tv Power Lunch CNBC September 22, 2017 1:00pm-3:00pm EDT
l>>et me guess, it's fantastic? >> "just had the queso, it is great, really. so, anyway, we can put that question to rest billing a m ing ackman had thee. he's a big believer in the cheese right he is the stock see you on monday. have a good weekend. "power lunch" starts right now. i'm brian sullivan, here's what's on your power friday menu iphone 8 hitting the stores today. why are apple shares the worst performers this month by far in the dow? shock in london as uber is stripped of its license to operation amid allegations ranging from sexism all the way to bullying. uber accused of being irresponsible and infit to do business what dismeans for uber and other big startups ahead. the retirement crisis that few others are talking about believe me, it will have an impact on you and your money "power lunch" begins on a friday right now.
♪ >> and happy friday, welcome to "power lunch." aisle melissa three, three major averages all lower this hour the dow is on track for its second straight weekly gain. investors, again, somehow shrugging off fears about north korea. check out the movers we're watching for you, first solar soaring hitting 52-week highs. reports the u.s. trade commission is considering slapping tariffs on foreign imports of solar product the crazy moves on finish line retailer was down 11% earlier on its profit miss. now up 9%, the big move looking more like a short squeeze. the stock has a 29% short interest phillips 66 partners rallying the company, buying pipeline, other asset from its parent company for $2.5 billion carmax is surging on its earnings beat. we begin in the nation's capital, wilbur ross this morning on "squawk box" dealing down on the needed changes to na nafta and all-out push to get
tax reform done. kayla tausche joins us from washington. >> reporter: the white house doing full-court press, trade teams head to canada for a third round of nafta an op-ped by wilbur ross hit the "washington post" then a study showing the amount of american-made parts, imported from mexico and canada is, quote, eroding especially in cars shipped to the u.s. the u.s. could make some contentious proposals say aides briefed on the matter, stricter rules on content requirements in manufactured products for one, and a clause that makes the deal expire if countries don't renew it nontraditional ways to dispute resolutions. senior administration officials tell me despite all the suggestions the white house plans to tamp down on hawkishish trade talk for now to keep votes on tax reform intact secretary ross acknowledged as much today >> what we don't want to do is things that will unnecessarily irritate the senate because we
need the votes there and as was proven with health care, it's a very fragile margin. so it's a question of timing more than it is direction. >> reporter: in this time, the white house has stopped suggesting to ditch trade deals, marginalized trade hawk peter navarro. it's not dropping them all together sources say an announcement will still come before the president's china trip in november outside advisers note this is temporary, the shift is not going to be permanent. trump will have to get tough on trade when he eventually makes the deal on immigration reform in a few months. so that he can say that he's given his base something that it voted for. michelle >> all right, got it, thank you so much, kayla breaking news on the health care bill, eamon javers has the details on that. >> reporter: new word from the senate side right now little bit more difficulty for the president's obamacare repeal and replace effort which is moving ahead we expect next week. senator susan collins, now,
republican of maine, is leaning against voting for the republican bill, citing here major concerns on that bill. that makes it a little bit more of an uphill slog for lindsey graham pushing this proposal to in effect push block grants out to the states and repeal and replace obamacare in a way they haven't envisioned before. that makes it difficult for lindsey graham he's not out of the woods in terms of getting the votes we'll wait and see whether the vote counting effort comes to fruition next week meanwhile, the war of words continues with north korea and the united states, last night we saw this statement from kim jong-un, the north korean leader, blasting president trump in the wake of new american sanctions on north korea and cooperation with the chinese regime kim saying, "trump has rendered the world restless through threats and blackmail against all countries in the world he is unfit to hold the prerogative of supreme command of a country and surely a rogue and a gangster fond of playing with fire, rather than a politician." this morning, on twitter, the president of the united states
firing back saying kim jong-un of north korea who is obviously a madman who doesn't mind starving or killing his people will be tested like never before." so a war of words here, but no actual military action taking place at this time we're waiting to see whether the north koreans might engage in another nuclear test or another missile flyover of japan as they've been doing over the past several months to sort of put an exclamation point on the end of the rhetoric here. so far, no indication of that yet today, michelle. >> no. got it thank you, eamon. >> you bet. all right. september historically is a bad month for stocks you got north korea threatening to drop bombs, and us calling them gangsters britain is arguing over brexit tax reform is seemingly no closer to getting done than it was six months ago yet stocks keep grinding higher it is the conundrum confounding investors everywhere let's try to figure it out samantha, global market strategist with jp morgan funds. kirk, chief investment officer
with wells fargo asset management samantha, how many of your clients call you, e-mail, text, smoke signals, whatever if is, say i don't understand everything that's going on -- i'm sure they're happy it's going up, but are you getting these call of confusion? >> i think clients will find any reason to latch on to to not be invested jitters. could be anything. >> those are pretty good reasons. >> auto loan data, north korea, this, that and the other we always say we have to bring it back to the big picture growth is still supportive the example i like to use, coming into this year, we thought trade was going to harm growth, we thought we were going to get trade embargoes export growth in the u.s. is actually running north of 5% so if you're a multinational, you're exporting, you know, it's way above expectations there are reasons to feel positi positive we kind of try to redirect clients to that, the fundamen l fundamentals. >> earnings not so bad either. >> earnings are great, too even if they're weaker in the second half which is a little bit of a risk because of weak
year over year comps, they're still strong we'd take high single -- >> is this a case where, you know, dare i say the media is highlighting some of the things that are bad and there are bad things, but yet to samantha's point, the guts of it, the economy, everything underneath the hood is good >> hey, the financial markets are the best they've ever been the bond market is terrific, and the dudley, the financial services indices, is at an all-time high. you have to remember we're talking about tax cuts as well so borrowers can get money whenever they want it and extremely accommodative market notwithstanding a fed that may be tightening a little bit. >> that all sounds very happy. are there any risks that worry you, kirk? >> always worry about korea, that's always something you have to pay attention to. i also worry about the dollar. i think multinational companies in the s&p 500 has benefited tremendously from a weaker dollar when you raise interest rates,
you always worry that the dollar could become stronger, which i think would slow things down but the fed has indicated it's going to be very slow and i don't think the dollar is going to move that much. i think, again, to my point, i think the financial conditions continue to be very strong. >> so, therefore, you're not worried about interest rates spiking at all in the notes as i understood it, you're worried more about the bond market instead of the stock market, maybe they should stay clear of pare their exposure to bonds. are interest rates going to -- >> i don't think they're going to go that much higher i do worry about oversupply. there's been a tremendous market you know, the fed is going to be on u unwinding which is going to put some more supply pressures on the market. you have to remember, as well, tax cuts, while down the road may be very good for the economy, in the near term, increase the deficit so you saw the trump administration just strike a deal to raise the debt ceiling, and tax cuts are only going to contribute to more deficits. so i worry about that down the road you saw china's debt was
