tv Street Signs CNBC March 14, 2012 2:00pm-3:00pm EDT
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>> the 30-year is off two points today, but it's climbing dramatically. >> that will do it for "power lunch." michelle, great to have you back. >> it was fun. we'll see you at 5:00 for "fast money." "street signs" begins right now. and welcome to "street signs," hello, everybody, i'm mandy drury. one of the nation's biggest realtors delivering one of the most optimistic signs we've seen in nearly two years and as the fear and loathing wanes, gold is also started to lose its luster down 3% just today alone. we're digging deep to find out if it is time to get out of the precious metal. and deep fried profits, yeah, the high-flying stock that just might fatten up your portfolio, in the meantime let's kick it off now with the markets, and let's look at what the dow is doing, because it's really struggling to put together a sixth straight day of gains, just going negative moments ago, if it can regain its footing, though, it would
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have its longest streak since february of last year. also on track for the highest close in more than four years. the s&p 500 for its part also having its own trouble failing to crack the 1400 mark today, getting as high as 1399.42. so close! before falling back currently, sitting at 1392. and the nasdaq up 17% year to date, also having difficulty today to gain some traction. it's a bit of a back-and-forth session for the nasdaq, any gain, though, by the nasdaq would give us its highest close since november of 2000. bertha is out at the nasdaq and we'll get to her in a second, but let's go to bob, you've been following the cloud computing ipos which have been huge this year and there's a big ipo tonight as well. >> yeah, i think the important thing is demand ware, dwre, we've had a slew of the cloud computing ipos come out and they've all done magnificently, tonight, they do customized
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e-commerce sites, i ham hearing it will go well above the tanket range, somewhere in the range of 1250 to 1350, and it's priced above that, and who knows where it will come out. it's another hot one down here. the stock market today is really about what is going on with the dollar and what's going on with the 30 year. take a quick look at the 30 year, mandy, i want to put this up for you because we keep moving up on the dollar and look at the dollar index. it keeps rocketing up here all month. that's important with the improving economy, the 30 year, the yields move up on the ten and the 30 year, that's your big story here in the last couple days, mandy? >> it certainly is a big story. the same story yesterday when you were saying the story of equities is the story about bonds. what's the story today with tech, bertha? >> today it's apple, really. apple now just off of the highs. take a look. we're at $585.28, up just 3% but apple today, morgan stanley, slach i
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slapping a $720 12-month price target, they think by the end of 2013 it could be close to $1,000 and earning $80 per share for the year. beyond apple we have more than 120 highs and some of the big caps are following on the coattails that microsoft, intel, and qualcomm all at multiyear highs today as well. we've also got some strength in retail. bed bath & beyond seeing the folks at bernstein raise its price target and it's at an all-time high, and lululemon fell today after an all-time high and the regional banks looking good. and zions bancorp up nearly 10% here on the wall, and it is set to repay its t.a.r.p. funds. back to you, mandy. >> thanks so much for that, bertha and bob. is it time to buy on the highs, let's bring in a global strategist and ted moore, great
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to have you on set today. >> good to be back, mandy. >> always talking about new highs, record highs, you know, multiyear highs, et cetera, is that the time you want to be starting to put your money to work? >> when you reach multiyear highs and we reached them in 2007, recall, and in the early part of 2008, you really have to worry about whether it can be sustained, whether the fundam t fundamentals support that, mandy, there are lots of fundamentals coming from the united states itself, europe, chinese developments which worry me. so, my quick answer to you would be -- >> we've always had the worries. they haven't gone away. is there a new worry that would warrant a pullback at this stage? >> we have new worries and same the valuations of the equities are higher and that makes it more risky and the new development you have is the chinese finally are having a big trade deficit in february. there's going to be less money to finance the fiscal deficits. you need to take that into consideration. and employment has been rising more than 200,000, mandy, in the
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united states, three months in a row, you have to worry about whether that can be sustained. >> we'll talk more about the gas impact with our economist in a second. let me get to you, ted, we are under sou sounding defensive on three sides, do you agree? >> well, at the same time we're finding more value in cyclical sectors than the, quote, defensive sectors by and large. it's not across the board. but right now we're finding our best values in information technology, and we're finding less value, considerably less, in sectors like utilities and consumer staples, which seem to be crowded trades at this point. >> with regard to information technology or i.t., i see that you like the large cap, tech stocks like cisco, which has had good runs year to date along with the other large cap tech stocks that you see have had a run and might be time to take some profits? >> it depends which stocks. we happen to think that cisco and dell are substantially undervalued at present levels, trading at very low double-digit
