tv Power Lunch CNBC February 20, 2015 1:00pm-3:01pm EST
its way to being a triple digit stock. >> rutgus. i like the up side. >> pete. >> applied materials. this thing is breaking out and going higher. >> all of you have a great day and great weekend as well. power lunch starts right now. >> halftime is over. power lunch and the second half of the trading day starts right now. scott, gentlemen, thank you very much. tyler mathison. susan lee in for mandy drury today. >> happy friday. we'll talk about the problems ongoing in the west. looks like one major american company announcing it's really starting to feel the impact. furlows are being issued to employees. >> a triple threat for the great american orange crop in florida and california. cold, port slowdowns, and the drop. why are orange juice futures doing that? going downhill by 1% today and 10% over the past month. >> and a big move into cuba. a new york stock exchange listed
company is moving in. see which one it is and what exactly they're going to do. >> all right. folks, the economic ripple effect from the west coast, port congestion far-reaching. one company that happens to be a supplier for ikea has been hit particularly hard and jane wells has been following this story from the very beginning, and she's live in l.a. hi jane. >> hey, guys. listen up the talks are happening right now, and while reports this morning that a deal was reached last night proved untrue, we may be close. like really los. but we've heard that before. for companies like master craft furniture, that has been a delay so significant up in portland it had to lay off its entire work force. 180 people for two and a half weeks in january. it's concerned its biggest customer, ikea will become impatient. employee david underwood doesn't make dockworker wages and doesn't have much patience left. >> there's little sympathy for the american people, i would think, on this thinging with somebody making that amount of money and the rest of us living
paycheck to paycheck and happy to have our jobs. >> even if there is a deal today, it's going to take a long time to work through. piper jaffray says most at risk are shoe companies like croc steve madden toy companies like mattel and hasbro. also companies like rubbermade and jarden which sells outdoor equipment, and two restaurant chains, not sure why, maybe it's supplies ignite with john's macaroni grill and cheesecake factory. potential beneficiary ross stores because once all that apparel finally gets off the docks there may be a glut, and retailers may not need all of it anymore, but for ross. tjx too. >> jane you know also the west coast, this is an orange farmers worst nightmare. california citrus crop getting squeezed by not one, not two, but three threats all at the same time. this past winter has been warmer than usual in california. now, that actually might be good news for the locals but some bad news for citrus growers.
meantime, we're looking at some warmer temperatures taking place in florida, and then the cold snap taking place in florida, mind you. may freeze the crop before it even grows. that's all bad timing with the west coast. port standoff taking place, as jane was pointing out. also thousands of those oranges ripening and sitting around rotting at the ports and to top that off the six-year drought in florida placing even more pressure when it comes to citrus crops. what's at stake? well, the triple whammy placing $300 million worth of orange exports on the line and orange well, they're down 10% through the last month, and there's some good reasons behind that. we're talking about it all with joel nelson now, president of california citrus mutual which is a trade association for citrus growers. joel, good to have you on the program. if that is the case why do we have these citrus futures then down 10% in the past month? >> well, the juice market is primarily affected by brazil first, and they've got a pretty good size crop, and as a result that amount is going to affect
the futures. the florida crop which has been downgraded over a period of years because of the bug and disease issues they're facing has stabilized this season. their crop is coming in as it did last year. i think that all manifested itself into some lower futures. fortunately for our industry we're primarily fresh oriented until you begin to look at the port situation, and that's hammering our ability to make some revenue for the growers this year. >> and also china having some impact as well given that this week we just welcomed in the year of the sheep, ram, goat, whatever you want to call it, and usually chinese new we're is a big-time where they import a lot of their california oranges, but not the case this year. >> that's correct. you know acorked to usda we supply about 85% of the nation's fresh citrus crop on an annual basis so we're proud of that. 25% of that crop goes overseas to the asian theater, and that is averaged about $500 million a year for about the last three years. now we've approached the peak
time where we would be exporting to all those asian countries, including australia, as a matter of fact, and now that fruit is sitting on the dock. it's spoiled. it hasn't been able to arrive with any sort of quality, and as a result, china is now told us that they're shutting the door down on our industry. it's becoming quite chaotic. up until now we're about $35 million into the hole. this week we would normally be shipping a million cartons of fruit overseas. we're shipping 400,000 cartons at alled. it's about a $15 million hit every week that goes by. >> this says to me that maybe o.j. futures will be going up in the next while or so, and they're not going to stay at these depressed levels. >> well, i think in our particular case the situation for the growers, it's going to be a lost export season because when this port strike gets settled, it's going to take them several weeks, if not months to clear out the clutter that exists at all the ports that we do business with and that's
primarily oakland, los angeles, and long beach. by the time they clear out the clutter, we'll be out of the -- through with the season, and as a result, we're going to lose a tremendous amount of revenue. that affects the revenue on each grower. that affects employment. that affects the opportunity for the consumers to have a quality crop on an annual basis. >> okay. joel, thank you so much for your time. have a great weekend. joel nelson there of the california citrus mutual group. >> fascinating conversation. it really shows you how that port strike is hitting home in a very real way. all right. let's stay out west and talk a little football shall we? san diego chargers and the oakland raiders may set aside their intradivisional rivalry as they announce they will now pursue a joint shared stadium just outside of l.a. erin is a sports reporter with forbes. darren welcome. good to have you with us. what's going on here? two teams, not l.a.-based in any way, though both have played
there before sharing a stadium in the same division? >> right. they both -- they released this joint release last night. what i call a beautiful display of bullet points. essentially what it does is it says while they're looking for a solution within their home markets, they're going to look at the potential, they're conducting due diligence, on what could be a $1.7 billion construction in l.a. that they would share. what is this secret solution that they're talking about? obviously it's public funding. that's what both san diego and oakland want. they're looking at what other teams like the indianapolis colts, the tampa bay buccaneers have done in the past. it's basically saying we're looking at these other opportunities in other markets to try to get those local markets where they currently are to pump out those funds that they desperately need. >> yeah. then there's a third player in this whole unfolding drama, and that is the st. louis formerly the los angeles rams owned by sam who has announced, i gather that he owns some land and he is ready to build if he doesn't
get a better deal down at what used to be called the twa dome in st. louis. >> that is correct. he may number the best position out of all three owners. he has the land in l.a. he seems to be very serious about moving the team but you look at the chargers. you look at the raiders. you look at the rams. these are three teams that are at the lowest level and the top -- or bottom ten of nfl teams when it comes to revenue. they're probably looking at some of these teams in l.a. like the clippers, like the dodgers that have received value wags in excess of $2 billion, and the thing about the fact if we relocate, even if we pay this relocation fee that's around $250 million, we can increase the value of our teams to an exorbitant level to justify that relocation. >> all right. thanks very much. sflo breaking news on weekly oil rig counts. the number of oil investor watch that very closely, and so does
dominik. >> baker hoourz is out with the weekly rig counts. according to them u.s. oil and gas rig counts total to climb by -- the h.i.'s rig count for canada in terms of oil and gas total rigs down 22 to 360. now, we'll break down the u.s. numbers a little bit more granule arly here. oil rigs down 37 to 1,019 rigs. gas rigs down 11 to 289. miscellaneous rigs unchanged. also, to give you the year-over-year comparison, the u.s. rig count is down 461 rigs from the same time last year when it was 1,771. oil rigs are down 406. gas rigs down 53. the trends do continue, and right now we're watching crude oil prices near their lows of the day. susan, again, markets seem to be moving again on this baker hughes oil and gas rig count. the we'll e weekly numbers out today. the headline u.s. rigs down 48 to 1,310.
the canada rig count down 22 to 360. back to you. >> more declines from the record retreat last week. okay, dom. thank you for that. let's talk about m&a. a big telecom deal announced today between a u.s. company and the cuban government. one of the first that we've seen since the white house announced its new policy for cuba in december last year allowing greater diplomatic relations and business deals they think will help out the cuban people. let's bring in chief international correspondent michelle caruso cabrera here with the details on this deal. >> it's called idt. it's based in newark new jersey. they along with the cuban government saying they have struck a deal that will make idt the first american company to revive direct interconnection to cuba. both say the company has applied to the federal communications commission. the s.e.c. for approval and is subject to review. the cubans say they expect the approval to happen. if the deal does get approved it will be the first time in decades that there is direct telephony between the island and the u.s. if you dial cuba from the u.s.