downgraded while we're nowhere near china, the u.s. has a debt problem. i think that's going to rear its angry head at some point. >> we've had a debt problem for a long time, though. quickly, what's the next biggest thing on your radar, the next biggest thing for our viewers to watch and pay attention to >> it's going to sound boring wut but it's gdp growth. can this expansion really continue are there risks, something out there we're not quite seeing we don't see overheating we think growth continues on and actually picks up in the latter half of the year if growth is churning in the background, markets can grind higher. >> okay. we appreciate it quick check on shares of -- moving the stock, the intraday spike higher, 1.8% we'll continue to watch this as the session progresses. >> this would be nordstrom's move, basically, right >> exactly. from the u.s. markets to the big election this weekend in
germany, when it's over, it's likely that the far right will have seats in the german parliament for the first time since the 1930s and that is because of immigration here are the latest poll numbers. angelina merkel likely to win her fourth term as chancellor of germany, polling in second place, martin sculz's party. most striking, on the right, running in third place now, a alternative for germany headed by alice weidel and alexander g gauland. lately what's helped them is angela merkel's decision in 20125 at the height of the refugee crisis to allow in more than 1 million migrants from countries like syria and iraq. it was orange fally thought the immigrants would help the country's shrinking labor force. the vast majority have turned tout b out to be unskilled and unemp y unemployed likely we maremain unemployed f
years. sharp increase in violent crime. one example, a 48% increase in rapes, large increase in the number of formers accused. the immigration issue has pushed nearly every party further to the right than they have before, in fact, angela merkel's gone back on some positions on immigration which has helped her in the polls >> okay. when do we get results >> sunday night. >> sunday night. going to have an election party? >> no. >> if you did, could i come? >> sure. >> last time i deliver your mail, melissa lee. i delivered her mail from christmas yesterday. it's friday. that means the reit counts are too late jackie deangelis has the numbers. >> reporting that the u.s. took five oil rigs offline in the past week bringing the total down to 744, the number up from
326 a year ago remember, oil prices over 50, the concern now is that shale production will i crease, but this shows that the efforts to rebalance are still a work in progress didn't really move the price trading at 50.40 >> thank you very much, jackie deangelis. apple's latest products hitting stores today we'll have to wait and see if they're flying off the shelves meantime, we'll get a look at the new phone and watch after the break. why investors soured on this stock since the 8 and x were stock since the 8 and x were revealed real estate, infrastructure, and emerging markets. partner with pgim, the global investment management businesses of prudential.
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welcome back to "power lunch. apple's latest products hitting the stores today including iphone 8, 8 plus and new watch josh lipton is live at apple's flagship store in palo alto, where the buzz is, it's just not that buzzsy, is it, josh >> reporter: well, michelle, at least at this store behind me here, on university avenue, i would say it kind of ebbs and flows. we got here around 4:30 a.m. local. there was just one guy in line extremely dedicated apple fan. actually had been camping out here since last night. at 8:00 a.m. local when the store opened, it actually really filled up. woo we'll see how it goes throughout the rest of the day here i had a chance to catch up briefly with apple ceo tim cook in attendance, a tradition out here for cook to show up at this store and welcome customer in. i asked cook about at least the early signs of demand he's seeing for some of those products, 8, 8 plus, that new watch. here's what he had to say. >> i am thrilled here's what we're seeing right now. the watch with lte, we're sold
out in so many places around the world. and we're working really hard to meet demand. we've solds o s ouout of iphone plus in some stores. we got good supply there you can see what's going on here this morning i couldn't be happier. >> reporter: now, i know you guys have been debating the iphone 8 and 8 plus all week we had those reviews hit this week some of them were tough. you know, the "wall street journal" saying their opinion, the 8 was really just a slight improvement over the 7, which costs about $150 less. others were much more bullish. i talked to some analysts who thought as the next few quarters shake out, it could prove more popular than the 10. michelle, you also mentioned the watch. that is available today, too i'm actually wearing it right here this is the version with its own cellular connection , going to g
on sale for $399 there were well-known reviewers including those at "the verge" who said they were going to recommend the device because at least as they experimented with it, they had some real connectivity issues. i did ask tim cook how much of an issue sthis that, is he concerned that could crimp demand, cook saying the issue is in his words, very minor, it will be fixed in a software update, it has to do with the handoff between wi-fi and cellular and will fix that, that it only happens in a rare number of cases guys, back to you. >> josh, we can't let you go, buddy. you spoke with tim cook, that was great. you also spoke with tim cook about something else you recently got married hope you don't mind us telling the audience that. you're off the market. apparently tim cook brought you a wedding pastry >> reporter: yeah. you know, it's very -- thank you for bringing that up it was very kind of him. we were in the store we were going to do an interview there. we were surrounded by a lot of people and mr. cook was kind enough and gracious enough to bring me a
cupcake with a little bride and groom on it. so, exceptionally generous of him. >> that was the cupcake x or the cupcake 8. get it ate. where is said cupcake now, josh? >> he ate it. >> reporter: that cupcake, you know, honestly, we're going hit to hit here, store to store, i haven't had time to sample it. i will i'll bring you that review. >> when you sample said cupcake, please put it on video, it will be the ate cupcake yes. congrats josh lipton, congrats, buddy very cool for mr. cook to do that as well see you soon. >> the question is why isn't this same phone getting the same old love from the apple faithful lines, josh mentioned they're small, social buzz is a lot less -- let's ask a man who's been using the products now for close for a week josh is the senioreditor at cnet, scott, welcome >> thanks. >> you have them right there. >> what's your verdict >> you know, they're better but they're under the hood better. and that's the thing you get that year over year with phones, and so when you have a
product like the x that's still coming out that's supposed to be the flagship phone, you want to wait and see how it compares, we haven't used that phone to any degree beyond a couple of minutes. so you're spending $700, but there's nothing here that you're really going to show off you know, that's the problem if you're waiting on line, want to do something to stay, hey, i got the new phone. it's faster, takes better know t photos, there's nothing dramatic about it. >> if somebody had a 6 out there, thinking about upgrading, is a viable choice going for the 7 which is now lower in price? versus going for the 8 >> it's very viable. i mean, the technology keeps increasing year over year so drastically. you're talking about sometimes doubling with speeds or the photos keep getting better and better. doesn't always happen with laptops. you might want to get off at an earlier stop and think that's fine people think photos and old phones, think it's fine. professionals might not like that that's the problem i'd say if you're spending that much on a phone and not upgrading every single year,
you're hanging onto it, i like to get the newest model to keep yourself a little more future-proof it's a matter -- the fact it's $ $150 versus $100 on the upgrade is a difference maker. >> can i see it? >> yeah. >> to your point, it looks kind of the same as the other phones, right? doesn't look that digit. >> that's the thing, in the landscape of phones continually improving you have lot of other companies coming up with whole new designs, whereas this is a very throwback look now. so if you want to look at samsung phones, or, you know, look at any other android phone now on the market -- >> samsung loyalists, scott, will say, well, we've had these for a couple years, wireless charging, waterproof i get it but you're either probably android or iphone at this point. it's going to be hard to change. apple knows that right? but to michelle's point, i actually upgraded to the 7 from the 6 because they heavily discounted -- not heavily, but they discount the 7s it was the latest and greatest last year. it's fine. i'm a year behind.
