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tv   Fast Money  CNBC  August 20, 2015 5:00pm-6:01pm EDT

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ahead of the tape column years ago when it was at 140 and look now. guys, thank you for joining me. this market craziness and we'll hand it over to "fast money." melissa lee, you guys and the gang, what's up. >> we'll give you the trade, kelly. "fast money" starts right now live from the nasdaq overlooking new york city's times square. dan nathan, brian kelly, kelly fineman. it was the worst day for stocks in a year and a half and that only begins to describe the chaos, the dow dumb bling 358 points. the s&p negative on the year. the nasdaq closing below the 200-day moving average. small caps falling more than 2%. the question tonight is simple, are we seeing the start of a correction? guy? >> sort of feels that way, mel. let's put it in context for folks tuning in for the first time. with a market move like this you
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never know. the russell, small cap stocks finally broke. 121 in the iwm with key support. we close below a couple days ago. we've been saying the 2054 and s&p critical support level. you look yesterday. that was your tell. sold off. bounced. the last few months we would have continued that bounce and rallied higher. we didn't. we faded. had another shot today. went below 54. closed on the lows. bond market has been trying to tell you something for a long time. yields continue to go lower. break is talking about commodity move, crude. it's a good thing at the gas station and a bad thing for global, the global economies. >> well, what guy mentioned is there is volumetity in every asset except for the u.s. stock market. we've seen it in crude oil cut in half. currency haves gone crazy. we'll talk about that later on, but that's what is happening. that volatility has come here to the u.s. the u.s. was that last shining
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star out there and now we're seeing people sell stocks. based on where we are, i don't know if i go out tomorrow and press shorts. we're at a descent support line, if it holds. it may or may not. i don't think here is the time to start selling. >> what was different between today and yesterday, karen? >> you know, today it's sort of felt more panicking than it has. this is sort of the market, the kind of market where emotions take over and people get scared and you have the panic feeling and selling, which, you know, creates a not cycle. we look at often the spy versus the volatility index, and we've seen when they get to a diverging as wide as this and gets bad, that is the time i got to get out my list and look. it feels awful but i would -- no way would i think about shorting here.
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i missed the boat. you called this right and gold right but, you know, there is some stuff that nothing that dramatic happened today that would warrant the moves that we've seen and so, dan and i were talking before the show. something like a macy's, didn't buy any today but down tomorrow, i'll buy more of that. they don't have foreign exposure this move is way over done and, you know, i don't know that i'll pick the bottom. i'm sure i won't but over time these will be good-byes. >> i think what you're talking about is seeing a lot of really big moves in single names. talked about disney and macy's from 72 to 62. disney is down 18, 19% in 12 trading days and that's a massive move for a great company with a brilliant future. there are opportunities where if you have games, you can still consider lighting up. one is biotech. we talked about the s&p, biotech index. this is one that is still up 23% on the year. look at that two-year chart right now. it's in my mind holding on for
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dear life. that's the 200-day moving average and that seems like a lot but up a lot over the last couple years and i believe some reasons why it's up are going to abate. some of this mna and stuff and crazy valuations at a time where the u.s. stock market seems a little hairy here. i'm not saying go out and the sky is falling but there is pockets of performance that could be vulnerable. >> will we look back? this really felt pretty bad today. the volume was heavy in terms of the sell off. will we look back and say this was a great buying opportunity. rich peterson over the stats today took a look at the five worst sell offs in 2015 point-wise. on average, the s&p 500 was up by more than 2%, 2.33%. >> go ahead, breaks. >> guy and i were talking about this before the show, what felt different about and 130 and somebody or something comes in and starts buying the market
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back up and they are right on technical trend lines. today everybody was waiting for that and that's when the selling started to accelerate. so i always hate to say this time is different but it was a little different today than it has been. >> that was your contention for the buybacks would dry up. >> listen, it's not sustainable and if you think what we've seen with earnings and sales growth, it hasn't been organic on the earnings front here and we had sales growth decelerating and a lack of leadership in the stock market and that's been a troubling sign for months now and i think there has been a lot of data that suggests the momentum in large cap stocks has to do with deceleration in buybacks. companies will be a little more picky and choosing if we go into the correction. >> we don't know they aren't buying back. >> there is a number of
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restrictions, they can't buy more than x percent of the volume and can't be in at the end of the day. we don't know they are not there. this quarter that includes this period comes out, we'll see meaningful buybacks take place, however, doesn't feel like there is a floor underneath. >> not today. >> it doesn't today but i don't know, i think for a lot of these companies, it's a good-bye. >> to your point about the last six times, yeah, each time has had rallies and each subsequent time people have become more and more complaisant. so you continue to hear buy the dip, sell the rip camp and become more and more bolstered by the fact the market keeps bailing them out and i said for awhile, i'm not changing course here. again, the revenue growth, which is essential and earnings growth, which can be manufactured continues to widen. the market is not caring about that and maybe it should start caring about it. >> hewlett packard, that stock right now is trading. if we can take a check.