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multiples, and that, you know, there are some tech stocks that have had extreme runs, and we think that they're overvalued, but not those two. >> is apple overvalued? i mean, they are sitting at 12 times forward earnings, that's thr below the 13 times forward earnings on the s&p 500 it feels like on that alone it's got further to run and yet it's cracking new highs every day. >> apple is impressive and they keep revising earnings upward, we don't happen to own the stock, but you can make a very strong investment case for it. >> do you have any thoughts on apple? i know i'm putting you on the spot here and you don't do individual stocks, but i've got to ask you about this stock which is really the talk of the town. >> well, no -- you're right, i do not look at specific stocks, but i think overall, overall market is under pressure, i don't see apple alone surviving it and remaining apart. >> okay. so, how would you play this market for a cnbc viewer today, how are they going to make money? >> i think a cnbc viewer can do a lot of things. one is on the u.s. side be defensive.
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i would say very many of the consumer staples, health care, utilities, which provide you high dividends, they're going to be good to get money. and today, mandy, with the ten-year u.s. treasury having gone to $227 and the 30-year treasury having fallen, we say go big. there are etfs you can go into. play it and watch the yield come down again and take profits from it. >> you think the yield will come down? the ten year, the 30 year, the highest since october 31st, does it give you concern? >> that gives me promise. that leads me to believe that there is an opportunity for the yield to come down especially if i see the european problems are not resolved and if the u.s. economy comes under pressure with the consumer not delivering as much as he or she has over the last few months. both of which mean you're going to get a lot of benefit. the third way cnbc viewers can make money and i said this on your program a few months ago, to shop the euro, and we started doing it 135, 136 with respect
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to the u.s. dollar. today it's barely above 130. i still think it still has a lot more weakening to go and that's, again, one other place to make some money. >> aggressive positions shorten the euro and you would short gold. ted, what's your call on gold? >> i'm afraid i don't have a great call on gold. sorry. >> mandy, i would add -- >> okay, so, i mean, gold is obviously moving down at the moment because fear seems to be lessening and peopwhat does tha mean in terms of an investment strategy, ted? >> again, i mean, we're a large cap value stock fund. we're focused on the fundamentals of the companies that we own. we don't happen to own any gold miners now if that helps answer your question. >> i think on the gold side, with no qe coming forward anytime soon, you have seen the first element of pressure on gold price. you've had that for a couple of days but you've not seen too much. second, if you have the dollar
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strengthening much further than it has and if the market goes the way i anticipate and the euro goes from 130 to 125 to 120 -- >> in which time frame? >> oh, 125 i have for middle of the year 2012. >> right. >> and 120 for year end 2012. both of which are very bearish for gold. >> yes. >> so, i would say if the dollar go -- if the u.s. dollar does so well, i think it's not a good sign for gold at all. so, i think that is one more play for your investor. so, quite a few of them to do at this stage. >> a lot of things for people to chew on. thank you so much. we have him back, herb, you look refreshed on your stay-cation. >> my two-day stay-cation. i did not mow the lawn. i don't mow lawns anymore. >> you watched "days of our lives." the business developments while you were doing it, what were they? >> in recent days there have been several press reports that
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the s.e.c. is about to file charges against felix investment and share post for the way they trade in the stocks of private companies including facebook and twitter. now, as it turns out, a few weeks ago i did a piece here on felix and the way they had aggressively been promoting their special purpose vehicles that hold these private companies' shares. i quoted several securities attorneys at the time, who told me that felix appears to be operating in the gray areas of the securities law. we'll see just how gray, if and when the s.e.c. does anything. i am under the impression based on my reporting that something is indeed imminent. now, felix principal frank mazolli, you see him there, he had been very chatty during our interviews, mandy, guess what, he declines comment. >> and you'll have an update on herbal life. is it herbal life or herbal? >> you do not pronounce the "h." you pronounce the "h" when you talk to me. >> going herbal on you.
