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tv   Power Lunch  CNBC  April 10, 2015 1:00pm-3:01pm EDT

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>> i'm just interested to see if the financials can buck this trend of being entirely tied to what the fed does. that's what we're looking for. >> doc, quick point. >> it may be covered on 60 minutes. the rumors are sparked by interest. i bought that stock. >> thank you. thanks to all of you as well. great weekend. see ow the other side. power lunch begins now. >> halftime is over. power lunch and the second half of the trading day start right now. >> all right. thank you very much. welcome, everybody, to power lunch. along with sar why eisen. a major move by one of the world's most widely held stocks. general electric soaring by 8% after unveiling a massive restructuring plan unloading billions in assets and announcing a big stock buy-back. what exactly is general electric now? how does the stock compare with its rivals? is the stock a buy? >> the other dow component we are watching closely, apple. time for the tech giant. time to deliver on its watch. it goes on sale today around the
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world, and we have a team across east to west coast to see how the demand looks. >> and check out this guy on the right of the photo there, on the right. look at him there. all right. you think you would wear a suit if you are going to meet the president? zoo jeff immelt is on a mission to refashion the company. the stock up 50% over the past five years, but still lagging the market overall. dominik looking at ge stock vefrsz its rivals.
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first, though, mary thompson at the nyse with a big question. what is ge now, mary? >> well, it remains a conglomerate, as we all know. this is a whoa moment for ge. certainly the most dramatic transformation undertaken by ceo jeff immelt in his 14 year tenure. let's look at what he is trying to do here. last year the industrial profits accounted for 58% of ge's total. he wants to get them up to 90% and in the meantime shrink ge's capital profits to 10%. how will he do this? he is going to sell hundreds of billions of dollars in assets. currently ge capital's assets are about $363 billion. that's as of 2014. they want to get them down to $90 billion. maintaining financing units that will help finance customers of purchases things like jet engines, health care equipment, energy equipment, et cetera. starting, of course, with the sale today of $23 billion, plus of real estate assets to blackstone and wells fargo. this is what ge's businesses are
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in 2016. it will maintain power and water, aviation oil and gas, health care energy management transportation of course finance, small art, and then lighting. lighting is a question. this is a slower growing business. the company has been rumored a couple of times they want to put it on the block. we'll see whether or not there is a bidder throughout for this in the years to come. it could be one that is sold. of course, bolt on acquisitions is expected to continue. they said so. if they see something they like for $3 billion to $5 billion, they will be a buyer. back to you. >> all right, thank you very much, mary thompson with the story on the floor. in terms of valuation now, how does ge measure up against other big industrial giants? honeywell and united technologies. here with dom at the wall with that part of the story. >> i mean mary just identified the differences that ge will have going forward here. let's take a look at how it compares peer-wise. does it make it a more impressive investment year for traders overall? if you look at the overall s&p 500, honeywell, united
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technologies, general electric going all the we back to september of 2001. that was when jeffrey immelt took over as ceo of ge. you can see that bottom line there in blue is general electric. it's fallen 30% since this time. the s&p up. honeywell up 193%. united technologies up 261%. those guys have far outperformed ge. even though ge has gone up big, it's got a long ways to go before it catches up with some of its peers and the overall market. if you look at valuations, how does that translate today? terms of price to earnings ratios? united technologies trades at a discount. ge right now, because of today's move, trades at 18 times earnings. meanwhile, honeywell, the premium, 20 times earnings. that's how it stacks up. ge in the middle of those three. here's the other part of the story that may be factoring into the investment pieces discussion. earnings growth. earnings per share. if you look at the five-year ab walized earnings per share
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growth for those three companies, general electric is lagging behind. only 8% earnings per share growth. five-year compounded annualized. honeywell maybe it's that premium val valuation because it's grown earnings per share at 13% a year over the past five years. if you look at valuations, that's important important, but also put in context for how fast it's growing. >> we compare to the stock move. the big question investors are asking today is now that they have unloaded the finance much of the finance division does that free up the stock to shoot higher? david faber trying to get that out of jeff immelt. he says he likes the company now. wouldn't really go there on the stock price. >> if i was a ceo, i would hope that this move makes me want to like the company. >> he is buying the stock. he clearly likes that. dom on the valuation question. tyler. >> let's switch to the other big stock story of the day. that would be apple, and apple story a day keeps the critics at bay. the apple watch available for preorders today. appointments to check out the watch at apple stores out west just got underway. we've got reporters covering
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this very significant product launch. john across the river at an apple store. let's get to josh lipton out in palo alto first. josh. >> well, tyler, this apple store in palo alto california just now opening its doors, so giving locals here their first real chance to test drive these watches. remember apple is making two broad selling points with this product. they'll argue this is a finely crafted piece of jewelry. when i was at apple's last big event in san francisco that was a big push that ceo tim cook made. the amount of time the amount of resources that went into creating this watch, it's a simple point, but an obvious one. unless you think it's a good-looking piece of jewelry, a good-looking watch, you're not buying it and wearing it. second selling point convenience. the idea that you can read emails, send texts, make calls from your wrist, the idea here being you won't have to take out your phone as much from your pocket or purse. now all the hype, all the buzz
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now it's all time to see whether this push actually worked, and, by the way, we should point out these watches are already showing up on ebay where the listing prices are almost double the purchase price. sarah, back to you. >> thank you very much josh lipton. we'll go from the west coast back to the east coast. john ford has been at apple's flagship store in new york all morning long talking to customers. what have they told you? >> well it's just about lunchtime here. the store has filled up throughout the day. >> completely free of having to have your phone. >> i think i would buy even unseen because i'm a big apple fan. >> a lot of the people who i saw
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in the store had actually already preordered and then came in just to get a chance to try on and touch what they had already bought. i did meet one guy from the north of michigan, salt of the earth. he didn't know he was the first day the watch was on display. said, eh it's okay. i frankly expected a little bit more. not this version. i mentioned the price might come down. he said, well yeah then if it's at around $200 probably everyone will get it. for apple now it's about gauging demand and putting its toe in the water. how sales go beyond now is going to be the big story from here on out. >> thank you very much, john. let's go to brian sullivan for a news alert on the oil patch. brian. >> as your weekly oil and natural gas drilling rig count and oil rigs down again, but they are increasing the pace of decline from the last couple of weeks. we lost 42 rigs according to baker hughes last week. remember, guys this is our 18th straight weeking with a decline in rigs but as you can see there, the pace of decline had actually slowed down. 56, 41 12 11. now we're back to down 42 so
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the pace of decline has actually ramped back up is the point. no real reaction on oil. oil up about 1.5% right now to 51 and change. it did not move on this oil rig count, but still, guys we are seeing a drop in oil rigs. down 42 and what is interesting, tyler, perhaps is that the number of rigs in america has effectively been cut in half from just one year ago. down to 757. that is off from 760 one year ago. really cut right down the middle, tyler. >> production though, remains up or high, right, as you always point out? >> record high. this is the dichotomy, and here's why. people say well, how is this possible? those rigs are coming in. first off, a rig is for a future well. the number of wells is not being slowed down that much that we know of. these are future wells. to your point, current production about 9.3 1/2 million barrels. if you are a producer and we've
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talked to many the last couple of months, what you do is you ramp up production at your most profitable, at your most technologically advanced wells and drill sites, and you slag off the rest. the good wells, what is it the old mule just keeps on giving. >> yeah. all right, bri, thanks very much. brian sullivan. what is the apple action like across the atlantic? sima live in london. hi, sima. they are hoping the same customer that is browsing will also consider buying the apple gold watch which does start at $10,000. the question is if you have $10,000, are you going to buy a rolex or apple watch?