is this a bad thing for apple? as long as we upgrade, do they care what we go to slightly average higher selling price. >> good question. >> i don't know what their margins are. sells for more but maybe it costs for to manufacture. >> could be. people who buy products like tvs, laptops, commodity devices, you might ride along a previous generation wave, wait for the discounts at the store, you wait a while before getting a 1080p tv, wait before getting a 4k tv. there's so many phones, though, it's hard to pick which one to get. >> you have used the x, right, for a few minutes. >> for a few minutes. >> what was it like. >> it's basically the size of the 8. people who want a small phone might like that. catches up to the larger edge-to-edge feel of the screen. oled screen. >> i don't know what that means. >> basically l.e.d. technology, apple already has a very improved lce technology -- >> is it brighter? >> should make the battery last longer because it uses less power the way it creates light.
>> okay. >> the reason a phone's battery stinks compared to blackberry of years ago is it has a lit back the lit back eats the battery. that's why a blackberry would last seven days. >> i don't think picture quality makes a huge difference. i don't know if that's the one -- thefair enough. the quality of apple's displays have already been great. that's not a big difference. >> tell me about the face thing. >> yeah, so, they didn't -- i didn't get an actual chance to unlock it with my own face i saw other people unlock it with their face. i made the animoji talking poop puppets and all that you don't have a home button the question is how disruptive is that for the average person when you're going to be thrust into that with no backup plan other that a standard pass code? you could use a pass code. the whole idea is you're already using fingerprint sensor, not just position, but we don't know how well it works. >> right. >> apple's very confident it's going to work perfectly. we haven't tested it. >> didn't work perfectly for them on stage. >> no. >> i'm going to make a prediction in the future, we're
going to see people on the jersey turnpike driving their car doing this i'm not kidding. trying to log into their phones with their face. >> i think it will be more like this, keep it down here like this >> leaning over and -- that's the question if there had been a fingerprint sensor backup plan, that plus the price, basically want to wait and look and maybe you get the 8 model or keep waiting. >> okay. >> all right scott, thank you scott stein. shares of apple are down more than 6% since its launch event last week. on pace for its worse month since april of 2016. with us now is mike olson, senior analyst at piper jaffray, raised the price target on the stock today. mike, great to see you >> a 27% upside, goes to 196. you think this is a typical sell the news sort of event >> around apple and a lot of other stocks we there's an anticipation trade going into
it, think we're going to have a short-term sell the news here, partially what you were talking to related to the iphone 8, i think that's a situation of short-term gain versus -- short-term pain versus long-term gain think about it, if iphone 8 is weak, it sounds crazy, but that could actually be a good thing because it means iphone x could be stronger as people potentially wait and that would be a positive makeshift for apple as it shifts toward more higher priced models. >> based on your research currently, based on preorders, what you seeing in terms of what the demand has been so far for the 8, how it compares to the 7 or the 6 are you confident that the gap that we're seeing in demand will go to presidethe x? >> that's the critical question. i would at this point, just chatter, we don't have real hard data yet, chatter suggests that interest is a little lower for the 8 compared to prior versions really comes down to this being, again, another evolutionary upgrade whereas there's an
upgrade that's coming that's overshadowing the 8. the company has done this to themselves in some ways, overshadowed the 8 with a major new flabshgship device coming ia few weeks. we're confident it's not going to be a result of loss of market share if the iphone 8 is weak, but people focused on waiting for the iphone x if you look at all the reviews as you were talking about, the reviews suggest it's a good phone, okay phone for the iphone 8 but might as well wait for the iphone x to see how that looks. >> any fears or worries about alphabet once again, google trying to go into hardware when it comes to phone and just not go beyond the android platform do you think they can really make a go of it this time around >> well, from a competitive standpoint, i really think it's still samsung and, you know, as discussed earlier, the, you know, ecosystem that you're entrenched in is probably where you're going to stay unless there's a significant change in the device at this point i'd be surprised if there's a lot of customers shifting from i
iphone over to a google-created device. >> mike, thank you, mike olson, piper jaffray. >> thanks. right on deck. it is quiz time. this group of stocks has been higher 15 of the past 17 sessions making it a month-long star. can you guess what that group is i want you to think about it we have the answer for you next.
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tell you the label what is it you got to go to dominic chu for the answer. >> look behind me, the oil rigs, that kind of thing, it is the energy sector that's the single best performing s&p 500 sector over the course of the past month. if you take a look at its performance rather versus the s&p 500, it's a pretty big and stark out-performance. the white line, the energy sector, 7.5% for that particular etf that tracks it only 2% for the overall s&p 500. if you look at some of the big stocks leading the way higher for these particular industry groups, take a look at names like anadarko petroleum, of course, shares down quite a bit over the course of the last year marathon oil as well both those stocks. in fact, out of the 32 stocks in the s&p 500 energy sector, 19 of them have gained at least 10% or more, again, over the course of just one month check out this one the oil and gas exploration and production etf versus the oil services etf, both of those guys showing some real strength
versus just that xle overall so if we talk about the overall sector, these are some of the big etfs that track them it's been many of the exploration, production, services names individually, melissa, that have done the heavy lifting. back over to you. >> thank you, dom chu. uber, requiride-sharing ser losing its line in london. first to sue herera for a news update. >> jimmy carter returning to his alma mater dedicating presidential plaza in his honor. both he and mrs. carter attended the university in the 1940s. >> one of the things that i did when i got the nobel peace prize was give a good portion of the prize money to georgetown western college because i felt that was a basis for my -- for my education in general. not only in chemistry and
astronomy and mathematics but also in just how to get along with folks. two days after hurricane maria tore through puerto rico, millions of residents are facing the prospect of being without power for months many neighborhoods are still flooded with waist-high water. at least six people on that island were killed. former kansas senator bob dole has been hospitalized for low blood pressure a dole spokesperson says the 94-year-old has been in walter reed military medical center since september 13th but is expected to be released in a matter of days and they say his spirits are high that's t ns heewupdate this hour "power lunch" is back in two minutes' time. i count on my dell small business advisor
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all right. here's a look at some the stocks you may and. cisco and verizon leading the dow right now. united health and apple lag, in fact, apple, guys, having its worst week after a launch in seven years. meantime, shares of both americanairlines and alaska are seeing a bump. tiffany moving lower after goldman sachs dropped from neutral to buy
seagate, western digital, making new money today. another setback for uber to tell you about london will not reissue a license to the ride-hailing service. deirdre bosa is live with the late latest, deirdre? >> reporter: employees at uber's headquarters are no strangers to regulatory battles this one over london, one of the company's biggest markets, could proof to be a major blow for the company. london's regulator concluded uber is, quote, not fit to hold a private hire operator license, and approach and conduct demonstrate a lack of corporate responsibility in relation to a number of issues which have potential public sast cifety implications they will appeal the decision, could take weeks, months, even years but will be able to operate during that time guys, this highlights, it could be a major blow to the company otherwise. its new ceo has been in this position for less than a month, he is tasked with moving past all the drama.
