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tv   Power Lunch  CNBC  April 20, 2015 1:00pm-3:01pm EDT

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guessing no. >> i have no edge on that but i think it has big implication. they've been see green shoots s. >> got it guys. that is does it for us here on "halftime report." "power lunch" begins right now. >> halftime is over. "power lunch" and the second half of the trading day starts right now look who's along for the ride for old times' sake. tyler is out today. the rally is on. let's look at what they're doing, currently up by 1.3% with a gain over 2 -- up by 1.2%. the s&p 500 is gaining 1% exactly. the little guys are doing very well today with a gain of 1%. >> as we know a lot of people like to trade etf. you can see the gauge
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the biggest gainer is the qqq, the nasdaq etf. >> china with an aggressive move allowing more flexibility. it is soars today, as you would imagine, up more than 4%. bob, it's a good rally, but we're not quite getting back what we lost on friday right? >> but if you're not confused about the action the last couple days i don't think you're paying attention. we are down 280 points on friday. at one point today we were almost on the verge of getting it all back. put up that two-day chart. we're basically almost back to where we were. let's not quibble. the point is what's going on? why is this happening? i've asked many traders this morning how to explain the last two days. no alternatives to stocks bob. there's no reason they should have been down on friday. china's going to stimulate other
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people are saying bob, it's an illusion. no matter what it's true -- i think mand,is right, china has been sending some mixed signals recently. by the same time on friday they came out and banned margin financing, they're saying we're going to keep stimulating, owner saying we don't want a stock market bubble. you can see the shanghai and china markets down right now. techings and industrials are having a great day. this is the best day for ibm probably all year. microsoft, the industrials like d. on or about techs are doing great, your leader apple i got the usual hand-wringing from people who were worried about it. today it's knocking the lights out up 2.4%.
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so your boiling oil are all up on new highs of the day. i think, brian, the point i'm trying to get across is if the trend is your friend what's the trend? that's what everybody is having a hard time trying to figure out. >> i think you used your powers of perception and went deep inside the brain. fantastic, bob pisani thank you very much. jason pride is our next best. he's moving more into asia and europe. i've got to ask you, we're down big on friday up big today. what in the world is causing this relatively extreme volatility the last couple trading sessions. >> i think we can point to two things. i think your other person bob just pointed it out. it really came down to greece and china. they're sending mixed signals back and forth.
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we think you have to put on the blinders a bit to all the noise that is going on around the world. some of what's going on in greece, this is temporary. there would be some sort of fix. i personally think they'll eventually have to leave the euro but how you actually get through that process is a whole other manner. and really trying to do a lot of things to kind of bring their economy into shape, and that means cutting back on some things while also stimulating others. the market takes it day by day, but reality, where we're going long term is there's an ongoing economic expansion. and ongoing profit expansion, and stocks will ultimately follow that. >> this is the stuff that probably drives your clients and mom-and-pop retail investors absolutely nuts. >> it drives me crazy. >> greece might default, but wait, china is stimulating. what about earnings? isn't the stock just supposed to be the future -- didn't graham
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and dodd say that at summer point? >> sometimes it's hard for investors to see that particularly when we have such a high volume and high turnover marketplace both domestically and abroad. sometimes it's easy to get carried away and not remember okay, earns are going up and the stock market is going to be -- >> you're in the birthplace of america, you're a troy jason, even your last name is pride. however, you are moving more into europe and asia with your investments. why is that? >> well sure brian, first of all we have a large stake in holding within the u.s. number one. number two, valuations in the u.s. have been a little expensive. it's not a jump up and down this is as cheap as it gets more. and particularly in asia
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there's great sfa opportunities there, particularly in europe. therefore we want to overweight that at this point in time. valuations and fundamentals are turning in the right direction. it's not a slam dunk but it's better than what we see in the u.s. in a show formerly known as "street signs" we talk a lot about europe. the biggest companies in europe, the nestle's of the world, the lordial, the majority of their sales are in the united states. retail investors made a fundamental mistake saying this is a cheaper way to play the american recovery. i think that's a broad statement, independent of where they're based. this is a global marketplace, confide often the investment markets throw out the baby with the bathwater. there's great franchise businesses in europe japan, asia, even some in russia and brazil that may be sp
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interesting at some point in time. wait. are you investing in russia? >> we are not necessarily investing in russia but there are interesting businesses that look in that region. >> you're looking? you're browsing? >> whenever things get cheap, you have to start thinking. >> hopefully we're thinking all the time. jason pride, it's a pleasure. have a great week. enjoy this beautiful spring day in the northeast. >> right. >> i'm feeling no stall juries you mentioned "street signs" right off the show. allowing for more money to pour out into areas such as potential -- all part of a bid to step up efforts. china's stock market by the way, we've been mentioning it quite a lot, recently. it's up around 30% so far this year. it was all sparked, they cut interest rates, again in
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february, and boom you have a rally. let's bring in ron insana editor after -- and normally in beijing, but today right here next to me eunice yu. you wrote a piece last week on cnbc.com about a potential chinese bubble and of course you came on our shore and talked all about it. does one move make a difference in your thinking? to me it smacks of desperation. >> i understand why china wants to ramp up lending, though lending to whom i think is an important question. they have overbuilt the infrastructure, i don't so joe where the money goes. they tried at the same time to tamp down speculation. shanghai has doubled in the past year. i would be nervous that when we tried qe or launched qeu. we were at the lows testify the market cycles. they're doing it at the highs, certainly to lift asset prices temporarily, but i think this
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would be a more risky place than six years ago. >> i think ron makes an excellent point, they're trying to get more lending happening that this at the same time a lot of overbuilding and some are saying this is the start of an aggressive easing cycle. do you think this is maybe too much? >> i think there are a lot of people worried too much, because there are a lot of companies that have high debt. there are a lot -- just the tradition is for these banks to lend to state banks -- state companies, so because of that there is concern that the money isn't going to go to the right places. in fact on friday we heard the chinese premier had gone around to some of the major banks and said you guys have to start lending to small and medium enterprises, and try to get the money to the right places. >> what would be a better way of stimulating the economy, if not this? >> it's going to be a combination of investigate cuts as well as infrastructure
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spending, everything and anything, but in terms of whether or not this will be very effective, it's -- it doesn't -- it's definitely not going to be as effective as it was, say, 5, 10 years ago. >> and how much of this money will be unleashed, how much will it find its way to the stock market, which as we mentioned is already looking a little hot. >> that's an open question. using it as a template or even europe now, they came in at different times in the cycle, in the economy cycle. i don't think throwing gasoline on a fire is a great idea. now, granted, you know countries should use macroproduction regulation to slow down activity in markets. the chinese can't do that now. by the same token, the economic is constrained in such a way that they have built too much. to such an extent they have done over the last five or six years.