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>> a rolex definitely. >> tell us why. >> a rolex is a bit more clfk. i think this is a bit techie. >> i would have a rolex every day. >> if i have a choice between that and a rolex, i don't know. i might go with -- i really don't know. >> neither. i would actually buy a -- >> the main reason customers are here at the store is to try on the watch and really feel how -- try to see what it feels like and what it looks like on its wrist. i tried on the apple watch, and i have to say i was surprised by how small it was. i also spoke to some women inside the store who said it felt like or looked like a miniature iphone on their wrist, and that it was less bulky than some of the other smart watches on the market which could work in apple's favor if they are trying to establish a foot hold in the luxury wearable market. tyler, back to you. >> all right. thank you very much. let's toss it over to sarah.
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>> the strong dollar was not, you know the be all end all. in fact they benefit from their operations in foreign countries from weaker currencies there, and so almost one cancels the other. i think there's a step back. i think investors are taking a moment and saying, you know what, let's not be so quick to judge. let's make sure we haven't overreacted. let's wait and see. so that's what you kind of see. low volumes. you have a trader's type of a market. certainly they're testing the highs. i think we're going to hit our head right here in 2100. i don't think it's going to blast through. i think it's going to hit there and wait until next week when you start to get financials and
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a lot of the big multi-nationals that are going to start to report. >> there we are. sitting right at 2,100. thank you. the never doomy and gloomy kenny on the floor. let's go to tech with the major movers at the nasdaq at this hour. bertha tracking the action there for us. hi bertha. >> the real outperformers today are the small caps. although for the week the russell 2000 is the laggard. we're three points away from the russell 2,000's al-time high. biotechs have a strongest week. the strongest week since the weekend it march march 20th when the nasdaq closed above 5,000. today netflix is one of the biggest gainers on an upgrade from citi as it unveils its new marvel series. also, we'll be hearing next week from netflix and intel, so we start to get tech earnings. apple doesn't report until the end of the month. raymond james very interesting downgrade. downgrading the stock on valuation really even as they raise estimates and they expect to hear a significant buyback
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from apple, which as you recall back in april of 2013 an up to $15,000 buyback. >> president obama will come face-to-face with leader raul castro. we have the latest on that and speaking of high level meetings, check out the guy on the right of the photo there. nice polo shirt there. you think maybe you put a jacket on, wear a suit if are you meeting with the president? what was he thinking? we're going to find out. he is going to join us later today. on "power lunch." right back.
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welcome back to "power lunch." netflix jumping 3% after citi upgraded the stock. new buy from neutral. the firm side not concerned about the competition that netflix faces and that the streaming company is pushing out strong content this year. blackstone purchasing real estate investment trust to sell for $2 billion. the deal was shortly announced after ge said blackstone and wells fargo would buy most of ge's capital real estate assets. alibiaba forming a smart car and living division. the move part of the e-commerce company's effort to integrate cloud computing into everyday products. the stock, though is down more than 17% so far this year. tyler. >> all right. it could be the highest level meeting in more than 50 years. president obama may well come face-to-face, we expect with cuba's leader raul castro at a
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summit. >> we're here wour chief international correspondent michelle caruso-cabrera on what is a historic moment. >> they're calling it potential encounter is the official word that we're getting. president obama has arrived in panama, and while there's no announcement of a substantive meeting, the summit schedule shows the two will be at the same opening night dinner which begins tonight at 9:00 p.m. this will not be the first time the two have met. >> it will make it easier for banks around the world to do certain kinds of financial transactions with the sanctioned island. just last night the state department officially
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recommended removing cuba from the list. obama ordered the review after announcing the shift of foreign policy back in havana on december 17th, and he has vowed to act quickly once he has that recommendation. cuba has been on the list. including columbian rebels and inspected of eta, a baath separatist noouchlt spain. others on the list iran sudan, and syria. by the way raul castro is the first cuban leader to attend this summit because the u.s. has historically objected to a castro -- any castro attending the event, so guys we're already seeing changes in helms sfeeric relations. >> thank you, michelle for the update. >> tearing down to rebuild. kate rogers live in ferguson missouri, with an interesting business story for us. >> hey, sarah, that's right. the demo you see here might not be pretty but it's an important step forward for the small businesses of this community.
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>> the shock of an unarmed plaque man by a white police officer in south carolina. this is new video from the officer's dash cam as the nation
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tries to deal with this latest tragic event. it is also trying to get over a very recent one. kate rogers live in ferguson. >> hey, tyler. that's right. the recovery process here in ferguson is underway. buildings like the one you could see on this lot are starting to be demolished. this is a family dollar that was burned during the riots if november. the demo process started earlier this morning and it's expected to last through tomorrow. the demolition happening thanks to a grant program from the st. louis economic development partnership, which has mythed committed $500,000 to the raise and beatification of properties at ferguson and in neighboring dellwood. in total, 250 small businesses were vandalized and lost foot traffic in the aftermath of the death of michael brown. 11 were burned housing 20 small businesses and six of those are being demolished in the next few days. now, for business owners like juanita morris owner of fashion's r boutique who we speak with in january, it's an
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important step forward. through crowd funding morris raised money to open up a new store in the city but she is committed to coming back to her old lot and keeping her new store. >> i think that it will encourage us all, you know, to see that the buildings are coming down and that they are coming back, and he won't be the only one coming back. that was horrible when the feeling that i felt when i saw the building burn. as i saw the building coming down i felt like okay you've cried enough over this so let's move forward. >> and businesses are certainly moving forward in addition to this demo program. so far 72 businesses in the area received more than 680,000 dollars through the st. louis partnerships loan and grant program, and the business owners that we've talked to say they're committed to staying here in the city. sarah, back to you. >> all right. good on see you, though. they are moving forward. kate rogers thanks from
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ferguson. >> usually the two move in op sid directions, but gold actually went up about $10.50 today. past the technical level. it's been trying to read the signals as all markets have of what is going to happen next from the federal reserve. green across the screen really when it comes to the precious metals. silver, copper, palladium. rick is out, so i'll check on the band market hear for the bond report, and what we are seeing is that buyers have stepped back into u.s. treasuries. at least at the long end of the curve. buying the ten-year. buying the 30-year. those yields actually have gone down. 195, we're saying just below 2% on the ten-year treasury note yield. of course, after what was a pretty disappointing auction in the 30-year yesterday. also want to mention the u.s. dollar because it had an up week. first time we've seen that in about four weeks.
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strengthening the u.s. dollar. that's been a big headwind for u.s. corporate earnings as we get really into the earnings season. the dollar had been climbing higher for the past year. took a brief pause after the last fed meeting, and now marching up once again. and that tyler, is today's bond report. tried to fill in. >> beautifully done. with gusto. u.s. major averages edging up for the week. overseas markets like hong kong germany on fire. up between 3% and 8% and well outperforming the s&p 500 so far this year. is the u.s. gold market fading? is your money better off overseas for a change? plus, the problem with plus sizes. the $17 billion market and growing so to speak every year but why are most retailers struggling in this market. one company that's getting it right after this.