the legal battles. turning around a corporate culture that has been beaten down this year and focus on the business now the business, itself, this year, continues to grow. according to the latest financials but competition is rising. and some solve uber's fiercest competitors have risen substantialmen substantial amounts of money this year. uber's validation, guys, in the secondary market hasn't fared quite as well. soc softbank looking to make an inme investment and wants a 30% discount to uber's $70 billion valuation. you have to wonder what the latest incident does for softbank's bargaining power. back over to you. >> deirdre bosa outside uber, we'll see you again i'm sure thank you, big story let's see how this is playing out in london. jim is live there. what kind of reaction are we seeing i can't imagine it's very positive for most people. >> reporter: you're absolutely right. londoners are not happy. that explain why a petition has already gained over 280,000
signatures according to uber, about 3.5 million londoners use uber. what they're really saying is, look, there are not credible transport alternatives particularly in the evening. yes, there are night buses but the tube doesn't run all night long black cabs aren't a realistic alternative to everybody they're very expensive, aren't enough of them on the roads and furthermore some still only accept cash which seems a bit strange in this day and age. in fact, a lot of the anger is being directed against bloack cabs who lobbied many years, staged many protests, et cetera, and obviously jubilant at having got their way. reactions, the conservative party has come out and said labor has gone too far once again and say ordinary working people who are going to be hit by this decision they did, however, acknowledge that uber must address safety rrns which is really what london mayor issadiq khan said.
he said security and safety concerns must be addressed and he said, look, people should not be angry at transport for london, for simply doing their job. they should be angry at uber for flouting the rules in are questioning why, indeed, sadiq khan picked this battle. remember this is a gentle map w who's not afraid of picking tough battles. a recent war of words on twitter with president trump hi takes on quite prominent opponents and as a result, his international profile has raised a lot in the last few months he's been mayor now for 15 months and he's gained a lot of prominence over that period. and some are wondering whether this is really a move so he can raise a bit more and eventually end up being labor party leader or even prime minister he denied as recently as july that this is what he wants to do the outcome may not be all bad for londoners. simply uber may be forced to raise their standards but allowed to keep operating. we'll have to wait and see, guys >> let's talk more joining us, ed lee
and professor of carnegie mellon's silicon valley campus good to you hear you heard what gemma was saying about how this is helping the mayor which speaks to this is all politics, isn't it >> political football, right >> this is the unions of the taxi drivers, like every union of taxi drivers all over the world late uber, all ride-sharing companies and they're trying to stop them. >> splashl especially in london to become a black cab driver in london is really, really difficult, have to take specialized tests, have to chart in your head from point "a," to point "b," ueber, you're using the uber app and are able to get there. there are 40,000 uber drivers in london those are a lot of people making a living off of this that's a big part of the constituency that whether the mayor or the commission there probably, you know, are having to consider will hear from certainly. >> 40,000 drivers who could be out of work, 3.5 million riders who could be really upset, and it sounds like the taxi drivers
are just really upset that gps was invented so they don't have to now memorize where every single street is in london like they used to. >> it's a really dumb move i mean, you know, you don't even have lyft over there, so for londoners this is a disaster that they're now going back into the dark ages and i don't know why the mayor has done such a stupid thing this is not going to help him. it makes him look like basically moving backwards in terms of inno investigation tei innovation and technology. this is a lose/lose scenario yes, uber has to clean up its act. it's been a sick company however, the new ceo is likely to fix all of that give them some regulations and then move on this is not -- doesn't make sense. >> vivek, i agree with many of your points except the dark ages really you're going back to, like, four years ago. >> those are the dark ages. >> londoners got around for hundreds of years. if you love the london government, maybe your revenues on the subway, the tube, have
been falling as well, you start to worry about that. don't you think to ed's point, there are many political underpinnings here than just being ludites? >> you can't turn back the clock anymore. we're used to technology you have 3 billion people now used to uber over there. can you imagine now having to go to a new city and not being able to dial up a cab on your phone i mean, you'll be lost when you go to london and probably will avoid london because of that so they're going to lose many times over because of this >> what is the impact, ed, do you think, in terms of valuation? >> well, okay, so -- >> so many times we said this should be a hit to valuation, this should be a hit to valuation. losing a license in one of the biggest cities in europe should potentially a -- >> one of the few regions where uber is actually profitable, that's the other thing we should think about because the business has to be sorted out for uber. it's one of thoefz thise things they require a network effect. london is one of those places. that could take a hit. at the same time, reason why investors are big on uber, wants
to put in billions of dollars into uber, there's a newer eerf incumbents on the internet, google, facebook, apple, these companies exist already. uber is the last piece of the puzzle in terms of big infrastructure and they want a piece of it in term of big high-growth companies. this may take a hit but investors -- >> vivek, you said good things about the ceo, you think he's going to be able to fix this >> i think he's going to be able to improve things a lot. if travis doesn't get him fired or interfere too much, the company could be back on track. >> edward, in terms of dealing with the london situation. >> i agree with that you have to understand -- i love how the brits, you know, use that term, it was -- in this particular incident had to do with a program that uber was using called graval, they basically were able to track local ciofficials in cities whe they were trying to do business and not send them ubers to prove we're not operating in your area if you're a commission that's supposed to regulate these things and see uber engaged in
these types of practices, of course you're going to be like that's not good. that's why they got a new ceo. the fact they have dara in is a big, big plus. by all accounts he wants to do everything above board. >> sathey have used it in places -- >> let's expand this, though, ed could this be the canary in the regulatory coal mine seen pushbacks on facebook, mark zuckerberg making the video thing yesterday, going to try to keep the russians out, et cetera, et cetera. europe has been ahead of us in regulating big tech. >> always going to be. >> ergo, kbogoogle, lawsuits, privacy. do you think this is the first step in many more to come? >> there's going to be many more to come. europe has been a high regulatory sort of environment for up thing. >> they tried to stop uber in paris, athens, everywhere. they're always trying to stop it. >> canary for facebook and google, also amazon. >> that's the thing. should show you just how crucial facebook and amazon and uber have become to everyday life right? so i think that's where
government feels like, you know what, we need to step in and make sure that, you know, everything's above board and we're protecting, you know, citizens and consumers and whatnot. so there's going to be some give and take i think europe will definitely be sort of at the higher end of the regular story scene. >> gentle help, good to have you. thank you. vivek, thanks, thanks, ed. still ahead, the retirement problem that nearly nobody else is talking about what it is and why it likely will have an impact on you and your hard-earned money. but first, to rick santelli at the cme for today's bond report rick >> reporter: thanks, sully you know, if you look, you can see it all most the action was based on fed activity we're still up five basis points on the week. but the point is, we're down three on the day call it issues over the weekend. flight to safety, korea, whatever you want. it isn't huge. we want to watch that last half hour to see if it grows a little bit. look at the intraday of the dollar index looks pretty good until you look at the one-week chart. its best chart, of course, was the response on the fed balance sheet, all these issues gave it
a bit of a bid year to date chart, not only are we way down from the $1.02 settlement, on the week we're not up much. closed ar ed around 91.90 92.16 now. the dollar even during flight to safety time doesn't seem to get any punch, that's what traders are concerned with watch the dollar index the last half hour as well. "power lunch" will return in two minutes.