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there is to brothero the expression yin and yang going on that might not lead to the desired outcome. i would be cautious about china. a lot of speculation. >> raising that red flag ron, the regulators came out and made that decision. >> it's just that the government is pushing this market rally. we see that i walk around various parts of the country, there's so much capacity so many unsold properties. when you look at the options that investors have they don't really want to invest in
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property anymore. they don't have the wealth manage -- there's been a clamp down on that so we're seeing more and more people. i hear from friends i'm excited about this concept of -- >> and mandy, we need experienced that in 1999. this is when people were buying egghead.com because they liked the name. they didn't know what the company was, and again, as we said last week not to condescend to individual investors, but they're often late to the party. you might want to be cautious. >> how do you say mom and pop investors in chinese -- thank you, the new york governor is in cuba.
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andrew cuomo is in cuba. he's not expected to meet with president raul castro or his brother fidel, but he will have a sit-down with the first vice president. this makes him the first acting governor to visit cuba since diplomatic relations were restored we're looking at shares of harmon international. jpmorgan resumed an overweight rating on the audio and electronics system company with $159 price target. software development, with several recent acquisitions. back over to you it's the five years since the bp oil disaster. is it any safer? jackie deangelis is in louisiana. >> reporter: good afternoon,
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mandy. the answer to that question is that it is safer, but we're going to talk about the impact this disaster has had a both big oil and other companies five years later. a lot of these companies still trying to cope with hardship in rebuilding and how the industry is working on that as well. we have that story coming up. stay with us. (under loud music) this is the place. ♪ ♪ ♪ their beard salve is made from ♪ ♪ ♪ sustainable tea tree oil and kale... you, my friend, recognize when a trend has reached critical mass. yes, when others focus on one thing you see what's coming next. you see opportunity. that's what a type e* does. and so it begins. with e*trade's investing insights center, you can spot trends before they become trendy. e*trade. opportunity is everywhere. [intercom] drivers to your marks... go! it's chaos out there. but the m-class sees in your blind spot... pulls you back into your lane...
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hasbro trouncing revenue estimates. despite negative impacts of yeah, the strong dollar. michael kors taking a hit, with mizuho downgrading them. the firm says the survey does not look good for future sales callaway moving higher. jeffries with a buy rating. >> you know what else is up? oil is up again to the mid 58 buck range. we're at 58.20 right now, but oil still up 22% just this month. believe it or not it has already been five years since the bp oil
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spill. die spite concerns the space of oil production is rising. jackie? >> reporter: let me give you the main takeaway. people we spoke to said things will never be the same after the deepwater disaster. it's just the way business is being done is changing. not only for big oil and seafood, but also in terms of tourism. what we do now is it's 20 to 30% less official right now to produce out of this region on an offshore platform. there are any well design rirms in place, also increased of blowout prevention is necessary, and more mo are projects are continuing. we do know there's about five or six more rigs operating at this point than were ted of the bp
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oil spill, but we're not at those levels yes. important to note this role of technology. fiveiers we had near already 200 million gallons of oil pumped in. it took 8 7 days to contain. that's why companies really care about trying to prevent accidents like this from happening in the future. they're trying to work on same prevent, rest race. they're getting together to invest in this, and taking it really seriously. last but not least, we have spoken to some of the local businesses here. they're working on recovering. as i said at the top, nothing will ever be quite the same. it's probably going to take a long time to know the main and sort of significant environmental impact of this disaster really has been.
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a japanese store understanding vales a robot, named, and she's distressed in japanese clothing. so far the robot can only read programmed scripts, but it will be upgraded soon. now, a real and a huge store greeter and receptionist says she does not mind working with the robot, but its eyes need a little work. if you're on the radio, mandy, i best way to describe it the eyes are robot eyes. >> in almost a perfect human noticed body. i think it's definitely creepy. i'm going to put it in the creepy camp as opposed to the cool camp. the dow on track for the first gain of 1% this month. last gained 1.5% on march 30th.
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so let's look at some of the dow movers. 28 of the 30 higher. all the top performers. in fact with a gain today apple stock is now worth twice as much as exxon. the market cap on apple is almost exactly double that of the next biggest company in the world. amazing. let's also check out the biggest movers at this hour. it said read wall on the teleprompter. i will look at it and we've got to put the sectors up in order for me to read the wall. sectors, shazam! there you go. i just read the wall. >> the problem was you had the passcode wrong. it was kant shazan it was abracadabra. you'll learn.
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there we go. 1194, back below the 1200 mark just to the down side by 0.7 of a percent. a troy ounce, flip over another board and take a look at silver copper palladium, platinum by 1% or more in silver's case by over 2%. ricky, what's going on with bonds this week in. >> ought rates are a couple basis points lower than they were yesterday, but the yield curve has a presence. look two-day of 10s and 30-year double down about four basis points. why? mainly because the sell-off is more aggressive in the long end. when you see it next to each other are other, the push out is to where most of the action has been. today the dollar index has been pretty much up 41 all morning. we see only one foreign currency
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doing better. if you want to see a strategic couple charts like at one-years charts. the euro versus the one, and the yen versus the yuan because the strength in the dollar translates into weakness in those currencies against the chinese currency. this was going to be a big dealing because of what china is trying to do to keep things moving as they go through a variety of measures. mandy, back to you. >> you're absolutely right. it is a big deal. on you to morgan brennan for a market flash. >> thanks mandy. angie's list is near session highs. it's partnering with on deck capital to give small businesses access to loans of up to $250,000 that financing will be available to angie's list service providers and can be used to drive business growth or fund subscriptions to angie's list. they'll also have lines up to
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$20,000, so shares up more than 5%, on deck up over 2% this is gearing up to be the biggest week for earnings season so far. it is still, of course early, but a very worrying trend is starting to emerge. if it continues, it could undermine the bull market. we'll explain. also as we head out, the biggest mover on the nasdaq. "power lunch" is back in a flash. discovery up by 3.6% facebook up by 2.4. don't go away. e financial noise financial noise financial noise financial noise
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hello, everyone. here's your cnbc news update. the 119th running of the boston marathon god under way this morning with more than 30,000 runners expected to take part. ehissia won his second two years after hi devoted his medal dedicated to the victims of the
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marathon bombing melissa gates is in india, discussion the expansion of the family planning program. with the plans to halt the spread of hiv. china and pakistan agreed for $45 political quote-unquote worth of investment projects signed by chinese and pakistani ministers. both countries have -- and a sobering number -- is expected to rise as baby boomers age. millions of women born between 146 and 1964 will tails as much as a 50% increase by the year 2013 according to the national cancer institute. brian, back to you. >> thank you, sue. back down to the market. back to bob pisani. you've laid it out for us so adeptly. what is catching yew eye today?
