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tv   Street Signs  CNBC  September 26, 2012 2:00pm-3:00pm EDT

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market may help housing. and are you clucking kidding? a mansion one person wants to build for his chickens. next to jackie deangelis. >> good afternoon. major indexes are at their multi day losing streaks as political and economic instability and and troubles in europe weigh down on the markets. we had u.s. housing data below expectations. the dow flirting with its fourth day of losses. currently trading near break even. but the s&p down five days in a uh row with jabil circuit weighing on the index. today trading down 10% after the q-4 earnings missed estimates. oil falling sharply below $90 a barrel as the euro zone crisis escalates. since closing at $99 on september 14 crude has fallen $9
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or 9%. brian? >> thank you very much. while the dow in the markets may not be tanking a lot today, there is something that's been very interesting going on as of late. long dated government bonds are being bought big time. the ten-year yield has now fallen eight straight sessions. last time that happened was in january of 2008. it smells a bit of fear. here's what's going on. stocks are telling a different story. stocks and bonds generally go in different directions. but the blue line is the s&p 500. we have been up, down, up again. the light green -- yellow, seahawks green, whatever you want to call it -- is the price of the ten-year fretreasury not. at the start of the year the two were going in opposite directions as we usually see. we had flare-ups. they started to converge, come
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back. we did what we normally do, diverged again. look at the far right, they are coming back together. people get scared, sell stocks and buy bonds. is that what's going on here? let's get rick santelli's take on it. rick? >> i think you nailed it. i think there is a bit of a water balloon metaphor or analogy to this as well. the federal reserve has a giant water balloon and they are trying to manage it. that represents all the markets in the u.s. economy. they are trying to squeeze it to use quantitative easing to help asset prices mostly in stocks. what happens is the distortions are going into the second derivative. it gets very difficult to tell risk on risk off what's real, what's memorex. simply the issues in europe are the poster child. the u.s. has similar ones but the issues are running much ahead of the cure or medicine. the deterioration in the economic horizons, whether
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france is moving into recession, spain moving into junk in terms of ratings agencies. those are real world economic fundamentals causing the treasury market and the safe harbors to reprice again. what's fascinating is if you look at a chart today we had new home sales. wasn't a bad number. best since basically 2010. if you go back to 2000 and look at the chart, all of 2004 and 2005 was above one million annualized units. the fundamentals near term are improving but in the big picture they're not. now you look at the chart of ten years. we are at a three-week low in yield which you just pointed out. i think stocks will slip along with the yields. >> you're like my dad. i used to come home maybe with a d and if i brought home a c science i would s
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minus i would say, look, pop, i got better. he still wasn't happy. >> perfect analogy. >> thank you very much. sometimes you get it right. back to the bond king himself, bill gross, pimco founder and co-cio. you pointed out a bottom would be 1.5 a% yield. is that the low? >> i think so. it's hard to know when the fed or other central banks throw hundreds of billions into the p pot. in the stock market we are seeing it's up close to the bond market when there is a proxy close to 10%, too. the fed creates money and that's what we are seeing at the moment. >> your fund has beaten nine of
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ten competitors in bond funds like yours. so you are well above your benchmark. you have done well. we know you have sold treasuries. we know according to the wall street journal you have had a nice in-flow of new investor cash. where are you putting the new cash and the sale proceeds to work? >> well, thank you for the compliment. we hope it keeps going. no guarantees. where are we putting the money? in terms of the fed we anticipated and continue to anticipate what they will buy. they said they will buy 40 to 70 billion worth of agency mortgages every month until the cows come home. it pays to own those mortgages despite the fact that they are significantly overvalued.
