Skip to main content

tv   Power Lunch  CNBC  March 15, 2013 1:00pm-2:00pm EDT

1:00 pm
1:01 pm
for current and former military members and their families. get advice from the people who share your values. for our free usaa retirement guide, call 877-242-usaa. stocks that you asked for on twitter. first up is pete, die bu, hold or sold? >> oversold. >> and oil as a commodity, joe? >> no, buy the equities. >> national oil, en nis. >> hold. >> final trades. around the horn. pete this is. >> the rail companies are out there and the guys building those cars that are going to be moving oil, trn. >> doc? >> southwest energy and hitting again for unusual activity. buying that. >> joey? >> quietly natural gas going
1:02 pm
higher and you want to own it. >> and soda stream had a great quarter and the stock is cheap. >> all right. looking for more investment ideas? join john and pete and cramer at the june conference, and go to the street for more information. scotty, thank you very much. this right here is a screen that any woman would want to be affiliated with, whale in washington, right? i am telling you that washington and the whale, the senators take on many of the people involved with jpmorgan's record-trading loss, and this is the face of exuberance right here. irrational exuberance. remember, he coined that phrase in 1996, just the last ten-day win streak for equities and the former fed chief alan greenspan says, no way, jose, not this
1:03 pm
time, and we will hear from the man himself on the monetary policy and the splitting up of the banks, and are they still too big to fail? do you want to go on a cruise? maybe not. what is going on with carnival cruise? after last month's debacle, another cruise ship having trouble. and now over to sue. >> hai, ty. >> so wayne grets ski had a 51 game point streak, and joe dimaggio with 56 game hitting streak, and cal rip penn with 2,632 consecutive games, but the dow won't have that after 17 straight up days, and after eight record day closings, we are down by 37 points, but the dow is still up 10% year to date and as we approach the end of q1, the statisticians tell us that we have never had a down
1:04 pm
year when the dow jones industrial average was up 8% in q1 and we will have more markets in a minute. but first as ty mentioned at the first, the senate panel is issuing a scathing report of jpmorgan's $6 billion trading loss last year saying that the bank executives ignored growing risks and hid losses from the inv investors and the federal regulators and some of the top executives are still on the hill right now facing the heat. among them is former chief investment officer ina drew and she is there in the first public appearance since that scandal. our kate kelly is live on the hill, and i was struck, kate, by how much finger pointing by ms. drew and others in the testimony this morning and the q&a session. >> yes, sue. it is a real finger pointing session all of the way around. senator carl lechb is up there by himself at this point. he was originally with john mccain and one other, and they have left so it is essentially a one-man cross-examination of a number of witnesses current and
1:05 pm
former jpmorgan executives, and there is a lot of buck passing going on and a lot of things to the effect of i said what i knew to be true at the time, be but in hindsight, i was wrong. listen to doug bronstein who was at the wheel of the scandal regarding such a thing in regards to his comments on an april 13th earnings call last year. >> senator, the obligation on the call and the only thing i was thinking of was reporting based on what i knew at the time, the information as accura accurately as i could. in hindsight, senator, the positions and the portfolio did not act as a hedge. it changed dramatically. we misunderstood the risks. we misunderstood the complication in it. we ultimately misunderstood what the estimated performance of it would be, so in hindsight we got that wrong. >> so tyler, you hear brawnstein
1:06 pm
making a crucial acknowledgment there that essentially the trades were not a hedge as they had been purported to be and grew into something else. jpmorgan executives by braunstein's accounting didn't know what they were in the thick of it until they were way into the thick of it. more testimony this afternoon. >> thank you, kate kelly. and sue just said it, we have never had a losing year if the dow has had a big first quarter up 8% or more. and we are talking about some similar signs for big cap stocks now with jackie deangelis, and we will be joined to talk about standout in techs at the nasdaq which would be stronger if but for apple and however, you get to go first. >> that is right, tyler. despite the losses today, we are poised for one of the best first quarters than we have seen in a long time and up 10% this quarter which means it is shaping up to be one of the best years that we have seen since 1998. strong first quarter performance
1:07 pm