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sdmrirchlgs courtney rag al
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arianing, and here's your cnbc news update this hour. president obama taking an unscheduled tour of the panama canal. he was helicoptered to the canal and drove to the lock. later today obama will take part in the summit of the americas with latin american leaders, including cuban presidential -- president raul castro. the utility that owns the crippled fukushima -- has sent a robot into one of the containment vessels to get a first look inside. the snake-like robot will try to find melted fuel inside reactor number one. for orthodox christians around the world, this is good friday. in athens they mark the solemn holiday by attending a reenact of the descent of jesus christ from the cross. lance futch thought he was attending a meeting for which a polo shirt would be comfortable. it turned out to be a roundtable discussion with president obama. will he tell you about it firsthand when he comes on live in the next hour of "power lunch."
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that's the news update for this hour. for now, tyler, back to you. >> thank you. >> do you think i can wear a polo shirt. >> ebay shares did take a midday dip. we're getting news on the regulatory front. their pay pale unit may be the target of a lawsuit by u.s. regulators over allegedly excessive finance charges for same-day lending service. that service it was formerly known as build me now. it's known as pay pal credit. it could be the focus of a suit as early as sometime this quarter brought on by the consumer protection bureau. pay pal said that it may face fines and either other corrective measures and that it's cooperating with the investigation fully. pay pal, remember is due to you -- back to you, tyler. >> thank you. major averages up for a fifth day with the dow and s&p 50000 on track for a second straight winning week. let's check in with mary thompson doing double duty today covering ge and the markets from the nyse. hi, mare. >> when you are tag about the
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markets, you have to talk about ge as well. of course the markets, as tyler pointed out, in positive tone as we head out -- head to close out a positive week. the dow jones industrial average above 18,000 for the first time this month, and the s&p 500 earlier today hitting that 2,100 mark. it's pulled back a little bit since then. some resistance at the 2,100 level. nevertheless, a positive tone in what continues to be fairly light volume. no surprise here. the group that is leading the s&p 500 are the industrials with, of course, ge contributing to that along with utilities helped in part by lower interest rates. health care and energy which are two of this week's strongest performing sectors, because of all the m&a activity in these two areas. also, among the leaders in today's section. of course, we want to talk about ge. its stock moving higher hitting a 52-week high. the companies plan to restructure its finance movement. shrink it dramatically and bring industrial earnings to 90% of the total. by 2018 i want to apologize. earlier i said it was 2016. that's 2018.
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investors like the news. the stock up over 8% today, but we should note the stoblg is well off its all-time high of $60 a share and still down roughly 30% since ceo jeff immelt took the helm in 2001. we'll see if it continues to the up side. sarah, over to you. >> thank you very much mary. certainly that move on the part of ge is helping the dow climb above 18,000 for the first time in the month of april. despite this move though, the u.s. market has lagged japan, germany, and china so far this year. the nikkei topped 20,000 for the first time in 15 years. is the bull market here starting to fade over there and go over there? joining us chief investment officer at altegris, and we've got lee partridge with us cio at salient partners. through the prevailing wisdom on -- is go where the money is easy. are you seeing it in europe. you might see it more in china. you are seeing it in japan versus the united states which is thinking or on the brink of
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raising interest rates. you say it's not that simple. why? >> i don't think it's that simple. you are following the central banks and what they're doing, and that makes some sense. i would do that in europe. i would continue to do that in japan. i'm not so sure i would do that in china. i think the china market is just a speculator's market, and it takes a professional or a speculator to be operating there. you follow the money, and that's what is happening. it doesn't mean that things are over in the u.s. we've gotten used to having double digit returns. you don't need double digit returns to stay in a bull market. i think we will see continued highs on the various indexes. it's just going to be a little slower pace than it's been historically. it's going to follow earnings and earnings i think for the year will be up. we're certainly not going to see that in the first quarter, but i think we'll see a modest earnings increase, and i think that means we'll see a modest increase in the averages here as well.
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bull markets not done. it's just there are some catch-up taking place in the rest of the world. >> all right. thanks for laying that one out for us. lee, curious to get your thoughts here. isn't this just the currency war at work? whoever has a weaker currency is going to get stronger earnings and a stronger stock market? >> i think that's a big part of it. if you look at where the ecb is and the bank of japan, they've really been playing catch-up to the federal reserve because the federal reserve has led the global economy with easy interest rates and accommodative monetary policy and now you see the ecb doing the same thing. obviously it's driven term interest rates in germany down to historic lows where the ten-year bund is below the ten-year japanese government bond. all of that said i completely agree with jack. i think at some point you have to look at where the flows are and it comes down to some fundamentals as well. if you look at the prof it cycle in the u.s., there's no question that cost-cutting, share buy-backs, debt refinancing,
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and, you know other activities have really been shareholder-friendly, and if you look at the ge situation, it's kind of a follow-on to that overall framework, have driven profits to an all-time high. now, if you look at the profit margins in the u.s. versus the profit margins in germany, for example, you are almost seeing double the level of profit ablgt for the same shares despite the fact that both markets are trading at roughly the same multiples, but if you look at it on a price to sale basis, the u.s. is trading at about 2.3 times sales, and if you look at germany as a good comp as trading at about 1.2 times sales, so there's, you know -- it's hard to look at these numbers because they're so much more profitable in the u.s. >> thanks for bringing up valuations. have to leave it there. thank you very much for both of you for your views on the world there. why the u.s. is underperforming. first time we've seen that in the bull market over the last few years so far in 2015. go to right
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now to see what lee says is the smartest thing investors can do with their portfolios. more industry and stock picks. power sar yashg hillary clinton, she's expected to announce her 2016 presidential bid soon. how soon? john harwood live in washington with the details. hi, john. >> sunday soon tyler. we're go to get a little bit of deja vu for the democratic party as well as for the country as a whole. remember this video from hillary clinton in 2007? take a listen. >> i'm forming a presidential explore together committee. i'm not just starting a campaign, though. i'm starting a conversation with you, with america, because we all need to be part of the discussion if we're all going to be part of the solution. all of us have to be part of the solution. >> now we expect a similar announcement and a similar kind of emphasis which is that hillary clinton is going to emphasize dialogue with the american people.
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this is considered a soft launch beginning to her campaign to try to replicate some of the listening tour that she did in 2000 when she ran for the senate and was elected for new york. she brings tremendous advantages to the race. she is tyler, the most -- the nonincumbent with the best chance of being elected president of any in recent decades. she has overwhelming support in the democratic party. democrats have a structural advantage in presidential electrics because of the shape of the electorate. she does not have significant competition within the democratic party. on the other hand, she, of course, is tied to her husband's presidency where she draws a lot of her reputation. that and her age. she's 67. poses the risk she would be identified with the past instead of the future especially if she draws a younger republican nominee and one of those, marco rubio, is going to be announcing his campaign for president on monday. finally, hillary clinton has to show some texture and ability to
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connect on the stump which is not always her strong suit. we'll see how she's developed that skill and whether she can connect with voters, as well as the press that's going to be covering her over the next several months. >> all right. campaign season has begun. thanks very much john harwood, in washington. the problem with plus size. a $17 billion market and growing every year, but why are most retailers struggling in this plus-size market? courtney reagan takes a look at that. >> when it comes to the plus size apparel market consumers aren't seeing what they want to buy. there are some start-ups that are getting it right. i have the story coming up on "power lunch."
