tv Street Signs CNBC November 5, 2013 2:00pm-3:01pm EST
been a choppy trading session today. cisco systems up 2.5% on the trading session, cognizant technology up 3.3%, conagra foods up under 3%. >> we'll see you when you get back to inglewood cliffs. that's all for "power lunch." >> "street signs" begins right now. have a great afternoon, everybody. >> riddle us this, do stocks need to go lower in order to go higher. a debate on if a drop would be a good thing. earnings from the hottest company in the world come out tonight. what to expect froms tesla. what ebay is doing that literal may change retailing forever and the twit twitter ipo in perspective, how it stacks up to other companies it s size. >> the markets where the dow has been doing its darn december to come up for air. did wipe up 117-point loss to go
positive at least briefly. currently down by 20 points. the s&p meantime going for its 16th day and 20 sessions and only just points shy of its record intraday high 1775. write it down. the record closing highs a little closer to where we are now and that is 1771. so the markets are cruising at lofty heights, say 40,000 people, has many calling for a pullback but if history tells us anything, the bull party is just going to continue. dominic chu is here to give us a history lesson. run us through some of those numbers. >> it could be smooth flying and the reason why. we went back over the last 50 years and there have only been four other times past this year that we've seen the s&p 500 up at least 20%. you can see here, overall we're talking about big years like 1989, 1995, all of these particular years, that's what's huge. if you take a look at some of these ral his and whether they have been sustainedble, back in 1975 in the first ten months of the year, the s&p 500 was up
right around 23 or so percent. 1995, 30% actually. 19995, 27%. 1997, 23%. and 1989, 23%. all big gains and then in the following two months that becomes huge because in addition to the 30% gain in 1975, the markets tacked on another 1.5% in 1995, another 6 %, and 1997, another 6 % and 19894%. look for a reason to still be bullish with stocks at record highs check this out. over the last 50 years, every single time the s&p has been up at least 20%, in the first ten months, brian, it always finishes higher. back over to you. >> 100% of the time i get nervous when anybody talks about 100% of the time. dom, thank you very much. let's use that as your hot market topic de jour. do stocks need, not have to, but
need to fall or can it be up up and away every day. joining us chris johnson and also boston adviser mike. chris, thank you. you reached out to us and said brian, love the show, but come on guys. we need to -- i sound like chris carter, come on, man. we need to go down for a second, right, or a couple weeks or days or whatever it is? why do you say need? >> well, you look at some of the sentiment reads out there, right now, brian, they're just to use the term we've heard so many times over the last week, bubbly. one of the things that struck us last week was investors intelligence polls came out, the number of bulls compared to bears, was greater than three. that doesn't happen too often. last three or four times it's happened the market has come down. it's just that sign that when, you know, everything is too good to be true or when everybody is buying, it's time to step back and say do i want to be the last one in? we don't think the market is going to take a big correction. >> cut you off just for a
second. we also hear technically never fight the tape. >> sure. sure. absolutely. and right now, in terms of an intermediate term trend when i look at my monthly charts, weekly charts, i absolutely agree. i think the year end is going to be good. look at november, december, you got 65% of the time the market is up in november, 85%, brian, or 85% of the time the market is up in december. this is the sweet spot for seasonality. i just think it can get better if we saw a nice 5% pullback, that healthy correction for stocks right now. people like to buy values. when you look at sentiment like the investors intelligence polls, the vix around 13, even a couple weeks ago, baron's, with the bull treat, you know, and you have the bear with the pumpkin over his head, historically these are signs that when we look back at it, you say, it's not always the best time to be running with the tape or crowd. give us a little correction here.