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not rebalancing your portfolio. focused on what you love, not how your money will last through retirement. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan. lack of long-term care is being called the cruise ship headed for the financial iceberg. at least when it comes to retirement.metaphor. what it refers to is how we're living longer but at the high cost of health care may eat away much, if not all of our retirement savings because of that let's bring in heather holmes,
ceo, company designed to help bridge the gap between health and wealth it's a scary thought, heather. i mean, you look at your retirement plan, you think, okay, i need this much to live every year, but you don't factor in then i'm going to need $300,000 to last 4 years because i'm probably going to get sick or need care how severe is the issue? >> yeah , thank you, brian the problem is it's not just worrying about what does your care look like later in retirement, but it also means what about your spouse, what about your parents or your in-laws? all these people you could financially be responsible can then impact and drain your financial plan and are not being taken into consideration when you're planning right? we all want to plan for the fun things, the goals like i want to go on this trip, or i want to go buy this new car, but we don't want to think and -- >> heather >> yeah, i'm going to plan for retirement. >> long-term care programs, long-term care policies that you can buy, i had one for a while, but then i discovered the premium guarantees me nothing. it can go up at any time
the coverage is never guaranteed i mean, it seemed like -- i mean, at least with an insurance policy on my life, if i die, i know somebody gets "x" but when i put money toward the long-term care policy, i don't know what i get for that down the road so what do you do? >> yeah, so i think that's a very fair question, michelle, and so what we're trying to do, what we do at genevity is to help you understand how the rest of your life looks, how many healthy years do you have to look forward to, how many years are you looking at personalized to you based on your hereditary risks, your personalized longevity, how many years you might need that, some sort of level of disability or care. you can make the decision on what makes sense for you with your adviser maybe that is long-term care insurance. maybe that is setting aside money separately, but that's a decision that you get to make, but now you have more information to make a decision that's informed. >> heather, is there a rule of thumb in terms of how much we should think about later in life
to have saved in order to cover for care >> so, there's been a lot of things out there that give you a standard number. i think that none of us are standard, right? the three of you sitting there are going to each live for a different length of time and have different care needs personalized based on your risks so there's no, what risk there is no standard and we believe that you need to have a personalize understanding of what those process are for you and your loved ones so you can plan >> heather holmes, thank you >> thank you >> big wall street news you have to hear today, we gotyour wall street talk, next. e really inven is what they hope to get out of life. but helping them get there means you can't approach investing from just one point of view. because it's only when you collaborate and cross-pollinate many points of view that something wonderful can happen. those people might just get what they want out of life. or they could get even more.
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lows keep in mind the ceo still has to testify in front of congress beginning of october and there are reports that's privately, banks are reevaluating >> high quality. >> something, admin >> our second stock is public service group. peg. another upgrade for this utility. boring is the new sexy >> barclays upgrades from over weight we could see it so far, also, federal tax reform could be a catalyst, all of these utilities have all these subsidiaries. morgan stanley yesterday also upgraded peg
>> which you highlighted >> third stock here is boeing. boosting its targets on airplanes. aircraft deliveries could rise to 915 units to 2020 it should help the company delivering products to shareholders this is one of the best performance stocks >> we got breaking news. quickly, sun trust upgrading legget we got some breaking news we got to get to. >> standing by of the healthcare bill kayla. a statement coming out from john mccain saying he cannot in good conscious vote phenomenon the cassidy proposal
senator mccain has been on the propose of -- if it were a product of regular order he had been one of the most closely watched votes in this. as we reported in the show, susan collins of maine says she was leaning against the bill and rand paul says he will not vote for the bill republicans could afford to lose no more than two votes september 30th is the deadline for republicans to do this with only 50 republican votes and so if they cannot get something done and it appear that is senator mccain's vote. they cannot and that effort will have failed. so certainly a very stunning development, senator john mccain says he cannot in good conscious vote for the grand cassidy healthcare bill. >> second time in a row.
news breaking moments ago on the attempts to repeal the healthcare, all the healthcare stocks popping on the news the john mccain is a no vote again. cayla in dc. a few moments ago, we did get the statement from senator mccain's office saying he cannot vote for the graham cassidy proposal republicans and democrats have not really tried in the statement he's pushing for a healthcare process of reformed package on a bipartisan basis as a result of hearing and voting something out of the committee of a tradition way and what capital hill calls regular order that the senator had been pushing all alone.
