Skip to main content

tv   Street Signs  CNBC  December 10, 2013 2:00pm-3:01pm EST

2:00 pm
>> it's interesting because buy the rumor sell the news. is crisis over? sell the news, that's the question. >> good question. we will wrap it up there. great to be with you as always. >> great to be here. >> that will do it for this edition of "power lunch." thanks for watching. >> stay tuned. "street signs" begins right now. with all due respect to our friends at "power lunch" are things all that rosy for the american economy? welcome to a sunshine "street signs." this hour we're going to lay out the reasons to be optimistic heading into the new year and some of the sticking points we still face. your other big topics how gm just made a huge move to help bust done the glass ceiling, stealth stocks that have been quietly on a roll and a question for you, would you trade a portion of your income for five or ten years, for money right now? meet the ceo of a company offering just that, mandy. >> hello, everybody.
2:01 pm
we're not allowed to say it's a dull day out there in the markets so let's find action for you, although there's definitely no sunshine. stocks earlier on the day were trying unsuccessfully to chalk up their third day of gains. we're losing that battle. we are down. the dow by the way is down for december so far, the s&p is at break even. guess what? the s&p has history on its side. the s&p has not suffered a down december since back in 2007. >> as you know if you've been watching or listening to cnbc most of the day we're tog about the financial crisis potentially being over. do not pop out the bubbly yet because before we get to our reasons i want to ask you a question. we have steve, herb, mandy. >> and the glass. >> can you see this. >> see that, america? >> yeah. >> how do you view that glass? >> i view it as glass half full. >> definitely. >> i know you, half empty. >> three fifths full. >> here we gop. it's vodka, you're wrong.
2:02 pm
that's the idea of this. i know there's been a lot of great signs and we've been the kings of hope for about 2 1/2 years on "street signs." pounding the table optimistic and people were calling us all kinds of stuff. here's reasons to still be concerned about the american economy. 10.9 million still unemployed. many over six months or a year. the recovery has been narrow. limited wage gains in the middle of the country, mom and pop, not benefiting and the third variable, the, quote, steroids of the fed. everyone has an opinion of how much they've mattered. we don't really know. at some point we'll find out. bring in dan greenhouse and adam grimes. welcome as well. also as well herb and steve with us. i'm going to start with you, dan. i laid out the reasons to not be optimistic. are any of those signals leaning more positive these days? >> well, you brought up reasons why the financial crisis might not be over yet but that's
2:03 pm
separate from whether or not up with would be opt mystic. those points are entirely valid. whether or not you're optimistic really results in whether or not you think there's a fundamental change in the coming let's say six to 12 months compared to the previous six to 12 months and in that regard the answer is probably no. >> what about you, adam? handing around the glass you did not give your answer but judging from the notes in front of me i'm going to guess you're a half full guy. >> i'm very much a half full guy but also concerned about risks and i think one of the big risks is, you know, the saying all we have to fear is fear itself. what we have to fear is lack of fear. people become too complacent. investors become too comfortable, consumers too comfortable that's when the possibility of something unexpected happening and the markets having a bad reaction. that's the primary risk i see. >> i want to classify what we're talking about when we say the word crisis here, steve. is it fair to say we may or may not be still in a crisis or is this just the new normal? >> i think crisis is a state of mind.
2:04 pm
and i think we're well out of that state of mind of crisis. i think the notion you could wake up tomorrow morning and the markets would be evaporated or otherwise in some state of em mowlation is long passed. i brought a single chart along with me, the cleveland financial stress index which tries to measure all -- >> wondering when you were going to show that off, man. look at that right there. we are down to depths we have not seen since '06/ '0. i understand the issue of complacency. doesn't mean the next step is crisis. i think we can have arguments about whether or not we're going to grow 2% or 3%, but i don't think there's anybody calling for minus 2%. they put it up there big. 2.4% so far this year. we're upgrading the fourth quarter because of the inventory number this morning, hoping to do better in the next quarter. i think we're out of the state of mind of crisis. does that mean there aren't 10.9 million unemployed? that's a crisis in and of itself but not a broader economic
2:05 pm
crisis. we need to solve that problem, but what i think we're doing is we're moving way from a place where the fed can handle the problems that are out there. when i look, for example, at the unemployment problems in the country, the people who are unemployed short term, get back to work. it's the long-term unemployed, i think that's a job for the other side of the street in washington, the fiscal side not the monetary side. >> you know, adam, everybody has an opinion on how much the fed has mattered and continues to do so. in your mind can you put a number to it? >> it's hard to put a number to. i think the thing to think about going forward is, how the market discounts expectations. and it's not so much the action, it's what people expect and how those expectations are met or fulfilled. >> and i'm glad we brought along mr. sunshine over here, herb, because even if this particular crisis is over, there's always another crisis lurking out there. >> another crisis around the corner. we've solved some of this. >> that's total garbage. >> that is not garbage.
