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tv   Fast Money Halftime Report  CNBC  February 3, 2016 12:00pm-1:01pm EST

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if they're still looking at hardware sales. >> finally let's look at comcast that is seeing some strong this morning. it's our parent company but it's up 4%. company beat on revenue and missed on the bottom line just about a penny but added $10 billion to their buy back. let's send it over to noon, scott and the half. >> let's meet the starting line-up for today. cnbc senior economics reporter steve liesman and the ceo of hightower treasury partners linked among the top ten advisors with $8 billion under management. our game plan today looks like this. call of the day, one analyst says chiptole shares are a buy but does our desk agree? jerry rice is live.
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the nfl great and super bowl star joining us to talk the big game and a lot more. we begin with the markets volatile again today. here's how things look at this hour. the s&p and nasdaq are still investors and clearly remain nervous about the state of the global economy which you can see reflected in treasury yields. the 10 year yield hit a one year low today. it is moving again all over the map for that matter but it is now positive and shooting higher by some 6%. so whether or not stocks are done correcting is anyone's guess of course but at least three of wall street's wisest think equities look pretty good here. here's larry fink, investing legend bill miller and goldman's lloyd blankfine earlier on squawk. >> this is a buying opportunity. >> down as it goes down. >> i don't know how to pick a bottom and i don't think anyone
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does. but i do believe this represents value today. equity markets are property priced now. >> you can't tell how low the market is going to go. i think it's low enough now. as i said earlier if you got the s&p 500, when it yield mrs. than the 10 year treasury, unless the world is coming apart, that's sort of a no brainer. >> i think we muddle through. i think some of this is an overreaction to the overreaction of assets being so swollen. and now it's kind of a reversion i think the most likely case that is that we kind of muddle through and this adjustment and equity prices make sense to me bond market says i don't know about that. maybe something else is up. do you agree with what toez gentlemen said? >> it's hard to argue with those three gentlemen but we have a
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different view. we think there's four factors agitating the markets now. number one, we have global central banks taking divergent paths. number two, we're looking for price discovery. number three, a large amount of dollar denominated debt in the emerging market space and finally the high yield market is gapping out and prices are dropping and it's causing great stress throughout the investment grade market right now. >> you don't think this is a buying opportunity. >> we're not buying right now. >> pete, are you? are those guys right or wrong? >> they're right but they're right only because of the fact that none of them are physically calling a bottom to this either. they're getting more comfortable and talk about valuations and lloyd himself just talked about redoing and refiguring out the valuation level of where we are right now but until we stop seeing oil go down each and every day and obviously today we're up 6%, we were at 34. under 30. here we are back around 31 but when we stop seeing some of that, that's why every day we're talking about the oil volatility
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index. the volatility index itself. these are very important me tricks because they're giving you a sentiment gauge of what's going on right now out there not just from the three wise men but from what's going on in terms of dollars right now. >> joe puts out a comment a few moments agatha says now there's a 40% chance of recession. some think that stocks are a value here. others look at the bond mark and say the economy is in deep trouble and there's no way the fed can move. some are saying that yes we can. bill dudly today says pretty dovish comments. what gives. >> we began with hope and data this week was going to lean against the pessimism in the market. >> i heard you literally walk down the stairs today as the ism services number hit. i saw you look up at the big screen we have in the newsroom and say that's not good. >> this is not good was my exact words. that's right. the service sector was the last
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bull work and you can say that's a pun against the bearish tie that was out there. the idea that the service sector would hold up against manufacturing weakness and overseas growth and the other problems in the economy. it weakened for the third straight month. you could see the reaction. you had to see what happened. the dollar got crushed against the euro. very hard to find, i guess you call it a el capitan chart. if you think about a extreme cliff. >> it's the worst day for the dollar index in three months. >> there it is right there. you don't want to be scaling that -- unless of course you are long the euro in this regard or if you look at the ten year it did balance off the low yields we had scott but these are ones that speak of weakness. you guys in the back are terrific in the economy. >> 185 in the 10 year. what are investors supposed to do with this? you have three of the perceived brightest minds out there as it pertains to investment, the economy, et cetera, saying think it's a good value here.