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>> we're seeing no attempt to sell off in the middle of the day, which i thought might happen. all the rally was in the first 15 minutes. a flairo five or six-point range. still up nicely off the day. we talked about why getting these up-and-down moves, these crazy moves. my thesis is china is sending very confusing signals. the monetary authorities have been take are talking about more stimulus for a couple months now, but the regulatory authorities have been clearly indicating they're concerned about bubbles. they banned margin financing over the weekend. that was an issue. take a look at some of the chinese indices today, some shenzhen shanghai and hang seng all to the down side. in terms of sectors, we're having a great day with tech. ibm with the best move in the year. energy is up halliburton had a decent report. industrials also doing well. for the most the best advice i am hearing, brian is very simple
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right now. you've got to sell rallies, and buy the declines. we're in a range here 2,000 to 2120 roughly, and we are slowly towards the higher end of the range here. i have not, brian, heard any better advice than stay within that range sell the rallies and buy the declines and if he hit 2012, i'm going to insist we play the entire rush album by the name title. 42% of s&p 500 companies that have reported their numbers have topped revenue estimates. that's it. according to the spoke investment group. as you can see, the last time it was this low was in the first quarter of 2009 we don't need to remind you the economy was still in the throes of the financial crisis. that story, by the way, is up now on cnbc pro, and also can real it at "power
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lunch."cnbc.com. >> a lot of dots there. put them together and it makes a pretty picture the dow is up 200 points as we gear up for a big earnings week. how do you play the market rik now? joining us is president and -- and ryan perry of the morningstar five-stair rated hennessey -- man, you need to shorten your title there, sir. great to see you both. michael, bob pisani said the best advice he's been hearing at the moment is sell the rallies and buy the declines. is that good advice to you? >> i think it's -- with the stronger dollars putting a hurt on u.s. earnings and retches, i think we're starting to see that for real butu plus the softer economic data does give you some pause, with respect to stocks continuing to go up at the rate we've seen the last few years. on the other hand i wouldn't argue we're anywhere near a recession. we still have gdp growth in the
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2% range or something like that so i think you have to be more selective in your names, one for growth companies, one for economic activity but also be careful in a broader sense with the market. >> we will get to some of year names in just a second. brian, you know, the other brian a moment ago was telling us about this concerning trends that revenues are fall short. obviously a lot of eps estimates are going aggressively lower. el the revenues give you concern. no? >> i think that's exactly right. when we're focusing on the -- they can do some cost cuttings and beat earnings estimates, but what really catches our attention are companies driving multiple you know, double -- or revenue growth companies doing better than the overall gdp are
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the ones we think will do better longer term. >> let's get to the individual names there. what are you putting your money into, brian? >> if you look at a company that's doing exactly like what i said skechers is a great example of that. they've been knocking the cover off the ball consistently. even the intergnashed operations is doing exceptionally well. we think they have more quarters to come that they're going to continue to beat what we would sxekd, and those are the time of companies we really like. >> j.c. penney is with unthat call my eye. but when you look at maybe a longer-term chart, still nowhere near like the $11 like last september. you still like this story? >> i do. i think the turnaround is behind them. when you get the lower oil prices and how that will translate, i think where you
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really wind up seeing the benefit is on the lower to middle income consumer. this is exactly the segment that j.c. penney is going after in rebuilding their brand. i think management has done a great job in turning around the business, and i think it continue toss expand and will do well in the next couple quarters. >> you have like 30 seconds, mike? run us through your picks. >> i think facebook coming out with earns, either tomorrow or wednesday, early stages classics growth story, monetizing you know the tangible asset of information they have in many ways and with or without the success of bill gross racing money on the bond side fund performance is improving, and margin expansion potential and a different yield. so our earnings while you're waiting for the growth story to play out.
