship. they've had a financial relationship for some time. i cannot tell you what the motive, what the end game is in george soros' mind in all of this, but certainly he is placing his bets i guess with carl icahn and herbalife on the long side at this point as he amasses a position that we say
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is clearly under 5% but of some scale. >> yes. unbelievable collision of three of the biggest names on the street, scott. this story is just getting started. thank you very much. >> thanks, carl. >> scott wapner back at headquarters on herbalife and soros according to scott taking a large long position in hlf. hacking a big problem for a lot of companies, but for our next guest is means big business. we'll talk to the ceo of symantec in a moment. but first rick santelli has his eye on that gdp number today, rick? >> absolutely. the gdp number is fascinating. the 80-some pages to figure it out is even more fascinating. and we have a fed statement today. i have peter book far and he will give us the inside track on pricing the taper, what the statement will say and what was gdp really? all in about ten minutes.
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back to that breaking news. george soros taking a large position in the battleground stock herbalife. shares are now up about 6.3% off their highs of almost 8% after our own scott wapner first brought us that news moments ago. again, that does put him at odds with bill ackman who is shorting the shares. >> unbelievable story. we'll watch that stock which is obviously moving quite a bit. meantime, fears of hacking benefiting anti-virus softwaremaker symantec. shares trading higher after
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quarterly results better than expected. that's a bill move, almost 9%. steve bennett is the ceo and he joins us from mountain view, california. steve, good to have you back. good morning. >> good morning, carl. >> for a large part of the morning, you have been the biggest gainer on the s&p. how much of it is about the tailwind from demand and how much of it is due to your own restructuring which you go into a bit in the quarter? >> well, i think we had a solid quarter, and what i'm pleased with is our team executed well and we're delivering in the short run while we're actually doing a lot of things to fundamentally change the company to get us on the track to be successful in the long term. so i said yesterday on the earnings call that we're at mile one on a 26-mile marathon, but so far we like mile one. >> right. of all the segments, what is the true engine of growth here? at least in the short term, steve? >> well, a couple things. number one, information is exploding. everybody who deals with pcs and smart cell phones and all these new mobile devices, just the
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amount of information in the world is exploding, and we back up 50% of the world's information. also, the security threat environment has just never been more challenging with all of the new control points. in addition to pcs, smart cell phones in your homes and cars, it's really becoming much more sophisticated and challenging environment to protect for consumers, for businesses, and for countries. >> we know speaking of countries, you're all over the world. international is 51% of revenue. europe is 27% along with middle east, asia-pacific is 18%. are you feeling better about ex-u.s. business than you were before? >> i feel good about our business outside the u.s. i think this is such a global threat environment, and one of the things i didn't mention that i should have is according to idc, the markets that we're playing, we're very fortunate, are growing 8% to 10% a year. so we have just built in demand. we have a nice tailwind. we're still losing share though.
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i'm pleased with our progress but we're still losing share but we're making positive strides. and so our goals over the long term are to get back to the leader of the industry to gain share. >> mr. bennett, 50% of the world's information you back up if i heard that right. if we were talking about the financial system and anyone had that kind of share, they'd be viewed as systemically important, to say the least. what's the potential for regulators to start looking at the big players in this business and thinking they actually have too much exposure? >> probably a better thing for me to have said is that customers use our backup executive and net backup products to back their data up, so we back up 50% of the world's information on their servers and in their environments as opposed to ours. >> all right. steve, you are the top gainer on the s&p today. we're glad you're on the show. thanks for coming by. >> thanks, carl. >> symantec from mountain view, california. coming up, if you don't know the company, you're sure to know the brands., the daily beast, college humor and more.
