tv Fast Money Halftime Report CNBC August 20, 2014 12:00pm-1:01pm EDT
century fox and to think we were talking about correction in these name as short months ago. jon, see you tomorrow. send it over scott wapner and team "halftime report." starting lineup, jon najarian, and mike murphy. stephen weiss, and josh brown, and we begin with a countdown to what could be the market's moment of truth. janet yellen's speech in jackson hole on friday. so will the fed chair be as dovish as investors hope, or is there a surprise lurking in the grand tetons? someone who probably knows. our own steve liesman who is there. steve, will she disappoint the markets or not? >> depends on what the markets want, scott. >> you know what they want, steve. >> you know better than i do. >> you know what they want. >> the story, markets expect
yellen to be neutral and the cnbc survey prepared for the jackson hole conference here, 63% are looking for yellen to be neutral relative to a prior stances which would be essentially dovish. 31% think she may actually be more dovish than she was before. how dovish does the market think the fed will be? we asked our respondents, 36 of them, scott, to look forward. where will interest rates be in '15, '16 and '17, and where will the fed stop? we plotted it out compared to other interest rate hikes. this will be the longest interest rate hike since at least 1983. three percentage points they'll rise are about normal, but in terms of how long it will take, it would be the longest one. not expected to begin until july 2015 and go to the fourth quarter of 2017. which means the next president of the united states will have been in office for a year when the fed stops hiking rates.
scott? >> steve, stick with us. steve weiss, you said yesterday one of your under the radar risks was potentially janet yellen is more hawkish than the markets are ready to accept? >> evident in what we've seen the market do over the last week and relative to historic levels, right about at the highs. nasdaq, of course, right there. >> look at this. 14-year high for the nasdaq. up six days in a row. >> yeah. clearly, no expectation she gets more hawkish. look, i think what's countering that, housing had good numbers, and if housing continues to do well, they should raise rates, and i'll be perceived positively. to be clear, i only think any increase or bring forward of the schedule to raise rates is a short-term blip, the market trades down, you get in. it will be going up for the right risone reasons. the economy is improving. i'm not afraid of it, but afraid how kplas it the stock market in front of her speech. >> we've had people on the show,
jeffrey gunlock included, saying their expectations are of a mostly de9:most ly benign event. the speeches, more important, the ones to follow that could have is a more dramatic market impact maybe from draghi and others and not janet yellen? >> i think the draghi speech is important. just a word on yellen. look, schae to defend her point of view. there's a lot of academic research out there suggesting there's less labor slack than the fed believes. i think her speech is going to try to defend that position and suggest the fed still has time to raise rates, and the talking about inflation. that's what i'm looking for. i think it's going to be an important speech, one worth watching staking out that position. if there's change in that, steve weiss will be right. if she backs off that situation or assessment of the idea of labor slack, big news. draghi is important because we wanted to pus flesh on the bones of are this idea of asset-backed security plan coming sometime in the fall we believe. >> i'm not saying that it is
going to be -- >> i understand. you're saying -- no, no. he's saying that if that does happen, your attention to this risk that's out there of people being too complacent is certainly worthy of being followed. josh brown, how do you approach this liesman survey tells us people are expecting a very dovish fed share. >> yeah. >> what are yo expectations? how do you trade ahead of that? >> i know major turning points for the markets centered around jackson hole in the last four years but i take the under in terms of are this having a huge impact or anyone saying anything while twildly unexpected. a question for steve liesman. recent derricks a lot of strategists on wall street mention the fact that various fed officials are throwing the term structural into their remarks more so than they used to. is there any chance of some kind of admission on the part of the fed that at a certain point it doesn't mat whir they raise
rates, because some team just will not become re-employed and that there is more of a structural bent to the current state of unemployment than maybe they thought three or four years ago? is that a hawkish risk if that kind of terminology starts to guess totted around? tossed around? >> you have a really good ear, josh. exactly what you want to listen for. i don't think yellen and the dudleys of this world are backing off that. you hear the world structural, be careful. part of the concern of the doves is that not that it's structural now, but it becomes structural. and there, of course, are those on the fed, the hawks especially who suggested that what it is right now is a structural problem, and what they're also saying when they say that, josh, i'm sure you hear this. they want the fiscal authority to deal with it. congress and the president to deal with that problem and make it not a federal reserve issue. >> that's not going to happen. >> many in the academic community -- well, that becomes another question, which is worth debating, which if washington is not doing anything about it, should the fed keep trying to do