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should those countries apply for a rescue. we think italy will be the recipient of buying bonds so you want to buy them before they buy them. >> you know, we talked about it before. it's pi ee's point we keep comi to. if we see a euro bond and there is no guarantee. if we see more bonds issued, is that going to dramatically reduce demand for u.s. treasuries? >> we think to some extent. to the extent that german bonds and u.s. treasuries -- the ten-year, basically both somewhere between 1.6 and 1.7% to the extent those are flight to quality instruments then if things settle down and as of today they are not settled down. but if they settle down, logically some demand would come
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out of those areas into the riskier areas with the higher return and higher opportunity. that would be the case. >> what's your view on mortgages? you probably heard rick say, listen, home sales are better off a dramatically depressed bottom. do you think the mortgage market has hit bottom? >> yeah. it looks like prices have. it really doesn't mean it will be a leader in terms of economic growth like it has in prior sick sooikles. house -- cycles. housing is 3% of gdp. typically people bought refrigerators, washers and the like and we have had a consumer boom following a housing upturn. you know, structural differences this time suggest probably not. the homeowner is too much in debt. therefore, you would see a limited upturn. but housing has bottomed. that's what the fed wants. they want housing prices and other prices to increase. it's below the 2% basically target. raising prices not just for homes but for other goods and
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services. hopefully labor is really the objective. >> we had one of your colleagues and friends scott miner from guggenheim, a frenemy come on and say i'm buying stocks in a big way. the worst has been done with equities in europe. do you agree? >> you know, stocks are depressed. there is no doubt about it. the fortune of euroland equities depends on the ability of the ecb and structural changes to stimulate growth. at the moment the only growth we have seen is in germany in the northern parts of euroland. that's sinking as well. there is blood on the streets. do you buy when there is blood on the streets? yes, the rothchilds said to do that. i would simply say that real growth is an essential element of this particular recovery. unless we see it then equities
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and italian and spanish bonds won't do well. >> final question in two small parts. do you think we should go with the fiscal cliff and if we did and taxes go up on everybody, will that bring us back to a aaa credit rating and if so, what would you do about it? >> we shouldn't go over the cliff. we should seek a remedy. uh i will put out an investment outlook that suggests the united states along with other countries such as greece and spain and france are in this category of what's called a high structural deficit. that means we need to, you know, over the next few years, maybe five to ten years reduce our structural deficit by 1.5 trillion dollars a year. that's a lot of heavy lifting. you know, can we do that? perhaps. but the united states has gotten itself into a corner in terms of high debt level. it may lower real economic growth going forward. >> we didn't even bring up a
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picture of wimpy, the cartoon character you referred to in the last note. we'll look at the next one coming up shortly. >> thank you. >> certainly europe is a big part of the story again. another massive protest under way in spain. demonstrators railing against deeper austerity cuts. let's go to cnbc's own steve sedgwick in madrid. what's the situation on the ground? >> yeah. on the ground in this part of madrid we are just waiting to see if we see a recurrence of the violent scenes we have seen in the last 24 hours. scenes i have seen too much in greece and basically people are protesting against the kind of austerity that we know has to come if this country will get itself back on its feet. the austerity bill gross was talking about in order to reassure the markets and those euro zone partners that spain is serious about getting the budget under control. this is a government that's
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struggling to bash a mole, so to speak. it bashes one problem, another comes up. if it bashes the banking sector then catalonia or andalusia comes up again. we heard how severely this could affect the population. it's a population that isn't worried about recession. the economy has contracted double digits since 2008. we are in the midst of an enormous housing crisis. that's how we got into the big mess in the first place. the austerity may well please the markets. it may please the germans, but you can see the people are protesting. this country just is at a breaking point and can't take more austerity. back to you. >> steve, thank you very much. oil taking a tumble. just how low can it go?
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how low can stocks go? your next guest says to get ready for a big drop soon. later, the doug flutie tech trade. three companies throwing hail mary passes. who will score and who will drop the ball? that's coming up. americans are always ready to work hard for a better future. since ameriprise financial was founded back in 1894, they've been committed to putting clients first. helping generations through tough times. good times. never taking a bailout. there when you need them. helping millions of americans over the centuries. the strength of a global financial leader. the heart of a one-to-one relationship.
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gas? you just might get it down the road. oil may get a big move to the down side but not gas. an interesting scenario in the oil and gas pits today, sharon. >> definitely, brian. i'm dwlad you said down the road. don't think it will happen right away. oil prices are below $90 a barrel. first time we have seen it since august. of course the euro zone worries and concerns about distillate and diesel demand weighing on the gas prices. gasoline futures barely budged as oil has come down 9% since september 14. we are looking at basically flat gas lean futures prices. this is definitely impacting what you see at the pump. today we saw a spike in gasoline futures of 4% midday based on a refinery explosion in canada adding to worries about an already tight gas market. this is something that a lot of traders are watching and they are making money here perhaps on what we are seeing in the spreads and gasoline futures.