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lower in the after hours session. >> melissa, guys, one-third, 30 3,000 shares traded with a mixed picture. it is down 32% year to date. 22% over the course of the past 12 months, however, if you take a look what is happening with the picture, it was an earnings beat but a sales miss and then the outlook for the current quarter, as well as for the full year fell below analysts' estimates. it will be interesting because the conference call just kicked off going on now. we'll go back and listen to details here. hear the commentary. we'll listen for any commentary on health of the pc market and plan split that will happen in november. this is the last quarter currently that hp will trade together as one company as we know it. in november it splits up. any comments, we'll bring you details later on in this hour. you can see there melissa, down one-third a percent.
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>> thank you dom chu. this is the 15th revenue decline but do we care since they will split in november? >> no, i think you think ibh here. as brian was saying, this was not 5% of the week. that's one reason why you may be seeing muted reaction but there is nothing good going on and you think about the dollar exposure and split, it will be messy. i do not think you short it but don't buy it. it's a massive value trap. >> except dan mentioned ibm -- >> which didn't do too badly. >> no, it's not getting crushed here. 52-week low. except that hewlett packard with the eps taking it down for the year is still trading about 7.5 times forward earnings and at a certain point it becomes compelling. ibm trades north of ten. i'm not saying hewlett should be trading around ten. if hewlett packard holds the 27
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level and it's green tomorrow, i would go to the upside. up next, facebook, amazon, netflix and goggle, the stocks seeing huge losses with netflix as the worst performer on the s&p 500. is this hot trade over and could that spell more losses for stocks and it wasn't just stocks falling. currencies collapsing today and looks like the pain is just beginning. what does it mean for u.s. markets? later, hewlett packard trading lower on earnings. we'll hear from meg whitman, much more fast on this tough day on wall street, next. can a business have a mind? a subconscious. a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive?
