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tv   Fast Money Halftime Report  CNBC  January 29, 2014 12:00pm-1:01pm EST

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because you see the same trailer over and over. i know the whole movie by the end of the trailer. okay, don't need to go. >> i like previews. >> jane, thanks so much. jane wells with a good hollywood story today. by the way, dow has carved its losses almost in half. the low is down 174. currently down 86. >> watching yahoo! shares getting beaten up after another disappointing revenue growth story out of marissa mayer. there you see, still down across the board for the nasdaq, s&p. >> two years for yahoo!. scott wapner? >> carl, we're going to be talking about that. get the opinion of what one of our traders thinks you should do with that stock and an investor who thinks this is a good buying opportunity. you know, carl, i've had a lot of calls this morning from money managers saying that this is a buying opportunity across the board in the stock market. if you look back at history at the currency things, if you would have bought the u.s. market 6 to 12 months down the road in most iskas it was higher than where it was before these things started. >> only question -- >> currency thing. >> currency. see what the short term --
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>> it got pretty serious. >> i know. sar racks you're with us, too. talk to you in just a second. carl, have a good rest of the day. welcome to the "halftime" show. following the biggest stories. boo-hoo for yahoo!. earnings missed and stocks hammered, should you still bet on marissa's makeover? stealth rally. as money continues to pour into bonds, how long will it work? countdown to the super bowl. a man whos has won the big game before is here with who will hoist the lombardi trophy on sunday. let's meet today's starting lineup. steven weiss is here with whether we can meet the i'm americaing storm. and pete najarian, jon najarian, steve liesman on bernanke's last meeting and the chances of tapering the tamper. michelle caruso-cabrera on the ground in turkey. we do begin with stocks under pressure today as turkey and other overseas markets continues
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to make investors jittery. all this as bernanke's final fed decision comes this afternoon and earnings pour in here at home. we begin with our own michelle caru caruso-cabrera in turkey. this doesn't seem to be playing out the way they expected. >> no, certainly not. they were certainly some hope that the lira would finish the day higher and it initially rallied on the news last night, late last night, and then it's given back most of those gains. that being said, everyone here is as attuened to ben bernanke today as they were as the turkish central bank last night. they think today's announcement is just as important as that turkey did with interest rates because they feel they're very much beholdened not only with what's happening in turkey but also to the fed's tapering. >> steve, is there going to be a tapering of the taper? >> i believe not. taper? and i was ready to answer. >> how worried do you think the fed is? this is a serious situation. >> as a journalist you wake up
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in the morning, is what i believe yesterday still true today? i believe that when i twoenlt bed last night i thought about the taper and i said, you know what, they're going to taper. i woerk ke up this morning and thought, could they not taper? i thought the damage to the fed's credible, the volatility -- >> really? credibility question? that one time, steve, let's not forget that, you know, what it, not five, six months ago, everybody thought the fed was going to taper and they didn't. i didn't hear anybody talking a week or two later and the cred. >> because they could argue that the facts on the ground have changed enough to just fay the action or the lack of action and then the action that happened in december. i just don't think that when you add up the gdp of all these countries that are having kurps si volatility right now, it amounts to a bogardian hill of beans and i don't think the fed can say the median term forecast has changed or risk to these
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countries. >> steve weiss, the markets are trying to work their way back towards something positive today. can we weather this emerging storm out of europe? >> without a doubt. the storm we saw in europe, in '08, '09, into '10 and '11 as well, was a much more violent storm than this. with the economies improving, the developed economies improving globally with the exception of china which is a whole different issue and may have further repercussions, without a doubt we can weather it. terms of the fed, i'm not sure they go today. i think there's a more measured approach where they don't go today and not because weather is slowing down the economy, not because of em risk. i just think that you take one step at a time after touch an aggressive policy of easing. >> sarah, that currency thing i mentioned earlier is certainly going to be watched closely over the days ahead. dollar is going to be watched closely after 2:00 p.m. this afternoon. what currencies matter most to you right now? >> the currencies outside of the
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really big problem areas right now, i would be watching. the problem areas, of course, are the ones that have concerns about policy, stability, turkey is on the top of that list. argentina is on that list and ukraine is on the list. the question is it's starting to hit the stronger emerging markets currencies. south korea juan has been one of the darlings. that countries that bucked the trend nicely and seems to be holding up. s that that's a good sign. when i'm americaing markets are not treated as one thing when you can distinguish. they are not all created equal and they all have different issues. policy credibility is a big theme and you saw that in india with the surprise interest rate hike by the indian central bank. a lot of credit is being given to mr. rajan who leads the central bank there in india. if you start to see these things distinguish then it's not as worrisome. if they start to trade as one group, then be worried. watch india, watch korea. i would put poland and mexico in