it's routed a third party outside of the united states which will ultimately make the final connection. now idt, if the deal gets approved, will be one of the companies vying for the right to finish that call and hence, get the revenue associated with it. other u.s. carriers could is apply for similar approval to compete in that space as well. the company declined to comment beyond what is in the press release. in that ceo of the company says that this move should provide u.s. customers who want to dial cuba a better price. so more -- little by little we start to see changes as a result. >> that's interesting. all right. michelle, thank you so much for that. now, let's talk about real estate and melissa in san francisco is trying something different to try to tract buyers. josh lipton at story live from san francisco. josh. >> well i'm here in this one bedroom in san francisco with its wall of windows, its updated kitchen, great views, but it's the perk that the seller is throwing in that's really making some attention. we're going to talk about it
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welcome back to power lunch. check out shares of boeing. one of the best performing stocks -- the best performing component in the dow industrial average. a.j. analysts are upgrading the shares saying the company is on its way to trading at $200 per share. analysts saying the company's healthy visibility and robust order backlog will make it a
must own name in 2015. >> a midsize european company. in this past year brookshire is up about 30%. auction companies said to be facing some pressure from markato capital. the hedge fund now asking sotheby's for a new rfo and an immediate repurchase of around $500 million worth of its shares. they own about 9.5% of sotheby's, and the parent company of ann taylor and loft stores jumping on board. said it's working with jp morguon on an possible sales. let's go to the share price and jumping on the back of this news. >> trying something very different.
>> 900 square sfeet. the asking price, tyler, $800,000. there's an issue with this unit and it's a big one in san francisco. no parking space. the listing agent and the seller theshgs came up with a very san francisco solution. they're going to offer the buyer one full year of free rides with uber. now, that perk is capped at $5,000 but it is attracting a lot of attention. >> it's been exciting. tons of action on the unit. not just from buyers but other sellers who are interested to find out more about how we can creatively innovate and do new marketing for their properties. >> now obviously, the seller here is trying to distinguish
the unit in what is a hot market driven by tech money, by demand from overseas investors. in fact, the median price of a single family home now in san francisco is $900,000. that is the second highest in the country. guys back to you. >> all right. josh, i'll pick it up. let's go inside nasdaq's secret surveillance room. this is where fraud lent trading activity is detected. no television reporter has been allowed to step foot inside that is up until today. our eamon javers joins us next.
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>> let's check up shares of caterpillar. the bluechip announcing earlier today it's going to keep its headquarters in illinois. ceo doug overhelmer saying it will expand work spaces to its current headquarters in that state in pea or wra. another big cap stock to watch. >> all right dom. thank you so much. let's get to the bond market. rick santelli is tracking the action at the cme. rick. >> well i'll till it's an exciting day in so many markets. if you look at ten-year yields yeah, they're down a bit. maybe most important is where they broke down from. they broke down from basically unchanged on the year 216, 217. areas you see on the year-to-date chart. what's the fund today? what are traders looking at? the weekend is coming up. the euro versus dollar. the conversation is you don't
really believe greece is going to be out, and they don't. which means as you look at the intraday chart, you see it keeps starting to rally. they're getting close and changing the words and debating. in the end the ecb isn't very good at parenting. they're going to give in. that's what traders think. it's going to be hugely important for the euro. why? because to the up side as it most likely will it could break out of this range, and that is significant. back to you. >> thank you very much. we all know that the nasdaq market side and the heart of times square, you probably have seen it on fast money and elsewhere. they spot potential fraud. eamon javers got an all access pass. what happens when they find it? >> yeah hey, tyler. we're not in times square at all. we're actually in rockville, maryland and this is the nasdaq market watch site. it's a secure facility where they're watching for fraud as
these analysts here are looking at trades in real-time as they come up and they're getting about four billion messages day of coming through their system, and they're using an algarhythm that has 35,000 different perimeters to scan through all that trade activity and look for fraud lent or suspicious activity. they say that these analysts here are getting live alerts within about two seconds of the trade if it's suspicious and last year alone, tyler, they say they spotted 766 incidents that were suspicious enough that they referred them here from this facility over to federal regulators for further investigation, and a lot of those can end up as fines or criminal activity on down the pipeline. it all starts here. now, one of the questions -- they notice the nasdaq is monitoring nasdaq. a lot of folks are asking what about the dark -- i asked nasdaq's ed knight about that and he said essentially that's one area where they still have a bit of a blind spot. take a listen.
>> but right now it is very lightly regulated, and it's subject to potential abuse. we think that can be improved. we think more of that trading can be handled with tighter regulation. >> all the data in these computers. one thing about the twitter pages, interesting to me anyway, they're watching how the news breaks on twitter, and then seeing where the trading starts and in real-time to see if the trading starts before the news broke or if it starts after. if it starts before then they can go in and do reverse the tape and see exactly who started trading. they can't see the names of the people who executed the trades, but they can see the member firm, and they can go to that firm for more information if trading spikes. >> what do we know eamon of those 700 plus reports to finish are a? what do we know about the wrot come of any of those? you said that they can lead to fines or other sanctions?
has any -- do we know what's happened with those cases? >> we don't. we've asked them specifically that question today. what they told me is that they don't forward them along to regulators unless they think there is something suspicious there, but what they can give us is a definitive figure on how many of those 766 referrals have resulted in prosecutions or fines or other federal activity and they say part of the reason they can't give that answer is because they're working in cooperation with law enforcement and other regulatory bodies so it's hard to tell which tip initially came in that led to the fine. they do say they're referring all those to the feds and that they take further action once they send that from this facility over to the federal regulators. >> eamon, inside the secret room at nasdaq. susan. >> hey, tyler. we're heading into the oscars weekend. the 87th academy awards takes place this sunday. now, the impact of a win could mean a big boost in box office sales for the winners, but how much is an oscar really worth?
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>> i'm courtney reagan, and here's your cnbc news wrupt for this hour. the president is fighting back in a speech to the democratic national committee. he mocked republican predictions that his policies would harm america's economy and fiscal health. he used the occasion to talk about what he calls his middle class economics. paul mcculley telling steve liesman that he will not be joining bill gross and janus. he resigned his post at pimco. >> negotiators for both sides in the west coast port dispute are laboring to reach a settlement. secretary of labor thomas perez said if they can't seal a deal in san francisco, they'll take the parties to washington. warren buffett's 2006 cadillac attracted a high bid of $122,000 in a charity auction. that's more than ten times its market value. the autographed sedan with 20 miles on it was auctioned on the
website proxy bid. no woodward on who the winner was. that's cnbc news update at this hour. for now back to you. >> okay. let's check in on gold prices as metal markets are closing right now. we'll go straight to jackie deangeles at the nymex. >> good afternoon, susan. that's right we are watching the melgtszs very closely. we have down side pressure across the board here. let's talk about gold prices because we thought with the uncertainty in the euro zone we may see a safe haven. it certainly didn't materialize today. at this point we're watching gold right now at 1,204 spot 90. meantime, the stronger dollar certainly not helping anything. some people are saying that if we do get that extension or we do get some positive news we could actually dip under that 1,200 level. that is a critical support at this point. george jero from rbc pointing out that open interest is declining, and that shows us that funds have less interest in gold, and talking on some of the traders on the floor here today, they're saying there's not a lot of interest out there. there are better places to put
your money right now. the stock market is one of them than in the gold market. that's the mentality at this point. also want to point out at the week we're down 1.5%. we're up about 2% year-to-date. really hasn't been much of a trade so far. back to you. >> okay. another market flash. dom has an update. >> susan, let's pick up where jackie left off. stock prices versus gold prices. watching shares of numont mining. the gold mining's earnings estimates and sales estimates as well, numont saying the growth projects are doing well. usually when you see gold prices decline, gold miners go with it, but not this time. back over to you. >> thank you very much. stocks holding to some gains right now. there you see the nasdaq flipping over a little bit. bob with all the action there on a day and week of rather modest moves. bob. >> yeah. in fact, very low volatility. i'll show you the s&p 500 at the end here. i just want to point out
exploration and production stocks on the weak side. we didn't get the baker hughes recount. everybody is watching that now. we saw recaps come down but not as much as people thought. a lot of these exploration production stocks which were weak prior to that amount at 1:00 eastern dropped a little bit more. nat gas, we are finally seeing some move in nat gas. coldest day in years here and nat gas has been moving this week. this is the etf for natural gas. one week chart finally moving up 4% today. reacting a little bit. we had been waiting for some news out of greece waiting for some news on this euro zone finance minister meeting. we do not have anything yet, but we have a lot of conflicting headlines about whether a deal or not has been reached. again, we have nothing, but you can see this is the reet etf. it started moving up a little past 1:00. we have no confirmation right now. you can see other etf's associated with europe moving on higher volume as well. look at the german etf here.