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provided on safety and effectiveness. it plans to resume the early constituted where i in the coming weeks and expects results from the study in the second half of this year. tyler, back to you. >> the index is made up of the ground it lost in march. let's check back in with bertha coombs at nasdaq. hi bertha. >> you are within nasdaq 5,000. less than ten points away. biotechs, once again, are a big reason for the gains. you know last year april was the -- so far it's been pretty good. biotech is the best performer this week. up 5% for the sector. and it has now been up seven of the last nine weeks. >> that's usually a catalyst
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particularly for the cancer drug researchers. on top of that we have seen a few companies, though talk about disappointing earnings. we have disappointing guidance from the medicines company. part of it a patenten certainty over its -- one of its drugs. heel start the week after, but we will be hearing from intel, from netflix, which, today is higher. it's new marvel series. they've used it as an upgrade over -- we'll hear from schwab as well as mattel as well. 5,000 back within sight, but not there yet. >> how about that? just as the dow is above 18,000. thanks bertha. plus size apparel represents a significant and growing opportunity for retail. many brands can't seem to figure
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it out. more on this market. the opportunity here as well. >> it really is. listen to these numbers. we have 65% of american women that fall into the plus size category. however, the most recent year plus size clothing sales were 17.5 billion yon dollars. that's 17% of total apparel sales. first, retailers struggle getting the fit and style right, which means plus size fashion clothing doesn't always sell well. if something doesn't sell, retailers stop investing in it. it's hardtory create a good uniform fit because of more body variation above size 14. more so than at least in smaller sizes. also plus size clothing requires production and design expertise adding to the cost cutting into margins and increasing the financial ticket price in many cases. it is, however, getting better and there are players, in fact that are getting it right. one of those brands, getting it right, is start-up eloquy. we have social media marketing consultant sarah conley.
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i should add that sarah has consulted for elloquy in the past. if i can start with you. what is it that you all do that provides something that perhaps others don't and tell us a little bit about your success so far. >> sure. so one thing this we do differently that we take a lot -- we put a lot of time and energy into is we are fashion first for this customer. that means from the design to the merchandizing, to the photography, to the messaging. we're thinking about it from a trend perspective and making creative risks. although we're data focused, we're not relying totally on last years sales data to determine what we are going to show to the customer. >> can you tell us a little bit about the success that you've had so far? >> sure. most recently we've had 100% quarter over quarter revenue growth. >> that's awesome. >> sarah, the -- i'm no angel campaign from lane bryant has been getting a lot of viewpoints and different folks speaking out on social media around the water cooler. you speak to this community all the time. what do you think? what does the community think about the i'm no angel campaign?
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>> i think the community is really looking for a brand to come forward and say you know these are the women that we are proud to serve and happy to put them out in the forefront, bring them to mainstream conversations. that's what lane bryant is doing with the i'm no angel campaign. these women are on buss and billboards, and they're on tv ads. so these women are out there in the forefront showing the majority of women in america what beautiful is and it's really beauty at any size. >> what would you tell retailers? is what are they missing, and what do they need to pay attention to? they're watching, so tell them. >> plus size are showing women how to get dress from style tips to fit tricks and working with their tailor or portions that work well for their body. it's really out there all on the internet and all have you to do
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is listen. >> i wonder -- to courtney's question about why the big retailers can't get this right. we've seen them try. we've seen plus size sort of brands as off shuts. i think old navy has one and some of the other retailers have one. what are you doing that they are missing? they get the fashion. they have all sorts of consultants on their staff. what's their secret sauce? >> i think that they actually haven't gotten the fashion. i think that that is what our secret sauce is. i think what they've done is given the customer ultimately over time lackluster merchandise, and they haven't marketed it. right? they market it to a straight size customer, and they ignore this customer. she's 65% of women in the united states. you have to make her feel like a great customer if you want her to spend the dollars. we talked a little bit about this ahead of time about how the stores aren't doing a great job.
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>> if you go to the mass stores you will see plus size sections that keep getting pushed out by clearance departments or maternity or accessories sxwshgs so every time she goes into the store, it's in a different place. the section is smaller. the assortment is often worse than it was the last time she went in and so she feels defeated by the entire shopping experience. most stores don't offer plus sizes. you can't go in and go shopping with your friends, but if you look at stores like forever 21 the plus size department is starting to pop nup a lot more brick and mortar stores, and she's able to go in there, go out for a friday night, find clothes with her friends, and have that sort of shaimd shared experience. >> you are raising money. you are still in the private markets. are you -- what do you have planned for the company going forward with this market and the -- >> right. i think as we look towards the end of 2015 q3 q4 we're going to be expanding our extended sizes, which is sizes 26 and 28. we'll see growth opportunity there, and our customers are
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asking for new categories. they're asking for shoes and intimates, active wear. we'll be actively pursuing additional kad kat goers to be a true fashion destination for this customer. >> it was the one time owned by the limited brand. they were closed, and we started. >> customers brought us back. >> right. thanks, ladies for coming in. thanks for bringing it to us. courtney reagan. back to you, tyler. >> all right. from dressing well to feeling a little under dressed for the occasion. we're going to speak with a gentleman who thought he was going to a business casual event and he wanteded up two seats away from the president of the united states. and the divorce hotel. i've checked in there, folks. check in on friday. check out on sunday. divorced. it is not a joke. it is a hotel in sar saratoga springs, offering just that. how can you invest? i have been for 12 years. i thought it was called alimony. no, i'm wrong. it's all ahead in the second hour of power. we will tell you about the
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divorce hotel when more after this. i'm all about "free" travel babe. that's what i do. [ female announcer ] fortunately, there's an easier way, with compare hundreds of cards from every major bank and find the one that's right for you. it's simple.
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>> here are the power points. we start with gm shares up 7% after announcing a massive
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restructuring, including getting rid of the majority of its finance business selling 26.5 billion dollars worth of commercial real estate. >> the nasdaq edging ever closer back to 5,000. finally, president obama has arrived in panama for the summit of the americas. no official meeting is set, but many are expecting this to be a chance for the president to have a face-to-face meeting with cuba's leader raul castro. if you missed any of the big stories in the past hour you can always visit our website power >> tyler. if it hasn't yet, we'll make sure it does. a misunderstanding set this young man into a meeting with the president without even a chance to put on a tie. we're going talk to him about that meeting. ho. >> when a career in finance -- this former wall streeter heated
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up a second course in the kitchen. >> wall street was a lot of fun, and always something new, but this position, this new job, this new life that i have is a joy every single day. >> escaping the cube next.
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hello. i am a fully automated investment advisory service. i can help you choose investments. monitor them. and rebalance your portfolio. i can do a lot of what humans can. except have a real conversation. if you'd like that, you can always speak to someone at schwab. they aren't algorithms. try not to hold it against them. say hello at you total your brand new car. nobody's hurt,but there will still be pain. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it. what are you supposed to do, drive three-quarters of a car? now if you had a liberty mutual new car replacement, you'd get your whole car back. i guess they don't want you driving
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>> is greece about to get the boot from the european union? a report and a secret document that says it might whereby plus apple getting a downgrade? is that even legal? details ahead. and maybe the most amazing soccer shot you have ever seen and the guy who accidentally, tyler, ended up in a meeting with president obama and in a short-sleeved shirt too boot. what it was like. lance on the right thought he was fwog hear a speech guys and ended up in a meeting with the president. he is our guest in the next hour. i'll ask you, what happened and what were you thinking? >> brian, he was exercising his right to bare arms. >> or freedom of speech and wear whatever he wants. >> right to -- that deserves the horn. where is the hook? >> i think accidentally what you said is the key there. >> right to arm bears. >> right to arm bears.
