Transcripts For CNBC Fast Money 20171004 : vimarsana.com

Why are you advocating for that . I always advocated for title vi i only advocated for title iii because it would prevent the people from puerto rico suffering freiggreat losses the title iii proceedings are going to a mediation type effort when rational people can discuss things, we can get to good outcomes reporter retailers across the world look for the holiday season, black friday, to get them into the black. When i think about puerto rico, i think about that same period of time, starting november, december, january, where the influx of tourism and cash comes through. If that doesnt happen, how do you prove out your thesis that a reorganization of the debt is even something that you can service . Well, heres the thing. Tourism is an important part of our economy. But we were really underutilizing tourism in general. It only represents 7 of our economy. When we look at, you know, pharmaceuticals and so forth, that represents about 46 of our economy. So that is really what were making sure we can focus on. Again, the aid package that we get has to consider not only the devastation of puerto rico but also i would say a runway so that we can get government functioning effectively, so we can start making changes we recognize we wont have much revenue at the onset, but we can start rebuilding reporter kelly, a couple of facts that i want to point out there. You can serve in the United States army, navy, you can serve in the armed forces but you cannot vote if you live in puerto rico. That is correct reporter and the number of Armed Services on the ground is unbelievable the big challenge is creating an exposure for what Puerto Rico Brings to the table. Obviously the devastation is far and wide but the real question is, how does the debt get handled, how does it get renegotiated, how does it get serviced, and what does it look like going forward, because the cash flow behind servicing that debt is really the question for me. Thats right. And this is one of the things that sort of changes the whole paradigm of what were dealing with super storm maria over here you dont have cash were not going to have a lot of cash. We need to use it to attend the emergency. We want to use it effectively. Listen, ive been in the administration for eight months and already slashed 1. 8 billion off our budget in puerto rico. We can make changes in government to make sure its a more effective economy, to put things into the private sectors hands so they can develop it it is still there. But we need to recognize it. Reporter one message to bondholders if you can give it to them now . My one message to bondholders, were all one right now. What we need to go is go to congress, ask for a real aid package for puerto rico, and make sure that we can have the initial conditions so that we can get out of the emergency phase, but start rebuilding and rebuilding better than ever. That isser t er thbetter for al bondholders, the stakeholders, and the people of puerto rico. Reporter thank you, governor kelly . We thank you both, marcus lem lemonis and the governor that does it for closing bell. Now fast money begins with melissa lee. Thanks so much, kelly tonight on fast, whats wrong with apple nearing correction territory, down 7 since a high in september. But a top technician says fear not. Plus how safe is our cyber world women rob joyce, white house cybersecurity coordinator, will join us from cambridge with an exclusive interview theres a dotcom boom brewing. Well tell you why it could be a good sign for this market this time around. We start with the rally that just wont quit. Stocks hit record highs again today. The economically sensitive groups leading the charge, materials, industrials, airlines, autos, all breaking out in the last month. Are they signaling an economic boom could be just around the corner guy . Clearly the hope of an economic boom could be around the corner the market is forward looking in that capacity. You look at gdp, and then inventory is up significantly. Its a good thing if people buy the inventories. Its a bad thing if they set on shelves. I wont play economist here. A lot of these stocks continue to remain cheap. Weve talked about the airlines for quite some time. Delta talked about the impact of all these storms on their business what did delta do in the aftermath . Stocks traded higher if they can actually get pricing back, then it becomes a very powerful story what does it mean for airlines it means they probably continue to trend higher. Weve talked about industrials now seemingly in the last nine months they all do point to economic strength im not certain, though, it matters if a recovery is on the horizon. All it matters is the stocks are pricing it in. It feels a lot like after the election in november and december where we saw these cyclical names we saw a huge bump, we saw value that had been left for dead have a huge bump up the stuff that was working, it seemed that investors were piling into, because we were in this low growth world with a lot of uncertainty geopolitically, and they were going with the safe bet right now, you know, were looking a lot of these big f. A. N. G. Stocks that are stuck in the mud, apple down 7 , amazon down 10 , facebook, google, all down 2, 3 those are from those recent highs, as the s p 500 makes new highs every day. One point, in midaugust, and we know why the small caps have risen. We think theyre going to be the beneficiary of these reflation trade and tax reform but were unchanged in midaugust the russell 2,000 is up 12 and has doubled the performance of the s p in that time period. Thats the one with the risk in the near term. I wouldnt be tracing small caps here i would be thinking more about mega cap value to be a bit more defensive. Karen, what do you think the market should there be a rotation out of technology at this point . I mean, i guess some of the technology i dont find is particularly expensive netflix is much more expensive than an alphabet you dont need to think that a recovery is around the corner, were in a pretty decent recovery right now we have a cycle, you get good data, some ceo confidence, some spending that gets us a pretty good cycle. Then if we somehow get some tax reform, then i think theres still more upside. I know you hate that, dan. I dont like tax reform because i dont think thats very likely. Universally right now what is being priced in are some sort of tax cut. You dont think its likely, you think there is no tax reform there is not a in the markets themselves this rotation every single day, it really is every single day, now the last couple of days eats been in the airline, then we get the industrials. Tech is a little bit pulled back i think on some of those names, get 10 , thats opportunity to get back in. The reason i say that, mel, were approaching earnings season once again. Last quarter, the numbers were outstanding. They had growth across the board, whether its geographically or in the earnings or in the revenue i mean, you go across almost all of technology. And for the most part, those numbers were pretty much spectacular, i would say so the combination of that, the financials have actually been participating