Skip to main content

tv   Power Lunch  CNBC  January 2, 2014 1:00pm-2:01pm EST

1:00 pm
week, cypress semiconductor. >> welcome to my world, joe. target long. i think momentum keeps going and that the online activity is going to be very strong. >> you were a buyer in the wake of bad news? >> i was buyer on the print on the bad news. >> doc, quickly. >> yge, yuengling green energy, judge, buying that one trade. >> have a great rest of the day. "power lunch" starts right now. >> "halftime" is over. "power lunch" and the second half of the trading day start right now. >> and welcome, everybody, to the first "power lunch" of 2014. so far not a very good start for the bulls after a big year in the dow. the s&p, the nasdaq and the russell all sporting rather gaudy declines here. about .75% for the dow and roughly the same for the nasdaq composite. this as a major snowstorm dumped snow from the great lakes to the eastern seaboard. it's going to be a rough night and a tougher morning tomorrow. and stop the music, please! >> on the first trading day of
1:01 pm
2014, let there be cramer! >> jim, welcome. happy new year. >> happy new year to you, my friend. >> you have a new book to talk about. we'll rejoin you, get thoughts about the year just ahead. jim cramer, the wise man cramer is going to be here and tell us how to get rich carefully. >> carefully. >> that is the title of the new book. first, sue, check in from the nyse. >> hi, ty. it's kind of a tough session right here at the nyse. jim's going to weigh in on that in just a second. let's set the stage for you. right now the dow is off of its lows, but we still have a tri e triple-digit decline following last year's 23% run to the upside. the s&p starting 2014 on the down side as well by almost a full percent, or almost 16 points after a 25% jump last year. and after rising 33% in 2013, the nasdaq starts the new year under some pressure as well, down 34 points. the russell, the broader-based
1:02 pm
index which a lot of people are watching, right now down better than a point, better than a percent, rather, and one-third. in 2013, it posted a 32% jump. the volatility index has been up today. it's up about 4% right now. that's off of the best levels of the trading session as traders try and hedge their bets in this market. the ten-year, the yield once again bumping up against that 3% mark. right now the yield is at 2.992%. and the cnbc data team telling us the dow has jumped, on average, more than 1% in the first five days of the last three years. 0.84% in 2011. 1.17% in 2012 and 1.71% last year. so on that note, let's bring jim in to really weigh in on all of this. and as we celebrate the first trading day of 2014, what do you do in this market right now, jim? and are you surprised that we're
1:03 pm
down triple didngits? >> happy new year. >> you, too, my dear. >> i think we're jittery. i see three years where there was selling and so therefore people are trying to get invested. i see three years where there was a lot of tax loss selling against winners. and geez, the dow up 30, s&p up more than that. so i think what happens is is that people say you know what? i'm going to ring the register. it's all too good to be true, and that's people's opportunity at home. >> you know, jim, we're going to hear inevitably over the next few days the first -- if the first day of the trading year is a bad day, it's going to be trouble. if it's the first week is down, it's going to be trouble. if it's up, it's this. do you put any stock in that kind of numerology? >> the only one that worked that i saw was if you come into november and the market's up big, november tends to be good in december comes out to be good. you know, all of these sell in may and if the month is not good, another month -- they don't work. >> right. >> individual stocks. this is a stock picker's environment. you want to go that route? you want to be that crazy risk
1:04 pm
on -- go work at a hedge fund. go work at a hedge fund. does no good for the people at home. >> speaking of the people at home, a lot of the retail investors either got into last year's market very late or were afraid that they had missed most of the run and they were afraid of a pullback. so if you missed most of what was gained in 2013, what do you do now in the new year? >> it's a great question, sue, because i know a lot of people did. there are segments that really just didn't participate. the banks. they frankly were a disappointment for most people. i also feel that there's a lot of biotech that paused. a lot of stocks paused in the last two months as we had a gigantic cyclical rally. but you no he what? i think the cyclicals are still inexpensive. and when rates go up, that's a sign that business is better. so i think a lot of our international companies that are involved with construction and building, they're winners, not losers! i like them. >> when you say cyclical, what do you mean? you just mentioned a couple. >> let's talk about 3m down
1:05 pm
today, united technologies. these had a nice run at year end. a lot of people said i missed it. wait a second. the stuff i'm writing about, that is when these things happen, this is when you can say you know what? maybe i didn't miss it. maybe there's opportunity. i think that 2014, we've got to change the mindset. the mindset is with when the market goes down, you find what you like and you sink your teeth into it as opposed to saying oh, i missed it. and now it's going to keep going down. you've got to start buying. >> you -- >> carefully. >> carefully. >> carefully. that's the beauty of your books, jim, is you make these complicated things very accessible. >> i try to do that. >> i'm telling you, i've read probably all of them. there's so many of them. they're really good. i was talking last night, sue, with my 20-year-old, and he said i want to learn about how to get into stocks. i said -- he said, how do you do it? i said, i would say follow the old peter lynch thought. if there's a good product that