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equities look good. i think sentiment is overdoing it to the down side. he points out things about the economy, more cautious, what do you do? >> i'm bullish here and i think the three wise men are right. the only thing that we have to fear here is fear itself and i don't mean to be trite in saying that. there's a psychological effect here that as the markets go down investors get nervous and sell more and that piles on. it also has an effect and this may be where the nonmanufacturing index is showing up in corporate ceo suites and boards of directors that people look at these declining stock prices and they say maybe this isn't a great time to invest in a new factory or hire new people. that's what you're seeing here. hopefully that can come to an end. if you look at oil and the stock market it's been bouncing around around a stable low level here. it hasn't been setting new lows and if we can hang on to that level maybe that fear subsides in the markets and corporate america and we start to see bullish intentions come back. >> so you have your lowest ever
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exposure to europe right now at 5% of your assets. are you concerns about the banks? are there more people raising the issues about european banks? should we be more concerned than we currently are? >> no, we're not concerned about the banks but about having to be right twice on currency and on the fundamental investments. our exposure is the lowest it's been in 20 years for us. >> the fed is not going anywhere in march are they? >> no, they're not. but what is interesting to me. >> why did he come out yesterday and says we could still. >> esther george is a known hawk. i believe she ranked second on our hawk list. >> voting member. >> she is the hawkiest on the year. not the most hawkish on the fed but what i found today and what i found earlier this week is that you can decide what you think the fed is going to do and i don't think it's hard to think that the fed is not going to do very much. the market wants to hear it. you saw a rally in the futures
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this morning when dudly came out and said look financial conditions are tighter. but here's what i'm noticing and here's what makes me worry. we have a report this morning and dovish comments from dudly. that was all overwhelmed by what happened at 10:00 by the ism services. the market is not looking at jobs or listening to dovish comments from the fed. we're going to have to follow that. >> so what is he looking at then? >> well, the massive turn around judge, the risk on trade in. russia. in brazil and in turkey. these are three markets that, you know, if you want volatility you got it in spades in those three markets and yet take a look at them now. many of these were higher already before crude oil turned but as crude oil turned, you got russia up 4%. brazil up 4% and turkey up 4%. so those are huge moves even
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though these aren't the same robust markets this is a sign that people are looking for a place to go with risk capital and they went into the three risky markets and they were awarded almost immediately. >> what is a make of what we're watching in crude oil which is literally on the screen now. what was a near 7% move to the upside? what do you do with that? >> i think you do a little bit of what joe has done in this halftime portfolio challenge. that is on significant dips like this morning you buy some of those stocks. i miss doing that today. wish i did because these turns were pretty dramatic. so if it's not just those efts that i spoke of. if you bought some of those on that dip that's risk on steroids right there but you can make a very nice return. >> is anybody buying stocks today or no? >> i came out with a solid bullish. the only reason i'm not buying
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is because i'm fully invested. you to look at this morning's action and wonder what was going on. i don't think it's just the ism non-manufacturing survey although that was awful but for the market to swing off that much and now come back it tells me that maybe there's a distressed player out there that got taken out involuntarily. >> you get augmented by the oil report this morning. so you were down and then went another leg down on that but all the action in the ten year and the action in the dollar were all linked to the services sector. >> you growing more concerned yourself about where we're going? >> i am. i just follow the data here. guys that followed stocks got bearish earlier here and the economic data was holding up and so i'm a little late to the wake i guess is the best way to put it. i was going to say late to the party but the services sector was something -- it's still growing. it's not down below. >> 53.5. >> but what you need is strength and we had our rapid update today scott which is the tracking for the first quarter and the first numbers we got and it was based on reasonably
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strong auto sales numbers yesterday but look at the number. i was looking for a 2 plus handle on that q-1 tracking. now our estimate is just 1.7 and morgan stanley was right to be bearish in the fourth quarter. it's just at 0.8%. >> steve, i appreciate you joining us. thanks. coming up it's the trade that just won't cooperate. >> i think these financials are too cheap. i think they go higher. >> well, the banks are dropping again today. find out if our experts are are sticking with them now. plus energy is under pressure. s&p slashes debt ratings on ten big oil companies. the analyst that made those cuts joins us next. and our guest host, rich saperstein brought along his top value pick. stick around for the stocks and the reason why he says it is a buy today. you're watching cnbc first in business worldwide. i've been called a control freak... i like to think of myself as more of a control... enthusiast. mmm, a perfect 177-degrees.