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welcome back to "fast money." check out the semi conductor stocks. intel, micron, texan, hitting fresh 52-week lows at least. what's the trade here on semis? micron down than 7% today? >> he was early and spot on and these things continue to deteriorate and we had bill on the show a couple weeks ago. >> shorty. looks genius. >> look at nxpi. a high-flier that everybody
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loved that since he was on has gone down 17% and feels like it wants to move lower. what's the trade? micron over shoots to the upside and in the process of doing the same to the downside. you can't buy it until you see a stabilization and you haven't seen it yet. >> dave? >> i just think that a lot of this stuff looks like great value. qualcomm is going lower. this group is acting so poor for so long telling you that the p.c. and smart phone supply chain is a disaster. i think you want to avoid it all. >> sticking with tech. sales force moving higher. josh lipton in san francisco with the details, josh? >> that sales force conference call just getting started and ceo mark benioff saying c 2, the best quarter. sales will reach 7 billion, $7 billion run rate by the end of the year. that sales force will be the fastest in its industry to reach $10 billion in revenues and call that revenue of $1.63 billion beyond the expectations, says he
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was excited to see what he called soot strength in deferred revenue that clocked in $3.03 billion. company raising full-year revenue and eps guidance. on the call, analysts want to hear more color about guidance, margin expectations, big deal activities. hop back on the call bringing you more headlines as they cross. back to you. >> thanks so much josh lipton. they beat on met tricks and the potential, remember the reports back in april that might be taken over? those are still looming out there. >> they are still looming out there. that's why you don't sell rips on this because you can wake up some morning and find yourself down 20% just by being short. so you don't do that. however, just the way the market is trading right now, i don't think you have to jump in tomorrow and buy the stock. put it on your list when you start to see things turn, this is one you trade from the long side. >> we should note cramer will speak to the ceo at 6:00 hour. >> you know, you would think a deal for sales force probably north, probably close to a $60 billion deal, which is not an
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insignificant number. with that said, here is an area, one of the last fashions of growth as you see in this quart er now, ibms, a sales force could be an interesting bolt on at a time where they absolutely need one. >> everybody wants to be in cloud. interesting. kicking off the top trades tonight, disney getting hit with another downgrade. falling by more than 6%. the biggest decliner after bernstein downgraded the name saying the sector is undergoing a massive upheaval and media stocks traded historically, where they traded before is irrelevant given how much the business changed. the entire media space feeling the pain today. cbs hit a two-year low and via come with a negative note out on that 21st century fox tanking. guy? >> it was mentioned here is a stock down 21% since the all-time high a week and a half or so ago. that's not an insignificant move
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for a name like disney. bob, i think the quarter was okay but his commentary about cable and his going forward, the problems maybe at espn scared everybody and then you saw it manifest with the other networks, with other stocks you saw in timewarner, comcast, scaring a lot of people. there will be a place where this becomes a value name, but when people looked past valuation on disney for so long, now everybody is looking at it again. i'm not saying you shouldn't buy it here but it feels like this is a name that can over shoot, as well. >> i'm in it long. i was uncomfortable after the earnings when he talked exactly about what guy said but i would wait aside from the cable issue. a huge lightening of fear. some well-founded. you have issues, fx for them is meaningful. so i wouldn'ted a to it her ede.
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there is more pain to come on this cable trade. next up, not just media stocks taking a hit, fanged including facebook, amazon, netflix and google selling off hard. is this the beginning of being defanged. what could it mean? >> all of them are up a whole heck of a lot and to me, you know, they obviously spell or they speak to the fact that there was just overly positive sentiment here. obviously fast book down 5% almost today. that's a really big move. here is a company that trades 15 times the sales, 255 billion-dollar market cap. it's facebook. there are people like disney that got caught into the stories over the last year or so and really attached to them and we saw what happened with apple when people get attached and become emotionally attached. to me, stocks like this have the potential to do so and these stocks are a lot of gains.