something about it? >> doc, the s&p, showing this at the bottom of the screen now. the s&p 500 rallied average 1.3% after bernanke jackson hole speech. since '08. now, obviously, the tone and tenor of what he said there was extraordinarily dovish. >> yes. >> you can see that. that's the trend that's in place. >> yeah. and i believe ms. yellen, we're going to not see that event steve was talking about, not projecting it. saying could be the black swan sort of event to rile the markets poon think most expect she will talk about what's going on around the world, pressures around the world as far as rates to the down side, to keep economies from slipping further into recession. europe, judge, is probably this quarter going to have half of the european union in the middle of recession. >> put those reaction stats up quickly. yes, the trend is about a 1.3% average to jackson hole, but
look where that thing is trending. >> right. >> it's actually more and more a muted response each year for the last couple of years. that's what i think is probably the more rational way to look at what may happen this week. i don't think there's a huge resnons another direction. >> scott -- >> steve, yeah. >> scott, one other issue. it's not on the agenda. that's about labor. something i think talked about a lot in the hallways this issue of macroprudential tools versus interest rate policy. that means if low fed funds are creating bubbles, should the fed deal with it with interest rates or deal with it with regulation? in other words, getting the banks to shed assets, or perhaps raise capital or reserves against those assets? so the question that will be debated a lot is, the piece written by marty feldstein and robert rubin in the "journal" recently, basically saying the fed should raise rates now to ward off bubbles because it doesn't have the tools to deal with it separately from interest
rates. watch for that as well. >> all right, steve. we will see what transpired out there and hear it from you. steve liesman out in jackson hole. trader blitz now. four trades on four stocks making news. first up, hertz. 2014 results will be well below prior forecasts citing recalls, higher operating expenses. murph, not good. >> really not good. look at the price action here. last night stock traded around 27. where the stock opened, having a nice run-up from a pullback of 27, up $31 a share. hertz is a name you buy here. i actually bought some of the stock this morning under $28 a share. i like the setup. i like the synergies. management has to prove that they can actually turn this ship around, but if not, i think there's enough big people in there to force some sort of change on the board. i like hertz. >> watch the management on the wall of shame. maybe it's going to be a different management. that has to turn things around. >> could well be. the point now as the economy picks up, two games in town. hertz and avis, and just like the airlines a few years ago,
they'll be able to raise prices, right to the bottom line. >> barclays upgrading panera and duncan brands from overweight to equal citing long-term potential for both names. josh? >> yeah. i actually think this is a good call. obviously i'm biased. long duncan. lo dunkin'. one of the best unsung, untalked about potential growth story es. >> didn't have a good quarter. right? and jim this morning on "squawk on the street" made the case, dunkin' didn't have a good quarter. why bother? buy starbucks. why don't you go to the leader? >> a good quarter? we're talking about a stock if they play their cards right, theoretically over the next five years could have three times the amount of stores. i don't care about this quarter. i hope they have another bad quarter. i'll buy more with a three handle. the stock to buy, starbucks we know a fantastic operator. dunkin' gets its act together, a lot of potential upside. petsmart exploring a
possible sale following pressure from activist investor. >> yes, and apparently as david faber was talking about, there are p firms that were looking at this prior to jana's getting involved. the bad news today, the stock basically opened at the highs and slammed down $2 basically right after david faber was making these comments. so the street didn't really care or didn't really think that they could get much more valuation out of it than so far. i would be betting with janet, though. >> weiss, size it up. whatever the nushs say, bottom line, still trailing home depot. >> they are. >> where you have to make your investing decision on. >> exactly. i don't think the metrics in the lowe's were as low as home depot. bert managed. ate different than hertz and avis. monopoly, others on the prirry. both, but home depot i sfoect
