Transcripts For CNBC Closing Bell 20240622

Theyre about to make a big bet on all Day Breakfast. Will this be the move that finally turns things around for the fast food giant . Or is it just too little too late . We have both sides of yet another heated debate on mcdonalds. Everybody, you either love it or hate it right now. Nobody is lukewarm on mcdonalds these days. A lot of people like breakfast for dinner. We will see. That big selloff in commodities. Keeping an eye on that for you. Gold seeing the longest losing streak since back in 1996. Well discuss whether the strong dollar and the commodity drop could actually delay a fed rate hike. Oil just closing below 50 a barrel. Well start, though first with the tech sector. Getting hit the hardest today after apple and others reported disappointing Quarterly Results yesterday. Apple and microsoft are the bottom performers on the dow. Yeah we had those two plus go pro and yahoo. Theyre all down today. And go pro now has turned positive. It got slammed hard initially after reported numbers. But now its coming back today. Joining us now, back with us from Disruptive Tech research. We have kenny from oneil securities at post 9 00 and bob pisani out there somewhere on the floor of the new york stock exchange. Thank you. So, lou. Are expectations just too high . Well talk about that later. Apples numbers werent that bad, but the stocks still got hammered. Yeah, i mean its amazing, right . Apple, the Biggest Company in the world puts up 30 plus growth on the top and bottom line and were complaining. I think expectations just got way ahead of themselves. The investors started looking at the tension overseas and were praying that tech and the tech sector would be our savior. And thats just not the fact of the matter. I dont think this is a time to panic, though just a time to reset expectations. Bob, pisani what are you watching in terms of technology . I know you were looking at that standout quarters from google and netflix. And finding that it didnt necessarily mean broadbased strength in technology. Thats right. Think of the big four. Apple, amazon, facebook and google. Weve got two of them reporting. Google was terrific. I thought apple was good. But not good enough for a lot of people. So lets talk quickly about amazon and facebook. Amazons the perpetual story. Its going to get better next year. Its a 500 stock that has, what, 46 cents, i think, were going to earn next year. So the p e is like 1,000. Everybody believes next years going to be the year they get real earnings going to get cut in half. The investors seem to be believing that. Come on. Itll have real earnings when jeff bezos wants it to have real earnings. Im more concerned with twitter. Its still 110 times forward earnings. Its a 36 stock. Its going to make 33 cents this year. And everyone believes theyre going to somehow cut that again, in half next year. This is the same story with amazon. They believe its going to do better. But the investors seem to believe a little bit more that amazon has a greater likelihood of dramatically upping their earnings than twitter does. So of the big four that we were talking about, google is the clear winner and i think theres going to be some real head winds for amazon as well as twitter. Convincing everyone they can improve their earnings going into 2016. We identify that the nasdaq was in record territory, but fewer and fewer stocks were leading this rally higher. So maybe the market was vulnerable to a selloff. You also have look at the pattern of every one of those stocks that was clearly a trade into the buy the rumor, sell the news kind of reaction. Every one of those names you mentioned today is up up up from certainly the july lows when the market turned around after the greece thing. Those apple numbers correct me if im wrong nothing to worry about. Theyre worried about the Forward Guidance and theyre going to sell at christmas time. I dont think theres any reason to panic about the tech names. Its benefitting from a multiyear growth trend in the lte rollout with rf chips. Go where theres growth. Share buybacks dividend hikes and m a are only going to cover up weak, underlying growth for so long. Go with a name like mobile eye. Elon musk says the driverless car will solve a problem. 50 top line growth 75 gross margins, no debt sell side analysts are finally waking up to the Growth Potential raising their targets. I think its a momentum name thats going to continue to run well. Hes absolutely right about the buybacks. I did a story this morning about a lot of Big Tech Companies are very aggressive. Ibm has been an aggressive buyer back of its stock for a while now. Apple reduced their share count almost 5 yearoveryear for the Second Quarter. The calendar Second Quarter. So these guys are out aggressively. And hes right, you shouldnt confuse reducing share count with actually growing sales organically, which is what you really want to do with any of these companies. All right. Guys, thank you very much. Weve got more earnings coming from the tech sector a little bit later. But appreciate your thoughts so far on whats been happening today. See you later. Meanwhile, oil and gold getting hit, as well today. Jackie with that story. Here we go again, bill and as a matter of fact, this was the event traders were waiting for when it came to the oil market. First time weve seen that since april 2nd. The settlement price was 49. 19. That came after a big inventory build this morning from the department of energy. When you duck into that report heres what you saw from the eia. Production, still near record levels, just under 9. 6 Million Barrels a day. Overall crude stocks up 25 yearonyear. And thats the number that traders were paying attention to. Meantime, Dollar Strength not helping the situation when we talk about the technicals 45 is probably the next stop we may not get there in a straight line. But thats what traders are watching and the low around 42 this year traders say if we get under that level, we are going into the 30s and that is what some on the street have been calling for. Lets switch gears and talk about gold. It wasnt a much better story there. The settle was 1,9150, down about 13 on the day. Great stats, ten days of straight losses for gold. The longest losing streak since 1996. So this gives you some perspective about what is happening in the commodity market and in the metal space. Also, gold was down 6 over the last ten sessions. A settlement under 1,100 which we got today. The lowest weve seen or the first time weve settled, rather under that level since 2010 in march. So traders are telling me they dont want to be owning gold right now for a number of reasons that weve discussed. The dollar is one. The fed is the other. Back to you guys. All right. I was going to say, jackie its spreading, right . Its going beyond gold. I was looking today copper zinc, tin all hurting. Absolutely. And part of the story, also is physical demand. Thats a crude story. A lot of different pieces to the story here. But the momentum in the space is down. That is obviously the most economically sensitive of the industrial metals. And a lot of our so we say, bill copper is the indication that sometimes the stock market you know may be certainly going up a little bit too much. That could be a warning sign for stocks. Whats the chatter . Whats the predominant reason here that youre hearing on the floor. Is it the strong dollar . Global weakness . China, deflationary threats . Whats the threat . Its a little bit of all of those aspects, sarah, but i think what traders are worried about is that this weakness could persist. And as we know, nobody wants to be caught in a bad situation. So this is turning into a momentum trade. That will pile on when you see these metals and also the Oil Trade Hit these technical levels. Theyll be watching the charts, as well. So then thats when the selling really starts. And at this point, i would tell you, i dont necessarily think its the end of the world in commodities. We may see a steep slide and then a bounce up as some have been forecasting. But definitely something to watch in the shortterm and, again, to link back to stocks to get a sense of what your Investment Strategy should be. You got it. Thank you, jackie. Thanks, guys. Well see you later. And i was telling you, my local gas station dropped the price for the first time in a long time down 10 cents all at once. And youre rooting for the lower price as a driver. Bring on 45 oil, bring on 30 oil, i love it. Well weve got another energy play to talk about now. One that nobody else is talking about. But it is a biggy. Were talking about transportation of natural gas. Morgan brennan all over this. And how to play it. Morgan . Hey, guys, thats right. Crude oil and natural gas can only be transported in large quantities by pipeline. So as u. S. Production has surged, Pipeline Capacity has not kept pace. And its particularly true here in the northeast where the marcellus and utica shale currently account for a quarter of all u. S. Gas production. So companies are plowing money into pipelines. Estimates that 54 billion has been spent on new u. S. Pipeline capacity since 2009. From 2016 through 2018 it expects that to nearly double to 104 billion. Among the names are proposing, were already building out pipelines. Kinder Morgan Williams companies, Spectra Energy and dominion resources. And its driving a pipeline merger boom or the beginnings of one. Marathon petroleum subsidiary mplx buying Mark West Energy partners for 15. 6 billion. Also, Energy Transfer equities recent takeover bid of williams companies, which its reportedly going to pursue weatherhether williams cooperates or not. Another way to play this Quanta Services that does the actual building of pipeline and these kinds of infrastructure projects. One area, even if nat Gas Production were to come off, this is one area where there is still demand and still investment moving forward. Yep. A lot of big expectations. But just too much of it out there. Thanks, morgan. See you later. Lets go over to dominic. What do you have dom . A lot of action here in Caesars Entertainment. Czr. This is two trading halts today. The shares you can see on the intraday right now, down by about 39 , 40 . At one point, they were 3. 