senatooor murkowski to get her n board. obviously, those efforts did not work senator mccain in the statement referencing senator graham as a friend but does lean on his conscious and say he cannot vote for this this stops the republican healthcare efforts in its tracks unless senator collins of maine who earlier said that she will vote for the bill. it is looking like it is an increasingly uphill battle to get this done with just a week left and increasing scrutiny of dozens of industry organizations lobbying against us from the medical and insurance industry and so we'll see whether those two senators coming out with
definitive statements now that we have one from senator mccain, it would appear, michelle, that the republicans healthcare effort is dead back to you. lets bring in john harwood cayla raises the remote possibility that maybe collins or murkowski leaning against >> i think it is difficult for that for the two stood upton last bill to reverse course when you got so much opposition to this one when you got john mccain making this announcement and rand paul for a different reason also opposes this what it does is it revive the efforts that was abbreviated this week by lamar alexander, the republican from tennessee and democrat from washington define ways to stabilize these insurance marketplaces and get some of those supplement payments insurance company to
prevent big spikes in premiums and i think that's where this is headed >> why we see the stocks moving higher and all the time they spent on this means they don't work on tax reforms. >> that's the thing that surprises me michelle. this is a long shot by grand cassidy and driven by the fact that some conservatives are coming up you still have the special procedure call -- are you just going to do nothing well, the other thing they could have done other than spending a week working on this is making some head way on tax reform. we have not seen a proposal yet and this is i think it is going to go down as a self inflicted wounds boo i republicans from what they care about more and what is achievable >> added to the list thank you, john. >> as we mentioned a number of healthcare stocks are spiking on
the back of this a look of this reaction and bob pisani, it is up more than 4% right now. >> yeah, and a whole group of them are moving and hmo area, it is not moving the index that much healthcare is a big area let me show you a couple of them, centene and stocks are up closer to 3% and some of the other ones, uhs, that's up of 1% these are alienate of a coupl ft a -- and hca moved up about a point. overall of what's happening, we have been getting a tremendous rotation and one group falls back and another group moves forward. you may have semiconductor weak today but other groups move
forward. you got these stocks in sort of a limbo trying to figure out what the faith is on them and i am talking about healthcare stocks in general. in particular, hospital stocks and hmo stocks and now you may see some of these stocks starting to move while this may not look like the important overall scheme of things, it tend to create that rotation into different groups that's why the market does not go down to it all. we are down four or five points of the s & p 500 >> guys, back to you >> thanks bob. as john mentioned on the back of healthcare, gop leaders are looking to release their new tax plan next week ylan mui is joining us with the details. >> we'll take a look at that this afternoon indiana as a tax reform success story and that was written by
pence himself back when he was a governor >> i think governor pence will talk again on tax reform because of personal experience he's not going out and telling the american people something that may happen or could happen. he's going to be able to tell people what has happened in indiana. >> pence signed into law the biggest tax cuts in the state's history of $3.5 billion. since then, indiana's economy have grown faster than the national average the unemployment rate is 3.5%. that dynamic is at the heart of the tax plan that and the white house and the republican leadership plan to release it next week it should include specific tax rate and officials are opened to this plan adding to the deficit as well. guys as we said, this tax bill is the top priority for the white house and wilbur ross said on air this morning that it is
taking a backseat into tax cuts. >> thank you very much ylan mui in dc. lets get more on our strategis strategists. christina, where are we in the markets right now? some are arguing evaluations are high and we are facing all concerns >> evaluations are stretched and i would argue that we have that expectations that really have a seeded reality at this point and there is a lot of reasons of a positive sentiment we just have not seen a lot getting done tax reform could be the first key initiative, it is a shame that it maybe taking a backseat the next few days to another attempt of healthcare, that seems to be a mistake. tax reform could choose the economy and having an impact how does that compare to periods in the past? >> well, what i would say is, i
would be modest under weight on u.s. equities today favoring international. >> when were the last time you were under weight of equities? >> i was arguing this for months mo now. >> we would have lost out on a chunks in markets. >> you would experience gains in the markets. actually while the u.s. stock market story is front and center, international markets have done very well but quietly. >> ron, where do you see in the market of where we are >> well, we trended up which is good it is interesting to know, look at some of the backward economic, it is been revised upward and you look at median income for families and they appears to be stro to be stronge rear mirror. i do think tax reform or tax cuts, i think we should stop
calling it tax reform if it does indeed happen. it will be something of a kicker if this health bill fails, it is going to be harder to get tax reforms through. they're counting to finance part of the tax cut effort and that's part of the equation that's not. i think wall street is grappling with it right now. >> why didn't you finance? >> you don't care about defendant sideficits and you don't need to finance. i don't think the president cares about deficits >> kansas rather than indiana that does unfunded tax cuts and does damage to the economy and given that we are at $20 trillion in debt and something that the president derived during the campaign and if you can cut tax by a trillion and a half or more, you may want to care. i just don't think the construction of composition of tax cuts >> if you like international and
where? >> i would well diversify internationally. pretty significant potential in europe there is a turn around story unfolding right now and a number of euro zone countries primarily in france. it is something we want to follow closely and within the u.s., i would focus significantly on dividend paying stocks while the feds are poised at rates again, we need to find yield where we'll get it christina and ron, thank you >> here is what's coming up on "power lunch." one retail insider says forget amazon partnering with kohl's, they'll go to the next level >> plus, nfl's ratings suffer g suffering. we are going to speak with the puerto rico secretary of state about road to recovery, all and much more when "power lunch"
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into those numbers >> lets talk about those moves first. using the stock to recover bets but it would go lower, going into the quarterly results here about a third finish line, shares outstanding were short. it is now just about 400 million for finish line. remember finish line warned investors on october 28th. easte earnings did come in at the higher end what actually happened in the quart quarter? well, they were not excited of the products otherwise that punished sales in subsequently margins total comp sales fall 4.5% sales at macy's shops grew nearly 6%.
lifestyle food wear, those are the shoe that is you were wearing when not working out, that's the weakest group >> stronger sales like adiddas and jordan styles particularly weak some of the nike and adidas styles were strong so on a separate note we told you earlier and we did reach out to dillard's on those rumors they were going private. the company is declining comment as a matter of policy. kourtney, thank you. >> got it. >> well, you had a flurry of retail news. lets start up with amazon. >> lady as kohl's have been out on a couple of dates first was kohl's selling amazon items in its stores and second is now you can return your items
taking it into kohl's. our dating expert and a man who's here to tell us if they are going to take their next step which could be amazon buying kohl's, do you think? >> are they going to get married? >> i don't know. amazon needs more boxes than the 400 they are getting with whole foo foods. whether it is target or kohl's or anywhere else they need the boxes. i don't know if they need stores or last mile delivery or return centers. they need boxes because the customers want to come to the store and the 1100 probably covers the country they don't need 2200 from target and they don't need them as big as target >> if they don't get married, they're definitely -- >> well, i don't know if they are going get married. they should.
>> you can just guess anyway >> you thisnk they should get married? >> they are the most likely candidate if they want to own the apparel business i think amazon wants to own the apparel business i think distribution -- >> kohl's needs amazon more than amazon needs kohl's? is it good of whey they aat the doing? they need traffic. whether they pick up there or returning there, you get sales off. >> the stuff that you can return at kohl's from amazon is not kohl's product >> or bed bath and beyond. >> they picked kohl's because it is convenient and its got big
traffic relatively speaking that's dedicated to consumers. >>. >> that's true the over lap between kohl's customers and amazon customers were about 8%. >> correct is that a good thing does amazon want to go to place where they don't over lap too much >> amazon over laps with everybody. they need the boxes and facilities and the last mile delivery and they need apparel just like they want to win groceries. their boxes work i think we can see the third step in the dating >> jeff bezos wanted to be the everything store, there was a book about it three years ago. >> there is a story we talked about, walmart is reporting of a
surge that would deliver food into your home >> they would bring food into your home when you are not there. >> i spent my life trying to keep people out of my house. >> now, of course, it could be there. is this -- what do you make of this >> this is a deal of -- this is only an area you can get in the deal by signing up but, it is an interesting concept, i am like you, i don't want them to come into my house when i am not there particularly there is going to be a way to get stuff from your house when you are not at home >> why, are we that needy? >> we are at time constraint and we do want it. the question is will it be somebody coming into your house and putting it in your fridge or a locker outside or do you have
some place that's convenient for you. somebody is going to solve this. the great part is it is not going to be the ultimate solution, this is the first test and we'll start figuring out as we go along. >> walmart got the tower down picking up your online orders and it feeds it down the automatic third and 42nd street as you noticed. these solutions may not be the solutions but we have to solve this deliverly and this is one of the ways that may work >> jan rogers, thank you >> thank you >> coming up, an inspired mansion. now you can buy it if u veyoha a spare $18 million. we'll take you inside our "power house" that's next.
