tv Street Signs CNBC November 25, 2013 2:00pm-3:01pm EST
of almost 4% and davita a gain of almost 9%. big percentage movers out there today. >> it's an interesting time. i look at the nasdaq above 4,000 and think how differently it feels in 2013 than it did in the year 2000. >> it does. "street signs" begins now. >> thanks for joining us. >> "street signs" as i said beginning now. nasdaq 4,000 and the global bull run. what's up with a market that seemingly won't go down? hi, everybody. welcome to "street signs" your other hot topics we're going to break down what happens to be or the hardest stock to understand this year, one surprising shopping trend that may be very good for an american icon an we introduce what we are now calling the world's greatest investment.
a strong statement but you to trust on this one. >> happy monday, everybody. seven weeks of plowing higher on the s&p 500 and the tide continues to lift this index to another record high today. to have a winning stroke longer than that this one you have to go back to the end of 2003 pushing into 2004. if the s&p 500 can pull off a gain of 1.8 points today, it will then be on track for its best yearly gain back to 1997. how is that for a few stats this monday afternoon. the nasdaq touching 4,000 for the first time since september 2000. >> all right. heady stats but a lot to get through as well and your first top corporate story a major shakeup at walmart, ceo mike duke stepping down after five years at the helm replaced by one of the youngest ceos in company history. to courtney reagan covering the story for us and a bangup job all day. >> why now? mike duke announced he was retiring in november.
he told the board then and that's when they cast the vote for doug mcmillon. it's how it happened with duke and his predecessor lee scott. he will be ceo through the holiday quarter and transition mcmillon over the next couple months as lee scott did for him. the company lines up with the company's fiscal year. duke will remain chairman for a year. that's an interesting move there toop. walmart has proclaimed this is the busiest week of the year but we all know that it's the decisions that have been made here have been made months and months ago for the executives. really it's busy for the employees on the floor and for the consumers themselves. now many thought that mcmillon was on the short list of successors along with walmart ceo of u.s. bill simon. a lot of things to like here. he has experience in international, in on-line. he's worked for both sam's and for walmart. he's got experience in merchandi merchandising. he is the youngest ceo since sam walton himself.
he's trained in the mr. sam way. he was there when sam walton was ceo. >> thank you very much for setting it up for us, courtney. with mike duke out, and douglas mcmillon in what does this mean for the company? joining us is former retail e c exec, jan and the e-commerce at forester research. ladies first here on "street signs." you agree this is no shock but also the best timing with regards to the business? >> well, the thing is, is that from a timing standpoint it gives doug mcmillon some opportunity to get up to speed with really taking the helm as they go into the busy peak season and deflects any potential criticism if walmart happens to have a soft q4 that oh, that the ceo stepped down mike duke stepped down as a result of that softness. that's really the benefit here is that the timing is just very true tu which tus, gets a mu ceo up to speed and doesn't risk the story of what could potential
happen in q4. >> jan rogers negativen, i know what you're going to say, tell me that this is all just perfectly fine and follows the lee scott mold, announced in november to courtney's point and he took over in february, it's become a pattern. i have a chart, sir, of walmart stock against the s&p 500 and the dow going back a number of years and it has under performed dramatically. this is only five years on the job, jan. are you telling me was not nudged? >> i don't think he was nudged. i think he came in when walmart was going through transition, clearing action, cutting back on the number of skus on the store, trying to be higher in than they should have been. >> that's starting pretty. >> back to where they should be. said we're going back to everyday low price, the virtuous circle, going to be good at what we do, be in stock, the great distribution company and brought them back from real problems they were having because the
consumer was not convinced they were the everyday low price guy anymore. now it's time for a guy to come in that is more of a merchant, mike is turning 64 in december, he will be 65 after the year of transition. i think he was ready to leave. i think doug will be great. everybody inside walmart thought that doug was going to be the guy. and i think that he's -- that mike's done a good job. i agree, the stock has been miserable. it has under performed. but i don't think that's why this transition is taking place. i think they want new, fresh blood, more merchandising. >> you guys, walmart veteran, but at 47, he's got a long runway as well. i have to ask you, brian's point about the underperformance of walmart stock, versus the s&p, during mike duke's tenure, what does this new guy have to do to fire up the stock and make sure that it starts outperforming as opposed to underperforming? >> well, i think that there are really the three pilars of the business.
