qe-3 or bond purchasing from europe. that just means the economy is that bad they need to do something or europe is so bad they need to do something. i don't think it's a good sign. >> if you need tonic or medicine, maybe it's not a good sign. >> i think so. >> meanwhile, that will do it for this edition of "power lunch." >> yes indeed. street signs begins right now. happy september, everybody. summer is over and things are about to get real. europe is back in focus. as dems do their thing in charlotte, we will walk you through the three big bear cases for this market. billionaire bob johnson makes the case why he thinks democrats are the best for business and why democratic food is not all it's sold to be and stocks for whole foods and summer movie slowdown, why it was more bust than bank, mandy.

>> hello, september off to a stumbling start on wall street. it would mark the first time it's fallen during the first trading day of the market. and trying to hold on to milestones. 13,000 nor the dow and 1400 for s&p. the dow, s&p and nasdaq are all coming off gains for the month of august. all three also end ed ted the m with two weeks of loss. looking ahead to the new month, september this is worst month for the dow. lost an average of 2% the last 12 years, although five of the last seven septembers finished on the plus side. let's hope we will be one of those. bob pisani on the floor of the new york stock exchange. good to see you. is risk on riskier than risk off this week? >> confusing. i think the answer is yes. the problem is the august stats are not finishing very well. our first real look showed contraction in the manufacturing area. we lost almost 100 points

immediately at 10:00 a.m. eastern time. if you look at the sectors worse today are the risk off area, your material stocks, energy stocks, industrials and technology are all the ones. the important thing is while these are the ones down, this has been the trend a few weeks. we hit highs, four year highs about three weeks ago, august 17th. since then, exactly those sectors, materials, industrials, financials all on the weak side under-performing. most big names are down 3% since then. right now, as of now, the trend is down on concerns about slow ing global growth. >> all right. well, as mandy pointed out so clearly, september usually stinks. but this is no ordinary september, right? there is much more going on than a so-called normal year, whatever normal means anymore, right? three cases for the bull market the rest of the year and three cases for the bear market the rest of the year, one of them,

my friends, is the same. let's get to it. first big thing, the fed. the fed is at the ready. they basically said if things slow down, the dow gained more than 4,000 points since the beginning of qe-1, don't fight the fed, kids. second bull case, housing and auto recoveries. neither of them -- housing is not spectacular but it is getting better, corologic repo t reporting 3.3% year-over-year and autos probably sell more than 14 million this year. under the bull case, i put a europe and china slowdown. why? we talked about over a year, we're seeing signs as they slow, capital is coming to the united states, especially in real estate. the three bear cases for stocks, the same one, europe-china slowdown, also the bear case because we don't know

how the movie is going to end. if you listen to the rabinni's of the world, we're all doomed. average company growth is slowing so the market may not command as high of a multiple and yield, fiscal cliff and we will pull a thelma and louise unless congress gets their act in gear. >> you just heard from brian the bull case and the bear case. let's see what our guests think. james camp, manager and bob. thank you very much for joining us. bob, i will start with you. you have to pick one, bear or bull for september. can't be raccoon or koala or wallaby. >> you will see a market impacted because of concerns out there. i mentioned, you still have europe, you still have china, you still have the fiscal cliff, the election, which will be very

contentious. you take a look at what's actually going on, you actually have plan in europe and that will materialize. >> we have a plan? we really do this time? we heard many times we have a plan out of europe. >> we've all been reading about it and hearing about it. even angela merkle is in favor of it. you will see a ceiling being put on interest rates over there and will eventually help. if you focus too much on greece, that will become a distraction. i think if you realize that draghi has a plan, he will put a lid on interest rates, that will help the situation there. here in the united states, the focus shouldn't be on the weaker economy, the focus should be on jobs for the fed. the fed has said, one of the mandates is jobs out there and we haven't gotten the job picture yet. chairman bernanke will come and delivery. i don't believe in additional quantitative easing. that will come and the market will respond positively. >> do you agree we had to put that as the number one thing in the bull case? do not fight the fed perio..

