tv Street Signs CNBC June 21, 2013 2:00pm-3:01pm EDT
scott cohn, cnbc business news. find more of topstates.cnbc.com. all right, sue. we'll see you when he get back here later today. >> you got it. >> what a week it's been. that does it for this edition of "power lunch." >> "street signs," they are down here as well. begins right now. have a great afternoon. happy friday and welcome to the show, everybody. i think we'll call today's show "squawk on the street signs." we have your road map for roping in this rally. we'll find out one thing you must keep your eye on. if there's one country outside of america you need to invest in and what the heck is larry illesson doing, buying an island, airlines? we'll have to figure something out. >> let's see what the market are up to. actually opened up higher, things looking good after we lost 500 points the last couple
of sessions and as of right now we are moving to the downside. dow at an all-time high only three weeks ago. let's get straight to our market reporters. actually in bob pisani's neck of the woods right now. trespassing on his neck of the woods and rick santelli, we'll get out tout in just a second. bob, everybody is freaking out about mortgage rates, right? >> everyone is absolutely freaking out is this unjustified? >> yeah. the idea that the housing recovery is going to be killed because suddenly we'll go from 4% to 6% on mortgage rates just isn't accurate. i want to put up what would happen to rates if we went from 4% to 6%, it's true, not a good sign. used $300,000 as an exam. paying $$1,400 for a 30-year fixed rate. mandy and brian, this isn't going to happen. the federal reserve said any dramatic rise in interest rates that might choke off an economic recovery is going to be met with
more qe. they will stop this from happening if it gets anywhere close to that, so i just don't see it. >> what does it say about the united states of america that 4% on a mortgage is now considered a bad thing, 6% was a gold mine a number of years ago? this is our addiction to easy credit. >> i completely agree. just dealing with the facts. when i was the real estate reporter in 1993, we were at 8% and 9% mortgage rates, but my point is if you think any time within the next month, some people think within the next month or so, it's going to go to 6%, my point is the september meeting for the fed, you'll hear a statement of them acting aggressively. >> very quick question because i'm sure you've been asking people down here on the floor, as we're seeing some of the housing-related stocks get hurt on the back of that. are they saying it's a buying opportunity? >> well, look, i'm not going to argue about whether now is the time to get in. housing stocks have been overvalued, many trading two times book value.
they are down again today, but they are off their lows. let me show you the rest of the market, other than the opening, we had titanic volume at the open. sectors here, either side positive or negative. material groups, on the weak side. been asked why the financials are weak all day and what we've seen is the steepening of the yield curve and a lot of traders are arguing sell some of the money center paper and buy some of the regional banks because high rates, yield curves steepening will help the margins. let's get out to rick santelli himself. sorry that brian sullivan stole a little bit of your thunder. starting to launch on a mini rant. that's your turf. >> well, i'll tell you what. brian is on the right case, you know. all i could think of is 1999-2000. boom, out of the park, sosa and maguire. they are all juiced up. now you take away the juice, brian, does that mean that they can't hit home runs? >> of course not. >> but sosa would have hit about 25. >> hit less of them or they
don't go as far and that's what the market has to grapple. with all the analysts and experts who erred on the side -- most of the stock, most of the housing, i say the distance or the frequency of these home runs has to be handicapped, and the first fib out there is over three days or a week of higher rates or even a money. we don't have enough data to really confirm, you know, home builder stock isn't really the housing market we're discussing, so we need more facts. the other issue is exactly how much the fed can impact what's going on forever, and as much as it's not exactly the same, how can we not help but think about the bank of england and george soros. a lot of this philosophical talk, how much control a large entity can expert in the marketplace, and when the marketplace thinks they can expert some power back the other way, that changes the game. the game has changed. >> it has, and i'm old enough to remember a 6.5% ten-year.
