tv Power Lunch CNBC November 8, 2013 1:00pm-2:01pm EST
the tbf. >> and anthony. >> long goldman sachs here. great leverage play into what i think is improving financial conditions. >> new dow component having a significant impact on the trade today. that does it for us. have a terrific weekend. we'll see you on the other side. "power lunch" begins right now. >> lace them up, "halftime" is over. the second half of the trading day starts now. >> thank you very much. 204,000 jobs created in october. that a strong number. so have americans been under estimating the strength of the economy? what does it mean for the fed, for the stimulus? and most important of all, what does it mean for investors like you? that is on our agenda today. three key stock story lines, growth, stealth and fear. strategic ideas for all three. this really could be the storm of the century. look at the eye of that typhoon, this massive one stretching hey
300 miles, winds up to 235 miles an hour in asia. the philippines. lashing out there causing ship wrecks, widespread disaster, full coverage is ahead. we will talk about how it could impact business in asia and around the world. first, though, let's check in with sue at the new york stock exchange. sue? >> indeed, ty. we are fresh off of that jobs number and the markets are moving. the dow jones after a quiet start picked up steam. 87 points up on the san johe do industrial average. the nasdaq which had a tough trading session yesterday trying to make that up, had a big fall yesterday, today we're up almost 1.5%. gold, however, because of the specter of higher interest rates falling sharply, down almost 2% on gold at $24.5 to the minus side because interest rates are creeping up. yesterday out of the session at
2.61% on the ten-year, take a look at where the yield is, 2.746 something they are talking about on the floor of the nyse. the markets look like that today in large part due to the economic report this morning. the jobs number. 204,000 jobs added to the american economy last month. the unemployment rate, however, ticked up to 7.3%. some analysts believe that was due to claims filed by furloughed federal workers. don't forget, the federal government was shut down for 16 days. today's job report showed some upward revisions, 45,000 extra jobs in august, 15,000 more in september. hampton pearson found one company where they're doing hiring in the great city of baltimore. hi, hampton. >> hi, sue. today's jobs report with a headline number of 212,000 jobs added to the private sector payrolls in october in spite of the government shutdown is an example of the resilience of the
american company economy one business at a time. we spent time with a baltimore based business that has been on fire, fireline, has 160 employees, annual revenues around $20 comillion, serve and install every fire protection device you can imagine for commercial businesses. a growth plan that began more than a decade ago is paying off and the president of the family business, her grandfather founded back in 1947, and yes, they're hiring more workers. >> the hiring that we're seeing, we're hiring designers, we're hiring technicians and then what happens eventually is you end up having to hire administrative people to support those functions and that growth. we have been very cautious in our hiring for a couple years, and this past year we've definitely hired sales, which that's going to end up results in hiring of more employees to do the work. >> and with all the big construction jobs in baltimore, the washington, d.c., and northern virginia area, that growth profile for fireline
looks pretty good. over to you, tyler. >> all right. hampton, thank you very much, in a chilly washington, d.c. today. let's count down on four topics that lurk behind today's job report. michele caruso-cabrera and st. louis with -- steve liesman wit now. >> the headline great, my one concern the following, 720,000 drop in -- >> in the labor. >> labor participation rate. last time we saw that was december of 2009, this is not the 2009 economy, this is 2013. >> what does that tell you? >> an outlier or something you have to wait and see. >> the economist i was talking to at the bls earlier today needs to call me back. we were talking about a half hour -- >>s there's your invitation. >> i can not get back to that person. a lovely person talking me through it. we don't know the reason for the 720, related to the furloughed workers and the shutdown. >> it is huge. >> not since december 2009. why we think there may be a
