tv Power Lunch CNBC March 28, 2013 1:00pm-2:00pm EDT
trading today. i think they are very well positioned. >> i bought tbf. >> a short yen. >> laslow it has been great having you what's your final pick? >> emez. >> that's a nice tie, by the way. >> "halftime" is over. "power lunch" and the second half of the trading day is ready to start now. for now the intra-day mark stands but on this final day of the first quarter, we ask what will happen in the second quarter? and this is what happens when a bank in trouble opens after about two weeks of being closed. this is cyprus, of course. panic, anger, fear. michelle is not panic iking, no
afraid. she is there. and wait until you see who walmart wants as its new delivery team. hi, simon. >> hi tyler. that was a good start. we start with the markets on this, the final day of the quarter. that is important if you're a professional manager. it is importantly the first day for the s&p 500 finally broke through the closing day high it happened around 11:00 eastern this morning. it's up almost 10%. the dougw, let's have a look. it is up about 11%. we have never had a down year when the first quarter sees the dough dow up by 8% or more. and the nasdaq is up almost 8%
for the quarter as well. today you can see we're trading at 3259. the top three for the s&p netflix has more than doubled. hpq is quoted an the s&p as well. up. let's bring in bop. to you, first. just want to see today's trade as you see it. >> it's been another quarter where the u.s. is the place to be. obviously the volume has been weak this week. but it's not hurting us dramatically. we're up about 9%. if you look at china and brazil
and emerging market companies, they're all basically to the downside. the only one outperforming is japan. the bank of japan will be meeting next week and we will hear from them. >> what does this mean for professionals in the market? >> we're right at the top. we're right at the highs and it will be interesting to see if we actually close at a new high. that will be great for them. >> why is it great for them? >> it's the end of the quarter. they will mark their position at the end of the quarter. they' they're. >> the only thing that is missing is losses in bond portfolio. s if they had a couple quarters, then you start seeing the great rotation we have been talking
about for the last couple of months and still not really happening. bond inflows. >> i think what you're going to see is the second quarter. we will see a little bit more volatility. we will see pressure on the market just because we have got the debt ceiling debate and earnings that are expected to be muted. we have to cover europe. that's important. >> kenney? have a great look. >> you thought it was tough to deal with your bank. a long with a lot of new rules, michelle is there for us, live. michelle? >>tyler, the banks were open for a full six hours. however, there were strict
limits on the withdrawals that people could make. that was to prevent runs on the banks. take a look at the video we shot right at the opening hour here. you could see depositors pressed up against the glass. people were desperately trying to get in. most people who showed up were people who didn't have an atm card. as the afternoon wore on, things calmed down. difficult the note what is the true demand for catch. they limited withdrawals to only 300 euros per day. you can't cash any checks and can't cash in any certificates of deposits. we have received a lot of questions where depositors are going to lose a lot of money, whether or not that could happen in the united states. we built a graphic to explain why the cyprus banks are
different. we used the battlefield as a metaphor. the first line of defense? third line, the senior bondholders. they all protection the innocent civilians, in the cyprus banks, the lines of the banks for small and weak. compare that now to the united states where the infantry, the calvary and artillery are much, much larger. they are asking why the two banks that suffered and are so weak, why they were allowed to exist in the way that they did for so long. that's why depositors are going
to lose so much money. >> all right. thank you very much. after a solid run off this month on the cyprus stories, the bulls are pulling back just a bit today. actually they are hanging in there. there is gold. and the bull's in gold down $12 at 15.94 on the button. josh for a market flash? >> fire up the motor home. winnebego is having a tough day. revenue up nearly a third. could be that inventory is a bit high. remember, winnebego up some 100%. we spoke to morning star's david listen. >> josh, thank you very much. wall street dialling into
blackberry's reporting a surprise higher. the company getting a boost in part from the launch of its new blackberry ten smart phone. analysts see it as a make or break item for the company. >> this stock was all over the place. it's notoriously volatile around earnings. revenue was low. but subscribers and service revenue. subscribers came down 3 million. analyst group expecting 1 million service revenue. over the past four quarters we had seen service revenue had just been growing. it's been falling and it will continue falling double digits. >> there's the service revenue
and you can see it peaking there and then coming down. 3 million subscribers lost in the quarter. that is a bad thing. >> it's going to be tricky to measure this because they are changing the way they count subscribers. now they will count every new blackberry 10 user as a subscriber. so you have got to watch the overall service revenue now. >> another tech company i know you have been watching is ebay, which is having an analysts day. >> he's pitching that their addressable market is 10 trillion dollars as opposed to the 1 trillion as ecommerce. using your phone or your papal number, not as quick as swiping a credit card.