that's ewg. pull that up. you'll see that also popped up around the time we started getting headlines again. no confirmation on whether there's any deal at all. finally, appropriate of what tyler and were ebbing spoog by. the s&p 500 is in a small range. you see we've moved up here, but generally we've been in three, four, five point ranges throughout the day, and, tyler, remember earlier in the year when we were routinely in 20 and 30 point ranges on a daily basis, dow this week has moved at 125 point range. we were moving in 300 point ranges on a daily basis. just a couple of weeks ago. >> br ertha coombs is uptown. >> the nasdaq itself is a mover today. the nasdaq composite getting closer and closer to that all-time peak. we're now about 110 points away from the all-time peak. it's really been a story about
biotech. biotech for the week up 3.5%. that's a major biotech index. they are hitting fresh highs continually. this continues to be the big momentum play for a lot of investors as a lot of these big biotech names have new drugs that are coming on the market and a lot of them are very expensive specialty drugs. a lot of them at all-time highs today. some of them weren't really big players back when the nasdaq was first at 5,000. one of the big players today, that's a big mover, intuit was. it was on the nasdaq 100. and today it hits fresh all-time high. reporting better than expected earnings and also saying that discovery found about fraud, people using electronic filing in order to commit fraud for tax filing and have not been an impact directly on its system. its system was not reached in terms of those discoveries. they're likely to see it even more business as the obama administration extends a new enrollment period during the tax
period for people who are facing penalties for not having had coverage. finally, also some of the big names that are all-time highs here today include ross stores. the nasdaq omx itself. sigma aldrirh is one of the only ones that was a member of the nasdaq 100 and today it is at a new high and, of course momentum names susan, are also attracting some love today. tesla, which didn't even exist 15 years ago. we didn't even think about an electronic car, and now we have apple reportedly wanting to have an electronic car by the 2020s. >> thank you. we have stocks turning around wiping out a good chunk of those earlier losses. starting the day lower. as you see, the dow and the s&p now positive on the week and the nasdaq setting another 15-year intraday high. let's talk about the markets. we want to bring in hugh johnson president of hugh johnson
advisor and president of the -- family of funds. let's start with you. you're saying stock markets are maybe 4% over valued but the nasdaq pushing towards 5,000. is that definitely over value territory? >> yeah. you know i think that the reason we're seeing such decline in volatility as bob mentioned, is that i think when we start to get up towards that 4% to 5% over value, you see a lot of investors particularly professional investors start to dig their heels in. it's really tough to get yourself to buy when we're over valued. i think it's -- it doesn't surprise me that we're getting lower volatility, and i think we're all -- it's all of it within the context of we'll move to 4% to 5% over value which is where we are now, and then i think we'll decline to 5% under valued all within the context of a gradually rising mid single digit, 5% return that we're going to get this year. trendless and volatile is really the word that i think describes the current market and the
market we're going to see for most of this year. >> yeah. michael, what do you think? trendless and volatile is how hugh describes it. do you agree? >> well volatility certainly cooled in february and i think some of the uncertainties in january alleviated themselves at least from the short-term. you have strengthening in u.s. data. better employment numbers. you had the fed continuing to make benign comments on interest rates, and the u.s. economy strengthening, and then stocks had a good february and have led up to where they are today. yeah i mean it was very different than january, and i guess the first two months of the year is that we don't know which direction we're going. with interest rates, with geopolitical issues, with central bank divergence and the rest of the world and whether the u.s. economic growth story is sustainable, whether we're going to see a weather issue on q1 this year gdp like last year we'll see what happens. >> whether or not we get a deal on greece it's moving the markets right now. hugh i want to talk about let's head out world has changed because if we're going to talk
about technology, guess what those are pretty good dividend plays these days. you throw in valuation metric. >> yeah. that's really the interesting part. dividends are going to count in the kind of environment that we're describing which is a mid single digit environment. dividends are a good cushion. something they're going to count. i think that's one thing to say. the second thing i would say, which is really important, is that you are not going to find dividends at least in the right places of all those familiar places like utilities and telecommunications, they'll be there. the valuations and utilities in particular are very stretched. what i would suggest if you think dividends are important, and i do i think you should look in technology and look at companies like say, cisco or microsoft. two companies that have very generous dividend yields. they're up just under 3%. i think they probably should be bought on a good buy in the current single digit total return environment. >> yesterday the dividend push
really helped the likes of coca-cola, kimberly-clark. how important are pay-outs right now from companies to you? >> well very important. i mean one of the things we look for is good supportable dividend payments by earnings. companies are doing well. corporate earnings have been good. companies are choosing to return some of that to shareholders and higher pay-outs. we generally look for a nice diversity in our shareholder returns, whether it's buy-backs, dividends, reinvesting in the business, or a combination of all of those things and certainly if there's not organic growth opportunities or the rates are returned on reinvesting are not good enough for business giving it back to shareholders in buy-backs and dividends is a good thing from our perspective. >> okay. one more quick question for you because we did have the baker hughes rig count. you are saying buy energy stocks with oil. >> getting the timing right is not easy but if i take a look at global supply and demand denies, even though we know they've changed, we're really
talking about $60 to $70 at west texas intermediate. you should those conditions in getting the timing right, it's extraordinarily tough, but i think under the conditions of $60 to $70, we're going to see a real move in energy. i don't know what the timing is. i think it's sometime this year and i think it's soon. i this that's a place where you can speculate. >> all right. hugh, michael, thank you for your time. have a great weekend. >> let's see what they say they would be buying and just a reminder for you, power lunch.cnbc.com. tyler. >> susan, thank you very much. lots of wet weather to watch out for throughout this weekend. the weather channel's samantha moore in atlanta has the details. >> i'm meteorologist samantha moore, and we're talking about that cold air that has been entrenched now over the eastern one-third of the nation, and now moisture moving in off the gulf of mexico is going to create another ice threat here across much of arkansas, southern missouri, and western tennessee.
then the rain moves in all across the gulf coast as we head into the weekend, and then into our nation's capital across the mid-atlantic as we head into our saturday afternoon and then snow falling to the north. our main ice threat here is going to be a place like st. louis and into nashville. we could end up seeing a quarter of an inch of ice, and that's enough to cause problems on the roadways, and then the snow. it could be quite heavy across much of the ohio valley into west virginia. about one to three inches expected here in the northeast and across much of boston. no rest for the winter weary. >> no indeed. all right. as the nasdaq composite heads higher, so does -- i love this song -- so does the nasdaq 100 index rising above 20% for one year. "uptown funk" in the nasdaq 100. delphi management stock, scott is uptown with some funk. he is going to give us his nasdaq 100 holdings right now. plus another funky guy, brian sullivan in frigid boston for a look at how business is carrying on in the deep freeze.
look at that. take it away, brian. >> all right, ty. you need some snow? i'll be happy to bring it back. we are live in boston but it's not about the weather, guys. as you mentioned, legendary boston based investor will join us. he has a bundle of stock picks. the rest of your menu shall we say, you like that we got a couple of other investors. art hogan coming down, braving the cold for us. a woman who wrote to netflix begging them to do something for boston is here with her request. it is really burning up the internet as well. how do you operate as a business you should this kind of snow? we've got a bunch of mall business stories and how people are literally digging out here in boston. hope you dig that. that's coming up right after the break. stick around.
