tv Power Lunch CNBC October 30, 2014 1:00pm-2:01pm EDT
coach. big oil, home gamers, buy it. >> doc. zroo dr. pepper, snapple, dps. >> you still like the royals not to win the series in game seven? >> yeah, i do. >> steph. >> allison transmission trucks. >> you guys hear that yesterday? >> josh. >> discover financial. >> "power" starts now. "halftime" is over. "power lunch" and the second half of the trading day start right now. >> all right. look at that. the dow up 152 points. it is up big. but appearances sometimes deceive. most of the gain for the dow is one stock. visa. visa shares up almost 10% there, 9, almost, at $233. and after that, it's not really such a great day for the bulls. remember, the do you is a so-called price-weighted index. so a big move in a high-priced stock like visa has an outsized impact on the overall index. coca-cola's up, but look at jpmorgan. it's just basically flat. exxon down about 0.5%.
and intel, suffering off about 3.3%. beyond the do you, nasdaq, the s&p and the russell 2000, they're all higher as well, but basically kind of a quiet day. modest gains for the market. it's the question just about every homeowner wants to know and wants to know often, how much is my house worth? today, tomorrow, the next day. well, google says it knows, and diana olick is going to tell us about that coming up. and the world series mvp gets a recalled pickup truck. and that's just strike one for gm last night. we'll tell you the rest of it after an exciting end to the world series. sue at the nyse. hi, ty. we begin with a very big story in the corporate world. tim cook says he's, quote, proud to be gay. apple's ceo coming out publicly in a bloomberg "businessweek" essay. josh lipton is live outside
apple's hq in cupertino. josh, over to you. >> reporter: well, sue, you know, tim cook values his privacy, doesn't typically look to draw attention to himself. but as you mentioned today, he made a very big personal and public decision in that op-ed. the ceo of apple writing "while i have never denied my sexuality, i haven't publicly acknowledged it either, until n now. so let me be clear, i'm proud to be gay, and i consider being gay among the greatest gifts god has given me." cook went on to say he made this decision because he wants to help others if coming out can help others who are struggling come to terms with who they are, he says that's a tradeoff worth its privacy. his colleagues here at apple coming out in support of tim cook. you saw phil schiller, apple's head of marketing, say on twitter that he called cook courageous. eddie q. said he was proud of his open colleague.
one question, although apple and its colleagues seem to be coming out in support of cook, how is the rest of the world really going to react to this op-ed? recently we saw these reports that apple is looking to make this bigger push into iran if sanctions are loosened. now, the opportunity there makes sense. iran has a big population of young people. on the other hand, in iran, homosexuality is still a crime punishable by death. sue, back to you. >> josh, thank you. and as josh alluded to, being gay is certainly a bigger issue in some countries than it is in others. joining me on the floor, michelle caruso-cabrera, our chief international correspondent. josh alluded to iran. >> right. >> of course that's a big market for apple. >> it is. and still being gay in iran is still so taboo that former president ahmadinejad made headlines just at columbia just a few years ago. listen to this. >> translator: in iran, we don't have homosexuals like in your country. we don't have that in our country.
>> so at first the audience laughed when he said that they don't have home sexuals because they couldn't believe it, and then you heard the booing at the end. iran is one of seven countries where you can be put to death by homosexual. there's a map that they provided that shows you the world showing you which countries we've put up in blue have laws prohibiting homosexuality. you'll notice we put russia in white. that's because it does not specifically prohibit being gay, but it does prohibit what they call gay propaganda. we posited the question, if a major ceo announces he's gay, could it hurt sales in countries with high levels of anti-gay sentiments or anti-gay laws? we couldn't find any academic research on this. just because a country has these laws doesn't mean at the individual level the buyer choice is necessarily going to be affected. back to apple specifically, for the most part the company doesn't break out sales by
country by country but rather region by region. the most is the middle east and africa. they don't even get a mention in the annual report suggesting it's not very meaningful. china, there is no legislation related to homosexuality. >> the question you asked and posed is absolutely the right question. that's what everybody is wondering about today. i really think so. >> right. thanks. >> appreciate it. breaking news in the bond market. the seven-year note up for auction. rick santelli, how'd it do? >> reporter: oh, boy, a lot like yesterday's five-year. let's do the internals here. 29 billion seven-year notes. the yield at auction, 2.018. that's about a whole basis point higher than the 2.008 that was trading in the w.i. market right as the auction ended. so right there not looking good. bid to cover, 2.42. weakest since november last year, close to a year versus 2.57 ten auction average. right where they should be at 46.4.