2:06 pm
we go from crisis to crisis -- >> no, we don't. since when? >> the last ten years that's your economic models. >> last 30 years. >> from '80 to '90 we had a lot of crisecrises. >> it gets to the point of complacency. people around me right now saying, another 30 years we're in the clear. i don't know that because here's what i don't know. i don't know what's going to happen in washington. i really don't know what's going to happen in washington and neither does anyone else and that will become a crisis the next time around. >> can i make a point? >> herb, the idea that something bad will eventually happen, is neither an xik nor a financial model. -- economic nor financial model. >> that's a hel hell of a way to live. >> you cannot wake up and say i'm going to make my investment decisions because i believe perennially something bad or awful will happen. you have to have a root from here to there and a precipitating event or a catalyst. >> you said something, steve, very smart at the top. you always say smart things but
2:07 pm
this caught me. crisis is a state of mind. i will give you this, herb, to some people losing their cell phone charger is a crisis. oh, my god! you see people melting down in airports. other people, get cancer, fight it and win. right? the idea of what a crisis is, is very different to many people. >> and if i could jump in here for a second i want to build off something steve said and rebut something brian said. >> here we go. >> to be clear we hahave lurchi crisis to crisis, savings and loan, the decline with the crisis in '94 the asian crisis and then -- >> i thought you were talking about domestically. we can say the tibot had an issue in '96. >> globalized world still affects -- >> come on. >> i think steve hit the nail on the head from when an investment standpoint you can't make investment allocation decisions based on the idea something might happen because, of course, something always does. but i think tangential to that is the important question of the
2:08 pm
day, which is what separated out the previous crisis, the 2007 crisis, from the other ones i mentioned that resulted in such a catastrophic outcome. >> do we have an answer for that. >> remember the cashmere crisis of '62. mongolian goat shortage. >> prior to the prior crisis a fed, overly accommodative fed, i worry what happens when we come out of this crisis. no, what i worry about -- >> we're saying we're out of it. >> i agree. >> not everybody. >> the people are still in it. >> some think we're snil it. >> macro perspective. >> as steve has talked about all day quote/unquote tapering occurs, is it going to be a gradual impact on -- for investors? is it going to be something that will stop us in our tracks? q. yes, that's not a crisis. but it is something you must consider. >> can you adjudicate on this? >> something very quickly -- >> i think the issue is risk management, right? it makes sense. you can't live your life, your
2:09 pm
investment life from a position of fear. you have to seize the opportunities. >> or use the crisis as an opportunity. >> well, i think a lot of people did. >> that's the key, mandy. one more quick thing which is people shouldn't confuse crisis with change. things are going to change and you need to be agile and defenda deft on your feet. just because somebody moved furniture to the other side doesn't mean it's in the wrong place. >> always remember especially in this digitally connected constantly on world, there's a lot of people who benefit from reminding us or telling us with re in a crisis, right? the government in particular. >> doom. >> we are in a crisis only we can save you let us pass the 6,000 laws, they'll fix your life. a lot of people benefit from that thinking. you have to be careful about that. >> i think the cup collusion is, crisis is a state of mind, dan, adam, steve, herb, i like that, very philosophical. >> that's the zen today. >> the yogi steve. coming up next, she is the most powerful woman in detroit, and
2:10 pm
she just hurled a boulder into the glass ceiling. mary barra and why it's take son long in ex. >> stealth stock studs. enough said. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade-proud to be ranked "best overall client experience."
2:11 pm
2:12 pm
huge news out of general motors that the company named mary barra it first female ceo. to phil lebeau with us. >> she's not the first female
2:13 pm
ceo at general motors only, the first to run a major automaker. think about this industry, long dominated by men, now mary barra will be running general motors. who is she and some might be saying is she the right person to run general motors. the answer is she's a 33-year veteran of general motors. her father worked as a dye maker on the pontiac line at general motors. her background coming up through the ranks on the operations side. here's what she had to say earlier today abe the opportunity that she now has. >> i've worked at general motors for 33 years and always known it's a great company. the men and women of general motors are so dedicated and i truly believe we have the best team on the field. so it's an honor for me to be able to lead this team and to continue the momentum, to have the best cars, trucks and crossovers with the highest quality and continue to drive value for our shareholders and stakeholders. it's a true honor for me to be a part of this team and to have the opportunity to lead it.