is key in years past, because it is an indication that the index could see strong gains for the year. there have been 12 other times since 1950 that the dow was up more than 8% in the first quarter, and in each of those years the dow managed to finish not only positive for the year, 100% of the time, but in 10 of the 12 cases, the dow finished with double digit gains. which stocks are driving this quarter's performance, nearly one-third of the index is trading at 52-week highs yesterday with ibm, walt disney, johnson and johnson and utx, and chevron and travelers gm and they were all driving new records. boeing was leading the way higher, and followed by hp and bank of america and ibm, and the bottom line is everybody is figuring where the stocks will go at this point, and room for correction or more roomp to run? if the first quarter is any indication, the dow may go to 10,000, but in terms of how we
1:08 pm
get there may be different in the quarterly performance. >> in the years of 8%-plus growth, it is just in the other years the appetizer portion in 1954 began with 8% gain and ended with 45%. >> exactly. and in terms of how the quarters shape up and what we will see for the rest of the year, and whether we blew it all out here in the first quarter is the big question. >> one more week to find out, ja jackie, well, it is two more and the ides of march and not a good day for caesar. but down to you, where tech is falling. >> yes, tech is the worst performing up, 4% versus the s&p 500's 9% gain year to date, and that is mostly because of apple which is down 17%, and has the largest waiting on the s&p 500 tech index, but the world of technology is more than apple as you know, tyler, because many subsectors within tech are delivering e stellar returns. electronic manufacturers and
1:09 pm
consulting and internet names are outperforming the s&p 500, and semiconductor equipment being the standout, and things are looking good for the chip sector thanks to the lean supply chain inventories and the biggest winners are semiconductor manufacturing equipment, like lam research, and kla and applied materials. and other stocks after gaining 27% this year, it is trading on a discount to the, so i and demand for compute security is at an all-time high, and security names like symantec have been on fire up 30%. so some investors are making way, but you have to do some digging to understand where. sue? >> well, they are celebrating st. patrick's day down here on the floor of the new york stock exchange, and the traditional bag piper who also happens to be a member down here on the nyse is playing some of the traditional songs as the traders
1:10 pm
start to celebrate st. patrick's day. i will walk right back here and they will follow us, and we will talk about the big names sounding off on "squawk box" on the markets this week. and when they speak, the world listens. and bill miller of legg mason who once beat the s&p 50015 years in a row says that the market is cheap and has room to run. >> there is ooh a lot more to go. and the stocks are cheap relative to the bonds and cheap to the absolute levels that you would expect in the normalized bonds and if the 10-year treasuries goes to 4% or 5% where they should be in a normalized world, we had 10% treasuries in a bull market, and so that is not an impediment to the stocks. >> what does the pooh maestro think? rational exuberance of the 1990s back? former fed chief alan greenspan on "squawk" this morning.
1:11 pm
>> by calculation, we are significantly undervalue and the reason that the stock market has not been significantly higher is that there are other factors compressing it lower, but irrational exuberance is the last term i would use to characterize what is going on at the moment. >> because we know that tlas time that he used that phrase what happened? let's bring in bob pisani, and bob polcari, and i find mr. greenspan's comments reassuring, but when the market is undervalued don't use the words irrational exuberance and that makes me nervous. right, kenny? >> well, we are using alan greenspan to talk about the market. i am sure he appreciates it. >> well, it is a dramatic move upwards, but it is not a crash, but consolidation. >> we are down 30 points today, but it does not count. >> it does not count and talking about a 4% or 5% pullback in
1:12 pm
consolidation. >> we had it in february in the 3% decline in february. and that is the pullback right now. >> and that took a day and a half, right? >> yes, here is the thing, up 11% on the year so far and tyler hit it right if we end the year up 11%, and would you be disappointed if we ended the year up 11%? >> i would be fine here. >> and that is -- >> i have the people who are pulling money and they feel like 11% is good, and they are banking the money elsewhere, because they are good for the clients now. >> the average hedge fund in the first three quarters of the year is up 4.9% which is half of the s&p and most of the big, and this is long term, and most of the hedge funds are underp underperforming and end of the quarter, you will see more performance. >> do you agree? >> yes, i agree, but what is going to happen, and after today's expiration, you have the count up, and next week a further pullup and then another thrust forward.
