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tv   Power Lunch  CNBC  September 7, 2012 1:00pm-2:00pm EDT

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two fundamentally different visions for how we move forward. see, ours is a fight for that basic bargain that built the largest middle class and the strongest economy the world has ever known. the promise that hard work will pay off. that responsibilities will be rewarded. that everyone gets a fair shot. everyone's doing their fair share. everybody's playing by the same rules. from wall street to main street to washington, d.c. that basic bargain is why i ran for president and that's why i'm running again. [ applause ] that's what this election's about. that is what this election is about. i mentioned last night, i got my
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start in service because i worked with folks who had been laid off from the steel plants when jobs started getting shipped overseas and over the last ten years we've seen that happen more and more. too many families struggling with costs that keep rising. even when paychecks don't. so, people are having to use their credit cards, they home equity loans just to try to make the mortgage or pay tuition or put gas in the car or food on the table. and that debt is why this house of cards collapsed in the great recession. millions of innocent millions losing their jobs and their homes. folks losing their life savings. we are fighting to recover from that. and it's a long, tough journey. but our friends at the republican convention, they've
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talked a lot about what they thought was wrong with america. they didn't tell you what was right. they didn't tell you what they'd do to make it right. they want your vote but they don't want to show you their plan. and that's because they know their plan won't sell. that's because all they've got to offer is the same prescriptions that they have had for the last 30 years. tax cuts. tax cuts. cut some regulations. oh. and more tax cuts. tax cuts when times are good. tax cuts when times are bad. tax cuts to help you lose a few extra pounds. tax cuts to improve your love life. it'll cure anything according to them. now, let me tell you something. [ applause ]
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listen. i've cut taxes for people who need it. middle class families. small business owners. in 2008, i promised i would cut middle class taxes of typical family's tax burden at the federal level is $3,600 less since i took office so i have kept that promise. i've kept that promise. we've cut taxes for small businesses 18 times. but i do not believe that another round of tax breaks for millionaires is what's going to bring good jobs back to our shores or pay down our deficit. i don't believe firing teachers or kicking students off financial aid is going to grow our economy. not when china's producing more engineers and more scientists and we have to compete with them.
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after we were on the brink of financial meltdown because of irresponsible decisions made on wall street, i don't believe that rolling back regulations there is somehow going to help small businesswomen or busine businessmen expand or laid off construction workers to get back to work. web there. we have tried what they're selling. it didn't work then. it won't work now. we're not going back. we're moving forward. that's why you're here today. >> that is president obama speaking to supporters in new hampshire. we'll monitor his talk to see if he does say anything about this morning's rather soggy to put it mildly jobs report. both candidates are on the road right now. governor romney as you see there or just about as you see there, he is set to appear at any moment and address supporters in i believe it is orange, iowa. now, earlier today, we did hear
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right here on cnbc from republican vice presidential candidate paul ryan exclusively. he spoke with carl quintanilla on "squawk on the street" earlier this morning and gave his reaction to the latest jobs data. let's listen. >> 8.1 this month means 43 months above 8%. remember when the president promised that he would prevent unemployment from getting above 8% if we passed the stimulus package? it's not been below 8% since then. making the predictions passing the stimulus, they said that unemployment down like at 5.4% today. this is just another example of lots of promises and lofty rhetoric made. >> all right. let's listen in again to president obama speaking in new hampshire. >> let's go ahead and get that done. let's get it done now. and by the way, if the
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republicans are serious about being concerned about joblessness, we could create a million new jobs right now if congress would pass the jobs plan that i sent to them a year ago. jobs for teachers. jobs for construction workers. jobs for folks looking for work for a long time. we can do that. but i need your help, new hampshire. i need your voices. you see, i appreciate that. then i need you to get your cousins and your friends, your co-workers. look. i am not just asking for your vote. i'm asking the entire country to rally around a set of goals for our country. goals in manufacturing, energy, education, national security and the deficit. and these -- this is a real achievable plan that will lead
