Transcripts For CNBC Power Lunch 20150319 : vimarsana.com

CNBC Power Lunch March 19, 2015

Kitchen. Well show you how. Okay. Lets get to it. We begin with what could be Ground Breaking development in the war against alzheimers, the biggest news event in biotech this year and bet your Bottom Dollar investors and us watch closely. Biogen releasing full data tomorrow on the drug. Shares are rising, and in fact high today at 1. 8 as we speak. What is at stake here . Hey, mandy, a lot. Start with the size of the problem, more than 5 million americans currently have al timers disease, and that could triple by 2050 according to the alzheimers association. Its now the sixth leading cause of death in the United States. Treatment options are limted. The only drugs in the market work on the symptoms rather than slowing the course of the disease. In recent years rs theres been a number of high profile failures of drugs making this a very risky bet. Agents data in december were positive. The study was small and named primarily to evaluate safety. It shows signs of ethics as well, removing plaques in the brain associated with the disease and stemming declines in memory loss and thinking clearly. What we got in december were top line results. We did not have the details. Thats whats coming tomorrow. Analysts looking to see how strong the drug looks to be as well as clues about safety. They said in december they plan to move into phase three trials skipping results, skipping over clinical studies, giving people hope for strong data tomorrow. A successful drug for alzheimers could bring in 10 billion in annual revenue. Of course, thats setting the stock up for big moves tomorrow. The downside up 20 if the data is a major disappointment upside of 15 if positive. Most analysts are optimistic, but its been a tough area for drug development. Tyler, back to you. All right, thank you very much merks gg. Rallied big yesterday, and oil back on the slide today. Dollar related moves yesterday, and today, maybe, moving the other way, partly for that reason. Jackie deangelis tracking oil. Youre right. The dollar gave us the opportunity to rally yesterday. Stronger dollar index over 99 today, a factor pushing crude to 45. 09, dipped under the level of 45, but interesting to see how we close today, down around to a buck50 at this point. Traders are talking about the commentary from opec. No change in position here. They are reiterateing no Production Cut at the june meeting, and that in fact production levels are steady because its really about market share for the cartel. Again, anybody who thought we could see a change in june is certainly taking that off the table at this point. Here we go. Its opey kicking the can to us saying its the u. S. To reduce production to bring prices back up, and, of course we know here companies are cutting cap ex but these could be rigs depleted as well. Theres factors here. Were back to the supplydemand story. Youre absolutely right, the dollar is key as well. The traders think we are lower from here. Back to you. Thank you very much for that. Talking of going lower, stocks giving back yesterdays fedfueled rally. The numbers here, dow off by 125 points s p down by 12 and, in fact, the s p has not seen backtoback gains in a month. The dollar rebounding today, recovering almost almost all the fed day losses but yield on benchmark 10year notes below 2 mark at 1. 979, dropping below that post bid yesterday. The trading action bob is on the floor of the Stock Exchange boy, we had a big meal yesterday, but we had nearly 24 hours do digest it bob. Stocks are down. How much is due to lower Energy Shares . Its ground hog day, back to where we were exactly two days ago. Thats the problem. Looking at the same numbers you put up put up what im looking at, s p trending lower the month of march, euro as you see, dollar stronger against the euro, and crude trending down. This has been every day this month practically with the exception of yesterday. We are going to a new contract on oil, by the way. I believe the may contract starts tomorrow. Declining to advancing stocks and volume on the heavier side big volume on Energy Stocks with a rally yesterday, giving upmost gains yesterday in usual names. Every morning i come in southwest, murphy down 2, 3, 4 . That happened today. No bounce off the lows today like recently. Steel, dollar is stronger. Of course we heard allegations of chinese dumping steel affecting them. They are back down giving up the gains they had yesterday. No pop in Interest Rates, not a help to banks. Kbe, the bank etf. They rose throughout the month of february and rates move to the upside but you can see we flattened out in march, and we are down today as rates have not been on the upside. In terms of anything moving up not much. Theres a small group of some software and service companies. You know the red hats monsters yahoo twitter into it up fractionally. But, tyler, i cant say trends. Traders are focusing more on the feds comments about moderating dproet growth, and i think thats impacting the markets today. Tyler . Robert, thank you very much. The nasdaq trying for a fourth straight day of gain all be them somewhat modest. Bertha, we are just a little bit above break even right now. Yeah. We are suffering from a midday slump. If you come out, take a look apple in its debut in the Dow Jones Industrial average, not really happening the situation. Certainly not helping here. It had been up at the start of the day, but whats kept the nasdaq out performing, if you will, is the fact the health care names today are on fire a lot are big cap names at alltime highs, talking about the by bioteches, number of others as well. Vertex and theres others like cerner at an alltime high also anthem as well slumping off the high from this morning. Thats moving things higher and