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consumers, not a good story for them. back to you. >> sharon, thank you. in march, stanley crouch came on this show and said, buy stocks, they are going higher. he was right. now he's dramatically changing his tune. let's bring stanley back, the cio of aegis capital. why are you calling for a drop in stocks? >> just to be clear we thought we'd see a top in march which we got. we did think we'd have a correction which we stated but higher highs later in the year which we have now gotten. anybody who doesn't think i'm a per mabear, last november on this show, early november we were on and said we thought equities would outperform and u.s. equities would outperform even more so. we got that divergence where the u.s. did better than the world 300. the point being -- look, the future is hard to predict.
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we use internal models to gauge these things which have been relatively successful. however, i want to say that right now we have had what i call the freckled swan has begun to appear. that's the swan with the patches of all the problems that we already know are out there. but they are all in a combination. so we have renewed euro zone concerns, the fiscal cliff. some uncertainty about the election. the composition of government, how much participation and collaboration there will be. so we have plenty of issues to worry about. corporate earnings, macro slow down. china hard landing, soft landing, still with property bubbles in spain, china, et cetera. there are plenty of things to go around. we have made a very strong run from the june lows. the magnitude of the decreased potential. and i want to say that potentially it all depends on support levels.
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it is not shocking if you go back to, say, may of 2010 to when we had the flash crash of the june lows. we got a good sell-off. >> to be fair, two things. how low is it going to go? answer that. and secondly, the reason i pushed back is we had macro issues and the dow has rallied strongly. >> precisely. the sentiment was built on hope and built on the central banks coming into the fore. if you think about it, if we topped on the 14th that friday morning at around whatever it was -- 10:30, 10:45 on the s&p intraday the fed e effect lasted 22 hours after the fact. so there was -- look, we paid in advance for a lot of this. a classic buy the room or sell the news event perhaps. the magnitude of the drop is
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really based on history and the idea of fractal patterns. downdrafts are quicker and much more severe in recent years. >> how low are we going? are we gusting through on the down side on the dow? where are we headed? >> potentially, that's possible actually. it depends on support levels again. i think we'll see more down side pressure here. we might hold some support. we look at 1430 to be important on the s&p. we could get down to maybe the october 2011 lows again. there are plenty of reasons for it to occur in terms of sentiment shifts. look at the euro zone. you had rick santelli on. he brought up a bunch of great
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points in terms of looking at this data in context of what it used to be. look, waste carloads which is indicative of s&p generally correlated. they have been better, but they are roughly 35% of what they used to be in 2007. it's all relative. >> 1330, watching that and watching you. we'll get you on soon. >> thank you. bye. >> turning now to the election. taxes. once again front and center. facts, figures, stats. insinuations flying around fast and furious. are they also flying fast and loose with the truth? eamon javers separating fact and fiction to the sound of trumpets. ♪ >> we should have trumpets on every hit here. let's look at the brand new ad from barack obama's team. then we'll slice and dice on the other side. listen. >> he attacked millions of
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hard-working people making 25, 35, 45,000 dollars a year. they pay social security taxes, state taxes, local taxes, gas, sales, property taxes. romney paid 14% in taxes last year on over $13 million in income. >> the obama team's complaint is romney is ignoring all of the other nonfederal taxes people pay when he's accusing them of not paying taxes. what happens in the second half of the ad? >> they are comparing apples to oranges again. >> they did the same thing they accused the romney team of doing which is ignoring all of the state, local, real estate, sales and other taxes people pay. for the record we checked. what did mitt romney pay according to his 2011 tax returns? here's what he paid in state and local taxes. he paid over 1.3 million dollars in state and local.
