Live from pier three in san francisco, welcome to the early edition of "bloomberg west," where we cover the global technology and media companies that are reshaping our world.
I am jon erlichman and four emily chang.
Our focus is on innovation, technology, and the future of business.
Let's get straight to the rundown.
Sony's big day.
Gamers get their hands on a new playstation 4. is a good enough to fend off competition from microsoft's new xbox next week?
He has directed "wall street," "jfk." we will have full details from my exclusive interview with oliver stone.
And after twitter's 70% stock pop in its first day of trading, we will get the behind the scenes story on how the ipo can together from a banker who worked on the deal.
First, to the lead.
There have been long lines around the country as gaming fans try to get their hands on sony's new playstation 4. the console, the first major reboot of playstation since 2006 went on sale in north america today with releases coming overseas in the next few weeks.
The new playstation sells for $399, a lower price than the rival xbox one, which comes out next week.
Sony computer ceo jack tretton join us lastly.
$100 cheaper than the other new engine on the market here at 180 games in developing, 23 develop -- available on day one.
$.10 more -- 10 times more powerful than the state-of-the- art playstation 3. especially following the company's surprise last month -- last muttered bloomberg's matt miller is live in new york with more.
What do you think you> let me dispel the myth that this is $100 cheaper than the xbox one because you have to buy the camera if you want to use any of the virtual reality games , which cost another $70. so it will be a little cheaper at $470, but that is only a little bit less than microsoft's xbox one.
You mentioned 2006, the last time we saw a new console.
That was before the ipad was invented.
The iphone was probably just in development at the time.
We were at the end of the biggest housing boom of all time , so it was a very different era, but it has become a massive industry since then.
$93 billion industry according to bloomberg.
I'm sure you notice, jon, one grand up.
05 opened up in september, it is sold $800 million worth of copies in less than 24 hours.
The most amazing thing about that is that is not even playable on the new ps4 or next week's xbox one theater that only works for the old gaming consoles, so it is amazing how much money is at stake in this industry.
I think jack tretton and the guys at microsoft although this.
Now, what you have with both consoles is 500 gigabytes of storage, so massive boost over what you had the last hundred eight gigabytes in ram.
It will be really fast.
The interesting thing is the partnerships are a little bit different.
The playstation 4, you will have an nba and an nhl app.
Xbox will have an nfl app.
So football might go toward xbox, hockey and football might go to -- hockey and basketball my go to sony.
Do you think that will make a difference for how well these consoles sell?
That is really the differentiator.
There will all have their social apps theater they will all allow you to talk to each other.
They are all going to let you watch blu-ray dvds, if anybody still watches dvds at all.
It is the exclusive gaming content.
So for xbox, it is obviously halo that is the most famous, like people will call it a halo box.
For playstation until now it has been grantor is mo -- gran turis mo for the playstation three, but if you bought a bunch of games for the ps3 or the xbox 360, none of those will work on a new terminals, so to the delight of the game makers, everyone will have to buy new games.
I would like to see you testing up those gains in your suit.
That is designation.
I thought about taking off the tiger i felt dirty doing that.
Great insight, matt.
Matt miller joining us for more.
For more, let's bring in mike, he covers gaming and consoles.
He is in los angeles.
Help put this in context for us, mike.
How important is this lunch for sony?
Welcomed the launch is obviously important for sony.
They built this industry around the playstation one, playstation 2. lay station 4. -- playstation 4 will be in high demand.
It is a really important place for sony.
I think you can find a lot of gung ho gamers up really late tonight playing with her new box.
Ultimately, though, for it to be successful, how will that be measured?
Is it the assembly -- invisibly the number of consoles that are sold?
The number of consoles sold will be very important.
I think it will be very hard at the end of this cycle, 5, 6, 7 years of not to have as many of the new, nexgen out as we did in this current nexgen.
Your previous guest was pointing appeared we had the ipod, which was not even in play, the iphone that was not even in play.
