tv Power Lunch CNBC February 3, 2012 1:00pm-2:00pm EST
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that's my world. ♪ all right. welcome back. our thanks to benchmark's bill gurlye. that's all for us. market's off to the races. and "power lunch" is on top of it starting right now. it's all about the jobs jolt. the employment numbers way below expectations. is this a game changer or not? we're going to talk about what it means for your money, the race for the presidency and the fed as well. ty. >> and, sue, the jobs report has those bulls running as scott just said, the dow on pace now to close at a three and a half year high. the nasdaq aiming for its highest close in 11 years. we will tell you which stocks are surging and how to play it all. simon. >> the big game just two days away. giants versus pats, manning
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versus brady. lots of fans. lots of excitement. the big question ahead in the program, will las vegas lose if the giants win? i'm simon hobbs with tyler mathisen and sue herera. the super friday edition of "power lunch" begins right now. the jobs number points to growth, the sharp jump in ism services sector report confirms growth. and the bulls certainly like what they see. the dow up 1.2%. the s&p tracking higher. don't forget here we've broken 1332, the index has now doubled from the 666 market low at the height of the crisis. and over here the nasdaq is having a very good 2012. thank you very much. taking the pulse of the markets. backing off after the jobs report. flat on the session overall. bonds have been fascinating with the selloff. a big jump in yield on the 10-year. and check out where we are on
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the vix. just above 17. the fear factor fading. our midday movers this friday afternoon, genworth way up. a gain there of 13.5%. profits gilead sciences missed expectations but upbeat results of hep c drug lifting outlook. and urban outfitters up 6% on an upgrade. they also named incidentally a new ceo. bucking the trend as we head into the weekend, the super bowl weekend, earnings at edward life sciences beat estimates, but the guidance there is disappointing. estee lauder meanwhile also matching estimates, but guidance short of expectations. and wynn resorts, profits up 67%, but investors worried about the feud between ex-ceo steve wynn and a prominent shareholder. down to the nyse and latest from bob pisani. >> thank you, simon. five to one advancing to decl e
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declinideclin declining stocks. and are you ready for this? strong volume. we could do 4.5 billion shares on the consolidated, maybe even a little more. haven't done that in quite a while. volume, would you believe it? take a look at new highs of the major indices. dow industrials, all we have to do is close above 12,810 to hit a new three-year high. three and a half year high as well that's historic high for the s&p retail index. it's a basket of all of the retail stocks that are out there. and home builders index, believe it or not, is sitting right near a 52-week high as well. financials are the leadership group even though many sectors are above 1%. particular strength in the big cap financial names. there's your usual suspects. all up 3% to 4%. finally, we had a great week for ipos this week. no, not facebook. i mean regular old ipos that came in down here on the nasdaq. we're going to have 10 ipos next week rolling on including a very
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familiar name, here's one i bet you haven't seen in a long time. caesars entertainment. 8 million shares will about $16 million, $18 million dollars. obviously modest but at least they get their foot back in the door. we'll follow that and others ones. follow me on twitter. >> thank you, bob. let's switch on the "power lunch" power surge and drill down on the stories driving the day. it's all about the latest jobs report and what it says about the economy, the politics of it and how you can cash in on an economic rebound. start with the report jobs being created at the fastest pace in nine months and unemployment rate dropping close to a three-year low. steve liesman is here to go inside those numbers that perhaps you may have overlooked. hi, steve. >> sue, i'll recap. 243 is the overall number,
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243,000 and then 257,000 in the private sector. unemployment rate dropping to 8.3%. let's go a little inside the numbers and take a look. there's two jobs numbers out there, remember. the household number and the payroll number. normally these come together. economists don't tend to take a lot of focus on the household number. but i want to focus on it for a second. here's your payroll number and this is around 240. but look at this huge spike here, something like 870,000 on the household number. wouldn't be paying that attention if this hadn't been working higher for a very long time now. here's what's been happening over the past several months. over a one-month period 604,000 over. three months 700 and six months 1.1 million. so that's starting to get a little bit of focus here about whether the household survey may be capturing more of the job growth. big question about the lower participation rate, it fell by three ticks. let's talk about that here. overall 64% is the participation rate. for those in prime working ages, 82%, it's been coming down for a
