Skip to main content

tv   Squawk on the Street  CNBC  March 22, 2013 9:00am-12:00pm EDT

9:00 am
access to all aspects of the company, the process can be -- the playing field can be completely level, and i think increasingly the technology, becky, of these things, if i can call it that with the rise of special committees and the rise of separate legal advisers and a lot more scrutiny both in the press and so forth, increasingly, these processes are getting more modern and more appropriate. i don't buy the idea that any management buy out by its nature is unfair. i don't buy that. >> the reason we asked you about this and the reason you can't talk specifically about dell is because today is the last day. it can be fair and that's an interesting argument. let's get both of your decisions about what you think about cyprus. what do you think? >> on monday we'll see some additional drama. i think things are not
9:01 am
developing smoothly over the weekend, but we will move beyond that and this situation in cyprus will be resolved. this is not going to be damaging to the eurozone. that recovery process is in gear and moving forward. >> roger? >> i largely agree. i don't think it will have medium term or long-term large effect. >> john, you wouldn't worry about positioning your portfolio into the weekend even though this is hanging out there? >> i don't think so. for most investors it's really a non-event. >> get out your winter coats, guys. apparently an ohio prosecutor is seek the death penalty for punxsutawney phil who forecast -- did you know that? he forecast an early spring and -- >> i know. i'm excited about it. >> this is honest to god, true, the guy in ohio, michael moezer who is a prosecutor has filed an indictment for phil.
9:02 am
>> we need a legal defense fund. >> thank you for coming on, and i like stolfus. next time i promise you that i'll get it exactly right. you didn't put your stuff in mothballs yet, did you? >> no. >> no, no. >> how many games will you watch today, do you think? >> none. i watch the highlights after. >> at least you watch the show, unlike some people. make sure you join us monday. "squawk on the street" is next. happy friday. welcome to "squawk on the street." i'm melissa lee with jim cramer and scott wapner. let's take a look at -- up by about 42 in pre-market trade and take a look at the pekture in europe because, of course, a lot is hanging on the situation in cyprus.
9:03 am
they're weighing business confidence which fell to a 10-month high and came up better than expectations. overnight in asia, the action ng in the nikkei capping its biggest weekly decline since the month of november. >> no deal with the russians makes monday the deadline for cyprus. one spokesman for the cypriot government saying the next few hours will determine the future of his country. a couple of consumer reads, popping pre-market on quarterly result the company had in january and nike ends an eight-quarter streak delivering a quarter and the top expectations and shares soaring this morning. for all of you who have been waiting for the z10. the day has come. blackberry available in stores and we'll check in on a store to see how demand is shaping up. >> indexes looking to bounce back after posting their biggest losses in three weeks. wall street keeping a close eye on cyprus where officials are working on another plan to secure the bailout.
9:04 am
thises as the mediterranean nation is facing an ultimatum by the central bank. face losing emergency funds for cyprus' banks. this morning the cypriot government spokesman said the next few hours will determine the future of the country. cyprus' finance minister has returned from russia after two days of unsuccessful talks there to reach some sort of funding deal. so that story goes on and it will play through the weekend into monday. >> well, look, there are a lot of people thinking why don't they do the wall street journal solution op ed section which is just cram the owners of the banks and just give 100,000 euro guarantee for the others and that's the ice plant and crunch these guys. but somebody wants to be taught a lesson here, and some banks are considered rogue banks and people feel the moral hazard
9:05 am
here. this is lehman. we had to teach someone a lesson and these are the wrong people to teach these people a lesson. i disagree. lehman was the biggest bank in the world. >> no. this is not too big to fail. it's small enough to fail and it's a very fluid situation. there are a lot of reports about new legislation being proposed to bundle various assets to issue an emergency bond and there are reports that the cyprus popular bank could be separated in a good bank and bad bank time and time again. we'll all have to wait until monday and in the meantime we have a stock market that wants to open higher here. that's interesting, too. micron is an ended to the negative tech stuff that's been coming out. >> it's a -- the commoditized part of the business. >> and we had a shortage of product along those lines and yet a couple of positive notes
9:06 am
so you have nelson peltz rumored to be filing on two very big companies, pepsico and my belize and i don't think these are negative enough to be able to drive us down versus -- it's good enough stock news to offset bad enough cyprus news. >> you have to put it into perspective. this is a week that's a crosscurrent week. you have the news you just mentioned and then you have fedex in cat and oracle and things to consider if you look at the stock market which is on pace for its worst week of the year. heading interest a weekend, enwhat your thought is what you do when you head into a weekend here when you have cyprus hanging in the balance. >> if you're a hedge fund it would be bad and you would make your books smaller or add some shorts and bet that you'll be able to cover them and throw some s&p puts on and these are the kinds of things that people do, and i don't blame them one bit. the most reassuring thing is they're working on friday. we'll catch you later.
9:07 am
maybe they'll work sunday, but i think there are some solutions. i do feel that there are a lot of people who continue to say once we've done this then the sequester and the president comes back when he's at jordan. so you have the sequester issue and it's always sequence and then we go to sequester and as long as we have good earnings in the morning people get excited. >> what's amazing is we go from headwind to headwind in the market and the market goes higher. whether or not the economic numbers will finally show the impact of hundreds of thousands of people being furloughed or laid off because of the sequester, i don't know, but will it matter? that's the question. we seem to have floated higher and higher and higher no matter what the headwinds are. >> i'm going to preserve my quarter and it's the end of the month. is there a time that i think people keep seeking a level of truth and the market's not about this truth. the market's about, hey, you know what?
9:08 am
i'm in pepsico. you're in clorox. you're in kimberly and you're make something money in kraft and let's put bids underneath and go home. >> do you have any bit of concern given what the transports have done this week? it's, like, the worst week for the transports in four months. >> yes, i'm concerned, but at the same time i've done a lot of checking up on the rails. i think they're fabulous. the airlines remain my favorite place to be. i think we had delta on yesterday. delta sounded so confident. this u.s. airways, amr deal will be fantastic. united and continental. these guys are hitting it out of the park. it can't be that bad. >> you like the rails in part because of nat gas has done. >> it means switch back to coal and that's why norfolk southern has gone from 45 to 76 and csx has not moved nearly as much as i think it should. >> these are oligopolies that don't really compete and as long
9:09 am
as you have coal going up and union pacific say classic and they ship western coal to china and they can't see their feet -- some great pictures. so i just feel like the rails are -- i like that ryder came up anda i lot of guys are downgrading the stock and that's a mistake and i continue to be a ziegantic believer. don't forget spirit single save -- keep the s on for savings. >> let's hear tiffany rising in the pre-market. the luxury retailer, led by double digit percent sales growth in the asia pacific region. tiffany expects full year revenue rising 8% to 6%, but addses it expects operating earnings to fall 15% to 20%. tiffany is one of the stocks in cramer's great gatsby. the high end consumer was a recent edition as of the middle of march, march 13th, i think it
9:10 am
was. >> i've seen the stock and it's been a buyer underneath the whole way. people at home are saying they missed three quarters in a row. how the heck can you like the stock. >> you can miss, you can miss and you can miss and then you get it right and it blows through. norfolk southern, they missed, missed and this is a market that has no memory of the bad. only thinks about the good and makes you feel like, you know what? caterpillar, i think you should be in there buying because next month if the stock good, the ease with which stocks can rally on one good quarter and it's very frustrating because anyone who is rigorous would say tiffany is much lower and you're short tiffany, what do you do? >> the hedge fund is short these days. >> do you read this as it just wasn't -- thank god it wasn't bad. thank god it wasn't worse. that's yet story was great. darden should be shelled here, but no, they pre-announced.
9:11 am
the dividend's not in trouble and we for this moment where i think it's just so different from the last decade. the last decade was, you know what? i don't care that tiffany was good and they guided better from the last quarter and slam it. where are the sellers and that's something i've been asking everybody. >> where are the sellers? what happened to the sellers? they were here for a decade. where did they go? >> and why is there a relief all of a sudden that tiffany got the product mix right. for a long time they were dependent on their silver sales and it almost tarnished, forgive the pun, almost tarnished the brand because they were selling at a price point than the rest of the high end canary yellow diamond-type jewelry that they made their name on, and now, gross margins are a little bit better. >> they're so fuddy duddy. >> the friends would tell you, listen, we moved ahead. tiffany is still stuck in the mud, but at the same time, i
9:12 am
know you buy your jewelry at costco. >> you told me to go there and do it. >> no kidding. go shop, and it had nothing to do with dell. i thought it was a chance to go to costco, but i do believe that this tiffany has some sort of pull in asia and asia's back. how can japan -- >> well, the yen. it's the impact of the yen in japan. that's the problem. that's the problem. >> great call. >> in the spring they have this new art deco collection which will be modeled after high-end platinum collection except done in silver, onyx and freshwater pearl. maybe that will be eiga catalys for sales. >> still like the service. go to tiffany this weekend. >> i went to tiffany a couple of weeks ago. >> really? >> what did you think? >> it's always nice. it's always nice, but i went to get a baby gift there. i wasn't buying jewelry, but i was buying a baby guest. no one's ever complained about tiff no. they like the blue box.
9:13 am
>> they have the really cute piggy banks and they come in a big blue box. >> timeless brand got it right. >> not as bad as a rally. >> there could be a flattened soda can in the blue box and you'd be happy because it's in the blue box. >> not if it's monster. it increases your heart rate. what do you think it does? you know the five-hour energy drinks? i was up for three days. >> i have. i may have had a rough night before a squawk thing where i had to have a little five-hour energy drink. >> come to play. come to play. >> yeah. >> all right. let's talk nike now. call it march gladness. >> whoa! >> march gladness. shares of the sport apparel company reporting fiscal third quarter earnings of 73 cents a share and that was 6 cents above estimates and revenue shy of consensus forecast. earnings were boosted by an increase in gross margins
9:14 am
breaking an eight-quarter streak of declines. nike sales growth offsetting weaker demand in greater china and japan. this was a good quarter. >> i thought what was great about it is they addressed china head-on. they said we'll clear up the supply problem. i thought i was reading about an internet company and they're emphasizing tech and how tech resonated with the consumers. i think parker is a terrific ceo. i am very glad they got this together because it's a great american company that delivered. >> when they started buying back stock i thought they had it in the bag. >> this quarter shows me and the great growth stock is back in action. own nike. >> own it. >> how do you put it into perspective with some of the competition, right? with under armour. >> lulu. lulu's execution the wrong way.
