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tv   Power Lunch  CNBC  April 30, 2015 1:00pm-3:01pm EDT

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we've got ism to begin tomorrow. where's the market going to be that's the problem. >> and josh fire eye. >> yeah. this will be fireworks. you've got a 12% short position there. that really hasn't budged even though the stock is 31% this year. >> thanks to all of you right now. "power" begins right now. halftime is over. "power lunch" and the second half of the trading day start right now. >> good afternoon, everybody, welcome. i'm tyler mathisen. the major averages posting gains for april but ending on a bit of a downer. the dow going back and forth with triple-digit losses. is sell in may for real this time going down to real. is the big correction finally coming? exxonmobil blowing away earnings expectations despite all the fears about the impact of low oil prices. and we peel back the shroud over the super secret world of swiss banking. the person at the center of it all, his shocking revelations.
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it is an exclusive you won't see anywhere but on cnbc. >> as you were saying a positive month but ending with losses with the dow and s&p 500 down for the third time in four days now. the nasdaq down for a fourth straight session. it is currently off by over 1%. the major averages up however, for the month of april. having their biggest drops today, though since april 17th which is approximately two weeks ago. check out oil, though having its best monthly gain in six years. crude is up more than 24% over that period. bertha coombs is at the nasdaq jackie deangeles at s&p. bob, is there something more to this? >> i think the problem is we have continuing concerns about the inability to get earnings up significantly. we're flat but not moving up very much. i think we would have ended april last week because you're right, we haven't had any energy at all this week.
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look at the s&p 500. we're to the downside and moving sideways and we're at the lows for the week. really we're having a lousy week overall and it's really affecting the nice april gains that we had going into it. we're still up but look at this. the russells had a terrible week, the transports are lousy and the s&p is down 1%. there's been a whole bunch of groups that had a really tough time this week. i mentioned the weakness across the board in health care. i'm talking most of the big pharmaceutical names abbott cardinal health, tenet has been weak. wellcare have been on the downside as well and they're down again here today. another group i've emphasized that's not had a good wokeeek and again today are the retail stocks. coach has had a terrible week. it's down 10%. target is down 5% this week. it's down again today. chico's is down again, kohl's is down. one little bit of good yuz, conoco phillips came out with a
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loss of 18 cents but it looks like this is probably the trough period. from here it looks like they're going to have a another loss tyler, in the next quarter but very small, maybe two cents and maybe at this point the worst has already passed for them. tyler, back to you. >> bob thunderstorm watchank you very much. let's head to the nasdaq. bertha coombs tracking the action there. >> apple now down three days in a row. the last time we saw it do that following its earnings was back after disappointing numbers in january of 2014. for the week it is down although it is up for the month. but we are seeing apple after having touched that all-time high falling back below it's 50-day moving average. some of it may be the negative headlines on the tap touch technology not working as well as they hoped. biotech among the worst performers of the day and this week down 7% over the last four days. part of it some disappointing
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numbers. people were looking for a bit more growth. celgene moving to the downside and the worst performers overall are the social stocks. yelp disappointing, baidu disappointing, twitter coming back a little after that horrendous day yesterday. at the bottom of the hour i'll tell you what the best performer is here at the nasdaq this month. >> look forward to that. a monster month, meantime for oil. it's up more than 20% for april, huge earnings today from exxon, even though they were lower than last year's. the oil giant did easily top expectations. jackie deangeles following the story for us at the nimex. >> good afternoon, tyler, hello. you're right, it was a monster month for oil and a lot of traders and analysts are telling me that in fact prices are supported here. they probably can even go slightly higher over that $60 mark and that means that they think the worst is over for big companies that are going to report. for example, exxon. this morning the company reporting a profit of $4.94
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billion or $1.17 a share. analysts were looking for 83 cents a share but keep in mind it was a rough quarter because we've seen oil prices fall so far, so fast in the last year. the good news however, the company continued to cut costs to help that profit margin and also keeping its business -- refining business going very strong. that decline in oil pricing helped with the refining margins. the company also saying it doesn't expect that prices will rebound very quickly from here. having said that, capital spender expenditures reduced to $34 billion. the company is buying back a billion dollars worth of stock this quarter and announced yesterday that it's boosting its dividends. so it seems like it's positive for the stock. as i said if most people think the worst is over it probably will be. of course we'll hear from chevron tomorrow as well. thank you. let's get out to dominic chu for a market flash. >> a red name in the media space
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is viaviacom down by 2%. it's been in the red most of the day after disappointing second quarter sales due in part due to foreign exchange issues and a drop in film entertainment sales. profits, though beat for the quarter at an adjusted $1.16 per share. that was ten cents better than estimates. mandy, back to you. stocks on track to end the month -- today they're red but they could end higher by 1%. the dow and the s&p as we can see are down for the third time on four days. on "squawk box" david bianco says we could see a 5% to 10% dip this summer. should you be selling in may or should you be staying and playing? joining us now, the chief investment officer at bemo private bank and ernie, cio at bren brenmore trust. jack what do you mean
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recommend? sell or stay? >> the long-term results are remarkable. if you take may through october and careompare it to november to april, the results are astounding $1,000 invested in 1900 from may to october collectively only amounted to about $2400. if you took that same $1,000 invested it from november to april, that has expanded to $130,000. so it's remarkable the difference. the thing is it's hard -- and i would say that huge divergence started in roughly the mid-'50s but it's impossible to explain what's caused it. the last thing is that if you want to get out of the market keep in mind the last two years while may through october did underperform the previous november through april, they were -- it was positive in both years. so you know it's a risky game
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unless you can figure out what is causing that huge spread. >> ernie, what would you say to this question about may? >> hi mandy. yes, well we don't manage assets as cliches. we look at the market as being fairly valued. we see valuations as being fairly full at the market level. however, unlike last year where the rising tide if you will lifted all boats, we think we're more in a selective market and we think the correlations between the indices and individual stocks has definitely deteriorated thus far this year thus really making active management more successful. so we're looking for companies that have strong returns on invested capital, strong cash flows, low leverage and can sustain themselves in a market that in our view will become and is becoming more selective. >> and you're selecting novartis that's your pick
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right, ernie? >> yes, right. novartis is a pick that we like from a sector perspective, mandy. we like the health care sector. we like the demographics. growth in terms of population the emerging markets as well as aging population in the developed markets. novartis is a company that's been focused on innovation has a number of interesting drugs and has also really managed itself, divesting itself of lower margin businesses. so its focus really on innovation in terms of managing the business from a profitability perspective. >> jack, very very quickly. sorry. just to get jack's thoughts as well. you like europe and japan better than the u.s. and you've got emerging markets on your watch list. what would take them off the watch list and on the buy list? >> really just some more positive momentum. the fact is the bottom line is we like cheap markets that are moving in the right direction. we'll continue to hold markets until they get expensive, like
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the u.s. until they lose their momentum. right now momentum here at home is still pretty powerful. however, europe and japan trading at roughly a 20% discount to the u.s. emerging market trading at a 40% discount to the u.s. so that's where my incremental dollars will go. >> jack and ernie, thank you for joining us and you can go to powerlunch.cnbc.com to see why jack thinks oil may still fold at $20 a barrel just as things seem to be recovering. he's bearish. ty. shares of sales force.com taking a hit after they hit an all-time high intraday yesterday on reports of a possible takeover. who could buy it? it would be one of the biggest tech deals ever. who could be in the running, we'll take a look at that. plus checking in marriott. shares taking a hit on the outlook there. marriott's ceo will join us first on cnbc.