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okay. coming up next on "street signs," one of the nation's biggest realtors out with a very hopeful sign for housing, but could they be a dark cloud on the economy? and how this stock cashes in on all love for things fried and boiled. tdd# 1-800-345-2550 account service fees. tdd# 1-800-345-2550 and the most dreaded fees of all, hidden fees. tdd# 1-800-345-2550 at charles schwab, you won't pay fees on top of fees. tdd# 1-800-345-2550 no monthly account service fees. tdd# 1-800-345-2550 no hidden fees. tdd# 1-800-345-2550 and we rebate every atm fee. tdd# 1-800-345-2550 so talk to chuck tdd# 1-800-345-2550 because when it comes to talking, there is no fee. what ? customers didn't like it. so why do banks do it ?
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an all-time high back to its ipo which was 1992. the retailer is up more than 40 per over the last year alone. in the meantime there's some hope on the housing front, average sales prices are higher now than they were this time last year, that hasn't happened in 18 months. this is according to remax's monthly housing report, let's bring in re/max's margaret kelly. i was looking through some of your numbers here and it seems the indications are for an active and good spring selling season. >> absolutely. in fact, i've been traveling around the country and all of our agents are saying this january and february have been the busiest they've seen in years. it's great. >> i don't want to put a downer on it, though, because we've mentioned, you know, it looks like housing is getting back on its feet, we're pointing towards a recovery many, many times, we start to move forward and we take a step backwards and then the recovery just seems to falter. is there any anything this time around that suggests it's sustainable? >> you know, i think so. looking at consumer confidence
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is up. gdp is growing and in the last three months, we've grown by 700,000 jobs in the economy. add that to finally seeing housing prices go up for the first time in 18 months as you said and the number of transactions, the number of homes being sold has gone up. inventories are going down. so, what we're watching is prices i think are going to be on the increase. >> okay. tell us about some of the biggest winners in terms of home prices, which particular areas around the nation are you seeing this in? >> well, we're seeing double digit price increases. are you ready for this? in california, in phoenix, and in florida. some of the hardest-hit areas are improving significantly. and it's great. a number of sales, albuquerque, st. louis, things like that are increasing. >> as you say, they were some of the areas that were hardest-hit, we're seeing it off a low base obviously. where do you feel it's lagging, margaret? >> lagging, there are a few areas out there. some a little bit in the midwest.
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not a whole lot. but what we're seeing is the coasts were hit the hardest, so we're seeing a lot of improvement there, and in the midwest for the most part since they didn't go up significantly, they didn't fall either. >> okay. well, margaret, let's hope it is sustainable. let's hope the recovery in the housing market does continue. so, we just heard about a little hope in housing and the market today, well, got a little flat, but it has been rallying, all signs that things are finally starting to turn around, but could there be a dark cloud on the horizon for the economy? joining us now from paribas and the chief economist there, we've seen a big dowls use of hope, b give us the flip side, what gives you doubt for the economy, julia? >> ire asking the right person. the things we're focused on in terms of risk to the recent momentum, rising gasoline prices, that's going to take a little bit of a bite out of consumer purchasing power. the fact that the global economy really still is slowing.
