tv Street Signs CNBC March 27, 2012 2:00pm-3:00pm EDT
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money flowed into lionsgate yesterday after "hunger games." today it rotated out. people used it as a trade. >> that'll do it for "power lunch." >> "street signs" begins right now. have a great afternoon. welcome to "street signs." i'm brian sullivan. could high oil prices be a good thing for america? they just might be. we're going to tell you why as part of our special investing in america. how about investing in veterans? hiring our heros. why more and more companies say it's good for the bottom line to hire our men and women in uniform. plus, all home builder are not built the same. we'll go inside the numbers on which ones are really making money on what they build and the race to 1,000, mandy. apple. priceline. google. which stock will reach that magic milestone first? we'll debate. >> indeed, we will. good morn ing. good afternoon, everybody around the world. stocks going for a third
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straight day of gains. the three major averages have just about matched the nice gains they had in february. we could almost wind up with two identical months. intraday highs. surprise, surprise, it is apple that's having the biggest influence on that of any stock in the 100. check it out. apple is responsible for one-third of the nasdaq 100's quarterly gain just all by itself. let's get straight down to the street. bob pisani joins us from there. bob, i know we've been focusing on the home builders. you've been focusing on the home builders. considering the home price data itself wasn't really that great, to what extent did the street breathe a sigh of relief when we saw the lennar numbers come out? >> orders up 33%. street's been pricing in 20% to 30% order growth in general. they beat the expectations. we can now say k.b. home on
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friday, they had terrible numbers, that was a little bit of an outliar. i was happeny with the market. moving sideways is good after the move up yesterday. energy stocks are falling apart. they've been falling apart for days now. s&p 500 for the month. here's energy stocks moving to the town sidownside. the problem largely has been in the natural gas area. all the stocks that are associated with any kind of gas play in terms of the drillers, in terms of some of the big exploration and production companies like northern oil and gas, bakers hughes in the big oil service group and drillers out there like transocean, all of them are to the week side. this group, this whole energy group, mandy, is now diverging from the rest of the s&p. it's about 12% of the s&p 500. this has been going on for days now. it's starting to affect the orr all retu overall returns. >> thank you very much, bob. it's been pretty smooth
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sailing so far this year. but are we headed for resistance? john kozar joining us for the technical side of things. he made a really spot on prediction last year calling for a bottom back in early august. let's hope you're correct this time, john. great to have you on the show. >> thank you. >> please tell me we haven't seen the best levels so far this year. >> this year i think we probably are going to see better levels. but i think it may be more of a later part of the year, perhaps q4 story. >> why is that? what are the charts telling you that makes you say that, john? >> the charts look almost the opposite to us as they did back in august where you're seeing really a very low vix, which means everybody's unafraid. you're seeing some frothy breath statistics. extremely bullish sentiment by retail trend followers who tend to be wrong at the turns. almost like an inverse of what
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we've seen before. if you think about it from october through this morning, low to high, the s&p is up 32%. that's a huge move. >> i like what you say. because you lay it out clearly in your notes, john. you're saying watch technology. you want to look for underperformance in the ndx, nasdaq, and other technology names if you want to know where the overall market is going. what do you see from technology that can give you a window into the future? >> basically, we like to follow tech because tech tends to lead the market up and down. it's the fast horse. when the market likes to buy stocks, they want to be in the stocks that are going to give them the best bang for their buck. that's typically tech. when the market slows down, the economy slows town, everybody's out of the pool on tech. they look for more safe places to go like maybe health care. back in december, technology was really washed out versus the market. we were looking to overweight that. now a couple of months later, it's now very overextended versus the market. so we're thinking as tech starts
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to peak out and underperform, that could lead to a correction sometime in the second quarter. >> we have to leave it there. thank you very much for joining us. >> thank you. here on "street signs" we believe the conventional wisdom isn't always so wise. we like to look at topics from both sides. take oil. most of the talk about higher oil prices centers around the idea that it is a bad thing for the economy. so we asked, can higher oil and gas prices actually be a good thing for america? we think it might be. here's why. higher fuel prices mean it is more expensive to import goods made elsewhere and may encourage companies to bring jobs back to america. one company doing just that, trimas. a michigan-based company that manufactures everything from plastic bottles to oil rig parts to car roof racks. here to tell us why they are reshoring, as it is known, is the company ceo dave wathan. a new face to cnbc. we love these stories. we love to hear companies moving
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manufacturing back. how big -- if you were to open up a factory in michigan versus china making widgits or plastic bottles, how big would the cost difference be? >> we've reached a point, part driven by fuel costs, more and more by the supply chain cost. i use indiana. we've got a large manufacturing plant in china that makes dispensers for pharmaceuticals and cosmetics. a similar product line in indiana that's a more automated plant. they've reached cost parity. we've all seen chinese inflation being high. wages rising 15% a year. supply chain costs, inventory change cost. the good news is we reached parity. >> sorry to jump on on mandy here, dave. we just talked about higher oil prices. how big of a factor would that be? cost parity is hard to believe. is our thesis correct, higher oil prices increase your logistics in shipping which means we bring closer to parity our manufacturing costs?
