tv Power Lunch CNBC May 21, 2012 1:00pm-2:00pm EDT
here, mid-30s. >> guy. >> jc penney, washed out last week. >> joey t. >> adding to my long in starbucks. >> okay. that does it for us. more "fast money" at 5:00 p.m. eastern. follow me on twitter. follow the markets and the facebook story on "power lunch," which starts now. halftime's over, the second half of your trading day begins now. >> good afternoon, everybody. i'm tyler mathisen. and this is facebook. the stock getting rocked today. and this is the other side of the coin. morgan stanley, the lead underwriter, its shares down about 1.5% at $13.16. as for the big picture, we are in rally mode as the dow moves higher by 89 points. that's a bit of a change from recent days. the nasdaq up by almost 2% or 52 points. the s&p by more than 1% at
1309.73. oil right now basically flat as you see -- excuse me, gold basically flat. but oil up by about 1%. sue herera's on watch at the new york stock exchange. good afternoon, sue. >> hi, ty. good to see you. you know, there's a lot of optimism on the floor today. the markets are starting the week out on a strong note thanks to news that china will continue to support its economy. that could keep the global growth story going strong. so in the dow stocks that are leading the way include caterpillar, which has been up better than 3% at various times during the session, boeing as well. both companies doing an awful lot of business with china. meantime, over on the nasdaq apple's leading the way. it's up better than 4%. that's helping to soften the blow from facebook's shares, which of course you just highlighted. we want to bring you up to date on the very latest in the facebook story. the shares have been under pressure since the pre-market. reports say that morgan stanley has a large number of market orders entered friday for facebook. they still haven't been finalized. that basically means that some buyers of facebook stock still
don't know if their buy or sell orders have actually gone through. let's take another look at the stock because it's now down better than 10% at 34.27. we're keeping an eye on it for you, ty. thank you, sue. the former head of new york stock exchange, dick grasso, weighing in on nasdaq's facebook fumble today on "squawk box." listen in. >> what they could have done say for friday only we're going to take a model that says there's going to be one point of pricing, we're going to collect all of the orders, we're going to disseminate the parameters within which we expect this stock to open, we're going to give it a period of time to gestate into the marketplace. let those orders get canceled and replaced. do it one more time if you have to and then create a single point of opening. >> grasso went onto give advice to morgan stanley, one of facebook's main underwriters. >> morgan stanley and the collective group of underwriters should this morning say to
themselves, okay, how much are we willing to spend? this is a franchise-threatening event. >> yeah. >> let us put ourselves on the line. >> a franchise-threatening event. joining me now, scott wapner, john carney, a lot of people still angry about that debut of facebook on friday. let's take a listen to what thomas joyce of night capital had to say to "squawk box" this morning. >> i have no doubt they have a lot on their hands, but the industry will be looking at them. they exported their problem. they had a software problem, they knew it and exported their problem to the industry. and i think it's time to export a solution to the industry. >> so. taking aim at nasdaq, scott wapner. how big a hit reputationally is this for them? >> i think it's huge. this was supposed to be the nasdaq's grand moment. getting the facebook ipo was big in and of itself. friday was supposed to be the day. now they're left with an
indictment of their own systems, indictment of their ability to handle an ipo of this size. tom joyce went onto say -- he's a big market player, you should listen to him. he said it was the worst performance by exchange ever. grasso himself comes out over the weekend and says he's humbly embarrassed by the whole process. whether there are any lawsuits down the road for the nasdaq, that's something to be considered. whether they lose business down the road is another thing to be considered. >> whether another ipo in this space particularly is going to come to that. >> if i'm twitter and i'm sitting out there thinking about going public over the next 12 to 18 to 20 months, does this impact a next huge ipo? who knows. >> john. >> i think they'll be able to land something like twitter, which will be a much smaller ipo. what they won't be able to do is get the giant ipos, the blockbuster ipos, because that's where they failed. they can handle the small ones. they've shown us that. but when it came to this one, the big marquee moment, they
