Transcripts For CNBC Fast Money Halftime Report 20160615 : v

So u no, i get that most of this is overseas, but Credit Suisse is down 45 , and bank of america 20 , and Deutsche Bank as well down. And yes, we saw jamie dimon with his bottom, and we call it the unbelievable buy. And we had greater p for mans, and people were anticipating because of the job owning we would see the rate hikes coming along and then you see the steepening, well, obviously, it looks like june is off of the table, and because of that, the last couple of days since janet spoke, you could watch the financials and see how they react. And doc, no relief in sight today, because the fed is not giving any help to the financials. The wrap on the large banks that make up the index is simple. These are companies that should pay bigger dividends and you should expect less from in terms of the growth, and really no reason to own them unless you think that there is an imminent rate higher not just once, but a cycle, and nothing is tellinging you that is the case right now. That is why these stocks have been terrible. Yes up 1 today or just about, but down 4 from the middle of last week, and absolutely sucked down into the vortex with deutsche banning, and hsbc and barclays and you name the european banks. And you have people talking about the Deutsche Bank as the canary in the coal mine, and i am wondering, steph, if you can cant get the banks back in an important sector in this market to perform. What is going to take you there . You have to get a steeper yield curve. To me, the yield curve has been flattening since the job report, and these stocks cant work with a flat yield curve, period, end of discussion. And why is that flattening . An imminent recession on the rise . Or just the bund flows, they cant get relief anywhere and they are coming here . I think that if we can get through the brexit, we can focus on the u. S. Economy which is by the way, it is looking like gdp is now running 2. 8 to 3 for the Second Quarter after the reare tail sales number yesterday and you are getting a little bit of the inflation from the export import price data the yesterday, so once we get through the brexit maybe we can focus on the fundamentals and the yield economy, and the fundamentals can steepen, and then the banks will work. How worried about the banks . Well, the canary in the coal mine statement is interesting, judge, because we talked about that in the beginning of the year when deutsche was significantly higher, and now when it is down here at 14 some people are saying canary in the coal mine. And that canary is dead if you waited until now to decide that it died. Because that bird is has passed. You know that Deutsche Bank is down 80 . Yes. Money is priced negative, they cannot possibly make money right now, and until the inert policies and the cycle Purchase Program is done, and until the hazardous monetary policies are changed the banks are under pressure, and the markets can not move higher without the banks. And judge, the volatility and we love the talk about it, because of the measure of risk. Especially this week. Yes, and look at barclays 65 is what that volatility reading is on the screen. And deutsche up 55 , and the Credit Suisse, 50 or 51 , and jpmorgan, 26 . And the numbers at the top of the show, how much the stocks have troped and this is going to correspond with that, and back to the canary in the coal mine, this bird is dead. As far as the indication of going forward, now is the time to take a look at the banks and not just dumping them. Well, you had one of the top ten ranked Financial Advisers in the country by barons say that not only are these stocks not going to work in the rate environment, but that the market cant work or get back to new highs without this sector . Well, i dont agree with that statement, because actual ly th banks are down 30 , u. S. Banks over the last ten years, and the markets are way up. So we do have, you know, depending what period of time, and if you say in the next week, you wont get a new s p alltime high without the banks up, all right, you are right, but longer term, these are now a utility sector, and the market will grow accustomed to the fact that they have a waning influence on the indices, and 16 of the s p at the peak of the credit bubble more at 11 or 12 and sized around energy, and you dont need them to make a new high in the index. What you do need is this is the issue though, you cant have banks not making money in type of environment. And the u. S. Banks are making money though. And the secondly, the bigger issue with the stock market, it is not attractively valued right now, and so we have the luxury of not having been fully invested in any one time, and this environment give n the multiples where the stocks rshg and keep in mind, earnings for s p 500, and this year, and last year and the year before, we have not budged, and s p are revenues are down year over year, and so given the policies tof global ten tral Bank Policies and the stretch valuations, this is a market that we dont see moving higher in i time. And when were you latched on, a couple of months ago . Yes, a couple of months ago, and you were more cautious, and the market ramped up, and rally and got close to the new highs and at one point the s p was less than 20 points from the new high. Yes. And you were not surprised, and were you surprised by that and the markets have not moved in a year and a half. The s p is effectively where it is a year and half ago. And the index of a new high in the middle of last week, and more importantly for people like you and i, and all country world index was on the verge of a breakout for the first time in a while, and both stymied and by thursday and friday falling apart, and i would say that giving the ratcheting up of volatility, the resiliency of the stocks is making a statement. Now, it may not last and i completely agree with your point that the banks have to make money, and it is a huge unintended consequence which it is why i dont understand and why europe is looking at bank equities and looking at the shrinkage in the market capitalization of Something Like a Deutsche Bank and they believe it is their cue to now buy Corporate Bonds and it is is complete madness to me, but then you have a view on when that might stop or if it is ever going to stop. Only one glide path to the successful outcome which is a recovery in europe and ecb, S Central Bank starts to moderate the policies and we return to normalcy. And you cant do it without the fiscal policy, and that is not happening. Exactly, and so the policy over there has caused a global drop in the Interest Rates and right now the fed is not the main game in town. Led zeplen is reappearing and having a comeback concert in europe, and this is the situation. The european situation drag our rates down and causing the issues. We are less than a couple of hours from the fed decision, and followed by the janet yellen News Conference, and Steve Liesman is there live at the Federal Reserve. This is centering around the banks, the overall stock market, and we are not going to be getting the yield curve is not going to bet getting any help from the fed today, is it . Not today. And this is a pretty important meeting today, because we will get the forecast from the Federal Reserve to set the tone for the quarter until the fed comes back in september with new forecasts to determine how much