1:13 pm
>> ty, up to you. >> thank you, sue. we are keeping an eye on boeg and stock and the big news surrounding that company, new 52-week high, and there you see it up $1.50 alone and nearly 1.75%. and boeing expects to resume commercial flights of the 787 dreamliner within weeks and not months. the company's chief project engineer speaking in tokyo says that a new fix for the battery has many new safeguards built in to prevent the overheating of the lithium cells there. and now to housing, and ceos and government officials meeting to discuss the recovery in housing and head winds ahead. diana olick is covering the story for us in washington. high, diana. >> well, down here in new york city at the jpmorgan housing conference where they are talking about winding down fannie mae and freddie mac and take a look at how much the two mortgage giants are running the market. private capital is nowhere to be found, but what is interesting
1:14 pm
against the backdrop of the debate here today is that fannie mae last night filed with the fcc saying they will delay the 10k because they are trying to figure out how to cut the tax bill by using prior losses, because guess what, they are profitable today, and that savings would allow them to pay back the treasury over $60 billion and almost what they owe them entirely, and given that i asked former hud secretary martinez if we need to wind down fannie and freddie since they are profitable, and he said we do need to restructure, but something stunning to get the government out of the market, and he said that we need judges out of the foreclosure process. >> i think that the way that the 1,000-day wait for foreclosure is not fair to anybody in the system. i would say that a non-judicial system is the way to go, and the states who have a nonjudicial system have done it much more rapidly and better for the marketplace. so we are helping no one really when we retard the opportunity for a recovery, so in my view, a
1:15 pm
nonjudicial is the way to go and florida should move in that direction. >> and here in new york and new jersey where judges are a part of the process, it would take decades to get through the backlog of foreclosures here, and so interesting debate here, and a lot going on here in the sue? >> we will check it out, diana. and would you believe it another corn varnival cruise wi more problems. simon, what is going on? >> well, more importantly, carnival is cutting the full-year forecast, because it is having to cut the prices to keep the passengers on board and we will talk about that. >> yes, that is right, "power lunch" is back in 2:00. >> you can trust us, twitter l follower, because our account is now verified. from now on you will see the verified badge next to the user name at "power lunch." keep in touch, america. can yo
1:16 pm
1:17 pm
1:18 pm
what are the chances that carnival dealing with yet another problem on one of its cruise ships? the cardinal legend skipping a stop today because of propulsion problems that cut the speed. this is on the back of the company's latest earning reports and they are being affected, because the carnival shares are down 1.75%. and simon hobbs joining me and a string of bad luck it seems. >> yes, it is going ob and on the news flow, but what is interesting from the investor standpoint is that carnival is actually cutting the forecast in how much it believes that the
1:19 pm
fleet of 100 ships will make this year, and it is not so much the bad publicity this week over the carnival dream's inability to leave the port of st. martin forcing management to charter flights to bring the passengers home nor the fact that the carnival legend is skipping stops on the caribbean cruise because the engines are failing, but it is because of the triumph drifting for days in the gulf of mexico and crippled by the engine fire and complete with failing bathrooms forcing them to cut prices on future carnival-brand cruises to keep it buoyant through the all important booking season. and telling analysts on the conference call this morning, the passengers are spending less on board on extras, and europe's recession is hitting operations in spain and italy, but the brand is working on more effective advertising. >> they are making some modifications to the messaging and communications right now. i think that the issue of safety
1:20 pm
and on board the ships is more, less of a marketing issue, but it is more of a communications and public relations issue, and clearly, we have got advisers who are working with us on, on, you know, putting tout positive messages about the actions that we are going to be taking to strengthen these areas of the ships and to the improve further enhanced safety. >> what is remarkable about carnival as a stock is the resilience. it is a massive and a huge market capitalization. >> and not what i thought it was. >> and $28 billion and if you look at the chart year to date, it is down only 5%. it is well insured and keeps going and going. >> right. in terms of the passengers who continue to book, and it seems to me when we have talked to some of the passengers, there are some people who all they want to do is to do cruises and take advantage of the cut rate prices. >> yes, price sensitive and they said on the conference call,
1:21 pm
those most affected would be those virgin cruises, and those doing for it the last time. and if you look at the accidents that we have had and this is also amazing if you go back to the big accident in january of 2012, and the costa concordia on the italian coast, and 32 people actually died and one of the worst disasters ever, and still the stock has continued to gain up 8% year on year, and now the comparisons of course once you get into the second quarter year on year, easier, because they were so depressed this time last year. >> fascinating. simon, thank you so much as always. t tyler, up to you. >> all right, sue. thank you so much. and so who are the most pop ula zees in america? who employs like we know it is brian roberts of comcast and set that aside for a moment, but the former fed chairman alan greenspan says that too big the fail is not getting better, but it is getting worse. he says in some cases he prefers to break up the big banks. we will talk about that after
1:22 pm
the break. ♪ you know my heart burns for you... ♪ i'm up next, but now i'm singing the heartburn blues. hold on, prilosec isn't for fast relief. cue up alka-seltzer. it stops heartburn fast. ♪ oh what a relief it is! with fidelity's new options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long
1:23 pm
and i formed my toffee company through legalzoom. i never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. go to today and make your business dream a reality. at we put the law on your side. arrival. with hertz gold plus rewards, you skip the counters, the lines, and the paperwork. zap. it's our fastest and easiest way to get you into your car. it's just another way you'll be traveling at the speed of hertz.