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europe is still in a recession. asia, china, still not really seeing the turnaround in momentum there, so not a lot of support coming from the external sector. and as one of your previous guests mentioned with the dollar strengthening, that whole external support that's been so important has been -- is not looking like something that we can rely on going forward so -- >> is there anything that you see that points to self-sustaining momentum in the economy? because obviously we've still got the fed crutches beneath us. >> absolutely. >> is there any indication that they'll be taken away before the 2014 date that essentially the fed has steet? >> no, i think the fed is committed to keeping the momentum building. they've not seen nearly enough to conclude that this is self-sustaining. as you mentioned, we're on the fed's crutches. we're also seeing still at the point with fiscal policy that government spending is still near record highs as a percentage of gdp and taxes are still near record lows, so
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somewhere along the line and we think it's going to start this year and also next year, we're going to start to have to pay higher taxes and less support for government spending and that's, again, just going to be a speed limit, a brake on some of the momentum, so there's still a lot of structural adjustments going on. your last guest was talking about the housing momentum. >> right. >> i think the signs there are still mixed, they're citing higher prices, but some other measures like core logic are showing house prices decline. we just come off a record warm winter and that's another thing we have to keep in mind. >> we do have to keep in mind. what about qe-3, is it still on the table? >> i think it's still on the table. i don't think it was coincidence or happenstance that we got something in "the wall street journal" that they are considering their options on qe-3, they are communicating to markets. either the economy will pick up or we'll provide more support, but just keep on taking risks and being optimistic, because
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we'll keep a floor under the situation. >> what about the law of diminishing returns, julia, thank you for joining us. >> it's a pleasure. zero or hero, twitter and facebook are blowing up over the goldman exec's resignation letter, we've got reaction to the headline of the day. but madness on the street, is your basketball bracket a slam dunk? carfirmation. only hertz gives you a carfirmation. hey, this is challenger. i'll be waiting for you in stall 5.
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let's take a look at what is happening with the market internals today. as we know we're sitting in a pretty lackluster position overall and you can clearly see that there are way more decliners than advancers on the nyse. as for the nasdaq, similar situation, decliners, 1078, and advancers over 600 and the nyse stats, though, new highs, i know it's a broken record, but every day we crack a whole new pile of highs ot nasd s on the nasdaq a course, the nyse. some headlines that could impact your retirement plans. it pays to be in banks eight of the nation's 19 biggest banks boosting their dividend payouts after passing the fed's rigorous stress test. one of the biggest increasers,
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the big surprise jpmorgan late yesterday by 20%. fidelity says investors saving for retirement in both 401(k)s and retirement accounts have an averaged combined balance of $212,000. the report shows that savers between 65 and 69 have a lot more, with an average of $359,000. and is this just plain madness? a new survey by msn finds that more than a third of people believe their march madness bracket bets will have a better percentage return than their 401(k), so we thought, wow, that's a headline we need to get more data on for. is it your ncaa or your 401(k)? >> i think it's the 401(k)s or i could spend a couple dollars on a bracket and win some money. 45% in the msn survey said the improving economy says they'll gamble at least as much as last
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year and as you said 35% say march madness bets will outperform their 401(k). i asked people on twitter how much do you spend on bracket wagers. i thought it would be slanted to more under $10, i was surprised at more than 20% over $50 there. and then we kind of looked in to -- this is also from msn -- how many people will take off, 6% of people say that they'll take the first few days off, of course, that's tomorrow and friday when games start at 12:00 and there's four games at the same time. and 30% will spend three or more hours during work following their teams. now, challenger gray and christmas always comes out with this study, and they said from those first two days, thursday and friday, $175 million will be lost from those employers because people are playing around with the games. >> would you do this? >> would i would you do this in putting your money in your 401(k)? >> you have to do your -- it's
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not either/or. whatever. it's not either/or, but people think right now they are really smart at picking their brackets. now is the confidence. tomorrow is where it all goes. i mean, that's -- the odds of you picking a perfect bracket are 1 and 9.2 quintillion. >> who did the president pick? >> i think he picked kentucky to twin it all. i might have been wrong, but i think he would have picked kentucky. because he picks the favorites, that's how he does it. >> that's the safe way to play it. >> three years ago he got it right. >> we'll be watching. coming up next on "street signs," we're drilling down to five new ways to trade the oil boom. and a fat-laden play that might fatten up your portfolio at the same time. [ leanne ] appliance park has been here since the early 50s.