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hotel california you can check in but you can never check out. ♪ i heard the mission bell ♪ i was thinking to myself this could be heaven ♪ financial noise financial noise financial noise
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welcome back everybody. royal bank of scotland setting aside $515 million for an expected settlement with u.s. authorities. they wish it was $515. over foreign exchange manipulations charges. shares of alcatel lucent
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falling almost 40%. criticizing the terms of the company's proposed sale to nokia. and general motors plans to invest $5.4 billion on its u.s. manufacturing plants over the next three years. the move expected to boost production and vehicle quality. shares of marriott are under pressure today, but it is of course a generally down day. but this was despite profits and the company beating the street by three cents a share, up 20% on last year. but the revenue looking a bit light and guidance was cautious as well. simon hobbs joins us now with marriott's ceo with a first on cnbc. >> thank you, mandy. he joins us from the new lobby. >> hey, simon. >> i'm trying to scare with these results what's going on. on the one hand we learn that the economy basically ground to a halt but your revenue per available room is up 6.9%.
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what's going on? >> we had a very strong quarter. i'm not sure i can tell you what's going on in the market today, but we had a really good strong quarter. on the high end of what we anticipated for our same store sales growth. and we see steady as she goes as far as we can see. >> i guess you're lucky 80% of your revenues come from this country so there's not such a big dollar effect and you're less exposed to cities like new york city where tourists are under pressure. within that why is the limited service sector doing so well? at one analyst put it at sun trust, cordurtyard absolutely crushed it this quarter. >> courtyard did very well but all of our limited service brands did well. i think a piece of that is the luxury hotels came out of the recession faster and so the limited service hotels are catching up a little bit. i think when you look at
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courtyard by itself that brand has also been reinvented. all of the lobbies in the united states have been redone. most of the guest rooms have been redone. hundreds of millions of dollars have been invested in those hotels. i think we're getting some payback associated with that. there's a bit of question around this new york piece. you talk about inbound travel to new york. one thing we were pleasantly surprised by in the first quarter is international rivals to the united states were up about 1%. notwithstanding the strong dollar. and i think that's based on these strong global travel trends where we've got new travelers from china and indy why and africa that are continuing to be on the road. >> i read someone describing your performance on the conference call about starwood putting itself up for sale arne, is somewhat coy. that may be partly why the stock is down. would you bid for part of starwood? >> well, what i told the street this morning was that we've done
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a number of m & a deals the last four or five years. what we found in them is compelling economic terms. and we found good organic incremental growth that we think would come from those platforms. i think when you compare starwood in those terms, it doesn't compare very well. obviously we didn't go on beyond that. i'm not going to get into a long conversation about whether somebody should buy starwood or not but it's a very different-looking deal from the deals we've done in the past. >> though i note that you're not ruling it out in fairness. you're being very careful about the words that you're choosing. >> well, that's right. although i'm certainly not predicting that this is anything that's likely to happen. >> it's good to see you, arne thank you for joining us. arne sorenson joining us. >> thank you simon. >> the stock is up 40% over the past two12 months.
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>> originated in washington, d.c., i believe it's based in bethesda maryland. salesforce.com a stock to watch. it hit an intraday all-time high on the rumors of a takeover. the two most likely bidders could be oracle or microsoft. josh lipton is live at oracle's media day at redwood shores california. hi josh. >> reporter: hi, tyler. you know salesforce a new market leader and one that is growing fast. it could hit $10 billion in the next few years. the challenge would be the size of such a deal. it could be as much as $64 billion. now, if these reports are true there's really three potential suitors analysts are focused on. one would be oracle. larry ellison's company buys salesforce it could become the undisputed king of the cloud and double its growth rate.
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the copsns regulatory scrutiny. also microsoft. now they broaden their portfolio of apps and cloud revenue stream. remember, those two companies are already partners it's a relationship that has deepened. the potential cons would nadella want to do a deal like this right ahead of a major product launch windows 10. finally, of course there's ibm. the ceo clearly focused on the cloud and scaling that business. there isn't a lot of overlap in its applications but eric points out the potential challenges there ibm has $25 billion in cash. i am at oracle headquarters at this media event. you can certainly expect the executives at oracle to field a lot of questions from the media about these reports, so stay tuned. tyler, back to you. >> all right josh thank you
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very much. check these out, these are monet and modigliano works. all from the estate of john whitehead, a respected and savvy business leader. christey's all auction it off next month and we've got an exclusive snukeak peek you won't see anywhere else but here on "power lunch." why do we do it? why do we spend every waking moment, thinking about people? why are we so committed to keeping you connected? why combine performance with a conscience? why innovate for a future without accidents? why do any of it? why do all of it? because if it matters to you it's everything to us. the xc60 crossover. from volvo. lease the well equiped volvo xc60 today. visit your local volvo showroom for details.
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when john whitehead passed away last february he left behind a stunning legacy as a true american hero and it man many consider the moral compass of wall street. a world war ii navy veteran, he was at iwo jima harvard business school. goldman sachs co-chair deputy secretary of state new york stock exchange director, chief and head of the 9/11 memorial museum. as if this hasn't enough whitehead had the midas touch for a world class art collection. on may 14th christey's will auction off this collection with much of the proceeds going to charities he favored. mr. jordan welcome. good to have you with us. he turned out to be a masterful collector of largely what? 19th and early 20th century french works? >> exactly. impressionist and modern art was his passion. he tackled that subject with
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great dedication. he decided that he wanted to concentrate on one area of artist production. >> and he lived with this art. >> absolutely. his home was full of art as well as his office and as was his office in washington when he was serving in government. >> i love the story how he decided to buy one for $10,500 back in the day and look how it's turned out. i have to ask you, why did the estate decide to go the auction route as opposed to donating to a museum? >> well i think mr. whitehead had lots of charitable concerns so there is money going to several different areas. it was by far the simplest to presenting the works at auction. >> it is the middle of may. may 14th? >> 14th and 15th. >> let's talk about the pieces that you brought along with us which are two of the signature parts of the collection. start with the monet on your left camera to the right there, and describe how much it's likely to go for.
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>> it's a marvelous example from the mid-1880s when he was settling into his home and he was challenging what he had done before in terms of he was starting to paint pictures that didn't have people in them. they were empty in some way but mech concentrating on the effects of light. this type of painting has been very popular over recent years with collectors who want to have a great example of impressionism. >> he went a little farther south on the modigliano. >> it was actually painted in paris. he came to paris before the first world war and this is a picture of his lover at the time beatrice hastings. they had a wonderfully tempest tempestuoutempestuo tempestuos relationship. >> i love how you said
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wonderfully tempestuous. >> is there any indication on who might be the buyers of these pieces and some of the others? if you take a look at the list of honorary pall bearers, it's a list have who's who. mayor bloomberg, blankfein, so many people who possibly are art collectors and might want a piece of their friend to remember him by. are any people like that perhaps stepping forward? >> we have already had interest from a number of people who are collectors who knew john whitehead well but we're also seeing interest from other regions in the world. of course europe even asia where the whitehead name has great resonance. >> if you don't have a spare $7 to $10 million, there are things that aren't at that price point. >> exactly. there's everything from a drawing at $500 to through to these master pieces behind me. >> connor thank you so much. >> my pleasure. >> go to powerlunch.cnbc.com now
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for more on john white head's life, legacy and art collection. and after yesterday's fed statement, is a june rate hike now completely off the table? and how do you play it? plus -- >> today's powerhouse is home to the third busiest airport in the u.s. it boasts more than 300 museums. and it is the only city to have hosted the summer olympics twice. can you name that city?
