Networking giant linkedin getting quite a boost after the stock was upgraded by needham and company. They upgraded from a hold to a buy. Needham said because linkedin, has quote, unexploited growth opportunity. Ashley fruit and vegetable producer dole foods has agreed to go private after 1. 2 billion offer from chairman and ceo, david murdock. Investors receive 13. 15 a share. That is an increase of 1. 50 doctor from murdocks offer in june. Liz wishbone salad dressing unit has been bought by pinnacle for 580 million. Unilever will focus more on personal care products. Ashley reuters says the commodities regulator, cftc is stepping up its investigation into allegations by Companies Like cocacola, warehousing firms pushed up aluminum prices. Cftc reportedly subpoenaing a warehousing firm yet to be named. Liz piano maker, steinway the target of a bidding war. It appears there may be a winner. Steinway received a new proposal for takeover this one for about 477 million from an unnamed Investment Company that beats an earlier bid from the private equity firm kohlberg and company. After the bell starts right now ashley lets get to todays action. We have david lutz, stiffle nicolaus managing director with the biggest risk to the market and Lincoln Ellis in the pits of the cme. Lets start with lincoln. We crossed this flat line number today, lincoln, 56 times. No big surprise. Were in august. Kind of drifting summer doldrums and so on. We may have movement tomorrow when we get july retail sales, right . Absolutely retail sales. They are the at top of everybodys list along with the inflation data. You notice there is seesaw action in stocks and bonds both came as we saw Interest Rates moving up a little bit earlier in the day, in materialses of price, pushing some of the yields down. Then as stocks begin to selloff, you saw the inverse happen, the stocks made their comeback in the balance of the day. Information how retail sales are progressing particularly as we approach the backtoschool season will be absolutely crucial to understand the health of u. S. , the consumption led economy in the u. S. Inflation data this week, part of that puzzle on the feds mind. Liz were talking domestic. David lutz, want to bring you into the conversation. One of the things youre watching happens to bank of japan, the boj. We found out there was a worse than expected outlook for gdp for japan at the moment. Why does japan matter to our domestic investors right now no liz, thanks for having me. It is simple enough. If the bank of japan continues on its easing policy, that will be pumping more kwan quantity into the global stock system. That will benefit the u. S. Investors on two fronts. First of all on equities because qe is clearly benefited the stock markets run over the last two years. Second, bond investors. Because withs been going on, yields in at love japanese bond are significantly lower still than the u. S. Bonds. So we have a lot of asian demand coming from the pensions and institutions for u. S. Bond. So its a twofold effect from bank of january. Well hear what minutes have to say overnight. Ashley david, let me stick with you. What sectors are you looking at what sectors are you betting on in this somewhat uncertain environment . Clearly the retailers will be a big focus. Xrt, retail etf, lost 3 last week as we saw some profittaking in the sector. There will be a lot of earnings going on that will be skewing these numbers going forward. I would say one of the more main sectors im paying attention to is probably the homebuilders. The homebuilders were the worse performing sector last week. The homebuilder etfs are down 20 almost in bear market from the high couple months ago. We have data coming from the july sales. More importantly were seeing a lot of yields climb significantly in the United States stablizing and colling down in. Those are tailwinds for a lost homebuilders out there. We see a lot of shorts covering in that sector. Liz i want our investor viewers to listen to what you just said because when they start to see a little bit of weakness they get scared. Youre saying that is a buying opportunity. Specifically when you look at homebuilders which ones should they look at . What quality should they be picking . I think it just matters more probably for the regionals, liz. To brothers obviously had a great bid to each and dhi and pulte had a great bid. Look at basket like itb etf. Would be way to go. The a lot of time it is not Company Specific but geographical specific with regard to the housing market. Liz okay. Ashley what do you think is the biggest headwind facing the market short term . We have the budget battle looming. You have german elections if you want to push it out to september 22nd. We have the fed taper. What worries you the most . Confluence whether or not the actual realization of a fed tapering does anything more significant than the rise in the 10year rate north of 2. 75. Once you break through the 2. 