relationship to the shutdown but we don't know. you would be rare to have a 200,000 increase in the jobs -- in the payroll part and 700,000 job in both employment and household. >> you pointed out yesterday the headline number on gdp growth masked a fairly weak consumer, a lot was business inventories getting piled up. >> but i think first of all, that number was more for real. this jobs number is not quite the outlier people are making it out to be. we have had three-month average job growth of 200,000 which by the way rather than slowing it's been ramping up. we had six-month average job growth of 175,000. we've ticked up a bit. that's one. but two, we have better manufacturing data and the jobs number, the gdp number, may forb real. >> turn to the fed. what will they do now? >> that's the big question. we didn't see a market react all that positively initially to the jobs number. this means the fed will taper sooner rather than later. the market always faces this point, right, where good news at
first is bad news and good economic news becomes good news. >> good news is good news this morning when i looked at -- >> the market is up. >> i think it depends on what that december jobs report is going to say for the november for december. >> what does it mean for investors? >> i think that -- >> bond investors selling off. >> if people are going to look through this number and say what michele said, that less fed tapering is not as important to me as more job growth, more people who can afford mortgages, more people who can -- who will spend money alt retail stores, that's the kind of thing that would drive earnings rather than the concern about taper. >> michele, you've been delving on obama care, the health care, affordable care act. is there a nexus between today's job number and health care? >> we talked about this morning. we saw a big increase in retail hiring and hospitality sector. there is delay for businesses that have more than 50 employees, they don't have to provide health care starting january 1. retail is an area where
traditionally you have not been able to get health insurance as an employee. this rise is that because those employers were more willing to hire now, because it's -- it costs less. >> what about the other side, what about the idea that people would hire saying you know what, i don't have to worry about the health care problem. something i can send employees out to the exchange so freed from this burden of health care, maybe there's a -- >> they can't send them to the exchanges yet. >> can't do that yet but down the road, i know at lot of companies as you do too, that don't want to be in the health care business. >> absolutely. >> absolutely. that seems to -- does this give you data. >> my good bit. >> you wonder how many steps i took, i'll tell you later. >> to bertha coombs for a news update. >> speaking much health care, a number of these congressional committees have been pressing the administration for numbers. secretary kathleen sebelius has insisted she's not going to report any numbers until next week. senators orrin hatch and chuck grassley who questioned her about this on the finance
committee, out with numbers this morning. they say they have contacted the four insurers on the washington, d.c., exchange, and as far as insurers are concerned, only five people at this point are enrolled. two of them at care first blue cross blue shield, three at kaiser-permanente, none at united health and aetna. however, you have to take these numbers with a grain of salt. because the d.c. exchanges has officially reported that as of october 21st, they had 164 people who had enrolled, those enrollments paid and there were 321 total who had selected plans. so this could be an issue with a lot of those insurance documents, sue, not making their way to the insurers but people having completed the process, one of the things that the secretary has said one of the reasons why she hasn't given interim numbers. >> absolutely, bertha. thank you very much. let's go to dominic chu, he has a quick market flash.
>> hey, sue, twitter stock is falling on its second trading day as a public company after a couple research firms issued sell recommendations. hudson square initiated a sell on friday and pivotal downgraded it to a sell from a buy rating on thursday u on worries the stock has gotten too expensive. twitter down big in a second day of trading. back over to you. >> thank you very much, dom. we had a lot going on in this country in the last four weeks. the government shutdown, confusion over obama care, fear of the fed, but despite that as we told you, 204,000 jobs were created. katherine is ceo of the muse, alex is ceo of the ladders, two leading on-line executive career search and advice websites. nice to have you both with us. katherine, why in your book do you think 204,000 jobs were created despite those economic question marks and headwinds? >> i think it's a good point. there's a lot of uncertainty in the air, but that said, when we talk to employers i'm hearing a