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he paid $214,000 plus in real estate taxes and a whopping $146 in personal property taxes. the point is he did pay the other taxes. the obama ad ignores that and focuses on the federal which they accused him of doing when talking about the 47%. if you're doing it for one side, you have to do it for the other. >> well done. thank you. >> you bet. >> heaven in the air. how kid-free flying is finally becoming a reality. and -- >> mm, beer. >> yeah, homer was right. beer. beer stocks have been hopping. one has been a buzz kill for investors. we'll reveal the skunked stock coming up. st 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
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because we know how important cash flow is to reaching your goals. pnc bank. for the achiever in you. today's disaster news. europe, jabil circuit down 9.5%. earnings missed expectations and they forecasted weak first quarter results because of weak demand. they authorized a stock buy back but it is not helping. they make electronics for other companies. let's rev up a little. sunshine. copart up on an earnings beat.
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sales rose year over year. an online vehicle auction company. that stock is trading now at an all-time high. continuing the sunshine with beer. it's been a great few months for most beer stocks. molson coors up. miller up more than t%. even chilean based companyas cervesas is up jins jusince jul not boston beer. it's down 10% this quarter. what gives? let's ask mark riddick from williams capital group. i worry when i see a name going this way when its peers are going that way. what's wrong? >> thanks for having me, first of all. i look at the name where every once in a while you have ebbs and flows. boston beer continues to be a name benefitting from craft beer. over the last few years every once in a while it is smaller.
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we'll see investments in their growth and over the course of this year they did add salespeople. they did add some capacity. >> this is a higher sg & a cost story. >> that's part of it as well as we have seen all the commercials out there. that's part of the consumer landscape. in our opinion, if you are not out there pounding the table and spending more on advertising, spending more on sales, to ramp up the growth then you're probably not going to be competitive. >> sam adams used to be one beer. now they have about a hundred beers every week and special occasions. are they stretched too thin? >> i don't believe so. part of the reason why craft beer is growing and we are talking about industry that the first half of the year is growing 14% in sales. that growth is hard to come by in the consumer landscape. i believe they are stretched thin. things that craft brewers appreciate is the variety and innovation. we are looking at seasonals. in the case of sam that would be oktoberfest which does well
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historically. the seasonals are important. innovation is important. that's part of what drives top line growth. >> is this a buying opportunity? >> absolutely. we have seen it for the last few years where shares pull back and then you see the growth. i don't think there is a comparison for the top line growth opportunities when it comes to craft beer. >> is oktoberfest in germany has started already despite it not being october. can you answer why? >> the beer being in stores earlier than expected. >> forget the month. trade on sam the stock. >> it starts in august. earlier and earlier. that's consistent within the consumer space like christmas in august. >> you stole it. mark. congratulations. christmas decorations. you're in the bad joke club. >> thank you. >> buy sam. listen up, american airline carriers. an asia-based airline is giving people what they want more than free beer and nuts.
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kid-free flights. air asia is advertising a quiet zone that will be offered on the longer haul flights starting in february. the airline reserves the first seven economy class rows exclusively for guests aged 12 and over. best of all, no extra cost to sit in the kid-free section. one man's opinion -- genius. hail marys have been in the news a lot this week. we are talking three big tech names throwing hail mary passes of their own. which companies will make the catch and which ones will drop the ball and flop? that's coming up up. plus, chicken mansions. yes, chicken mansions.