couldn't do it sfwl people are saying, john, about morgan stanley, they brought too many shares to public at too high a price. they fumbled. did they? and what's the damage to their reputation and their ability to lead a book? >> i'm not sure morgan stanley's reputation will be that damaged by this. remember, if you're a company that wants to go public, morgan stanley did a very good job for facebook. they got them a lot of money. i think that could help them. it helps them a lot more than the crazy lottery ipos where it doubles. right now we're going to see a lot of volatility. we know this is a speculative stock. it will go up. it will go down, especially through the next six months when you have a lot more shares coming out to market. >> is this ipo potentially going to cost morgan stanley some money? >> it could because remember on friday they had to buy a lot of shares. >> yeah. hasn't it already? >> right. we don't know exactly the numbers right now, but we do know that morgan stanley had to go into the market and support that $38 price, although it's now sunk way below that. so they've lost money on those
shares they've bought. but remember, they were prepared to support this. they're paid to do that. >> to stabilize, yes. >> i think ultimately the big question is what the cost is to the nasdaq. i'm not talking dollar perspective. its perception, reputation. encouraged they're going to continue to gain market share and ipo skpz that really remains to be seen. >> we'll see. appreciate it. let's move onto jeff kilburg with kilburg capital. you wanted, jeff, to buy facebook last week. did you? and if so, are you sorry now? >> well, ty, great to be here. yes, i did buy facebook, a few bucks above $40. what a debackable debacle it was. every few minutes delay on the nasdaq, you saw a dollar decrease in price. that uncertainty really caused a problem, but i'm hanging in there because at the end of the day we'll see options get rolled out later this week, the pros will come in and hopefully that stock goes to where i think it's
going to. >> so you bought it, you own it, do you hold it and wait for it to come back? >> you do. you're seeing this volatility. it's very thin markets. you're hearing a lot of potential litigation. all the side problems does not detract from all the wind in the sails. they have 901 million users here. facebook is going to continue to evolve. they'll figure out the mobile app. hang in there and wait for the options and pros go back to the ipo price. >> i want to be in the room when mark zuckerberg comes home and says honey, i lost a big one. the other big story of the day is jp morgan's jamie dimon. he's at a big meeting with wall street ceos being sponsored by deutsche bank. bryan moynihan also gearing up to speak. jpmorgan down. the stock as you know has taken
a big hit in the past week down almost 10% in the wake of the multibillion dollar trading problem. mary thompson's on the beat at the deutsche bank in new york. >> hey, sue. earlier todday dimon emphasized it's not going to impact the bank's dividend. then he surprised the audience by saying the bank plans to suspend its stock buyback program. >> we have decided to suspend our purchase program. we have made a commitment to ourselves and increase it. increase it to what we think about what the new target will be. >> last -- last march regulators approving the bank's request to buy back $12 billion of stock this year and then $3 billion additional shares early next year, dimon didn't say if regulators suggested the suspension because of the trading losses in an e-mail to the company seeking comment was
not immediately returned. now, dimon says when the bank does resume the buyback plan, and it will, he said he's not going to tell investors. but the move did win praise from guggenheim which wrote in a note it likely saves regulators from having to ask the bank to cut its dividend if needed because of those trading losses. dimon said he wouldn't comment on the size of the losses, initially said to be $2 billion, saying we won't give a running tally. he does hope the bad trades are not an issue by year end and repeated the bank will exit them when it makes economic sense. speaking about the bank's other businesses, dimon says they continue to take share and also repeated that the bank will make money this quarter despite those trading losses. as for other concerns the bank has, he repeatedly said that europe is a serious issue right now. sue, back to you. >> thank you very much, mary. appreciate it. today on "closing bell," we have two ceos of deutsche bank's bank corporate investment bank. if anyone has the keys as to
what's really happening in europe, he could be the man, "closing bell" starts at 3:00 p.m. eastern time. then on 5:00 on "fast money," deutsche bank's security global head of prime finance is on the show. president and global head of prime finance. ty. >> sue, a major insider trading case getting underway today. and bertha coombs is live in new york city as raj gupta goes on trial. >> that's right. former ceo arriving along with everyone else this morning in a huge downpour here for the beginning of his trial. he is charged with five counts of securities fraud and one of conspiracy for allegedly having tipped off convicted gallion founder, rajartnam, in regards to goldman sachs. he was a board member at the time and also proctor & gamble. prosecutors and the defense this