we're long-term bulls, we just want to see a little more value in this market. >> mike, do you agree we need a 5% or so pause that refreshes? >> well, it seems like that's a little too fine fine a point to put on it. there are a couple -- first let me agree with chris here. clearly sentiments too high, too many ipos coming out. there's sort of the market sort of overbought from that perspective and it wouldn't -- i'm not saying we need it. it wouldn't surprise us if, you know, a little bad news here comes in and we get a little pullback. the point is there's really positive dynamics here. you have a ticked off a few of them. the first is we've had a really strong decent earnings season generally beating estimates acro the board. you can almost say we have an acceleration in earnings growth which is powerful. secondly, great federal reserve policy. the fed is going to be on pause for a while. you know, janet yellen is not going to come in with guns blazing day one. we have a while before we have to worry about tapering. >> to that point. >> i think fwhaerp decent shape. >> i'm sorry? >> you said you wouldn't be
surprised if we got bad news that gives us a little correction. could i counter that with maybe it would be good news that gives us a correction because if we see good news on the economic front, that will potentially bring the taper timetable forward, ie to maybe december as opposed to next year? >> yeah. that's the problem. you do have this sort of circular logic of good news is bad news for the market. we've been living with that for a couple years now. there's no question that can happen. our biggest worry frankly in the market today is that the fed bungles the tapering. right. we know they have to get the patient off of the oxycodone. no question we have to bleed this stuff away from the markets. but if the fed bungles the management of that, you can have a real big problem. and i don't think there's much likelihood but that's a worry for us. >> wow. boy, i tell you what, chris, i don't -- how do you explain that to clients? i understand mandy's point and what everybody is saying, bad news is good news because good news is bad news, but maybe good news is actually good news
because if it's not bad enough to be bad then it's just bad enough to be slightly good. if you followed that -- >> i'm backwards now, spinning me around here. >> this is the world we live in now, right? go to this point -- go to mike's point the fed. bungled it in 27, in 33, many times in the interim and they bungled it in the late 90s keeping interest rates too low for too long. >> ironically, i think the fed just got some credibility a month and a half ago when they held off because they were looking ahead of the market saying we think the government government shutdown could cause some issues here and i think people are looking at that and saying, maybe the fed is a little wiser because everybody was calling them to the mat when we saw them hold off on the tapering. when you look at the macro picture, mike made a great point, earnings are a carbon copy of what we saw last quarter. companies aren't really blasting it out in terms of expectations. they're beating, but they're not beating by a wide margins. you're seeing about the same beat percent as you did last quarter.
both on top line and bottom line. there's nothing really surprising out there in earnings. but let's go back to your question there, brian. good news could be bad news. i think right now, if -- as earnings season winds down, and investors look towards the year end, and maybe you have, you know, a miss friday on the employment number or something like that happens, that sell the news mentality will kick in and that's where the good news becomes bad for the market over the short term. people want to look in those profits. people don't want to let ta go by the wayside. that could cause that pullback in stocks. the reason i look at 5% is, there's a trend line that goes back to december of 2010 right now in the market that we've been following to get back to those technicals. 5% would bring us to the bottom rail which is where we've seen the market gain support that would be around 1680 or so. so look at round number support from 1700 as well and that's a good point where people look and say i want to buy stocks and again 85% of the time, december
is positive. >> mike, one word answer, sounds like you would agree we could get a short-term pullback? >> sure. the market's been consolidating since almost mid may. only about 5% higher than mid may's point right now. not as extended as people make it seem to be. i think we're going to go higher. >> that was the longest one word i've ever heard. i want to go back to the good old days when good news was good news. thank you for joining us. >> nine minutes into the show. i'm already confused and need a drink. that's got to be a record. still ahead, point click and one hour later, it's at your doorstep. how ebay may have dropped a game changer on retail. >> twitter a $40 stock, $50, one of the guests think it's around 40. defend his case ahead and three most important things to watch froms tesla, reporting tonight. the american dream is of a better future,
welcome back. we would like to update on the mall shooting that happened last night in new jersey. scott cohen is at the garden state plaza. scott? >> mandy, bit of a pattern here, of course, we has the mall siege in kenya in september, the shooting last week of an unarmed tsa guard at l.a.x. airport, and now this reminder of the is vulnerability of our public spaces. a gunman walks into a crowded shopping mall on a monday night