1:06 pm
you patronize, that you like, start there. i said, so, you watch netflix. you eat chipotle. those are two stocks that have run a lot. he said, i feel like i probably missed it. has he? >> i think in the case of netflix, you do get these periodic, hideous declines. there you've got to be ready. chipotle, too. chipotle was down 100 points in one day, peak to drop. that one day, and it turned out to be it wasn't even a buying opportunity. it had another leg down. but if you bought a little the first one and then you sunk your teeth into chipotle, you really had something. so i think your son is right. now, one of the things i do in this book -- and you're not supposed to say in this book -- i go into goldman sachs the first day and i say, guys, how does a stock go from 9 to 10? the guy says, you want me to move it? i'll watch as he buys. i talk about supply and demand. i think we both understand it's supply and demand. and we have had a giant amount of supply taken out because of the buybacks. so you actually have these stock shortages of a stock like home
1:07 pm
depot. take a look at how much stock that's bought back of the listing shares. a big buyer comes into home depot, he moves it from 9 to 10 so to speak. >> sue? >> jim, as we go into this new year, the fed still looms large. does the fed matter as much in 2014 as it did in 2013, and how would you play it? >> do we care about life support when the patient's already in rehab? do we worry about that? do we say when the person is out there doing some occupational therapy, well, wait a second. he was on life support. what we do is we salute it and we say, listen, they're coming back. and do not look back and say oh, no. the only reason it's there is because of life support. no. sometimes the patient gets better. and when the patient gets better, you can credit the doctor. and the doctor was bernanke. and he did a good job. there was no malpractice there. he did a good job. >> so you think the economy is getting better, stronger 2014 than 2013? >> when i see the ten had of year go up to 3, i don't say it's the end of the world. i say, wow!
1:08 pm
maybe someone's borrowing again! when you go to these big banks. u.s. bank. downgraded today. i look back and say, all right, what was behind that downgrade? what was behind that downgrade, it went up a little. we remember the days -- a bank like u.s. bank, it could go up each quarter! you don't abandon it. one of the things i'm really focused on for 2014, let's sell it! think how many times you would have sold 3m, think about boeing. ethiopian air, everybody decided jim mcnernny didn't know what he was doing. turned out to be a fire unrelated to boeing. the stock goes from 107 to 103. those who are of the faint of the heart and do no homework, you'll be shaken out. shame on you! >> what's on "mad own"? what are you doing tonight and how are the eagles going to do? >> two fabulous questions.
1:09 pm
i'm going over the 30 dow stocks, telling you exactly where i think they can trade this year. the eagles, what can i say? this weather -- >> favors the eagles. >> -- is the 12th man for us. >> happy new year. good to see you. >> happy new year. >> happy new year, jim. >> happy new year, sue. great to talk to you. >> he signed it. >> same as sue. pull forward here. it's january 2nd. most of us yent haven't had a chance to break their new year's resolutions. today we're going to compare dominic's stocks. dominic, virtue precedes vice. >> it's always interesting because cramer just talked about the idea it's a stock picker's environment. we thought new year's resolutions, it's a chance for us to do things a little better. and a couple of the big themes always center around diet and fitness and always center around maybe kind of getting things more better for your improvement -- your education side of things. so we looked at all these health and wellness-type stocks. take a look because we went over the last three januarys.
1:10 pm
check out the average january return of weight watchers, town sports international and dick's sporting goods, up 15%, 7% and 4% just in january alone over the last three years. now, here's the question. do they continue for the full year or fall by the wayside like my diet and my exercise regiment? well, check this out. over the last full year over the last three years, these stocks do pretty decently as well. if you look at weight watchers, up around 2%. so it gives back some of those gains. town sports interpret, s inter 55% over the last three years. dick's sporting goods where you buy all that gear, up 16%. and self-improvement, do you want rosetta stone, learn a new lang age, go to apollo, university of phoenix, those stocks a little more mixed. there's not a real theme here. investability wise, take a look over the full year. it becomes even murkier, still flattish there. so if you're looking for a theme, the weight and exercise thing might be a little bit more compelling than, say, self-improvement. >> obviously these are points of entry as jim would emphasize.
