He told the panel that the important metric to watch for in Amazon is revenue. He said it has to deliver on the top line and a key test will come on Cyber Monday.
Finerman praised the addition of Ralph Whitworth, founder of Relational Investors to the board of HP (HPQ). She said every shareholder should be happy. Adami said the stock has been on a defined downward trend since March and needs to close above $30 before it can move to the upside.
Lee noted that Salesforce.com (CRM) was down 10.6% after posting a quarterly net loss and rising stock-based compensaton costs. Adami said the stock, which is valued at 71 times forward earnings, needs to "knock the cover off the ball to go higher." Terranova said he would buy the stock if it fell to $110 to $115.
Gap (GPS) was down after reporting a 36% drop in profits in the third quarter. Seymour said that although Gap is doing well internationally, especially in China, he was disappointed by the results. Finerman found it difficult to understand what Gap represented anymore and thought Children's Place (PLCE) was a better bet.Lee brought in Curtis Arledge, CEO of BNY Mellon Investment Management, to comment on the work of the congressional supercommittee to come with a budget-deficit deal. Arledge said the policymakers are playing a game of chicken and the markets are trying to figure out whether they know it. He also said the Democrats and Republicans feel they have until next year's election to come up with something. Arledge said the economy is going to worsen if the supercommittee punts. He said stocks will suffer while Treasury bonds will do fine. He said the situation will be bad for risk assets. Terranova said it may come down to a water-downed solution involving a payroll tax cut and an extension of unemployment benefits. On an optimistic note, Ron Insana said the U.S. is still the "best house in a bad neighborhood for stocks, bonds and any kind of risk asset." Shifting to the fear trade, with the VIX back in mid-30s, options trader Jim Iuorio said the real fear is France, where the 10-year yields have rallied 105 basis points in the past five to six weeks. He said he is long volatility.
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