a number of consumer names today in play as we talk about this mobile consumerism. Starbucks hitting a high not withstanding the backlash over the race together, but you can order, pay, and get your coffee delivered via your phone on starbucks, and facebook is going to let you send cash via messenger, what does that mean for ebay . Thats why they are down today. Back to you. Lets go to dom chu for a market flash. Yelp down 4 after a trailer for a documentary film called billion dollar bully suggesting the Company Features negative reviews for businesses who do not pay to advertise on yelps platform and says some of the Business Practices are similar to those of the mafia. Shares fell sharply at the open hovering near session lows. We reached out to yelp for a comment. Well get back to you when we hear. Small caps getting a boost. Russell 2,000 off the all time high hit yesterday, but the next guest says small caps are less exposed to currency volatility and maybe a good bet for the market versus the large cap multinationals. Eric marshall, comanager of the five star small cap fund. Great to see you. As i mentioned, the russell k2k, nonetheless, where are you finding value . At the highest point, we dont see the market as being inexpensive here but not overly expensive either. I think we have to look at areas of the market that are either overlooked or somewhat misunderstood. We are finding areas like that are where we are finding good opportunities to find value. Lets dig deeper into the names here. Top of the list is cree down 40 in 12 months. Are you not worried about the story here . Would you do a little bottom fishing . Well this is a relatively new name for us that weve been watching for a long time. Its one of the stocks relatively overlooked. They have suffered from overcapacity in the led industry. These are led chips and lighting products, and that stems from a lot of subsidies that came out of china, and now that demand is starting to work through that capacity, and we dont see those subsidies out there anymore, we think eventually the market becomes rational and cree is very well positioned as a leader in led lighting. How long,ering have you own that particular holding in your fund and did you write it down . Now, i guess, you are writing it up . Its up a little bit so far this year. Yeah. This is a new idea. Just in the last month or so. Okay. Lets move on to the other names. You got trinity industries. Over the past 12 months down about 8 . Whats the story there . Why do you like it . You know its one of the things where i think its being quoted as a little bit misunderstood. Yeah. Thats a good way to describe it. Trinity is thee leading producer of rail car, and they have been perceived as being heavily tied to crude oil, making tank cars with all the uncertainty surrounding government regulations, those that going to be out in may, the stock has pulled back because of that uncertainty, and wed be really good about the business long term, and we like the noncar part of the business which is picking up, sitting with record backlogs backlogs. Company guided for 4 to 4. 40 in earnings trading less than ten times earnings here. Its misunderstood because of the exposure to the energy industry. Good explanation. Shoe carnival the last pick, up 8 . Thank you for joining us. Thank you. Mandy, is the bond market broken . The issue in the 22 trillion Global Market making traders raise a red flag. Looking at that and hunting for stocks to fuel the market higher. Dom chu has three names he says are ready to pop. Heres what the thing is. Its the blend between technical analyst, chart watching and the fundamentalist analyst take put those together, we have 15 names total, bringing you three after the break. Stay right here. Apple trading in the dow 30 for the very first time today. Replacing at t. Apple stock gained about 3 in the past week, but is done today about 1 in the last month and. 6 just today. Collaborating on a swiss smart watch, the watch is expected to be available this year, and it will use intel and android technology. Hp raising 10 , move is in effect in may when the board declares the next payout to shareholders. Stocks down today, but the fed, again, putting a bottom in the bull markets. Which stocks are ready to rally the most in todays market . Dom chu has three names set for major pop. We blend technical analyst, chart watching with fund mal analyst and target prices. Carter worth, the chief market technician put together a universe of stocks with technical charts that look good and we put them alongside on a consensus basis. General motors see it here. What were looking at if you want to look at the charts this area of 38 per share. We broke above it. It was resistance prior. You can see here and here as well. We got above it. Maybe that sets up for upside ahead. Right now, theres a 43 price target on the shares implying a possible 12 upside from here. If you move on to the next one, another big cap name to talk about. This one is a huge one in Data Base Software and clientrelationship management. Crm is the ticker. Sales force, yeah we found the support here moving back again to the upside. Thats a nice move and with crm, talking about a 74. 5 price target, 12 upside. Finishing with a last one, a company we all know apple. Goes in the dow today i heard of it. Commemorating it. Goes into the dow. See the upside, a bit of consolidation and possible move higher again. Analyst have almost 138 price target implying 10 up. Thats three to watch. Coming up on cnbc if you want to see more, cnbc. Com pro and next hour we have a home goods retail name that could be poised to break out. Its not williamssonoma or home depot, but a name you know. You got my interest there. Home goods, tjx. Good guess. Its a tease. Next hour. Cnbc. Com pro. Theres always more ty. Theres always more. Okay teslas ceo unveiling a big plan to end socalled range anxiety in his electric cars but investor anxiety is another matter. Stock down 10 this year. Well talk to one analyst about where the stock goes from here. Plus, crime and punishment, andrea day is always on the case. Casinos are known for top security, so how did a group of conmen walk out with millions of dollars . Coming up here on power lunch, the latest in the scam that was all caught on camera. 