we're about 5% light on the direct. 38% go to dealers. i give it a "d" plus. could have gone "c" minus, but the parts just weren't there. and maybe it's the leftovers from yesterday's statement, but two auctions in a row that did subaverage, so we want to pay close attention to what investors do in the next several days with the treasury complex. back to you. >> all right, rick, thank you very much. to phil le breaebeau now wie breaking news. >> this comes to us from the ntsb to answer questions regarding those faulty air bags. remember, #.8 vehicles have been recalled due to faulty air bags. most of those or almost all of those recalls happening in high-humidity states where these air bags, when deployed during an accident, may shoot out shards of metal and obviously not function properly. after meeting with takata representatives this morning, david friedman, the acting
administrator for nitsa said he's compelling them to turn over documents and answer further questions about the faulty air bags and their efforts to fix those air bags. so that's certainly breaking news, tyler, whenever you have an auto supplier or automaker forced to turn over documents. back to you. >> all right, thank you very much. phil lebeau. let's get back to apple ceo tim cook coming out publicly. joining us now is kara swisher, she is a recode's executive editor. welcome. good to have you with us. >> thank you. >> without straining the analogy too much, is this the jackie robinson moment for the lgbt community? and for american business? >> it's a big one. it's definitely a big one. i mean, he's obviously the ceo of one of the most valuable companies in the world, if not the most valuable. i think it possibly is. and he stated it quite publicly and quite in a very elegant and firm way. he wasn't going to back down from it. it was a very strong statement. it will have reverberations all over the place. you know, i don't know if tons of ceos will suddenly come out,
but it certainly will make people think about the issue very carefully. >> we may well be able to intuit what this may mean for lgbt individuals who are in a corporate world. >> right. >> but what do you think it means for american and global business? what's the long-run implication of it, if any? >> i don't think -- eventually none. this is an issue that's been playing out for years and years. and i think that gays in the united states, at least, have made a lot of strides around marriage, all kinds of issues in the media and around the world, there's some very terrible issues for a lot of gays around the world. i think eventually, this is part -- there's a line in angels in america, the world only spins forward. that's what it's doing today, it's spinning a little faster forward. people can talk about the impact on apple and whether people in iran will buy iphones. you know, the iphone is not gay, tim cook is. he's the ceo of the company. you know, it's a product. he's the ceo. it's who he is. and if people don't like that and want to not buy it, that's
what they'll do. you know, i think he has put this calculation in, and they put out a great product at apple. and it will sell because of the product. not because of its ceo's sexual orientation. >> i love that line, the iphone is not gay, tim cook. since you follow the world of technology in silicon valley very closely, one might have the feeling that that part of the world is "a," very tolerant, and my question for you is is it? and number two, for people in technology companies there, does this moment liberate them so that if they thought i don't want to move up the corporate ladder because of my sexuality, now that egg has been broken? so they can? >> absolutely. yeah, but now we have an openly gay senator. you know, it's just -- it's just happening. people are tired of it. of this ridiculous game that people play. you know, it's not we're more tolerant here. this is the way it should be. and i'm sorry, like, it's not that radical to say. you know, gay rights are human
rights. i mean, everybody is impacted by intolerance around the world. technology has been at the forefront of that. not in every aspect, for certain. there's not enough diversity, there's not enough gender diversity or anything else in technology, but it's moving forward. you know, oddly enough, ibm was one of the first companies to be pushing gay rights issues. many, many years ago. decades ago. and apple was the same way. i wrote a story in the 19 -- early 1990s i think about round rock, texas, and a fight that apple had over gay issues there. so it's not a new thing. it's just a continuum of what's happening. and this is just a ceo who happens to be gay. he also said i'm a son of the south. i'm a fitness nut. you know, he's a fitness nut, too. it doesn't form everything that -- format everything that he is, that he's a gay person. he just happens to be gay and he happens to be the ceo of apple. ultimately so what? >> a big auburn fan. he's going to be rooting for auburn. and congratulations on the giants winning. >> giants. go, giants.
san francisco's in the news today, i guess. >> it's happening. great, as always, to see you. to dominic chu. >> you'll notice i'm wearing my orange and black today. so je, go giants and congratulations. watching shares of "the new york times," after reporting weaker than expected sales and projecting a further decline in advertising sales in this current quarter. now, the stock you can see there currently down by 6.5%. for the year, "the new york times'" shares are down by 20%. so sue, a rough day for the "nyt." back to you. we told you, dom, about the dow jones industrial average up 150 points. not quite the same story for the s&p and nasdaq. they're struggling a little more. bob pisani is here on the floor. visa's responsible for the move in the dow. >> this is one of those days when the dow's not representing what's going on in the market. >> absolutely. >> 0.9% for the dow, up 0.3% for the s&p. good for visa. great numbers for visa. the problem is 130 of the 150-point rally in the dow is due to visa. 19 points. do the math there.