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highs, the s&p 500 so far failing to crack the 1400 mark, we have over 60 new 52-week highs on the s&p 500, so is it time for the s&p to break out convincingly? let's ask katie stockton chief market at mka partners, what we need to get a confirmed breakout? >> yesterday was a good day from the technical standpoint. we saw the s&p 500 close decisively above the 1370, 1371 resistance from 2011 to confirm the breakout, we need consecutive weekly closes above that level. so, not that i'm sceptical of it, it actually looks like very much a real breakout to me, but i do wait for confirmation, of the type that we saw in may of 2011. >> if we do get the confirmed breakout, katie, what would be the next presiresistance level? >> the next one is 1440, based on the may, 2008, high, i think
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that may prove conservative as a target for this year, however, we've already seen the nasdaq composite get above equivalent resistance, the same for the dow industrials and beyond 1440, the next resistance for the s&p is about 1525. >> 1525, okay. to the down side, if we go to the down side, what kind of levels would we have to break and close below to give the momentum bulls a little bit of concern? >> a bearish reversal occurs when you see a lower low on the chart. that's obviously very far away based on how far this rally has come. what i'd be concerned by is consecutive daily closes below the 50-day moving average, the last i looked it was right around 1330 and that would be the first sort of chink in the armor. >> thanks for joining us. katie stockton joining us. what is good for stocks is bad for gold. the precious metal is really losing its luster today by about 3%. at its lowest point in approximately two months. sharon epperson has been
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twhaching th watching this commodity. what is driving down gold prices? >> what we saw, mandy, at the last fomc meeting, we saw a big spike in gold prices up about 50 bucks on that day. that was around january 25th. and now, of course, now that we see the quantitative easing is likely off the table we're seeing another move, a big move, but to the down side, a plunge of more than 50 bucks. we're down near the lows of the session right now for gold, the lowest prices we've seen since the january timetable and also silver is down 5% as well, but elsewhere in the metals market, we are seeing pressure, the dollar strength is weighing on metals. but platinum is outperforming gold and that's traditionally what happens but, of course, we've got the industrial component there and the likelihood of an economic recovery helping the platinum and the platinum group metals over, of course, the gold price. what's interesting to note, though, is what's happened just in the last couple of minutes here in the oil market where oil prices have fallen to the lows of the session. again, the dollar strength is a factor there and we're getting some momentum here on the
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downside with wti prices at 105.50 is the close there and brent crude down a dollar as well, delo wrr, down around $1.. we'll see if the levels can hold. >> what do people say is the next level of support for gold? >> a lot of numbers out there, people are looking at $1625 as the next level, maybe $1610, but i was talking to trader john nettle from m3 capital, look at where gold was at the start of the year, we may give it all back, that would bring it back to $1570. >> thank you, sharon. oil prices are up nearly 8% this year, and offshore drillers are riding that boon. the biggest names up double digits, in fact, so is it time to buy, is it time to sell? let's bring in scott burke, researcher analyst, what do you think about the drillers? >> hi. well, i think there's actually still some upside on the offshore drillers, you have oil
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at $80 a barrel to keep them strong on offshore drilling and you have the demand of the gulf of mexico as it returns from the moratorium and a lot of demand from brazil that is pushing it higher and higher. >> you've increased the offshore drillers' estimates for 2013, scott, which ones in particular do you like? >> the favorite names are ensco, and atwood, the best in the space, they'll increase earnings by 80% going into 2014. >> okay. what are the risks here? i mean, the first thing thatt g think of, great while eyoil pris are rising, do you think the potential backslide? >> there are risks that the oil prices have downside. at our firm, $10 to $20 of the oil prices are due to concern about iran, certainly there is room for oil downside which is typically negative for the stocks. however, the stocks really haven't participated to the extent that oil prices have moved up for the last six months