sense of optimism. i think people are looking ahead and saying that, you know, unless your business is tied directly to the government, we're starting to see some growth, we're starting to see a pick-up and employers are starting to plan for that and coming to us to hire great people. >> alex, are you hearing the same thing? >> yeah. we see the job market as being very robust the past few months and what's leading the growth in job is the technology sector, followed by the service sector and actually today we released a study we did at the ladders where we looked at the most popular jobs on our site and what we found was among the top ten jobs, seven out of the top ten jobs required technical skills, for titles like ios developer, mobile developer and android developer, data scientist, so we see the growth in technical jobs. what we're not seeing is an interesting trend the demand for middle management for job that carry the title of manager or director not going as fast as it used to so the mantra of people
looking for the corner office are changing and what people are looking for, you have to have technical skillsets, science, technology, engineering and mathematics to do well. >> what type of demand are you seeing in terms of job categories? >> i will echo what alex said about the technical jobs being highly in demand but it's also interesting, we see a lot of companies that want -- they either want people in other funks that are technically literate, in marketing who can speak to the digital economy, people who are product managers but have enough technical literacy to play in that space. what's interesting about this when the sector does well all of the positions that support that do well as well. we're actually -- we see people coming to us a and saying i need to hire customer service reps, sales people. it's often to function in that sort of technically driven environment but doesn't necessarily require the skills at the base if you can speak within that industry. >> what i'm hearing from both of you is that the economy is probably doing a little bit
better than perhaps some people on main street think it is? >> i mean to be honest, it is somewhat hit or miss. i think what we have been seeing is that there are industries and sectors and geographies that are a little bit lagging in terms of the recovery. they may still be seeing progress, but it's not necessarily as fast as say certain cities, certain industries, technology being one. where they're really starting to bounce ahead. >> alex, final word to you? >> yeah. i think what we're seeing, there's two job economy. one is the economy for the demand of people with technical skillsets, seeing negative employment rates. there are more jobs than qualified people in the market. the other sectors where the demand for technical skillset is not there and that sector is not recovering. that's why on aggregate we see 7.2 unemployment rate, that doesn't tell us a picture. what you have to look at is two different job market, one no unemployment rate and then the other one, where the employment rate is 25, 30%. that's the story.
>> thank you very much. really interesting conversation. appreciate your perspective. let's get additional insights this time from the tech sector. john is the founder and ceo of shutter stock. his company an on-line marketplace for commercial digital imagery based here in new york city. it's nice to have you back again. >> nithank you for having me. >> everything seems to be firing on all cylinders. >> we're finding more business need -- >> the images. >> the images to communicate to their customers and sell their products and services. updating their websites more and more and selling products and using more platforms like twitter and facebook and other places. >> how do you feel about the pace of the economic recovery? you were able to hear katherine and john just a few minutes ago. do you agree in general with what they're saying in terms of growth in the economy? >> i can give you a perspective from tech. which i see all around me. and we're hiring and a lot of the other ceos in tech i'm talking to are hiring. the problem is, finding really good engineers.
and that's been a problem for the past it tep years and will continue to be a problem. but as more and more tech comes to places like new york city we'll benefit by that. >> is that a function of the lack of education, the lack of higher skills or is the technology moving faster than education is moving? >> it's probably a combination of both, but there's obviously a long period of time it takes for someone to learn this kind of stuff. generally when you're in the pace of the technology changing you're able it to keep up with it? >> what are you hearing? the headwinds i mentioned the government shutdown, the inepty today of some say congress spector of higher interest rates, does that impact your business or do you talk to your ceos that you deal with about that at all or are they looking past all of that? >> we just need to continue to push forward. i mean, the issues with website, health care website, those are unfortunate. we see the same -- i mean