30 per share. That means it was down 60 . This all after a judge has refused to halt creditor lawsuits against caesars parent company. Now, just on background here caesars, this casino company, this operator operates under the caesars, also the horseshoe brands. Its got operations all over the place. But this companys major operating unit is already in bankruptcy right now and a judge has now said that other entities can now proceed with their lawsuits against caesars which means it could be, again, could be one step closer towards a potential bankruptcy. Thats the reason why the stock is moving the way it is right now. But certainly a stock well keep an eye on today given the action so far. But, again, just calling you and our viewers attentions on whats happening with Caesars Entertainment now down by 39 . Back over to you guys. Wow. Thank you very much. See you later. Here we go. Weve got 48 minutes left in the trading session here. Another selloff today. Not nearly as bad as yesterday. But still, the dows down 75 points and the s p and nasdaq down, as well. And watching some of these biotech movers. Up next unveiling results for the new alzheimers treatments. What steps are next for these treatments and how its impacting the stocks moving in opposite directions right now. Also ahead, mcdonalds planning to serve breakfast all day. But will that move provide the energy boost needed at the golden arches . The fast food giant posts results tomorrow. But ahead of that well debate the outlook for mcdonalds coming up. Stay up. By the time Police Arrive on a crime scene they could have little to go on. A vague description. A single piece of evidence. A partial plate number. With an app from ibm officers can now access over a billion police documents to find hidden connections and identify potential suspects. Ibm analytics helps one hundred thousand officers work smarter every day. Markets lower again today. Were focusing so much on technology, rightfully so, but some of the Big Industrial companies not doing so well, as well. Caterpillar lowering its announced its lower after announcing a 14 drop in global Machinery Sales for the Second Quarter. He tried to say. In the first quarter, their sales were down 12 . They are accelerating if anything, to the downside. Caterpillar reports earnings tomorrow, but ahead of that it is down 2. 75 today. Exposed to commodities, to china. Both of them worrisome. All right, well, more than 5 million americans live with alzheimers disease. And today, two Drug Companies released trial results for new treatments. Joining us now with details on this important story. Shes at the big conference down there in washington. Meg . Hey, so the two Companies Really in the spotlight today are biogen and ely lily. You are seeing those shares under some pressure as some are calling the data a little bit controversial. The company saying it backs up what weve already seen. But the drug does help clear those plaques in the brain related to alzheimers and stem the decline in cognition. Its controversial, because when you look at one dose in particular that was really underfocused here in this update of the data. It wasnt statistically significant on two measures of cognition. So people really parsing that. But this is a small study. And the company is still moving forward with already announced plans to go into phase 3 trials. Youre seeing that stock about flat today, a little bit up, earlier it had been down. Really the key data is going to be either at the end of 2016 or 2017 when their phase 3 trial reads out. This is a good update were giving today. Eric schmitt called the biogen readout probably the biggest binary event in biotech history. Something to look forward to a little bit off on the horizon. And those headlines are everywhere. Youre hearing about a lot of things. I heard it on the radio coming in about the optimism surrounding these trials there because of the conference going on in washington. But you are making a good point. We will be getting ahead of ourselves if were hoping these things happen sooner rather than later. This is going to take some time to reach the market, right . Theyre going to start the phase 3 trials this year. They could be, you know three years until we get those data. And so it could be a while before they get on the market. Its also important to note that theyre testing these drugs in patients in the earliest stages of the disease. So they wont necessarily be applicable to everybody with alzheimers right now. More than 5 million americans. There are other attempts in companies pipelines that may go later stages of the disease. But this is really the earlier stages. I was just wondering that historically how many times Drug Companies have tried to come up with treatments for alzheimers. How many failures there have been and why theres so much optimism around this technology. Its a great question. Since 1998 weve seen more than 120 drugs fail in development for alzheimers and only four have reached the market. And those four dont work on the underlying biology of the disease, they work on the symptoms. And so, its been a really really tough area. And so some might say its surprising to see this kind of optimism. But for the first time the reason people like this biogen data so much it showed what looked like a correlation between removing the plaques from the brain and stemming the cognitive declines. Folks are hoping that reads out in bigger studies. Lets hope so. Meg, thanks very much. Were going to talk to an analyst in the next hour. Yep. All right. Here we go. 40 minutes to go before the closing bell. Weakness across the board in terms of stocks. With the dow getting hit 82 points. Apple, microsoft and caterpillar are the bottom three. You were just mentioning c. A. T. The s p 500 down. 3 . The selling and weakness in technology where the nasdaq is down. 75 . Yeah apple, big story there siding after iphone shipments missed. Very lofty street estimates. Coming up, has apple become too dependent on the iphone . We have a special report. Plus, well discuss whether the expectations of apple have become too high overall. And up next with all Day Breakfast, will all Day Breakfast help turn mcdonalds around . Thats the question. The fast food giant posting earnings tomorrow. Well have the bull and the bear case on mcdonalds stock. We actually found a bull on mcdonalds and hes standing in front of us. Were going to hash it all out. Oh you did. You went there. When we come back. It took Serena Williams years to master the two handed backhand. But only one shot to master the chase mobile app. Technology designed for you. So you can easily master the way you bank. You focus on making great burgers, or building the best houses in town. Or becoming the next highlyunlikely dotcom superstar. And us, well be right there with you helping with the questions you need answered to get your brand new business started. Were legalzoom and weve already partnered with over a million new Business Owners to do just that. Check us out today to see how you can become one of them. Legalzoom. Legal help is here. The dow down more than 70 points at this hour. S p down. 25 . The strength today is being seen in financials utilities and consumer discretionary. All in the lead. Weakness in selling really happening around technology, telecom, industrials, energy with that oil close below 50 a barrel. Kind of a 50 50 day. Lets check out some of the movers we have at this hour. Jumping to a 52week high after earnings beat on the top and bottom lines. The maker of robotic Surgical Equipment now expects surgical procedures to grow between 11 and 13 this year. And Chipotle Mexican Grill also hitting a 52week high. The fast casual chain says better than expected operating margins helped earnings squeak past street estimates. Plus, some analysts are taking comfort from positive traffic numbers for july as well as the allimportant new pork supply agreement that chipotle has reached that will return carnitas to stores in the second half of this year. And it cant come fast enough. Thats really driving me on those gains. Speaking of food. Shares of mcdonalds Holding Steady today. Getting ready to report quarterly numbers tomorrow morning. Many observers hoping to get confirmation of that report that mcdonalds is launching allDay Breakfast nationwide in october. Will that be too little too late for the fast food giant. We found a bull on mcdonalds. That would be john. He sees a turn around coming. But bob darrington says mcdonalds needs to make bolder choices to stay relevant. Good to see you both. Great to be here. Thank you. John you think theyre going to turn things around . Well im not putting my hopes on the happy meal going all day. Obviously, that would be foolish. Breakfast. The breakfast. Yeah. I think that you know mr. Easter brooke has only been there since march. Took over. Really kind of a sinking stagnant ship. Hes priced water house, an accountant, been at mcdonalds his whole career. One of the biggest drivers of all the revenue, 10 billion. I think he knows what levers to pull to get this thing going. Right now, its really been kind of between 84 and 104. There are no expectations. I think the markets looking for a 1 move after earnings. Were looking for 1. 25, maybe, on the number and 6. 5 billion in revenue. Most of the revenues come from fran franchisees. The buildings on that land. So we have guys like bill ackman, larry robbins. Looking for them to go into the reit mentality. Right now, mcdonalds trades at 12 ebitda. Not to mention the fact it pays 3. 5 dividend. You gave us a lot to talk about there, including the popular sort of reit trade going on. Lets turn it to you, bob. All Day Breakfast, i think john mentioned that the franchisees are very important. First of all, are they going to get on board with this . Are they going to be able to execute that plan . And second is that going to drive sales . You know its good question to be fair. They dont have a whole lot of options, at this point in time. As big as this company is as big as the supply chain is for this organization, they need to make some pretty profound chains, which would take a while to work their way through their system. So a relatively simple near term fix could be breakfast, all Day Breakfast. Its not going to turn the business from negative to positive. But i think its the first step of many that ultimately well see that maybe they can claw back from the precipice and make for better trends. John weve talked its such a big company and its so slow in turn that weve been talking about allDay Breakfast for months and its not going to happen until october. Just this morning, i was talking about Fast Food Companies accepting mobile payments. Mcdonalds doesnt and theyre talking about theyre going to begin testing it next year. I mean theyre slow to embrace new technologies and new ideas for the menus. Yes. And it takes time. Again, its almost like the u. S. Economy, you get into some of these vast companies. Its a super tanker, right . It takes a long time to get it to start to turn. Hes only been there since march. I get it. Again, hes a Price Waterhouse guy. Knows what levers to pull. But, its going to take time. But once the ship starts to move, its going to move. And right now, the 3. 5 dividend, thats solid. Debt to ebitda theyre trading at 1, 1. 