1:11 pm
you've got to go down your own homework. >> stock picker's market. >> let's turn to vice. take it away, morgan. >> vice. tanks, ti thanks, tyler. i'm going to take the bad influence side of things, unlike dominic. i'm going for the booze, cigarettes, slots and french fries, so-called sin stocks, alcohol, tobacco, fast food and gaming companies have overall outperformed the s&p 500 for the past decade. when the economy's been bad, they've done even better. these purveyors of vice do seem to suffer post-holiday hangovers. so what do i mean by that? on the flip side of what dom says, we crunched the numbers and found that with the exception of gaming companies, nearly every major sin stock takes a hit in the month of january. on average, underperforming the s&p 500 for the past three years, even the past five years. so take a look at some of the biggest names in tobacco, altria, reynolds and philip morris all dropping in january over the last three years before rallying and beating the s&p
1:12 pm
later on. check out booze. cans like brown foreman, constellation brands, even anheuser-busch, all following a similar seasonal slowdown trend. fast food, too, wendy's and yum brands, mcdonald's, the only one that does not eventually outperform. so the only vice that seems to be immune to new year's resolutions, gambling. the major players here all outdoing the s&p 500 regardless of the season. so history shows the hangovers likely to come this month, but don't expect it to last. can we say it's good to be bad, tyler? >> i guess in january. i'm curious as to why gambling stocks do so well in january. doubling easily the s&p 500. i don't know whether that's seasonal or whether it's just peculiarity of the individual company. >> with a lot of these gambling stocks, you have to look at whether or not it's domestic or one that has exposure. mccow is the world's biggest. you look at wynn, las vegas sands, the huge with huge presences, you've got to look at
1:13 pm
global and not necessarily ones around january and the new year, that could be a big reason why. chinese new year, remember, comes up later on in the new year. >> great point. >> vice over virtue is what i'm saying here. >> let's be a little naughty. >> sorry. all right, sue, down to you. >> thank you very much. skype, the internet video communication service, and snapchat, that's the send it and have it self-destruct service, they were both hacked. millions of user names and partial phone numbers of millions of users have all been revealed. julia boorstin's on the story for us live from los angeles. hi, julia. >> sue, it was anything but a happy new year's day for skype, snapchat and millions of users as those two companies suffered from two unrelated hack attacks. skype's social media accounts were hacked with hacker group the syrian electronic army, attacking skype's parent microsoft for participating in nsa's communication monitoring program. the hackers posting on skype's official twitter feed, "don't use microsoft e-mails, hotmail
1:14 pm
and outlook, they are monitoring your accounts and selling the data to governments. now, twitter, facebook and blog messages yesterday have since been taken down. and if you or your kids use snapchat, take note. the online user names and partial phone numbers of 4.6 million users were posted by hackers on a website called which has since been suspended. now, hackers saying they're trying to raise awareness about snapchat's need to increase its security around user data. this hack, of course, deals a blow to the messaging app which allows photos and videos to be accesses and then quickly disappear. it's increasingly popular among teens. now, what's bad for snapchat could be good for facebook. it has a new rival called instagram direct to send photos and videos to individuals or groups. now, what wasn't hacked today is youtube. google's video website just announced a better and faster format, giving people access to
1:15 pm
hd-quality video at half the bandwidth. this will be key for mobile devices where broadband can be limited and also on new hd tvs. making it easier to watch more videos, hoping it will translate to more ad revenue. tyler? >> thank you very much. let's take a look at boston now. it is only going to get worse up and down the east -- wow! look at bass tooston, man. when we come back, we'll talk about the forecast, snow falling fast from chicago on over into this part of the country. look at those graphics. and big-bang stocks with she'll da d. sheila d. >> i'll be looking at stockser interesting with a big bang at least when it comes to valuation. the question, though, is the bang worth the buck? find out two minutes right here on "power lynch." i've got a big date, but my sinuses are acting up. it's time for advil cold and sinus. [ male announcer ] truth is that won't relieve all your symptoms.
1:16 pm
hmm? [ male announcer ] new alka seltzer plus-d relieves more symptoms than any other behind the counter liquid gel. thanks for the tip. [ male announcer ] no problem. oh...and hair products. aisle 9. [ inhales deeply ] oh what a relief it is. ♪ we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours.
1:17 pm
1:18 pm
welcome back to "power lunch." we've got breaking news with regard to the oil transportation out of the shale region of the united states. one of the biggest producers is continental resources. you see the stock moving here. the reason why is the pipeline and hazardous materials safety administration, or phmsa, is issuing a safety alert to notify the general public emergency responders and shippers and carriers of crude from the bachen that this type of crude oil may be more flammable than traditional heavy crude oils.