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>> clearly y, yes. if you put up a chart of container costs moving across the ocean, they look like double over the last couple of years. that's become a big part of it all. the parity comes from automated plants in the u.s. versus more manual operations in some low age countries. again, good news. the other battle is speed. how fast can you make a change? how fast can you deliver? nobody wants to carry inventory because it gets obsolete so fast. if you can get party on cost, meet prices, then the battle is speed. i'd always rather compete on speed than price. >> really interesting. dave, how much when you talk to people in your industry or even outside of your industry are you meeting other people who are doing similar decisions that you have done to reshore both speed and cost. >> i see it quite a bit. i belong to a group of ceos that are all manufacturing people like me. for a year we've all been watching with concern about the
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inflation we see. of course, we all got to think long term about where we need to be in a few years. that has caused a cause. it's not brand-new to us. we put up two new buildings in tulsa last year to expand our oil field equipment business. that's been great for us. that business was up, like, 40% last year. i mean, the only -- the issue for us in the u.s. is making sure we get qualified people. engineers, people that can program a cnc machine. but that's fixable. that's fixable. >> how is it fixable? that was actually going to be my next question. you're reshoring. in theory that creates jobs here at home. number one, how many people are you planning to hire over the next 12 months or so? and how fixable is it to get people with those skills? do you train them yourselves? >> you have to train yourself. you have to encourage -- it's more the technical schools and that sort of thing to make sure they're training people. wages help. of course, i'm a firm believer
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that the economy drives this kind of thing. people follow where the good paying jobs are. i think there's an awakening of that going on. it takes a while. but i'm obviously pretty encouraged by it. we can train people fairly quickly, too. >> let's hope. because that's been a theme of this show as well as mandy alluded to. dave wathen, a good news story. we love to hear it. hard to believe it. party. but we'll take it. another sign of life in this economy. morgan stanley boosting its u.s. auto sales estimates for the year from 14 million, which is already near the high end, to 14.8 million. morgan stanley also raising its outlook for 2013 on improving economy and credit flow. truecar.com also boosting its forecast for the current year by half a million vehicles. good news for dave. he does a lot of car parts. hope he can find the people. >> incredible how costs are going up in places like china. it's pushing out to places like vietnam and cambodia. interesting it's doing the full
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circle and coming back to the united states. >> a good news story. up next, hitting the high seas to see how america is getting onboard the movement to hire our heroes. two ceos set to tell us why it is so important to put america's veterans back to work. from our war heroes to the man who many say saved the economy. ben bernanke. does this magazine cover just go a little too far? and a little mega millions dreaming. tonight's jackpot is worth 363 million bucks with a cash pay out of $259 million. with that you could get 107 of the world's most expensive car. the bugatti supersport. what would you do with that kind of cash? tweet us. just to prove we're a global show, hello to my family back watching in australia. >> you could by new zealand with that money. >> i'll do that. do i get the sheep, too?