9:15 am
nike's execution the wrong way. >> kevin plank, i'd love to hear from you because there are a lot of bears circling and kevin plank has good technology, too. >> we should note that off the nike quarter, we are watching shares higher in footlocker and underarmour and it is lifting all boats right now. the gross margins were a big deal in terms of snapping that eight-quarter decline in gross margins. 44.2% is where they came in versus 43.9 in the previous quarter. future orders. >> it's not a reflection of revenue growth and it's directionally as to where things are going and up 7%. >> there was a short call on that one. >> china screwed up and dicks is saying things aren't so great. >> there's a lot of hedge funds who like to build this mosaic. >> that's bad for nike and china, the problems continue and
9:16 am
the gross margins have been terrible and it's a risk-free short and then you have your head, salama jslama jama. >> go to the website agrarian, and the numbers are incredible for agrarian and that's albert doing a terrific job. >> yeah. >> you don't need to go to williams-sonoma to buy. you can go to homegoods, tjx homegoods and marshalls where i got my first suit and i went into goldman sachs, and the guy said it looked like you got the suit at marshall's. i did. what's the matter with marshall's? no, go to -- but i do think that the williams-sonoma quarter was a breathtaking quarter from the point of view of the consumer willing to trade up again and again and again. and nike, by the way, it ain't
9:17 am
cheap. >> no, they're not. i know you go to the jersey outlet with me. >> i probably should because i end up paying full price unlike 57th street or 59th street. nike has a fun experience now. >> you go there for fun and buy elsewhere. ♪ ♪ ♪ >> okay. it's been a busy week for ipos and it's about to get busier. this is the busiest week of the year for ipos and three companies making wall street debuts and in fact, we'll bring you all of their opening trades and an interview with the ceo of marin software and blackberry, pinning its hopes for the new z10 phone. can you bet on a strong start out of the gate? let's take a look at the futures on this friday. it will be a higher open certainly the way it looks right now. the dow with an implied open of 40. from the new york stock exchange
9:18 am
when we come back.
9:19 am
9:20 am
today is the day u.s. consumers can get their hands on the new blackberry z10 phone. it costs $199.99 with a two-year contract. it takes on market leaders apple
9:21 am
and samsung and they have soared more than 150% in just the past six months. 150 -- i mean, this is a classic sort of dash for trash that we've seen so far this year. >> i like that, yes. where there are a lot of stocks that people questioned the future of the stocks and they questioned the quality of the stocks and these are the ones that had been gaining. >> right. blackberry, bed bath and beyond, best buy, hewlett-packard. >> yes. >> all companies thought to be on the ropes and all companies resurgent and all companies very inexpensive if they get it right. if they get it right, blackberry has no problem. >> eric schmidt will be in line because he's using one with the keyboard so he would have to wait for the q10 and not the z10 because ironically he uses a blackberry. he likes the keyboard. >> i'll tell you what's ironic, when i went to my college reunion. steve ballmer was using a nokia.
9:22 am
why? microsoft -- >> exactly. he said look at this. oh, my god, i've never seen one of those. >> because nobody has one. >> if he'd pulled out a blackberry, it would be game, set, match, right? everything is riding on this blackberry thing at this point given what the stock has done. if there's anything less than a blockbuster, what happens to the stock? >> i think that -- yes. i think we're in the first 48 hours thing and we'll will have one of those things and if it's a dud, but the press reports have been pretty good about it, and i think there are people who are still wedded to the keyboard. i think it's okay. >> i think it depends on how you're valuing the stock. there are some analysts throughout in their models they assigned nothing in the device part of the business. >> that was that great -- the sum of the parts analysis and unfortunately the parts are together right now. so the only time we'll see that value is if parts are actually
9:23 am
apart. >> a lot of breakup analysis when there is going to be no breakup. how does that work? i'm breaking up exxon. doritos don't go with soft drinks. >> right? >> they never do. i've never had a dorito and a soft drink. i always like to have it with wine. maybe we should merge, right? or maybe a reserve, and bourbon. there you go. that that makes sense. >> they've done such a great job with the two companies together. i'm referencing because triad's taking it. i do think that i often find that carbonated soda and, say, fritos, they shally go pretty well together especially this time of year, right? >> yes. >> you go there and some nice chips. >> buffalo wild wings. >> all right.
9:24 am
it is just what the doctor ordered. cramer's prescription for profits and hear what he has to say about stocks on his radar screen and that's next on his mad dash. we are looking at a higher open and much more "squawk on the street" straight ahead. ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. [ male announcer ] from the way the bristles move to the way they clean, once you try an oral-b deep sweep power brush, you'll never go back to a regular manual brush. its three cleaning zones with dynamic power bristles
9:25 am
reach between teeth with more brush movements to remove up to 100% more plaque than a regular manual brush. and even 76% more plaque than sonicare flexcare in hard to reach areas. oral-b deep sweep 5000 power brush. life opens up when you do. (announcer) at scottrade, our cexactly how they want.t with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. awarded five-stars from smartmoney magazine. a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel.
9:26 am
delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪ ♪ ♪ ♪ how about five and a half before the opening bell and time for cramer's mad dash ahead of the market open. number one, i'll let you say it
9:27 am
because i'll never do it justice. >> bristol-myers. i've been enamored with forever and my charitable trust owns it. they say earnings can double in 2020. this has been the red-hot guy. a lot of people felt when they bought the hep-c drug and then rode it down. the stock immediately went rid to here and it has been like this. i see it going like that. it is one of the best-run companies in the world and people kind of left it behind. bristol-myers, it's time. three months, it's up 23%. people realizing it does not have a celgene growth. it is not a gilead, okay? but it does have gain. brist bristol's got gain. >> goldman comes out with a terrific piece saying you've got to buy hanes brands and you have to sell children's place. "mad money" we were working with hanes brands and hanes celest l
9:28 am
celestial, but we realized that hanes brand is very cheap and they spent a fortune trying to upgrade their plant and the capital costs are behind them. this is a very happy duopoly. i think hanes brands is very cheap. i would buy the stock aggressively. i would sell children's place. >> a conviction buy. >> it was just a buy, it was a conviction buy! >> all right. it is an ipo hat trick, three companies going public today including two right here at the big board. marin software and first oaks investment and stick around to see how they'll open for trading and we'll talk with marin's chief executive. "squawk on the street" will be right back. carfirmation.
9:29 am
only hertz gives you a carfirmation. hey, this is challenger. i'll be waiting for you in stall 5.
9:30 am
it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the spef hertz. i don't have to leave my desk and get up and go to the post office anymore. [ male announcer ] with you can print real u.s. postage for all your letters and packages. i have exactly the amount of postage i need, the instant i need it. can you print only stamps? no... first class. priority mail. certified. international. and the mail man picks it up. i don't leave the shop anymore. [ male announcer ] get a 4 week trial plus $100 in extras including postage and a digital scale. go to and never go to the post office again. [ male announcer ] this is karen and jeremiah. they don't know it yet, but they're gonna fall in love, get married, have a couple of kids,
9:31 am
[ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commission. they'll get straightforward guidance and be able to focus on other things, like each other, which isn't rocket science. it's just common sense. from td ameritrade. >> you're watching "squawk on the street." you're at the financial capital of the world. the opening bell set to ring in 60 seconds' time and we're looking at a higher open across the board on the s&p, the nas q nasdaq. you mentioned micron before. >> yes. >> it was one of those dash or trash companies. it was up 52% since the start of
9:32 am
the year. >> it's been -- since i've seen it go. it could go to 12 bucks without a problem. >> yeah. it did flash. we're going go back on s&p record watch again. >> oh, really? [ bell ringing ] >> take a look at the real time exchange. a very big crowd celebrating the listing of marin software opening. we'll talk about it at the nasdaq magazine celebrating the 2013 ir magazine awards. i've got to tell you, this market has no memory. now we're starting to think, okay. we don't have to worry about cyprus. at 3:00 in the afternoon people will worry about cyprus. it's a long day. >> and that's the way trading's been. >> yeah. it has not been a complete day
9:33 am
in the same direction at all. >> i think that people who get excited and pay up here are going to regret it. there are other undercurrents that are quite possible. did you see the shipping stocks? they were on fire. >> it's been creeping up, but when you see those stocks we mentioned transports. fedex doesn't say anything good. if there was a real move in these shipping stocks and there may be a way from some sort of foreign geopolitical crisis. that's very, very positive and i don't want to write them off and it does matter. we've been recommending dsx on "mad money." it's doing quite well and we turn positive the other day on nordic-american tankers. >> we had the ceo on recently and herb finally got it right. which means brown bear in his native language. >> yeah. >> brown bear. let me ask you this.
9:34 am
>> we've obviously had a pretty good open here. as i can see, the only dow stock negative is coca cola and that is probably on reacting to this report of peltz. >> so peltz comes in and he blows out sales and takes share of coke so therefore we should sell coke? what the heck. >> there's a reason why pepsi changed the 20-ounce bottle design so it would standout on the shelves and it's a new contoured bottom with a different shaped bottle so it's easier to grip. >> what is the number one soft drink in india? >> what is it in india? >> dew. >> mountain dew. do the dew. it's electric over there. >> i should have known that. i was there recently. i didn't have any dew. >> a morning dew. >> on thursdays i have a mountain dew. >> you're talking to the ceo of pepsi, of course, you said that. >> i told her i'm having my weekly morning mountain dew.
