tv Power Lunch CNBC December 31, 2013 1:00pm-2:01pm EST
fruition. >> steve weiss, i would be remiss if i didn't give the viewers a bonus. citi being one and tenet health cares or the hospitals in general, will get it right this year. >> doc. >> pick one out of favorite, abx, unusual call buying today. >> happy new year to you guys. see you on the other side. power starts now. >> and welcome to "power lunch." we are starting at the tradition at the cme and happy new year, rick santelli. are you there? >> chicago. >> happy new year from the cme in chicago. i don't even think the fed could have done a better job if they had dollars thrown up in the air. we all wish everybody out there in tv land a happy and prosperous and healthy 2014 from the cme group. happy new year. back to bertha. >> happy new year to you and the traders at the cme. back to business, 2013 was good, what about january? dominic chu on the stocks and
correct s.e. sectors that look good. isperks in play. the stock up big today and 72% this year. and one more big story on our radar, and that is the radar. a lot of cold is moving in with a chance for significant snowfall. the forecast is coming up. tyler and sue are out. i'm melissa lee and simon hobbs at the nyse. happy new year, simon. >> happy new year to you as well and what a year, melissa. the dow up 26%, even as we speak. a good year for those in the market. it's -- beg your pardon, the s&p is up 29%, 29% gain for the s&p. as for the nasdaq, let's take sto stock. a gain of 38%. nasdaq outperforming and small caps outperforming a 30% rise for the russell. all of those are record breakers except, of course, the nasdaq. if you remember, dotcom, happy new year. this has been a great year for a
lot of people. >> it's been a great year. if you've invested in stocks and stayed invested in stocks and ending the year, simon, about the way we began it with modest gains. take a look at major indices, on new highs on everything except for the russell 2,000. mid caps did well this year, small caps outperformed even big and mid cap stocks for the year. transports also right across the board, everything has been up double digits here. a lot of people trying to figure out 2014, asking about the dry index indicating global shipping is improving. given false signals in the past which is why i have a problem talking about it a lot. none theless moving to the upside. see the shipping stocks doing well today on hopes for a better 2014. finally, simon, asked about the vix up again today, veen as the markets are at new high and the reason this is happening we're looking at buying puts in calls, 30 days out and had a dead week in the last week with the holidays. that's why volatility has been low. traditionally we go forward from here.
>> you think that will spike thursday or friday? >> beginning of the year, yeah. >> dominic chu, big gains in 2013, talk about 2014 and specifically january. >> i mean the folks over a at the group looked at how the stocks fared in january each time around. they looked at the dow. over the last century the index posted a gain of 1 % for the month and it's been positive 64% of the time. pretty decent odds. over the last 50 years the dow posted an average january gain of a better 1.3%. it's up 66% of the time. the odds get even better. that means during that 50-year span, january ranks as the third best performing month for the dow behind april and december. the odds are we could see a nice continuation to this year's bull run to come next month. we decided to take a broader look at the s&p 500 and how certain sectors in the market do in january. our data team at cnbc found over the recent bull run, the last three years, investors have liked the cyclical stocks on
average over the last three januarys. industrials, financials, energy stocks, they've done the best as investors have bet on a recovering u.s. economy. they're all up around 5.5% for jap january. the worst one, defensive, telecom, down about 1.3%. >> there aren't too many people in favor of those sectors going into the new year. >> not this time around. >> interesting how that coincides. simon, down to you. >> now to stocks that were really weak in the year. will they pick up in 2014? sheila's at the nasdaq with those first. over to you, sheila. >> hey, simon. we're talking about stocks already feeling a hangover and it's not even the new year celebration yet. hung over stocks. you know, this time of year is all about big new year's resolutions like weight loss but for weight watchers its stock slim down this year, 35% on weak enrollment trends and the rise in wearables. more and more are watching their weight with the new bands.