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outstanding day. i'll be there all day tomorrow. i cannot wait. >> it's going to be fantastic. >> it really will. why is the nbc family helping with this? the veteran unemployment rate is nearly double the civilian rate among the young. that is a problem that we here at nbc and the u.s. chamber of commerce are trying to fix. joining us are two guys helping in that fight. lawrence dahl and mike staridge. larry, i want to begin with you. you are a veteran yourself as well. talk to us about the need to hire veterans and what they bring to the table in the financial services community. >> i'm a disabled vietnam veteran. the veterans that we hire have already been proven that they can really operate under extreme pressure. they're team players. they're ladies and gentlemen of honor and integrity. and they're looking for a chance. these people have defended us after 9/11 with having been
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attacked. we're very fortunate to have these young people out there working hard for us. they are looking for, as i mentioned to you, a chance. they have done very well with us with our broker dealer drexel hamilton. they've done very well on wall treat. we started wall street war fighters, a 5015-c-3 to help train disabled veterans. that's working out fantastic. they're just doing fantastic. they don't have to all be college graduates. they can have a high school degree. they can work at night to get their college degree. we're very excited to have them. >> mike, why is it so hard for many of them after returning from service to find work? i understand you yourself, you were a marine. you left the military in '92. you found it difficult to find work. you're trying to help people find work. how can we turn things around? >> my company has been doing this for 20 years now. when i first joined the company
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i did find it difficult to find work. i had two interviews. i was a captain departing from the marine corps and it was tough. one of the reasons i joined the company i did, orion, was to help that. expand opportunities for veterans that are out there. i think it's a moral imperative for us to do that. but also it helps the company's bottom line. it really adds to their top line revenue as well as their probability. >> mike and larry, sit tight for one second. speaking of jobs, breaking news on jobs. let's go to washington and our own john harwood. >> reporter: the house of representatives in an overwhelming bipartisan vote has just passed the jobs act. this was a priority of republican leaders there that the president has signed on to. the senate's already passed it. this is a bill that makes it easier for small businesses to go public and to raise money. republicans argue this will be a major impact on job creation. democrats are more skeptical but they weren't willing to stand in the way of this. this shows, brian, that even in an election year, sometimes, on
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an issue big enough or small enough like this one, republicans and democrats can come together and get something done. this goes right to the president's desk and we know that he's going to sign it. >> great news. a day full of good news. john harwood, thank you very much. back to larry and mike. mike, i want to follow up what mandy asked you as well and talk about the kinds of jobs that really are attractive to employers and veterans. where are the good matches? i know you've got a great feel good story, kansas city southern. i'll give a shout out to them. great work. ceo came down. 25 job offers made on the spot. where should veterans be looking right now? >> there's three different types of veterans that are getting out that we provide services for. those are the officers which are the degreed candidates. their graeat and engineering, supervisory, consulting. you have the enlisted technicians. they're fantastic to fill the skilled labor shortages that are going on in commercial america today. and the last category requires the most help. they are the folks that are the
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nontechnical enlisted people. these are the people that are the ones that the public probably thinks of the most. the infantry men, marines and soldiers actually over there fighting these wars in iraq and afghanistan. that takes some effort. kansas city southern is a great example of that. because the coo is a former army west point officer. and he was able to figure out how to take those types of individuals, the ones that are hardest hit by the unemployment rates, and find positions for them in his company. >> that's a great story. what about you, larry? you're finding opportunities in the finance industry for some of these disabled veterans. obviously out there in the field they have to be trained to make split second decisions. to what extent do you feel that giving these opportunities to such people actually makes your firm more successful? >> well, they're willing to work hard. and they -- the most important thing is they have to have an honor and integrity. we start worrying about someone's finances or some company's finances, you have to
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be able to trust the people you're working with. so these people, they show day in and day out they're the first people in the office, last people to leave. as i say, interesting, i'm a former marine as well. you have two marines on here talking about how to help people out. the point that you bring up about the unemployment being twice the amount for veterans, that's a very serious thing for this country. because when i went to vietnam, i was drafted in 1968. these people aren't being drafted. they're volunteering. we don't take care of these vet rarens coming back, they're going to stop volunteering. >> larry, you're being very diplomatic. it's not unfortunate. it's a national disgrace. >> i agree with you, yeah. i'm paid to be diplomatic. >> i'm not. >> it's a very important point for our country. if we stop taking care of these, the mothers and fathers are going to stop letting the children go ahead and volunteer to serve our country. it's so important. everybody just give them a chance. whatever it may be. whether it's enlisted or senior enlisted or officer corps, they're all together. they're all good people.