2:14 pm
>> mary barra taking over as ceo starting january 15th, replacing dan akerson, he is stepping down as ceo so he can spend more time with his wife who has advanced stage cancer. he was asked during the conference call is mary barra the right selection and how much has to with the fact that she is a female? here's what he had to say. >> mary was not picked because of her gender. people always said to me, i'm always looking for talent, in the company, outside the company, we've mixed and matched from internal and long-time gm professionals, and i've said this publicly before, mary's one of the most gifted executives i've met in my career. she was picked for her talent not for her gender, not for political correctness, anything of that order. >> as you take a look at shares of general motors stock not much reaction to the news of mary barra being selected as ceo. although we should point out
2:15 pm
barclay's moved gm to its top pick and they made a point, brian, in making that announcement that moving gm into a top pick category, that mary barra is the first person to take over as general motors who comes from the engineering side of the business in a long long time. that's what they need, brian and mandy. >> phil, thank you. but do stay with us and join the conversation. i want to bring en routers and ceo of the catalyst group, they released a new report about women in the work place. thank you very much for joining us. paul, since phil has already thrown the question out there, a couple times, do you think be that she is the best person for this job and did her gender play any role? >> well, i'm sure her gender played a role. i'm not sure that's a bad thing, however, mandy. look, not considered for their gender for a long time. here's what's getting lost in the first female ceo thing.
2:16 pm
she is in every other way the most traditional choice. as phil said, you know, she is a gm lifer, her father is a gm lifer. she did her university undergraduate work at the kettering university which used to be known before its name was changed some years back as general motors institute. i think the question is, can someone born and bred in the gm system continue the change and transformation that dan akerson really pushed forward. and that's the big question with her. >> can i just pick up on what you said initially, paul, that is i'm sure her gender did play a role in what way and why? >> i mean, basically our reporting has turned up today that essentially that, you know, the female members of the general motors board were strongly behind her and were really pushing her. look, i'm sure it's not only because she was a woman. but the fact that, you know, this gave general motors a chance to make a statement and it's not necessarily -- in fact
2:17 pm
probably not at all a bad thing. women play a huge role in car buying decisions around the world and that's been often ignored by car companies to their detriment. >> deborah, the one thing that impresses me about mary barra lost in the gender discussion this is a person who worked her way through college getting an electrical engineering degree while being a full-time student. you know, we need to get -- and until we stop getting into these discussions it kind of shows me we are still stuck in it the fact ha we're talking about it. >> we're delighted to see mary barra advance to this role and it's something to celebrate. it's an important milestone. the day we'll really celebrate is when we stop counting the firsts. in many ways it's such big news as you say, the catalyst census released today, show us women hold only 14.6% of the senior officer roles in companies. she's breaking the mold and really redefining what
2:18 pm
leadership looks like. >> what you do you think that is? why do you think the findings are so low, deborah? >> one of the things that's really interesting, catalyst research has shown when you look at the critical hot jobs in organizations, that men are more likely to have access to those kinds of opportunities that give them visibility and the opportunity to succeed. you know, her previous role to being appointed ceo, was a leading product development, really critical to the success of gm. so when we look at 14.6% of women in those top roles, what we really need to do is see them advance because that's the pipeline to the ceo suite. >> phil, your thoughts on this? >> might thought is along the lines of what paul was talking about earlier, the fact that she comes from the side of the business on the product side, the engineering side of this business, that is both good and bad. she stared over the cliff with the rest of the gm executives.
2:19 pm
she saw how close they came to completely going out of business. and so i think that has certainly energized both her and some of the other executives that they do not want to make the same mistakes. she's famous for telling the gm designers no more crappy cars and that's kind of the blunt language that a lot of people were cheering inside the company. >> i loved your talk, phil -- >> that's what need to be said. >> your talk on "squawk on the street" and you talked about how it was like a ten paige general motors manual on how to dress and she ripped it up and people came to her, high-level managers, how do i now dress at work? that was the culture of general motors? >> paul talked about this too. a lot of deeply entrenched and frankly when you look at it kind of humorous and foolish ways that they used to do operations at different parts of that company. dan akerson has been pushing them, change change change. and mary's going to pick up that mantra now. now the question is whether or not she can affect that change to the degree that many believe
2:20 pm
gm still needs. >> we wish her the best of luck. paul, deborah, phil, great discussion. thank you for joining us. >> thank you. >> all right. still ahead, we're calling them stealth studs. the stock stories that nobody else is talking about but names that have been big-time movers. >> also, herb, needed a little help yesterday and we brought you an update on his worst ceo of the year list and that is all when "street signs" returns. i don't just make things for a living i take pride in them. so when my moderate to severe chronic plaque psoriasis was also on display, i'd had it. i finally had a serious talk with my dermatologist. this time, he prescribed humira-adalimumab. humira helps to clear the surface of my skin by actually working inside my body. in clinical trials, most adults with moderate to severe plaque psoriasis saw 75% skin clearance. and the majority of people were clear or almost clear in just 4 months.
