tv Power Lunch CNBC March 14, 2013 1:00pm-2:00pm EDT
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earlier in the show we asked you to weigh in on our ge debate. we have tallied the results and you said, drum roll please, that our bull won the debate on general electric. all right. that means she gets to do the final trade for us. >> i was going to pick national oil, but don't forget the stress test tonight. if suntrust is weak tonight, buy it. >> don't look now. but lululemon is back to being a shot stock. >> that visual is amazing.
>> emc. we bought the name today after some very positive news. >> love emc and storage player c-gait stx. >> all right. that does it for us. power lunch starts right now. >> halftime is over. "power lunch" and the second half of the trading day starts right now. >> and welcome to "power len ee" what a streak the market has had. ten straight updays as not happened since 1996. one analyst, a key analyst changing his tune on beaten down jc penney. is he calling a bottom? we will tell you why. we have been seeing a lot of much better housing numbers. but there is a wave of foreclosures that may swamp
homeowners from sea to shining sea. hi, simon. >> good afternoon to you. we're up 62 points on the dough. so well on its way to a tenth straight positive close. this would be the eighth straight record breaking close for the dow. that is unprecedented. year to date, the index is up an astounding 10.7%. the dow is also on track for its best quarter of the year since 1998. a lot of stats there. since 1950, there have only been 12 times when the douw has finished the first quarter 8% or more.
-- now as far as the s&p, the broader index, we are very close now to the one-time record close of 1565. the inter-day record is 1566. both of those numbers are within striking distance of where we are trading now. the s&p is up. that is a bull market. let's get to bob for all the action today. >> i hope you got all those stats. the important thing is it's the s&p that everybody is watching today. it's the index washed by professionals. but we hit an historic high of 1565 and we could make that by the close today. we got what looked like a risk on day. there is a bit of a problem using that phrase today.
coal stocks are on the upside. there is a strange divergence in the marketplace today. look at the laggers today. you have steal stocks lagging behind. it's not everything going up at once all the time. this is part of the fact that china is diverging and the u.s. has been moving up. i also want to note that bond etfs are down again today. long term treasuries is corporate bonds. we have had eight down days and only two up days. >> we have breaking news in chicago. a big auction. >> 29 year eleven month.
we are adding to this. the fed was purchasing back on a buy back yesterday. ult malt yield in this auction, 3.2, or in layman's terms, a whisker under three and a quarter. it just didn't go very well. the wi was flip-flopping but it looked like it was trading 3.23. i give this auction a d plus. the lowest level since august. indirects were a little better. >> thank you very much for that. let's bring in ken any, the director of securities. what do you think about that? what does that talk about where we are? >> it does tell us that we will have to keep a very close watch on rates as bob said before, we
have seen the bond funds for days now. and everybody is talking about whether the fed might step away. i don't think that's the case. it is almost like selling them. that means the treasury is going pay him. >> we're getting good data. it was a good employment. you would expect bond yields to rise. >> you would expect the market to pierce new highs. the important number and you made the clarification. the interday high is 1566. if it closes below 1564, that will be very important. >> it's very difficult to drag you guys into a celebration frame of mind. i'm not sure if after 45 we're all approaching curmudgeon
status. >> i would approach curmudgeon status. there is an aura of inevidentability about it. >> it is. it's almost delet's get it over with and done. everybody is just expecting it. >> tough resistance once we get into that. thank you. sue, back to you. >> and you will never be a curmudgeon, simon. trust me. today is a huge day for analyst calls. we are diving right in here on power lunch. jeff is at the cme. you ready to go? >> let's do it. guess what? they have a buy on the stock. sheer what they say. in our opinion, the risk reward
profile is attractive. jc penney has had it. >> it's a bold call. a trainer's dream. they really focus on the cash position. in the event they have an arm gadden situation. they see $11 million. but this is a story about ron johnson. he is a walking timex commercial. >> let's move on. upgrading. coca-cola saying that head winds are priced in. let's take a look at how the stock has been doing. it has been flat, pardon the pun. what do you think? >> i don't love this.