>> i think you can make a plan you made how the stocks have built up and yields on treasuries and fixed incomes have collapsed and we have a market not stimulative for folks looking for work. i go back to a point i made a number of times. we are still healing from the bad debt crisis in '08. you look at bad balance sheets, there is a 1.78 trillion between deposits and loans. that number is pre-recessionary in terms of size. it is historic. the fed cannot force, at least with the current policies, people into the lending markets. until that happens, small businesses and mid-size businesses don't have the credit to expand. >> do you have a response to that? >> james makes a good point. you can't push on a string and expect to move it forward. what the fed can actually do is influence banks.

if they reduce the money they pay on excess reserves, they con force banks into the position if we actually made a loan, you'll actually start to make some more loans. >> to that point, pun intended, banks are literally printing money right now because their spreads have grown. they're going to borrow what they borrow at versus what they will lend to you at has grown. the fed is printing money for the banks! >> the other part is the share of balance sheet being deployed in treasury and agency backed securities is also historic. it shows this risk-free earnings the fed has allowed will continue. the longer the fed gives them, in terms of transparency and forward projections, i think the more difficult it will be to force the lending. bob did mention some tools they do have at their disposal. earlier in the segment, you mentioned autos. autos are doing well because there is a credit market for autos, an asset backed securities market functioning beautifully. there is credit being created in

that area. not in residential real estate. >> i would like to know what this means for me if i'm an investor. bob, bring it back to us. we talked about the problems and bear case. if you stayed out of the market because you worried about the global growth slowing or fiscal cliff issues, you missed out on a lot of gains. >> that's speculation. you want to be looking for the long term. what's going to be improving. if you think the fiscal cliff will fall off the edge and continue, stay out of the stock market. if you think things will improve next year, they will come to a compromise, you want to be moving into things like energy, financials, technology. consumer discretionary. the reason why -- >> outperforming in the month of august already. >> you saw a lift and saw improvement. things starting to come back. >> i'm not picking on anybody. there are a lot of smart people right and wrong. if you listened to the

nay-sayers the last few years and thought we were doomed, you missed a few thousand points on the dow. here has the bottom line, is there another 3 or 4,000 points of upside to the dow in the next two years? >> i don't have a forecast for that. i will tell you the naysayers a few years ago said don't invest in fixed income and that has had an incredible run. i do agree with you to stay pat and hide money under the mattress guarantees you will have a negative real return over the next few years. selective risk taking, being mindful of the fact the fed is in the game and will continue to b bow buoy risk assets -- >> is there a treasury line bubble? >> it's a misnomer to describe the bond market as such. i think the longer term bonds, high yield sectors have had a very good run here. we are in a very different world

here. with a fed that will continue to act. we have all kinds of distortions in the needle curve. we have europe we think is in a deep, deep recession without clear policy tools to manage it, other than continuing this liquidity game they've been playing. for us, the safe haven of the u.s. treasury market will continue the next couple of years. >> it would be very negligent of me not to ask about gold putting you on the spot, considering we're nearing six month highs and silver doing well, comments outdid bonds for the second consecutive month. where do you go from here. >> if you believe draghi and not printing money, gold is not the place you should be. if what they're doing is printing money to finance the purchase of these bonds, these country's debt, yes, gold is a place you want to be. you don't want to have overexposure but some exposure. you will see the bubble start to lose a lot of air. there will always be some class

of investors invested in treasuries. you need to understand that but won't lose it all completely. >> gold certainly has awoken from its slumber. >> thank you all. coming up on "street signs," we go live to the democratic national convention where we're joined by billionaire bob johnson, and ask him why he thinks four nmore years of president obama is right for your money. across asia, the political firestorm they're creating. getting ready for tomorrow's nfl kick-off and update on the draft and how stock picks are doing. [ male announcer ] what if you had thermal night-vision goggles,

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it is the democrats' turn this week in chapter, north carolina and their convention kicks off tonight with michelle obama saying why the president needs four more years in office and not so subtle case for the woman vote and the first keynote ever to delivery thethe -- the first latino to delivery the keynote address. will they buy it? sn>> you have broadcasting to t wide swath of the american

electorate and narrow casting to particular constituencies. you mentioned women and hispanic, yesterday, president obama in ohio pitched his economic message to union workers. >> their plan says the best way to help workers is to roll back workers' rights, to overturn laws that make sure construction workers get a fair wage, to blame teachers and firefighters and police officers and other public servants for our economic challenges instead of what happened on wall street and the historic financial collapse. >> that's a preview of the president's own message thursday night. tonight belongs to michelle obama, the key speaker an the m mayor talks to hispanics. >> and michelle obama has high approval ratings. if president obama wins a second term, one of the reasons will be