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very similar to the xbi what we talked about. >> you pair it with what we were talking about before. so many people are scared what is going on with traditional media and tv advertising and smaller bundles and pressures on fees and netflix which in theory should benefit and be the flip side to the trade and that's also under -- >> and to dan's point about everybody falling in love with these, not only you had some generalest falling in love with these and these four names were among some of the most traded crowds. half the stocks in the s&p being down x percent from their high. these stocks were working. when they stop working, people hit them hard because you got to get out. so for me, you wait on these. >> wait on to buy. >> wait to buy, absolutely. >> for me, i only owned the -- well, the a and g in fang. more g than a. >> a is amazon and g and could
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the g trade lower. absolutely. but i like what's happening at the g and so i'm not going to be out, try to think oh, right now i got to get out and get back in at the right time. i know i can't do that. i'm hanging onto the g what do you think of the g, guy? >> i think the g is fine. i think the g -- we talked about it would you rather be long g or a, apple a for the next 11 years. >> which is not part of fang. >> we got to change that. >> i don't think anything change in netflix other than broader markets. that story is absolutely still in tact. can it go lower from here? probably yes but -- >> there is no valuation support here. >> never has been. you know that. >> but here is the thing, there -- this is one that it seemingly benefitted from the disaster in disney. it just can't last. it's silly. it is a bad product and when you strip away some of the original
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content. >> where do you think it's going to go? >> the money? >> no, where do you think the stock will go? >> i've been wrong on the stock. $100 would be a good entry where it broke out from before earnings but you don't have to buy the first day down. >> it's not a bad -- not that i'm netflix -- believe me. >> you don't know what streaming is. >> it's not a bad product and the growth is outrageous. look at the international growth, it's fantastic. reed hastings made one misstep during his tenure and paid for it. he hasn't made one sense. >> do you watch the talking movies on there? >> they are in color. >> like wizard of oz. >> much more on the sell off that rocked the street and a look at how amgen could be the next big winner in the space. you're watching cnbc, in the meantime, here's what else is coming up on "fast". >> that pretty much sums up what happened in the emerging markets today and there were signs its about to get worse. we'll tell you what it is and how you can protect yourself.
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plus, one of these three companies do traders think could cut the dividend. the answer when "fast money" returns. ata you don't use this month rolls over to the next. wow. using unused data for all sorts of uploads. my constituents love... to... watch... me talk. today's leftover data means a brighter future tomorrow. america. write that down. get an iphone at at&t and get 50% more data and right now get $300 credit for every line you switch.
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we're seeing currency pegs
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fall. we're seeing emerging market currencies weaken. that starts sending shock waves to other markets, and at the end is the equity market in the u.s. what we're seeing is a classic over shoot that starts in the emerging market world and then starts spreading and what that causes is heightened risk aversion. now what happens next is more of the same but it would create interesting investment opportunities in future. >> that was from "squawk on the street." feeling the pain, so beakers, what could this mean? >> everybody goes is this the asian crisis of 1997, '98? if you look at '97 the asian crisis started with thailand devaluing currency. over the next 12 months, you had multiple currencies devalue and
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cu that's kind of similar in the sense of what we're seeing now. what are we seeing today and over the last couple months. to me, let's call it a crisis, if you will or currency crisis started with the european central bank, ecb devaluing its currency or threatening to be a qv in may of 2014. 12, 13 months from that the eros has fallen and caused currencies that trade versus the dollar, which dollars have gone higher and ripped. they have had problems. we're 12 or 13 months from that point, and just like mohammed said, we are now starting to see that come into the u.s. here. so it's similar in that sense, but it is different in this sense, the crisis started with a g 7 country and major economy. back in 98 from july all the way to october. the s&p 500 fell 21% but during that period, the federal reserve
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cut rates several times. the fed has no place to go this time. the second thing that concerns me, keeps me up at night is that unlike a '97, '98, the carry trade or amount of money to get the higher yield is larger than we've ever seen in the history of the world. so that's a big, somewhere between 1 to $9 trillion and nobody is really clear what the middle ground is there. that to me is the biggest threat out there and that to me is why i would be very concerned about this market. >> karen, does this worry you? >> it does. 1 998 was an awful difficult time. what happened after october? the market went straight up after that. quickly recouped all of its losses from that summer and went on to end the year, i don't know, maybe 20% higher. >> right. >> a tremendous opportunity to buy stocks. >> right. guy? >> currency moves we see on an hourly basis used to take six months. let's talk about what beaks is
