tv Street Signs CNBC June 29, 2012 2:00pm-3:00pm EDT
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a couple of days later not to be. of course, next friday, the big jobs report. there you see the industrials up 234 points. that will do it for "power lunch." >> "street signs" begins right now. have a great weekend. we'll see you monday. welcome to "street signs." i'm brian sullivan. what a way to end the first half of the year. stocks are soaring as europe makes a deal. maybe we'll call it the bailout bull market but can it last? we'll ask. studs and duds. it's not a dating game. we dug in to the data and serving up the best and worst performing stocks of the year and asking, should you buy some of the dogs? plus, will europe's woes slam american auto motive jobs? an alien invasion story you cannot afford to miss, mandy. >> i'll stick around.
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it's a bullish end to a bullish month and doesn't happen often in june. the best june in the dow and the s&p since 1999. yeah, counted all the way back to there. it's the first time they have all been higher in june. the nasdaq mind you with the biggest percentage gain today is having the best one-day gains since december of last year. let's get straight to the trading floors. it's an all-girl cast here. first of all, courtney, when you see the reaction of the markets today and straight out of the gates this morning, you can see how low the expectations were to get a concrete solution out of the eu. >> so true. the expectations were really, really low and a positive surprise and sort of lifting all the equities across the board and jackie will talk about the nasdaq composite doing the best of the bunch but the dow on the track for the biggest gain in
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june in 13 years and all major sectors are higher and groups are concerned. look at the hgx. housing index with a fresh high today. one of the best performing for the year, in fact. all three housing reports coming in better than expected and plus pretty good earnings reports and both also net earnings up for lennar on wednesday. kb home today. the component up for the year. standard pacific up about 95% year to date and industrials are leading the major s&p sectors. again risk on. parker hannifin up. the group ending in two hours from now and traders say because next week we had the holiday smack dab in the middle of the week it could be an interesting close today. perhaps more active because a number of traders won't be here to be executing the trades next week. >> jackie, over to you. >> all right. thanks, mandy.
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as courtney said, the best day of the year for the nasdaq. strength across the board in tech names. intel, also dell and hp. software having a great day, as well. microsoft, or adobe doing quite well. tibco up 26%, as a matter of fact. double-digit revenue gains and strength in the margins and also taking a look at some of the telco stocks, as well. sector touching the highest intraday. last but not least, i can't ignore it today. got to talk about rim. a disastrous quarter last night. down now nearly 19%. >> thank you so much jackie and courtney. why don't we dig in more on the rally? joining us on phone, a cnbc contributor and eddie ramos at
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madison square investors. alison, if we're rallying on borrowed money, right, the bailout bull market, how long can it last or are we rallying on something more fundamental? >> my sense is we're rallying on people feel relieved that they're going to try to bail out the banks. my view is there's other scares in the summer to cause a pullback and does seem like a significant step in the right direction and almost reminds me of t.a.r.p. and did start helping us in a very constructive way come out of the -- >> do you believe then that this remedy, this bailout, whatever you want to call it, euro t.a.r.p., will help u.s. companies grow did earnings and should be the driver of any stock market? highlight should. >> my sense is that there's been a lot of uncertainty. some which isn't going to go away is the collection's coming up this fall and probably some pretty ugly campaigning this summer and my sense is this seems as if it's one of the more
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constructive and meaningful steps that the eu taken and might make corporations feel more comfortable that things in europe to stabilize and companies with this uncertainty slow to reinvest and rehire and some going away i think you'll see corporations having more confidence and starting to invest in their best businesses and investing in groups more. >> a lot of things need to work out here and seems to signal a change in sentiment of germany and the ones that are holding the purse strings, as well. eddie, are you riding this rally? do you believe in this? >> well, look. i think we have a market that's desperate for any kind of good news. over the course of 24 hours, some uncertainty that's been taken away from the marketplace with regard to the short term measures taking place with the european financial crisis and then also let's not underestimate the impact of the supreme court decision yesterday for at least corporate ceos.