summertime vacation the najarians can take. And three keys to the meeting. Yell slen is cautious on the rates and optimistic on the economy, and she faces that weak jobs report, and the brexit, and the declining expectations, and the global rates, but the better second growth quarter that stephanie was talking about and better retail numbers, and that is the going to be edged down a little bit in the near term, and the issue of will the fed downgrade the outlook for rates yet again . From here, you can see that the average fed member has cut the forecast for the average fund rate for the past three meetings, down, down, down, and zoom in to show you compared a year ago, the average fed member has cut it from 116 to down below 1 , and the forecast is below 3 , and now down to 2 , and now, seven quarter rate hikes have been bakd out. Larry sums in the blog overnight compared it to groundhog day, and so what i am waiting for at 2 00 is do we get the song i got you babe playing on the radio. And plays to the Jeremy Gundlach comment s ths that the is locked down and doesnt know what to do. And we have to get off of the roller coaster ride, scott. We are going to hike, and then a single report comes through, and raises the questions about the outlook, and then off of the rate hike again, and so it need s to be a more fundamental basis for hiking and not hike, and what summers is saying is that the fed is offsides when it c e comes to the policy. And steve, we look forward to you this afternoon and it is going to be a big afternoon. And what song will they play is . Yes, Steve Liesman, and good stuff. This is what else is coming up on the Halftime Report. Still ahead, facebook smackdown. We will have a bull versus bear debate that you dont want to miss. Plus, china may be the largest emerging market out there, but their local stock market still isnt included in the global benchmarks, and why the mainland is being denied access, and what it means for your money. And the business of basketball. Nba commissioner adam silver weighs in on how the league is leveraging social media to attract even more fans. It is coming up on the Halftime Report. Halftime report sponsored by fidelity investments. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Man 1 i came as fast as i man 2 this isnt public yet. Man 1 what isnt . Man 2 weve been attacked. Man 1 the network . Man 2 shhhh. Man 1 when did this happen . Man 2 over the last six months. Man 1 how did we miss it . Man 2 we caught it, just not in time. Man 1 who . How . Man 2 not sure, probably offshore, foreign, pros. Man 1 what did they get . Man 2 what didnt they get. Man 1 i need to call mike. Man 2 dont use your phone. Its not just security, its defense. Bae systems. Already. Back on Halftime Report and the facebook shares have been under pressure since the noted short seller said he was betting against the stock, and not all agreed including the tech investor paul meek, and we welcome them both on for a social debate. Andrew, to you first, why facebook, and why now . Well, it started like this in february i suggested buying shares of linkedin and then after they were taken out this week, i said, oh, by the way, i happy to be shorting facebook and now i am shorting facebook based on the larger portfolio, and si not recommended for everyone to short facebook, but if you are long facebook, look at this as an opportunity to sell it, because there is a few d Disturbing Trends that you cannot ignore. And the first one is is the study by similar web which discusses the use of social media is declining across all forms of social media, and as much as you can grow from the network effect, you can decelerate, and second of all, if you go to look at ad week, you will hear them discussing snapch snapchat, and anybody will tell you if you have a millennial or if you associate with the millennials, in that age group, snapchat is getting good mine share, ab they have created an ad platform that cannot be denied and lastly, the most important thing, when you have a 320 billion company, and in order for it to progress and move the needle and move forward, you have to have new initiatives which facebook is launching, but they are unknown with the success. Like facebook video, and the largest watched video is chewbacca mom, and nothing against chewbacca mom, but until les moonvez is going to the give her a deal and we can monetize chewbacca mom, and that is the new face of facebook video, maybe you will take some profits here. And paul meeks, you take issue with anything that andrew said . I sure do. He did highlight the network effect, and that network effectt is going to continue to power the company, and as per snapchat, i would have loved to see facebook for the 3 billion offered in 2013 for a private company that is estimated to be 18 billion in value today, i would have loved to see that deal done, and it is a great platform, and now that they are opening up the apis to third pars, they will take some share, but offtime, facebook and google are going to be taking share in Digital Advertising, and Digital Advertising is going to be taking share from traditionaled ver tizing. And andrew, you say that facebook is losing relevancy, but the data does not back it p up. And studies may say, but look at the actual facts, daily users up, mobile engagement up, and digital there early, but growing, and they are in the early stages still of monetizing instagram, and doesnt that count for anything . Well, there is so many areas that you touched on there. Yes sh, they are in the early stages of monetizing en sta gram, and monetizing that will be cannibalizing from the existing business, and usage is down, and you can look at the study numbers or actual install, and i would suggest that the eyeballs they are losing right now, are a lot more valuable than the eyeballs they are gaining in certain parts of the world. So, all of that factors into it. Obviously, you are patalking about, facebook is not a bad company, and i dont want to suggest it. They have done wonderful things to connect the world, and tremendous installs, but we are talking about moving the needle from where it is now, and if you think that they will take more of the share between them, and google, it is a dominant share of the Digital Media, and the argument is that Digital Media is going to be taking more from the traditional media and that is going to go to google and facebook, and for that just look at the i got you. Paul meeks, all things equal, maybe this is as good as it gets for facebook. No, i dont think so. When you look at it, one of the things that had not been a part of the picture for facebook in the past, was the arpu and now the average use per user is continuing the grow in every region, and that is a big part of the growth in what we would describe as unit volume. In the meantime, i would say that the Company Trades at about 25 times 2017 earnings so i see some visible growth, and so it is not a apple story to see the slowdown, but for the relative growth rate, and i believe that the analysts are low on the estimates of the revenue and eps this year and next and it is not particularly expensive stock. It is not cheap, but it is an attractive stock. And you they andrew is exaggerating the threat of snapchat, right . I think that snapchat is a worthy property, but i think that they will be successful, but facebook and google earlier no the game will be much more