1:19 pm
based upon their preliminary inspections conducted after recent rail derailments in north dakota, alabama, quebec and other places, this agency is reinforcing the requirement to properly test and during rail transportation. so, again, lots of these rail derailments involving bachen shale oil possibly could be because oil from this region is more combustible, more flammable than traditional heavy crude oils. this coming from the pipeline and hazardous materials safety administration. we'll get more details as they become available to us. still, some stocks like couldn't nejt mo continental moving on this bit of news. >> dom, we'll look forward to more from you when it develops. meanwhile, the weather people, they're so busy, we have to do the forecast today ourselves. so here's my forecast. watch out and get out the snow boots. there's the northeast, you can
1:20 pm
see, the storm moving in with very cold temperatures from erie, pennsylvania, all the way to portland, boston and rhode island. ten degrees in buffalo. not much fun there. watch out for lake-effect snow. 15 degrees in chicago. 14 in detroit. 16 in st. louis. those are the highs, by the way, not the lows. with the windchill, it's even worse. in albany, new york, minus 12. and we have advisories from indiana east to central pennsylvania. winter storm warnings covering all of new york state, vermont, new hampshire, rhode island, connecticut, new jersey and eastern pennsylvania. and this video is from lima, ohio. whiteout conditions on the roads. that's pretty much what the forecast looks like for the rest of the northeast. so be very careful out there. don't travel if you don't have to. in new york city, the forecast hat just been updated, and forecasters are now looking for six to eight inches in the city. ten inches a little bit further
1:21 pm
out. so ty, we're in for a big one tomorrow. >> yeah, it's going to be a challenging drive home and a challenging way in for many people who are working this week in the big apple. all right. we'll put the new mayor to a test here, de blasio. everybody's going to be watching to see how he responds. all right, stocks certainly ended 2013 on a high note, but some are starting the new year with a valuation that would make some investors very nervous. are these big-bang stocks still worth it? sheila ran the numbers. she's live at the nasdaq. sheila. >> hey there, tyler. we screened specifically for stocks that are entering 2014 with a big bang when it comes to valuation and looked outside of those high-flying sectors like technology and biotech. first up on the list is mondelez. despite the fact it lowered sales guidance for the year. now, analysts tell me europe is a weak section of the company, but north america has continued to hold up. as for whether the bang is worth the buck, it all depends on what
1:22 pm
nelson pellets and relational will do. remember, they have big stakes in the company, all eyes on whether there's going to be any action in 2014. now, i got another food-related stock for you, and that's chipotle mexican group. you guys were just talking about it with cramer. the stock has had a big one. forward pe around 50 times. and this is even despite very volatile earnings over the past 12 months. analysts tell me when it comes to operational metrics, the company continues to outperson form average annual sales growth on a same-store level about 8% since 2005. also traffic numbers keep increasing. but as for whether this big bang will continue in 2014, all about execution. analysts telling me that right now the stock is priced to perfection. last up, constellation brands moneyed mondavi, also corona. big valuation compared to its peers. as for whether it's really worth it, analysts tell me it's all about the corona acquisition it
1:23 pm
recently did. as for whether it can continue in the new year, all about whether they can build upon the opportunity. they got a manufacturing plan as part of it which could produce big results. isi group says if execution goes well, this could be a $100 stock. sue, over to you. >> wow! sheila, thank you very much. appreciate it. well, has the stock market got it right when it comes to the u.s. economy? what you need to know before you put your money to work in 2014. and if you plan to ride the rally this year, do you stay home in the good old usa, or do you go global? seema mody has clues for us on that. >> they say home is where the heart is, but in 2013, home is where the money was. with an improving global picture, money may money overseas. we'll discuss that hot debate next on "power lunch." she keeps you on your toes. you wouldn't have it any other way. but your erectile dysfunction - it could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved
1:24 pm
to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about experiencing cialis for daily use and a free 30-tablet trial. there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order.
1:25 pm
good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. of the dusty basement at 1406 35th street the old dining table at 25th and hoffman. ...and the little room above the strip mall off roble avenue. ♪ this magic moment it is the story of where every great idea begins. and of those who believed they had the power to do more. dell is honored
1:26 pm
to be part of some of the world's great stories. that began much the same way ours did. in a little dorm room -- 2713. ♪ this magic moment ♪ welcome back to "power lunch." check out shares of herbalife. the stock getting a boost, citing in part increased sales in china. the stock is up about 140% in 2013 despite activist aes short position. herbalife again in the headlines because of an analyst upgrade. s&p, of course, had a big year in 2013. there it is, up about 29% versus just 17% for the europe 600. there you see it. also last year, stocks that generated more than 90% of their revenue in the united states scored an average 33% return last year. so is it better to stay home
1:27 pm
this year or send your money maybe overseas? seema mody has been looking into it. what did you find, seema? >> thanks for the gradually improving u.s. economy and a stronger dollar, sticking with stocks that make their money here at home was a recipe for success in 2013. according to companies that generated 90% or more in revenue in the u.s. beat the s&p 500 33%. some on the street are taking a more global approach. in fact, b of a merrill lynch is advising to sell u.s.-centric stocks and multinationals. she said it's likely to come from outside the u.s. in 2014. advising them to stick with consumer discretionary names that are looking to profit from the well emerging markets. his picks include nike, mattel and harley-davidson while thomas lee at jpmorgan is focusing on companies that can benefit from europe's recovery. some of the s&p 500 components
1:28 pm
with european exposure include priceline, philip morris and mcdonald's. now, tile, though, keep in mind, experts caution that a rise in inflation in emerging markets, political dysfunction and security concerns overseas could send investors right back home. back to you. >> all right, seema, thank you. the economy in the united states grew in 2013. stocks set record highs, of course. so does the stock market have it right on the economy? steve liesman is taking a look, and sometimes the two can diverge. >> yeah, but ex-post we now know that the market probably had it right. a strong manufacturing report and much of the year-end data has come in to help justify these lofty stock price levels. let's look at a tale of two economies. now, the full year we're going to do that same old tired 2% middle in growth. but two very different stories if you break it down by halves. the first half just 0.6%. the second half, a stronger trend, 3.4%.