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that group as well. >> let's talk to gemma in europe. >> the way i would be looking at countries is the same way i've been looking at stocks and that's focusing on management and balance sheets. so you're looking for countries that have political instability. those are the ones to be beware of. for example, ukraine is in the headlines at the moment and in terms of balance sheets, countries struggling to manage their debts we saw that in europe and now starting to see that in emerging markets and that's why the likes of argentina and turkey are in trouble. those are the countries we would be aware of. the countries are being swept up in this souring of sentiment and instead we would be quite positive. there are going to be attractive entry points to the likes of china which are not struggling with if sathe same issues and countries in the headlines are struggling with. i would be looking for entry points there and indeveloped markets. multinational firms. if you look at the percentage of sales that emerging markets make
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up it's limited. economically and from a corporate profit standpoint the effect is limited. in the domestic standpoint you could get attractive entry points to the stocks that so far we've been unable to buy into because they've been richly priced. >> let's talking about tractive entry points here at home, pete. apple breaking 500 today for the first time in several months. is that an attractive entry point in those stocks? >> i don't know. as a guy who loves apple, it seems like the sellers right now have been winning and they were winning into the earnings and certainly have won since the earnings and they were very disappointed with what they were delivered by tim cook. i do think there are opportunities out there, scott. we talk about that every day. we talked about a few days ago where google was trading down and lure ched back to the upside. there are opportunities that exist every single day. today for me, for example, it was jpmorgan. after a couple of days of being beat up to the downside, triggered for me to jump back in
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and put in opgs in jpmorgan. limited risk. looking for opportunities all the time like gemma talked about. management and fundamentals. look for opportunities and there are some great opportunities out there. >> thanks, gemma e sarah, michelle over in turkey. steve, thanks to you as well. one of the markets most surpr e surprising moves thus far this year, bonds. where yields are down sharply, will that continue? black rock's jim keenan is live with us now from new york city. jim, welcome back. it's good to have you on the show. >> thanks. >> surprising trade for sure. that's an understatement. wouldn't you say? thus far, the way things have played out in 2014? >> if you look at the markets people started to position ahead for 2014? december. big risk on with buying equities and selling u.s. treasuries. obviously the way the events have played out in january, you've seen a bit of reversal for that. there's been a big bid for longer duration or fixed income
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products and equities have sold off. >> what's the fed going to do today, jim? how should we be thinking about what the subsequent moves in treasuries could be after the fed meets today? >> yeah, i don't think the fed is going to shift. you know, they're in a transition for moving away from its quantitative easing policy and more towards strength thening forward guidance. we continue to see them on the path of tapering down and to exit that policy. it doesn't mean they're not accommodative, it just means they're shifting the policy. there are a couple of major things, right? the fed is in transition from a qe driven policy to more of this for regard guidance and zero interest rate. that in loois some uncertainty to investors. then you add in the fact that people's bank of china is trying to slow down the credit risk there and china's economy is slowing. and, you know, so those two things right there are, you know, the he quiddity provider for the emerging market world in the sense of the fed balance
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sheet as well as the demand driver with regards to the chinese economy. and now here lies some uncertainty with the marked world. one of the things that, you know, investors around the world have gotten comfortable with is over the last several years is the fed policy, the ecb policy, the bboc, but as you start to create that volatility in, you know, em currencies and em economies, you know, there are new central banks that are forced to respond to that. and that's creating uncertainty in the market. >> yep. jim, it's great to have your insights today. interesting times for certain. we'll see how it all plays out. >> thanks. >> we'll talk to you again soon. there's one thing, first of all, i've been surprised by the rates falling as they have and remain short u.s. bonds. but what's interesting is that you've still got europe flush with liquidity and they've not done everything they're going to do. you don't have to overhang of elections with merkel as my friend charlie white points out and you can be very aggressive if you were her in push for
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further accommodations. up next, there are some major stock moves happening today and we're breaking down all of the trades and what will it take to win the big game on sunday? we're asking a former nfl coach who has done just that, brian billik and his super bowl ring will join news a tough day for shares of yahoo! the stock is the s&p's worst performer right now. also its lowest level in a couldn't of years. we do, though, have two people here who are not scared at all by that drop. that and much more just ahead. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and 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 the future belongs to those who challenge the present. cozy or cool?