that's almost 130 points. what else is moving things? look under the hood. advanced decline line is just barely even. that's not a great market. what's leading it? utilities. the utility index is at an historic high. if you look at the xlu, the utility index, very heavy volume there. that's an indication people are concerned about lower rates. you should have better leadership than utilities here. big tech. look at some other things not having a good day. intel's having a lousy day, microsoft, micron's having a lousy day. if you look at the semiconductor etf, the smh, down 2%. very heavy volume on the downside. that doesn't impress me that much. what else? oils, everybody says oh, oil's down. the market's up. big oil stocks are getting killed today. >> really hard. >> some of the big names that are out there, national oil, nabors particularly in the semiconductor capital equipment space -- excuse me, the oil equipment space is down. >> there's a lot of options activity there, too. >> very good point. put buying in the xop, that's the exploration production, excellent point. very heavy today. they're going out and buying
protection against the market dropping further. so it's great oil down, some of the stocks are up, but the rest of the market is not looking great here. finally, financeals are doing well. that's what's happying thin ini things today. i sound like a crank. i'm just looking under the hood. >> i'll see you in a little bit. what are the biggest bond firms thinking now that the fed has ended quantitative easing? let's go back to rick santelli with a special guest today. hi, ricky. >> reporter: absolutely special guest and he's standing next to me, tony. tony, it's a pleasure. all right. sue teased this. you're going to give us your notion of what the fed yesterday did or said or wrote down. but keep it short because i want to cross-examine you. >> the fed is trying to convey the idea that its outlook for the economy hasn't significantly changed. therefore, the time line for its rate hikes is unchanged as well. so it looks like midyear or so. then probably say don't get too wrapped up about when they'll move. it could be march. it could be june.
it could be september. think about how much they'll move and how fast. and pimco would project a neutral rate or so, 2ish, call it, tight rate, 2.5, maybe a little higher. 2017 or so. so so the fed is basically saying our outlook's unchanged. don't move too far from the dots. the markets are priced for so little in terms of rate hikes. in fact, for the unlikelihood of the fed moving early. >> reporter: there's where we can start. okay. so when you gauge whether we are not pricing in accurately the rate hikes in a market, where do you look? >> well, the euro-dollar markets, of course. here in chicago, it tells accurately what global investors think the short-term rate will be because libor. >> supposed to converge. >> it reflects the policy rate of the federal reserve. >> the euro-dollars were so offsides. i guess my issue is that when you start "a," tightening and we will someday and i'll probably be under 100 hopefully, when we start that, i think the markets can grab on and actually price it in. but right now it's mostly
arbitrage and i still contend that the market can't know what janet yellen and committee don't know! >> right. in fact, we don't know what the three musketeers know which is she and fisher and dudley. they're the core leaders. you hear a lot from the hawks and doves but they're more like howling wolves. they're to the the alpha. >> being a grown-up economist with a great firm, you know, well beyond drinking age, how do you feel? i'm serious about this question. about that three musketeer committee basically controlling interest rates and talking about, like, we want to keep them here. we want to do this here. doesn't that bother you as a free market guy? >> think about it. it's a little discomforting to think that central banks globally are in charge. think of the united states and the u.s. congress or washington more broadly. >> reporter: yeah, i'm afraid to have them in charge. there's little we can do about it. >> but the last two years, how productive was it? how many laws passed? the least in 200 years. how did the prior two-year session go in 2012? the least since the '80s.
they're not doing things actively. here's a good example. 8 million jobs lost jobs at the end of the recession. what did washington do to try to help them? very little. we didn't help retrain them. yes, we helped in terms of benefits. >> we've got to leave it there but i like your point, that the fed is doing things you may not like. no one else was doing it. a great rationale to be on the balance sheet, i'm not sure. back to you, sue. >> all right, guys, thank you. good to see you, tony. call us when you come to new york. some people made an awful lot of money predicting trends in the u.s. housing market. and google is getting in on that game. diana olick has that story for us. hi, diana. >> reporter: hi, sue. that's right, it's google and auction.com in a bid to beat the realtors in the data game. we'll tell you how coming up next on "power lunch." sheila! you see this ball control? you see this right? it's 80% confidence and 64% knee brace.