1:29 pm
now, a few more numbers here. third quarter actual -- the fourth quarter, now 2.6. people thought that might have been around 1, but they've revised that up steadily with better consumer numbers the first quarter, that strength remaining. there are those two numbers there. 2013, 2%. now we're looking for another point in 2014. why? well, the consumer really powered that second half growth. some guys think it was lower. some are energy prices, delayed effect of the second half of the year. certainly consumers brought down their savings rate. and then there was a wealth effect. these positives are also the question marks for this year. will the consumer continue to run down their savings rate? will housing keep gains going even though there will be higher interest rates. this is the key, folks, will it keep putting enough money into americans' wallets. investors have to ask themselves, if the performance showed up, is it already priced in, tyler? and the other thing people want to know is do these numbers make
1:30 pm
some investors more confident in the current levels? it's not just hot air or the fed underneath the economy. >> steve, thanks very much. busy month ahead for you, i'm sure. >> absolutely. >> sue, down to you. >> we may be down triple digits on the dow, ty, but we are up significantly in the gold market. we're up better than -- actually, now almost 2% on the trading session. a gain of $23 in comex gold. some of that comes amid the decline in equities today. interestingly enough, we also have a stronger dollar in today's trading session which doesn't always happen. interesting session developing today. let's talk more about where to put your money to work. we have an all-star panel on what's ahead for this new year. we have anastasia amarosa and covering the u.s. market, we have waseef at usaa. and ed, portfolio manager at eagle asset management. welcome, guy, to all of you.
1:31 pm
anastasia, i'd like to start with you. we posed the question -- or seema did earlier -- whether or not it's better for you to invest here at home or globally. you're constructive on the markets, in general. do you like the domestic market or the different global markets better this year? >> we definitely like the domestic markets. but i think there are many different ways to play that. we do like the u.s. economy. we think instead of being a one-cylinder engine, that the u.s. economy has been for the last five years. now it's at least a v-6 engine. we definitely want to be in the united states. but at the same time, i think you do start to look very selectively in emerging markets, whether it's mexico, whether it's russia and we can come back to some of the catalysts there. and probably last but not least, absolutely europe. europe is still that catch-up trade. and whether we look at european bank sector, whether we look at european bank bonds, we absolutely have to look there in 2014. >> waseef, you're a little more cautious. you say in your notes that i read, you're cautiously optimistic. where's the note of caution coming from? >> well, the caution, sue, comes
1:32 pm
from the u.s. itself. the u.s. equity market having strongly outperformed the non-u.s. markets. you have to be vigilant of where you put your money in the u.s. market. you need to be focused on quality. you need to be focused outside the u.s. i agree with anastasia that when you're investing within the u.s., you need to look at companies that are benefiting from outside the u.s. going forward. in 2013, diversification was an ugly word. it was a four-letter word. but in 2014, investors are going to look back and look at diversification for its long-term benefits. so we think that the non-u.s. markets are likely to do better in 2014, particularly in europe and pockets of emerging markets. >> you know, ed, let me jump in and ask you with specific reference to the u.s. market, what areas of it do you think are fully or maybe overvalued, and what areas still represent some opportunity? >> well, in general, tyler, we have been avoiding some of the
1:33 pm
more defensive parts of the market, the electric utilities, the telephones, even some of the consumer staples where we think the reach for yield has maybe gone a little bit too far and the underlying valuation, a lot of these sectors is really not supportive of the stock prices right now. we like cyclical types of companies and sectors. we like technology. we like the industrials. we like the financials. that is, after all, a cyclical sector as the economy begins to improve, and we believe it will. we think some of the big banks and small banks are all going to do pretty well this year. >> anastasia, let me come back to your thoughts on the emerging markets. you mentioned mexico, but you also mentioned russia which has -- there's inherent volatility there. but there have also been some terrorism incidents. and a lot of analysts that i talked to are staying away from that part of the world. why do you still find it compelling? >> so we have to remember why it
1:34 pm
is that we invest in emerging markets in the first place. and that is because we think the quality of life in emerging markets will improve over a longer period of time. so yes, they do come with their economic risks, geopolitical risks, but with risk come rewards. and over time, those returns should exceed those in the developed market economies. so absolutely for investorss wh can withstand volatility, that may be a place they want to look at. what we ask investors to do is be selective. one of the reasons i mention russia, russia is a big exporter of commodities. if you're looking for other ways to capitalize, you could look at an undervalued place like russia as a potential tie-in there. not to mention that once inflation in russia actually subsides, which we expect to happen in 2014, the central bank may begin an easing of monetary policy, which once again that would be a support to the market there. >> interesting. interesting. ty? >> wasif, let me ask you a little about fixed income.