just before closing time with a loaded rifle, managed to get off five or six rounds before eventually killing himself but it took some six hours for authorities to finally find the body of 20-year-old richard shoop who was apparently here to do just that, commit suicide. there was a note that was found in his home in a nearby suburb. but still, people aren't exactly sure what possessed him to do this. his brother spoke to reporters just a short time ago. >> my brother, this was a sporadic act. this was something that none of us saw coming. we're not sure exactly what caused him to do this and i mean we're all devastated. >> garden state plaza is owned by the westfield group which also happens to own the mall in kenya that was attacked in september. they expressed sorrow over this incident and said clearly yesterday's event heightens everyone's state of awareness and concern. our security precautions reflect that heightened state and even
as authorities comb the scene and process what is still a crime scene with the mall closed there is a review of the security procedures going on and that review is going on at malls everywhere. mall of america issuing a statement today talking about its security procedures and pointing out mall of america conducts monthly lockdown drills with tenants to be prepared for emergency situations and we will continue to follow the situation. but as if to underscore just how on edge all of us are, lodi, new jersey, high school was on lockdown for a little less than an hour and unfounded report of a gunman in that building. clearly this whole issue of soft targets, public places now back front and center as we all begin to reevaluate things. guys? >> awful. thank you very much. appreciate it. well, by now viewers you know our friend and contributor john rogers negativen, former department store executive but part of his duties when doing that he helped oversee securities at stores.
talk more about the scary situation last night at the mall about it ten miles from here, first off, let's leave all the politics and stuff out of it, gun debate, whatever it might be, okay, because we're cnbc, so let's focus on that. are people going to stay out of the stores now? is this going to a lasting effect on the way people think going into the most important period of the year for the retailers? >> i was a little concerned the event in nairobi might because it was so horrific and got so much television coverage. this event won't. s there he's been eight mall shootings i can remember since 2005. the worst in omaha in '07, nine people died including the gooman. didn't change that mall's business, much less the mall's business nationwide. this won't change that. something may eventually but we have not seen anything so far that's happened in the malls that has not caused people to shop in the malls. the malls are in danger from things like amazon, from demographic changes, we are not seeing it on a security basis. we live in a soft society. it's not just the malls.
it's every target, every walmart, every best buy, movie theater. we don't have security. >> the knee-jerk reaction, questions like do we need metal dedeck tors at mall, scanners, through our clothes and detect guns but then we turn into an airplane, massive lines outside the mall, that would be off putting for the mall shoppings es persons, wouldn't it? >> it's not going to happen unless there's something much more horrific than what we've seen so far because there are too many reasons not to go to the mall now. there's off mall locations, there's off price guys and there's on-line shopping. the malls can't afford to have people not want to come there or see it as an armed camp. >> and we're going to talk about something ebay is doing later in the show but focus on this for now. the point is a good one. if i can sit home and get stuff delivered freely or cheaply quickly and don't have to get in my car, burn gas and risk some of this garbage, right, that's a win for an amazon and ebay and
others? and a bad blow to mall operators. >> give you an example i orderd a computer, in shanghai on friday, at my house yesterday. i order from fresh direct almost three times a week i guess, i compared my bill to an a&p store. it was 4% cheaper, not 4% more expensive. >> left with a bunch of abandoned strip malls in america with half empty shops or half the shops empty. pave the world and have everybody ordering from an amazon distribution center? >> not just amazon but we are about to see an enormous reduction in the need for square footage. cnd malls will be in trouble, poorly designed strip centers, power centers will be in big trouble. we're going to see macy's distributing out 800 stores, walmart out of 3,000 stores, use them as catalog show rooms, amazon will do big business. a lot less storefronts five years from now. >> as brian said we're going to talk about how ebay is speeding up that process. that is later in the show.
thank you, as always, for joining us today. coming up next, tesla's big number, what investors need to hear and want to hear when the carmaker reports after the bell. >> here's a trivia question for you. what do rich uncle penny bags and mr. softy have in common? pass go if you know the answer. we know it and we have it after the break. weekdays are for rising to the challenge. they're the days to take care of business. when possibilities become reality. with centurylink as your trusted partner, our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. every day of the week. centurylink® your link to what's next. i'm bethand i'm michelle. and we own the paper cottage. it's a stationery and gifts store.