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i'm sue herera and here is your cnbc news update for this hour. german see says it has thwarted a planned terrorist attack in the country by arresting a married couple. they were plotting to set off a homemade bomb in a place where a bicycle race is to take place. police searched their home and found a pipe bomb packed with nails and other explosives. 2,000 students marched through central milan to protect against the exposition ahead of its opening do. the expo is just a show dpiescase
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for multi national food companies trying to mayor profits on their lives. general motors will invest $5.4 billion in u.s. plant improvements. the announcement was made at a sercht center where $124 million will be invested. michelle obama said it fell in love with the whitney museum of art in new york's meat packing district. she shared her view of the $22 million building after a brief tour before participating in the ribbon-cutting ceremony. and that is your cnbc news update at this hour. back to you, mandy. >> thank you so much. let's take a look at what's happening with metal prices specifically gold prices which happen to be closing right now. we can flip over the board and show you what they're doing. there we go 1182 moving to the downside and backing further away from that 1200 mark. you've also got silver moving down. copper, however, this is interesting, jumping this morning to its highest so far
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this year. palladium and platinum also down. >> this is shares of delphi automotive up by 1%. the company reported first quarter results that beat both on the top and bottom lines. meanwhile delphi's ceo said the company will probably make an ak acquisition this year worth at least a million dollars. volatile day to end april. the dow with triple-digit losses. let's get some of the reports on the trading action from bob pisani on the nyse floor. >> we are having a difficult -- not a difficult day, a difficult week overall because there's a collision of several trades that aren't working very well. i just want to show you the s&p. i wish we would have ended april a week ago because ever since monday we haven't had much energy. we're sitting at the lows for the week here. we have crowded longs. that's the problem.
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there are three trades that have worked all year. number one, everybody is long on the dollar everybody is long germany and long health care. this week we've had weak economic data. it's lowered the dollar strengthened the euro that's hurt germany, and we had disappointing earnings from biotech stocks that made health care a little bumpier. so a lot of stuff is coming slightly unwound. profit taking in these areas is causing some of this volatility. other stocks that have done well and had a great time have had a tough time this week. airline stocks great start to the year. they're down about 4% recently. retail stocks have done great. this week some of the big names are down 4% or 5%. and home builders had a great start to the year as well but as we've been getting fair -- let's call it fair home building reports the last couple of weeks, the home builders have been rolling over. they're down 3% or 4% as well this week. mandy, the bottom line is a lot of long trades long ideas have
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been coming a little unwound this week and that's giving the market a little bit of indigestion. back to you. >> thank you very much for that, bob. let's head to the nasdaq because this is the biggest loser from a percentage point of view. bertha coombs, what's happening now? >> one of the longest trades going is apple. remember apple hitting an all-time high with those record earnings? that's so four days ago. apple now off about 6.5% from that record high it hit on monday on very strong volume. you're just seeing folks take some profits. apple has really struggled when it hits these big numbers. it really seems to get to resistance. in february it took a while, it was down in march, up this month but the slimmest gain in a long time. the nasdaq also having closed at an all-time high finally last friday slipping below that coming back and being dragged down by apple, but not just apple, small caps. small caps had a really strong month coming into the month, but
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the russell 2000 is down, the nasdaq 100, despite apple's loss, is the best performer of sort of the sectors when you look at the nasdaq. biotechs have now corrected nearly 10% from their all-time high back on march 20th. and chips continue to be a drag. biotechs in fact in terms of the big caps are ending a six-month winning streak. the best performer this month in terms of the impact of really moving the nasdaq higher microsoft. how about that? microsoft and apple kind of trading places here. microsoft with its best monthly gain after some pretty good numbers for its earnings since 2007. it added about 73 points of upside tyler, out of about 108 points to the nasdaq 100 this month. back to you. >> boy, we have not seen those kind of moves in microsoft in years, bertha. >> that's a whole new era perhaps. >> thanks very much, bertha. to the bond market rick santelli at the cme.
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hi, rick. >> hi tyler. you can see pretty much everything you need to see. we've hunkered down in the raining and elevated deals. this looks to be the third day in a row we'll settle over 2% after having 29 sessions between 186 and 199. if you open the chart to february 2nd this is very key because you can see the breakout there. many think the breakout has a lot to do with the logistics of the marketplace. some are saying it was the employment cost index up 0.7 today but so is q-3 and q-2 of 2014 up 0.7. you have to go all the way back to q4 of 2007 to find it up 0.8. if we look at the lqd which is investment quality corporate securities, you can see that it is looking at the bottom fall that's part equities and part interest rates rising. we want to pay close attention to the most popular chart on the floor. february 2nd start of the euro
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yersz the versus that dollar. spring has sprung to the upside for the euro. >> spring has sprung. i think euro/dollar is up about 6%, more than 6% since april 13th sitting around a two-month high. after yesterday's fed announcement, timing for a rate hike seems to be well still uncertain. is a june rate hike, though completely out of the question? ron insana joins us. ron, you put out a piece titled "when was that?" >> i think the fed was a little confusing. they're saying the economy slowed down some factors, inflating being below target that would go against a rate rise and still held out the possibility of a rate increase. the atlanta fed just put out a forecast -- >> not at all this year? >> i don't think so. the atlanta fed just put out their forecast 0.9 of 1% and
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they nailed the 0.2 on wednesday. they had an extremely accurate forecast. so the economy is strangely sluggish. what bothers me more is interest rates are going up as people are selling the dollar because the u.s. economy is not growing as quickly as expected. so it's a conundrum. >> markets hate uncertainty. right now we are in a lot of uncertainty and the fed didn't help us out at all yesterday. do you think there's the possibility that if they decided to hike say in june just a measly 25 basis points would help reduce the volatility? >> i think it would but that's giving them a lot of kred. ron is spot on that hike in june or september is indifferent. that uncertainty, what has it done to the market? caused a lot of anxiety. i know in chicago they're worried and right now 2.07 on the ten-year that presents a great opportunity because we're running out of options to buy. look at the corporations buying
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back at record paces. nearly one trillion this year due to the uncertainty. the fed needs to step up to the plate. it's a very rare -- it's a lonely view. i think it would be a great thing for the market and for the corporations to do a june hike. >> mandy, i'm not sure how great it would be for the markets. the one thing that would work is that the bond market would see yields fall because once the fed starts to raise rates they'll assume the economy will slow further over time. >> but ron, why don't we pull off the band-aid here. it's like a sore tooth and you need a root canal. so get that root canal. 74 months we've been in this bull market rally. the fed has not raised rates in ten years. let's get the party started, let's go. >> it's coming eventually if conditions warrant. the rest of the world is not looking so great still and the bond market is not being helpful here. the dollar is weakening because people perceive the u.s. economy to be slowing. >> but what are you waiting for? what do you want to see? >> i would like to see the inflation gauge, which by the
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way if you look at treasury break-evens, they have been creeping up lately. >> wage gains are also creeping up. >> not that much. >> the fed has been off on gdp how many quarters in a row. so i think the timing would be appropriate. if it's june or if it's september, the long end of the market, the 10-year and 30-year we play a lot in i think they control. the fed is looking to them. they're reacting and the fed is very confused right now and i think it's time to initiate this policy. i think rick stern was talking about it early are. we've seen the tlt go under 125. that's the way to be long in this ten-year note. go back to 1.6 level out of default. look at germany. yes, it moves from seven up to 34 but on a global landscape, look at the disparity, it's very juicy. there's a lot of meat on the bone in the ten-year note. >> because you're sitting next to me you get the final word ron. >> i think it's a little early. i think these correlations are breaking down among markets and
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i think we might be in for some sort of surprise. markets seem to be telling us there's no unified view of what's going on and there might be some rabbit in the wood pile that jumps out and frightens us. that's why i think it would be a little premature to get in the bond market yet. >> thank you very much ron and jeff. to dominic chu for a market flash. >> check out time warner cable shares. the questions are still being asked about whether it's a possible acquisition target or if it will continue by itself. the stock has had a little bit of a rough ride today. it's currently down by about three-quarters of 1%. revenue came in below analysts estimates but added 30,000 residential video subscribers in the quarter. so again a down move for time warner cable. look at oil, nearly 25% higher this month alone. did you miss out on the bounceback or is there still time to invest in oil and oil shares? plus this week's
