tv Power Lunch CNBC February 4, 2015 1:00pm-2:01pm EST
you look at the car sales the numbers from fill phil lebeau, after the charts. >> this correlation between the market and oil continues, yes? >> we need stabilization. we talked about it over and over again. pete is talking about volatility at 63. that means we're not stable yet. >> have a great rest of the day. stay tuned for "power lunch." it begins right now. "halftime" is over. "power lunch" and the second half of the trading day start right now. >> scott indeed it does. thanks very much. two american auto icons, ford and general motors both companies trading higher, especially gm. ford ramping up hiring to build its aluminum f-150 truck. gm, good news for investors hunting for yield dividends moving. choppy waters for shipping stocks. baltic dry index dipping now to 30-year lows. we have dry shipping stocks that have been rallying recently. why? and should you buy them now?
warren buffett seven years in a ten-year bet with hedge fund guys buffett is crushing it, outperforming the so-called smart money. how buffett's doing it and how you can easily get in on the action. first, though, let's go to sue who's here today at hq. >> i am indeed. we begin with bullish news from two american auto icons ford and general motors. ford is actually adding jobs to ramp up hiring for production of its aluminum f-150. as you recall, there was skepticism about that model when they changed from steel to aluminum. gm revving up profits and boosting its dividends. phil lebeau joins us from chicago with details on both of those stories. >> let's start with the ford news which came out early this morning. this once again another expansion by ford, adding jobs, creating more production when it comes to the f series. they're adding 1,550 jobs, about 900 of these are going to be at
the kansas city truck plant. they'll have production later on this spring. once that plan the is up alongç with the deerborn truck plant annual production will top 700,000 vehicles every year. the reason they're increasing production, adding more jobs to support that production, f-series sales are soaring. they're just starting to roll into showrooms over the next month and a half. we just talked to the dealer here in chicago who said i just cleaned it up. the average days to turn a vehicle on the lot right now for the new f-series, 12 days. in the industry the average is 65, 70 days. that gives you some indication how big the demand is for the new f-series. general motors is the auto stock story of the day. gm reporting 4q earnings today that were much better than expected. coming in at $1.19 per share.
the estimate was for 83 cents a share. part of the difference is because of the miscalculation on whether or not the tax rate would be greater on some of the recall expenses. as a result the stock is moving higher. this is the biggest gain, tyler for shares of general motors since december of 2012. in the last three days, it's up 10% and a big reason for that today, tyler the company says it plans to ask the board to increase its dividend by 20%, up to 36 cents a share the next time the board meets. that might go into effect in the second quarter dividend payout. >> stunning revival at general motors. phil lebeau, thank you very much. the dollar rebound after suffering its biggest one-day drop in over a year. the dollar index soaring 1% over the past 6 months and the impact of that can be seen everywhere this earnings season. a slew of u.s. companies blaming the strong dollar.
one company riding out the dollar surge is whirlpool, the home appliance maker beating earnings estimates thanks to overseas acquisitions. whirlpool shares over the past year, up 64%. they're up $13 today alone or better than 6%, almost 7%. saraizen ize neisen joins with the ceo of whirlpool whirlpool. >> he joins me by phone from michigan. good to have you on, jeff. how did you manage to do well when other companies are faltering overseas? >> sarah, we did have a great year record year for revenues and earnings. we had a strong fk fk.ourth quarter. one of the critical elements for us was the acquisitions, one in europe and one in china.