biotech such a blockbuster year for the sector but a few notable losers. arena pharmaceuticals, a lot of skepticism about the obesity drug sectors and air riyadh pharmaceuticals down 65% after its leukemia drug pulled from the market. there is a big if, the drug was put on the market in the last month. we have seen the stock rebound 30% in the past 30 days. analysts say 2014 is all about whether this company can expand that market for the leukemia drug. finally want to throw in a tech name had p in here. makes components for apple's iphones. saw weakness and concerns about apple and small phone penetrati penetration. gross margins decline. some analysts say 2014 could be a turnaround for the company. basically on the back of apple catalyst like the deal with china mobile and the potential launch of the iwatch. quickly on apple, i do want to have a news note here. we have the headline saying that apple denies working with the
nsa. the statement with the company says apple has never worked with the nsa to create a back door in any of our product including the iphone. we have been unaware of this alleged nsa program targeting our projects. we care about our cust mers' privacy and security and apple stock does continue to run the last day in the trading day in the green. >> thanks for that. take a look at shares of hertz on a run today. the stock up after reports fending off an activist attack and then scott wapner broke the news, dan loeb was piling money in the stock. hertz took on a poison pill yesterday to protect the board from a takeover. there is speculation that has nothing to do with lobe, another player in the mix. hertz is up more than 70%. option monster.com, jon najarian live in chicago. how did you interpret the options activity and how do you interpret that in terms of where the stock will go from here? >> they were buying the 26 calls with the stock trading at $24 on december 5th.
that was a thursday. now, speed ahead to where we are now, with an upgrade from jpmorgan following on the reporting that you said about scott wapner breaking the dan loeb stake and now they're betting higher, they're betting into the 30s for the stock. in other words it's not just jpmorgan and the price target, it's also the option paper, betting that this one continues to march to the upside and the volumes, of course, have been very strong, melissa. >> all right. doc, thanks for that update. jon najarian from chicago. kevin is vice president of equity research at jpmorgan where he covers hertz. kevin just raised hertz's 2014 year-end price target as doc mentioned to 35 bucks from 26. the rating remains an overweight rating. great to have you with us. >> thanks for having me on. >> you're positive prior to the activist investors being involved so at this point do you think that all the various catalysts you saw for hertz, namely the spinoff or sale of the equipment rental business, could that be sped up in any way because of the role of the activists? >> you know, it feels like right
now that with the activists or potential activists at play, that in combination with board directors, including the chairman and ceo coming up in january of next year, it feels like there could be a little fire under hertz's feet to move more quickly with what they're doing with the equipment rental business. it feels like investors are getting frustrated and are certainly focused on what the company will do with equipment rental. but generally speaking i feel good about the industry as a whole. the rental car space, you look at pricing, continues to recover for 2014 and really that's on the heels of the dollar thrifty acquisition that hertz completed at the end of last year. so that, you know, effectively creates an owe la goply in the industry, hertz, avis and enterprise controlling pricing for the industry as a whole. pretty positive in general on the space. >> in terms of 35 dollars does
that include the spainoff or sale of the rental business or further upside to the stock? >> that could be potential upside to the stock. the $35 includes equipment rental and just status quo for the current business structure. >> all right. kevin great to speak with you. happy new year. kevin, jpmorgan. let's get to seema moody for a market flash. >> i want to point your attention to amazon, shares gaining ground after citi raised its target to $457 a share and maintained its buy rating. shares up about a percent on the day. simon, over to you. >> thank you very much. the attorney appointed by a federal judge to monitor apple's e-book pricing after an anti-trust suit is now suing apple. michael brumwitch says that apple has denied him access to the information that a federal judge has told him he must monitor. apple has had no comment so far. apple shares fell below the market so far his year, up about 5%, but a phenomenal rally from
july as you can see. new pictures just in from north dakota where a train -- where that train derailed yesterday and it's still burning, probably will they say for several more days. it went off the rails yesterday afternoon after being hit by a train traveling in the opposite direction. that second train was carrying crude oil. the impact caused a ps massive explosion. huge plumes of black smoke can be seen now from miles away. the national transportation safety board is investigating and people living nearby have been asked to leave the area. you'll be pleased to know there are no reports of any casualties. well in five hours, europe will start rolling celebrations of the beginning of 2014. that gives us the perfect chance to look at european markets and their fundamentals for the year ahead. speaking of 2014, much of the united states is bracing for major winter storms. the forecast is next. if you're living with moderate to severe crohn's disease,
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up 17%. quite an underperformance there. dominic chu, is europe an opportunity or drag next year? >> it could be an opportunity, especially if you look at other places. you're always going to hear about what you said, the uk's footsy, germany's dax. what about the other market indic indic indices? they've had dekreents years. the hardest hit countries during the european debt crisis. italy's mib up in 2013. spain's ibex 35 up around we'll call it 21% in that time. and then greece's athens stock exchange composite index up 28%. one of the stories that hasn't been getting a ton of attention is ireland, the index is up a whopping look at this 34% in 2014. beating the german dax and the s&p 500 in the u.s. some investors who made those bets in those peripheral european companies made out pretty well. some of the biggest gainers in
those countries, spain, the energy company doing very well. italy's fiat, the automaker doing really well, greece's agene airlines doing great and bank of ireland among simon, some of thep top performers in those markets. back to you. >> thank you very much. one manager reaping success through stock picking in europe is david mars cuss, chief investment officer of evermore advisors. the fund evermore valley is up year to date outperforming the s&p 500 here. david joins us now with his outlook for europe next year and where he's finding opportunities. melissa is with us. david, before we dive into the stock picking and how you think we'll do, we should be really clear. there's a big difference between the united states and europe. in the u.s., we can see growth, we can see it strengthening. in much of europe if you strip out germany and the united kingdom the jury is still out, at one point recently we thought the eurozone might tick back into recession.