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powerhouse. >> the city in today's powerhouse is home to the largest government center outside of d.c. it is geographically both a city and acounty. and has 75 miles of beaches. can you name that city? e financial noise financial noise financial noise financial noise
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...this isn't that car. the first and only car with direct adaptive steering. ♪ the 328 horsepower q50 from infiniti. welcome back to "power lunch." check out shares of cme group. those shares trading near their best levels. the profit of 98 cents a share being helped along by increased trading volumes overall and the company's president saying strong revenue growth was helped by interest rate energy and fx-related products, tyler. back over to you. >> dom, have we got some houses for you. time for the powerhouse, wourour weekly look at some of the great houses. home to 75 miles of beaches, we're talking about los angeles. it is a county it is a city it
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is a breath mint and a candy. with us is jasa bishop. good to have you with us. >> hi. thanks for having me. >> we're delighted to have you. let's look at some market stats according to zillow. median sale price in your area it says right here about $476,500. inventory about 18,000 homes. properties on the market for an average of about 45 days. our first listing is 1520 beverly glen unit 507. $799,000. taxes fairly moderate $10,000. two beds two baths, 1800 square feet of living space. tell us about this one and where it is. >> i can tell you it's already sold. that's how fast our market is. >> great. >> so we put it on last week. eight days ago we put it on. accepted an offer last night because the market is super, super hot especially for properties on the right side priced correctly. >> so this is out on the west side. what's it near? >> it's on the west side. it's near beverly hills, it's
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near westwood. it's actually westwood and so it's near pacific palisades, near beverly hills, near everything that people like to be near in los angeles. the beaches. you have so much so much. so it went very very fast. >> now i know where you're talking. that sounds like a perfect location. >> gorgeous. >> our second listing is 9792 suffolk drive. it's just been listed about $3 million. taxes $36,000. four beds 3.5 baths, 3,211 square feet of living space. tell us about this one. >> it's gorgeous. all the floors were laid in place, all hand hewn gorgeous. it's actually a pocket listing. because it's such a heated market, there's so much that people want that a lot of things are traded off market sometimes
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because of inventory, there's so little inventory. >> pocket listing means what in practice? >> pocket listing means it's something that the seller wants sold but maybe they don't know where they're going yet or maybe they -- they aren't really sure if they really want to sell but if someone came and gave them a price that they wanted that they would accept it. and it has its pluses and minuses. i like being on the market because you get all of the populous competing for a property and you get the highest, highest, highest price but sometimes it doesn't always play into what the seller wants as far as what their personal situation is. so sometimes a pocket is a better thing. if they're a celebrity or if again, they don't really know what they want to go to that's a better situation for them. >> let's go to our powerhouse of the week. this one is $18 million. 220 granted taxes, 8 beds 9.5
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baths. i'll let you talk us through it. >> i call this house the house of grace and light. the backyard is serene and incredible. there's sycamore trees, it's private, it's luscious. the inside is architecturally delicious because it has all the old embellishments. it's very old hollywood, very iconic bellaire. i love love love bellaire especially when you have an old original house like this that has kept its integrity and kept its beauty. i can't say how much i love this house. it's one of my favorite houses in los angeles. >> it's in bellaire which is one of the most lovely -- oh my goodness one of the most love low parts of town. that house looks like it -- i don't mean to sound east coast snobby about it. it looks like it could have been in greenwich or new cannan or something. >> it's definitely that vintage. it has a beautiful european flare. the most beautiful thing about this house to me is the feeling
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you get because of they kept that old architectural integrity which has a french normandy kind of a feeling. the yard has such a good feeling and every property has a feeling, this property especially to me has a very very light feeling to it. it's a beautiful property. >> jaisa, thank you very much. >> you're welcome. >> if i'm ever doing business in l.a. i'll look you up. >> thank you. >> every house has a feeling. you walk in and you have that feeling. she says of grace and light. well you think $18 million is a lot for a house? today's celebrity powerhouse julia roberts has listed her beach front home in hawaii for $30 million. it sits on two acres of property with 200 feet of beaches and has seven bedrooms and four bathrooms. and it looks absolutely beautiful. okay guys you all know about this. the biggest boxing match in history and it's taking place this weekend. at least in terms of money. how much will it bring in?
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we'll talk to manny pacquiao's promoter. that's all coming up on "power." thank you for being a sailor, and my daddy. thank you mom, for protecting my future. thank you for being my hero and my dad. military families are thankful for many things. the legacy of usaa auto insurance could be one of them. our world-class service earned usaa the top spot in a study of the most recommended large companies in america. if you're current or former military or their family, see if you're eligible to get an auto insurance quote.
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number one, marriott's ceo coming on live as the company beating the street by three cents a share but revenue was down a bit and the guidance was cautious. the stock down today. exxon continues to beat the street as cost cutting pays off. and if oracle takes over salesforce it could be a $64 billion deal but regulatory scrutiny would likely be an issue. if you missed any of the big stories visit our site. borrowers and lenders getting creative with mortgages again. will it end badly this time? plus a little crime and punishment. andrea day is on the case. >> a new york times best-selling author swindled out of millions. now the con woman behind it all has finally learned her fate. that's coming up right here on "power lunch."
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visit legalzoom today for the legal help you need to start and run your business. legalzoom. legal help is here. here's what's ahead. could an apple tax issue be a big wild card for the stock? it's good that few are talking about. plus a group of stocks that could be as safe as bonds, but with better returns. and a rare and exclusive
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interview with casino billionaire steve wynn. clearly a big hour you can bet on that. back to you. >> all right, brian, thank you very much. it was a $25 million scam with a network of so-called fortune tellers all over the country. and now the mastermind has finally learned her fate. andrea day is here with crime and punishment, an update. >> they preyed on innocent victims, even luring in a "new york times" best-selling author who lost millions. take a look. >> they were a family of psychics obsessed with living large. lavish parties, waterfront homes and all the fancy toys money could buy. a fortune teller family with a fortune that was mostly illegal. >> the bottom line is a fraud is a fraud. >> charlie stack, the lead detective in the case that led to the ultimate takedown of this woman, rose marks. >> she had no no remorse for taking and what she did to these
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victims. >> victims like "new york times" best-selling author jude devearu. with the matriarch in the end unable at the end unable to predict her own fate. a judge has just slapped marks with ten years in federal lockup. back to you. >> andrea day. nontraditional mortgages are making a comeback. what does that mean for the housing market? diana joins us now. >> consumers are finding it slightly easier to get a mortgage these days with lenders having clearer guidelines from federal regulators regarding which loans could be subject to buyback if they go back so they're opening up the credit box and that's giving way to new loan products and new ways to use existing loan products. for example, wells fargo, the nation's largest lender is offering jumbo loan borrowers a way to lower their monthly payments. usually when you pay into a mortgage it just shortens the term. now those who pay$50,000 in
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they are ream tiesing the loan. some loans are more commonly used for home remodels or college but they are not only buying the home but having additional cash to pull out when you need it no more second loans. equity key in california is offering a way for homeowners to sell the future appreciation of their homes, kind of like a mortgage without the debt. they will pay homeowners cash now for a future share in the increase of the home's value. so we're not exactly back to the heady days of subprime but the credit door opening just a crack. more online realtycheck.cnbc.com. >> creative mortgages. sometimes they work sometimes not so much. >> history repeats itself. >> interesting day to wrap up the month, the markets on the plus side but not today as they're red numbers against the dow, the nasdaq and the s&p. that, folks, does it for the first hour. >> indeed it does. brian sullivan back in the
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house. over to you, sir. >> all right, thank you both very much. it is nearly 2:00 on wall street lunchtime in vegas. the dow down nearly 100 points but it is still up under 1% for a gain. about 0.9 of a percent. the dow has not had a down april since 2005. oil higher on the session, near $59.50 a barrel. melissa at the nasdaq where apple, melissa, is becoming a big mover and maybe a big story as well. >> it is a huge weight here on the nasdaq. we are just about a point away from session lows right now. apple, as you can see there, down by 2.3% on reports the new apple watch could have a major flaw. "the wall street journal" citing sources say apple found a defect with the watch's taptic engine. that's a component that gives notifications in a less bothersome way than say, buzzing or ringing. the journal says apple scrapped certain watches because of the defect.