we did close on those acquisitions in the fourth quarter, midway through. we had a positive benefit from that. >> are you looking to do more of that, more overseas acquisitions to grow abroad at a time when particularly those currency headwinds can hurt. >> we have a great global footprint today. we have a clear strategy for acquisitions. we have high confidence that we can improve and create value, then we're very interested. doing two in one year is not the norm. based on our history. i'd say right now we're focused on absorbing thoseç acquisitions. >> i want to ask you about domestic demand. here in the united states, some of the data has been iffy on housing, on consumer spending, on durable goods. we should mention you own kitchenaid, maytag, jenn-air. are those savings helping consumers upgrade their homes the gas savings? >> i think we've seen a strong
growth, return to the market, really beginning in 2013. that's after seven years of negative demand. so our view is, we're just in the early phases of recovery mode for the marketplace. and there's really a number of factors affecting it. you mentioned certainly the consumer. lower unemployment, higher consumer confidence have been very positive. the housing market has been a boost to this. appreciation gives the consumers confidence to do the remodel they put off for several years. right now we're somewhat in the sweet spot where all the elements that drive demand in our industry is going in the right direction. that's why we're fairly bullish for the next five years. >> we'll leave it there on that bullish note. the stock is trading at a record high. whirlpool's ceo jeff fettig.
>> stocks have been steady today following big triple digit up days for the dow. disney at record highs adding more than 43 points to the dow on the back of its latest earnings estimates. let's take a look at the numbers. the s&p 500 last trade slightly to the down side by about 5 points on the trading session. the nasdaq, the last trade down 5 as well. the oil market prices moving to the downside today as well, down about 6% on wti. let's get more on the trading action with bob pisani. >> we're on the up side for the dow. oil is, again smacking around the markets. we were waiting for stability. look what happened here intraday. 10:30, the inventory levels came outing with bigger bill than expected there. we broke down a little bit around 12:30 when oil broke below $50. that's when the market
responded. look at the s&p 500. we've dropped about 4 points very quickly there. and then another little cascade to the downside. that's what brought us down. remember when traders don't know what the fundamentals are, they trade on technicals. when oil hit 50, the entire market responded. another reason why technical analysis is very important. look at this two-day on oil. we were almost $55 two days ago, now we're at 49. these are wild moves everyone is trying to figure out what the right price is. the market cannot decide. gilead down, they're offering larger discounts on their hepatitis c drug. that's been dragging all the biotech names to the downside. soon this would ban internet service providers from blocking and downloading internet con ten. it looks like good news for some of the comcast,ers have verizons,
at&ts of the world. they're not going to do a lot in the way of providing regulation of the fees. i think that's a key reason why they're moving to the upside. back to you. >> bob we should note comcast is the parent company of cnbc and nbc universal. >> yes, that's right. thank you. the stock is moving higher at kohl's. the stock is going this way after the department store retailer raised earnings guidance for the full year. this coming a day after macy's also raised its full-year guidance. kohl's shares up. morgan brennan has been tracking shipping stocks. >> six-months chart of dry boat shipping stocks is enough to make anyone sea sick. experts say now may be the time
this is "power lunch" watch. the stock is hitting a record high in trading today after the company said fourth quarter sales rose more than expected. up by 6% today. back over to you. >> a terrible accident to tell you about six people killed over a dozen hurt last night in a commission between a new york commuter train and suv. the national transportation safety board announcing it will lead the investigation into possible causes for the collision. witnesses are reporting that the railroad crossing gates came down on top of the suv. the driver exited the vehicle to investigate, then re-entered the car and attempted to drive forward when she was struck. we'll keep you posted on the details. ty? >> terrifying footage here. look at that. coming to us from taiwan. a car's dashboard camera caught these images of a transasia
airways plane clipping a bridge with its wing before it went into a river. the crash happened shortly after takeoff from a taipei airport. at least 26 people mostly chinese tourists, it appears now, have been confirmed killed in the crash. about 15 survivors have been pulled from the river. >> let's get you up to date on the headlines. shares plunging 10% after announcing it is buying office depot. apple surging to a new all-time high. that stock up 65% in the past year. ralph lauren plummeting nearly 16% after missing earnings estimates and trimming the revenue forecast. the company is raising its dividend by some 11%. >> problems at the nation's biggest port out west. >> they are saying congestion at the port is, quote, at a crisis
stage. we'll show you a live picture though it's pretty foggy in the port of long beach. take my word for it. there are a lot of ships stuck out there. shipping companies tell the journal "commerce" there are 20 ships stuck anchored offshore. they say ships are sitting out there for up to two weeks and once they get a the go-ahead, it's taking eight days to unload them. one line has no vessels available to carry containers from asia because all of its ships are stuck on the west coast. each side blames the other for intentionally slowing down operations to gain leverage. >> looks like it is. jane, thank you very much. the shipping stocks have surged this week despite the benchmark index plunging to a three-decade low. why are the stocks rallying? and if so, should you buy now?