successful and regardless of the traction that snapchat sees. Andrew . I mean, you dont have to take it from me, and you can take it from mr. Zuckerberg himself when he was looking to the future of facebook, and discussing artificial intelligence, and discussing new initiatives that the they have that are not currently Instagram Facebook initiatives and they will not cost money or generate the same margin, and they will have to create the content, and find new ways, and hoping that again that the eyeballs that they are gaining will be as valuable as the eyeballs they are losing. They have done a great job the take it here, but it is all about making money, and i m talking about facebook as a stock, and company, and as a stock, this is a great time to sell, and in my opinion, this is as good as we are going to be see, and at 320 billion that is not a bad statement to make. No, it is a fair comment, and you are entitled certainly to make it, and it should be debated. Josh brown has something. Two things. I agree with andrew on the threat from the snapchat, but it is not quite an earnings and revenue threat, but it is more of the mind share and the attention of the teens threat, and it is legitimate, and im on snapchat if anybody would like to follow me, but it is a very different experience to follow my friends on snapchat than to keep up with my family and old friends on facebook and i have used both. And the real threat, guys, maybe to both is musically, and that is backed by the Chinese Company, and so nobody can invest in it, but if you are worried about the future, and you are thinking of the people under 16 years old, and pretty much musically monopolizing all of their time, what are the thoughts there, and is that what we should be talking about . Andrew . I mean, i think that right there that shows you that i actually covered in citron, i covered mispace, because i thought that they would be bought out, but at the Current Business model they will phase out. Both things happened, they got bought out and then phased out. I suggested buying linkedin and now sumging to sell face booshgs because when you this company, you can be disrupted and the structure there and the network effect, and as josh was saying, right now, you have other networks and more im sure in the next 20 years before we take facebook and model it out, we dont know what social media is going to be looking like in ten years from now, and to say that we will, we are naive. And so to assign a 320 billion valuationk and this is not procter and gamble or exxon, but a social media company. And a technology company, and 20 years ago i would have bet on ibm as a tech company. It on shows you how dangerous at these levels to hold this stock, because kit can be disruptive. And paul meeks, you . And first of all, i would not focus on the market cap, because it is trading at a decent valuation, because it is going so fast and it is not Credit Suisse<\/a> is down 45 , and bank of america 20 , and Deutsche Bank<\/a> as well down. And yes, we saw jamie dimon with his bottom, and we call it the unbelievable buy. And we had greater p for mans, and people were anticipating because of the job owning we would see the rate hikes coming along and then you see the steepening, well, obviously, it looks like june is off of the table, and because of that, the last couple of days since janet spoke, you could watch the financials and see how they react. And doc, no relief in sight today, because the fed is not giving any help to the financials. The wrap on the large banks that make up the index is simple. These are companies that should pay bigger dividends and you should expect less from in terms of the growth, and really no reason to own them unless you think that there is an imminent rate higher not just once, but a cycle, and nothing is tellinging you that is the case right now. That is why these stocks have been terrible. Yes up 1 today or just about, but down 4 from the middle of last week, and absolutely sucked down into the vortex with deutsche banning, and hsbc and barclays and you name the european banks. And you have people talking about the Deutsche Bank<\/a> as the canary in the coal mine, and i am wondering, steph, if you can cant get the banks back in an important sector in this market to perform. What is going to take you there . You have to get a steeper yield curve. To me, the yield curve has been flattening since the job report, and these stocks cant work with a flat yield curve, period, end of discussion. And why is that flattening . An imminent recession on the rise . Or just the bund flows, they cant get relief anywhere and they are coming here . I think that if we can get through the brexit, we can focus on the u. S. Economy which is by the way, it is looking like gdp is now running 2. 8 to 3 for the Second Quarter<\/a> after the reare tail sales number yesterday and you are getting a little bit of the inflation from the export import price data the yesterday, so once we get through the brexit maybe we can focus on the fundamentals and the yield economy, and the fundamentals can steepen, and then the banks will work. How worried about the banks . Well, the canary in the coal mine statement is interesting, judge, because we talked about that in the beginning of the year when deutsche was significantly higher, and now when it is down here at 14 some people are saying canary in the coal mine. And that canary is dead if you waited until now to decide that it died. Because that bird is has passed. You know that Deutsche Bank<\/a> is down 80 . Yes. Money is priced negative, they cannot possibly make money right now, and until the inert policies and the cycle Purchase Program<\/a> is done, and until the hazardous monetary policies are changed the banks are under pressure, and the markets can not move higher without the banks. And judge, the volatility and we love the talk about it, because of the measure of risk. Especially this week. Yes, and look at barclays 65 is what that volatility reading is on the screen. And deutsche up 55 , and the Credit Suisse<\/a>, 50 or 51 , and jpmorgan, 26 . And the numbers at the top of the show, how much the stocks have troped and this is going to correspond with that, and back to the canary in the coal mine, this bird is dead. As far as the indication of going forward, now is the time to take a look at the banks and not just dumping them. Well, you had one of the top ten ranked Financial Advisers<\/a> in the country by barons say that not only are these stocks not going to work in the rate environment, but that the market cant work or get back to new highs without this sector . Well, i dont agree with that statement, because actual ly th banks are down 30 , u. S. Banks over the last ten years, and the markets are way up. So we do have, you know, depending what period of time, and if you say in the next week, you wont get a new s p alltime high without the banks up, all right, you are right, but longer term, these are now a utility sector, and the market will grow accustomed to the fact that they have a waning influence on the indices, and 16 of the s p at the peak of the credit bubble more at 11 or 12 and sized around energy, and you dont need them to make a new high in the index. What you do need is this is the issue though, you cant have banks not making money in type of environment. And the u. S. Banks are making money though. And the secondly, the bigger issue