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>> after -- thanks, brian. in finance one stockbroker had lost her appetite for wall street but not for business. she developed a recipe for a second career as a chef. >> i don't miss the dry cleaning bills. i don't miss walking in had in stilletto heels. he don't miss any of that. >> i used to work on wall street. i was in the investment world for close to 20 years. i had a child, and i really never saw her, and i decided to pack it in and say, okay i'm going to be at home with her. when she was going to school i said time to move on and that's where the passion career comes
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in. when i was in college, i worked at french restaurant and just fell in love with cooking. there was really no discernible career for a woman in culinary arts, so i took another turn entirely but in the back of my mind there was something missing. i started my private chef career in 1997. the business model is having help client per day. it was an expensive way to get into the food business. i was invited to teach at a local cook wear store. that was the start of my own cooking school. >> she roasts broccoli like no one's business. i'm nancy gold and cathy is my sister. when she was on wall street it was not a good way to live. since she has been cooking, which is really a love of hers, she's much more relaxed and fun. >> i have five chefs who pop in and teach their own classes.
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we are now teaching every night, and when i'm not here i'm thinking about it and what's next, what can i teach, what flavors will be good? cooking is in my blood. i'll coulding here and then i'll go home and cook again. it is just really what i love to do. >>. >> i love love love stories like that. >> as do i. >> sarah, it's been great to have you here the past couple of days. >> thank you for watching the first hour. we continue now with mr. sullivan. >> thank you both. have a greet weekend, guys. it is 2:00 on wall street. welcome to the second hour of power lunch. melissa, at the nasdaq two hour left in your trading week. stobs are up. the dow crossing the 18,000 mark for the first time in april. right now the dow is up 90 points we'll call it. to about 18,050. crude oil price as well.
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that's bay percent and a half gain. the price of the euro, 10591. the dollar gaining. your big story today, though, ge. >> ge says it will help investors through syncrony exchange. what is ge now? let's bring in gene gray. >> are you happy with what ge is doing? did they do enough? did they do too much? >> i'm actually thrilled by this news. it's a great day for shareholders in the company. i think management has finally listened. the reason why you have a conglomerate is make sure the whole is worth the sum of the parts. it was trading at a discount to
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its peers. by selling off the financial unit, which is basically what was holding it back you can unlock a lot of value for shareholders. there's still a lot of work to do as far as disposition of these assets but the management seems confident and committed so we are as well. that's going to be trading -- the market will provide that at a premium at that level. that's fantastic news. >> do you change your rating on the stock because of the news today? >> this is all good news coming out of ge and the expectation is that they've got -- laid out this transformational plan. it's exactly what investors had been looking for. i have never had one investor say i really wish there were more earnings for ge capital. the balance going to 90% plus from ge industrial is exactly what investors have been looking
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for. >> that's not 100%. should it trade as the same multiple as is honeywell, or should there still be a discount embedded in ge shares? >> well that's the big debate. >> wenl the big barrier has been lifted as the lower valued finance business becomes a much smaller piece. if you want to take out a group target of let's say, 18 times and put it on that 90 plus earnings in 2018 that's where you start seeing something closer to the mid30s. >> matt, at this point what are the next catalysts here? >> well i would agree with his valuation, for sure. i think selling off the assets getting fair price, you know biz where i delivering on what they're promising today, that's going to be part of the catalyst. i think they also have to focus
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on the oil and gas assets that they acquired at higher values. they really want to focus there energy on being strong operators there. really, we think the most compelling part of this whole deal is the $50 billion buy back. that's almost 20% of the market cap today. that would unlock more value, and the multiples are $2 per share target they had a couple of years out would put the stock at $34. maybe if you go to 18 it's 36. you add the dif debt you have nice returns you can forecast out for ge.
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>> think inside the company he still had a good reputation. i think he is moving in the right direction, but i definitely think you hear the critics, and he is answering. >> all right, guys. thank you. >> more on the $50,000 buyback. dominik is with us and, dom, how does this buyback stack up against others? it's pretty big. >> it's big, and it's in the record books right now. that's how big it is. this one ties the single biggest ever buyback announcement bid by any company in corporate history in america. we're just saying single buyback authorization. obviously people can bolt on and make them bigger over the months and years. remember back in april of 2013 apple announced that big $50 billion buyback authorization.
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this one ties that one. if you look at what's out there, microsoft holds the next four slots in terms of the biggest buyback authorization. a single buyback authorization of all time. $40 billion back in 2006. $40 billion, 2008. s $40 billion in 2013. you take a look at some of the other big names as well. proctor and gamble their big $30 billion buyback authorization back in 2007. intel in 2005 at $25 billion. these are the top ten. now, if you take a look at why some of these are in such focus here, ge is one of those stocks that may get a bid on this. investors are hoping that this unlox some wraul value. ceo jeff immelt spoke exclusively with our own david faber earlier about what it means and why this buyback is huge for general electric shareholders. take a listen. >> i just think it's a narrower float. i think that's a positive. he it also gives you more, i would say, you auto tilt on the dividend as well as time goes on. you grow the dividends not as much at a cash-out as you do.
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i think there's a number of good things that happen as we reduce the number of shares outstanding. >> now, capital returns a key for ge investors and for a lot of other large cap multi-national company investors, and, remember sometimes those share buybacks translate into big gains. after 2013 when microsoft announced their $40 billion authorization, we saw a huge move up in that stock. about, like 40%. apple gained 20 paul ryan% plus in a year. after it announced its $50 billion authorization, and guess what i have all the numbers from -- they crunched all of them. i can't get to all of them right now. seriously, brian, the numbers are staggering, and this one puts ge right up there in the record books. back to you. >> all right dom. great stuff as always. thank you very much. >> your take on what ge is doing? >> buybacks are not all created equally, and you have to look at what warren buffett says about
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buybacks. what he says is they're fine as long as they're blocked below the intrinsic value, and the numbers dom just showed you are interesting because, you know he is talking about something that's occurred in with tremendous bull market. you never want to see the company buying back shares and having the shares go well lower because then it really wasn't a bargain. >> that is live video happening with tim cook the ceo of apple talking to a well bearded man in the apple watch or apple store, obviously, looking and talking about the apple watch. if tim cook happens to go to our
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camera, josh lipton is there. if he says anything he will obviously bring that to you. there he is tim cook hanging out. some of the myriad of people looking to buy the apple watch. all right. let's go back now to the man who bought the first apple monicle, which is herb greenberg. >> ge is a -- you to me it says build a factory, right? build more this build more that. they don't have a better use for the cash. that troubles me a bit. >> well they actually talk in their call today in their conference call about additional -- some people will say if your best use of your cash and this is the best buy, then perhaps that's the reason to do it as long as it's not just for financial engineering.