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talking about, what works? >> look what happened quietly in gold. that is starting to work again. a lot of people faded it and that's been the right move over the last 18 months. i'm not certain it's the right move now. the gdx had bear market rallies but i think this time the rally we're seeing will sustain itself. >> and bring it back to the u.s. stock market and give out the dixie here. it has a massive run from 80 to almost 100 here and, you know, back in 2000 it skyrocketed. just think about what that means for u.s. corporate earnings. you talked about disney currency. still ahead, the worst day for stocks in well over a year, plus, we're all over tonight's after hours action from hewlett packard, sales force and the gap. what they are telling investors. and biotech stocks getting slammed in today's sell off but we'll tell you about the one name that could be poised to pop
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welcome back to "fast money" the dow falling 350 points and the worst day for the dow and
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s&p and connecticsumers. lower sales force in the after hours session. those conference calls underway and we'll hear from mek whg whi. why reagain ron could take a hit but first, another check on hewlett packard. the conference call well underway. dom chu has highlights. >> lots of highlights but let's talk about the stock. it found stabilization down three-quarters. 333 some thousand shares traded in the after hours. ceo meg whitman on the call about challenges and head winds that faced hp as it stands right now and will face hp in the future. take a listen to what she said about the current business environment. >> even with the separation process heating up, we remain
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focussed and execute well across businesses, however, we faced a challenging macro economic and it spending environment in the third quarter with soft consumer spending, continued weakness in russia and china and stock market volatility. >> so, those are skricripted comments from the conference call and went on to say she sees weakness in personal systems and printing that could be around for the upcoming quarters. the outlook for the hardware consumer-driven side of the business perhaps not getting ramped up any time soon. we'll continue listening for details but for now that's what we got on the hp call. back over to you guys. >> thanks so much. >> really important take away. she staid stock market volatility. china and a lot of people have been saying that the stock market volatility in china is not important. hewlett gets two-thirds of the sales from outside the u.s. a lot in china, emerging markets are a huge great area and that's as honest as we've heard from a ceo and fortune 100 companies.
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>> the q and a session will be interesting. for more on hp, let's bring in dan morgan. dan, great to have you on. >> hi. >> you know, the context to this move in the after hours session is in the regular session hit a 52-week low. at what point do you think the stock story starts working? >> eloquewell, at this point we waiting for the split to occur and i think once that happens, we have to make sort sort of decision whether we want to hold both of the pieces or potentially sell the hp ink and buy hp enterprise. at this point, melissa, it's hard because we know they will splint in a couple months and you can't really get much traction in terms of making decision on the stock. we'll just have to see how this thing plays out. >> dan, at what point, even with the lowered guidance, this stock is now currently trading about
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7ish times forward iearnings. given this quarter of the backdrop of this market, if hewlett packard could hold the 27 level and pounce, would you think that's the bottom? would you find that to be an encouraging sign given the environment we're on in. >> the multiple is incredibly low and e heai heard you talkin about ten times earnings and technology companies higher. i think eventually just from a valuation perspective, the stock has to make some sort of sense. you have to remember we hold this position over the period because we were getting income from it. it was a two and a half percent dividend yield account. so again, low pe, what's your downside risk on a seven-times earning stock and get it and not growing. everything is bad, but maybe there is upside when they split and things start to get going for them in the enterprise segment. >> it's karen, let me ask you, do you think there is any sandbagging before the actual split so that they have a low
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bar to work from once they do separate? >> well, they had a low bar for a long time. we all know that, right? the estimates keep coming down and they really haven't done much growth. yeah, i mean, i think everyone is kind of a wait and see going into the split. the bar is extremely low. if you go through the quarter and look at the segments, they are negative year over year. enterprise service, pc and printing, not much in terms of any growth, software was down. a little better than what the street was looking for in terms of the units but, you know, the bar is so low like you said seven times earnings and you talked about the struggles overseas. so you would think if they can do one thing positive, you would get some good positive movement in the stock. >> dan, going to leave it there. thanks for joining us. >> thanks melissa. >> hard trade. >> sounds awful. >> at this point, you're trapped in the stock. >> it's a value trap. >> but then again, what is going to happen in the spin off?