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to new jobs and more opportunity and rebuild this country on a stronger foundation. that's what we can do in the next four years. that's why i'm running for a second term as president to finish the job. to keep moving forward. >> of course, as we broke away, he did mention this morning's jobs report. he said he was not happy about it and that he needed the help of congress to do more and to make sure that the jobs picture started to move in the right direction. you know, so you've heard from the candidates. mr. obama, mr. ryan. the unemployment rate did drop but the number of jobs created last month way less than expected and the reason the unemployment rate dropped, not the good ones. senior economics reporter steve liesman with us now. give us some reaction to what the president's saying here and the three things you need to know about this jobs report this morning. >> i think this is not a helpful report for the president. even the unemployment rate which came down as you said for the wrong reason. people dropping out of the work force. we'll show you that now. i want to highlight a few
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numbers. things you don't normally hear about on the jobs report. average hourly earnings falling for the private sector. take a look. year over year, up 1.73%. never nudged above 3% which you can see in this recovery. that doesn't bode well for income and spending in the coming months and predictive. let's look at the growing number of americans stopped looking for job and still want a job. 7 million americans. that's up about 200,000 from last month. and you can see it's been creeping up throughout what's supposed to be the recovery. third is just the jobs number themselves and we're beginning to dash hopes. take a look at the government workers, tyler. see what's happened here. government employment we thought in the winter, sharp cutbacks in the state and local level coming to an end and the government job losses were double what was reported in june and july. over the past year, we have lost
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166,000 government jobs. 43,000 federal and the rest at state and local, tyler. >> one of the things that leaped out at me is labor force participation, people working or looking, lowest level since 1981. remember that? >> right. >> i do and you were a young pup then but that was the middle of the double dip recession. it was a time of economic transition. >> right. >> in this country. happily, within a year, this was the reagan years, began to pull out. the market took off and the market began to grow. >> a couple of things happening back then. women entering the workforce and helped out a little bit and the main thing is that we have two things. the bad economic prospects of people looking for work. the other thing is this aging population. they think it's about half and half. people who get older, they don't work as much, tend to retire and especially if their job prospects hit a dead end, i might as well retire.
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it's a serious economic issue. >> thank you very much. have a great weekend. sue, down to you. >> thank you very much. let's talk about the markets right now. we had a move yesterday. kind of flat today, bob's here. we have the big pop yesterday. the key report this morning. >> you know what's funny, two to one advancing to declining stocks. >> doesn't feel that way. >> one sector doing a material stocks because china announced a big infrastructure project. that got all of the big global name that is are on the upside here and everybody else before the markets opened and then -- >> 6% for that on satellite radio. >> and then 8:30, talk of qe3, the dollar down. that's all positive for all of these material stocks and commodity stocks and a move up in them, as well. commodities in general, gold stocks doing well. last several days, actually. today. look at this.
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6%, 7%, 8% move up and doesn't feel that way even though 2 to 1 advancing to declining stocks because large swaths of the market on the downside. consumer stocks. merck and the drug stocks to the downside and have been market leaders and parts aren't doing much. >> come on in, kenny. one of the questions out there is the prospect of qe, quantitative easing. goldman sachs says better than 50-50 to come. and, you know, you made the point yesterday we might not see follow through in the market. do you think now that quantitative easing is more likely than ever before? >> i think that it's more likely than before because yesterday i didn't think they would do it. i thought they'd talk more about it. there's a better chance to launch. but i think yesterday's action was an overreaction to what we saw yesterday and so therefore it was in anticipation of this, really. that's why we don't see a move today. the market flat all day. trying to find the way. you would suspect without a move
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yesterday with the prospect of qe3 even more reasonable that they would have taken the market higher today but they're not. >> how much, though of qe3 is starting to be factored in to the market? >> i think that's the next thing. we had the action. the market will churn and digest and now wait and see. you know, next week's a big week. all the macro data of next week and you're going to wait to see if ben bernanke actually says here it is. we're doing it or just more talk. >> as we governor romney working the crowd here, when he does begin to speak, we'll take the remarks. how much of the political rhetoric, gentlemen, that we're going to hear from both of the candidates, whip saws this market, what do you think, bob? or not at all. >> today we saw not a lot of movement from -- i think democratic convention for the week but certainly as we get closer, you want to watch those odds because down here that's what they watch. they want the in trade moves. you do, too.