75 you have market structural issues. You have a whole series of relative value issues that come into play. Investors should remember this stock market is not particularly cheap. Even while sectors of the market have sole off whether it would be the last couple of days in the retail space or in the Home Building sectors, places that were very hot, one should be careful or cautious again, moving back to the retail sales numbers, looking at, whether or not the u. S. Consumer continues to have the health to propel a kind of market multiple that weve seen grow through the first half of this year. Liz well, ill tell you, if viewers and investors dont learn from the fact that youre supposed to buy low, okay. So buy unloved areas. And i look at this and i say, you know, particularly, david, the miners look really weak until today. So did they miss their opportunitys . Is there still a chance . Well, im going to tell you, liz, theres been a tremendous amount of focus on gold finally starting to break out of its sixmonth downtrend over the last couple sessions and were looking at miners specifically, particularly junior miners. The index comprised the junior miners out there, gdxj. Liz define the junior miners. These are not rio tintos of world . These are the littler guys. A lot of times they will underperform the bigger guys in times of posttraumatic stress disorder because there could be credit risk in the factor. They might not necessarily have the Balance Sheet to withstand any significant selloff in gold. So they have gotten a hit a lot worse than senior miners like rio tinto. Liz david will kill you for using the word little letter. Im hearing my mother. Ashley she is on the phone for you right now, liz. Lincoln, you mentioned valuations. Do you feel were at the top end now . Are there still deals to be had out there and good value, just have to dig a bit . Well i think you have to be careful what sectors youre putting money to work. Actually interesting enough were a big fans of gdx, the top half of that Mining Sector the one because we think you will begin to see ccnsolidation there. And you can see that across the market in various sectors. We like utilities on a global basis. At this stage of the game, until we get more clarity both in terms of europe, whether it is bouncing along the bottom or actually beginning to hit that u part of the ushaped recovery we hope to expect in the second half of fourth four, or some more life out of the emerging economies we would be cautious. We had good gains here in the United States this year. Better to be, not so greedy. Liz always. Ashley david, thank you so much for joining us. Lincoln ellis. Well be checking back with you in a few minutes to see how the s p futures are doing. Thanks for having me, folks. Liz the fed, the next move for them and worries about the markets getting toppy, is it time to get proactive about your portfolio . That means dumping names that could be hit by tighter Monetary Policy up next well do the homework for you. Were breaking down four dividendpaying stocks that could be at risk right now in a high Interest Rate environment. Ashley plus we could see a new iphone as early as september 10. Could the launch be the magic bullet apple needs to win back market share and investors as well. We want to hear from you. What the new iphone have to offer for you to actually go out and buy one . Log on to facebook. Com afterthebell. Well read out some of your answers later this hour. [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. Alonhinkorswim from td amerrade. From td amerrade. We replaced people with a machine. R, what . Customers didnt like it. Why do banks do it . Hello . Hello . if your bank doesnt let you talk to a real person 24 7, you need an ally hello . Ally bank. Your money needs an ally. Liz if tensions were simmering before they have now reached a boiling point between activist investor bill ackman and the board of jcpenney. The question now is whether the board will take action against one of their own and thats bill ackman. We head to adam shapiro on the floor of the new york stock exchange. Its a great question because ackman is one who leaked letter that got this whole controversy going. Lets show you numbers first. Numbers dont lie. This is what investors said about jcpenney today. They like what is happening at least for now. The stock went up 2. 3 . A little higher than we were on friday. Heres the problem, you have analysts like gilford securities even though ackman is largest shareholder he need to go. He put out a note, destructive force, propagate tore of unsound ideas and shouldnt be involved. What we see in the store, corrective actions are improving. Customers are buying on key stopping dates. Key inventories is improved. Stability is returning. Credit ullman for that. Ullman is the not doing what act man wants. It might be better that way. Howard schultz, friend of ullman he sides over the weekend, if i was sitting on that board, jcpenney i would ask for bill ackmans removal val. Cue homer simpson. Doh. Liz ashley was in a jcpenney in connecticut. That is impressive. Ashley it was playing 70s muse sack. Testimony everything felt steal and stuffy. Go to macys much brighter. Better layout. It was huge contrast between the two. Liz havent gotten at least music right. Heres the deal. Everyone has a jcpenney store, right . Liz right. What they were doing before tried to recreate themselves with ron johnson. They tried discounts. My first suit was jcpenney suit. I paid 90 bucks before the price of oil drove up polyester prices. That was years ago. What will jcpenney sell that you cant get at macys and walmart . People like ackman think the company can be turn around. Liz joe fresh . Adam, thank you very much. Ashley s p futures are closing. Lets head back to Lincoln Ellis in the pits of the cme to find out what theyre telling us. Lincoln. This is not a joe fresh suit here but i will tell that you things have been meandering around the