doug mcmillon comes from the international piece of the entire pie, so it's an imperative they continue to figure out how that grows even beyond latin america where the strength of that business is. the question is, can they actually make a play in asia for instance where companies like tesco and car four have tried and been burned. can walmart go where the others haven't. and then domestically there are also the issues of continuing to grow the club business which has been one of the really powerful and, you know, strong areas of the business for sure, the entire club business, in the united states in -- within retail has really been one of the bright signs and then from an on-line sector, they really, really need to figure out how to take share back from am ma zon. amazon has been taking a significant amount of share from every mass merchant. they're playing significantly in grocery. so that's the question, is how can walmart continue to grow even domestically through clubs and through on-line.
>> and on a tip to brian, doug is clean on the issues at walmart. he wasn't running international when the scandal hit. >> you saw the look in my eye. you've got this alleged bribery in mexico, right. labor strife. you have a lot of bad optics around duke. >> a good time for change. i still don't think he was pushed out but an opportune time. doug doesn't have any of that baggage and that will be good for walmart going forward. i think it all works right now. >> okay. jan, thank you very much. >> thank you. >> shakeups not limited to walmart today. maybe lost in these headlines is blackberry also making some big changes. yet again. let's get to seema moody on those. >> you know it's interesting, blackberry interim ceo john chen is cleaning house and putting together an executive team he feels will help turn blackberry around. here are the changes. blackberry's chief operating officer christian tear and chief
marketing officer frank bullbin will be leaving. the senior vice president will replace as the chief financial officer. to sum it up blackberry coo and cmo are out, the cfo has been replaced. this month we learned that thorsten heins the former ceo of blackberry was being replaced by john chen. chen said, quote, i will continue to align my senior management team and organizational structure and refine the company strategy to ensure we deliver the best devices through its bes 10. the trouble smartphone maker has been facie ining competition fr apple and samsung. will this management shakeup help blackberry reinvent itself and john chen hire externally. analysts say that might help give blackberry the fresh start it needs. it also might increase its chances in being taken private. blackberry earlier this month killed its existing plans to go
private, instead it raised finance from fairfax among others and we're still trying to understand how the funds will be used. i don't think the management shakeup should be seen as a big surprise. it needs bold change, dramatic changes to reinvent itself. >> thank you very much. let's bring in roger chang and see what he thinks. is this rearranging deck chairs in the titanic. >> a little bit. the new interim ceo john chen has a mission to move towards businesses and software. the shakeup, do a lot towards that. a company focused doesn't necessarily need a marketing officer. getting rid of christian and frank were two good moves to line blackberry up with its new priorities. >> roger, sounds like then what you're saying they're getting out of the consumer business. that's over? >> basically creeds. >> they're basically getting out of it without wanting to get out of it. i'm talking about roger making a conscious decision because what i heard from that statement that
was given to cnbc by the incoming ceo was blah-blah-blah-blah restructure, blah-blah-blah enterprise. >> yeah. that's the thing he wants to focus on business, enterprise. a software guy. not hardware. he doesn't have a track record in hardware. seems like they're focusing on the blackberry enterprise server and the software related to that. to that extent they're basically giving up on the consumer business. look to the last couple phones that launched, the blackberry that just came out, quietly hit the market and no one really care pds. >> inevitable it's going to be broken up, bottom line sp. >> i think it will get broken up. there doesn't seem to be a lot of options out there, but in the meantime they've raised in uny, they still have to operate as a business. there are still the options to go private. so they still have to continue to operate until that happens, until, you know, they get broken up i guess. >> thank you very much. >> thank you. >> for those of you who say we ignore the west coast i present to you julia boorstin with a