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talk about a long drive. tiger woods hitting a golf ball from europe to asia. if you're on the radio he did this by hitting it over the bridge in istanbul. it's the bridge that separates the two continents, right. a bit of a publicity stunt for the turkish airlines world golf final this week. it worked because we're showing it an talking about it. kudos to turn i airlines. tesla shares moving lower ahead of their quarterly earnings release. to phil lebeau from what we can expect from this market darling, phil? >> i think the three things that people need to focus on are deliveries, margins and maults italy what happens with production. let's start first off with deliveries. the key number to the model s,
5700 vehicle. if it's above that people will be excited. closer to 52 or 5,000 people will be a bit disappointed. gross margins expected to come in between 16 and 20% and the 21,000 for the production rate, the current production rate for this year, many believe that tesla may raise that to maybe 22 or 23,000. officially, the estimate from wall street is that tesla will earn 11 cents a share for the third quarter with revenue coming in around $553 million. but the wild card in all of this is what ceo elon musk says during the conference call. for example, is he going to talk about sales in china. will they begin by the end of this year as many are anticipating. what's he going to say about the model x or third generation vehicle. the conference call is almost more interesting than the numbers that are going to come out after the bell. take a look at shares of tesla over the last three months. it's pulled back a bit you would say since the beginning of october but almost everybody agrees you have a stock here at
17633, hard to say that there's a whole lot of upside there but you can bet if they blow by everybody's estimates you're going to see a lot of enthusiasm fors this stock. >> do not disappoint. that is the message to musk. never been called darling. mandy said talk about the market, darling. i saw where the comma is. results of the ypos reveal that executive confidence in the u.s. has dropped actually to its lowest level in a year. ypo the young president's organization, exclusive cnbc partner with 20,000 executives worldwide. who together generate $6 trillion in annual revenue. washington infighting what else, to blame for bringing america down to the same confidence levels as the rest of the world. africa still the world's most optimistic region. but here's a surprise. australia and new zealand for the first time surpassed asia. why wouldn't they in the middle of the greatest housing bubble in the history of human kind. ypo.cnbc.com. >> i think you've been
predicting that for decades. one day, my dear, you will be right. as all are. >> i have not predicted a housing market bubble. i predicted a china bubble which will bring australia down with it. >> i don't dispute that. coming up next -- >> got to be -- >> the twitter ipo in the 23 to $25 range. your next guest is doubling down on that price and he has to defend that call ahead. >> and ebay launching a one hour delivery service. it could be a total game changer in retail. but how in the world do they actually pull it off? we'll talk about it coming up. [ male announcer ] what if a small company became big business overnight? ♪
audience metrics. >> itunes raid no not slamming pandora yet. i thought it would. listener hours rose 18% year over year, 1.47 billion hours listened to. stock up 188% this year. >> and we've got kirks pharmaceuticals hitting 52-week highs after posting positive trial results. >> keryx. biotech meeting what they call their main goals of mid stage trials. in a battle against chronic kidney disease. the drug called zerinax. if you own the stock, circle june 7th. hot stock up more than 400% just this year. >> of course there are some that kind of a sector is in a bubble. endo health solutions getting a new 5-week high, announced plans to buy pelden labs. >> generally buying stocks, stocks of the purchaser tend to fall but it also had big time
earnings. pay 1.6 billion for palladin. they raised their guidance for the year. up 110%. buy another company, stocks soaring, earnings and revenue good. >> gt advanced technology, particularly under the radar but nonetheless soaring as we can see on the board. 18% on apple news. >> first time we've talked about a new hampshire company. really interesting. they do what they call crystal growth technologies. had no idea what that is. here's the thing, soaring because they have a material made of sapphires that will go in apple's fingerprint reader. multi-year deal. hire a bunch of workers at an arizona factory. stock up over the past year. i didn't know they used crystal for part of the fingerprint display. learn something new every day in this job. gt advanced technologies. >> another former darling of technology is -- >> now a darling of technology once again. >> yeah. >> aol. they keep powering higher.