the problem is some of it's in this lab. some of it is in her head. some of it's in this new journal. and the rest of it is in your personal medical history. ibm watson can not only read this data, but understand it. it's trained by doctors. and it's always learning. it can help find hidden correlations and help your doctor recommend treatment options for you. there's a new way to work and it's made with ibm. >> we expect 20 minutes from now to see a news conference in brussels from the euro group. this would suggest they are going to conclude their big meeting about the greek bail-out
situation at this point. we know we notice they've said they're going to have a news conference at the top of the hour about 20 minutes. sometimes they get delayed, but the mere fact that they're willing to announce that they're going to have a news conference suggests that they are making progress. one of the french representatives in the meeting has, in fact, tweeted out they've made progress and greek government officials not to cnbc but to other outlets have been saying there's been a lot of progress as well and they're optimistic about the deal. let's see if we have an announcement 20 minutes from now and see what it is. it just might be a statement that they can all agree on. not necessarily a full deal susan. >> all right. we'll be waiting for it. michelle, thank you so much. we're going to head up to frigid boston once again and brian sullivan is standing by. it sure looks cold. >> yeah. it's one of the coldest days in history. on top of all the snow and more coming this weekend, they thought it would be zero degree temperatures just to complete the picture. the people here this is boston strong. let's swroin actually one of the strong ones out there. at least in the investment world, and that is scott black
of delphi joining us with literally probably less than a mile away from where we are right now. scott, thank you very much for spending time with us here on power lunch. first, before we get into your stock picks, what do you think of the weather? how are you getting around? how are you getting to work? >> i'm driving in. it's taking a little longer but for the record i grew up in portland, maine, and i'm used to cold weather and snow. this is nothing new. >> you are shirtless basically every day now? you just walk around -- anyway not a packer fan. all right. let's get into some of your investment thesis. are you surprised by the resilience i of the u.s. equity markets right now? >> not at all, to be frank with you. the market -- estimates have come down. they were about $132 for the s&p on january 1. they're about $119 right now.
look at the long and the ten-year treasury the customer -- if you look at europe and emerging markets, it's the global demand that's weakened. so we need another for the s&p. >> you know most of the guest that is we have had on seem to be saying that europe is a better place right now overall than the united states. you disagree with that. why? >> okay. a couple of things. i do a lot of bottom up screening on multiples, and i look at the ftse 500 recently. there aren't that many cheap p.e.'s out there. secondly, if you are a u.s. dollar denominated investor you have currency risk. you know the euro is 137.
it's 114 as we speak. if they do raise interest rates later in the year, the dollar will strengthen some more because you have qe 1.5 down there in europe, and that means you're going to have more currency loss. i think the united states it the best place to be at the current juncture. >> let's get to a couple of picks here in the media space. our parent company comcast and liberty media, you like them both. how come? >> okay. comcast we've owned forever. nice thing, on a valuation standpoint, it's dirt cheap. it's about 8.6 times enterprise value to ebida trailing. it's about eight times on a forward basis. i suspect a lot of it's being held back by the time warner cable merger. you have up earnings and up revenue up 4% 5%. your margins in the cable sector -- not going to be cable networks, regular cable tv comcast, still over 42%. the margins have been improving. nbc parent has been doing
better. company generates a lot of free cash. i think at eight times enterprise value, it's a give-away visa vi other media stocks. then the other one -- >> select liberty. >> liberty global. it's liberty global. it's actually run out of colorado. it's john malone and john malone has always made money for his business partners but they have roughly 27 million subscribers throughout europe. they're strong in the u.k. it's the old virgin media. they just picked up you know zigo, in the netherlands, germany, switzerland. that's roughly 70% of the business. the revenues are growing at a 4% or 5% pace. they got $2.50 in free cash last year. hereby going to go from a loss position to a profit of 60 cents this year. selling somewhere about ten times this year's forthcoming enterprise value, but for the kind of growth that's ahead of us and the synergies from zigo i think it's a good deal
overall. >> okay. we're not going to get into express scripps, checkpoint and sandisk i believe it was. scott black of boston. thanks for taking time on your frigid friday for us. we do appreciate it. have a great weekend, buddy. stay warm. stay safe. thank you. >> thank you very much. >> susan and ty we came up here. it's not just for the weather. we have a great line-up in the 2:00. a bunch of investors, including the co-on of the boston celtics. they made a lot of trades yesterday, but we'll talk about investing as well and maybe, maybe, a little bit about the weather. how can we not? back to you. >> i'm telling you brian, i know you're familiar with the upper peninsula and michigan but it is cold there today. go ahead. get some snow. there he goes. whoa! >> it's got to be cold literally when you can hold a snow ball like this together. it's ice everywhere. it's unblooechl. >> unreal. brian, we'll see you at the top of the hour if not sooner for more "power lunch" from boston. in a much warmer client the
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>> wal-mart in positive territory. the company was trayinged down earlier today and was one of the worst performers in the dow. barclay's saying the company is unlikely to see near-term benefits from its increase in wages. wal-mart now adding about four points overall to the gain in the dow. back to you. >> all right, dominik. thank you very much. the 87th academy awards happened this sunday. most nominees say the nomination itself is honor enough, but what is winning an oscar really worth? for all the parties involved especially the studios. we crunch the numbers in los angeles from the red carpet. hi julia. sfroo hi tyler. well, an oscar win's impact on the film's nominate thissed year will be bigger than err. why? it's because this year's nominees are actually the lowest grossing groups since the
academy raised the best picture nominees to ten back in 2009. with boyhood, theory of everything, and whiplash all grossing less than $40 million at the box office in the u.s. now, the smaller the box office of a nominated film the bigger the boost it gets from oscar attention. best picture winners earn nearly $14 million more after winning the gold statuette than their fellow nominees. that's according to a world study of winners from 2009 to 2013. even the losers still cash in. oscar nominated films remain in theaters on average about twice as long as others. the studio that's best positioned to cash in is fox search light. it has 20 nominees. more than any other studio. it also has two nominations for best picture. grand budapest hotel and frontrunner bird man. the film with the least to gain from an oscar win is warner brothers "american sniper." it's already grossed more than $300 million in the u.s. more than all the other best picture nominees combined.
now, sniper has benefitted so much from controversy around the film. an oscar win, it's unlikely to make that much difference for how it does from here on out. tyler. >> that's very interesting. the smaller the film the bigger the up side basically, right? >> absolutely. think about it. if people have already seen a film you know it's not going to make that much difference if it gets a lot more attention, but if a film -- most people don't even know about it yet, if it's a small indy all the attention of all of the people out here at the oscars on sunday night makes a big difference. it's just free publicity. >> julia, thanks very much. euro group holding a news conference we're told at the top of the hour. is a bail-out deal for greece in the works? what will they say? we'll give you the very latest next on "power lunch." you've got to make every second count.