market flash from los angeles. >> thanks so much, brian. lions gate shares up more than 10% its "hunger games" didn't perform quite as well as many had hoped, grossed $307 million worldwide, up from the opening wing weekend of the first "hunger games" film. in the u.s. it grossed significantly better than the first one, of $161.1 million. the grosses were great, but people were hoping for more like $170 million rather than $160 million. sending the stock down over 10% today. brian, we have to keep in mind this stock has gained over 100% over the past year. back over to you. >> slightly full games, not quite stuff. thank you very much. fasten your seat belts, tray tables in the locked position mandy, because up next we're going to crown this the year's teflon stock, nothing seems to be able to hold it
down. >> plus a deadly storm is bearing down on a large part of the nation as millions of americans hit the roads and the malls for the holiday weekend. we're going to have the latest on how this storm will impact you coming up next. it may be the best investments ever. if you bought this item in 1978 and then held it, you would be one very happy investor. what it is when "street signs" returns. i love having a free checked bag with my united mileageplus explorer card. i've saved $75 in checked bag fees. [ delavane ] priority boarding is really important to us. you can just get on the plane and relax. [ julian ] having a card that doesn't charge you foreign transaction fees saves me a ton of money. [ delavane ] we can go to any country and spend money the way we would in the u.s. when i spend money on this card, i can see brazil in my future. [ anthony ] i use the explorer card to earn miles in order to go visit my family, which means a lot to me. ♪
we are following a developing story because a massive winter storm is bearing down on a large part of the u.s. the storm has been deadly, killed at least 13 people and left thousands without power moving here toward the east just as the busiest travel day of the year approaches. the the weather channel has more. kayla? >> hi, mandy and brian. you can see where all the rain is falling and now at least that freezing rain has moved out of texas. however, you see the area in pink and blue heading into tennessee and up in the northeast corner of arkansas, that's where the icy conditions are now. we have this moist air meeting with the cold air that's the problem we're having. lots of moisture and cold air and we have a wintry mix going on. we expect that today from little rock to memphis and then that's going to start tracking towards the east so that wintry mix now meeting all the way over to the carolinas as we get into tomorrow. of course people getting ready for their holiday travel and we could see ice accumulation from
nashville right on over to asheville, likely in the areas in the dark purple but possible in the areas of the light purple and then talking about tuesday, and the northeast. huge population segment from washington, d.c. to boston and, of course, we've got snow as we are in the inland portions of the new york state and pennsylvania areas and then right along the i-95 corridor rain. but in between that the icy area that could be a problem and some of the rain falling, two to four inches. see that as we get into tuesday night. could make for a difficult commute fors those heading out to their holiday. by wednesday the rain continuing, rain/snow mix through the center of pennsylvania into new york state and more snow on the back side of this system as well. a bit of a treacherous run. everyone needs to take it easy as they head out on the roads. >> drive safe. >> the weather is working against travelers and retailers this week but if you manage to hit the road you will finds gas prices are lower than they were a year ago. sharon epperson has today's pump patrol.
>> gas prices are up about 7 cents a week ago as drivers hit the road for this holiday week. we are looking at the national average at $3.28 a gallon near the lowest levels of the year but gasoline prices have been rising due to a number of outages at refineries around the country, mainly the largest in the country which is in port arthur, texas. texas gas prices have spiked some 16 cents in the past week. but drivers in sperry, oklahoma, pretty happy paying $2.78 a gallon for gasoline. that's the lowest gasoline price in the country. and there are prices below $3 a gallon in two key states, oklahoma, and kansas. in fact, we could see the national average below $3 a gallon some analysts say next year if oil prices continue to slide. and that's today's pump patrol. back to you. >> thank you, sharon. speaking of driving there is one surprising trend in retail right now that i questions maybe based on the weather is not that surprising at all.