9:35 am
she said why don't you have a mountain dew every day? i said because mountain dew, that's a treat. i'm trying not to have soft drinks. >> you really have a dew every thursday? >> every thursday with the caesar chicken salad. at the commissary. >> they freshly chop the chicken and mix it by hand. >> a little tomato. >> forgot about that. >> lost on you because you've got -- >> i think because he's got that 12:00 show. >> i don't get to eat. >> and spending some big bucks there. >> i don't have any money left for the chicken caesar salad. >> the $5.10 after you buy a $200 pair of nike shoes. yeah, i can see that. >> the banks are doing pretty good today. >> nike hitting a fresh 52-week high and it is up by 8.7%. >> incredible. >> incredible run. >> this is a huge cap company and just up because of a good quarter and that's a mixture of guys looking for growth and
9:36 am
short sellers thinking this was the layup short. this was the new mexico -- this was the new mexico short. >> even darden is up 1%. >> the conference call, we should note is going on right now and they had talked about promotional activity and keeping the checks flat and that the traffic is, in fact, improving and they talked about a dividend increase. a minor dividend increase could be with shareholders. there was a chatter that the dividend was not sustainable. suddenly they're increasing it. what does that tell you, mr. short seller? it means that we'll have to hear at the half about the guy who said sell darden and sell nike. >> we will. you know what we didn't talk about yet? sales force. >> sierra is 4 for 1 stock. >> in oracle space yesterday. come on. yesterday, oracle is, you know, having a pretty off day. >> i've been pushing mark to do
9:37 am
this 4 for 1 because i hate the way the stock trades. oh, i missed it. if the bad quarter it's down 12, and i should never be in it. >> they had a 40 share. we all know that a 4 for 1, and i don't want to get caught in that conundrum and it does trade illiquidly and this is a clay nation death match between ellison and i'm going with bennyoff here even though the charitable trust says that oracle is cheap. the sales force is expensive and they're executing better than anyone in the space. >> the last time we saw a stock split to this magnitude, by the way, was july 2012 when cme split 5 for 1 and you rip a piece of paper in half and you have two halves. in terms of the options trading because it lowers the price there. >> everyone remembers in the '80s when it got going, pepsico
9:38 am
and coca-cola would split and waste management would split and it got people going. you can say it shouldn't have, but it brought retail investors into the market and no retail investors wants to own a $44 stock. roll over like a cheap k-mart suit at marshalls. >> nike's gain. we're also watching nice gains by finish line. footlocker is also up sharply with 2.6% and all benefiting from the idea that more nike goods are being sold in north america and that would benefit the retailers of these goods. >> keep it coming back and dick's coming back and it was a rosy hugh whenever you get good news, people say, wow! this is fabulous and they like to do the mosaic trade. >> 3.5% trade. >> nike is probably killing these other guys, but it doesn't matter. the rising tide. this market's forgiving. it's saying if nike is doing well then underarmour is doing well. they never thought maybe nike is
9:39 am
killing underarmour. not initially. it used to be shoot first, ask questions later and now it's embrace it first -- >> unless -- >> ooh! like that. unless you're oracle which you've not seen any sort of a balance. >> tibco was just -- that was just a thermonuclear war and it granted. that was a terrible quarter and again, what did he do? he threw the sales force under the bus. i would rather buy a company by the name of sales force than throw it under the bus. >> take a look at techdata. this is one with the sharp decline down. quarter quarterly and annual results in quarters of 2013. any time you have results, the stock is down 8%. >> i like those guys so much. it's the supermarket of tech. >> that's a monster crowd for the ipo. i know, i'm blown away by the
9:40 am
crowd. >> how rude. >> i'm sorry. look at the crowd. this has been one hell of a week for ipos. >> yes, it has. >> techdata -- >> pardon me. i'm sorry. >> you're right. i ought to catch the wave, you know. i don't have these. these guys are hurting my bracket. i have kansas state coming up here. >> pisani has a spotlight on him there. he's right in the thick of it. >> next to model and this is another very, very anticipated ipo and 11 to 8 and it priced above 14 and right now it's looking to open at $17 to $19 a share. so marin software, mrin is the --? how much money are they making? >> that would be none. they're not profitable. >> they're raising a lot -- look, these guys got the hot stuff. people love hot. they love internet. i just want to caution people, there's a company, millennial media. m&m. they were all on fire and they were hot, hot, hot. $7 and that was not a 4 for 1
9:41 am
split. that was just depreciation. how about those ipos? >> i was just making fun of you. >> i know. they don't even think -- they can't say when they'll be profitable. >> even better, the expectations are long. >> the ceo will be here at post 9 after the stock opens. >> yes. i think it's one of those stories. it's got all of the measured manage, optimize, digital. and pains of major retail eers. >> it's the trinity. >> does it at all remind you guys -- i remember the days when you guys were down here when i think it was pandora went public and you were asking the ceo -- >> that was a ten-minute interview. >> about when are you going to be profitable and he couldn't tell you. >> people said i was rude. >> oh, we got so much flack about that. oh, completely. >> yeah.
9:42 am
badgering him. why are you badgering him so much. they a reason why we badger people? in 1998, '99 and 2000 we didn't badger enough. >> they're good, too. >> they could go all of the way. >> let's send it over to bob who is in the middle of this crowd for marin software, bob? and they brought everybody including their mother down here. one of the fun things about this is everyone brings their family and there are all sorts of people, wife, aunts and uncles and i'm talking to various people from different parts of the world. the bottom line is it has the cloud-based technology. right now we're looking at 1850, and somewhere around there. remember, 7 million shares and they upped that. the price talk was 11 to 13 and pricing at 14 and now we're looking at 18.50, somewhere around that. good numbers here and 4 million
9:43 am
and $15. we have another one today. wes corp. the phone service provideir and know you were talking about a big week for ipos. we had the model and all pricing above their initial price and all doing very well. i counted 27 ipos so far this year, and i talked to the ipo financial about that. 21 of them have priced above their initial price. 21 out of 27 and those are good numbers. i guess the question is, where are the rest of them? we ought to be a big flow of ipos given how well the market's doing and there's not an enormous pipeline and this may be due to some changes in the way ipos are registered and the bottom line is so far so good. how about stock mutual funds and lipper is reporting inflows even
9:44 am
though it's been a rocky week. they were the lowest inflows of all year, but they're still inflows and we've had inflows every week except for the first year and there are still inflows into bond funds and ingame, it's still not happening. >> tiffany, the only thing i'll say about tiffany, they affirmed the 2013 earnings guidance and it's the valuation problem, jim. i see for tiffany 20 times forward earnings and that's way above where the luxury retailers trade. they're 15, 16, 17 times forward earnings and finally on the global markets and only one that's up this week is china which has a lot of problems of its own and china is up and still looking around $18.50 for marin. both companies are doing well and the valuation gets
9:45 am
stretched. nike is a cheaper stock than tiffany. >> rick santelli at the cme group in chicago. >> good morning, jim. ten-year treasurys of 192 are up a whopping one basis point from the 91 basis point. rates up slightly today and you can see they haven't made up the ground yesterday in terms of how they dropped from the mid-190s and remember, they closed at 2% last week. if we look at what is the dynamic floor traders are making a few shillings on. as i said at 192 and let's look at the ten-year boon which is in the high 130s and you see that spread in the high, mid-50s. you can see how that's moved and the year to date chart and that's a good way to handicap europe or what's going on with the breeze and now another one off that cyprus. pay attention here.
9:46 am
now let's switch gears just a bit and let's look at the currency pep yesterday, we talked about this two-day chart and 128.80. we held it yesterday several times. that's key and it came close below that and we'll go longer by cyprus closed at 131 so it held that, now the pivot they say is 130. if you open that up to november, you can clearly see we're dancing around basically four-month lows. here is the stellar two charts of the week and we haven't heard jgbs and the japanese government bonds. the first chart happening happens to start the day after comes after christmas. abe was the leader in japan and you could clearly see, here's a guy who ran on printing and inflation. they haven't had any in a decade and a half. look at what yields have done on
9:47 am
jgbs and open up a 20-year charts by only several basis points in '03. jim, back to you. >> go ahead. you want to take it? >> it's hard to hear because of the veritable sea of people down here. >> any minute. >> coming up, an action-packed day in the ipo market. marin software is in the mix and we'll talk to the ceo about his company's wall street debut. >> and as we head to break, take a look at the early movers here on wall street. . today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe?
9:48 am
let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers. morning, brian!
9:49 am
love your passat! um. listen, gary. i bought the last one. nice try. says right here you can get one for $199 a month. you can't believe the lame-stream media, gary.
9:50 am
they're all gone. maybe i'll get one. [ male announcer ] now everyone's going to want one. you can't have the same car as me, gary! i'm gettin' one. nope! [ male announcer ] volkswagen springtoberfest is here and there's no better time to get a passat. that's the power of german engineering. right now lease one of four volkswagen models for under $200 a month. visit today. take a look at those crowds. this is a rare site on the floor of the new york stock exchange as we're awaiting the opening of the latest ipo to debut. marin software, ticker mrin. tremendous demand for this one yet another that is offering 7.5 million to 7 and well above the range at 14.
9:51 am
the range was 11 to 13 and right now the range on its open looks to be 18 to $20 a share. >> exciting. it's a very exciting day here. >> it's time for "six in 60." number one, ups. ups. >> it's a charitable trust. this is not fedex. it's doing better than fedex. >> johnny walker red, johnny walker green. >> keep talking to me. >> love the stock. going higher. >> cheniere energy. >> lng is the symbol that goes higher. >> bp is incredible. they're doing a giant buyback and part of the russian joint venture and people keep thinking they're out of money. they're not out of money. >> linned. that company has a great yield. >> edward life sciences.
9:52 am
i keep thinking that this device will bea -- it's a congested heart failure drug and it's not so hot. >> madmow at 6:00 and 11:00, what have you got. we are continuing with oligopolies and companies that have -- >> airlines, rails? >> twitter @jimcramer. people convince mead there's a lot of cheap beer out there and we can open up brooklyn brewery tomorrow. >> they do a great job. >> melissa's been highlighting throughout this week that it's the biggest week for ipos of the year. >> right on cue. >> and it's opened higher by 35% right at the open for marin software. this is one that had increased a share. >> and it's $18.87. >> it's got the buzz words.
9:53 am
if we'll go down the marin chain and it's a pharma. this company has got. when you look at the client list, that's impressed and it's badda bing. facebook, google, yahoo! , japan, and if you're an advertiser. and we'll ask the ceo about the net loss for 2012 and the 60 million in revenues. remember 7 million shares was the initial price share range. 7 1/2 is what they ended up at and 11 to 13 was the price talk and opening at $19 and friends and families, these lovely ladies and gentlemen standing around here. $15 was the price talk and it was what it priced at and it opened at 1450 and that would be the first one this week that
9:54 am
would open below its price and right now it is trading at $19.71 and you can see people with their families all standing here and the ceo and here are the kids and families standing around here. marin brought all of their family down here and it's been very nice. i've been talking to a lot of wonderful people here in the last 20 minutes. >> we'll talk to the ceo coming up. looking forward to that. >> up next on "squawk on the street." that will happen, and he'll talk about the company's wall street debut.