But the money tied to this game is what is important.
Selling the games -- and unlike last time, until recently, a lot downloadable content.
So some of these games -- sony nx logs can knock some of these games out of the park, they are going to sell a ton of additional content.
So $60 plus another $50 less another $100 and we see gamers spending $300, $400 on a game in one year.
These guys can add that extra digital revenue, and every indication is they are doing or do well, then these can be pretty big platforms for them in terms of making more money than just selling the desk -- discs.
You mention a five-year cycle at a time when people are buying tablets and smartphones at a much quicker rate.
Within 12 months.
Within two years, certainly.
How can sony know what the demand is going to be like for products five or six years now, especially with all the change that has been taken place in the world of gaming?
They really cannot.
They do estimates based on price cost.
They know the components will be cheaper.
But they do not know where they are going to be in five years.
Nobody knows -- look, we had the same box out from steam, we have the ouia, google is talking about having a console, amazon is rumored to have a console -- i should say google is rumored, not that they've spoken about appeared there will be a lot of competition.
A question about the timing of this release, roughly a week ahead of microsoft's xbox one, does that really provide a much of an advantage?
You know, a month is better than a week and two months is better than a week, but you know, last time they were quite a few months later.
Quite a few months.
Look, i think playstation has played this perfectly.
They came out with the right price, they're coming out a little bit ahead of the competition.
A couple of years ago, this was looking like an xbox world.
Now it is a real fight against her absolutely, and i will be watching it -- a real fight again.
Absolutely, and we will be watching appeared when we come back, president obama, martin luther king, edward snowden -- which one of these individuals could be the next focus of an oliver stone film you will find out next in our exclusive interview.
A reminder --you can also watch us streaming on your phone, tablet, and at bloomberg.com.
What about appeared we have breaking news on microsoft.
Bloomberg news has learned that the board of microsoft is planning to meet on monday november 18. this is part of the decision on who will be the next ceo of microsoft or guido steve balmer is in the process of stepping down.
The goal of the board has is to bring down the list of potential successors to three to five people.
We know they will start the interview process is with the various candidates.
Well, academy award-winning director oliver stone is thinking about his next big project.
In nx lows of interview, stone told me he is hard at work about a script on mars is working, and edward snowden would make a great movie subject.
I slowed to him at the conviction of the commercial finance association.
Obviously when a stone speaks to bankers, the subject of "wall street" comes up, and one of the first questions i asked was about martin scorsese's new film "the willful wall street . -- the wolf of wall street.
It is different from ours.
I read the script.
It is about a solo flyer.
It is not really about the street that i knew.
But are you curious to see if?
Yeah, anything with leo and marty is always a good film.
I would love to see what they do.
What i saw in 2010 was really -- it was kind of the end of wall street as i knew it.
There is nothing there.
That really fascinates me.
It is so difficult an environment to work in.
I have to say the people are really smart.
That is for sure.
I do not know that the college graduates are all going up to make money like they were in the 1980's, but i won't be around to see the method they make.
If they don't get out of this leveraging business, and derivatives, it is not going to work.
What about silicon valley, where there is enormous power and influence?
Is that a game you would be interested in exploring a future film?
I think "social network" got a taste of it.
I think we imitate something that is successful.
Sometimes you have to be very careful.
I would like to be the first one there.
But don't go where all the heat is.
If you invest your capital, find a new area -- find a new subject.
Of this month marks the 50th anniversary of jfk's assassination.
Your film "jfk" is back in select theaters.
One of the performance the mike?
The film holds up.
It really is stronger at it is based on a lot of research -- i watch with an audience, it really is strong.
It is based on a lot of research, we footnoted everything we did.
There was such outrage about it.
The jfk act actually left to the review board, getting about 6 million documents.
So their findings, which were released in many volumes and are hard to absorb the whole thing, but their findings were very important because they open up the case and give us more like into these dark areas.
The national geographic channel aired killing kennedy based on bill o'reilly's book.