i do like coca-cola. it has been lagging compared to pepsi. but look at coca-cola. it's a great story. it outfields the 30 year bond. i really like the point but i want to look at the 100 day moving average way before you have a coke and a smile. >> let's move on to jp morgan, noting that proprietary analysis. what do you think? >> i afwreechlt you are seeing this 190 times for amazon. amazing. the focus is has it gone too far too fast? look at the kindle, very ambiguous numbers. right now, sue, i think amazon, it is going to come back here.
>> sue, we have some breaking news. a month after a carnival cruise had to be tugged to emergency port, the company has another problem on its hands. the carnival dream has lost power. but this time, thankfully, the ship is docked. we will monitor the situation for you. it's more to do with pricing, really, for the cruise line ships at the moment. take a look at the shares so far this year. you will see they are down about 4%. february was the time of the triumph disaster. >> we have breaking news on the west coast. >> that's right. the mother company is
maintaining control of aeg. the president will be leaving the company. they say this is by mutual agreement. aeg has been on the auction block and drawn interest by a number of different players. more recently they were talking about a price tag of about $7 billion. simon that is big news that the president is stepping down. thank you. >> more big news. we have clearly had a big one on the markets. perhaps that's why a major shareholder is getting out of it. plans to liquidate its entire position. the stock is up more than 20% so far this year. right now you can see $10.99 is
where we traded on e trade. >> simon, who's the top dog? jp morgan is. bringing in just over $24 billion. that's according to a study in the industry analytics firm coalition. goldman sachs, bank of america, citi, and deutsche bank. all on the upside with some of them close to 1% and 1 and 2/3. goldman and city up 20%. deutsche has been flat. >> the big banks are indeed back on the agenda in washington today. which are too big to fail? amen is live for us in washington. >> reporter: representatives of the treasury and the oversite
council, those folks coming under a little bit of fire today from capitol hill republicans who are concerned about transparency and how efficient this whole dodd frank process has really been. >> fewer than half of the mandated rules have been finalized. the counter derivatives regulation. the mortgage rule and the definition of significant non-bank financial companies. >> one thing is the gao report that criticizes the new regulatory body saying that the deliberation is limited and that they should keep records of closed door sessions and annual reports don't set time frames for actions. so bottom line is they would
like the fsoc to be less like a secret cardinal conclave and a little more like a government body on capitol hill. >> we should name at least one of them francis. thank you very much for the view there from washington. >> there's simon. sand ridge energy is dropping today. the company agreed to give tpg four seats on the board. they have been pushing to oust the ceo and entire board. worried how the company's oil and gas feels will be. the stock is down some 3%. back to you. >> meanwhile, jp morgan's top executives are getting ready to be grilled on capitol hill over
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>> we don't know a heck of a lot at her personally. we know that her office took part and engineered this disastrous trade that lost the bank more than $6 million. we don't know how much more than that. it will be interesting to hear what she has to say for herself in terms of how she defends her office and risks decisions that she made or having a serious role in this. >> this was a rare, al be it large. she was incredibly successful and had the full confidence. this is a rare fall from grace
for her. >> i am told by people that knew her privately that she was well respected. she held this roll from about 2007 until may. i'm sure she is looking to resolve the inquiries. yes, you know, somebody who managed an enormous portfolio whose job was to hedge the bank's overall exposure and managed a large pool of billions of dollars in cash. >> she had cheered them through the financial crisis quite attemptly. >> i think that's also a credit to jamie doimd. but yes, absolutely. they knave gaited the 2008 and 2007 crises so well that they were the ones who salvaged banks that were failing, as you know. this is kind of a rare misstep
for them. lit be interesting to see them on the hot seat. >> can't wait. simon, over to you. >> it's time for the power run down. topic number one. congress pushing back against a move to allow small knives on commercial planes. the head of the tsa testifying on capitol hill today and earlier this week, representatives introduced a bill to overturn the policy. i imagine you carry a knife. i think that while this has a lot of symbolish value to people because they used ray zor blades on 9/11 we now lock the cockpit doors. you will not ever succeed again