2:21 pm
humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. make the most of every moment. ask your dermatologist about humira, today. clearer skin is possible. [ bagpipes and drums playing over ] [ music transitions to rock ]
2:22 pm
make it happen with the all-new fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. get 200 free trades when you open an account. yep. got all the cozies. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. so i knit until it was full. you'd be crazy not to. is that nana? [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex.
2:23 pm
:22. hope you're doing well wherever you may be. if your name is not tesla, amazon, apple, greenberg, jc penney, drury, you're probably not getting all that much attention these days. some of america's best known companies have been studs as of late and nobody seems to be paying any attention. nobody except for the great dominic chu. dom? you stealth stud you. >> i'm trying not to laugh because i look at these stocks and i say to myself why aren't we covering these more. we're going to give you a snippet of a few. first of all drug company forest labs. a stock that's up 58% so far this year and if you take a look at shorter term performance of the stock, it's up again about
2:24 pm
15% just over the last month. this company is going through its own strategic review trying to figure out how to cut costs and looking to buy back more shares. bullish story somewhere for these investors. another one we're talking about here is h&r block, one of the biggest tack preparers in the country, up 56% year to date an it's not tax season just yet but this company over the shorter term is up about 4% just in december alone. so as we approach tax season, that's one to watch. by the way they report earnings after today's closing bell. one stock you will want to watch hrb. what about one of the biggest companies in the world, we're talking about exxon mobil, yeah, it's been an underperformer relative to the overall market but hit an all-time high yesterday and it was the second best performing stock in the dow last week. over the course of the shorter term this stock has been up about 2% to 3% in the last couple weeks. when we talk about stocks it's not always about the momentum,
2:25 pm
guys. sometimes these big names can manifest themselves in great stock performance even over the shorter and longer term. >> thank you very much. talking about studs, dominic chu. yesterday herb told us he was having a hard time, he was having a hard time picking his worst ceo of the year list. he reached out to you, dear viewer, asked you to help him and, i believe, you delivered. bring herb back in with an update. >> it is very interesting. they said there are a number of people who keep getting passed over as i said yesterday regarding abercrombie & fitch's ceo michael jeffreys and so what were the names? one a name i mentioned a number of times, caterpillar's. i don't know that he will be on the list yet. still thinking about it. the company during his reign has just not done well. is it bad timing, bad luck or bad execution? i haven't done my thorough analysis. go through some of the other names. one name that came up a number of times was jeff smisek of
2:26 pm
united. we had someone talking about a customer service and they were at the bottom. i fly united back and forth 3,000 miles each way, i see good customer service, bad customer service. that goes in more than stock performers because he's hitting customers where they hate it the most squeezed in the middle so et. >> third in the brand loyalty list yesterday. that's a sign. as a frequent united flyer, i've started to look for other airlines even though it's nearly impossible out of newark because of lack of wi-fi, seats aren't comfortable and there's a reason they're number three on brand loyalty. >> he's got the reality is he has me hooked because my miles are so much there i just use it. that's my situation. next we have very interesting, we have eddie lambpert of sears holding. i once named him the worst ceo in 2007. he wasn't the ceo. he was the chairman at the time. you have to actually think about
2:27 pm
that. the reality is he's not going to be kicked out of the job. he can control that. then here's another one. a company i've gone after a number of times again, reader submitted this, paul ritchie of nuance communications. a company that has done little for shareholders. carl icahn in there right now. interesting to see if he stands behind ritchie or pushes ritchie out. then we have the name i perhaps received more pleas for to put on the list and that is, jon chambers of cisco. take a look at the company's stock over the past ten years, it's really done nothing and if you look at the performance, of course, it's been a continuous underperformer. >> you go away, think about it and come back and give us your findings. >> i'll do that in a week or so. >> thanks so much, herb. >> still ahead on "street signs." starbucks getting roasted today. plus, mandy, we have a message for jim cramer. jim, if you are listening, there's folks out there that want you to visit them. they are willing to do something
2:28 pm
crazy. i will tell you what that is coming up after the break. >> later on we'll be talking about booming barbies. not australian grills. the dolls. and a super big, super bold buzz kill. all those things coming your way. americans take care of business. they always have. they always will. that's why you take charge of your future. your retirement. ♪ ameriprise advisors can help you like they've helped millions of others. listening, planning, working one on one. to help you retire your way... with confidence. that's what ameriprise financial does. that's what they can do with you.
2:29 pm
ameriprise financial. more within reach. is caused by people looking fore traffic parking.y that's remarkable that so much energy is, is wasted. streetline has looked at the problem of parking, which has not been looked at for the last 30, 40 years, we wanted to rethink that whole industry, so we go and put out these sensors in each parking spot and then there's a mesh network that takes this information sends it over the internet so you can go find exactly where those open parking spots are. the collaboration with citi was important for providing us the necessary financing; allow this small start-up to go provide a service to municipalities. citi has been an incredible source of advice, how to engage with municipalities, how to structure deals, and as we think about internationally, citi is there every step of the way. so the end result is you reduce congestion, you reduce pollution and you provide a service to merchants,
2:30 pm
and that certainly is huge.