That is exactly the kind of movie i was going against when i made "jfk," because either they simply click -- because that is a simplistic velodrome a coma good guy, bad guy, the lone sniper coming after the handsome resident.
It is a nice little fairy tale, but it is simplistic.
The evidence any case, you have to look at the evidence with your own eyes and your own common sense.
In my mind, the nub of the film is that kennedy was shot from two sites.
He was shot in the back and he was shot from the front.
No matter how you fancy up the evidence and you talk about all these gravitational physics and fx and -- and effects, it is all blah, blah, blah.
The autopsy report and the people who saw him after he died always talk about the big shot, the kill shot was from the front to the front of his head, and they blew out the back of his head.
That is what people cap seeing, and they keep seeing it still to this figure ibo who were at the autopsy revealed to the assassination record review board that the autopsy photos that are now in the national archives have no resembles to the head and the body that they saw in bethesda.
So you tell me.
It figures there was a major medical flaw there on that autopsy.
That is what the assassination review board revealed in more detail.
The original photographer, john stringer, was there too and he saw these photos and said he does not recognize them.
You were asked on twitter whether you might consider doing a film about the president obama, and your response was -- i do not think so.
He has not lead on anything except manage the empire better than bush.
There is never the possibility that we will see an oliver stone film about president obama?
I am getting younger.
obama doesn't -- you know, i liked him for a, i voted for him and 2008. the change we could believe it was his slogan, any change is not there.
The methods, the practice of the war on terror, i thought he was mature enough to really maybe pull us back from the war on terror because that was an over exaggeration to begin with.
What should declare war on the whole world.
You're either with us or against us when in fact we were fighting 2000 terrorists -- we could have curbed it with the limited use of force and intelligence.
Be that as it may, we are in this whole now, we have not pulled back from that.
That state of siege, united states is endangered by all the people in the world, we are surrounded by threatening countries, etc.
That is a mindset that will not succeed in life here and we need to join the world commit -- world community.
Listen, obama does not seem to have as much as i respect his intelligence, he does not seem to have a fight, a backbone that kennedy had, portable, and roosevelt, because he had a swimming mandate, and he did not take it.
You are working on a script about him ok, the possibility of jamie foxx starring in that, what is the financing process, what are you thinking about in terms of how you might get that stalemate, produced?
That is been any worse off and on for 20 years.
I started the process in 1995, but nixon had not done as well as i hoped, so we decided not to make a biopic.
There were many scripts written in the interim, and i was called back recently to take another look into the process.
I liked the story very much.
It's a great story to tell.
But i am wrestling with the script right now.
I am already rewriting the script.
So that is my process.
I have to get a script.
I think we are there, almost.
I think jamie wants to do it, but until we get to the goal flag or whatever you say, we are not really in the race.
But it might happen.
It might happen.
You have been asked a lot of questions about nsa surveillance.
Would you be interested in doing a film about edward snowden?
I think snowden would make a great subject, yeah.
He is a very -- i think he is a young man of conscience.
And a stone is hungry to get back into feature films in part because of being more focused recently on television, with showtimes "untold history of the united states." what was it like working on one of the most anticipated tech ipo's ever?
We will hear from one of the bankers who else twitter go public next on "bloomberg west," and a reminder --you can also watch us streaming on your phone, tablet, and at bloomberg.com.
? this is the early edition of "bloomberg west." i am jon erlichman.
Flash cell website zula lee is the latest internet site to go public, and shares are red-hot.
They rose as much as 76% after pricing at $22 a share.
Zulilly sol sales double in the first nine months.
The company also turned a profit, unlike other recent ipo companies, twitter and others.
Speaking of twitter, the successive -- the success of its ipo have put a spotlight on its people behind you.
Bloomberg's cristina alesci asked j mariotti about it.
One day trading performance is one part of the success formula for any ipo.
In the case of twitter, much like linked in a couple of years ago, in the case of twitter, investors are simply looking out for their -- further.