let's talk about that and the fight for the best deals heading into a minorly important shopping time for america and bring in price grabber's jeff gold stein. before we get into your trends stuff there has been this heavy surge in people searching for car tires? >> yeah. that's right. >> it is one of our top ten trending products over this weekend. i think it's a sign of two things. >> snow? >> that's a good gain. people buy a lot of stuff on-line. >> yeah. >> including tires. and it's getting cold. >> it sure is getting cold. i understand that men's boots are up there as well then some. >> yeah. exactly. we're also seeing men's work boots being very, very popular item as well. and again -- >> the manzier? >> doing okay. we can get you one if you would like. >> what do you think retailers are trying to do in terms of combatting show rooming this year and will they be successful? >> so show rooming is a huge
challenge for retailers this year. about 50% of people in our recent survey who are going to be mobile shoppers are planning to do show rooming and retailers have a number of strategy they're using. price matching much more aggressively this year. they're using their loyalty programs much more aggressively as well and then you're seeing a lot of free shipping offers. you have this bundle of strategies retailers are using and seems to be having some positive impact. >> i forget to tell you on "street signs" i can't speak for cnbc we have banned the term cyber monday. can't stand that term. we're going to ban it. >> okay. >> isn't every day cyber monday? >> it is for us. >> oh, shop on-line. 83% will. in your view of the future will we be left with a bunch of empty malls, tumble weeds and yogurt shops? >> i think there's going to be a place for malls in the future. i think what you're seeing with
retailers, is you're seeing them start to respond in a way more impactful than it's been in prior years. one of the areas that retailers have been very successful in combatting show rooming and other on-line only tactics is with customer service. in our most recent survey we found that consumers are saying that customer service is the single most important factor for them in shopping and it's a way for retailers to distinguish themselves. >> i totally get that. >> that's not true, though. that can't be true. >> i mean i totally get that customer service is important. a lot of people like customers service. but the statistic don't lie. we're heading in the direction of malls eventually being empty. so at the end of the day, do you think black friday, cyber monday, all of these special days will be completely obsolete? >> i don't think so. look, holiday shopping surges for a reason. people shop during the holidays because it's the holidays. and i think people will continue to go to stores and i think --
>> is there anything they must go to stores for? what has pricing power? what still gets shopped at brick and mortar in a heavy fashion? >> people are still buying just about everything, but in particular, it is the noncommodity goods. the things that you need to really it touch and feel. apparel is a great example of a category. >> beds. i'm not going to buy a bed on-line until i have laid on top of it and bounced on top of it and seeing how soft it is. >> yeah. you're going to a store. you might buy your tires on-line. >> still ahead maybe price grabber can help you with this. which is the best bet for your living room, apple tv, rocco or chrome cast. julia boorstin stacks them up. >> herb greenberg is here. draw a battle line in the sand over herbalife. herb live makes his case when "street signs" returns. clients are always learning more
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chicago. who would have thunk that. >> snowing in new york in, you know, on saturday night. >> i mean, chicago snow. that's something. but i think you got my point there. either way there is a big storm headed this way, and i take every wednesday before thanksgiving off because three years ago, it took me three hours to drive home. i finally pulled over, stopped, had a glass of wine and ate dinner by myself. it's a tough travel day. this weather will make everything worse. >> you should start tonight. >> i just apologize for the snow sar cas m. >> the hot gifts this holiday season is streaming tv devices like apple tv and google chrome cast battling to get you to buy their governing councadgets. >> now the holiday battle between these video players is heating up. the $99 apple tv announcing two
new apps including yahoo! screen which you won't find on its rival roku and will soon feature katie couric. another competitor google's chrome cast added access to hbo go. th two gadgets locked in competition are apple tv and roku which cost between 49 and $99. sales are neck and neck here in the u.s. but apple has a wider global reach selling 13 million ufits world wide as of may xurds to the 5 million roku boxes sold in the u.s. roku and apple tv have a lot of similar content, big apps like net flicks, hbo go and hulu plus watch espn and the mlb and nba channels. roku's 1100 channels, 4700 news services, amazon prime and pandora dwar l's 30 channels.