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>> yep. >> it's essentially bets on who's winning the presidential election. >> changes almost every day. >> moving one way or the other heavily then there's an influence on the stock market. >> the political discussion for sure is a headline. everyone's going to start paying athe engs to it because i think it's a close race and that people are really looking for direction. >> does it overshadow or take precedence over europe? now that we have some details of draghi, does europe recede in to the background a little bit? >> europe might a little bit until you get spain, italy and don't ask for the help and then the ecb doesn't launch the program they said. for them to launch, they need them to ask for help. if they don't ask, then it's not going to happen. right? >> right. they have to agree to it. >> they have to agree. to the strict obligations. and then nothing happens. draghi said it and doesn't launch it because they don't ask -- >> i want most of all for qe to work. i mean, the bane argument is -- >> can't argue with that. >> that's the principle problem
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i have with it. better start working better. >> should be a policy response of the administration which you're not going to get right now and the only policy response is from the fed because you're not going to get it out of washington right now because they're in the middle of the election. no policy response. >> thank you. see you all later. we are monitoring mr. romney's address to supporters and we will, of course, listen to that and if there's a reference to the job report and "power lunch" will be back in a few. at optionsxpress we create easy-to-use, powerful
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let's go to orange city, iowa, and listen to mr. romney talking about jobs. >> he said if his energy policies got put in place, the costs of energy would skyrocket. and that's happened. this is time for a new president with a better vision for america. now, i was -- i was surprised by his address because i expected him to confront the major challenge of the last four years which is an economy which is not produced the jobs that the american people need. i expected him to talk about 23 million people or at least to talk about the unemployed in america. i expected him to talk about the number of families having a hard time making ends meet. the number of middle income families seeing the cost of health insurance go up. the cost of food go up.
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the cost of gasoline go up. even as their incomes have gone down. i expected him to talk about those things. but he did not. instead it was a whole series of new promises which he also won't be able to keep because the policies he believes in and the direction he's pulling will not make america stronger. if president obama were re-elected we would have four more years of the last four years and the american people are going to say no to that. now, there's something else that you've watched in the president's campaign over the past several months. and that is an increasingly divisive and dismissive approach to the american people. it's been a campaign of pitting
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one american against another. and it's so contrary to our national history and our national spirit. the story of america has been one of the many becoming one. the story of america is a united people coming to build the strongest economy in the history of the world. the story of america has -- a united people that's confronted unspeakable darkness and stopped it from spreading across the earth in the second world war and finding it again. america's leadership has been needed and is needed today. that's been the story of america. people coming together. and one thing i can assure you if i'm president of the united states i'll stop the divisiveness and do everything in my power to unite the american people! >> we'll break away from governor romney as he talks about this morning's jobs report
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a few moments ago. if you were with us, you saw the president in new hampshire speaking to his supporters. governor romney's saying that the unemployment picture at the current point is a national tragedy. emphasizing that unemployment has been above 8% now for some 40-odd consecutive months. sue, what we hear here are two candidates, president obama in effect saying i think the jobs numbers were very poor, not happy with them. >> exactly. >> i need congress to help me do something about it, laying some of the blame and maybe much of the blame on the opposing party and mr. romney saying by contrast the buck stops in the oval office. >> i can tell you, ty, the chatter down here has to do with congress, as well. everybody down here knows it's a tight race. that's why as bob mentioned they're watching the in-trade percentages move but regardless of who takes the white house, the debate is starting to shift now to the fact that the country
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is facing the fiscal cliff and that that is going to be an issue that is going to fall in the lap of congress and that may be what really dominates the fall after we get through this election because that's what the market is going to be watching. they're watching the fiscal issues that are facing the united states right now. and as we look at the in-trade chart with mr. romney unchanged on the trading session, down in the last week about 3%, mr. obama's in-trade up 4 1/3 and keep in mind, of course, the week of the democratic convention and mr. romney had a leg up in the republican convention and starting to shift from the election itself to more of the fiscal issues, tie. >> right, sue. all right. we'll continue, of course, to watch governor romney and his remarks. >> indeed. >> this hour out in orange city, iowa. the president up in new hampshire earlier this hour. sue? >> all right. we'll take a break and then you'll analyze the analyst. we have calls on priceline,
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nvidia and a stock that's been getting a lot of attention. we'll tell you about this in a minute and check this out. if you invested $100 in morgan stanley four years ago, you would have 40 bucks today. yikes. will you be better off four years from now? we'll tell you what four stocks to be investing in for next four years coming up on "power lunch." and you don't want to miss it with thinkorswim by td ameritrade. you get knock-your-socks-off tools, simple one-click orders, real-time paper trading to hone your skills, plus anytime you need it support. ♪ stocks, options, futures, and forex. get your trading on track. thinkorswim by td ameritrade. trade commission free for 60 days, plus get up to $600 when you open an account.