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cnbc reached out to apple. the company had no comment. ivan, good to see you. >> good to see you. >> should we be concerned? according to various reports, they had to switch very dramatically and quickly all of their sourcing from one supplier in china to another one in japan. could this add up to more costs for the production of this watch? >> i don't think it's going to be a big deal. they usually have these problems in the beginning. apple has been very good at working through this. a lot of issues can be fixed by firmware updates and software updates. sometimes you've got to change suppliers. apple has always produced a phenomenal product. they are driven to produce a high quality product so i think they will iron out all these issues and bring a quality product to market. >> from an investor relations standpoint, though is it troubling at all that tim cook just recently -- the conference call was on monday and there was no mention whatsoever of a potential problem with these
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taptic engines and here we are a couple days later with this problem where they actually have to switch suppliers. are you sort of saying what went on? how come you didn't say anything on that conference call? >> as an investor i'm not really concerned. they may not have known. it may have come out after the conference call so i don't think it's a big deal. apple is very customer friendly so i don't think it will be a big issue. >> ivan it's brian sullivan. we talked about a potential apple tax issue. it's come out that apple mayo the country of ireland ten years worth of backs taxes. to you would that be material to the company and or the stock? >> well there's an issue when you have a global company like this that does business in different countries with different tax rates. but ireland does not have a corporate income tax, they have a vat tax so it may be products or cash was either transferred or transmitted into the country or out of the country. but the other point, if they actually had to pay additional tax in ireland, they could offset that by a reduction in their tax liability in the u.s.
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so there would be some cushion to it. and they have plenty of cash to pay almost any type of tax or penalty. >> ivan, apple has had a tremendous year to date up more than 13%. but for the week that they reported really strong earnings and hit a new record high on the week it is down by 3.5% underperforming the nasdaq. should we be concerned we're in a lull period for apple and are coming up against tougher comps on the back half of the year on the iphone 6? >> yes. however, apple usually has sold off after earnings. while they increased their return of cash to shareholders up to $200 billion, they have the opportunity to keep increasing that. and i think that if the stock were to pull back even more you could see a possible increase in that. >> all right, ivan good to speak with you. >> thank you. tesla shares also lower right now. it's all ahead of a big battery announcement expected later on this evening. phil lebeau is live in
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california with more. >> brian, this announcement will be made by elon musk. we do know that it involves a new stationary storage battery unit that he will unveil for reporters. at that time it will be interesting to see if we see just one unit or two units. there have been some reports that we'll see both a home battery storage unit as well as a business or small business battery storage unit. the whole idea here is that with these units, you'll be able to store power or in some cases, if you have let's say solar panels on your roof you can return electricity to the grid depending on how it's set up. all of this has to play into the giga factory which tesla is building scheduled opening in 2017. the capacity eventually will be a half million lithium ion batteries annually. many will go into battery packs for tesla and other manufacturers but also for stationary storage units. as you look at shares of tesla, keep in mind this is typically a
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stock that before a product announcement it tends to move it quite a bit. then after the announcement there's a bit of a sell-off. people say how soon will be see some revenue. the key thing to watch here what is the price point on these stationary storage units and is there a leasing component. because if there is a leasing component, many believe that will make it much easier to roll out to the general public if you say to them all right, $30 a month, $3,000 over the course of ten years, something like that much more likely somebody will say, okay i want one of these for my house. guys, back to you. >> not yet. not so fast my friend. while we've got you out in california, ford also expanding its presence near where you are. not in detroit in, silicon valley. what is ford doing in silicon valley valley? >> right. well, they have opened up what they call a silicon valley tech and research lab. we had a chance to look around the lab today, talk with ceo mark fields about what ford is doing. this is all about expanding its presence in the silicon valley
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and as part of expanding that presence, using the latest technology. some of that technology includes things like virtual reality screens and centers so that they can look at the development of vehicles and cars as well as work in the latest apps that are out there. we took a look at the new ford app for the apple watch. all again -- guys this is all about what we're seeing not only with ford but the auto industry. it's all coming out here to the silicon valley. not all of it but a lot of it in terms of developing that latest technology. >> and it's amazing because i heard your interview this morning, phil mark fields talked about mobility and talking about technologyiestechnologies. i thought mobility isn't that supposed to be about cars? i'm going home and i'm going mobile. >> it is about cars, but a whole lot more. >> all right phil thank you very much. melissa, what's going on? >> tesla and apple really pressuring the nasdaq. the nasdaq sitting at session lows. another big force downward is a move in the biotech sector. take a look at the ibb because this is the second day at least of a pretty major pullback here. so we are seeing the nasdaq right now down by 64 points
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down by 1.3%. bri. >> we'll stay on that as well. meantime shares of salesforce.com are cooling off a bit, this after they jumped as much as 17% yesterday on a report that the company may be fielding offers for a potential takeover. if that report turns out to be true, the 50 or so billion dollar question is who may be the buyer? let's bring in jason maynard. jason, everybody seems to be focused on two potential buyers oracle or s.a.p. however, could google actually be a potential buyer as well? >> you know it's a really good question. i would say this. oracle and s.a.p. i don't think were the two buyers. we wrote about potentially microsoft, maybe google maybe even an outside dark horse chance at an ibm or amazon. i think those names fit a little bit better in the mosaic than perhaps like an s.a.p. >> how so? if you don't use salesforce.com
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or chatter, why would an amazon be a good potential buyer for salesforce? how would they connect? >> look so what's going on in the software industry right now is you're seeing nontraditional consumer internet players like google and amazon leverage their core infrastructure into the platform and infrastructure as a service business. applications like salesforce sit on top of those platforms and it represents, if you will that frontier that touches the business user. so it's the apps that the business users use. it would be a very asymmetric threat to the traditional software industry. i would say this. where there's some smoke, there probably is a little bit of fire here, because these vendsorsors are making big moves into the enterprise. if you discount google and amazon i think you do so at a grave mistake if you're competing with them. >> let's say that your predictions of a dark horse coming in, jason, are true and that it's a google or an amazon. what does that do to s.a.p.s and
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oracle's competitive position against a crm/amazon or crm/google. >> just to be clear we have no idea if google or amazon are interested. i still think microsoft would be the most logical candidate. i think google and amazon are definite competitors in the next five years. the company that is at most risk is s.a.p. they have not done a product rewrite like oracle has. their products lag. they're still stuck, if you will in last generation's software architecture. so i think it's all bad. >> what do you mean by all bad, jason? >> all bad meaning you don't have the products that fit in with the modern mobile cloud era. you didn't to the rewrite of the applications that people need to use that run on your smartphone that run, if you will on any device, that were built and architected to handle the scaleability of consumer scale demand. you need every 20 years in the software industry to actually rewrite your products.
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you can't just sort of leap from mainframe to client server to modern cloud with the same old technology. and so folks like salesforce they're the new -- they're the new wave. >> and you're waking -- we've got to go but you're making an excellent point. oracle has been behind the curve once before. they missed the boat so came after peoplesoft very hard and hostile. larry ellison has been very aggressive in the past. jason maynard, thank you. here's what's coming up. a group of stocks that may be as safe as bonds and better returns. plus the highest-paid whistleblower in american history is speaking out for the first time since getting out of jail and he spoke exclusively with us. and the countdown to fight night is heading up. the drama between mayweather and pacquiao. the promoter joining us live. boys?