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with just hours to go until
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that fed announcement, lets get the santelli exchange. head to rick santelli in chicago. >> thank you, carl. welcome, peter. >> good to see you. >> all right, peter. you always have good opinions, widely read. give me your scenario as to treasuries, stocks, taper, fed, what's priced in, what isn't, why are the markets moving the way they are? >> well, i think the doubling in the five-year note yield, the 100 basis point increase in the ten-year yield and the highest level since august 2011 in the 30-year is a clear sign the bond market has begun to price in the possibility of taper. the bond market is basically tightening policy right in front of our eyes. the stock market is on the belief rates are going up because the economy is getting better, therefore, let's keep buying stocks. we have to remember we are an economy that has been fed an april diction addiction to chea
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by the fed. so i think we're seeing a major disconnect between stock prices and the bond market and i think stock prices are making a mistake here. all we have to do is look at the mortgage bankers association data today. refis have fallen more than 50% over the past 12 weeks. the purchase component is at a five-month low. the economy is already getting impacted by higher rates and the stock market is pretending like it just doesn't matter. >> all right. now, let's switch gears. we had the large methodology revision to gdp. i don't know that you have a good gps on that. you can tell me in a second, but i notice every e-mail i'm getting says most of the good news in the report is based on inventory, meaning we're building widgets. the silver dollar question is will they come and buy them? meaning the consumer. thoughts? >> well, inventory relative to sales will be relatively lean. i think companies have been reluctant to build inventory because they know the demand
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side of the equation is still uncertain. yes, itinfluence. it added 0.5% of a percentage point to q2 gdp so the change was model. it's fine they're updating it, bringing the gdp number into the 21st century but i don't think the numbers really matter. growth is very mediocre. the markets are betting on a second half recovery but when you see 1.3% average gdp growth in the first half the year, it's not going to take much to see a second half recovery. it's if only 2%, that still defines a mediocre economy. >> listen, we have very little time left. i noticed in the august refunding announcement by the treasury, that the package of $72 billion before reopenings for 3s, 10s, and 30s is the same as it's always been. is the treasury walking back the benefits of the smaller difficult sits becaudeficits?
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>> i think the treasury needs to maintain the level of longer term bond issuance. rates are going up. the treasury should not miss this chance to lock in low rates and extend their maturitiematur. all the treasury has done over the past couple decades is shorten them and that's now a danger now that rates are moving higher. >> thank you, peter, for taking the time. carl quintanilla, it's all yours. >> that's not the last we've seen of you, i'll tell you that. rick santelli in chicago. squawk on the tweet. facebook back above $38 for a short time this morning. that's where it went public. first time since may of 2012. we're asking you what is the status update for investors who sold at $17? joel writes, newly single. crash writes, lunch at burger ki king, value menu. another stock that has struggled a bit in the restaurant category. there's a few more that we'll get to later on. >> misery loves company. >> yes. meantime dow gains slipping just
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a little bit, now up 77. >> we have only about 2 1/2 hours, no the that anyone is counting, to the fed meeting. where is the countdown clock by the way? almost got to be time for that. coming soon, the ford f-150 powered completely by natural gas. how far can you go in a nat gas truck in we'll talk tremendously to ford. bell about to sound across europe. just a couple seconds left to go. we'll get you details on the close with simon hobbs when we come back. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. awarded five-stars from smartmoney magazine.