technology is hard, right? we have to continue to build this up, continue to innovate and encourage people to learn the skills that we need to fill these jobs. >> so what's next for your company, for shutter stock? tell me what -- where you see yourself going in the next say six months to a year? >> we're seeing a lot of international expansion and video. we're also seeing platforms like facebook and twitter using imagery more and more. our partnership with facebook recently where 1 million of the facebook advertisers will be able to use our images directly in our ads. that's a brand new place where people are using commercially released imagery. we're looking for pockets of places to expand on the market and footage is one of those and platforms like facebook and twitter. >> congratulations, jon. nice to have you with us. >> next on "power lunch" -- three characters you really need to pay attention to in the midst of this market. there's growth, you have to be on the watch for stealth and then as always, there's fear. we're breaking them all down for
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the deal gives it two new gastroenterology drugs to strengthen the leadership in that market. wall street likes that. salix up 16%, now 19% on the trading session. ty, up to you. >> there you see them, three seemingly mild-mannered cnbc reporters, but for this segment, they are superheroes, super stock reporters. sheila dharmarajan, dominic chu, seema moody on fear. we start with sheila and a special growth stock screener. sheila? >> hey there. we're talking about garp, an acronym for growth at a reasonable price. it was a stock picking methodology made famous by peter lynch and it's all about combining growth investing with value investing. so we decided to run our own screen on the s&p 500, looking at strong sales growth, consistent earnings growth and a relatively cheap valuation. if you can believe it, only four names made the cut. so number one, row juan, just
reporting earnings this morning, coming in slightly higher than estimates. number two, another energy, halliburton. the company recently at its analyst day said it was targeting 35% of cash flow to give back to investors by 2016. number three, a health care company to talk about, specialty pharma company, actavis. a lot point out its generic business might get an uptick with focus on health care and cost management and number four is none other than lamm research, conductor company, coming off a beat and raise quarter, d.a. davidson saying there's a lot of positive for lam going into 2014. it's possible to hahave growth a reasonable price. >> thank you very much. now to dominic chu, looking at some beaten down stocks, that are making a stealthy comeback. >> how about this, tyler, a couple weeks back we highlighted ugly duckling stocks due for a pop, some worked, some didn't.
expedia on the list that worked, helped higher by earnings and more hotel bookings and then abercrombie and fitch which continues its decline after posting full year profit estimates that fell short of expectations. we asked the cio of investment solutions bernie williams what stocks have gains ahead under the radar, stealth-like and he said take a look at these. he said nxp semiconductor, make chips, more levered to the industrial application like cars and auto and strong cash flow and paying down debt. signet jewelers, it serves the upper end of jewelers. that allows them to be repeat customers in the future. carnival, we know the name, it could benefit from a european recovery and has underperformed rival royal caribbean and you chart geeks, this last one for you, oppenheimer's carter braxton says look at procter & gamble. he said it's a large cap that lagged the broader market and toying with an upside break
outin the charts. a lot of times those stocks follow suit and watch procter & gamble. >> mr. stealth. stocks have more days like yez yesterday with a drop, how can you protect yourself, fearsome seema. >> more stocks hitting new highs, technicians say the market is due for a sell-off. if we get one which sectors will get hit the hardest. the last times the market posted a 6% move to the downside to see which sectors posted the biggest losses. may, august and september of this year. now in may, utilities lost 7% i financials dropped 5% and consumer staples down by 5% as well. the second major sell-off was in august when the dow lost 897 points, once again, it was financials, consumer staples as well as telecom. the last big market move was from september 18th to october 9th when the dow lost 990 points. financials, materials and consumer staples got hit the
hardest. consumer staples, one of the lagging sectors during the last three selloffs but it's still one of the leading sectors this year. now in terms of stocks that fell the most during these three sell-offs, check out the list. we have teen retailer abercrombie & fitch, cliffs natural resources, dr horton and solarp. a diverse mix of stocks, ab berby, cliffs, dr horton, while first solar is up 95% year to date. back to you. >> terrific, seema, thank you so much. that was fun, guys. calling this a storm is an understatement to say the least. it is turning into one of the biggest ever recorded. the it is a super typhoon with 195-mile-per-hour winds. hundreds of flights have been canceled. tens of thousands there trying to take cover in the philippines and other parts of asia. there could be major fallout for business and the global economy. we're all over a still developing story. the latest on this monster storm