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plus, get free delivery, and sleep train's 100-day low price guarantee. but hurry! sleep train's interest free for 3 event ends sunday. ...guaranteed! ♪ sleep train ♪ ♪ your ticket to a better night's sleep ♪ we're watching the nasdaq very closely. just about eight points off of session lows today. the worst performers on the nasdaq 100 right now, baidu after disappointing earnings a real weight here on the nasdaq. for the week the ibb is down almost 8%. today alone it's down by 2.7%. >> thank you very much. also noting the russell 2000 down about 1.4%. keep this in mind on the dow. the dow jones industrial average is down about 100 points about half of 1%.
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however, the dow is still up been 0.9 of a percent in april. the only reason i mention that is because if we don't fall another 0.9, if we finish the april up it will be the tenth straight april where the dow has finished positively. again, the last time we fell in april on the dow was back in 2004. all right, now to oil earnings. exxonmobil beating estimates. shares, though flat right now. chevron on deck to report. let's bring in jason. thank you very much for joining us. i teased this as a bond disguised as a stock because of the safety. this came up out in california a couple of days ago. i know you like chevron. how safe is owning one of these names right now? >> well i think when it comes to comparing it to a bond it's the safety of the dividends that's the most important. i believe that these dividends are very safe indeed. as a matter of fact, we saw exxon raise the dividend by 6%
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this quarter. 33rd straight year in a row they made that raise. obviously when it comes to the underlying equity we'll have a lot of volatility related to the oil price but i don't think we're looking at particularly heroic valuations here. >> you have a buy on chevron, a hold on exxon. a lot of investors may say they're kind of the same company. how are they different from an investment perspective? >> i think from an investment perspective we look at chevron has having a much better growth profile on a move forward basis. we think shef ron can grow their production by 5% per year through the end of the decade whereas exxonmobil will be more or less flat. the other two things to consider, exxon trades at about a 30% premium to chevron. even though exxon raised the dividend this quarter, shef ron has a superior yield so that's where we'd rather put our money. this morning the refining business was extremely strong and we've seen that with the other big integrated oils as well. at this point why not just own
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the refiners over an integrated? >> if we look at the underlying earnings, a lot of what happens happening is that there was a lot of trading profitability. that happens with the integrated companies when the oil price volatility is very high. one thing we caution, though is that the refining margin has started to roll over a little bit. even though the 1q benefited, it may not be as strong as 2 and 3qs. >> jason, leaving it there. thank you so much. some encouraging news on the economic front today. the number of people filing for first-time unemployment benefits fell last week to the lowest level in 15 years. and with first quarter weakness largely being blamed on the weather, could we be in for a big second quarter snapback. this was also one of the big themes out of the conference earlier this week which is first quarter stunk, we know that. could we get a big bounceback in the second quarter? your thoughts? >> listen we've seen this movie play out before. it was exactly a year ago we
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were having this came conversation where the first quarter was kind of a lousy quarter and the speculation about what was going to happen. in fact i think we'll get the same reaction this year. i think we'll get the markets and the economy to turn around. i think the market is going to do 8% to 10%, just like it did last year which is right back to average, normal right, which is what it should be. >> you know what would that mean for the equity markets, then? 2%, 2.5% kind of average, kind of blah. you're not wowing anybody. does that mean stocks will also be kind of blah? >> no. i think broadly the overall market will be in the 8% to 10% range. we had the same growth last year. that's what i think it will do this year. i don't think you're going to have one of these markets where we're going to see up 20% or 30%. the economy is absolutely not there yet. so i think it's got to have time for the market -- for the economy to catch up where the market is. all that being said and done the fed central bank is what's going to continue to propel the
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market with the economy still being as weak as it is. >> what is going propel stocks going forward? already this year we've had a year's worth of news, kenny. we've had greece oil, currencies. the dollar is back weakened again. oil is back up greece may be solved. what will propel us from here on out? >> it's going to continue to be the central bank story. rates aren't going anywhere in june, or september. you'll be lucky if they go in december so therefore it takes us right to the end of the year. then you've got the stimulus from every central bank around the world and so therefore that will continue to support not only global markets but the fed will continue to support our market. >> all right kenny, great stuff as always. we'll see you soon. take care. >> thanks. let's get to dom chu. >> we're watching shares of omni care up a percent and a half. they did go as high as 4% on a bloomberg report that omnicare may be drawing some potential interest from bidders, including cvs, also express scripts. that's according to a report
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from bloomberg. what they do is provide pharmaceutical or drug services basically, to long-term care facilities, hospitals, nursing homes, that kind of thing. they are talking about possibly a deal for this company. the story goes on to say that there are at least bids or interest bids initial bids due for this company sometime in may. that according to people familiar. so omnicare shares will be a focus on some potential takeover chatter, this at least according to a report from bloomberg. back to you guys. >> it's a big company, about an $8 billion market cap. you've got to keep an eye on pbms also. those are kind of similar spaced companies to an omnicare. watch those names. much more ahead, including five big analyst calls you need to know about. it is called "street talk." it is coming up next. stick with us. the dow down 104.
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all right. the disaster du jour has got to be yelp. shares are falling, disappointing results. second quarter guidance was weak. the company reporting an unexpected loss of two pennies per share. revenues were slightly below expectations. on a more bullish note credit
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suisse saying this is self-inflicted and the analyst thinks that's starting to go through. time for "street talk." five stock calls. our first stock yum brands. boosting its target. they did a survey and showed kfc is still a good brand in china and stock has already been hot, up 18% to date. >> in china they had supplier issues but kfc is a strong brand for yum in the united states. in the latest quarter they posted 7% same-store sales gross in the u.s. and that is a decade high. amazing growth there. next up jetblue. we saw it pop to a multi-year high on earnings and credit suisse is upgrading from outperform to neutral. they acknowledge it made them reluctant to take the upgrade but he thinks the story has
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legs. there was a farin croce ine in kroescrease in march. pricing should continue to rise. >> the company should change its name to jetgreen. it's up 160% in the past year and it has doubled the next best performer, which is southwest. it's done great. jetblue has done twice as good as the next guy. stock three, buffalo wild wings. stock is down 11% this month. the markets did not like recent earnings. so they are upping it to an outperform. >> on the back of these earnings, there are a lot of concerns going into the second half of the year. rising wing costs is a major input for buffalo wild wings and also coming up against tougher comparisons. last summer had the world cup so we'll see how it does this summer. garmin just posted disappointing results but raymond james has come in within an upgrade.
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the quarter showed competitive headwinds but the analyst thinks that's all priced in and seize garmin as reasonably flattish his words, high margin, high dividend business. that dividend yield is 4.2%. >> well the market still not mostly convinced. the average rating on gaurmin still remains a hold. our last stock, acadia health care. it's a owner of hospitals and substance abuse clinics. wells fargo their valuation range was boosted from 77 to 87. the stock has done great, it's up 60% over the past year. down a bit, though recently. >> they had a number of acquisitions that have helped earnings released just a couple of days ago. those drove things like same facility revenues. never heard of that until today, but there you are. >> it's like their comps. all right, melissa, thank you very much. that's "street talk" and that's it. we are creeping back toward the lows of the day for the stock
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market. the dow jones industrial average is down about 100 points. coming up, the final trades for oil. we'll take you live to the nimex. let's put the dow jones industrial average back up. we're down 145 points. we've got oil, mayweather/pacquiao, the derby. a lot more. stick around.
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hello, everyone. i'm sue herera and here is your cnbc news update at this hour.
