loeb is doing? let's debate it now. doc, make your case. >> i think you get a great opportunity here, scott, to pick yahoo! up on this dip. i think you target more or less around the $25 area to be very aggressive with it. marissa mayer is doing almost everything right, and not just saying that mobile is her top priority, she is going out and buying all of these app makers and getting the talent and the engineers and as well as helping integrate things like tumbler and the growth from smartphone as far as the number of people hitting the yahoo! page versus google, they're growing faster on that than google is and tells me they're doing things right with the strategy. >> i think, doc, the jury has to still be out on what marisa is doing and the reason is twofold. one is looking at what went on with the way the stock sale went down with loeb selling his stock at friday's closing price, you know and i know it is a secondary. there should be a discount on that huge block of stock, agreed? >> i would agree with that. i would

loeb himself will be stepping down. the company or the hedge fund will continue to own roughly 20 million shares. that's less than 2% of the outstandings. at one point it had been as large as 5%. when this battle began as you can see, the history there, how much money they made overall at least a billion dollars when you consider 73 million shares and the stake that has been sold already, the new sale back to the company which will use cash to effect this buyback and the value of the 20 million shares that they already have. of course yahoo! itself has changed a great deal from august of 2011, and in fact, mr. loeb laid out his thoughts about how it could change and why it needed to at an investor conference held by cnbc and delivering alpha conference in september of 2011. >> generally you want to buy a great company with great management and in this case there was a company with some great assets, great potential businesses, and really one of the most horrendous management teams and one of the worst corporate goff una

loeb on his suggestion. let me also mention that a new equity position is being revealed, and that's in cf industries. cf industries, a new equity position by dan loeb's third point. you can see, obviously, what the stock is doing as a result of that. quoting from the letter, we believe its structural cash-flow generation strength is misunderstood, and that management should deliver a much larger dividend to its shareholders. such a dividend would highlight the sustainability of its cash-flow generation and lead to a substantial rerating. that's probably the most important point of the letter, regarding cf industries. just to rehash the top, it's dan loeb is stopping up his criticism of sony entertainment in his efforts to try and get that company to spin off the entertainment division. but that is the very latest from the most recent letter to investors, a quarterly such letter from third point. guys, back to you. >> all right, scott, thank you very much. phil lebeau, the i3 bmw. you took it for a spin. you

quote: liz: daniel loeb began urging sony tn off what he feels is that bloated entertainment division back in may. his fund is one of sony's largest shareholders, fox business reached otto third point who -- out to third point who had no additional comment. shares of sony are up more than 90% so far this year, but that spike you see mid may, that was after the letter from daniel loeb. s&p has had quite a run so far this year, yet a recent survey by bank rate shows that americans are still playing it really very safely with their investments. many of them sitting on the sideline with nearly a third choosing cash over stocks. it's no yield in cash, everybody. but one fund manager with more than $3.5 billion in under management says dive right in, take on some risk with the small and mid caps. he's roy hench, breaking down the fundamentals of small cap investing. not only have you dived right in, but it's really important to note that year to date you're up 25%. year-over-year you're up 46%, far outpacing your benchmark of 31%. but, again, if the russell's up 22%, you're already doing be

loeb is stepping up his criticism of sony entertainment. remember, he's taking a near 7% position in sony as he urges that company to spin off its entertainment unit. he does say in the letter he's surprised that sony's ceo doesn't worry that the entertainment unit continues to generate profitability levels far below its competitors. he sent a couple of letters now to the ceo of sony, and, kayla, we're waiting for sony's official next move. the ceo has saidwouldn't be opposed -- >> of course, given the time difference between the u.s. and japan, we could get something overnight. that's when we tend to get news out of sony. so it certainly will be interesting to see how he responds to this. the cf strad, i think, is interesting. you saw the stock jump to 8%. these are very, very high-yielding, free cash flow companies. very competitive space. a lot of m&a. there are a lot of strategic movements in this space, and so, it's no surprise that something that generates as much cash as one of these fertilizer companies does, that you wouldn't see s

and daniel loeb is leaving yahoo!'s board after just one year. you have to know that that guy on the screen along with michael wolff and harry wilson will leave yahoo! at the end of the month. these were the guys who brought marisa meyer from google to the leadership position here. loeb, who founded hedge fund third point is also selling 40 million shares of yahoo! back to the company, making about $1 billion in the deal. what does it say that these guys are pulling up their stakes and leaving? well, the stock is not liking this at all, it's down about 3, nearly 4% for yahoo!. so let's bring all of this together. traders at the new york stock exchange, cme group and the nymex. we go to john corpina. tell me what you read into the numbers here, not so much equities because they're somewhat flat on the session, but looking ahead this week what matters the most? >> you know, it's kind of interesting, we're in the second week of earnings season. so far if you look at a hundred of the s&p stocks that have reported so far, 64 have beat. liz: john, is t