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is there something that's going to happen to the business and magically get more demand from china or enterprise? to me, it just seems like a value trap. i don't think you short it. i'm with dan, it's down so much, awful but if you're in the stock, you wait for any kind of rally and get out of it. >> there might be investors that want more of a pure focus on -- >> enterprise. >> the softer side. >> who don't want to buy now. i'm not one of them. >> i don't know. >> yeah. >> that's fine. they are not good investors. >> shares of sales force moving higher after hours. let's get back to josh lipton with the latest, josh? >> well, melissa, it wouldn't be a sales force conference call unless you had ceo mark taking a victory lap and talking trash about rivals. he did not disappoint. take a listen. >> there's no other enterprise software company selling billions of dollars of crm and still growing at nearly 30% in
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currency. look, microsoft, oracle selling millions, with an m, we're selling billions of dollars of crm with a b and that's the difference between ups as and t competition. >> on the call, melissa, keith block was on there saying sales force sees exceptional performance across every cloud, marketing cloud doubled large deals year over year and sales force is taking share from rivals growing in every segment, every region. sales force he said demonstrating incredible execution. melissa, back to you. >> are we in the q and a period for this? i wonder if analysts brought up to the possibility of being taken up again. >> i haven't heard that yet, melissa. those rumors were certainly front and center the last time. a bit less of a premium as we head into this print. haven't heard that question yet. certainly if i do hear it, i'll bring you that news. >> thank you. we talked about that before in terms of the premium.
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there was a note out today essentially saying it could be north of 80. i think the valuation was between 81 and 88 if it gets taken out. >> trades at 72 times forward earnings. all growth he speaks of, they are getting rewarded in the form of multiple. it can trade north of 80. wouldn't be nuts especially given the fact their company is growing and nobody else is and i do think that there is somebody out there that might bite the bullet and say we need these guys, let's take them out. >> it's probably or kiacleoracl probably. >> even with the bad blood. >> i think microsoft never wanted to buy these. they were the rumored one. they probably threw out a low bid to push up the price or put a floor in for or kill becauacl problems. they are all not doing great and have dollar exposure. so oracle will have to do something. the stock is down 17% so maybe they are pushed to do this sort of deal and get rid of the
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management herd. it's just not working there. benihof is the guy. >> i can't imagine that ellison -- >> like okay, you ragged on me in the past but it's okay with me. >> enormous, enormous deal for oracle. >> yeah. >> $500 million -- >> you know. >> that's true. it would be. >> i would sell that deal all day long in this environment. i wouldn't sell crm. i think you probably get, clearly, you're going to get a pop but i would -- once a deal is done i would sell that all day long. >> wow. that's deep. >> that's deep. >> let's think about that. and go to break. still ahead, big oil, big problems, the name some traders are betting will soon cut their dividend plus meg terrell is here with a look at one biotech stock that could be in for a huge move next week. much more "fast money" still ahead.