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they're all on the same team to defend our country. >> fantastic work by both of you. great initiatives. let's hope there are many others who follow your example. >> great. >> those guys are doing great work. listen, my dad got out of the navy. he was offered a job from a defense contractor. ten year navy enlisted man. my dad owes companies like that a gratitude as well. be sure to catch a special edition of "street signs" tomorrow. this is really going to be something, folks. hiring our heroes. cnbc and nbc news teaming up with the chamber of commerce to get our veterans back to work. >> we're going to be broadcasting live or rather brian is going to be broadcasting live from the "u.s.s. intrepid." you've got great interviews. so many other great things lined up. >> it's going to be a great day, great event. the you can't come out -- if you're a veteran, come out with your resume. if you can't come out, obviously tune in. there's going to be some terrific surprises. we're going to have a really, really good time and a fanistic
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cause. >> pray for good weather. just ahead on "street signs k signs," the race to 1,000. and we're hitting the streets of havana where everything old is new again. "street signs" will be back in a studebaker right after this. a great roar was heard and things changed. children adjusted dreams. victories became habitual. thumbs grew new calluses. hollywood hopped on the bandwagon. air traveled in style. and for the first time ever, journalists ran out of adjectives. and so concludes chapter 1 of the legendary audi r8. ♪
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we're we're showing you the nikkei 225. why we're asking? here's the reason. last night up by 2.4%. folks, this is now a post earthquake and tsunami high. 52-week high. it is still, of course, very long ways south of the record closing high, 38,915. brian, what year was that? >> how could i forget? the year i graduated from high school. or at least i say i did. 1989. >> 1989. december 29th, 1989. >> "knight ryder" was the hot show. japanese were going to buy central park. >> already buying the gold coast of australia. >> mr. sparkle factory. pope benedict xvi is now in havana for the second day of his historic visit to cuba. he's expected to celebrate mass and possibly meet with fidel
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the island nation looks like it was frozen in time. the cars are vintage. they're beautiful, though. our very own michelle caruso-cabrera is in havana with a closer look at those classic cars. have you had a chance to drive one, michelle? >> reporter: i rode in one, mandy. so much fun. full disclosure. we know this story is a cliche. everybody does this story every time they come to cuba. there's a reason for that. because it's just incredible. if you're not aware, because of the u.s. embargo against cuba, the only american cars you're going to see here are pre-1960. because the economy has been so bad for so long, many of them are still on the road. it makes for a surreal landscape. everywhere you go in havana, you see beautiful old cars from the 1950s. even some from the '40s. they've become the iconic symbol of cuba. this is an olds mobile from
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1957. maintaining these cars is a historic achievement. inside, different pieces from modern cars. [ speaking in foreign language ] whatever you can find, you just adapt. these cars may look really pretty. they actually serve a purpose. cubans still use them to commute. a group of individuals have waited to see if there's enough going to the same neighborhood. that way they can all get in together and share the ride. most are owned by taxi drivers who know that tourists and, yes, journalists, just can't resist. you also see soviet cars from the '80s and the '90s. but they're not nearly as pretty, as you can imagine. brian, mandy? >> it is amazing. to see those cars. i want to put you on the spot, michelle.