more and more in this rally i think part of that has to do with, the people are looking right now, and they are looking but they dont expect it to come anytime soon but tax reform, maybe the repatriation, those things are forward. But right now, theyre looking at the facts and the fundamentals fundamentally, in many cases, you could make an argument theres an upside. I take issue with the banks, jim cramer was talking about it this morning, jim was basically saying the banks right now are experiencing multiple expansion in front of what should be a raising rate environment and faber pushed back and said, rates havent really riven yese. They are anticipating something, they are anticipating a higher rate environment they are anticipating a Better Capital markets environment, better profitability if we dont get that then you have a problem theyve already been producing some of that have they really . Activity has been poor you can cherry pick what areas are weak, but you can also look at record earnings, record revenue, record this or that, whether bank of america, citi, jpmorgan you can look at the pe thing but how many times have we said, you go price to book and if we go by that metric, thats why wells fargo, i thought the other day when it pushed down to 51, that was an opportunity. 1 1 2, 2 times book, leverage ratios 100 times they are now. If they had much better balance sheets, the reason theyve been getting a lower multiple for years is they had more leveraged now theyre less leveraged they dont have the potential to actually get more levered and make more profit thats why they should trade at a discount to the market thats why they always have. Then lets take it back ten years. Theyre the ones that almost killed the entire Global Financial world that we know so guys, ill just tell you, the idea that they should trade at a market multiple is nonsense. It doesnt need to get there. Theyre way below that we have to go. Coming up, the head of cybersecurity at the white house, rob joyce, will join to us speak about everything from the equifax brief to how hes planning on keeping the next election safe. How does the pixel phone stack up to the iphone and karens last pitch on citi was a total home run, up more than 20 since she made the case in june get ready, shes stepping up to the plate with another name she says is a screaming buy. Carl icahn is also in the name, ch t w mu more fast money, straight ahead. Can i kick it . Yes you can can i kick it . Yes you can can i kick it . Yes you can well im gone welcome back to fast money. The 2017 Cambridge Cyber summit is under way where the biggest leaders in tech and government gathered to discuss the future of cybersecurity rob joyce is sitting down with cnbcs very own Tyler Mathisen melissa, thank you very much. Rob joyce, thank you very much, we appreciate your participation. You said earlier today onstage when asked by jon karlen are we safe, you said, yes, for now, but the trend line is not favorable. What did you mean . I mean, you just have to look at the latest News Companies are being breached weve got nationstate attacks on our government. Theyre on the offense weve got to find a way to turn the costs of doing things on cyber that are malicious to our advantage. You say the advantage has gone to the offense, the bad actors here refuse are we behind i dont think were behind. I just watch the Technology Change and the amount we rely on computers, information, how much we trust into these systems. And its so important that weve got to get it right. What needs to change . I think the emphasis is on the people weve got to have a mindset for security weve got to have a culture in these big companies, in the government, to do security right. And that takes a lot of attention to detail. It takes good planning and it takes practice and exercises to understand how youre going to deal with that inevitable problem when i think about the development of the digital world, the connected world, with all the devices, the internet of things and all of the wonderful apps that we have that have changed our life, i think those things are probably designed by the creative people within an enterprise and the security comes along later behind it. Its grafted into the process. Does that need to change within the company so that the security people are actually part and parcel integrated in the design process . Absolutely. The best companies are thinking about security as they design a product. The best companies are also considering from the very concept how theyre going to do the security of that activity. Do Companies Come to you, to the white house, to Law Enforcement, from your observation, youve had a long career at the National Security agency, do they come to you after theyve got a problem or do they come to you preventively, protectively, beforehand does that need to flip too they do both. We have great industry activity today where groups of industry, the financial sector, the energy sector, the communications sector, get together as a community. They Pay Attention and develop their own intelligence and then they give us a place where we as the government can push intelligence, insights, and new concepts into them as a group. So that really helps equifax talk to me about it. Equifax is just a representation of the continued problem where Sensitive Information probably isnt protected as well as it needs to be but i wont pick on the company. You know, in the end, there was a criminal that did that there was somebody who maliciously intended to go in and steal that data. So the company has a responsibility, when they have our sensitive data, to protect that but at the same time, we also have to figure out how to drive the cost up so its not attractive to go do those actions. Do you as the white house cybersecurity coordinator get involved here, are you engaged with Law Enforcement about the equifax hack, or are you just an Interested Party trying to learn from what happened so the fbi has the lead, its a criminal act, theyre doing the investigations were talking about what should the policy at the u. S. Government level be for data breach notification. Thats a sensitive place the companies have equities in notifications and liability, as well as us as citizens have an expectation that well understand where were at risk thats a discussion, weve got to work with congress, we have to work with the regulators to get that balance right take us inside the white house and talk about election security, if you dont mind. This has been an area with the russian hacking, that the intelligence community, which you were a part of for many, many years, said was certainly a case of russian meddling in the election yes, it was your boss, the president , has been occasionally, alternately accepting of that conclusion and skeptical of that conclusion how do you thread the needle then to make sure that 2018 and 2020, both on the federal and state levels, are going to be safe, secure elections first let me go ahead and say, President Trump was pretty clear after he got the details in the briefing that he accepted the conclusions of the intel community, and that was really important. But the second thing is weve got to make sure that the