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the european markets are closing now. >> you know what that means. european markets close. simon, do you think that has anything to do with the fact the dow has been coming off its highs? >> it's relatively mixedovera overall. the recovery in europe will be two steps forward, one step back. today we learned unemployment has fallen in the eurozone for first time in two years, down 24,000 in june but it's still a record 12.1% and the retail sales are falling quite dramatically in germany, also in spain, also in france. so this is the month as we close out on july, of course, where we have been able to speak about the eurozone bottoming. you saw it in the pmi data, the consumer confidence data. goldman sachs had 4% overweight on european equities. it's increased that to 8% overweight. for the month you can see you have this outperformance from a lower base for european stocks, about you it is what it is. a good month for european
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equities up some 6%. there's a lot of corporate data out in europe today. i would just pick one, which is the fact we still don't have resolution on how much fiat will pay for the bits of chrysler it doesn't own but are owned by the united autoworkers. still being seen in a delaware court. we'll bring that to you. fiat, because of the chrysler stake, has had a better year than ford or general motors. two things we're watching for for tomorrow, the court case continues in the italian supreme court. will sylvilvio berlusconi be bad from public office or go to jail for tax evasion? if that rules against him it could have serious repercussions for the stability of the italian coalition. we're looking also at the european central bank meeting and the indication is mario draghi supports them publishing minutes of their meeting like
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the fed does. at the moment they just lock them away for 30 years. >> 30 years. >> transparency is not everything in central bank operations, as you know. >> true. i'm holding my tongue. we could have that debate another time. simon hobbs, thank you very much, sir. again, what the ecb is doing feeding into some of the stronger dollar strength we have been seeing. we'll get more from bob on that soon. >> yes, we will. in the meantime, iac's second quarter coming in better than expected. here with us is the ceo greg glatt along with julia boorstin. good morning to both of you. >> good morning. >> good morning. >> greg, revenue looked pretty good here, 17% growth. eps was in line. stocks not looking too favorably on it. were there -- was there hair on the quarter as far as you were concerned? >> no. i think, look, i'm actually not sure what the stock is doing right now, but we had a great quarter. revenue growth rates increased across virtually all our
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businesses. we told people we thought revenue growth rates would increase second half over first half. we feel positive about 2014. really momentum is good across all our businesses, and we feel great about it. >> revenue over at up 9% in the quarter, but everybody, greg, wants to know about "newsweek" and who is going to buy -- reports today in "the post" about jay penske. any clarity on that? >> no. i think "newsweek" is a fabled brand but it's a relatively small part of our business. i think we've said we're looking for a buyer. we think we've found some willing ones. we think something will happen at some point soon, but it's not a significant part of our business. >> want to bring julia into this. julia, go ahead. >> thanks, kelly. greg, i want to ask you about the dating businesses. your dating unit saw significant growth, but the fastest growth is coming from the services that don't charge customers. how are you going to make services like okcubit and tinder
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as profitable as and grow that business going forward? >> actually put tinder aside which is very, very new, our busine business, the international business that really is global at this point, they monetize fantastically. i mentioned today that revenue per -- monthly revenue in okcupid is up over 700% over the last couple years, and basically it's a freemium model. people like to pay in this category. they like -- there are various features people will pay for to communicate with people in other ways. the growth is fantastic. there's meaningful revenue and profit growth from those businesses. >> greg, obviously today we're talking a lot about facebook. facebook seems to have figured out mobile. do you think iac has figured out mobile? >> i think we have. i think we've got a variety of different businesses.
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in a business like match, for instance, people use mobile, they use desktop all in the same subscription. we collect the subscription revenue and we're agnostic to what platform you're using. in our search businesses, sponsored listing advertising monetizes great on tablets and decktop. a little less so on hand held, but the idea is that you make that up in volume. i think when you look at facebook, their native advertising works very well within their format but it's also just tremendous scale. i mean, i don't think that monetization of a view on hand held devices will ever equal monetization of a view on the larger screen, but you make up for it in volume. and i think that's what they're doing, and that's certainly what we're looking to do across our businesses as well. >> greg, are you comfortable over time with becoming more of a matchmaking company than a content generating company? >> you know, i think we're both. we're comfortable whichever way the tides take us here, but both
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our businesses are growing great. match has got great growth. tremendous margins, strong revenue growth, and incredibly bright future, global business, global leader and our search and content business are growing great. they have stronger growth than the match business. you look at, you look at, dictionary, city search, urban spoon, these are sites that help users find a particular piece of information. we know the consumption of that online across devices is exploding, and we expect that to continue. so i don't really view it as an either/or. i think they're both growing rapidly. you mix in sites like vimeo which is exploding in terms of video consumption. it's just amazing what's happening in that whole area. everything is up for grabs, production, distribution, et cetera. >> maybe over time you can help match me to the -- maybe you can match people, greg, to the right search engine they need to find their answer. just messing around.