thank you very much. let's do a little market analysis. i want to show you what we're dealing, folks. dealing with the federal reserve, protests in brazil, violence in syria, a major slowdown in china, and we're dealing with perhaps the greatest economic experiment in the world in japan, so all those things out there on your investing table. is there one that you need to look at more closely than anything else, or is it one that is not on that list? let's bring in steve oss, cio of global equities as well as saine brown, fixed income strategist at lord abbott. steve, welcome. i'm going to start with you. on that list or something else, what's the single most important thing you are watching right now? >> i think it is a mosaic. if you watch one thing, there's no haley grail, brian, but certainly i'm watching china, trying to make sure they don't blow up. i was happy to see what they did
last night. they are trying to, you know, cool down that bubble out there, but they run the risk of blowing the whole thing up and i kind of backed off last night. >> going to put on the spot. had to pick, gun to head, bernanke or china, what's more important in. >> u.s. economic growth. >> okay. >> i think that starts to come through. we've got a lot of numbers coming out the next few weeks, i think that will substantiate our whole idea that we're shifting right now from the world is not ending scenario to oh, my god we're actually going to grow again. i think that's why bernanke is pulling in, so i expect to see, you know, the market start to shift towards that, and on bernanke's side i would guess on what they are up to. >> we certainly hope that the market takes good news in the economy as good news as opposed to freaking out that the party might be over from monetary stimulus. what about you, saine brown? what's the most important thing on brian's list or elsewhere that you are watching right now? >> well, i think there's one
asset class that's not going to be impacted by turkey, by china, by brazil and maybe not even that much influenced by whatever the fed tries to do to either increase or decrease quantitative easing, and that is high-yield bond. they have plummeted in price, people have panicked. they have sold a lot of their assets. >> do you find that's a surprising reaction though? >> yes, absolutely, because usually when you see interest rates increase and prices fall on treasuries, you don't get quite as much fall in price on high-yield securities. they are more credit sensitive, and steve just mentioned, hey, we think that the economy is going to continue to go along quite well. you're not going to have bankruptcies in high yield and even slow growth will alol two companies to continue to chug along pay a much higher interest rate now than what they were a couple of weeks ago, and it really represents, we think,
probably the best value out there in fixed income. >> we're making this a very actionable friday, okay, so our viewers, maybe they believe, what do i do? i can't go out and buy a double p-minus corporate credit? what's the easiest way for the audience to play what you're saying? >> certainly can you go to a managed high-yield fund and go to an etf and our concerns with an etf, being an adviser and manager, is you can't really distinguish good bonds from bad bonds and there are good bonds out there in junk land so find an adviser you can trust who has a fund that's well diversified in high yield. play there. >> meantime, steve, you've been telling everybody out there to sell every single bond they have. >> right. i mean, i take his point about high yield. had to be in bonds, you'll stay there. we've moved too sharp too fast here, but we're out of bonds. we want to own stocks, and i'd
be buying cyclicals here for the economic upturn and housing stocks like a fortune brand, whirlpool we like. we like japan here. that is a market that is behaving very well after correcting 20%. the central bank is going the ore way. >> but aren't you calling -- i'm going to push back a little bit, steve, because of the housing-related play, but you're also calling for a 4.5% treasury yield. bob pisani just told us 2.5% is scaring some people. >> three years out we're at 4.5% on the ten-year. we think we get that gradually. >> won't that slaughter the housing market? >> because you've got a supply and demand -- the whole problem with the bears here is they continue to believe that this rally is all about the fed. you take the fed away and the rally goes away. that's not the case. the fundamentals are actually improving, and the fundamentals in housing are quite good, so as long as we go gradually towards 4.5, the market can ajust and the underlying fundamentals will play how the. >> do we go gradually to 4.5, zane brown? >> absolutely. i think we have rate
normalization that's already begun. i say it takes more like five years for the ten-year to get to 5%, but, still, that spells disaster for high quality longer term securities like steve was just talking about, like the ten-year treasuries. so those will really be lousy performers, but if you end up with higher coupons and lower volatility like in high yield you'll be much better off. >> steve and zane, gentlemen, thank you very much. steve, thank you. >> good seeing you. >> big market moves like the ones we had yesterday can be a big test for etfs. herb has been digging out on this and, herb, you've seen the commentary the last two days. a lot of people are out there saying the structure of the etf market is in part to blame for the incredible volatility that we have seen. what say you? >> well, look, brian. in began right now they appear to be doing -- that structure appears to be okay, but there are two troubling developments we're just putting together. a number of ettfs today are
