WE'LL BRING IT TO YOU LIVE.
ALL THAT AND MORE ON
"MAKING MONEY."
>>> WALL STREET FIRMS RALLIED
AROUND SHARES OF AMAZON THIS
MORNING, VIRTUALLY ALL
REITERATING POSITIVE RATINGS ON
THE STOCK T POPPED HIGHER AFTER
THE START OF TRADING.
THE SHARES BEGAN TO SELL IN
ERNEST.
THE HIGH BETA STOCK SEEN MASSIVE
DOWNSIDE SWOONS, TRIGGERED OFTEN
WITHOUT WARNING BEFORE AND AFTER
THE EARNINGS RELEASE.
THE STOCK TODAY TRADING WITH 115
POINT TRADING TRAINING.
PUTTING PRESSURE ON THEDOWN
AFTER A BOEING PLANE FELL OUT OT
AFTER A BOEING PLANE FELL OUT OO
AFTER A BOEING PLANE FELL OUT OF
THE SKY IN INDONESIA.
181 PASSENGERS, THREE CHILDREN,
SIX CREW, TWO PILOTS.
THERE WERE REPORTS THAT THIS NEW
737 MAXAIR WAS HAVING PROBLEMS
ON THE PREVIOUS FLIGHT.
STRONG CONSUMER SPENDING NUMBERS
HELPING RETAIL NAMES.
A HUGE MOVE AHEAD OF THE HOLIDAY
SHOPPING SEASON.
HERE TO DISCUSS IT ALL, KEVIN
KELLY, SHAH GHAILANI, MONICA
MEHTA.
LET ME START WITH YOU, MONICA.
A LOT OF MOVING PARTS IN THE
MARKET.
INABILITY TO SUSTAIN RALLIES IS
SOMETHING WORRYING INVESTORS.
FOCUSING ON THE NAMES THAT
SEEMED INVINCIBLE.
AMAZON WAS INVINCIBLE.
FACEBOOK WAS INVINCIBLE.
APPLE WAS INVINCIBLE.
WHAT HAPPENED?
>> CHARLES, EVEN SUPERMAN IS NOT
INVINCIBLE.
AT SOME POINT THERE IS A
RECKONING.
WE ARE WAITING AT SOME POINT
WHAT HAPPENS THE EFFECT OF THE
DRAWDOWN OF QE ACTUALLY IMPACTS
THE MARKET.
THAT IS WHAT WE'RE REALLY
FEELING RIGHT NOW.
ALL OF THE LACK OF STABILITY IS
CREATING JITTERS.
WE NEED TO SEE A HANDFUL OF DAYS
WITH STABILITY AND MARKETS
INCHING BACK UP GETTING FURTHER
AWAY FROM THE TECHNICALS TESTING
THE BEAR.
IF WE SEE MORE ACTIVITY WITH
CORPORATE BUYBACKS, THAT IS AN
OPPORTUNITY TO OFFSET THE
NEGATIVE DOWNSIDE OF ALL OF THIS
QE DRAW DOWN.
CONNELL: WITHOUT A DOUBT THERE
ARE SEVERAL THINGS COMING INTO
TODAY, SHAH, LOOKED LIKE MAYBE
COULD HELP STRAIGHTEN THIS
MARKET OUT.
THAT MAJOR ACQUISITION BY IBM,
UNDERSCORING THE FACT THERE IS
VALUE OUT THERE, CORPORATIONS ON
THE PROWL, INDIVIDUAL INVESTORS.
MORE EARNINGS, MAYBE FACEBOOK,
APPLE, MAYBE THEY TURN IT
AROUND.
THE SENSE THAT THE ECONOMY IS
VERY STRONG.
THIS MORNING THE CONSUMER
SPENDING NUMBER, HUGE.
BY THE WAY, PRIOR MONTH REVISED
SIGNIFICANTLY HIGHER.
CHILDREN'S PLACE IS ROCKING.
RALPH LAUREN IS ROCKING.
ROSS STORES, DOLLAR GENERAL,
ALL-TIME HIGH.
THERE ARE POCKETS THAT ARE DOING
WELL.
BUT THE OVERALL MARKET IS STILL
SKIDDISH.
WHAT IS GOING ON?
>> YOU LIVE BY THE SWORD, DIE BY
THE SWORD.
THE SWORD HAS BEEN TECH STOCKS.
WHAT'S HAPPENED WHEN THEY ROLLED
OVER I THINK THE PSYCHOLOGY
CHANGED AND EVERYBODY, NO ONE IS
LOOKING AT RETAIL STORES DOING
WELL.
NO ONE IS THINKING COMING INTO
THE FOURTH QUARTER WHERE SALES
WILL BE TREMENDOUS.
A LOT OF COMPANIES, LOOKING AT
LEADERSHIP STOCKS HAVE ROLLED
OVER.
THE FINANCIALS WERE SUPPOSED TO
COME UP BEHIND AND TAKE THE
LEAD.
THEY HAVE DONE ABSOLUTELY
NOTHING.
EVERYONE WONDERS WHAT WILL LEAD
THIS MARKET WHAT SECTOR WILL
LEAD THIS MARKET?