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let's do our trader blitsz now. six trades on six stocks making news today. first up is wellpoint, matchingest mates, increasing dividend. wes? >> since you had the new management come in a year and a half or so ago, the stock is on a tear. still the place to be with obamacare in particular. >> pete, valero. a boost from gas station retailer. >> the fact their highest margin area is the ethanol egg segment. they're killing it. they slaughtered what the estimates were. trades in the single digits. it goes higher. >> electronic video game maker. raising estimates for the year. >> rumors that amazon is going to create a gaming console, too. that is not a competitor to ea because that's not what they do. they make the games. interesting move, none the less, and keeping focus on the space. very hot space as we heard last
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week from microsoft with their xbox 1. >> pete, vmware beating by a penny. >> they did. monitor acquisition that weighs on them in the next quarter. air watch is a huge acquisition them into the mobile. i love this space right now. cloud space is getting beat up except wmw because they're killing it. >> the read on jetblue, profits jumping on high er fare s can i talk american airlines instead? >> that, too. >> jetblue. what they did talk about was whether it had done to the january and partially december. that's going to be a repeated story by the retailers and other airlines. i think you've got to get through it and ignore it. i'm more worried about the impact on the economy. >> tupperware, the company forecasting current putter sales down 1% to 3%. doc? >> right. you look at the turkish lira. i mention it because these guys have massive exposure to emerging markets like turkey and
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china. the fact that these currencies are going upside-down is a bad thing for tupperware which was already down 10% coming into today for the year. drops another 5%. >> coming up on the "half," countdown to the biggest game of the year is on. how are the teams prepare for only four days to kickoff? nobody better to ask than former baltimore ravens coach brian billik. close, it's the sect hottest ticket in new york this week. the nhl returning to yankee stadium tonight. that's right. another outdoor ice hockey game. it will be about 15 degrees. that's all. we're going tv the ceoo of the nhl. , john collins, live from the house that ruth built. we asked ,
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guest knows all about the big game. brian billick won super bowl xxxxv as coach of the ravens. good defense usually beats good offense in these games. is that what's going to happen this time? >> this is a hard one to peg because for the first time maybe ever we have truly the best defense versus the best offense in the game. you're talking about a super bowl winning quarterback by way of peyton manning. a hall of fame quarterback. i think that raises the price of poker just a little bit. that seattle defense with their ability to put a four-man rush, what they can do in the secondary, they're as advertised. >> what's going to happen then on sunday, who is going to win this game? >> i get asked that. and check with me in an hour and -- i'm a little like the market. i'll tell you one -- that's how close it really is. obviously peyton manning, dynamic offense. this seattle defense, something special about them. the size of their secondary versus the size of the receiving corp. of the denver broncos, unique. i'll give you the score, 24-17,
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i'll let you pick the team. >> that's lower scoring than some are expecting. in terms of stocks, whose stock is a better buy right now, peyton manning or russell wilson? >> you're never going to lose picking on a stock like peyton manni manning. just so consistent. russell wilson is dynamic young quarterback. he suits what seat is doing right now. the question becomes, if peyton manning can deliver. and now it becomes a ten-point, 14-point, 17-point lead. if it turns into a track meet can russell wilson throw the seattle seahawks on his back and do something he hasn't done all year long and that's to go out and throw the ball 40, 45 times and get the wind via the air as opposed to running the ball with m marshon lynch. >> i remember you in the old minnesota days and all the great books you've written. peyton manning, if it is the temperatures declines and we're underneath 20 degrees that could be a major problem probably just based upon his age and if seattle can run the football. on a football note, would you
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put the super bowl in the future in cold weather cities that are not dome stadium? does that make sense? >> i think roger goodell has a problem if it goes off as it appears it might. it looks like a decent day. chicago, new england, baltimore, philadelphia, are going to be lining up outside the offices on park avenue of the nfl saying, hey, what about us? this turned out pretty well. let's go back to a couple of years ago in dallas with that ice storm. so i think we kind of dodged bullet here. you can tempt providence a little bit by going to the cold weather sites. i don't think it's going to affect the game. wind would be the only thing if i'm peyton man that might really affect the outcome. it's been a great boon to have it in new york. i imagine we will see another one if indeed this goes off the way it appears it might. >> coach, you're working with seat geek and on that note this looks to be the cheapest average price you can get a super bowl ticket for in some time. what's the story with that? is it all about the cold weather? this still is the big a until. >> i think to a degree. if you go to, the