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until monday night's infamous packer game that was the most famous hail mary in history. look at that. that's the sports world. but it seems three names you know are attempting corporate hail marys of their own. research in motion putting a huge amount of hope in the blackberry 10 operating system. radio shack, their stock is down 79% in the past year. they are going to need a new quarterback because the ceo of radioshack has decided to step down after less than a year and a half on the job. and barnes & noble which is in the middle, rolling out the $269 high def nook tablet. the stock has gone from $35 to $12 in five years. three troubled tech companies, three big moves. let's dig in. first off to rim which is over here. touting the new operating system yesterday at the blackberry jam conference. the bb-10 won't be out for the
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holidays. so will that hail mary pass score or miss? joining us, will power, senior research analyst at baird. can b brk-10 save rim? >> good afternoon, brian. thanks for having me. good question. it's a show me story and an uphill battle. there is a chance. you look at the packers and seahawks. anything can happen. but as you look at android and apple, they are clearly facing a difficult challenge. >> difficult or impossible? >> i wouldn't say it's ever impossible. but one of the challenges now is turning around consumer mind share. look at the latest windows devices. in some respects they have nice software features. yet, customers aren't flocking to them. the question is how do you reengage customers? i think it's a challenge. >> you look at the lack of holiday products from rimm and
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think, is that it? was that 4th and long and they missed? >> i think as you look at rimm here, yeah, long term you are betting on blackberry 10 as you have noted. it is fourth and long. it's gotten longer over the course of the year. that's been a disappointment to investors. i'm sure to rimm internally as well. at some point it becomes insurmountable. this is a story that could be a zero. that said, still almost $4 a share in cash. other assets. some protection near term. long term they have to get blackberry -- >> quickly, have you done work on how much the intangibles, the ip, the patents might be worth per share? >> i think our view is that there is diminishing value in the marketplace given some of the already large transactions that occurred out there whether it's google, motorola and others. the ip may be worth a couple dollar as share but may not be
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realizable until you're in a bankruptcy situation. >> will power, thank you very much. next, radioshack. billions of investor capital wiped out over the past two years. the stock sinking 90%. but the ceo has stepped down. now they need a hail mary in the form of a new leader. can it be done? senior equity analyst at bbt equity markets joins us. your take on the rather rapid and perhaps unexpected departure of mr. gooch? >> i think at the end of the day this wasn't completely unexpected. as you mentioned the stock was down over 70% year to date. he wasn't getting it done. i think the company decided they had to make a move. the timing is suspicious or maybe a little strange given it's two months before the start of the hol uh day selling season. >> the timing makes you nervous. >> it does.
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you don't want to be a ru rutterless ship going into the holiday season. >> do we have an idea who will take over? >> certainly they need somebody with technology experience. retail and turn around experience. >> who's out there? we talked about jc penney finding their savior in ron johnson. if you're chairman of the board of radioshack, is there someone you say, that's who we need? >> i wouldn't hire julian day. he's the reason gooch was in the situation he was. maybe you could hire someone like sharon mccomb who used to be the ceo of williams-sonoma, well regarded. paul raines, well regarded at gamestop. i don't know if this is compelling enough for them. >> bottom line, is there a
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reason to buy this stock at 2.60 a share? >> we have a hold rating. there is upside potential and downside risk balance. i don't think they are going out of business. it seems like waiting for them to go out of business is like waiting for godot. >> nice reference. thank you very much. all right. finally in the third and long, barnes & noble have lost half the value in four years. today they are going after amazon again. maybe google and apple. they announced a new high def version of the nook tablet. joining us, peter walsh from equity analysts at morning star. can the nook hd refloat barnes & noble's prospects? >> i don't know. there are a lot of expectations in the marketplace in terms of can the nook hd and hd plus leapfrog over the kindle fire, kindle hd and compete against the ipad? it's an uphill battle for a
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company that runs first. chooses to pass only when put in that situation which it appears they are. >> how much does the nook cost for barnes & noble to develop? how much are they spending on this hail mary? >> you know, the short answer is too much. the new product comes out at $299. then it goes up from there. when they are pricing it $30 to $70 below a kindle fire hd product which arguably has two, three, four times the distribution relative to an ipad which has the pricing component, better margins and a $200 to $300 price advantage on retail it's slim from the gross margin standpoint. what barnes & noble would like to do and the strategy is they want to get the customer into the digital locker, hold the content so the customer has to come back and stay in the infrastructure. it's nothing necessarily new. it's a strategy management put in place three years ago and
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they stuck toyo it. >> any reason to buy it? >> we need a wider margin of safety. half of the value comes from the microsoft partnership. >> peter, thank you very much. by the way, i want to be clear. those three analysts on the three hail marys were real analysts, not replacement analysts. those were the real deal. this is cnbc, after all. a story that's more than chicken scratch. how a hedge fund manager wants to build a palace for his hens. it's beginning to look a lot like christmas for retail stocks. against all odds could this be the best holiday season in years? i've been a superintendent for 30 some years at many different park service units across the united states.