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or so. so, there really is room to close that gap, so oil prices could come down we think to 90 bucks a barrel or so and yet the stocks would still have additional upside from their current levels. >> they would still be okay. is there any particular driller in the sector that you would avoid? >> we don't have sell ratings on anything. we do have hold ratings on several of the names. the one that has run the most is transocean, people are excited that they are getting close to settling the mccondo latedation and they have rigs that can move up, but our stock has priced in the upside already. >> got it, scott, thank you so much for joining us. herbie is back, and he's got a big update on herbal life, herb? >> mandy, last week i knocked herbal life for claiming it does a bunch of r&d but not disclosing the amount it spends on that r&d, then a few days later, without fanfare the
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company updated the r&d section of its website to show the amount it spends on r&d and other stuff. here's the way the site used to look with a comment that since 2003 they've increased their r&d spending dramatically. here's how it looks now. with the disclosure that they spent about $25 million on the combined scientific areas of r&d, technical operations, scientific affairs, quality control, product safety and compliance. now, i asked the company how much was spent just on r&d, they responded if i wanted to learn more about their science, i should go out to their headquarters out in utah, see their labs, meet with their top executives and their senior sign t scientists, and do you know what, mandy, i might just take them up on the offer. >> when you do, you know you have to take a "street signs" crew with you as well, we want to film that, we want to see you with a lab coat on, absolutely, you go inside and do some investigating. >> see what i can do. >> all right. up next, how a tiny turbocharged snail could rev up
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i'm bill griffeth, coming up at the top of the hour on "closing bell," a trio of huge interviews you cannot afford to miss. first it's meredith whitney telling us whether he's chanshe changing her tune following the banks' stress data, and sheila bair gives us her take on what the stress tests say about the state of the banking industry and we'll get the outlook for oil and natural gas prices. talk to the chairman and ceo of chevron, john watson joining us, coming up, we look forward to
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seeing you at the top of the hour on the new york stock exchange. mandy? >> thank you very much for that, bill. this is straight out of darren rovell, we've got news on maddy square gua madison square garden has something going on. >> the stock is down, mike d'antoni the coach of the new york knicks have parted ways, from multiple reports led by yahoo! the, the knicks lost six straight ten games after linsanity, and the stock is moving down. right now the knicks are trying to get season tickets for next year. they are trying to sell them, they announced a 9% increase after a 49% increase this last year. all was seeming to do well with linsanity and everything else, and then they go on this skid, carmelo anthony comes back and now mike d'antoni is no longer the coach of the new york
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knicks. we'll watch the stock. >> we will, it's down 2.7% as we speak. are you looking to fatten your portfolio and hopefully not your waistline, why not add deep fried stocks, check out the stock of middleby, it's been hitting 52-week highs, they make industrial cooking equipment including deep fryiers, that got us thinking should you be greasing up your portfolios, and let's bring in elliott lang, what is going on with the stock? >> several things. they've just reported great earnings for the fourth quarter, earnings were up 56% above last year's record high. in addition, i think the fact that we put out on our great lakes review quarterly a report on friday indicating which of our eight best stocks would be showing record results next -- this year and next year.