9:55 am
9:56 am
9:57 am
marin software making its debut on the big board this morning. it provides a digital, shares of marin trading higher by 40% after the ipo expected to price above the expected range. ringing the opening bell first on cnbc and the founder and ceo of marin software. chris, congratulations. >> in a nutshell your company helps advertisers figure out if their online campaigns make sense? >> a little more than make
9:58 am
sense. they're specializing in digital. so we closed the loop on the digital advertising investment. >> how are you paid? >> if you're a company like a macy's, is it an ongoing contract or is it per campaign? >> they pay us a portion, based on the media managed on our platform and they're aligned with their success and they spend more money and our fees with them go up. >> congratulations. >> thank you. >> google. you list as a competitor. >> very good companies making a lot of money. how are you going to compete? >> we're already larger than any of those companies, and that's medias leveraged on the platform, and it's managed of our platform over 531 global advertisers. >> if i were an advertiser why wouldn't i -- how would i know, for instance, i don't see twitter here. they turned seven yesterday. >> sure. >> you are seven years. are you trying to get other
9:59 am
companies or is this it because i think a lot of the advertisers are trying to go toward it. >> so we're always expanding our network of publishers and channels and you can see us adding publishers, and north korea and russia. >> can you speak to the profitability of your company. i read something where you said you won't be fro profitable for the foreseeable future. can you give us guidance on that? we'll reach break even by 2015 which is two years off and the lack of profitability is masking our very strong per-unit customer economics and we're investing a lot of money to acquire more customers and we have advertisers who use our platform. it costs money to do that. we're investing to acquire in sales and marketing to add twitter. >> in terms of break even at 2015, where are the spend ad
10:00 am
assumptions and you're depending on companies to increase spending on online ads, correct? >> sure. we use the magna global forecast. $98 billion and it's forecast to be $174 billion in 2017. can we ask you quickly before we go? you probably have a good read on what advertisers think about facebook right now as they're trying to figure this whole mobile thing out? >> sure. >> what is it? >> a lot are finding good success with facebook ads and. >> so when you read about coca-cola saying they haven't found much success in global networking. >> it's a matter of time and this is still a young category and let's stay optimistic on facebook. >> is anybody going to make money on mobile? google is making a lot of money in google. >> chris, thanks for stopping
10:01 am
by. >> thank you very much. >> it's an honor to be here of marin software. >> congrats to you and your company. we will be right back from post 9 at the new york stock exchange. a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪
10:02 am
10:03 am
10:04 am
>> good morning. welcome back to "squawk on the street." the markets keeping tabs on cypr cyprus. the deadline is monday. we'll get the latest word from the ground and discuss what it means for investors here at home. >> plus check in on the high-end retail trade. game on for tiffany and china reporting earnings that beat the street's estimates saying sales will rise 6% to 8% this year. so are the cracks in the high-end trade now gone for good. >> and blackberry z10 hitting the shelves today. should apple be scared? we're live doing our own channel check. >> but first, let's turn our attention over the cyprus bailout. the government is reconvening today. cyprus' finance minister flying back after two days of talks after they failed to deliver the deal to rescue the country. our chief international
10:05 am
correspondent michelle caruso-cabrera live in nicosia, cyprus. >>. >> reporter: the drama convincing right now is convincing parliament to sit down and actually vote to give the central bank of this country the authority to resolve banks. in other words, to wine down the troubled banks here in the country. right now there is a proposal on the table that would allow him to do that. that would mean that the weakest bank in the country nike would be wound down. the good assets moved to a different bank. there are protesters to my left who do not like that proposal at all. since i last saw you the head of the bank was brought here to hear what would happen. we had a long discussion about what was going happen and then i asked him a lot of questions about the history of like and how is it that how on earth we even got to this place.
10:06 am
should his bank accept any of the blame that is happening here? take a listen. >> what would you say to so many investors who said why on earth did you buy so much greek debt? >> that was a mistake, right? >> it was a mistake, but i think still to day, still today government bonds are considered. even today as we speak the rules say that the government is a risk. >> he's pointing out the fact that greece restructured and yet still sovereign bonds are considered risk-free completely. if his bank is finally wound down. if parliament does what the bank wants them to do that will get them close to the 5.8 billion euros to raise in order to secure the bailout from the european union and banks can re-open on tuesday. back to you.
10:07 am
>> michelle caruso-cabrera in nicos irk a, and not the best of times to be there. and watching our markets making a comeback after the major indexes posted their biggest losses in more than three weeks at yesterday's close. right now the dow is up 64 points and let's bring in arthur lance and chairman of thunderstorm capital and portfolio manager of the dorfman value fund and the thunder storm value fund and following that live shot, john. it's apropos, the name of your fund. what are you doing here? a week of corporate crosscurrents and a lot of earnings stories out there week and what michelle was just reporting on over in europe. >> you know, i like the volatility. we just had volatility in one direction on the upside and this week, you know, i think it's healthy to have a correction and some sell-offs. we're still finding bargains and
10:08 am
they're just not the area you would think of. the consumer staples are overvalued, you know, and we're taking profits there like the procter & gambles and the kimberly-clarks and there are some areas that are trading at depressionlike levels, and some energy. it's good in a strong market like this we're still able to find markets and investors should use this volatility to their advantage. >> you're selling into any of the strength that you see? >> we're selling quite a bit. just like six months ago we recommend selling apple at 700. now we're buying, but these other companies that are hitting new highs, we're taking some profits off the table and there's a lot of companies and industries that are still trading low so, you know, we feel fortunate that it's not like 2007 where with mark and erin we were talking about everything was overvalued to get out and we're still finding some bargains and the investors have to be selective.
10:09 am
>> john, i'd call you a bull, but that wouldn't be doing it justice. you're looking for 25,000 on the dow by 2017 and you say in term of cyprus that any effect on the market is negligible at this point. aren't you underestimating what's happening over there? >> i don't think so. i think u.s. investors tend to overemphasize europe and underemphasize asia and canada and latin america. you have to go to our fifth biggest trading partner to find a european country. canada is bigger, mexico, china, japan. those are our four biggest trading partners and those are 49%. germany which is fifth is only 4% and cyprus isn't even on the map. so from the standpoint of u.s. investors it's the tempest in the tea pot. >> let me put this question another way. are you overestimated what's going on here in the united states to underpin such a bullish forecast for the dow. i'm just wondering are you anticipating corporate profits to be and whether or not you
10:10 am
think the sequester which should see the effect of if that's a big deal at all. >> well, there will have to be budget cuts behind the sequester. the sequester will not be the end of it, but the economy is recovering. i wouldn't say in spite of what the govern am hment has done. the economy is recovering of its own natural forces now. we've had 12 years of subpar growth. we've had 12 years of up and down with little net progress in the markets and people have forgotten what a strong economy and what a bull market -- a secular bull market looks like, and i think that's generally where we're headed for the next four years, so i'm predicting, as you said, 25,000 on the dow which implies a 15% compound rate of return for the next four years. >> john, can i just come back on the important points that you're making about europe. i'm not sure it's a question of what america trades with whom. it's a question of where the
10:11 am
companies that are quoted on this market make their profits and in technology, for example, 40% of those profits are made in europe and therefore europe arguably is more significant than you might think on the trade argument having said that. this is a very interesting week because cyprus has hit headlines in a scary way and yet the u.s. market has continued to trade relatively unscathed. do you think we can now say that the european crisis is not relevant to this market? >> i remember talking to a lot of clients and other individuals a few months ago when the european crisis was in the thick of things and what i said was that crises have a way of turning into problems and problems have a way of getting resolved imperfectly and gradually, and i think that's exactly what has been the course and will be the course. europe is not out of the woods, but the united states is further along than europe. if you study times when europe was in recession and we weren't,
10:12 am
our markets have done pretty well. >> but, allen, europe clearly scares you more than it obviously does john, right? >> yeah, cyprus is small and nobody can argue about that, but what it really shows is that, you know, europe is not resolved and, you know, they're not recapitalizing their banks like we did four years ago so they pushed the can down the road and they're hoping that nothing develops and snowballs beyond cyprus and that's not an area we feel comfortable with especially when we have a procter & gamble trading at 20 times earnings. so i think it will get resolved, john's right, but it will be a tedious and laborious process that will affect our economy much more so than he thinks and many investors. >> all right, gentlemen. enjoy the weekend. we'll talk to you again soon. allen lance and john dorfman. melissa? >> let's head back to market
10:13 am
headquarters for a market flash. >> the business softwaremaker forecasting second-quarter results that disappointed the street. analysts and fbr downgrade that stock to sector perform price target, 21 bucks saying it's now confronting multiple challenges including competitive pressures from companies like ibm. the stock down some 15.5% right now. melissa, back to you. >> josh lipton, thank you. >> here's a question for you out there, are diamonds an investors' best friend? tiffany's moving on a strong earnings report. the stock still has room to run. today marks the end of the 45-day go shop period and michael dell will find out if his company thinks it's worth more than he does. we'll talk to m & a veteran marshall sonnenshine for his take.
10:14 am
♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ]'ll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪
10:15 am
10:16 am
>> as we've been telling you all
10:17 am
morning. the blackberry z10 hitting shelves today. some loyal fans waited in line to buy the device and this brings us to this morning's squawk on the tweet. the only way i would stay in line for a blackberry would be if it could blank. send us a tweet and we'll air your responses throughout the morning. and later in the show we'll go to jackie deangeles who is outside an at&t store and we'll see what the lines, if there are any, are like. >> i wouldn't stand in line for anything. >> nothing? >> nothing electronics. no. absolutely not. would you? >> i don't know if i would, i never have. put it to you that way? >> you, simon? >> i don't q. >> i'm over 40, i don't cue. >> shares of tiffany, and the luxury earnings reporting better than expected fourth-quarter profit s and senior analyst with oppen heemer. >> thanks for having me on. >> the stock's seeing a nice
10:18 am
gain today up 42%. i don't get this gain because revenues are light and the guidance for the first quarter wasn't particularly good. what did you like, if anything, out of this quarter or the conference call for that matter. >> i may be if your camp. i like tiffany a lot here as i look at the stock over the next several quarters, but frankly, i'm a bit surprised by the positive reaction today. the quarter was okay, but it was not great, and it reflected a lot, the same pressures that if weighed upon tiffany it was the most of 2012. >> and yet, you still have an outperform rating on the stock. at what point does this thing go to a sector perform? >> the way i think about tiffany right now is i think the world is setting up well for tiffany, and i think if there's anything to read into the price performance of the shares today is that the market's saying we probably now have one more bad data point out of the way because what you're seeing as i look at 2013. sales comparisons get easier for
10:19 am
tiffany and frankly, given what you're talking about on the show with the equity market, the world is getting better for tiffany on a macro basis. >> on a tiffany-specific level are they getting better for tiffany? do they have the right mix of inventory in the right stores at this time? have they captured the trends? cramer was on in the past hour saying it's just not cool anymore, what they have in the stores. >> i think at the low end and i've written a lot about it in the loewen, the business has gotten tired. they are introducing a number of new products throughout 2013 and we're optimistic that those can liven up. >> so the art deco line is going to be a major catalyst for tiffany? >> it could be one of the catalysts and they're launching a lot of products with the great gatsby movie and it should bring a lot into the product mix of those. >> where are we on china, burberry, hugo boss, coach, switzerland, the watchmaker has
10:20 am
made upbeat comments about internal demand in china. is that worth backing as a fresh, new, reinvigorated dynamic. >> i think it's a positive for tiffany as some of the other luxury brands and tiffany is an up and coming brand there and a better macro backdrop in china is definitely a positive for tiffany. >> can you speak to the flagship store in new york which counts for a large chunk of overall sales. it's less than 10%, but certainly a bigger number than many people may realize and why the continued problems there? >> i don't think there's continued problems. >> sales were down there, i think, 3%. so i mean, it's not like they're going gangbusters there. >> mostly what that reflects is a difficult comparisons when you had stronger sales in the last couple of years. there's a lot of truth to that store which may have been impacted lately and there's a skew to financial markets and the ongoing issues with wall street and such.
10:21 am
so that's probably explained some of the weakness we've seen in the flagship store lately. >> japan is an important market for tiffany. how weak are you allowing the yen to get? at what point do they get in terms of profits? they're talking about a yen to dollar ratio of .9. so i think japan, where the expectations are now, japan is a non-event for tiffany as we go to 2013. >> brian nagle, oppenheimer. a vote to collect sales tax from all out of state internet retailers will take place in the senate today. inevitably, it has a lot of support from the big box retailers in particular. let's bring in john harwood who is live from d.c. though this may just be a symbolic vote, weir to are told john. >> symbolic, but not meaningl s
10:22 am
meaningless. it's a spring training of sorts to test opinion within congress on various causes. we saw a vote yesterday on the budget resolution, on the repeal of a medical device tax that was included to help finance the national health care law in the early part of the obama administration. the reason it's spring training is that budget resolutions themselves are not lost. so these are not binding votes, but they're a way to test sent ims for what they make later on and that's what we're seeing on the online sales tax situation. 48 states already have laws on the books requiring online retailers to collect state sales tax, but those laws are often ignored and you have a bill that has some bipartisan support that would require all states to collect those taxes. if split, the big box brick and mortar retailers from online sellers and it's also split some of the online community. amazon is supporting this, but ebay is against it.