>> absolutely. you know, when we look at what's happening in europe, we're actually very excited. when you an environment of so much change going on and it's -- it's to the point that you're making, investors aren't really clear. they're not sure which way they should go. should they be in, should they be out. we think they should be in. in this period of still uncertainty there's a lot of opportunity. and companies are really taking advantage to restructure, to clean up, to transform the balance sheets and try to get back to a point where when growth comes back, they can really leverage and take advantage of it. so we're not counting on growth. we're counting on change and restructuring to unlock a lot of value. >> so you're taking a look at multinational companies looking at spinoffs or opportunities. if you look at this list, ing bank, vivendi, are these 2014 stories or are these transformations that will actually take much longer? >> these kinds of -- the kinds of stories that they will take
quite some time, but you -- it doesn't come all at the end. it comes in steps. and so we saw the beginnings of it in 2013 and we think during 2014, you talk -- you mentioned viven vivendi. in 2014 they're break pg into two companies. spinning off the telecom business. even throw it's had a big move in 2013 it's at the early stage of its sort of transformation. ing spinning off the u.s. business. still own 50% of it. another chunk to come. we think we're in the early innings, very early in the game. >> david, given we're in the early innings and may not be evident or may be evident at the moment, what would you say to people at home? how would they split their money between this stock market solid and rising and europe? in our global fund we have over 55% of our assets in europe, so we can go anywhere in the world. but we're choosing to put more than half of our money into the european markets because we see that as the most robust area for
value creation. and if you look for the classic cheap stock with catalysts to unlock value, europe is so ripe. there's nothing wrong with what's happening here in the u.s. we have u.s. holdings as well. but i think the opportunity in europe is just that much greater. >> all right. david, thanks so much for your time. appro appreciate. david marcus, the global value fund. take a look at this, a live picture of times square, about ten hours and 40 minutes to go until we ring in the new year here on the east coast. beware, it's going to be cold. and snow is on the way. here's the weather channel's mike seidel. >> this is the storm we're watching. it's going to come out of the gulf of mexico tomorrow, come up off the coast and then off cape cod on friday. that's going to throw moisture back from the atlantic, over very cold air, something we didn't have last weekend, thus all the rain last weekend and not the snow in boston and new york. snow and wind, we could be looking at a blizzard on cape cod with winds gusting 40, maybe 50 miles an hour. lot of snow, a significant snowfall, certainly for the
boston area. right now we're looking at 8 to 12, the latest forecast thinking from the weather channel. and a five to eight snowfall total in new york city. it's the temperatures, on friday morning, we're talking 14 to 15 in new york, boston friday morning at sunrise about 12 or 13 degrees. so there's going to be a big enough factor in the snowfall. this will move on out and some of the coldest air in years moves in. subzero cold on saturday morning in boston and in new york city, look for lows saturday morning in the park in the single numbers. we'll keep you updated at the weather channel. count on cancellations and flight delays. back to you. >> thank you. gold heading for its first annual loss in 13 years and its biggest annual loss in 30 years. what traders are saying about it in 2014, that's next. plus, are quotes from the pope criticizing capitalism hurting donations? michele spoke to timothy dolan exclusively. >> the pope made critical
comments and capitalism and the wealthy. the catholic church in new york is trying to raise money from the capital lists and the wealthy. how is that working out? next on "power lunch." is also enough to keep your smartphone running for how long? 30 days? 300 days? 3,000 days? the answer is... 3,000 days. because of gasoline's high energy density, your car doesn't have to carry as much fuel compared to other energy sources. take the energy quiz. energy lives here. tdd#: 1-800-345-2550 life inspires your trading. take the energy quiz. tdd#: 1-800-345-2550 where others see fads... tdd#: 1-800-345-2550 ...you see opportunities. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 turn inspiration into action. tdd#: 1-800-345-2550 we have intuitive platforms tdd#: 1-800-345-2550 to help you discover what's trending. tdd#: 1-800-345-2550 and seasoned market experts to help sharpen your instincts.