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>> wow, you really take orders. 30 seconds, boom done. you can see where -- when brian thinks consumer spending is going to take off. bride, own to you. >> and more dots. we need a place to store all the dots. we have a big deal in real estate. prologis announcing an acquisition. diana olick has the ceo of prologis in a cnbc exclusive. diana? >> well brian, what this does is makes prologis a whole lot bigger. it gives them a wider footprint in major u.s. cities like dallas, in southern california in chicago, new jersey and right here in seattle. and joining us in a cnbc
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exclusive, hammond mogodon thank you so much for being here. what v what was it that said to you this is the right time and frame to take on seven a large portfolio. >> diana, we've been in a period of about three or four years that industrial rents have been recovering. that's been primarily because of limited supply coming on the market while demand has been pretty strong. we see rents going up and see the higher rents working its way through portfolios. the problem is there aren't that many high-quality portfolios for us to buy, and everything we look at we need to dispose of a significant part to fit, but this was an exception. perfect match for our holdings and one of the few deals that you just have to make. >> interesting you say that. your major customers, places like amazon home depot, walmart, u.p.s. you're more
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than doubling your u.s. footprint with amazon. does it concern you with the way retail has been changing to which, that amazon a very specific type of retailer with warehouse, should they change their model, would that leave you holding the bag? >> first of all, with that particular tenant the leases are long-term leases but more importantly, even as large as they are, 2.4% of our rent rolls. the nest largest customer is 1.8%. so we're extremely diversified and not dependent on any particular customer for our success. >> reporter: let's talk about the deal specifically. still 2.6 billion to fund. how do you plan to do that? >> we have actually a pretty strong balance sheet, our leverage is in the low 30% range. we have a variety of options. we can always issue equity. we have the ability to pull down
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lines of credit. even if we financial it totally with debt it would be in the 38% leverage range, which the short term is perfectly okay and question can always capitalize that. >> reporter: thank you so much. on a very exciting real state deal. brian? >> thank you very much. just a reminder dow on track for the first game of 1% almost all month long. as we head out to break, let's look at how the financials are trading right now. they like everything else are up. "power lunch" back in two minutes. the technology changes the design evolves the engineering advances. but the passion to drive a mercedes-benz is something that is common... to every generation of enthusiast. the 2015 dream machines, from mercedes-benz. today's icons. tomorrow's legends. visit the
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loss. still taking a look at shares down 4% right now. >> morgan thank you very much. let's get the trader's take on this move. gordon, i guess i could have just inverted the script right? friday i said let's get your take on this big drop. are you going to tell us really? because china might stimulate? and friday was because greece was in trouble? >> i'll tell you that if you want me to tell you that. i don't believe it. >> thank you. >> the thing we're not seeing is any intraday volatility. so we continue to see that trend. will they hold the line and maybe rally them to the close? >> that's the reaction we're talking about today. it's a monday after a minor exploration, about what you would expect in terms of volume. after the down day we had on friday, the reversal is
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consistent with the range we've been stuck in. there's a bit of data coming later in the week but it's about the sexy big names. a lot of guys have been talking about meeting or reducing expectation. we've seen that over many of the last few quarters but i think the have you been initial spot might be in the tech sector where if the dollar has such that it's going to impact those guys, they're not going to recoup it on the in side. you may see some increase in volatility because of that. >> the u.s. dollar had a rare back week last week so i don't know they might be a period of confident action but it seems like we're sorely in need of a domestic catalyst. it seems like we've been reacting to what happens overseas. do you see anything on the horizon? you mentioned durable goods, but
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beyond that is there anything that you can see that will move this market? >> the earnings will be the short-term catalyst but let's face it the backdrop is we're still being fueled by central bank policy globally. you really can't do much here domestically when the rates are what they are in germany, so we're sort of stuck here in this you know p. hurry up and wait kind of environment. to see exactly how they're going to allow for some of the, you know improvements that we have seen and how that will be reflected in rates. of course as we start moving forward, politics starts to get into it a bit and some of the geopolitical implications so it's about earnings right now. that's where our focus is. >> okay earnings earnings earnings, let's see if they can drive the market. thank you very much gordon here's a question for you. at what age can you really retire? not the age you want to retired,
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for many americans it's not 65. in fact many are financially unprepared to retire at all. how to figure out your real retirement age is coming up next on "power lunch" first the great new series online on cnbc.com. it's all about marijuana and money. here's a look at what you may find. my name is nick vavovicr, this is my company. i knew this industry was going to take off. i create add product that's compliant that dispensers can keep them -- it's a pop-top bottle, child-safe a different alternative to a medicine packaging container. a regular prescription bottle is not nearly as cool as this pop top bottle. you don't lose your top. as you know with certain marijuana users, there's sometimes forgetfulness that goes around so this helps solve
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if you missed part of the show, don't worry. a big recap, if you will. offsetting -- despite this the shanghai index up over 30% year to date. all dpu to new well design requirements and more blowout prevention techniques. finally as today kicks of on a very busy earnings week we learned that only 42% of the companies that have reported their numbers have beaten revenue estimates. mandy, the last time it was this low was the first quarter of
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2009. if you missed any of the big stories the past hour or what i just said go to our site and i'll say it to the sixth time. polyerlunch.cnbc.com and don't forget the dots. we have a really on our hand. will u.s. equities keep their gains this week? that's today's yahoo power poll. 33% say the rally will last. 40% say there's a pullback coming and 27% say markets will be flat. follow us and coming up folks, cnbc heads underground in five of america's largest cities. find out which subway system is the best and the worst for smartphone users. all coming up on "power lunch." do not miss it. anteed. you picked a beautiful ring.
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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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hopefully some of your picks can, too. even in america's largest cities there's still one place where the most avid smartphone user is forced off-line. yep, that's underground. cities are stepping up their
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efforts to context users wherever they go. from coast to coast, we put those claims to the test starting right here in the tunnels of new york city. >> we're walking into the deepest subway station in new york. there are actually 277 supway stations in the city but only 76 of them have cell or wifi connection. so we decided to come here and do the ultimate test. can we tall context and surf the internet 180 feet underground? the answer is no. by the year 2017 all stations will get internet and cell phone connection but that doesn't included the tunnels. once you step on the train, you have to put away your phone. we else checked los angeles, chicago, washington, d.c., and
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san francisco. >> i'm at the blue line on south street station, a couple blocks away from where we trade. in 2005 chicago installed basically a 2g system but as i look at my telephone, i'm getting 3g. all bars in terms of cell phone coverage. >> give the wifi a b-minus, better than the suburbs at home but in a few months chicago will be expanding into 4g. i hear them coming down. congratulations, chicago you have good marks now. maybe bigger marks in a couple months. >> so we're here at union station, the busiest underground subway station in the entire d.c. metro system. there's no wifi, but there is cellular centering it visitor
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stations. full service has been delayed under the end of the year. meanwhile, the transit authority is in talks about advancing the service with all the tunnels with the carriers responsible for building out the infrastructure, but i've got enough bandwidth where i am where you and i can chat on video. >> this is great stuff, hampton. good to see you. send that awesome? >> want to be unplugged in los angeles? get off the grid? head underground. it's the only place where you're in a black hole in terms of communication. there are about 22 miles of subway tracks underneath the city of angels just as many subway stops, but there's no cell or wifi service, zero zilch, nada that's about to change. they're going to fire up wifi in four stations downtown in may, adding cell service to the same stations in august and the
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whole system will have both cell and wifi in two years, but just in the stations. on the trains you'll still be in the cone of silence. >> i'm here at the embarcadero b.a.r.t. station in san francisco. in the bay area if you use b.a.r.t. you're out of luck at least for right now. they're looking at different offerings, but there's no plan in place just yet. they're going to expand 4g/lte with all the carriers that roll-out will include both stations and tunnels. >> out of five cities we tested only a few stations in new york and d.c. were smartphone and internet friendly. request over 8.2 million riding just these five systems, it's clear the demand to go wireless is there, and the urgery so
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upgrade is more apparent when we compare international. they've had connection for years now, but there are plans to change it. get all the depails at powerlunch.cnbc.com. brian? >> and then you can access the website on the subway. >> what was the website again? >> powerlunch.cnbc.com. >> you're a quick learner. that is it. it's over to you and melissa lee for the second hour it is 2:00 on wall street, lunchtime in denver. melissa is at the nasdaq. what a day for stocks. it's all gain today, the dow, s&p and nasdaq all up big. just over 1% let's get down to bob pisani where for a day, it appears, that greece's problems have been forgotten. >> yes, and we are back to worries about earnings and the earnings up side. we're in a narrow ranges here.