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thing i like about the site like any of them, you can go and you can see where the seat is, you can see the view, seatgeek brings all of the websites that do this. kind of like a kayak in the travel industry. the thing i like at it, when you pick a seat, you can see what the value is and how it compares within the market. why is it that price and it varies. it looked like this was going to be record lows since 2002 but since the weather appears to be better, i think you're going to see the price go up and in a place like you can see how that varies from today to tomorrow to the next day, kind of like the stocks. you can kind of pick it as it goes up and down with the proper information at >> you seem like a good brand ambassador. in fact, that's what you are. i think you mentioned like four times and i just mentioned it again. >> only four? i can say it one more time. >> i just helped you out. you have the super bowl ring on, too. >> yes. worth having. gaudy but they ought to be. >> that's the point. >> coach, talk to you soon. thanks.
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>> sounds good. from the frozen tundra to the ice to the showdown between the neorew york rangers, island. john collins, chief operating officer for the nhl. live from the bronx. you guys have a good thing going there, too. is this taking a page at all from the nfl where you used to work, big environment, big game, build up lots of hype and watch it roll? >> well, the nfl is a great model but for us i think it's all about bringing the game to the fans. fans love this. after tonight's game we'll have 260,000 people who would have gotten together for the outdoor games this year. and another 60,000 fans wait for us when we get to chicago. >> you guys are sold out as well tonight, yeah? >> yeah, we sold out every one of these games and the game in chicago is sold out as well. >> is this going to be the norm? you guys just going to do this now, a few games a year, not just a winter classic on new year's day? >> i think it's been so well received. you know, the imagery coming out of big house on january 1st with
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105,000 people and sort of that snow globe experience, the fans love it. the players embrace it. everybody treats it sort of an opportunity to get together with friends and family around hockey. and really for us who are up against some of the great iconic brands and stadiums around the country. >> any doubt to you whatsoever given the pictures that we're looking at right now and looking at the big house from that big game, and the success that the league has had on television since the work stoppage of the last couple of years, are we back -- is hockey fully back? >> yeah. i think we're closing in on a $4 billion industry. commissioner changed the business model six years ago. so, you know, at that time we were at $2 billion business with 5% of our revenue coming from national revenues. we look forward, we will be $4 billion industry sometime next year and probably 20% or 22% of that revenue is coming from national events which in a salary cap snystem, national
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revenues which are shared equally across the clubs are an important revenue source. >> john, good luck tonight. great to have you on. >> thanks very much. >> all right, john collins. better have your nike understuff on. your underarmour on. >> columbia sportswear, going to have a lot of that. not going to have the logos on that, folks, but they're going to have a lot of warm weather gear because it is cold out here. not as cold as in chicago but it is cold. >> analysts are tacking about underarmour the exposure they've got in fleece. it's going to be something that could impact in a good way, a chully. we talked about the weather all the time in all the negatives. this could be a huge impact on the positive side for underarmour. they're stealing the market share away from lululemon. i think the stock is going higher after the earnings. >> yet. correct me if i'm wrong, i thought yesterday you said takes profits, trim underarmour. >> i'm still long it. i thought you had to take some
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profits. stock has gone from 84 now to 87. you've got to take some of it off the table. that's discipline. that's doing the right thing. but i still think there's upside. >> steadiest performers in the retail space has been the food lockers and those who sale sneakers, not dick's. >> the nbc family is proud to let you know that you can watch the rangers take on the islanders tonight, yankees stadium. coverage begins on the nbc sportsnet work. that coming up at 6:30 p.m. we will see you there. coming up on the "half," snow and ice causing chaos on the roads from the carolinas to atlanta. we're going to head to the futures pitts to tell you what it all means for natural gas which has been surging, plus yahoo! has not. recording the worsz day in more than two years today. should you be a buyer on that dip? iron fire capitals eric jackson was loading up on shares the last time he was here. what's he going now? we'll ask him when we come back.