so, we will be talking to him about that in closing bell. >> we are going to mention that in just a moment. it's great to have you here. >> nice to be here. >> best dressed man in tv. >> you say that to all the guests. >> that's a nice jacket, man, whoa. >> this guy is big. >> he's been working out. >> he is going to be on cnbc. >> and blackberry's ceo is going be first on cnbc to give it back. >> and pinnacle foods is currently trading up.
and priced at $20 a share. that was at the height of expectations. the float values the company at $2.3 billion. >> simon, metro pcs shares moving higher. reporting that deutsche telecom is now having second thoughts about its merger with that. >> saying it is undervaluing the company and shareholders should vote it down. the activist shareholders are contesting the terms of the deal. shareholder vote is going take place on april 12. that's two weeks from tomorrow. metro pcs shares have slid about
14% since the merger was announced since last october. >> in a moment we have to pay some bills and take a break. working on a new way to get you what you want faster. but its plan to click from couch may have a lot of security experts screaming danger at the top of their lungs. that's next on the program. plus prescription drugs. where they're cheaper and where they will cost you more. and downsizing in this economy to just a $60 million home. more power in two. 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.
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>> here's what to watch for in the energy markets. north america is drowning in oil. so you would expect that it would curb the rise in oil and gasoline prices. but the federal government's refined fuel mandate may cause prices to go into overdrive. prices for the credits have skyrocketed recently. to more than a dollar a gallon up from a few cents a gallon late last year. and they are likely going to pass along some of those costs to consumers. that's your channel check. for cnbc, i'm sharon epperson. >> let's have a look at how the big oil stocks have done so far.
petroleum is the biggest loser down 17%. so far this year. >> that's a really hard to read chart, i have got to say. there it was, no matter what. >> google taking aim at amazon.com. a company launching a same day shopping experience. shoppers who sign up get six months of free same-day delivery with online orders placed with select retailers in the area. google will charge for this service in the future but has not decided how much. it is trading $8. >> and google not the only one trying to shake up the delivery business. walmart considering, i stress considering a radical plan for its online deliveries. and it involves you, the shopper. the walmart shopper. the world's biggest retailer is
considering having in-store customers deliver packages to online buyers. it's a new twist to better compete with the likes of amazon. what do you think about it? would you want a stranger, a walmart shopper knocking on your door and delivering your parcel? we're going to debate that in the power rundown in the next half hour. >> do you buy prescription drugs? you may be overpaying if you do, according to consumer reports. there are big price differences totally potentially hundreds of dollars. they found the lowest prices. >> one month supply of generic lipitor cost $17 at cost co-and $150 at cvs. the magazine says that you can also get a good deal from your
local independent pharmacist who is also looking to keep your business. >> simon, two retailers getting hit for the same reason. pvh currently. investors sold off after the company issued a profit outlook well below the street's forecast. it, too, saw its fourth quarter earnings jump but its shares fell after it forecast weak full-year results. >> it's been a very busy week. after slapping down $150 million. nutritioning a major play in real estate. a lot that is going on at the moment. >> we're going to take a walk on
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>> here's what to watch for in the housing sector. spring is supposed to be the busy season but a severe lack of inventory may push sales lower. prices will push higher due to this short supply. watch for the possibility that foreclosures will ramp up as banks seem to be pushing more loans through the system more quickly. investors are ready and waiting and that continues to be good news for the home builders. watch for slower deliveries as the builders are lacking in land and labor. that's your channel check. >> and thank you diana. for the record it's been a good year for most of the major home building stocks. kb homes soaring. pulte up. >> welcome to "power lunch."
we will take you on a little tour. >> steve cohen right now, this is in the east hamptons. he lives in that house. just up there in the top right corner. he bought that in 2007 for around $18 million. in order to get to the beach, here is the ultimate indignity. he has to walk down that path through this person's house, another hedge fund manager's house to get to the beach. he decided to upgrade this is the house he bought last week for somewhere around $60 million. we're told that steve cohen didn't even tour the house. it has a 10,000 square foot house. lots of great gardens and a reflecting pool. here is the main pool. a heatle pool that overlooks the
ocean and the biggest benefit are the views. it's right on the water. he doesn't have to go through his neighbor's house. and he paid, we're told, around $60 million for that house. maybe he needed a new wall for that painting that he just bought. >> to hang. you were telling me a moment ago that the people on this street is really -- who live on further listen? >> jerry seinfeld, this is -- even within the hamptons, this is one of the places to be so he has moved on up. >> moving further on up. simon, down to you. >> speaking of that, let me bring it closer to home in the city. high on top of a new york
central park location that one chinese co-couple has bought fo their 2-year-old daughter. apparently so she will be close to an ivy league school because the parents expect her to get into harvard 16 years from now. library, billiards room, pet wash room and a 24 foot aquarium. wow. ahead in the show, why designer vera wang is charging $500 billion in china to have people try on her dresses. and we travel to the top housing markets in america. find out how much your money can buy in the windy city. that's next.