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and drive forward with broader possibilities. cme group: how the world advances. we are now at session highs for the dow industrials. up 112 points. nasdaq up 18. the s&p well above 2,100 on the back of a seven and a half point gain. >> some markets have turned around on reports that we might get a deal. is a bailout on the way for greece? let's bring in our chief international correspondent, and what are you hearing, michelle? >> the euro group has said
they'll hold a news conference at the top of the hour. we're just moments away from getting an announcement of what we believe will be some kind of joint statement that will be put out by the europeans and greece as well. we'll wait to see what the details of that. greece had wanted a six-month extension with very little conditionality, but we know they caved to a lot of different commitments that they were going to have to make in order to get some kind of agreement out of the rest of wrurp. we'll see. now, the greek finance minister was very optimistic when he walked into this meeting hours ago. take a listen. >> i trust that we are getting that one. the good government has -- the extra ten miles, and now we're expecting our partners to meet us not halfway, but one-fifth of the way. >> they were asking for things like leniency on their primary budget surplus. we're just saying there may be some wiggle room there. details remain to be seen and bottom line, they still have to
hammer out the final deal which is a big, long document legally binding. >> and there have been a lot of fits and starts here earlier in the week. >> yes. >> reports that there was a deal that then quickly melted away. >> what i'm hearing is this looks similar to what they almost degreed to nearly a week ago. here we are again. >> i thought last night germany said that we're not going to agree to all these terms. >> right. right. we're going to find out moments from now. >> stocks again, at session highs. michelle, thanks very much. >> thank you for having me. >> we took a vote. we said you can come back any time wrrn. >> thank you. thank you. >> thank you all for watching "power lunch." that's the first hour. now snow business. brian sullivan in boston. bri. >> thanks tyler and susan. well they say there is snow business like snow business right? excuse that pun. that was a terrible way to start the show. welcome, everybody, to the second hour of power lunch. we are live in boston. why not? number one, it's a great city. it's a financial hub. apparently they've had some bad weather, but you guys know that. it's not the only reason we've
come here. we have a big line swrup for you. we have great investors, more stock picks for you. art hogan and mike vogasang. they're off my left shoulder here. they'll be joining us, and one of the co-owners of the boston celtics, bane capital, steve, will join us, and a woman, melissa, who wrote an open letter to netflix begging them to do something with "house of cards." it's tearing up the internet. she's our guest as well. this is where you say i went to harvard. how do you like them apples? >> that's true. right down the river, brooen actually. i actually lived in boston for a little bit. you know what buck up brooen. it's cold there. it's cold here in new york for that matter. >> they're strong. they're -- boston is strong. >> boston strong all the way. cold out there. hot in the markets. the s&p 500 quiet on the surface, but we are sitting at session highs right now. actually, during the session we hit a new high for the s&p 500. some important milestones being crossed on the broader markets. as for the movers that we're watching here watch tesla.
this is the second straight day of strong gains. also, the second day that tesla has decoupled from the price action in oil. remember, yesterday morgan stanley pounded the table saying a record could be on tap for shares of tesla if it executes on the model x. that stock is moving up nicely. we're also watching shares of apple. bloomberg out with a report saying by 2020 apple could be out with a car which would, of course coincide with when gm and tesla plans to launch their lower end ev electric vehicle, that would go for under $40,000, but roun a single charge 200 miles. mohawk, one of the best performers in the s&p 500 right now, better than expected fourth quarter, and they cited a myriad of things pushing the business higher from low interest rates to, you guessed, it finally we're hearing it lower gas prices helping the consumer. as we are at session highs on the s&p 500, as we are hitting new records on that index, we are seeing a stealth sort of defensive tone in the markets as we are expecting that euro group news conference to start right here at the top of the hour. check out the action. the bond market tlt making big
moves in the session. up by just about a half a percent right now. it was up more than 1% earlier in the session. we are seeing some big moves also in the crude market. take a look at the action there. we got the rig count numbers before. we had some movement on the back of that. we are now seeing wti down by a percent, and brian is in the cold, and that is exactly what is moving the next two products that we're watching. nat gas popping. this is the -- it is higher by more than 4%. heating oil is the primary method of heating a house in the northeast. it is up a whopping 6.3%. brian. >> yeah. you know what heating oil, those higher costs might take a little away from the savings of the higher gas prices. that is a big cost that people face. melissa, thank you. referenced hot. we know it's cold. so what. boston has been hot. we launched on power lunch a couple of weeks ago and we called the power city indexes. 29 metro markets, the 12 biggest stocks by market cap in each one. i ran those numbers about an hour ago before the show began.
guess what. boston is one of only four of our power city indexes where the 12 biggest stocks are all higher over the last 12 months so boston has been strong from the stock market perspective. mamz like iron mountain the records keeping company, boston properties, boston scientific all have done well. boston, one of the best cities from the stock market over the past 12 months. let's bring in a couple of boston-based guys that you cnbc viewers, listeners know very well. art hogan and mike great to see you guys in your hometown. pleasure. all right. i like it. no ties. you're tough where no gloves on either. all right, guys. first off, how are you doing, by the way? >> doing great. >> what do you make of this epic, you know, what do they call it, alaskachusetts. >> the average temperature on this day in february over the course of history is 40. this is a little colder than we're used to. >> has the city done a good job? has the government done a good job? we talked to some people last night to say maybe not.
>> the frustration level is high. the amount of snow is so much of an out liar. we normally get 40 inches of snow a season. we've gotten double that in three weeks. it's pretty tough to expect them to be able to deal with it but -- >> i don't know what they're going to do with the oil -- with the oil. they had oil. the snow. where are they going to put it? >> in the harbor. >> they have three giant snow melters. >> this still aren't working apparently. >> i think they bought them from the mta. >> let's get into stock picks. everybody knows it's cold here. you guys having a good time on a class trip? fantastic. jack in the box, yelp and our parent company -- second comcast pick in 20 minutes. that was not planned sfwloosh is that right? >> that's great to hear. i love scott black. i wish he was here with us. the jock in the box is the first derivative of cheaper gasoline prices. when you save money, the first thing you do is go tie restaurant.
later you buy things line refrigerators and sweaters and khakis. they've got jack in the box that has the best thing on bread right now. man, they've got quidoba. if you separate those two, the stock might be a double from here. >> wow. >> covers restaurants. it has for the entire life. it's his favorite name right now. >> jack in the box. bob is a great analyst. we have him on a lot. yelp, same kind of rationale? had. >> i don't know a person now that travels to someplace they haven't been and doesn't try to figure out where they should go. you don't call people up who li there. you go to what people are writing on-line. you get free reviews where people aren't biassed. they tell you exactly what they think. they're doing a lot more in the local markets. oh by the way, they fit in the category of cisco just told us yesterday you know whether you are cisco or apple or facebook or alibaba or yahoo, they have a pile of cash zoosh did you pick comcast because i was here in person? it's our parent company. we have to say that. it's a good organization.
>> it's content delivery. it's been one of the best performers. oh, by the way, you look look you've got -- i want to give you something. this is a warmer hat for you. i think you'll like this one better. >> i can't put this on. >> of course you can. >> i almost brought a patriots had hat. >> first off, what do you make of the market strength? good look at today? is it because there's headlines suggesting that maybe greece is going to finally figure out a solution with the euro zone? >> i don't know i don't think you can invest on greece. i think the market is turning through the last three or four weeks of really good performance. we're sitting at all-time highs. i don't think there's anything that will get in the way of the market in the short-term, so we're churning around at the top, and we're going to get through some of the overhead. >> by the way, my trusty producer kevin, another good irish guy, just put in my ear saying it's the first record high for the dow of 2015. today, a few moments ago. it has to be your appearance. cnh. sfroo cnh industrial.
the old cnh. case new holland. they compete with dooer and caterpillar. >> john deere had terrible news. you're going after -- you're buying one of their competitors? >> both of these are really boring, uninteresting value ideas, right? the first is cnh industrial. it's a new spinoff. they're basically controlled big chunks of their ownby the folks that own fee fiat and chrysler. this basically is in the category of things are so bad, they can't get any worse. the stock is down a ton. it pays almost 3% dividend yield. beginning to turn around. a couple of their smaller businesses, not their -- some of the other businesses are beginning to bottom and turn around. it's come down a long way. >> wiblg, the other one. >> las vegas sands deal. gaming. play. they have five casinos. they're opening a sixth. it looks interesting. almost a 4% dividend. you got to buy this stuff when it's low. you can't buy it when it's high. >> just because i like you guys.