with the stock market, it is not attractively valued right now, and so we have the luxury of not having been fully invested in any one time, and this environment give n the multiples where the stocks rshg and keep in mind, earnings for s p 500, and this year, and last year and the year before, we have not budged, and s p are revenues are down year over year, and so given the policies tof global ten tral Bank Policies<\/a> and the stretch valuations, this is a market that we dont see moving higher in i time. And when were you latched on, a couple of months ago . Yes, a couple of months ago, and you were more cautious, and the market ramped up, and rally and got close to the new highs and at one point the s p was less than 20 points from the new high. Yes. And you were not surprised, and were you surprised by that and the markets have not moved in a year and a half. The s p is effectively where it is a year and half ago. And the index of a new high in the middle of last week, and more importantly for people like you and i, and all country world index was on the verge of a breakout for the first time in a while, and both stymied and by thursday and friday falling apart, and i would say that giving the ratcheting up of volatility, the resiliency of the stocks is making a statement. Now, it may not last and i completely agree with your point that the banks have to make money, and it is a huge unintended consequence which it is why i dont understand and why europe is looking at bank equities and looking at the shrinkage in the market capitalization of Something Like<\/a> a Deutsche Bank<\/a> and they believe it is their cue to now buy Corporate Bonds<\/a> and it is is complete madness to me, but then you have a view on when that might stop or if it is ever going to stop. Only one glide path to the successful outcome which is a recovery in europe and ecb, S Central Bank<\/a> starts to moderate the policies and we return to normalcy. And you cant do it without the fiscal policy, and that is not happening. Exactly, and so the policy over there has caused a global drop in the Interest Rates<\/a> and right now the fed is not the main game in town. Led zeplen is reappearing and having a comeback concert in europe, and this is the situation. The european situation drag our rates down and causing the issues. We are less than a couple of hours from the fed decision, and followed by the janet yellen News Conference<\/a>, and Steve Liesman<\/a> is there live at the Federal Reserve<\/a>. This is centering around the banks, the overall stock market, and we are not going to be getting the yield curve is not going to bet getting any help from the fed today, is it . Not today. And this is a pretty important meeting today, because we will get the forecast from the Federal Reserve<\/a> to set the tone for the quarter until the fed comes back in september with new forecasts to determine how much summertime vacation the najarians can take. And three keys to the meeting. Yell slen is cautious on the rates and optimistic on the economy, and she faces that weak jobs report, and the brexit, and the declining expectations, and the global rates, but the better second growth quarter that stephanie was talking about and better retail numbers, and that is the going to be edged down a little bit in the near term, and the issue of will the fed downgrade the outlook for rates yet again . From here, you can see that the average fed member has cut the forecast for the average fund rate for the past three meetings, down, down, down, and zoom in to show you compared a year ago, the average fed member has cut it from 116 to down below 1 , and the forecast is below 3 , and now down to 2 , and now, seven quarter rate hikes have been bakd out. Larry sums in the blog overnight compared it to groundhog day, and so what i am waiting for at 2 00 is do we get the song i got you babe playing on the radio. And plays to the Jeremy Gundlach<\/a> comment s ths that the is locked down and doesnt know what to do. And we have to get off of the roller coaster ride, scott. We are going to hike, and then a single report comes through, and raises the questions about the outlook, and then off of the rate hike again, and so it need s to be a more fundamental basis for hiking and not hike, and what summers is saying is that the fed is offsides when it c e comes to the policy. And steve, we look forward to you this afternoon and it is going to be a big afternoon. And what song will they play is . Yes, Steve Liesman<\/a>, and good stuff. This is what else is coming up on the Halftime Report<\/a>. Still ahead, facebook smackdown. We will have a bull versus bear debate that you dont want to miss. Plus, china may be the largest emerging market out there, but their local stock market still isnt included in the global benchmarks, and why the mainland is being denied access, and what it means for your money. And the business of basketball. Nba commissioner adam silver weighs in on how the league is leveraging social media to attract even more fans. It is coming up on the Halftime Report<\/a>. Halftime report sponsored by fidelity investments. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Man 1 i came as fast as i man 2 this isnt public yet. Man 1 what isnt . Man 2 weve been attacked. Man 1 the network . Man 2 shhhh. Man 1 when did this happen . Man 2 over the last six months. Man 1 how did we miss it . Man 2 we caught it, just not in time. Man 1 who . How . Man 2 not sure, probably offshore, foreign, pros. Man 1 what did they get . Man 2 what didnt they get. Man 1 i need to call mike. Man 2 dont use your phone. Its not just security, its defense. Bae systems. Already. Back on Halftime Report<\/a> and the facebook shares have been under pressure since the noted short seller said he was betting against the stock, and not all agreed including the tech investor paul meek, and we welcome them both on for a social debate. Andrew, to you first, why facebook, and why now . Well, it started like this in february i suggested buying shares of linkedin and then after they were taken out this week, i said, oh, by the way, i happy to be shorting facebook and now i am shorting facebook based on the larger portfolio, and si not recommended for everyone to short facebook, but if you are long facebook, look at this as an opportunity to sell it, because there is a few d Disturbing Trends<\/a> that you cannot ignore. And the first one is is the study by similar web which discusses the use of social media is declining across all forms of social media, and as much as you can grow from the network effect, you can decelerate, and second of all, if you go to look at ad week, you will hear them discussing snapch snapchat, and anybody will tell you if you have a millennial or if you associate with the millennials, in that age group, snapchat is getting good mine share, ab they have created an ad platform that cannot be denied and lastly, the most important thing, when you have a 320 billion company, and in order for it to progress and move the needle and move forward, you have to have new initiatives which facebook is launching, but they are unknown with the success. Like facebook video, and the largest watched video is chewbacca mom, and nothing against chewbacca mom, but until les moonvez is going to the give her a deal and we can monetize chewbacca mom, and that is the new face of facebook video, maybe you will take some profits here. And paul