Part of that is scale.
Part of that is that they see it as a relevant asset for the next five years and beyond.
So in the case of linkedin, which went public in may 2011, it was very clear to us that investors were looking as far out as 2014 when they were valuing the company.
That is what is going on with twitter.
Everybody wants to focus on the revenue multiple or the perspective multiple next year, and the reality is investors are looking out much further.
Investors are looking back at things like linked in and saying i did very well being forward- looking there because i like the business, like the management, etc.
Dcd disconnect between evaluations in those countries -- do you see any disconnect between the valuations in those companies are now?
Linkedin has rogue revenue and grow profits coming from different revenue streams, whereas yelp essentially only has one group of advertising.
Right now, the market is rewarding the fastest growers.
Alternately, linkedin is a great company, multiple revenue streams.
People on a risk-adjusted basis will be more comfortable with things like that.
You will not see a separation in this market.
You will see a separation when the market becomes more challenge.
You are seeing a disciplined market with respect to companies that do not have a past of profitability.
You look across the board there at the companies that do not give a path toward profitability, there is a real disconnect there.
That is not to suggest those cannot get public, but there is a price for that.
There is a price for -- now, in some cases, the investors, by the way, are encouraging them to invest in their business because they like the market opportunity.
They are encouraging them to spend into that market opportunity, but they are not going to pay the same multiple that they will pay for a company that has scale, probability, and outside growth.
And that was j.d. moriarty of bank of america merrill lynch with cristina alesci.
He also said two of the most highly anticipated ipo's would be square and alibaba.
Time now for on the markets.
A look at what is on the markets every hour at 26 and 50 six after.
Julie hyman is in new york.
Thank you, humphry slocombe -- to why, jon.
-- thank you, john.
We have continuing optimism that janet yellen at the new head of the fed when she is in fact confirmed will continue the stimulus that we have seen from the federal reserve.
Also in terms of individual stocks am a we are watching pandora third the internet radio company has hit a record high in trading, as much as 70% up third that is after an analyst at j.p. morgan raised his price from $10 to $35 30 optimism driven by us market share is due to revenue growth.
Shares of jcpenney are higher after the struggling retailer disclosed the very rosenstein -- undergoing some sort of transformation.
Other managers raised or lowered their stakes, but it looks like the upside is prevailing today.
We will be on the markets again in 30 minutes.
You get more "bloomberg west" this is the early edition of "bloomberg west." i am jon erlichman and four emily chang.
You can also watch at our later time, 3:00 pacific, 6:00 p.m. eastern.
President obama is meeting with health insurance executives at the white house today, talking about his plan for americans to renew health insurance policy that would have been canceled under the affordable care act.
The house is also debating legislation to restore the canceled policies.
The relief effort is slowly picking up steam after that massive type of bone in the philippines -- massive typhoon in the philippines.
Aid workers are landing at an airport in one of the hardest hit areas.
A private cargo ship full of supplies is expected to arrive tomorrow.
And battle toronto mayor rob ford has been stripped of powers by the toronto city council.
The council has promoted to -- has voted to remove ford's authority and ability to hire and fire top staff members.
He vowed to stay on the job after admitted to drug use.
I want to get back to that breaking news on microsoft.
Bloomberg news has learned the company's board will meet on monday to narrow down the list of ceo candidates according to persons familiar with the situation.
Bloomberg news editor are relieved he is here with more on this and obviously we know that steve balmer -- steve ballmer has given his notice, and the board had the task of finding his replacement.
Give a sense of the types of candidates being considered for this job right now.
We know that alan mulally has come forward -- is considered a very strong candidate.
Yet the spirits running a very large company.
The issue there would be does he have enough tech savvy, and his age, right, he is getting there in the 60's. the former microsoft executive who have been running nokia is considered an outside candidate because the company -- the acquisition has not actually been official yet, but he is really an internal person.
From there, the most of what we are hearing are there internal candidates that run fairly large businesses.