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welcome back to "power lunch." check out shares of amerisource bergen. the health care distribution company, this stock is one of the best performers in the s&p 500 today after the company posted better than expected fourth quarter earnings. it also issued fiscal 2015 guidance above wall street estimates. the stock currently up by about 6% in trade. and this stock is up, tyler, about 20% year to date. back over to you. >> all right, thank you very much, dom. thomas menino, the longest searching mayor in the city of boston died this morning at the
age of 71. he had faced a long battle with cancer. many will remember the mayor who checked himself out of the hospital with a broken leg in the aftermath of the boston marathon bombing. insisting on being available to serve the city he loved. mayor menino served five consecutive terms as the chief executive of boston. that's almost 20 years. well, the data used to get a snapshot of the u.s. housing market, often looks back to forecast the future. but now google is getting into the game, and they change games when they get in. using big data to convey real estate trends in realtime. diana olick has that story from washington. hi, diana. >> reporter: hi, ty. it's the power of the very public search, google using your search data to determine home sales as close to realtime as you can get. how? okay. so last march google capital, an equity fund backed by google, put $50 billion into auction.com
which is an online real estate auction company. we're all saying why? the answer is data. going both ways. today, auction.com is launching what it calls the now cast. it's the brainchild of google's chief economist who says that by using google search terms and then overlaying them onto auction sales data, they can predict monthly home sales numbers about a month faster than the realtors do. now, auction does a very small fraction of the nation's home sales, but they do do auctions almost every day. the realtors are involved with a much larger share of home sales. auction says they've tested the model going back ten years, and they claim they're very close to the realtor numbers and that they usually beat the consensus forecasts. so i asked the realtors about this, and they were very polite. a spokesman said they'll keep an eye on it and review it, but he added that they stick by their data, and they believe it is most representative of the market. they pull numbers from 40% of the nation's mlss, those are the
local listing services. if you want more on all this, of course it's online. realtycheck.cnbc.com. sue? >> diana, thank you very much. all right. well, the most awkward moment from last night's world series, mvp madison bumgarner receiving a chevy truck, but it's a recalled chevy truck. we'll have that story straight ahead. plus -- >> they promised billions of dollars to finance everything from gold mines to movies. a scheme that went on for years. coming up on "power lunch," meet the mom who helped unravel it all. stay tuned. getting in a groove. growth is gratifying. goal is to grow. gotta get greater growth. i just talked to ups. they got expert advise, special discounts, new technologies. like smart pick ups. they'll only show up when you print a label and it's automatic. we save time and money. time? money? time and money. awesome. awesome! awesome! awesome! awesome! (all) awesome! i love logistics.
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weight watchers shedding its own weight despite solid earnings. the company's raising concerns about spending during the 2015 full year and modestly lower gross profit margins as a result. weight watchers shares currently down near their session lows, down by about 15% and for the year, that brings the stock's decline to about 25%, sue, to the down side. back over to you. >> dom, take a look at this really dramatic video of lava from that active volcano, the kilauea volcano in hawaii. it's now 100 feet from a home on the big island. 600 feet from the main road. now, if that main road gets hit, it will cut off the town of about 1,000 people. however, we should note that most of those people have already fled from the area, much of that under mandatory evacuation. ty, over to you. >> wow, that is just amazing
picture. >> it's amazing. >> my goodness, the power of nature. one of the key players in an advance fee fraud scheme was recently sentenced for his role in stealing millions from people looking for commercial financing. our andrea day has the details. >> we're talking about $26 million that was bilked from investors. and according to the indictment, the top execs would stop at nothing to get that fee. even telling employees, don't let the truth get in the way. >> reporter: i was just wondering when you swindled $26 million from people, how do you sleep at night? >> greed and arrogance took over me. >> reporter: and the mother that helped unravel it all. >> i will become your worst nightmare. >> reporter: what's it like living large on someone else's money? >> it blows my mind in the fact that they were so successful. >> reporter: david axelrod thought this man was part of a real american hustle. >> we've got to get over on all these guys.