what dan loeb is saying. the details when we come back. ♪ the world is changing faster than ever, creating new opportunities for those who stand ready to seize them. in a time when the biggest risk is playing it safe, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, our flexible, collaborative approach helps forward-looking companies not only run better, but run different... to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because now more than ever, the future belongs to those who challenge the present. >>> here are the stories we're squawking about at 7:28 on the west coast, 10:28 here on wall street. dow component united technologies rising to new all-time highs. the home of jet engines and otis elevators posting better than expected second-quarter earnings and raising the lower end of its yearly forecast. on the flipside, travelers is t

but i would like to have a conversation it's a conversation has a limit and has a ticket we should loeb's over let's go and if you don't like the way i interview or we just stop right there mr exxon although just before i began to break you were talking about syria being in the sake of different for legends and different strains of islam and i think it was a very rare example of peaceful coexistence of all those various religions in the world but what we are now seeing in syria is essentially be the crash of that idea off peaceful coexistence do you think it could be recreated and if you have any idea how well first of all let me tell you that i feel very set for what's happening because this society historically speaking was one of the most stable societies of the peaceful coexistence between different races different cultures and different religion religious affiliations. and what's happening in see you today. doesn't show that this peaceful coexistence fail that it shows that the the conflict there is a conflict of. of political wrangling between people supporting the government and op

dan loeb, i think he's trying to get something done. i don't think the japanese will do it. i want to sell sony. i think the odds won't favor it. sony's not expensive, but i don't think they'll get the big breakup. a tweet from @redsquare 27. i'm at the starbucks, very tired. what's the cramer? it's a double vente cappuccino wet, meaning it's water, more liquid. you don't just fill it with the cream. the foam right up at the top. now for a tweet from coach denim. when is the next book due out? holy cow. hey, coach, i am working my butt off to get that thing done. that's all i can tell you. next we have a tweet from andrew, who asked the following. the company is doing great. better weather. our next tweet is from @noforce danex. and the place is packed. feeling very happy. stephanie link, co-portfolio manager with me. i was saying we should take some at 111 for the trust because i think costco is going much higher, and the retailers are doing very well. our next tweet, hey, what do you think about broadcom, brcm? i could not believe it, got downgraded today. why, no catalyst

. >> lastly, dan loeb stepping up criticism of sony. third quarter revealing a new position and sending shares rallying in late afternoon trade. >> trying to catch these guy's coat tails or riding their coat tails is difficult. dan has had an amazing track record but remember he has time on his side. he can sit and wait. this stock is unchanged on the year, up 7.5%. today he thinks they can pay a much higher dividend. he's been a winner so this is one that you probably want to buy on pull backs. it's an out of favor stock and out of favor sector. >> pete, did you see activity in other related names on the backs of this? >> absolutely but there are some names that just don't trade much. mosaic, some of those names, did see activity in those names as well. >> let's look at u.s. steel because the earns are out here, a loss of 35 cents a share. smaller loss than expected. >> i think and i'm looking at this now but i think the street was looking for a loss of about 80 cents. this is obviously a loss but significantly better. we had a street

with loeb getting out you want to wait. >> would you play the bounce lower in net anticipation of the alibaba ipo? >> i think it's a great opportunity. i like any time they sell off on yahoo!. any time there's a pull back like we're seeing it's a great opportunity. >> mcdonald's missed on earnings. fell two and a half percent today. >> u.s. comps lousy. that is as bad as i've seen in along time. we said get out. you've seen this before. you've had a series of lower highs now since may in the stock. i love the name. i don't love the stock right now. trade down in the low 90s and pick it up there. >> do you love the stock? >> long time it's going to be fine. the big issue right now is our country is underemployed. the average consumer is cash strapped and this is affecting shares. >> gas prices aren't going to help either. >> right. >> finally from the golden a arches to home builders, it fell 1.2% in june. >> the existing home sales, the big numbers are going to be coming up wednesday with the new home sales. i think the name might get a boost from this. yes, 30 year rate is higher but

dan loeb, i think he's trying to get something done. i don't think the japanese will do it. i want to sell sony. i think the odds don't favor it. sony's not expensive, but i don't think they'll get the big breakup. a tweet from @redsquare27. i'm at starbucks, very tired. what's the cramer? it's a triple vente cappuccino with skim wet, meaning it's water, more liquid. you don't just fill it with the cream, the foam right up at the top. now for a tweet from coach denim. when is the next book due out? holy cow. hey, coach, i am working my butt off to get that thing done. that's all i can tell you. next we have a tweet from andrew, who asked the following. like six? the company is doing great. i would like a little better weather. our next tweet is from @noforcedanex. at costco and the place is packed. feeling very happy. stephanie link, co-portfolio manager with me. i was saying we should take some at 111 for the trust because i think costco is going much higher, and the retailers are doing very well. our next tweet, hey, what do you think about broadcom, brcm? i could not beli

