Preorders for the new iphones were coming in strong. Could the ipad pro be causing problems next quarter, thats coming up. Plus theres the fed. The decisions impact on biotech of all places. We will break down how thursdays big meeting could shake up that sector. Plus weve got two stocks that could break out no matter what the fed does in that space. We will tell you what those are in just a moment. We will start with alibaba whose shares with falling, down 3 right now after bare rons put that report out saying the stock could fall another 50 in price from here . In the past alibabas jack mau has said he doesnt pay much attention to the companys stock price. Listen. I dont watch t i think we will let the market take care of themselves, we should watch and take care of the business. When it goes down im not excited, when it goes down im never depressed. This is how people look at and what we should focus on is our business, our customer, our employees are the same. What are you going to do . Youre going to go on the street telling people my stock is too low. Or my stock is too high . Forget about that. Just focus on creating the business. Okay. So thats what he said and yet alibaba came out with a five page five page response late yesterday to the bare rons article trying to set the record straight. Seven points. Seven long points in this thing. They said the barrons report contained factual inaccuracies and selective use of information and that the conclusions that the report who are wrote the piece draws are misleading. It was a long for a company that doesnt care about its stock price it cared very much about this piece in barrons over the weekend. Is alibaba worth buying on its weakness. Joining us is jeff previous who is bearish on alibaba and henry globe who is bullish. Henry, why isnt alibaba going down 50 from here . So we remain positive on alibaba. We still think theres huge potential in terms of growth in china. As of now only 50 50 of the Internet Users participating Online Shopping so we think that is a huge opportunity for alibaba as an Industry Leader to benefit from that trend. Jeff, essentially Jonathan Lang of barrons was saying the stock is expensive, the execution is suspect. The comparisons the company says were not appropriate, comparing them to a price to earnings ratio of ebay or other problems. Did you agree with the barrons article or do you have other reasons that youre bearish on the company. I do think alibaba is protesting too much. Ive got to say i cant necessarily disagree with the motion that ebay which is this legacy ecommerce platform is not the proper comparison to alibaba. Im sympathetic to that point. On the whole i think the most important point that investors needs to realize is theres a lot of opacity and confusion on whats going on with this company. We heard a lot about that around ipo, a lot of people expected i guess we would dig into the company, all we continue to hear is this china miracle. A bunch of consumers that can be unlocked. Not only is that a concern for me because of a slowing economy, but auto makers had the same metrics that they trotted out about how theres only four cars per 100 chinese and it was going to be a big deal and autos were going to be everywhere in china. We saw a brief pop then saw it fall back into a pretty modest growth rate for auto make nurse china. I think its good to be interested in how much money they spend on ecommerce instead of making a blanket statement. Henry, at the same time the company itself was the one who at that city tech conference a week or two ago came out and said it was going to miss its annual merchandise growth volume projections by mid single digits. Its a pretty big miss, its already seen a slowing in those volumes. You can be right about the secular growth story and still wrong about the potential for alibaba to maintain its rapid growth pace. Yeah, i agree. So i think thats really because of the large base for alibaba and also from jd. Com which has made progress. Still you talk about the Consumer Spending still its too early to draw conclusion about the Consumer Spending impact by the economy. We still need to monitor the trend over there to see how is the Consumer Spending trending over the next several quarters. Henry, isnt the point that alibaba in a way is telling us, right, to some extent we can look to the market for information that especially in china is hard to get otherwise and the message seems to be the Consumer Spending just isnt there, at least in what was previously baked into the shares. Yeah, but still we dont know. The market is kind of guessing the management expectation. We dont know what the management expectation in the first place. So they say in the single digits, mid single digit lower their expectation. I think that is conservative on their guidance in terms of the quarters. Jeff, if you were invest nothing a company like alibaba for five or ten years, a long time buy and hold, is this the tie to buy it . I mean, i dont necessarily think it is because the most important thing to refer remember is not just forward guidance, they missed wall street expectations on the top quarter. I think its 12 times current sales and its like 8 times next years revenue. If we continue to see guide down and miss on the revenue that multiple looks more obscene. A long way of saying its well and good to think they will eventually resolve this multiple in the valuation or compare to other high growth chinese stocks which havent done so well this year. So i think its very dangerous to expect this ratio to resolve in a favorable way for alibaba. Youre paying big premiums for growth that were uncertain about. To me thats not a recipe im comfortable with right now. Gentlemen, thank you. Alibaba is down 3 on the session today. The shine from a lot of Public Offerings is wearing off as your dominic shoe has details on more of them. It might be in the ipo market