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long time. and then 55 and older, 51%. but what's been happening, the ageing of the population is a big part of that. if you look at those 55 and older, you know, five years ago or so they were in this group. now they've moved over to this group. so you have this big chunk of people that have lower participation rate. that's part of it. you also have younger people maybe discouraged from the work force going back into school. and other people just dropping out. so three factors do it. but the labor department saying today a big part of the drop in the participation rate is the increase in the elderly population. now, one other thing i want to show you guys. we've had a pretty good rise in hours worked. this has gone from around 33.8 up to 34.6, 34.5. every point one of an hour worked is worth 300,000 jobs. so that would maybe mean you have 2.4 million other sort of working jobs out there. however, it's come with relatively muted wages. this is the sort of more normal
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kind of wage growth you would expect year on year over here around 3.2%, 3.3%. fell sharply during the recession and now we're chugging along. better hours, more hours worked, more jobs, but the wage growth is not there yet. >> also, steve, if i can go back to the participation. >> right. >> and the way you talked about those 55 and older moving to the other category, that begs the question as to whether or not the progress we've seen in this report is actually sustainable. >> well, here's the story. the participation rate, sue, has been falling for about 12 years. it never came back from the decline that happened after the 2000-2001 recession. that's a long-term trend that has to do with the ageing of the population. it creates huge problems for our ability for our deficit, our productivity in this country and what potential growth is. but as a reason for saying this is a reason not to be optimistic about this jobs report, that's not right. what it is we have to deal with
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we're losing productive workers in the 55 and older. by the way, sue, they are working in greater proportions from what the other 55-year-olds did. but still moving into a much lower participation rate category. >> very interesting. thanks, steve. appreciate it. >> sure. >> oh, yes, we are. >> i was just going to say. >> i want to thank you, steve, for reminding me i have now moved to that other category. >> you're in a category all by yourself, ty. >> yes, i am. >> i'm described by elderly during the course of that as well. >> now to the politics of jobs, president obama speaking today using the jobs report to push forward his plan to extend payroll tax cuts and unemployment benefits. our chief washington correspondent, john harwood, with the report. john, this can be read in no other way, this jobs report, but favorably to the president. >> reporter: absolutely, ty. it's a political jolt as well as a jobs jolt. and the reason for that is when you're an incumbent president running for re-election and the economy appears to be getting better, much less getting better at an accelerating pace, it
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makes everything that you say sound truer and better and makes more sense to swing voters than everything your critics say a tougher sell for them to make. privately, the president's policy and political advisors are giddy over this although the president himself this morning adopted a somewhat more cautious note. here's the president. >> these numbers will go up and down in the coming months. and there's still far too many americans who need a job or need a job that pays better than the one they have now. but the economy is growing stronger. the recovery is speeding up. and we've got to do everything in our power to keep it going. >> reporter: and, simon, you saw the impact of these numbers on the republican response. speaker boehner said the president's policies have not worked as advertised. that's a lot different from saying they haven't worked, which is what republicans have been saying in the months -- in the last couple of years, simon. >> john, for the moment, thank
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you very much. john harwood there in washington. experience has taught many of us to focus first and foremost on what the bond market is telling us to describe the future. rick santelli joins us now from the cme. it's a big move, rick. >> oh, it is. it's a big move no doubt. if you look at an intraday ten and a one week of tens, you'll see we're up about a dozen basis points, but on the week up only about five. look at the 30-year we're up about 15 basis points, about up seven on the week. the reason i bring up on the week is because if you look at the surface unemployment, you dig into some of the other numbers, the service sector was a very good number today. one would be maybe a little surprised there's not more, but of course europe might be playing into that. look at the euro versus the dollar on an intraday. it's about unchanged. but on the week we had last week a rare close above 132. in terms of steve's point, you know, from my perspective, i don't care if it's a short-term, long-term, it needs to be
