Fiveday losing streak for stocks in some six months. Worries about chinas market meltdown and earnings here at home unsettling investors. Josh, is that really whats at play and what has more weight on the psyche of investors, or china . I think the china thing is really weighing on the psyche of investors but its important to keep in mind whats happening in china is really happening against the backdrop of a weakening picture for the market and the reason why thats important to people outside of just a handful of technical analysts is that people actually own stocks and when they look at their portfolio every week, they see less and less of them green, more and more of them red. You see this in decline, highs minus lows, up volume versus down volumes, the percentage of stocks above their 200day moving average. That number continues to plummet each week. People feel less and less good about the advance. And now you have this eightmonth consolidation period where stocks essentially have gone nowhere but people on the inside of their portfolio have less and less to smile about. So the china thing is important, but when you look at the amount of sectors and individual securities that are either flat or now losing people money, and that continues to grow, youve got a bigger and bigger danger of an actual correction for the overall benchmark indices which are now being held up by my count nine or ten stocks. So, joe, china says theyre going to continue to buy stocks and support the market over there. You make some big changes in your portfolio. Youre back down to holding one stock again. Whats going on . What does that say about your world view of where we are . My world view of where we are is consistent with what josh is talking about. What pete and jon have talked about. Stocks have gone nowhere. Lets look fundamentally in terms of earnings for the s p 500. Youve got Profit Margins that have contracted 60 to 75 basis points. Its a very difficult environment. What am i doing personally . Getting myself back in the game the first half of the year. Life takes you in a different direction. My attention was not fully on the markets, back into it now im trying to trade around positions after the greece resolution you could call it being all in. I came up with five stocks that i felt had positive momentum. Friday at some point i took them off. Why sell facebook, though, into earnings or ahead of earnings . We have trades we could do in the portfolio. I am going to be very active. Thats the only way by getting in and out of the market. If youre sitting there and buying and holding i think youll be frustrated. Thats what im doing. If you look at where i got out on friday, its worked out fine. The nasdaq composite less than 2 off of its closing high. The Dow Jones Industrial average is about 5 or thereabouts. Do you think the market is telling us that markets are about to get worse or are we going to go the other way . When you look at volatility, its shot up. Its up through the 200 moving day average. We were below and now here we are and weve packed up well above those. Weve had such great numbers. Now were getting weaker and getting much more energy focused. Some of the tech companies, some of the chip names that have been under huge pressure. So to answer your question, scott, you have to be in the right place at the right time. Thats what the market has been offering us. I think you have to trim into some of the gains and now that youve seen the pullbacks again, now its time to get the Shopping List back out. Whats taking place is going to impact our stock market here. I dont think so. If you look at the companies that reported that did well, the consumer discretion, starbucks, gm, they all had great quarters and china was part of it. I do think the whole macro, whats going on in china, is that a bellwether because commodities are coming down, thats whats scaring people for Global Growth and i think thats what you have to watch for. Anyone that misses numbers in growth will get hurt. I think its important were dismissing quickly whats going on right now in the chinese stock market. Number one, when the government pulls back on the subsidies of them being the hedge fund, so to speak, who is going to have the confidence to buy the Chinese Market itself . Im suspicious that anyone could and then it does impact us here because when you look at the resource trade, when you look at energy, you cant just have it one way. On the way up we talked about oil accelerating for multiple years. Why . Chinese demand. Agriculture, steel. The upset in the chinese stock market is going to have a direct filter into the chinese economy and that question is open. I disagree with that premise. The Real Estate Market is much more important than the stock market. We cant make the assumption that the chinese have the same kind of composition of savings that we have here in america. The ashares market, that being less than 20 , the median households net worth in china is a fraction of what were doing here in terms of 401 k s. Thats number one. Number two, lets not act like a sevenmonth rally in chinese stocks produced, its been headed down the entire time regardless of what you think the trickle down effects might have been. And realistically its still up on the year. Chinese stock market doing better than the s p 500 year to date. Thats a news flash for you. So lets not act like theres some tremendous knock on effect. The real estate picture is more important there. It will be for the foreseeable future. Im not suggesting the real estate picture is great there but its not quite the same