lead. coming up, hewlett-packard up big. what happens after earnings this afternoon? a new twist on the old tech debate. then is golf really on the decline? heading out to the golf course live to ask adam scott about the business of golf and what's behind that killer swing of his. there it it is right there. back-to-school a crucial time. going to the mall of america with more than 500 stores, 40 million annual visitors. who better to grade the retailers than one of those folks on the front lines, the folks at the mall of america. it's all straight ahead on the "half time show." but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea
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welcome back to "half." taking shares of international rectifier. infin onbuying the semiconductormaker for $40 a share in cash. total of $3 billion. reports earlier today that infinion was about to close a deal on a u.s. semiconductor company, although international rectifier was not one of the first named in that report earlier today. scott? >> all right. bertha, thanks. disappointing retail earnings continue with target and lowe's cutting fast for the year. what are the retailers blaming? courtney reigh hagan has more ot we calm the blame game around
here. >> yes. figuring what the consumer wants when she wants it, how much to pay for it, makes retail a tough business. excuses all part of retailers explains results. cautious consumer spending has become a common excuse even for typical outperformer macy's. the ceo says many customers are still not feeling comfortable about spending and a more uncertainly economic environment. target's cfo said today the discounter low are the full year's earnings forecast because of, yes, a disappointing q 1 and q2 but the competitive environment and a cautious spending consumer. dick's sporting goods pointed to the cautious consumer as well. another excuse we're hearing. and jcpenney, remains cautious with guidance because of the highly competitive retail environment. es stay lauder had a strong quarter. still pointing out profit act will take a hit in part from promotion's activity. this time weather was a boost to
some. macy's said shepping activity normalized, and helped sales in q2. lowe's blames weather in part for lowered full year sales forecast but a boost in q2. kohl's said weather is a big factor. warmer weather and pent up deand in trig ired sales. courtney reagan buy the ratest. and next, the pulse on the consumer. business development at the mall of america, the largest retail and entertainment complex in the country. live today from minneapolis, maureen, welcome to the "half time show." >> thanks. >> how's traffic in the mall? >> actually, we're doing very well. traffic is just a hair up, or flat, and seams are up. >> how are you feeling overall about the consumer? more negative news than positive. i think that's fair to say. positive stories splashed in. but the kind of companies that we cover here in the earnings
season has not been all that great. >> well what we're seeing is a very thoughtful consumer, and -- but they are purchasing, and they're making great decisions when they do. so i think that's why we're seeing a little bit of an inch-up in sales. particularly the millennials. they're great brand connoisseurs, and this time of year, they might do their research online, but they're going to shop in the bricks and mortar establishment, which fares well for traditional malling. >> my colleague from the great state of minnesota has a question for you. jon najarian. >> great. >> first of all, do you guys have a percentage rent with the retailers that are in the stores? in other words, is it just straight rent or a percentage of sales rent that you guys collect as well? so basically you've got skin in their game? >> yes -- some have both, yes. >> okay. >> base and a percentage. >> maureen, what are people
shopping for? what themes dominate back to school as it really gets underway next week? >> electronics are very important. headphones, laptops and tax, cell phone. a strong category and also athletics. particularly shoes, of course. whether it's a dress shoe or an athletic shoe, kids always need shoes going back into school, but he also wear athletic gear at regular apparel. whether it's lululemon or nike, they're doing well. >> maureen, we've heard for so long how the internet could put the brick and mortar stores out of business. clearly, that hasn't happened. is there a possibility or is there room at internet shopping continues to expand for companies like amazon or for it to some way help with the bricks and the motors also say for amazon to have stores on the ground? could that actually help someone like yourself? >> yes. actually, what we're finding, those with an online presence do better in the bricks and mortar