trading at a discount to their underlying assets. this is not what you want to see because it suggests something not quite right in the trading mechanism. according to xtf.com, this date, from xtf.com, it is live, the gold etf was traileding a little bit ago a 1% discount and the slv, a 3% discount. the muni bond, hymb and the hyd are at 4.5% discounts. get this, all the indonesian etfs around a 7% discount. now, the second piece of this story, citigroup is confirming a "financial times" story saying that yesterday they stopped accepting redemptions on etfs. this is important because halting the etf redemptions can exacerbate price deviations. in a statement today citi says it has self-imposed limits as it
does on all its debts. they said we're currently re-eval itting our limits to make sure we have tf market participants. that shows how the moving world of etfs, changes going on and people trying to figure out what's right and what's not right and how it will work. by the way, on the gold and silver, gld is up today, but what you probably have is a situation where sellers were so -- so aggressive, they were trading at a discount and people were picking it up at a discount. in the emerging markets there's considerations or concerns that borrowing emerging market stocks have become very difficult, at least that's what i heard certainly from andrew bogan who has been a critic of etfs. again, most of them seem to be doing fine but there are concerns out there. >> massive etf trading volume
recently. thanks so much. so much happening, right now president obama is nominating jim comey as the fbi director, the number two man in the justice department under president george w. bush and if confirmed by the senate he would replace acting fbi director robert muller. >> i know you're still out there, herb, and don't go too far because herb is coming back and raising a big red flag following yesterday's selloff. the one thing you should asbolutely avoid doing in this market. >> some really incredible pictures that you can see right there. we'll try to dig in exactly why this matters to you. it matters to you here in the united states and, of course, to your money as well when "street signs" returns. (announcer) scottrade knows our clients trade
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violent protests continue in brazil as a million demonstrators stormed the streets and cities across the country. nbc's miguel almaguer is there and filed this report. >> reporter: mandy and brian, a relatively calm day on the streets of brazil after a wild night overnight. some 1 million protesters took to the streets across this country in clashes with police that were violent and in one case deadly. here in rio de janiero, some 3,000 protesters took to the streets and squared off with officers who lobbied tear gas at them. meanwhile a few hours away from here near the city of sao paulo,
one protesters was killed when he was rammed by a car. the protesters across the country are demanding an end to high taxes and asking for better government services, everything from housing, to education, to security. as you know, rio is getting set to take the world stage next month hosting the pope and next year hosting the world cup and in 2016 hosting the olympic games. folks in this country are upset because the country has spent $26 billion just to prepare for those games while they say they lack some of the basic soeshic services and public services they demand. we're expecting to see a huge rally this weekend in the city of spaul oefrmgts now back to you guys. >> miguel almaguer. more on what's going on in brazil's economy, what may cause this and what it means going ford let's bring in cnbc's international correspondent, michelle caruso-cabrera. >> hey, mandy, thought we'd take a look at economic figures for
brazil to see if there's a clue of what brought this on. brazil is not greece. actually had growth. growth is slowing but still growth, 7.5% as little as two years ago and still growth last year. unemployment, near a record low, only 6.2%. again, this the not europe, income inequality, actually gone down every single year for the last 14 years. new data today shows inflation is higher than expected, 6.7%, but, remember, brazil once looked like the womenary republic, but brazil, however, has some of the highest taxes but some of the lowest public investment. after decades of low public investment, brazil has sub par roads, schools, hospitals and as you heard miguel almaguer say they are spending billions on arenas et cetera for the world cup and olympics listen to this. their road system, third largest
in the world, yet only 12% of those roads are paved. price waterhouse cooper says that for some products more than half the cost of the product, transportation. brazil's rail system, it's actually gotten smaller by more than 30% since 1930. there's a reason that a hike in bus fares is what set this o.they are just tired. it's horrendous to get around, guys. i can't emphasize enough how horrible it is to move throughout the country. back to you guys. >> michelle, powerful stuff. thank you very much. continued violence in syria, protests in turkey and now millions taking to the streets of brazil. is there any reason at all to invest outside of america and in the emerging markets? joining us is chief global strategist michael purvis and david reedle. any reason at all to invest in brazil, middle east, any of the emerging markets, michael? >> oh, probably, but just not today, tomorrow or next week or
next month. from a very long-term perspective there's very good fundamentals. in the near term a lot of different types of carnage across different emerging markets. >> what are you waiting for in terms of getting the buy signal? >> want to talk about brazil. brazil has some of the toughest issues as michelle was just pointing out, and frankly you 80% approval ratings that may be slipping lately and what that really underscores is how difficult these structural problems are, even if you get a regime change. what's next then for the poor people that are protesting there, so i wouldn't go anywhere near brazil any time soon. >> don't touch brazil with a pole just yet. david, do you agree with that, and how would you play the brazilian real right now? >> i think you need to avoid brazil, completely agree. off our list of investability for the last couple of years under miss roussef.