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welcome back. the winter storm is pounding the southeastern part of the country. georgia's governor has declared
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a state of emergency with the capital city of atlanta among the worst hit areas. some drivers have been stranded for more than 24 hours after severe conditions caused major gridlock on the highways. hundreds of local students were forced to spend last night on gym floors, unable to get home because of the weather. just finding out a few moments ago the nba has postponed tonight's game between the hawks and pistons because of those hazardous conditions. the cold weather is keeping natural gas hot as fuel rises 3% today. let's go to jackie deangeles for more. this has been a steady gain fortunate gas, jackie. >> that's right. thanks so much, scott. natgas tumbling on monday but it's now trading back above the critical $5 level. jeff, is there still more upside to this booming commodity at this point, do you think? >> there is, jackie. there is historic demand here. i think folks need to realize 50% of all american homes are utilizing natural gas to heat their homes. right now they're callous here
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in chicago. double digit day but it's not chicago. it's south. 50 million people in the south are experiencing this cold like the judge was just talking about. right now the demand is definitely still there. we see it going mey higher. >> richard, what does history tell us how high natgas could go? >> look at the five-year chart. 580 is the line in the sand at the top. it looks like an enize sickle o the chart. i think that's the potential upside we could go. if the weather pattern continues this way, we're going to higher prices. >> all right. for more on natgas and everything else that's moving check out a bummer of a day for yahoo!. shares are falling after earnings came in below expectations. just a week ago our next guest told us he was buying that stock. what does ironfire's eric jackson thinking now. eric, welcome back. stocks hit a two-year low. must mean you're buying more today.
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>> i like yahoo!. i will be buying more. i think that this is basically a reaction to the alibaba numbers that were a part of the presentation last night and people feel that the growth there is slowing and, therefore, alibaba may not be worth as much as they thought it would be. i think what's interesting though is that there have been several reports out of china over the last few days that pointed outsources within alibaba saying he's basically given his senior managers the directive over there as of several months ago to basically slow down the profits because they want to ipo at a lower valuation if possible when they do ipo this year because that means they will be able to buy their stake back from yahoo! at a lower price. >> hard to not think though that today, eric, when you look at what's going on there, the bloom is off the rose, isn't it? >> well, yahoo! core has always been the ugliest part of the
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yahoo! story. and that's still the case. but there is still upside ahead for yahoo!. if the core grows marginally, if they do engineering on the stock buy back from they're going to get from the different alibaba sales and out of their stake out of yahoo! japan. >> i thought jim cramer put it best earlier today on "squawk on the street," where i believe he said facebook and google are the coke and pepsi and yahoo! is the dr pepper. is that fair to say? yes, it's all right. it's important obviously. it's meaningful. but marginal compared to the other two. >> i think that that's the opportunity though. especially in this market, scott, where everybody has sort of an itchey finger to get out of stocks, especially the momentum names. i think this is a value play. and, sure, it's ugly but sometimes some of the best turn around stories, they look pretty
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ugly when you get into it. and it does have its more defined sense of downtime compared to some of the high fliers in tech as well. i continue to like it. i don't mind if i'm the only one that, you know, is still yelling from the rooftops this is a great story here. to me that signals that there's more outside, not more downside. >> eric, quick question for you. i know you talked about this in the past a little bit but can you elaborate about yahoo! and any potential that you see, any kind of a business model that could go with aol? >> well, i think after the news last night and what's gone on in the core, the combination with aol makes more sense today than it did yesterday. you know, i think these two are on a collision course. i think aol has some great technology. they've got some great assets and brands that can be further utilized on the yahoo! platform.