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with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade. for each week we take you inside the home of ceos and celebrities and other industry mobiles. this week, we have a new and improved piece of pop culture history, grey gardens. >> this staple sale in
easthampton, new york, it is made infamous by its former owner. owned by jackie kennedy. it was later became the subject of a documentary broadway musical and movie. >> actually been condemned by the health department. >> until it was restored to its former glory by its new owner ben bradley the editor that broke watergate and his wife salley quinn >> salley wanted to preserve the home and bring it back to its original architectu original architecture ral. today the home still has many of its original elements from the be banister and the entrance hallway and the covered over the kitchen and looking over the signature gardens and there are some modern amenities, too bradley and quinn added this seven bedrooms and six and a
half bathrooms for $18 million, this new and improved piece of history could be yours >> the property tax for grey gardens are less than $10,000 a year that's mainly because the house was built in 1897. your grandfathered in, this new home is paid close to 75 grand a year >> scoop it up chaos in the caribbean how the recent hurricane is changing the travel industry we'll ask the secretary of state how coryreve efforts are going he's going to join us live, in the case
killing four and leaving 20 others missing, at least 30 migrants have been rescued though no information on where they are headed a fire crew missile, that's according to the russian defense ministry released videos of what it says of the missile strike. and given that, it is the first day of fall. starting today the new maple pecan latte is on starbucks' menu nationwide. this new beverage containing flavors of the year. it weighs 390 calories it is a splurge. that's the news update at this hour >> make a couple folger's and
put a couple of sugar in there for six cents. >> oh, there you go. jackie deangelis is at the cnbc commodity desk. >> good afternoon. opec members concluding those meetings in vienna today members get deeper into this cut compliances certainly is suffering. the markets are well on their way towards the rebalance. the issue is members like libya and nigeria they keep on upgrading their out put. right now crude over 50 and up a little bit more and actually a little bit less of 2% of the week and 6%. back to you. jackie deangelis thank you. the dominica and turks &
caicos and we are looking at how this change the travel history, seema. >> some of the islands that have been hit hard by irma and maria, given the damage on the ground, the recovery process will take time resulting in other island that is were spared. norwegian cruise line have cancelled trips to the caribbean until november and rerouting passengers to the western caribbean, mexico could see influx of tourists cruises have been making more stops at cozumel
guys, the question is whether this will help or actually hurt demand travel experts are seeing that we'll see higher demands is central panama puerto rico is trying to pick up the pieces after hurricane maria ripped through the island one of the biggest challenges is getting electricity back online. joining me now is luis rivera marin. sir, thank you for calling in. >> thank you for having us, we are clearing the roads back. >> tell us about the state getting power back on. what is the biggest hurdle and why is it going to take months to restore electricity >> many, many of infrastructure is down and so we need to get it up and running or we establish priorities where we have our
hospitals and hotels and going to communities the higher grounds and the cent center the winds are higher there that's going to take longer. it is going to take a lot of times and we are receiving support from new york and power utility company and as well as georgia and florida which are giving us support and working from early morning tonight trying to get power back >> mr. secretary, is there an issue in terms of getting the materials you need to restore the power. you mentioned power lines of mostly areas where we see pictures of power poles being snapped in half and on the ground at this point transformers are damaged by flood waters how are you getting supplies there?
>> we were just recovering we are back in line of the after math many are coming in and fema is bringing in a ton of supplies. we are waiting to receive a lot of generators for live support system we have flooding that requires pumps to operate we are working on those to get the generators the first lady established families of a help line unitedpuertorico.com many of our homes are built of
woods. >> why is that at this day in age that so many are built of wooden tents >> it is just resources. as you know we have half of the household income of a poorest state in the nation. we are making sure we are building a stronger puerto rico. many of times they are out and it is set construction we are getting help to the power of our wind. >> you cannot see us because the power is probably out where you are. we are showing videos that you have taken with your phones really, it is unbelievable
you have really been out there in the middle of it sir, thank you for calling in, we appreciate it. >> thank you for your support. >> luis rivera marin, is a secretary of state of puerto rico if you want to make a donation, it is at unitedpuertorico.com lets move onto venezuela a payment that was due, they finally paid it yesterday. does it mean that the country is finally on the brink of default of struggling to pay the amount. our next guest, daniel rosario, he's the president of large head funds and asset manager. it is good to have you here. >> we see all this horrific video coming out of venezuela, we know they are strapped for cash they have been paying their debts to bondholders for years now and they are suddenly late
>> look, i think the question is clear and acute. and without the help of russia and china, venezuela on its own is not able to pay debt liable it is a much more complex question of do they have enough money to pay if russia and china want to continue to have the influence they have for venezuela to go forward. 300 billion barrels. >> you can see where they have the incentives in the western h hemisphere of hour rival how often to do you go >> i spend about a week and a month there. >> what was it like? >> it had a sophisticated banking industry and tourism and it was fantastic place to visit. what has happened the last 20 years is there are no words to
explain. >> how do you pay for lunch. >> do you bring a wheel barrel full of money. >> and when you find a place that does have food, you say okay, how much is this and when you put in the foreign exchange black market rates of $4 or $5 lunch. the equivalent of $4 or $5 -- up until the recent -- if you want to treat anyone then you need a duffel bag full of cash. so what was happening was the country is not yet dollarize, usually in a place like zimbabwa all of a sudden people started to tran saction.
then how do you pay for lunch? >> you wire the money. >> it is becoming a cash society. that brings something interesting and provacative that we are beginning to see in venezuela potentially the first bit coinization of a sovereign state and not out of intellectual interest or technological interest out of necessity. >> do we have evidence that they are using bit coin >> we absolutely have evidence it was mind extensively and authorities are trying to put an end to that. the amount of transactions that are occurring would shock you. i think as ofwestern society, we should help them and aid them because that's an easy way to be able to get money into the hands of people that really need the money.
>> it the rusty platforms and capital capital inten capital intensive. >> do you think we'll see continue drop of out put >> they cannot pay the people and they cannot afford to fix up the rig. >> right, i think the answer for that should be posed of the cfo and ceo. he will decide that. >> i have a question because there is a lot of investors of the emerge ing markets are lookn for yields all sorts of tourists investing in the market and instruments of the market bond index. we are on the verge of default of venezuela debt. what happens there the secret that people don't speak about is that venezuela is about 4% of the bond index
it is 25% of the yield set of index. therefore, it is two big of a carry to ignore. so for the viewers out there, they may think that this is just some distant land. >> it is not though. >> 401 k if off high yield portfolio, there is a good chance, if you have an emerging market bond portfolio, you have them you absolutely have them so this is not a distance thing. this is a very close to home thing. >> if they do default, do they get outsed from that index >> there are procedures that we have seen in other countries >> so then the yield would go down >> right >> it will certainly go down and it will be $65 billion worth of bonds that need to be restructured >> so far. they have been a great investment >> right >> so far they have. >> thank you, russia >> thank you, danny. >> it is great to be here with you guys
>> thank you last night's great game savers the nfl tv's rating problems we'll find out, next people rean is what they hope to get out of life. but helping them get there means you can't approach investing from just one point of view. because it's only when you collaborate and cross-pollinate many points of view that something wonderful can happen. those people might just get what they want out of life. or they could get even more.