morning are in the midst of trying to get a jury together here. things got going a little bit late because of the downpours this morning. so the jury pool getting in a little bit later. but that jury selection underway. if we get it chosen, the judge would like to start arguments this afternoon. back to you. >> thank you very much, bertha. atlanta federal reserve bank president dennis lockhart saying today the u.s. needs measured efforts to spur growth. he said now is not the time for another round of quantitative easing. but he also said that qe-3 should not be taken off the table either. he said that he foresees only modest growth in the coming years and added the u.s. economy faces continued risks from the european economic crisis. ty. >> sue, a much needed windfall for yahoo!. the struggling internet giant selling half its stake in the chinese internet company alibaba for $7 billion. what does this mean for yahoo! now? jon fortt at yahoo! headquarters
in sunnyvale. what a busy week for that company, jon? >> yes, indeed, tyler. to qualify it a little bit, it's a chance to sell that stake at around $7.1 billion. have to pay taxes on that and also a plan to sell the rest of it. very interesting day for yahoo!. the stock up less than the nasdaq right now the fact investors aren't overly jazzed about this. there's more work to do here. take a look at how this deal works. alibaba's going to pay $7.1 billion ballpark for this right now after they raise equity for it. it looks like yahoo!'s going to use this to boost a buyback. of course if they held onto that cash they probably would be even more of a takeout target. and yahoo! will get the rest before and after an ipo. next up we'll see what happens with yahoo! japan. yahoo!'s stake in yahoo! japan could be worth as much as $5 billion. take alibaba stake and yahoo! together and you've almost got yahoo!'s entire market cap. that raises the question of what
happens with the rest of yahoo!'s business. they still need to appoint a permanent ceo and articulate the way forward in a very competitive environment. back to you. >> thank you very much, jon. all right. let's go to brian shactman now at the stocks desk. you're talking about rim? >> yeah. quickly want to point out i just saw yahoo! downgraded to neutral from overweight at piper jaffry. a lot of the analysts were positive with what's going on there. i want to talk about research in motion. itc deciding against kodak saying rim and apple did not violate patent there. rim seeing a pop most likely on that news. apple having a really good day even br this report came out. back to you. >> thanks, brian. up next on "power lunch" as we continue, shares of lowe's getting slammed today on their forecast. we're going to talk about what that outlook is saying about the overall housing recovery. and a big week for earnings, best buy, dell, hp, pandora and tiffany all on deck. how do you trade these stocks ahead of results? tyler and i are back in just two minutes time.
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keep your eye on best buy today if you dare. shares hitting a new three-year low. at $18.19, it's actually a little higher, but earlier today it was down at that three-year low. look at that. losing almost half of its value in that time. the struggling electronics retailer saying it is choosing the recruiting firm, spencer stewart, to run its search for a new ceo. best buy reports its earnings
tomorrow, sue. >> ty, lowe's reporting its numbers earlier this morning. the number two home improvement retailer beat on the bottom line, but it also cut its outlook. and ilts shares are lower today by almost 10%. in the last year though they're up 20%. they've dropped since the start of may. diana olick is live in washington. it's interesting because this is the home improvement season, diana. >> it absolutely is, sue. the home improvement sector in general has benefitted from the housing crash. on the one hand homeowners can't sell or move they remodel or upgrade. and retailers are fixing homes up to put out on the hot rental market. that fuels the 14% earnings bump. on the flip side same store sales in the u.s. is up 2.7% up from q-4 and reflect lost share to home depot. lowe's also cut its full year earnings outlook to between $1.73 to $1.83 a share. remodeling activity was flat in
the first quarter of this year according to an index from the national association of home builders. the builders cite demand pulled forward due to the unusually warm weather. again, the weather excuse. but one more thing to note for investors, a cautionary tale. it's be on the blog. tyler. >> diana, thanks very much. best buy and lowe's headlining a very busy earnings week. campbell's is up there too today. amazing what soup can do. tomorrow as we move along, it's best buy, medtronic, ralph lauren, vodafon. pandora, my favorite radio service hasn't been much of a stock lately. thursday you have costco, tiffany and td bank. jeff kilburg, let's talk about how we play these stocks starting with tomorrow and best buy selling at a three-year low today. is it a nibble or not? >> i think it is, ty. we talk about best buy.