10:23 am
they're looking for a carveout for their business model. so what we're going to see is does this effort to collect these taxes have more than 60 votes? if it does, that's going give momentum to this cause later on in the congress, maybe give a push to the effort in the house although it's going to run into the difficult anti-tax sentiment in the house among republicans. so not by a long shot is this thing close to passage, but at least we'll find out whether it has a chance of passage later on in this congress, simon. >> we'll come back to you later in the program, thank you, john. john harwood live from washington. our local partners in italy are reporting now that because this may develop over the weekend that the center left leader pisani in italy has been asked by the president to attempt to form a government. it is not clear whether he'll be able to do that or whether we'll still go to a caretaker government until there are fresh elections and there may be movement on this over the
10:24 am
weekend particularly if he can do a deal with berlusconi. in the meantime we have breaking news. >> it's not breaking news. reuters is sending it to session highs above 130 against the u.s. dollar. reuters is quoting, and i want to be very careful with this, but reuters is quoting the deputy leader of the island's ruling democrat party ruling that a solution to cyprus's bailout crisis could be within houris. >> want to explain what is happening here. essentially they didn't get a deal from russia so they're being forced back to the european union. the stuff you see michelle talking about is all an attempt to do a deal a, that will get through parliament and secondly, that the rest of europe will agree to to a, give them $10 billion to prop up the banks and secondly that there would be enough there on some sort of giveback from the private sector and be that on the levy on the banks that we've spoken about so many times. >> we had crossed above the 130 mark against the dollar and we
10:25 am
are close to session highs in the u.s. this is according to reports, very fluid situation, but we are seeing the reaction in the currency markets so far. >> up next on the program. housing stocks continue to be on a tear in 2013 as we near the end of the first quarter, and we're taking the temperature of that sector next. still ahead, after months of speculation and height, consumers can finally get their hands on the new blackberry z10 this morning. what's at stake for the company and what is now the outlook for the stock. we're back in two minutes.
10:26 am
10:27 am
10:28 am
>> welcome back. all day on cnbc we're taking a look at the hottest sectors in the market right now. brian secretary of stahactman i. home would abouters have been one focus, of course. let's take a look at one year of pulte group. 100% in a year's time puts it all if perspective and we've talked about the home depots and the lowe's of the world and they're also involved in the conversation. what we wanted to do was go a little more into the house. maybe that's where you can still find value here. take whirlpool.
10:29 am
the home appliancemaker is up 48% in the last year and it remains several points in a new high and bank of america, merrill lynch remains with a 140 price target and if you want a global name that's not headquartered in the u.s. look at electrolux basically flat for the year and don't forget samsung, they're in electronics all over the world and they have a home appliance business with what they're doing with tvs and the smartphone sector and newell rubbermaid. it has outperformed the broader market year to date and yields 2.4% which is above the s&p average. citi has a buy rating on it and sees a better than 13% share appreciation for the year. foib finally, i want to talk about legget and plat and yield's 3.5% and it makes everything from bed frames and countertops and they're diversified and somewhat leveraged to the auto industry and they do trimmings inside the
10:30 am
cars and involved in jc penney's store and if you want a yield, the 130-year-old company may be something to look at. melissa, back to you. >> shactman, thanks so much. from hot sectors to a hot, very hot march madness game. in case you missed it. harvard upset new mexico 68-62. it was the crimson's first-ever ncaa win. the lost most proving to be a bracket buster for quite a few people out there. take a look at this tweet from the harvard lampoon, america, we are sorry for messing up your brackets and also your financial system and everything else. >> we should have kept shac around. actually, i think kern insaid that brian shactman probably picked harvard in that game. >> really? >> i didn't even pick harvard. >> you're a harvard girl. >> yeah. i'm a graduate, and i had my doubts, but go crimson.
10:31 am
>> it's not often they got the pull-ups. >> princeton and they fell arc part. >> isn't jeremy lin from harvard? >> there's this amazing photo of him, he's just on the ground in disbelief. >> i'm sure as a lot of people are and some brackets are on the ground now, too. >> still ahead on the program. whispers are out, but the date could be june 29th, d-day for the new iphone 5s and indeed apple's ipad 5 and we'll separate fact from fiction and what it means for your money with gene munster. much more on the story of the moment. very tense scenes in cyprus as it attempts to do a deal with the rest of europe before it withdraws funding on monday. find the solution or not. will it be a big event risk for your portfolio or not? that's next on cnbc. [ male announcer ] i've seen incredible things.
10:32 am
10:33 am
otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪
10:34 am
customers will be able to get their hands on the blackberry z10 today. she joins us live from new york city. long-awaited debut. long lines or not? >> reporter: good morning, guys. well, it is a big day for black berry is ceo thufrton heinz and i will tell you the lines didn't materialize and so far in the store we've only sold seven
10:35 am
phones. they have a preorder system in lace and many people are expecting to get this later in the mail when they get home and not so sure at this point. in terms of blackberry, will this be the reversal of fortune or is this phone going to fall flat on its face? it's interesting to note that you have a lot of signage, a big display here for the iphone 5 and when you come here you see the z10 is mixed in with all of the other phones and no signs and that's a relationship that blackberry would work out with at&t. at&t doesn't make those decisions exclusively, but i can tell you this. i've got the phone here and it's been interesting to look at. it's got the apps the same way the iphone does and let me try to find them for you, but at the same time it's not that easy to use. i don't know if they were just trying to make it different from the iphone. it seems a little counterintuitive to me, and maybe i'd have to have it a few more days to get the feel of it. this is the phone that doesn't have the keyboard and the keyboard is what so many blackberry users come to this brand for.
10:36 am
>> that's one of my biggest reasons for blackberry was of the keyboard. the text looks really cool. i think i can manage with it. i've played with touchscreen phones before and i haven't been impressed but this looks really good. it looks exciting. >> that said, analysts say it doesn't have to compete with the iphone and knock it out of the park here. what the z10 has to do is hold on to its loyal customer and it has to gain a little bit of new share. remember, blackberry share has dropped to 8% according to com score and that's compared to google's 54% share and apple's 34% share and it's their 199.99 if you buy it with the two-yore contract with the store. it's 550 if you buy it alone and it will go on sale with other retailers including verizon next week. back to you, guys. >> from black behr toe apple and apple with news that june 29th could be the release day of
10:37 am
apple's ipad5. rocco pendola, writer with social media. >> good to be with you. >> they're coming out late and that at the end of the day samsung and for that matter, blackberry will have this window of time in which no new apple product is out there and so the eyeballs will go to samsung and black berry is that perhaps apple could be missing out on sales. would you say that's fair or is that being too harsh? >> i don't think it's too harsh, but one thing i've gone back to and one thing i thought about, i'm speaking about an irk phone 5 i and i have a mack book pro in front of me and they work really well. i don't want to see them change too much. i kind of like the idea of being revolutionary and what we'll see
10:38 am
is the and apple would help companies like square take the next step like mobile payments and that's great innovation and millions of people who love these devices will continue to buy them and continue to love them because of the small changes. if they change too much, the last report in blackberry was fantastic where she says it's kind of hard to use because it's so different, you know? if it ain't broke, don't fix it. so if it doesn't change much, that's a good thing. they need to do something else that is new and is big to prove they can still innovate. they don't need to change what's working. >> rocco, let me just talk about europe momentarily. american corporate is littered to understand the power of bureaucracy and we have the new york times and it's a huge market for apple. european regulators are looking into those contracts that apple strikes with carriers we just saw with the deals that they've
10:39 am
done with at&t. if those carrier contracts are unwound or the european union worked to force them to be broken up, presumably, that's quite serious for apple, isn't it? >> of course, it is. people speak about the end of the subsidies here in the states and i'm one of the people that doesn't believe the wireless carriers, at least at this point to have the guts to do anything major, but yeah, if they basically say, you know, apple has controlled this relationship with the wireless carriers and we're going to squash it through the legislative process, it would be huge because you'll pay 600 bucks for a phone as opposed to getting it subsidized and the subsidies aren't that big in europe as compared to the states so it's a big deal. i don't think the thing out this morning about the warranty news that apple is pushing these
10:40 am
wasn warranties in the european union is a big deal. that's sort of, unfortunately, probably common place throughout a lot of retail. >> rocco, thanks for phoning in. >> rocco pendola of the melissa to cable, an interesting new appointment coming in on via com's board of directors. deborah norv ilof "inside edition" being chosen. this as via com's board goes to 13 members. >> that's right. viacom is looking to expand the diversity of its board appointing deborah norville, anchor of "inside edition" is a particularly unusual move. she'll be the only television anchor to sit on the board of a media conglomerate and we can't find any other talents sitting on boards in the past. the criticism that norville doesn't have business experience, she has a 30-plus
10:41 am
year career in media so she's very familiar with the workings of the business which adds valuable diversity to the board. >> tony rival says the surprise move should, quote, round out the perspective of the board, but that she's an unknown variable given her limited history. david miller calls it an interesting choice considering that vie viacom doesn't operate networks, but he says the company, quote, probably saw an opportunity to add a female director with the wealth of experience in media and social and political issues. viacom's other employment christianna falcone sorrell, is from the world economic forum and happens to be married to sir martin sorrell from wpp. as to questions as to whether that poses a conflict of interest, viacom tells me that, quote, ad sales, negotiations and agreements would never rise to the level of the board and that if any conflicts be arise,
10:42 am
she would recuse herself. scott? >> all right. julia, thanks so much. interesting, clearly. >> it really begs the question, if they'll put tv anchors on boards which boards would you like to join? >> which board would you join? >> apple. i was just going say, there's no board to serve in the media space other than comcast. >> oh, that's very good. >> mine would be diageo. much more fun. >> oh, yeah. that would be a good one. >> think about the christmas parties. the christmas parties would be awesome. >> that's a good point. >> speaking of retail. >> one retail name being read today, let's send it over to josh lipton. >> lululemon is a laggard today in the reddam ied the pants recall. lulu, of course, had to recall workout pants that were a little too transparent. analysts at clsa not pleased. they cut lululemon to sell and slashed the price target from 79 to 55, saying lulu took its eye off the ball and needs to focus
10:43 am
on details, process and execution as it adds complexity to the business and lulu down some 3% right now. simon, back to you. >> 79 points on the dow. after the break, will the situation in cyprus get sorted out over the weekend as the countdown to monday's deadline looms. in other words, how should you position yourself now for the event risk over the weekend? barclays chief international economist weighs in. looks like most people in the market are pretty optomistic. hes also offers ereturn-- our fastest way to return your car. just note your mileage and zap ! you're outta there ! we'll e-mail your receipt in a flash, too. it's just another way you'll be traveling at the speed of hertz.