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they're both going in the same direction of personalization and from a technology perspective. and aol is growing. something that yahoo! is struggling to do. so i think it's going to happen. >> eric, thanks for calling in. the street certainly voting today. the stock is lower as i said. it's a two-year low for shares of yahoo!. hope you will come back and talk about it in the future. >> thanks. >> eric jackson. resident stock swammy pete najarian. maybe the options activity were around people hope that maybe yahoo! would announce some kind of thing in their earnings. >> to eric's point and maybe at some point down the line when you talk about the unusual activity this was not january, this was not february. they're going out to april and july. so those folks over buying, they weren't buying calls that were just at the monies, either. going out of the money buying 50 and 55 strike, scott. when you really look at what the paper was looking at they felt like they needed time. the delivery today from yahoo! is not helping that cause. >> i've seen anything from
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honeymoon is over, bloom is off the rose. the business is hurting jackson himself saying that the core is the ugliest part of the story. at some point that catches up to you. >> display ads, i don't want to give jon a preview but market share down 15%, pricing is down. it's a tough scenario. i would not own it. >> pete, jon najarian is our bull. weiss, you are the bear. doc, make your case. >> the case is still that the 523 million shares they own in alibaba, that is huge, steve. we know that that's embedded in the price of this or the stock would be lower because revenues are down. however, 73% of e-commerce in china is done through alipay, it's an embedded part of alibaba. that's what you want here. even more thannal by ba ba itself. i think that's where you're going to get some of this unlock that happens once they bring this thing ipo. judge, i think additionally the mobile use which, of course,
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yahoo! has really been lacking on, not the use itself but on the ads that run there, they've always been a banner-driven site. now they need to switch to mobile. i think they're doing that. and the tumblr 400 million people ex-tumblr over yahoo! >> first, condolence on seeing your second euro fall this week. the first being marissa mayer today and justin bieber last week. it's very tough for you. >> it is. >> here's how i look at it. alibaba, their revenue growth year over year slowed by 20%. that's significant. pricing is coming down. i think we focus too much on what that means. that's already in the stock price. alipay, that's in the valuation already. what we've got is a ceo who is over a little bit. she said the head of sales who she hired doesn't fit. now she's taking over the sales role. watch out. she's never done it. you've got a declining company
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here with declining metrics and market share in growth. despite the 10 million people they added prices are down. they're not worth that much. >> where he's right, judge, maris isa mayer has to perform here. revenue has to pick up. they're going to do it -- >> how long have we been saying that, though, doc? >> you do have the embedded put here. the put is alibaba and yahoo! japan. >> what if the franchise goes down you're more than comp is it for that put and you don't know what alibaba -- >> i think alibaba and alipay and yahoo! japan are worth about $50. i think the reason you're not getting that priced in here is marissa has had -- first of all, we don't know how it's going to be tax effective. we don't know what the net will be to yahoo! as they get out of it. that was the other disappointment in the call. the street was looking for guidance. they didn't get it. >> tell us who you think won that debate.
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tweet us at cnbcfastmoney. use #bull or #bear. coming up next, which one is spotting unusual activity today? we'll unveil it and how you can capitalize on it. later, icahn, loeb, pelts. indicate ke we have a special report on how the company is fighting back when the "half" returns. tte or ?