bubble bursting that weve seen in the shenzhen and the shanghai composite. Its not like our market ripped when china totally. Another voice here, the strategist at wells fargo, brian, welcome. Joining us on the phone. We had an issue with your camera shot. Were grateful you joined us nonetheless. It probably worked out better this way. I have a face for radio. Your target of 2300 for the s p sounds aggressive considering where we are today. Do you stick with it and why . I dont think the Chinese Market will have an adverse effect, maybe short term. Its really that sentiment thing that we have to focus on. Durable goods that allowed me to upgrade my estimate for Third Quarter from 27 to 28 so my revisions are going up. Its really that sentiment question. When we get through this shortterm fiasco with china and also uncertainty about what is the fed going to say, when we get through that, i think we could see almost a burst to the upside for the s p 500. Where i really like it is on the tech heavy nasdaq. Growth estimates for the long term are still a little bit too low for a lot of the business to business type names within the nasdaq. Brian, its josh brown. If you think tech is the way to play, the u. S. Market coming back, will it not matter that a lot of the end markets for the i goest u. S. Tech companies are overseas and are not having the same kind of positive uptrend in things like employment or Business Confidence or Consumer Confidence or look past that and focus on u. S. End markets only . I think you can look at markets. Its on a name by name basis. Broadly speaking 60 of revenue coming from outside of the u. S. , primarily in europe. Its a question whether or not europe can grow faster than what peoples expectations are. According to the imf we only have 1. 5 gdp growth estimated for 2016 and they are at 2 , i have no problem having that exposure. What kind of upset does the marks seek . I think that right now the longer end of the yield curve in the u. S. Isnt perfectly positioned for a fed rate hike. I would rather see the tenyear treasury closer to 2. 75 so we could see a movement maybe an abrupt movement going to the 30 year. If you look at the range of the yield going back to slightly before, the two year and the five year are close to the middle and the upper part of that range. Then its to the lower end of the range. The long end moves up. I like high yield. Brian, youre not concerned for materials for mining, for resources, for energy and the significant waiting that they have on the high yield given the acceleration and the selloff were seeing currently . I think that they actually went through the correction already when you had oil going down from over 100 a barrel we did have a bounce off of 44. I think we already had the correction so people have low expectations. But thats only about 16 , i think, of some of the bigger indices that is constructed differently. So im not that worried about it since you can be selective about maybe shying away from some of the energy names if youre not comfortable with that commodity exposure. You think exxon is a name to play here. Maybe a bit after contrarian. I dont know. A lot of your picks or views sound contrarian. Recommending high yield. Thinking we have 250 points left in the s p over the next five months. Maybe it is a little contrarian but i prefer the term realistic but thats only because thats the way i look at the world. I dont think well see earnings roll over. I dont think the fed is going to hike rates too quickly and as a result i see really for longer term investors, im talking about 18 months out. I think that these are actually very good entry points. Brian, thanks for coming on today. Well talk to you soon and hopefully well see you in person. Thank you. What do you think about the view . Too optimistic . He says hes being realistic. I think hes being too optimistic too quickly. I think we have too many head winds still for the next probably six months to a year. Still have foreign currency. You still have issues overseas in terms of growth and then right here in terms of rate hikes. We do one, we do two. The market is not going to take it too lightly especially in areas that are rate sensitive. Brian talked 18 months. Thats very important for folks. When you talk about a name like exxon mobile, youre looking at Oil Prices Going down. Joe is talking about the commodities getting beaten up. I totally agree. I think theyre death right now. The pressure to the down side is amazing. Exxon hitting another low. I like the fundamental story behind exxon. They can return cash to shareholders and all the rest of that. As oil prices drop, it seems to me thats another one of these knifes i think youd want to wait and wait for the opportunity to see oil turn around and then you can use that longterm opportunity. And now you have to think about, okay, the dollar making a rebound, right, the euro is up today. I mean, we tend to forget sometimes a lot of the good information that were provided. And jeff curry gave us the road map many, many months ago and he said his biggest concern was a roll back over to these levels were at now. I think 43 and change is the low for the year for oil. I think on our show this wednesday, right . Jeff curry is on this wednesday. Well hear from him. Perfect timing because we may be very close to 43. Again, those are levels that are problematic in the highyield market for a lot of these companies. Coming up, health care heats one a mega merger today. Big pharma earnings on deck. Legendary Health Care Investor with his take on where the next deal will be and how hes putting 15 billion to work right now. Plus, our call of the day, barron says one old tech giant could rally 50 over the next few years. Will tell you the stock and it will tell you the stock and if our experts are equally as bullish next. Opinions. Theres no shortage in this world. Who do you trust . Whose analysis is accurate . How do you make sense of it all . A simple, unbiased stock score consolidated from the opinions of independent analysts. Is that too much to ask . Nope. Equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. I can offer you no interest sittifor 24 months. Oday thanks to the tools and help at experian. Com, i know i have an 812 fico score, so i definitely qualify. So what else can you give me . Same day delivery. The ottoman . Thank you. 