morgan brennan is here with us. i almost called you brennan. hi morgan. >> it happens all the time.ç companies that ship iron ore and others around the world they've been hammered in the last year as global demand has slowed. they've lost up to 60% of their value over the last six months, many of these stocks. second, they are small and extremely volatile. they may not get any better. they are rallying, names like navios diana shipping, dry ship and star bulk carriers have rallied over the past week, up from 10% to 14%. why? because investors are betting that this is the bottom, they are on the belief that freight rates can't get lower for these shipping companies and "b," if they capture half of their losses it's a big gain.
analysts expect 2015 to be a choppy year. keep in mind, this is very high risk, high reward. these are volatile, high momentum stocks that can really, to give you a case of sea sickness look at the names trading today. it's a mixed session for them. >> thank you. appreciate it. ty, back to you. a debt crisis hitting venezuela hard. long food lines across the country. look at that. we showed some of the footage earlier this week. the national guard has temporarily taken over a supermarket chain. they will occupy 35 stores with the intention of distributing food and basic goods to populous. and new developments in the luxury real estate scandal involving mexico's president and his soap opera star wife. oh michelle caruso-cabrera, tell us more. >> reporter: mexico's president now announcing that he's going to order an investigation of the
home purchases by himself, his wife and finance minister. why? because they were all purchased from government contractors. sometimes even financed by those contractors. in a news conference yesterday he denied wrong doing but said, quote, i am conscious these accusations have created the appearance of something improper improper, something that really did not happen. a scandal erupted last late year when it emerged that his wife, a former soap opera star was in the process of acquiring a multimillion dollar mansion from a subsidiary of a company which had won a piece of a $3.75 billion government rail contract. we learn that the finance minister had a similar arrange with the same government contractors that news broke one day after he acknowledged to me that the first lady's mansion would hopefully serve as a touch stone for change in mexico. most recently it's emerged that the president himself also
bought a home from a different government contractor. the president acknowledged in his announcement that when it comes to the country's corruption rankings from transparency national are low and they've barely budged in the last two decades. he said he wants that to change. that's beginning to be tough. another case shows 200 cases were disregarded in which the congressional auditors recommended punishment for government contract irregularity. >> this gets messier and messier. >> mexico needs to change in a big way. this might be a touchstone, they might actually do that. >> he said that but it comes out days later that he bought a house. >> yes.k they did nothing illegal but they are trying to clean up their image. you have to be bulletproof if you're a government official. >> thanks, michelle. there's a reason why he's
the world's greatest investor. seven years into a ten-year bet with hedge funds buffett is killing it, well outperforming the smart money. how he's doing it with one fund and how you can easily get in on the action. plus -- >> coming up, power pitch hits the slopes with one startup stepping up the ski boot. >> ski boots are notoriously uncomfortable and difficult to walk in. i solved this problem. >> will this founder make it past the bunny slope or go downhill? >> i've never seen anyone on the lift lines or slopes with this. why is that? >> it's a traditional, classic boot. >> stay tuned to find out.