1:35 pm
i don't know whether that's particularly a focus of yours. what should people be expecting? >> well, with the gradual rise in rates, you know, investors should be looking at fixed income in a shorter duration perspective. just because rates are rising doesn't mean you can't do well in fixed income. if you do good credit research like we do at our shop and you can pick and choose the right kind of names, you can do well in fixed income. but by and large having a shorter duration approach should help you stave off some of the negative impact from rising rates. and by the way, to answer your question, i do look at that because i look at all of our asset allocation products. >> thank you all very much. the best of -- all the best in 2014 to all of you. thanks so much. to the bond market now, let's check in on interest rates. rick santelli is here tracking the action at the cme. happy new year, ricky. >> happy new year, sue. the first chart tells you why the rest of the charts look the way they do.
1:36 pm
we're down close to 17.5 points on the s&p 500. you see on that chart. so look at the intradays, 5s, 10s, 30s. look similar? absolutely. that could be something to pay close attention to in terms of a stencil if equities get weak and their impact on fixed income for the rest of the year. dollar-index having a great year. you know it's euro centric because look at the dollar-yen going the other way. the yen having the first kickoff trade of pretty decent strength against the dollar and the developed economy currencies. tyler? >> thank you very much. coming in from the cold. should nsa leaker edward snowden be allowed to come back to the u.s. and be given some sort of plea bargain or clemency? plus, ford creating buzz with its new car. phil lebeau behind the wheel for us. hi, phil. >> tyler, what if you could drive a solar-powered car every single day? you know, never have to fill up, never have to plug in. ford says that could be a possibility. we'll show you their vision of the future when "power lunch" returns.
1:37 pm
[ man #1 ] we're now in the approach phase. everything looking good. ♪ velocity 1,200 feet per second. [ man #2 ] your looking great to us, eagle. ♪ 2,000 feet. still looking very good. 1,400 feet. ♪ [ male announcer ] funny thing happens when you shoot for the moon. ahh, that's affirmative. [ male announcer ] you get there. you're a go for landing, over. [ male announcer ] the all new cadillac cts, the 2014 motor trend car of the year. aflac!
1:38 pm
aflac! got 'em. ♪ yeah, he's clean, boss. now listen to me, duck. i have an associate that met with, uh, an unfortunate accident. while he's been incapacitated, somebody's been paying him cash. now, is this your doing? aflac? now, if i met with some such accident, would aflac pay me? ♪ nice. this is your stop. [ male announcer ] find out what aflac can do for you and your family... aflac? [ male announcer ]
1:39 pm
welcome back. a tough day for the transport stocks.
1:40 pm
both fed eex and u.p.s. fedex up 50% while u.p.s. up about 35%. still transportation stocks seen by many as a leading indicator for markets. one day does not a trend make. stocks ended 2013 with a bang, but we're starting off 2014 solidly in the red. we're down 134 points on the dow, 40 to the down side on the nasdaq. and the s&p is down almost 18 points. bob pisani is joining me here at post 9. perhaps we're not surprised. >> this hasn't happened a down day since 2007 on the first trading day. i think a lot of problems are over in asia. put up some of these emerging market countries. asia's got people a little bit nervous today. chinese pmi was a disappointment. you see emerging market stocks all to the down side here. the export components of the pmi were weak. that's all tied to the global trade issue. as further proof that china's a bit of an issue.
1:41 pm
look at copper today. all of the metals are up today with the exception of copper. this is a six-month chart. you see copper has been trying to rally. you see it is down today. china's a big issue. the u.s. markets are at all-time highs. germany near its all-time high. japan near the highest level since six-year highs. china is 65% off the record high. that is a major problem we've got. finally, don't believe what everybody's telling you, they're buying last year's losers. emerging market still a loser. steel was a loser, tobacco. it's still a loser today. the only exception is gold stocks. they finally, after 50% declines, starting to buy gold. >> gold's up 2%. we'll see. thanks, bob. happy new year. >> you, too. should nsa leaker edward snowden be given a plea gabarga and return to the u.s.? eamon javers is live in d.c.