it's been taken out to the wood shed, no doubt about it. but they hired spencer stewart. the ceo search. i think someone will come in and turn it around. >> maybe this is the time to get in there if you're brave enough. look at toll brothers next. >> toll brothers, i like it. 52-week high last week. but lowe's getting taken to the wood shed, it's a hold. i think you have to reconsider. >> what about tiffany? >> that's the bellwether. that's the premier global luxury brand. so in the event we see a recession kind of take place in europe, i think tiffany is still going to do well over there because it is the premier global brand. >> it will withstand. >> love diamonds. ladies love diamonds. >> all right, sue. >> indeed i love diamonds, gentlemen. thank you very much. up next on "power lunch," the exotic animal trade. the illegal underground world and its impact on the environment, animals and your money. and as we head out, stocks hitting 52-week highs today. it's a strong market but walmart's on the list and
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now we've turned the page again with the all-new rx f sport. ♪ this is the next chapter for the rx and the next chapter for lexus. see your lexus dealer. welcome back to "power lunch." the dow's up 95 points. there's an awful lot going on today. we want to keep you up to the minute on shares of facebook. they are down sharply. they are down almost 9% now at $34.91. that of course is below the $38 ipo price. morgan stanley also under pressure down almost a full percent. it was the lead underwriter of
the ipo. bit later on "power lunch" we'll dive deeper into what facebook stock plunge means for both companies as well as for investors and of course the nasdaq, which is the listing exchange. ty, back to you. >> sue, it's a major criminal enterprise that often goes under the radar. the smuggling and selling of exotic animals in the u.s. tonight at 9:00 eastern pacific brian shactman takes us inside this fascinating world to show us the financial impact and the resources that go towards battling this illegal trade. he's here with us live. >> yeah. you know, it's an unusual black market. some say it's worth up to $20 billion a year worldwide. that's a lot bigger than you might think, right? and to try and catch the criminals involved, there's a place in oregon that uses methods straight out of a crime drama. here scientists use evidence to link the victim with a suspect through time-tested methods. >> you can see here there's really good ridge detail. >> and more advanced techniques.
this is a bullet test fire tank. they take a potential suspect's weapon, fire it into the tank and then see if the bullet matches one taken out of the animal. this is a 7-mm rifle, strong enough to take down an elephant. the case load is proof of a booming business in the illegal wildlife trade. >> that 7-mm i haven't done a lot of hunting in my life, but that thud goes to the core of your soul. it was so loud. with all the technology they have, they get a head that has a bullet wound, you know what they do? throw it in a bin of beetles. the beetles get two weeks to eat off everything. >> and then you get a fresh clean skull. >> yeah. it was just amazing that's what they need to do. but there's no better way to do it. >> that's really rather disgraceful it would seem to me. but let me ask you a couple questions. >> sure. >> what is the most frequently traded illegal specimen, number one? and number two, what's the most valuable animal dead, what's the most valuable animal alive?
>> those are good questions. i'll start with the sexier picks. the most valuable animals dead are rhinos and tigers. >> because people use the extract of the horn? >> you crush out the rhino horn and in asia, places like vietnam, they think it cures cancer. there are crime syndicates stockpiling rhino horn maybe thinking it will go extinct and they'll have a corner on the market. if you know how to move the parts, it could be worth $75,000 to $100,000. >> when you kill it? you bring it in live for $2,500. >> that's a good margin. people smuggle live animals all the time. we had pictures and stories of guys pulling up their sock and they have live birds all the way up their leg. maybe five or six of them die, seven or eight or nine of them in and they can sell those. even eggs inside of toilet paper. just what people do. if it smells on the airline, maybe there's something going on next to you. >> there's a guy in the seat
next to you. brian, we'll be watching tonight. don't miss it. "dangerous trade, exotic animals" tonight at 9:00 eastern and reairs at 9:00 pacific on cnbc, sue. >> i'm sure that's fabulous. brian does wonderful work, but that's disturbing. still ahead, it's the stock story of the day. facebook shares tanking below the ipo price. now down 9%. what it means for small investors, nasdaq and lead underwriter morgan stanley. plus, gold and other metals prices getting ready to close today and commodities have been very actively trading. we're going to head live to the nymex and get an update next. i'm here to unleash my inner cowboy. instead i got heartburn. [ horse neighs ] hold up partner. prilosec isn't for fast relief. try alka-seltzer. it kills heartburn fast. yeehaw! in every way, shape, and form. it's my dream vehicle. on a day to day basis, i am not using gas.
