tv Countdown to the Closing Bell FOX Business September 9, 2013 3:00pm-4:01pm EDT
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owners. buying for $6 million. and $7.2 billion. and apple crossing the threshold. get ready for the tech giant up tomorrow. we will tell you everything you need to know ahead of the big unveiling from apple tomorrow and also where apple stocks may be a buy. great discussion coming up on that name. and one stock is flying high today. nicole petallides on the floor of the new york stock exchange. hard to pick one on a day like today. nicole: no pun intended, but it is true. this will occur tomorrow after the close of trading. what is interesting is you can see the stock is jumping up 8% thus far. the reason for that is portfolio managers who have to mimic the
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s&p 500 exactly need to go in and purchased delta as part of their portfolio to have the same performances. what is coming out? on its way out. delta will be the second airline in the s&p 500, also southwest in that airline. what is also interesting you may remember it used to be an s&p 500 component pulled out in 2005 report filing for bankruptcy and obviously this is a big milestone to go back in the major index. cheryl: certainly is. maybe you can show me that in the next hour of fox. thank you very much. after months of battling with shareholders, carl icahn has given up on his plans to block michael dell's buyout plan. adam shapiro in on this turn of events and what it means to him in particular.
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adam: according to the "wall street journal" the 5% stake in dell will bring him $70 million. but he still says this stock is greatly undervalued at the price michael dell will pay for the dividend along with the partners. in a letter he sent to other partners, carl icahn actually said even in a dictatorship when the ruling party loses an election and then ignores itself, to prevent to cause reason to justify their action what he's talking about is the special committee which delayed the shareholder vote twice to give mr. dell a chance to uphold his bid. what is the difference? most dictatorships only need to postpone the vote once to win. here is the key quote to what is at stake going forward. he says will determine it is almost impossible to win the battle on september 12.
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we have therefore come to the conclusion that we will not pursue additional efforts to defeat the michael dell proposal although we still oppose it and will move to seek appraisal rights. he is looking to get even more money although it will be about 70 million. cheryl: and nice little consolidation price. adam: it would make me feel little bit better if i was buying. cheryl: you have been covering the story wonderfully. thank you, adam. we have traders standing by at the new york stock exchange, cme group and the nymex. nice market, the dow pushing session highs on the screen. what are you watching? >> it is a great way to watch. it looks great, the whole market looks strong today. a great way to start the week. cheryl: you are nervous about horizon in terms of what happens overseas or
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domestically? >> not really. you come to the end of the quarter. i think w we're going to see god movement. it looks strong. it is not going to derail this momentum on the upward swing. cheryl: you are referring to triple widget. that is friday, correct? alan? >> next friday. cheryl: kevin, what are you watching right now? interesting to see the push and pull between commodities and equities on the floor of the cme. >> we're really looking at bond yield coming off of the 300 basis point level. look at the market in general, trading broader ranges. syria driving the market. it'without good news out of chia and japan overnight. but all eyes on the fed.
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make it a higher in the market. making a catalyst maybe one of those things. cheryl: what if they don't take any action? a lot of talk after the jobs report came out that the data does not support a fed move of any kind of tapering. what were to happen to the market if they didn't do anything? >> right now seems to be good news is good news but bad news is good news because it means a tapering gets reduced further or is shelved for the time being. nothing was done at the meeting. that can certainly be the catalyst to push things a little bit higher through the end of the year. cheryl: it has been a rough four weeks of trading. it is rough for drivers, gasoline prices ticking higher.
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how much more run up do you think oil has at least levels? >> it depends on syria, i suppose. if you have any kind of military strike, the market will head higher. i think we are little bit lower today because there is uncertainty of when and if that will happen. if there is some kind of a strike, we could see several dollars higher. cheryl: still several dollars, that is interesting because we we're in a different situation than where we were two years ago talking about egypt and of course libya. we have more domestic production. we don't think that is keeping a cap on the price rise? >> it is just psychological, the market will trade higher. cheryl: alan down at the new york stock exchange. talking about the fed, i want to
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get your reaction to what kevin was saying. you could see a nice equity pop. even 5 billion would be a nice move from the fed, what do you think the market does? >> 5 billion may be baked in because you look at ben bernanke retiring. he may want to start the ball rolling. the market anticipating some sort of a little tapering right now, so you may see something. the jobs number is weak, but auto sales have been good. pretty good numbers across the board but i agree, definitely a big push upward. light tapering will not be rally up. cheryl: i like the bullish tone. we shall see, it will be fun. thanks to all of you, appreciate it. >> thank you. cheryl: let let's see what is happening overseas. john kerry has given the syrian
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government one week to give up its chemical weapons if they want to avoid a u.s. tax. as u.s. house representatives meet for a private briefing on the crisis. rich edson joining me with more from washington. everything has been so publicly debated out of these guys, now they are meeting privately. any details? >> they continue. a very intriguing international conversation. thanks very of state john kerry did say the virgin give up the chemical weapons within the next week that would be something that could possibly avoid a u.s. military strike. administration spending on that throughout the day saying only rhetorical amounts. said we would offer a process where the united nations would oversee the destruction of the chemical weapons and so the ministration has been expanding on what he has been saying all afternoon busily when it comes to assad giving up chemical weapons, they find that unlikely.