meeks, you take issue with anything that andrew said . I sure do. He did highlight the network effect, and that network effectt is going to continue to power the company, and as per snapchat, i would have loved to see facebook for the 3 billion offered in 2013 for a private company that is estimated to be 18 billion in value today, i would have loved to see that deal done, and it is a great platform, and now that they are opening up the apis to third pars, they will take some share, but offtime, facebook and google are going to be taking share in Digital Advertising<\/a>, and Digital Advertising<\/a> is going to be taking share from traditionaled ver tizing. And andrew, you say that facebook is losing relevancy, but the data does not back it p up. And studies may say, but look at the actual facts, daily users up, mobile engagement up, and digital there early, but growing, and they are in the early stages still of monetizing instagram, and doesnt that count for anything . Well, there is so many areas that you touched on there. Yes sh, they are in the early stages of monetizing en sta gram, and monetizing that will be cannibalizing from the existing business, and usage is down, and you can look at the study numbers or actual install, and i would suggest that the eyeballs they are losing right now, are a lot more valuable than the eyeballs they are gaining in certain parts of the world. So, all of that factors into it. Obviously, you are patalking about, facebook is not a bad company, and i dont want to suggest it. They have done wonderful things to connect the world, and tremendous installs, but we are talking about moving the needle from where it is now, and if you think that they will take more of the share between them, and google, it is a dominant share of the Digital Media<\/a>, and the argument is that Digital Media<\/a> is going to be taking more from the traditional media and that is going to go to google and facebook, and for that just look at the i got you. Paul meeks, all things equal, maybe this is as good as it gets for facebook. No, i dont think so. When you look at it, one of the things that had not been a part of the picture for facebook in the past, was the arpu and now the average use per user is continuing the grow in every region, and that is a big part of the growth in what we would describe as unit volume. In the meantime, i would say that the Company Trades<\/a> at about 25 times 2017 earnings so i see some visible growth, and so it is not a apple story to see the slowdown, but for the relative growth rate, and i believe that the analysts are low on the estimates of the revenue and eps this year and next and it is not particularly expensive stock. It is not cheap, but it is an attractive stock. And you they andrew is exaggerating the threat of snapchat, right . I think that snapchat is a worthy property, but i think that they will be successful, but facebook and google earlier no the game will be much more successful and regardless of the traction that snapchat sees. Andrew . I mean, you dont have to take it from me, and you can take it from mr. Zuckerberg himself when he was looking to the future of facebook, and discussing artificial intelligence, and discussing new initiatives that the they have that are not currently Instagram Facebook<\/a> initiatives and they will not cost money or generate the same margin, and they will have to create the content, and find new ways, and hoping that again that the eyeballs that they are gaining will be as valuable as the eyeballs they are losing. They have done a great job the take it here, but it is all about making money, and i m talking about facebook as a stock, and company, and as a stock, this is a great time to sell, and in my opinion, this is as good as we are going to be see, and at 320 billion that is not a bad statement to make. No, it is a fair comment, and you are entitled certainly to make it, and it should be debated. Josh brown has something. Two things. I agree with andrew on the threat from the snapchat, but it is not quite an earnings and revenue threat, but it is more of the mind share and the attention of the teens threat, and it is legitimate, and im on snapchat if anybody would like to follow me, but it is a very different experience to follow my friends on snapchat than to keep up with my family and old friends on facebook and i have used both. And the real threat, guys, maybe to both is musically, and that is backed by the Chinese Company<\/a>, and so nobody can invest in it, but if you are worried about the future, and you are thinking of the people under 16 years old, and pretty much musically monopolizing all of their time, what are the thoughts there, and is that what we should be talking about . Andrew . I mean, i think that right there that shows you that i actually covered in citron, i covered mispace, because i thought that they would be bought out, but at the Current Business<\/a> model they will phase out. Both things happened, they got bought out and then phased out. I suggested buying linkedin and now sumging to sell face booshgs because when you this company, you can be disrupted and the structure there and the network effect, and as josh was saying, right now, you have other networks and more im sure in the next 20 years before we take facebook and model it out, we dont know what social media is going to be looking like in ten years from now, and to say that we will, we are naive. And so to assign a 320 billion valuationk and this is not procter and gamble or exxon, but a social media company. And a technology company, and 20 years ago i would have bet on ibm as a tech company. It on shows you how dangerous at these levels to hold this stock, because kit can be disruptive. And paul meeks, you . And first of all, i would not focus on the market cap, because it is trading at a decent valuation, because it is going so fast and it is not Procter Gamble<\/a> and not ibm or exxon, but something better. Z zuckerberg and co are cognizant of the threats and if you look at the article that you posted recently of the Vice President<\/a> of europe on facebook, they know that the world is all video, and they are planning on it, and they will lead the charge. We are going to make it the end of that, and guys, thank you, paul meeks and andrew left of citron, and we hope the continue the discussion soon. And now, we will talk about the trade of whole foods. And volatile day for crude oil trying to rally from the threeweek low. And we will go to the pits. And also, taking a look at the ret retailers today, and you realize that the xrt is on pace for the best day since april, and maybe we can thank pvh for that. Halftime report after this. Todd spaletto, president of the north face, we are working on the prototype to match customers to gear. Watson, lets give it a try. Say its midjune and im backpacking in yosemite. Of our 353 jackets, i can recommend nine. Watson, what if it rains . There is just a 3 chance of rain, so i recommend the breathable stretch fleece fuse form dolomiti jacket. A Perfect Choice<\/a> watson. No wonder our Customer Loyalty<\/a> numbers keep climbing. I believe we can do even better. I like the way you think. I believe we can do even better. I could get used to this. Now you can. When you lease the 2016 es 350 for 329 a month for 36 months. See your lexus dealer. Here at the Td Ameritrade<\/a> they work all the time. Sup jj, working hard . Working 24 7 on