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. Were back and its time for our trader blitz. First up is ubs. Better than expected profits. Gains in Wealth Management. Pete, what do you think . When you look to europe, Wealth Management again carrying this thing. The stock, the reason its not performing today, very much like morgan stanley, ran into these numbers off rest of the earnings. Thats why its relatively flat today. Any pullback, i like the opportunity here and deutsche bank. Throw up dks. Cowen says Dicks Sporting Goods is the best athlete. Chelsea collective now moving to womens apparel. I think its a great move, a strong move. This is a name unchanged on the year. Pulling back to right below 50. Golf being weak. Apparel is the story. Men and now women. Qualcomm upgrades. This stock has been in the doghouse. Definitely look at the cost structure, what google as done and then break up the company and really acquire the top line. Josh, best buy. Going to have the apple watch in august. Thats great. Still going to 20. No real support until then. I hope they sell a lot of watches. I dont have an issue with the company itself. The stock is uninvestable, down 7 this year. The Consumer Discretionary sector is up. You should listen. Anyone want to take the other side. Pete, 20 . Best buy, there are some struggles out there. And this watch, ive been i was one of the first out there saying anticipation of this watch. All right, coming up. Proofing your portfolio. Weve got your game plan for how to protect yourself from all of that volatility plus take your position, twitter versus facebook. The desk setting up for social media earnings and theyre all liking the same stock. Im sure we can guess which one as well. We want you to weigh in. Which would you rather own, facebook or twitter . Tweet us at Halftime Report with your answer. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. 40 of the streetlights in detroit, at one point, did not work. You had some blocks and you had major thoroughfares and corridors that were just totally pitch black. Those things had to change. We wanted to restore our lighting system in the city. You can have the greatest dreams in the world, but unless you can finance those dreams, it doesnt happen. At the time that the bankruptcy filing was done, the Public Lighting Authority had a hard time of finding a bank. Citi did not run away from the table like some other bankers did. Citi had the strength to help us go to the credit markets and raise the money. Its a brighter day in detroit. People can see better when theyre out doing their tasks, young people are moving back in town, the kids are feeling safer while they walk to school. And folks are making investments and the community is moving forward. 40 of the lights were out, but theyre not out for long. Theyre coming back. How about this call from barrons, they say a 50 move as the Company Transitions to a Cloudbased Software company. Its our call of the day. Sarat, is it a good call or not . I like the call. I dont know if youre going to get 70 but microsoft has turned the corner. Steve balmer did a couple of dumb things. Hes now focused. I agree. Hes doing everything right. Weve talked about this when they were out there looking for the ceo search. Hes been the best choice. This transition is going much better than most of the other tech giants out there that are still trying. I look right towards intel. Loved it for a long time. Their transition away from the pc reliance forward has been difficult when you look at the way microsofts maneuvered much better and certainly focus from the cloud area. That would mean that this transitions even faster than i would expect. You know, one of the biggest variables is what is the overall economy and stock market do, number one, and then the other thing thats totally unknowable is how competitive do they get on cloud price and services pricing, frankly, in the next couple of years. We know what amazon is willing to do to maintain market share and take from others pretty much anything and we know that google has made this a priority area, so its really hard to say if 70 is realistic. If that business becomes like the mobile business, then there might be room for more than two players, so i think its a little bit early to be banking on a 50 move on msft. You wouldnt expect it to be out of the question. I thought wed get 50. I think the question you have to ask yourself is over the next three years, do you think microsoft can outperform the s p and the answer to that is yes. Do you own the stock . We own the stock. I agree with you. Its going to beat the s p over the next three years. Theres nothing new here that barrons said. We are all focused on cloud. That was the key to the stock. It was up 49 and people take that. Is cloud going to be as profitable a business