earnings are beating. listen to what ceo tim armstrong told cnbc this morning. >> our results today essentially are improvements across the entire board for aol. advertising revenue lines, consumer traffic and then the real technology stack behind the where the company is going. we're excited about the results today. >> let's talk some numbers as we do again every day at this time on aol and technicals, rich ross, on the fundamentals andy bush. andy, i'm going to throw a numbers at you because my question is going to be, what is aol, but check this out, did you know that aol still has 2.5 million dialup subscribers paying an average of 20 bucks a month? >> nice. nice. well, i tell you what else they have, they have a successful advertising segment that tim arm strong, his big acquisition and hitting the cover off the ball. their earnings surprised to the upside once again with the $6
million charge that they had, they beat by about 8%. the stock is up about 8%. so their strategy moving forward looks really good. especially when you get google's big honcho that came over, tim arm strong, his first big strategy was to buy adapt tv. this is an entity that matches buyers and sellers of advertising and it's working really well. so hats off to him. we always look for accelerated earnings and new stories and information and aol has it. >> and we have the dialup tone going on in the background. dialing up on the charts as well, rich? >> i'm going to temper the enthusiasm a little bit here. when this company merged with time warner back in 2000, we were talking about a $350 billion company. the chart that you're going to see if front of you today, this is a $3 billion company. and in fact, this year, last quarter alone, they actually made more in revenues from the dialup subscribers than on that advertising and content side. so let's keep a little reality
check here. when we look at the chart we had the explosive move last year, unlike most technology stocks which had that type of move this year. a 330% gain from the 2011 load to the 2012 high. we settle into a 12-month trading range as the stock tries to decide which way the tradeable move is going. i would not be a buyer into the key resistance. we failed here miserably before. i would like the stock more if we were able to break out to the upside of that range. in here i'm not chasing this stock. we're up 30% in just the last three weeks alone. >> he is technically concerned. rich ross, thank you very much. andy bush, thank you. great job by our staff. with the sound effects. all right. the twitter ipo price range boosted 23 to 25 bucks a share. your next guest thinks that could be the beginning. joining us now, crt capital kneale dough she, initiated coverage on twitter with a buy $40 price target.
feet to fire here, why 40 bucks, how did you get there? >> all right. we think twitter could be one of the most interesting ipos in the long time. you know, the company has $232 million monthly active users. growth from revenue has been over 100% over the last three quarters and we're just scratching the surface. we get to $40 by 85 times our 2013 of $283 million and we think our numbers are conservative. we're telling investors to buy up to 40, hang on from 40 to 50 and if it gets to 50 maybe it's time to take money off the table. >> the company isn't even profitable, kneale. you basically are buying a promise. buying a promise of future growth. isn't that sticking your head out a little? >> fair enough. on an eps basis they're not profitable but on e bit they are. they have about 6% margins so far. they've shown as much as 16% in the past. they are investing in the business, in international sales force. we think that could drive revenues higher next year.