welcome back to "power lunch." i'm seema moody. well, it's been a couple tough days for social media stocks. analysts concerns over valuation, shares today are rebounding. take a look at the list. groupon, twitter, linkedin and facebook in positive territory and remember twitter lost about 13% last week on a
downgrade but on this last day of the year it is green across the year. simon. >> thank you very much. his holiness the pope making headlines attacks what he calls the tyranny of unfettered capitalism and the idolatry of money. michele caruso-cabrera doing exclusive reporting in the last 24 hours, regarding whether those comments will hurt t church's drive in this city to raise money for the restoration of st. patrick's cathedral on the upper east side. michele, over to you. >> thank you. the pope criticized the wealthy and capitalism. a lot of wealthy capitalists in new york city whom the church has turned to looking for help in restoring saint cat lick's cathedr cathedral. they've raised $100 million so far. the billionaire founder of home depot, devote catholic spear heading the efforts on behalf of the ka three trol but tells cnbc one seven figure donor has expressed concerns about what
pope said. the pope said in this system which tends to devour everything which stands in the way of increased profits whatever is fragile like the environment is defenseless before the interests of the market which becomes the only rule. i'm guessing deified used sarcastically. cardinal timothy dolan, i've told the cardinal your eminence this is one more hurdle i hope we don't have to deal with. be careful about generalities rich people in one country don't act the same as rich in another country. i spoke with cardinal dolan he says the pope loves all people rich and poor alike and asked him about whether or not he thinks the pope is critical of capitalism. >> always recommends what we call a middle way. so you would find pope francis saying look, both extremes of the marketplace, in other words, unfettered, cut-throat capitalism on one hand, or total
socialism on the other, both of those don't work, both of those are wrong. somewhere in the middle where we protect private property investment private wealth but we also insist upon the wider societies just obligations to those without, somewhere between those two, is where the economy should be. so the catholic church -- so we get blasted from both sides. we're not economists. we are moralists, we are prophetic, people of the bible and virtue. >> ultimately, the core issue raised by the pope is, we need to do more to help the poor. the follow on question is the then which economic model serves that purpose? having read the lengthy document it's not clear the pope thinks the free markets helped alleviate poverty and the cardinal says the pope doesn't have the issue with the wealthy but idolatry of money. >> if it becomes a god, if it
becomes an idol, pope francis is saying, then it's wrong. because there is only one god. if we use the it for our ownselves and families for a secure and safe present and future, if we use it to reinvest in the community, to help others and share with the poor, then it's morally good. and in general, i find that in the united states. >> you can see a lot more on cnbc.com. we have an extensive write-up and more about the comments. >> fascinating interview. michele caruso-cabrera thank you. to the bond market, rick santelli brushed off the confetti and tracking the bond action at the cme. rick? >> hi. happy new year. the 30-year bond certainly had some turbo thrusters. it popped up five basis points today and as you can clearly see both on the intraday and more importantly a chart going back to the summer of 2011, it finally took out the 2013 high yields. on the ten-year, on the same timetable you can see it's still a close call, equalling 3% high
yield close but the cash market open for another half hour, looks like we might pop above that. it's currently trading at a 301 yield. the five-year on a year to date chart didn't quite take out its recent highs. but all maturities are up large for 2013. the dollar index, a different story. many will now remember 2013 as the year of the euro, but the dollar index, very close to unchanged. back to you. >> thank you very much, rick. with the dow up 46 at a fresh record bring in kenny polcari, a cnbc contributor and our own market guru bob pisani. so as we look forward to 2014, what are the key issues? what are the key asset classes that are in question. >> listen, i think there's a return to basics, return to equity investing, the simple basic equity investing, not the complex equity investing around the world but only in this country but you have to look at europe, the emerging markets, but i think people are starting to come back to this idea that,