next election cycles are unadulterated and that theres confidence are we getting ahead of it . We are, absolutely. There an enormous amount of work elections are the responsibility of state and local but we in the federal government have a role to play as well. And weve declared election infrastructure Critical Infrastructure and that opens up the ability for federal government to support those. Forgive me, does the internet of things, does it make your job harder theyre going to go from 6 billion connected devices to 60 billion in a flash it does those connected devices, earlier this year, poorly designed, poorly secured devices, took down a portion of the internet, the miri bot net, we all suffered for it. My refrigerator could be my enemy. Rob, thank you very much, appreciate it, the white houses rob joyce. Thank you, Tyler Mathisen and rob joyce. Pete, are we going to take a look at 2017 and say this was the the year that the cyber stocks are finally, finally making gains probably. Theres semantic, checkpoint, those kind of names. I would point to the Fastest Growing section of cisco right now which is in cybersecurity which is over 2 billion, its going to be 2. 3 billion. I think that if you want the pure plays, thats great if you want something where youve got a Little Something more to it where youre not just reliant on that, thats another reason why cisco is one of these names that trades at too cheap a valuation. Theyve got growth where you want it, its like 4 , but its something that might grow into it we might remember that fire eyes touched 100 a share it closed 17 1 2 or so, it had a good run semantic over the last six weeks or so, its gone from 25 to 33, a big move why do i mention it . Because valuationwise, its probably the cheapest in the space. The margins in the last quarter before all this happened why outstanding. Now you have to ask yourselves, were right at levels we topped out at at the end of 20032004 im with pete here, at least what i think hes saying, i would be more inclined to take a pullback on seymantec. On a gaap basis, should become profitable next year. Ahead, apple sinking from highs in september whats wrong with americas most beloved stock . A top technician says nothing, and it might be your best chance to buy hell explain. Im melissa lee. Youre watching fast money on cnbc, first in business word wild meantime heres what else is coming up on fast. Want to know how to beat the market anything dotcom. Its that simple. A number of stocks with the words dotcom in them are surging. Karen thks tinhis stock could double again the name when fast money returns. This is electricity. This is a power plant. This is tim barckholtz. Thats me this is something he is researching at exxonmobil using fuel cells to capture Carbon Emissions at power plants. This is the potential. Reducing co2 emissions by up to 90 . While also producing more power. This could be big. Energy lives here. Welcome back to fast money. Google unveiling a slew of brandnew products today at their big event in san francisco. Lets get to josh lipton at the event site with all the details. Hi, josh reporter melissa, google took the wraps off its new smartphones today. How do these stack up against some big rivals . Googles all new pixel phones come in two sizes. Five inch and six inch compared to 4. 7 and 5. 5 for the new iphone 8 and 8 plus. Pixel boasts oled screens while the 8 has lcd screens. Pixel does not have Wireless Charging while the 8 and 8 plus do the price of the pixel starts at 649 while the 8 starts at 699. Lets also a question of whos making money from these devices. Jean munster says by his estimate, apple controls 80 of smartphone profits in the u. S. , about 60 worldwide. I also did today catch up with rick osterlobe of google, i asked him what will differentiate his device he said the camera take a listen. I think the photographer experience is second to none you said we had the biggest and best scores ever, which shows it has great photos and videos. And we do that through a lot of different means, but most importantly, our computational United States<\/a> army, navy, you can serve in the armed forces but you cannot vote if you live in puerto rico. That is correct reporter and the number of Armed Services<\/a> on the ground is unbelievable the big challenge is creating an exposure for what Puerto Rico Brings<\/a> to the table. Obviously the devastation is far and wide but the real question is, how does the debt get handled, how does it get renegotiated, how does it get serviced, and what does it look like going forward, because the cash flow behind servicing that debt is really the question for me. Thats right. And this is one of the things that sort of changes the whole paradigm of what were dealing with super storm maria over here you dont have cash were not going to have a lot of cash. We need to use it to attend the emergency. We want to use it effectively. Listen, ive been in the administration for eight months and already slashed 1. 8 billion off our budget in puerto rico. We can make changes in government to make sure its a more effective economy, to put things into the private sectors hands so they can develop it it is still there. But we need to recognize it. Reporter one message to bondholders if you can give it to them now . My one message to bondholders, were all one right now. What we need to go is go to congress, ask for a real aid package for puerto rico, and make sure that we can have the initial conditions so that we can get out of the emergency phase, but start rebuilding and rebuilding better than ever. That isser t er thbetter for al bondholders, the stakeholders, and the people of puerto rico. Reporter thank you, governor kelly . We thank you both, marcus lem lemonis and the governor that does it for closing bell. Now fast money begins with melissa lee. Thanks so much, kelly tonight on fast, whats wrong with apple nearing correction territory, down 7 since a high in september. But a top technician says fear not. Plus how safe is our cyber world women rob joyce, white house cybersecurity coordinator, will join us from cambridge with an exclusive interview theres a dotcom boom brewing. Well tell you why it could be a good sign for this market this time around. We start with the rally that just wont quit. Stocks hit record highs again today. The economically sensitive groups leading the charge, materials, industrials, airlines, autos, all breaking out in the last month. Are they signaling an economic boom could be just around the corner guy . Clearly the hope of an economic boom could be around the corner the market is forward looking in that capacity. You look at gdp, and then inventory is up significantly. Its a good thing if people buy the inventories. Its a bad thing if they set on shelves. I wont play economist here. A lot of these stocks continue to remain cheap. Weve talked about the airlines for quite some time. Delta talked about the impact of all these storms on their business what did delta do in the aftermath . Stocks traded higher if they can actually get pricing back, then it becomes a very powerful story what does it mean for airlines it means they probably continue to trend higher. Weve talked about industrials