1:24 pm
sales event has begun. ♪ featuring the powerful gs. ♪ just when you thought you had experienced performance a new ride comes along and changes everything. ♪ get great values on your favorite lexus models during the command performance sales event. this is the pursuit of perfection. welcome back to "power lunch," rick santelli here on the floor of the chicago mercantile exchange, and cme group, and look at this chart with the capacity utilization, and 79.6 and at five-year high, and energy gave it a turbo thrust, but normally it pushes stocks up, but not to dday.
1:25 pm
looking at the intraday, and opening up the chart for one year, the rates are down to one-week low and should we settle under 2%, but it is looking as though the market is turning, because some bulls are showing up. if you look at the dollar index, an indeed, it is down today as you see on the one-day chart, u but don't let that fool you. look at how it has behaved since the beginning of the year, it is still way up on the year, and big bounces in the pound and the euro taking the wind out of the sail of the dollar index. tyler, back to you. >> rick, thank you very much. the fed unveiling results into what it considers the most important banks and how much stress can they withstand? goldman sachs and jpmorgan have to submit revised dividends, and have to buyback stocks in the meantime. and four other banks received passing grades, but allied financial, and bb&t did not pass the muster. and this morning, alan greenspan on "squawk" said that too big to
1:26 pm
fail is still a problem. >> if push comes to shove, and there is no other way to eliminate the too big to fail problem which is getting worse not better, has not improved since the crisis began, i would be in favor of breaking up the banksch. >> he doesn't see that now, kay kayla towshi, but what about the comments there of too big to fail. >> well, he feels that capital is king, and load it up when they take losses they can plug it themselves and not at the behest of the taxpayer, and this is a good thing, but we actually talked with bill miller on legg mason on the sidelines of "squawk" and he said no, it did not help the 1920s or the great depression, and the banks had 15% to 20% capital buffers which is double what the banks have now, and it is because the consumer is overleverage d that
1:27 pm
brought back the crisis. >> and we have have highly indebted consumers right now, don't we? they have paired back some, but not enough. >> that is right. most of the crisis was due to the housing bubble, so that was not entirely bank driven and so it is interesting to see what is the source of some of the contention. >> housing and derivatives. thank you, kayla, very much. sue, down the you. >> thank you, ty. let's look at some of the other headlines. freeport-mcmoran says that their shares on copper have been rising steadily and up better than 2%. and retailer aeropostale is forecasting a loss with the need to cut prices. shares are down better than 7% right now. and new data from mpv says that the video game industries sales
1:28 pm
have drop d dropped 25% since f. thank you, sue. and bill miller, as kayla mentioned, one of the best stock pickers of all time throwing his weight behind groupon and we will tell you why he likes that stock which is one that a lot of people haven't. that is next on "power lunch." (music throughout) why turbo? trust us. it's just better to be in front. the sonata turbo. from hyundai.