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addre addressed. doesn't matter who started it or how the trend is, it needs to be addressed. and he's right about the 55 participation rate, but what he isn't mentioning is it's still the highest in 50 years for those 55 and older. back to you. >> indeed, thank you very much, rick. financials under fire. the nation's biggest banks getting slapped with a new lawsuit over their foreclosure practices. our hampton pearson is in washington with the details and the fallout of it. hi, hampton. >> reporter: hello, sue. this time it's the new york state attorney general suing bank of america, jpmorgan chase and wells fargo alleging fraud when it comes to use of the national electronic system. it was created by the banks as a private registry to make it frankly easier to track all that paperwork. now, from the lawsuit we're told there's something like 70 million mortgages that have been registered, 30 million are active. mers continues to be active in 60% of the origination of all mortgage loans in the u.s. the lawsuit says employees and agents of the bank of america, jpmorgan and wells fargo used
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the registry as "an end run around the property recording system so they could securetize those loans" mers has been under fire for about two years, however it's a small portion of the foreclosure nightmare of course facing the banks. as we all know a universal settlement involving all 50 states attorney general have been illusive to say the least. as bob pisani reported, stocks have been on a good run following the jobs report. >> thank you very much, hampton. up next, jobs and your money. as you know that monster employment number out today. what are the best ways to play this economy? it seems to be gathering a little steam. do you bet on america, or is america played out? do you go overseas? two strategists at cred swees will tell you. copper up 3% on the thought that the economic expansion in
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exchange. jon. >> yeah, it's been a fun week here with you guys. look at the nasdaq at some particularly well tech. start with semiconductors. a brutal 2011 but bounced back nicely this year. intel, up 23%. that's done well. even as the pc market has not because they are just proportments amazing. qualcomm riding the smartphone wave. let's move onto software. the big name in software of course is microsoft. anticipation of windows 8 driving that stock. besides they're not doing too shabby in smartphones at least showing they have a fighting chance into it. tax season coming up. that often does well. and the leadup to that. and then ca when it comes to big data centers. moving onto big iron, what's the name? cisco. six months ago they were really,
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really hurting. but they've bounced back as they've grabbed market share back and people realize it's not just a cisco issue in networking, there were some overall issues. f-5 has continued to do well and akamai delivering all that content from various providers trying to stream it. finally, old school is not so uncool anymore. remember seagate, the hard drivemaker? they've dodged the bullet on thailand. continue to get those out there at a good margin. dell performing well these days. and yahoo! with the new ceo and potential of selling those asian assets, not the dog it once was stockwise. sue. >> jon, thanks a million. all right. stocks soaring on the latest jobs report. the dow crossing the closing high of 12,810 reached on april 29th. and it's just points away from the intraday high. so, how should investors play this market right now? let's bring in our power player,
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barbara. >> nice to see you. >> do you think this rally is durable? do you think it will continue or is it going to be one of these cases where we see the lion's share of the gains in the first or second quarter of the year? >> we spent the better part of last year calling for a call for double dip recession in the u.s. we think the rally we've seen so far has been on somewhat of low volumes. we still think it probably has a little more to go. there's been a meaningful change in the macro economic data. we think the ltro from europe is a nice change with the margin. and we think that things can actually probably go higher from here. so on a 6 to 12-month view we have modestly to equities. >> what does a bit higher mean? >> we've already had a pretty good run so far this year. so what we're doing is playing the more cyclical parts of the market through emerging market equity exposure. >> emerging market? >> yes. they were big laggards last year. when the s&p 500 was up 2, that's a real anomaly for us.