now seemingly in the last nine months they all do point to economic strength im not certain, though, it matters if a recovery is on the horizon. All it matters is the stocks are pricing it in. It feels a lot like after the election in november and december where we saw these cyclical names we saw a huge bump, we saw value that had been left for dead have a huge bump up the stuff that was working, it seemed that investors were piling into, because we were in this low growth world with a lot of uncertainty geopolitically, and they were going with the safe bet right now, you know, were looking a lot of these big f. A. N. G. Stocks that are stuck in the mud, apple down 7 , amazon down 10 , facebook, google, all down 2, 3 those are from those recent highs, as the s p 500 makes new highs every day. One point, in midaugust, and we know why the small caps have risen. We think theyre going to be the beneficiary of these reflation trade and tax reform but were unchanged in midaugust the russell 2,000 is up 12 and has doubled the performance of the s p in that time period. Thats the one with the risk in the near term. I wouldnt be tracing small caps here i would be thinking more about mega cap value to be a bit more defensive. Karen, what do you think the market should there be a rotation out of technology at this point . I mean, i guess some of the technology i dont find is particularly expensive netflix is much more expensive than an alphabet you dont need to think that a recovery is around the corner, were in a pretty decent recovery right now we have a cycle, you get good data, some ceo confidence, some spending that gets us a pretty good cycle. Then if we somehow get some tax reform, then i think theres still more upside. I know you hate that, dan. I dont like tax reform because i dont think thats very likely. Universally right now what is being priced in are some sort of tax cut. You dont think its likely, you think there is no tax reform there is not a in the markets themselves this rotation every single day, it really is every single day, now the last couple of days eats been in the airline, then we get the industrials. Tech is a little bit pulled back i think on some of those names, get 10 , thats opportunity to get back in. The reason i say that, mel, were approaching earnings season once again. Last quarter, the numbers were outstanding. They had growth across the board, whether its geographically or in the earnings or in the revenue i mean, you go across almost all of technology. And for the most part, those numbers were pretty much spectacular, i would say so the combination of that, the financials have actually been participating more and more in this rally i think part of that has to do with, the people are looking right now, and they are looking but they dont expect it to come anytime soon but tax reform, maybe the repatriation, those things are forward. But right now, theyre looking at the facts and the fundamentals fundamentally, in many cases, you could make an argument theres an upside. I take issue with the banks, jim cramer was talking about it this morning, jim was basically saying the banks right now are experiencing multiple expansion in front of what should be a raising rate environment and faber pushed back and said, rates havent really riven yese. They are anticipating something, they are anticipating a higher rate environment they are anticipating a Better Capital<\/a> markets environment, better profitability if we dont get that then you have a problem theyve already been producing some of that have they really . Activity has been poor you can cherry pick what areas are weak, but you can also look at record earnings, record revenue, record this or that, whether bank of america, citi, jpmorgan you can look at the pe thing but how many times have we said, you go price to book and if we go by that metric, thats why wells fargo, i thought the other day when it pushed down to 51, that was an opportunity. 1 1 2, 2 times book, leverage ratios 100 times they are now. If they had much better balance sheets, the reason theyve been getting a lower multiple for years is they had more leveraged now theyre less leveraged they dont have the potential to actually get more levered and make more profit thats why they should trade at a discount to the market thats why they always have. Then lets take it back ten years. Theyre the ones that almost killed the entire Global Financial<\/a> world that we know so guys, ill just tell you, the idea that they should trade at a market multiple is nonsense. It doesnt need to get there. Theyre way below that we have to go. Coming up, the head of cybersecurity at the white house, rob joyce, will join to us speak about everything from the equifax brief to how hes planning on keeping the next election safe. How does the pixel phone stack up to the iphone and karens last pitch on citi was a total home run, up more than 20 since she made the case in june get ready, shes stepping up to the plate with another name she says is a screaming buy. Carl icahn is also in the name, ch t w mu more fast money, straight ahead. Can i kick it . Yes you can can i kick it . Yes you can can i kick it . Yes you can well im gone welcome back to fast money. The 2017 Cambridge Cyber<\/a> summit is under way where the biggest leaders in tech and government gathered to discuss the future of cybersecurity rob joyce is sitting down with cnbcs very own Tyler Mathisen<\/a> melissa, thank you very much. Rob joyce, thank you very much, we appreciate your participation. You said earlier today onstage when asked by jon karlen are we safe, you said, yes, for now, but the trend line is not favorable. What did you mean . I mean, you just have to look at the latest News Companies<\/a> are being breached weve got nationstate attacks on our government. Theyre on the offense weve got to find a way to turn the costs of doing things on cyber that are malicious to our advantage. You say the advantage has gone to the offense, the bad actors here refuse are we behind i dont think were behind. I just watch the Technology Change<\/a> and the amount we rely on computers, information, how much we trust into these systems. And its so important that weve got to get it right. What needs to change . I think the emphasis is on the people weve got to have a mindset for security weve got to have a culture in these big companies, in the government, to do security right. And that takes a lot of attention to detail. It takes good planning and it takes practice and exercises to understand how youre going to deal with that inevitable problem when i think about the development of the digital world, the connected world, with all the devices, the internet of things and all of the wonderful apps that we have that have changed our life, i think those things are probably designed by the creative people within an enterprise and the security comes along later behind it. Its grafted into the process. Does that need to change within the company so that the security people are actually part and parcel integrated in the design process . Absolutely. The best companies are thinking about security as they design a product. The best companies are also considering from the very concept how theyre