1:29 pm
♪ here we are, me and you ♪ on the road ♪ and we know that it goes on and on ♪ [ female announcer ] you're the boss of your life. in charge of making memories and keeping promises. ask your financial professional how lincoln financial can help you take charge of your future. ♪ ♪ oh, oh, all the way ♪ oh, oh
1:30 pm
1:31 pm
the gold markets are closing right now and let's check on the prices, and sharon epperson is doing that with the action at the nymex. >> well, i was seeing if there was any chance to get to the 1,600 level, but near there, but not able to close above the key mark. we are up $2 or so for the gold price and $1592 an ounce. it is a positive week for gold and gold is in the upper range of the trading range all month and right around 1560 an ounce. and some traders say a bullish sign for the week ahead, but here we want to see a close below the 1,6$1,600 for any
1:32 pm
significant momentum for the gold market. and meanwhile barclays have been seeing liquid -- liquidations in the gold trading market, and though we have seen a little uptick in the holdings in the last day or so. >> thank you, sharon. on the day they are wearing the green down here on the floor of the new york stock exchange, we are not in the green on the new york stock exchange, and bob pisani is joining me. steady as she goes to the downside, but not expected. >> well, a lot of people are still expecting the dow to end positive today, and they believe it is never going to go down, and there is a lot of data on the bank stocks, and we have the issue s t issues on the capital return plans and the bank index is up 11% this year, and citigroup up 11%, and just in the month of march so a lot of what do we kn now? the banks with bb &t
1:33 pm
disappointment, but some of these stocks are parabolic, and i think it is time to take the profits and people are reasonable on it, because loft opeople are giving me pushback saying that once the yield curve steeps, it is going through the bank profits up dramatically, and this is the time to sell and maybe a minor pullback, but i am surprised how many bank bulls there are out there. and sue, by the way, big volume today on the quarterly rebalancing, and they will have it at the close here, and there's the bank index. look at the stocks. exxon, and at&t and pfizer will have stocks to sell at the close, because they are shinking the float through buyback and i will give you more details in the next half hour. look forward to that. a white house overview of the nation's economic progress is out today, and it is a heavy tone. here is the title. the recovery is gaining traction and jobs are on the rise and the housing is healing and corporate profits are at all-time highs and for the first time for year
1:34 pm
s we are buying more american cars and less foreign oil and yet there is work to be done, and here to break down the report is alan krueger, chairman of the ko council of economic advisers. welcome to "power lunch." there is more work to be done, and we all know that, but there are sizable improvements in the economy. >> well, that is right. we are doing a lot of healing. housing market is finally showing signs of turning around. we have had increases in home prices nationwide, and home construction and home sales are up, and we show in the report that we have worked off a lot of the excess nationwide from the bubble years. the excess construction that took place. we are starting from the low base, but it look like housing will now be a tailwind instead of a headwind and we added 48,000 construction jobs last month which is a positive development going forward. >> i know that the president feels this way certainly that more work needs to the be done on jobs, but do you feel that
1:35 pm
the moves that have been made in job growth are significant enough to satisfy main street, because if you look at the latest abc news poll, it shows a disconnect once again between the p president's progress on the economy and the way that main street feels about his progress on the economy. >> well, the president certainly is not satisfied. you know, he came to office, and we were losing over 800,000 jobs a month. the recession destroyed almost 9 million jobs. over the last 36 months we have added back 6.5 million private sector jobs moving in the right direction, but we want to build on that progress. that is why it is so important that we don't inflict wounds that washington doesn't slow down its progress, and that is why the president has been working so hard to replace the sequester with the more balanced approach, and the president wakes up everyday wanting to create more jobs for the u.s., and more opportunities for niyi
1:36 pm
middle-class and how to create decent wages. >> when asked about the sequester issue, 46% of the 1,100 respondents say that republicans in congress are responsible, but a full 33% say it is the president. should he have reached across the aisle earlier. i know this week, he is going to the hill, and talking to both republicans and democrats in both houses of congress. is it too late? >> no, it is never too late, but also, if you step back, and say how did this sequester come about, it is because the congress was playing russian roulette with the debt ceiling. it with was a solution which nobody thought would go into place as a way of raising the debt ceiling so we could take that risk off of the table. i think that one of the reasons why you are seeing the markets doing so well recently is because that tail risk has receded. it is important that congress raise the debt ceiling without drama when we reach that point again this summer. on the other hand, the president has tried as hard as he can to