you know, it's back to basics, right, and equity investing for the long term is going to be the way that we're going to play this game. >> the problem i have with europe and i think europe is going to do better in 2014, we've seen a run up. you report on it every day and how the markets have run up. germany the best year in the last several years. >> markets run up here -- >> right -- >> multiyear highs in germany this year. greece had a great year as well. we've already seen a run up into that. emerging markets is the one that's interesting. they've not had a good year. all the emerging markets are down, brazil's down 15%, china down 6%, it's buy lo sell high. the question is if we see a pick-up in the global economy is any going to splash over into emerging markets. >> go ahead. >> i just want to bring in jim iurio who joins us from chicago. sorry i didn't put you in from the top there. >> thank you. >> what is the asset class for next year? >> i actually think the yields are going higher in the ten year. it might take a route, but the ten year is going to go up to around 3.5%. i think that things will be good
domestically, things like banks, because they trade with a higher correlation to yield curves now than in the past since there are other ways to make money have been taken away. i like home builders as well. the xlb etf is a good way to be in that. >> jim, how can you -- i just need to double check this, kick the tires on what you're saying here. you're saying that yield on the ten-year can go to 3.5 % but you still like home builders. you don't think another 50 basis points on mortgage rates could have an adverse effect? >> i don't. i think we're at a time where handoff is being made, where mortgages were low to having real growth. those numbers were good. if the market actually the economy actually gains traction, that's one place we have over the last year seen it the most and going to continue. >> we're closing up on gold. take a look at where we are on bullion at the moment. a bit of a rebound that's taken us back from the six-month low. popped back above 1200 as you
can see. that's a live price there. what a terrible year it has been for gold. >> well, look, this is a play on how safe you feel your money is in the long run and a lot of people feel, obviously, right now they're not that worried about things going forward. the inflation play is not there and a significant portion of people invest in gold are investing on the inflation. >> what's your take -- and silver, look at that. what's your take with precious metals? >> two things are affecting gold. one, we talked about yields going higher. remember with every basis points yields go higher the zero on gold looks worse and worse. no doubt about it. but i also think while we're in a situation tapering moving slightly more towards tighter, boj and ecb is not that's going to affect gold. silver will start moving to an industrial metal in my opinion. i don't think silver will get hurt as bad as gold. >> let me ask you about the fed. the fed is going to withdraw this year, we assume. >> right. >> can the fed withdraw from
this huge amount of monetary stimulus and be true to what you said at the top, be in it for long-term investing. >> the jury is still out. i think that's the biggest head wind are they going to be successful and do it. the only way they will be able to do it is if the economy starts to click on all cylinders. it's going to be another couple months before you feel comfortable because if it does click on all cylinders the fed can pull back and we'll move forward as jim and bob said. >> the bond market is going to tell you that, as jim said. i think jim's prediction of 3.5%, eminently reasonable. i would be delighted if the bond market or ten year stayed at 3.5. if the economy picks up don't you think we can go to 4%. >> one thing the fed is worried about if it happens too fast and i think they'll use rhetoric and threats if they start to lose control of the long end. i think they want it to be gradual. that would be awesome. >> in the meantime happy new year. >> happy new year to you too. >> and to you. >> thank you all. have a great 2014. >> thanks, simon. the dow hitting record highs in
2013. ibm the biggest and only loser in the dow 30 this year. is 2014 a buying opportunity or time to bail on big blue? plus will 2014 be the year of a high-tech hiring. josh lipton in san jose with that story. josh? >> yeah. melissa, more than a million americans are losing their unemployment benefits. the jobless rate is still at 7 %. i found a place in fact a lot of them where they are hiring, hiring, hiring, that's two minutes away. ♪ ♪ ♪ ♪ [ tires screech ] chewley's finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. get the most extensive charting wherever you are with the mobile trader app from td ameritrade.
to broadband internet at home. it's a place named one america's most veteran friendly employers. next is information and entertainment in ways you never thought possible. welcome to what's next. comcastnbcuniversal. big blue a big loser in 2013 while the dow soared to record highs this year. ibm shares have dropped more than 2.5% making it the only loser in the dow 30 in 2013 and ibm's first annual loss since the financial crisis in 2008. brian, you have a buy on the stock. the sales slump, let's be clear, revenue has fallen for six straight quarters. what is going to be the solution here? if it's cloud there are a lot of players out there that are cutting prices very deeply and, in fact, ibm just lost a contract to amazon, a government contract, for $600 million. is this going to be ibm's answer? >> i think there's a lot of forces at work here.