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>> we would welcome assad giving up his chemical weapons doing it in a verifiable manner so we can account for them and destroy them. unfortunately the track record is including recent statements by assad not even acknowledging he has chemical weapons doesn't give you a lot of confidence. >> former secretary of state hillary clinton says that cannot be an excuse for any delay. on capitol hill the briefings are just beginning on both sides of the capital at 5:00 p.m. when the senate members will get a full briefing. all members are due back today so the congress is available to take this all in and be persuaded by the obama administration. last night for president obama and the vice president, that continues. meeting with senate democrats tomorrow. harry reid says that has been extended to senate republicans.
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president obama addressing the nation tomorrow night speaking with news anchors this evening. harry reid says the first time we will have a procedural vote on an authorization likely wednesday. cheryl: truth be told it will take the rest of the week to figure this out. >> the full house will not touch this until next week. cheryl: certainly has the ministration folks out there selling this plan. thank you very much. continue to follow what is happening in syria. the closing bell is going to ring 50 minutes from now. tomorrow a day of reckoning for apple as it unveils the iphone and cheaper version of the popular smart phone. we will see what is likely to happen to apple stock and if it can get back to its all-time high.
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cheryl: neiman marcus is being sold. joining me now is capital advisors ceo and chief equity strategist. gentlemen, it is good to see you both. first, your reaction, you like this one? >> what is neiman marcus? they have no growth, they will have to grow within, opening up new shops. since the financial crisis of 2006, one mall has opened up. a trophy asset and good cash opportunity.
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cheryl: i guess you have that much money to throw around. you look at tpg, you have to wonder what was their thinking muc.or are the canadians so much smarter. what do you think? >> that is a great point. tpg has a great track record of success with retail. i am less familiar with the buyers track record. they mentioned consumer base deals, but as brian pointed out, even if you wanted to grow, there is not the real estate to do so. as you pointed out people say the only way i can grow is to acquire down in the lower 48. cheryl: i had a very interesting thing with private equity guy over the weekend.
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i so what is your take on neiman marcus? he said his favorite emerging market is the u.s. we are on sale. maybe that is what the canadians are thinking. >> i'm kind of in-line, this this is a little better company on the financials. the multiple, a little richer, a little cheaper maybe a little richer on sales multiple. it is not that expensive, and you have to wonder what is their alternative, valuations are very high. it looks cheaper in the united states. cheryl: we were talking about that before the show started, this is a $3 billion deal. but we were expecting, literally could have gone on publicly traded, one of the names shareholders can go out and buy. now that is being taken away from us.
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>> it is a play on online business. 40% of the business online comes from international consumers. pitching this deal to an area, maybe they said you can open up a neiman marcus store in dubai. but the familiarity is big he says he will the hulking definition for retail in the u.s. and spend the currency. cheryl: maybe not so much for neiman marcus. internationally. >> they are a more viable brand. this company tpg like retail assets, what are they buying now? cheryl: you have to wonder if tpg will go public themselves. i want to go back to neiman marcus, they were talking about an ipo. you have to wonder is it that are now for companies to go private and get out of the glare of the public market.