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welcome back to "power lunch." equities are strong today. not so much the metals markets. gold sitting near lows for the year. prices are closing right now. and sharon epperson is here to track the action from the nymex for us. hi, sharon. >> hi. sue, basically flat going into the close right now. 1588 an ounce. we had seen prices about a buck shy of that $1600 level. keep in mind we've seen a great deal of volatility and a great deal of long liquidation in the last week and then a rally going into the weekend on thursday and friday with the biggest one-day gain we'd seen in gold all
yearlong. we're also looking at what is happened in terms of what we've seen in terms of gold prices so far this year. and we're slightly positive on the year for gold futures and for the gld, but the holdings in gold etfs remain near their all-time peeks. keep in mind we are looking at resilience traders say due to the gld holdings. keep your eye on the silver market as well. some traders say it's so severely oversold we could see a bounce to the $32 level. back to you. >> thank you very much, sharon. the city of chicago is almost shut down today unless you're a protester or police officer. the nato summit is underway. and protesters see it as an opportunity to make themselves heard on just about everything. yesterday police and protesters went toe-to-toe clashing and one officer was stabbed in the leg. phil lebeau is live in the city with broads shoulders on day two of the protests. phil, over to you. >> hi, sue. i'm out in front of the boeing headquarters here in chicago where about 200 nato protesters just wrapped up a rally, a
demonstration if you will, in front of boeing headquarters. while they were here they laid down on the street in front of the headquarters saying essentially shut down boeing. that's their goal. have boeing not work today. well, about 500 boeing employees have been told to stay home instead of coming here to the headquarters. they are working from home. about two dozen boeing employees here in the headquarters today. and generally speaking this is a very peaceful protest. a far different scene from what we saw yesterday. and you saw some of the video earlier. here it is again. an estimated 2,000 nato protesters clashing at various points with chicago police on sunday. the police arrested about 45 protesters and they report minor injuries aside from the police officer who was stabbed in the leg. from here, sue, the protesters are going to be marching to president obama's campaign headquarters. when they get there, we expect to see more demonstrations. but certainly we are not seeing what we saw yesterday where tle there were a couple times the
protesters were adamant about breaking through police lines. the police obviously pushing back. day two of the nato protests, you said people want to be heard. they have been heard. as for the business community, sue, a lot of people are staying home instead of coming down here. back to you. >> understandably so. understandably so. keep us posted, phil. we are keeping a close eye on facebook for you. shares dropping below the $38 ipo price set on friday. facebook founder, mark zuckerberg, has lost about $2 billion because of this decline. his stake worth roughly about $17 billion now. the nasdaq omx group says it will change its ipo procedures after a trading glitch delayed facebook's market debut on friday. shares downright now on the trading session 9% and change. kayla tausche is at the nasdaq. and bob pisani is here at the nyse. kayla, i'll start with you. what more do we know at this point? >> well, sue, i think investors are taking a wait and see approach at this point. they haven't come off the lows -- the shares have come off the lows today. but as far as whether there's a steady stable of buyers for this
stock, it doesn't really appear that there is. a lot of broker dealers telling their clients to just wait and see. that they don't need to be a hero at this point. a lot of investors who were thinking about getting into facebook stock at $38 aren't necessarily convinced to get in at the price right now with some banks saying their clients are calling and saying i don't know where to value this stock as far as whether it's a buy or not, is that $25? is that $30? at what point do we find a sweet spot for buying? the stock has found stability at $33.50, $34 a share. unclear where that's come from. engineered green shoe vehicles to support the stock but there is a level of buying at $33.50, $34. >> all right. bob pisani, you were saying last week -- >> i don't know if they're supporting the stock. they might be providing an orderly market on the way down. >> an orderly market decline. that's a very good point. you brought up the fact last week that you wished facebook well, you hoped the ipo went well because it would give the
retail investor something to get excited about. >> yeah. >> that being said, the retail investor did buy the issue. and they've gotten burned so far if they bought it anywhere near the ipo price. >> number one, disappointing they got burned. number two, disappointing the process broke down there over at nasdaq. it's giving a black eye to the whether or not he will market process a little bit even if it was a very specific problem. what i think needs to happen now is they need to figure out more about what facebook might be worth. that's why you should be waiting for the earnings announcement. that will be out in a few weeks. and whether or not they can monetize what's going on in the mobile area. i know it's getting down to technical issues, not just emotional issues but it's 68 times current earnings. nothing else in that space is 68 times -- linkedin might be. that might be very close to it. i don't know if it's worth it at this point. >> thank you both. appreciate it. we'll continue to follow it. ty, back to you. >> sue, thank you very much. david faber's with me now. let's talk more about the