number one, emerging markets really started to slow, including china. ibm talked about it. cisco's talked about it, others. number two, federal spending im paktsds. and i think the third area is just a lot of uncertainty at customers over how to implement some new technologies including soft ware defined data center technologies. i think it's a lot of different forces have come to work. overall, i don't think i.t. spending has been great this year as well. so ibm is impacted by all those. >> we're holding out for a recovery in the emerging markets and some of the other items you mentioned but specifically in terms of cloud because ibm would be quick to point out that's the area of business they have the most hope for. revenues in the cloud were a billion dollars in the last quarter but sales slumped overall. at what point will this offset at any rate the decline in sale seen in other parts of the business? >> i think the sales cycle bottoms in the december quarter. down 8% year over year. and i think you'll see an
acceleration moving to the end of 2014. so i think december quarter will be the low point in terms of year over year change in sales. the cloud business is up 70% year to date so make no mistake about it, ibm has aggressively been moving into the cloud and have a phenomenal big data analytics portfolio. i look at ibm down 2% this year, s&p is up 29, there's other i.t. companies. in our coverage universe, they're also down this year. >> that is very true. ibm we should note, down this year, also just a 6% gain in 2012. it's been two years of tough sledding for ibm investors. within your coverage universe i'm just curious, are you more positive about other stocks and big blue? some might argue even the eps they've achieved in terms of growing eps has been done through financial engineering thanks to their buy back, the lower tax rate and the latest quarter? >> you know, so there's a lot of
forces that go into eps at ibm. what i point to is if you look at the last five years, ibm has grown eps 16% a year, the s&p has grown 4 and if you go even to the down turn of '08/ '09 ibm was able to grow earnings. they did not have a single quarter of year over year decline in eps since the third quarter of '04 and you would be hard pressed to find a technology company that experienced that. it's more of a defensive play. yeah, there's a lot of levers to eps but that's the way it works. >> thanks for your time. happy new year. >> thanks. happy new year. >> simon, down to you. >> thank you very much. well while many companies are still trying to get into china, revlon is getting out. the cosmetics giant also cutting 1100 jobs and taking a $22 million charge against earnings. sales clearly didn't do well for it in china last year. fedex is being sued by new york city, accused of illegal deliveries of contraband cigarettes. the city wants more than $50
million in fines and unpaid taxes. and hewlett-packard is cutting more jobs. the pc giant plans to get rid of 34,000 positions by the end of fiscal 2014. that's up from its original estimate of 29,000. in the meantime speaking of tech jobs, there could be another hiring boom in silicon valley next year. josh lipton is in san jose with more on that. over to you, josh. >> yeah, simon. if you have a degree in computer science or electrical engineering there might be a job waiting for you in the new year. 2014, is shaping up to be a big year for high-tech hiring. global i.t. spending will grow 5% in 2014 to $2.1 trillion according to idc. tech employers, they are feeling more confident about adding new employees to their payrolls. dice.com, a tech job site, recently conducted a survey of tech focused hiring managers and recruiters, 73% say they plan to
hire more technology pros in the six months ahead and seems to be more security in the work place when it comes to tech. most hiring managers aren't plan og on any layoffs. an executive recruiters specializing in silicon valley, expect to see demand with expertise in cloud computing and data analytics. >> everybody needs to figure out what's their strategy for putting data and ap ply kags in the cloud, and how do we use big data and data analytics. how do we figure this out. do we need to do hiring in that space? >> if you get hired in tech expect to get paid relatively well according to robert hat, the staffing firm. u.s. starting salaries are projected to increase an average of 3.7% next year for professional jobs. but tech positions are expected to see the largest gains with a 5.6% increase in the average salary for newly hired workers. melissa, back to you. >> josh lipton, thank you.
forget black friday. why today, yes today, is the best day of the year for one kind of savvy shopper. and russia on high alert. three bombings in 48 hours, sochi winter olympics just 38 days away. we'll take you inside the security ring coming up. ffers. it raises the price of fishmeal, cattle feed and beef. bny mellon turns insights like these into powerful investment strategies. for a university endowment. it funds a marine biologist... who studies the peruvian anchovy. invested in the world. bny mellon.