2:31 pm
i hope jim cramer is listening and watching i have a message for our friend. remember when we did our show on the willis company. great folks. they love jim. they were fawning all over jim. hello "street signs," we're here. we got a letter an this is what they say. they're desperate for jim to do mad money from the williston brewing company. if mr. cramer were to do his program here all of our male managers have vowed to shave their heads and grow a goatee.
2:32 pm
beau ya is strong. they're asking camer to come to north dakota, shave their heads. they included a photo, one guy already did it. >> i would be impressed if the female managers offered to shave their heads. >> folks in north dakota are fantastic and tough. i wouldn't put anything past them. >> talk about street talk. we have under the radar ones for you as well. first of all, lions gate, estimates and target raised at piper on the back of "the hunger games". >> they believe it should reaccelerate during december because of international results and raising estimates for "catching fire" and movie called "divergent" target from 45 to 40. 55.17% of upside. >> perkin elmer, some under the radar names, getting a boost. >> an australian bank. upgraded from an outperform to a neutral. the stock is at 40 bucks so she
2:33 pm
had to do something. about another $12 of upside. >> and stock number three a downgrade for quest diagnostics. >> cut from. they see the stock trading below where it is now, basically don't buy it. sell it if you own it. >> we have stock number four, firm jeron optimistic comments. >> upgraded from a buy to hold. better than expected metal stat datap p it's a drug to treat a bone disorder. their target is 10 bucks so they see nearly a double, stock 5.13. the stock down today but basically a double and -- >> mr. cramer, please. come on. >> even better than usual. >> i didn't get a hug. >> you're a big guy. >> that is from the williston brewing company. got that letter today.
2:34 pm
>> we went there. and we got a bakken beau ya. >> they couldn't stop talking about you. >> you did your fabulous oil when you went to eagle. this is the heart of america. this is where the jobs are. sometimes i get frustrated with the obama administration on the labor day when they get the number, we get that friday, i say why can't you help people get there and they always say we like all forms of energy, solar. total -- never responsive to what i ask but i'm a polite fella. >> the minimum wage discussion where to raise it. >> $2 $27 at the mcdonald's. >> signing bonuses, $27 an hour. they said they would -- all the male employees are willing to shave -- i don't know if they polled them. some had fine locks and grow the goatee. >> i like that concept. the concept. >> that's a terrific idea. and i do want to go to eagleford
2:35 pm
if they would shave their heads there because we've been to williston. this is america at its best. where the opportunity is. we have seen people my executive producer recently talked about a letter we got about someone who watched our williston program, moved there from california, where they didn't have a job, sounds like your dad's situation, the opportunity comes, and then you take it, the opportunities are there but we don't have great mobility in this country. you have to stay at the man camps. it's difficult to get housing. you saw that. but opportunities in louisiana, in texas, north dakota and colorado i wish people could get to. >> my hotel in williston i was walking outside, the car drives up with georgia tags, the roads are half dirt, 19-year-old kid gets out. started talking to him from savannah, georgia, left his life, said i hear there's jobs up here. drove from savannah. get the chills.
2:36 pm
19 years old still a kid. savannah, georgia, to williston, north dakota for a job. >> $200,000 a year. >> hope he got one. >> $200,000 for unskilled labor. our president and congress refuse -- i asked people when we went to the republican debate, would anyone help people get there. a bus ticket can change this country. it's fossil fuel and that's against the religion of this nation. >> this is all great while it's boom time. history has shown us that many booms have turned to busts. how sustainable do you think this is? >> i'll tell you what's sustainable take some money and invest it wisely, if the boom ends, you can go do something else. you can't invest wisely when you don't have any money. >> i have a different view on your bust theory. you may not be wrong. but here's why it's different i think. >> what's different this time sp. >> i hate saying that. >> i know. >> because of all the concessions saudi arabia made to their people over the last decade they are throwing money
2:37 pm
at the population, to keep them calm. i don't think saudi arabia can turn open the taps and drive the price of oil down like they used to do. >> they have a vested interest in keeping the prices high. >> they have to pay for their social programs. >> but this is a technology story. never forget, this is about trying to get -- getting more oil out of what you didn't think was possible. that's technology that's doing it. it's american technology. fossil fuels, they are scorned and hated in washington by both parties which is why these job when you talk to boone pickens i would go nuts, boone makes so much sense but he's not anti-fossil fuel. >> the message for you, thank you very much. we're going to talk about your fuel. starbucks. >> oh. >> down -- well, someone has a negative story. >> itg, talk some numbers. itg came out with a report concerned sales growth will slow for that. start talking numbers. hitting it technically and fundamentally. rich ross, fundamental grinder
2:38 pm
jon stevenson. would you buy starbucks at this price less than it was yesterday? >> oh, for sure, brian. if you want to perk up your portfolio this is one stock you need to own it. yes, it's had a great run and simply profit taking today. look at this company hitting on all cylinders. same store growth 6%. when you look at revenues growing at 10% that translates into earnings growth of 20%. that's the phenomenal. mcdonald's the golden arches would kill for growth like that. not only coming from there also on the cost side. better cost performance. coffee prices are down 27% and talking commodities earlier, that's doing well. look at mix, increasingly towards licensed stores versus company owned stores. the profitability and margins of a license store are 30% versus 13. this is something you need in your portfolio. >> don't see starbucks cutting their retail prices do you?