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195-mile-per-hour. hundreds of flights canceled and more than 100,000 trying to take cover. the storm is one of the strongest cyclones to hit land anywhere in the world in recorded history. the weather channel's greg postal has the latest on the storm. >> reporter: super typhoon haiyan continues to move past the philippines into the south china sea but not before creating a lot of destruction across the way in the philippines. the last 24 hours worth of satellite pictures, you can see that it moved just south of the city of there, likely with category 5 winds. we don't have contact with this area yet. hopefully they will be back on-line soon and able to get the reports from there. pretty devastating results. i'm sure we will find out as we find out as this super typhoon moved through the region. it's estimated to have winds at about 155 miles per hour, estimated from satellite. we're not sure how strong it is but we are clear on the movement
west at 23 miles per hour. it's going to bring it into parts of vietnam over the next couple days likely over the weekend and maybe as a category 2 or category 3 equivalent storm. significant damage is possible along that path into vietnam over the weekend. so guys, the story does continue. back to you. >> thanks very much for that report. the storm, of course, sparking fears now about the global supply chain. what companies are located in and around the storm, what are they doing to get ready for it, changes they're making. jackie deangelis has that part of the story. >> the philippines isn't a manufacturing hub for companies like thailand, but it does serve as a sales and distribution arm for many international companies including automakers like ford, technology companies like texas instruments and fair child semiconductor, shippers like fedex and a variety of consulting firms, just to name a few. now also over the last few years, there have been a flurry
of american companies moving call centers to the philippines, like at&t, jpmorgan, even expedia have been setting up shop in the region, given that this super typhoon haiyan is one of the strongest typhoons this year companies are using caution to protect employees and properties. fedex told cnbc it's monitoring the typhoon and safety and well being of its team members are top priority. the company, of course, cautioning however that there could be service delays despite contingency plans. texas instruments told us that it has not been impacted by the storm and maintains normal operations. early systemses suggest we could see roughly $15 billion in damage as a result of this super typhoon and analysts cautioning there could be disruption in the local infrastructure that could impact operations of these international companies in the area as well. you can't control things like power lines and roads. sue, back to you. >> absolutely. we'll be watching it very closely. a big drop in the gold market
today and gold prices are closing right now. we're between 3 and 4 week lows right now. gold down $24 as interest rates creep higher and the dollar rallies across the board today because of that employment report this morning which was a shock to parts of the market. speaking of which, let's go to the bond market and rick santelli tracking the action in interest rates for us at the cme. hi, ricky. >> hi, sue. i guess higher, steeper and wide sums up the day. you know that, but look at the charts and go by their comps. if we look at a five year, highest yield since 10/15, what's going on in 10s, highest yield close since about the 19th of september, look at what's going on in the 30-year, since the 16th. dollar index, september 16th as well. where is the steeper come in? five to tens, tens to 30s, five to 30s are steeper and wider
against things like the boons. we continue to monitor how good news is a yield mover to the upside in treasuries and the dollar. tyler, back to you. >> rick, thank you very much. we know retailers are watching your every move. now the airlines are too. the kind of data they're collecting. should you be worried? blackberry giving its ceo a bumper pay package. you won't believe the staggering numbers. we'll tell you about it after these mess ams. geoff: i'm the kind of guy who doesn't like being sold to.
the last thing i want is to feel like someone is giving me a sales pitch, especially when it comes to my investments. you want a broker you can trust. a lot of guys at the other firms seemed more focused on selling than their clients. that's why i stopped working at my old brokerage and became a financial consultant with charles schwab. avo: what kind of financial consultant are you looking for?