as microsofts prior incarnation, selling office and selling windows . Those were huge monopoly businesses and youre right, there is this competition coming. I do think what microsoft is not doing is getting into businesses they have no business being in. Throwing money at things. What he does, he gets out of a couple of other businesses, gaming, things like that, you have a highly focused Software Company that gets a higher multiple. Youll get a higher multiple, great cash flow and a great dividend. The reason i dont think, joe, why it didnt get to 50 is if the revenues beat the previous year, that would have actually been more impressive. The problem is were beating on earnings, missing on revenues. If that number could have been more impressive, that i think would have sent the stock higher. Thats what this earnings season is all about. Who can beat that. Most arent. Most are boating on the earnings. Coming up, big buyouts, big earnings in the Health Care Sector this week, top fund manager sam isley who has allergan shares his new plays. Protecting against chinas down fall. Our experts tell you how to find the potholes in your portfolio that could make you vulnerable. A number. S 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. Hi. Hi. Hello. Hi. Hi. Hi. Hi my names josh. Kelly. My name is raph. Steve. My name is anne. Tom. Brian. Krystal. And i am definitely not a robot. Im one of the real live attorneys you can talk to through legalzoom. Whether its for your business or your personal life, dont let unanswered legal questions hold you up. Because were here. Were here, were here, and weve got your back. Legalzoom. Legal help is here. Having Necessary School supplies can mean the difference between success and failure. The day i start, im already behind. I never know what im gonna need. New school, new classes, new kids. Its hard starting over. To help, sleep train is collecting School Supplies for local foster children. Bring your gift to any sleep train, and help a foster child start the school year right. Not everyone can be a foster parent, but anyone can help a foster child. Im sue herera. Here is your cnbc update. Boston mayor delivering a blow to hosting the olympics declaring he will not sign any document that puts 1 of taxpayers money on the line for cost overruns. Lawyers for boston gangster Whitey Bulger have asked an Appeals Court to overturn his racketeering conviction. His lawyer arguing his rights to a fair trial were violated when he was barred from testifying about his claim that he received immunity. Serving a sentence of two life terms. Six workers have been rescued from a flooded coal mine in northeast china. Four have died and rescuers are racing to search for five other workers who have been trapped in the mine for about a week now. And joe jackson, the father of the late michael jackson, has reportedly suffered a stroke during a visit to brazil. The hospital in sao palo says he is suffering from an irregular heart beat. And that is the cnbc update this hour. Scottie, back to you. A big week for pharma. Today big m a activity as teva announces it buys allergans generic unit and tomorrow we get earnings from pfizer and merck. Reporter the 40. 5 billion teva is paying for allergan is primarily in cash. People are starting to wonder whats allergan going to do with all of that money . Many say they can go elephant hunting, looking for pretty big buys. For teva this makes it one of the top big players in the world. Folks are responding on the teva and allergan side. Teva is dropping its bid for mylan. You see the stock down about 14 . So folks are wondering whether this puts pressure on mylan to do something including up its bid for perrigo. Ear it will get bought out by mylan. You see a lot of upside. Looking ahead to tomorrow this ties into today because were going to be hearing from merck and pfizer, something people are talking about in health care. Folks will be listening to whether they could be interested in buying the newly shrunk allergan. Thats something on the call. People will be listening to how the launch of the new Breast Cancer drug is doing. The potential m a activity. For merck they have a cancer drug on the market. People will be listening to that. All of these Multinational Companies will be a dollar story. What is the impact of that. For gilead, people will be wondering what theyre going to buy. Also the health of its hepatitisc franchise and what the growth trajectory looks. Gilead often has been a bellwether for sentiment in biotech. As things have been looking so negative recently folks are wondering whether gilead can bring the whole industry up, scott. Wow, meg, theres so much to keep your eye on in your space. Meg tirrell with the latest there. Our next guest fund is getting a boost from the teva deal. Allergan. A toprated fund manager and the fund that invests exclusively in health care. Joining us live, sam, good to see you again. Thank you, thank you. Meg really set the table for us. We could almost do a rapid fire thing on a bunch of different topics. Let me get you first on allergan. If they go elephant hunting, who do they come up with . First of all, they get cleaned up on the balance sheet. The combination that came before us. A pile of cash, cash positive or maybe just about flash. They can go elephant hunting. A big market cap. They made a big effort to build up the brand of products and will do more of that. Thats surely what we would be looking for. What kind of name what should we keep our eye on in that space . You can go up and down the line. It has been out there that biogen makes a good