1:42 pm
>> reporter: a pretty aggressive editorial in "the new york times." let me give you the highlights of what it is exactly that "the new york times" is calling for in calling for some sort of clemency for snowden. they wrote, "he may have committed a crime, but he's done his country a great service. his detractors have no roof that his disclosures really hurt the nation's security. it is time for the united states to offer snowden a plea bargain or some form of clemency." now, interestingly, we saw a tweet this morning from ann marie slaughter, former state department official, saying she agrees with "the new york times" editorial. that's significant because she's a former state department official but also because she's the president of the new america foundation, a think tank and the chairman of the board of directors of that think tank is google's eric schmidt. we've seen some real disagreements from some of the tech companies over some of the nsa spying activities. it would be interesting to see if we saw any of these tech companies get involved in a
1:43 pm
demency for snowden movement. that's not something we have seen so far, sue. this is a new year, and this debate is definitely changing. >> eamon, i'm going to pick it up. it is a sordid tale about a banker who bilked millions from investors, then went on the run. here's andrea day. >> reporter: a former banker accused of bilking millions from investors and faking his death finally captured. >> this guy is going to, you know, go rot in jail hopefully for a really, really long time. >> reporter: authorities in building go were left stunned after they pulled over a car for having illegally tinted windows. the driver, aubrey lee price, on the run for 18 months. price was indicted by a federal grand jury in 2012, charged with raising about $40 million from investors. but instead of investing the money as promised, he allegedly wired the funds into accounts he personally controlled. >> he was just trading and trading and trading. and i guess hoping that one of
1:44 pm
these trades would pay off, but it was a downward spiral. >> reporter: weeks before the charges came out, authorities say he told friends he had lost a lot of money and planned to commit suicide. >> i never once thought that he was dead. >> reporter: this surveillance video shows price a year and a half ago. he was in key west, florida, boarding a ferry bound for fort myers. >> we know he checked the bag onto the ferry, and then that's it. >> reporter: the fbi says they always thought price was alive. the case gained national attention last fall when price was featured on an episode of cnbc's "american greed." and while his appearance has now changed, his victims' anger remains the same. >> justice prevails, and the big foot of karma will come back and squash you. coming up, a car running on solar power. it's not just a bunch of kids that put it together. there's a big name behind that plan. before we go to the break,
1:45 pm
the gold market closed just a few moments ago, and it was a very strong session. a full 2.2% gain in gold. last trade, up 26 bucks. back in two.
1:46 pm
and it feels like your lifeate revolves around your symptoms, ask your gastroenterologist about humira adalimumab. humira has been proven to work for adults who have tried other medications but still experience the symptoms of moderate to severe crohn's disease. in clinical studies, the majority of patients on humira saw significant symptom relief, and many achieved remission. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as
1:47 pm
fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. ask your gastroenterologist about humira today. remission is possible. welcome back. check out continental resources getting hit hard today, one of the biggest producers of bakken crude oil. the government issued a safety alert to notify the public that their oil may be more flammable than traditional crude oil. this after the recent rail derailments in north dakota, alabama and in canada and quebec involving bakken crude oil. we'll have more coming up in "street signs." still, that's going to be interesting. let's see what's coming up else on "street signs." >> hey there, dom. we're switching our planes, trains and automobiles for tankers, trains and steel. what is old is suddenly new gene. we're going to talk about how to invest in those sectors.
1:48 pm
we always talk about the cool gadgets that everybody must have. we're going to bring you the worst of the tech world. and 2014 crystal ball gazing from brian and yours truly. all those things and lots more coming up. ty, back to you. happy new year. >> happy new year to you, ford a big stock to watch at this hour. the automaker set to unveil a new solar-powered car. phil lebeau is in chicago with the details. hi, phil. >> hey, tyler. a lot of reaction to this story. ford announcing that it has been working on and developing along with a couple of their entities a solar-powered cmax. people might be saying, really? solar powered? well, it looks like the cmax energy that you would see for sale in showrooms. the big difference that you have the solar panels on the roof that would act as almost an absorption, if you will, for rays that would be shot into the panels through a special device. now, this is all theoretical at this point. but the bottom line is this. ford and the other automakers are all saying this is what we they'd to develop for the
1:49 pm
future. those types of vehicles that could go further with alternative power. that's because they need to meet stricter guidelines when it comes to mile-per-gallon standards. as for solar cars, well, they've been around for decades. this is not new. people have seen solar cars, but the solar cars we've seen in the past, they've been like this. big enough maybe for one or two people. not for driving every day or running to the store. and that is the bottom line. you have got to figure out a way of figuring out the weight and the practicality issues. then perhaps ford might have something on its hands. nonetheless, they're going to be showing this next week at ces. and sue, a lot of people are saying if they can really harness the power of the sun, then i would like to drive it. >> i think it's a very novel approach. i'd love to see it. i can't wait. thanks, phil. we told you earlier about a new wave of hack attacks. that's straight ahead. the nfl playoffs are this weekend, but there are fears about blackouts. and boardroom buzz words to
1:50 pm
ban in 2014. what's on your list? the "power rundown" is next.