coming off that strong jobs report, president obama is visiting the port of new orleans today and speaking about the economy we'll mn tore that speech. he has just started. we'll go to john harwood, let's go to john harwood who has perspectives on what the president is talking ability. john is. >> what i expect is the president is going to hails those jobs numbers, hail the gdp numbers that we got 4 hou24 houo and talk about a case for the economic policies he wants to do in terms of more spending on
infrastructure, things republicans have rejected but are in the table in the budget negotiations ongoing on capitol hill. he still has this enormous mess on his hands to deal with, with obama care and i'm not sure, tyler, that his apology yesterday in that interview with our colleague chuck todd, did him all that much good or addressed only part of the problem in the sense that yes, he addressed the anger of people saying i'm sorry, but what he didn't really address in a square fashion was the fact that consequences the people are feeling and the disruption of the individual market was part of what the law intended to do in order to provide benefits to other people and he also hasn't addressed the fix for people whose rate has gone up is going to be, because the higher premiums for most people in those obama care exchanges are what's necessary to -- what the
administration deemed necessary to provide the benefits for others who were whippers under the law. it reminds me on the 25th anniversary of george h.w. bush's election as president in 1988, of the phrase he used voodo economics. going to take care of people who are losers under the law, without hurting the winners under the law you've got to make it more expensive or destabilize those exchanges and he hasn't addressed that and his aides have not addressed that. >> very tough pickle he finds himself in with respect to obama care. john harwood, thank you very much. is the october jobs report a big win for the obama administration and joining us as they do often on these jobs days, mark, ceo of the national urban league, former mayor of new orleans, watching closely the president speaking in new orleans, and ron is here, ceo of christie strategies and former special assistant to president george w. bush. welcome back. good to have you with us. how good were the numbers, ron,
from where you sit? >> not very good. if you look at 204,000, better than what the market anticipated but when you peel back the onion half of those jobs are minimum wage jobs. you're talking about 100,000, you know, net new jobs created that aren't at the minimum wage level. this is not a step in the right direction for trying to increase the economic well being for those in the middle class. >> labor force participation, apparently come way down as people pulled out, i guess. >> the markets have responded favorably and that's what's important. to your question as to the president it's the lowest unemployment rate since he's taken office and i think he can applaud that because these reports should be taken as the direction of the economy. i agree with ron, there needs to be a greater focus on higher-skilled, better paying jobs. that's a large structural problem for the economy and we've seen that in the recovery. but these numbers, ty, are good in the sense we have consistent job creation and these numbers
beat the forecast. >> they're better than some of the alternatives but to ron's point we have a lot of jobs that are very low pay, or that are part-time jobs, people would like to have full-time jobs and can't get them. >> i ask myself, is this the continuation of this trend of shipping the better paying jobs abroad and what we have to do to restructure the economy so that it does create better paying jobs. i think you saw an interesting response in the state of new jersey which was the voters voting by two-to-one margin to raise the minimum wage. you'll see responses like that across the nation now taking place at the state level. i think people are concerned while they are working, their paycheck does not help pay the about snils the minimum wage becomes a very hot ticket, hot button item politically, there are people who feel very strongly that raising the minimum wage does not help workers, it hinders them. >> i'm one of those. if you look here in the state of new jersey it ranks 49th out of
50 as far as being friendly for job creation. what mayor talked about, about increasing the minimum wage is only going to depress the market for those who are college educated and those looking to get in the work force because why? businesses will not hire people given this new minimum wage increase. it's too expensive to do business. >> the long-term evidence just doesn't bear that out and i think what you saw in new jersey, is something coming froms the voters and you've seen that in a number of state as people respond to the fact that their paychecks do not allow them to pay their bills. >> to obama care, the president saying plenty of times, if you like your health care plan you can keep it. pretty absolute, unqualified promise there but that promise, of course, has proven to fall short. nbc's chuck todd sat down with the president yesterday and asked him what happened? mr. obama apologized for the debacle. take a listen. >> i am sorry that they are finding themselves in the situation based on assurances they got from me.