mets -- no, facebook. >> they won finally. >> they won finally. are we overthinking this, over knit picking what has gone on, or are there really things got screwed up badly here? >> i think it's a little of both. we are probably -- we've been covering it nonstop as you know and every tick, this is a company that has great growth, great margins. and we'll see. it may take the next quarter to sort of get people to focus once again on the fundamentals. what went on on friday certainly hit the stock psychologically in terms of the nasdaq and the inability to confirm your orders whether they be buy or sell and people not knowing until late in the day where they stood. so backing away. and then watching it break syndicate bid, watching it trade well below the $38 the stock was issued at certainly is of some importance, particularly for retail who have not been a great part of this market for quite some time. people come in, they want to get filled on an order. they do. they get more than they might have anticipated and watch the
stock go down. a lot of the selling today is retail. >> let's talk a little about nasdaq and then move to morgan stanley. nasdaq, lasting damage there? >> possibly. possibly. you know, there's a number of things nasdaq have made missteps on. i covered closely the failed bid for the new york stock exchange, which many people said was an antitrust nonstarter. >> from the start. >> from the start. and it was. but they didn't admit it. we'll see what the long-term damage is. short-term there is some liability issues here. we'll see how that's resolved. certainly reputationly it doesn't help. >> how about morgan stanley? >> probably less so in terms of a long-term hit. >> how would you grade their performance? their pricing? how they kept upping the number of shares they were going to bring to market? did they judge it right? did they misjudge it? >> if you're a selling shareholder, you're not unhappy with the price. >> no. >> you got to get out particularly some of the venture funds sold a lot of their stock, a large percentage. if you're mark zuckerberg, you sold some but raised money to
then cover taxes. but behind it you have more to watch the stox get broken as it has. a broken stock like this may take a while to regain momentum and regain that price it came at, if in fact it does, we'll see. long-term for morgan stanley, this is not something of the like that we watch at jpmorgan where there's real questions about a franchise that so many people believed in terms of risk taking was always doing the right thing. this will take some time. and it will hit the ipo market to a certain extent at least in certain confidence. >> david faber, facebook for 30. >> is that where you're getting it? >> no. >> we've got a lot there. we'll see how the stock trades today. >> you're fast. >> morgan stanley, they're a head equity trader. i'm sure they have tricks up their sleeves. yet to see. >> thanks. our facebook coverage continues on cnbc. coming up on "street signs," what role high speed trading on wall street played in the ipo debacle. sue. >> ty, you know we're having a pretty good day on the new york stock exchange and on the nasdaq. bob pisani's still with me here
to talk about that. you know, the china news was a little bit better than expected. but we've got a big slate of earnings this week. >> there's also an expectation there's a big eu summit, sort of an informal summit, and they're expecting proposals. the italians might be bringing something for deposit insurance of some kind. talk about infrastructure projects. eu can get blind. i think we have an oversold bounce today. notice that energy is up. all of a sudden the energy stocks, which have been the worst performers are to the upside. these stocks beaten up all of them badly. enp, refiners, tech is up. a day when apple is the biggest percentage gainer for most of the tech stocks, that's also a good day. so you've got energy and tech that are big movers here. >> financials though? >> can't get anything going. >> can't get any traction. >> jpmorgan's been trading like dead water. >> but there's a story behind that. >> yes. but jpmorgan's down but the
other financials are dead as well. there's been no energy for the last two weeks. >> volume? >> volume was heavy the last two weeks. today it's below what it was the last week. we have been doing 4.5 billion shares last week, that's way above normal. 3.8, 3.9, that's typical. >> earnings expectations are pretty good with what i've heard with a couple exceptions. >> it's a few retailers coming in this week. i don't think it's going to change overall earnings. we're up about 7%. >> all right. thanks, bob. see you later. seema mody is at the nasdaq where bob mentioned apple is a big mover. >> clearly not all investor focus is on facebook. today shares of apple are rallying. traders saying it has to do perhaps selling out of fb and buying into shares of apple. another tech heavyweight fueling nasdaq is google. said to mobilize the deal. getting google that stronger
foothold in the smartphone market. bottom line tech heavyweights are leading the nasdaq higher. tyler, back to you. >> seema, thank you very much. let's look at yields on the 10-year note among other bonds. as you see there, those yields moving up just a little bit because those are indicating the change in yield to 1.72%. but all of the other treasuries there, the 2-year, the t-bill, the 5-year the yields declining a bit and there's the 30-year at 2.79%. jeff kilburg, what's the 10-year telling you, if anything today and over the past couple days? >> well, ty, like you said, we're seeing equities bounce. we're seeing a supply in the treasury auctions this week, but no doubt about it we are seeing these yields hunker down here the 1.67 that was a level we tested last september 23rd, actually an old 1945 low. i think we're going after it. it's a technical trade from here on out. see people reposition once we violate that because at the end of the day, ty, we are seeing the safe haven trade continue to heat up. >> all right.