even line all day both in stocks and in bonds. That is really, liz, we talked about this last week. meandering around the 1700 level, plus or minus 15 handles on s p. Really should be the theme for the month of august. Tomorrow we get a key piece of data on retail sales. Later on in the week for Interest Rate piece of the puzzle we get cpi and ppi inflation date. They didnt have much of a range to trade around. I suppose tomorrow at 7 30, the range will be a bit bigger. Ashley fine looking suit, lincoln. Liz chicago, they know how to dress. As investors embrace for tighter fed Monetary Policy. We need you to be proactive about the portfolio. One thing investors need to watch are dividendpaying stocks. Why is that . Which stocks may be best for you not to buy or drop now if you have been lovers of them . Investor place. Com, jeff reed has a master list. He has four names to dump. We promise all four pay out very nice dividend but l widelyheld name. You may get pushback here around people may throw tomatoes at the tv,. Occupational hazard liz. Liz why do i need to dump my dividendpaying stocks right now. Im not categorically saying you shouldnt not own dividend stocks or bond there is always a mix. That was the place to be when rates were so low and markets had upside to them. We feel the market is at an inflection point. Maybe it starts with a three handle sometime next year, those dividend stocks paying 2 1 2 are not as attractive. These stocks will never go away. You could underperform and your portfolio to take a hit as a result. Liz 10year, 2. 62 . I remember talking about dividend three years ago, 1. 5, 1. 6 for the 10year. You are right. We see yields thinking up on treasurys. Youre saying jettison now . Lets get to your first one. I cant believe it. It has a 3. 1 dividend. Why would i get rid of the Chicken Nugget name . Well, you know mcdonalds is one of these companies everybody thinks will be around forever. Is like a token of national whatever, pride, capitalism. Growing everywhere else in china. Problem with mcdonald last Earnings Report it missed on top and bottom line. Samestore sales were off. Look at details, they had both trouble in north america, europe, australia, japan and china. There wasnt going for the stock. There is lot working against mcdonalds. The stock will not go away. The dividend is nice. Its a big name. There is strong dollar environment right now which weighs on multinational earnings because of the exchange rate. Face it at home, consumers arent, eager to spend as they have been. Liz right. So fastfood sales are taking a hit. Mcdonalds isnt healthy evident option. There are bigger risks at play. Mcdonalds like to blame the weather for its sales but think there is little more. Liz you say mcdonalds. We blew your next big, we showed lower third in advance of you saying it. Walmart youre saying at least get rid of them for now. Last quarter samestoresales declined first time in two years. Really rough time for investors in walmart stock. You think it is biggest retail stock out there. But that is not to say it is stable. It can still drastically underperform market. Same thing, excuses about the weather. People werent buying Seasonal Items or income tax didnt come in on time. If walmart misses again this week reports on earnings and samestore sales declines investors will be upset and i dont think the stock will have much upside for the rest of the year. Liz your next pick is widelyheld during everybodys portfolio sometime during their lifeline, cocacolaca. Warren buffett owns lots of coke. That isnt to say coke is going away. When you look at cocacola, its a company seen massive buildout. It is a global brand. Coke numbers they continue see this headwinds against it. Not just because of smaller stuff like currency because its a multinational and the dollar is strong, First North American volume decline in sales in 13 years. Why do you think that is . Obesity and diabetes are big problem in america. The only country fatter than us is mexico also in north america. There is makes sense there is soda sales decline. This stock doesnt have growth behind it because of cola product is in demand as a health food. People need to be really careful when they look at coke and see it entrenched brand. It is stable. Doesnt mean you cannot underperform. Liz we said four, last one is caterpillar with 2. 9 dividend. Jeff, thank you for your picks. Well put them up on facebook dotcom after the bell. Just to be clear he saying get them out of the portfolio before yields start to jump. Thanks, jeff. Thanks for having me. Liz jeff reed, investor place. Com. Ashley big names. Millionaire elon musk is minutes away from announcing a futuristic Transportation System after his previous successes with tesla and space ex well go live to a tech cop that could benefit from the potential space revolution. Liz you do not want to miss that. Could detroit rise like a phoenix from the ashes bankruptcy . You remember we said buy low . Ceo of a company of a highend watchmaker who is betting the motor city can pull off a remarkable recovery. She knows you like no one else. And you woult have it any other way. But your erectile dysfunction you know, that could be a question of blood flow. Alis tadalafil for daily use helps you be Ready Anytime the moments right. You can be more confident in your abily to be ready. And the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. 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