apple does have unique access to itunes movies, tv shows, music, radio and youtube. and now google is stepping up competition with its $35 chrome cast that launched in july. a few options but are popular ones. netflix, hulu plus, pandora and youtube and google play tv music and movies. which one will win? apple has special appeal to iphone and mac owners who want to stay in that apple universe. those looking for a low-cost option roku and google could make headway and since it's all about the content we can expect some more announcements about new apps and i think we'll get more especially from applep. brian, back over to you. >> all right. julia boorstin, thank you very much. up next, perhaps the year's toughest stock. its share price continues to soar despite a long list of setbacks from the company. who it is up ahead. >> street talk is coming your
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record highs here, nasdaq look at that, cracked the 4,000 mark for the first time since september 2000. i think we could say complacency is pretty high as the vix is low, at historically low levels down 30% so far this year. >> you could say that probably laugh the stocks that were in the nasdaq when they hit 4,000 in 2000 are gone. >> that's a good point. >> that was a different market. no offense to anything, i don't like to make the comparison because the stockses, the makeup, leaders that were so different, i was at the nasdaq in '98, '99, and 2000 with commerce one and whatever else. >> it's not apples and apples. >> apple wasn't doing well then either. >> street talk time hitting off the radar investment advice every day for you. take a look at activision blizzard added to the select list. >> steeple analyst reiterating
their buy rating but adding to the super special select list. they're confident the new year will be better for activision blizzard. share price appreciation. by the way they made room for atvi by dumping disney from the select list. >> we've got a rare upgrade for the shares of caterpillar which has been fairly unloved this year. >> that's an understatement. stock up to 2%. upgraded to a buy from a neutral, bank of america, merrill lynch raised their target to $100 from 87 about 20% higher than caterpillar shares are right now. they say the power systems group, we don't talk about that much, should help stabilize cat earnings. that stock needs help, down 7% year to date. >> we've got stricker being upgraded to outperform from market perform at bernstein. >> stock up as percent to $75. they received a price target increase to 84 from 75, about 12% more than the current price. the stock at the old target.
the firm sees a recovery in the hip and knee market connected to the leg market. >> name we don't talk about heartland express. >> iowa based trucking company doing well up 2.5% to 18 bucks upgraded to an out perform. their target on heartland to 21 from 16. this trucking company has done great. they're up 25% in just the last month. >> and we've also got surgical care affiliates, lowered des might five initiations this morning. what gives? >> new company. all the analysts recommendations are coming out. like to go through it to let you know what they're saying. a deerfield illinois, all initiations are buys or overweights. we've seen targets, you know, up in $35 range. it's citi and barclay's that stock at $28.73 down today. i ipo'ed at 24. every price target recommendation was above the current price on scai. we've got talking numbers. >> we have talking numbers time.
here's why some might be concerned about the rally. we've talked about this before, all right. the performance of the leaders in the last month on the s&p 500, you got names like with all due respect first solar, jc penney, piteny bowes, ze rock. good companies but not what you think of as market leaders. so is the rally getting a little bit you know maybe weak because of these names being leaders. start talking numbers joined by andy bush and zach karabell. andy to you, i'm not bashing pity beaus or zero, but who's going to lead us to the promised land it's not necessarily a copier or stamp company. >> no. you would not think so. people are throughout the marketplace and really throughout the country where i travel, everybody's talking about is this a bubble, have we hit the peak and, you know, it's really hard to call a bubble but what i would say as far as for
solar is concerned, this is a good example, the thing has been momentum driven. take a look at the chart, this thing is just like crazy up and crazy down. and when something like this stalls out, that's when i like to get involved with the stock. if you take a look at this thing, just had a high of 66. it's trading down below its 10 day moving average at 62, down around 59.5. the 30 day is around 57. with something like this i try to anticipate further downside softness and therefore i wouldn't mind selling it here right around 59.30 or 59.50 a stop above 62.25 and looking at 47.25 on the downside so we're anticipating the ten-day moving through the 30-day eventually. jumping the gun on this because we're going to try to get into it. this thing is momentum driven if you wait for something to happen it's usually about too late. >> right. you wouldn't mind selling it at these levels. >> no. >> what about you, zach, from the fundamental perspective what do you think about first solar? >> on that point that brian was
raising any given market you can find four names or 24 names or 124 names trading in the wrong way relative to whatever you think they ought to be trading. >> are you bashing my meta point. plus one for saying meta. >> i'm highlighting them. to first solar to add to this, slice some sacred cows, kanka nards the idea that the solar industry was a stimulus act of 2009 creation that was going to lead to the solyndras. world that isn't true. it's a viable industry providing energy solutions throughout the world. on the other side the idea it was going to replace fossil fuels and become the brave new world of solar rays in everybody's very, very large backyard, is also not true. first solar is this mid-ground they have a good technology, american manufacturer, right. they didn't go out ofs faced with massive and cheap chinese competition which a lot of people thought a few years ago. it is still way down from its momentum peak a few years ago.