combination. They just got trashed last week. Not so great clinical trials. Theyre less expensive than they used to be but maybe rightly so. There is material to be had. I was going to ask you, of course, about biogen. The stock selloff way overdone. If nothing else, it remind us of the risks in investing in some of these Companies Based on drugs that are perceived to be big winners that may not come to fruition. It is highly risky, of course. Something like one drug out of ten that enters human trials ever makes it to market. They have several programs that are uncertain, uncertain market success. Well see how that goes. Mroes, keep in mind theres a lot of risk. Biogen, of course, does have earnings. When the stock goes down 20 in a day. Didnt buy on friday. Okay. Moving along, mylan and perrigot, does that happen . I think that happens. Mylan raises its bid . We are likely to do that. Their stock got hurt today. That makes the stock a piece of the transaction more difficult because the stock is not worth what it used to be. I think that gets done and people at the top will make it happen. Sam, mentioned consolidation across the space and specifically talked about pfizer and gilead being one of the others. Do you see that move as well out of both types of companies . I dont make out what pfizer is up to. They are supposed to do a big deal for the last year or so. And nothing has arisen. There was an effort to combine with astrozeneca but all quiet on the eastern front. But well see how they do. An Earnings Release is not enough to be a reason to announce a big transaction, but ill be quite interested to see what they do. I do expect something to happen. Sam, its no wonder your fund has done well, the overall climate for health care, biotech and the like has been extraordinary positive. Does that continue . I think it continues. Earnings are good. There is disruption, i would say, in the industry. Its not negative disruption. The Affordable Care act has shaken things up. We have a lot of confusion in the health insurers. We have a lot of Research Output record output out of discovery companies, some new medical devices around. We have lots and lots to do. Meg said the same thing when she went through her rapid fire on all the news thats arriving today, tomorrow, and in the short term. I think theres a long way to go and a lot of places to profit. Whats your top pick or top couple of picks in this space today . Top several picks, id like to go with big pharma companies, bristolmyers still for their cancer franchise. Very good new heart drug and a pretty good one for psoriasis. More on the biotech, got approved with their cholesterol reducer which is a dramatic advance in cholesterol reduction that came in friday. We think that would ultimately go up. Theres a bull bear fight right now. On the hospital side, the provider side, i would stick with hospital corporate america, really unique holdings. I like that. Im also very hot for robotic surgery and Intuitive Surgical is the guy who does that best. Sam, its great to talk to you as always. Theres so much going on. Its amazing. Sam isley again. Pete, i go to you. I know youre hot on this space. You have pfizer and merck. Merck has been disappointing. It flew to the upside. Then you look over at bristolmyers, another name that was over 70 has pulled back as well. You see disappointment but a lot is due to the fact many of the names shot up into the earnings. I think merck of all the names i do hold, i hold multiple names in the space, one of the few areas it hold stocks rather than options. I still continue to hold these. Merck is the one im concerned about most. Josh brown . Just to me, i think mylan is the most interesting. And you know a lot of people are talking about this merger today as being something really exciting. I think its more defensive in nature. When you look at the maturation of the generic marketplace and a lot of those blockbuster drugs like lipitor, that has been taken. Whats really next . Next you have big competition coming from asia possibly and you really dont have that many blockbusters in front of you that become the next big hit generic drug. Mylan probably has to do something. Whether they do something offensive, something more defensive is yet to be seen. We know they dont want to be in play. The most likely outcome is they do get the deal but at what cost . Pete najarian finding something unusual. Stick around to find out what that is. China, stocks suffering the worst drop in eight years. So who could take the biggest hit in the long run . Well take a look at the companies with the most exposure over in asia and that is up next. Coming up on power lunch, the eight tentacles of china. How fees could have ripple effects in asia, europe, the u. S. Currency, gold, copper, the fed and the etfs. Plus, were expecting a major announcement during power lunch about Infrastructure Spending in america. So were going to bring you the infrastructure stocks that you need to watch and it is the second biggest event of the year. Well look at the winners and losers. Chinese stocks seeing their biggest oneday drop. Dom chu breaks down the most with the exposure to asia. This idea chinas tentacles are everywhere, the second biggest and has an overarching influence with the economies all over the asiapacific region. You look here at a company like boeing, 23 billion worth of sales. The same with g. Echl. Apple gets about 31 billion worth of sales from the general asia region. That begs the question, how important are these billions of dollars to the overall scheme of sales here . If you look at a