fore told a little bit about the markets turmoil we have seen over the past month and a half. This is the renaissance ipo Exchange Traded fund the ticker is ipo. Renaissance capital is an eef fund manager. This particular etf which is in the white line is the performance line year to date. The orange line is the s p 500. You can see early in year they tracked pretty closely. All of a sudden ipo started to outperform. Just before the market really took down we saw a downturn in the overall ipo market. Now at least the s p 500 is out per forg those oips. Its possible that the ipo pipeline is going to dry up and thats got some investors concerned. The reason why is because as you guys just pointed out with your alibaba discussion a lot of high profile ones over the course of, a, the past year or so have seen their share prices dip below their ipo price. Alibaba is one of them. You take a look at some of the other high profile ipos as well. Take a look at some of these other ones, for instance, etsy, down 10. 5 and thats just since their ipo. Take another one here, this is box on the clouds storage side of things also below its ipo price as well. The question then becomes whether this dries up the pipeline and what it means. Cathy smith over at Renaissance Capital spoke earlier today on squawk on the street and talked about what it means and why it could be a bright spot for future ipos and their performance. I think the important thing to note and weve done studies of this, that after a dry spell in the ipo market that were having now because of these points i just made, after that usually the ones that are done almost all trade very well. So after the facebook ipo, a month went by and almost every oo ipo done over the next month did quite well and those included service snell and palo alto networks. The this ipo market is not going to survive given all the volatility, the bullish side is perhaps the ipos ss that do woman com to market come to market decidedly so. Ipos, whether or not this means we could see better performance for those ones that actually do come to market later on down the line. You have to figure if its able to come to market in such a tough environment it deserves t dom, thanks very much. Lets get to our Closing Bell Exchange as we begin this week. Who knows whats coming on thursday. Joining us now anthony chan from chase, peter kosta from empire executions, both of them there at post 9 near at the new York City Stock Exchange and its the return of Rick Santelli and you came back just in time. What are your thoughts going into this week . Not only do you think something is going to happen on thursday, but are the markets setting up us for it right now do you think . You know, in terms of the last question, i like at a 217, 21810 unchanged on the year, i think that says it all. When i look at the equity markets weve seen much higher prices yearly in the year than we do now and thats a split decision between Global Economics and the catalyst of which may be the fed and normalization. Personally im a better man in terms of steve leaseman i bet him last november they wouldnt raise for all of 25 2015. On the other hand, i really think they need to. Im not sure how its going to turn out, it will be like you, bill, asking me to think of a number between 1 and 100 because i think you would have as good a chance of guessing that number as we have to guess what stand fisher, janet yellen and company are going to do. If there was rules that we all could see that were plain and simple, if this then that i think the market would have an easier time of it. I think ultimately the latter is going to be the levin we all learn depending on the outcome thursday. If we dont normal lies i would expect you would see a pretty good rally in economics. If there is normalization maybe there will be a better market ahead. The real issue is knowing that the economy is calibrated to something a little more eelist i can rather than an Interest Rate subsidy that benefits the investing class. Anthony, the wall street journal reminds us how many Central Banks, israels included were eager and quick to raise Interest Rates only to have to turn around and drop them again. What makes you think that this time will be different with the u. S. Experience after watching israel, sweden, the European Central bank and others try to do this and then have to reverse course . Kelly, you are spot on. Those three Central Banks did have to reverse themselves. Thats one of the things that the Federal Reserve is watching. The Federal Reserve has three children, the first one is the employment child and that one tells them they are ready to go because Employment Conditions are great, but then it has the price child and prices today according to the Federal Reserves price mandate we are not there yet and their new newly conceived child market volatility we definitely are not there next. If you look at the market vix we are covering around 24. 5, volatility is greater and even for those people that say things are calming down in the chinese equity markets, guess what, weve been seeing over the last couple days that the equity market opens low and sort of stabilizes or doesnt drop so much towards the end. It sounds to me like that has the chinese out there buying. Market volatility still a problem. Historically when the Federal Reserve tends to raise rates that pushes market volatility even higher. Fisher has told us thats something they are watching. I would say two out of three says they might wait a little longer and maybe rick will be right and they wont move this year. I think they will move in december. Peter, what do you think . This market were down 78 right now on the dow, but for the week do you expect kind of a quiet anticipatory week before we get to thursday or what do you think is going to happen . I think a lot of people will be betting a little bit to see what happens on thursday. Me