2:39 pm
percolating for you? >> i'm with jon on this one. in fact, it's a testament to the stock strength we're talking about it on a 2%, 3% decline. pull up the chart and see this stock's strength. you're trending within this well defined trend channel for the better part the last 12 months, climbing over 40% year to date. we do get a break below that trend channel today. in fact, we also take out the 50 day moving average for first time since march. that's a reason for pause, not panic. we've pulled back to an area of strong support and have the 100 day moving average below around 621 and also horizontal chart resistance which should be support on that pullback. but mandy, what i love here is the longer term structure of this chart. look at a weekly chart here, you can see a very bullish breakout in 2012 from a six-year complex head and shoulders bottom. it doesn't get better than this. you want to be a buyer on weakness. look at that beautiful test of the 100 week moving average. double bottom there and a
2:40 pm
reassertion to the upside. that's how you draw it up. >> on the radio it's a good looking chart. you both like it fundamentally and it technically and for all three of you with your coffee puns. i have a final word for you, bean there done that. on-line talking numbers with yahoo! finance. >> corporate america social media report card. we'll give them grades. >> would you be willing to trade part of your future earnings for the next five or ten years for money right now? the ceo of a company offering that coming up. tdd# 1-800-345-2550 searching for trade ideas that spark your curiosity tdd# 1-800-345-2550 can take you in many directions. tdd# 1-800-345-2550 you read this. watch that. tdd# 1-800-345-2550 you look for what's next. tdd# 1-800-345-2550 at schwab, we can help turn inspiration into action tdd# 1-800-345-2550 boost your trading iq with the help of tdd# 1-800-345-2550 our live online workshops tdd# 1-800-345-2550 like identifying market trends. tdd# 1-800-345-2550 now, earn 300 commission-free online trades. call 1-888-628-2419 or go to schwab.com/trading to learn how.
2:41 pm
tdd# 1-800-345-2550 sharpen your instincts with market insight from schwab tdd# 1-800-345-2550 experts like liz ann sonders and randy frederick. tdd# 1-800-345-2550 get support and talk through your ideas with our tdd# 1-800-345-2550 trading specialists. tdd# 1-800-345-2550 all with no trade minimum. and only $8.95 a trade. tdd# 1-800-345-2550 open an account and earn 300 commission-free online trades. call 1-888-628-2419 to learn more. so you can take charge of your trading. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) purrrfect. (vo) meee-ow, business pro. meee-ow.