at hijacking a plane with a knife. >> my cousin does not think a little knife like this is going to be that big of a deal. he is more concerned with people being able to swing golf clubs. >> get some slip-on loafers. >> you know it now. it's been 12 years. >> we're going to leave it there. we will be back in a minute. the power run down will roll on after a minute. somebody just bought one million new blackberries, too. and don't miss the interview at the 4:00 hour eastern. this is power lunch. ♪
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>> we're back with more power run down. topic two, someone placed an order for 1 million blackberry 10 smart phones. my fear is that it's our parent company, comcast. >> i think it's jc penney. the question to me is, is it the z10? i could see them buying the q10, because it has the physical keyboard. i think it may be wireless
carri carriers. maybe it's steve jobs. >> i think it's apple. they want to keep the competition alive so they don't get tracked down for manager a monopoly in the phone world. >> the samsung is a hot product. i was on the subway and i looked around, everybody had samsungs. >> the blackberry house was a little in fear. >> i thought the problem with the blackberry house at south by southwest is that it started too late and never really caught up? >> the whole thing was a bit of a damp squirt this year but let's leave it there. to keep up with demand for the restaurant chain sold about a million of them a year. >> si.
if they really got 15,000 jobs, that sounds a little dorito doritos locos to me. if yum can turn around kfc in china if they can turn around taco bell in the united states, this is fantastic. >> bringing people what they really want actually turns out to be a good business move. >> the power of innovation. saving the day today less than 24 hours after the tv show's creator e-mailed fans to solicit do nations for a movie more than $2 million supported. is this a new way to finance films on the west coast? >> it is. this is just a continuing trend. kristen bell is fantastic but she is no longer a teenager. when you substitute one master for another, you're still serving a master. and what happens when those new
masters aren't happy? i'm waiting for the crowd funding lawsuits to start. >> i'm just very, very sad that this wasn't around when they killed "my so-called life" with claire danes. >> but then we wouldn't have had homeland. better show. >> very true. we could bring her back. >> my so-called homeland. >> jane and john, thank you both. sue? >> talk about awkward. when la dodgers owner separated from his wife, she was the ceo of the team. until he fired her. no surprise that 130 million dollars divorce was the costliest settlement. but now we have the woman who may change prenups forever. revolutionizing an industry can be a tough act to follow,
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welcome back to power lunch. gold set to close fractionally higher on the day. >> gold has actually cranked its way higher day by day this month looking to stand up to what has been a five month losing streak. interestingly, even as we are looking at the idea of the economy being better, we are still worried about china and copper is lagging on the month. >> we are up 52 points on the dow. if we hold this level and close
at it, that will be a ten-day winning streak for the dow. that's the best it has done since 1996. here are other streaks. wayne gretzky, call rip kin jr., and caesar chavez won 87 straight boxing matches. >> ten percent on the year. the important thing is the s&p. 1565 would be the closing high and that would be the big
number. as the s&p has been creeping up, guess what has been creeping down? we're at the new lows on the volatility index. that is .55. that is a six-year low. let's not get too crazy about it. as we're marching forward, volatility goes down. men's warehouse look at that big move there. e-trade. citadel owned about 9%. they are exiting etrade at an 18 month high.
>> okay. thank you very much. let's check on the nasdaq. >> take a look at the nasdaq. we're up on the day. semi conductor stocks continue to be a good thing. the headline on wireless infrastructure is the reason we are seeing shares get a bit of action. so the stock down on the day. take a look at google after hitting multiple several highs, breaking through key resistance levels. we're seeing the stock move lower in today's trade. that rotation of capital out of apple and into google, that trade is over. we are seeing apple shares higher today. btig did upgrade that to high.