>> we've got to be the best we've ever done. >> i was with my wife. i nudged her with my elbow, i said this is my case. >> reporter: just like in the film, people paid up-front fees for loans they never got and the bad guys got rich. $26 million here. that's a lot of cash. matthew mcmanus and this guy, andrew bogdanoff, promised billions from gold mines in africa to cruise ships and casinos. axelrod says remington financial group. even touting an 80% success rate in securing the cash. >> you need $1.2 billion? we got it for you. it didn't matter. >> reporter: was remington capable of doing that? >> oh, no, no, no. it had -- it had no ability to do any of that. and that's really the heart of the fraud. >> reporter: bogdanoff ran the office in arizona and mcmanus ran recommendimingtonremington' philadelphia. what about these promises? did you ever intend to come through on these promises for people?
axelrod says remington targeted people turned down by banks like ingr ingrid. she wanted to develop a luxury community right here as a legacy to her daughter's life. she says her commercial broker referred her to remington. >> remington said that they would fund the project to the tune of $5 million. >> reporter: she says remington quickly sent over a letter of interest, or loi, and all she had to do was pay $10,000 up front so they could continue the process. so you handed them $10,000. >> you better believe it. >> most, if not all, clients got to the promise stage. >> reporter: but for she and thousands of others, that promise was broken. >> eventually they'd tell you, well, your project has problems x, y and z, and it can't be financ financed. we're sorry. we tried really hard but good newt and good luck. >> reporter: taking a fee is illegal. what makes it illegal is promising to do something when you can't or simply not going to do just to get the fee. it's tough for investigators to prove especially if the company is good at covering its tracks. and carefully wording contracts.
>> the reality was they didn't have anybody who looked at it, and they certainly didn't have anybody who was interested in financing the project. >> reporter: axelrod says remington became a cash-minting machine, pumping out lois. >> it's really crazy that they could do it day after day, year after year, phone call after phone call and they just kept doing it. >> reporter: but there's one thing they didn't count on. >> i'm ingrid robinson, i met the american hustle. >> reporter: after her dream was crushed, she refused to let remington walk away. >> he said to me, what are we missing here? we're doing everything we can to fund your project. you sound like a hysterical woman. and i said, if you think i'm hysterical now, just wait. i will become your worst nightmare. >> reporter: and for seven years, she says she worked to find other people who had given remington advanced fees. she gave her work to investigators. some might say lady, you're absolutely crazy. >> yeah, they probably would. but then again, they're not a mother on a mission. i am.
>> reporter: do you feel like you messed with the wrong mother? axelrod ultimately prosecuted eight people in the swindle from 2005 to 2011. >> but based on all the records we saw, it was probably going on long before that. >> reporter: and unbelievably, investigators say just weeks after bogdanoff was indicted, he used an alias to continue the scam when he finally pleaded guilty and was sentenced to 18 years in lockup. this is what he said in court. >> mr. axelrod was absolutely on point. he said i was greedy. and greed and arrogance took over me. >> and matthew mcmanus was recently sentenced to 16 years in prison. he has 90 days to report and no wordy et on where he'll spend his time behind bars. back to you. >> andrea, thank you very much. let's check the interest rates curve today and see where we are. you heard tony of pimco a bit earlier this afternoon. and the bond market, the ten-year note and the two-year note have been moving. right now the yield on the two-year is 0.485%.
and the ten-year note, yielding 2.312%. you're up to date on the bond market. he's in charge of one of the world's biggest brokerage firms, and he's talking exclusively with our dominic chu. over to you, dom. >> all right, so sue, one of the guys we want to talk to you here because he's got a great view of the market is howard at bgc partners. he's got a view of not just the financial markets but also commercial real estate as well. he's coming up next in an exclusive after the break. means keeping seven billion ctransactions flowing.g, and when weather hits, it's data mayhem. but airlines running hp end-to-end solutions
welcome back to "power lunch." i'm julia boorstin. pandora shares hitting a 52-week low after reporting disappointing results last week including a lower than expected increase in listeners. the stock was downgraded to underweight from market perform at albert freed. this after fbn securities lowered its price target on the stock on monday. the stock is now off about 3%. over to you. >> okay, thank you so much, julia. well, we have a triple-digit gain for the dow jones industrial average thanks to visa. s&p and nasdaq have been up slightly throughout the trading day. joining us to talk about the post qe environment, mike wilson, chief investment officer of morgan stanley wealth
management with $2 trillion in assets under management and jim dunegan for pnc asset management which manages $132 billion. so we have an awful lot of dollars worth of advice for everybody today. mike, i'm going to start with you. how does your investment or does your investment philosophy change now that we're in the post-qe environment? >> yeah, it really hasn't changed because this has been so well signaled since january. they've been exiting qe. our thesis this year has been that tapering is tightening. we actually viewed the volatility a couple weeks ago as the end of this corrective period in which the market was adjusting to a tightening regime. we think it's right on schedule. >> tim, do you agree or differ from it slightly? >> no, i do, susan. i think investors can take the "q" from the federal reserve and the fact that they see the economy improving to the extent that they can remove that support that they've been providing. so we see today reported 3.5% growth. we've had four out of five
quarters of 3.5% plus growth. that's good for investors in that the economy continues to improve which leads to upside in the markets here. >> mike, let's take a look at what you like in this market because we have seen an upsurge in volatility after a notoriously long period of time of low or no volatility. as that volatility ratchets up, what sectors do you like right now? >> sue, there's no doubt that we're on the backside of the mountain, as we like to say. the easy money has been made in the u.s. stock market for the most part, but there's still money to be made. there's a rotation that's been going on throughout the year towards what we call later cycle stocks that tend to do better as the economy matures. large-cap tech is a good example. parts of health care that are slower growing, hmos and hospitals. and we actually think industrials could have a bit of a comeback here as the world gets comfortable that the fed can actually tighten and the world doesn't fall apart.