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bob...
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oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. now save 50% on banners.
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♪ big gains on the market yesterday and now taking a breather. we are not on analyze this. scott freeze is here. his last round. he's from street one financial. we'll take a look at some of the calls today. see what he thinks. nomura securities upgrading priceline. price target 7.40 a share. we are becoming more positive as pcln grows more global. past two months the stock pulled back about 8%. you like this call? >> i don't. i don't like upgrading a stock purely on price and that's what it looks like they're doing here. if you look at the european issues of priceline, i don't see the booking.com growth offsetting that. it's a neutral at best. >> love it when you disagree. cantor fitzgerald downgrading
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nvidia noting the business of pc and computer market and they quote say we expect little to know growth over the next several years. you buy this one? >> i'm okay with it. not in love with it. i'm okay with it because even though sector is down, part of the consumer market is non-apple tablets and area of substantial growth and a direct beneficiary of it. i like it. >> you like nvidia. it's a hold. >> goldman sachs upgrading on rocktenn to $83 and added the stock to the conviction buy list. why? well, here's what they say. producers will implement the announced price hike in the fall. shares popping 2% today on the call. do you like the call and rocktenn? >> i'm okay with the call and because it's goldman it's going to get to $83. i don't see the $50 price move being that significant. it is a supply/demand neutral
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environment. if there's slowdown on the other side they won't get the increased revenue and not sure if $83 is justified. >> but you think it gets there on the geldman -- >> because goldman said it. >> thank you very much. the metals market about to close and are we better off than we were four years ago? we have got four stocks that our expert says are going to be better off four years from now. stay tuned and find out what they are.
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welcome back to "power lunch." i'm jackie deangelis. we are watching shares of perregrine pharmaceuticals. it was halted on news of reporting significantly -- statistically significant data of the phase 2-b trial for patients of lung cancer. so this really setting the stock up. take a look at that chart intraday. sue and tyler, back over to you. >> thank you very much, jackie. a huge move in the gold market. near four-month highs right now. sharon epperson is tracking the news for us. china news had an influence earlier on, sharon.
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>> but really, sue, this is a story about the jobs report and if you wanted any indication that the disappointing jobs data to steal the deal for quantitative easing, look at the reaction. gold prices up more than 30 bucks, topping $1,740 an ounce. intraday. traders say we are looking at $1,800 an ounce coming soon for gold. what they're focused on, of course, is overall jobs number, but also, the hours worked number. that particularly disappointing and causing many to believe the fed will have to do something here and the same story of the silver market will near a six-month high and more than a dollar gain there and copper the standout because that is factoring both the qe story and the china story as sue mentioned. the approval of more than $150 billion in infrastructure spending in china and traders say that's a big reason to see the big move-up in copper. china's the largest consumer of copper. back to you.
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>> thanks, sharon. now the trading action here for a friday. bob rejoins me. quietly trending. >> two to one advancing to declining stocks. normally up a little more on that but we're not because they're a broad swaths of the market not doing much. the big movers are materials, commodity stocks. double positive of china. and of course, weak jobs report creating a weaker dollar and helping them all. coal stocks, gold stocks, oil service stocks, steel stocks. >> that's a big move in the coal sector. >> gold's been on a tear for a week or so and certainly up and i mentioned not feeling like it's two to one advancing to declining today. check the consumer stocks with coke and pepsi and merck. most of the drug stocks on the downside today and not getting the real participation. >> how's the volume? yesterday some decent volume. not great but decent. >> yesterday about 10% above normal volume.
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twice normal volume in spain and germany. today back down to where it usually is. 3.5 billion on the new york stock exchange. >> thanks, bob. see you later. let's move on to intel's shares down today. the world's biggest chapmaker cutting the outlook and the stock off almost 3.5%. jon fortt is in silicon valley. when's behind the downbeat forecast, jon? >> reporter: sue, hard to say that tablets don't have something to do with it. analysts of rbc saying, look, for every five tablets that sell, there are two pcs that, therefore, don't sell. but, you know, this isn't a story about the pc market dying altogether. far from it. pcs are still selling. part of this has to do with windows 8 coming up. just in the next quarter at the end of october. there's some slackening off of demand ahead of that. that tends to happen with big launches and the iphone this quarter not doing well ahead of the iphone 5.