they do need to make the improvements in infrastructure. i think the protesters have it wrong not wanting infrastructure investment because that's what they do need. right to complain about inflation. inflation is actually running much, much higher for the common man than the reported number. brazil, i wouldn't touch it right now, and the currency i would leave alone as well. >> you know the statement, right. brazil is the country of the future, always has been and always will be. with that said, where would you vvlt in the world outside of america in emerging, not developed, but emerging markets? >> hong kong, mid-cap, china-listed -- hong kong listed stocks that are china connected and poland. we think the chinese are going to get their policy right. >> because they have so much in common. >> will get their policy right in china and pohl poland will benefit from an upswing in europe in the coming months and they will drag poland up with them. two good markets to be in right now. >> mikeal, would you be so sanguine about what's going on in terms of policy in china right now? we've seen the massive right and
massive credit growth, i think over 20% this year so far, 20% last year. a really difficult task on their hand to control the new credit growth. >> the challenges are very different than they have ever faced before because they have to manage bubbles and achieving this shift from fixed asset gdp to consumer gdp and the currencies actually weakened right now so a real test that they have ever been tested with before and that's going to be a big problem, a big challenge. >> michael and david, it was pleasure to speak to you both. thank you so much. see you again, i hope. take care. >> check out these pictures from nasa. now, if you're listening to us on the radio, imagine a map with a big cloud of smoke over it, there you go. there's a significant haze in singapore. now, mandy, you lived in singapore for years is this just like a lot of people with marlboro lights? what exactly is that? >> a spillover from the massive forest fires in indonesia, and i believe they also come from malaysia as well, and to be
perfectly honest, as ghastly as it is, and i believe it's like soup right now in terms of the haze, this happens every single year, forest friars that actually set by the farmers. it's not something that just happens. >> so what you just said if i heard you right, tea not news, idiot, and you're fools to put it on television. >> i think it's particularly bad at the moment. you're paraphrasing and putting words in my mouth. it happens every year and it's particularly bad right now, thus it is news. >> there you go. on deck, herb is back with the one thing you should avoid doing falling yesterday's news. >> and the summer solstice treat right after the break. all business purchases.
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i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. well, brian, i hope you picked out your druid cape for this evening because it is the summer solstice. all are moving to the upside except for the first. first solar, as we often talk about here on "street signs." >> it's been a while since we've done a disaster du jour.
idenix, this stock is tanking. the treatment for hepatitis "c" was put on hold. deals a big whether to what analysts says is the company's most promising compound. that stock is 70% off its 52-week high. the stock down 32%. that is a disaster du swr our and now more herb greenberg. herb is back, and it's on etf, i don't think, but this is important. it is the one thing that anyone listening or watching since we are on, you know, tell advice, should avoid doing in this market. what is it, herb? >> before i tell you, we've talked about these before. these are three short funds, i suggest you keep a close eye on. ranger equity bear etf, the grizzly short fund, prudential fund and the here's where it gets interesting. >> i hope it gets interesting somewhere. >> this is a disaster so far.