5 times. Theres a lot of other companies at three. Theres a lot of things he could do because he doesnt have a lot of debt. Clearly youd buy it here . Yes, buy and hold. Bob, is there a price that youd get in at some point . You know, i dont disagree that we probably have a relatively limited downside given some of those levers he could pull. You know, up ultimately the upside catalyst has to be the operating performance. And when that ship begins to turn it very well could be a year plus before we really begin to see operating performance improve substantially. A lot of people looking for that u. S. Same store sales growth to actually go positive expected to be negative, 1. 5 tomorrow. And, remember they missed 6 out of 8 times. So a surprise is not unlike any thanks, john. Thank you. Thanks, bob barrington, as well. Time for a cnbc news update this hour with Courtney Reagan. Whats happening right now. Closely scrutinizeing provisions being considered by congress. White house spokesman just ernest says the trust Fund Reauthorization is likely to be the next legislation to move through congress. Well Union Service workers at laguardia and jfk airports have suspended their plans to strike reaching an agreement of sorts with their provider. The strike could have impact Delta Airlines which contracts the workers. Well theres a new police chief in ferguson missouri Andre Anderson named interim chief taking a sixmonth leave of absence. At a news conference, anderson says hes determined to make a difference. And starting this coming season, nba fans will be able to purchase any game for 6. 99. The pay per view service will allow fans to see out of town games, not on national tv without paying the full 199 fee for full season of nba league pass. Thats a cnbc news update. Back to you, sara and bill. I think that sounds like a great plan for a game i want to see. Yeah as a new yorkarea basketball fan said to me, you can watch the knicks lose for less. Yeah, from wherever you are. Thank you courtney. And pay per view golf. Yes, you do. All right. Weve got about half an hour to go before the closing bell. Still seeing losses across the board. The dow now down 84 points s p 500 down. 3 . And the nasdaq getting hit hardest, though it was the biggest beneficiary, down almost a full percent now. Up next apple may have more than 30 products listed on the website, but only one matters according to the latest data. Well have a special report. Plus discuss whether the Great Expectations for apple are just unrealistically high right now. After this. At ally bank no branches equals great rates. Its a fact. Kind of like shopping hungry equals overshopping. vo me . I dont just wait for a moment. I watch for the perfect moment. The one nobody else sees. And when i find it i go for it. announcer at scottrade, we share your passion for trading. Thats why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so youre always connected, wherever you are. Because at scottrade, our passion is to power yours. At ally bank no branches equals great rates. Its a fact. Kind of like mute buttons equal danger. That sound good . Not being on this phone call sounds good. Its not muted. Was that you jason . It was geoffrey it was jason. It couldve been brenda. Here in the last half hour the critical part as we head toward the close. Joining me here. And i think its safe to say that two hinge things were watching now, technology and commodities. Yes. And they both go in the same direction. Technology first. Well, its a problem for the market because thats the main growth sector. And if we see Technology Start to sell off and, of course it started the catalyst of course apple. And apple had great earnings and great sales, but of course disappointing for the Fourth Quarter. We get Texas Instruments to report tonight and sandisk to report tonight. I have to see and hear what theyre going to say. Is facebook going to be the savior for next week that will save the tech sector . But really, for us to plow forward in this market, we need the tech sector to keep going. Right now its stalling. Semiconductors are not doing well. Expectations are not very high for a lot of those companies reporting. No, and sandisk is important because of all of the flash memory and goes in all the pcs and devices. If they show weakness that could spell bad things coming. Commodities, oil, below 50 for the First Time Since early april. Gold still getting slammed. All the industrial metals. What do you make of it . Its an interesting story, and its not dissimilar to whats happening in the equity market. Theres no fear out there. If theres no inflation, no fear and you have a dollar rally, gold is going to get slammed. Its vastly vastly oversold at this point in time. And along with it comes all the goldrelated etfs and miners and other Companies Like that. Again, Pay Attention to their earnings. Oils a little bit of a different story. Oversupply, lack of demand also a strong dollar. And, again, the Energy Sector is getting whacked here. If crude, if wti gets down to 45, id be a buyer in there and all the energy companies, as well. Well, were getting there. Well see. All right were going to talk about the stock of the day. There are over 33 official products listed on apples website. But in the wake of todays stock drop and yesterdays Earnings Report it is clearly only one product that really matters, the iphone. Here to tell us why it may be bad news for apple, at least this quarter is dom. That and maybe other quarters, as well. The reason why, sara is because, for the iphone, the sales make up about 2 3, almost 2 3 of all of the revenue generated by apple. Its a huge amount of money that is just due to whats happening with the overall iphone. Now, the reason why were focusing on this because our friends over at cnbc pro took a look at some of the numbers behind it using our data partners. We found that with apple theyve beaten earnings estimates in 19 of the past 22 quarters. Weve told you that before. Now, theyve traded positive 63 of the time. Also nearly 2 3 the day after earnings. Now, heres the interesting part. Now, Apple Earnings in january of 2014 this is important because youll remember back then earnings beat analyst estimates, one of those 19 times. However, iphone sales fell short of estimates and those shares collapsed the day after those results. Also, another day back in january of 2013, earnings, again, beat analyst estimates. Iphone sales, though fell short of estimates, down 12 the day after those results. It gives you an idea. Perhaps stating the obvious when your biggest product, the one that drives 2 3 of your sales takes a little bit of a dip below expectations. It can have a big effect on the stock. But for right now, theyre still down but down by 4. 5 , a little bit better than what we saw into that Earnings Report after hours, guys. Back over to you. All right, thanks very much. Lets review again, the numbers here. 47 1 2 million iphones. 10. 9 million ipads, 4. 8 million mac books, 49. 6 billion in revenue. And this is my favorite. A cash hoard of over 200 billion. Everyone likes to compare that to the Greek Economy and the 200 billion. If it were any other company, investors would be happy with those numbers, eyepopping numbers, and yet, as weve been mentioning, the stock down 4 today. Our expectations for apple just too high at this point . With us now to discuss, tony and dawn. Youre coming at it from a bc world, where you are used to High Expectations right now. Where does apple fit in with the overall sort of tech environment that youre seeing . I think all the activity in the last couple of days is just so symptomatic of human nature. We tend to overemphasize shortterm underestimate the longterm. Go back to 2000. In the year 2000 apple was worth 5 billion trading at a 20 p e. Today at about 700 billion at about 14. 5 p e. Expectations are not in line with the quality. What do you think, dawn . Well i think the wall street seems to bereacting to their own expectations. When apple reported these results, they beat all of the earnings and the revenue projections and right. And they seem to fall within you know, have a quarter in terms of the iphone sales. And then when i looked at the analyst projections, they were expecting even greater iphone sales. 50 million, right . Yeah, exactly. Yeah. Ive had, though, i still dont get why ipads and overall that categorys not doing well these days. It is to some extent but its 11 million. Almost 50 million iphones. And theyve got 200 billion cash. Thats greater cash than microsoft, Amazon Google and throw in facebook all put together. That is insane. I think, dawn, the problem with the iphone number yes, it missed the whisper expectations we can go quarter to quarter on this. But there is this sort of lingering fear maybe, or worry that demand might be peaking out. Its a saturated market. That everyone has the smartphones, its very competitive and were not going to see the kind of growth rates weve been seeing in the past from apple. Yeah that was the first question that the analysts asked tim cook on the call yesterday was, gee, weve noticed there was more of a dropoff in the june quarter compared to the spring quarter than there had been in the past two years. Now, tim cook did his best to sort of inject another perspective. Said, hey, look at china. Sales were up 112 over the same time last year. In fact, there were the sales were up in every region where apple sells the product. Theres a lot of room. Like a quarter of the iphone owners have upgraded. And theyre seeing more android switchers than ever before. Apple is trying to at least inject its own optimism that theres still room to grow here for the iphone. And right or wrong, a lot of the conversation circled around the apple watch. Yeah. Its not a very big story in the scheme of things when you consider earnings otherwise. But this is tim cooks first initiative, and it doesnt sound like it did very well. Well i dont think we have hard data. I dont think they were forthright. Isnt that interesting . Well i think its early. It surpassed expectation. It surpassed expectation, the first real foray was china. And i think were overemphasizing a shortterm, one quarter blip. Were in mile 4. I notice youre wearing an apple watch. Left it at home. You caught me there, bill. What were you going to say on the apple watch . Well apple has really not been terribly transparent in terms of the numbers. Trying to back away and say, hey, look we told you in september, we werent going to break out numbers. You know, i think that many of the analysts took a look at the numbers yesterday and began to adjust downward the estimates of apple watch sales to the 2 to 2. 