rts board is expected to issue a formal rejection soon to dan loeb's third point, initiating a position in sobey earlier in the year and has called for a detachment of its entertainment business and said in a recent letter that the division is poorly managed, but, again, reports now to the board of sony will issue a formal rejection to third point. tyler, back to you. >> thank you very much. the smartest college grads in america are giving up six-figure salaries for a new and unique cause. the story of how they are making a difference and how we might one day be working for them is just ahead on "power lunch." >>> coming up power pitch. startups give us their 60-second pitch. >> mainly an advertising business. >> and we give you insight into the fast-paced world of venture capital. >> how fast are the stories growing? >> do these founders have what it takes? >> are you in or out on storify? stay tuned to find out. [ male announcer ] let's say you pay your guy around 2% to manage your money. that's not much, you think. except it's 2% every year. go to e-trade and find out how much our ad

billionaire hedge fund investor dan loeb is selling his stake and is resigning from its board of directors. sue? >> time to focus on the metals market. prices getting set to close and sharon epperson is track the action for us at the nymex. >> reporter: risen pretty strongly in this session, up more than $40 and right near 1,338 an ounce, a pretty big move in the gold market. a lot has to do with, as bob mentioned, the weaker dollar and seeing some institutional buying and physical demand coming back in asia and not that much volume so this is on lighter volume if this run-up has occurred. a lot of short covering in this marketplace and can you see that from the latest cftc commitment of trader report showing the number of net longs in this market and in terms of what we're seeing here just in the last two weeks the rally really underscores the importance of short covering in the run-up that we've seen. sue, back to you. >> sharon, before we let you go, the "new york times" reporting over the weekend that goldman sachs is running a scheme to artificially inflate aluminum prices by basicall

will now buy 40 million of its shares owned by dan loeb's 3.40 million bought at 13.50, told at 29.11. total profit $624 million. a masterful trade. that's our own krim kramer put it. we're watching gold today. the metal shining, settling above the 50-day moving average for the first time since november 2012. miners are all responding, all well in the green. on the other hand, homebuilders not working. they fall unexpectedly by 1.2% month over month. analysts say it is certainly not a sign that the housing recovery is in trouble, but sales activity could come under pressure in the months ahead. they say dhi, lennar, pulte all lower. we're also keeping a close eye on microsoft. remember last friday, the stock got killed the day after the company posted disappointing results. the stock dropped 12%. today, though, moving higher. and we'll end on mcdonald's, the golden arches disappoint, saying full-year results will be challenged. some analysts i spoke to this morning were especially disappointed with the u.s., thought we would see traction here on product innovations. now analysts sayin

dan loeb came out with a major investment with cf industries. they have the opportunity to address investors. i think today is going to be a big day for cf industries and generally the fertilizer names. >> vince lowery from revenue shares founder and president. 30 seconds on the clock. what do you want to watch. >> the equity market is going to be looking for top line revenue growth going forward. earnings have been maximized by most companies. revenue growth has dropped down. that's not enough for the impact to go forward. there is real value in the energy sector based on our valuations as fold closely by the consumer staple sector. we expect numbers to come in around 3% over the next year but unemployment is going to remain sluggish. >> we'll leave it there. darren you're up next. what are you prepared for for tomorrow? >> we're looking for gdp and chicago pmi. balancing out of equities and into the bonds. the numbers are to the tune of 14 to 15 billion dollars. we think that there is another leg higher probably to 1725. >> we'll leave it ther

we welcome gideon king, ceo of loeb and king. >> pleasure to be here. >> will be harder to make money in the second half in stocks? >> what we've seen is a structural shift notwithstanding the fed's sort of attempt to reel in, their words. i think without a doubt you'll see a tug-of-war between rates steadily moving higher and stocks, of course, reacting to the implications for that. >> so what advice would you give us? >> i think what you need to do is you need to follow money flows. i think you need to be event-driven as opposed to beta driven. i think you need to find industries that are consolidating and find stocks that may go up, you know, when they participate in that consolidation or actually the -- >> and what about the volatility? >> if you look at the broadcasting business, arbitrage, amongst other things and there are other players that are involved in that space. gray television, for example. the management team has publicly signaled that they like the seller's multiples in, 45 markets and top spots in 20 out of the 30 of their station areas, and i think that, you know, i