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they have certainty with the way to plan their company's going forward and hopefully we'll see this in the way of higher r&d spending and cap x. >> as an investor you wake up today saying, good. we have clout. might not be the outcome you want sitting on the aisle but at least the uncertainty is removed. eu, some uncertainty removed. i look at the portfolio. does it change anything for the second half? >> well, i think really the thing to be looking at is weakness in the emerging markets. you know, i specifically take a look at china. we just went there recently. i have to tell you that though there are a lot of western investors predicted an economic malaise to take place in china, the people themselves are not ready for that slowdown. with an economy that right now is expected to bottom out around 7.5% and down to 4%, 3% growth, that's going to be really a worse-case scenario in my opinion with china and then goes the rest of the world economy.
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>> yeah. i think chinese companies hoarding u.s. dollars right now tells the story. sorry, brian. >> no worries. where's the best place to invest in the u.s. right now? mattresses, dirt, you name it. >> i think stocks is one of the most attractive asset classes and looking for quality companies across various industries and i think that technology, industrial and some of the variable run consumers are places to invest in. as you know my background is financial stocks and still hesitant to trade in that area. i think still so much politics around that and more challenging environment for financials but stocks are very attractively valued. and while profit growth might slow a bit, it's constructive and valuations are very attractive. >> would you invest in europe on the back of this? has the risk/reward changed enough? >> you know, i don't think so. we need to see what the economic and fiscal policies are going to be because as you discovered
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some of these really draconian cutbacks have resulted in very slow economic growth so we need to see some stimulus and pullbacks and responsible to give me confidence that the economies and therefore opportunities for growth and improving employment are sustainable. >> alison, eddie, thank you so much for joining us on this friday edition of "street signs." all right. on deck. studs and duds. we're stripping down the best and worst stocks and the first half of the year. we'll lay it all out for you, america. and then head back to what was the fastest growing county in america in the housing boom. wait until you see how they're clawing their way back. you have to stick around to find out. lway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create jobs.
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welcome welcome back. a really big day for stocks. one standout here, though. hil hillshire brands. it is the new name and stock for sara lee's meat business. who knew? all kinds of sausage. we all love sausage, brian. >> that's right. if you find yourself with a cocktail weanny, here's more exclusive content of your friends at "street signs" and cocktail party trivia doing work for you so you don't have to and this is "studs & duds." right? best and worst of the first half of the year. nice. first up, the studs. these are the best performing
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stocks out of the s&p 500 small cap 400 and 600. number one stud so far, hard to believe, sears holdsings. tripadviser up 80% this year. expedia up 67%. we needed time to make the graphics at 12:30. mid cap 400. more than doubled this year. mdc holdings and aol is a stud this year. and the small cap names, there were a few that did better or worse and didn't want to bring them out so they have certain market cap requirements and small cap 600, 3 d systems and head waerts and you can't have studs -- without duds. these are the names that have stunk up the joint this year. and the s&p 500, coal's been
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whacked. 55%. and electronic arts, right, video game seales dudley. the three worst performers in the mid cap 400 and the small cap duds, bright point, basic energy services and skywest. so those are, mandy, the studs and the duds. >> you're so unfair. making herb cry. probably home at the settee thinking i'm wish i was there. let's talk about a dud. first solar. could it go from dud to stud? let's bring in gordon johnson on the line of a cnbc news line and talked to us many times about this particular stock and you are not bullish since last time we talked to you, gordon. you have it as a sell and 40% lower than where it is right now. would you really sell it now and
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cut your losses instead of waiting to see if it turns around? >> yeah. unfortunately, we're still bearish on the stock. we were just recently in munich, germany, and did calls with the customers and here's the unfortunate set of circumstances. the competitive technology ro h roughly selling 60 cents a watt and no benefit of the modules. everyone we spoke to in germany, the world's largest solar market said there were no projects going on so we're still very bearish. we think the company's doing okay. from its projects but we think there's significant downside looking ahead. >> there seems to be a huge disconnect between what the company first solar saying about the customers and supplying the customers and customers are saying. basically, has it been misleading investors? has it been lying? >> we think so.