because michelle obama helped him project the image of family values as a good husband and father and one of the things that uplifted his likesability where mitt romney is. >> what are you sensing about the tone of the convention. is it going to be, here's why the republicans are wrong? is it more, here's the future, more uplifting? >> both. i talked to one democratic strategist that said what president obama and the democrats need to do at this convention is offer a brutal takedown of the ryan-romney budget, what it would mean for the united states. they need frame a choice. part of that choice is not going after romney and ryan but also the president spelling out where he wants to go in a second term. what about deficit reduction? what about job creation, infrastructure creation, this is not a state of the union speech with policy detail but he has to give america the sense he can make the economy better in the

next four years. >> we'll see you a lot this week. thanks. and republicans tried to make the case the president is bad for business. this week in chapter, a roster of ceos and former ceos set to make the case for him. president of rjl companies, joins us live in charlotte and cnbc contributor and overall rich and successful guy. i will ask you, has the president been good for business these last four years? >> yeah, brian, i think you have to say the answer to that is yes, if you look at where the economy was both nationally and globally, when the president took office, it was in an absolute tailspin, loss of jobs an loss of liquidity throughout the country, no lending, banks in disarray. we are definitely coming back. there are examples you can point to, obviously the automobile industry of which i'm a part of. the point is i don't think, brian, that business people are asking the question what

happened in the past? they're really asking the question, what are the two candidates going to do in the future? that's the issue. we baked in the loss of the past. we're really focusing on things like, how will you deal with tax reform? how will you deal with curtailing entitlements and how will you deal with the debt and deficit. i think that's obama's message. i think if he delivers the message in the right way, i think the businessmen and women in the business community are prepared to give him a second shot. >> the republicans have already gone after the president, especially his comment, you didn't build that and bureaucracy and red tape. the president has to come out and say, here's my real plan and how i feel. what does he need to say to sway some independents and undecideds out there? >> i think the president has to strike an appropriate balance in how you grow the economy. it's not just growing labor, not just growing business, not spending more on entitlement,

not raising or lowering tax, what's the appropriate formula that gets the free market economy working in the best interest of everybody. that's bold issues. tax reform, entitlement restraint, figuring out ways to get more competition, innovation, into this economy. those are the kind of messages the business community sitting on the sideline waiting to here. we've got to the past, the issue of are you better off today than four years ago. what will happen in the election in november and what will happen in four years, what's the five, 10 euro plyear plan to get thisy going and that's what the president has to say to get the business community back on his side. >> in the way chris christie made his remark people thinking this is a guy who might be a future candidate for the republicans, who should we be watching at the dnc in terms of

speakers that might be future presidential candidates? >> mandy, you obviously have to look at the governors, the governor of new york, mark o'malley in maryland. so you have to look at those individuals. you can't count out, depending how the election goes, secretary of state, hillary clinton. i think the issue right now for the democrats is, how do you bring together a coalition of not only middle class voters, but also business people who believe that there is a role for government in a free market regulated economy, as i said, there is a role for government, but there also has to be a light hand on regulation by government to stimulate investment. that means being very judicious about how you deploy the tax cod code. >> understood, bob. thank you for joining us. great to hear your thoughts. still ahead, herb's thoughts on the big drop in netflix and possible iphone 5 play.

>> an under the radar name. trust us. how ferrari crashes have been a political and social clash point in asia. you don't want to miss this story coming up.

brian shactman here with the markets. look at verizon. the market research may be the first part of its bounce and defensive in this negative announcement and this iphone announcement possibly september 12th is sparking a rally. at&t is up as well but verizon getting a bulk of that pop. they sell a lot of iphone 5s and will sell a lot of that. those two names will probably benefit. nasdaq turned positive. we are seeing a little bit of a move to the upside. back to you. >> i think i speak for all of us when i say, you're welcome, america. the nasdaq is now positive. we try to please. >> did you single-handedly make that go positive? >> i put in one buy order of positive for something. >> comcast. >> comcast, thank you. why we like him.

ferrari crashes across asia are becoming more than accidents. a battling of inequality in place places like china. what is this, a car crash as a "politico" manifesto? >> it is. we will start in singapore, the first crash we will talk about. here, there is a video made famous, shows a ferrari driving way over the speed limit when it crashed into a taxicab and killed three people. the driver was a rich chinese investor. it caused a political firestorm in singapore over wealthy chinese and overseas residents. on monday, there was another ferrari crash in bangkok, thooild, the grand sovereign the founder of red bull. he was driving his new ferrari when he hit and killed a policeman and fled the seen and later arrested. the police tried to cover up the accident and pin it on another driver. there are new news reports over the weekend that tell of a third ferrari crash in beijing, the