scott was talking about dan loeb's new position at cf industries. this not only moved cf industries. it moved the whole fertilizer group. look at cf, up 11%. but agrium, even intrepid, moving up that he has a position on cf. merger monday. a couple of big names here. omnicom and publicis, had the ceos down here for "squawk on the street." boy, a surprise. biggest advertising firm in the world, both moves. modest moves up in publicis. perrigo buying elan. and another bid, not a big surprise, but an interesting deal, saw lord & taylor's owner hudson's bay company announcing they'll take saks private, $16 a share, a very big real estate component coming into play for that one. hertz was in line, but it's down because there was disappointment that they didn't raise any guidance for the company. i can tell you as a frequent hertz user, they're certainly raising auto rental prices. they say, though, that will be flat in the next year. we'll see about that. if you can't get better earnings guidance, what else should you do? announce an accelerated share re

now on the same side as karl icahn and dan loeb. he had a billion-dollar bet to the downside that herbalife was a pyramid scheme and not a buyer of the nutritional scheme. it would be tanking and, in fact, it has not done so. it has come out with earnings. it is hitting new highs today. cheryl: thank you very much. we are getting more breaking news. the state of nevada has granted o.j. simpson progrowth. he was jailed on charges of kidnapping, robbery and burglary. this have to do several years ago this is a new trial for o.j. simpson. he will be granted parole. it will be very interesting to see what happens to o.j. simpson when he is, of course, led out of that jail. who will he be speaking to and where will he go? dennis: the first people he will be talking to will be reality television producers. let's talk newspaper and radio. in boston, the two are teaming up to create what they are hoping will be a new business model. joining us is the ceo. walter. thank you for being with us. what do you think of the boston experiment? >> it

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 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

. >> we have a big announcement with dan loeb with yahoo. >> there are some fish that are swimming downstream that make it difficult for stocks to go up. at $13 a share, he is a board of directors. he has made billions of dollars for shareholders. he is probably just moving on to a mother, renee we can make or changes. congratulations. >> even though they have 20 million shares with a yahoo. has this affected some of the investors? >> when you sell 40 million shares, on wall street this is a bargain. i don't think it fundamentally changes the story. >> gas prices jump up 12%2 cents. >> i am blaming it on each chip. every time there's something on line-session hurricane americans are spending more we are spending more. oil prices seem to be high for a weak economy. >> we have the highest in gas tax and the nation. >> let's talk about mcdonald's. they had a disappointing earnings. >> the stocks have been great, they are not having a good time in europe. there your sales have one down. the stock to an all-time high. it is not that bad for them but they are having to advertise more and they are f

. >> dan loeb is listening to closely and hearing things like that. i thought it was really kind of a pitch to try and convince investors. i thought it was interesting that he wrote this in english on an american website because he wants to convince investors that they want to come back to the japanese stock market. things went very well when he first came into office. the japanese stock market was up something like 75%. you've seen the collapse recently. >> 4.1% growth. >> for the upper house. and so i think this was a pitch to investors to say come back. we're going to continue to make these moves. >> i don't know if we can count on an economy that gets us to the point where the fed can unequivocally say we're pulling back. >> and the question you raise is fascinating. what if we don't? what if the reason we don't get there is because of fiscal side or policy side? the insurance costs. >> what rates are going to rise. and we do have some fiscal headwinds here. >> health insurance rates. >> health insurance rates are going to rise. you know, europe s

she deserves the rewards for that as the dan loeb on the board and others having the wisdom to bring her in. it is very performance based. >> i totally agree that turn around ceos that actually take actions and raise performance deserve it. there are an awful lot of people on that list who are not doing turn arounds, who have had trouble keeping the company share price let alone performance up. >> that's why i agree with you. let's go after the bad examples. >> it isn't only she is being rewarded for performance, she came in at a high level because to hire a new ceo, exception packages go up, and with ceo turnover higher than ever before, in history, that only bids up the prices. i am not so concerned about relative performance, but it is absolute pay. >> it is the exceptions. last week the headlines were about mckesson's ceo getting $150 million pension and on top of $150 million of comp last year and 50 million every year and it is a company an annuity business feeding off the government. you're right. the exceptions are where we have to see the policing and the boards have been wa

this is when the quarterly letter that dan loebs puts out to the investors indicated a new position there, and talked about the fact that the company could significantly increase the dividend. i know others who believed it was undervalued and we will see if there is a re-evaluation across the board for those companies that are not necessarily right down the middle of the potash and if you are in the larger fertilizer area. >> and potash had cut the outlook a few days ago so a sort of negative atmosphere, but this is a period on it. that blood letting is fascinating, and today, there is a article about the take of sony and whether it marks a change in tone, and it is harsh. >> i did tweet something that he is upping the rhetoric there and calling something after earth, and white house down, and the the ishtar and one of the tweets said call it fishtar. >> in the meantime, how much are the home prices falling or rising in your neck of the woods? we will talk to robert shiller of the case-shiller index which had good numbers again, and we will hear what he has to say about those that were re