>> they made some comparison, stock stays at 25 bucks when it goes public, based on the flow and private slars, a market cap of 14 billion. even at 25 it's about $14 billion. that's about the same as marriott which has 600 some million and the same as coach which does $5 billion in sales and has a billion dollars in earnings. i understand you're buying future growth but what future? where my grandchildren are now floating around the universe? >> sure. i'm not a hotel analyst but -- >> i'm making the comparison about big, quote, real companies, no insult to twitter, that have a lot of earnings that will have the same valuation if not less. >> sure. i think ultimately what you are buying is growth. we look at companies like yelp, like netflix, these companies are, you know, 10, $20 billion. linkedin has a $26 billion valuation. similar user base number of 230,
250 million users. you are buying an opportunity for mass amounts of growth. no other company in our sectors has a growth of over 100% over the next three years. twitter does. >> and, of course, you did say it was buried in there, if the stock trade above 50 bucks that would be a sell. thank you so much for joining us today. >> thank you. >> what do pepsi and general mills have in common? they make food and spending millions to defeat what could be the first law in the nation mandating labels for genetically modified foods. both side of a controversial debate later on. >> the most beautiful bubble ever. maybe. but first, let's send it over to bill griffeth. what are you painting up in closing bell? >> clen plenty. media stocks red hot. bank of america's top media analyst says some stocks in that group are still cheap and she'll name some names for us and b of a ceo brian moynihan reacts exclusively to the mortgage
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take a look at oil. down a percent which is about 1.18 because when you're near 100 a dollar move is near a percent. five month low, oil down more than 3% on the session at 93.45. gas is -- they're giving it away. >> they are. >> drinking gasoline. >> why not. don't light any matches. earlier on in the show we asked what uncle penny bags and mr. softy had in common? here you go. on this day in 1935, parker brothers introduced the board game monopoly. since then more than 6 billion little green houses have been created for more than 275 million games. and i ropically enough on this same day in 1999 in a historic anti-trust case a judge ruled microsoft was a monopoly.
even though they've been making quite the comeback this year, it's down over 20% since then. let's bring in john fortt to talk microsoft and john, first off, i just need to let everybody know you are an east coast guy. >> i am. >> congratulations. >> permanent resident of the east coast. >> thanks. >> it's going to be awesome to have you here. >> it's going to be great to be here. i was born out here. >> so -- >> so are you a jersey guy? >> long island where i was born. >> my apologies. >> brooklyn until i was 8 1/2. >> welcome. >> you are the new younger and more handsome herb greenberg want to they that out to you. >> i don't know how herb feels about that. >> we'll find out. hopefully he's watching. in 1999 some of the was about a $20 billion year company, now it's close to $80 billion a year company. microsoft, your reporting of long history in technology, most underestimated company of all time? everyone hates them, but they print money. >> the hate is fading because the fear has long faded. i mean, to talk about monopoly
power, we could feel it back in 1999 but now you look at pcs, you don't know what a pc is. tablet, smartphone, they've got nowhere near monopoly power. it's a question of how much pour they have in the client pc space. but microsoft does still have a lot going for it. a lot of that is in business software. that's why there are some people who want them to spin off the consumer business altogether and focus on that. but they don't really have monopoly power in either of those places. >> this one, this is our favorite story of the day, ebay recently launching a new delivery service and forget overnight shipping, forget whatever, we're talking about one hour shipping. how is that possible? before we get your comment, let's listen to nbc's janet shamlin to explain it all. >> if you're an on-line shopper and you've got to have it now. a new service from ebay could be the answer to your prayers. ebay is now promising delivery
in an hour. one hour. for just 5 bucks. >> safety first. >> with the clock ticking ebay valet takes to the street. and we tagged along. >> how much time do we have to get to bloomingdale's? how long will it take? >> we have about an hour. we need to speed it up too. >> for this order our valet had to find toiletries at a department store. >> all right. sweet. >> then back on his bike and into traffic to meet the customer. here he goes. so you can sign here. >> i didn't have time to run and buy toiletries and things like that. i'm at work and i work long hours, so it was really kind of an easy fix. >> have you ever been hit? >> i have, actually. >> oh. >> yeah. tough one. >> for a company best known as an auction site, this is different. ebay now. >> the ebay now app a challenge to other giants offering same day delivery like amazon and walmart. the company hopes it's a game