driver was killed. two female passengers injured and get this, they were all naked at the time of the crash. we learned today the driver was also the son of a prominent government official although it's all been kept under wraps for months. in asia, all these crashes are fueling anger over a new upper class we might call the young and rich and thoughtless. >> i understand the online searches for ferrari crash have been completely banned in china. >> this crash happened back in march, the son of one of the top officials. they put a fake name in the death certificate so nobody could find out who it was. only now from the both did we learn who it actually was. this shows the effectiveness of the media blackout, how important they thought a ferrari crash could be politically. >> i don't know what they're paying officials in china but the son is driving a ferrari? >> good question. his father makes around $150,000

a year and driving a car twice as much. >> there's the issue. if you're just everybody else in china and you're thinking how in the heck is this $150,000 a year politician not only affording a ferrari but giving it to his son. >> they have the best capital communists in the world is your answer. >> it's a special shakedown, right? special style of shakedown in communist china. everything is just assumed. thank you very much. >> thank you. are u raed "are you ready f football"? you better be. the season kicks off tomorrow night and this week, we're looking at the winners and losers like facebook so far in our cnbc stocks draft. we'll do that up next, our picks, see what they're doing. >> i'm not a sore loser like some. we all pay a premium for organic foods because they're supposedly better for us, right? a new study bucks conventional wisdom and whether they will get hurt on the back of that study.

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hello. it is street talk time. why don't we look at street talk

on intel, cutting their estimates on stocks, due to what? macro concerns? >> the target was cut 2.32 from 2.35. the macro issue, sales slowing, and concerned about the growth of intel over the next couple of quarters. they said if you own the stock, credit suisse is saying we see this as a temporary slowdown. it will get better over time. you have to have a stomach the next few months or quarters if you own intel or credit suisse. amd, their competitor said the macro headwinds should be around the next few quarters. and campbell soup, i really enjoy their products. >> you're excited at the team

meeting because they're rolling out new soups. >> and new warhol inspired cans. >> they're trying. maybe it's paying off. better than expected fiscal fourth quart profit. and could come in as much as a nickel above consensus, a 14% jump in soup sales. one analyst, i think it was steern ag said be careful, the earnings beat was of low quality, mostly due to lower tax rates. keep that in mind. >> always good to look at the fine prirnt. que questcore scoring. because of a new drug in medicaid. it's eligible for a lower rebate amount. why is it up? lower rebate sounds bad. it means they have to pay the states less for the rebate. right how, they pay 100% of the same back to the states. it will bring this down to only

23% questcor has to pay and the ceo said it could have a quote materially positive impact on the company. >> huge bull-bear stock from the peanut gallery. >> let's bring in the peanut gallery. a researcher on a couple weeks ago very negative on questcor, very negative on the company and up 14% year-to-date. >> there has been a big tug-of-war. >> i want to point that out because you're up. >> and we have the grand leader. this stock falling, and defending their name. >> this is an iphone 5 play. i promised you smaller caps under the radar, semiconductor equipment based in l.e.d. manufacturing, screens, things like that. the analyst at sterne agee calls

the stock underappreciated because of its strong free cash flow. the stock is down. i wanted this as part of street talk because he was out defending the stock, obviously saying the sell-off. still saying this company is underappreciated. this used to be part of adulent, part of hp. this is actually a hewlett p hewlett-packard grandchild. >> and people don't care about cash flow until after the fact. >> since we've got you here, why don't we talk about netflix, it's tanking today. >> amazon came out and said they signed a deal for content with epics, netflix had had an exclusive deal with. the key word is competition. what competition is will either make or break the netflix store going forward. right now, it looks like it is breaking that story. today, we talk about amazon getting epics. a lot of talk about apple next

getting epics. that means amazon prime and possible itunes customers have one less reason to use netflix. long time netflix bear tony put it best this morning and told me the next guys in the business do not need to make money. they can use this as a loss leader, like walmart selling dvds at a loss to get people into the store. netflix is collapsing margins by the way and they are collapsing tell the story today. >> and the stock reaction tells it as well? >> epics is part of viacom. >> i actually do not know who epix is. >> they provide popular movies of people with the '20s and '30s-like. >> do you believe people will drop their netflix subscription because of epix. >> what they don't have to do if they're an amazon prime customer, they have one less reason to use netflix.

amazon is getting more content as perhaps will others. you have other choices. >> potentially bad for apple? >> not bad for apple. epix is sign iing non-exclusive deals. >> who are they? i honestly have never heard of this deal. >> when apple signed-- amazon s the deal it got the stock going. >> i don't mind saying i don't know. i just said it. >> we're on the topic of competition. green mountain's k cup needs competition as well. >> supervalue said they will have their own k cup, something that will work in the machine. >> the k cup? >> don't go there, don't go there, i know you. let me tell you something.