i don't know how to trade these names or invest in them because there is so much of that confusion surrounding them on both the short and the long side, that i find it difficult having tried and followeds these kinds of companies for years to have confidence where i am in an equities and maybe that's where andy, maybe you're better off trading these as trades rather than attempting to figure out the fundamentals. >> sometimes the technicals are more effective. some great meta discussion there. i'm going to make a transcript of this conversation on my xerox copier and mail it with a piteny bowes stamp. today on "mad money," jim cramer speaking to the first solar ceo, james hughes, going to answer what he thinks is going on with the stock, super hot. kek out also the on-line edition of talking numbers in our partnership with yahoo! finance. >> still ahead a battle to end all battles. it is herb versus cramer on
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the dow at an all-time high, plowing higher for seven straight weeks and the s&p at a record high right now and complacency is pretty high when you have the vix down tos historically low levels. if we take a look at what the nasdaq is up to, sitting at 4,004 right now. >> the markets keep going higher and that has our buddy herb greenberg worried. in fact, he also got freaked out when he heard jim cramer say this last week. >> it is the most bizarre thing i've ever seen. some things just aren't selling. pure eggs are selling. david einhorn didn't like cure ig. this idea that says a hedge fund
is no good sell it. you can't do that anymore. because a hedge fund says you have to dump this stock that's losing luster. people are starting to realize these hedge funds are more self-interested and not out to help you but their invest r investors. we are in a moment where there are some companies doing incredibly well. >> all right. as bring in herb who is shaking his head in his new by the way i'm going to give you credit for your new blog excellent as always, good start, herb on the street, on the street.com. you were on a plane and heard this you said you had to be physically restrained by the flight attendants because you wanted to rip the door off jump down and get cramer, how come? >> i was so angry when i heard him say that especially the last line about the hedge fund. such a tell of this market. i wrote about this morning on the street. i understand his head where this is a market where rigger and discipline is trumped by the trade, the story and the stock because he's talking about is
discounting the risks with these companies. you know, we can use green mountain, herbalife, there are a ton of other companies with similar situations where the trend is not their friend if you look at the fundamentals but for whatever reason the market wants to bid them up. that leads to such complacency, brian. >> how pervasive to you feel that cramer's thinking is right now and to what degree, if history is any guide, we might be near an inflection point. >> whenever this happens we are close to an inflection point. i was on air when in the studio telling you some guy saying when you're on something it goes straight up. and i gueet these calls, herb, you're such a fool, green mountain, i bought it, my buddies bought it, we're making money betting against you. bet against me, because that's always a sign of a near inflection point. shows we are in a market where people just don't care. making money is so easy for some of these people they're going to get blindsided learn the hard
way, these companies have risks because there are fundamental -- underlying fundamentals there my friends. >> first off, you're the george saint pierre of stock commentators, you take a beating and come back and somehow winning. that's the extent of my mma knowledge. here's why, you're dealing with companies heavily shorted and contested. people are smart enough to know ifs there's a giant one-way bet, perhaps short. that in the slightest bit of good news, the slightest bit of not bad news, you can have a what did josh brown call it? a rip your face off rally? >> you're right. in this market you can. but by the way, in the slightest hint of bad news, it goes the other way. and that's when these companies get up and deliver the news or have a preannouncement or in the case of herbalife something come out of left field with their audit unexpected ors tesla, well, elan musk telling you the s is selling better. what happens if it goes the other way. these are the kind of it things
that get these stocks and this market they get them -- give them a good shellacking. you also have the other events that affect the overall market that we tend to forget about whether it's europe or this or that. that come out of left field and the first stocks to go are these. >> a black swan event i think is what you're referring to. thank you always for joining us. great to see you. really like a little accenting gng going on there. >> all fired up. >> we reveal what might be the teflon stock of the year soaring des might all kinds of bad press. >> one of the greatest investments in history. if you bought this for a mere 1200 in 1978 and held it you would be nearly half a million dollars richer today. what it is when "street signs" returns. (vo) you are a business pro. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national.