>> nice. >> this is going to cost me my new york buddies, by the way. >> this is good. this is good. thank you. mike thank you. appreciate that. five stock picks there. jack, yelp comcast, yhhi and las vegas sands. have a great weekend. >> take care. >> stock picks for you. we have a lot more coming up but we know the snow is here and the city has some difficulties. nowhere to put it. some of the burners -- justin will you hold this hat? there's nowhere to burn the snow off, right? guess what though these things have cost a lot of money, there are people that are making money off the snow. task grab right? basically getting paid to do something that other people either can't or don't want to do. there are those making a pretty penny if they're willing to put their back into the snow shoveling business. look at this. >> this winter has been crazy, as everyone can see, definitely out here. it's been kind of interesting. definitely getting a lot of tasks to shovel snow. everyone wants to get their car out. doesn't have the time or has
injuries or anything like that. i'm working with a lot of people that are either older or don't -- aren't able to shovel out themselves. the last storms i've done about 80 hours worth of shoveling. 48 hours in the first four days after the first big storm. through the task rabbit system i've been able to get a lot of work. in the last four weeks i've made about $2,500 just from shoveling. i've been a little bit tired different days but it's got me a lot of work, and i plan on going snowboarding after this so i'm all right with the snow. >> he can probably go snowboarding here. fwood for him. he is making good coin. he is putting his back into it. unfortunately, we have herd some stories that people gouging on the side for x amount of dollars. i'll get this done for you. please do not do that. a lot of people in a time of need. got the irish music going. how about black 47 perhaps. play that. a lot more coming up from boston. we've got steve and the boston celtics. cat, an open letter to netflix urging them to do something with "house of cards."
last five years. the bank of japan, printing money. easing credit. it has benefitted the nikkei 225 in a big-time way. >> no coincidence qe there, 15-year high. qe here record high. pimco chief economist handing in his resignation. this is after he rejoined the firm nine months ago. mcculley, a long-time co-founder says he will not be gross joining at janus capital, and you know bill gross very well. you interview him often. interesting news here. >> paul and bill are very good friends. he also probably just wasn't able to speak for it because at that time paul was at pimco. he brought him in to help him out. once bill left pimco, it was probably clear that paul was
going to eventually follow him out and paul being as he is sort of that staten virginia southern boy that he is is leaving his future wide open. it will be interesting to see where he ends up. also, if he lets the beefrd and the hair come back. >> yeah. that's a pretty interesting look. i mean, nothing compares to your hat, brian, today but, you know that, the beard, and the hair is an interesting look. >> this is shameless sucking up to the good people of boston. there's nothing else on this hat. cat, come over here. cat, which stocks are your favorites? i'm kidding. shs a lecturer at northeastern university, and the reason she's on this fine program today is she wrote an open letter to netflix begging them to release "house of cards" early and only for boston i assume or maybe for everybody. cat, welcome. good to see you. are you surprised by the reaction that your letter has gotten? >> i am. i am. at first i wanted to write just a funny lighter note to boost the spirits of the people of
boston, but now i'm kind of getting serious about this. >> why did you do it? why? >> oh i was at home. it was the third blizzard. i went to see when it was coming out because i knew "house of cards" was coming out in february. realized it was a week later. i felt you know that i needed to do something. >> have you heard back from netflix at all? >> i have not. >> now, are you saying just release it to everybody or just for boston? >> well -- >> do you think boston deserves special treatment? >> you know let's do it for everybody. let's do it for everybody. we're all in this together. >> what have been some of the other -- aside from us finding you, what have been some of the other reactions? have you people say, no we want to wait and build the suspense or do they say right, on cat? >> right on cat. somebody said i should be mayor. >> what -- where is that -- >> i don't want that kind of responsibility. >> how are you getting along? do you have a family? >> i live with my partner and we're all right. you know it's kind of hard -- >> do you get out. grocery stores have anything on the shelves? >> as i said in my letter whole foods is out of kale which is
problematic. s we have a lot of icecycles. >> organic icecicles. >> whole foods is out of kale? >> it's out of kale. >> that could be a mob scene in certain markets. >> thank you for coming out. i would say stay warm but it's impossible. have a good weekend. >> bye-bye. >> hi how are you doing? you having a good time? where are you from? >> ireland. >> hi. >> can i have that hat? coming up after -- coming up after the break, more from our friends, and we'll talk to car dealers about how they're managing. more on small business, a co-owner of the boston celtics, and danica patrick and denny
hamlin getting into it a little bit last night at mass car daytona qualifiers. we'll give you the story behind this incredible video coming up. say, you're watching cnbc. more after this. >> watching cnbc. more after this. tigers, both of you. tigers? don't be modest. i see how you've been investing. setting long term goals. diversifying. dip! you got our attention. we did? of course. you're type e* well, i have been researching retirement strategies. well that's what type e*s do. welcome home. taking control of your retirement? e*trade gives you the tools and resources to get it right. are you type e*?
>> live from boston. we give you investment advice. we talk for big-time investors on cnbc but we're also about the businessman, the small business out there that really in this area has been struggling. now, january and february tend to be slower times. the car business, they still need to sell cars. it has been a very difficult time in boston for the car dealers around here. we spoke to joel of honda cars of boston about just how this weather has impacted their bottom line. >> i have never seen a winter like this. it's been a tad extreme. no treat by any stretch of the imagination. the last four weeks storm after storm after storm, but you just get there early, you move the snow, you clean them off, and you try to move forward, get the customers on the phone, and make it easy for them to do business with you instead of hey, let's come out. more stuff over the phone and work more over the internet as
much as we possibly can. this being president's day weekend, versus last president's day weekend, massive drop. we did about 120 cars last president's weekend. this president's weekend maybe 75, 80. at the end of the day as frustrated as you are, you still got to do the job, and you know i live my whole life in massachusetts. i'm not going anywhere. this is just what you deal with. >> all right, joe. good example of boston strong. hopefully those car sales will be made up. folks, it's tough times. the restaurants that we've walked around here they said listen, 20 30, 40% speaking of cars, let's talk about car racing. it got a little heated. denny hamlin she spins. bad wreck. patrick didn't like it. eric cnbc joining us now, and is he with a guy that knows a
little something about nascar and gasoline? eric, are you talking to ed watkins. he is the guy that fills up the cars and is responsible for a lot of this stuff. how is low gas prices impacting nascar? >> they call him big head on pit row. if that was him there yesterday, i don't think danica would have been shofing him in the chest. ed talk about what it's like just this week alone? how much gas are you going to be using? >> daytona is really, really neat. it's a great race to be a part of. it's our super bowl. we're down here all weeklong. we had the big unlimited on saturday night qualifying on sunday. we had to get -- had the big duals last night, and then a little bit of track time today, and then the big daddy of them all, daytona 500 on sunday. on sunday we'll be looking at four tires and fuel throughout the course of the day, depending on the way pit strategy goes, and one cool thing i get to do that you guys don't get to do. i get to fill these race cars up in about 11 seconds. >> show us that gas tank you
have right there. how big is that thing? how much does that hold? >> this thing holds 12 gallons of fuel. it's part of racing. it takes two of these to fill a race car. we can use two of these and fill the race cars up. knocking out all these lugnuts. nascar has got the cameras there looking at, you and we have to be on pretty much tip top shape coming off the wall. two tires -- both of these cans we can fill it in about 11 seconds. >> how heavy is that thing? >> each can weighs about 100 pounds. >> all right. thanks. thank you, ed. thanks a lot. have a good race this weekend. >> oh great. thank you. sfwroo all right. thank you very much. interesting stuff there. i'm going to call it right now. jeff gordon wins the daytona 500 this weekend. hey, let's hear it for the guys in their 40s. i think gordon's last 23u8 season ends up getting it done. speaking of getting it done we're not done. coming up, we have the close of crude on the week. the first record high of 2015
and steve being one of the owners of the boston celtics is going to join us here with his opinion and his investigating advice of where you should put your money right now. we roll on right after this. we needed 30 new hires for our call center. i'm spending too much time hiring and not enough time in my
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>> in exchange for helping a wealthy donor's business. the justice department will seek an emergency stay to block a judge's decision and allow eligible immigrants to apply for benefits granted under president obama's executive action. with the fda has approved medtronics device to permanently treat varicose veins on the leg. this is some work by sealing the infected veins using an adhesive agent injected through a catheter. med tron ix' stock is higher on that news. breyers has issued a nationwide recall on allergy alert of one specific product. one and a half quarter containers of no sugar added salted carmel swirl. it may contain almonds that are not listed as an ingredient on the label.
that's cnbc news update for this hour. for now melissa, back to you. >> thank you, courtney. a final oil trade for the week. let's get to jackie deangeles in the oil pits with a close. jack. jackie. >> hi. reporting from the nymex. i'm jackie deangeles. we got the oil closed here. we're looking at april crude right now. down about $1.03. a couple of things i want to point out from the down side pressure here. first of all, the iea report -- the eia report showing that crude stocks earn a record high. 425.6 million. also the numbers that we saw out of pushing a six-year high. these all putting pressure to the down side. we did get those rig count numbers out as well. down but less than expected. traders saying that if we break through this 50.40 level in the electronics session or potentially on monday you will see the 40s again from here. back to you. >> all right. jackie deangeles, thank you so much. you mentioned the rig count.
let's get to dom on the count for that. dom. >> you know we're going to go to dom later on. let's check in with bob on the floor of the new york stock exchange. bob, just about 90 minutes left in the trading week. what i'm noticing here in the markets. financials sitting on session highs. nice gains. bank of america and citigroup. >> bank of america big help with the dow. important thing is we are waiting for some news from europe. the euro zone finance ministers were supposed to have a press conference in a statement a little while ago. that's been put off and now it's apparently 3:00. let's hope we get some news before the market closes melissa. take a look at grek. that is the greeks etf. there have been all sorts of conflicting comments about whether or not there is a deal. we don't know. you see the greek etf there on an intraday basis popped up.