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where do they get the parts? they break down, right? not exactly the most reliable era. are people making these parts themselves? >> reporter: you know, we asked the guy with the '48 plymouth where he got the 2000 ford engine. he said it was german made. he bought it used from the state for the equivalent of $2,500. they get them from all over the place. i'm told, i haven't actually seen them, but there's some hyundais on the road as well which they say are much easier to get parts for. in spanish -- in cuban, i should say, there's a saying. you've always got to revolve something. they manage to resolve it. >> very resourceful people, i'm sure. had to become resourceful. michelle, thank you so much. >> yes. >> it's been amazing there in cuba. can't wait to see more from initial. on deck, companies who build decks. and the houses that go around them. we're going to show you which homebuilder has the highest profit margin in the business. and you might be surprised. >> yeah. here's another mega millions
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dream. how does 51 million white castle burgers sound? whoa. anyway, you can afford that feast if you win tonight. let us know how you would spend that big mound of cash. you can tweet us. a lot of you have already. @streetsignscnbc. [ engine turns over, tires squeal ] introducing the lexus enform app suite -- available now on the all-new 2013 lexus gs. there's no going back. see your lexus dealer.
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it's time for our street talk. our like at big stories on wall street with about 90 minutes left in the trading day. let's get straight to it. market momentum is swinging back and forthright now. currently in the green. could be different in an hour's time. after yesterday's best close for the s&p 500 since may 2008. nasdaq up today after its best finish since november 2000. we've been talking a lot recently about the oil shock this week. some traders are expecting $200 a barrel of crude. as the final trades come in, we're kind of flat on the day. sharon epperson is live at the nymex and she's got the close. >> hey, mandy.
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i'm standing in the natural gas options pit. options do expire today. we've seen a lot of action in the downside puts. keep in mind as well that we broke through a very key level here. a fresh decade low hit today, below $2.20. 2.176 was the low of the day. we're looking, many traders here, for the $1 handle to come sooner rather than later. some saying we may see that 1.85, 1.95 range in the next month or so. >> wow, ouch. talking of ouch, gas prices keep soaring at the pump. the weather is beautiful. great for a trooif. but it really hurts to fill up at the pump. are they peaking, though? our larry kudlow stopped by the "street signs" set and he says yes. herb is also joining the discussion. great to see you both. larry, let me tart with you. why do you feel that gas prices may not go much higher from here? >> one reason i feel that way is everybody tells me every minute of every day that gas prices are going a whole lot higher. so i'm suspicious of that
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consensus. but the main point i'm making is, adjusting for the refinery shutdowns, i get that. adjusting for whatever emergencies are going to happen in iran, and nobody can control that. what we're seeing is crude oil is flattening out. all right? both brent crude and texas crude. and, therefore, over time, i have to wonder whether a flatter crude isn't going to lead to flatter gasoline prices. that's the essence of my point. >> do you believe the refinery premium, maybe all this talk of summer, et cetera, is already built in? >> it might be. >> i've heard this talk of summer. it's a season, apparently, where people drive a lot. >> speculators or trader or investors might be pricing that into their calculations. i'm just saying if it's discounted -- i'm not saying gasoline is going to lapse. i'm just saying i'm a little suspicious of this consensus as long as crude prices are flat. if you tell me the straight of hormuz is going to close down, that's a different scenario.