what have you got. >> no, no, no, look as these compared to the s&p 500 over the past month. that gets you to what you should avoid doing. if we have any more days like we've had yesterday or today, these funds could wind up on lists of the best performers. sadly, brian, and mandy, investors often look at those lists and blindly buy exactly, exactly at the wrong time just because they are on a list of best performer. that's not when you want to buy the short fund. >> guess what, herb? hearing from our producer, that the producer received some messages from his friends. they want more herb and more on etfs. back by popular demand. there you go. well, with more herb. >> by the way, herb. you're an old newspaper man, right? >> yes. >> you buried the lead on that one. >> you buried the lead. >> well, actually, trying to build into it because you taught me all about teases, trying to tease into it. >> i tout herb greenberg how to tease. >> did brian teach you everything you know?
make you the man you are? >> you've taught me far more, mandy. >> or the man you'd like to be. cut. thanks a lot, herb. >> this whole segment was a disaster. >> coming up next. >> in our next job, "street signs," cars and computers, they are the focus of today's "street talk." >> plus, beaches and billionaires, wait a great combo. wait until you hear what the uber wealthy are up to this time. "street signs" is back in a moment. washing-machine hoses every five years? what if you didn't know that you might need extra coverage for more expensive items? and what if you didn't know that teen drivers are four times more likely to get into an accident? 'sup the more you know, the better you can plan for what's ahead. talk to farmers and get smarter about your insurance. ♪ we are farmers bum - pa - dum, bum - bum - bum -bum ♪ (announcer) at scottrade, our clto make their money do more.re (ann) to help me plan my next move,
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this friday afternoon, having a little bit of fun down here at the new york stock exchange. a lot of people always ask us, is brian really that tall. we thought we'd actually show you how tall he is. >> i have taken off my shoes. >> she took off the heels. >> i am like -- >> this is real life. >> a follow the yellow brick road munchkin or possibly your daughter which is kind of weird. let's get back to "street talk" and i'll put my shoes back on as well. >> facebook raised from buy to neutral. raised the target to $30. raised the 2013 and 2014 revenue estimates so that's all in light of their new monetarization efforts. >> zynga is actually falling today. >> yeah, zynga i think is down even though morgan stanley is
downgrading it, there you go. 7%, gee whiz, down to an underweight. challenges to mobile, and they site data from a firm called app data. syringa has been buying web gaming titles, among the top facebook games. a 6.35 stock just one year ago, mandy. >> let's also take a look at what's happening with car max. pretty solid earnings, right? >> odd story here on car max. >> they came at 64 cents so the earnings consensus is 58. revenue is better. used car sales were soaring. wells fargo raised estimates on kmx a few days ago. still, the stock is down today, i guess. just wasn't quite good enough, but it is up 68% year to date. >> that was a real fantastic chart showing the march upwards. >> cowan upgrading it to an overweight from underperform. a few days ago cowan made bo positive comments on the stock and didn't upgrade it and now we have the upgrade and may get a
huge customer win from fidelity. their target is $46, which is what, 9 and change from where the stock is. if they are right, could be a big run. >> also have a company that we don't talk about and maybe it's so hard to pronounce. >> this is -- i don't want to call it a victory lap for us. we did this on "street talk," find the names you don't talk about every day, not in the headlines because you can't talk about ibm and ge all the time. >> sure. >> we talked about this stock last week and both agreed we never heard of it. based in the netherlands. they are getting a buyout office for $1.3 billion, 28.50, 28% premium to yesterday's close. spreadtrum a big pop, happy that we dug this name out and put it on people's radar. >> feeling a little bit vindicated i can see there, brian. >> so much to feel bad about. nice to feel good for once.