1:37 pm
get congress to agree to a balanced approach to the fiscal problems and balanced approach that closes tax loopholes that smartly cut spending, and addressing the health care and entitlement problems, because that is the source of the deficit problems. i remember before christmas, we were negotiating with the congress, and speaker boehner tried plan b, and unfortunately, we could have addressed our problem problems at that point. >> right, rig. >> and now it looks like the se quester is going to be a slow grind on the economy. >> now back to the economic report which is weighty, but it is interesting nuggets for our viewers in here in particular and for lack of a better word the more made in america aspect of the report and you cite intel and cite walmart and a number of corporations bringing the manufacturing and the supply lines back to the united states. you also address the energy independence issue quite extensively, and which we
1:38 pm
mention ed ined in the introduc and those seem to be highlights that are not getting enough attention in this economy. >> well, i think that is right, and i'm glad you pointed it out. a number of businesses have told us that the u.s. is a great place to do business. they are bringing the production back. we are the most productive economy in the world at least compared to all of our competitors, and so i think that you will see the trend going forward and even though we are getting older which is another theme that we highlight, we are younger than most of the advanced world. we have the most innovative businesses and entrepreneurial businesses and you will see because of the resourcefulness in natural gas and businesses taking advantage of lower electricity prices, and high productivity and innovativeness that will create more jobs in the u.s. >> allan, thank you for spending time with us, and for the extra copy. appreciate it. >> my pleasure. >> and we have breaking news right now. up to scott cohen. >> blockbuster insider trading
1:39 pm
settlement and the amount is $600 million the largest ever with the s.e.c., but the group that is settling is cr intrinsic, a unit of srac capital which is a major insiding trading case, and matthew martoma has pleaded not guilty to criminal charges, but sac capital and intrinsic settling insider trading charges with the s.e.c. in what is the largest insider et settlement ever. and the s.e.c. says that we are happy to put this behind us, and those are the companies they were trading in, and the settlement is a substantial set to resolving all of the outstanding regulatory standard and allows the firm to move forward and we are committed to a first-place commitment to excellence woven into the firm. the ceo has never been
1:40 pm
implicated, but the probe is awfully close to him, but the firm now apparently settling the civil end of it with the securities and exchange commission, and in the cases against matthew martoma is continui continuing. >> that substantial step is a important phrase in there and obviously more on that as it becomes available. to follow on the discussion with mr. krueger a moment ago, is the economy back on track and joining us to react to the comments, and i wanted to say co-host of the daily show, but it is host of the daily ticker on yahoo! finance, and jon stewart who is the principle of the washington update. laur lauren, welcome. >> thank you. >> the chairman described a recover i recovering economy. >> sure. >> we hear this morning that consumers are not feeling so confident and the university of michigan survey came down, and we know that the companies are doing fine and the stock market is doing fine, but what about the consumer? >> the consumer is something that we misunderstand, because
1:41 pm
we are looking at it myopically, andan krueger is saying that the consumer is spending more and buying more, and the problem is when you look at the bigger picture, we have an overleveraged consumer, and price prices in general, and since the peak of the financial crisis, with we have seen the private sector debt come down from $42 tr trillion to under $39 million and then flatline and now up again. the problem is $20 trillion to $42 trillion from 2000 to 2009 and we have a long way to go. >> and still indebted and more indebted by far than ten years ago. >> absolutely. >> just as the government is. >> absolutely. so why while you see everybody on capitol hill and not everybody, but cutting public spending and dealing with the public debt, and the public debt is an issue, but be careful what you wish forrers because you cut that, the private sector will deleverage again and not borrow and start to delever and that could then end the recovery or
1:42 pm
send the economy downhill. >> and andy, one of the things that has leaked out of a lot of people, when the spending cuts ki kicked in march 1, and leading up to it, the stock market has been pretending they don't exist or maybe nay realize it won't have that big of an effect given what lauren was describing, and that is that the consumers on some levels feel richer so they are keeping spending. >> yes, that is right. there is a certain amount of crisis fatigue with the market, and we have manufactured crises in washington, and the market is a little bit tired of them, but we have one coming up, a it is not closing the government, and when we get over that at the end of the month, but we have the debt limit. that is going to hit in august, and just like 2011, and we heard mr. krueger say that he hopes that is a smooth process raising it, but i have doubts about that. the president has been laudable to reach out, but there are defining differences between the parties. >> you expect something by way of a continuing resolution on the government by the end of