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since just after the open. i want to show some high-volume etfs. those are oil etfs, ixe, and that tracks oil. oil is breaking out today, heavy volume in the etfs, and in china, china's made it clearist going to -- big day for tech stocks. apple doing well today, below the 200-day average. for the moment the best advice i'm hear is very simple sell the rally, buy the declines. we're at the higher end of the range. i think some people light lightening up here. nothing even close to a panic. we had a slight move up on
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friday but we're right back down to 13 on the vix. thanks so much regardless of whether you think the fed rate hike is going to be in june or september, it's going to go higher, is your belief. where is the value here? >> there's a lot of value especially in europe. there's no headwinds. one is the counters shuck of the fed action balance sheet. it is second one is the strong dollar. those two themes will happen throughout the rest of the year. once again. european equities are cheaper as well as the headwinter of the
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europo. >> marshall, you're -- i'm thinking i don't know if any of your top ten holdings is doing any business internationally, with the exception of american airlines. do you care about all the this stuff going on in greece or china? >> i think you get swings ahead of earnings where there's almost an information vacuum. i think it will give investors more confidence and we would this volatility as an opportunity to go in and pick out stocks that we are highly convicted in based on what we see going on in the individual businesses. >> at the same time, eric, i would imagine having a small cap portfolio is part of that does not -- more domestically oriented. they don't have that headwind.
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>> that's true for the most part. however, there are small-cap companies that have that international exposure but i think in many cases analysts have really pulled back their expectations here for the first quarter. we think in a lot of cases we're seeing top line impacted but earnings are not being impacted as severely as some may have worried, because a lot of those outside revenues also have costs denominated in those foreign currencies, so the really important impact isn't just what happens on the top line but also what happens with the bottom-line earnings of these companies. >> tell me where in europe -- are there sectors -- we have s.a.p. coming out with earnings later this week is that the type of country you like? >> it is and you're hitting the nail on the head. you want to look into germany. it's the economic lock motive. they have the lowest unemployment. actually german consumers are
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spending more money now, s.a.p. earlier this year mentioned how the stronger dollar will hurt the american counterparts and they expect sales to grow. look at continent, a german dax component. they're getting into the mobile. they're seeing revenues increase. all the multinational corporations are seeing top-line growth between 10% and 15%, and they tend to underpromise and overdeliver. >> and our thank also to eric morgan stanley a big winner on the day. we'll be live on cnbc tomorrow at eastern time. in the meantime let's bring anton, great to have you with us. >> always a pleasure. >> a lot of your picks seem to be in the regional financial world. we got a couple data points already through earnings season.
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a loot of these banks actually sold off on these reports. >> that's right. the bigger banks are kind of stuck right now. the capital market providers had the best quarters but interest margins are under pressure. they need rates to actually rise to help there. loan growth really wasn't there. they're picking off employees, picking off loans, and there's a lot of m & a going on underneath the radar inch i want to get to some of your picks. i don't know if there's a term for it but they seem like super regional, very concentrated on very specific areas. one is in the south primarily? >> i like the carolinas. there's a low of good demographic things going on.
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a lot of corporations are relocating there. charlotte has been on fire it's the largest independence bank in north carolina. that allows you to have this company with really nice growth characteristics and is a valuable franchise. if a bigger company would like to food a foothold this is -- >> you brit in some of those mighty mighting in they're. yadconditions, and others. should we also infer that you hate the big bankses? or just like these better. >> i don't like the big barracks we do note citi and bank of america, but these banks have performed for quite a while now. south state, every time they do a deal their valuation rises.
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they're very shareholder friendly. the sore two have been growing through some acquisitions but they're both valuable and i love the optionality, and yet the economic activity is just great. >> it's not that i hate the big banks, but i like these better. south street 1.6 billion, it's a real pleasure buddy. good to see you. >> always great to be on. that rumbling sound you here, rolling out their earnings this week. joining us and joining us. is usefz squally at kanter
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fitzgerald. ed, we're going to start with you, and focus on a name i did not mention -- yahoo. it continues to transform. ed with your expert eye, tell our viewers what it is. is it a search company? a media company? >> you hit the nail in the head with that question. people are still trying to figure out what yahoo wants to be. they have a lot of readers, eyeball, search, content, e-mail is part of their business. until marisa mayer tells us it's hard to know. >> at this point,ali baba spin is all out there bejoined the cashes that's in the stock, why they should own yahoo, and what the value is beyond that they've
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got a lot of cash as well. they have to start using it in? way that's helpful, that's efficient. >> yousef i want to turn to you. where do you find the most potential up side in the universe you cover. >> it won't be -- we think it's going to be probably more on facebook, it remains our top pick. we see there's a number of things helping short term you're seeing more and more video ads in the news feed. you know the format is coming at a higher practiced, and the ad load for videos this quarter has gone up. longer term at least three vet -- instagram probably in
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2016 whatsapp, and messenger. >> you look at the nasdaq it's done well but qualcomm is down about 15%, a huge disappointment for its investors. when you look look at it, any i'm of a turnaround? >> we don't seed one right now. the stock got pressured last year because of the regulatory issue. the more recent issue is by samsung to go internal with a lot of the chips that are used in their phones. as we look into this particular quarter, i think this was news to programs investors. >> all right. cried, ed and yousef we're
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going to have to cut it short hair target after a hike weejend. courtney reagan is here shoppers went crazy over this stuff. >> they went looney for lily. out of 150 designer collaboration that target has done lily pulitzer has created the buzz. most had merchandise gone within minutes of opening early sunday. many tonight signs down quickly, because there is nothing left to sell. because of black friday comparable traffic levels it wasn't fully loaded until about 5:00 a.m. the retailer metered traffic or limited how many people could access the site at one. target says the site never crashed, but did have to take it
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down for 15 to 20 minutes. targets is apologizing for the inconsistent -- but not for running out of items. she planned on that product lasting into pay. so much for that. there are some hoping that there's a resale market. some were asking a thousand bucks for a $60 chair on eebay? win for the retailer who is hoping to regain its cachet. they're talking about it. the last time they had this sell outwith the missoni collection. >> that's what's interesting. it doesn't help with the buzz. the buzz though is still important thank you. bri?