area also. they play nicely off each other, and at this time of year, particularly with kids who need to try on things and feel the fabric, and buy that authentic brand, the bricks and mortar fares very well. they might do research online, but 89% will buy in a store. >> maureen, steve weiss. i don't expect you to talk about specific lessees, but just in terms of sectors of the market, which are coming to you and saying that we want to cut back on our square footage, and which are coming to you saying, we need more square footage? >> well, actually, the electronics are, of course, asking for more square footage. because that is a very great category right now. we haven't had too many, and i'm trying to think of any that have asked for smaller spaces at this point, but we're a little bit of a different animal. we truly are a destination, and i think we're luck any that we have all of these attractions and dining options, and people come to the mall to experience
everything. >> maureen, thanks. >> a little different than a traditional mall. >> yep. thanks for coming on. appreciate it very much. executive vice president of the mall of america. josh brown, your best retail pick here? >> i don't know. i want to talk about target. i think the problems are in the second or third inning and i see the stock got a tiny lift today. maybe it's an exhale or relief rally. i would fade this and sell it. failed at 62 twice this year. don't think it can get above again. talking earning $3 a share this year. you really want to pay a 20 multiple or that given the fact they're talking about being even more promotional and the promotions so far have not even driven more foot traffic, which is what the expectation was. i think this is a dangerous stock. i think it's going low around i would avoid it like the plague. >> speaking of a minnesota-based retailer? >> i completely disagree.
look at price target. it's true, the press release from today, but a new ceo came in for a lot of the negative news out there for people and the main reason i think target can rally is target canada. i don't know how that's going to play out, but i think that's been an absolute disaster and written down by a lot of people. i think that's a catalyst to get it back above that 62 level. >> it's not big enough. even if you're right and they forget about turning it around, they stabilize it. right now talking more losses in kand darr this year, not less. >> this year. >> say they're overestimating highway bad. it's not big enough. >> it is big enough, josh, in my opinion. that's why i own it, to get it above the 62 level you talk about and the area of resistance could serve as a floor as the stock breaks 0 out above that. >> i think it's big enough also from a perception standpoint and expertise of new management to turn it around. hold on, josh. if you're going to pay an infinite pe, because there is no earnings on a penny, then you'd be are r willing to pay this.
better served focusing on a containment store, continues to miss earnings and still is overvalued much more so than target. relative to one -- >> the guy came from pepsi. not run retail. >> he's running consumer brand. i'm not involved in target. i think it's interesting and looking at pulling the trigger. >> i'll buy it in al con buys it. >> it could be. >> interested in that. >> take a look what's going on. open interest exploded up to 36 million shares from about 24 million in the prior two or three quarters reporting. that's what's happening today with that. it opened on the lows and then just explodes. s 3$3 off the pre-lows already. >> we'll see. and the most coveted gig in the entertainment world. now may hesitate before agreeing to play the super bowl. we'll tell you why. it's today's worse trade. too crazy for loko?
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>> the question, are hewlett-packard investors worried? after the bell, reporting, another question, the question is, after a run-up more than 25% so far this year is there more room to run? debate it. logon to cnbc.com/vote. decide the winner in realtime. jon is the bull. murph the bear. 90 seconds on the clock. doc, make your case. >> absolutely more room to run, murph. nine times forward pe for this stock. best buy said target sales crashing. pc sales moving up dramatically. see that from the performance of intel. from microsoft. i believe you're going to see it tonight when they go over 91 cents on the bottom line number. top line number might be over $27 billion. i like this a lot. up 36% year over year. judge said, 26% year to date. in the right space now. >> agree with everything you say, but look at what -- >> no, you don't. >> i do. he's right on with just about
everything he's saying with what they've done and pc sale, something i think are really going to help a company like hewlett. however, priced into the stock, doc. up 26% year to date. you already -- we already heard from intel, already seen hewlett-packard reaction to the news. >> up like 34% year to date. >> 26 for hewlett, and-- >> 8% coming. >> the race is getting tighter. >> for hewlett-packard, disappoint, if you look, last four quarters, even when they beat on the wes per numbhisper did the stock react? a lot of nothing. traded lower, two our four positive quarters. the risk in hue sit to the down side. i like the company long term, but to buy it up here at 35, i wouldn't do it. >> okay. and the street doesn't really buy it either, judge. so to murph's point, only 13 buys. i think like 12 holds. so the street's like, kind of, ah, nah. on this particular one, but i think it beats and i think it goes higher. >> the people are not mad.