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>> s&p cutting the credit ratings of ten big oil company with ten names downgraded to junk. the man that made the call is oil and gas team director at s&p and joins us now from new york. ben, welcome to the program. nice to talk to you today. >> thanks. >> is this just the first step of what could be further downgrades? >> well, certainly this is the investment grade piece of it. we lowered our price stack in mid january. we said we would be looking at all the oil and gas companies
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that we cover. so these are the oil and gas, the investment grade oil and gas rating action. >> you have said in your note that the action that the company versus taken thus far whether it's cutting cap ex and focussing on efficiencies in your word for the most part are insufficient to stem the meaningful deterioration expected in credit measures over the next few years. what else then can these companies do? >> companies do have a couple of other options. they could be selling assets and using proceeds to either fund spending or reduce debt. certainly they could seek out other sources of capital. but it is very difficult for most companies to make money at $40 oil. so you know, i think it is a tough situation. >> oil has been coming down for sometime. why was the time right now to lower the ratings and not
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earlier? >> well, we certainly didn't want to jump the gun. in our view it is -- we have some confidence that oil is going to be low for sometime. given that the supply overhang. so this is our second price cut in terms of our price deck in the last six months. so i feel like we have taken a measured approach to it. >> chevron tops your list of downgrades today and certainly there is much talk about the future of dividends whether it's chevron exxon and are they at the risk of chevron specifically and the others? >> they have a sizable dividend and to fund capital spending and a dividend of that size.
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so any company that has substantial reinvestment requirements and also a large dividend, it's difficult to maintain all of that without increasing debt. >> are you suggesting then -- because i'm not sure you're specifically answering my question. do you think that chevron for example and exxon or one of the two or both will cut their dividends? >> i can't speculate. all i would say is that it's difficult to do all the things that both companies would like and need to do without increasing debt. >> how much do you think we would see the level of default in the energy space rise as a result of just the on going situation? >> well, we have already seen a number of defaults at the lower end of the rating scale.
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we have a large number of our ratings, deeply high yield and i do think that's an indication that we're going to see a lot more defaults in the coming months. >> ben i appreciate you coming on today. >> my pleasure. >> thanks. >> ben with s&p. what about not only these rating cuts but the idea that dividends could be cut of some of these companies? >> so, unlike 2008 where the banks are under massive pressure. we see a lot of financial flexibility in the oil sector. and we have to preserve the bond holders. >> the concern is are they going to cut these dividends. because all of them seem to want to defend it so much. >> do you think they are? >> some of them. maybe not exxon or chevron, i look at conoco with negative cash flows though and they're all toidoing the same thing to defend their dividend now. >> they can say whatever they
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want but the market is going to dictate to them what they need to do and in his estimation they can't continue doing what they're doing without cutting the dividend. >> and i would say specifically if this continues, if oil remains down at these levels, the problem scott then becomes we have already cut the capex and we have suspended our repurchase like exxon did yesterday then what? what are the other levers they can pull? sooner or later the dividends would have to be something that would be in jeopardy because if they want to be able to be in a position to make the moves for the companies that scott was trying to pull out of you just now they'll have to find that. >> we are buyers of energy debt.