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one thing to make sure your listeners understand is from an income statement perspective we think first solar will be fine. if you look at others, their eps decline is down 190%. first solar's eps up 221%. they have u.s. projects which they're pulling in revenue to the current quarter and basically percentage of completion to make the income statement look fine and the income statement is fine but the problem is that the balance sheet's very bad having a huge increase in receivables. we think this quarter closing and starting to recognize revenue, the income statement is fine but basically revenues they're not collecting cash on and the balance sheet is horrendous and a major concern. >> i don't -- i mean, really hearing what you're saying, gordon, first solar saying they have the big german projects
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going on. you went to germany, talked to the people supposedly selling to and those people were saying, no. we're not doing these projects. >> we were shocked. >> that's not a disconnect. >> yeah. we were in munich when this happened and these are customers, if you go back to the 2009 and 2010, they specifically mention the top two or five customers. both of the guys told us they're not buying from first solar panel and zero projects and shipping to the u.s. and claiming that that's german business and i think that's misleading. >> if it's true, it's serious. thank you very much for highlighting it to us. >> thank you. now one of the studs. sears holdings. i can't believe we're using sears and stud in the same sentence. it's been saoaring this year. is your opportunity to buy the stock over? paul, too late to buy sears
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holdings? >> good afternoon. yeah. like the first solar analyst, i'm a bit bearish at $58, $59. right now, sears is -- i'm not as bearish as everybody else, perhaps. the fundamental business is challenged. they're good at. >> licenses, tools, hard goods. they're still tough right now. there hasn't been a fundamental turnaround and the appliance unit sales is down affecting the traffic so, you know, the company's not going out of business but i can't see a dramatic turnaround to drive the stock higher from here. >> why as sears holdings shares soared this year? because of balance sheet changes? buying back stock. i know it's a heavily shorted name. that would last a couple of weeks. six months of just huge gains. >> yeah. well, the float is very thin right now and the chairman is usually buying shares, usually
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at a time when everybody else is getting squeezed so he's quite adept at doing that. the other thing that's driving this stock is the hope or thought that they're going to be additional asset sales. while they haven't named specific things besides the recent -- past quarter saying selling a stake in sears canada, there's a possibility to sell a land's end. lam pert said it's not really for sale and other reports it is. they've been able to surprise people with asset sales like the real estate sale over the winter. >> what would you like to see them sell, paul? >> if you're selling the thing that is are profitable, you're selling the crown jewels then what's left over you have to make some profits out of the core business so the thing that would get me bullish is to turn around the core business. i don't think they can do that without a traffic increase from
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the appliance and tools business. that's housing related. >> thank you for joining us today, paul. congress passing a bill that deals with the issues of transportation projects and student loans. we have john harwood all over that from washington. john? >> reporter: by a vote of 17-19, the senate joined the house in passing a bipartisan compromise that extends $100 billion in federal transportation programs, also prevents the interest rate on federal student loans from doubling to 67.8% in 3.4%. this is good news for a couplew not see an absence of funding and students not seeing the loans go up this weekend and also definitive proof, brian and mandy, that this highly polarized congress is capable of doing something. not a lot but something. >> something's better than nothing. >> how much good news could we possibly get on one friday?
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>> this is another case exactly like the eu summit f. the expectations are low enough and expect nothing then even something is good impact. >> sounds like the high school dates. before the break, session highs. only one name by itself in the red. can we throw up first solar, please? you heard gordon johnson basically saying business first solar says it's winning or doing in germany, he found no evidence of it after talking to customers. now barely up. staying on that story, as well. absolutely. just ahead on the show, a street talk trifecta. guns, sneakers and booze. >> also sounds like my high school dates. happy birthday iphone five years later. europe's auto market in trouble. all signs pointing to a slowdown but will that hurt jobs here in america?