security ring coming up. vaynerchukvaynerchuk welcome back to "power lunch." i'm seema moody. take a look at shares of micron, drexel hamilton reiterated a buy rating on micron shares today citing favorable pricing conditions and flash chip. micron the best performing stock on the nasdaq 100 today and also this year, sporting a 244% gain in 2013. talk about big wins. >> eye popping. thank you. happy new year, out there. we asked on today's yahoo! finance.com poll where do you see the stock market heading in 2014. take a look at this. 45% say it's going higher, 12% flat, 22% say it's going to pull back moderately, 21% say i see a
big correction coming pup optimism from you guys out there. >> hey, melissa. all about the crystal ball today. prediction for next year for autos, tech, luxury, for housing markets. absolutely everything. i also have my anchor buddies with me. jon it for and dominic chu. we're going to make sure the last "street signs" of 2013 is a lot of fun. make sure you join us in about 15 minutes time from now. back to you. >> okay. thank you very much. we're now just 38 days away interest the sochi winter olympics. and we've had three bombings in 48 hours in russia. so what security measures are being taken to protect the athletes, spectators and many dignitaries. jim mess sada on the security ring in sochi. >> reporter: hi, guys. in terms of the investigation, police now believe that it was a male suicide bomber who set off sunday's bomb just inside volgograd's train station. he's been identified by several
news sources to be a 26-year-old russian, a medical school graduate who converted to a radical and violent form of islam. you'll recall there was speculation early on that a female suicide bomber had set off that first bomb. investigators are now running dna tests to confirm that ied. on monday, yesterday, they said they found links between the two bombings, specifically on the similarity of the explosives and the shrapnel used to maximize the carnage. now, as expected, sadly, the death toll for the two blasts has risen to at least 33. there are still almost 60 wounded who remain under treatment in the hospital. meanwhile, russia is on a heightened state of alert. security forces have been seen beefing up transportation hubs like train stations and airports. those do seem to be the favorite targets for the insurgents.
meanwhile here at sochi's olympic village, you don't feel the so-called ring of steel just yet but that certainly will change in the weeks ahead. some 40,000 security forces, it's amazing, 40,000 forces spreading out over 1500 square miles of a security zone that is going to turn sochi into a fortress. there are growing worries that a lone, determined suicide bomber might breach that fortress and cause havoc. back to you. >> jim mess sada from sochi, thank you. if you're in the market for a new car, come on down to the dealership right now. why today is the best day to put that new car you've always wanted. rise of the airport security robots, can machines really spot terrorists better than humans? the power rundown is up next. honestly, as much as i love this job, i plan to do a lot more. i needed a new laptop for my pre-med classes, something that runs office and has a keyboard. but i wanted a tablet for me, for stuff like twitter and xbox,
the week after christmas is one of the best times, of course, of the year to get discounts on clothes and electronics and, indeed, new cars. mary thompson is live in long island where she's looking at audis. over to you. >> simon, it's out with the old, and new, at auto dealerships across the country, looking to
meet both month end and year-end quotas are making deals that make new year's eve one of the best days of the year to buy a car. kelly blue book explains what's motivating the dealers. >> they are trying to get rid of whatever 2013 inventory is left on the road and really just to try to push as much volume as possible to increase their market share in the u.s. >> and volumes are big this year. u.s. sales hit 14.3 million vehicles through november and estimated to hit a six-year high by year's end. financing has been favorable throughout the year, with low loan rates and attractive leases available, automakers are giving sales a year-end push with rebates and added incentives like the one the audi customers received when he bought his car today. >> very happy with my deal. since yesterday, it was actually another incentive and i had to put less money down.