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all the integrated oils whether it's royal dutch, bp, exxon, chevron, you can two down to tier two, oxy and conoco. >> mostly investment grade. you're not talking about high yield junk are you? >> wouldn't go down to tier 3. wouldn't go down there now but i would stick with the tier one and tier twos. push comes to shove they're going to cut dividends fund major project spending and dividends next year. and most of us think it will. and one of those two is going to have to give. >> i was going to say that. he's answering the question. he doesn't want to say it on
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television but the words are pretty clear though. so can you buy exxon or chevron today doc knowing that the dividends are at risk? what else do you get out of the bargain? >> a agree with pete that those are two that i would be comfortable buying. >> you would? >> yes. >> now conoco different story. a number of them different story. but also to what rick said about that moment, you take a look at exactly that kinder morgan moment when kmi did say okay no mass. we understand. we have got to cut this and they did and where did the stock go? straight up. i mean not straight up like 50% higher. but instead of being flushed it went up and when you see that kind of action that tells you all you need to know. >> coming up, the financials can't catch a break dropping again today along with interest rates. are our experts holding out hope for a rebound any time soon or are they throwing in the towel yet? we'll get an update next. the greatest of all time, nfl hall of famer jerry rice joins
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i run on quickbooks. that's how i own it. >> it's time now for a trade
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update. our desk has been bullish on the banks for quite sometime. >> i think if you had to pick one area right now i'd go to the financials. >> probably has the most potential upside as the economy gets better. >> in the long run, the banks are great investment right now. >> to me financials would be one of the first places i would put my money. >> i think that the two cheapest airs are financials and energy. >> my question pete is let's talk time horizons here. three years out. respectable time horizon. do you buy the banks? >> yes. that where you will get the most bang for the buck. >> one year out. >> first of all this european
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bank contagion is something that's very serious. that's what is dragging us down. last january we had a difficult january in the financials and then the run up through june. i was seeing something like that this year just based upon where they are and how they're able to navigate through this whole thing but to your point right now this negative interest rate environment that we're finding ourselves into or no interest rate environment is making it very very difficult for these guys but you look at the quarter from wells fargo and u.s. bank and you go down the line they weren't so bad. as a matter of fact, before we started seeing this huge sell offened off and some of that correlated with the banks falling to 52 week lows every day. that's something you have to keep an eye on as well. >> i think this most recent leg down is not so much about the interest rate picture as about deep concerns about whether there are enough reserves for loan losses.
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we know there's a lot of hedge funds. and bad returns recently. that's much to do about nothing though and for the banks to regain what they lost this year wouldn't have to come on a change in the interest rate picture which most people now are not expecting any interest rate. >> i hear much more conversation these days about the european banks. >> you look at the trading activity. ubs's earnings were ugly and deutsche bank is getting crushed for weeks now. what's the story with the financials. as i said to pete, do you buy the stock? do you buy the bank stocks right now if your time horizon on when you think they're going to be better is one or three years? when you're looking at that one it's a stock that in may of 2007 is $159 a share.
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right now you can buy it at $16. when you're looking at a 1 for 10 and there weren't any splits in there. this is blood letting in that stock. the volatility is up but nowhere near the contagion levels that we saw when lehman. >> deutsche bank is a buy here. >> it's very close. >> close? it's down 35% year to date. that's not close snuff? >> somebody came in and put a whole bunch of puts out in april. i think they're just trying to set a floor there judge. what you'll start to see is of course a lot of the folks coming in and trying to protect the debt by buying out of the money puts. that's what they did in the other stocks including general motors in 2008. the reason they were doing that is the cds were blowing up so much they didn't want to waste their money. it's like setting your money on fire when it's up that fast.
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so instead, they buy -- they set a floor by buying it out of the money put. i think that's what they were doing today. the next few days next week or two we'll tell again but again that volatility is about 42% for deutsche bank. citi's is higher than that. >> we look at 23% of the world's gdp is covered by a zero interest rate policy and negative interest rate policy. that encompasses the european banks. we buy the u.s. banks. jp morgan, bank america and wells fargo has $750 billion on deposit at the fed. when and if the fed tightens it's an immediate bump in their interest income so we like the u.s. banks. 3% dividend. selling at or below book value. got to own the u.s. bank. >> so he calls you up and says look rich i've seen what deutsche bank is doing getting hammered maybe we should start taking a look. you say. >> stay away from europe.
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>> i'm going to take the other side of it to. >> i'm not saying jump in today. >> we did see that happen on the time frame. even morgan stanley we were watching and goldman sachs when the stock was still trading at 80 something dollars a share. they're buying the 10 strike puts. that was disaster protection. they're buying the 11 strike puts right now in deutsche bank and $159 stock now trading 1650. that has to be concerning and there's still something to the down side there and i know that john is not calling the bottom but that's why you'd still stay away. hands off on this one. >> you can buy citigroup at 0% of tangible book value. so why take the risk of things that you don't know are on
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deutsche banks balance sheet. >> you didn't say buy. >> mario draghi with that bazooka because he's spending that money and pushing interest rates lower and lower, as soon as pressure is off that's when you buy. >> coming up, chipotle is the subject of a growing criminal investigation into it's food safety. the company got an upgrade today to buy and we're going to debate it because it's the call of the day. plus tesla stocks hitting the breaks. a 2 year low so where are investors fleeing now? we go behind the wheel with phil lebeau. we'll stop by for that trade as well.