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more than 25% of the work force will be 55 and over by 2020. it's no surprise many searching for their encore careers. according to the aarp, these are the fastest growing jobs for those who are 50 and over. so, what is number one? the answer when we return. i have three daughters and my son, and then i have eleven grandkids. right when you see them, they're yours, it's like, ah, it's part of me. it's me again. now that i'm retiring they all have plans for me. i'm excited. forty-five states have joined together...
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retirement.cnbc.com. it's 102 degrees in washington, d.c. it's got a heat index of 109. that breaks the district's old daily record of 101 set 138 years ago. in other words, it's hot. >> it's really hot. >> it is like hot. >> it's hot. okay. >> easy. >> talking of hot, virginia was the boom town in the height of the housing market and coming back to life and suddenly there is demand but no supply. kind of situation we have been gagging for for a long time. diana olick is there 25 miles and outside of the d.c. beltway and i'm sure it's hot out there, as well. that is interesting story. >> reporter: yeah. that's right, mandy. the reason i'm out here by the pool is not because it's 102 degrees which is what my car thermometer said but just to show you how weak consumer confidence was.
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the developer shows potential buyers how serious this development is and that it is here to stay. this in loudon county, the fastest growing in the united states at the height of the boom. highest median income. it's got aol, dulles international airport and crashed like everyone else. now it's bottomed and the big builders are getting back in. here at the willows spread development, the developer is working with private builders. he's planning 2,100 single family detached homes. just to put it in perspective, at the peak of the housing boom in '05, 5,600 new homes sold in the county. at the bottom, 1,700 homes sold. last year, 3,300. demand is coming back. sales up 26% a year over year. prices up 3%. his price point is a little lower than it might have been in
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the boom. that's because he is looking for the all-important move-up buyer. >> we have already opened a pool here which normally wouldn't happen until 300 or 400 units in place but we felt like the community or the buying public somewhat skeptical of the development community and been a very, very different recovery and uneven and i believe at this point for the county anyway i think we're well out of the recovery and in to the growth. >> reporter: now, he opened this offices in december of 2012. there are 12 home that is are built and bought. that is folks living there. 12 homes. they get the entire pool. 55 currently under construction. the infrastructure is here. commercial area with the strip mall down the road and a farm which is really interesting because you think about this area as golf courses but they have a cooperative farm if you live here you can join and get produce delivered right here to the pool once a week. so again, it's all the amenities that are bringing these folks back in and one other thing to
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note. he told us that they're seeing multi generational living. more than one generation moving in to the homes and interest there. we can say we're coming out of the woods but a different type of housing market. lots more of this on the blog. mandy? >> you raise a point and apol y apologies for mispronouncing the county here. it's like the -- just the cusp of the renaissance of the housing market and feels fragile right now. >> reporter: well, there is a lot of risk, of course, given that there's uncertainty surrounding the european area, the debt crisis, everything going on in the economy. not as good of jobs recovery the see. but again talking about virginia, and you see the median income here so high and demand, we spoke to a realtor inside one of the models and saying that they have seen a lot of traffic through the homes. when you are coming off the bottom line this, there's risk
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but they feel that if anywhere they start building, this is going to be it. >> route 7 is congested, clogged. route 50 is congested and clogged. you know i'm from frederick county, two over. completely developed in a stupid way. and it's a nightmare for traffic. and that's just one man's opinion. >> reporter: you got -- well, you got public transit getting somewhere out here. >> where? >> reporter: you have to take the good with the bad. >> may be one man's opinion but saying it loud enough -- >> the high school beat us in football every year i played at my high school. >> glad you don't hold a grudge. >> only 25 years ago. "street talk" ahead. hundr >> the clock is ticking until to a very, very big ban takes effect in california. jane wells will us bid farewell
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they had two upgrades inside of three days and one to an outperform today. up 15.20%. it's an online marketing company. >> thank you very much for that. let's look at stocks out there. beer is first up on the menu. friday, 5:00 somewhere. all the time in australia. constellation brands, absolutely going through the roof. >> going through the roof. earnings missed. why is it up? the market love it is fact to buy the remaining 50% in the joint stake for $1.85 billion of anheuser busch. to a buy from a hold. up five bucks. >> ongoing consolidation. nike is having a problem today getting it done. point the finger at europe. >> on a day like this, down 8.5%. >> it's a rare disappointment. >> listen. they missed expectation. earnings fell 7.6%. the company saying two things.