going to do the security of that activity. Do Companies Come<\/a> to you, to the white house, to Law Enforcement<\/a>, from your observation, youve had a long career at the National Security<\/a> agency, do they come to you after theyve got a problem or do they come to you preventively, protectively, beforehand does that need to flip too they do both. We have great industry activity today where groups of industry, the financial sector, the energy sector, the communications sector, get together as a community. They Pay Attention<\/a> and develop their own intelligence and then they give us a place where we as the government can push intelligence, insights, and new concepts into them as a group. So that really helps equifax talk to me about it. Equifax is just a representation of the continued problem where Sensitive Information<\/a> probably isnt protected as well as it needs to be but i wont pick on the company. You know, in the end, there was a criminal that did that there was somebody who maliciously intended to go in and steal that data. So the company has a responsibility, when they have our sensitive data, to protect that but at the same time, we also have to figure out how to drive the cost up so its not attractive to go do those actions. Do you as the white house cybersecurity coordinator get involved here, are you engaged with Law Enforcement<\/a> about the equifax hack, or are you just an Interested Party<\/a> trying to learn from what happened so the fbi has the lead, its a criminal act, theyre doing the investigations were talking about what should the policy at the u. S. Government level be for data breach notification. Thats a sensitive place the companies have equities in notifications and liability, as well as us as citizens have an expectation that well understand where were at risk thats a discussion, weve got to work with congress, we have to work with the regulators to get that balance right take us inside the white house and talk about election security, if you dont mind. This has been an area with the russian hacking, that the intelligence community, which you were a part of for many, many years, said was certainly a case of russian meddling in the election yes, it was your boss, the president , has been occasionally, alternately accepting of that conclusion and skeptical of that conclusion how do you thread the needle then to make sure that 2018 and 2020, both on the federal and state levels, are going to be safe, secure elections first let me go ahead and say, President Trump<\/a> was pretty clear after he got the details in the briefing that he accepted the conclusions of the intel community, and that was really important. But the second thing is weve got to make sure that the next election cycles are unadulterated and that theres confidence are we getting ahead of it . We are, absolutely. There an enormous amount of work elections are the responsibility of state and local but we in the federal government have a role to play as well. And weve declared election infrastructure Critical Infrastructure<\/a> and that opens up the ability for federal government to support those. Forgive me, does the internet of things, does it make your job harder theyre going to go from 6 billion connected devices to 60 billion in a flash it does those connected devices, earlier this year, poorly designed, poorly secured devices, took down a portion of the internet, the miri bot net, we all suffered for it. My refrigerator could be my enemy. Rob, thank you very much, appreciate it, the white houses rob joyce. Thank you, Tyler Mathisen<\/a> and rob joyce. Pete, are we going to take a look at 2017 and say this was the the year that the cyber stocks are finally, finally making gains probably. Theres semantic, checkpoint, those kind of names. I would point to the Fastest Growing<\/a> section of cisco right now which is in cybersecurity which is over 2 billion, its going to be 2. 3 billion. I think that if you want the pure plays, thats great if you want something where youve got a Little Something<\/a> more to it where youre not just reliant on that, thats another reason why cisco is one of these names that trades at too cheap a valuation. Theyve got growth where you want it, its like 4 , but its something that might grow into it we might remember that fire eyes touched 100 a share it closed 17 1 2 or so, it had a good run semantic over the last six weeks or so, its gone from 25 to 33, a big move why do i mention it . Because valuationwise, its probably the cheapest in the space. The margins in the last quarter before all this happened why outstanding. Now you have to ask yourselves, were right at levels we topped out at at the end of 20032004 im with pete here, at least what i think hes saying, i would be more inclined to take a pullback on seymantec. On a gaap basis, should become profitable next year. Ahead, apple sinking from highs in september whats wrong with americas most beloved stock . A top technician says nothing, and it might be your best chance to buy hell explain. Im melissa lee. Youre watching fast money on cnbc, first in business word wild meantime heres what else is coming up on fast. Want to know how to beat the market anything dotcom. Its that simple. A number of stocks with the words dotcom in them are surging. Karen thks tinhis stock could double again the name when fast money returns. This is electricity. This is a power plant. This is tim barckholtz. Thats me this is something he is researching at exxonmobil using fuel cells to capture Carbon Emissions<\/a> at power plants. This is the potential. Reducing co2 emissions by up to 90 . While also producing more power. This could be big. Energy lives here. Welcome back to fast money. Google unveiling a slew of brandnew products today at their big event in san francisco. Lets get to josh lipton at the event site with all the details. Hi, josh reporter melissa, google took the wraps off its new smartphones today. How do these stack up against some big rivals . Googles all new pixel phones come in two sizes. Five inch and six inch compared to 4. 7 and 5. 5 for the new iphone 8 and 8 plus. Pixel boasts oled screens while the 8 has lcd screens. Pixel does not have Wireless Charging<\/a> while the 8 and 8 plus do the price of the pixel starts at 649 while the 8 starts at 699. Lets also a question of whos making money from these devices. Jean munster says by his estimate, apple controls 80 of smartphone profits in the u. S. , about 60 worldwide. I also did today catch up with rick osterlobe of google, i asked him what will differentiate his device he said the camera take a listen. I think the photographer experience is second to none you said we had the biggest and best scores ever, which shows it has great photos and videos. And we do that through a lot of different means, but most importantly, our computational Imaging Technology<\/a> and what we call fused video stabilization reporter analysts pointed out google almost seemed to downplay the hardware, instead they seemed to emphasize onstage that they could combine hardware, software, and ai in a way that no other tech company can and that will help differentiate their smartphones now and in the future. Others were more skeptical Patrick