throughout the show we've been asking you to try to guess what we're calling this year's teflon stock, up 76% year to date despite major setbacks. i said it began with lumber. know why i said that. >> i don't. >> the founder used to work for a lumber company, made a fortune and then got into airplane building and used the skills he had with wood and everything
like that to help build airplanes. >> that makes a lot of sense. >> it's boeing. i didn't know that until i looked it pup. lower after announcing one of the setbacks the company urging more than a dozen carriers to avoid flying the 747-a and 777 dreamliners due to ans icing issue with the engines. they don't want them near a thunderstorm. this is the latest in a long line of problems with boeing planes. to phil lebeau, a little downturn for boeing today but overall this stock has been unstoppable this year. >> you go back to january and we plotted sort of the major headlines. we're not going to show you every headline over the last ten, 11 months but some of the major ones. back to january 17th when the faa crowneded the 787 dream liner and the stock was down around $70 a share and people said it's going to be a terrible year for boeing. on june 21st, the stock continued moving higher. air bus landed more orders and this is where we're going to see a pause.
didn't happen. october 8th, air bus won orders from jao and a and a two zap sneeze airlines long tim -- japanese airlines for boeing. the stock kept moving higher. and then finally last 16th, machinist reject a new contract from boeing. a number of people said, a-ha, this will be it. the problems boeing has in the future as they bring the 777x to market. here's the reason the stock keeps moving higher. a lot of people looking at the head lines are overlooking. let's start with the 787. dreamliner production is on track to hit ten per month. the target the company set by the end of this year. then production will be increased by 2015 and then by the end of the decade. when you look at overall production and overall delivery rates, this company is on schedule this year to deliver a record number of commercial airplanes. the most ever in the company's history. and the backlog stands at 4700 planes. there you have what a lot of the
bulls are looking at. it's that backlog. it's the dleliveries. when you look at the earnings, year to date, first three quarters, boeing has grown earnings three times faster than the s&p 500. think about that. that's why the stock keeps moving higher. >> indeed. thank you very much for that, phil lebeau. seems interesting when you lay it out like that in terms of the timeline. the question is, though, how long can the stock prove to be teflon going to the future? joining us from barclays, carter copeland making the bull case for boeing, and carter worth from oppenheimer who just added boeing to his sell list last week based on the technicals. i'm going to stare with the bear case, carter worth, why is this a sell? >> sure. it has to do with mechanical glitches. there's always mechanical glitches in a mechanical enterprise. we know a stock in a big ee lib yum, all of '10, '11, '12 range
bound which has doubled moving from 60, 70, to 130, 140, the stock has everything in it that lies ahead. it's discounting now the very good backlog, robust sales, et cetera, so forth. it's not so much a question of the day-to-day headline as it is the stock has come a long way. we think it's a case for trimming longs, taking profits, writing calls, doing something. >> carter copeland, you beg to differ. you have $145 price target on the name. lay out the bull case. >> yeah. i mean, it's obvious the stock has come a long way. obviously, the valuations come up. and while they've had these teethes problems on the 787, they've delivered a lot of earnings and even more importantly, a lot of cash. i think as we look forward, yeah we know the stock's gone a long way. the question is, can it go further? i think the answer is yes. the real case for boeing at this point comes down to the scarcity value of growth. it's hard to find industrial stocks that look like they're