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middleby was indicated as one of those, and also as you said, it's not been discovered as much as it should have been. being a relatively small cap company at about $2 billion market cap. >> who are their competitors, elliott? >> some of their competitors would be nodus, the -- also manatwok and illinois tool works. >> within the sector, you think it's the best? >> i think it's a superb company and it is the best. we don't cover the entire sector, but salim basuul who is marketing and engineering genius behind this company has created a great record of consistent earnings growth and knows how to obsolete his own equipment to give the restaurant owners exactly what they need, new
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equipment that reduces their energy costs, reduces their labor costs, and also reduces the wait time. >> okay. it's good that it's going greener. elliott, i got to ask you in terms of where it can grow from here, i understand that it's only about number four in the european markets. to what extent could it make further ground, maybe become third or second in the hierarchy in the european market? >> i think the chance -- >> okay. i apologize, i think we've just had a little technical difficulty, but thank you very much to elliott shlang. in the meantime from fried food to fast cars, indy car made a deal to team up with dreamworks animation for the movie "turbo"it is slated to drive into movie houses near you next summer in 2013. darren, thank you for popping back on the set. it sounds like an exciting deal you've made with dreamworks. >> it's very exciting for us. it's something we wanted to
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showcase open wheel racing around the world to mainstream and this definitely does that. >> the "cars" series was a big hit in my household, i've got two little boys. >> what is the translation, obviously you're trying to market to anyone essentially, but what is the translation, she talked about "cars" how much did that get to nascar and what are we talking here? >> well, i think if you're a little kid right now, lightning mcqueen is one of your heroes and i think that, you know, "turbo" will be the next one and it's about indy car, it's a feel good, it's a believe-in-yourself kind of -- it's not about the belief, bit on a spirit-type movie, and it's important that we can reach 8 to 80 and resonate with the mainstream. >> aside from what you're doing with dreamworks, talk to us a little bit about what is coming up in the 2012 season for indy car, i understand there are new cars and new competition and new engines on the track, what will it do for the season?
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>> we are very excited. we started the new season in st. petersburg, florida, we have a brand-new car, three engine manufacturers, a honda, chevy, and lotus, and we just are expecting big things. we've got new drivers coming in. one of the great f-1 drivers, baracello is making his debut next weekend as well. >> danica not being there, what does that mean? >> i think danica will do great things for nascar and i think she'll bring a new demographic to them as she did with us, but i think she overshadowed a lot of our drivers and i think this is the time when dario franchitti will shine more. here's a guy that is one of the best guys in the world, the top seven -- >> but danica might have been too much? >> you know, i think that danica was fantastic for indy car, so i wouldn't say she was too much, because she brought a lot of attention, but i think what's more important right now is that we showcase our winners and our drivers, that are winning on a weekly basis, like the dario
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franchittis, the tony kanaan, and you add in reuben baracello who will bring in the credibility of who we want to really deliver as the superstars. >> the horrible death of dan wheldon, i watched you after that, and you guys had your own investigation. what -- and some people said, hey, this could really be the end of where you guys are going to, so what -- where are you now? do we learn anything from that? do we become better, and where do fans go? do you get more fans, same fans? how does that work? >> i think it was definitely a learning process for everyone involved in the indy car world and the eyes on indy cars starts the new season, it's a difficult off-season when you end your last race with a tragedy. but i think we've had better communication between the drivers and the team owners and the engineers, and what we've tried to do is really try to set
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ourselves up to understand and work together on everything, not only safety, but competition. >> sure. >> and that's what we're really focusing on. >> well, have a great season. >> thank you. >> and thanks very much for joining us today. >> thank you very much. we'll take a very quick break, but next the stock the street is soaking their hands in and in the epic exit in the goldman executive, is it a sign of big trouble inside the storied firm? don't go away. has been working hard for their clients' futures. never taking a bailout. helping generations achieve dreams. buy homes. put their kids through college. retire how they want to. ameriprise. the strength of america's largest financial planning company. the heart of 10,000 advisors working with you, one-to-one. together, for your future. ♪
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the street has been soaking in colgate palmolive. it's been trading at all-time high levels since way back in 1930. mind you, sitting flat as we speak. now, this is the story the street is talking about today. yes, one of the goldman sachs execs resigning. mary thompson, this is an incredible story. >> the minute it came out, it's a very unusual move, mandy. the executive in question is a 12-year goldman veteran named greg smith. his accusations countered by goldman's top two executives disputing his claims.