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Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . [ male announcer ] your love for trading never stops. So if you get a trade idea about, say organic food stocks schwab can help. With a trading specialist just a tap away. Whats on your mind lisa . Id like to talk about a trade idea. Lets hear it. [ male announcer ] see how schwab can help light a way forward. So you can make your move wherever you are. And start working on your next big idea. The scheme began on the other side of the world, and in the end, it cost u. S. Banks millions. Andrea day here now with a crime and punishment update. Imagine walking out of casinos with millions in stolen cash. Aen brazen con has been sentenced. He was hit with more than seven years behind bars and investigators say one of the bosses behind an elaborate bank fraud. Banks were robbed of more than 9 million. They used cash access machines meant for high rollers. It was caught on camera. The men opened phoney business checking accounts at banks. Once established, they deposited counterfeit checks before the banks closed for the weekend because the banks would make some Funds Available right away for business accounts. They hit up casinos to withdrawal the cash using a special high roller machine. The casinos actually unwittingly were facileitateing activity because that transaction, thats what the casinos rely on. Hes ordered to pay 3 million in restitution. Back to you. Great stuff, andrea day. A dramatic move in the dollar in the last 24 hours, and currency plunging 3 and after the fed statement yesterday, but its rebounding today and the dxy is up by. 7 . We are tracking the action from the nyse. Do people feel the path of least resistance is up from here . Absolutely. It has been an epic 24 hours in the world of currencies. A round trip for the dollar. First plunging after the fed meeting, and then recovering. They are making it clear they are in no hurry to rise Interest Rates with the dollars first climb hurting exports and inflation rates. As said yesterday, the Federal Reserve finally entered the currency war. The question from here is can the fed really talk down the dollar, and the answer, according to most strategists today, is no and they expect the dollar throughout the year and into next year but the fed can slow down the climb, and after all, the u. S. Economy is stronger than the rest of the world, and especially as the u. S. Shakes off the frigid weather, the port dispute, and eventually the Federal Reserve will lead to higher Interest Rates. Thats why the view today is get used to a stronger dollar and if you want to bet on a bullish dollar, buy etf, uup like a stock that invests in dollar futures, one of the most popular and most liquid but even if the dollar keeps moving up here, it probably wont be a stunning move that we have seen almost 30 against the euro just over the last year because the fed is now engaged. Thats important, mentioning it specifically. Thank you very much. Lets flip over to what Precious Metals are up. Gold closing now. Were up by 1. 5 there. We hit a two week high earlier. Moving out to jackie at the imex to see whats happening with gold. Good afternoon. Its interesting sarah talked about the rise in the dollar and metals are are bucking the trend, up across the board today, and we are seeing a big move for gold today, 16 over the crucial 11. 50 level, and traders tell me its the concern that the fed tightening timeline are not what people were expecting pushing gold higher today. Still, even though we have a little bit bump up gold has not been a great trade for the year. The last 12 months its done 13 , and traders are not really in love with the trade in saying its probably more Short Covering right now than new buyers in the trade. Back to you. Thank you very much for that jackie. Dom chu, whats on the plate for market flash . The metals theme, base metal, gold in some way. Watching shares stock falling 4 after protesting workers brought production to a halt for a fourth day in a copper mine in indonesia. This is one of the largest producers in the world of copper. The block mining indonesia is one of the largest in the world by production, so, tyler, freeport is one to watch today. Back to you. Thank you. Rick santelli tracking the action. Hi, rick. Call it a mean reversion day or keep it simple the rubber band stretches back and that indeed is the case today. Lets look at twoday charts twoday of five year you see about half back in terms of its big drop in yields and it is up eight basis points today. The other end of the curve, 30 years, theres less than half back, and they are up about 3 points. Look at whats going on in bunds, they fell in yield and stuck down in the under 20 basis point yield, and keep with the european theme, two day of euro versus dollar pretty much gave it all back. Look at the hyg, barometer of credit risk yes, giving it back as well. Like yesterday, well its like it never happened. Back to you. Rick thank you very much. Teslas ceo elan musk ening range anxiety in the electric calls, but investor anxiety is another matter. The stock down 10 on the year. We have a bull on the stock. Wait until you hear the price target. Plus, is this the end of uber in new jersey . We are live in

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