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you mentioned europe. pressured by an uncertain global economy. commodities all over the place. having trouble managing that. the move wiped out the gains of basically the entire year. ubs cutting the price target from 125 although keeping the buy rating on the stock. >> before we noomove on, we are session highs. very low volume. the nasdaq having the best day this year and the highs of the day. 244 to the upside. high end retailer saks is actually kind of doing well. >> yeah. it is. up on jp morgan comments. they went in to saks and met with management believing high end remains healthy. they told me to thank you. send you a thank you personally. top lines solid. they see 25% annual earnings per share growth through 2015. that stock up about 6% for the
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year. >> they can because i spend enough money there. smith & wesson flexing the second amendment rights. >> it is a maker of guns. >> i know that. in texas do they have smith mp wesson shops. >> they might. >> i don't know. >> i tell you what. guns keep -- welcome to america. guns keep selling. smith & wesson soaring. handgun sales up 38%. sporting rifle sales up 72% and an analyst note actually out basically saying people may feel that if obama gets re-elected to tighten gun control laws. so people might be rushing out to purchase guns now ahead of that. >> that is interesting. stock's up year to date 8 7%. tanking is talbots. this is the outrage of the day. >> should be. >> yes, it is.
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>> talbot's story, unchanged. who cares about the stock? we're doing it because talbot's agreed to a buyout a while back. the ceo trudy sullivan, no relation, agreed to step down. gmi ratings with a note today about how miss sullivan and the other top executives get multimillion dollar payouts from that buyout. she took over the company in august of '07. when it was a $21 stock. right? it's now at what? 2.50. the buy yut of 2.75. lost 88% of its value. >> right. >> not to mention the fact of 9% of the workers under the deal are losing their jobs. >> you think if we're outraged, they're doubly outraged. >> if you think of what people get mad about in corporate america these days, paid to get that much to basically drive a company stock down. >> yeah. >> that's the kind of story that really ticks people off.
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>> very disappointing. >> happy birthday to apple's iphones. >> awkward transition. >> live tv. the iconic device hitting the market five years ago today. the stock soared. what about the carriers? how have they done? jon fortt joining us with more on that side. where's your hat, jon? >> reporter: it's over with my hair. somewhere. >> you and me both. >> reporter: what's that music for bad news? that's the soundtrack for carrier stock charts. there it is. over the past five years. maybe with a slight exception for verizon, up 16% but in 5 years, that's a growth rate of just over 1.5%. the music works for that. the iphone cost the carriers an unprecedented amount of money. $650 per phone, resell it to
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subscribers and carriers make it up through monthly bills and had to spend more than ever improving the networks. as smartphone companies drain it with movies and videos. apple stock up more than 370% in 5 years. part of the reason as much as it hurts carriers to sell it sometimes it hurts them more not to sell it. apple's managed to build a loyal high-end customer base, the life blood of the wireless business. will carriers be able to break the grip? samsung offers the best hope. the first to carry the same name and features worldwide and samsung can try to have the loyal high-end base. that's important. only when there's a noniphone option with the name loyalty of the iphone have a hope of grabbing leverage back from apple. >> have you -- because i know you're dialed in, you are an insider out there. have you had a chance to poke around with the nexus?