welcome back toç "power lunch." look at shares of boston scientific. the stock is trending higher as a result of its cardiovascular sales. shares up by 3.5%, sue on today's trade. back to you. >> we're going overseas. more shocking footage coming in from ukraine. three people killed, many more wounds as a hospital in the city of donetsk. intense fighting for the control of east ukraine continues between the ukrainian army and pro-russian separatists. these fatalities bring the both toll to 5,358 since the conflict began last year. >> soon time for the power pitch with ski season well under way, in the heart of it, and the world championships beginning in
days in vail, beaver creek, this entrepreneur has 60 seconds to con vns a panel of entrepreneurs that his ski boots are the next big thing. >> i'm the founder of apex ski boots. ski boots are notoriously uncomfortable and difficult to walk in. i've solved that problem with the apex ski boot design. it's a two-part system. the first part is the walkable boot that you can wear all day. the second part is the chassis. it provides the rigidity required by expert skiers. put them together. what do you have? the world's most comfortable ski boot. currently, there are 10,000 skiers enjoying apex boots. they're raving about the comfort and the performance. worldwide, they're 1.5 million pairs of ski boots sold each year. the apex goal is to earn a 5%
market share within five years. apex ski boots comfort warmth and walkability. all without compromising performance. >> welcome, everybody. you saw denny's pitch. let's meet or sporty panel. a former ski and snowboard instructor who's been hitting the slope for 25 years. internet entrepreneur and the founder of the mobile app four square dennis crawley. and a skier since she was 6 years old alicia syrett. she's also the founder of pantgerion. also with us, sam moulton. lots of experience on our panel today. welcome to the show.
you are in the hot seat. would you like to ask the first question. >> one of the reasons i switched from skiing to snowboarding is exactly this problem. also i still get ten days on the slopes a year. eye never seen anyone in the lift lines or on the slopes with these boots. why is that? >> we're in boulder, colorado. we started our approach to the market in the rocky mountains. and if you were to go to beaver creek or vail, aspen and steam boat you'd find a lot of apex boots on the slope. we're approaching 10,000 skiers skiing in apex boots at this time. >> what have you done to protect your intellectual property or prevent competitors from replicating what you're doing. >> the ski boot art is dense. there are many, many patents. we made an çearly-on decision that we would not pursue ip and patents and do the best job we could in making the best ski
boots we could. >> this design hasn't fundamentally changed from the 1970s. what you have going looks radically different than what's on the marketplace. >> we encourage our dealers to do demos. some of our biggest successes have been in ski areas where you can go out and demo and come back. we get 80% turnover with people that have tried the boots. >> i'm assuming a big part of this fund-raising is to invest more heavily in marketing and advertising. is that the way you're thinking about it and how would you do so? >> the current way is almost totally. >> you've been in business for over five years. you're currently in over 100 stores. what's been the main constraint to prevent you from getting into more stores? >> you would think skiing is quite traditional.
the major brands have boots all designed exactly the same way. this is totally revolutionary. it takes some time for people to catch on to our approach. >> what's the price of your boots compared to a traditional boot out there? >> we start at about a retail price. >> are your boots as warm as a traditional plastic boot and have you had independent testing to verify that? >> the boots are extremely warm. we don't put heaters on these boots. a lot of the shell boots need hereto -- heaters. they don't cut off your circulation. that's why they're so warm. >> the moment i saw this, my first thought is i can't believe someone hasn't done this before. i like the story. i'm in. >> i love the product. i love the idea of going comfortableably from the slopes to ski. from a business perspective i'm concerned with the traction to
date. unfortunately i'm out. >> that means you have the vote. >> i like the product the boot look more inviting, more colorful, sleeker, simpler. we've had people test them and i think people should be wearing them. i'm in. >> two ins one out. what's your response to that? >> i appreciate all the feedback and i'm excited with what we have, two goes. >> thank you very much. apex ski boots. thanks to our very sporty panelists as well. that is today's power pick. are you in or out on the boots? apex ski boots. tweet us using #powerpitch. mandy, i know you're a skier. >> i did try them on.
maybe they should bring them out in red sequins as well. >> i think so. >> let me give you a power pitch update. we featured an e-commerce startup bringing in old school but highly sexy lingerie. the entrepreneur met her career in finance and created luxxie boston. the time of the çstartup it was 6 weeks old. since appearing on power pitch the revenue has grown 750% with sales of $253,000 to date which means the company is now profitable. that's great news. congratulations to stephanie of luxxie boston. we'll keep given updates like this. we've had so many great success stories from people who have appeared on "power pitch." >> i feel like i'm learning something early. i'll go out and try -- a couple years ago we did songs of the online music company.