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we're looking to play catchup through the emerging markets. >> what parts? which emerging markets do you favor? >> asia is top on our score list. we think in terms of valuation, china and korea score particularly well. >> do you think this is a trap? do you think the market moves are trap? we now have the gains that most analysts a month or so ago would suggest we would get for the entire year. unless the data today is great. if you look at the gdp number we had for the fourth quarter it was all about inventories and the commentary then it's not solid, that inventory will dissipate and growth will slow. are we throwing that out the window now? >> we're not necessarily throwing it out the window. investor sentiment was very oversold in the middle of last year and also towards the end of the year as well. so investor sentiment were not back in what we call euphoria levels. >> barbara, if you play emerging markets and you favor china, do you do it through funds? because for the individual
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investor, china's not as easy to play as perhaps korea is. how would you do it? >> well, we have a couple different strategies we like to implement for emerging market exposure. active management in that space can be a big differentiator because you can make decisions amongst regions, countries and currencies. >> uh-huh. >> europe can also buy it through some closed unfunds and exchange traded funds as well. >> i take your emphasis on emerging markets and the artful way you answered my question about how much is a bit higher that you're rather cautious about u.s. equities broadly speaking, the s&p for the remainder of this year. >> well, our global analyst have a price target on the s&p 500 of 1400 for the end of this year. not too much more upside from there. >> we're at 1343, so that's 60 points. that's not a lot of points. >> exactly. a couple more percentage points to go. the way we're playing the u.s. market is defensive sector allocation. we like the play for yield. so we're looking for consumer
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staples and health care stocks to actually be somewhat more defensive for us. also, you know, we like the emerging markets because they're cheaper than the u.s. at this point. not that the u.s. is terribly expensive, but some of the valuation gap has indeed been closing on the u.s. side. >> all right. barbara, thanks a million. last time we saw you you were about to have a baby. congratulations. >> thank you. >> beautiful baby boy. nice to see you again. >> you as well. >> up next on the program, three words we love. buy, sell or hold. a very special edition today. we'll drill down on some of the stocks the biggest winners since the highs of last spring. >> lots of green on the board. look at the market indices we follow here including the russell 2000, which is up better than 2%. and the transports are up about 1.25%. we're back in just a moment. uh oh. should we be letting him p-l-a-y with our t-a-b-l-e-t? [ mom ] i think it's fine. it's the new element from at&t
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let's look at some dow milestones here. where we sit right now at 12,855.53, we're 45 points above from the closing high last spring on the dow, but still 20 points below the intraday high on the dow in 2011. simon. >> let's go into our buy, sell or hold section this week. we're taking a look at some of the best and worst performing stocks in the market since the highs of may 2011. is it too late to get into them?
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we have our "fast money" contributor steven weiss here. >> thank you, simon. >> start off with macy's. a gain of almost 49% since may. buy, sell or hold? >> i think you buy it. here's why. the ceo is unsung because you hear about ron johnson, apple, terry is probably the best ceo in retail. so i would continue to buy. not an expensive stock. they have a space themselves like k-mart in a very crowded space. >> what about o rilely automotive up almost 40% since may. >> this is not a cheap stock. so what you're hoping for is that the csk automotive stores that brought in that as they integrate them in the system provides more upside. i think you have another 10% upside. i would shave a little. i'm going to equivocate say you can hold it but i would not buy more. i would be happy with what i had. >> what about starbucks? 31% gain since last may. buy, sell or hold. >> buy starbucks.
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it is pricey but growing twice at what the s&p is growing. and with the beer and wine coming in, people like you are going to be customers there. >> i don't know what you're talking about. netflix of course famously down 45% since the may high, but up 81% year-to-date. >> sell it. as a matter of fact, you can even short this one. i'll tell you why. who knows when they're really going to earn money. content costs are becoming much more prohibitive, not expiensie, and i don't think you can count apple out of the space. i would short the stock. not just sell it. >> look at well point. what's the call there? >> the call is to buy it. employment moves up, manage care participation. so today it's down because goldman came out and took aetna off the conviction buy list. i think it's a very cheap stock. about 8.5 times earnings. i get obama care, maybe it
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happens, maybe it doesn't. supreme court decision, extremely cheap stock. you can buy the manage space here. unemployment should be up. >> enjoyed that steve. thank you very much. have a good weekend. ty, back to you. >> simon, thank you. up next, businesses sitting on tons of cash and paying historically low taxes overall. is the time right for corporate america to really ramp it up and start hiring big time? "power lunch" debate on deck. >> and at least one iconic american company is doing just that. they are highing and jane wells is live at a caterpillar plant in arkansas with the story for us. hi, jane. >> hi, sue. i have my mandatory gear on. the cap, the safety goggles, my steel toed clogs. more americans are going to be wearing this gear in the coming months, but do they have the skills to do the job? we're going to talk about that after the break. i love that my daughter's part fish. but when she got asthma, all i could do was worry ! specialists, lots of doctors, lots of advice...