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president obama announcing new library initiatives, so all students will have access to reading through ebooks. he traveled to an costia library in washington to make his announcement and participate in a virtual town hall meeting with students. the calbuco volcano continues to spew ash and gas into the spy.ky. it erupted again yesterday leading to more evacuations. tourists are becoming big spenders in japan, especially those from a. tourist spending skyrocketed to a record high of nearly $6 billion. of 4 million people who visited japan, 43% were from china. the baltimore ravens are doing their part to lift up their city. the team led by coach john harbaugh, quarterback joe flacco and former player ray lewis visiting an elementary and high school in the city. lewis told the high schoolers that they have a chance to
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change the city for the better and not to let this moment slip through their fingers. and that is your cnbc news update. back to you, brian. >> all right, sue, thank you very much. this reminder stocks at session lows. the dow down about 140 points right now. inside of the dow, the three worst performers are ibm, visa and apple. apple actually the worst performer on the dow, down 2.6%. it's been a huge month for crude oil, up 25% in april. let's go to jackie deangeles at the nimex. >> we did close here under $60 a barrel but it looked like gruz was trying to make a run for it in the final two minutes, last day of the month. traders say that's typical action to see. still up about a dollar on the day. a monster month, up over 20%. a lot of traders think this is finally it we're going to stabilize once we break through 60, it's going to be a slow and steady grind higher to 70 or 75 by the end of the year. back to you.
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>> thank you very much. meantime after years of talk and posturing, we are finally going to get to see manny pacquiao fight floyd mayweather. jane wells live in las vegas with one of the men who helped make it happen. >> they're talking revenues could touch potentially a half a billion dollars. bob has seen it all but maybe he hasn't seen this. bob joins us now. certainly we've never seen money like this but have you ever seen this much weirdness? there's reports now that the mayweather camp insisted that pacquiao's cup be examined forgive the pun. that's a little below the belt. what's the deal with that? >> you know whenever there's a big, big fight, each camp tries to get a psychological advantage over the other camp. so the mayweather camp said that manny's cup was for some reason
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not appropriate. so obviously we had the executive director of the nevada commission examine the cup, examine the cup that both fighters are going to use, and of course both cups were perfectly fine, as one would expect. but this is the type of psychological psychological jockeying that goes on before a very big fight and this is a tremendous fight. >> you are not the lead promoter on this though you have more experience. you have said that it is your worst experience ever in the way the mayweather camp has promoted this fight. why is that? >> well not really the way they promoted the fight, but the way they manipulated the tickets. the fact on sale until the end of last week. that was a disservice to the fans. people had to make airline
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reservations, hotel reservations. they didn't do it because they didn't know if they had tickets or not. all the other hotels in town were complaining. it was something that shouldn't have happened. but because of one person who was calling the shots for mayweather promotions, he tried to manipulate the release of tickets so that he could make a cleanup on the secondary market. >> who? >> and that's what caused -- al hayman. and that's what caused all of the problems. i mean when -- i remember as a kid a song that i was taught once there was a wicked, wicked man and hayman was his name sir. that applies to al hayman. >> perhaps pacquiao is queen
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esther. bob, let me ask you, you guys have brought in the lion's share of sponsorships $13 million total but you brought in the lion's share. am i accurate is samsung now joining the sponsorship list? and what role will they play? >> you know jane i wish i could tell you but i've been sworn to secrecy. what samsung is going to do will come as a major, major surprise. and i'm not allowed to reveal it. i'm sorry, but if i went back to the office they would kill me if i talked about it. >> last question. i know you're having to pay for your tickets. with so much money in this fight, how much pressure is it on your fighter, even if he had a shot in the first round, to make this fight last more than three minutes? >> let me tell you something. if my guy, manny pacquiao can knock floyd mayweather out in the first 30 seconds, he's going
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to do it. i mean you know that's the nature of the sport. the fight can go the full 12 rounds or it can end early in the first round. and if my guy gets mayweather in a position in the first round where he can knock h going to do that. and floyd would do the same as far as manny is concerned. they're not going to play around to give the audience a longer show. >> bob arum thank you so much. >> jane a pleasure. >> if he knocks him out in the first round, a lot of people will make a lot of money, melissa, back to you. coming up on closing bell manny pacquiao two days before the biggest fight of his life. he'll be on cnbc live at 4:50 p.m. eastern. then on "fast money" tonight i'll speak with mayweather's manager. you can catch that interview at 5:00. brian. >> all right melissa. just a note i talked to somebody out in california who
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said on good word they had three people who paid $125,000 each for a ticket. it is time for our new segment trading nation because traders do trade better together. let's look at the big bounce that we have seen in the euro. yeah, the euro. rich ross technical analyst with ever corporation isi. andrew, everybody and their mother and their mother's mother thought the euro was going down. when everybody is on one side of the trade, this is what we find out happens. do you think the euro will continue to rise against the dollar? >> yeah i think near term, q2 i think the euro probably has a little bit more strength in it. as you said it became a very crowded trade about a month ago. not only in terms of that dollar/euro relationship but also sector and industry performance within the markets. so that kind of consumer domestic basket that does really well. in a weaker euro stronger dollar environment that would become very crowded too. so the two investment takeaways
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i think are you're going to continue to see a countertrend weakness in that domestic revenue basket in the u.s. but more importantly we've seen a lot of flows going to foreign markets but on a hedged basis. while that worked in q1 i don't think that's going to work in q2 and that's going to leave people a little bit less impressed than they saw in the first quarter. >> all right rich ross particular kael will be see the euro continue to gain or will it be a short-term rally and will the dollar go higher very soon? >> what we see is the eurozone is healing, the euro is healing. i'm a buyer of both. when you bring up the charts i'll bring you a bullish blueprint for a bounce. first we look at that short-term chart. the double bottom has unfolded with that higher low that gives you a sense that the trend is turning. we get that decisive base breakout above 1.10. that projects measured upside to
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1.13. we need to get to that overhead resistance but ultimately i think we test that around the 1.17 level. we look at that longer term monthly chart and this is the real beauty here. you can see that neckline there, a clear structural breakdown but within the context of that structural downtrend, there's room for a bounce into 1.20 1.22. you want to be a buyer of the euro here in anticipation of that bounce and all that comes along with it which includes higher crude, higher emerging markets and higher u.s. equities. >> buyer of the year. everybody has been on one side and it hasn't been that side. rich ross thank you very much. andrew burkly as well. for more trading nation head to tradingnation.cnbc tradingnation.cnbc.com. coming up, two big interviews only on cnbc. first up a man who blew the whistle on illegal swiss bank accounts and got paid $104 million by the government. plus steve wynn talking money, marriage and macau
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exclusively to cnbc. that interview is straight ahead. of course you're keeping an eye on the market. the nasdaq is feeling the most pain, down by almost 1.5%. and now the latest from tradingnation.cnbc.com and a word from our sponsor. tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops tdd# 1-800-345-2550 even on the go. tdd# 1-800-345-2550 open a schwab account and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 so when a market move affects one of your positions, tdd# 1-800-345-2550 schwab can help you decide what to do. tdd# 1-800-345-2550 with tools like free live-streaming cnbc tv tdd# 1-800-345-2550 that give you the latest financial news and trends. tdd# 1-800-345-2550 and bubble charts and price charts that let you see exactly tdd# 1-800-345-2550 how market activity is affecting your positions. tdd# 1-800-345-2550 so when the time comes to decide whether to scale in tdd# 1-800-345-2550
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the dow is down about 140 points and the worst performing sector inside the stock market is health care by far. energy, the oil names, the only sector that's up right now. but inside of health care that's a big word melissa, you've talked about it biotech. that is the worst one. in fact ibb is the worst performing sector. utilities now apparently have gone on to be the worst. i just said health care and two seconds it changed. it's live tell vigtsevisiontelevision, i stand corrected. it's the third worst, so i was close. >> yeah, no cigar, though. the u.s. government paid a man $104 million for blowing the whistle on illegal swiss bank
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accounts. eamon got an exclusive interview with him and he's here. >> hi melissa. brad burkenfeld is breaking his silence about what it was like to go to federal prison and receive a payout from the u.s. government of $104 million. in our interview, he told me about the moment he first decided to become a whistleblower. take a listen. >> these are the documents that you took out of the bank and hid so you'd have evidence of what was going on? >> that's correct. this one in particular gives you scenarios, what you should do in case you're stopped by customs. >> it says you're intercepted by the authorities. by checking your palm device they find all your client meetings. but fortunately you stored only very short remarks of the different meetings and no names. did they tell you not to write down the names of who you were meeting with?