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it's a day full of promise. and often, that day arrives by train. big day today? even bigger one tomorrow. when csx trains move forward, so does the rest of the economy. csx. how tomorrow moves. jon najarian is making a bearish bet. what are you buying? >> western union, judge. wu. very strong put activity in this name today. stepping up buying a lot of puts at the, shoot, march 16 strike. i went right there with them. i think a lot of folks, they boosted up this number already. it could be they think that payments could be down as far as
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money transfers, which is basically what western union is all about. >> stocks obviously moving and they tend to do so when you mention them on the air. >> a week to two wooeks holding period on this one. obviously whapsz with the fed today is going to affect broad market. i think this is specific to what the outlook could be for western union. >> we want to look at the market here after coming well off the lows as we came on the air about 45 minutes ago. the market has once again started to turn lower. the dow is down 140. there's the nasdaq down now nearly 25 points. sheila is at the nasdaq with the very latest. sheila, what do you see? >> hey, scott, the nasdaq is accelerating the declines. we are down about 0 .6%. this is the fifth consecutive day in a row of losses for the nasdaq 100. this is notable. what you're seeing play out today is earnings. pulling down the index the most is yahoo! and apple. yahoo! having the worst day in
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seven years. also ahead of their earnings, look at facebook and google. those stocks are in the red. investors anticipating what those companies can say after a string of disappointing earnings. what is working here today interestingly enough is microsoft. on a volatile day like today, being boring, doesn't seem so bad anymore. one pleasant bright spot of green is the nasdaq biotech index. the overall biotech index up today. the index is still up 8% for the year. the biotech boom is still continuing even in these volatile markets. scott? >> sheila, thanks. guys, there are winners to be had out there today. >> and there are people stepping into yahoo! and facebook as far as taking shots, figure that maybe some of this, yahoo! is already corrected, what, 14%, 15% from the highs, 4172 or there abouts down to here. november it did find some base
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down there at 35. we'll see if that holds. >> this could all turn around. this could all turn around after the fed today. >> what about the earnings after the bell, too? don't we have important tech earnings after the bell today? >> qualcomm and a few others. >> facebook. >> take a longer term approach. great market last year. markets consolidate, markets come down. i think a long-term approach -- >> at some point if you're wanting to buy technology and hanging on what the nasdaq is doing. you've had apple come out and lay an egg. the stock is down. you've now had yahoo! come out and lay an egg, the stock is down. at of some point you have to start producing here or you're going to get a break, a crack. >> you've got to produce. scott, it's still so specific. talk about this time and time again this month of january. security names continue to be strong in this. obviously everybody gets more and more alarmed every day when we hear about more breaches into
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the security area. so when you look at the microsofts of the world, look at intel with the buy of macafee, i think that's where you're going to see some of the profits. >> speaking of earnings, coming up next, big ones are up tonight, qualcomm, las vegas sands, facebook. our traders are taking their position ahead of the big report. plus, they're not going to take it anymore with activism reaching new levels we're going to tell you the bold steps some companies are willing to take to defend themselves. [ bagpipes play ] make it happen with fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today.
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welcome back to the show. we mentioned several big earnings come out tonight after the after the bell. let's take our positions ahead of those. qualcomm. >> fundamentally, i don't believe in buying stocks right in front of earnings. i have a small position in it. there's a lot of consternation about what apple reported, but the facts are that smartphones continue to grow, maybe apple's not getting all the growth. 51 million is not bad. >> okay. apple alone, not enough. apple, at & t, qualcomm? >> i mean, look, qualcomm doesn't really put together great quarters. it's hit or miss. it seems to alternate. it's a great company. if you own it, you will make money over the next year or two. you can't focus on one quarter. the bigger issue with china is coming out maybe taxing them $1 billion because they won't open
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their technology and licensing pricing. >> it could be samsung, too, judge. we know they slipped on some of what they were trying to accomplish even against the high end iphones. if they're cutting back and not getting the same sort of traction, it's bad for all the tech world. >> you throw up a chart of one year of qualcomm. at some point, how long do investors like you and some of the other big investors who are out there, this is a hedge fund favorite, at what point do they jump off the train here? >> it's a slow grower. it trades almost like a utility despite the immense capital they returned to shareholders. my position is just to be there, because i like the company. it's a very small position. i don't expect to generate much outflow earning this name at all. >> las vegas sands. doc, how do you play this? >> this has been one of the worst performers in the space. take a look at wynn and mgm which would be much more favored by me than addison's company. this one is under pressure going into earnings tonight, judge. it's down about 6% year-to-date,