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expected to be announced just next week. the big question is what happens after windows 8? there's a big chance that intel won't get the full bump of windows 8 coming out because consume sales tablet sales and chips not a lot of initial tablets to consumers. so, big question. what happens this holiday season? if people buy the tablets. amazon and apple coming out with. we expect over the next few weeks. that could actually hurt intel because of that five to two statistic i talked about just a little bit earlier. back to you. >> thanks, jon, very much. to the bond market now and see how it's reacting to the jobs report and the other data of the day. rick santelli at the post tracking the action. we had a rally early on. has it held, rick? >> well, i tell you what. just amazing. and i think the best way to get in to this conversation is to remember sharon epperson was said. four-month high on gold. the chart, please.
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24 chart of the dollar index at 8:30 eastern when the data came out. sayonara for the dollar. that's a four-month low. you see where i'm going. show that chart going back to may 1st and bye-bye on a lot of markets. the 24-hour of our 10-years at 8:30 eastern, 15 basis points. bye-bye. we went from 173 down to 158. granted it's come back a bit. anything different overseas? no. bye-bye to 10 basis points quickly and trying to handicap quantitative easing on the dollar versus the euro, the size of economy, that makes sense but sometimes the markets don't make sense and many think that the gold and dollar does. back to you. >> all right. rick, thank you very much. of course, discussion today very interesting day of economic news, market activity and political reaction. august jobs report below estimates. jobless rate ticked lower.
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8.1%. not for the right reasons but rather because more people dropped out of the labor force. how should president obama and mitt romney spin the results? well, they're doing just that this hour as we've been checking in. mark morial is one of mr. obama's supporters and ron christy of christy strategies on the other side of the aisle. good to have you with us. mayor, how can you put anything but a rather downbeat face on the numbers that came out this morning? >> because i think the underlying message is one of consistency. that there's been now 30 months of consistent job growth in the private sector. and it's really about direction. no one can be happy until we achieve full employment. keeping in mind i think the employment situation would be better but for congressional obstruction and filibustering to number of ideas that have been advanced. >> but mayor, that job growth, the economy's not growing fast
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enough to really grow jobs at anything other than a very anemic rate. may be positive but it's not -- it's certainly not enough to absorb even new entrants in to the labor force. >> we can't satisfied with this but in the context of the politics of the situation, i don't think it's time to turn the car over for repairs. to the mechanic that wrecked my engine the first time. and i think that's the choice that the american people are going to be facing. what policies make the most sense to try to get the economy growing again. it's going to take cooperation with whomever is president and the congress. >> ron, let me turn to you. one of the i think more disturbing aspects of the report today to me was the fact that the labor force itself is shrinking, those people choosing to look for work is shrinking. many discouraged, can't find jobs at this point.
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how do you turn that around? that is a symptom of people who have been looking for work for a long time and have not been able to land that job. that seems to be really one of the more difficult aspects of this report and then we had downward revisions in previous reports. >> good afternoon, sue. i think you absolutely hit the nail on the head of what i'm most worried about in this jobs report. 368,000 people who have decided for whatever reason they're going to drop out of the workforce, looking for a job, because they're not there to be had. what i think we need to do is empower the small business and the communities are very, very uncertain with the regulatory and economic uncertainty that we have seen out of the white house. i think the way forward to this, of course, is not a one size fits all solution like with dodd-frank but i think we need to, "a" tell the small business owners and employers we will have a consistent tax rate. number two, we have the highest corporate tax rate in the world right now. we need to lower that.
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and three, we need to put policies in place with the consistency so employers know the tax code isn't going to vacillate. we can expand the workforce and know the policies for next years. >> the other issue, also is that, a lot of small businesses that ron is referencing, think eve learned to do with less. they are leaner and meaner. which drives their profits certainly and we've talked to a couple of small business owners who say i have learned to do more with less. i do not intend to hire because i realize i had too many employees before. that's another trend that's running underneath the jobs report. >> that's why these economic times that we face, sue, are very difficult. there's no quick fix. there's no easy solution. and i would not disagree with some of the things ron suggested, but all of the things he suggested are going to require some political datante in washington, d.c. >> but there's no political appetite for this.