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is that floating around anywhere? >> reporter: i had one in hand at google io. nice device but, you know, i think apple might challenge this with a new ipod. they haven't updated that line in a while. 200 bucks. it will be interesting to see what we see out of them this fall. >> very interesting. thank you very much for that. coming up next, big moves many commodities. we have got the hopium behind oil spike. did you see that? 5.5% this morning and the concern popping corn prices, as well. that's a live shot of peter madoff leaving court in manhattan. he'll serve a lot of time in jail. that's peter madoff coming out of the courtroom right now in manhattan. getting in to the new car to begin serving a prison sentence. there are a lot of warning lights and sounds vying for your attention. so we invented a warning
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at a hertz expressrent kiosk, you can rent a car without a reservation... and without a line. now that's a fast car. it's just another way you'll be traveling at the speed of hertz. coming up on "closing bell" stocks ending the first half of the year on a very high note. the highs of the day. from stocks to commodities, we have the angles covered on how to invest in the second half of year. don't miss the two huge
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interviews of the aspen ideas festival. alan greenspan explains how to fix the sluggish economy and eric schmidt to cash in on the crowded tablet market. that's the top of the hour from new york stock exchange and first oil is othering right now, sharon. >> it's almost at $85 a barrel. right now, bill, up $7. it's been on a tear energized, of course, by the eu deal and the summit and what came out of europe earlier in the morning. but a lot of it has to do with position squaring ahead of the end of the quarter. seen step losses in this quarter and so some traders are saying that's a factor, as well. also talking about the geo political risk in the market. you remember that july 1st start the eu sanctions against iran where the exports of iran will be cut sharply, that's something they're watching. also watching just the middle
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eastern region in general and reports of missiles and being able to hit certain targets in the gulf. all of these highlight the risk premium in the market. we have seen some big losses, guys, in the oil market this quarter. back the you. >> we certainly have. despite the 9% gain that we have got in nymex crude. california giving the french another reason to slam america and foodies here none too happy, either. the golden state's foie gras ban goes in to effect. tell us how they doing? >> reporter: well, here at the cheese shop in beverly hills, this is selling like hotcakes. some sunday, while it will be legal for me to possess this sbr $131 foie gras it is illegal to produce it.
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>> people love foie gras. in my restaurant, it's a big dinner. >> reporter: what the chef is doing will be illegal in california next week. serving foie gras. >> finish it. >> reporter: first and last time. >> soon, yeah. >> reporter: animal rights activists calling for it showing ducks of forced fed. it's created in 2004 and gave the industry eight years to prepare. >> i think we thought it was going to go away. >> reporter: it didn't. starting july 1st if he's caught selling the foie gras cheesecake, he'll slapped with a $1,000 fine. >> to chefs around the world, they think it's ridiculous. the stupidest thing to do and just proves that californians are stupid. >> reporter: the fans claim ducks in the u.s. are treated humanely and while force feeding looks back --
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>> they don't feel different. built differently. not like us. >> reporter: they don't feel the pipe or the -- >> they don't. >> reporter: some chefs wonder if they skirt the law purchasing it out of state and then charging more for everything else. their bigger worry isn't business but what it does in principle. >> what's next? caviar? >> reporter: all right. there's obviously another side to this story. on the blog right now, we talked to the author of the ban john burton and go to what was supposed to be a secret party in san francisco until peta found out. that's right now at funny business.cnbc.com. >> feels like an ongoing trend of people trying to limit what we eat and drink. of course, goes out to the 1% as well. a political angle. speaking of fattening things going on, wallet fattening. the dow industrials up 240 points. about ten minutes ago, volume, 500 million shares. that could very well be one of
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the lightest volume days of the year. still prices up. >> close to session highs there for the dow. still ahead, herb revved up to talk navistar. he's been all over it. he'll phone it in from the sick bed. >> sick bed. from his couch in front of the tv. from engines to auto parts, will the slowdown of europe hit americans right here when we have already been hurting? we'll debate that. do not go away. [ male announcer ] aggressive styling. a more fuel-efficient turbocharged engine. and a completely redesigned interior. ♪ the 2012 c-class with over 2,000 refinements. it's amazing...inside and out. see your authorized mercedes-benz dealer for exceptional offers through mercedes-benz financial services. looking for a better place to put your cash?