10:44 am
10:45 am
10:46 am
cypress over the next if you hours. what does it mean for you and your portfolio. what is an event risk and thou do you position for it? julia is live from barclays capital in london. you know a huge amount. can you simplify it down for us? how does this get solved and what does it mean for investors? >> i think the problem in cyprus with regard to two of the big banks that are there, and i think the plan is going to be to
10:47 am
ensure that these are somehow recapitalize the confidence can return to those entities and that in turn, you can stabilize the deposit situation in cyprus and cyprus, of course, can remain in the area. it sounds easy, but of course, there are people in your honor who are wanting to see significant haircuts on some of the deposits in cyprus, particularly as many of those deposits have actually been coming from outside of cyprus. >> yes. >> that's a really sticky issue to be resolving here, and i think that there really isn't an option, but to have some kind of agreement, because if cyprus doesn't achieve an agreement here and the ecb then cuts credit lines to cyprus banks which it publicly announced it could do just yesterday to announce that by monday if nothing is agreed.
10:48 am
well, then, that would be extremely serious. >> sure. >> because if you don't have ecb support you would have to leave it and that, in turn, would raise a lot of question marks and there isn't an option, but to try to fix this, and i think there were ideas floating around reports that you might get some kind of bad bank situation set up that could be absorbing the mpls of the banks that have issues there, but does require the capital to be found for the recapitalization. >> you know, julian.merkel is a furious as to why the cypriot finance minister spent so many days in russia talking to them and not the european union and left that hanging in the air as to whether the russians led them on. this is a two-stage process. first of all, that i have to do some sort of deal in cyprus and then they have to get it approved by the rest of europe. i know millions of americans will say why the hell doesn't cyprus just leave the eurozone.
10:49 am
why does it have to go backhand in hand to the rest of europe? what would happen if they didn't get their banks propped up. >> i think if they don't succeed the ecb issued a very important ultimatum and it's never, ever, publicly done that before in the history, and that would be very important if cyprus were to leave because it was predicated on the mastrick treaty and the exchange rates shall be irreversible and that was the phrase being used. the whole condition of the euro has been that once you go in you cannot get out. now if a country does leave for whatever reason, that sets a really important precedent. even though it's a very small country the population was 0.3% of the eurozone and it's the precedent that really counts and people will start asking questions in other countries as well at some point. >> i get that. i get that and i understand why the rest of europe would worry
10:50 am
if they left, but what the american audience would say why don't you just adopt a ten-part currency and effectively devalue and then it will be easier for people to go on holiday to cyprus. yes, you might have lost your patience with your bank accounts, but structurally you'd be in the right place. is it in the interest of the cypriots if you would. >> i think there, of course, the economy is dependent on tourism and having the euro. there's also a very, very large financial sector in cyprus. if you add together real estate activities, banking and insurance and it accounts to 20% of gdp, very, very high share so they need to restructure the banking sector. what what may and that requires a lot of support and cyprus is much better doing that within the euro area in my view. >> julie, it's good to see you. julian live from barclays
10:51 am
capital in london. >> after the break, is three a crowd? it is a tall order, but someone's got to do it. we're back in two. had experienced performance
10:52 am
10:53 am
10:54 am
welcome back to "squawk on the street" and the last rendition of the santelli exchange for the week. a the post crisis period is entering the fifth year. so father time, of course, helps things heal. some programs help in other ways. exactly what the split is impossible to tell. what's real? what's not real? we know that the economy is doing better in many regards. we don't know how much or how little these programs have kicked in. that's a hard place to be. it's even harder if you're looking at housing. housing created the crisis. it caused it. you can say it's more than five years post housing's big explosion. and since what are we left with? we still have the gszs. the government sponsored zombies
10:55 am
and they're still doing 90% of the mortgage activity. if you look at fannie and freddie, the losses have stopped. the condominiums in florida, things are starts to move. this could create a worse dynamic. think price controls. we're littered in history. whether it's the post french revolution, some of the shortages they experience. these are government intervention ands that lead to inequitable relationships between supply and demand. for people at my age. think about the lines at gas stages when people got involved with issues that affected supply and demand. is it really different in housing? it's all about time and pain. i would rather have a real housing market. why hasn't one sprung up? why aren't banks more active? because there's no money in it.
10:56 am
the risk reward to institutions outside of the 90% financing doesn't make sense to banks. when are we going to learn our lesson? this goes back to the fundamentals of capitalism. granted we would have pain in a smaller period of time. that's it. fannie and freddie are not going to do more financing. it would be a bit tight to buy or resell houses. at some new rate of interest where banks think they could make money making you loan on houses, the industry would start to come back. well, those arguments didn't seem very good in '08 because everybody wanted a quick fix. but as time seizes the issue, somebody out there needs to wake up. we need to get back to where the government is not price controlling the mortgage market, like they have in energy. like they have in grains. think jimmy carter. the best way for everybody to be
10:57 am
able to interact buying a house would be for the private sector to take care of funding. the only way the prift sector is going to come back is if the private sector clears the zone. a $4 million baseball card? we'll show it to you next. and the blackberry z10 is hitting shelves today. the only way i would stand in line for a blackberry would be if it could --. we'll share your responses next. departure. hertz gold plus rewards also offers ereturn-- our fastest way to return your car. just note your mileage and zap ! you're outta there ! we'll e-mail your receipt in a flash, too. it's just another way you'll be traveling at the speed of hertz. ♪ 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.
10:58 am
ask your financial professional how lincoln financial can help you take charge of your future. ♪ ♪ oh, oh, all the way ♪ oh, oh [ male announcer ] this is a reason to look twice. the stunning lexus es. get great values on your favorite lexus models during the command performance sales event. this is it of perfection.
10:59 am
a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪
11:00 am
one of the most coveted baseball cards ever made is at the center of a bidding war going on right now. it has already hit seven figures. the money keeps rolling in. it's today's million dollar minute. it's the holy grail for card collectors. >> it's the single most valuable baseball card ever produced. >> this is known as the jumbo wagner. to get it in this condition with the extra border and clean back is unheard of. >> over a century ago tobacco
11:01 am
companies promoted cigarettes by inserting baseball cards in the pack, but the biggest nabl in professional baseball forced a recall of his cards. >> the rumor goes that he did not want his card to have to be purchased by kids buying tobacco. >> only about 50 cards survived. this jumbo wagner is one of the best. >> it's graded as an excellent five. there are only three cards in the world that are graded a five or better. >> during the height of the financial crisis this card fetched $1.6 million at auction. now it's up for grabs again. >> this card very easily could go over $3 million and would not shock me if it goes over $4 million. >> wow. this isn't the baseball card that was in treasure detectives on cnbc prime time, was it? >> no, it's not. and that card from last week, that card has proven to be a fake. this is one of three cards that
11:02 am
are graded five or better of wagner. this is the real deal. a grade three card was sold for $1.2 million. this is another category. the economy is going better. the boom in collectibles goes far beyond art and cars and things we talk about usually. comic books selling typically for $1 million or more for the prized batman and spider man. so this reaches way beyond the usual categories. >> it's anything of limited supply that you cannot go back. why is it called a jumbo? >> i i think because it's in perfect condition front and back, graded five or higher. there are only three of these. it's unclear what it will sell for. the last one sold during the heat of the fm crisis. again in the seven figures. this one is already up to 1.4.
11:03 am
bidders have a chance to bid on this thing. it will probably gost past $3 million. zl come back and let us know how it goes. >> i will, i will. >> scott, thank you very much. >> it's been a pleasure. it's been real fun. >> thank you very much. we'll see you at the halftime report. if you're just tuning in good morning. this is what you've missed so far. >> welcome to hour three of "squawk on the street." here's what's happening so far. >> you're going to have to have a strong flexible central bank and the ecb will have to have lots and lots of credibility. so i think it's doing the right thing. >> there's no bank in the whole world, including the ones we're involved in that can withstand a real run. all banks borrow short and end long. >> these banks are considered rogue banks. and if they're rogue banks,
11:04 am
there's a moral hazard. this is lehman. we want to teach people a lesson. i disagree. >> yeah, this is not too big to fail. >> they got it right this corner. not as bad as the rally. >> there's going to be a flattened soda condition inside the blue box and you're just happy that it's a blue box. >> your company figures out if they make sense. >> a little more than makes sense. twhast the downstream revenue or business event that that investment is drive sng. >> well, it's good in a strong market that we're still able to find bar fwans. investors should use the volatility to their advantage. >> good friday morning. we are live here at the new york stock exchange. let's get a cheak on the markets and how we're fairing so far in
11:05 am
the session. the dow is going to close positive for the week. the number to hit is 14,501. if it does that it will be the fifth consecutive weeks of gains. up 80 points at this hour. shares of nike soaring after reporting better than expected quarterly results. that move is pushing other athletic names higher. and following more than 15% of the first quarter revenue results. the stock also getting hit with three different downgrades this morning. >> okay. markets are shooting higher, erasing yesterday's losses as investors worry less about the situation in cyprus. find out what it all means for your mown and how you should position yourself for the weekend and spring. and blackberry fans rejoice. the z10 is on sale in the united states. will it translate on the upside
11:06 am
for the stock? and it's deadline day for rival bitters on dell. will they try to outbid michael dell? we'll have a wall street veteran weigh in. >> let's get straight to the markets that are higher despite uncertainty in cyprus. as we head into the weekend, how should you position your portfolio? patrick works at brandywine global. david is a senior strategist at ubs management. great to speak to you both. david, start start off with you. at this phase of the run, which sector should be overweight in a portfolio? >> i think at this point the bull run is getting longer. the you look over the last year or so we've seen it's really been evaluation expansion that's been the story driving markets. from here it's more about earnings growth. you want to be focused on the
11:07 am
sectors that can grow earnings. the technology sector, the material sector, and the industrial sector are all going to benefit from the pickup in economic activity that we're seeing both here and abroad. >> i'm wondering why you think there's a reluctance at this stage in the bull market. everybody ating for a pullback to get in. there's a pull back for what should be in one's portfolio at this stage. like investors are skept ical o the situation. >> yeah, i think you're right. that's why there is an opportunity. investors have been hesitant to take on additional risk. the events of cyprus and europe remind of us why that is the case. but in my mind, that's an opportunity.