>> jim, let's take a look at what you favor in this market right now. i know that you agree in terms of industrials. but what else do you like? >> we would look at some sectors in the consumer discretionary area, certainly lower energy prices will help the consumer. but that would focus on media. we would be underweight restaurants here, some selected parts of apparel. we like auto parts in there. we talked about industrials. and additionally in health care in that managed care hospital piece. and lastly around financials, we would be overweight insurance and overweight credit cards in there, in this environment going forward would be underweight the utilities and telecommunications. >> all right. gentlemen, thank you so much. appreciate it, mike. good to see you again, jim. >> thanks, susan. >> ty? thank you. bgc partners beats the street by a penny. dom chu is here breaking down the numbers for us here. >> bgc posted 17 cents a share of revenue of $450 million, both
narrowly beat wall street estimates. now the company is whether the recent market volatility and the fed's completion of qe can create enough demand for more trading volume in this quarter and the next. so bgc partners is part of that big picture. it's a global firm that specializes in both financial products and real estate. so let's get a take on this. let's bring in bgc chairman and ceo howard ludnick for an exclusive interview. howard, tyler and i were fascinated by the story. your earnings are at records. what's driving it? what part of the market is really powering your sales and earnings growth? >> well, we've got two beautiful things going on. you've got, you know, the suppressed real estate environment, which is great for real estate. so we're seeing unbelievable real estate numbers. and if you thought you had great real estate numbers this quarter, wait till the fourth quarter. i think our real estate business is going to knock the cover off the ball. it's up 54% this quarter. and looking to a fourth quarter even better.
long-term low interest rates is great for that business. if you move over to our financial business, you know, this low volatility has been so boring for so long. i mean, i love the fact that you guys have guests on talking about the volatilities coming back. we saw a nice september. we saw a better october, a little volatility goes a long way with our numbers. our financial business was up 80%, 85% this quarter. and more volatility is just a friend of this. >> now, with quantitative easing ending, do you think that that contributes more to the volatility? do things get more normalized now that the fed is trying to step away from its asset purchase program, and does that drive more trading volumes going into 2015? >> well, it naturally does. you've got to remember, the fed buying bonds, you know what they do with them? they do nothing. everybody else who buys bonds hedges them, does something to try to reduce the risk. the fed buying 85 billion a month and then just doing nothing with it, crushed volatility from the system. so the fact that the fed stops
has got to increase volatility. it's got to increase excitement. at least it makes it more interesting. you know, the fed just sucks it up and puts it away. it's kind of boring. >> now, if it does do that and put it away, do you say those interest rates will stay low for quite some time? you mentioned the real estate side of the business as well. when it comes to commercial real estate, are we seeing signs of life emerge there? can we say at least from your point of view that you think the economy is getting better, is getting back more to normal because that commercial real estate market is coming back, or can we expect more middling to happen going forward in 2015? >> we're in a world of slow growth. long-term slow growth. it's not exciting. you can see the numbers in oil. you have oil lows. long-term slow growth. stop quantitative easing, and you know what you've got? the easiest monetary policy in the history of america after quantitative easing. you've got long-term low interest rates, real estate loves that. a nice, smooth economy growing 2%, 3%. this is the kind of stuff that
real estate is made for because people don't buy commercial real estate for a trade. they buy it as a long-term investment. and that is fantastic for real estate. so you're going to see commercial real estate as a great asset for a long, long time to come. you've got five years to run on it. low interest rates will be here for a long time. commercial real estate is a great place to invest. and you know, our company has been putting up spectacular numbers. >> howard, tyler and i talk a lot about markets, but that's just part of the story today, right? >> absolutely. >> other stories. >> i wanted to get your reaction, howard, as a ceo of a prominent american company to the announcement by tim cook earlier today about his sexuality. what is your initial reaction, and what does it say to you, if anything, about american business or what changes you might expect there? >> you know, look. i'm a new yorker. and let's be clear. people should be happy in their lives. whatever makes anybody happy, i can't be more fond of. i just think the world is, you