>> we'll give you that once. >> don't agree with that. municipal bonds, a big focus following yesterday and your next guest has a very interesting take. she says investors can actually take advantage of some recent losses. all right. al dra liebenthal, alexandra, what do you mean take advantage of losses? aren't losses a bad thing? >> well, it seems strange. first of all, let me take a step back because it's important to know that the municipal market has underperformed the treasury market so we've actually lost more money than treasuries, and the reason for that is that the municipal market is largely owned by individuals, individual bonds, mutual funds, etfs, et cetera, and what's been happening over the last several weeks is that individuals have been redeeming their mutual funds, and so that's added to losses. mutual fund managers have had to sell bonds to meet those redemptions, so, first of all, i do urge investors to take a
moment to pause and not sell their funds now into an already declining market because all they are doing now is shooting themselves in the foot essentially and taking more and more losses. now, put that aside. let's talk about what people can do in their individual portfolios of municipal bonds. what they can do is sell an individual bond, take the loss and what they do is actually book the tax law, get those on their taxes and buy virtually the same bond and that's not very important because you need two out of three aspects of the new bond that you buy be different, either coupon, either the name of the bond or the maturity, and when you buy the new bond, you're also buying it at a depressed price so when the bond comes due you get the value of what that is like. >> it is, and something for the
financial advisers, so much fun to do because you're doing a lot of buying and selling and matching up bonds, and most municipal bond desks are capable of doing that. this is actually something that mutual funds managers are already starting to do in their portfolios and what i would urge investors who are a mutual fund to think about is that they hired professional managers and now is the time to let the professional managers try to manage this market as much as they can. >> alexandra, some great practical advice, not only on the tax issue, alexandra, but on the investing, and when you sell, things go down again. have a great weekend. >> let's take a look at what's happening with oil and gold because they are starting to shrug off yesterday's massive commodity sell jof and end the
week on a high note. >> what are you seeing, bertha? >> well, it was a mixed result here today, mandy. when you look at impact it was once gagain just selling, all o the major energy futures. three down days for oil in particular. what's interesting wtm nymex finishing off of the lows, what's interesting though is that the split between brent and wti, the brent premium has shrunken to the lowest we've seen since 2011. perhaps it gets a little more value here. for the week, off more than 4%, but the metals today because a little bit of a relief after a real big horrible push after yesterday's massive selloff. saw gold down to a low of 1268.70 and rallied and managed to trade off of that.
we'll watch for another test next week, if we don't get any kind of impetus here for folks to really start getting more bushel on the precious metals. >> okay. thank you very much for the wrap-up. bertha coombs. also coming up on this fun friday edition of "street signs," billionaires and james bond. we're going to explain. >> and more on tesla's new time saver. why swap her out may be the new fill her up. "street signs" is back right after this. instead we had someone go ahead of him and win fifty thousand dollars. congratulations you are our one millionth customer. nobody likes to miss out. that's why ally treats all their customers the same. whether you're the first or the millionth. if your bank doesn't think you're special anymore, you need an ally. ally bank. your money needs an ally. ♪ [ indistinct shouting ]
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tharnd time every single day we ask what's coming up on the "closing bell," bill griffith. have the pleasure of asking you in person. >> must be a big day if you guys are here. who is back at the headquarter? >> just wanted to go for a drive down at the stock exchange. >> a lovely day, and even though we have a 23-point gain right now, it's masking what could be a wild right for the last hour. it's quadruple witching friday. we have all the angles covered on what is shaping up to be one of the worst nights of the year for stocks if you're long the
market. find out what one of the biggest names on wall street is putting his name when we speak exclusively to john calimos coming off and whether the huge selloff in emerging markets is turning into a buying opportunity. all that and more. maria and i will be right over there. >> actually warming your seats. >> appreciate in. >> i'm actually basting your seat. >> actually sauteing it. >> 90 minutes left in the trading day after a pretty wild week. let's bring in joe greco, boy, hope you've been strapped in for this ride. is this here to stay for a little while, digest how it feels about the fed's commentary? >> yesterday was pretty commentary. clearly people are recognizing we're near the end of the first half. there is some concern that the fed is going to start to step away. we knew that was an eventuality and that there would be some