>> you know him better than i do because i have no idea where he was going to go. >> supervalu is the latest and we have safe way having their own label. >> i called supervalu, are you licensing this from green mountain? no. their own private label, raises the question who's manufacturing it. >> not green mountain, that's the key. one of the manufacturers out there, we don't know if that's the deal, it's treehouse. been very good getting into this k cup business. >> arguing about this earlier, how do you know it's not green mountain making it for super valu. >> it is about margins margins going forward, a lot of tug award. m >> think about all those k cups, the k cup mountain. >> i must tell you that in this case, supervalu is telling you,

they're using less material trying to be eco-friendly. >> killing dolphins and blue whales. >> how many dolphins climb mountains. nfl season officially kicking off tomorrow, folks and thought it might be time to visit draft picks. >> where's he going? >> i forget. >> segment's not over tv star. and firstoff, our apologies, secondly, back in april, we got a group of people together and basically had them choose one stock they have to hold all the way through the actual nfl super bowl. there are the team members. there are the hats they chose with the companies on them. we gave them a list, wasn't unlimited. 22 or 23 names we came up with. >> we had to choose at the end. herb, you went with johnson & johnson. where is that sitting? 4%? a little slip of the tongue. 4%. >> you went with the company that makes stuff you use, knee

braces, stints, new spine. >> tylenol after spending the day with you. >> i chose facebook, by the way, don't laugh, before the ipo. a bit of a fun thing, speculation play. since then, the stock has absolutely tanked. >> speculate this. you're losing bad! >> yeah. at least i'm not a sore loser. it is down, as we can nicely see, 53%, currently at all time lows of $17.75. >> my pick was worst buy. not doing so hot either. down about 20%. i picked best buy. here's the reason. i picked best buy entirely because of potential for a buyout. i am on the record saying that. we have schultz sniffing around and other parties sniffing around i stand by my draft pick only because i'm not legally allowed by the rules of the game to change it.

>> and prime can push up the stock. tomorrow, we look where our stock pickers stand who has the best draft performer so far and the worst so far. we run it down for you. up next, we look at mining disasters and sweet sunshine. we will look at whole food stock that's been on a roll weighing benefits of organic food versus normal non-organic food and whether or not this might sway public opinion and take a bite out of sales. [ male announcer ] now's the perfect time to buy an adjustable version

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a question have the u.s. markets here. the nasdaq just turned positive, squeaking above the line. it was below the 1300 mark and dow stuck ever so slightly in the red. let's see what's coming up on "closing bell." i believe bill griffeth is at the ready. >> i am. china's stock market, while ours is coming back, china's at the lowest level since march of '09. is that a good or bad sign for the u.s. markets. we'll get both sides.

and we'll wonder whether a win by mitt romney could signal the death nells for unions in the u.s. and you think organic food is healthier? turns out it is more expensive. the co-author of that new study everybody has been talking about all day will join us. coming up, maria is back and look forward to seeing you here at the stock exchange. >> thank you. we'll be looking at whole foods market on the back of that study in a second. first, disaster de jour time. we didn't have to look too hard with stocks kicking off in september mostly in the red. new lows for mining stocks. alpha natural resources, new lows not seen since 2005 and cutting the ratings on alpha natura natural, slicing price targets, simply too much stuff out there,

weakening demand. all coal miners are down again. and smuckers turning down all time high levels, a neutral on the stock with 89 price target currently sitting at 85 and change. >> you just heard bill talk about it, right? a new study suggests organic food is not any better for you than regular products when it comes to vitamin and nutritional contents, according to stanford universi university. will that take a hit to whole foods that organic is better? manager of organic food and retailing, is this something to be afraid of if you are a whole foods investor? >> i don't think so. the organic trend is a bigger trend pure foods, minimally processed, fresher local foods,

whole foods represents all of that. the study fairly limited in scope says organic is not necessarily better in nutrition for you. i throw out the eggs, research, cage-free vegetarian eggs are much more nutritious for you. i think there's a bigger trend here than just organic. >> it's basically saying it's not any more nutritious or more vitamins but does have lower chemicals, right and argues for the stock. >> and higher price. >> lower exposure to pesticides and antibiotics and things like that. >> absolutely. in 2005, we said if you have the money, you may not want the chemicals pulled off the market. a mother expecting a child says i just don't want that chemical. maybe the epa saying it's fine now but do i want to take that risk with my child. >> the study is gaining speed not only here but national