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>> who doesn't need pink green and yellow dresses. let's set the table for the rest of the hour. two pros talk about how they're playing today's surge. plus a big upgrade in the oil world. >> and the, squad is back in action. we'll get a preview of ibm, big blue after the bell. first ed headed back to the 2k3wu68 of mexico on the fifth anniversary. jackie deage his is live with the big changes that have taken place. jackie? >> good afternoon. companies are investing big in technology to make sure it's still of this mag any further never happens again. who's doing it what they're doing and what the government is saying, that's all next on "power lunch." the quietest or nothing. the sleekest... ...sexiest ...baddest ...safest, ...tightest, ...quickest, ...harshest, ...or nothing.
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26 of the dow stocks are hot. unitedhealth and pfizer have joined the red. apple is up 2.5%. it's unbelievable. apple is up 15% this year the market cap, america, is now $726 billion. that's almost exactly double the next most valuable company in the world, which is exxon mobil. apple twice as big as exxon. incredible. speaking of big oil companies, jackie deangelie is in nor ko
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louisiana. a lot of changes. is there real talk that the rigs they are building and operating now will be safer five years out than five years ago? >> reporter: we certainly hope so brian. while it's not business as usual here in the gulf of mexico i will say business is continues and offshore drink is continuing as well. since the spill about five or six new rigs are online and they say think expect 15 to 20 new platforms come online in five or six years. companies are investing in technology. what's key right now in that technology, to make sure that wells are designed better. also, to increase blowout prevention, and also better contingency equipment. remember, it took 87 days to contain that spill.
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that was a big part of the problem. in preparation for this anniversary coming up companies like houston-based marine well containment they've been touting that you are advancements and talking to companies about adopting some of that technology. big oil will tell youly 20% to 30% less official to drill in the gulf they're keeping up with the advancements. the obama administration recently proposing new rules to strengthen the oversight of blowout preventers. the reports is that it costs about $800 million over the course of the next ten years, but companies are saying they have adopted these measures already, because they don't want to see this happen again. speaking of bp, by the way a big interview tomorrow.
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i'm going to be speaking with bob dudley the kreismt off of bp. i'm flying to houston. theoretically i'm flying to houston, but if you look outside, i might be walking to houston. still ahead, do not expect to see many new models at this year's shanghai show and we're not talking about cars. interesting video. that's coming up next. the bulls are in force on this monday. they are all in the green. we are right back. male 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
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stloo check this video out. cash goes flying after a car descend. it's all caught on video. two men collide with a silver car sending nearly $42,000 worth of chinese money spilling onto the streets. the men were supposedly carrying the money as part of a business deposit deposit. amazingly no one was seriously injured. >> that's scary video. glad they're okay sticking with cars in china,
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the shanghai auto show kicks off this week. >> we know geneva the detroit show. what is shanghai known for? what are you looking for? i know people in detroit and frankfurt say, wait a second our shows have been around for generation, how can you say that? it is bigger but all the of the makers are there. some serds introducing some crossover vehicles. why are they doing that? that's because you're seeing huge growth when it comes to suvs there. part of their global expansion when it comes to suvs, 300,000 in annual sales in china for mercedes. that is a huge market for mercedes. when you look at what we're seeing when it comes to suv
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demand, these numbers will blow you away. last year sales up 37%. they'll be making over 7 million annually by 2018. growth in this chart is astounding. that's just the suv market. we are talking earlier today about the growth of suvs in china. >> like in most other parts of the world we see strong dynamic, clearly growing stronger than sedaning and other body types. therefore, that market is the place to be. >> what's driving all that growth? look to inner china. we were there a couple years ago. this is about 4 hours away from shanghai and beijing. a lot of that because of the surging demand in inner china, but we are starting to see auto inventories rising is it possible that china's auto
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market is facing a bubble? >> i don't think you have any type of bubble where all of a sudden people say, my god, this is the end of the growth of this market, we just need to get rid of what we have. >> and that rising inventory is a concern. people are looking at it saying you're going to have 7% oar 8% growth this year nice but not double-digit growth yet you still have more production coming online there. >> you were sort of joking around. brian was making some very oblique references to what shanghai has been known for, but phil, let's get down to the heart of the story. there's big changes going on on the floor the the shanghai auto show. >> this is from a couple years ago. >> that's not what i was referring to. >> this is primarily at the china auto makers' stands. if you go to a gm a ford a mercedes stand, you will not sigh it but the chi ease auto makers was over the top.
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the less they were wearing, the more interesting it became is the mantra. they have told the automakers tone it down so i haven't seen as much video this year of those models. i have seen more of the car model out of shanghai. it was an eye opener the first time el went over there in terms of what the automakers were doing. >> melissa, i just want to be clear, i swear, i honestly just meant the types of cars. geneva is known for the crazy concept cars. droid you get the new -- >> okay brian, whatever you saying. >> you're not going to believe me are you? >> i'm not going to believe you. america still doesn't believe you. >> phil? >> no i don't. >> have you driven the new ndong fang. >> sing i'm not in china, i have to be honest i have not. >> okay. soon. a big upgrade in the oil world to talk about.
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we call it "street talk" coming up. speaking of oil. final trades are crossing and crude oil having a heck of a month. another big day today. "power lunch" returns after this.