57% to 43%. side with the bull. steve weiss, the right verdict? >> i don't think so, because i think the risk is to the down side. saying that a lot today, sounds like. to me, i don't see them blowing out the quarter. if they miss, it goes down a lot lower than it would go up higher. so stay in the sidelines. i wouldn't take a position either way in front of the quarter. >> the bull case wins this one. final numbers. 57% to 43%. el pollo loco living up to its name follows wild trading. bertha is following the story. >> another down day for el pollo loco after 175% rally from its initial public offering price of $15. the mexican restaurant chain's stock, a favorite of short sellers according of the 6 million shares available to trade publicly, more than 900,000 shares were sold short. sitting a closing high 41.20 august 1 it stshgs the stock lost from 25%.
yesterday, when its quiet period ended, a number of firms took a bearish view of the stock based on high-flying valuation. the stock currently trading higher by 4%. boy, that chicken certainly flies around, scott. >> it does. bertha, thanks. guy, the right play? in a space of fast casual, extraordinarily popular? >> my play is -- >> no. i like it. >> i wouldn't buy it. if you want to trade it, trade it. you have to be very careful you're not buying the next potbelly here. because you're definitely not buying the next chipotle. i don't want to come across as being too negative, i think for a long-term hold on pollo loco, 1,000 other names i'd rather own. you want to trade it, trade it. use stops. you know what you're doing. own something long term, pollo lock oh is not the one. >> right after the ipo, josh got it. i missed it. wanted to get it. didn't chase it.
settling at 30. another assault up into the 40s? perhaps. you can wait a little. the night thing about where it is in the space, growth is there in front of it. >> josh? >> yeah. this was one that the day it became public said it's a pretty interesting story. it's a buy. now it's, gone from like 17 to 30. it's been much higher. i think the setup here going into earnings is probably not to be in it. i don't have a position currently. i would love to see them set conservative expectations going forward. maybe even disappoint some of the most ardent bulls. have the stock come in and then i would agree with mike. like, that's when you might think about it as a long-term hold. until then, we don't know how much their expansion plans will cost the company. only guesses from analysts. 900,000 shares short versus 6 million in the publicly traded flow. that's juicy but doesn't mean the stock definitely pops. i would rather see them come in with a sober quarter, have the
stock drop and then i'd be interested in a buy. >> all right. three things traders are watch aring now that may not be on your radar but should be. mike murphy, yours? >> jetblue, flying under radar. the stock's breaking out. look how these guy, reacting recently. got an upgrade this morning. pushing them to another new high. the deltas and americans were taking off and getting a lot of headlines, jetblue languished there because of exposure to the northeast and really harsh winter that we had here. if you look at jetblue, i still believe this first class program they have is going to help, and i think technically the stock has upside. i'm long it and think it goes higher. >> steve weiss a comment before you do your under the radar on the airlines. >> what you've created is a pricesing umbrella. you fly, everybody here flies a lot. prices are going up, and finding every way they can to essentially charge you more price, even allowing you, there's talk of allowing you to bid on seats that are open while
you're on the plane. that's a pricing umbrella. every airline is going to benefit, in my view, if they're well run, or at least decently run, and jetblue has their operations more in shape. i still like, own my american. i still think they go a lot higher. >> you're under the radar pick is hospitals. give a word on two or than? >> look, stocks are trading near highs and we don't talk about them much. i actually had one in my playbook to start the year out and in infap knit wisdom to give doc the ability to move higher than me in returns i took it out. but still think they work. i don't think they're expensive and a group that's under owned relative to the rest of health care and we're just in the beginning stages of the affordable care act. so hospitals will do well from here going forward. >> josh are you saying the market rally is your under the radar pick? >> well, yes. because we have guest after guest come on and talk about manias and u for yas and