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he here. a slide in gold prices year to date. the performer in the metals market has certainly been palladium. we are also looking at these reports about russia and south africa coordinating an opec type group. that is something that the traders have been following. it has lifted prices a bit as well. >> interesting. very interesting. the commodities losses have been the gains for the stock market.
>> today, it's essentially, this is kind of odd. six days of risk off behavior. i know the overall behavior is up. yes, that's what has been going on all day today. we see financials down, industrials down. so there is your leadership group. auto parts a little bit weak today. i scredit suisse had limited upside. as you can see here. pinnacle foods continuing to hold up. great day for them. 29 million shares. opened at 22 and change. that $20 was the high end of the
range. >> a couple big winners to take care of. traders telling me further optimism around the companies franchise, that's what is helping the shares move to the upside. and take a look at biogen, up 4%. its third drug getting approved by the fda, but its first oral pill is estimated to bring in $1.1 billion in sales. the big question is can this stock continue to hold to the upside? we will be speaking to biogen's
ceo. >> a lot of ceos, including back berry. i can't get over 1.85 on the ten-year. >> you and a lot of people can't get over it. we're unchanged. if you look at the one week chart we are down about eight basis points on the week. usda report found more inventory of beans. beans not faring well. corn? they may plant as much. an awful lot going all the way back to 1936. that's not playing well with prices, either. >> thank you very much. our power play today. he is the dean of nyu's business school. a board member at kraft foods.
>> why don't we start with cyprus. ho do you think about what happened there? what it means. what the implications may be down the road. >> i think the key question for cyprus is what kinds of precedence does it set for the future? and how markets interpret what's been done. the key question is how long will they be in place? and will markets become worried that we're headed back to a time where capitol controls will become more widespread. >> we haven't seen controls like this in that part of the world in a long, long time. capital controls are very public. the controls are mild.
but the question is, is this just the first step towards a change in attitude towards a free throw capital? the lesson with cyprus is too much debt is what got cyprus in trouble. >> isn't that always the case? too much debt and leverage ends up biting you you know where? >> if you look at the crisis, it was always driven by debt. we don't want to flow with stocks. >> let's talk about one area of debt that has been in the news very much lately and that is student debt. the level of it. carrying a lot. seemed like $102,000 of debt with the numbers that we had. is that a bubble that is going to end badly for not only those borrowers, but for the economy
as a whole? >> if you will forgive the pun, it is speculative to guess. i think the key fact about higher education is if we look at the unemployment rate, it's less than 3.7%. we have to find ways to reduce the debt burden. the key thing is we're focused on making sure that students get maximum value for what they're paying for? >> are they? a lot of them are coming out and taking not jobs in the field that they studied for, but lower paying jobs. and it really races the whole question about i guess it is a disconnect between the price for college education today and what you get out of it. what has to change there? do college costs have to come down some? >> i think the key thing is understanding what's driving the cost of higher education. >> what is?
>> the rest of the world has figured out that a u.s. education is the best thing going. on demand worldwide. a globalization is at work here. >> it's salaries that are driving? >> the major input is, in fact, the cost of a talent. it's one of the things that we're working on is how do we make sure we make the best use of those highly talented folks who teach our students? digital learn willing be part of that. but in general, we're working very hard to make sure that we're delivering maximum value for unit costs. >> we polled viewers on yahoo! and we asked how they handicap a mba. 18% say no. these are cranky folks out there. maybe, but i can't afford it. how would you answer that? >> if we were to ask you is the
price of a top ten business school education as at the stern school, is it really worth it? >> come to stern, it will pay off. i can only answer for stern. 95% of our students within three months of graduation are employed and doing very well in the job market. we're delivering value for cost. >> quick thought u.s. economy? improving. >> the stock market is still not where it was in 2007. we need more investment and we're investing in roughly 15% of gdp. a decade ago as high as 20%. that will be key to generating employment. >> i hope you will come back. >> i will be glad to come back. >> fantastic. >> the walking dead are coming to knock on your door. maybe not the walking dead but walmart is considering having customers from its stores deliver the orders that you place online to your home.
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>> going to take a look at the near north end. she served as the president of the chicago association of realtors and she is also in chicago's top 1% among 14,000 brokers. she's number six. it's great to have you. >> thank you. >> let's look at market stats in the near north end of chicago. the average listing price there about $1.1 million as you see. the median sales price is $370,000 difference year-over-year. let's -- how do you handicap the market in that neighborhood in chicago right now? >> the market in chicago is on fire. we have a lack of inventory and a lot of buyers who want to buy. >> the market is on fire. on a scale of one to ten you would give it a?