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welcome back, biotech, speaking of biotech, the cholesterol drug wars are starting to heat up today, as well. we're waiting for an fda decision for amgen's cholesterol
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drug. time for some stock therapy. meg terrell joins us, meg? >> this is a big new class of cholesterol drugs for patients that don't get far enough on st statins and lipitor and amgen is close. people expect approval of the drug by thursday of next week. so because approval is priced in, rbc is putting maybe a three to 5% move on the decision but what people are going to watch, is how broadly that drug is approved and whether that matches the approval or if it's narrower and where they price the drug. it can be taken by millions of patients. analysts for peak sales at $5 billion. so what people are watching is for amgen comes out on party or price at a discount to try to
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get people to prescribe it because it's cheaper? >> the estimates are both $5 billion. does that assume, what does that assume with both existing in the markets, they will both hit $5 billion? >> that's what people expect. they say in a few years at peak annual sells they can reach $5 billion. right now folks haven't seemed to have called a winner. they are basically splitting the market evenly. it will be fascinating to see what pairs and pharmacy benefits managers do to put these drugs against each other. >> can we see pressure on pricing from them? >> absolutely. i was speaking with express scripts and they did this pricing pressure with hepatitis c drugs that messed with my tech evaluations. they say that there is the potential here and they will review these drugs in early september so we could get more news in early september. >> we'll be watching for that. >> so regeneron, speck t specta
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quarter. it's more than twice of what amgen is. you have to ask yourself -- >> would you rather. >> i would rather amgen at 15.5, 16 than regeneron. people will focus on valuation, gets in the way and amgen better than regeneron. >> we were on power lines chatting about female viagra and you said that you nailed it. shares down today, the broader market down today but what's the general take for valeant it was down 6%. it was down more than the rest of biotech and normally valeant gets rewarded for purchases. it moved quickly. sprout was only approved two days ago and mike pierson said they put this deal together in three weeks. folks seem to be questioning the billion-dollar price tag, can
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this actually achieve that much in sales. >> sorry. >> if they put together a deal in three weeks, did they know prior going in? >> recommendation for approval -- >> that's right. >> so sprout's ceo said they had a lot of suitors after the positive fda advisory recommendation. you have to wonder if that's what drove up the price for valiant. >> do they want to be the sexual destination? >> they said they will use it to build out their female drug offerings, female health so maybe that's a starting off point. >> meg, thank you. our biotech reporter. why are you grinning? >> why are you looking at me. two guys grinning like school children and you look at me. >> let's talk about amgen. amgen was the subject of actual takeover rumors and the stock got above $180 and down 11% and sitting on the 200-day moving average. what looks like brilliant support long-term technical
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support for months. $150. if you see them at $150, that's where you scoop it. it will be cheaper down there and then maybe those takeover rumors start. >> we're worried, do you want to buy any -- >> listen. >> the down market -- >> i don't really get a sky is falling thing. there will be opportunities and amgen is the sort of stock that you want to buy if it gets too over sold. it's almost there. >> agree? >> yeah, i guess. i'm not as smart as dan pretends to be. [ laughter ] >> that's the only way i trade. so ibb at 340, b.k. is a buyer. >> you're in both. are you lighting up at all? >> no, you know, this is -- >>ed ai ed a adding for? >> not adding more. it's a rocky one but i'm hanging out. >> yeah. >> love stock therapy. >> what? >> you were grinning. anyway. check out shares of gap
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jumping. surprising comments the ceo made about the consumer and which big oil company is cutting the dividend. you're watching cnbc first in business worldwide. much more "fast money" straight ahead. i called for help as soon as i saw her. i found her wandering miles from home. when the phone rang at 5am, i knew it was about mom. i see how hard it's been on her at work and i want to help. for the 5 million americans living with alzheimer's, and millions more who feel its effects. let's walk together to make an even bigger impact and end alzheimer's for good. find your walk near you at
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gap trading higher. courtney regan has more. >> gap gives the report card with sales updated revenue results. so the new earnings -- learnings, rather, ceo calls old navy's consistency a thing of beauty edadding they are workin to restore processes to the gap and banana republic and took a moment to discuss the noise around the market for apparel and the consumer. likely a reference to macy's ceo terry's comments on cnbc last week and the on going commentary about u.s. consumer's lack of interest in apparel. take a listen. >> from what i said across all of our businesses, our job is to deliver regardless of the noise that's out there today, and what i see is i see a consumer with