constriction for the sellers. what we saw is people saying i'm up double digits and just underperforming. maybe i take a little off the table now so i don't miss it on the way down as well and just, you know, put a little cash on the side. in case we do bounce, perhaps is a good day to window dress. >> do you think it's a good potential for a bounce next week. >> actually looking at it for a riley. the russell reconstitution, this could be the week that we push a little further back and july and august we start. >> i'm glad what you said overnight because i kind of view is like christmas, right? >> we know christmas is coming and suddenly we're asking like it's december 24th at 9:00 p.m. and we've purchased no gifts. you nths noted, everybody knew the tapering was going to happen. >> absolutely. >> ben bernanke maybe messes with the language and studly it's the end of the world. >> surprisingly, one takeaway we don't telegraph out there on the first or second headline he said
keep in mind. we won't stop buying and immediately sell. we can hold the positions. they can keep the balance sheet the way it is once they start to taper how quickly they are purchasing so that's not necessarily a bad thing and we're talking well out into the 2014, 2015 year. there's a reason why the market has moved up this far. 1,200 to 1,600 is a big move. pulling back into the 1500s is not exactly, you know, catastrophic for an s&p move. >> the s&p is still up what, 12% so far this year? >> doubled in three years. >> you've had some pretty good profits. isn't it terrible when the patient gets taken out of intensive care it's supposedly a bad thing. my fear is in future weeks and months when we get a good piece of economic data it's going to sell off, that's the day that it's coming a little bit closer. is there any possibility that you see, joe, that we could get good economic news and good reaction to the market? >> let's see, good is good and bad is good. >> i think mandy's question is when is good good again?
>> that's it. >> depending on who is speaking and what they are saying, good should remain good, right, but as long as we have that september date as we near there, all of a sudden bad is going to be good again because people will start wishing. >> that's good. bad is good and good is opportunity, so be a trader and get out there. don't just buy everything and start trading know your sectors and the best in breed and trade around that way. i think that's where people will really make money over the next few months. >> best sect sector right now to buy? >> energy. >> god it. >> just sad that this is the state of our discussion these days. like to get back to companies beating earnings. >> fundamentals, not very sexy. >> fundamentals, balance sheets, oh, my gosh. plastics, joe. new york state has some fighting words fortes la after the car-maker showed a battery swap
yesterday that only takes 90 seconds faster than filling up. phil lebeau is here. quite an impressive display, phil. >> what's interesting is this has the potential to be the kind of technology and service that says a-ha. i do want to buy an electric vehicle, and what we're talking abouted is the possibility of having a new battery swapped in or old one swapped out. they showed how it would work yesterday out in california. tesla says the battery swap is expected to cost $60 to $80. this is going to be offered at super charger stations around the country starting first in california. >> we'll start off on the i-5 corridor in california and the
boston-d.c. route on the east coast, and they will be color coded with the superchargers, so as i said, you'll have a choice of faster at the same price or gasoline or free. >> take a look at shares of tesla. keep in mind that today is came out that there's a bill in the new york legislature that would ban sales of teslas and registrations of tesla in the state, so what's interesting, brian and mandy, in new york, this is the latest state where they are trying to have a dealership and, of course, tesla has sales. it has to be through a dealership. i a long way from it becoming law. >> this is -- listen, my uncle owns a car dealership so i fully respect what the auto dealers are trying to do, protect their turf, but this is the stupidest thing i've ever heard in my
life, and all these states say is you've got to recycle and do this. climate, climate, climate. now you've got a car that's ostensibly all electric and wait, got to be good for the environment and have a dealership and paint all your cars maroon. i mean, what the heck? >> you know why this is, brian. you know why this is. who are among biggest lobbiest and supporters of state lawmakers in terms of their campaigns? it's the auto dealers in part because they have some of the largest employment in different districts and different states, and over the years they have become incredibly powerful. that's why the franchise laws are as strong as they are, and that's what's happening here with these moves to ban tesla. >> just real quick, before we let you go. what's going on with the dreamliner? >> well, they had another flight that was diverted yesterday, and this one was into newark, a flight going from london all the way down to houston. they had to divert 787. not the actual plane that was diverted, united dreamliner and a low oil indication light that