jeff kilburg, thanks very much. sue. >> it's headline time, ty. let's recap the other big headlines that are driving today's session. diversified manufacturer eaton buying cooper industries. the cash and stock deal worth about $11.8 billion. shares of eaton have been on the move in today's trading session. last trade there is up on the trading day by about 0.6%. smith & wesson expecting sales of about $129 million. shares are trading on the upside right now by better than 3%, almost 4%. and campbell's soup profit falling 5% for its third quarter. the company's soup sales struggling despite spending more on marketing. shares right now deeply in the red by about 3%. up next on "power lunch," paying ceos based on their performance. not such a bad idea for shareholders, perhaps. we'll show you who's raking in millions and boosting their stock price at the same time on
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they make you a trading assassin. trade architect. td ameritrade's empowering, web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. coming up on "street signs" at the top of the hour, another turn in the facebook fiasco. we debate the role how frequency traders may have played in the new stock's rough ride. and is facebook's pain apple's gain? and jpmorgan down six of the last seven trading days. how much lower can it go? back to sue and tyler on "power lunch." see you top of the hour. >> actually, mandy, i'm going to take it real quick before i give it back to them. not because i want the attention. i want to look at a stock. yoku, chinese internet television of course, they are up 11%. they are merging -- i won't give you the details.
that company had a loss, better than expected and giving yoku the bounce. it's recouping some losses from last week. ty, to you. "the wall street journal" had a great story this morning about ceo compensation and stock prices in connection with a study that the journal did with the hay group. they looked at ceos, their compensation and the company's stock price. a few notables, ones that might be sort of underpaid. begin with one oaks john gibson. he makes about $6.6 million a year. the stock up 61% in 2011. 50% over the past three years. $6.6 million compared with an average ceo in that survey of about $10 million. he's a bargain. howard levine ceo of family dollar makes $4.6 million a year. he can buy anything at family dollar. he can buy the whole inventory. up 20% in 2011.
three-year stock price increase 31%. that's the good list. now on the downside, citi group's vikram pandit, his salary $43 million. the stock down 44% in 2011. down 27% over three years. wall of shame for mr. cramer? i don't know, sue. >> it could be. could very well be. the who's who of the media world is meeting to disdusz what's ahead for their industry. discovery communications up more than 10% this year made a big bet on oprah. is it paying off? julia boorstin's speaking with discovery's ceo at the big cable show in boston. hi, julia. >> hi, sue. well, discovery's proving that content is king with 147 networks in 209 countries. ratings in the u.s. were up 6% last quarter on hit channels like investigation discovery, tlc and animal planet. this while overall cable ratings
were flat and broadcast ratings declined. with strong international subscription and advertising growth, discovery's weak spot has been its high profile investment in oprah winfrey's own. that's where discovery invested over $300 million since 2008. but ceo tells me it will break even in the second half of the year. everyone just needs to give him a little bit more time. >> there's a line of distributors that want to pay for our content. so what we've done is created a new window of content that's 18 months and older. >> what david zaslav, we had the wrong satellite but there he was talking about netflix and streamistrea streaming video not cutting into ratings yet. they're actually being able to take that as additional revenue stream and really cash-in. let's play this here where he's talking about own and where they're getting that business
under control. okay. we didn't have that sound bite there. but zaslav does say they've gotten the business under control and people just need more time. they've managed to keep the costs down, means now they're just investing in the content. and that's really going to allow them to have it all pay off by the second half of this year. he was also upbeat about the advertising business saying results look strong. they are bullish about advertising moving forward. you can find my entire interview with zaslav on my blog. sue, back over to you. >> julia, thank you. let's head to jeff. so, jeff, if you're to play the media space, would it be discovery or something else? >> well, sue, i think that was a great interview with julia. and i think discovery they have the best content out there. intellectual content. they spend a lot of money on their content. now we need to see them translate into advertising dollars. and i think they're going to. i think you can get in here on discovery. also i like viacom. they got beat up pretty bad and
missed earnings. market sentiment last week came down here. we're going to see translation into also content, but we'll see how it all works out. right now i think both of those are great plays as we site. back to you, ty. >> all right. jeff, thanks. up next, facebook shares sliding today. so will there be a lawsuit against the nasdaq? and can the retail investor, the small guy, ever catch a break on these kinds of offerings? and call it the parking space for the 1%. you won't believe how much it is going for. you got to stick around for this. we'll tell you. i'm freaking out man. why? i thought jill was your soul mate. no, no it's her dad. the general's your soul mate? dude what? no, no, no. he's, he's on my back about providing for his little girl. hey don't worry. e-trade's got a totally new investing dashboard. everything is on one page, your investments, quotes, research...