5 million sales. Now, well see. As youve noted, its early days, this has only been sort of on the market for less than three months. Apple took pains to point out that, look this is selling better than the iphone did. And this is selling better than the ipad did initially. So give us some time to find so thats traditionally been apples gig to figure out how to adjust the features and the pricing and, you know try to get it right over time. All right. Well be patient. Very good. Thanks guys. Thank you. Shout out to my friend frank at the security there. Well done. Were heading to the close, weve got 18 minutes left in the trading session here. The dow is moving lower. Were seeing selling coming into the market here down more than 100 points. And the nasdaq is down. 87 right now or 45 points. Yeah, tech lagging. The dollar rally, the commodity drop. Something that could put the brakes on a fed Interest Rate hike. Up next, well have a debate about that. An epic debate. If you cant stand the heat, get off the test track. Get the mercedesbenz youve been burning for at the summer event, going on now at your authorized mercedesbenz dealer. Hurry, before this opportunity cools off. Share your summer moments in your mercedesbenz with us. Isnt it beautiful when things just come together . Build a beautiful website with squarespace. Every Auto Insurance policy has a number. But not every Insurance Company understands the life behind it. Those who have served our nation. Have earned the very best service in return. Usaa. We know what it means to serve. Get an Auto Insurance quote and see why 92 of our members plan to stay for life. Well commodities are falling hard today as the dollar continues to strengthen. The weakness being highlighted by gold hitting a fiveyear low. And the price of oil dipping back below 50 closing there. For the first time back in april. So, could the Dollar Strengthen and commodity weakness cause the fed to put a rate hike on pause until pick your favorite time . Joining us right now, two guys who rarely disagree with each other. Weve asked them to give their respective opinions on that. Both of them there in chicago. I mean, Inflation Expectations are very much on Janet Yellens radar screen, jack. And if they go down because of the commodity slide, could that put a rate hike on hold for a while . Yeah, bill if we see the dollar move another 15 or 20 , yeah, then this is a conversation worth having. But not with the dollar at 108 versus the euro. You know, whats been happening in the commodity complex is completely different, believe it or not than what has been happening in the 4x markets. Its pushing Commodity Prices a little bit, but the real story in commodity land is what is coming out of china, the liquidation were seeing because of margin calls there and also because the volcker rule was enacted. The final days for some institutions to comply was yesterday yesterday. That is not a reason for this fed to stall anything. I believe, janet yellen when she says shes going to move later in the year. Do you disagree rick . Well i guess i disagree on theres so much more at work than the imply l occasionications of a weaker dollar. You talked about it bill. A oneyear chart at caterpillar. Check it out, look at crb. Look at similar and a year chart of copper. All of these are supposed to give us a glimpse into the future. If you look at the dollar for one year, yeah, doesnt look bad. But when you look at a 20year chart, puts it in more perspective. And it isnt just against the euro. Jacks right, its doing better against the peso the south careen korean. The global horsepower is diminishing. I cant tell you what the feds going to do. But what i can tell you is all the inflation has turned out to be financial asset inflation, and i believe like a mother bird, the fed is going to protect that with all the will it could muster. And ultimately i think whether they normalize, or not, the first time might not be affected. But if they raise rates a small amount, theyre going to have about five meetings in a row where theyre going to swear on a stack of bibles to never do it again. Wait rick, i think one of the problems i have with what youre saying is that everything that we hear about a strong dollar seems to be negative. You know there are good things about king dollar being back, right . I didnt say it was negative. I like a strong dollar if you cant make things ever going to sell just because its cheaper, yeah maybe iphones were affected a little bit. But, they take over 90 of the profit. The point is that actual, what you see is Producer Prices staying at one level and Consumer Prices because youve got a better economy increasing. And you know what that is rick exactly what we want. A little bit of inflation so that the fed can do exactly what we all want and that is normalize. What we are looking at right now is part of the process. Its messy, its ugly but its all part of the process. The process of normalization. Something that weve all wanted. And as far as asset Price Inflation goes, rick. Come on. The problem is that United States isnt the only king on top of the mountain anymore. Its a global world we live in. And unfortunately but were the leaders of that world. The improvement, yeah. Sure, great number today in existing homes. 5. 5 million. I agree. But in 05, it was over 7 million. See, the point is were not as good as we were and the rest of the world is far from as good as they were. Thats the story of the future. Thats the fallacy. That is actually the fallacy of what people have been saying. Were probably better than anybody thinks. Well let you continue. Those alltime highs really get in the way. Well let you guys continue the conversation at harry careys. How is that . Keep going. Thanks guys. As long as i can send you the bill. And theyve usually said that when it comes to Commodity Prices. Thats all ill say. You know what i love . What . They agreed with each other and still yelled at each other. I know. Its true. I love that whole thing. Where are we going . To the close in ten minutes. Closing bell will sound. At one point, we were over a triple digit loss, the dow about 96 points losses picking up into the closing bell. The nasdaq is bearing the brunt with that tech selloff. Yes, maam. When we come back some positive surprises in the financials in health care and technology that are driving the improvement in earnings. Well get his take on how the remainder of the earnings season may fair when we come back. What the heck is that . So this beauty can be yours with a down payment and 10 financing. Oh larry, lawrence. Thanks to the tools and help at experian. Com, i know i have a 798 fico score. [score alert text sound] [score alert text sound] oh. Thats the sound of my Interest Rate going down. According to this score alert, my fico score just went up to 816. 816. 816 816 fico scores are used in 90 of credit decisions. So get your credit swagger on. Go to experian. Com become a member of experian credit tracker and take charge of your score. Here at td ameritrade, they work hard. Wow, that was random. Random . No its all about understanding patterns like the mail guy at 3 12 every day or jerry, getting dumped every third tuesday. This happens every third tuesday. We have Pattern Recognition Technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. For all the confidence you need. Td ameritrade. You got this. Its 54 before the top of the hour. Bob kaiser joins us right now. We get deep in the weeds on the Earnings Reports, but lets step back and look at the big picture. How are we doing so far for the Second Quarter . So far, weve seen almost 150 basis point improvement in s p 500 earnings since the start of reporting season driven in large part by surprises in Financials Health Care and technology. But judging by the way the market trades today, so far, its not impressed. Because expectations were too high on some highprofile companies, i guess, huh . Well apple, were in expectations so low going into earnings season, wasnt that the whole point . Lets use the Technology Sector overall as a case study. Our Equity Analyst before earnings season said perhaps earnings expectations for tech had come down because of dollar weakness in the first quarter, they lowered the bar so much. So technology, so far, is beating, initial expectations about 2 . Now were above 4. When you look at the valuation, should we be impressed by 4 Earnings Growth in tech especially when Single Digits mid Single Digits is expected for the rest of the year. You want to see a big surprise in q2 to make you think that momentum is going to build going forward. And so far, were not seeing it. Who else is doing well . Who is getting lost in the sauce here . Financials, so far, knocking it out of the park. Initial expectations up five now theyre up close to ten. And, you know, our position at Global Markets intelligence research, you wanted to Pay Attention to two sectors in q2. One is the financials the other is consumer discretion ryary. Are we seeing the Revenue Growth in any sector . Revenue growth was down expected to be down about 3. 5 and its actually slid a few tenths since then. So, you know revenues are not lending optimism, as well. Thanks, bob. Always good to see you. Well come back with the closing countdown as we get ready for a big earnings barrage. Yes, after the bell another earnings onslaught. American express Las Vegas Sands. Theyre all heading up earnings and there more, many more. Well have them all for you, the numbers, the reactions of the stock, the analysis. As soon as they hit. Youll find it only on cnbc. Were first in business worldwide. It took Tim Morehouse years to master the perfect lunge. But only one attempt to master depositing checks at chase atms. Technology designed for you. So you can easily master the way you bank. Seven out of ten Power Outages in the us are caused by weather. But utilities can now predict where the power will go out, within a few city blocks. Working with ibm theyre combining micro weather forecasts with detailed data from local sensors. To predict where outages are likely to occur. And send crews exactly where theyre needed, when theyre needed. 