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>> hello everybody. here is your cnbc news update this hour. president obama paying his first visit to u.s. mosque this morning working to confront bias increasing at an alarming rate. he's meeting with muslim american leaders from around the country. republican presidential candidate donald trump accusing ted cruz of stealing a victory in the iowa caucuses. cruz didn't win iowa. he stole it. that's why he got far more votes
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than anticipated and in another tweet trump wrote based on the fraud committed by cruz during the iowa caucus either a new election should take place or cruz results nullified. >> michigan stop environmental regulator saying his state should have required flint to treat it's water for corrosion causing elements after elevated lead levels were discovered a year ago. it was the first since they made news. >> and pope francis greeting member of the american circus which performed during his weekly general audience. it was the second performance by a circus troop two weeks at the vatican. there you go. that's the cnbc news update at this hour. the pope like circuses. back to you. >> take a look at what's happening on the far right hand side of the screen. that's the dollar index which is having it's worst day in three months. oil is a big story in it and it always is and rates are a big story and they always are but
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the dollar shooting lower today as a result of that weaker economic data is being closely watched by many folks. the stock market is down all the way and the dow down 50 points. i mentioned oil spiking today late morning despite the bigger than expected inventory build and jackie has the futures now. what's up with that. >> good afternoon to you, scott. well, the dollar as you mentioned certainly part of this story and why we saw crude oil prices spike about 6% so far on this session. let me just get to anthony because we talk about the inventory numbers all the time. you and i both thought this was a very bearish report yet there's enough out there now to turn this trade around. >> it certainly was a bearish report. when you look deeply into the numbers you see that production did drop. it was small but the second week in a row it did drop. the other thing you mentioned was the dollar. refinery runs were down which means that crude oil wasn't made in the product is tho was a big
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thing but the ciggest factor out there is continuous chatter about an opec meeting. an emergency opec meeting. so far nothing confirmed but enough to lift the market. is this a relief rally. typical in the reaction we have been seeing in crude as of late or is this the start of something more? >> no, it would be nice if it were the start of something more but all it says is what scott referenced earlier and that's the dollar is getting crushed now so we see crude oil up $1.50. but the way that you know this is not important is that crude oil is still a dollar and a half below it's low on monday and that level is where i would start getting interested. >> okay. gentlemen thanks. of course scott we'll be back with a live show tomorrow at 1:00 p.m.. futures now.cnbc.com. >> we will. tesla shares hitting a two year
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low today. down 8% this week alone. so why are investors leaving the stock? let's bring in phil live from chicago. phil, good to talk to you. we were talking about this yesterday off line. there's been some negative analyst notes. some very well-known analysts that have been on the stock and are pulling back and then there's some sales figures throating around that may have some people nervous as well. what's going on. >> those sales figures that you're talking about puts out a monthly tabulation if you will of electric vehicle sales in the united states. well, we all know that ses la doesn't report monthly sales so they do an estimate based on a number of different factors that they take into consideration. their estimate was more much lower deliveries of the model x and then when you combine the model x you put those together, that is why some people looked at it and said boy that's really low but keep in mind that's an estimate for u.s. deliveries only and as we talked about before scott that plant in
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freemont is supplying vehicles around the world and they shift how many they shift to china or europe or canada based on a number of factors. i don't have to take those estimates with a grain of salt. having said that, if you're looking at the pacific crest note this came out late yesterday and they found the alarm stating does tesla have a demand model. they believe the model s demand is nearing it's ceiling and if you buy into that theory or that argument they deliver basically 50,000 last year let's say they can grow that by another 10 or 20%. then your believing that demand for the model s were going to be
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65,000 vehicles. >> this inside ev deal that we're referencing, it's inside electronic -- electric vehicle publication if you will. i don't know if it's online or elsewhere as well. their number i think what was some what alarming to folks was their number, their monthly sales number was less than half of what the u.s. run rate has been for the model s specifically and that added to the concern about whether sales are topping out or certainly whether the growth rate is declining some what dramatically. >> right. but keep in mind scott, there have been times in the past when tesla is very hesitant. i don't know if they have ever broken out monthly sales by a specific country but on conference calls elon musk said there's some months we're shipping far fewer vehicles in the united states than we're shipping to europe or in the future will be shipped to china. that's the way it's going to have to work when you have just one plant. most auto makers, they're
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supplying the market. they're building in that market. so you can pretty much sense what's going on in the north american market for general motors by looking at what's happening with their plants. that's not the case with tesla. tesla has one plant supplying the world. as sales grow in china you'll see more shipments there. if they grow in europe or slow down in europe you'll see more or fewer shipments and it varies month by month. you to be careful at taking a look at the estimates. >> sure and high growth stocks have been scrutinized in ways they haven't been over the last year or two. thank you for coming on. you have been cutting through the noise here. tesla shares by the way a two year low. coming up one analyst says it's time to bite into chipotle. does our guest agree? the call of the day coming up. plus saperstein's top stock picks. you're watching cnbc. first in business worldwide. >> the halftime report is the place for market moving interviews.