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remember, he was talking about trying to make the float smaller, which again, is good and bad, dmending on several things. one which is important. somebody said are you going to raise cash or need to raise more debt, rather to do this deal, and they said no. remember, this is asset allocation. that's actually a good thing because one thing when you talk about -- what i really hate even with interest rates so low, if a company is going out and using debt to do the buyback. it seemed there were better uses of debt. especially in a market like this. >> well, i'll get into that in a minute. in terms of a buyback, it's important to keep in mind that -- you may authorize a whatever billion dollar buyback. you have to see if the company goes through it w that buyback. >> yes, yes. >> just to your point on hating buybacks, i mean i think a lot of shareholders say maybe they prefer a dividend increase over buyback because that is a longer term commitment to cash saying you know the company is saying you will actually make this much money. we're confidented in our ability
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to forecast and our future prospects, so we're going to increase dividend which is more longer lasting impact. >> melissa, if you go back to buffett and read everything he has quinn on buybacks again, he holds out what's the intrinsic value. he is intrigued with that and the other thing is he says i'm just getting a bigger piece of the company over time. look, the arguments cut all ways. you see the companies that have made wise purchases of their own stock. we've seen companies that have made lousy purchases. we will not know if this is a wise purchase until some point in the future. >> i would rather see corporate executives take big stakes in their own stock than i would have the corporation buy back its own stock as they measure confidence. >> they may be doing that along with the buyback. >> they might. >> we don't have that date to to say it's not happening. >> melissa, i know you love your data points, so i'm going to give you one. >> okay. >> $10 billion. that's how many shares are outstanding for ge. 10.067 billion shares. i don't care how big the buyback is, are you really going to be able to buy enough stock when
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you have that many shares outstanding anyway that it's going to make a material difference? >> well, and, by the way, you know, it's interesting you say that. you talk about then jeff immelt talks about the narrower float. i actually do not want to hear them talk about narrower float because to me that's just sort of getting into that game of i don't know, i get what he is saying, but -- >> by the way, herb or melissa, because this is a serious question. on their website, go to and it says something about a synchrony exchange. not only do i not know what that is, but i don't know what the word means. i have heard of synchronicity one and two. good songs. both in their own way. >> i don't know off hand. >> ge plans to sell the bulk of its real estate portfolio to --
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kate kelly is here at the nasdaq. digging in on the blackstone part of the deal. not many people think real estate and blackstone. >> as discussed is considerably more than that today. blackstone operates a half dozen different business units, including a huge hedge fund investing operation and also their mutual fund complex within that broad mix real estate has become a massive force in fact with 81 billion this in assets under management. it is larger than both private equity and also the second runnerup in size within the blackstone empire, which is actually the gso credit investing arm.
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>> the troubled luxury tower in december, and chicago's willis tower, the country's second highest sky skraiper formerly known as the sears tower, which it bought just in march? blackstone's top competitors, terms like kkr, are also very active in real estate which has been a key aspect of all of these businesses expansion in recent years during which a number of them went public but blackstone, i must say, has outperformed in the markets sizably, so in terms of the investor community, it would seem to be the darling. >> you just saw apple ceo. josh lipton is also there. he will join us next. plus, the european union reportedly coming up with a plan
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that could mean game over for greece in the european monetary union. and maybe how not to dress for your next big power lunch. we are going to speak with the man now famous for sporting a polo shirt with an accidental sit down with president obama. he is a good sport. he will be here. power lunch always sharp dressed. back after this. yet up to 90% fall short in getting key nutrients from food alone. let's do more... ...add one a day 50+. complete with key nutrients we may need. plus it supports physical energy with b vitamins. one a day 50+
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welcome back to power lunch.
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at the apple store in palo alto california, now, the mob you are seeing behind me it's not just fans hoping to test drive the watch. it's also because apple ceo tim cook arrived a few minutes ago. you can see the mob around him. this has been the go to store for cook on launch days. he was here for the launch of the iphone six as well. cool for their fans. they are just thinking they are going to try on a watch, and instead they get to hang out with the ceo that runs the most valuable company in the world. today authorize foez afternoons get get to see the features and the functions of the watch. they might have to wait a while before they get the watch. that's because on-line tlifry dates got pushed until late may and even later. this launch is different than a lot of apple products.
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that means $8 billion in revenue. not a big financial impact, but then the hope among the bulls is that apple gets to work doing what it always does. it works on the futures. it works on the pricing. importantly, it gets those developers excited. remember apple has a very deep bench of developers. they earn $10 billion last year. now you need those men and women to design and create the killer apps and that's what creates a big scale. what you get with the watch with piper's gene thinks, that hes the device that could be 10% of total sales. back to you. >> thank you very much. let's bring in natalie morris. natry, are you actually one of the first people to actually go in thissed the store. before all those crowds went in there, what was it like? well. >> well, they want to show us
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that it's a concierge experiences. they have jewelry mats where they can pull them out and you can try them on. they don't set limits on how many you can try on. they say that they suggest you make an appointment, but they're going to try and accommodate anyone who kind of mowsies in. they really do want you to get a sense of what it's like, and they've built this console right next to it because the watch is now a demo model. next to it you can play with the software, and then that's magnified on an ipad screen so you can sort of practice in a sense because all the early reviews are that there is a steep learning curve. takes a few days, and then once you get it you really love it. >> so before you walked into that store and had that watch on your wrist, here's the picture, were you a skeptic, and how did you feel after the experience? >> i really couldn't decide if it was in the wants or needs category, and then when i put it on, i was, like oh yeah i need this. i like the pink one, and i decided to give it a try, just for research purposes. i wanted to see -- >> did you buy the pink one?
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>> i did. you can't buy it in the store. then you have to go on your phone and buy it and i wanted to see if their servers could handle the demand. today they also launched star wars on itunes, and we have seen before that apple has sort of a hiccup in their servers, and ordering was seamless. playing with it was seamless. >> you're not going get it for a while. >> i could cancel that order. it will be interesting to see if people do that. gu in, and you think, oh i really think i want this and then maybe you leave the store sxushgs think do i need this? it's such an extrav gantt purchase? they sold it tout people who didn't even touch it. now we're going see how many they sell to people who do. >> natalie, thank you. >> ewe welcome. >> natalie morris. brian. >> you know melissa, any day that you can learn something new is a good day, and i learned something new thanks to our great fans and viewers and lispers. sychrony is a word. it's synchrony financial. it trades under syf.
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there's going to be an exchange of shares. the -- i learn something new about ge and their businesses thanks to all you very nice and polite people. there's your synchrony exchange. >> could greece soon get the boot from the monetary union? details of just that coming up. plus melissa and i will reveal our stocks of the week. this may be the coolest video that you will see all day. skills -- stick around. guaranteed. you picked a beautiful ring. thank you. we're never having kids. mmm-mmm. breathe. i love it here. we are never moving to the suburbs. we are never getting one of those (minivan). we are never having another kid. i'm pregnant. i am never letting go. for all the nevers in life state farm is there.
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zoimplt a secret man to kick greece out of the euro zone. fact or fiction? would you buy this? >> the secret plan to kick greece out of the your euro zone? >> there's a big headline coming out of europe that says it is a secret plan to kick greece out of the euro. >> clearly no secret. >> right. absolutely.
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>> if greece does not comply with all of the requirements of staying in the euro zone this is what we should do which is stick to our guns and then they end up leaving the euro? that's a more nuanced version of what is written there. they go -- >> it's laying -- it sounds like then it would be more like laying out the punishment possibly rather than saying we need to punish? this is what might happen if we were to punish. >> if it was the end of the we're we're. >> even if they get the 10 billion euros, do they know how long that will keep them going? until august.
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>> we do it all again. >> then we on it all again. >> greece is the news flow that comes on giving. >> the neverending prices. >> thank you very much. have a great weekend. >> when we come back the guy who accidentally got caught up in a meeting with the president and in a short sleeve shirt tells us what was going through his mind. and the final oil trades crossing for the week. the crude close coming up when "power lunch" returns.
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[ female announcer ] who are we? we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours.