personally i agree with rick totally. I think that we probably wont see anything until the First Quarter of next year and i would love to see a rate hike. I think that normalization would be good for the economy and good for the market and good for everybody, i just dont think its going to happen just yet. Do you agree that a rate hike on thursday would bring a rally . I dont know go b. Is the converse true, then. If they dont raise rates we get a sell off . Its possible. I think the initial impact will probably be a little bit of a sell off. I think that longer term meaning two or three weeks you will probably see the market rally because when the fed raises rates its obvious that the economy is doing well, the reason they are raising it is because theyre worried about inflation, wage inn plagues, the positive aspects of a growing economy. If they do worry about that and do feel that thats where we are in then thats good for the market, its great for the market, but i dont think we are at that point yet. I think we still have probably another three or four months before we see that kind of positive growth, the wage growth they are expecting. We havent seen it yet. We havent even seen a major uptake in it. I think that we still we will probably see nothing happen next year. All right. Thank you, guys. Thanks, good. Rick, good to have you back. Thank you. Just in time, 45 minutes to go in the session today. It is waiting on the fed this week, the dow is down 67 points, the s p is down about 8, the small cap under pressure declines 0. 4 of a percent, apple is down about 15 points. Apple says their new iphones are on pace to hit record first weekend sales, but there is something that could dampen sales of the ipad pro. Josh lipton will have the low down coming up next. Also ahead meg terrell tells us what could happen to the biotech sector. This one has been in their cross hairs. Stay tuned. Its more than the cloud. Its security and flexibility. Its where great ideas and vital data are stored. With centurylink you get advanced Technology Solutions from a trusted it partner. Including cloud and hosting services all backed by an industry leading Broadband Network and people committed to helping you grow your business. You get a company thats more than just the sum of its parts. Centurylink. Your link to whats next. Im a senior Field Technician for pg e here in san jose. Pg e is using new technology to improve our system, replacing pipelines throughout the city of san jose, to provide safe and reliable services. Raising a family here in the city of san jose has been a wonderful experience. My oldest son now works for pg e. When i do get a chance, an opportunity to work with him, its always a pleasure. I love my job and i care about the work i do. I know how hard our crews work for our customers. I want them to know that they do have a safe and reliable system. Together, were building a better california. Were keeping an eye on shares of Apple Holding on to gains today, the market more broadly is down but apple is up about 1 . The tech giant saying its iphone 6 could break sales records when it hits stores on september 25th. However, and there are people on twitter long im pushing the stock down but im just reading this copy here, its new ipad pro may already be facing a key component shortage, josh lipton that is that story for us. Lets start with the iphone news. The 6 s and 6 s plus became available for preorders on saept and this morning apple saying that orders were very strong around the world. The company is on pace to beat last years first weekend sales of 10 Million Units. Rbc does note some caveats here, apple didnt announce first weekend pre order data like last year, china was included in the initial launch for the first time and while the 6 s plus is back ordered he says the 6 s looks to be broadly still available. Still net net saying that the numbers are a positive. Hes looking for the stock to move to 150 over the next 9 to 12 months. There was also a report on the ipad pro. Digit Times Research is saying because of that tablets price point and what the firm says are supply shortages shipments will reach less than 3 Million Units in q 4, but Creative Strategies says investors doesnt focus on the ipad pros performance in q 4. His point is its only first launch nothing november. Instead he says this Holiday Season investors will and should concentrate on sales of the apple watch and those new iphones. Guys, back to you. The key here in shortages and parts issues can go one of two ways, the best news for any company is that they dont have enough to meet demand, right . Exactly. Right. I mean, listen, baharas point was nets lets not look at q 4, instead lets look at the quarters beyond that. Whenever i talk to tim cook he is still enthusiastic about the tablet and a lot of that is because he still thinks it can be such a tool in the workplace. Thats what the really they hope for with the ipad pro, thats why they have these distribution agreements with ibm and cisco. We will see how that plays out in the quarters ahead. And yet the iphone we wring our hands every time i make a new announcement and yet they are look to go break sales records every time, right . Right. You look at that stock, they had a nice run in the past five days, still down 10 interest fed rate hike that recent high. That is the worry, the concern of some skeptics, can they grow these iphone units in the quarters ahead given those tough comps, given a slowing china, giving a maturing smartphone market. I think bulls are going to say at least on the last Conference Call cook told us 30 of users had moved to the 6 and 6 plus that is correct would imply a lot of head room ahead at least in temples upgrades, guys. All right. Josh, good, thank you. See you later. Josh lipton with that incredible view of i was thinking the same thing, doesnt it look beautiful there. We have our new bureau out