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With at t get up to 400 dollars in total savings on tools to manage your business. All right, 90 seconds left. Here we go again. Another heavy slate of earnings tonight. This is just some of the companies that will be reporting. A mixed bag, as you can see. But a good Cross Section of companies here. Qualcomm and sandisk and that sector. And American Express and Las Vegas Sands, we have Texas Instruments not on this list coming out, as well bob pisani. And i want to point out American Express. Their earnings last time was a real disappointment. Real big drop in january. And theyve got a problem. Very typical. Yeartodate. How about a yeartodate . American express cannot grow earnings. Their earnings are going to be lower than they were in the same period last year the revenues are going to be lower, and its going to be that way. Its been that way for almost two years now. And thats a classic problem. Its not very expensive, its maybe 14 or 15 times forward earnings. But, you know, there you see the big drop here from the last time their earnings came out. And the problem is not expensive, but they cant grow it all. And this is a problem all these big multinationals are having right now. Getting some kind of Revenue Growth. Thats why i did a story on buybacks today. Companies are aggressively buying back because they cant organically grow. Financial engineering underway. Exactly what it is. Its a big issue. Thank you, bob. A little bit later. Last nights earnings, todays trading, here come tonights earnings. And well see what kind of a market response and important guidance we get on a whole slate of companies coming out right now. Its the second hour of the closing bell. Welcome to the closing bell, in today for kelly evans. Lets take a look at how were finishing up the day on wall street. Dominated by concerns about technology earnings, the dow closing down about 69 points. Apple, microsoft were the bottom two there. The s p 500 closing down. 25 down 5 points, and then nasdaq which was the lowest all day down. 7 . 36 points obviously apple has an outside influence on the nasdaq on the s p and weighs on the dow. Mary thompson waiting for American Express results, josh lipton covering qualcomm and all over the Las Vegas Sands report. Weve also got our panel here at the new york stock exchange. Weve got cnbc contributor carol roth. Our own kate kelly and jack moore at the street. Also for more on our markets discussion fast money trader guy adami. Kate kelly, aside from earnings disappointments, commodities really stole the show today in terms of the pressure gold oil and other commodities we dont even talk about like tin and zinc. First of all, i think when oil pierces that 50 level hang on before you get into that, i want to get to breaking news out of qualcomm. David faber has the details. Hi, david. Thanks very much sarah. Thats right. A victory it would seem in some ways for the firm of Jana Partners that took a 2 billion stake in qualcomm asking the company to review the possibility of splitting it into its chip business and its intellectual property portfolio. That announcement coming just moments ago. In addition to many other announcements from the company will also include earnings, which josh lipton will take a look at. But importantly, the company not just agreeing to review. And, in fact saying it is in the midst of that Strategic Review right now in terms of a potential split. But also saying its going to be initiating significant costs in its structure taking about a 7. 3 billion cost overall portfolio down by 1. 1 billion. That as you saw at the bottom of your screen include perhaps as much, im told as a 15 reduction in head counts something the company is expected to discuss an upcoming Conference Call. Taking two new Board Members on. On the board of directors, two will come off, including dwayne nells to be replaced by these janaapproved directors. A third director also added in the not too distant future to be approved by both qualcomm and jana, as well. Of course, the Company Already announced some months back a 10 billion capital return plan. It is in the midst of that of course taking the part taking part in significant buybacks. It is also going to be reducing compensation to executives through stock by 300 million. Bringing an overall reduction, if you will in costs of 1. 4 billion for qualcomm. So in many ways doing many of the things that were being asked for by jana when it first took this position back in april. At the same time, people close to the company indicate to me many of those plans were already underway. Whether it is refreshing the board of directors, thats the word they like to use, or undertaking significant cost reductions or even reviewing, yet again, whether or not they should split the company. And by the way, the opinions on that analysts have weighed in for weeks now as we anticipated this, of course are very much split. Well see, in fact when they get to the end of the review by the end of this year whether or not they will choose to move ahead into the split in the chip business and the intellectual property portfolio. Lots of news this morning, i should say excuse me. Back to you, sara. Of course, its after the bell now. Yes, lots of news after the bell from qualcomm including, of course the earnings themselves and guidance which josh lipton will have a look at. Yeah i was going to say, first of all, were grateful you are working past your bedtime. But this im watching the stock very carefully. And clearly, Everybody Loves it. Is this a big surprise . I mean, the stock was up about 4 at one time here. I dont think its a big surprise that the companys undertaking this structural review to use the terms that theyre using. In fact, the general reporting on the likelihood of it yesterday, i think many people anticipated they might do that. As for the board well that perhaps something of a bit of a surprise making those changes. They have entered a stand still agreement with jana i should say, that extends through, i think its november of 2016. Jana is not going to be waging a proxy fight here. This is obviously stayed on relatively friendly ground. The many of the things that jana wanted them to do. Good. Thanks, david. Hang on david. I think we want to talk about with kate kelly in a moment. But first, we have to get to the numbers. Yes, we do we have josh lipton to give us the numbers from qualcomm. Well bill qualcomm get you those numbers. 99 cents on 5. 8 billion. The street was looking for 95 cents on 5. 85 billion. Importantly, lets turn to guidance. Qualcomm guiding q4 eps of 75 to 95 cents on revenue between 4. 7 and 5. 7 billion. Fullyear, theyre cutting here bill now looking for eps of 4. 50 to 4. 70 on sales of 25. 5 billion. That does miss street examinations. Now, on this Conference Call in addition to what we heard from david, i know analysts have a lot of questions about royalty pavement payments near and longterm. All those questions on that Conference Call, which begins in just about just a few minutes here. At 4 45 p. M. Eastern. Well be on that call bringing you guys headlines as they come. Back to you. Thanks very much josh. You wonder if the markets trading on the david faber news or the josh lipton news. Its p positive here. I think its the david faber news. I think one of the things investors wither looking for here was the executive compensation to come down. Thats certainly been a hot button issue. I think the potential least review of strategic alternatives, whether they decide to ultimately split this into could be good for the shortterm. I personally, from a longterm perspective, worry when you see them cutting the workforce and potentially splitting into the business a shortterm maneuver versus investing in what would be the longterm of the company but certainly from a shortterm perspective, theres no doubt that news would make the stock hey, from a hedge fund perspective, jana had a nice win with con agra and now theyre looking at some of the proposals. Yeah, theyve looked at spinoffs with a number of activist targets. Qualcomm should be noted was the single largest holding. This was a very important piece of their portfolio. One thing that struck me was, and i actually just rewatched davids april interview about this position. They have at least agreed to consider or have done almost everything that jana was looking for. In that sense, its a win. My only hesitation its taken them four plus months just to agree to a review of the splitup, let alone actually announce a splitup of say theyve hired an adviser or Something Like that. While it would seem to be progress for the activist hedge fund, its a little bit slow in moving. By the way, gri withagree with you, carol. I think the stock is popping on that activism news. Yeah listen i think all those comments are correct. The 300 million reduction in comp overall in terms of at least four annual share based compensation grants to executives maybe having a significant cut in costs overall. Perhaps something of a surprise here, bill, that may be lending some strength to the stock. The guidance not particularly good. So without this i think you certainly would have a stock that might be headed down. Kate brings up of course the fact its the largest single position for jana. Theyre under water on it so far, i believe, as well in terms of the average price over these last few months. Well see, again, we wont be hearing much on this review until the end of the year and then the decision will be made. And as i said its not a slam dunk that it makes sense to split these two businesses. Qualcomm has argued in the past that the chip business does actually benefit from the presence of this large, intellectual, you know the portfolio. He told you he would live with a continued combined company if they had a good rationale for it. Thats right. Im glad you reviewed the tape. We did the same kate, and thats true. He simply was asking for the review, not necessarily for them to undertake a split. But interesting win, you have to say at this point for the activists, choice by the company not to fight in any way. They do push them off so they dont have to worry about the huge distraction and potential proxy fight at the annual meeting. Now the question is what can qualcomm accomplish . And dont forget they have significant head winds. Including, i think josh certainly knows the Samsung Phone where they were not in the chip set that theyd hoped to be. That has been hurting them as well. So plenty of strategic challenges for this company. Well come and see what comes out of the Strategic Review. Thank you, david, for staying out late with us tonight. And well talk more about this. But American Express out with the quarterly report. Mary thompson with those numbers for us. Hey, there. Earnings beat wall street estimates. 1. 42 a share last year earned 1. 43 in earnings. Revenue, though missed. Revenue of 8. 28 billion well below the. 38 billion that wall street was expecting. The company said that the stronger dollar had a negative Impact International operations where revenue declined by 10 on a currency adjusted basis. It did increase by 5 . Helping, of course the quarters Bottom Line Results were expense controls expenses declined by 4 in share repurchases. The companys ceo called the quarter a solid one. In a statement within the Earnings Press release. And also said that as planned, the Company Plans to ramp up spending in the second half of the year as it looks to increase card memberships and also grow some of its new initiatives. So once again, the company which saw Consumer Spending increase 6 on an fxadjusted basis. That was pretty much in line with what wall street was expecting. Reporting better than expected earnings on the bottom line of 1. 