1:43 pm
this month as planned, because that there is a forcing issue when the debt ceiling comes up? >> yes. >> and i was this the room when one of the best analysts in washington politics say, there is not going to be a deal on this, because both sides have too much to lose and you want a deal that says, hey, i will raise your taxes and cut your entitlements, nobody is going to buy that kind of deal. >> and right. deep defining differences of the parties that cannot be papered over by a charm campaign. it is not going to happen. and now it does not mean that we won't reach a resolution to the debt ceiling and not going to default on the debt, and the markets in the economy may react negatively in the spring and summer as they did in 2011 as we had a deal that was made, but it will take a while and it will come back. >> andy, great to see you, and lauren, nice to be with you. >> thank you for having me. >> thank you. >> and josh lipton. >> well, tyler, american express enjoying a pop, and today, american express is right for
1:44 pm
the times and it is wealthy customer base is insulated from a lot of the macropressures hitting the low income consumers and american express this afternoon reported a will delinquency rate of 1.3% in february and flat from last month and a good sign say the analysts in that future chargeoffs are under control. sue, back to you. >> josh, thank you. legendary fund manager bill miller, and former fed chief alan greenspan and mila kunis are getting back into the stocks do. you agree? we will let you know. >> and new details on paul ry ryan's budget plan and how it could affect retiree's taxes, and all of that is ahead on "power lunch." fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it.
1:45 pm
make your mark with ink from ch
1:46 pm
all right. a story that wealthy retirees need to pay attention to. new details the on paul ryan's
1:47 pm
budget plan and how it could affect taxes. wealth editor robert frank joining us and he lz been dig into this, robert. >> yes, i have. and paul ryan would tax about everybody, including high earner s and retirees and according to the nonpartisan tax center, it would give the average american tax cut of $3,300 which is a 5% increase in after-tax income, and those making between $40,000 and $50,000 would get a tax cut of $670, and about 1.6% tax increase after tax income, and the big winners are the big earners of those making $1 million and more would see a tax cut of $408,000 which is a 19% more in after-tax income. and now ryan's plan is to be revenue neutral and we don't know what taxes go up to make up for the taxes he is cutting like the amt and the obama care, and the tax rate cut, and $12 trillion would be lost from the
1:48 pm
proposal and we don't know what offsets would be, but the house opposes any increase in capital gains and dividends, and of course, very important for retirees and they oppose dropping charitable e deductions so it is unclear where the money would come from and for now the top earners and the retirees the ryan plan is attractive and you can read more on >> thank you, robert. we have breaking news and for that we go down the kate kelly. >> tyler, thank you so much. i am outside of the hearing room where we just broke for lun frch the jpmorgan whale hearing here on the subcommittee's investigation investigations and i caught up with the star attraction ina drew on the way out this the hallway. >> reporter: any comments on how today went, cnbc? >> good. >> as you can see, sue, drew looked shaken up and it had been a long morning obviously and hours of grilling for her and her colleagues from jpmorgan and more yet to come this afternoon. >> kate, i was struck by the
1:49 pm
fact that she looked shaky early on, but it does not sound like she became anymore comfortable with the setting and perhaps understandably so and she seemed to be more defensive as the day went on, a san diego that your read as well? >> well, yes, sue, and any one of us would have been nervous, but we are on tv for a living, but faced with that career-en g career-ending mistake which is a public embarrassment and everything that i have heard from a break from a distinguished career that ms. drew had had and you would have been anxious, and she was soft spoken and shaky to me, and we were all wondering if senator levin for example would have gone for the jugular and go for the tough questions and see real emotions on the chair, but she remained composed although at time a little mystified or a little defensive about the questions that she was being asked. >> yes, we will see what the afternoon session holds. kate, thank you very much. >> thank you. and so kwi ceo is the most popular of them all? well, even though the winner was
1:50 pm
not portrayed well in the movie about his life, his employees are giving him the thumb's up. the anxious in 30 seconds. sgla coming up on "street sig s signs," andy kisser in and you may know him as an author of a number of books leshgs be giving us his ideas of tech and of course, what is happening so incredibly fast these days and how to stir innovation with $500