mobile trader, rated 1 trading app on the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of other competitors do on desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivatives pricing model, honey . Td ameritrade. Welcome back to halftime aand over to sue herera with the headlines. This hour, disney is announcing that all beaches at the walt Disney Resort<\/a> are closed after an alligator dragged a 2yearold child underwater near the Floridian Hotel<\/a> last night. The florida sheriff in charge of the investigation says no question that the child is dead. It has been now about 15 hours since the child was taken into the water by the al ligato, and so we know that we are working on recovery, recovering the body of the child at this point. So on behalf of everybody who is engaged in this effort, our ultimate goal is to try to bring some closure to the family. Renewed clashes overnight at a pakistan Afghan Border<\/a> crossing killing one and injured five others. It escalates the tensions between the two neighbors. And the debate of whether or not to leave the uk takes to the wa ter. Boats supporting each side fl t floats up and down the thames. Panera bread is ditching the artificial ingredients in athome grocery products and expects the 50 products to be free of all additives by the end of the year, and it is committed to removing the artificial ingredients at the bakery cafes. That is the news update here, and now over the dom chu. We are watching the dow report saying that the chinese firm ten cent is near a deal to buy a video maker called super cell which is the Company Behind<\/a> the popular mobile and other games like clash of clans, and booms beech if you are out there with children who play these games, and the source said that they are looking to acquire soft banks majority stake in the supercell and the deal could be finalized later on, but if so it is tencents biggest acquisition. A and this time, it is to a Chinese Company<\/a> buying a Finnish Company<\/a> for the popular game clash of clans. And nogo is the word today from chineses stock s ts on th Worlds Largest<\/a> emerging markets index. Bob pisani has more on this, and i dont know, surprise to you or not well, surprise to me and other people. And the index was delayed putting their stocks into indexes, and so now, listed in overseas markets like the u. S. Are included, but that is nearly 1 10th of the capitalization, and so the decision not to include them in the global indices, but they said that china is not ready for prime time. They have done a lot the make their markets more open, and they have increased the investment quotas for the foreign firms and said that they do own the stocks outright, and stopped the trading halts which caused problems earlier in the or yoo, but tin ves or thes are looking for the authorities to lift or change the limits of the foreign withdrawal of funds, and that is important, because the Fund Managers<\/a> have to deal with the unexpected withdrawals, and they have implied that the investors needed more time to look tat the effectiveness of te policy changes that they have e mae. So china is already heavily represented, and in particularly the emerging markets, and they are already 25 of the index and if the Mainland China<\/a> was included, that weighing would go to 40 . And they made it very clear that the mci inclusion is very gradual. Scott, this is in the inclusion of them doing something next year, and a lot of the u. S. Advisers here were not prepared the go allin this year. Yes, thank you, bob by sani and we have raised this issue when this is looming thinking that it might happen and whether it is good or bad for the u. S. Investors . Well, it is eventually good, but it is pushing the time frame out, because of the readiness, and they have to do system of the improvements and one of the most concerning things is the halts. That is an issue for all of us, and when you are investing, you dont want to have to invest with something that might go on for weeks or months, and that is at issue. It is something that inevitably it is going to happen, scott, but it pushes out another six mont months. And we asked about the risks that is posed, steph, to the american investors investing in these kinds of things given the transparency issues obviously raised for the last several years. Yeah, it is transparency, and this withdrawal issue as well. You have to have a liquid market and transparency and know what is going on and i argue that the European Companies<\/a> are not transparent, so they have a long way to go, and so we have to assess what they have already done first, and then kind of addon as gradually as we go. Gradually. Good or bad for the markets for the decision to wait. Josh brown . Well sh, there is some talk the industry, and i wont name names that msci may have been influenced by the large asset firms who use their benchmarks to create products and blackrock is a prominent example, and msci is a massive market indicator, and so there were some firms not comfortable, and so, hey, push it out. So the other element is that the currency situation, you know, it may not be ready for primetime, and that is factoring into the decision. The u. S. Does not have a swap relationship on the rumendi and ift that is not resolved, it is putting the cart before the hor horse. So i dont know if people should be shocked that they are doing it slowly. Probably a good thing that it eventually happens, but i dont know if two months or six months is primary here. And judge, if they wanted the do it, wouldnt the regulators have given them a light and said, do it, because like any provi provider of the index, they can create anything, msci can, because it is a free country, but would the regulators then open it up to the investors because of what pete mention and josh and steph as far as the transparency, and the stops, and the trading halts that have gone on in some cases for months, and would you be comfortable having that available to u. S. Consumers when you have basically said, well, you know, you are wont be able to the redeem for several months, and people dont like gating with hedge funds, and they sure would not like it with the etf. And conversation to oil down four Straight Days<\/a> trying to break the streak four Straight Days<\/a>. And Jackie Deangelis<\/a> has more with the mynex futures. Yes, scott, prices are trading lower ahead of the fed, but pairing the losses after the doa crude report. And anthony gra sisanti, what a you seeing . I am a buyer if the levels dont go lower. And what about you, anthony, do we blaek over 50 soon . Well, that is interesting, because this morning, the low was 47 double, and call it the low, because that is going to be touching support from february and april to the upside, and the recent high of 51. 50 which is head fake high in autumn of last year, and that is is the range, and with which way it goes versus right, we will see. We will see. For more futures go to the website, and we will be back with a live show thursday. Thank you, scott. Thank you, jackie. We are headed out west to the icon conference, and we will talk to nicole glaros, a start up incubator, and also the nba commissioner adam silver, and get a take on how the league is using social media to grow the fan base. As we are going to break though, take a look at the halftime leader board, jon najarian is in first and distancing from the pack a little bit. You feel good about that . Well, trying to extend it here, judge. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets<\/a> and drive forward with broader possibilities. Cme group how the world advances. eeeeohmumohweh hush my darling. dont fear my darling. the lion sleeps tonight. hush my darling. man snoring dont fear my darling. the lion sleeps tonight. woman snoring take the roar out of snore. Yet another innovation only at a sleep number store. Real is touching a ray. Amazing is moving like one. Real is making new friends. Amazing is getting this close. Real is an animal rescue. Amazing is over twentyseven thousand of them. There is only one place where real and amazing live. Seaworld. Real. Amazing welcome back to the Halftime Report<\/a>, and we have a new development here in the ongoing battle of who is the next ceo of home builder pulte homes. Earlier bill pulte, the founder of pulte homes and the largest shareholder sent a letter to the pulte homes board of drirectors in which he identified a certain criteria that he felt relevant for a new ceo considered for the company, and he said that he privately identified certain ceo candidates to the board themselves, and now we have a response from the pulte group in the form of a letter from the board member Patrick Oleary<\/a> in which they talk about a number of things, but he acknowledges that they have shared the letter with the full board and the executive search firm, and they have also identified that the individuals submitted will be given appropriate consideration with the criteria mentioned and all of this takes time when the process is conducted in the summer, but they go on the say, that i want to be upfront in saying that it is the role of the board to select pulte groups next ceo, and so your involvement, meaning bill pultes involvement must be limited to this request for candidate names, and we will keep you posted of any new developments there, and so an interesting back and forth between the yoowner bill pulte, and the board of shareholders. So it is unclear really what role Elliott Management<\/a> is playing in this whole deal since we broke the news of their position, and a somewhat large one in the home biuilder. And that is right, and with your news that you broke with elliotts involvement, and you wonder how much pressure is exerted there, and when you are the biggest shareholder of the company there, and activist hedge fund involved, there is all kinds of dynamics behind the closed doors but certainly a 6. 5 billion home builder in the target of a lot of guys here is getting attention especially in the Home Building<\/a> sector, guys. Thank you, dom, so much for bringing that to us. Dom chu, breaking news for us. Rough ride in Silicon Valley<\/a> where the privatizations have been falling, and markets stalling, and that is not stopping and up and coming entrepreneur, and our next guest has a pulse on the tech, and nicole is a boulder incubator ceo at the conference. Thank you for having us there. Is and what do you do there . We are a seed company, and we invest in companies, and also an accelerator, and surround the companies with a mentorship, and put them through the 13week boot camp and contribute to the success. It actually works and the National Statistic<\/a> ist 90 failure of the early stage startups, but we are showing the 90 success rate, and so putting the men torship around capital and startups works. And how selective are you in the process as you are getting inundated . We see 10,000 applications a ye year, and we select somewhere of 11 to 2 of the companies. By what criteria . Oh, we have a set of five items in the criteria list, and look at team, team market, and track shup and idea. We look at team first, because in the early stage of the company, it is the quality of the team, and how well they can execute, and how passionate about the product, and how well they communicate with each other and i guess for many of the entrepreneurs this is sort of like a Good Housekeeping<\/a> seal of approval sort of thing, and if they pass your test, they end up going out into the marketplace and having a much, much easier time raising a substantial amount of capital, no . Yep. That is right. And especially because at such an early stage, the risk is so great. So what we do to minimize the risk to investors and those investing in the companies. We work hard with the company to make sure that the team is stol lid and they have what we call the Product Market<\/a> fit, and it is what the market wants to buy the product, and that is really making it a little more interesting to the investors out there. And i have one investor in front of me, jon najarian. Hi, jon. And that vetting process must be extremely difficult, and you talked about number of the boxes that they have to check, and can you give us the top three boxes in addition to the passion of the industry, and basically how well they sell themselves . It is interesting that you say boxes, because that is indicating science, and there is not really a science here, but it is an art. It is really learning how the read between the lines, and is this company, the company that has the guts and has the execution abilities and has the vision to make a really big global impact, and that is not something that is formulaic, and it is hard to determine. So we are looking for the passion, and looking for the ability to execute, and really looking for the large market opportunity, and a combination of that equals magic that is hard to detect, and that is what we are good at. And lastly, you have a vc arm and you have invested in uber and twilio and people are excited about the fact that twilio is going to go public within a week we think or thereabouts and wondering if that window is going to be reopening, and how do you view that situation . I think that the it is a great opportunity. We have all seen the ipo market stalling, and to have Companies Going<\/a> public right now is a good thing for the marketplace, and hopefully that will improve the trend toward ipo. It is great to have you on the show, and glad you are participating in iconic, and im sure that you have en tre fre neurs coming up all day to day talking about it today. Yes. Thank you. Thank you, nicole. And now, coming up at the top of the hour, michelle . Well, coming up we are counting down the feds latest decision on the Interest Rates<\/a> and what are the policymakers are going to say in the statement. We will have instant reaction from a lohse of big names including scott from goog en m him, and also, janet yellen has the press conference at 2 00 p. M. , and you want to tune in for that, and we have two big hours ahead, scott. Thank you, michelle. Nba commissioner adam silver on the record, and steph currys sky high ratings, and the media push as well. Plus, twitter shares are getting a boost as they invest millions into the music streaming platform. And what shareholder josh brown thinks of the move, and talk of the takeout as microsoft and linkedin are doing a little dance. From your lips, scott. From your lips. All right. We will be right back. Welcome back, more on the developing story we brought you earlier concerning viziom. As we told you the s. E. C. Alleged that sanjay velani engaged in Insider Trading<\/a> when he worked at viziom. Involved two other people who were named. Theyve pled guilty. We have a statement on behalf of sanjay vavani. The response