42. But the revenue, again, missed estimates. Back to you, bill. And i know Everyone Wants to talk about that. Were getting backed up on this. We havent forgotten about you, more earnings coming out and well talk about it here. Dominic, youve got two big numbers coming out right now. Las vegas sands. Yes, sir. Shares up about 3. 5 59,000 shares have traded so far. This after the Company Reported earnings that were in line with analyst estimates, coming out with 60 seconds per share. And revenues actually came in slightly short. 2. 92 billion, analysts were expecting on average 2. 99 billion. Las vegas sands also saying again, sheldon ed lson. Saying they focused on nongaming segments. Commentary there, as well. But, remember this is a stock down about 6 so far this year. And even more so down by about 26 over the last 12 months. So setting up low here perhaps a bit of a balance factoring there. Also, i want to bring you up to speed on whats happening there with sandisk. Shares appear to be flat unchanged on relatively light volume. About 14,000, 15,000 shares so far. This after the Company Sandisk reported earnings of 66 cents a share that handily beats estimates for 33 cents a share. Revenues coming at 1. 24 billion versus analysts expecting 1. 2 billion. Flash memory certainly a focus here. Remember its been in the news a lot with micron sandisk. But, again, those shares appear unchanged right now. Those two, bringing more details as these come out. Back to you. What are we missing here . They doubled the estimate and the stock is sitting there . It is pretty impressive. Sandisk is also a company that like micron has seen a lot of weakness overall going into this number. Yeartodate, these shares down by about 45 over the last year down by about 42 . Flash memory has taken a huge beating already. We have a Conference Call for Las Vegas Sands, by the way, starting at 4 30. And the sandisk one starts at 5 00 eastern time. Well stay on top of those and see if they make comments on the calls, guys. Somebody was just saying sandisk may be halted right now. That may be the reason for that. But still, wow, they doubled the estimates there. Guy adami, we havent forgotten about you either. Weve given you a full buffet to choose from. Ill play the game. Thats what i enjoy doing. Qualcomm first. If david faber doesnt break that news this stock is trading 61 1 2. Lousy quarter, Fourth Quarter guidance was a disaster. Lets forget about fullyear for a second. Its the Fourth Quarter. That quarter was not good. Guidance not good. Davids story has the stock higher. Given the head winds the company faces, i think its still under pressure, but they have a pristine balance sheet. And Jana Partners behind them. I think 61 1 2, you can buy it. American express between 78 and 80, the stock has been there for the last six months after coming off from 90 bucks earlier this year. Not rich on valuation. But if you want to play the space, go visa and mastercard. And the reason it looks better than it is because a lot of people trksits hard to compare. People are confused with the eps. Look at the revenue there. Thats the key line. Small beat. Commoditized business. I think the stock remains under pressure. There you go. That was good. Excellent roundup. You wanted to talk qualcomm. And all four companies, all in an identity crisis mode. Every Single Company we saw here two years ago was in a completely different position. And qualcomm you never wouldve thought would be under this type of activist pressure. I think that qualcomm. This is disappointing if i were Jana Partners. Ultimately for them. And i know theres questions around what the split would do its either going to be incredibly value creating or going to be pretty much a neutral. But 15 of the workforce, thats just in my opinion. Is that just is that really upside for this company . Or is it really just kind of like providing cushion for the downside . Im a little worried about qualcomm being able over the last three years of every single mega cap tech name its the only name that hasnt expanded its, grown its multiple. Every other one has grown by at least 40 , 50 . Qualcomms multiple has actually contracted. So there are fundamental issues at this company that 15 of the workforce, if anything is not going to solve, but certainly could actually exasperate. Im worried about that company, im certainly, i think, Las Vegas Sands has a huge hurdle to come over with macau. And i think theyre not close to seeing any rebound there. And then theres amex. Absolutely. And ill go to guy adami on this. What do you think the likelihood is, perhaps, of an activist getting involved in American Express . Because given its positioning, they just havent done well enough as a stock. And it seems to me theres some real clear operational issues here. Theyve had some losses like the loss of costco this year. And seems like there could be sort of a case to be made that there should be some management intervention. Theres a huge opportunity. Youve heard rumblings, i think, over the louisiana couple of years. It was much bigger than people made it out to be. If you look the stock has acted in kind. Amex has not performed. I think it is ripe for an victim activist to come in. A range thats traded for the last few months. I think you have a clear bifurcation for American Express on one side and visa and mastercard on the other. Youve got to be in visa and mastercard. All right. I have to step in as the teacher. Pencils down for a little while. We have more earnings still to come. And well have plenty of time to talk about them as we progress through this hour. And guy adami, thank you once again as always for joining us. Well see you at fast money after some of the Conference Calls. Thank you also jack moore from the street. We know youve got to jump on those calls and start listening to all of the analysis. And we look forward to guys per periscoping. The traders on fast money tonight have a very unusual way to decide which stock will win. I dont know yesterday, they did a taste test didnt they . On burritos . Maybe thats whats in store. Well see. Commodities getting crushed this week as you know but is now the time to make a bet on a comeback of either gold or oil . Amazon releasing earnings tomorrow after the bell. And we know exactly how the stock should trade based on the results. Coming later on the closing bell. Youre watching cnbc first in business worldwide. All right. This ought to be interesting. A news alert on uber. Details, what now . Hi bill. Thats right. Well, the New York Times and others are reporting that the de Blasio Administration is dropping its plans to place a cap on the number of fhvs in new york city while a study is being conducted on their impact on traffic congestion, noise and more in the city. That of course would include uber. The mayor and uber have been trading jabs over this potential cap going into place. Now, like we said a 4month study will be conducted by the department of transportation. On the impact of uber and other ride handling and ride sharing startups within new york city. The city council had been expected to potentially vote on that bill as early as tomorrow. This is certainly an Important Development in the ongoing battle between the de Blasio Administration and uber in new york city. And we will of course keep you posted as anything new developments. Back over to you, sara and bill. Uber put up quite a fight. And the mayor blinked. And an independent study, im sure. Well, yes. We were debateing this at my family dinner table last night, actually. And i see both sides of it really well. As a new York City Driver who has to drive from the burbs to the city and back all the time the traffic is horrendous, its bad for the environment. As an uber user who cant ever get cabs . Its been a lifesaver. Theres a cumulative problem, we need to embrace congestion pricing. Thats an infrastructure problem. You shouldnt have the government picking entrepreneurial maybe but as a citizen, its a nightmare. You cant get around in your own car or in an uber. And a hot debate. I think its just fascinating watching uber emerge no the just in new york city but in san francisco, and all the major metropolitan areas. And the pushback they are getting from major cities using the excuse of congestion when in fact, lets face it theyre after more of the tax revenue they want right . My husband was telling me the average speed per hour according to a recent study is 8 miles, 8 miles per hour. And thats a problem in every major city. Going in out of chicago, los angeles, san francisco, bay area. I heard that same statistic, kate, and i had to laugh because they just lowered the speed limit in new york city to 25 miles an hour. Who goes 25 miles an hour in new york city these days . You often have very little choice. I hear ya. You can do it. Weve got to leave it there. We are talking about this commodity move right across the board for commodities across the board today, really. Everything from metals to energy to grains all moving lower. Natural gas, actually the one in the green there. Joining us right now with his view on the commodities, our friend dennis gartman. Do you like any of these commodities . Its hard to like anything, bill. The dollar is so strong. Its just cast against all commodities. One to look at for example, is wheat. We are the great wheat growing country in the world. The best quality wheat. But wheat prices are under extreme duress because we cant compete with ukraine, we cant compete with the wheat that comes out of romania. We cant compete with canadian or australian wheat. So even greatquality wheat here in the United States in the midst of harvest is just under egregious pressure. Its not just gold that has collapsed, no the just copper not just crude oil thats fallen, its everything thats under pressure because of the strong dollar. Well i think the debate is dennis what is the message from this move lower in commodities. Whether its saying something, perhaps, unknown about the Global Economy or if its really a china move or if its all because the strong dollar and the anticipate that the fed is going to raise Interest Rates. Honestly im not sure that the markets paying great deal of attention. I dont think wheat pays attention to what the feds going to do. Were talking about metals and oil and some of those commodities. The markets are paying attention to what the dollar is doing. And the dollar draws its conclusions from Federal Reserve policy. Clearly, our fed is going toer to err upon the size of policies going forward. So, too, the monetary authorities in japan. Throw that into the pot and throw into the pot a circumstance where chinese growth is less than optimal. Right. And throw into