>> the korean tech giant unveiling its latest gal laxcy hand set tonight. hi, john. >> samsung really needs thing things. brand building, software innovation and logistics. samsung's most recent high end phones both have these faces that are dominated by a large screen, and a back plate that peels off to reveal the battery. where should we expect to see more changes? the processor, the camera for things other than taking traditional pictures and nfc to share photos in video in new ways. samsung has got to get tens of millions of these out to the world quickly before you know who launches another iphone.
this is the. >> rick, these rates are fascinating at the moment. >> definitely fascinating. imagine how fascinating they would be if the market was left completely up to his own devices. even with the fed buy backs aggressive, this auction was not looking at the chart. you see it up real close to three.25. but it's the last auction.
big turn around. this happens at time. the spreeds continue. they are enamored with a little extra yield. simon, back to you. >> let's get a couple of other stock stories before they hit the break. the firm says a recent sell-off has been overdone. >> a flood of foreclosures may be on the way. she is live for us in washington.
>> and now foreclosures are leading to flare ups. bank repossessions which is the final stage when the bank takes back your home. they fell to a 65 month low. that according to realty track. but foreclosure starts, that is the first stage of foreclosure when the bank informs you it has started the process, they jumped 10%. that's after falling for three straight months. it is all being fuelled by states that have had new laws to protect homeowners or states that require a judge. these delayed foreclosures all during last year causing big backlogs but the banks are beginning to move again. foreclosure starts, that is the beginning of the process increased in 32 states and some of the states are incredible.
again the final stage. and bank owned propertyies all that supply will likely turn some local price gains that we have seen lately. >> the pre-up in may be changing forever if you thought your money was safe in marriage, think again. we have the woman behind a very big change. all stations come over to mission a for a final go.
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>> welcome back. breaking news right now. there is president obama as you can clearly see, he has been visiting the hill almost every day this week, trying to work out the budget impasse and the deals between republicans and democrats. he visited congressional leaders yesterday and today he is dealing with some of the senate leaders. we will continue to follow this story as the president moves into conference with some of the key senators. >> a deal is good for markets. >> tonight, 7:00 here in new york. blackberry gets a huge pre-order
if you had to choose, what would you buy? 39%, 7% say a different droid. 42% say no droid for me, i like my iphone. so among our audience, apple marginally wins against samsung. >> not by a big margin. that's going to be very interesting. one of my favorite entertainers, tony bennett once sang i left my heart in san francisco. after you take a look at the beautiful properties, you might be able to do that, too. the power house is one of the world's most beautiful and expensive cities today and that is san francisco. jeff is a top producer and partner with mcguire real estate. glad to have you with us. >> thank you. thank you for having me on. >> san francisco is one of my
favorite cities but it has always been pretty expensive. the average listing price is about $1.5 million. average sales price year to date is a bit over $1 million. currently there are about 640 active listings on the market. but for california? that's actually pretty low inventory. you have got fantastic listings for us. the listing price is $595,000 dollars. >> it was a two bedroom one bathhouse. close proximity to silicon valley. very nice tastefully re-done kitch kitchen. a two-car garage and close proximity to silicon valley.
>> i'm going to move over here. it was listed at $595,000. it sold for $781,000. the taxes, just over a little bit of $9,000. but it's only 1,000 square feet, which i find interesting. let's go to the second listing. it's located at 231 mullen. it's under contract right now. >> it's $959,000 is the asking price. there are certain things that i can't get into on the contract. in terms of descriptions, another beautifully done home. this is on the northern slope, which has sweeping views of san francisco. three bedrooms, two full baths and two half baths with two-car parking.