changer for holiday shoppers. >> with the knowledge that you can get something in an hour, or in a day, and know that you're going to get it, the shopping window gets closer and closer to the actual holiday. >> this service is available in just a few cities right now, but ebay is going to be rolling it out all over the country. next stop, dallas. as many as 25 cities by the end of next year. and a bargain, $5 covers just about anything. >> what's the largest item that you've ever delivered in that backpack? >> i think i've taken shelby like a big shelf. >> a shelf. a wooded shelf. >> the ground war for speedy delivery as the battle for your holiday dollar heats up. >> hey. >> janet shamlin, nbc news, new york. >> wow. pretty cool stuff there. pretty interesting technology and only -- you said five bucks? >> yeah. but i tell you, what's old is new again. i'm old enough to remember
cosmo.com back in the late '90s, early 2000s this model, local delivery for -- >> you played with fluze, the whoopi goldberg currency. >> the idea wasn't terrible. the chief technology of that founded max delivery.com that's still running in new york. what's interesting is that this time you got a big company like ebay, trying to make this take off. they bought a company, european couple called shuttle that does this. trying to expand as many as two dozen cities within a few months. the model could be different this time because local information is so precious so maybe there's more in it for them than trying to make money on the delivery. >> one more nail in the coffin of the males. talking about this earlier. then amazon and another company and no reason to hit the malls. leave it there. >> welcome, buddy. still ahead what could be the single biggest art find of all time. an unbelievable story from germany. you've got to hear it. >> jane wells is live in seattle for a really big battle over
it is election day across america, but in washington state, there is one controversial ballot initiative that really got our attention. jane wells is in seattle with the story. jane, hit us up. >> mandy, seattle and washington was the first state to label farmed seafood versus wild and with i 52 being voted on today could be the first state in the nation to force labeling of some but not all foods including genetically modified ingredients after the airwaves have been inundated in a record-breaking $30 million battle by both sides. >> i believe people have a right to know what's in their food. >> it's simple and it won't cost you a dime. >> not a dime. >> we have a right to know if our food has been genetically engineered. yes on 522. >> in a rare show of agreement major daily newspapers throughout washington urge no on 522. >> 522 would require a whole separate labeling system just for our state.
that would be unfair and costly for washington farmers, consumers and taxpayers. >> now, opponents include all the major food manufacturers, outspending supporters three to one, claiming there's no proven harm in gmo and the added cost of compliance would add hundreds to grocery bills. the measure also has complicated and unnecessary labeling regulations and will give misleading information to consumers. most products would be exempt from labels. genetically engineered meat currently not being sold to consumers, would be labeled but meat from animals fed genetically engineered feed would not. 522 supporters trudie of pcc natural markets explains why. >> nowhere in the world when this was filed not one country in the world required labelling for genetically engineered livestock feed. when you eat a corn clip or i eat a corn chip that's genetically engineered we are
not genetically engineered. >> supporters. they say there's no evidence in countries with gmo labeling raises prices. the topic will come up tomorrow. washington's attorney general is suing the no sign 522 is it provides inaccurate, incomplete and inconsistent information. and all that ends up doing is
confusing consumers and providing them misleading information. it's why our coalition has come together to urge a no vote on this costly and necessary labeling requirement. >> i'm going to push back for two seconds. if you could make sure it was not misleading information, acc you be for it? >> the co-lags came together to defeat this costly measure. i will say that everybody in the coalition does agree, labels have to be accurate and reliable. in order to be useful. otherwise they don't provide us any useful information. under initiative 522, 70% of the food sold in state of washington is exempt. 20% of food that contains ge get special emphasis so it's misleading. >> genetically modified is a huge definition, right? pretty much everything is genetically modified at this point in some way. an aversion to pesticides or