>> nine. >> nine. all right. let's take a look at some houses, shall we? >> sure. >> let's start with this one. it is 6300 north lemae avenue. eight days on the market. take me through it. >> it's a tudatudor home. three bedrooms, two and a half bath. you have a living room with a cathedral ceiling. dining room, large windows. high end cabinets. stainless steel appliances. there is a center staircase that goes up to the top floor that consists of three bedrooms, two baths. the lower level of the home is two walk-in cedar closets. a wine cellar, lots of storage
and a full bath. >> this looks awfully nice. $719,000. and taxes are just $9,900. that makes me ill to look at that. the next one is a beautiful high-rise condo on one of my favorite streets in america. lakestore drive. is that right? >> that's correct. >> 505 north lake shore. >> this property sits on the water's edge. on the 63rd floor. it's a contemporary renovated unit. >> look at that view. look at that. i want to move in. >> every room has a wall of windows so you can see the water. has an open floor plan. kitchen, stainless steel appliances, maple cabinets. floors are limestone. bedrooms are hardwood. bedrooms are marble. it's a whole building that has full amenities.
a two and a half acre private park. indoor outdoor private swimming pool. bbq area. health spa, exercise room, walking distance to the beach, navy pier and more. >> i love that and i love that street. >> it doesn't look that. >> a little background on that. a chicago bungalow. it has very, very nice finishes. open floor plan. what's really nice about the home is it has huge screened in back porch that leads out to a three-car garage and a rooftop deck. >> look at that. that's nice. keep talking. >> the prime location. you can walk to depaul university. grocery stores. the l.
atodaying to transamerica's retirement survey. that's especially troublesome because female incomes are lower than males and they have a longer life with the cost of long term care premiums. >> insurance companies will be rolling out the equivalent coverage as a man. >> i want you to. >> the company developed software for mobile phones. the reason for the move is back in january, the company subsidiary filed a lawsuit against microsoft. it was a patent infringement
>> slow but steady improvement in sales. helps the automakers continue on a pace to have their best sales since 2007. more people will be leasing cars and trucks as automakers continue to offer attractive leasing rates. and finally expect an up tick in pick-up truck sales. more have been rotating into buying new vehicles. >> thanks. here is how the automotive makers have performed so far. general motors is down about 3%. let's see what is coming up on
street signs. >> thanks so much. coming up, it is the interview we have been waiting for all day about the company we have been talking about all day. that's blackberry. the ceo joining us first on cnbc in the next hour. we're going to talk about his company's present and his company's future and go through the entire earnings report. >> very interesting. we will all be watching. power run down time. we will break it down as we often do over a couple of seconds. things could get awkward if blackstone buys dell. dave johnson used to work for michael dell in an ironic twist. what do we know about mr. johnson. >> everybody goes into private equity. it's more money, more money, more money. but i do think that it's actually maybe not such a bad sign. these guys have experience working together and at least know each other.
>> they do know each other. if you work in our business you never want to burn a bridge. you don't know who you may be working with later. >> at the top of these industries they go round and round. the thing that michael dell most fears is having the market as his boss. i always think that two brains are better than one. which is why you should split ceo and chairman. >> it has never been proven to help any company. maybe when you and i take over nbc, you can get the children happy to see you. >> steve burk online two for you. we will be right back. more on the power run down including how google is helping to bring jobs back to the u.s. that and more when we return. your big picture. see with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends,
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walmart apparently now considering a plan to have customers, fellow walmart shoppers, deliver packages to walmart buyers. good idea or maybe the worst idea ever? >> i came through with a kind of idea that this was great and community involvement. maybe some seniors could get some work. a modern day equivalent of a paper route at the big box store level. but i really just feel stupid
and naive. >> you combine it with an online dating service so you choose who it is that will deliver your package. you have coffee with them, get to know each other. >> i have very grave doubts that they will go through with this. i can't imagine that their insurance companies would go along with that. if you don't have a bonded employee delivering to people's homes. but who knows. >> let's talk about google glasses. they may be made in the usa. is dot com going to start making more here? >> the u.s. is on the brink of a giant manufacturing boom. it will start with little things like google glass and apple products. because energy is going to become so cheap in the u.s., we will be making everything here. the chinese will complain about their jobs being sent over to the u.s. >> i hope that john is right.
my fear is that chief marketing officers are able to grab headlines suggest iing quantity. they still store the profits. >> this is another sort of co-loss lally bad idea. right? >> apparently you have to try if you're a counterfeiter. you have to try it on to see the work and the detail. i think if you're going to sell wedding dresses in china, they are going to try counterfeiting. i think it's hugely disrespectful to charge customers $500 to try them on. she has got it all wrong. >> it's the opposite way here in
the united states. we are creating stores where you try things on for free but you can't buy them there. it is never going to work. i wonder if this was a publicity stunt. >> we have to leave the gowns on the floor, ladies and gentlemen. we will be back to you soon. we're going to look ahead to q2 in two minutes. [ female announcer ] it's time for the annual shareholders meeting.