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i believe. it's seen twice as many calls trading as puts. if you're somebody who wants to find that one little bit of bright spot, that's it. but this is the one i would stay away from of those three big ones. i would rather be in mgm or in wynn. >> i would add that the macao numbers have been phenomenal, now you're coming up on the chinese new year. regardless, the numbers over there have been astounding. >> back to qualcomm real quick, one of our viewers e-mailing me saying don't forget about nokia. they were bad, too. nokia, samsung, apple, bad. >> you have to distinguish between pressure and margins from those companies and also what units sold are. revenues -- units were actually pretty good. then you got to take a look at ipads. take a look at all the mobile devices. qualcomm still is one player there. >> let's trade facebook. >> it's about how can the guys make money in the ad space and adjust themselves in terms of
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the mobile space. they have done a phenomenal job. can they continue to do so? i tend to lean now towards the fact that they probably are. then you add in the instagram and videos, all into this whole program. i think it's been basically unchanged, if you look at it over the last month. it's been volatile but unchanged. now we are looking for the upside. >> you probably noticed it certainly feels like we entered a new era of corporate cage rattling with names like carl icahn targeting some of the world's biggest companies. but the companies are starting to fight back. kate kelly is here with that story. the age of activism is alive and well in early 2014. >> absolutely. well under way. actually, these activist funds are performing very well. it seems right now at least like companies are fighting these activists with three bs, buy-backs, boosting earnings and boosting dividends. that's the pattern emerging this season with names like dow chemical, sotheby's and juniper, all under pressure from activists calling them to put their cash to work and enhance shareholder returns. take dow chemical. this recently fell under attack
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by dan lobe, known for his harsh criticisms of perceived mismanagement. this morning they announced better than expected profits, raised its dividend and tripled share buy-back efforts. its ceo declared that as clear evidence of his ability to manage. lobe said in a letter a week ago that dow shares had woefully underperformed. sotheby's said today it would pay a special dividend so there's another example. tech company juniper networks beat earnings just about five days ago, also not long after eliot management went active on it. as the "journal" points out, other companies are strengthening their poison pills, they are changing and some ways making it harder to get through the board nomination process in order to ward off activists. with the juniper example, for example, you can't just whip up a good quarter just to fight back an activist. that is obviously something that happens organically.
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if you look at the dividends and buy-backs, these are things we may see more of as loud-mouthed hedge fund investors start to demand better returns. >> i thought you actually had a climate developing where in this new age of activism the companies themselves were trying to have a more, you know, better relationship with the activists rather than a confrontational thing. >> i think that is happening as well around the margins. i certainly hear hedge funds talking a little more about they call it constructivism, they want a more collaborative approach with management. i do think that's going on. i think maybe at times when you see the decisions, there may be more collaboration behind the scenes than what meets the eye. but you've got major companies that will face these issues this year. i just took a look at the top companies by market cap in the u.s. with activist involvement. apple, microsoft, p & g, pepsi, ebay. it's a long list of large companies and if you look at the activists involved, they are names you know.
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icahn, pershing square. i think it will continue. we will take a quick break, go around the horn and do final trades. we'll find out who you think won our debate and get you caught up on exactly what the markets are doing. life's an adventure when you're with her.
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>> we talked earlier about looking for opportunities. i think jpmorgan was one of those, off 6% since january 15th. today they come in and start buying these calls. i'm in those calls as well, judge. i think it's going higher. >> you guys have a great rest of the day. all of you do the same. we will see you tomorrow. "power lunch" begins right now. "halftime's" over. the second half of your trading day begins now. >> scott, thank you very much. welcome to "power lunch." a busy afternoon, as they have been all week, it seems. a wide range of ups and downs for stocks today. the dow right now down 133 points. the nasdaq down about 24. the s&p down about 11. emerging markets remain a focus for us today. turkey made a big move last night raising interest rates even more than people thought. but it is unclear how effective that move will be as well as others in countries such as south africa. another huge story, the mess down south.


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