Moorhead<\/a> of moore insights and strategy, his point was that google had to bring new, compelling features to the table today, if it was going to win over switchers from apple or for that matter samsung. Moorhead said in his opinion he didnt see that. Well see what consumers think the new pixel phones are available for preorder today thank you so much, josh lipton at the google event it wasnt just the pixel, they also unveiled some home products, right, a camera which brought shares of gopro down you get more of a glimpse into the potential google ecosystem josh just mentioned trying to get switchers, the hardware wasnt that exciting as far as the phone is concerned people who choose that phone are really there for the android experience your point about trying to create an ecosystem with hardware, that high end home pod they released is right at apples home pod thats due out before christmas too this is a massive war thats being waged here were not going to know the outcome for some time because these products are going to be in scarce supply for a it. This is going to play out through 2018 and throw in Amazon Amazon<\/a> is playing this space too. This is really tough competition. It is i think google has been sort of sideways to lower since the middle of june, lets say. It held 925, which was the low back in early june sort of bounced around the bottom trades at 23 times next years earnings probably grows at 26, 27 eps growth i think its setting up into the october 26 release for the next move higher. In terms of risk reward, it sets up pretty well right here. I do happen to like google or alphabet i agree everything guy said their main part of the business is a phenomenal business, still great growth nobody should own google or alphabet for this phone, i dont think anyone does. Can i interrupt please. You mentioned ai. What you should own it for is if you believe theyre going to compete with their voice platform i understand. The phone only exists for searches, right . If the phone now exists for ai im talking about can i interrupt you interrupting me . No. Okay. I dont think they should be in the hardware business of the phone. Theyve already proven that to us, solidly, they shouldnt why, they just i know, another acquisition, after motorola going way back. I get the Competitive Landscape<\/a> of getting into home, and amazon is if they dont have the hardware, they cant have the voice. Not a phone why not have the thing that everybody on the planet carries around with them in their pocket heres the problem. Apple dominates in the world of retention. Thats something that theyre always putting down in terms of why people love the services when youre talking about google, theyve sold 2 million of the pixel 1 apple sold 215 million even if this thing actually gets any kind of its not going to necessarily dent into apple because its going to be cannibalizing those that want to because android has 80 market share around the world and apple has 15 . It really is not about a phone at 700. I think thats what you and i, were all in agreement, its not going to move the needle youre disagreement in your agreement. After she interrupted my interruption part of the beauty of apple is people want to stay in that ecosystem. Sticking with apple, it is the worst performing tech stock in the last month. Our next guest says this may be your next chance to buy. Hi, rich hi, melissa apple is a buy ill show you why. First, a reality check here. This is the oneyear performance of apple versus the triple qs, the benchmark for technology you can see even after a 10 pullback off the top, and apple, youre still outperforming the triple qs, the best performing sector in the s p, by 10 . Those are good problems to have. Lets pump the brakes on the apple fear i love this next chart, it brings me back to college. When i was at cal poly in the 60s, we studied a lot about moores law. This chart brings this out here. What do we have, that onemonth performance of intel, the triple qs and apple down here we have apple, down 5 or 6 over the last month. Triple qs, flat. The triple qs weighing that down the big winner here, intel, the granddaddy of them all, up 6, 7 , just over the last month so what do we do we buy more intel. Thats where we get the moores law from we keep it going apple, lets just get straight to the point here. So look at this, very welldefined up trend. Whats happened, you pull right back to the 150 day. In the past we pull back to the 150. Last year you can see this pullback this was kind of the election, we had the growth scare, tech was sold thats a big mistake, selling technology boom, look what happens. I think history repeats itself weve pulled forward that pullback from last year. Youre going to bounce off that 150, a 10 correction. A period of strong seasonality the longer term chart of apple gets interesting boom, we get to see it, the aqua line, if you will. Thats the 200 week moving average. Whats happened the last time we tested it . The 30 bear market decline we saw here and the stock rallies coming out of it now, importantly, we want to hold this neckline i know weve talked about about it before, comes in at the 135 level. Thats the purple line or magenta. Investors, traders, maybe you use that as a trailing stop. I know its down from current levels, in and around 153, were talking about a 10 haircut, maybe a little too wide for most but this is a stock in a very strong short Term Position<\/a> and a strong long Term Position<\/a>. If history repeats itself, this is a stock thats going to move higher youll see the trillion dollar market cap the pullback is a gift you want to be a buyer of apple. Rich comes over, as far as im concerned. Well bring the chair. Thank you, arielle before you fire off some questions, cal poly in the 60s . Come on, what are you talking about . That part is technically not true it was a safety for me, guy. Ive been Trading Technology<\/a> and semis for 25 years a little bit of street cred here if this happens with apple, does that bring the entire tech sector higher . Yes, it does. Look, weve had a pause here this was the best performing sector biotech builders selling technology is a mistake here theres room for growth and value for tech and financials to work together, not at the expense of one another, which has been largely the case for the better part of the last two years. Im sorry, i didnt know you were about to say something. One of the things i would say in this fabulous bull market where apple has gotten an 800 billion market cap at its high, in 2015, 16, a 35 decline when the market was going higher, what leads you to believe that this time is different . Because there could be some fundamental headwinds, as we talk about on this desk. Pete doesnt agree there is a couple of things going for this stock, strong momentum here, not just for the stock but for the sector itself. Whats not to like you have the big product the real new phone you would the 8, that was kind of like, wah, weve seen it before the x is coming out. Youve stolen a little bit of thunder here, you have a 10 pullback, going into the x, ironically, this is when you buy the stock. Strong seasonality, this bridges the gap between growth and value. This