>> basically it was built in 1990. looks like it has been remodelled as well. there is not much to do in this house, is that correct? >> this house is completely move-in condition. the houses that are doing the best fall into that category. >> okay. let's go to our third listing and that is what we're calling the power house of the week. it's located at 751 ninth avenue. it sold for $1.45 million. tell us about the house. >> this is a two unit, two flats located in the richmond district. both units were vacant. and of course, parking. a huge advantage. and obviously as you can see, it went for considerably over the asking price. >> the asking price was 1.295. it sold for 1.450.
>> i would say it's a desirable district. that's what makes our city so special. each one of the neighborhoods are unique. this one is closer to golden gate park. a lot of the ark tech ch ark -- architecture is edwardian style. >> is that common among the properties that we saw? are you starting to see very stiff competition? >> actually, if the property is preparederd properly and priced correctly, we will see multiple offers. >> how much is the interest rate differential factoring in? if the rate goes up does the market cool off? >> it gets some people who might be on the fence a little more excited to move forward. >> thank you so much for showing
them to us. they are beautiful homes and you live in a beautiful part of the world. >> would you move there, sue? >> in a heartbeat. >> i was going to say exactly the same thing. >> i'm the one who moved from california back here. just about this time of year, san francisco looks pretty darn good. >> i get it. and a billionaire plans to tie the knot again with a prenuptual agreement costing him a big donation to charity if there was a break up. but not to his wife. the pre-nun might not be as ironclad as thought. a legal battle has many ceos and many millionaires running scared. stay with us.
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>> the richer you are, the more likely you are to have a pre-up in. >> two months after their wedding, a post-nup was asked to be signed. and oracle's ceo has no wife to share an island with. he surprised his first wife to be hours before the wedding. we presume there was a grace period before his next three brides. and michael douglas had an unusual clause. she receivers $2.8 million for
every year of marriage plus an extra $5 million if he cheated on her. promi -- three kids later he never made good on that promise. elizabeth joins us now to talk about that promise. there have been late developments in this case as of this morning? what has happened? >> i just found out this morning that my soon to be ex-husband is planning to appeal the decision and go to the highest courts for an appeal. >> it's been a long road for you. how do you feel about his move? >> i am confident with the help of my attorney that the judge in this case in the supreme court has found that the decision was based on fraud. it wasn't -- everyone says this
is an unprecedented case. >> ground-breaking is what they're calling it. >> however, it's a basic -- there was fraud in the contract. a lower court found it to be fraud. five judges after that. and the appellate division. i will leave knit the hands of my tourn. >> now that you have gone through the whole process, how do you feel about pre-nups overall? should people consider doing them? or given what you have gone through, what would you like to see happen? >> i think pre-nup, the general response is i don't trust you. men, mostly, because they are more financial wealthy in the case of presenting a pre-nup, they are protecting their assets
at the last minute and it's not have that happen to a young woman who may be naive, maybe too young not knowing what could happen. >> presented at least -- they should have at least six to eight months before a wedding. if they don't have that sufficient time it should not be accepted. >> tell me more about your business. you had several attorneys. one of the ways that you were able to persuade the court to rule in your favor was that you had done a lot of the ground work yourself.
prior to him, i did have three attorneys who ended up messing up my case. i was in a worse position then than i was at the end. i had to advocate for myself. i had to educate myself. what i developed after almost hitting rock bottom and putting myself in the hospital. the reason i started divorce prep experts is because i almost lost my life to divorce. it is a horrible feeling to have to go through these emotions. dealing with the courthouse, the courts and fighting your spouse at the same time. it's just too overwhelming. divorce prep experts empowers and protects people while they are going through the process. it's not just for women. so that they get the information while they're in the process. >> keep us posted as the case
develops. s it is being challenged now. >> thank you. and i hope that everyone looking for help, please call divorce prep experts.com. >> and finally here is to romance in the world of high-tech. it's an interesting one. >> simon. >> the more you have the easier it is to share, sue. just two hours to the closing bell. will the dough close -- we're up 48 points. if we can stay in positive territory don't miss two episodes of american greed.