1:51 pm
1:52 pm
first "power rundown" of the new year. seema mody, jon fortt are here
1:53 pm
with us. the hacking of america continues. millions now of snapchat user names and phone numbers leaked by anonymous hackers. the syrian electronic army say they are responsible for hacking skype's social blog and social network accounts yesterday. jon fortt, will the hacking ever stop, and you are a tech guy. how worried are you about being hacked or hacking? >> it will never stop, tyler. i mean, the internet is kind of a wild west location. people can get in and out without you knowing who they are. it's just a matter of being smart enough, finding vulnerabilities. i worry about this stuff. but, look. a lot of times there are ways to mitigate the risk or at least to react fast enough that you don't get hit that hard by the impacts. take this target case, for example. we shopped at target during the period affected, and hey, we just canceled our credit cards, got new numbers. >> my wife had the same thing, got a notice from ste ba citiba
1:54 pm
saying they might want to look into getting a new card. >> seema, i assume you agree? >> i've got to say, i'm a big user of snapchat and skype. definitely concerning, but at the same time, not too surprising. it seems like every month there's news of a report of a new security breach. i think this just tells us that we need to be smarter and better about our online decisions. >> let's talk football, folks. sports fans, the nfl's wild card weekend is two days away, but some fans in the home team towns may not be able to see the games on tv. the blackout could hit cincinnati, green bay and indianapolis if the stadiums are not sold out by this afternoon. the question is whether football tickets have become too pricey and they basically hit that point where people aren't willing to pay. they'd rather stay home. >> i think the nfl definitely needs to changity blackout policy or do something about ticket prices. someone like myself who isn't a big football fan, i still watch the super bowl because it's highly entertaining. so i hope they do change that policy. >> jon? >> well, the packers recently
1:55 pm
changed their refund policy for season ticket holders. also expanded the stadium by 7,000. so bad luck there. also you've got snow everywhere but green bay, and there it's going to be negative 18. sounds like the need for some technology there, dynamic ticket pricing might have been able to avoid this. >> interesting point. let's talk about another one. a provocative story in "the wall street journal." they've compiled a list of buzz words and phrases that business executives would ban from the boardroom. they include the phrase "push the envelope," "delayering," "dynamic resilience," "passionate," apparently passion is out. "out-of-the-box thinking." and "viral." which buzz words get under your skin? >> i used to be a management consultant myself. i think the one that rubs me the wrong way is "let's connect soon." you know when you get an e-mail from someone and at the end they say let's connect soon. that's so vague. >> it sounds insincere.
1:56 pm
>> exactly. >> let's connect soon. call me. jon, end-to-end is yours. >> yeah, i really don't like that because usually when people use it, it's not really end-to-end. it's kind of like midpoint to a different point. you know, i've got to say, seema, i'm concerned about your snapchat use. let's connect and talk about that. >> there you go. >> my three are the use -- over juice of t overuse of the word "leverage." how are they going to leverage this idea? speaking of ideas, the one that absolutely drives me nuts, i think it's says pretentious, i hate it, is when anyone is referred to as a thought leader. thought leaders should be banned. and finally, anybody who refers to themselves as a brand ought to be banned. my brand. >> how about if your last name is brand? >> brand ford. brand mody. >> if you're russell brand, it's okay. three big winners to kick off the first day of trading in 2014. we had to look hard to find three big winners. we'll be right back. tory
1:57 pm
of the little room over the pizza place at 315 chestnut street. the modest first floor bedroom in tallinn, estonia and the dusty basement at 1406 35th street. it is the story of the old dining room table at 25th and hoffman avenue. the southbound bus barreling down i-95. ...and the second floor above the strip mall at roble and el camino. ♪ this magic moment it is the story of where every great idea begins. ♪ so different and so new where those with endless vision and an equal amount of audaciousness believed they had the power to do more. time and time again. ♪ and then, it happened at dell, we're honored to be part of some of the world's great stories. stories that began much the same way ours did. in a little dorm room -- # 2713. ♪ this magic moment ♪ ♪ this magic moment
1:58 pm
across the country has brought me to the lovely city of boston. cheers. and seeing as it's such a historic city, i'm sure they'll appreciate that geico's been saving people money for over 75 years. oh... dear, i've dropped my tea into the boston harbor. huhh... i guess this party's over. geico. fifteen minutes could save you fifteen percent or more on car insurance.
1:59 pm
we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours. let's get you up to date on the markets. down 121 points, that's off the lows of the trading session. and the s&p 500 is down better than .75% now.
2:00 pm
the nasdaq percentagewise is the biggest loser, down about 36 points on the trading session. three big winners this hour, radio shack, u.s. steel, and sun edison. radio shack has almost a 3.5% gain. all right. go packers! ty, that will do. >> go packers! get home before the snow, sue. that does it for this edition of "power lunch." >> "street signs" begins now. all right. happy new year, everybody. to apparently everything but the stock market. could we post the first down first day of the year since 2008? your other hot topics on "street signs" today, the unsexy old-school sector that is the favorite investing pick of our market expert. we've got the must-see list of the worst tech products of the year. and our predictions for 2014. some will shock you. others will amaze you. some will no doubt be completely


info Stream Only

Uploaded by TV Archive on