see you in a bit. >> okay. also watching navistar shares. they're halted right now from trading. as soon as it re-opens we'll let you know what's happening. currently the shares finished up 4.5%. back over to you. let's check the bond market with rick santelli. hi, rick. >> reporter: what a wild couple of days in the marketplace. look at a one and two-day chart. we reached the 185 mark. the hovering year, two-week high yields depending on where we close. look at the two-day boones. they're trending higher. the difference between the two has widened 11 basis points since yesterday's low yields. pay attention to that. 150 is where the market seems to be going. 145 on the spread. look at the dollar/yen. this currency has lost all its momentum of late.
here is just another example of passive funds beating out active fund investing. warren buffett on track to win a million dollar bet that he made seven years ago with some hedge funds. how is buffett doing it? we'll give you the details on this wager. >> 2008 "fortune" magazine first reported this idea that protege partners but a basket of hedge funds together a fund of funds, if you will. they set this basket will outperform a passive index fun. we're seven years into this. look at the performance numbers. the ten-year performance starting in 2008, you had a broader index of passively managed funds. there's a million dollars at least that goes to the winner, charity of choice. take a look at the performance
so far. that's the face-off. here's what's happening right now with where they stand with the bet. because it's a pretty big gap in performance. look at this, buffett used the vanguard total stock market index fund institutional or middle share class. it's a lower cost. meanwhile, protege partner's basket is up 20%. that's a huge amount of outperformance. if you lack at what his choice instrument was the vanguard total stock market index fun it tracks the entire multicap spectrum spectrum. here's the big thing. the share class that's a total fee of five basis points. that's 0.05% per year. here's the thing. over ten years assuming certain performance figures the fund, again, this fund charges about $120 worth of fees over ten years. the average mutual fund in this
category could be as much as $2,400, $2500. big gap in performance fees. >> huge gap. jeff sandler and another guest is here with us. a stunning example of the differences in the marketplace, is it not? >?ç sure it is. the investment cycle does play a big role in determining whether you go active or passive. i think guidance is very important considering that europe has fallen. you're in a threshold here where returns are likely to scale down to the single digit level. and active management will make a much bigger difference here going forward. it's absolutely crucial. it's important that you stay involved in the equity market over the course of the next year. i think there's phenomenal
opportunity here. >> doug do you agree with in general what carmine said? >> i do. the index that mr. buffett chose was a u.s. index, which has really been the best performing market in the world. i'm not sure if the hedge fund index included global securities which would be apples to oranges. the other thing i would say is a secret we found in investing. finding the best manager is important but even more important is finding a manager that fits for you. >> right. >> so important to stay on the ride. the market is a roller coaster. if you're with a manager that you don't understand or with an index fund that doesn't adjust to market conditions, you may want to give up on your plan before it comes to fruition. if you want to close your eyes and hold something for ten years, it's hard for an active manager outperform consistently. that's what the study shows. i'm not sure that's what every investor is looking for. >> that's a very good point. carmine, let me turn to you. what would you be dealing in the
market right now? >> basically i'd stay involved. keep in mind here that since september we've seen big changes. we've seen oil prices fall in half. we've seen long-term interest rates drop by 100 basis points. it's the environment that the markets could move significantly over the next year. oil prices, 40% 50% decline in oil prices over a six-month period have led to the stock market going up substantially over the course of the next year. it almost always rises. take interest rates with long-term government bond yields, the reality is that you can justify multiples in excess of 20. the stock market trading at 16, that's considerable updade potential here. i think investors have to appreciate the fact that we are at a pretty good opportunity at this juncture. >> all right. doug, where would you put money to work right now? what sectors look appealing to you? >> a favorite is going outside