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coming up on power lunch at the top of the hour, you think the u.s. banks have been battered? check out the rivals down more sharply in the last month. we'll talk about the big problems they're facing. and about 100 to 10, go pro nose diving. earnings after the bell. should you be buying the stock ahead of the numbers? facebook, amazon, netflix and the company formerly known as google. can they repeat their 2015 off the chart performance? the bull and bear case for each stock. scott back to you. >> see you soon. chipotle under pressure after reports of a new criminal probe into the recent food safety scandal. however wells fargo sees a buying up and upgraded the stock to out perform. it is our call of the day. do you agree with it or not? >> wells fargo certainly brave to be stepping into this one scott and the stock did bounce about 17 or $20 off the lows.
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in the first 11 minutes of trading today there was a feeding frenzy for the puts. just two days ago we thought it was over. now we're back in and we're looking at this again to find out who did what when. that's the worry. the positive is that it did bounce very strongly around that 440 level back up to 457. >> so wells is looking out and they say the majority of restaurant concepts that have had any kind of food safety issue return to sustained same store sales growth within 12 to 15 months of the incident. they're looking out. you're a value guy. stocks down 36% in a year. >> the problem is this is not the average food scare. this has been going on for quite sometime. as john just pointed out it's not done yet and they haven't fingerprinted what the cause of the issues are. this is not the average food scare. let me point something out. the stock trades at 30 times
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next years earnings and 14 times right now and if you're going to bring me a stock with those multiples it better be a polished diamond. not a diamond in a rough that might look good. it has to look like nike today and chipotle does not. >> sticking with beaten up stocks, you have a name that's been approaching bear market territory that you like. >> absolutely. so cvs is a name that we're adding right now. it's 150 billion dollar market cap company and fits into two themes of ours. one is the aging of the population and the other is the consumer thaes employed more and has more discretionary income. cvs is big in generics. they are specialty pharmacy benefits management. going to be growing about 14% a year and we're looking to buy back around $4 billion worth of stock this year. so they're shrinking the float.
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less than 2% dividend and we like the name. >> four days to super bowl 50. the nfl's all time leading receiver and three time super bowl champ jerry rice joins us next. we'll talk the state of football plus his pick for the big game. ♪
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just a few days left now until the super bowl between the denver broncos, carolina panthers. our next guest knows a few things about super bowls. and winning them. jerry rice is a three-time super bowl champion, nfl hall of fame
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wide receiver, some say the greatest of all time, joins us on the phone. welcome back. it has been a while. good to talk to you. >> how are you doing? >> good, thanks. we're getting ready and excited for super bowl 50. you are there for a football capacity obviously, but also as the brand ambassador for kay jewelers which makes the pro bowl ring, i understand. tell us about this partnership you have with that company. >> yeah, i'm honored to be with kay jewelers. it is the number one jewelry store in america and it is the official jewelry store for the pro football hall of fame. and i think a lot of people don't realize that they custom design their jewelry. and i'm wearing the ring of excellence. and you got valentine's day coming up. you can get something custom designed. you can go over to kay jewelers or go to kay.com and pick something up that is really unique for that significant
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other that might be in your life. >> i misspoke. i said the ring of the pro bowl, of course it is the pro football hall of fame. let's do some rapid fire q&a. one word answers. and then we'll talk some super bowl. apple iphone or samsung galaxy? >> samsung. >> facebook or twitter? >> twitter. >> amazon or the shopping mall? >> shopping mall. >> really? montana or young. now they get tougher. >> both. >> great answer. >> don't try to trick me into that one, okay. >> something told me you were going to say that. broncos or panthers and why? >> i'm just hoping for a good football game. and, okay, if this scenario plays out, if peyton manning can prove that he can throw the ball deep, you know, that puts a little bit of a threat to the
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panthers defense. but if he can't do that, then they're going to pretty much squeeze everything down. cam newton on the other hand, he's a dual threat, can run the football, a strong arm, and they also have a good defense. i'm staying neutral right now because i just feel like everything, you know, it is like no matter what you did during the regular season, during the playoffs, it comes down to this one game. and anything can happen in this one game, it would be nice to see peyton manning get his second super bowl. it would be nice to see cam newton get his first super bowl. and, you know, after winning the heisman and the national title game, i'm sure he really would want to, you know, win this football game. but i think everybody is leaning towards carolina, but i just feel anything can happen. >> well, that's where the money seems to be going. jerry, thank you for taking the time, calling in. we appreciate it. see you soon. >> thank you for having me guys. >> jerry rice.