is Sanjay Valvani<\/a> is an innocent man whose Investment Decisions<\/a> were always based on rigorous and appropriate research and analysis. He and his counsel look forward to his day in court where it will be shown that the prosecution of mr. Valvani is yet another example of the United States<\/a> Prosecutors Office<\/a> to stretch the facts and law to try toe transform entirely innocent trading decisions into crimes. So a situation that continues to develop, scott. It will be interesting to see where it goes from here we have his response, back to you. Thank you for that sue herera. The business of basketball has never been better, thats what commissioner adam silver told me this week in our final sitdown in oakland. Record ratings in the finals, soaring franchise values and emerging star like steph curry dont hurt. Another reason could be the leagues push towards new technology to help spread the games popularity. We encourage our players and teams to put themselves out there from a social media standpoint. Our teams are tweeting, on facebook, instagram, all the major social media platforms. As are players, they understand theres rules they have to live within. Theyre employees of the nba at the end of the day, they have to be careful just like they have to be talking to the media. We encourage them to be multiadministrational, to show all parts of their personalities. What they, the music they listen to. The clothes they wear and to communicate directly with their fans. I think its added a whole new administration for our fans. And a way to get closer to our players. Do you feel like you embraced new forms of technology, maybe more so than other leagues have looked at to try to advance your game . Part of what weve tried to do through Digital Media<\/a> and social media is replicate the courtside experience, everybody has said thats the best seat in sports, sitting courtside. Were using the technology to try to replicate that. Many of whom fans will never be in an arena, and most of whom will never be in the United States<\/a>. You can watch the remainder of the enter interview exclusively on cnbc. Com halftime. Stick around for the names, plus just about an hour away now to the fed decision, were going to give you final trades ahead of the announcement and the News Conference<\/a> next. This man creates software, used by this bank, to protect this customer, who lives here and flies to hong kong, to visit this company that makes smart phones, used by this Vice President<\/a> , this little kid, oops, and this obstetrician, who works across the street from this man, who creates software. They all have insurance crafted personally for them. Not just coverage, craftsmanship. Not just insured. Chubb insured. mamost of the show. We missed woman and theres no way to restart it. jon bon jovi with directv there is. You see, weve got the power to turn back time so lets restart the show that started at nine and while were at it, lets give you back your do and give her back the guy she liked before you hey, thats the power to turn back time. vo get the ultimate allincluded bundle. Call 1800directv. More than an hour to go before the big fed decision, power lunch all over that in a matter of moments, three things our experts with watching. Josh, what do you see . An industrial ready for a breakout . Well so the cool thing about ge, they get rid of all the bank stuff or most of the bank stuff. Did a spinoff, they sold off assets, so now it doesnt trade with the financials and it just popped back above its 50day moving average for the third time since december. I dont know if third times the charm, ive highlighted this as a stock that wants to break out. Obviously under accumulation. Rsi is confirming the latest move. If it can get above 32, 32. 50, i dont see why it cant keep rolling. Theres no resistance above that level. If you go back 20 years on the chart. This could be an historic move. Im long. I think it can get higher, its been a very frustrating time trying to get above that level. Steph, a gaming stock . Mgm, the stock is up a quiet 8 on the year. A lot of that is because theyre doing good things in las vegas. Thats where about 70 of their ebita comes from, and the other is in china, macao. But the supply demand situation in las vegas is really very favorable. So theyre getting price increases, they have room expansion, casino expansion. They have this Analyst Meeting<\/a> tomorrow, i think it will be viewed positively. Up 3 today, i wouldnt chase it but if you own it, you got to hold it and if you dont, wait for a pullback and then you buy it this is a really good story. Did you buy this one today, pete . No, im in wynn already. We stalked about steve wynn has been unbelievable. Melco as well. The entire area right now, scott, its been under the radar. Nobody has been talking about that. We talk about china and some of this, the news today, yet you look at the names, and since the bell, scott, look at what the stocks are doing right now. Theres been options going out there and trying to buy upside even more. We got a couple of minutes left, lets talk twitter for a few minutes if we could. 140 characters, plenty of time. The stocks been on the move and its ever since this microsoft linkedin thing. Theyre spending money on sound cloud music, investing 70 million. They shouldnt do that. Why . They should give that 70 million to charity. Online music is not a business. Next question. I dont think its moving on that. Thats not why its moving. Linkedin. Do these deals ever happen back to back . The 70 million has no connection with why the stock is moving . I think speculators, theres an acquisition in the sector, they go who else could get bought and nothing happens for two years. I dont think anyone should buy twitter because they think theres an imminent buyout. Of course it will happen tomorrow and you guys will replay this clip. But thats not the reason we like this. Many of us on the desk have said you dont want to be short this name. You dont want to be short twitter because youre worried about a takeout. You never know. On the other hand, im not long it. Because im not going to wait around forever. Ill hold you place for you. You dont want to be long it into the fundamentals. Lets finish 25 seconds on the fed, whats the big risk for investors today . Take a look at the way. We talk volatility and we hit it up to 22, we were at 14 on thursday last week. We get the huge spike, now weve been pulling back, pulling back. Its still above the 200day moving average. Keep an eye on that. Well count down to the decision by the fed. Tminus 59 minutes and change until you get the feds latest decision on Interest Rates<\/a>. Could they surprise everybody and raise rates . The market is not betting on it. It could happen. Welcome to power lunch, it is michelle and i for you today. Melissa is off. Tyler is on assignment. Here is your market setup ahead of the fed. Right now as you haed from scott, the dow is not doing much, up 21 points, everybody is in a Holding Pattern<\/a> right now. The bond market, the benchmark 10year hold steady with a yield","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia800306.us.archive.org\/18\/items\/CNBC_20160615_160000_Fast_Money_Halftime_Report\/CNBC_20160615_160000_Fast_Money_Halftime_Report.thumbs\/CNBC_20160615_160000_Fast_Money_Halftime_Report_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240625T12:35:10+00:00"}