whatever. make the case for it. >> in this case, we're talking about genetically engineered, where genes are forced into the dna. you have virus genes and bacteria genes forced into soybeans and corn. there are thousands of doctors across the united states that tell their patients avoid eating gmos because they'll make you sick. scientists around the world saying lab animals when fed gmos get sick, and 60 countries ban gmos outright or require labeling. when they required labels, prices did not go up by one penny. the companies trying to stop i-522 do not want you to know they're using gmos because they don't want anyone to be concerned about the ingredients. they are of concern and people around the world are concerned. >> it depends on who you talk to. there are some scientific and medical bodies that say gmos do no harm. my point would be, why not give
consumers the choice. if it's labeled, then people can make -- they can do their own research, whether it's going to do them harm or make their own choice. in this day and age it feels like we should be given as much information as possible to make our own decisions. >> that's where 522 fails consumers because it doesn't provide that information. first of all, when you exempt 70% of the food sold in the state of washington, now we're talking about 30% sold to consumers. of that 30% of food, many of those will be mislabeled under 522. it would require some food products like sugar or corn oils which contain no ge in them, even if they came from a ge plant, they would have to be labeled saying they do contain ge. other products like cheese and cheese products which do contain ge but they get a special exemption. they wouldn't be label. that's where it provides inaccurate and incomplete information to consumers. >> i guess, jeffrey, listen, on the cost side, there's talk about whether this is going to -- listen, americans spend less on food by 50% than any
other country in the world. americans have no food cost issues. so, i'm going to take that off the table, according to the world bank. to mandy's point, why unnegsly alarm people? if we don't know what that means, why are we going to raise this level of alarm like, oh, my gosh, i can't eat anything. calorie counts haven't changed the way we consume food so who knows if labeling will work. >> we don't want to treat consumers like idiots. we want to give them information. we want to to give them information to entrust them to make decisions for themselves. we want mothers to know if their infant formula contains gmos when there's a doctors organization in the united states that says, don't feed your infant genetically modified instant formula. we want people to know for people who have allergies if they're eating genetically modified corn which may
containcontain allergins. we shouldn't be asked to simply trust companies like monsanto that make most of the gmos. they told us to trust agent orange -- >> no, no, no, back up off that because, jeffrey, that's another debate. i hear you. i'm not going to let you go down that road. i will say, you could make an argument for the world starving to death unless we do something. there has to be middle ground. dana, don't highlight the cost issue. americans spend 6% of disposal income on food. that's the lowest by 50%. i'm going to wag my finger at both of on you that one. >> the cost issue is real for washington consumers, though. that's a real issue. >> no, no, we're not -- listen, we'll get you guys back on. it's a fair debate here. dana and jeffrey, thank you both. thank you. >> thank you for your time. >> thank you. >> you know, it's a supermarkets and stuff. they talk about the cost issue. the reality is smernz spend hardly nothing on food, according to the world bank. that's world bank and it's not us. coming up next, art goes pop, literally.
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the ocean gets warmer. the peruvian anchovy harvest suffers. it raises the price of fishmeal, cattle feed and beef. bny mellon turns insights like these into powerful investment strategies. for a university endowment. it funds a marine biologist... who studies the peruvian anchovy. invested in the world. bny mellon. hear that? it's not the gold fish. it could be the art bubble bursting. robert frank, does not sound good. >> no, that was my stomach. >> thought that was something else. >> christie's racked up $92
million in sales, less than half of those early top-end estimates. more than a third of the 62 lots failed to sell for minimum price. some say this is a sign that froth in art market may be winding down. dealers say this is a one-off that doesn't affect next week's much bigger sales. some bright spots from last night, portrait of picasso's two kids went by $28 million. the chess board by duchant was $2 .5 million. and my favorite, picasso's cigar, a piece of wood painted like cigar went for $1 million after a fierce bidding war. there's more details emerging from the big find in munich of
art alluded by nazis, more than 1400 paintings valued at more than $1 billion, with paintings, c chagal, matisse, picasso, stolen art. they have to find out -- >> give it back to the owners. >> yes. >> thanks, robert frank. >> thank you for watching "street signs," everybody. hi, everybody. good afternoon. welcome to the "closing bell." i'm maria bartiromo. coming to you live from bank of america. >> we're watching a market that started the day pretty sharply lower. down about 80 points on the dow but a report out that says the fed could be keeping interest rates lower for a lot longer than anybody thought. brought us off those lows. you may have heard, there is some fed economists who have