the u.s. right now. the valuation is there but the four es is what we're focused on. earnings overseas are getting stronger that the u.s. that would be a second "e," the euro is weakening. also, energy prices. these nations are largely crude importers. low energy prices is good for them. i first would look overseas. domestically, i can touch on that if you have a moment or if you want -- >> just very quickly. i know when you say overseas, europe and japan. >> correct. >> i just want to mention japan because of the energy. a couple of sectors domestically you would like? >> i like the consumer because of the things you hear every day. unemployment has gone down, wages are starting to rise, house prices are starting to rise. those are good thanfs for sentiment which ultimately leads
to spending. we like the drug retail companies, select areas of retailers that have been left out in a lot of this rally. >> thank you, gentlemen. appreciate it. good to see you both. check out doug and carmine's play on low oil prices by going to powerlunch.cnbc.com to see their picks. powerlunch.cnbc.com. do you want to own a piece of wall street? you can. >> it's being done through equity crowd funding. developments have raised $35 million in equity via real estate crowd funding platform prodigy networks. now, investors get a 6% return along with a share of any profits. real estate crowd funding
yields -- according to crowd medic which tracks capital commitments in real time. it says the industry has gone from zero dollars to $600 million in just 16 months. >> small companies are allowed now to go out to the crowd and get their product validated versus waiting for an inkle investor. if 1% of americans invest what they have at their disposal in terms of assets, it could be a $300 billion market. >> cox says the most popular deals are real estate and technology ventures. its real estate index up 4,400% in just one year to an average of $2.1 million in capital commitments per day. now, right now only a a credited investors can actually participate in equity crowd funding. that's people who make $200,000 a year or have $1 million net worth excluding their primary residence. but the s.e.c. could relax those
rules in the fall. crowd medic index the top 50 equity raises overall. of course, follow all of their indexes at cnbc.com/crowd finance. >> it is the pawn shop for the rich. a website that lets now trade in your luxury watch or ferrari for fast cash. it takes items over $5,000. according to the crowd funding platform our crowd that was a great book years ago as i recall, this week it becomes the largest equity crowd funded project having raised more than $6 million on its site. why would the super wealthy need fast cash? sometimes they do. robert frank is nodding over there. go to powerlunch.cnbc.com to find out how the startups generated more than 17 million in revenue and for our interview with its ceo. sue? we go international, ty. india is climbing up the ranks on the world's billionaire's list to the top three. where does it fall and what country did it push out of the
time for today's power rundown. dominic chu, big brawl down under with one teenage daughter making outlandish demands including a 24 kacarat studded guitar and fine wine for life. >> check it out on cnbc.com. olivia maedead, the secret daughter of michael wright. she got $3 million in his will. >> she's not secret now is she? >> she's not secret now.
she wants $1.5 million house wants a million dollar piano and allowance for the next 77 years with very specific demands including five pairs of shoes for $5,000 each per year. >> $5,000 each for the pair. >> that's right. that's right. >> $2,100 for a pet salamander. >> it's a mexican walking fish to be exact. it's rare. it's $2,000 a year to maintain that sucker. >> look at that. $150 a week for fine wine. boy, she drinks. $150 for wine and $1,200 for alcohol and food. >> this is good stuff. >> $20 a bottle for wine. >> your pet salamander costs a lot, right? >> i have no pet salamander. my dog seems to eat a lot more than that in food. >> india bumped russia out of
third place in the world rankings of billionaires. let's look at that as sue points out, earlier, pointed out to me earlier, dom the indian market has been doing very well. >> it's near record highs right now. their economy, everybody is showing weakness here. there are concerns about growth globally. but it just goes to show you there can be shifts in the way these fortunes are made. when russia's prospects turn weaker their financial prospects affect what's happening with the ballillionaires there those oligarchs are feeling it. india added 27 billionaires last year and russia lost 10. that brings india -- india has 97 billionaires with be they're number three. the u.s. still far and away with 537 billionaires. but the top three, gates warren buffett, they added $52 billion to their wealth last year. that's $100,000 per minute.