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the heat map. breaking down those sectors and seeing those that are moving at the most today, clearly the burl k of the market is to the upside. right on the top here you have the financials, economically sensitive, mortgage rates, all the things we talk about, discretionary consumers, industrials higher. and tech down here at the bottom as you might expect. the defensive stocks not doing as well. utilities, health care as arguably people rotating to a more aggressive position. just at the margin on the market. let's get down to the nymex and check on oil with sharon. >> well, let's check on the metals market as well because right now we are at the close here for gold trading. and we're looking at what really appears to be the trade of the day when we're talking about the reaction to the jobs data. and that is buying copper and selling gold. gold prices are down almost $20 here at the close right around 1740 for the close for gold. and copper surging more than 3%. again, that industrial metal play definitely strengthening here on signs of an economic recovery. we're also watching what's
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happening in the oil patch because not the same kind of strength you may expect there in u.s. oil prices. that's because there's so much supply out there, demand is very weak. particularly for gasoline. and that's a real conundrum for gasoline traders because we are looking at data points that show economic recovery and then oil statistics that show such weak demand. continue to keep your eye on natural gas as well. 240 to 250 range may be an area, sue, where traders are carving out a technical bottom here. they're still under pressure. back to you. >> thank you very much, sharon. as president obama continues to talk about tax breaks for companies that create jobs here in the u.s., some are taking it into their own hands. american icon caterpillar is one company that is bringing the jobs back home. jane wells is live at a new cat plant in little rock, arkansas. hi, jane. >> hi, sue. north little rock to be specific. you know, with rising oil prices and rising wages in places like china, manufacturing jobs in america are starting to look a little more competitive.
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caterpillar is hiring and expanding and reshoring. and now nearly two dozen states are competing for a cat plant moving from japan back home. arkansas wants that new plant. it already has this plant in north little rock, which opened two years ago to costs of $140 million. employs 550 people and expanding, but it's been tough to find skilled workers. so the university of arkansas little rock has expanded its school of engineering and collaborating with companies like cat to provide a pipeline of talent. a half dozen graduates have been hired so far. >> arkansas has always been a state where there's a lot of land to move in and create a factory. and there's a good hard-working labor force here. but what we were really missing was that highly trained work force. >> the approach to it there very hands on, very practical actually getting in there and not just learning the theory but doing the design.
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building an assembly, testing it, seeing how it broke and going back to the drawing board again is what really prepared me. it has a lot to offer. who doesn't like big equipment? >> who doesn't? although i'm not sure i'm qualified to operate it. caterpillar's also looking when it's deciding where to put this plant proximity to ports and transportation and also what kind of incentives these states are willing to throw them, what kind of money to sweeten the pot. they hope to make a decision by april 1st. they're not moving the plant for patriotic seasons, but the excavators market is fading in asia and growing in europe. they're moving back to where the market is. >> simple economics. as jane said, a business icon like caterpillar is bringing jobs back to america, other companies too. meanwhile, check out this wall street journal headline today with tax break corporate rate is lowest in 40 years sochlt with falling tax rates and higher
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profits, shouldn't this be the time for big business to start hiring? joining us now, president and ceo of the national urban league and ron christie, founder and ceo of christie strategies. gentlemen, welcome back. >> thanks, tyler. >> let's begin by talking about the jobs number today. mayor, this can only be characterized as good news for the economy. i guess what you can say is there's still work to be done, but more work's getting done. >> this is good news for the economy for a number of reasons. one, job growth is broad across all sectors except state and local government. secondly, it reflects a good strong trend of increases in private sector jobs for 23 of the last 25 months. so directionally what i like is the fact that it shows sustained strength in the economy. much more work left to be done, but i think we need to say this is a good report. >> ron christie, there is still persistent long-term employment, the number of weeks people stay