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confidence and dollars being spent and an opportunity for us to continue to get more than our fair share as i look forward and i'm very optimistic. >> now, when it comes to the various economic news out of china over the past few weeks, peck says he's quote bullish on the opportunity in china and as far as he's concerned, there is no change in the direction strategy or intensity that that market as a long-term growth opportunity. melissa? >> how did the business lines break down? things are great at old navy and have been good for sometime but i would argue more comparable could be banana republic and gap line. >> those sales are down and negative for the quarter and those are brands struggling. gap is the biggest. old navy is growing at the fastest rate and they are also doing the best and so they are taking a lot of the learnings from old navy and trying to institute them into the other brands but yes, you're right, i
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would say that a gap perhaps is more comparable to what we're seeing at the department stores when it comes to offering and price point, maybe even banana. old navy probably competes more with the tjx or ross, rather than macy's. >> all right. courtney regan, thank you. >> thanks. >> he almost seems like he was picking on macy's. >> we're long gap. it's not expensive here and i think they reaffirmed their guidance, which i think they must feel pretty confident because it could have had a free pass to maybe talk it down a little because -- >> of the other retailers. >> i think we're seeing a denim trend that will be a benefit. i like it. >> guy likes the denim trend. >> i live the denim trend. >> you are the denim trend. >> retail. >> you coming to me? i thought you were making fun -- >> i was, also. >> gap is cheap. it's probably 11.5 times forward earnings. guidance good. you have to be concerned with operating margins. last year second quarter, 14.5% this year significantly lower. inventory up 2.5% year over year
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and sales growth down. is it in the stock? is it in the stock? with a 13% shortage, i know there is a long for every short but shorts might cover this on the back of this quarter so you may see it up another couple dollars from here. >> a 52-week low in today's session. >> it was. >> big oil stocks fresh lows and options traders are seeing the potential for big dividend cuts. this is really a concern of investors here. >> the keyword is potential. you're going to see it in a lot of names much further down the food chain but the large integrated oils, look at the options market, anything but take it to the bank here but the options market is employediimpl declines. there you see it. b.p. expected to be down 25% and chevron do chevron 20% and what is going on here is obviously, listen, these guys have fat dividend yields
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now. b.p. is close to seven and chevron 5.5. here is the thing, they are not likely to raise dividends but they have cut buybacks. chevron has taken them off the table. exxon reduced it in half. why is that exxon number at 10% relative to chevron? they have buy back in place and that puts the likelihood of a cut much less. one other important point. exxon never cut the dividend, ever. that would be a significant market event if that happened. it doesn't seem like it's going to happen and maybe one other point, since exxon -- >> never cut meaning never reduced. >> okay. so i would just make one point, since they merge with mobile back in 1999, they have returned in the form of buy backs and dividends, $340 billion in shares. you know what their market cap is now? 315. >> interest sglg for mo. >> for more check out "options action". >> love it.
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i was on there last week. >> we all know that. coming up next, traders reveal what they are watching for tomorrow. much more "fast money" straight ahead. i'm here at the td ameritrade trader offices. ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this. aaflac? aflac! i thought you said this guy was the best? oh, he's a horrible stylist. gah? but he's the best at paying claims fast! really... mmhmm. paid mine in just one day.
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sales force moving higher. mark smoke with jim cramer what is driving growth of the company. >> we're the fastest enterprise software company ever to $7 billion. you can see that on the numbers today, and we're going to be the fastest growing enterprise software company to $10 billion. that's my dream because the cloud is happening, social is happening, mobile is happening, data is happening and the internet of things is happening and that means you need to be closer to your customer than ever before. >> got to catch the full interview with sales force ceo. top of the hour on "mad money." time for the final trade. dan? >> if you see it stabilize tomorrow morning, you know the safety. >> breaker? >> still a macro world. watch the currencies but be careful for the market gapping lower and reversal tomorrow. that's the key. >> karen? >> yes, we'll be watching footlocker to see if we see that trend continue. >> guy? >> happy birthday led zeppelin,
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big "fast money" fan. goes green tomorrow, don't fade id. right there sister. >> yeah, brother. see you tomorrow at 5:00, in the meantime "mad . my mission is simple. to make you money. i'm lehere to level the playing for for you. i promise to help you find it. "mad money" starts now. hey, i'm cramer, welcome to "mad money." welcome to cramerica. other people want to make friends, i'm helping to you save money. my job is not just to educate, to teach and put it in context. call me. of course, tweet me @jimcramer. d-day, august 4th, a d


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