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>> i think it is interesting these are both strategic transactions. one thing i would pull into the equation is there are actually different rules for real estate up in canada. real estate even though it is not as hot as it used to be, it has gone for a premium in canada so that looks more attractive to a canadian investor. i don't have specifics, but in the hudson deal, that was definitely part of the plan and there is more financial engineering juice. cheryl: we will see more of this, you think? >> i don't know if there are any more on my radar screen but thinking there is not a lot of ways to grow, people are looking for avenues of growth, people are going to come and say the
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only thing i can do is try to do a strategic transaction so not idea, yes. >> look for lots of dogs with fleas. cheryl: guys, thank you very much. thank you so much, good to see you both again. the closing bell ringing and 40 minutes from now. let's talk about something else. the man was once the sheriff of wall street, soon we'll find out if he will return to public office. charlie gasparino will tell us if he can shake off the ghost of the past and what he would do if he becomes the next comptroller in new york city. japanese stocks getting a boost in the race for the 2020 olympics. what about the long-term? how you can get a slice of the action. what companies are likely to
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cheryl: after long battle, new york will finally find out if the former governor of new york eliot spitzer will become the comptroller. what can new yorkers and wall street expected fuse victorious in tomorrow's election? charlie: we call him governor socks. tomorrow is the democratic nomination. if he does win, it is pretty scary for wall street. the largest institutional investors in america. the street is getting scared. it was on our show earlier today, let's see what he had to say. >> i think if you look at how he would approach the job.
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he said we should look at his time as a metaphor for what he would be doing as comptroller. that is worrisome because when you look at how he used or misused his position as attorneys general, the job is very important especially for the hundreds of thousands of retirees and people putting money into their retirement system in the city of new york to have somebody who might not have their best interest at heart running the job i think would be worse. cheryl: does not have their best interest. the commercials running in new york are all about who cares about you, he is watching out for the little guy. charlie: this is a job where he should work with wall street. he needs to manage their money, pension funds to sell new york city bonds. dealing directly with that.
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in rhetoric it is something kind of different. offering to be an activist comptroller and investor. even more than the previous. offering to use the city pension money and very ac activist waysd creative ways. if you think about it, what you want? you want them to make good investments. carl icahn would not be so bad given his recent track record, but you are right about that. want some who makes prudent investments. i think why somebody like him is worried as they believe he will make the office and bring back the tactics. you have immense power because you are law enforcement official and subpoena power and you can indict somebody please function equivalent of a parking ticket. he iit is a very powerful tool.
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you can bring fraud cases. you have some of those same powers because you can subpoena people. he can be activist in terms of an individual investor. i think he is on the board of one of the big exchanges, he has been kind of a consultant for many years. he was a former sec commissioner. but what is interesting about this as he speaks for the business community. they will be right in the crosshairs jpmorgan and its ceo, jamie dimon. if you listen to him, if he singled out anybody in the campaign, it was jpmorgan and jamie dimon.
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i think there is a 51% chance eliot spitzer will lose tomorrow. establishment is against him. although he has outspent his opponent by 10:1 or something. we shall see, to be very interesting to see how this thing goes tomorrow. it is the democratic nomination in a heavily democratic city putting eliot spitzer in office. we got into that, you and i. it looks like he is leading that race, but that could be a little tighter. my guess is if they are in a runoff, thompson will actually win when the runoff is over because i think everybody who did not vote will now vote for
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thompson. it'll be an interesting coalition. a really smart guy, think is much more conservative fiscally. and much better mayor. he was city controller. cheryl: charlie gasparino, thank you very much. it will be fun in new york city tomorrow. 30 minutes to go. coming up next, trading on treasury worries. what that means for the broader market. the playbook for rising interest. 10-year treasury note hovering below 3%, and the fed getting ready for the big meeting next week. we went out and asked people a simple question:
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how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need
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to enjoy all of these years. ♪ cheryl: blackberry shares trading higher on reports of a possible buyout. nicole petallides with that. nicole: it is interesting to watch. don't forget it was able he missed. more than half of all smart phones around america, and then after that the competition with google and apple and the likes fell off as a big competitor. the takeover talk continues and there is development the largest shareholder of the company is now securing billions of dollars in bagging from the pension fund for a bid according to the sunday times. that would be big news and you can see the stock jumping big
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time. it has been struggling and we do also know they stepped down from the blackberry board in august. new this was the conflict of interest, they wanted to take over the company. cheryl: i thought the exact same thing. they are on fire right now in canada. the call, thank you very much. as investors weigh what happens next with syria, it was a mixed day for commodities. sandra smith has the big movers for us today. sandra: the stock market continues to go back up into record territory. as you can see the nasdaq the best performer out of the three. you are talking about all the volatility in the commodities market. crude oil prices on an intraday basis reaching their lows of the session, a lot of the fear
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premium getting sucked out of the oil market right now. we are now back below $109 per barrel, 1.5% on the day. as oil prices go down, so do wholesale gasoline prices. prices coming down as they are at the lows of the session. gold prices just barely into positive territory. copper getting a boost on the better-than-expected news out of china. the news giving a boost to the stock market. look at the dow 30. anything commodities related is hot right now. little function on the data wizard since i have been gone. accounting for 18 points out of the dow triple digit gain right now. a lot of those material related stocks doing really well. the s&p 500 to show the picking
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up of this rally we have seen so far. s&p 500 above the moving average and look at the leaders within the s&p 500. a lot of it material stocks. homebuilders after we got a home-building report with a profit this morning. dr horton doing very well. the report was not great, in fact the profits were down from a year ago but a lot of those big names leading the s&p. back to you. cheryl: the 10-year treasury yield has come down just a bit, but getting closer to the next meeting what will treasury's due next and how should you be investing? join me next, fixed income
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strategist. it is good to see you. the 3% number, we know it matters on the yield, but how much does that matter to the bond market in the greater scheme of things here? >> it is more of a mile marker than a fundamentally significant level. after the beginning of may or so, we had a tremendous move, 140 basis points in less than six months. it signals psychologically there is actually value in some areas of the bond markets now despite the negative returns. cheryl:'s seems to me you are advising clients and our viewers is about short-term debt, the longer-term debt is maybe not as attractive to you, is that a fair assessment? >> i think it is for a couple of reasons.