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>> victims and survivors of the 2009 shooting at fort hood were honored for their bravery and sacrifice today. during the ceremony at the military post, purpose the hearts were awarded dozens of survivors and relatives of soldiers who died when a gunman opened fire on the base. ebay's pay pal unit may be sued by regulators over allegedly excessive finance charges for a same-day lending service. in an s.e.c. filing the consumer financial protection bureau said it may file the lawsuit in this quarter. senator rand paul making his first visit to iowa as a presidential candidate. during a rally at the university of iowa he promised both expanded civil lib earths and criminal justice reforms if elected president.
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the transportation security administration says it collected $76,000 in loose change left to security check foints at new york city's three airports last year leading the way kennedy airport where tsa workers found about $42,000. lax came in second with about $41,000. that's the cnbc news update for this hour. brian, back to you. >> a lot of money. courtney reagan thanks very much. let's wrap up now another wild week for oil. one where oil rose considerably. jackie deangeles at the nymex. >> a couple of factors supporting oil prices today. the first would be baker hughes coming out with its weekly rig count. as you reported earlier, 42 oil rigs came on-line. we are seeing the rate of decline accelerating again. that is supporting the market here. also traders are eyeing the conflict in yemen right now. the latest news is that the pakistani parliament said it would not support or get involved in the wlikt there, but that it will stand shoulder to shoulder with saudi arabia. a lot of people are seeing this
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as a setback for saudi arabia and hence, a lot of positions have short covers have gone into effect, so we go into the weekend because nobody wants to deal with a conflict that could potentially escalate. at the same time people asking me why are we decoupling from the dollar here? traders are saying it's probably short-term action. back to you. >> all right jackie. thanks. have a great weekend. all right. time for street talk. analysts recommendations on stocks that you need. you must absolutely know about. the first stock? general motors. citigroup, adding it to its focus list. they say the stock's recent pullback is an attractive entry point. they say next year in 2017 will be a major product cycle couple of years. with the oldest car and v line-up. they also note accelerating european recoveries. they've got a $50 target. that's a fat 35% up side. >> it is. that pullback though, is massive, and that's upon yours news that the canadian government is -- the disappoint willing sales numbers out for the month of march. you cited the tail wind of europe. well what caught my eye was the
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tail wind of raw materials because the analyst says that it could save on an annual basis a few billion dollars which would be 40 cents to eps. next stock here schlumberger. that's their moment to shine when it comes to creativity. this is what really stood out. onward into the abyss is the one about schlumberger. the analysts already below consensus, and he thinks he may even be too high. yes, q 1 and q 2 will be ugly but there are down side risks that are underappreciated. >> don't look now but it's actually higher year-to-date right? that's what's amazing. the stock is actually up 4% year-to-date. it's not burning down any houses but it's up 4% right now year-to-date with many other oil services companies down. perhaps the analysts noting that as well.
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>> if you take a look at the pe this might be interesting to you, brian. the current p.e. is 16. it's roughly the same as wal-mart. it is cheaper, though than both in order strom and costco as well as limited. garman. everybody left this for dead for so many quarters because it was going to suffer supposedly competition from a lot of the smart watches and, of course the launch of the apple watch. pac crest is lowering estimates because of fx but saying valuation and healthy balance sheet are backstops to the competition concerns. 31% of garman's market cap is hash. >> i love this story. garman has 1.approximate 6 billion in cash. they have now for going on about five years. sales have actually ticked up.
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the average rating is hold. you and i have been doing this a long time. this is a perfect example of a story where everybody is like oh well they must be dead because of had. guess what, not only are they not dead, like the knight in mobty python but they're doing pretty well. i love this kind of -- they are not a buggy whip. garman, good for you. all right. today's under the radar name -- this is an interesting company. i had never heard of it. it's called -- it's based in lovely cal bass yas, california. home of justin bieber by the way. their main product is called atx 101. as best as i can understand based on what they talk about this their press release, it's an injectable treatment for facial fat. kind of like a botox, i think. bank of america, merrill lynch reinstating coverage of a $66 target. that's 40% implied up side injectable facial animal fat. >> you take a look -- >> yum, yum. >> well i mean -- well wait
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until you hear what that drug does, brian. last month in march it got unanimous fda approval for this drug, which is an injectable treatment for? double chins. that's what it's for. double chins. sflo they're using -- they obviously do not put double chin in their press release. >> i learned two things today zoosh can you go home now, brian. >> just a minute. >> 24 minutes. >> yeah. >> melissa, thank you very much. all right. for street talk that's it.
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>> how many members are considering a june rate hike and looking past q1 weakness basically counting on q2 to come back. if that's true the thesis is that q2 u.s. recovery u.s. economy starts to pick up momentum. then fomc does move towards normalization, and the euro goes to parody definitely. sfroo all right. dave, let's talk about the euro weakness. whether or not we go to parody or still at $1.05, it's lower than it was. you're an equities guy. what is the dollar strength/euro weakness mean for u.s. stocks? >>. >> i mean, first of all, brian, i think this is an anomaly. i think this is technically driven and i think it was really facilitated when you saw the euro sort of not hold to 110. i think it got pressed by the shorts. ultimately it's not good for stocks. i mean, you know bottom line i mean, you and i have talked about it a little bit. strong dollar in a good economy, right are, is good for stocks.
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we're in a scenario where we have a strong dollar that's artificially elevated trying to debase their currency. that's a problem. you know i listen to boris, and he is right. i high pressure the economy picks up in the second half. we would be setting up for a really nice move in the second half of the year if things do change, but ultimately if the dollar stays strong and things don't improve overseas, u.s. multi-nationals are going to be hit with massive fx head winds that will impact their earnings. that concerns me quite a bit. what's amazing, the market is shrugging it off, and it's making the point that the market is dois discounting the fact that the dollar will stay this strong in the near term. >> dave and boris, we'll leave it there. tight for time on a friday. have a great weekend. see you soon. for more trading nation head to our website. all right. up next one of the most unusual ways to invest we've ever heard of. let's call this the cramer versus cramer strategy. then once more withfield
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my feet felt so heavy at the end of the day. they used to get really tired. until i started gellin'. i got dr. scholl's massaging gel insoles. when they're in my shoes my feet and legs feel less tired. it's like walking on a wave dr. scholl's massaging gel insoles, i'm a believer!
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>> getting a divorce is big business. no we're not talking attorneys. there's big money in saying i don't. jane. >> melissa, two crazy ideas. crazy idea number one. you married a guy who is really rich, doesn't want you anymore. you can't afford to pursue your fair share, though, in a divorce. well, divorce lawyers are not allowed to work on a contingency fee, so what you do to? balance point divorce funding will finance your divorce in exchange for a piece of the settlement. no settlement? no money. in fact, the investment is lost. stacy knapp started balance point with her own divorce settlement. clients include hedge fund giant steven cohen's ex. she's handled 25 cases so far, made money on every one, and the more she gives you, the higher
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her percentage on the back end. >> we started as low as frankly, as a one digit percentage and we don't go above. there's one case we went above 25. never to 33. typically you don't go above 25%. that's by design. i have actually had somebody say to me i won't settle ever, and i said really nice meeting you. i can't do anything for you because at the end of the day it has to be about a business because i have investors to answer for. >> kraszy idea number who. what if you could check sfwu a luxurious hotel on a friday married and check out divorced on sunday. that's what's happening at the gidian putnam resort in sartoga springs, new york. the first u.s. divorce hotel already a successful business in the netherlands. this is for couples seeking mediation who can stand to spend one last weekend together. the average cost is $10,000. catherine and jonathan from
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denver were the first couples, and they requested we not use their last names. >> it was nice to get away for a weekend in a beautiful setting where you could relax, get away from family friends, and really focus on what needed to be done. >> every couple has left saying they've gotten along better than they ever have but they're not getting back together. they've made that decision. >> they've done 12 divorces so far, and they are looking to expand to other u.s. cities. more shortly on both businesses on guys, including the founder have the divorce hotel who has never been divorced. >> you can't use our last names, but we'll go on camera. >> they believe in the concept. i've read about this when it was in the netherlands, and sometimes they celebrate the divorce the same way they celebrate the marriage apparently. >> well, yeah, but they don't get -- they still go through with the divorce. they do go out. they'll start a new race track package at saratoga springs, so
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come in between mediation and go to the race track, have a nice dinner, go to the spa, come back for mediation, and then you are done. >> have a great weekend. >> apple ceo tim cook at the palo alto, california store. josh lipton apparently getting tim cook to say some stuff. did he mention a watch, josh? >> >>. >> >> we got reports from japan to ahs reallia, to china to germany, to france to the u.k. to canada. now in the u.s. it's extraordinary. customers are giving us great feedback, and what style are you wearing?