know, getting more and more used to the fact that people are human beings, and they should find happiness, and they should be successful. and you know, business is really not the place to talk about people's happiness. we should just be rooting for people to be happy every chance they get. i can't be more in favor of that. >> howard, thank you very much. we appreciate your being with us. dom, thank you as well. howard lutnick joining us today. sue, down to you. >> thank you very much, ty. with the dow jones industrial average up 206 points, now, ben willis joins me here at post 9 because there have been some issues with what's called the nms system. so tell me what that is, how it works, and what the problem has been. >> so national market system, and it's linked between every listed -- every exchange in the united states, or globally, technically, around the world. and it's an electronic connection. and right now there is no interface from one exchange to another. occasionally they'll have a breakdown of one exchange maybe from the whole group. this is what they'll call in the technology world a global
collapse. so that while we are still trading on the new york, it's not really having the ability to be reported properly to the tape right now, the tape a and b. so it's a major frustration because -- >> because you're trying to get the best price. >> correct. i'm obligated by law. >> by law. >> and as a fiduciary to get the best price. i don't have access. and the problem is on top of that, the prices we're seeing may not actually be the true existing price. so from other exchanges. the new york stock exchange, the prices you see, are the prices we will trade at. >> right. >> but i'm just checking a $100 stock across the floor, where we're seeing a stock at $103 just traded at $96 on another exchange. >> i see. >> i don't think that trade will stand. >> that probably won't. right. ben, thank you for the simple explanation. something that you never know what's going to happen down here on the floor of the new york stock exchange. ben, thank you very much. all right. the dow is at its highs of the trading session right now. up 212 points. coming up, the giants are the world champions, and mvp
madison bumgarner now is the owner of a brand-new chevy colorado. great, you say? well, not really. the problem is, that truck was recalled. that story straight ahead. plus -- >> today's "power house" is home to online local business guide operator yelp. the united nations charter was signed here. and it's the birthplace of photographer ansel adams. can you name that city? she inspires you.
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or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. welcome back to "power lunch." we want to call your attention to what's happening with the dow jones industrial average. now up by around 200 points right near session highs. of course, like bob pisani pointed out earlier, the vast majority of this move higher, 130, 140 points of it probably more at this point is just one stock. and that's visa, moving higher on the day after earnings. keep an eye on the dow. but remember, visa is really driving the action there. also watching shares of whirlpool which are moving higher today. the company was found not guilty
by a jury in the first lawsuit to go to trial, accusing it of selling front-loading washing machines that contain a design flaw that made them prone to developing mold. the jury cleared the company following a three-week trial in federal court in ohio. 150,000 residents in the state were part of the class action lawsuit. those shares, you can see, up by 1.5%, tyler, on the day's trade. back over to you. >> thank you very much. "power house" time, birthplace of clint eastwood. make my day. can you name the city? san francisco. a happy place today with. with us is jeff with mcgwire real estate. let's give you stats about san francisco. according to zillow, median sale price, about $953,000. inventory, about 600 properties. local mls service says places there stay on the market for just 32 days. today let's focus on bernal heights. i hope i'm pronouncing that right, jeff. first up, 3184 mission, unit 204. listed at $785,000, but it just
sold for $940,000. taxes about $9,000. two bedrooms, two baths, 1260 square feet. this must have been a beautiful place to go that fast and that much higher, jeff. >> yeah, thank you for having me on, tyler. it was. and it is. it's a two-bedroom, two-bath modern condo with parking in a great location. near cafes, shops, restaurants, public transportation, tech shuttles, highway 101 and 280. >> that looks nice. looks like it's really modern and nicely redone. second listing, 763 gates. asking $859,000. taxes about $8500. 4 bedrooms, 3 1/2 baths, nearly 2,000 square feet of living space. is this, again, a condo or a freestanding home? >> this is a freestanding home, tyler, and it's a four-bedroom, 3 1/2 bath, large view home that's been recently updated. two-car parking, garage, plenty room for storage. close to highway 101 and 280. >> very nice. and our power house of the week, 50 mirando, listed at $959,000.