speculative fevers. >> bubbles. >> sure. and yet we have a gallop poll out in the last week combined with -- gallup poll out, and asked americans of all types what they thought the stock market did last year in 2013. i don't know if most people are aware, one out of three americans told the survey stocks were either flat or down last year. only 7% of people accurately said the s&p was up 30%. show me the mania? when you talk about a bubble, it's not just about valuation. it's also about behavior. quite frankly, the behavior that would say this is a mania, it's just not apparent in these numbers. >> people answering their phone to gallup polls, i'm not surprised. >> do you answer the phone thor that? >> no, no. >> leave that there. a live picture from martha's vineyard. president obama is expected to make a statement within the next
15 minutes or so, and when he does step to that lectern there in edgerton, massachusetts, we will certainly take thru live to hear from president obama. coming up meantime, crude prices dropping despite geopolitical tension. how should you trade that. plus, the number two golfer in the world is getting ready to join us live when "half time" returns. scott, see you next on "half time report." from 2000 to 2011, on average 17 manufacturers a day shut down in america.
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the last two months and interestingly, gas prices are plummeting as well. the national average for a gallon of regular, $3.44. now that's down 13 cents in one month. jeff killberg, looking at this ax, we've hit a seven-month low, come down a lot. at this point seeing a little bounce here. is this technical right now? >> doesn't feel as technical as it should. right now saw the crude inventories. declined three times more than expected. that is bullish in its own face but we saw a buildup at cushing. the real under current here jackie, that's why we're seeing crude oil going lower, we've become desensitized, nearly calloused to geopolitical tension. at the end of the day, the 8.5 bears produced, more than a year ago, a lot of supply. >> brian sutland having said that, could we go lower because we have so much supply somewh e somewhere. >> yeah. it's even more than supply picture, more than just a geopolitical tension easing. all about the u.s. dollar. look at it over the last three
months. u.s. dollar strength. that's low coming out of europe into the united states. into u.s. treasuries into u.s. stocks putting pressures on commodities because they're all traileded in dollars. that in itself tells me crude is probably headed to the low 90s. october crude future is trading around just above $93. wouldn't be a buyer until $91, $92. hold off until the dlaur stabilizes. >> for more head to our website. futuresnow.cnbc.com. live show tomorrow and i wrote a piece from a conversation with boone pickens on cnbc.com. check that out as well. interesting things to say about crude and where he thinks it's going. >> jackie, we will. check out that article. once again, show you a live picture from martha's vineyard where we expect the president to make a statement within the next five minutes or so. we'll take you there live as soon as we see mr. obama. coming up, adam scott, world's number two golfer and
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welcome back. our next guest is the number two golfer in the world. he holds 27 professional titles including a green jacket from the 2013 masters. professional golfer adam scott joins us now live from the barclays tournament in program is, new jersey, where he, by the way, is the defending champion. adam, welcome. it's great to you have. let me also say we are waiting for the president to make a statement today. so there's the possibility that we'll have to jump away and we appreciate your patience on that. but thanks for being here today. >> no worry, at all. my pleasure. >> you're called by one firm today the most effective brand and product endorser among golfers today. i read somewhere where you're also called a marketer's dream. i imagine that's got to be gratifying in a world fillaled with rory mcilroy, phil mickelson and still, don't forget about tiger woods? >> yeah, of course. you know, i don't know how they do their ratings, but i'd like to use that on other things,
more on the golf course as well. >> let me ask you, is there a difference between endorsing a well-established brand and you have many in your stable of companies that you work with, whether it's mercedes, or titleist, and some others. then, of course, there's uniqlo, ap up and coming brand. is there a difference between a well-established and up and comer in the terms of the kind of work you need to do for awareness? >> yeah. absolutely. working with well-established brands are great, but i think also as i've gone on in my career, these opportunities to work with an up and coming brand or newer brand like a uniqlo is exciting to be a part of something and feel like you're a part of their success as much as they feel they can be a part of my success. i think that's an exciting opportunity for anyone. >> steve weiss, on our set today, has a question for you.