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is there there is navistar. that stock is up 10% today. chatter out there about what navistar may do whether or not it's going to make a deal with cummins. there has been reports they would hire or have hired some transactions -- either way, you know that herb greenberg has been very active saying analyst have been negative on the name. not feeling good today, but good enough to join us by phone, why is the stock soring today?
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>> there's a lot of chatter they will start buying engines for cummins. they site comments from two leading fleet industry executives. one of them said he was told by navistar this will happen next year. if this were to happen, this would be a really big problem for navistar because the whole company has controversial engines for big rigs. they gave me the standard comment, but the important part of all of this is with it's balance sheet, if this were to happen, they would have to stretch it more to buy the engines, but it's also complicated. no one knows what happened here. this creates greater dynamic to a story that's evolving with
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some people saying you have a company that still there is a risk it could be forced to file for this restructuring. >> back on june 19th when bankruptcy was an option for navistar. get better and come back. >> see you on monday. >> the stock is really tanking today for ford. this is not just a ford problem, it's potentially the problem of a industry wide slow down, and we're pointing the finger at the euro mess. let's ask phil lebeau how big the problem is. >> it's potentially a huge problem, and it is a problem for ford and gm in particular. they have too much capacity. for gm and ford they have to adjust as quickly as possible, and they have not decided what they will do because of
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different clients and countries, and a lot of problems. this will be a drag here for awhile. the fact that they said their international losses will trip l between q 1 and q 2. that's an indication of them deteriorating. >> yeah, do you have any idea of the magnitude of the deterioration? >> no, nobody is sure where the bottom is. the sense is that we're pretty low in terms of overall sales there. but the germans, particularly vol volkswagon being aggressive over there. and that's putting a lot of pressure on them. there's no way of knows where the bottom is in terms of sales over there. >> phil, stay right there, we want to talk about the american jobs that could be hurt by these
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slumping sales. let's bring in the senior analyst of edmonds.com. do you see american jobs being affected, michelle? >> not right now. they're troubled in europe, but going really strong here in the u.s. we expect another good month of june car sales. it will affect the parent companies, but the auto parts makers here are running flat out because we took all of the capacity out. >> do you think there is a possibility that if indeed things don't go well over europe, they cut capacity there, it might create jobs here in america, if they bring some of that capacity back to america, and create more jobs? >> we're already seeing that. they're building a plan. audi is building a plant in
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mexico, and they always bring their suppliers with them. they want to build cars where the customers are, they want to build the parts near the plants, so it could have a good effect. the danger is that we'll catch the cold from europe and our market will slow down, we're not seeing that at this point. >> we saw a lot of auto parts makers go out of business, and it was very difficult. is there any way we see another huge round of bankruptcies from what's happening with europe? >> the health of the suppliers here in the u.s. is strong. they're all doing very well, they're running flat out. it's a matter of how much does europe effect the overall parent company. we're just not seeing it yet. they're doing very well here. >> i would just say it's going to hurt the bottom line more
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than anything else. some coming are doing great. i don't think it's going to take any down, but it will hurt the bottom line. >> thank you for joining us. we have a good june going on here, and it's largely thanks to today, actually. we're getting session highs right now, so if aliens attack. >> what do you mean if, it's when. >> who is more lukely to protect the country, is it president obama or mitt romney. there's actually a poll on this, and the results are next.
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