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the only time i've ever had a break is when i was on maternity leave. i have retired from doing this one thing that i loved. now, i'm going to be able to have the time to explore something different. it's like another chapter.
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coming up on "closing bell" oil continues to tank. noted energy watcher boon pickens weighs in on the recent plunge in crude and what it means for investors. does it go lower from here? we'll get his take. plus, wait until you hear how much banks are charging for overdraft fees in the last year. is it financial irresponsibility by millions of americans? we have the debate coming up. former california treasurer phil
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angelites says why more needs to be done to fix the aftereffects of the recent financial crisis. all ahead on "closing bell." we look forward to seeing you then. brian? >> looking forward to it, bill. well, folks, only 89 i days before christmas which means, don't panic. there are 88 shopping days left until the holiday. investors have gone on a shopping spree of their own. they have been buying up retail stocks. names like urban outfitters and the gap are up # 30% just this quarter. so courtney reagan, are all signs pointing to a strong holiday season? >> so far, yes, actually. many consumers are starting to shop for halloween costumes. i i'll be katniss from "the hunger games." deloitte is forecasting holiday sales increasing 3.5 to 4% since
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last year with 15% to 17% increase in nonstore sales, so online would be 75% of that. imports are up nearly 9%. those are key inventory building months for retailers. it's not an exact translation for sales. but it has proven to correlate with retailer expectations. a departure from recent initiatives to remain conservative in inventory. perhaps retailers are more confident, too as are consumers. >> the pork report is up. >> imports are up. >> more stuff. >> more stuff for the shelves. >> stay here. >> i'm staying. >> investors seem to be betting on a strong holiday season. are they right? joining us, ceo of j. rogers niffen and a long time executive. jan, you just heard courtney's report. do you buy it or do you sell it? >> they're going to be wrong.
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they will be too thin on the projection. it will be 4% to 5 a%. we'll be happy with christmas. apparel will be good. apparel prices will be down about 10%. it will be a great christmas. people are working. people are using their credit cards. there will be a post election bump. yes, it will be a good christmas. better than the projection. better than nrf's protection. it will be strong. >> i think so, too. one reason it will be strong is that if we have been pulling back for the rest of the year and we are waiting for the election, other uncertainty, people don't want to cut around christmas. you have to stock the christmas tree for the kids. >> think about the children. >> they will remember it forever. back to school sales indicated better than expected. there are some things you don't cut. >> is that true, jan? >> courtney's right. people spend when they can. the consumer can spend because they are not loaded up on the credit card.
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as long as they don't believe they are going to lose their job -- and they don't believe that anymore. and as long as they believe they will have a little bit more income -- and they believe that. and as long as they don't get a skyrocketing price of gasoline or something like that, they will spend for christmas. it will be great if you're macy's. that's the go-to place for gifts. good for gap. they will continue to take market share from jc penney. it will be good for american eagle. they have the best product in the teen space. we'll see strong sales and some people will do well. kohl's will do well. they have to be smarter on merchandising than last year. they have a cost advantage. they are depending upon apparel. they're going to do well. >> jan, thank you very much. love to hear the positive outlook. courtney, to wrap it up here, i know you're the retail expert. any trends? don't say the ipad. don't say it. my kid wants one. she's 8 maf and a ha1/2.
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it's ridiculous. >> look at barnes & noble. you can't deny tablets will be hot. >> i have to show this quickly. i will demand a correction for the wall street journal. did you see this? d-1. peak time for everything. 2:00 p.m., take a short nap at 2:00 p.m. that's the -- no, it's not. that's wrong. >> it's not. it has to do with lunch. we have to shift lunch. >> 2:00 p.m. is the perfect time to watch cnbc. appreciate it. next, the billionaire -- why am i holding this? his $200,000 chicken coop and why this house may change housing. it looks normal, but it's not. we'll tell you why. at optionsxpress we're all about options trading.
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you may think you only have two choices when buying a home, right? a home someone else has lived in, a used home, and a new home built by a developer. there's a third alternative, a prefabricated custom home. that market is growing. how big might is become? let's ask mark jupiter, founding partner at new world home. they're building prefab -- i guess is modular the right word? >> we've all been trying to figure that out for years now.