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unemployed once they lose a job remains very high. how can that get turned around? >> good afternoon, tyler. i think that's one of the persistent problems we've seen over the last several months. if you look at the folks who continue to look for a job and exhaust their 99 weeks of benefits, i think what we need to do is re-invest in this country. i think we need to look at some job training programs of getting people the skills they need, be it in education or in a particular trade, to help get them back to work. i want to underscore what the mayor said. i think this is a great move for america. i think this is news that we've long been looking for. and you've seen the market respond to this very positive news today. >> let's look at micron technology shares are halted for news pending. just wanted to throw that in there. we'll get more on that in just a couple of minutes. one of the other items, mayor morial, that i noticed in this report, was a rather steep decline and a welcome one in the unemployment rate for african-americans. >> yeah. we have to celebrate that. it's creeping down. and that's better news, but it's
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still unacceptably high in the 13% range. but good news is welcome. and directions are welcome. and the direction is a positive direction for job creation in this nation and for the nation's african-americans, i think, ron christie made an important point, continued investment in job training and education will help. but i'd also like to see the business leadership of this nation do a little extra to hire some young people this summer. take advantage of the fact that we now also have lower tax rates. >> forgive me, mayor, ron, i want to pivot the conversation here. with corporations having so much cash on their books, the "the wall street journal" story today about the overall effective tax rate being as low as it is for corporations, largely because of investment tax credit and increased speed of expensing of things, it's very tempting to say that companies ought to be hiring more. that those corporations ought to
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be putting dollars into the workplace. my view on that is, well, a corporation doesn't necessarily have a civic duty to go out and hire. they have an economic duty to do what's right for the corporation. do you agree with me or disagree? >> i agree with you there. i think one thing you need to recognize and which of course you do is that corporations are behold to their shareholders and make the best decisions for their company or particular business. while you'd like to see corporations hiring a lot more people, i think there's a great deal or regulatory uncertainty in this country. what is the impact of the affordable care going to be? what are some of the environmental impacts from the epa going to be? that are having a little bit of an impact on the corporation's desire to hire. what's the climate going to look like next year? i think while they should as a good corporate citizen be hiring people, they might say at this point it's not in our economic best interest to do so. >> gentlemen, we have to leave it there. i do not want to go without getting the football picks from
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mayor morial. mayor, last month you had the lsu tigers and saints. >> and i'm in tears. >> all right. who do you pick? >> go giants. i'm on the floor of the new york stock exchange, go giants. >> mr. christie, who do you got? >> i'm in trouble. i'm sitting in 30 rock. i think it's going to be a squeaker with the new england patriots. >> all right. we'll have you back next month. >> take care, tyler. >> great segment. reminder we are waiting for news from micron halted. there might be a three-way tie-up with one of their rivals in taiwan and japan. some denials there but still waiting to see what comes through. up next, football and the markets. our annual super bowl financial quiz. >> and since this is "power lunch," as we head to the break, check out some staggering foot stats. this is how much we're going to eat on super bowl sunday. more than 4 million pizza pies, 100 million pounds of chicken wings, 43 million pounds of t
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the countdown to the super bowl rematch between the pats and the giants is on, of course. but before they battle it out on the field, our darren rovell catches up with players in indianapolis to see whether they know their current events as well as they know their playbooks. darren, this is an annual right and a funny one. >> it is. an annual right and an annual wrong, i would say. the players know that i'm coming, but they're very nice. and they try their hardest when i give them the annual super bowl financial test. what is rim mean? >> who? >> rim. >> rim? >> yeah. >> what do they make? >> rifles. >> how much is our national debt? >> $1.6 billion.
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you're going to go with what he says? are you going to phone a friend? you can't do that here. spell kardashian. >> kardashian. >> i-d-i-o-t. >> what country uses the euro as its currency. >> south africa. i have no idea. >> guess. euro. on the opening coin flip, what are the odds it will land on heads? >> 50/50. >> how many chicken wings are on a chicken? >> ten. >> ten. >> i got a mutant chicken. >> if you come up with a ten wing chicken, you're good.
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what percentage of the population will not be watching you on tv? >> 8%. >> higher. >> 10%. >> higher. >> 20%. >> higher. >> 40%. >> higher. >> 60% of america does not watch the super bowl. >> sorry for them. >> what do you think is a fair valuation for facebook? >> well, i got to say they did get many questions right. i think the patriots as a team probably had the highest percentage i've ever seen. i did hold up a picture of mitt romney, and they almost to a t i think everyone identified mitt romney, which is good, obviously, since they're from the state of massachusetts. to be fair, and i always have to say this, i can't answer all the questions about their xs and os, so let's just put that out there as well. >> good point. >> back to you. >> good point.