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there are fewer and fewer places in the world to hide right now. looking at the short end of the curve the options are to invest and earned virtually nothing for two to three years down the road or clip a little bit of coupons. we are encouraging to shorten up on average and really look for the yield curve. while three-year interest rates have risen, at the highest levels since 2011, and they are overestimating the possibility the fed begins to hike short-term rates. cheryl: what are your biggest fears about fixed income? what do we need to have on our radar as we move forward? >> it focuses little bit on the paranoid side. what we see in terms of risk is maybe not what is right in front of our faces, but a couple of out there items. the timber 22nd the german federal election schedule.
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not much attention is being paid in the market but huge implications for the structure of the euro zone down the road. the referendum if the german people want to consider supporting the rest of europe naturally. the rise in discussion over the debt ceiling. still six weeks before it becomes a real issue but the debate is moving toward the rancor side and that is not good for all the financial market. everything. cheryl: it seems this does affect the pond folks, that would be you, the fact we will not have some kind of intimate and resolution, something by the end of september, that will really make the market jittery. if you can kind of fast-forward to three weeks from now, what would be your thinking at that moment? >> one of the things treasury secretary said that was particularly interesting, we don't know when the debt ceiling
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runs out of money. we don't have a great idea that will be the second week of october or the fourth week of october, so it is important for congress to get ahead of that the very least provide enough breathinreading room so doesn'te another manufactured financial crisis. cheryl: thank you very much, it was good to have you on the show. the closing bell is going to ring, the dow up 131. japan will be hosting the 2020 olympics in tokyo. have a list of getting your portfolio a gold medal after the break. tim cook takes the stage tomorrow for a highly anticipated apple event with the stocks trading above $500 per share is it a buy or sell? coming up next. [ tires screech ]
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cheryl: japan is celebrating the victory in the race for the 2020 olympic games and the news helps give japanese stocks and nice boost today. when the honor of hosting the games. a meeting of the international olympic committee in argentina. the brokerage firm has come up with exclusive japanese stock that could benefit from the olympics including companies that could win big from new construction projects in tokyo as well as one of the largest providers and security services in japan. it could also be a huge beneficiary from gains. east japan railway could see a major development of one of its railyards. new line this will create 150,000 jobs and cost $7.4 billion overall.
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less than with the london and beijing games cost. really help in the market and frankly spirits in japan. i want to show you something here. talking about tomorrow. we're all very excited. a couple of things i want to show you, these are the companies you want to watch looking at the iphone. we never get what they will tell us, but we pretty much think it will be the iphone 5 coming out from tim cook. that is samsung. that is one of the companies you will watch tomorrow. there's a lot of rumors right now they will upgrade the camera. various manufacturers. remember, we're thinking it will be 4 inches, right now it is smaller. we'll talk about that with our analyst.