company like western digital, solid state drives, stores for computers, 55 . Very levered to whats happening with the asiapacific region. Also micron, flash memory, that sort of thing. The 30 million plus represents about 57 so well over half of the overall sales and then qualcomm gets around 84 from its sales from the asia region. A lot of companies dont break out specifically, scott, china in particular. A lot of companies dont break it down by the specific country but go by region and china is dominated by the economy that is china. Some of the stocks if things do get progressively worse or conversely get better. Okay, dom, thanks. You look at these stocks and you see the percentage of the sales to asia, sarat, youre not going to buy one of these stocks because they have a large exposure . Youre not going to buy qualcomm because it has 84 of sales . Micron 55 . Its too late to say i dont want to do it because youve gotten the slowdown already. These are companies in spaces still growing. Apple said their largest growth was in china. You get a qualcomm, companies that are growing. Consumer discretion, young brands, is growing in china. What you dont want you want to avoid we talked about this before is commodities. Thats an area because what china is not doing is spending on infrastructure. Theyve spent a lot on infrastructure. Now its a consumer driven economy. So whats really going to get hurt . Get oil, copper, all the commodities. Copper is lowest today in six months. And then the growth from there is not going to be what you saw it before. The law of large numbers will come at you, too. Where is demand going to be coming and where is supply coming . I agree with sarat. A company like boeing, theyre signing 20year contracts, and weve just seen the chinese gdp contract from 12 a year to maybe 7 if you believe what theyre saying now. That order book gets bigger and bigger and bigger. I think its tripled, the amount of planes and parts theyre selling into the country. I dont think theres a 11 linear readthrough between a bad few months in the chinese stock market and the amount of money that u. S. Listed companies can expect to be doing in commerce with that country. I think its a very dangerous game to try to play that with your individual names. Joe . An area i would not look for any opportunity. Talking las vegas, sands . Casino names . Those names continue to struggle. On a macro basis you want to look globally and say, okay, who are the potential winners, the potential losers . The temptation would be youll have european equities reporting earnings very shortly here. The temptation would be to step in and buy some of the european names. I want to take a waitandsee approach. Talking about a significant trading partner. The other side of that is look at the selloff today. I think look at Japanese Equities. They look to me to be the best in breed in this decline. I think Japanese Equities is a place you might see capital go as it goes out of other places in asia. Pete . U. S. Centric is the way to go. We talked about the one thing you have to your point the infrastructure play. Look at caterpillar. This name has not been able to get out of its own way. Another 52week low again today. Youd be a buyer of that . I would not. I you would not be . I would be very, very patient to be able to step into that name right now. All right. Were you going to Say Something . Quick. So in china, what else is growing, if you see auto sales, forget the oem. The suppliers. Theyre going into more emission control. Look at the delphi. Theyre going to sell into those. Coming up, is a tale of two stocks. Julia boorstin will break down the latest headlines ahead of the earnings coming out this week. Next, what name does our desk prefer . Plus, we want to hear from you ahead of those results. Which stock would you rather own . Tweet us Halftime Report. Whoa what are you doing . Putting on a movie. Im trying to watch the game here. Look i need this right now ok . Come on i dont want to watch that. Too bad this is happening. Fine, what if i just put up the x1 sports app right here. Ah jeez its so close. He just loves her so much. Do it. Come on. Do it. Come on yes awww, yes that is what im talking about. Baby. Call and upgrade to get x1 today. Wig week for social media earnings. Twitter reports tomorrow. Facebook on wednesday. Cnbcs Julia Boorstin here with a preview. Julia . Reporter well, scott, while expectations for facebook have been growing, twitter is expected to meet lowered projections and thats reflected in the stocks moving in opposite directions. In the past three months facebook shares have gained nearly 16 while twitters have lost 34 . Analysts expect facebook to grow revenue 37 . But investors will also be paying close attention to user numbers for facebook as well as for the rest of its family of apps. Thats whats app,enger and instagram and also well be looking on commentary for potential to make money from these common services. Meanwhile twitter is projected to grow revenue 54 and earnings per share 117 . But thats off a much smaller base to just 4 cents per share. With the midst of twitter with the twitter in the midst of a transition, it is hunting for a permanent ceo and working on a product makeover to launch this fall. Investors will be listening to any guidance about the companys Long Term Strategy and analysts wont be surprised if the company tries to get all of its negative news out before putting out a new ceo in front of the company there. Certainly a fascinating quarter to watch twitter in particular. Jewulia, thanks so much. Josh, conventional wisdom