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>> there isn't and that means continued pain for the american people. but i do think that the federal reserve and chairman bernanke has signaled a willingness and i would encourage that willingness to take further steps to prop up the economy through another round of quantitative easing. it's an element that is outside of the control of the congress and if it will help the economy, i hope the chairman will take those steps. >> ron christy, at the top of the hour, the president basically said that for virtually every economic ill, the gop stands for one thing and that is tax cuts. that tax cuts in the gop's view is a cure-all to all of it. i'm not taking a stake in that debate in any way but is that a fair shot and if not why not? >> well, no, ty, i don't think that's a fair shot. obviously the republicans want to reduce not only the marginal rates but the corporate tax rates, as well. we need to look at if i were advising governor romney i would
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say we need a moratorium on all regulations put there by the obama administration. are they working? are they hindering small business? are they hampering the ability to hire and expand the businesses? it is not just taxes, tyler. overall approach to government which is does government stand in the way of job improvement or helping facilitate job growth? that's a very stark image we are looking at right now. >> go ahead. >> what i like to look at is performance of the economy under prk versus president bush. when the clinton policies were in place, we had 23 million jobs. under bush we had seven. that's a comparison of sort of two approaches that the candidates for president have been talking and we just had a better performing economy under clinton than bush. >> completely different economic times given the nature of the move to the doneside in our side.
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>> no question but we have to look at the performance records of the policies. >> ron christy, thanks very much. mayor morial, my redskins versus your saints on sunday. you put up the po boy, i'll put up a crab cake sandwich. >> i'm going to up -- i'll put up a huge bowl of gumbo. i love rg3 but the saints will take them. >> i'll go with ben's chili bowl. that's terrific. we'll see you next time. >> wait until the packers play. >> all right. >> thanks, guys. up next, are we better off today than four years ago? don't look back. look ahead because we have four stocks that will be better off four years from now. we'll tell you about them when we continue. [ male announcer ] at scottrade, you won't just find us online, you'll also find us in person,
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welcome back. i'm watching some of the stocks moving on that china news. of course, china saying it's going to spend $157 billion in infrastructure. caterpillar, joy global and cnh global, some of the other stocks moving in addition to the coal names and now turn it over to mandy and see what's coming up on "street signs." >> thanks for that. top of the hour, stocks powering higher with blue chips along for the ride but should you stay with the pock or go walk about as we say in australia looking for diamonds in the rough? we're also fact checking president obama's acceptance speech at the traitic national convention and herb is all fired up in a way only he can be on what he feels is irrational x exuberance of bidding up stocks without a care in the world. sue, ty, back to you. >> mandy, thank you so much. are we better off today than four years ago? it is one of the central themes of the election but while you
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ponder that, the stock market is at its highest level in years so we have four stocks that will be better off in the next four years. and joining us talk is michael farr. good to see you again, michael. welcome back. >> nice to see you, sue. thank you. happy fall, guess, huh? >> indeed. it has been so far for the market. we'll see. you know how september goes. let's look at the four stocks and then run through them. johnson & johnson followed by jpmorgan, cognizant technology solutions and family dollar stores. those are the four you picked for us. why j&j? >> i love all four and i own them just to disclaim an i own them in accounts and might sell them tomorrow. they're appropriate for accounts we manage. johnson & johnson, i like the company. last ten years they have grown earnings at 10% per year for 10 years. an aaa balance sheet. huge free cash flow.
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12 1/2 times earnings. 3.6% dividend. only growing earnings at 6.4%, you have a 10% year. good solid company because i think we have some economic headwinds ahead still. >> all right. move on to jpmorgan chase. i mean, they had a very tough summer, michael, to say the least. and there are some on the street calling this more of a value stock right now given the way the street took the stock down. do you agree or not? >> well, i think that you try to hit them where they ain't a little bit and buy when others are fearful and you're, of course, fearful when others are greedy but this is a time, i think jpmorgan is beaten up certainly and in many ways deservedly over the trading loss. many of the banks, sue, to address your question i think a lot of banks right now look a little bit more like value stocks. this is a difficult operating environment for them with these sort of low interest rates but over the next four years and i love this time horizon, by the way, this is what we use.