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viewer ship is up. the stayed dium was half empty. >> nfl tv ratings have been slumping, down to 12% and many are blaming hurricane irma george, it is great to have you with us. >> great to be here. >> is this a problem >> 2015 nfl had the best ratings in decade. we are going against a high base this year seven of the top ten programs were nfl games. i don't think two seasons make the season i think it is too early to draw conclusions. >> disney is going to start reporting total audience numbers so it is not just tv but it is going to be digital and they're going to combine those numbers
>> i think it is credible. >> do you think the whole industry is that way >> why is it not ready i watched last night's game on my ipad using the comcast x-infinity stream thing. >> is it going to help ratings is it going to make a difference >> a lot of people consuming context differently. >> nfl game pack is available. >> i watch the chargers game and i watched it when it is over >> correct, absolutely >> you watch the game when it is over >> you already know what happens. >> i avoid it and i delete twitter and you can turn off the score function so it won't show the scores >> you can run your own replay, it is really good. >> i know exactly. >> george, lets talk about
overall sports evaluation. our friend paid the most for the franchise, is that a good deal >> in fact, the gentleman that sold the team bought it for $85 million. they are the eighth largest markets in the united states i think the nba is a good long-term bet. i think it is a good investment. it helps when they have a geographic monopoly. that's one of the important things of so forteams in most cs there are only 30 of them in the world. >> in history, look at football and look at bob craft bought the patriots for $175 million. it is worth $3. billion. >> because of tom brady. >> going back to the total audience notion, do you see that
not just being for sports but for other type of programming. >> she's asking for a friend [ laughter ] >> everyone wants to know the answer >> what's the question again >> do you think this is the standard for other types of programs, is that the way people watch tv in general? >> sure, somebody is watching and consuming something, it should be measured it is only fair to the advertise advertisers. >> you are not getting paid as much the advertising revenue is not just the same than the tv conte content. >> that's going to merge and as you develop a relationship with a consumer with a device that's different. >> do you guys watch sports like over apple tv? you know what you do in a lot of commercial breaks, end it and we'll be right back or you get the same ads over and over again or promotions of the network that you are watching. they need the figure it out.
>> it is coming and there is nothing we can do so you got t embrace it >> by the way, say hi to your brother. >> we found out he went to school with me >> jim pyne, he's a great player >> thank you, good to have you >> lesley pickers pick up with the details. >> the shareholders lawsuit where shareholders are blocking the influence of shares on facebook we learned that case is settle d. on tuesday mark zuckerberg will have to testify. now, it looks like that case will not take place. we don't know details of the settlement at this time. but, we are seeking to learn more and we'll get back to you of what we learn, guys >> if they took money, we don't know what the settlement is, but if they took money, they have an issue of the whole policy. >> exactly >> that's what the shareholder
were seeking to block because they were saying it is diluted of the current holdings and s w showing zuckerberg's holding is only 2% and he will have control over any decisions made. >> in tech, apple having its worst week in a year, it's down about 5% it's also it's worth weekly performance ever ahead of an iphone launch. is this a good opportunity to oshldouhe dipr ou y wait we'll trade it, next ♪ ♪ (bell rings) ♪ (screeching tires)
all right. let's trade some apple here. david seaberg, and robert with fund strat global advisers david, this is not only a tough week for apple, actually the worst week post-launch going back to the week after the launch of the first iphone, in other words a decade ago what do you make of it >> look, it's absolutely a buy here it's a six-month trend, brian. trade up to 180 bucks. after the fourth quarter numbers, take that trade off here's the deal, i mean, look,
all the negative news around shorter lines on the stores, we've learned a lot about buying habits or shopping habits of consumers right now. they're buying a lot more online, going directly to the distributors there's no question that the demand for this phone is strong, especially for the x i look at the, say, x, in particular, will show up in fourth-quarter numbers, absolutely should be buying the stock here this is pentup demand into a massively aging install base i look at it very different than other launches i think this is a form factor change the oled screen. people really want to buy this phone. i mean, think about apple as a consumer electronics company that builds products that people don't necessarily need, they build products people want people want this phone price point, i don't think it matters in this case i think you got to buy the stock. >> okay, robert, very bullish view from david. do you agree or disagree >> i actually do agree let's take a look at charts. the very long term is where you want to start. look at apple over a multi-decade period, obviously ebbs and flows in a much longer
term up front. the 200 week or 4-year moving average, very good proxy for where apple potentially can trade down that number is actually much, much lower it's down around another 20% or so before we jump the gup hern herh critical point, this is a long-term trend. let's take a look at the shorte shorter-term chart key points here, and it lines up with david's point of view very well so apple's come off quite a bit. we've seen a rotation away from growth stocks. fairly important point apple is starting to fill in this gap that was in place back from august 1st. well, it's a little techno jargon that's an area, a level that technicians often look at. so between 147 and 150ish, there's actually some very good trading support for the stock. i think it's just filled in that gap, i think this is you begin the nibble long-term holders, be a little more careful about chasing aggressive growth stocks overall in the market. we could talk about that later. >> okay, well, not in this one, but online wie will
robert, david, thank you very much two bullish views on apple making people happy. for more "trading nation" go to tradingnation.cnbc.com "check please" is next and now, the latest from tradingnation.cnbc.com and a word from our sponsor. >> short selling can help you profit from a stock's decline however, because it involves unlimited risk, you must have a plap plan. first, screen for poorly rated stocks showing weakness versus the broad markets. second, look for the stocks with the poorest technicals in that group. and finally, incorporate risk management techniques into your order to limit potenaloss.ti lse
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with powerful intel® core™ processors. ♪ >> one of the things that struck me the most during the show is the guest we had on who spends a lot of time in venezuela, how hyperinflation is so bad, you have to bring a duffel bag full of money to pay for your $5 lunch or wire the money. >> yeah. >> crazy >> crazy the bitcoinization of the country is happening, too. >> investors have to understand, they may think this is a venezuelan company rg it doesn't impact me. take a look at your portfolio, chances are, you're chasing for a yield that didn't exist for the past few year. >> if you owe any kind of em death, you spr sure own venezuela. >> must know what the lunch costs, in order to wire it, you must do it ahead of time
you have to agree, there's to tip, you have to agree -- i'm not kidding. how would you do it? otherwise, you'd be like i'll wire you the money later yeah, right. >> yeah, no. >> yeah. >> you have a check please, b bri brian? >> that was it. >> all right have a great weekend, everybody. thanks for watching "power lunch. >> "closing bell" starts right now. hi, everybody. welcome to "the closing bell" on th this friday, i'm kelly evans at the new york stock exchange. >> tgif from me as well, i'm bill griffeth. very newsy day apple on pace for its worst week in almost a year and a half as the iphone 8 hits stores today amid lackluster reviews. we're going near whatto merheari cook has to say. bomb sthshel