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pete, your pick. >> carolina. all the way. their defense is just too good. if i'm ron rivera, we know him pretty well, known him since he was a 17-year-old kid like we were, unbelievable defensive coordinator, he knows what peyton manning is, a statue back there and he'll bring the heat on him. i think he'll pressure peyton, that will be almost something that i don't think denver is prepared to fight that. because of that, cam will be able to run on the opposing team defense very nicely. >> without the deep threat, which i think denver is lacking now, if you don't have that deep threat, they are going to squeeze him. they're going to play man on the outside and they're going to basically funnel everything into the middle. i think that's tough on peyton. >> coming up, looking at the earnings on deck including go pro, dunkin' donuts, a handful of energy stocks. how to play them next. we were born 100 years ago into a new american century. born with a hunger to fly and a passion to build something better.
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more big names set to report earnings tonight and tomorrow, including go pro, young, conoco, royal dutch shell and cigna among others. jimmy what to expect from con o conoco. >> well, look, the same thing as everybody else in the oil patch, not a whole lot. you know, frankly what i'm more curious about is if people are drowning their woes from losing money on oil stocks by buying a lot of dunkin' donuts, that's what we'll be looking for tomorrow. >> i don't know what the yield is, i wonder what they say. >> well, look, they say whatever everybody else says, they're not ready to cut dividends yet, won't hint at it. like everybody else, oil prices stay this low, eventually they're going to have to face up to the -- >> i wonder what would happen if they dropped a bomb. >> the same thing that would happen to every oil company when they drop the bomb. they're going to get hammered and then a buy. >> go pro. oh no lately. >> it has been oh no. the stock has been reflective of what they have done, which is they have not been able to get
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things right. can they prove to the rest of us that they are able to get it right and what is in the pipeline so we can see some growth? that's what everybody is going to be listening for. >> rich, ralph lauren reports later as well. there has been some question about high end retail. would you buy zegs disdiscretio stocks here? >> we wouldn't. >> you've gotten bearish. >> just time to grab some dividend off stocks, staple has been a good performing sector, higher yield there. >> i thought you were going to say grab from onion dip and go to the basement. >> grab some dunkin' donuts with jim. >> you have to fight josh for those. >> i just want to call your attention as well, it has been great having you here again, by the way, look forward to having you back soon. rich saperstein, one of baron's top financial advisers in this country. keep your eye on the dollar
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index for the remainder of the day. it is having its worst day in some three months and the ten-year yield is now at the lowest level in a year. that economic data today was squirrely at best and has a lot of people talking. the stock market moving all around. that does it for us. "power lunch" begins right now. hi, everybody. welcome to "power lunch." along with melissa lee, michelle caruso-cabrera, brian sullivan, i'm tyler mathisen. >> the dow and s&p 500 down less than a percent today, it is the nasdaq feeling the pain. no help from yahoo!. look at the shares hitting new lows in today's session. it is now down by just about 6%. and down 40% over the past one year. the struggling tech company cutting 15% of its workforce and saying it may be up for sale. here is ceo marissa mayer on isis this morning. . >> we feel good about our plan. we're confident in that plan. i think it makes sense for us to have a more

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