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i'm putting that aside. >> we look quickly. we're fwoigoing to get to ben bernanke in a second. oil. higher gas prices kill the economy. yes, they impact consumer spending. however, this year we've got a 2% payroll tax cut. which mitigates that. is it unfair to compare higher gas prices now to three or four years ago? >> you know, i think that the payroll tax -- >> why am i yelling? >> i don't know why you're yelling. i think the payroll tax cut might mitigate a little bit, but it's temporary. people save that. they don't spend it. i don't think that's worth a hoot. >> i would never yell at larry because, honestly, like, i don't know who's got the loudest voice out of the two of you. it wouldn't be pretty. >> i wasn't yelling at larry. >> what makes this different from past history is the plunge in natural gas prices. which in turn is lowering consumer bills at home. that doesn't cover everything. >> it helps. >> it covers a lot. i think you can probably go as much as $4.50 on gasoline. there's no real evidence yet, some may disagree with this, i
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don't think there's any real evidence that gasoline price is hurting the economy. not yet. >> before we let you fwo go, the atlantic monthly. have you seen their headline? seen their magazine? i've got it at home. >> i saw it. >> the cover. look at that. the hero. ben bernanke. talks about how basically bernanke says i'm going to get killed no matter what i do so i'm going to do what i want. is he a hero? >> like the committee to save the world a few years ago. look what happened to them. green span and summers. i think bernanke did real good during the crisis in 2008-2009. in other words, qe-1, good. excellent. high marks. a plus. qe-2 in 2010-2011, bad. he sunk the dollar with excess money. that drove up energy and commodity prices. what he's doing now, it's a little too fine tuney for me. operation twist. but i'm okay with it as long as the dollar stays stable. the minute the dollar -- the
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minute the dollar goes cracking down, then my own forecast of oil and gasoline is going to be wrong because they're both going to explode. >> it's not my call. larry is here and i'm here to discuss it with larry. the whole issue we look at is the numbers. the numbers keep telling us he's wrong. the numbers keep telling us we've got this bifurcation. we've got -- >> consumer confidence is rising even in the face of higher gas prices. has anybody noticed that? >> you have. >> anybody else? >> yes. i think a few people may have. >> it may be flattening out. >> the question is, do we believe that based on his history of the depression that just holding the course, that we don't have sustained increases in jobs, that none of this is sustained, we have no proof he's got to stay where he is. do we trust it? >> what choice do we have? i'm willing to acknowledge the risks. you've got big tax increase risks next year. you have regulatory risks. this is stopping business from really opening up the throttle.
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so that's not bernanke's jurisdiction. okay? you've got a tax cliff that we're going to fall off of. all's i'm saying is if he makes a mistake now with qe-3 which would be the printing of more money, expansion ot balance sheet, you're going to see the greenback sink, oil and commodity prices rise. so far he hasn't made that mistake. >> that's not going to happen. >> i think he gets it that he was mistaken when he did qe-2. he'll never admit that. he also was mistaken, i'm sorry, as greenspan's co-pilot, the fed was way too easy and helped create the housing and commodity bubble of the 2000s. >> larry? >> he's got to take responsibility for that. but after the crash, i give him high marks. >> real quick. who have you got on the show tonight? >> we have governor john kasich. we have budget meister paul rhee y yan. and the epa. because the epa is destroys the coal business.
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isn't that a great idea in an economy struggling to recover? i feel obliged to discuss that in full. hint, hint. i think the epa should be banned. not mike bloomberg's french fries and other things. epa should be banned. >> ask the epa where we're going to get the 30% more power production if we need to avoid blackouts and brownouts in the next 20 years. >> destroy the coal business with one fell swoop on the keyboard. it's insanity. >> 7:00 p.m. eastern. >> don't worry. solyndra is coming. why herb is more worked up than sam kinnison. the ceo of jungle juice on expanding into schools. soda is on the way out. are high calorie juices any better? we'll ask him. i'm heading home. vaaa vrooom! need some help, ma'am? grrrrrrr! [ in high voice ] oh thank you. these things are heavy. zzzzzzzz!