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greg glblatt, ceo -- >> we call it but match something a big part of all internet businesses. everything is really matching. >> okay, greg, thank you for your time this morning. julia, really appreciate it as well. ia c trading lower this morning. let's bring in bob pisani. >> i'll tell you what's important about today, interest rates go up, that's what happened this morning. look at the ten-year moving up and it was on the adp report. normally that puts pressure on the stock market. not today. this may be a little bit of a turning point in the way we're looking at interest rates. i don't know. look at the dow. we hit a historic intraday high. we'll see if we have a new closing high on the dow. all but five dow stocks are up led by 3m. interest rate sensitive stocks are getting hit a little bit. reits, housing, and utilities are lagging things. economically sensitive stocks all holding up very well. so you have consumer discretionary, energy, industrials, and financials all
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leading the mashlt. this is what you want when you want to hope for an economy that's getting better. what's not doing better is just commodities never, ever, ever are going to go up again. everything aluminum, steel, everything is to the downside. again the fertilizer stocks are down 5%. better than yesterday down 20% but you get the point. what else is doing well? cable stocks. comcast, our parent company, excellent numbers overall. just shy of a record high for comcast, cablevision, charter, disney all to the upside. final trading day of the month, and you know what? it's been a great month. i'm talking about a broad rally overall. health care, materials, industrials, financials, and consumer discretionary. if you want a rally, it doesn't get any better than those kinds of numbers. guys, back to you. >> i'm just hearing from one of our producers, the s&p down five times this month, bob. that is the fewest since december of 2010. unbelievable. what a month. >> and we had a big sideways move throughout the middle of the month. >> thanks a lot, bob pisani.
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spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ welcome back to "squawk on the street." want to take a look at shares of herbalife right now which are clearly on the move after the news that i broke just a few moments ago that george soros' firm has take an large long
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position, a new position in herbalife, said to be according to sources one of his top three positions. we've been following this story almost daily ever since the earnings report came out. the stock had been on the move. big ackman this morning telling cnbc he has not covered a single share of his large billion dollar short position. but we can see here that the stock is at almost $65 now. coming up on the halftime show, we will have robert chapman. long before icahn was long, long before loeb got long, robert chapman was long herbalife. he has some interesting thoughts about what's happening with the stock. carl icahn, bill ackman, and can't wait to get his reaction to the news that george soros' firm has taken a new large position. was not in the last filing. as i say, it is new. below 5%, that's why we haven't seen a new filing yet. probably get that i guess mid-august when these things
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come down the pike. >> herbalife up 80% to date. ford will soon offer a natural gas version of its popular f-150 pickup trucks. the option will be available in 2014 and dick cupke is ford's sustainability manager. he joins us this morning. >> pleasure to be here. >> thank you for your time. look, it's interesting because what you guys are saying here is this isn't so much about you guys testing the market as responding to existing customer demand for this product. is that right? >> that's true. we've been producing natural gas vehicles for the past 3 1/2 years. we've seen our sales double and the vehicle that we most frequently get requests for is the f-150. now we're able to fill that market niche as well. >> why do you think that is? >> well, the f-150 is slightly smaller, better fuel economy, and so for people who don't need the load carrying capability or trailer hauling of an f-250,
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they can use the f-150. with natural gas, they're able to cut their fuel costs 30% to 75% depending on where they're at in the country. >> and for people who may be less familiar with how all of this works, what does it mean to get your hands on this come pressed natural gas. what do you have to do and how much fuel economy do you get out of this? >> you get equivalent fuel economy. if your vehicle gets 21, 22 miles per gallon, it will get that on what we call a gas gallon equivalent of natural gas. the vehicle -- if you live in some parts of the country like oklahoma, all the on q express and stop and go kind of stores have natural gas at their fuel pumps now. depending where you live, areas of the country, it's very prevalent. there are some areas where it's not so prevalent, but it does pump and you can fill up from a pump that looks like a normal gas pump in about three to four