says, facebook obviously would be the better one. But you have to think about the potential up side at this point in each stock. Totally agree. I think which of these two you decide to be long ahead of earnings, if either at all, says a lot about what kind of investor you are. If you are a trend follower or a momentum investor, or somebody that really likes to feel like theyre in the in crowd, youre probably betting on facebook because they always know the right things to say, they always exceed, they always give great guidance. If youre a contrarian by nature, maybe you are looking at twitter. Certainly not from a valuation perspective but frankfurt j the standpoint of how much worse can expectations yet. They have half a ceo, for crying outloud. I dont know you need to do either trade and frankly, i wouldnt be pursuing either of these as an earnings trade. But i wouldnt be afraid to be invested in either one of them either. Theyre both interesting for very different reasons. We asked people to vote. It was close. People preferred twitter at this positi position. Theyre not stupid. Wait a second, theyre not stupid but i dont want to call anyone stupid but i think the general nature of most people who are involved in the market itself thats why its difficult to do is t isnt a easy business. People think about how much money can i make. People look at where twitter is and where facebook is. Obviously which stock is going to grow more over the next year or two . Which could you lose more money in. Think about it that way. The obvious the obvious answer to that right now given where the Business Models are twitter. They havent proved themselves. They havent done what facebook has done in terms of taking mobile they are so low at this point. How do you know that . Analysts look at what the stock has done its not going to take much. Could it go to 25 . I dont know. Right. So i dont want to take that chance. Analysts who are longterm bullish on this stock but shortperm pessimistic, theyre coming out with things already dont expect the big beat on mau growth, for example. Or dont expect any progress on the ceo search to be talked about. Those are the things that would have a really positive impact on the stock if they were announced and the analysts are already saying dont bet on it. So i dont think theres a lot of big expectations built in. But to joes point, who knows if this Company Comes out and says they really havent proven anything yet. We havent had two consecutive halfway decent quarters. Weve had a couple of great quarters and a couple of really lousy ones. You could have a really big loss here if youre betting on the short term. I agree. I think twitter speculation, facebook long term, maybe you get it on pullback but there is a business model. I dont see one right now on twitter. Three hours left in the trading day. Well look ahead to the earnings on tap for tomorrow, including ford, dupont, u. P. S. , many more. Get the play books. Next. When a moment spontaneously turns romantic, why pause to take a pill . And why stop what youre doing to find a bathroom . Cialis for daily use, is the only daily tablet approved to treat erectile dysfunction so you can be Ready Anytime the moment is right. Plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use. Insurance coverage has expanded nationally and you may now be covered. Contact your health plan for the latest information. Here at td ameritrade, they work 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. 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 . Were back. Pete, you have some unusual activity in a beer name . Yeah. Budweiser. Interesting name. Name bounced right off the 200day just a couple of weeks ago, got up, then pulled right back. Right near 123 a share. The september 1. 30 calls. About 3,100 open interest. 5,000 of those traded in open hours trading day. If i could get in this front of earnings and Everything Else thats coming in front of us right now in terms of budweiser, id love to be in it. I dont want to force it. I have a bid in there now, i just havent gotten filled yet. Before we get to power lunch, lets talk about the earnings playbook here. Sarat. Tomorrow. What do we like . Or today. Today or tomorrow. We got ford, u. P. S. , baidu, dupont. I like ford. Think well hear about you in the f150. The new aluminum ford. U. P. S. , Global Growth. Dupont is a hold. I think they have a whole bunch of things to work on. Baidu is a hold. Fedex has performed better year to date, i think both can get momentum though in the second half. I looked at josh and said pete. We do look alike. I think u. P. S. Is the most interesting setup technically. This is a stock thats bounced off the 93, 94 level four times going back to january 2014. This would be the fifth. Pete, your view here. U. P. S. , like it. Ford, love it. I think it is going higher. Baidu . Baidu i think is a hold. I think it is notouch right now because of everything we knows going on in china. That does it for us. Power begins right now. Scott, thank you very much. Tyler mathisen here. Mandy drury will join me in just a moment from the new york stock exchange. Behind me is an octopus. Were just using it to show how much reach china has in this global economy. The picture in china impacts u. S. Stocks, european stocks, etfs, gold, copper, the fed, currencies and more and over the next two hours, were going to tie it all together in an octopus tentacle and give you ideas on how to play all eight of them. Because it is such a big day for stocks, mandy is at the nyse. Hey there, ty. Hello, everybody. A lot to get to on thi