is the sweet spot this is where you want to be i know when you took that quantum physics class, at what point pricewise does apple defy your thesis . We talked longer term about that 135 level thats the neckline of that base its fast money, we have fast traders here, maybe use 150, i think thats a little too tight. If you had executiconsecutive ci the short term of 150, traders need to think theres more downside bigger picture, youre buying this pullback here rich, thank you rich ross with evercore isi, in the pantheon of fast money guests sticking with tech, one trader is throwing in the towel on a big bet against the group dan, why dont you break that down it speaks to exactly what rich was charting today, shortly after the open there was a seller that closed at 60,000, the qqq october puts at 84 cents, closing out what could have been protection that consolidation that rich showed, relative to its top five names that are all down from their highs considerably, the qqq acts pretty well if youre looking out to november expiration thats going to catch all of those earnings, the implied movement in the qqq is only about 5 between now and november 17th. That looks pretty cheap. One way to play the apple that makes up 12 of the qqq would be playing it through the qqq, especially if you thought that google has the potential to go back to new highs, book can make up some of those losses. Amazon is down 10 from its highs. To me, the qqq looks like an interesting way to play. For more options action, check out the full show friday 5 30 p. M. Eastern time coming up, an Internet Service<\/a> stock is up about 91 this year, one of a basket of names leading a new dotcom boom well reveal the name. Stay tuned well, its earnings season once again. Yeah. Lot of Tech Companies<\/a> are reporting today. And, hows it looking . I dont know. Theres so many opinions out there, its hard to make sense of it all. Well, victor, do you have something for him . Check this out. Td ameritrade aggregates thousands of earnings estimates into a single data point. That way you can keep your eyes on the big picture. Huh. Feel better . Much better. Yeah, me too. Wow, you really did a number on this thing. Sorry about that. Thats alright. I got a box of em. Thousands of opinions. One estimate. The earnings tool from td ameritrade. Im val. The orange money retirement squirrel from voya. I represent the money you save for the future. Whos he . Hes the green money you can spend now. Whats up . Gonna pay some bills, maybe buy a new tennis racket. Hes got a killer backhand. When its time to get organized for retirement, its time to get voya. Welcome back to fast money. Theres another dotcom boom brewing and it could have investors partying like they did back in 1999 when dotcom stocks surged dom chu is here to break it down reporter melissa, youll often get folks thinking its like the dotcom era all over again. In some ways it may look that way. There used to be tons of companies with dotcom behind their names and they were high fliers, of course. Today there are some of those names around and their stock performances have been pretty impressive so far this year. Take a look at stamps. Com. The 3. 7 billion internet based shipping and postage company has almost doubled in value since 2017, up 91 during that time frame. Alarm. Com is up there as well, the Smart Home Solutions<\/a> company is worth 2. 2 billion, after rising, get this, nearly 70 this year. And even cars. Com, which is a recent spinoff, yes, recent spinoff, from broadcast and Digital Media<\/a> company tegna. Cars. Com made its debut june 1st and is up 10 from the opening trade on that day. The biggest dotcom of them all is still amazon, a top performer among large cap and mega cap stocks, up nearly 29 year to date one place where you arent seeing as much of a similarity is an Overall Index<\/a> level earnings multiples right now, the s p 500 trails at 21 times earnings. Thats by no means cheap consider when wall street was partying like it was 1999, trailing pe areas were closer to the 30 area. Impressive for sure but not as high octane as back in the day back to you guys dom, thank you so much, dom chu back in the newsroom what do you make of this Interesting Development<\/a> . He talks about, we bring it up all the time, you go back to 1999, i was on the trading floors then, i couldnt even believe 30 was the multiple. I cant remember a stock that didnt have almost triple digits in terms of the multiple hes talking about the s p 500. None of them were in the s p all right i look at what was in the nasdaq at the time. Thats where i think we were mostly focusing on a lot of it, the absolutely high fliers youre talking about dot comco were talking about the high fliers like that when i look at these names i see the growth and i see where the valuation levels are in so many cases now, none of them used to do pay dividends. Now theyre paying dividends, thats fundamentally sound i think theres great opportunity. Dan, i know, likes intel im in indemnittell i see opportunities in different sectors. Particularly in the nasdaq space where so many people say, these things are way ahead of themselves, i dont agree. Go ahead, dan you were about to say something. I was not you guys are not synced up tonight, its weird. Maybe we should start the show over again. You guys usually speak an unspoken language. Welcome to fast money. Its pretty much been parabolic, it trades at a high multiple, 26 times forward earnings take a look at that last quarter. They crushed last quarter on eps and on revenue so clearly theres something going on coupled with that, at 35 short, you say to yourself, despite valuation, despite how ridiculous it might sound, stamps. Com, i use stamps do you buy them online . I go to the post office and i ask for the ones that stick so i dont have to lick them. You dont make the ones you lick anymore they dont . I dont think so. Anyway ahead, bill ackman speaks to Jim Cramer Jim<\/a> will have live to tell us what he said karen is going all in on another name thats doubled in the last month carl icahn is a huge shareholder. The name when fast money returns. Welcome back to fast money. Instant replay, back in june, karen said citigroup was going to break out i think were seeing a revaluation of banks relative to the s p. We havent seen that in a really long time. It started with post the election and i think it is here to stay banks are out of the doghouse right now. It was a home run call. Since then, citigroup shares are soaring. More than 20 . So karen, whats your next move . My next move is on a market thats obviously much higher but here is one that aint so bad. It is the worse house on an improving block. The main is manitowoc. They make cranes and towers, things used in construction, anything, basically. Its a Global Growth<\/a> story if you believe in the Global Growth<\/a> story, which i do, its got a lot of things to like about it sorry. Well, i thought it would go to the next one maybe it didnt. Basically the Global Growth<\/a> part that i like that we see, manitowoc, we see a stabilization of utilization, which is really good we start to see backlog going up thats really important, because here is a company, you can