going to grow organically at the top line. 10% next year. grow eps sustainably over the next couple of years in the mid teens. at the same time, deliver a lot of free cash flow. it's hard to understate the importance of free cash flow the company will generate. they'll spend billions and billions on share repurchase. they'll talk about that in a couple of weeks. you look at the boeing story and there's more growth, more visibility and a lot of cash and capital deployment. that's scarce across the industrial landscape right now. >> i understand you're still there. if we haven't seen any achilles heels big enough to knock this stock off its perch. you've been covering this sector for a long time. do you see anything that could make boeing stock go down, apart from a technical argument? >> i think it's the execution story. this company has a long history of being able to execute in terms of delivering new aircraft, hitting their targets. there have been delays in recent years but i think if they were to somehow fall down and this
777x becomes a debacle, it would really have to go far in order for it to hit the stock. generally speaking, most people look at boeing and say, these guys are engineers. they know how to build and deliver airplanes on time, efficiently. they'll figure out any problems they come across. >> you know, carter copeland, no one is doubting boeing's prowess. my concern has to do with a little company called comac, coming out of the c-919 in 2015, looks shockingly like the 737, but don't you think that's a big new competitor to boeing? >> look, we'll see if that plane is actually delivered in 2015. i think building airplanes is quite a challenge. that's why we only have two guys building big airplanes in the world. i think the next chinese product is probably the one that boeing and airbus will worry more about. i think at the current point in time, you know, you've got to look forward. both boeing and airbus are
introducing, now, re-engined versions of their existing products which already so successful so i think that takes steam out of c-919. given the order books of those airplanes, the customers have ordered with their pocketbooks and telling you, boeing and airbus dominating this market. >> thank you so much for weighing in. a quick programming note. the ceo of 3-d systems will be on "fast money" tonight. that stock has been on a tear tonight. that's coming up 5 p.m. eastern right here on cnbc. right here on "street signs" up next, one of the world's greatest investments. twins. i didn't see them coming. i have obligations. cute obligations, but obligations. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock.
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just a live look at the president talking about immigration reform at chinese recreation center in san francisco. we'll be following this all day. if any news breaks weeg bring it to you here on cnbc and on "closing bell." >> this is the kind of vending machine we want. it pops out champagne. they they are in department stores in england. can you get a crystal-studded 200 millimeter of bubbly for $29. we asked you if you bought this for a mere $1200 in 1978, big money back then, and held onto, it you would be nearly
half million dollars richer today. robert frank, what's undoubtedly the world's greatest investment? >> as long as you didn't drink it. a bottle in 1978 would have cost you $100, about $358 in inflation-adjusted dollars today. a case just sold for $476,000. that makes it the most expensive case of wine sold at auction, about $39,000 per bottle. now, the case was sold by christie's in hong kong along with $9 million worth of other wine. again, if you bought this for $100 back in 1978, you would have done much better than the s&p, which increased by 18 times. some people say, if you bought the yankees for $10 million like the steinbrenner family, that would have been a better investment. but maybe that's the only one. >> would you drink it? if somebody offered it? >> and paid for it. >> open one, enjoy 11. >> absolutely.
i heard it's really good. maybe not that good. >> it better be good for that price. >> it's pretty good. >> i would just pour it on myse myself. oh, wait, it's not 1999. i went back in time. my apologies. >> record high watch here for the markets. join us for "closing bell" next. thanks for watching "street signs." welcome to the closing bell. i'm kelly evans at the new york stock exchange. >> i'm scott wapner in for bill griffeth. any gains for the dow or s&p today would be a new record. then the nasdaq trading above 4,000 for the first time since september of 2000 today. but will it be a close above 4,000? it is right now. can we hold on for another hour? >> is the market getting ahead