2:42 pm
go national. go like a pro. losing thrusters. i need more power. give me more power! [ mainframe ] located. ge deep-sea fuel technology. a 50,000-pound, ingeniously wired machine that optimizes raw data to help safely discover and maximize resources in extreme conditions. our current situation seems rather extreme. why can't we maximize our... ready. ♪ brilliant. let's get out of here. warp speed. ♪
2:43 pm
a new index ranks how fortune 100 companies are using social media to disclose material information to investors. so who is making the grade? let's bring in jeff corbin, ceo of kcsa investor relations consulting firm. herb back in for the ride. this is interesting, no company in the fortune 100 received an a. >> no as. >> why not. >> let's go back to how this all began which is in april of this year the s.e.c. said public companies can use social media in their communications. we waited six months and decided to take a look at how are the
2:44 pm
fortune 100 companies behaving. we learned less than 10% of the companies scored a c or better. why is this? i think the public companies are reluctant to use social media, not sure how to maneuver through the social world and it's not expected of them yet. >> microsoft got an f. >> for one of the behe musts in technology, shocking. >> it should be an adjunct. that's the point. it's not your exclusive dissemination tool. it's got it be a tool that is used as an adjunct to what they're doing. my concern is this, is the ceo decides to use this as a platform and that is the ceo's one and only platform. if you don't follow the ceo you're not getting the dissemination. how do you work around that? >> the issue is what is the policy the company comes up with? they're going to put out a press release and put their press releases and disclosure materials on their corporate website. the reality is social media is here. twitter here, facebook here, linkedin here. these are channels the average
2:45 pm
investor is looking to -- for their information, important information. so to the extent a company has a twitter handle i know that i can follow that company on twitter. if they don't i'm not going to be able to follow them. >> how much is because at this stage and i'm sure things will hopefully get better but when you look at twitter there have been hacking incidents which prove it's not yet a 100% secure mode of information dissemination. if you're a company, which has really material information you want to get out there and someone hacks in and says, for example, our profit is down by 20%, it can move the stock. >> so my response to that is, it's a great excuse not to use social media. all technologies have vulnerabilities. >> it's just an excuse. >> like i said, raltty is that it's here and it should be used because the average individual, billions are looking to these channels as a means to consume information. >> bottom line? >> i don't disagree. look at these other organizations that are tried to embrace investor relations to
2:46 pm
try to get them into twitter. good opportunity for twitter to do that. >> twitter does have a twitter ir handle. the reason why they scored a c on our -- in our index because they haven't yet filed a disclosure policy with regard to social media. if they were to say we intend to disclose material information at twitter ir then i would know to follow twitter ir. they haven't done that yet. since their public offering they've posted five tweets to the twitter ir handle. >> google got a b and ge a b as well. no one got an a. interesting stuff. >> pleasure. >> the tag line, fund your future. from a company called upstart. their idea give up a certain percentage of your future income for five or ten years, for cash now. few weeks ago, i questioned the business hodle and a competitor of them on msnbc and they heard. and so they reached out and to be fair i want to give them a chance to respond. upstart ceo david gerard is here with us.
2:47 pm
appreciate it. i was skeptical because i thought it sounded odd. you're going to pay me and i'm going to give you back money over five or ten years. some people might view that as a trap. why is it not? >> well, access to capital, access to credit is pretty important to people and to the economy. and loans or credit cards are other ways you access it, useful in some circumstances. this is just another form of access to capital where the repayment instead of being a fixed monthly payment, which has its own set of liabilities, is instead based on how much you earn. so the fundamental thesis behind it is, because it's based on how much you earn it's always affordable. you don't default or trip over the problem of having too much debt. >> i get it. i will say this, you don't have the bill collector necessarily calling, right? you don't have the banks and their thousand legal team coming after you. my question when i did this on "morning joe" let's say i lend you money, i'm the provider and you're the benefactor, how much
2:48 pm
control do i have over what you do with your life? >> you have zero control. it's explicit in our terms of service our investors what we call backers, they can help and support if needed provide -- which is interesting, you can help the person do better and you benefit, you have no say, no control, no notion of having troll over -- >> i can't badger you every day, dave, why are you home? you should be working? i've invested in you. >> it's against our terms do so and you could be kicked off the platform for doing it. >> what kinds of returns are people seeing? >> if the people you invest in have the income over the next ten years that our model predicts you would earn in the range of an 8% annualized return. >> you have a model which is interesting because i plugged myself in and you were wildly low my friend. >> congratulations. >> public school and land grant state university. how do you come up with this sort of algorithm for what people are likely to earn? >> well, the model is basically
2:49 pm
based on where you went to school, what you studied, what sort of how you did in standardized test scores and also what job history or employment or job offers you've had. we've built a model that will predict your income over a decade. >> my only concern it's sort of smacked a little of elitism only because the people i looked at were all impressive, the people looking for investment but almost too impressive. yale, harvard, m.i.t. is that because people are willing to bet on those who sort of have a track record for success for themselves. >> upstart is open to people in all 50 states who have either enrolled in college or graduated from a four-year degree. we want to expand it beyond that. there are elite people in there who have amazing credentials about us it's a broad basted thing. this type of capital should be available for everybody. >> good job reaching out. never let it be said we're not listening. we invite you on when you heard
2:50 pm
the criticism. >> barbie's big bounce back and a big party foul at this year'sby. >> an epic mall throwdown. kohl's against macy's. which would be a better bet for your money. a debate coming up. ♪ [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. but with less energy, moodiness, and a low sex drive,y first.p. i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron. the only underarm low t treatment that can restore t levels to normal in about 2 weeks in most men.
2:51 pm
axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. report these symptoms to your doctor. tell your doctor about all medical conditions and medications. serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting and increase in psa. ask your doctor about axiron.