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the battery, this is a sony product right here. take a look at what happens with sony. go down for a couple more things, power management. take a look at qualcomm stock tomorrow through all of this. i am showing you the iphone four which will be yesterday's news with the big news coming out from tim cook and apple. senior research analyst at pacific coast. we're looking at these plays with the iphone, but the big question really is going to be if this is a bigger screen and if they come out with a cheaper model for the chinese market is this the catalyst apple needs and the shot in the arm that we are looking for right now? >> short answer, no. we expect to get to be busy the same size screen and we are not
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expecting a low-cost device. probably wholesale with a subsidize retail price of about $100. cheryl: you have a buy rating on the stock, are you feeling this is kind of a misnomer tomorrow nothing exciting happens besides a couple of announcements, do you think you will keep the buy rating the stock? investors want something shiny and new from this company and it seems like we haven't gotten that for a long time. >> what if you open up a pretty large addressable market in the chinese market with even the iphone 5 as you mentioned. that could be $5 to $10 annual basis impact on that if they got additional market share from what they already have. i don't know a larger screen will happen. i think that would excite
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investors. probably the two most likely. i think they move forward on that avenue because they have about 11% of their revenues recurring, i think that is something that can be a multiple expander for them. cheryl: you are sitting on a neutral right now on the stock. this is a stock down 24% over the last year. can't there be a moment maybe tomorrow time to be a little bit more interested maybe change the outlook for apple? >> there was a moment who were little bit more interested in right now i think some massive new product. we tried to look at the value chain, it is hard to find outside of a processor or a bank. cheryl: samsung releasing all
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about the watch. looks like that is going to be maybe delivered. maybe not tomorrow but at least down the line. some songs seems to have stole the thunder here, do you agree or disagree? >> i disagree, i don't think what samsung put out was anything more than a bunch of junk quite honestly. i think to really change the game you have to come up with something that solves the problem that i have. i have to be pretty lazy for what samsung put out to solve a problem my phone doesn't. that is what we're looking for. cheryl: very good point. we think we're hoping we can get one, do you care?
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since we pretty disinterested at this point. >> i don't think you are going to see the watch. it has martians of pressure. it has impacted the stock. we have had $600 price target first time at upgrade it was around 385. i think the major product is the apple tv. i don't think the software's difficulty. i don't think content providers is the difficulty. i think the cable market is her difficulty raking into that market will be their greatest challenge. but that is the needle mover and what fits with its strategy of the iphone, ipad software-hardware. cheryl: i respectfully disagree on that point about the apple tv because apple tv has been making some agreements with the cable operators getting a little bit
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of an end road. you don't think that is happening? >> i don't want to put words in their mouth, but it is not necessarily talking about the hardware, lots of money in distribution, you can kind of take the role of comcast or directv for that matter, there may be a profit opportunity in it. it is a very interesting market. cheryl: gentlemen, thank you. it would be something to talk about. thank you so much. the closing bell is going to ring, this is it. fox business is on the road this week. liz claman on the road for three days. robert gray's getting ready to pack up his car for the big apple event plus thursday adam shapiro heads to texas for
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dell's shareholder vote. right here on "countdown to the closing bell." at the developers conference with this was an interview with the new ceo. thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.
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split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪ >> we're off session highs but stil closing above 15,000 for the day. this is a great time to bring in david asman to do a little celebration this monday. david: let's celebrate. cheryl. good to see you. as you mentioned before, apple is a big part what is starting the nasdaq rolling. nicole, apple is well over 500 right now. it looks like it is there to stay. >> exciting day for the
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shareholders. tomorrow is big day and we've got you covered. we may see from the iphone 5s and 5c. more china mobile deals and more sales in china. a lost analysts had a lot to say today. the stock really reflected it. >> speaking of asia, reports that are alibaba could list in new york, nicole. >> that would be obviously a big deal. obviously a new york city listing would be beneficial to yahoo! that gained today. 3.8% for yahoo! david: not all is in the green. tesla sake taking about a 3% cut today. >> it is interesting. tesla is up 375% this year. 375% this year but dropping some today on thoughts that they may actually begin, we're seeing whether or not they have a challenge to bid over the sell directly to consumers if the auto sales places get in their way. >> lululemon, got to hit it really quick ahead of earnings report. stock is looking good. >> yeah.
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buy at citigroup. [closing bell ringing] liz: >> like that. david: like a winning to start a monday, new week david: russell 2000, small and mid-sized caps. they are doing the best, up over 1 1/2%. in fact we've got a guest coming on who specializes in small caps. he will tell you specifically where to go in the russell 2000. >> do not ignore the small cap story, david. that's for sure. here are a look at the front page headlines for you right now. it is about carl icahn, isn't it? the billionaire quote, thrown in the towel. he thinks so. in his fight to block a proposed buyout of pc-maker dell by founder michael dell. icahn says the battle would be almost impossible to win. david: owners -- by the way he still made 70 million bucks. not exactly a loss. owners of luxury retailer neiman marcus
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