we got to work hard to make sure they know we hear them and that we're going to do everything we can to deal with the folks who find themselves in a tough position as a consequence of this. >> he feels their pain, mayor, but he really doesn't have a way out of it, does he? >> i think the president will fix the problem. >> how. >> that takes place. importantly what the president did, was accept responsibility. he did what a good leader should do and that is he said look, i apologize if the representations that we made were not entirely correct. and i think he did the right thing with a difficult set of circumstances. but at the end of the day, the bigger question is, is the affordable care act good for the nation? and at the end of the day, it is the long-term execution and implementation by which he'll be judged. >> ron shaking his head in response to that question, but the president, not only -- i just don't know how he could
have made this kind of statement and mistake over and over. i guess a political cynic could say, of course, i understand, he wanted to sell the plan and this was the best way to do it. hell or high water. >> i think this is a dishonest portrayal to the american people. i worked in the white house, the west wing and know how the staffing process works. for a speech to go through to get to the united states the president's seniors advisors have to sign off on every word in there. the president and his advisors new the 32 times he said if you like your plan you can keep it and the fact that they continued this to try to get something passed rather than being honest and level with the american steam today, we have a picture of the website, the affordable care act website, where the healthp insurance market is still open. look at this, it says right down there, how health care works, and it says once again, if you have a plan that you like, you can keep it. >> people have -- >> here's what -- >> it's one call from the white house to say. >> many of these plans or these highly limited plans and under
the affordable care act it creates a minimum standard if you will, for health insurance plan. i think it's important, yes, not only to discuss the political statement, but to discuss underlying this what is really at stake. the truth is, that under the affordable care act, people would have a better insurance plan that covers more things such as -- >> that's not what the president said. >> sometimes things people didn't want. >> sometimes they -- >> i'm a 59-year-old man, i don't need maternity care. >> but if -- >> for one example. this is the important thing, the president said unequivocally if you like your plan you can keep your plan. now he's saying the bad plans that's not comprehensive enough. that's not what the american people were sold. >> at the end of the day what is the issue, implementation of the affordable care act, it is the law of the land and build wl it is -- and i believe it will benefit the american people, these discussions are important, i think the president took it
on -- took responsibility, he said what he needed to say, but i don't think that this moment in time is what this affordable care will ultimately be judged by. >> this will be an yaup going discussion. always a great pleasure to see you tomorrow. >> lsu and alabama. >> lsu. >> i'm rooting for the saints against the cowboys. i'm a redskins fan. sue, down to you. >> thank you all? the reach are able to invest in their money in private equity. now your 401(k) can have a piece of that action as well. from lloyd blankfein doing gods a work to mark zuckerberg's hoodie, wall street has a lot of material for comedy. the funniest people in finance, coming up. what if a small company] became big business overnight? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not?
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the trading session despite the fact that we have interest rate creeping to the upside. the s&p 500 is up better than 1%, at 176480 and a look at the recovery in the nasdaq which is also at session highs. high return investments that have been exclusive could find their way into your portfolio. an average return of 10% over the past decade outperforming virtually every other asset class. for the first time private equity firms want to tap into the near $4 trillion that sit in 401(k)s. if plan sponsors take the plunge, part of your retirement fund could have a stake in the game potentially growing your nest egg. the biggest concern, though, is the unknown. there is virtually no data on the risk your 401(k) could face once private equity does become part of your portfolio. coming up, bankers, hedge fund managers, turpts out they're not so boring after all.
wall street's funniest people straight ahead. how much is a ceo worth for turning around a company? like blackberry? what the struggling smartphone maker is giving its leader. the power rundown in 30 seconds. all right. power rundown time as we wrap up this busy week. kayla tausche, cnbc.com commentary editor cindy with us as well. i didn't know you had such an
algust title. >> it's grand. >> blackberry giving john chen a pay package that could be worth $85 million if he turns the company around and stays for five full years. smart move or not for a struggling company? >> you want something that's not going to bolt after one year. if they're going to turn the company around this is a long-term effort, according to the afl-cio the average s&p ceo made $12.3 million. he's not getting that much more than the average and argue to take that job you needed to add a little bit incentive. >> he has to stay, these options don't start to vest until he's been there three years, that company may not exist in three years, but to get the full value he has to stay five. >> i like john chen and i think that it was a good move but does blackberry have $85 million? didn't they lose close to a billion last quarter? it's a lot of in un he but i hope he can turn it around. >> if the guy turns it around and he stays for the full term, i mean then that is how the system ought to work it seems to