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>> they gave you all these tips and tricks of how to get around it and this is exactly it. it got to the point where they were really promoting this whole concept of keep it secret and keep it disclosed from the authorities. >> so are you a banker or are you a spy? >> well this is it. are you doing this because the bank wants you to or because maybe this is unethical and illegal. >> what else have we got here? >> this is the actual three-page document that caused me to come forward and whistleblow. it delineates many details with respect to what we were told not to do in the u.s. this was something that we were not trained on. this is something that we were not told about. it was written and put on our intra net. >> and you were doing all the stuff that this document tells you you can't do. >> they were promoting it. >> they told you to do it? >> and they were paying for it. >> and then they put out a document saying don't do it. >> yeah to the reverse. >> why? >> to cover themselves. that's exactly what this document is. it was there to cover them in case someone got caught they can say you didn't read this
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document so you're in violation and you're rogue. >> so the stuff about how to break the law they're training you on and the memo about how to follow the law is buried on the internet and no one trains you on it. >> no. >> and this is what made you decide to become a whistleblower. >> that is correct. >> because they thought you were going to throw you under the bus. >> myself, my colleagues, the clients and the shareholders. >> so you threw them under the bus? >> that is correct. >> guys, a couple of statements here from the people involved that i want to read from you. ubs says this concerns a legacy issue for ubs that has well documented and is many years behind the firm. ubs today is a different firm with a different strategic focus and senior management. also from the department of justice where i'm standing right now, justice saying bradley birkenfeld was afforded due process of law and sentenced boy a federal district court after full consideration of all relevant facts and circumstances. guys, back to you. >> pretty remarkable stuff. great reporting as always buddy. thank you very much. well, it has been a rough year so far for wynn resorts. the stock and its founder.
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find out what steve wynn has to say about that in a rare and exclusive interview straight ahead. an all new season of "the prophet profit" returns to cnbc and this gives you the chance to makt american dream come true. on twitter it's #sharetheprofit. for every retweet it will donate $1 to help grow small business across america. show your support and share the profit. we'll be right back. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement.
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once again, i've been foiled by just a few seconds. i was prepared to come on this fine network and say that energy was the best performing sector in today's sell-off but it was the only sector that was higher. in the past two seconds, energy turned negative so now every sector of the stock market is down. a number of the big energy names, though in that index, by the way, and in that sector some of the names like transocean, noble, they are doing well and have come back big-time in april. once again foiled boy just a few seconds. i was so close. shares of wynn resorts down 25% so resorts down 20% prp the company struggled especially in macao.
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our eunice uhn got an interview. >> the dow's slump has been a major slump for casino players who have invested heavily in the chinese territory. macao is the only place in china where gambling is legal. but the government has put in place an anticorruption and austerity drive which has affected the businesses there. in addition to the problems that steve wynn sees in macao, he also sees weakness in vegas heading into an election year. >> i don't look for healthy growth in '15 in las vegas. perhaps in '16. maybe when we have a change in administration. if we do get one. we'll get a more business-friendly, job-friendly government in washington that will allow us to have a more robust recovery. >> he also addressed to me the
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very public dispute between his company's borpd and his ex-wife. his ex-wife has been critical of the board for what she believes is a lack of diversity. he said that that notion is preposterous and said that now that she's out he believes that the company is going to go forward without the drama. >> i don't remember what her criticisms were but most of them were sort of self-serving and weren't very accurate as i recall. but i kept my peace during that process because i found myself on the other side. but that doesn't mean i agree with what mrs. -- what elaine wynn had to say because i certainly don't. >> wynn said that the tough business environment is forcing him to make hard choices like cutting the dividend from $1.50 a share to 50 cents a share. he said he had to do that because the company needed its financial flexibility. melissa, it is a move that for
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the long term might be a good one but short term it clobbered the stock. but yesterday it's clawed its way 2%. >> i'm curious in terms of macao since wynn's revenue, 70% or so come from macao, does he think that the best days in macao are behind him? >> no he didn't say that. he said that he was optimistic for the long term but that he did believe that we were going to see some didn'tuncertainty in the short term. he also said his second property there was going to go ahead as planned. he didn't plan to postpone it but he had a bit of a warning for the chinese government saying that the government needed to work hand in hand with private business since the government and the entire territory of macao has benefited so much from their investment. >> eunice thanks for that
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interview from los angeles. pie biotech is booming around boston. there is a big way for you to get in. but don't think lab. think land. financial noise financial noise financial noise your mom's got your back. your friends have your back. your dog's definitely got your back. but who's got your back when you need legal help? we do. we're legalzoom, and over the last 10 years, we've helped millions of people protect their families and run their businesses. we have the right people on-hand to answer your questions backed by a trusted network of attorneys.
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biotech is booming in and around boston. there is a way to play it but i don't want you to think labs. think land. >> reporter: with 130 life sciences companies within 2.5
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square miles, cambridge, massachusetts's kendall square holds the densest concentration of biotechs on the planet and real estate here is exploding. companies from giants boygyn to ironwood, to start-ups just months old call kendall square home with the boom in biotech driving valuations up three-fold in three years and pie poeipos to an all-time high. space is at a premium. from pfizer to novartis, all looking to grow at this key address. lab space has doubled in asking price over the last ten years to more than $71 per square foot in the first quarter according to a real estate firm transwestern. vacancy rates down to a staggering 3%. >> reporter: joining us now here in kendall square the ceo of alexandria real estate equities
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joel marcus. thank you so much for joining us. >> it is a pleasure to be here in this white-hot market as you know. >> you are the biggest landlord here in this market. you told me this construction site behind us a week ago you couldn't even see this structure. tell me what's driving this dynamic? >> it's amazing. big biotech has grown up in the last few years now into really big companies. pharma coming into this market for the urbanization and densification. venture capital at an all-time high in a sense. a lot of different players looking in the same market all about recruitment. then tech coming in here wanting to recruit as well so they're fighting for the same urban campuses. >> how much are you guys tied to the biotech market in general? >> luckily when we have long term leases that have good duration we have constant and solid cash flow but we're diversified. we have pharma biotech, and we
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have a lot of companies actually looking at the same land for future buildings. >> you guys are known as a life sciences company, but you're also really getting big in tech. tell us about how big. >> we think if we're in the best innovation markets all about recruitment, 24/7 lifestyle, you're going to see housing, education and work kind of melding together with play. you have technology firms that want to be there and you have life science firms so now they're kind of competing against each other and it is a great benefit to landlords. we have pricing power which any landlord would say would be the best of all markets. >> absolutely. especially here. joel marcus, thank you so much for joining us. back to you guys. one of the few sectors higher today, construction materials. martin marietta vulcan
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materials. overall stocks accelerating. the dow is down about 200 points but the magic number for your dow is for a drop of 259.41. call that 260. why is that a magic number? well it's not magic. maybe the opposite. because if we fall below that number today, we will have dropped for the month of april. and if we fall for the month of april, that will be the first time that the dow has fallen in the month of april since all the way back in 2005. that was 20 pounds ago for me by the way. so down 260 is whatever the opposite of magic is. >> we should note we are just off session lows on the nasdaq. take a look at russell 2000 small caps. intraday. that's where the pain is in this market. brian, i'll see you tonight on "fast." track being the selling the sell-off. >> as will "closing bell" which begins right now.
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welcome to the "closing bell," everybody. i'm kelly evans down here where we are witnessing a sell-off at the new york stock exchange. >> i'm bill griffeth. the adage is that they say in may, then go away but they're not waiting for the first day of may tomorrow. they're getting out on this last trading day of april. the industrial average to the low of the session, down 215 points. look at the nasdaq -- >> down 1.7%. it is giving up 85 points on the session. back below 5,000. 4,937 is the level there. a lot of those biotech names again under pressure on the

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