11:08 am
that's where the locations are. and if you're looking for value in this market it's clearly not in the defensive areas. zbloo patrick, why is your biggest position jpmorgan. >> why now if you think the economy is improving you want to be in financials like the industrials. so jpmorgan will benefit from the rising rates. they have the strongest balance sheets in the world. so a lot of the same things. if you want to be positioned for economic growth, the financials are also a very attractive area and jpmorgan is obviously a leader there. >> you must have the patience of a saint to be holding bp still. >> yes, it's been a rough ride. one thing we believe is whether it be the financialing 18 to 24 months ago or bp, a lot of time
11:09 am
that prevents the best opportunity. it has great cash flow. it has a real catalyst. the stock is up today. that deal is closed. if bp can do for rosneth what id did for dnk, it will be very attractive. >> i want to go back to the sectors you like. materials is one sector that you like. which part of the energy do you like right sno. >> we're neutral on energy. but the areas are the oil field services. we're getting toward the later stages of the economic cycle, and that's usually when you see a tightening of the oil markets and need to ramp up activity.
11:10 am
if you look at budgets of the super major oil companies, that is what you are seeing. we're seeing a pickup in capital spending. if you look internationally, that's really the best opportunity. >> all right. 're going to leave it there. patrick and david, thank you for joining us. have a great weekend. >> thank you. let's turn to europe, that is the big question mark over the weekend. the cypriot finance minister flying home after two days of waste talks. leaders are scrambling to attempt to strike a deal with the european union by next week. michelle is live from the capital of cyprus. from outside the country, we read that they're furious they
11:11 am
haven't been speaking for so many days. similarly many of the suggestions coming from the greek government, nationalizing the pension system of being rejected by hand. this is going to be a very long weekend if they get a result. >> reporter: it is. what you are saying is correct about lack of communication with the government, and i have to tell you, here it's beginning to feel chaotic. it's hard to know if this is something to be extremely worried about, the disarray around us, or if this is what happens right before they stair into the financial abyss and have to make strong decisions.
11:12 am
that's what they're going to do. they're going to wind down at least one bank. that's why we have protesters. the members of parliament don't want to wind down the bank. that means uninsured depositdep will. we had a long conversation with a lot of journalists about what was happening. we started asking what kind of responsibility do you have? did you bank buy so much greek debt? this is what he said. the fact yours don't belong to the bank? >> the failures started from various sources and various issues that need to be considered. this is where it all started.
11:13 am
it was exercised by cyprus to help greece and now cyprus is paying the cost. >> reporter: yeah, cyprus is definitely paying the cost, but also the very large banking system. bottom line, if they shut down one bank, it gets them to the 3 billion euro mark roughly. if they shut down two banks, that's plenty. cyprus would be extremely unhappy with that. i don't know how this is going to play out. these people have to make very hard decisions. >> it's all about sacrifice. michelle, talk to you later. blackberry fans out there are probably happy. we'll get a first read on sales and consumer interest. rick santelli. what are you working on for later in the show? >>.
11:14 am
>> the big talk has been interest rates. are they going to go up? but there's something going on that we can measure. portfolio managers expressing their embarrassment for rates to move higher. ray stone, one of the founding members of stone mccarthy research and he has some very interesting trends that might surprise you.
11:15 am
because what you don'tu know can hurt you.rance. what if you didn't know that weeping willows have invasive roots? what if you didn't know that a trampoline... could affect your liability? and what if you didn't know that most cars... get broken into when the weather warms up? here, buddy. the more you know, the better you can plan for what's ahead. get smarter about your insurance. ♪ we are farmers bum - pa -dum, bum - bum - bum - bum ♪
11:16 am
11:17 am
the dow is up 72. the sector is up nearly 12% so far this year. they've had a very bad week. let's go to josh lipton for more on trucking. >> check out old dominion rolling higher. raesing the estimate for growth in the first quarter. 4.5 to 5%. that's up from the previous range. analysts reminding us they often serve as economic indicators, signaling when a recession is comin coming. >> thank you very much. a new ticker, ha new phone and a
11:18 am
new operating system. blackberry is trying to reinvent itself and hope sales will take suit. the blackberry z10 hits the shelves around america. you have brought a z10 in with you. >> i have. i've got mine. >> did you pay for that? >> they gave it to me so i was able to use it for quite some time. >> and you still have a sell on the stock. >> i do. they have done a nice job in rolling out the z10 i still don't think it's enough to turn them around. >> what is enough in your view? >> yo need vol that is compelling for people to fa for the says price as an iphone or a new android. the e-mail is decent. the keyboard is decent.
11:19 am
it's still not nearly as ro butt as apple or google. >> if you didn't know of the price point, would you say it's an inferior experience to apple right snou? >> i would. >> you would? >> yeah. you also don't have the depth of the services that each of those companies brings. >> but in order to succeed, couldn't the success be to get people who have the blackberry to upgrade? >> that's a great point. the there are 79 million subscribers using blackberries. the company's goal is to rotate some of the people on a new platform. >> yeah, and that's around $120.
11:20 am
this is $599. right? >> we're trading at 16.31. you're pulling it down to $7. >> correct. >> what catastrophe do you see that the stock isn't reflecting at the moment? >> the stock is over 35% today. it's on enthusiasm and expectations for the platform. we haven't seen any actual hard data. we're going to get our first look when they print the quarter next thursday after the market closes. and the concern is like many other recent efforts that the reality will not much the expectations. they need to sell north of 5 million of these per quarter to have a viable country. >> they don't have to make much money on the device but they do on the service. how do you come up with $7? >> that's also a great point. the service side of the business
11:21 am
is the highest margin piece. if they can really sell these for $600, you may get margin back to the hand set piece. but the service side of the business is also in decline. i think we'll see the cyber growth continue to decline in the current quarter. >> doid yid you say they have tl 5 million? >> yes. >> didn't they already sell one million? >> there was a lack of detail in the announcement. >> do you doubt it? >> i don't think you'll see one million sold. i think there's a distributor that wants to take down a million units. you have to monitor very closely. sell into the channel and through to the customer.
11:22 am
but watch the cash flow. make sure they're getting paid for that and if they're goinging through to the customer. >> have a good weekend. enjoy your time. >> i will. shares of tiffany rising. will the stock keep sparkling? tdd#: 1-800-345-2550 when i'm trading, i'm totally focused.
11:23 am
tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 gives me tools that help me find opportunities more easily. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1-800-345-2550 and with schwab mobile, tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime. tdd#: 1-800-345-2550 until i choose to focus on something else. tdd#: 1-800-345-2550 all this with no trade minimums. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 open an account with a $50,000 deposit,
11:24 am
tdd#: 1-800-345-2550 and get 6 months commission-free trades. tdd#: 1-800-345-2550 call 1-866-294-5373. at a hertz expressrent kiosk, you can rent a car without a reservation... and without a line. now that's a fast car. it's just another way you'll be traveling at the speed of hertz. today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers.
11:25 am
now to rick santelli with a look at treasuries. hi, rick. >> hi. i would like to welcome our special guest. dr. ray stone. welcome, sir. >> thank you, rick.
11:26 am
listen, there's many ways to look at a market an ascertain if the biggest players are bullish or bearish. there's a lot of bull/bear cinnamon surveys out there. you ask portfolio managers much more in depth questions and you look at actual versus targeted during ration. and you see it shrinking and dropping to 97.8% where it is the lowest in many years. can you explain? >> well, you're exactly right. our survey goes back to 1991. it's a weekly survey. and we ask specifically about metrics like duration. that gives a better sense to what they are actually doing.
11:27 am
the most recent reading showed a decline in duration to about 97.5%. this is the shortest they had been in some time. what it tells us is that portfolio managers are thinking interest rates are probably going to go up. therefore they want a short duration. this survey tends to be usually a leading indicator or at least a coincidental end cay tor of bond prices. so in a way we're not sure how to interpret it. will this continue and yields rise, or is this something oversold and you can bounce back in the other direction?
11:28 am
>> now, considering we were hoerpting in an environment that can be only described as alice in wonder land, how does the fed managing interest rates play into the interpretation of your survey. or does it at all in your opinion? >> well, i'm not sure if they do look at our survey or not. the reading i would take away is more and more are of the view they may start tweaking with the bond buying program. >> now from my perspective. let me make an assumption. let me say in my opinion i don't think they're going to pull back in a big way any time soon from some of these programs. so i guess the question i'm going to ask you this, is the bearish news showing up in con
11:29 am
treat terms, not just opinion in your survey, should the interest rates remain tame and they actually have been dropping, what you are saying is that this could be a contrary indicator that's big out there. it can create a spiral where they need to run in and buy futures if rates start to drop. could that not be true as well? >> well, rick, i think you're right in thinking that is a possibility. we don't know for issue if this is a contrary reader or not. if you have reasons to be bullish, maybe that's the way you want to interpret it. we don't know. time will tell. i think there is a chance that the fed may tweak the bond buying program. maybe as soon as say the june fmoc meeting. right now they're buying $85
11:30 am
billion a month. maybe they go dun to 75 or something. >> i got it. well, mr. stone, we are out of time. i really like this survey. it's been the talk of the town the last week or so. i would like to have you back, should there be any changes in the buyback program. you haven't been on cnbc since 2011. glad you're back. >> well, thank you for that. >> all right. let's shoot it back to simon. >> thanks, rick. could be a rough spring if you're right. retailers have been some of the biggest movers up and down in recent days. we'll find out which names for the high end to discount are in the best position now moving the forward. and dell is outpampling the markets and michael dell and silver link announce the bid to take the market private. hugely controversial on the price. what happens if a rival bidder emerges? today should be the day the ceo of a.p. firm, the private equity
11:31 am
firm will give us his analysis. [ male announcer ] i've seen incredible things. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history...
11:32 am
we're making it. but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.
11:33 am
we're up almost triple digits on the dow and we just turned positive for the week. 11:31 on wall street. the dow component is up now 44 pk.
11:34 am
44% in the past year. two ipos in opposite directions this morning. five oaks, a firm that invests in mortgage backed security is trading below the ipo price of $15 a share. and falling 5% in today's session so far. the so-called fear gauge if you still call it that is still up 18% on the week overall. >> now let's get to bob pisani for what's moving on the big board. and bob, we are now positive for the week apparently. >> well, we were around 93 or so. we're right on the cusp. >> yes. that's very good news. it would have been the worst week of the year. flat is the worst week of the year. two for one advancing to declining stocks. europe kind of makes today. japan is down 2%.
11:35 am
i just want to point out what's going on here. you can give the illusion that things are great. it priced at 14. this is great news if you're an insider and you owned it at the inside price. but if you bought it at 19, nour not particularly happy right now. i would say it's a slight disapointment that it's not holding up. take a look also at five oaks investment. opened at 14.50 and has basically held right here. if you bought it at the open, 14.57 is where it is. the phone service provider. opened at 19. priced at 20. i would say this is a fairly mixed morning here for ipos. and overall it's been a pretty good week. we'll get pinnacle next week.