the pot a real great growing season for all of the grains. And you have the makings of a protracted bear market and commodities. This is not one asset class. Theyre all acting on their own. But right now, theyre acting in concert, one to another, the dollar being the implication. I heard somebody make an observation today. Id be curious what your reaction is to this. Speaking of the macro picture, this guy was telling me and i think we have charts we can throw up to illustrate this. If you think about the year 2008 commodities peaked at about 150. Did i say july . Okay. They p went just into the toilet in there. They were at 40 by christmas and, of course the financial crisis that really gained steam in september. If you look at it you see the big peak in commodities. And less volatility but the trajectory follows later. If you look yeartodate, you see that so far commodities are clearly falling, equities have hung in there. Theyve now diverged to where equities are going up a little bit. But you have to wonder if with the commodity route, is there an equity route around the corner is there any correlative relationship here such that commodities could be a leading indicator . I would hesitate to make that great leap into the void and say that commodities will lead equities on balance. I have been at this for 40 years. Im relatively new to the business, but ive seen prices rally and equity prices rally with them. Ive seen Commodity Prices break and equity prices rally and nonetheless, ive seen them move in convention to one another. That the world is going into the dinger and that equities prices are going to sell off. Nonetheless, the equities market doesnt act very bullish to me at all. And the lack of whats the new term . Bad breadth that we have in the equities market certainly does make that look vulnerable. I would hesitate to say that commodities are leading the equities markets. I think they are two completely different classes. All right. Im wondering if the Oxford English dictionary is going to add dinger to the list this year. Thats a new one for me. Thank you, dennis. An old chicago board of trades idea. Were in the dinger. I got it. Its a euphemism, no doubt. Good to see you. Dom has the numbers, of course. Dom . So i got a lot of them. Im going to try to get through these as best as i can. Newmont mining. Shares are not trading as of the last minute or so. But the Gold Mining Company coming out with earnings per share, 26 cents in line with estimates, sales fall just a bit shy of 1. 91 billion, 1. 917 billion was the estimate. Well keep you apprise of any trading activity there. F5 networks, weve got that one up next here. Its up strongly. You can see theyre up by about 6. 5 . Earnings coming in 1. 67 a share. F5 Networks Revenues 484 million. Estimates for 481 million they also offer q4 Earnings Guidance that was above analysts estimates. They see it between 1. 72 and 1. 75 a share. Were going to move on to another company. Cyrus logic, those shares, as well. An apple supplier in the past. One of a particular focus. 54 cents a share. Analysts looking for 43 cents. Revenues, 283 million. Revenues expectations were for 261. Theyve also guided their Current Quarter revenues to between 290 million and 210 million. Beating the estimate for 274 million. And those shares up by 11 . And we want to bring you up to speed. Sandisk, those shares opened about three minutes ago. The stock up by about 8 on 199,000 shares. We told you before earnings and sales both beat there. A lot of semiconductor flash memory Type Companies bouncing back in the afterhours trade. Back over to you guys. Nice work, dom. Wow. Thats amazing. Thank you, guys. Disappointing drug data but our next guest thinks this drug could generate annual sales of at least 10 billion if it gets to the market. And he said the stock is undervalued by nearly 25 . Well talk about the bull case for biogen with him straight ahead. And of course, its been a wild after the bell earnings session. Its about to get even busier. Well get you the results from Texas Instruments. Thats the big one to wait for in a few minutes. Stay tuned. Biogen shares falling today. Oh were going to weve got Texas Instruments now. Who has that . Youre back again. Let me just catch my breath. Texas instruments up marginally afterhours. Up about a. 25 . This after the Company Reports earnings per share of 65 cents thats in line with analyst estimates. Revenues coming in. I mean if you want to call it a hair light. Its 3. 23 billion. Analysts looking for 3. 26 billion. They did also offer some guidance with the Current Quarter. They do expect again, at least Current Quarter to see about 62 to 72 Cents Per Share in terms of earnings. Analysts were looking for about 75 cents a share. So those earnings expectations for the Current Quarter coming in, maybe a little bit light of Analyst Consensus estimates. But, still, what we have right now, a stock that was down about 8 going into this number so far in 2015 is up by about close to a percent here. Earnings in line well say sales pretty much in line. The earnings estimates for this Current Quarter, a little below and what you have is a stock is up about. 8 . 1 2 million shares trading. Shares downgoing into this number, bill sara back over to you. Thank you. No doubt, well see you again at some point. Where were we now . Biogen falling today as new data on the alzheimers drug has been released. And while some firms such as Piper Jaffray downgraded from neutral to buy. Others still see an upside for that stock. Michael ye is one of them. Listed biogen as an outperformer and joining us now. And do you think the news was about expectations . That the results would go better . Absolutely. Look, the stock had moved up 20 into the event. The data was very good. It was not a home run, but it was still very good, and sold off a little bit. Were telling people to buy this dip here. We think the stock moves higher. Theres further followup data and theres more data to come. You look at the data its very simple that looks like a drug to us and we continue to be positive here. But for how long. How long before you start to see earnings streams coming from this . Well, you know, so this is in phase three. Moving to phase three now. The data about two years from now. The drug should hit the market by 2018. Take a step back as a longterm investor, this drug like you said, could be 10 billion. You put that in the model, you can get 35 or 40 of earnings. A 20 multiple is 800 to 900 per share. 400 up 100 down. That looks like a good risk reward to us. Do you take biogen over lily . Yeah i dont formally cover lily. What i would say there is different, different data there. Different population. And, you know that data looks interesting. What i would say is the biogen data looks very promising, and so we remain very positive on the biogen data. Already trading at 30 times earnings. All right, well leave it there with the bullish case. Thank you, michael ye. In the meantime time for a cnbc news update this hour with Courtney Reagan. Heres whats happening at this hour attorney general Loretta Lynch says a grand jury has returned a 33count indictment against dylann roof. Including hate crime and firearms charges. She says no decision has been made on whether to seek the death penalty. Well defense secretary ash carter meeting with saudi king soloman says he expresses reservations on how effectively it will be enforced. Afterwards carter says the king will visit the u. S. In the fall. Two men were held after being accused by the u. S. Attorney in new york of trying to cheat millions of people and a stop span case. The men are accused of manipulating trading in u. S. Securities since 2011, a third person still being sought. Well french farmers blocked roads and set fires to protest what they say are artificially low prices on meat and produce. They accuse retailers and Food Processors of squeezing their profits. Last night, they set fire to tons of manure that they dumped in a supermarket parking lot. That stinks. Thats your cnbc news update for this hour. Back to you. That is pretty gross. Thank you. Courtney reagan. Youre obsessed with it. Youre going to get it into every conversation. Dennis gartman special. Volatile after announcing earnings and, of course, that Strategic Review that david faber told us about and nominating to the board. Boy, look at how volatile that stocks been. Its been crushed this year. Is now the time to jump back in . Well talk about it after this. Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep them all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberyy apple scones smell about done. Ahh, youre good. I like to bake. With at t get up to 400 dollars in total savings on tools to manage your business. It took Serena Williams years to master the two handed backhand. But only one shot to master the chase mobile app. Technology designed for you. So you can easily master the way you bank. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . Lets take a look at how we finish the day on wall street with the dow down 68 points. Weighed down by a disappointing tech earnings. Mainly from microsoft and apple. S p traded down five and the nasdaq bearing the brunt of the selling down. 7 . Qualcomm were focusing on that now. Its moving all over the map on the afterhours trading. In addition to the earnings david faber announcing for us that it is in the midst of a Strategic Review in terms of a potential split of the company into two different companies. Qualcomm also would cut its workforce by about 15 . Lets get more reaction on what to do with the stock. Chris rolland joins us on the cnbc news line. Chris, thanks for joining us. What should investors make of all of this news. We saw shares pop in the afterhours. Q3 was generally in line. Q4, the guidance there was a large, unexpected fall in revenues. Almost 1 billion light at the midpoint. Theyre going to have very serious questions to answer. But, you know the Silver Lining here is its spurred obviously a big costcutting program. 1. 4 billion, 1. 