it is power rundown time. first up we're going to talk a bit more about facebook. the shares well below the ipo price. this was supposed to get retail investors enthused back in the game. so bob pisani, jane wells, can main street ever beat wall street? what say you, jane? >> you know, this may surprise you, i think this is one time when actually retail investors lucked out because so many of them couldn't get in on friday. and that turned out to be a good thing, wasn't it? i mean, now the stock is falling and everybody's saying maybe retail investors shouldn't have bought the hype. that's good advice if you were
never able to clear your orders on friday. >> bob? >> if you believe they're going to find the secret sauce to monetize all this information they have -- and i said this last week, go ahead and buy it. it doesn't matter whether it's $30, $40 or $50, that price will go up. if you're skeptical like i am, good reason to hold back. >> go ahead, jane. >> zuckerberg's at $17 billion. that's $2 billion less that california could collect income taxes on. i'm bummed to see that. >> yeah. and he has to go home tonight and explain to his new wife why they are worth $2 billion less today than they were yesterday. i think the answer here is we all knew that all of the big hitters like field, goldman and others were selling. they knew something all along here. next, delivering the commencement speech at boston university over the weekend, google's eric schmidt. he had this advice, drop the phone, step away from the computer and for pete's sakes, don't hit the like button. sound advice, he says take an hour off a day.
don't get too hooked on your technology. bob? >> i agree completely with all of those sentiments. i can't believe he said that. he's one of the least likely people i would have thought to said something like that. here's my advice, take one hour a day and take a search engine that isn't tracking you all the time. >> there's a little bit of a shot back at google because he was really taking some veiled shots or not so veiled like don't hit the like button, take an hour a day to turn off your devices and so forth, jane. >> i agree. i mean, look, i don't hang out on google plus. maybe he would think differently if we all did. this is bwhat i carry around in my purse. this is a symptom of a problem. and i think we all need to work on old fashioned communication just to keep those skills up unless we come to a point where we don't need those skills anymore. >> you're well on your way to a cure by admitting it.
let's move onto a parking space. manhattan's first million-dollar parking spot hitting the market complete with its own deed, sales contract and a monthly maintenance fee. so a million doesn't get it all. you have to pay a monthly fee. in case you're wondering, it costs about six times more than the average single family home in this country. it's actually a garage in what is intended to be an upscale brownstone. jane, could that be worth it ever? >> i mean, is it that hard to get a parking spot in new york? this makes no sense to me. by the way, it hasn't sold yet. so we'll see what the market will bear. for me, i'd rather go buy a house with an actual garage for $750,000 and still have a quarter million left to buy a ferrari. >> 12 feet wide, 20 feet wide and 15 feet high. that's my apartment. my apartment is a parking spot? i've been living in this apartment five years and haven't told me i'm living in a parking spot?
if it was two feet longer, we could open a shake shack in the middle of it. go to commercial. >> yeah. go park in the garage. pay $400 or $500 a month. it will be fine. thanks, guys. coming up, did facebook investors get a warning sign last week when gm decided to pull its advertisements? we'll discuss that when we return in two. there'll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom. and you? well, you're the chief life officer. you just need the right professional to help you take charge. ♪ [ engine turns over ] [ male announcer ] we began with the rx. [ tires squeal ] then we turned the page, creating the rx hybrid. ♪ now we've turned the page again
welcome back to "power lunch." we want to get you up to date on the markets, which are in rally mode today. it's a strong day on the market with the dow jones industrial average just below a 100-point gain on the trading session. the nasdaq is up two full percentage points on the session led primarily by apple, which is up 4.5% now. s&p 500, we're at a one-month high on the s&p. we're above the 1300 mark. and we're good for about 1.75% move to the upside there. gold going in the opposite direction off $3 at the close. and crude west texas intermediate up better than 1%, almost a full buck on the day. still, the story stock of the day is facebook, which is down better than 9% now. seems to be stabilizing a little bit. and its traded last at $34.76. looks like it's going to be a rough trading afternoon for that one, ty. >> facebook down,