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thanks, darren. >> okay. >> well, football fans are obviously pumped up to see the rematch between the pats and giants on sunday, but las vegas has a big reason to worry. our courtney reagan is live at caesar's palace sports book in vegas with the latest, courtney. >> #. >> reporter: good afternoon, simon. folks are starting to take their seats behind me to place their bets on the big game. and while vegas really loves the casino traffic and other traffic that the super bowl weekend brings in, it's a little bit concerned about the rematch between the new york giants and the new england patriots. >> i do believe nevada will need the new england patriots to win this game. i think it will be somewhat like '08. the public will bet the giants. in fact, we're already seeing a lot of giant money. so come sunday we'll be rooting for the patriots. >> reporter: four years ago the giants were the underdog by 12-point margin. and when they won, las vegas sports book suffered their first losses in 20 years. but when the patriots won in
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2004 and '05, vegas had two of its best three win percentages in more than two decades. the odds for the giants win are now close to even. just six weeks ago when they had a 7-7 record, canter gaming offing 80 to one odds for new york to win the big game. potentially turning a $100 bet into an $8,000 win. while about 80% will come in on saturday and sunday, so far the public is betting on the giants. he isn't too concerned about his sports book, but he knows others that are. and when we asked jay, who runs the super book atlas vegas hotel and casino about the potential for losses and how he feels about it, he said, you know, sometimes, that's just how the chips fall. sue, back to you. >> thank you very much, courtney. and of course you can watch the super bowl between the giants and the patriots sunday right here on nbc. coverage begins at noon. kickoff is at 6:30 p.m. eastern. up next on "power lunch,"
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the trader triple play, what you need to know heading into the next week. we'll be back in a moment. ♪ ♪ you and me and the big old tree ♪ ♪ side by side, one, two, three ♪ ♪ count the birds in the big old tree ♪ ♪ la la la [ male announcer ] the inspiring story of how a shipping giant can befriend a forest may seem like the stuff of fairy tales. ♪ ♪ you and me and the big old tree side by side ♪ but if you take away the faces on the trees... take away the pixie dust. take away the singing animals, and the charming outfits. take away the sprites, and the storybook narrator... [ man ] you're left with more electric trucks. more recycled shipping materials... and a growing number of lower emissions planes... which still makes for a pretty enchanted tale. ♪ la la la whoops, forgot one... [ male announcer ] sustainable solutions.
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updating the markets for you right now. the dow jones industrial average is up 139 points. the 10-year note saw a huge jump in yield today because of the better than expected jobs numbers. and west texas intermediate crude up almost a full percent. what should investors be focusing on heading into next week? it's time for the trader triple play from the nyse. joey ross of new york futures and at the cme, jack bouroudjian, bull and bear partners. welcome all. michael, i'm going to start with you. does the employment report we saw this morning change the dynamic into next week? >> certainly it does. we've gotten some pretty good numbers all along over the past two or three months. this is another confirmation number. although a nice big confirmation number, i think what we're looking for next week is more
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follow through. it's a light economic week. so we'll be looking at earnings, coca-cola, disney, cisco, for people around here, you know, we've got the new york stock exchange reporting next friday. so if we get that kind of follow-through, if we get a positive look forward out of these companies, then that's the type of follow-through wooem get with the market. we'll just keep going higher. >> what does that do to the 10-year yield, jack? >> we've been rating for rotation out of bonds into equities. the question is when we're going to get it. i have been waiting along with everybody else. we're amazed at the swing. so the question is whether we're going to see that money finally work its way out. i think with the confirmation with today's number and it had more than just the creation of jobs, you know, effect. it had the confidence effect. we were hearing about it earlier. so let's see if indeed it does help the confidence level. where we know and where we can tell is see the multiples expand. this is a market that should be traded with 15 or 16 multiple.