So the point person on skype and the bloomberg news reporting with suggest they would like to get the list down to three to five people so they can start doing a one-on-one interviews in the weeks to come and maybe get to a better spot.
In terms of the kinds of things they are looking for in their new leader, what are you hearing?
The reason that mullally keeps coming up is because the profile that he has is someone that we know that the board and committee is very interested in.
Again, not somebody who just understands the technology landscape and understands microsoft but to really communicate that to a large global audience both in terms of customers and in terms of employees.
So that is kind of the model that we have been told to look at.
There are not that many of you out there like that.
So that is the ideal candidate, but what we are continuously hearing from people inside and out is that this is not going -- this is going to be a top ship to turn on for anybody.
Ra, thank you, ari levy with bloomberg news.
We turn to changes in china and the biggest extension of economic freedom is since at least the 1990's. china has vowed to loosen its one child policy and include private investment in state businesses.
Under the new rules, a couple can have two children if i -- if either parent as an only child here joining us from new york is elizabeth economy, director for a jewel -- for asia studies at the council of foreign relations.
What was your reaction to these announces out of china today?
I think the announcement on the one child policy was a pleasant surprise.
There had been indication that this was coming down the pipe, and it really does represent a positive step forward in terms of social liberalization out of the leadership that has not inserted much inclination to take these kinds of steps.
I think it was a positive move on the chinese leadership parker there are some staff suggesting that policy has contributed something like 400 million less births since 1980. alternately, how does this news affect the population, the labor force in china?
It is important to recognize this is not a transformative policy.
It is not an abolition of the one child policy.
What that says is that if the wife is a single child and the husband has a sibling, then you can have more than one child.
They already have a policy on the books that if you have both single parents, then you could have more than one child.
Really 10 million couples can have a second child now based on this new policy.
So there could be some significant implications, but a lot of demographers are saying that it might lead to one or 2 million new births per year.
China is right near the list of top tech spenders in the world.
I'm sure there are a lot of countries, especially in silicon valley, that do a lot of manufacturing in china that are wondering ultimately what this means in terms of their ability to do more manufacturing there.
What do you think we should keep in mind?
He was a poor thing to keep in mind that this policy is going to have an impact -- the one thing to keep in mind that this policy is not going to have an impact for another 17 years.
This is a policy that is going to start now.
So for companies that are investing in china and manufacturing in china, they should expect that they will continue to be a dip in terms of population, in terms of birth, but maybe in the next 17 to 20 years, you will begin to see a pickup.
What about the news china may be allowing for more private investments as state industries?
What could that mean for the economy?
That really depends on how this reform plays out.
That is something to bear in mind, the entire package that the tigers -- chinese leadership is announcing.
The devil is in the details.
It is potentially significant that they are going to allow for private investment may be a 10% stake in the state owned enterprises, but what is that really going to translate into in terms of corporate governments -- governments?
We do not know.
If you are a major investment, are you going to have a say the company?
Will this lead to the subsidy that states on the enterprise of have been sucking on land in energy, perhaps?
So again, i think it is a positive step, but we really are going to have to wait to see what the implement and guidelines are over the next probably six to 12 months.
We appreciate you shedding some light on us -- on it for us.
Elizabeth economy, director of asia studies at the council of foreign relations.
He is the man behind blockbuster hits like "rainman" and "batman." we're talking business of hollywood and sports next with peter guber here on "bloomberg west." this is "bloomberg west." i am jon erlichman.
From hollywood to sports, peter guber hat that covered.
He is an owner of the los angeles dodgers.
He is also the author of the number one new york times bestseller, plus he has tinseltown covered as chairman and ceo of mandalay entertainment group.
How does guber stay on top of what different audiences want?
He joins me now from l.a. to talk more about it.
Here in san francisco, everybody is talking about the stock -- the strong start the golden state warriors.
Peter, what was the biggest change your group made when it took ownership of that team that has led in part to this turnaround?