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i'm mary thompson here's your cnbc update at this hour. illy prime minister is comparing the -- to slave trade off the african coast. he was speaking with malta's prime minister. iran is charging a journalist jason rezean the post bureau chief in iran was detained last year. the charges carry a maximum penalty. bmw recalling nearly mini coopers to fix a problem with front passenger air bags. the recall affects cars from the 2005 to 2008 model years kraft says it's revamping the macaroni and cheese
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removing synthetic colors and -- and that are perceived as being healthier for them. that's the cnbc business news update at this hour. back to you time for "street talk" analyst recommendation on talks need to know about. marathon morgan stanley upgrading it. up 20% up side. the analysts say they like the discount that marathon has. and others upgraded marathon last week. >> what a performers over the last month. going into the cash the company reporting on may -- for 2015 and 2026 going to the quarter. but it says it sees declines more normalized rates, and they
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say apple is fairly valued at current levels. i have to say it apple up -- i should call it uple. it's up-lle. it is worst two exxon mobils twice as business as exxon. that's big. like the yankees versus the royals' payroll. another morgan stanley call with an overweight they have a 41 $target, they called the cash flow robust and said it's high leveraged to any commodity improvement, of course assuming we get one. just this month theft doubled their electricity-generating capacity. and so that, of course will save them. that's something that analysts are looking at. ngic, a new 52-week high on an upgrade from credit suisse.
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final version of -- she tried to say -- eligibility requirements and they were more favorable than expected so mtg legacy insurer, as well as radiant check -- >> see, i screwed you up with the up-lle thing. >> i know the average rating on the stock is overweight at 1150 not everything wildly bullish the last stock always the under the ray day. platform special products. pah, really a miami, credit suisse starting coverage with a $32 target. the average rating is overweighted. i have never heretofore heard of said corporation. >> i was going to say the same thing. we'll get more information when they record earnings on may 12th and i'll be looking out for them. >> it mike merit a week-long
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jaunt to miami to seek them out. >> maybe. all right. it is time for trading nation. traders do trade better together, and we are looking for the best sectors to buy right now. todd gordon specializes, and andrew berkeley is open hyper, we'll start it first. what would it be? >> sure brian, the strongers sector is the xly. if you look back at about a six-month change you're going to see the health care and consumer discretionary are the two top. i think discretionary has held in very well. we have seen a period of two-month consolidation, which led to a nice breakout in the topside. the we have a cup 8 more week under we're at that two-month mark. i'm long xly with the call spread. i'm looking to add once we break
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at about $78. >> all right. andrew berkeley your favorite sector from the fundamental standpoint or technical, whatever you want. >> i think longer term or favorites techbd to be overweight. in terms of earnings growth they'll be earnings leader again, but how about the xle? that might be the best play so kind of near-term perspective. i like the pattern i'm seeing where estimates were just slashed so much coming interest the earnings season. we've seen a couple big names already, so i think energy could be the surprise for the second quarter. >> i did not know you were going to say there. i'm going to be flying to houston, spending a couple days there, a bunch of big-energy cos, and get to the bottom of whether this run up is just a short-term rebound, or did we really find a floor and have strength as well. so andrew todd thank you very much. for more tradingnails nation at
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tradingnation.cnbc.com if you look at a chart of crude oil in the past month, we've up 24% shares of hall burg aren rising today. revenues fell, operating income was down 54%. all because the drop in drilling rig activity, and halliburton says it could continue to see pressure until the rate count stops falling, as oil continues to rise. and i am headed to houston tonight theory kale one of the biggest oil conferences in the world. what you need to know is we'll be speaking with some of the biggest names in energy over the next two days include the cos of
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pioneer, bp it's a truly global conference. you want to tune into cnbc over the next couple days. in fact my flight is so soon i'm going to leave now. >> oh, no don't say that brian. >> as you pump your fist off-camera. yes, he's gone. >> it's going to be a great couple days. safe travels. >> i'll have eight, nine hours at newark so if you're there, come out and say hello. i'm a friendly guy. >> sue you later, brian. >> thanks. we'll wrap up all big movers of health care plus what age can you retire? in fact many are financially unprepared to retire at all. how to figure out your real retirement age, next on "power lunch."
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a noise moment today. winning the race in 2 hours, 9 minutes, 17 seconds. this time he gets to enjoy it. he won two years ago, the race that was marred by the bombings. he gave that medal back to the city of boston. on the women's side caroline from kenya was first to cross the line. shares of jean otherapeutics, based on news out of that big cancer conference over the weekend. what is going on? >> yeah these are stocks in a basket known as car-t therapies. you're actually taking a patient's cells out of their body beefing them up to better detect and fight cans and reinfusing them. these volatile names in this huge run-up. you saw last week some of these names, juno kite and novartis
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is a very big name in the space and not quite as volatile. what people were looking for was data to see how well they could work in solid tumors like lung cans are, because so far they've shown great elf indication in blood cancers. people are saying maybe the efficacy wasn't quite at strong. really this is an early study. so it looked basically good on the safety points analysts are saying, and coming up saying it's hard to compare to the solid tumors with the blood tumorses, but everyone is excited about some of these developments. all of those are very positive data, seeing merck up more than 1%. >> they would go head to head with bristol-myers, and their drug is already out on the
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market. >> they're both on the market. merck has approval in melanoma so far, and they're all trying to expand in different ways you seeing this come down to a head to head so those are some of the questions coming into the next big cancer comfort in may. we're going to ask you how do you position yourself to win here? >> and juno are a kite are clearly the lag guards. are analysts defending them? says a death nell for what is being developed? >> you knee the gains they've had. and they're all up around 10% last week leading into this so maybe given about that much back today. nobody is saying they're not going to work in solid tumors but it's incredibly early and these are volatile names. can you retire early?
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nearly 3 out of 10 expect to retire before 65. unfortunately many americans are unprepared to retire at all. how to figure out at what age you can retire. >> this is a question that everyone wants to try to answer. your retirement age shouldn't be left to chance there are important variables. first is how is your health? poor health can have a greater influence than finances and a couple rye tires will need as much as $320,000 to cover medical expenses in retirement according to health view seniorses. a 55 years old couple retires at 65 will need $465,000. if you don't have health care costs factored in you may want to consider delays retirement until you do. how long to live. how much income will you need? estimate how much income ute get
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in retirement and subtract the debt you'll pay off. how long will it allow you to maintain your lifestyle? you may find out you node to ramp up your savings. the center for retirement research at boston college says if you save 15% of your salary over 30 years, you'll be able to retear comfortably. save more and you can likely retire early. it can help you figure out what hang can you realistically retire. >> sharon there are a lot of people who already less than 30 years away from retirement so the advice about saving is falling on deaf ears. at this point what can people do when he go through the calculation and find out they didn't factor in health care costs or a life expectancy. >> the answer is relatively simple, they need to save more much more than that 15%, or continue to work longer or think about how they can reduce their cost of living. that could be cutting back on the lifestyle that they have right now, where they're
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currently living. that could be moving to a place that's less expensive. also think about some of the factors that contribute to your lifestyle today, may be very different from when you retired. you may not have the same expenditures or as high expenditures, so you may not need quite as much money as you think, but many people frankly haven't saved enough. it's not too late. you just have to be austere to figure out what can you cut back on and how to save more. >> great advice. sharon, thank you. ahead of its earnings report after the bell. the earnings squad will tackle that one next, bus the real-life house that inspired the movie "up" is up for sale. we'll go there live when "power lunch" returns.