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there's no reason why not. >> i was reading yesterday, joe, that this might well be a kind of blowout year for gasoline. when i think about that, i think that may not be good for me and my big new suv. what do you say? >> that's a good point. i think you're right. any kind of refinery problems this year you're definitely going to have major problems. to me, it's already strong. we really haven't recovered from the nigeria stuff last week. we're holding now. and these guys are coming in and buying march, april spent gas right now. >> right. >> it's not a big trade. you can sell heat against it and crude against it and still profitable against it right now. >> profitable for people buying it, not for those using it. >> right. the refineries that are hedging it. it's profitable right now. you're right. it feels like they're starting already 9700 we traded the other day. it feels like if we can't stay below 8500, we're going to be knocking on 9700 again. it's definitely the leader here. >> all right. michael, can i go back to you? the earnings you mentioned next week, what are the market
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expectations? a lot of companies have been so conservative in their guidance that the market has not been disappointed because they were guided lower. what are the expectations next week? >> absolutely more of the same. they've set the bar low enough that we're probably going to be exceeding expectations the way that we have over the last two or three quarters. i wouldn't expect it to be any different. >> jack, what's the main thing that your market's going to be watching next week? is it the economy and earnings? or do we switch back to europe? the iif says it's going to continue discussions over the weekend. there seems to be a few glitches, once again, no surprise here, in the greek deal. what are you going to be watching? >> and what happened to that greek deal within hours? >> you know, i think the situation with europe is starting to stabilize a little bit. at least the markets are starting to tell us that. there seems to be a template, there seems to be a solution at hand. timing is really the question. as far as the markets go, two things.
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i think, one, of course they have their eye on the european meeting next week. let's see if we do indeed get something. but we are breaking out technically here. let's face it. this market has been a very, you know, i guess amazing market. it's been the teflon market. throw all this bad news at it and it continues to go up. so it is squeezing people into getting long. and that i think is what we're going to see next week. reluctant buying, cash on the sidelines starting to work its way in. >> jack, i admire your view of europe. to me it seems like it's a real crunch there and there's a huge potential for failure over the weekend whether the politicians will pass the pay cuts or they're going to find the extra 15 billion or 20 billion euros that the dutch today are saying they certainly are not going to step up. are you sure it's benign? >> simon, i got to tell you right now, failure is not an option. you and i know that. the germans have already come out and told us that. so, they're going to do whatever is necessary. is there going to be political rhetoric thrown around? yes, are we going to see a
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headline that spooks the market? maybe. guess what, again, failure is not an option. >> all right. gentlemen, thank you very much. have a good weekend. we appreciate it. >> thank you. >> and coming up, just over two hours left in the trading day. a check on the markets and our charts of the day. that and more when power returns in two minutes. [ male announcer ] you are a business pro. lord of the carry-on. sovereign of the security line. you never take an upgrade for granted. 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. i deserve this. [ male announcer ] you do, business pro. you do. go national. go like a pro.
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we were just driving along,er comin' back from the lake,ng. and all of a sudden, ka-plam. it blindsided us. what is it? our college savings account. how do you think it happened? not sure. i think something we bought a while ago turned out to be something else, annnnnd, i remember a lot of other stuff in there had the word "aggressive" in it. is everyone okay? well, now, yeah. who knows later. ♪
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breaking news and tragic news out today. micron technology ceo steven appleton has been confirmed dead. he was in a plane crash at boise, idaho. apparently this happened at 8:58 local time in idaho. here's what the airport had to say. a private plane crashed between the two runways at boise airport. the plane was an experimental fixed wing land aircraft. there was one person on board. that person did not survive the crash. the airport is operating with one runway now. i believe appleton was 51 years old. he had been ceo since he was 34 years old, in 1994 he was an executive president at 31 years old. actually, he had been in a plane crash before also in boise back
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in 2004 in, i believe, july of that year. and he had a very unique attitude about risk in life. he was known to be a hard charging executive. he said to "usa today" europe has crashed. the older you get, the more risk you should take. went sky diving at 80. what if his parachute didn't open? he finished that saying if i die tomorrow, i have no complaints. i've experienced more than anybody should expect in a lifetime. micron technology, one of the important companies in both memory, d ram and nan flash memory. the stock had been under pressure in recent months just because of the tough component environment in memory in particular. now, he was a popular executive at this company. he was forced out of the ceo position in 1996. managers revolted against the board and got him back eight days later. a tragic loss for the technology industry, the death of
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