me. guys who get paid for failing that's another matter. airlines are learning to monetize, famous word, love that word, be all ta data they're collecting on miers. according to the "wall street journal" flight aten daptss will be able to access how passengers take their coffee to their birthdays. something we should worry about or if the deliverable is better customer service shouldn't we applaud it? >> tyler, i'm finally glad airlines after suffering through high a fares and charging me for everything they're finally learning it's about me not them. i hope what they learn is that i would like better fares, not what they can charge me for. i'm a little dubious. i'm -- >> do you get worried about all the data mining that companies can do based on your preferences or who you are? >> it's just the age you live it in. when sitting in a steel tube with 200 other people, not much you do you should expect to be private. if someone wants to know how i
take my coffee that's fine but i can't promise it's going to change my flying. i buy the cheapest flights at the best schedule. >> if they knew my birthday and wanted to give me an upgrade i would be fine with that. give me a better seat, upgrade, i would love it. >> i hope it goes that way. >> works for me. i have my doubts. >> and now a contest is on it to find wall street's funniest person. we had one contestant here last week by the name of rank mahall. >> they asked me to do this i was so amped up. i was more amped up than jim cramer on five cans of red bull. i just recently left my job, so i lost my health insurance. so i tried to enroll in obama care. and man, that website takes forever. by the time i'm going to be able to enroll in obama care i'm going to be eligible for medicare. eye dressed up last night for halloween as the coolest dude in america, ben bernanke. the truth is, though, i have
trouble growing a beard. so i went as the next closest thing, a money printing press. >> all right. are wall street guys, men and women funny? >> i don't know i think they're -- >> i take that as no. >> certainly funny people on wall street. the more senior you get on wall street the funnier you are. you can look back at your time and find levity in what you've been through. in this day and able everything is so heavily regulated, talking bassle 3, net interest margins. >> you can't afford to be funny. >> you're so by the book. >> you've done stand-up? >> i have to tell you it is not easy. i've been very closely covering the wall street funny man scene. first of all, i think that there is a lot of funny on wall street if you talk to some of these guys. i think compliance does strip out some of the funny. but there's rich material here. sometimes funny intentionally like what we've overheard in the goldman sachs elevator and sometimes not so funny intentionally i should say. don't mean to do it.
like lloyd blankfein doing god's work. a lot of funny to be found. >> there you go, folks. >> good one, cindy. >> thanks very much. add the laugh track, cue the laugh, thanks. sue, down to you. >> ty, a day after its rip roaring ipo, some analysts on wall street are clipping the wings of twitter today. hear what they're saying coming up next. twitter's down just under 5%.
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the most buzzed about work a francis bacon trip tick of lucy, with estimates topping $100 million. andy warhol's coca-cola bottle expected to grab $65,000. and then one of jeff koons balloon dogs expected to fetch $85 million. all right. a day after twitter's hugely successful ipos, some analysts on the street are now flying the coop. shares right now as we mentioned are down just under 5% on the trading session. let's go back to sheila, up there at the nasdaq, with more on the story. hi, sheila. >> hey, sue. not everyone is joining in on the twitter ipo mania. the stock already has two sell ratings on it, pretty rare for a stock when it just goes public. the first from pivotal research and today slapping a sell on twitter and possibly having the funniest title in a research report, earnings goes on to say,
flip the bird, initiate at sell. part of his thesis, valuation, valuation. he can't think of any possible upside scenario when it comes to justifying this current valuation and says investors are focused on soft metrics like users and sales and not enough on hard metrics an that's a sentiment we've been hearing from a lot of people who are bearish on the stock. we like the service, we like the company, we just can't justify this valuation, certainly seems like the market is paying attention today, and investors seem to be flipping the bird a little bit, sue. >> they seem to be. indeed. trading behind me down 4.3%. we have three big winners in today's rally with the dow up 96 points and the nasdaq up better than a full percent. back in two. 0
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include jpmorgan chase, up about 3%, almost 4%, walt disney up better than 2% and merck up 1.8%. not so bad for the bulls. >> thank you very much. thank you for watching. that will do it for "power lunch" for today and this week. >> that's right. have great weekend, everybody. we'll see you on monday. "street signs" begins right now. on the day where nearly everything is higher and good stocks may be harder to find, one of your guests says he has's got one key factor to finding great companies. a good jobs number. do we get a taper for christmas and how have 700,000 gone missing? a stock debate on player in the industry that we believe might change the world. and the latest news from miami may have solved the mystery of why the dolphins' quarterback has been sacked about 35 times this season, mandy. >> happy