Well, as partners, we decided we had to change everything, top to bottom.
Almost all of the management was taken care we had to design a completely different culture.
Culture is critical to your business plan.
As the for most -- it is the foremost element.
We went top to bottom, on the floor, hearts and minds of our audience, our fans, we win in the relationships with our players, how we do with the media.
Every one of those touch points are critical to creating a winning culture.
You talk about culture.
We were talking in our last segment about china.
The team recently spent some time in china.
How do you go about building the warriors brand, for, in a market like that?
First of all, you have to realize the brand is the nba brand in china.
They use the chance, a collection of all the teams, who travel there.
We played the lakers in two games, won both of them, beijing and shanghai.
We are ambassadors because it is the fastest-growing market outside of the u.s. and canada for nba basketball.
It is the most promise, you put the most resources against it.
What you have to recognize is it is a different experience in china.
The weighty fans -- the way the fans relate to the games and the players.
You build individual teams relationship with the chinese basketball community and the audience there, and you hope it takes root.
We have a full-blown relationship with china.
We think we are well on the way kurt let's move from basque about a baseball.
You're part of the ownership group for the l.a. doctors.
-- you're part of the ownership group for the l.a. doctors.
The team president suggested there might be an opportunity to take that dodgers brandon introduced into new businesses down the road.
What kinds of things are you guys talking about?
Welcome i think what stan talks about is leveraging the assets of the dodger brand, which is most -- both local and global peer we're going to play two regular league games in australia in march.
So the idea is we have a global reach even though we are acting locally.
That is the key.
With that, you bring a lot of intellectual, reputational, and relationship capital to our brand and our business.
The idea is -- how do you expand the product offering and relationships?
Was stan is really bracing for -- reaching for its use the doctors and the doctors brand and the intellectual capital at the dr.
As an -- at the dodgers as a capital.
Lets a witch from sports to movies.
Mandalay has a number of films and now.
Have you go about making and marketing a movie these days when it is tougher to get people to theaters if you are not making a $500 million movie?
Yes, it is an act of faith.
Maybe an act of daring.
We have four films that we just finished shooting over the past six or seven month.
All over the world from berlin to northlands to vancouver -- to new orleans to vancouver pier and we are in a much different market with these smaller films, $50 million to dirty million dollars.
Basically it is not a franchise, it is not a sequel.
It is an individual narrative, and as such, each movie is a new business, and a new business, as you know in the business world, is always perilous to do.
It is parallel us -- it is perilous to on saturday ideas to find stories, narratives, product opportunities and really relate and a mighty heart.
And that they are interesting to an audience, anyway that you do that is you make sure that the drama and the narrative is on the script.
Because if it is not in the page, it is not on the stage.
And there you go.
Very quickly before we go, netflix has said it is considering getting into making its own feature films for release through netflix.
What do you think about that idea?
Would mandalay be interested in partnering with netflix on something like that?
Most assuredly peered we look at all the different platforms that could release movies.
Today, the idea is the movie is the thing, whether it is a big screen, imax film like "gravity, or whether it is a faith-based film like "soul serve urfer," the idea is audiences consume media, movies, in many different ways now.
So we have to be agile, mobile, and maybe sometimes hostile in order to touch and reese those audiences with those -- with our product.
Always fun to get your perspective, peter.
Chairman and ceo of mandalay entertainment group, peter gruber -- guber joining us from los angeles.
Still ahead, how much is a pinterst pin worth?
We will tell you.
Welcome appeared i am jon erlichman.
Pinterest is opening its popular scrap booking service to outside services.
It plans to let walmart and others generate lists to items in their online stores.
According to our next guest, pinterest could be worth more than its current $3.8 billion valuation based on recent financing.
Sharad verma is the ceo of piqora.
I have been looking forward to having you on and getting to the root of how you determined what a pin is worth.
What can you tell us?
We have analyzed a thousand brands, and what we have found is on average, a pin drove $.78 in sales.