>> hey, adam. so we've been talking the last few days, as companies reported earnings, dick's sporting goods, that the sport is sort of declining in the u.s. now, do you see this globally? and do you think it's just a soft spot, because still from the economy, in the upswing again? >> yeah. it's interesting. it's very regional. i mean, it's growing in so many of the markets around the world. but certainly it's declined in the u.s., and that's concerning, and i know that everyone involved in the game is trying to find ways to turn that around. it might be, you know, closer related to the market than we all think, but it's not really what we want to see happening in the game. so we're all trying to do our bit to get everyone back out to the golf course and make golf as accessible to everyone as possible. >> adam, mike murphy here.
i was watching you. i'm a member at liberty watching you last year as you were leading on the 18th hole at the barclays. you're out to defend your title this year. as tiger was chipping on there, are you rooting for that ball to go in so it will go into overtime and beat him in extra rounds or saying, stop short there? did you put some kind of hex on that ball? >> i really wasn't rooting for it to go in. i must say. but -- i think you probably -- it's bad karma to completely root against it going in as well. you just have to kind of sit there and watch and keep your fingers crossed. it's one of those things where certainly any time you have to face him, it's going to about tough challenge and i'm certainly up for it, but it was nice to let a couple people slip by me at the end there, and i managed to get it done without having to go to a playoff. >> adam, one more question. you've seen now both murphy and i on camera.
just from your expertise in golf, who do you think is the better golfer? >> neither is an acceptable answer. >> you're putting me in a great spot here. no. that's a tough one. >> i think it's an easy answer. >> but it's an easy answer? >> i mean, let me rephrase the question. could be the caddie. i'm very strong. >> yeah, yeah. >> anytime you need me. >> perfect. >> i had a caddies out here today a couple. steve is getting on a bit these days. might be a spot opening up soon. >> adam, got to run. waiting on the president. wish you well this week and catch up again soon. >> of course, i understand thank you very much. >> live in paramus. the picture as we wait for the president, xpebexpected to make statement any moment now. we'll take that live. back after this.
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all right. welcome back. we are still, of course, waiting on the president. we will take you live up to martha's vineyard when president obama does emerge to make a statement that we do believe will concern the killing of the american journalist james foley by isis. the national security team has deemed the video released by isis to be in fact authentic. the president of the associated super where mr. foley worked, calling and condemning that
murder as an international crime of war. we expect his statement will be on that topic perhaps among others and we will take you there live. here's mr. obama now. the entire world is appalled by the brutal murder of jim foley by the terrorist group ishil. jim was a journalist, a son, a brother and a friend s he reported from difficult and dangerous places, bearing witness to the lives of people a world away. he was taken hostage nearly two years ago in syria, and he was courageously reporting at the time on the conflict there. jim was taken from us an act of violence that shocks the conscience of the entire world. he was 40-year-old. one of five siblings, the son of a mom and dad who worked tirelessly for his released.
early today i spoke to the foali foleys and are heartbroken at their loss and join them in honoring all that he did. he stands in stark contrast to his killers. let's be clear about ishil. they have rampaged across cities and villages, killing innocent unarmed civilians in cowardly acts of violence. they abduct women and children and subject them to torture and rape and slavery. they have murdered muslims, both sunni and shia, by the thousands. they target christians and religious minorities, driving them from their homes, murdering them when they can. for no other reason that they practice a different religion.