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minutes. so it's the normal kind of experience for the operator. >> dick, we've been trying to watch the evolution of nat gas as a transportation fuel for a while. so for anyone out there who drives a pickup or has one for work, is there any difference in performance? is there any difference in torque? if you blindfolded me, would i know the difference? >> if we blindfolded you, you would not be able -- as a matter of fact, the vehicles that run on -- that we call them bi fuel, run both on natural gas and gasoline, they switch back and forth depending which fuel you wish to use. you can't tell the difference between the two powerwise, drivability. it's seamless. you can't tell. >> and they're expecting to sell 15,000 of these vehicles. dick, it will be really interesting to see. we hope you'll come back and tell us how it's going. >> be happy to. we've been doubling our sales every year. we look forward to this new product. >> all right. dick cupka, ford's stainability program manager for commercial vehicles. >> the question are natural gas
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cars the way of the futurefutur. our friend john hofmeister, the former president of shell. john, good to have you back, good morning to you. >> thank you, carl. >> is this going to sell? >> absolutely it's going to sell. i think 15,000 is really probably a good first year estimate but watch it take off because what will happen, carl, entrepreneurs, people that run retail stations all over the country will say, hmm, maybe i should get into this. this could be the next big thing, and, you know, pickup trucks make a big difference across this country in terms of passenger vehicles. but we still have more steps to go. i'm all in favor of competitive fuels because not just natural gas as cng, compressed natural gas, and lng, liquefied natural gas but we can turn it into meth thol and use it in flex fuel cars. that's the mass market automobile with flex fuel capability. that to me will be a big break
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through which then gives us a range of competitive fuels and it will affect the price, the availability, and we could be a nation of affordable mobility which we were for most of the last century. >> right. now, you know, with electric cars, john, we always talk about range anxiety, infrastructure, chicken and egg. all those age-old questions. does nat gas have an easier time on that path? and would you expect policy to be a bigger help than it has been to evs? >> i think electric vehicles will always be popular in a certain niche market because of their constraints. but, yes, i do believe that public policy that would support, for example, more flex fuel engines with cafe standard ajustments perhaps to incentivize manufacturers to build more flex fuel vehicles and then the market will break lose in terms of putting retail methanol into local gas
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stations. i have met with some of the down stream people in the dedicated retail marketplace. they're ready to go. they want to serve the customer what the customer wants, which is more affordable fuel. that will be the draw. >> john, it still will cost people a pretty penny to convert their cars if they don't have one of these -- if they're not able to run on natural gas already. do you think there should be some sort of subsidies or tax breaks for people to do this or should we stand by and assume the price of the fuel savings itself will be able to spur people to make this move? >> i think those who would convert would find that the fuel price advantage is all the incentive they'll need, but really i'm putting my bet on new vehicles. new manufactured vehicles that are designed specifically. and, you know, with something like 12 to 14 million new vehicles a year coming into the marketplace, in five or ten years, you have a huge number of
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vehicles out there, and i think that would be a more stable market growth cycle as well. >> it's going to be -- this is going to be fascinating story to watch. john hofmeister joining us with his thoughts this morning. really appreciate it, sir. i know i'm going to be keeping my eyes open on the highway. >> do you have a car? >> no, but i drive one as much as i can. >> if you get one of these, we know consumers are in. >> i'm the latest adopter for all this stuff. another big day for earnings fueling big moves in the market this morning. our earnings squad will be here next to tell you everything you need to know. stay tuned. your trading to a hi, tdd#: 1-800-345-2550 then schwab is the place to trade. tdd#: 1-800-345-2550 call 1-888-284-9410 or visit to tdd#: 1-800-345-2550 learn how you can earn up to 300 commission-free online trades tdd#: 1-800-345-2550 for six months with qualifying net deposits. tdd#: 1-800-345-2550 see how easy and intuitive it is to use tdd#: 1-800-345-2550 our most powerful platform, streetsmart edge. tdd#: 1-800-345-2550 we put it in the cloud so you can use it on the web. tdd#: 1-800-345-2550 and trade with our most advanced tools tdd#: 1-800-345-2550 on whatever computer you're on. tdd#: 1-800-345-2550