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smith ran the u.s. equity derivatives business in europe, the middle east and africa. he called the bank's environment toxic and destructive. smith laying the blame firmly at the feet of the company's ceo and gary cohn writing when the history books are written about goldman sachs, they may reflect the culture on their watch. blankfein writing, his views do not reflect the firm's value and culture. sometimes it's at the expense of clients. they were referred to as muppets by at least five of the superiors. the ceo called it unfortunate an individual opinion about goldman sachs is exemplified in a newspaper. they tell employees, we are far from perfect, but where the firm has seen problems, we have
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responded to it seriously and substantively. >> there's been a lot of debate in the newsroom, twitter obviously has a lot of people who are pro and con this guy. why don't we bring up some of the tweets that came in to cnbc. what it seems is people are either supporting him and saying good for you, for exposing this, and having the courage, and others are saying this guy will never get another job. and maybe it's sour grapes. l.a. technology says, i salute you, greg smith. you made a stand for morality and this took courage and strength. there was one criticizing him saying after this whiney greg smith won't be able to get a job in a 4-gr hot spot. >> it polarizes people. i don't think anyone goes on wall street to not make a lot of money. >> right. >> the second thing is, the culture on wall street has changed not only at goldman
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sachs, but at the banks in general. which some people can trace back to the repeal of glass spiegel. essentially when they did that, trading became a much bigger business. and the clients are comfortable with that. some of them are. they know that there's a chance that they could be taken, i suppose. >> when i was reading this this morning and tweeted it out as the new reality show, i quit goldman sachs, i think that -- >> ooh, that's good. >> i was thinking, you know, this also, you know, alleging that they're going out and taking advantage of their customers. this is supposedly the institutional level. you go back to the 1940s, the classic, where are the kucusto s customers. saying this for so many years. so you sort of -- you can sort of take it for what it is. for whatever -- any way you want
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to read it, it was a gutsy thing, and it was an interesting read. >> i feel like there's more to this story that's going to come out. there's going to be more stuff that comes out with regard to his career, maybe what happened. there's going to be, i feel, a few sling shots taken on both sides. >> it could be. to herb's point, goldman is a notoriously private firm. even their ex-employees tend not to say anything about the company. so to have something like this done in a public manner certainly creates, you know, a lot of chatter about it. >> but this time, for goldman, you know, you could have picked any other time, this is not the time to say this. >> their reputation has taken a number of knocks over the last couple of years. >> as for what's going on with the stock, let's take a look at goldman sachs as of today. there we go. currently down by 3.2% at $120.51. there was another tweet that came in from our friends, josh brown, aka reformed broker, who
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said, can i have greg smith's stapler? thanks so much, mary thompson. >> sure. >> herb? since you're here, why don't we do a double disaster du jour. >> we're just going to do one. a company came public as a chinese company, d.a.t.e. stock really been getting hit since its ipo. more specifically, off about 23% since announcing earnings just about a week ago. what i found interesting in the earnings release was where the company said we continue to see fragmentation in china's online dating market as new attempts to take advantage of all these market opportunities. that's not what you want to see, especially when you hope what is a growth company. and the company says they believe they'll be proven to be the winners over the long term. and a lot of chatter about acquisitions in china right now. and some people say this is a sitting duck to be acquired in the china acquisition world.
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>> what is it? i speak japanese, not chinese. >> today's dose of sun shine. up 13%, which is a new high today. the woman's retailer is up after forecasting a strong quarter. they raised their price target on this stock. it competes with big names like taylor loft, urban outfitters, and anthropology. coming up next, a screaming kid on a flight might sound like a nightmare to you. but to one mom it sounds like big money. we're going to explain that. but you've got to stick around. ♪
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this is the mary poppins edition of sign of the "times." a child was kicked off a jetblue flight after the 2-year-old threw a fit in the aisle. the pilot made the executive decision to ask them to get off the plane. they said it was a nightmare for pretty much everyone onboard. i'm a mom and i would say the same. the parents and other passengers as well. but one mother sees a big business opportunity. in the clouds. this is a california-based company that matches parents' in-flight nannies, they sit the kids with the nanny and pay about $10 to $30 an hour. sounds like a fantastic idea. as for the markets, the dow is currently on track for its best six-day win streak since july of 2010. currently sitting flat with the
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