see whats happened, it looks like the stock has gone up a lot, and it has but this doesnt take into account that theres a lot of debt here. As the company has the ability to pay down that debt, we could start to see earnings be really turbo charged. We could start to see rate improvement on their equipment we could see higher prices a lot of good things can happen. One last thing, sort of the wild card carl icahn, as you know, has a very big position here it wouldnt be the most shocking thing in the world to see him do something at some point. So if you believe in the Global Growth<\/a> story, youve already seen some of the other ones, the cats of the world, united rentals. Heres one that i think still has a ways to go i have two questions. Oh, you have a question . Are you allowed i think so, i can change the rules. Fine. My first point, thats the reverse stocks, but does that bother you, one. Two, who does manitowoc mean, karen . Its a good question to ask manitowoc. I thought it meant interesting risk reward. But it doesnt it means dwelling of the great spirit or Something Like<\/a> that. But thats not why i like it they did a well built, which was a disastrous acquisition of Food Services<\/a> unit that they levered up to do, which they thought would even out in times of Business Cycle<\/a> it was a ridiculous acquisition. They took the pain and they spun it off all right i think all these questions, both your questions were insu sufficiently answered. You are correct buy or sell im a buyer another expression out of minnesota, to the west of wisconsin. Karen, i like your arguments, i believe the stabilization and the Global Growth<\/a> story, this plays favorably for manitowoc. Im just going to sell it im shocked the stock was six bucks a month and a half ago i dont know what happened here. Look at the enterprise value, dan. But okay you should have been here a month and a half ago pitching at six bucks, i would have been buying it with two hands she was too busy pitching citi which was up 20 . You cant throw three pitches at once there, mister thats just what im saying. I say a couple of things i say stay with the hot hand, one. What does skyyouma have to do with manitowoc one is in minnesota, the other is wisconsin by the bye, in the after hours session manitowoc is up 5 right now. Viewers, are you sticking with karen . Go to our twitter feed if youre buying or selling karens pitch on mannititowocmanitowoc. Our own jim cramer will be reo llhe tte us what bill ackman said after this break. Thank you clients . Well jd power did just rank them highest in Investor Satisfaction<\/a> with full Service Brokerage<\/a> firms. Again. And online equity trades are only 4. 95. I mean you cant have low cost and be full service. Its impossible. Its like having your cake and eating it too. Ask your broker if they offer awardwinning full service and low costs. How am i going to explain this . If you dont like their answer, ask again at schwab. Schwab, a modern approach to wealth management. Directv has been rated 1 in Customer Satisfaction<\/a> over cable for 17 years running. But some people still like cable. Just like some people like banging their head on a low ceiling. Drinking spoiled milk. Camping in poison ivy. Getting a papercut. And having their arm trapped in a vending machine. But for everyone else, theres directv. For 1 rated Customer Satisfaction<\/a> over cable switch to directv. Call 1800directv. Welcome back to fast money. Our own jim cramer sat down with activist investor bill ackman. They talked about ackmans battle with Software Service<\/a> provider adp here is a taste. The advisers say, look, you dont want to even show that youre open to what they have in mind if you do, there will be more eventdriven investors and youll lose a proxy contest. We havent heard from carlos in a long time, the Company Seems<\/a> to have dialled down the temperature. Shareholders, all they care about is, is there an enormous opportunity to improve this company. I think the answer were hearing is yes lets bring in jim cramer for more on this, hey, jim this has really been a bruising battle between adp and bill ackman ive got to tell you, melissa, i think he dialed it back i think the bill ackman i saw in the show was about the rigor, the plan, how to get the fundamentals moving, but cordial, welcome iing a good dialogue with automatic data it wasnt subdued, it was just matter of fact maybe thats whats needed at this point for the people who watch us at home to figure out who to really vote for versus escalating rhetoric that confuses the picture it really does. When he talked to scott wapner a month ago, he ma i hde it seem he was going after the Retail Investor<\/a> now it seems like hes reaching out to people at home. The people who watch at home who are not involved in the thick of these battles, they dont like ad homhominem attack. I think hes trying to wait out the last bit of bad news im with him with the idea of stocks trying to bottom. I mentioned it to him, america doesnt have a long term memory but they have a short term memory for some of the bad things they saw. I think its a longer slog than he does. Hes pretty optimistic dan, nathan likes the qqq stick around for the final call, jim. All right im skeptical. Jim, thanks jim cramer for the full interview, do not midmad money tonight, 6 00 p. M. Eastern time. Up next, are you buying or selling karens pitch for manitowoc . Well reveal the results aer e orbrk. Ft i cant wait for her to have that College Experience<\/a> that i had. The classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right financial advisor, life can be brilliant. Ameriprise slow jazz music fly me to the moon and let me play bell ring tmobiles unlimited now includes netflix on us. Thats right. Netflix on us. Get 4 unlimited lines for just 40 bucks each. Taxes and fees included. And now netflix included. Welcome back the results are in, if you like dirty dancing, youre in luck, 60 of you bought karens pitch of manitowoc congratulations karen. Kaching. It is time for the final trade. Pete she had two pitches, were updating to one. Sandy, its going higher, going to a hundred, giddiup. Karen ill take one out of the pete playbook apple may be delayed, we all know that, this kind of problem, that kind of problem, nevertheless this is for jim cramer. Mad moneys jim cramer dont go bullish you agree with rich ross on the nasdaq, you buy are you the spy for 2 . Nhl starts tonight, rites of passage, it all begins, mel. Red hat moments to nhl hockey im melia sslee. Se. My mission is simple, to make youmoney. Im here to level the Playing Field<\/a> for all investors. Mr. Always a bull market somewhere and i promise to help you find it. Mad money starts now hey im cramer welcome to mad money, welcome to cram america. Other people want to make friends im just trying to make you money. My job to educate and teach you. Call me 1800734cnbc or tweet me jim cramer enough with the darn","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia600807.us.archive.org\/33\/items\/CNBC_20171004_210000_Fast_Money\/CNBC_20171004_210000_Fast_Money.thumbs\/CNBC_20171004_210000_Fast_Money_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240629T12:35:10+00:00"}