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you can call it anything you want. we call it a modular home because that's essentially what it is. >> you have to admit, you need a new word. there's been a little bit of negativity attached to that over 30 years. people think cheap construction. that's not what you're doing. tell us about what you do and how well it's selling. >> doing very well in certain markets, as are all the micromarkets around the country. we developed this country to transform housing because we saw it was broken and developed a home that will save 50% on energy consumption, about 50% on water consumption, provide a less toxic indoor air environment, and fwoibuilt to l for centuries instead of a few decades. >> okay. i like your website because it lays it out clearly what you got to do. you got to buy land. >> got to have land. >> then you contact you, pick out a design. then what? is this an all-cash purchase? is it a traditional mortgage?
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>> we're a custom home builder. you go through the same process as anyone building a new home for themselves. you take out a construction loan. >> it's not a normal purchase money mortgage. >> right. new home construction. >> then it is delivered. how long does it take to construct? >> that's really where our market advantage lies, or one of them. there's nothing else on the face of the planet that is still built outside except for houses. you don't own anything built. outside. >> i own very little. >> so what was the question? >> basically saying how long does it take to build, how is it delivered? what's the advantage from a time perspecti perspective? >> when someone orders the house, we're in the factory for two weeks. the entire house is built online in two weeks and takes about two to three months once it's delivered to be finished. >> quickly, it's new york area now. you see a huge opportunity nationwide? >> absolutely. all houses should be built in a factory. it is the future. we're just pre-empting that.
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>> the henry ford of housing. >> we like to think that. >> minus the insanity. >> yeah, i think we are. >> all right. mark jupiter, we'll watch you. we have our eye on you. thank you very much. let's get to jackie deangelis with a market flash. >> we saw these shares spike a little bit. we acted ee eed to comments fr of america, saying they may use their $1 million buy back option should weakness occur in this stock. that sent it up, but now it is trading low per. >> thank you very much. all right. chatter today that the nfl and locked out refs may be closing in on a deal. after monday night's shenanigans at the seahawks game, do the refs now have a bigger bargaining chip on the table with the nfl? on the cnbc news line. -- line is our sports lawyer. if you are the rep for the refs, you are walking with a newfound swagger into the negotiating
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room today. >> it is not a coincidence, brian, that we are hearing that a deal is imminent between the referees and the nfl. i think the referees extracted a lot of leverage from that packers/seahawks game which had a profound effect across the board. we are hearing about a $.5 billion shift in gamblie ining to begin with. you have to imagine nfl owners aren't happy, teams aren't happy, sponsors aren't happy. that's a lot of pressure on the nfl. the last thing they want is a brand as strong as the nfl to become diluted. >> a little tight on time, but we like it. you're hearing close to a deal. great news for everybody, even the gamblers. i'm sure we'll be calling you again soon. thank you. we are crying foul over what may be the biggest clucking waste of money of all time. it's next. [ male announcer ] when a major hospital
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looks good. [ male announcer ] fedex office. 50% on banners. all right. quickly, deen foods, that stock has resumed trading. it's up 6%. it was halted for much of the morning on reports that someone wanted to buy one of its dairy units. either way, df back trading, up 6%. we leave you with this, america. it is the 1% of chickens. a british hedge fund manager is building a mansion, i guess you could call it, for his birds. crispin otie is building this. it will have stone columns, english oak windows, and cost a
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$210,000, all to host his prize hens. thanks for watching "street signs", everybody. mandy is back tomorrow. "closing bell" is next. have a great afternoon. hi, everybody. we enter the final stretch. welcome to the "closing bell." i'm maria bartiromo at the new york stock exchange. lots of red arrows today, although blue chips managing to hold on to the gains we've seen. pretty good floor under the market here. down to poi20 points. >> so far. we'll see what happens. getting a lot of attention today is oils. now plunged 10% in the past two weeks. also on the minds of investors, fierce of more trouble in europe. violent protests over austerity measures do continue there. that's making people here worry more about ripple effects on our own markets. more on all that in a moment. first, get you caught up on the

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