1 billion in cash. This is above my range. I thought they were going to max out at 1 billion. This is quite positive for them. Chris, this is carol roth. I know this is a company that has a strong i. P. Portfolio. But i guess my question is is there enough strength to just trade off of that and not continue to make investments . Because when i hear about splitting the company in two and hear about cost reductions and workforce reductions to me that says were not reinvesting in the company. I once described this as willy wonka and the chocolate factory. They had about ten different pet projects going on at once. Some of which would not ever see the light of day or generate revenue for the company. So there was some fat that needed to be cut here. But at the same time, you are also going to cut some muscle. So you know their future road map, theyre probably going to pare that back a little bit. Chris, its kate kelly. Im wondering sort of where your score card would be in terms of jana versus qualcomm in this situation. It seems to me on the one hand jana got much of what it was asking for in terms of real change such as cost cuts but also the commitment of this Strategic Review about possibly splitting up the company. New board seats and so on. The cynic in me tells me there is a calculus that companies go through when theyre under activist fire. And one issue is adding one or two new directors to a 12plus person board is often regarded as a way to appease but not change too dramatically. And thats an example of something were seeing here. Buybacks and dividends are another key tool that Companies Use to kind of appease activists. And also qualcomm has bought a fair amount of time of quiet. And as david said the ability to focus, i think, until late next year with no proxy fights threatened. So all in, is it a win for jana . A win for qualcomm neutral . I would say its probably a win for qualcomms management. That 4q guide is pretty light here. I think under that pressure they had to do something. Some sort of appeasement. Id say this costcutting program is that. The announcement that they will potentially look at a splitup. But i really dont see how a split up of these two different divisions are actually going to add value at all. So im still very very skeptical that theyll end up doing that. But the costcutting program, jana certainly got that. All right. Chris, thanks for your time. Appreciate it very much. Thanks. Chris rolland. The stock continues to move lower here. Today was a big afternoon for earnings. And tomorrow shaping up to be much of the sailme. Amazon after the bell. Up more than 57 this year. But how will it perform after it reports . Well look at the clues of past post earnings trading sessions when we come back. Stay tuned. Approaching medicare eligibility . You may think you can put off checking out your Medicare Options until youre sixtyfive but now is a good time to get the ball rolling. Keep in mind medicare only covers about eighty percent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement insurance plans insured by unitedhealthcare Insurance Company come in. Like all standardized Medicare Supplement insurance plans they could help pay some of what medicare doesnt, saving you in outofpocket medical costs. Youve learned that taking informed steps along the way really makes a difference later. Thats what it means to go long™. Call now and request this free [decision guide]. Its full of information on medicare and the range of aarp Medicare Supplement plans to choose from based on your needs and budget. 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Hoping innovations like this and like it can discover here can reinvent the line and kickstart sales. I talked to nestle usa ceo in a cnbc exclusive interview earlier today and asked him, why double down on frozen with brands like lean cuisine when theyre hurting with the consumer . Weve launched a range of organic product, for example, within lean cuisine. And actually thats doing very well for us. And you know in the short space of time its been launched its actually not just in line with our expectations, but exceeding our expectation. Im a big believer you know that an actual people dont have an issue with frozen or chilled technology. What they have an issue with is actually the food thats inside that, thats inside that frozen technology. Were starting to see products for example, broader ethnic cuisines making their way more and more into frozen. Were starting to see products that are focused on certain lifestyles lifestyles. I mentioned protein. Im starting to see producers actually reacting to consumer requirement requirement. Thats something we fail to do over the next couple of years. And nestle by the way, does have a third of the frozen aisle. Owns brands like tombstone. And its a huge conundrum because it really is not on trend at all where consumer tastes are going. It is a big business for them. Its somewhat surprising they are putting so much money into this business instead of dressing it up perhaps for a sale. It says to me they really do believe. At least for the interim. If you go to places like trader joes or whole foods or even like target. There are these woodfired pizzas you can get with buffalo mozzarella and spinach and upscale. And thats sort of the trend. If youre going to be in frozen its interesting, and you tell me if this was what he was getting at. He goes to say people are more concerned about whats in the food than its frozen. You dont see a label like that in their suite of products. Do you think theyll try to acquire one . They are moving where the consumer is going. He is trying to drop artificial ingredients for instance. Getting a lot of traction right now. Thats one of the biggest issues with the frozen meals is the high salt content. As the consumer of many frozen meals, i know this very well. Recently . I dont cook. You eat frozen. I dont cook, for me, this is a light do you live in a city where you could step out and get any food you want . Any given time we might have a frozen pizza in the freezer or frozen sausage or something, but its organic applegate. Theres no excuse to there is no excuse to eat frozen joes diner mac and cheese from trader joes. The best. There you are. With all due respect, my dear friend there is no excuse to eat frozen food anymore. None. You can get fresh anywhere. I know weve got to go but local agriculture and the whole Foods Movement which we talk about all the time. We belong to two csas. Maybe thats a crunchy brooklyn thing. Well see what comes out of the r d center anyway. Aint that a dinger. Aint that a dinger. Amazon reports Second Quarter results tomorrow after the bell. And up next well take a look at what those earnings could mean for its Stock Performance on friday. What history has to show us, next. Well the earnings are not slowing down this week. Amazon reports its Second Quarter results after the bell tomorrow. Always a volatile one. Deirdre bosa looks at now how shares have performed both with earnings beats and misses. Deirdre . Hi guys. Well, in a word it is inconsistent. Half the time amazon beats and half the time it misses. But remember amazon doesnt trade like any other stock. It is heavily watched, heavily traded. And it rarely makes any money. Now, when amazon does beat earnings expectations, not much actually happens to the stock. Its pretty much flat the next trading day. But when amazon misses expectations investors are more likely to punish shares selling them off 60 of the time and pushing them lower by more than 3 on average. This is the next trading day. Also the trading action seems to be driven largely by growth and ecommerce plans. The biggest pops after earnings over the last five years were seen in quarters where amazon has said it was going to be making Big Investments or it has reported strong holiday sales. Ill give you guys an example here. In q2 of 2011 amazon income while it fell well short of forecasts but the company said it was going to be ramping up investments anyways. The next trading day amazon and those shares popped by nearly 8 . So beat or miss tomorrow guys the data suggests that amazons stock action is more likely to move on breakdowns in growth areas. Watch out for stuff like amazon prime as well as those web services numbers. Back over to you. All right, deidre good to see you. Thanks deidre. There was certainly a barrage of earnings after the bell. Up next were going to recap some of the big movers the afterhours trades and any comments we got from the Conference Calls. Look forward to tomorrows results as well. Well be right back on closing bell. Well it was another busy day and busy afternoon for earnings. Yes we had a whole barrage of numbers out today. Dominik chu here to wrap it up in one fell swoop, dom. I love these days. United rentals first of all down five, almost 6 right now. The Company Reports earnings of 1. 95 beating estimates for 1. 78. Revenues slightly below and they also cut their full year revenue outlook due in part to weakness in oil and gas. Those shares on the move. Qualcomm just to reiterate 99 cents a share, that beats the average analysts estimate. Also revenues just about in line, maybe a little bit light. But of course the he headlines there with regard to whats happening with i Strategic Review may be driving some of that trade. Also sandisk shares coming out 66 cents a share, double the average analysts estimate. Sales also coming in slightly better as well. Those shares you can see moving here. Las vegas sands also reporting in line with analyst estimates and sales may be slightly below. You can see those shares as well up by about 4 guys in the after hours trade. Back over to you. Nicely done. You wanted to do the big picture here. How do you think were doing . I do not think were doing very well. And im going to put earnings aside for a second because obviously lots of Financial Engineering and buybacks but if you look on a revenue basis year over year we are down going into today and i think we had somewhere a little over 60 of the companies reporting. Were down about 5 on revenue. Even the gogo tech stocks are only up about 5 . Overall this is not a happy story. And supposedly we have all these wonderful consumers who are going out and spending. Certainly not being shown in the revenue. What are you watching kate . I watch commodities a lot as you know. And one interesting thing is i talk to these Money Managers today. Theyve just founded a new firm called argon capital management. Theyll deplay 400 to 500 Million Dollars in commodity trading. They think its a good time the lack of liquidity creates Commodity Traders and count counterintuitive counterintuitive. Counter to a lot of other people. I think its going to be a tough slog but then again if prices go down a good trader can be short. Thats how that works. Ladies, thank you all. You look like a stoplight here with this color scheme we have going. Fast money coming up now. Melissa lee. And thank guy adami for periscoping tonight as well. He says hello. And karen says call me. Thanks, guys. Fast money starts right now. Live from the nasdaq marketsite overlooking new york citys times square im melissa lee. Our traders on the desk are pete najarian, brian kelly, Karen Finerman and guy adami. Cnbc has full coverage of all the afterhours action continues. Josh lipton listening to the qualcomm call. Mary thompson all over American Express, that call just getting under way. And Courtney Reagan is on top of the Las Vegas Sands call. Well bring you all the headlines as they break along with the trades. But first to the biggest mover