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i'm bill griffin. coming up on "closing bell," a trio of exclusive interviews. first we'll talk a lot about the fed with pimco founder bill gross. he'll explain how investors can generate big returns in the low interest rate environment while keeping risk low. here's a question. why did billionaire investor carl icahn sell his stake in
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lionsgate months before the release of "hunger games." does he regret that? ceo of toll brothers also joins us. gives us his outlook on when we could see a recovery in the housing market. we'll get to all that. see you at the top of the hour from here at the new york stock exchange. >> thank you very much. the dark cloud keeps following apollo. you've been following this story in particular. >> this one's kind of interesting. today some analysts came out after the company's call yesterday. they actually sliced their targets on the company's stock. i thought, my goodness. just a month ago the company told you that their earnings -- excuse me. their new enrollment starts were going to be lower. but here's what happened. the company had its earnings call. it was not what you would call a good earnings call. they were out there. they were blaming everything on this enrollment fall. including the economy. in fact, they said the economy, whether it's good or bad, actually can have an impact. but what was really interesting is they were talking about not for profit schools and their
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online programs possibly having an impact. my associate actually went out and did research on these other not for profit schools that have competing programs. she found they were saying we're not competing with them. which we find interesting. i think this is going to be one, the hard reset. we've talked about it. it continues in this space. >> bottom line, you remain negative on the for profit education stocks. >> the best people i talk to on this who have been negative remain negative. they interestingly enough are negative on apollo. >> don't see anything in the sector for a turnaround? >> not any time soon. >> a spicy dose of sunshine today. mccormick and company up 2.5% on strong earnings. the spice maker beat estimates and revenues. mccormick says profit is being spiced up by higher demand from its restaurant customers. mkc up nearly 8% year to date. >> ouch. all right. jamba juice's cup has been overflowing this year. i'll trade you one pun for another, mandy.
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the stock up 61% year to date. today is national hiring day for the company saying they're trying to bring in as many as 2,500 new workers. jamba juice ceo james white joining us now. they're making a big push to get into schools. not a lot of time. i'm going to get into it. how are you going to hire 2,100 people today? are you hiring veterans, by the way? >> we're looking forward to hiring up to 2,500 people across the 80 sites that we've converted in all of our key markets. about 20 cities. >> are these full-time workers or are they just going to be some temporary summer jobs, james? >> we'll add temporary summer jobs. but we'll also have a number of these people that will join us on a more permanent basis. this is all being driven by really robust sales. we finished our last quarter almost up 8%. >> i'd like to know what your -- what your possibilities are in terms of getting into schools around america in a significant way. obviously, things like coca-cola and pepsi are on the way out in some schools.
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but if you look at some of the juices and some of the smoothies that you make, i know the ingredients are supposedly healthy. there's still a lot of sugar in them as well. >> we're making a major push with our all fruit and fruit and vegetable smoothies into schools. we've launched a new system. our jambago system finding its way into schools across america. we'll have about 400 or 500 school locations with jamba present on the menu by the end of this year. >> don't you fear the school lunch, you know, folks that are going after everybody for putting anything with a slight bit of sugar in the schools, aren't they going to come right after you? are you ready for the fight over juice in the schools? >> we're actually excited because we think we're actually one of the solutions to the current fight. you know, we applaud the change in the school nutritionals. our all fruit smooth ies and fruit and vegetable smoothies match up nicely with school nutritional guidelines. >> recently we were reporting on
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the fact that starbucks is opening its evolution fresh juice store. and is trying to make a push into this area as well. do you see them as decent competition to you? >> i mean, we take seriously all of our competitors. but jamba has a 22-year head start in doing fresh smoothies and juices. we have 700 stores today that do a combination of fresh juices and juice blends. we welcome the competition. we're very confident in our capabilities in this space. >> james, thank you very much for joining us on "street signs." >> thanks for having us. >> the man is not afraid of starbucks. going right at your company, herb. going right at starbucks. watch him. >> year to date jamba juice up 62%. >> boom. coming up next, a by the numbers look at why homebuilders are not created equal. we have done some homework for you. we'll show you the homebuilders with the highest profit margins.
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coffee coffee futures really jumping. nearly 5% to the upside after sliding 17% so far this year. despite efforts to keep this afloat. six cups day can't be wrong, brian. >> only six. you've got a way to go. we've got a battle of the homeowners going on right now. let's talk about these companies and how they stack up by average sales price and home margin because not every home builder is the same. there's a lot of questions out there. why did kb stink and collapse. they say why don't you buy a basket of the home builders. not the case. average sale price and the profit margin on what they sell. first off, lowest average price point is not kb home. it is d.r. hornton. the average home sells for $212,000. kb, slightly more, 224 and change. lennar at $244,259.