WE HAVE ALMOST TOO MUCH OF A
CORRELATION IN TERMS OF
COMMODITIES, OIL, EQUITIES, ALL
GOING DOWN.
THAT IS A PROBLEM I THINK FOR
THE GENERAL PSYCHOLOGY OF THE
MARKET.
WE'RE A LITTLE BIT OF A TIGHT
SPOT HERE.
I DON'T THINK COMING INTO THE
MIDTERMS WE'LL GET ANY CLARITY.
CONNELL: KEVIN, YOU AND I TALKED
A LITTLE BEFORE THE SHOW BEGAN,
YOU'RE SEEING REALLY VALUE.
AMAZON SELLOFF YOU THINK MAYBE
IS OVERDONE?
>> I THINK IT IS CERTAINLY
OVERDONE BECAUSE THEY'RE STILL
GROWING AT SUCH A GREAT CLIP
ESPECIALLY ON TOP LINE REVENUES,
RIGHT?
IF YOU THINK THEY'RE GROWING
26%.
BECOMING MORE PROFITABLE.
I THINK PEOPLE ARE
UNDERESTIMATING WHAT THEY CAN DO
ON THE REVENUE SIDE IN REGARDS
TO ADVERTISING.
THAT IS THE NEXT LEG OF GROWTH
FOR THEM.
EVERYONE IS PUTTING ECHO INTO
THEIR HOME.
THEY KNOW YOUR LIKES, YOUR
CLICKS, YOUR HABITS, YOUR
PURCHASES.
YOU WILL START TO SEE
ADVERTISING PICK UP FOR THEM.
CONNELL: HOW DOES AN INVESTOR
BUY?
WHEN A STOCK MOVES 115 POINTS IN
ONE SESSION, WHEN DO YOU BEGIN
TO BUY?
WHEN DOES A VIEWER WHO MAY HAVE
MISSED THE AMAZON MOVE NOW HAVE
A CHANCE TO START BUYING?
YOU SORT OF NIBBLE AND BUILD A
POSITION?
>> YOU DOLLAR-COST-AVERAGE OVER
A WEEK.
YOU UNDERSTAND THIS ISN'T A
QUARTERLY STORY.
THIS ISN'T A SEMIANNUAL STORY.
THIS IS A THREE-TO-FIVE YEAR
STORY THAT WILL TAKE HOLD,
ESPECIALLY BECAUSE YOU'VE SEEN
THAT THEY ACTUALLY BUILT THE
MOBILE REVOLUTION, WHEN YOU
THINK ABOUT APPS, THEY WERE ALL
DEVELOPED ON AMAZON WEB
SERVICES.
WHAT DID AMAZON DO?
THEY UNDERCUT THEIR OWN PRICING
TO CONTINUE TO GAIN MARKET
SHARE.
I THINK THEY'RE REALLY
CONSCIENTIOUS OF THEIR PLACE,
WHETHER ON E-COMMERCE SIDE.
THEY'RE ONLY 5% OF OVERALL
RETAIL SALES, RIGHT?
THEY HAVE A LONG WAY TO GROW AS
WE TALK ABOUT THE HOLIDAY SEASON
PICK UP, WE SHOULD SEE ONLINE
SHOPPING UP 16%.
THEY SHOULD BENEFIT.
BE.
CHARLES: WALMART WITH A GREAT
REPORT.
MAYBE THEY HAVE A REAL THREAT TO
AMAZON?
>> THERE ARE THREATS TO AMAZON.
YOU HAVE TO REACH 90% OF THE
POPULATION IN 24 HOURS OR LESS.
WALMART CAN DO THAT WITH PEOPLE
DRIVING HOME OR AMAZON CAN DO
THAT WITH PEOPLE CLICKING AND
SHIPPING TO THEM.
AMAZON DOES SO WELL WITH THE
DISTRIBUTION CENTERS.
$1300 SALES PRODUCTIVITY PER
SQUARE FEET.
CHARLES: REAL QUICK, MONICA.
YOU MENTIONED THE FED.
I AGREE THEY SET A HARSH TONE
FOR THE MONTH WITH THE COMMENTS
FROM CHAIRMAN POWELL.
PEOPLE ARE SAYING YOU KNOW WHAT?
A QUARTER RATE HIKE, EVERY THREE
MONTHS, EVERY QUARTER IS NOT A
BIG DEAL.
THEY NEED TO BE REMINDED WE
DIDN'T HAVE A RATE HIKE FROM
JUNE 2006 TO DECEMBER OF 2015.
THEY CAN OVERDO IT.
WHAT DO THEY DO TO EXPRESS THEY
WON'T RUIN THIS THING?
>> THEY'RE GETTING A LOT OF
REMINDERS FROM THE PRESIDENT,
FROM THE MARKETS, FROM THE
TRADERS.
SO I THINK THAT MESSAGE IS BEING
SENT AND I THINK THE GREATER
VOLATILITY YOU SEE AND IMPACT TO
CONSUMERS RIGHT NOW, CONSUMERS
FEEL GOOD.
THEY'RE SHOPPING.
WE'RE TALKING ABOUT GREAT RETAIL
NUMBERS BUT THE MINUTE THEY
START TO PULL BACK AND GET
JITTERY, YOU MAY SEE A DIFFERENT
TUNE FROM THE FED.