>> among some of the other deals kelly blue book spotted cash rebates from 2500 to $5,000 on jeep compass, dodge grand passenger, cadillac ats and the top selling vehicle the ford f-150. keep in mind dealers have an 80 day supply on their lots so if you're in the market for a new car, you'll have plenty of product to choose from. add to that, thursday january 2nd is actually the day that dealers close their books on 2013, so if you can't get to the lots on new year's eve you have an extra day or so to buy that car if you're in the market. back to you. >> i know what i'm doing over the next two days. thank you. my favorite time of the show, power rundown time and simon it's you and me, babe. topic number one, aviation and government authorities around the world increasing the use of robots in parts of airport security and immigration. they are using computers to verify flyer identities raise something questions over safety. simon, what's your take on this? >> i love it. about 7 or 8 years ago in the uk
for immigration they put in a computer that read your retina of your eye and because so few people registered for it, there were very short cues and i was able it to get through uk immigration faster and basically walk through. i love automation. >> i think it's faster and takes the subjective, the bias out of screening potentially. it could be a much more fair process so to speak. >> okay. topic two, france imposing a new rule on the ubber car service. the rule says ubber drivers must wait 15 minutes after receiving a car reservation to actually leave and pick up the customer. apparently this is to distinguish ubber service from that of a traditional taxi. are you feigning outrage at this? >> no. what makes a difference. i'm going to order my ubber 15 minutes earlier. there are ways to get around everything, right. >> do you use ubber? >> i have used it. in new york city as well as san francisco and it's great. i know that on twitter today there's a lot of outrage over tonight and what's going to happen with surge pricing
tonight. you know. >> as far as -- i mean every city around the world protects its licensed cab drivers because most of them have spent so long training for the job and want to keep them in business. the only exception is here in new york where the medallions are owned by single figures, 8 or 900 of them and don't get the trained taxi drivers. we have a mayor who might attempt to destroy the business was the quote when he left office. we will see. >> and by the way in new york city also there's an app for hailing yellow cabs. so you know, there's something for everybody out there. >> that's very true. >> new york city mayor incoming mayor bill de blasio saying the horse drawn carriage in this industry is over. he's vowing to outlaw the carriage rides as soon as he takes office. i think these stink literally. you walk in central park, you smell the horse. it's a smell you don't want to be confronted with when taking a nice stroll through the park. i'm sorry. >> they smell because they're horses and they're working and that's what animals are like. i mean, i just think the people get what the people want. de blasio in with a landslide
victory. his lot says it's not humane for them to be working. bloomberg said they work like everything else works in new york city. i don't know. this is the beginning of the de blasio era. we will discuss it many, many times. >> yes. the argument is, of course, the horses are treated inhumanely, et cetera, costs a the lot of money to keep the horses. i'm curious, are you going to go up to central park and take a ride before it's too late? >> no. >> you don't want to put one of those nice blankets over you while you brave the cold? >> would you like to come up with me and we can go around in the subze ro temperatures. >> that would be lovely. i can't think of anything better. >> thank you. >> on the final day of 2013. >> all right. coming up next, the year in just 57 seconds. stay tuned. welcome back. how is everything?
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a two-year high in the stock market, look at that. >> number four. blackberry's death spiral. >> shares are down more than 80% since the apple iphone was released in june 2007. >> number three, the year of the activist investor. >> i was concerned about dealing with carl icahn. he's a quintessential example that on wall street if you want a friend, get a dog. >> number two the health care debacle. >> a data center critical to healthcare.gov went down last night, holding on-line enrollment in all 50 states. >> number one. the story of the year. markets at all-time highs. >> we have a record-breaking day down here ty. the dow and s&p crossing big numbers. >> the top five stories of 2013. >> and so the story continues, more record highs. what is your story of the year? >> i'm a fast money person so i was thinking stock stories. and i think tesla is a fascinating story. it has a fascinating ceo at the helm with the rise, the fall,
and the rise again of tesla, and with those investors who got in at the top, 194.50, see that level once again? it is up about 20% since its recent low so it has some momentum going into 2014. >> what are your fast guys say? >> i think that -- >> are they in? >> they like it from a momentum standpoint but you have to be careful of this one because it does have some support level lower from here. what's your best story of the year? >> my best story of the year the opinion piece i wrote yesterday that says ceos aren't investing in the economy like they should be. they're sitting on cash on a time when buying back their stock and helped spending half a trillion dollars a year to do that. for every $2 the fed borrows to buy fixed income ceos are spending $1 of shareholders' money and that's why the stock market one of the reasons why the stock market has done so well. what do you think? >> that is a staggering stat. good job on that. take a look at markets, simon, up 48 on the dow, s&p up 5 going
into the final moments of the year of trading. three biggest winner on this final day, refiners, valero, marathon. i'll see you today on fast. >> happy new year, everybody. that's it for "power lunch." >> "street signs" begins right now. . hello and welcome. the final "street signs" of 2013. i'm maadi drury. i'm joined by dominic chu and j jon fortt. all our guests today have brought along their 2014 model ball, so talking of models the had heavy hitters, the electric. auto predictions coming your way. wear them in your shirt, on your head, pocket, eyes, we're not talking about clothing. technology next year. and the gold plays a diamond encrusted ball. what the rich are buying in 2014? hello. welcome to the show, dom and