>> when you get the dow industrials up 0.4%. so far in the week. usually don't have that kind of move. this is year-to-date. that particular sector has now stabilized. as for next week i couple of interesting things going on. janet yellin will be testifying in congress. this is what used to be called the old humphrey hawkins testimony. mario droghi will be testifying in the european parliament talking about the ecb. we'll be hearing from some major central bank officials talking to their various parliament. melissa, back to you. >> thanks so much. zirchgs speaking of dom, we try to get to the floor. he is ready now.
dom, you got the recount numbers? >> we do. we want to recap them for you and go into more of that detail here. oil and gas rig counts have become a huge focus to pick up where bob left off on the xop, the exploration and production side. if you look at the rig counts first of all, let's go to the u.s. side of things. we are down 48 rigs from the same time last week. it was 13.58. now it's 1,310 rigs. that's just the u.s. side of things. if you follow me to this side you'll see canned wra is down about 22 rigs from the same time last week. 382. it's now 360. we will, of course want to focus specifically on the oil side of things. the oil rigs themselves that's been the crude oil price. that's where it's really been affected. take a look at this particular chart here or this particular graphic. with oil rigs themselves you can see they are actually moving as well. again, oil rigs now 1,019. that's down 37 from the same time last week. that's the u.s. oil rigs only. it excludz miscellaneous and gas rigs. on the canada side we are down 14 rigs.
again, it just goes to show you as we dig a little deeper it puts a lot of these numbers up on twitter as well. melissa, just in case you want more detail. for right now go to the summary that we have. >> the bottom line is it isn't as big as a lot of people think. >> thanks for that. let's go to courtney reaganan with the market flash. >> let's check out shares of ariad pharmaceutical. it plans to mount a proxy fight and look to replace the ceo, which r nbc meg terrell reported last week. the activist hedge fund is run by the team that formerly led health care investments for carl icon. alex and richard millimulligan. area stocks has come under pressure after its cancer drug was temporarily pulled from the market in 2013 over safety concerns. you can see shares there up almost 11%. melissa. >> thanks for that. still ahead, five big calls
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tools. visit a branch, call or go online today. ♪ >> five analyst recommendations every day trying to find opportunity, melissa. i call today's street talk those three minutes of the show where i have to take my glove off so i can read the script off my phone. >> let's started with abvi. it's a great entry point on avv here. they have a lot of growth
drivers. their target price is $80, so you can see a pretty good amount of up side according to jeffries. >> and the stock is down about 13% from its december highs. concerns creeping in the marketplace about the patent in 2016 with the pharma companies, and it's always about the pipeline. up next here american railcar, raymond james raising its 2015 estimates on higher railcar deliveries and margins. still sticking to the under perform rating. it reported earnings and was a miss. the analysts though see the tank cycle driving potential benefits from the department of transportation on those crude tanker cars. more likely from retro fitting as opposed to just outright replacement of the cars out there. >>. >> and i would not look to derail that thesis. however, i will say this there are nine analyst that is cover american railcar. the average price of those nine analysts? $52. below the current price. not everybody is bullish on the company. all right. stock three. dsw shoe warehouse. up it to a buy. they raise their price target to
$45. they say this is the year that comp store sales growth resumes coverage. by the way, this is the second upgrade of dsw we have seen in a week's time. >> interesting. when they reported earnings they were having some trouble because there was nothing new in the woman's footwear category to really drive sales, and you take a look at that athletic shoe company. such as a footlocker, and they've really been out performing. that's where the growth is. up next here marbelle upgrading the stock from out perform raising the price target to $21. this is a valuation call. interesting because they posted a fiscal third quarter revenue miss after the bell. like guidance for the current quarter. the shares that we raised losses from the session actually a new 52-week high. they say core earnings power still intact. >> yeah. again, not to harp on the average analyst price target because some analysts are right. shrwrong. the 11% or so gain stocks had this year it's pretty much right on that analyst target. just something to be careful of with marvelle. >> under the radar name today. it's always the last stock we do. jazz pharmaceuticals.
dublin, ireland based. don't you know? they have operations, though in california, philadelphia. one of the greatest biotech money making stocks of the last three or for years. it's soared and bemo capital sees more upside. bmo starts coverage with an outperform and a $200 price target on jazz. i think this was a single digit price on jazz a couple of years ago. >> tremendous runner over the past three years. over the past 12 months brian, this stock has been flat at a time when biotech in general has been on fire. i mean it's been up 26%. a real under performer. maybe this analyst sees data compared to the other names that have run up. >> street talk over aka put the glove back on the hand. >> put it back on. >> so i can feel it. it is negative like 8. it's cold right? very cold. all right. coming up after the break, guess what, the boston celtics, they have not exactly been hot. they made a trade last night. maybe talk a little basketball. we have steve, bane capital from
the great investors out there. he will give us his take on the economy, what's happening around the world. maybe who he thinks will be the next president. steve, one of the co-owners of the boston celtics coming up when "power lunch" returns. plus what it's like to run a restaurant when you have seven feet of snow that has fallen in three weeks. here's a hint. it's not easy. we're back after this. >> we're going to introduce you to one of the most successful young chefs in boston coming up and what he is doing to keep his business afloat as snow literally covers the city. financial noise financial noise
>> this winter it's been frustrating in one word to be honest, because it's completely and utterly out of our control. every year we plan that hey, it's boston. it's new england. there's going to be snowstorms. this is something we always prepare for. when you talk about a winter that's once in every 100 years, that's something you just can't prepare for. i think he it's been challenging for bostonians to go out to dinner anywhere because the reality has been when there's a parking ban, all of the parking garages are full. we're not allowed to run valet, and more than 50% of our guests arrive via valley. a typical thursday night we typically feed between 120 and 150 people. that's the norm. this evening we're probably going to feed about 50 or 60 people so we're still a little bit behind the normal. we found year-over-year to be down about 35% from january 26th through february 13th. if you factor in that we're a $10 million restaurant group that grows at about 14% year-over-year, it's a lot more than 35% when you look at it in a grand scheme of things.
everyone in boston is sharing the same frustration. we're all in this together. ultimately we just want this snow to melt. >> good community spirit attitude there by chris. by the way he is one to watch. the guy is 30 years old. already owns three restaurants. came up from nothing. he is a great chef a smart business guy. chris, definitely one to watch. another one to watch is this guy, steve bane capital, winner of the bright star award for charity. we need to leave time for the interview, steve. thanks for joining us. no gloves, i notice. he is a cuff guy. he has a canada goosedown jacket on. greece, do you believe that we are going to get a deal that will benefit europe benefit greece, and benefit the market investors altogether? >> i hope so. they're talking about extending the curve deal to get more time right now, and i think they're going back and forth with europe, and i think they need to do that. >> does that just push the can further along down the road? do you think we're going to get a real solution, a viable one that would last? >> you've had a governmental change. in the united states we have one country, one monetary system.