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>> i'm wearing the apple watch stainless with a white band. i exercise in it and wear it most of the day. i've got a couple of other bands too because i also like to change them out. i'm wearing this one the most. so i would highly recommend it to all the listeners. >> now this is the big day, remember, for tim cook. apple's first new product category in five years. if you wanted that you had to get out very early. that delivery date got pushed out to late may and beyond. guys, back to you. >> soccer players are good with their feet, and how good one guy is has to be seen to believe. since we are television, we can show you perhaps the most amazing -- also look at shares of car max, one of the best performing stocks in the s&p 500 over the past month. they're up 18%.
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we'll bring you the reason behind carmax's stock gain coming up.
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a step forward today for amazon's plans to deliver packages with drones. kind of. the faa giving approval to test it, yes, but there are a lot of conditions. it kennel be done during the day, not more than 400 feet off the ground. can't fly faster than 100 miles an hour. and the drone is not allowed to
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fly out of sight of the pilot. seems to defeat the purpose. all right. meantime shares of auto nation hitting a new all-time high today. the stock up 8% in just the past month. new numbers in this morning show just how good things have been for the auto dealers. we talked about carmax. phil lebeau, just how hot are car sales? >> fantastic. the business has never been better. in fact, go back to five six years ago, people were saying this is a bad industry to be in. right now it's at record profits. in fact, the latest numbers from the national auto dealers association shows 2014 profits for the average dealership net, before taxes, was more than $1 million. the profit margin unchanged at 2.2%. but when you look at where the dealerships make their money, it's easy to see why last year was probably a pretty good one for most dealerships. most dealerships make half of their profits, i should point out, not revenue, in the service bays. the finance and insurance
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industry is worth 20% and new cars and used cars those sales bring in 15% of the profits. and the used car market has really started to heat up. we don't talk about the used car market a whole lot, but last year more than 41 million used vehicles were sold. the average used price, over $18,000. almost $19,000, and what we're showing you is a mannheim used car auction. those are dealers or their representatives bidding on it. 26% of the used cars they sell they get them at these auctions. as you take a look at the dealership stocks keep this in mind. the s&p i think it was up 12%, 14% over the last year. the average dealership stock up anywhere between 20% and 40%. so, melissa, you're looking at investors realizing these guys are having record profits. it's been a very good investment over the last year. >> phil lebeau, thanks so much for that. lots more to come on "power
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lunch." stocks of the week plus the trick shot that impressed even the best soccer players in the world. and the guy who showed up for a meeting with the president in a polo shirt but he's got a really good explanation. a polo shirt just like the one he's wearing right now. we'll hear it from him. that's next.
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that amazing video we've been teasing you with. martin montoya of the spanish
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soccer team barcelona kicks a soccer ball into a basketball hoop. nothing but net. that is not staged. it is not edited. you know you've done something special when the best players in the world, the other guys on your team are impressed. look at that. >> that's amazing. >> you couldn't do that. >> definitely not. i couldn't even kick it that far. >> you could roll it though. >> i could roll it though yes. thank you, brian, for believing in me. time for stocks of the week. my stock is tesla. huge week, 10% so far. the model s upgrade announcement which came on the heels of the better than expected deliver number for first quarter. it seems to be holding above the 200-day moving average at around 200. so there we are. tesla for the week up 10%, brian. >> my stock linkedin in. the stock is up 6% for the week but breen capital this morning says sell linkedin. their target $208 a share well
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below the current price. imagine going to hear a speech by the president and then all of a sudden finding yourself in a meeting with the president. not only that but you're wearing a short-sleeved polo shirt while everyone else around the table is dressed a lot more formally. lance fuch does not have to imagine it because he lived it next week. the air national guardsman is here with us. what happened that day? >> what had happened is when the white house first sent the invitation the assumption was they wanted a representative to be a member of the press release, so they wanted us in the audience and they had asked for someone with military experience. so because i am an active utah airman, i was chosen to be able to have this opportunity. >> but you thought you were just going to be listening to a
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speech, correct? >> i thought i was just going to be listening to a speech. there was as time got closer kind of a rumor that i would be interviewing perhaps with a white house official but the realization came when i entered the room for the first time and i saw a name tag for president obama and also a name tag for senator orrin hatch. >> and you. >> and everyone else and myself two seats down. >> lance, first of all, the picture makes it look like you are actually running the meeting with president obama because you're sitting at the head of the table, which is amazing. but just walk us through what the reaction was when you actually found out you were going to be just a person away from the president of the united states. >> my initial reaction of course, was quite a bit of nervousness. i was definitely underdressed for the occasion and sadly, i
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even had my military blues out in the car in the parking lot and i so wanted to go grab them and change but the secret service told me i needed to stay put. but i even -- because i had asked beforehand what did they want me to wear. the white house told me it was supposed to be a business casual event. >> and the president -- i have never met him or interviewed him. he seems like a pretty laid back guy. he's from hawaii. did he say like nice shirt or was he just like i wish i could be in that polo too? i don't want to be in a suit and tie? what did you guys -- did it come up? >> it never came up. he's a very gracious host. he's very warm and inviting very charismatic person. i don't know if it bothered him at all but he definitely didn't mention it. >> the reason why you're there is because you are a veteran and he wanted to know if solar, correct, was an industry that could, in fact employ veterans. >> yes, ma'am. >> what did you tell him? >> well luckily he asked some
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other people questions first, so i had a moment to kind of collect my thoughts and get over the initial shock, but i was able to tell him, you know, we're here and leading a revolution in the solar industry. we're the second largest in the nation, the largest in the state of utah and at the beginning of 2014 we had 1,000 employees. we have 3,300 now and we're continuing to grow. the market is there, and also we feel we're empowering people. we're trying to create a culture where -- >> and, lance, we've got to go, unfortunately, eight seconds left of the show. thanks for coming in on. you're a good sport. thanks for coming on. >> see you tonight at 5:00. >> looking forward to it. "the closing bell" starts right now. and hello on this friday and
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welcome to "the closing bell." i'm kelly evans at the new york stock exchange. >> and i'm bill griffeth we're in rally mode and you can thank general electric for the rally accounting for much of the gain with the announcement that it's selling much of ge capital over the next 24 months for $26 billion. big, huge share buyback. the stock is up 10% right now, $2.60. the dow up 100 points as a result.


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