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welcome to the earnings squad where we dissect the earnings story everyone is talking about. i'm melissa lee along with cnbc's courtney reagan and cnbc contributor and founder of option jon najarian also known as the doctor. we have three companies on the radar this morning. all of them trading higher after reporting stronger than expected earnings. we can't to start off with mastercard. what a run so far it's had, up 22% year-to-date. aside from the gain we've seen today, and this is a new high on this stock, the earnings quality a good one here because we saw 12% increase in purchase amounts far outpacing the 5% increase in operating costs. tight expense controls were also in play and the company has been very aggressive when it comes to share buybacks, also helping the stock move higher here. in the second quarter it bought $581 million worth of stock, and it's still got $1.1 billion remaining in their repurchase
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program. so we can look to that as being another push higher for this run here. >> and it's a great tell always because this is real. gdp, they might play with the numbers, you might see something else with inflation numbers and so forth, but actual consumer spending and then you can look at the chargeoffs or loan loss provisions, i love these plays. >> yeah, and they're also saying that growth in the second half should pretty much be in line with what we've seen so far and what receive seen so far is pretty strong. that came out of the conference call this morning. we're also watching shares of an hizer. doc, what are you seeing here? >> anheuser-busch, people thought this would be soft but these guys made up for it in higher case lots. the amount of money they're getting per case or per beer, the craft brews, that's a big part of the story, goose island and things like that, but also their distribution expansion. they're expanding into 90 additional countries. that's going to be huge for them. i think they're doing almost everything right, mel, and the
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stock is up about 10% over the last month. >> what a run here. from beer to burgers, courtney. got to go to burger king here. >> burger king is an interesting one here. the number is a little funny because they're going through this new franchising model. they did beat on the bottom line. top line the revenue was down 49%. if you actually strip out the costs from the refranchising, the currency, revenue increased 1.2%. so i think investors are smart on this one when you look at the stock movements today. it could be much worse but if you really break down what the numbers are telling us, i think that we're making some smart moves here. same-store sales only up 0.6%. last year up 4.4%. that actually is a little bothersome and a lot of strength overseas in africa, asia-pacific, north america pretty disappointing. >> you compare against its peers, outperforming yum and mcdonald's. the only one outperforming burger king is wendys with a
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whopping -- that was totally unintentional. that's it. if you want to join the conversation, we're on twitter. back on "street signs" with more updates. president obama is talking about the fed on capitol hill this morning. we have all the details coming up next. ♪ [ male announcer ] you wait all year for summer. ♪ this summer was definitely worth the wait. ♪ summer's best event from cadillac. let summer try and pass you by. lease this all-new cadillac ats for around $299 per month or purchase for 0% apr for 60 months. come in now for the best offers of the model year.
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president obama on capitol hill today talking about the fed. some lawmakers came out of the meeting saying the president gave a, quote, full-throated defense of larry summers to succeed ben bernanke as fed chair. nancy pelosi had a different take though. take a listen. >> i wouldn't say a defense, but he just spoke what he thought about larry summers, but it wasn't really about larry summers. it was about how important this decision is, the ramifications of who the chairman of the fed is are there for a long time to come recognizing that there are differing views in our caucus on the subject and how we go forward, but understanding that whoever the president chooses will be received with great respect. >> interesting. the whole summers/yellen dynamic to the degree that's who the players truly are are being tossed around in the market. you can argue today's action is
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being driven somewhat by that and also expectations for the fed this afternoon. >> off the highs but stocks still doing okay even as the ten-year has been up towards 2.7%. >> watching that closely. the herbalife news, the very busy scott wapner is up next. let's get back to headquarters and -- actually, we'll go to kate kelly first with some breaking news. kate? >> carl, thanks so much. not long after "the new york times" had a report essentially accusing goldman sachs of raising the prices on aluminum through its metal storage business because of long waits and end user cost that is result, goldman is fighting back. it's proposing a series of solutions to ease the weight of metal when it comes to aluminum and other metals they store in their detroit business. they want to shorten queues, establish a priority system for consumers who need the metal, they want to establish a way in which consumers can actually swap and get metal immediately by jumping the queue, and they also want to establish greater transparency in terms of who ownshe


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