they have 17 different countries. everybody has to agree. it's a tough process. hopefully they'll get to an extension or some kind of deal. >> i know you're not a stock market guy. you're an investor. you're a big picture guy. why do you think greece has rattled us so much 29 states have a bigger economy than greece. >> well, people are worried about the fact that you know europe was a little slower to fix the banks. they haven't fixed the banks. the united states did a great job. the governments jumped in and they're all real estate capitalized. they're in great shape here right now. people are worried about a tipple point. will one country even if it's small start a racheting into other countries and they won't solve the problem? i think greece is kind of a pivotal country. >> you've done a lot of things but you really are media, telecom, communications type banker. we have two guests on earlier that recommended our parent company comcast which we like to hear. totally unsolicited by the way. viacom is down. discovery is down. scripps i think was down. how do you see the media industry shaking out over the next year or two? >> well it's been tough since the recession. advertising has been down, and
you have a shift towards the internet. it's recalibrating. the economy is getting better. there's low unemployment. the banks are well capitalized, as i said before. general economic help will help the media businesses in the long run. >> do you think we'll see further consolidation? there's been some talk about that. >> i think you need to see consolidation, and you are seeing a dynamic ship going faster and faster to more internet advertising. much of the companies are taking advantage of that. you have a website as well. you are seeing this true convergence now. sit time. i'm getting word in my ear, speaking of greece that, we might have breaking news there. michelle carusa cabrera, what do you have? >> we're getting a number of reports from various wire services that there is a deal in the works. we expect a news conference momentarily. here's what we think we know at this point. four-month extension for greece. they will be subject to monitoring by the e.u. imf, ecb. when you hear the news conference, they'll probably refer to institutions. that's what they're talking about trying to avoid the word
troyco. no money going to greece before euro group approval. there's going to be some kind of key review on tuesday about what kind of measures greece would like to implement to make sure they don't go against the program. that's a rough draft of what we know about what we expect to hear. we've been here before. we don't believe they have signed on the dotted line yet until that happens, it's not a done deal yet. once again, the news conference has been delayed by more than an hour at this point. let's see. brian, back to you. >> wow. interesting, michelle caru ssa cabrera. it looks like a deal close, if not done. four-month extension. no new money. some programs still implemented. your instant reaction? >> well, as i said before i think an extension is probably the right way to go to get a deal that will last for over time, and it's a complex set of constituencies. that's great for europe and greece. they'll have four months and hopefully get it done. >> you wonder at the end of four months is it going to be another
problem, another can being kicked. >> at some point you have to solve the problem. hopefully they'll get it done. >> the dow, by the way, still at session highs. this is our first new record high of 2015 for the dow jones industrial average. the greece news broke, we were talking about media. you said you did feel that there was going to be some consolidation. are the big going to get bigger? who do you see as the buyers, as the sellers? >> lots of things are happening. you're looking at convergence, internet companies getting into the media business. i can't predict what's going to happen but when you have a situation where there's share shifting, often consolidation. >> for tv being, quote, dead a lot of people sure want to be in the video business. >> absolutely. content is king. you're seeing a true -- >> last question. you guys made a trade, isiah thomas, jr., boston celtics. the most active trading day in 25 years for the nba. the atlantic is looking a little
weak. give the bostonians around here reason to be optimistic about the celtics. >> danny ainge has done a fabulous job. he has 22 draft picks over the next five years. >> 22? >> and he's assembled a great young squad. we just beat atlanta before the break and isiah thomas will be an exciting edition. i think he's listed at 6'0" but he looks smaller than that to me. really exciting player. can get up the court, shoot, beat people off the dribble. >> nine championships in all four major sports in 15 years. this is proof mother nature is angry at boston for winning so many championships. let that be a lesson. >> boston is very resilient. jo thank you very much. 22 picks over 5 years. there's a wide ranging view of a lot of things. >> we're looking at the market's reaction. you pointed out in the overall indices not too much reaction. where we're seeing the reaction
is in the etf that tracks the treasury market. we're seeing it basically' race erase all the gains from today on the back of the news there could be a deal. we're also watching the financials. sitting at session highs and keep in mind deutsche bank the european banks strong all day. a slight tick higher on the back of the news as we do have some more developments on the european front, we'll bring them to you. coming up next, we're guiding you through the big week ahead so stick with us. i make a lot of purchases for my business. and i get a lot in return with ink plus from chase. like 60,000 bonus points when i spent $5,000 in the first 3 months after i opened my account. and i earn 5 times the rewards on internet, phone services and at office supply stores. with ink plus i can choose how to redeem my points. travel, gift cards even cash back. and my rewards points won't expire. so you can make owning a business
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for a free 30-tablet trial go to cialis.com we are getting some word that there could be possibly a deal in the works. we're still awaiting that news conference out of the euro group but until we have it here is a reaction of the markets. the dow sitting at its first high, record high of the year. it's up by 0.7%. nasdaq is higher by a half a percent and the s&p is also up. take a look at the financials. this is where we have seen strength all session long. it has ticked higher on the back of news that potentially there is a deal and we're seeing strength in some of the european financials. meantime big week ahead for your money. on monday existing home sales followed by consumer confidence. wednesday more housing data. new home sales on thursday. friday we're getting our second read on q4 gdp and janet yellen is testifying. if that wasn't enough we also have a lot of earnings.
macy's, gap, lowe's rig, you name it. it's coming out next week also. all right. well, brian -- >> welcome back to "power lunch." i was just listening to sweet irish brogue and i have no audio. we have a lot of stuff going on new home sales, consumer confidence. it's going to be a humongous week for economic data. this week was big but next week could be bigger and change the course of the debate. >> brian, can you hear me? all right. so brian can't hear me right now. in the meantime we're going to get geared up for point, counter point. brian is going to figure out his audio. we're seeing green arrows across the board as we're awaiting word from the euro group meeting on whether there's going to be any extension for a greek bailout. within the markets we're looking at the financials. also look at the tlt -- we're
hearing the news conference is under way. let's take a live look at the news conference. we'll listen in for a little bit. >> requested for six months but our decision is to extend it for four months. >> welcome back to cnbc. as melissa was saying we were watching a live news conference out of brussels. the head of the euro group meeting on the greek deal saying that they have agreed to a statement statement, some kind of four-month extension to greece four-month extension of the bailout, and it's going to be subject mo monitorto monitoring. let's listen in. >> will remain available to be available for the duration of the extended agreement and can be used for the purpose of bank recapitalization in greece. the purpose of the request by the greek government is to allow
for the successful completion of the review on the basis of the conditions of the current agreements. and as mentioned in my last press conference there is flesabilityfles flexibility in the program and we will make the best use of it. this flexibility will be considered jointly with the greek authorities and the institutions. it will also allow us to reach the time for discussions between the euro group, the institutions institutions, and greece on a possible follow-up arrangement in which the imf will continue to play a role. let me recall that the formal successful conclusion of the review will allow for the disbursements of the outstanding tranche of the current program and the transfer of the 2014 smp profits. both will be subject to approval by the euro group but as i said based on a successful coop collusion -- conclusion of the review. this is a precondition.
as we concluded in our meeting on monday a question for extending the program -- >> okay. so basically giving us the big headlines of this four-month extension with greece. one of the crucial things he said there to translate the vernacular melissa, the disbursement of the previous profits, blah, blah blah. if if greece does what it's supposed to do it will get 10 billion euros. it was supposed to have gotten most of that money but under the previous administration they failed to meet the requirements to get that money. the current government was trying to fight the very same requirements. they have apparently agreed to do those requirements now which would get them the key 10 billion euros to pay their bills which they were running out of cash to do. they can pay back thei m imf. it's only a four-month he can extension. i think we're going to be back here four or five months from now because as you said we're
going to need possibly another followon agreement beyond the four-month extension because they're probably going to need more money. >> again in four months. >> at least a deal a short-term deal is better than no deal at all so we get another four months to maybe sweat it out and hopefully over that time, guys, they can work toward a more broad-based and longer term solution. >> all right. our thanks to michelle -- >> thanks to everybody for watching "power lunch." i'm brian in boston. i have my hearing back. thank you. >> "the closing bell" starts right now. >> welcome. bill griffeth with sara eisen in for kelly today. we have a lot breaking right now so we want to get to it here. what it has done is pushed the dow into record territory. we haven't had a record close for the dow this year. amazingly with all the volatility we've had, especially in january, early part of february. this would be the first time