estimated taxes about $10,000. 4 beds, 3 baths, square footage, 1865. jeff? >> spectacular four-bedroom, three-bath home, fully remodeled, modern with high-end finishes throughout. the seller did a great job. it's like a new home. two-car parking also. >> that is fantastic. some beautiful properties. congratulations to the giants. jeff salgato. >> thank you so much, tyler. >> sue? all right. the dow's up 211 points. and as ty said, congratulations, the san francisco giants have come out on top, winning the world series. general motors, not so much. giving the mvp a bum deal. plus, there's much more to the story. the chevy rep behind it all, go to cnbc.com vote to join the conversation. phil lebeau has the story. phil? >> sue, would you buy a truck if i told you it was going to have technology and stuff? ironically, this might work out to be a good deal for general
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the dow is now up more than 200 points for the trading session, up 214. that's the high of the day. and let's take a look at the biggest winners so far today. visa, merck and pfizer, all solidly in the green. ty? the story of the day, yep, the san francisco giants have won the world series for the third time in five years. but what gm gave the mvp is what's really got people talking today, let alone how they gave it to him. phil lebeau has the story from chicago. and while he reports, you tell us what you think cnbc.com/vote. from chicago, which hasn't won a world series in how long, phil? >> a long time, tyler. the cubs, they still have hope. they always have hope. let's talk about the world series last night because if you went to bed once the giants won it all, you missed perhaps the most awkward mvp awards presentation that i've seen in a long time. here's what happened. in the locker room afterwards, the mvp award was presented to the giants' madison bumgarner. he is standing there and it was
presented by rick willdy, a product manager for general motors in kansas city. the award is a new chevy colorado pickup. well, listen carefully to what mr. wilde has to say about the pickup. >> at chevrolet we have -- we have also been proud of the latest and greatest technology in our trucklineup, which is the all-new 2015 chevy colorado. it combines class-winning-leading, you know, technology and stuff with wi-fi powered by onstar. >> technology and stuff. that is getting quite a bit of attention on twitter today. by the way, that's not the only issue last night. the chevy colorado is the subject of a recall right now. gm has told dealers to stop delivering them. about 2400 trucks are impacted. there's an air bag issue, a software glitch that they're fixing. by the way, many of them have already been fixed. and madison bumgarner will not be receiving a defective chevy
colorado. having said that, tyler, i did ask gm, look, did you think about the optics of presenting the mvp award winner with a recalled vehicle? and they said no, we've just launch it had. we're proud of the truck. that's why we wanted to present it. as for mr. wilde, admittedly, he was very nervous on national television, but gm points out he was genuine, sincere and he's a kansas city guy. today a lot of people are talking about chevy guy because that's what they're calling mr. wilde. >> yes, use him, four out of five americans say they have found a new pitch man. he was sincere. he was nervous. >> see? he was nervous. i don't fault him for that. technology and stuff. >> all right. phil, thank you very much. there you go. you see the vote. yes, 81% say use him. let's see what's coming up on "street signs." >> actually, ty, i'm going to take it because we have an update on the nms story that ben willis and i brought you earlier. bob pisani, what does he have to say?
>> the securities information processor, that consolidates the trades here, there was a problem with orders getting out of the exchange. essentially the nyse and nasdaq wasn't able to effectively talk to each other. nyse says they have now fixed that issue. what i don't know is whether or not nasdaq and batts are themselves able to talk amongst themselves. i know the nyse has gone to the backup, and they said they're connected. what we don't know is whether everybody is connected and talking to each other. >> which affects finding the best price, so we will see. thank you, bob. we're back in two minutes' time. stay with us. ♪
we are at the highs of the day in the dow jones industrial average with a strong gain in the dow. up about 235 points. the fnasdaq is up 22 and the s& is up 16. so the markets look like they're going to have a strong afternoon. but we're going to talk about something else right now. if you've ever shopped at discount grocery chain aldi, you know that the experience is different from shopping almost anywhere else. in a rare television interview, jason hart take s us on a privae tour and shares how the company is disrupting the entire industry. that's coming up tomorrow on "power lunch." ty?
>> fascinating and generally rather sort of secretive company, aldi. >> yes, very low key. >> we'll look forward to that. there was nobody in that store, by the way. i want to go there. no lines. that does it for "power lunch" for a thursday. >> with a strong market, "street signs" begins right now. see you tomorrow. yep, that's right. stocks are on the rise as we get more evidence the economy is on the mend. the question is why is the dow only up a couple of percent on the year? we're going to get some answers. and billion-dollar advice on what to do with your money from here on out. welcome back, brian, by the way. you know, we've talked a lot about the shortcomings of the dow, but this is a really good example today because one stock, visa, is responsible for about 135 points of the dow's rise today, all by itself. you can see there the dow is -- nicely sitting at 17,207. so it's back above the 17,000 mark. it's also higher for october once aga