they declare their ambition to commit genocide against an ancient people. so ishil speaks isil speaks for no religion. and no faith teaches people to massacre innocents. no just god would stand for what they did yesterday and what at the do every single day. isil has no ideology of any value to human beings. their ideology is bankrupt. they may claim out of the 1k350edancy that they are at war with the united states or the west, but the fact is they terrorize their neighbors and offer them nothing but an endless slavery to their empty vision, and the collapse of any definition of civilized behavior. people like this ultimately
fail. they fail because the future is won by those who build and not destroy, and the world is shaped by people like jim foley and the overwhelming majority of humanity who are appalled by those who killed him. the united states of america will continue to do what we must do to protect our people. we will be vigilant and we will be relentless. when people harm americans anywhere, we do what's necessary to see that justice is done, and we act against isil standing alongside others. the people of iraq, who with our support are taking the fight to isil, must continue coming together to expel these terrorists from their communities. the people of syria, whose story jim foley told, did not deserve to live under the shadow of a tie rant or terrorist. they have our support in their pursuit of a future rooted in dignity.
from governments and peoples across the middle east, there has to be a common effort to extract this cancer so that it does not spread. there has to be a clear rejection of these anilistic ideologies. one thing we can agree on is a group lie isil has no place in the 21st century. friends and allies around the world, we share a common security and a common set of values that are rooted in the opposite of what we saw yesterday, and we will continue to confront this hateful terrorism and replace it with a sense of hope and civility. that's what jim foley stood for. a man who lived his work, who courageously told the stories of his fellow human beings, and was liked and loved by friends and family. today the american people will all say a prayer for those who
loved jim. all of us feel the ache of his absence. all of his mourn his loss. we keep in our prayers the other americans who are separated from their families, and we will do everything that we can to protect our people and the timeless values that we stand for. may god bless and keep jim's memory, and may god bless the united states of america. >> okay. that was the president, of course, making a statement about the murder of american journalist james foley. the president say no just god would stand for what isil did yesterday and every day, the president saying he spoke to the family of mr. foley early today. eamon javers is in washington, d.c. you wonder beyond the statement what the response will be. >> reporter: that's right, no real indicate in the statement from the president of what exactly he plans to do in response to this. remember, the terrorists
involved in this video are also saying that they stand ready to kill other americans and westerners if mr. obama continues with his policy of responding with american force to isis advances in the northern part of iraq. one of the questions is how does the united states respond? we didn't see an indication from the president here of what he plans to do, just a full-throated denunciation of isis and everything it stands for, saying it flies in the face of simple human decency. as you say, no just god would stand for what we saw yesterday in that gruesome video of jim foley's death. >> eamon, the clearly on vacation, but has a full plate of issue toss deal with, whether it's the killing of mr. foley. the other issues taking place in iraq, then there's gaza and ukraine is not exactly off the front page, either. >> and don't forget domestic politics. he has an unfolding human rights situation going on here in the united states in missouri. the attorney general just landed in missouri to try to deal with
the outburst of racial animosity that we've seen in ferguson, missouri. so presidents don't really get vacations. they get a change of location, as nancy reagan once said. they don't get a real vacation away from being the worries of the president of the united states. there's a lot going on around the world and here in the united states. >> eamon javers, with the latest out of our washington, d.c. bureau. for the most part, guys, the markets beyond these geopolitical events has been sort of able to look past what's going on. the nasdaq is up for six straight days, a 14-year high, and clearly the market starts to turn away what's happening geopolitical geopolitically. >> i think it's appropriately looking at what could the economic impact be to the recoveries in the u.s., from what's happening geopolitical. the answer is not much. so that's why i think the market
is holding firm. >> there's the s&p 500, up a tenth of 1%ings so a bit of a muted move today, but nonetheless the markets do remains in focus a couple days ahead of what is expecteding to an interesting people by janet yellen, among some of our other central bank. have a great rest of the day. "power lunch" starts now. . halftime is over. "power lunch" and the second half of the trading day starts right now. >> the mortgage crisis brought the american economy to its knees six years ago. now a new lending problem. a canary in the coal mine may be rising, and many believe it would be a threat to the recovery. we will talk about it. a major company's cfo makes a $1 billion mistake. see what happened to him, see how it happened, and making green in the middle of the drought in california. jane wells is on that story today.