>> finally we're calling this one caddie shaft for a reason. a group of professional golf caddies teed off at the pga for treating them like human billboards. they now filed a class-action suit demanding that the tour pay them for wearing bibs featuring sponsor logos. >> right there. he said he's wearing a waste management logo from the waste management feign mentment phoenix open. >> i say yes. >> this is the interesting debate. they have a point. they are advertising for a company. the other point here is, these caddies all have their own compensation or agreements with their golfer as one. also their own endorsement deals at times. >> they're getting paid for wearing that hat? >> remember back in the day when tiger williams had steve williams as his caddie. he made a good amount of money
with endorsements. >> the pga makes $50 million a year from these endorsements. a lot of people in a similar position with sports that could now ask for money. >> valvoline was his sponsor. >> i'm a level one kind of guy. >> dominick robert, thanks very much. you can buy a share of a usc-constructionusc u-construction project in miami. plussing with big headlines you may have missed in this hour of power. "power lunch," back in two.
have you heard of the new dialing procedure for for the 415 and 628 area codes? no what is it? starting february 21, 2015 if you have a 415 or 628 number you'll need to dial... 1 plus the area code plus the phone number for all calls. okay, but what if i have a 415 number, and i'm calling a 415 number? you'll still need to dial... 1 plus the area code plus the phone number. so when in doubt, dial it out!
welcome back to "power lunch." we're watching shares is of navistar. the stock re-opened after being halted for news pending. the company is giving up the guidance for 2015 as a result those shares, again, re-opened for trading up by 2%. just about a little below where they were, sue when the trading halt happened. >> thanks for the update. whirlpool telling cnbc's sara eisen the company had a great fourth quarter thanks to
overseas acquisitions. shares of kohl's at session highs. boston scientific up after posting better than expected earnings due to cardiovascular sales. if you missed any of the stories in this hour, visit powerlunch.cnbc.com. there's a new construction project in miami that offers investors a whole lot more than owning a slice of a building. diana olick is live in miami with that story. >> reporter: it is expected to be a 10,000-foot tower with incredible amusement rides but unlike disneyland, it will also offer u.s. citizenship. we'll tell you how, coming up next on "power lunch." first, here's what's ahead on "street signs." oil is losing everything it gained yesterday. we'll trace the path of oil rightç into the close. why is oil so volatile? can you name any other commodity
welcome back to "power lunch." check out fastenal. up by 7%. the stock is going that way after revenue missed analyst estimates.ç own a share of real estate, become a u.s. citizen in return. that's what one real estate group is advertising. diana olick is down in miami with the details. it looks nice there diana. >> it is so nice here, tyler. rising out of this parking lot on public land at an estimated cost of $430 million, this 1,000-foot tower that's taller than those condos over there, is being compared to the statue of liberty because it will both welcome tourists to the city of miami and also offer u.s. citizenship to foreigners, that is foreigners who have $500,000
to spend. skyrise miami is the brain child of developer jeff berkowitz. it is stunning at least in virtual form with a sky drop ride where you can fall at 95 miles per hour along with about 11 of your best friends. it has a bungee jump-like base jump and a viewing platform that dangles you over the city. miami-dade has put $9 million into it. berkowitz has put in 30 million of his own. the rest is from investors using the ecb-5 program to get a green card to buy into this tower. a minimum of $500,000 is required. critics say this tower will never generate enough tourist dollars to pay investors back and it could in the end end up costing u.s. taxpayers. berkowitz says no way he says it will bring in millions of dollars in tourist money. i asked him about the shape of the tower which to me looks like
a bobby pin. he said to him it looks like a money clip. we have plenty more of the visuals, on realtycheck.cnbc.com. that will do it for "power lunch." >> "street signs" starts now. so much for that. oil falling again as stocks struggling to hold on. welcome to "street signs," everybody, more on oil in the big drop which is wiping out all of yesterday's gains, plus why oil seems to be the one major commodity that nobody seems to be able to predict accurately. plus perhaps the biggest retail surprise in years. we dug out the five highest yielding stocks in the s&p 500. let's get an update on the markets. the major indices seem to be taking a bit of a breather after that big two-day rally. the