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you mull up a little with pulte. but the big one, look at that, toll brothers. it is actually more than double the next highest home builder in average sales price. but what you care about as an investor is not that, is how much money they're making on each home they sell. and we dug in and thanks to bob at a.c. data as well, the gross margin os what they're making. actually we're going to start from the back. the lowest gross margin, pulte holmes, 13.1%. the fourth worst goes to kb home, 15.4%. d.r. horton, 15.1%. toll brothers, 17.4%. the highest profit margin in the industry, goes to lennar. they're the only one of the big
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public companies that make 21% on what they sell. mandy. >> thanks, brian. that's really interesting especially when we saw the lennar numbers this morning. steve weiss is with us here on set. we're trying to figure out which stocks are going to be the share. steve, which one do you think is going to get there first? >> i'm going to go with priceline. not because i think it's the best investment but it's the closest, number one. it's not overvalued. 36 times thisser yoo, -- this year, 19 times next year. say i that because they're closest to the target. however, if i talk fundamentals, who deserves to be there, it's apple. so it's tied between the two. >> why's that? >> it's the cheapest stock. right now on a forward earnings basis, only 11, 12 times. for the type of growth they're seeing, that's almost
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unprecedented. >> do you care? >> i care. >> we care about the numbers in the media, round numbers. do you care as an investor about these ronald numbers? >> i could care less about it all. i care about the found dags and the fundamentals. if it gets to the point where it's too expensive to buy, they split it. i know it should be the same value because all you're doing is getting half for the half. however, you know that's not how investor psychology work, stephen. >> no. you're exactly right. i can't tell you how many times people say i can't afford it, you know, it's $600, it's $500. it's really the dollars that you're putting up and the return of the dollars, not the move in the stock price. >> there are people out there who would like to see the stocks split with apple. do you think it's warranted? >> i don't think that's the company that plays. you have companies -- the stock's basically a little
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better than it was. they did the reverse 10rks-1. so i don't think apple looks at that. they don't look eight as their responsibility to look at it more affordable when in actuality it's not. >> just real quick, the home builders, we were talking about them a second ago. i understand when you want to play improved housing, don't go to home builders. go to the bank. >> that's right. there's so much inventory, the banks have gotten religious about it. they're peeling out of their inventory slowly, waiting for prices to rise and then putting more on the market. that's the perfect way to do it. home builders are priced for perfection and they're hoping for recovery. >> i went to these five websites. number of them are in north dakota, montana, and south dakota. given the bach and shale boom there, i want to see one of these companies with a press release say they're going go
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big. none of them are in that area. >> then they have to go to the double-wide business. i don't know if they can sell multihomes there. >> multifamilies, the man camps? >> that's true, that's true. >> thanks so much steve. >> always a pleasure. up next, if you win the mega millions tonight, suggestions boast fun and practical on what to buy. >> the jackpot currently stands at $363 million. [ male announcer ] if you believe the mayan calendar, on december 21st, polar shifts will reverse the earth's gravitational pull and hurtle us all into space, which would render retirement planning unnecessary. but say the sun rises on december 22nd and you still need to retire,
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i saw a billboard, estimated lottery jackpot, $55 million. i didn't know that was estimated. see, that would suck if they said, oh, with were off by two zeros. we estimate that you are angry. >> we estimate that you will not be angry if you win tonight's mega million jackpot. it's now worth an estimated $363 milli million. it's run in 43 states. if someone were to win and take a lump sum, the cash payoff would be $259 million. what exactly could you afford with that payday? >> yeah, you know, we have to start with shares of apple since everyone would like them. 4 421, 600 shares of apple you could buy with that lump sum. you could also buy the l.a.
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kings. they're valued at $232 million. you could buy every ad on twitter. that means that twitter's advertising revenue -- what are the ads? >> the promoted tweets. they're going to equal $259,000. if you're really hungry you could book every seat at masa, every seat for 56 years or catch a ball game at yankee stadium. you could buy every suite and seat for 75 games this season. and by the way, i wanted to ask you, how many kangaroos you could buy with that. >> how many kangaroos could you buy with that? >> $363 million. >> trick question. you can't buy any. they're protected. >> i should have known that. ouch. let's get to some of the
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