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i think you return to sort of a more normalized rate environment and start to tick up and the banks can begin to see fundamentals improve. >> okay. >> unemployment is better. housing is better. jpmorgan at one time book is cheap. >> that is cheap. cognizant family solutions and family dollar. we have a minute left. >> cognizant is an i.t. company, outsourcing company. 16.5 times earnings. 16% growth rate. you know, 18% to 20% outsourcing. it's going to be a grower. i think. very good for us and family dollar! 7,000 stores in the u.s. and 44 states. you know, they target low and middle income. 14.5 times earnings. 15% grower. 1.3% dividend. i think with the economic pressure, cutbacks in government spending and probably some headwinds for a while the fed's talking about it whether they ease or whatever they have to do, i think consumers continue
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do seek out value. lower -- less expensive items and, you know, so i think the family dollar will benefit. a good fit. a new stock for us and but look. four years is a nice long time. don't bet -- i talked to francis hamilton of hamilton analytics saying don't bet against the stock market no matter what happens in politics. good advice of my friend francis. >> thanks for joining us. have a great weekend. >> thanks, sue. you, too. >> back to you, ty. >> let's hope francis is right. >> exactly. coming up, the manners of a ceo. ryanair's chief calling the customers idiots and stupid. why? we'll tell you next. but doesn't seem to be hurting the stock by the way.
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a very quick "power rundown" this hour. joining us is kayla and bob. ryanair ceo calling passengers stupid if they don't print out boarding passes before the flight to avoid fees. i think they're going to charge 68 bucks. good way to treat customers, kayla? >> i don't think so. tyler, this happened to me two
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years ago. living in london, going to the south of france for a surf camp. no boarding pass. i had to wait for an hour ended up missing the flight just to print out the boarding passes. if you don't have an app that works you can't do that to customers. >> call the customers dumb, bob? >> listen. the penalty should be proportional to the event. $68 for a boarding pass is absurd. i would not go on the airline. people paying the fees subsidizing the low fares and they need the so-called idiots, offensive, to pay the fees. >> all right. wall street hot again in hollywood. richard gere's new thriller, coming out next friday and production under way for "wolf of wall street." leo dicaprio in that one. this is the director in new jersey. leo courtesy of a photographer.
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why is wall street so frequently -- hollywood's punching bag, bob? >> when was this golden period, tyler, when hollywood was enamored when wall street? there never was a period loving wall street or rich people in general. remember, wall street, 30 years ago? that wasn't exactly promising. look. you're going to have to get used to the idea. maria's in the movie. a cameo. she interviews richard gere. that's coming up. cnbc is mentioned several times. very excited about this. >> kayla? >> i think this is wall street's sort of days of yore and historic plots. i don't think wall street lends itself to hollywood. it's a risk averse, pretty sanguine culture. >> talk about munich. this is out of left field. a snag with oktoberfest. beer makers concerned they don't have enough bottles for the big party. why can't -- kayla, you are carded everywhere you go but going to munich, you would be beautiful. >> i think when i don't get
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carded that's when i'm crying myself to sleep at night but, hey, it's a good idea for recycling bringing the bottles back. i don't know why's a glass shortage for oktoberfest, what do you do with a shortage of kegs and also a problem. if you can't get the beer there, how do you serve it? you know? of course you can serve it in solo cups but how do you mass produce the beer to thousands and thousands of people at oktoberfest. they will be unhappy. >> they still card you, bob, i know that. >> what's disturbing to me is that they're actually running out of kegs and not returning the beer bottles. why didn't they bring it back. simple solution. call owens, illinois. biggest beer bottlemaker in the world. 40% of the revenues in europe. >> have a great weekend. we'll hit the remind button and separate fact from fiction of president obama's speech last night at the dnc. fact checking obama.
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[♪...] bob... oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. now save 50% on banners.
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all right. let's check the markets right now. when we came on the air we were down about two points on the trading session and dipped a little bit. down a tenth of a percent plus. 15 points on the dow jones industrial average. the s&p in the green well above the 1400 mark at 1435. and the nasdaq which was the best performer in yesterday's big market day to the upside percentagewise is now down about a tenth of a percent to 3132.43. gentlemen? >> we were talking about a very interesting tactical point. if yesterday morning i wanted to get in to the market at 10:00, saw it taking off and bought a mutual fund, what happens? >> end of the day price. so you bought the high of the day. >> and basically flat today. if i by contrast bought an identical index etf i would have -- >> seen all the gains. we saw intraday

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