The more interesting thing that we found was that a pin can live for a very long time on pinterest, and a continued to drive orders and site visits after two to three months.
So 50% of the site can come after 2.5 months after its origin.
Which means that the pins have a very strong economic distribution power.
For people watching on television, we are showing an interesting chart on that.
What does that mean for marketers?
I would imagine they would have to get there had to run a concept.
What it means is that pinterest is really a place where your online catalog lives.
Pinterest is a place where people are collecting product.
So the retailer or the marketer for an e-commerce company, your goal is to get your product on pinterest.
I can actually drive traffic back to your website or a for your business, i have to ask a question because in the case of twitter, we saw a lot of analytics companies that were that twitter platform, and some have been acquired.
If the work you are doing or the business that you build -- is that something that could ultimately be acquired by pinterest?
That it's not the goal of the business.
We are seeing a fundamental transmission in the way the web is architect appeared we are seeing a shift away from tech to web.
Users are interacting with information on applications.
We think of ourselves as core businesses, and we want to help marketers understand away from tech even to including a short video that is happening, and images.
Everybody has been talking over the last 24 hours about facebook bidding for snapchat, $3 billion.
Snapchat says thank you, but no thank you cured facebook has obviously put energy into commerce.
Do you think that is a possibility that a company like pinterest could end up in the hands of somebody larger?
I would not rule out the possibility.
Pinterest certainly -- it is designed for social e-commerce.
So it is a platform that pace that --a platform that facebook might want to look into.
It is not an easy acquisition, it is not an easy decision for a company like facebook to make.
We love to explore the personalities of silicon valley.
The ceo of his company -- what can you tell us about how he has been building this business and his strategy, his goal?
I think he is building in a very right way, which is putting the users first, but really nailing the dna of the platform before he starts to scale.
A great insight.
Thank you, sharad verma, cofounder of piqora.
I am jon erlichman.
Coming up on the late edition of "bloomberg west," how do chinese smart phone maker acute google executive hugo barra?
We will ask at 3:00 p.m. pacific, 6:00 p.m. eastern time.
It is 56 past the hour, which means bloomberg markets is on the markets.
Senior markets correspondent julie hyman is back with more.
Let's get back on where stocks are trading right now.
We do have a rally.
Not a big one, but none the less, and extension of the rally that we have seen following janet yellen's testimony over the past week.
We are seeing the dow and the s&p rise to new records.
A couple of individual stocks we want to highlight here -- first up is general electric paired it announced it will sell part of its retail financing business next year.
The ceo has been -- since the 2008 crisis.
We're watching recent coverage to the market.
Snp is an attorney coverage of the microbe blogging site twitter with a price target at $30, nearly a third lower than where the stock is right now.
Twitter option started trading today with 45,000 contract exchanging hands within the first hour of that beginning trade.
For more than the derivatives market for twitter, i'm joined by trade alert president henry schwartz.
His firm does a lot of analytics for options trading.
What we're seeing intruder today -- in twitter today, and how does that compare with other ipo's we have seen recently?
We look at basically every single option trade that takes place, and there are about a billion -- a million traded it.
Twitter traded at thousand conference in the first minute, 45,000 in its first hour.
When i was on my way up here, it was in seventh place along technology stocks for options trading, and that is a big deal because technology stocks about a third of technology trades.
It was incredibly busy.
You are seeing kind of what you would expect on the first day of options, listing at such a hot name.
So much media coverage, everybody is paying attention.
There is obviously some kind of pent-up demand to hedge that kind of incredible first day spike, which really persisted.
I think a lot of people want to lock that it if they can.
There are some who can, there are some who were not allowed to based on how the allocation went.
But we are basically seeing what you would expect, which is put out trading calls, the focus is downside put, we saw 43 strike purchases, december expiration.
That was really the only institutional block that we saw, the 2000 block, five minutes into the day this morning, the stock was around $45. the stock is basically slid back.
You have been watching the shortselling in the stock as well, which happened a few days