came on. they put it down there. the second time this week that we've seen a dreamliner flight from united diverted. you knows what's interesting, guys? if you run the data in terms of when new aircraft have the flights diverted as other aircr. yet, because of the problems with the dreamliner, this will get attention any time you have a flight that's diverted. >> oh, yeah. >> interesting to see what the statistics are like over the next couple of months. >> that's the media spotlight they do not want. thank you so much, phil. on deck, what do james bond, cape cod and billionaire larry ellison all have in common? >> absolutely nothing. not going to stop us from talking about it, though. see you soon. [ male announcer ] my client gloria
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and we're having fun here on the new york stock exchange, a trifecta of beaches, billionaires, boats. why don't we kick it off with the billionaires, because right about now, they're getting into their jets and heading up to the cape, right? >> earlier, you said beaches. >> beaches everywhere around here. >> cape cod has always been the cheaper cousin to the hamptons, but it's quickly catching up. prices are up, inventory's falling, and 20 million on the
cape is the new 10 million. here's the top listing in martha's vineyard, called herring creek farm. 25 acres perched edgartown great pond. the house is 5,600 square feet. you could build two more houses if you need to. the price tag for that? $19.5 million. the obamas will be staying at the vineyard this year, unclear where they will stay since the compound they used to rent, called blue herron farm, sold for $22 million. the top listing in nantucket is this historic mansion called long hill. it's 7,000 square feet, newly renovated, right in the middle of town, overlooking the harbor. the price tag? 20 million snackaroos. we're talking breaking news today. you heard it here first, bill koch, billionaire investor, selling his cape cod mansion for $15 million. the property is in oyster harbor. it has a renovated interior, state-of-the-art wine cellar, ships room modelled after a
napoleonic frigate, as one does. the perfect home for billionaires who have a love of wine and maybe a napoleon complex. >> bizarre room. okay. let's move on to another bizarre story. ellison, founder of oracle, buys an island, and now has bought a second regional hawaiian airline that flies between the islands. which those things prompt me to ask the very simple question of what the held is he doing? >> what he's up to. here's the answer. he bought, as you mentioned, anotherary line with this personal island in hawaii. ellison is now buying go airline for an undisclosed amount. this follows the $300 million purchase of lanai last year, and the acquisition also included, or he added onto that, island air. so what is larry up to? is he creating his own dr. no fantasy from james bond, or something bigger? ellison has told the media, he's got bigger plans here, to turn lanai into a development model for the world to follow. he's going to rebuild the
tourism base, the new luxury hotel, much better airlines. going to improve the two airlines. and agriculture is his main goal, with plans to export gourmet mangoes, pineapples, other fruit. and he'll use solar energy, and, get this, desalineated water. it's part empire building. >> part creepy? >> maybe. i think it's very cool. >> yeah, yeah, a borderline between mad and eccentric. >> here's the thing. the locals love t the local politicians who are all very wary, says he has done everything right. so hats off to him. >> okay. okay. we're going to go for a quick break. we'll be back. >> don't go anywhere. >> james bond and chinese people buying yachts. good? >> i'll be there. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us.
thank you. that's three new paper shredders. [ boris ] put 'em on my spark card. [ garth ] boris' small business earns 2% cash back on every purchase every day. great businesses deserve unlimited rewards. read back the chicken's testimony, please. "buk, buk, bukka!" [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose 2% cash back or double miles on every purchase every day. told you i'd get half. what's in your wallet? sorry, robert. tell us about the yachts that have been bought by a chinese company. >> thanks. chinese billionaire liked his yacht so much, he bought the company. the owner of dalian wanda group is paying for control of the sun seeker international, the british maker of sports boats and yachts. it's made speedboats for four "james bond" movies.
he is a big "james bond" fan. he hopes to sell more of them in china with the company's aim of tripling sales there over the next five years. yacht experts say this is more about branding. china wants great bands, and sun seeker is one of the best in the class. priced between 20 and -- they bought feretti. -- not as strong as the yacht company sales. >> fantastic stuff. thank you very much, robert. >> okay. >> thank you for watching "street signs." it's dyi tv. this is amateur hour. bye-bye. "closing bell" is next. have a great weekend, everybody. see you monday. hi, everybody. happy fry to you. we enter the final stretch for the week, and what a week it was. >> incredible week. >> right to the closing bell. >> we've had another three, four