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welcome back to "power
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lunch." the dow gaining back a lot of what it lost on friday's sell-off. take a look at the individual stocks making big moves. hasbro sales beating expectations transformers the area of growth. royal caribbean moving in the other direction, reporting weak fourth quarter earnings. it blames an increase in fuel prices compared to january. an iconix brands they license joe boxer, london fog and many others. the company's coo announced his resignation late friday. it is not going to search for a new coo right now, the company says. today we are joined by josh lipton, as well as "fast money" trader, brian kelly. the 13% of s&p 500 firms reporting so far, 76% have beat estimates, 12% met estimates, 12% reported below forecast. ibm is reporting after the bell
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today. josh, what are the analysts looking for in their earnings estimates? >> well, melissa, when ibm reports after the bell, here's what analysts will be looking for in the earnings report one, how quickly is ibm scaling what the company reefrz to as its strategic imperatives, spekt live cloud around liftic ic-- analytics and businesses. these business lines generated some $25 billion in revenue. two, investors will want to see a strong free cash flow number. rbc is expecting a number north of $2 billion for the first quarter. that gives big blue the flexibility, of course to do buybacks and make acquisitions. three, signings which reflect future revenue growth in the services business. that number in recent quarters has been lumpy in q1 the street will be looking for $12.66 billion. guys, back to you.
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>> thanks for the lowdown, josh. brian kelly, out to you. josh mentioned buybacks. ibm reduced the amount it was going to buy back in the first quarter. that had always been a floor underneath the stock. what's your general view here? >> that makes me more bullish that not everybody else is bullish. you have to look at ibm, one, the fact that they have financially engineered earnings for the last year they're probably the poster child for that. that is no longer being rewarred by the market. so when you look at ibm, you have to say what else is there out there that's going to boost those earnings and change those analysts minds? to me josh hit on it, analytics, watson. that's the future of the company. if you're buying ibm, you are making a bet that they're going to be able to pivot and watson will be their pivot point. >> it's all on watson. right now, isn't that a small percentage of revenue? everybody says cloud is where it's at. at the end of the day that's a small percentage of revenue.
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these are strategic growth initiatives. a lot of people saying she's overstretching and overpromising. >> that's the real question can they financially engineer long enough to keep the core businesses going and keep beating lowered estimates or regular estimates to get these things ramping up? it hasn't been rewarded recently but look at the stocks traded. we've traded sideways for a couple months. i think a lot of the bad news is price into ibm. you have the potential after this earnings report that wall street starts to pick up on, maybe some of these strategic initiatives are working. look at what meg whitman did with hbq. she set out a five-year plan but the stock ripped. it's all about analysts getting on board. >> brian bullish on big blue going into tonight. we'll see on "fast money" tonight. thank you. >> yep. >> that does it for the earnings squad. the house that inspired the
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movie "up" is up for sale. we'll take you there live. lots of green squares on the s&p 500 heat map. all over the markets, straight ahead on "power."
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management strategy the same way to create a financial plan built to last from generation to generation. we'll listen. we'll talk. we'll plan. baird. in the us, three in ten college students drop out. but how can you spot who's at risk? the one who lives far from campus? the one who works the night shift? the one with new responsibilities? one thing can't tell you, but the right combination can. universities are using ibm analytics to understand pressures in and out of the classroom- some expect to cut dropout rates by twenty-five percent. ibm analytics is working to make education smarter every day. two big named stocks you know increasing dividends. first, procter & gamble upping its pay outby 2 cents a share. the stock had a yield over 3% and costco raising its dividend
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to 40 cents and announcing a new $4 billion stock buyback program. homeowner refuses to sell, developer builds a mall anyway surrounding we house. the house is in foreclosure. diana olick is there in seattle. >> reporter: melissa, in just about six hours, the fate of this tiny house with a very big story will finally be decided. that's when the auction bidding closes. the folks here in seattle's ballard neighborhood call it the "up" house because it so resembles the movie "up." . in this story you have to start with once upon a time there was edith maysfield. she grew up in this house for many decades. when the big mall developers came knocking on door. she did not answer even it is reported for $1 million. the mall went up around her, walling her and her 600 square foot home in.
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after she died in 2008 in 86 years old she willed it to a construction worker she got to know as the mall was built. he then sold it to an investor who defaulted on the loan. the house is being sold by the lender in a closed bid auction. martin says the story became so much bigger than edith and because of that the value now is really anyone's guess. >> it's turned into a lot bigger than what anybody would ever thought. >> what edith would have thought. >> exactly. so it's -- i'm not quite sure. it will be very interesting to see what actually comes of it. >> it could really be anything at this point. it could be a restaurant. it could be an offensive or it could be demolished and just be taken over by the development. a lot of folks are hoping someone will come bit house, lift it out of the lot and put it somewhere else. the lender the seller says there must be some tribute given to edith maysfield for whoever i booze the home.
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>> what a remarkable story. thank you very much. diana olick. once again, we are watching the markets to rally today. technology is a strandout. check out the nasdaq 100 heat map. this of course ahead of a big week for tech earnings. tonight, ibm after the bell and an exclusive with the ceo of lionsgate. "closing bell" starts right now. welcome to the "closing bell," everybody. i'm kelly evans at the new york stock exchange. >> i'll show the wires. i couldn't hear a word what kelly said. she was going to say she's at the new york stock exchange. i'm bill griffith. i'm at global headquarters because you'll see me later on pbs. the stock market is down sharply on friday. the finishing down 279 points on the dow and friday because of concerns about greece and

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