1:51 pm
billion. have you heard of curves? no -- >> wait, a minute. wait a minute. by the way, mandy. >> lots of things coming up on the show, and including maybe the real herb and not just his head on a stick,on though we do love him. we will see you then. back to you. >> thank you, guys. >> tune in. >> who is the most popular ceo in america? you might be surprise ed d to s who received the most likes. jane wells is here with the list for us. hey, jane. >> hey, sue. i know that the anticipation and you have not guessed it yet and i will save it for the end, and that was not last year's winner who was apple's ceo, tim cook who had a 76% approval rating and now on glass, he is only good for 18th place. and this year, include sap's co-hosts bill mcdermott, and
1:52 pm
hagemannn and smabe and mckinsey & company, and ernst & young's turley. and jamie diamond fell, and lloyd blan ek fooin fell to-- blankfein fell to 36th. and melissa meyer, she is too new to have enough reviews to qualify, but she has an 87% approval rating which is much better than the predecessors, and so who is the most beloved ceo. drum roll, please. facebook's mark zuckerburg with a 14 point up approval rating from last year despite the stock trading and i.p.o. >> well, we are going to do the rundown and jane, julia boorstin
1:53 pm
is joining us from los angeles. julia, you have been hanging around facebook and reported that story for a long time and does it surprise you that he is number one? >> not at all, tyler, and it totally makes sense and shows that facebook employees care more about the environment and the quality of life than the stock prices. it shows that he has a open door policy and he hosts regular meetings with employees to keep an open dialogue of what is going on with the family and the food at facebook, tyler, is really good and that makes people really happy. >> and jane, you give them free food, you will get a lot of votes. >> certainly in the media. well, the only negative on glass door is that the companies believe that it is growing too fast and may lose the sort of hacker vibe. >> we will take a quick break and come back to finish up with the second installment of the "power rundown" right after this short one. [ male announcer ] this is joe woods' first day of work.
1:54 pm
and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. here's my take, the profits are the mother's milk of stocks.
1:55 pm
you have got the grow the pie larger for everybody. free market capitalism is the
1:56 pm
let's pick up where we left off with the power rundown, and julia boorstin and kelly also in l.a., and the guy known for beating the s&p 500 for nine years in a row, bill miller told us this morning on "squawk," he likes groupon and likes the beaten down ostock, and what does beaten down look like? well, that is it. and that is what it looks like this morning when he said he likes it. julia, go about this one? >> well, there are a lot of unknowns facing groupon right now. first of all, they are looking for a permanent ceo, and the other issue is that the margins are all over the place. they are really trying to experiment and figure out what is going to work to get the merchants to come back time after time and big challenges internationally, so it is really
1:57 pm
interesting that he is bullish, but this is a company facing a lot of questions still. >> and he is a share hoeholder, jane, and i don't know what it does, jane. >> well, i'm more of a warren buffett type, and i have to like it to believe it in, and my groupon deals today were 70% off of toenail fungus remover. >> not every show can get that toenail fungus in. and joe fresh 61 stores today, and is this the make or break moment for ron johnson, janie? i don't know what joe fresh is. >> well, he is making and a break a lot, and he is part of a super market chain, and if he wants more buzz in the united states, he needs to make a better name, and google that, kids. >> well, it is the make or break moment, and they have invested so much in advertising and everything for this, that if it does not work, that is it for him, but tyler, i went on line and looked at the clothes to find out they looked pretty good. >> we have never heard of it.
1:58 pm
>> all right. how cool. and now over to mila kunis, because you can move from toenail fungus to mila kunis simply, and she sat down with cnbc, and this is what she had to say. >> i like into vest in stocks and i am like, put the money into the bank and lock it away and put it in cds and i am pushing forward to take chances and learning about the stock market. >> and janie, mee la is long. is this a sell signal? >> people have been mocking this, and she is 29 and making money and wants to invest in her future and the retirement, what is wrong with this? good for her, because god knows in hollywood, you have a short career span if you are a woman, and if she chooses the stocks the way she has chosen her roles so far in the kreeshgs i am going to give her some of my money. >> all right. i will i.have to leave it there julia, alas. we will look at the markets when we come back.
1:59 pm
it's not what you think. it's a phoenix with 4 wheels. it's a hawk with night vision goggles. it's marching to the beat of a different drum. and where beauty meets brains. it's big ideas with smaller footprints. and knowing there's always more in the world to see. it's the all-new lincoln mkz.


info Stream Only

Uploaded by TV Archive on