2:52 pm
2:53 pm
it's beginning to look like a very barbie christmas. shipping data shows she was the number one toy arrivings at u.s. ports this fall. between september and october were up 6% which means retailers are expecting a strong demand for barbie. as for shares of mattel, up 5% this year. >> and poor old skipper never gets any attention. in today's edition of "fierce competitors," kohl's versus macy's. dominic chu, herb greenberg, we're milking you like old cows today, i must say. >> i've got macy's. the stock subpoenais up 33% thi. came off a blockbuster earnings
2:54 pm
report what they beat profit estimates, beat sales estimates on the heels of them executing better on their strategy, which was to put better locally demanded merchandise in each of their stores. so, this is a company terry l d lundgren, ceo, executing well and stock pickers are rewarding well. analysts are split on the stock. 50% polled have a buy rating -- >> i hate going sgu intoou a macy's store. flagship macy's store. they're sometimes dirty, floors are broken up. >> i agree. >> the escalators -- old eve escalators. it's not a great experience. they do this in spite of themselves on the flagship side. >> fair enough. >> they have 800 stores and you're picking on one? they also own bloomingdale's, by the way. >> if they don't get flagship -- >> it's in new york, tourists -- >> macy's being flagship of the
2:55 pm
chain. even san diego store i was in last week, same thing. >> i'm going to say this, here's the thing about macy's is that they're so big, this is where they are strong, they are now the walmart of department stores. i mean that in a good way. they are pushing around suppliers, squeezing every ounce of profitability. used to be suppliers had the power. macy's roll up, and jan kniffin would agree with that, now they wield the hammer, they have pricing control. >> and they're yielding it. >> yes, they are. >> they can get dhir margins still there. >> meanwhile, kohl's has been given up for dead. i wasn't thinking about it until a few weeks ago. a colleague mentioned an analyst report from bank of america. i looked at that report. sort of shook me up to start thinking, wait a minute. this is a company starting to potentially get -- >> shook you up? >> shaking like a wet dog. physically shaking. >> that gets you excited? keep on going. >> they got their act together
2:56 pm
and their envener erinventory it under control. they've gone back to national brands. >> smart move. >> start move. >> i stopped shopping at wagman's because it's all private label. no offense. >> push back is national brands or headwinds from gross margins, but in the end, if they can get more volume in the store, it's a good thing. these guys were once considered at a period of time among the best. >> who are you picking? >> i said kohl's. >> i like macy's. >> he like kohl's. >> i like bloomingdale's more. >> please zoom in on dom's socks. if you're on the radio, remember the gum fruit stripe with giraffe? >> thanks for your hard work today. coming up next, the fun
2:57 pm
police. >> what? >> super buzz killer. this year's super bowl. [ male announcer ] for every late night, every weekend worked, every idea sold... ♪ you deserve a cadillac, the fastest growing full-line luxury brand in the united states. including the all new 2014 cadillac cts,
2:58 pm
motor trend's 2014 car of the year. now during our season's best event, get the best offers of the season on our award winning products, like the 2014 ats and srx. see, i knew testosterone could affect sex drive, but not energy or even my mood. that's when i talked with my doctor. he gave me some blood tests... showed it was low t. that's it. it was a number. [ male announcer ] today, men with low t have androgel 1.62% testosterone gel. the #1 prescribed topical testosterone replacement therapy increases testosterone when used daily. women and children should avoid contact with application sites. discontinue androgel and call your doctor if you see unexpected signs of early puberty in a child, or signs in a woman, which may include changes in body hair or a large increase in acne, possibly due to accidental exposure. men with breast cancer or who have or might have prostate cancer, and women who are or may become pregnant or are breast-feeding, should not use androgel. serious side effects include worsening of an enlarged prostate,
2:59 pm
possible increased risk of prostate cancer, lower sperm count, swelling of ankles, feet, or body, enlarged or painful breasts, problems breathing during sleep, and blood clots in the legs. tell your doctor about your medical conditions and medications, especially insulin, corticosteroids, or medicines to decrease blood clotting. in a clinical study, over 80% of treated men had their t levels restored to normal. talk to your doctor about all your symptoms. get the blood tests. change your number. turn it up. androgel 1.62%. you can fill that box and pay one flat rate. how naughty was he? oh boy... [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. it's dumb so you think it's no true but it is. the super bowl ceo saying they're banning tailgating. you can't take a taxi or limo to
3:00 pm
metlife stadium but a $51 per way bus ticket can you buy. note to the super bowl, there's nothing around the metlife stadium. let people tailgate. that's what football is all about. >> that really is the fun police gone a little too crazy. thank you all to all of you out there. for you listening on the radio as well for watching "street signs". >> and to all a good night. "closing bell" is next. welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> scott wapner in for bill griffeth today. we're watching the market go lower. twitter after spike of 10%. what's behind this incredible two-day run for twitter that's taken the stock to new highs? we'll try to get to the bottom of what's up with twitter. >> interview with charles schwab. we want his take o

21 Views

info Stream Only

Uploaded by TV Archive on