Dom, thank you very much for that good morning, its 8 00 a. M. At disney headquarters in burbank, california, 11 00 a. M. On wall street, and squawk alley is live good tuesday morning, welcome to squawk alley. Im Carl Quintanilla with sara eisen and john fortt on the new york stock exchange. Scott galloway, of course, from Nyu Stern School of business is at post 9. Good morning, guys you can guess what were going to talk about at the top that is acquisition talks sending shock waves through the media world. Disney reportedly held discussions to buy most of 21st century fox, increased competition from rivals like netflix and control of hulu both considered part of the motivation for that deal professor, you first on this, and we talked about how it shows flexibility on both fox and disneys side in adapting to a netflix era, right yeah, everyones bulking up, and because when you think about it, amazon and whole foods, facebook and instagram, the greatest acquisition that didnt happen wou
And guys always say where do you think its going, 200 a share and the numbers we got this past quarter were absolutely astounding we saw the Service Numbers as they came across start to look at the miscellaneous being as big as most companies, scott, or bigger than most companies, quite honestly 12. 6 billion that says so much about what apple has been doing andwises wants to call it innovation or not, thats not really the issue. Do they make the best and release what they have got when its actually ready to go, and the answer is yes and yes. Well, lets see, josh, what happensif it can close above this level to really become, as they say official. It did cross 900 billion technically after earnings, but when it opened the following morning it did not reach that level because the share count was different so everything was riding on the day. Can it close above 900 billion and whats the next step can it close today above 900 billion . A regular trading session you need it to close before
Good winks morning, welcome to squawk alley, cart qui ca quintanilla with jon fortt stocks off the lows, down triple digits a few moments ago on the session. Watching to see if this dip gets bought in the middle of the day. For that lets get to bob. Still down, off the lows, s p up 10 points from the open lets look at the sector, still defensive but moving to the upside banks a big down open but you can see they have moved in positive territory, telecom only sector on the upid. Cyclicals on the weak side weve been talking about slowdown in the Global Markets in the last six or seven trading sessions europe on the downside, stock 600, s p of europe nikkei, s p down 1 since november 6th russell 2,000. Weve been talking about high yield always weak point. We asked our friends what happens when high yields declines 4 in a month were not down there that far yet. The high yield index, those etfs declined 4 . Usually follows them about were not there yet. This is a good indication high yield
Today. Its the pull back in small caps that got our attention earlier they, too, now, josh, have moved off of their low so should we be focusing today on this comeback for stocks intraday or the fact that for the fourth day in five both the dow and the s p are negative well, so its a really its a really outlying year just overall. We havent really even challenged the rising 200 day. The entire day in the s p. Not even the 50 day for most of the year so i think if we are to have a 5 or a 10 pullback from the highs, i just dont feel like anyone should think that thats out of ordinary or that it signals some kind of a shift in the broader trend which is higher just to reiterate. Were in a secular bull market that began in the spring of 2013 the move from the lows off of 01 is not relevant to this discussion and the secular bull markets can go on for yeefrms the Biggest Issue have you is the valuation issue, but youve had it now for most of the last three years, and the stocks that are the
Markets setting new highs. It does raise questions about whether many of the biggest names are simply worth your money or not. Doc, youve been talking about the banks being a good place to be. Jpmorgans cfo starting this yesterday whether brian moynihan, Morgan Stanley sounding the same sort of alarms. Why should investors be in these stocks . You should wait for a moment like yesterday in Goldman Sachs and you see a 7 or 8 collapse. That happens. It happens in great stocks, jpmorgan, whether its the whale. Yesterday it was reaction to the venezuelan bonds that Goldman Sachs purchased for 31 cents on the dollar. People werent questioning whether they were going to lose money on the bonds, they were questioning ethical questions about should you be supporting that particular dictator and so forth by virtue of basically backing his bonds. Arent we talking this is a simple story. Trading is down. Yep. Trading is bad. Yields are too low. Banks cant make money. Why buy the stocks, erin. The