11:36 am
a lot of other famous food manufacturers. we had a stock split yesterday. sales force came out with a 4 for 4 stock split. we don't get that much anymore. in the glory days we had stock splits all the time. it's not changing the stock. the prices have gone up a lot. here's some data from stan doord and poors that i got. the average price of s&p 500 is at an all time record. look at that. doubled since 2008. the percentage of stocks over $75 firely one-fourth of the s&p 500. that's high priced territory. i think a lot of these people are very happy with higher priceses. maybe happier than they used to be. we'll see if we get more stock splits. so far the answer is no. five trading days left in the quarter. i know this hasn't been a big up
11:37 am
move. but look at these numbers. nasdaq is also on the upside. it's been a great quarter overall. i think we will. i think a lot of people are very comfortable. remember the idea is lths get them low so a lot of people can buy them? i'm not sure that's a priority anymore. if you would have you would see more splits than we see now. >> thank you, bob. let's get a check on energy and commodity shares. sharon ep r son is live. >> hi, we're not seeing much movement in the oil prices. a lot of traders are waiting to see what develops in cyprus. there is still concern about what that might means in terms of any effect for european energy demand as we get weak economic data out of the zone this week. we're also watching what's happening with natural gas.
11:38 am
we are seeing colder weather temperatures forecast for the next week or so. and that is likely to continue to be supportive of natural gas. many are looking protectively at a rice of natural gas prices, too. and in terms of the gold price again as we wait to see what happens in europe and wait to see what happens with cyprus, that is what really kept gold prices at bay. it's been like this a whole week. and that is still significant. >> sharon, thank you vsh much. the view from the imax. let's have a look at nike stock today. it's having a great morning. we have not seen it for four years in the wake of the earning. brian shactman is with us.
11:39 am
>> you look at the headline numbers and may wonder why. it was impressive. the revenue was roughly in line. all good. justifying in this kind of pop. in all three areas where the question marks went to earnings. nike answered all of them with authority. first, north american futures. the nike products are up 11%. just doing gang buster business in this part of the world. they had an inventory nightmare over there. they were expected to be negative in futures. a surprise positive signals a turnaround. they've had compression for almost two and a half years. showing expansion is a big deal. one note of caution. despite futures growth revenue was down 10%.
11:40 am
however, not everyone flocked to the day after upgrade. with tracy writing we believe that this is warranted. and as melissa noted earlier, it's worth revisiting a whole sector. under armour, dicks, new york key, all having rise iing numbe. this is about the outsized strength in north america with the names are so highly leveraged. >> nike is not the only retailer on the move today. tiffany up more than 2% after reporting better than expected sales. shares are down another percent today. which retailers are better suited for your portfolio? stacy is the president of sw adviser. let's start with nike. we are seeing this effect in the
11:41 am
likes of a footlocker, finish line and under armour. i'm wondering if you think all the extrapolations are fair and warranted. >> i think we had dick's come out and give us a disappointing numb. then new york key says gross profits are up. they're telling us they're able to pass on pricing, which is a big deal. that applies, maybe they can get back to their peak gross margin. the big deal is china is turning around after all the inventory that they're trying to work through. future orders are up. that's the big deal here. >> and why are they able to traz the prices and the markets still hold in. is that because of a demand that consumes more. or is it because of nike's innovation.
11:42 am
>> well there were lower input costs this quarter. they were able to pass on 3% price indegrees increase. that tells you the innovation in the product is really working and the consumer is willing to pay out for it. so definitely how they're innovating is working and they'll be able to pass on the prices. >> let's switch gears a little bit. the stock is reacting positively to this quarter, which did seem like a mixed bag. revenues kale in light. first quarter guidance was not good. do you like tiffany here? are you getting more positive about the story? >> well, the stock is rallying because two months ago they gave us initial guidance saying up 6% to 9%. however, they walloped q1 and said it will be down 15% to 20%. i'm having deja vu of last year
11:43 am
when they told us that all of the earnings would be back half weighted. the fact they basically said you're intact but then left q1 leaves you skeptical. and certainly the two-year trends on the sales line decelerated significantly. >> mulberry is having a terrible day. mainly in the uk. as you look across the sector and with what tiffany is saying about china, where are you left on luxury? >> well, mulberry said tourism in london is slowing down in terms of spending. you are hearing exactly the
11:44 am
opposite from the other luxury brands. people who live in china are traveling to london, to paris because it's cheaper. and they're purchasing here. so a lot of the brands are seeing the strength here. so mulberry was telling us the exact opposite of what we're hearing. but that's been the trend for quite some time now. the chinese are traveling, and they're spending overseas and they're cutting back on mainland. and also the government is saying these extravagant corporation gift giving days is over. and that's also potentially an issue for tiffany. >> they're cracking down on government spending and gift giving. stacy, great to see you. d today is the day for rival bidders to make a bid on dell. and cutbacks in the sky.
11:45 am
airports across are country are facing cuts. we'll tell you which ones and how it could affect your travel plans when we come back. ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market. ♪ all on thinkorswim. from td ameritrade. omnipotent of opportunity. you know how to mix business... with business. and from national. because only national lets you choose any car in the aisle. and go. you can even take a full-size or above. and still pay the mid-size price.
11:46 am
i could get used to this. [ male announcer ] yes, you could business pro. yes, you could. go national. go like a pro. yes, you could. today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers. it's lots of things. all waking up. ♪ becoming part of the global phenomenon we call the internet of everything. ♪ trees will talk to networks will talk to scientists about climate change.
11:47 am
cars will talk to road sensors will talk to stoplights about traffic efficiency. the ambulance will talk to patient records will talk to doctors about saving lives. it's going to be amazing. and exciting. and maybe, most remarkably, not that far away. the next big thing? we're going to wake the world up. ♪ and watch, with eyes wide, as it gets to work. ♪ cisco. tomorrow starts here. ♪ . stocks rally and our traders have the best place right now.
11:48 am
morning star is the ultimate stock picker. he is going to be here with his best picks as well. tiffany beach, we're going to have a big debate about where that goes from here and bear stearns five years later. the anniversary of the deal. now we have the ceo of chase wealth management. he was there. now this charge of a group running about $106 billion. we'll reflect on the past and talk about the markets. 10% gain here. #. >> the top performing stock on the nasdaq. they posted a quarterly loss but the strong outlook is getting everybody excited. it also reported an uptick in rev new and volume. several analysts increasing price target on the stock.
11:49 am
you know, melissa and simon. we talk about how tech is underperforming but the stock is up 60% year to date. back to you. >> thank you very much, seema. it's approaching midday on wall street, so time is finding out for dell to find a better deal wchlt wi. the 45-day deal ends tonight. they proposed to take the texas based company private, giving shareholders cash. if there isn't a better deal on the table, what happens next? you basically advise people. you're a consultant. do you think we'll get a second offer? >> i doubt there will be a second offer. if tlz a second aufr, it's a well kept secret that has everybody in the street involved.
11:50 am
my guess is that management will succeed in squeezing more out of the first deal before this is over. there's possibility that you might see a deal on pieces of dell. like the financial pieces that we talked about. but it doesn't seem like there's going to be a second bid. >> how did they have any leverage to squeeze any more out of the first bid? >> well, you have to get a shareholder vote. if enough shareholders like the price, they don't have to vote for the deal. secondly, the stock has been trading above the offer price. there's a certain choreography to these things and there's ha little expectation of give at the end. so my guess is we will see that. you don't have to, you're right. >> so given where the stock has been trading above the initial bid price, how much extra do you think there is?
11:51 am
>> i think the market has it right. i said a little bit. i mean it a little bit. you don't see it trading out of line. it's not getting moved up because of a big change. not likely necessary to enlist in a second bid. it lushlly takes people longer than that. >> you're sure it's the largest shareholder with almost 7% of the stock. originally they were going to be insiders on the deal and now they're in opposition. does that surprise you? >> that they might have been insiders? >> yeah. i don't think it makes sense. my guess is it was thrown out there is like what is your problem? they're not a very big shareholder so they don't have that much leverage. >> how is your business at the moment? >> mma general is not so great.
11:52 am
well, it's great. we had our best year ever in 12 years operating as an independent firm. we do a lot in health care. we sold a major company to well point for about a billion bucks. called 1-800-contacts. we merged two players in the optical industry. the boutiques are often high in demand. >> why is that? >> because clients are not stupid. they know big banks lose people and they don't want to lose their people during a difficult market so there's a preference sometimes for boutique banks. >> have a good weekend. >> thank you. >> thank you very much. >> as we countdown to the dell deadline tonight. >> what if pilots had to act as their own traffic controllers? that could become a reality sooner than you think thank to sequester cuts. more on that after this. ♪
11:53 am
♪ i don't want any trouble. i don't want any trouble either. ♪ [ engine turns over ] you know you forgot to take your mask off, right? [ siren wailing in distance ] ♪ [ male announcer ] introducing the all-new beetle convertible. now every day is a top-down day. that's the power of german engineering.
11:54 am
11:55 am
today the faa releases its final list of air-traffic control towers that will lose funding due to sequester cuts. some airports will have to choose whether to shut down the tower completely or find another source of money. hampton pearson is live at an airport in maryland with more on the story. hampton? >> hi. we're at the fredrick, maryland, airport with 130,000 operations
11:56 am
a year. it's the second busiest in the state. only bwi is busier. it is on that preliminary hit list for losing its federally funded eric traff eed air-traffr which has been opened less than a year and the controllers who run it because of the sequester budget cuts. it's one of 240 contract faa towers around the country all waiting for word from the faa sometime this afternoon that's expected. now, airport officials here are angry, and they think they've got a pretty good case to be made why this facility should be off that hit list. >> this is not some podunk little airport. this is a very busy airport. we're a reliever for bwi. we have 226 based aircraft. of the 226 we have corporate jets, corporate helicopters. we have two very busy flight training programs. we have the maryland state police medevac training program that's here with us. >> now, the irony is this tower
11:57 am
was paid for with $5.3 million in federal stimulus funds and opened just ten months ago. all the controllers, the contract controllers here, are also former military veterans now facing the possibility of losing their jobs. >> been working on my resume. i'm looking at some schools to maybe get some va training, but to start out at the beginning at 51 years old is daunting. it's scary. >> so a human toll potentially as well as an air safety issue for maryland. this is one of five towers on that hit list all waiting for word this afternoon. simon, back to you. >> the price of cuts, hampton. thank you very much for that, hampton peerson, with the latest on the sequester. keep the tweets coming this morning. the black breezy ten hit shelves today.
11:58 am
line the not quite as impressive as for those for the iphone launch. we're asking you to complete the sentence, the only way i would stay in line for a new blackberry would be if it could blank. we'll read some of your answers next. [ male announcer ] just when you thought you had experienced performance a new ride comes along and changes everything. the powerful gs. get great values on your favorite lexus models during the command performance sales event. this is the pursuit of perfection.
11:59 am
during the command performance sales event. (announcer) at scottrade, our cexactly how they want.t with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. awarded five-stars from smartmoney magazine. at a hertz expressrent kiosk, you can rent a car without a reservation... and without a line. now that's a fast car. it's just another way you'll be traveling at the speed of hertz. a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it.


info Stream Only

Uploaded by TV Archive on