general media, don't worry about people looking at it, cover of a newspaper, saying, why am i paying more? forget it. the same stuff. >> most of the people going into whole foods are very sophisticated, educated population doing their own research. a lot of them are deciding, hey, this is one study but i will make the decision. >> is there enough of that population to sustain the growth of their stock? >> i think absolutely. if you look at the trends, we did a big study called trouble in aisle 5. one of the things that came out, we talked about the young educated millennial mother, she wants natural organic food way more than her mother did. >> you have a buy rating, a must own company. what could stop that? >> the biggest thing that could stop that is whole foods itself tripping up on margins, new store execution. right now the trend is it friend going forward. we like whole foods quite a bit. >> thanks.

let's get a chuck with phil lebeau and we have more and more data on august sales. >> we looked at data that was the august sales at $14.52 million above the estimates that had it pegged at 14.2 or 14.3. august auto sales better than expecte expected. >> that is a big number, to feel good about. >> second biggest of the year. more important, retail sales were 82% of the purchases last month. the first half of the year, retail was just 77%. we're seeing the consumer go back into the showroom. >> are you still sticking by the bet, if it hits $15 million, you will shave your head and run naked down madison avenue. >> absolutely. >> just getting it on the record. >> if you lose, what do you do? >> i'm not in the bet. it's his bet. up next, why doesn't anybody go to the movies anymore? i do, but i'm nobody.

despite two blockbusters, summer box office largely a flop. what does hollywood need to do to get people off their couches, probably has something to do with make better movies, just guessing.

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welcome back, everybody. the summer movie season is officially over now. along with the weather. and the box office saw more fizzle than sizzle. our own julia boorstin joins us with more. why was it such a disappointment? >> despite the fact the summer movie season opened with the record-breaking "avengers" it fell flat and ended with a record-breaking flop. this past weekend, oogie loves was the worst wide release ever with the lowest per screen average any of wide release. big budget movies like "battleship" "rock of ages" and "total recall" failed to lure audiences who had plenty to watch on tv, including the olympics. the aurora shooting cast a shadow over the whole summer season. even with higher ticket prices, revenue declined 3% from last year. this was the first decline since

2005. and attendance fell more, down 4%. the health of the overall market looks even worse considering how big the hits were "the avengers" has topped $1.5 billion at the worldwide box office and warner brothers "dark knight rises" has grossed nearly $1 billion globally. looking into this fall, hollywood still is betting on the power of familiar brands. we'll see a "twilight" sequel. also disney re-release its hit "finding nemo" in 3d. the studios will also try to lure audiences with more original movies designed to be sort of oscar bait. we can expect to see some of that with spielberg's "lincoln" as well as ben affleck's upcoming movie. mandy? >> julia, stick with us. we're going to bring in another voice but still participate in this discussion. anthony declemente is a media analyst at barclays. you heard what julia was talking

about. how many "total recall" remakes can you do? >> we're down 3%, so i wouldn't overdramatize the decline. especially in view of the olympics and the tragedy that we saw this summer. but the other thing is that because if you think about movies and the whole value chain, the downstream revenue, so that being dvd sales is down so much. so if you think about it from the perspective of the studio, there's less of a revenue pot to work with. as a result, they want to take less risk. what happens when they take less risk? they'll go with bankable franchises, superheroes, with the types of films that have lower downside. so i think when you look at the hits, the hits and the nature of the hits are reflective of that strategy in hollywood. >> do you feel in sort of a broader picture this is going to become a trend that we'll see box office take-ins. movie attendance gradually decline or do you feel this was like one disappointing summer? we didn't have enough hits? >> i think it's a one-time thing. i think as long as kids want to

get away from parents and parents want to get away from kids, there will always be a good business here. a lot of folks watching cnbc aren't necessarily the target demographic. so i think it's not a growth business, it's a flattish cash cow business. and but these stocks can really provide value with the dividend yields they provide. >> julia, come in here. >> well, anthony, i agree that the movie business isn't going away. i think the bar is higher. i would attribute it to twitter. i think that before the movie studios used to be able to buy their way into a strong opening weekend or two. they can guarantee that if they spent enough money on marketing they'd get pretty significant numbers the first weekend or two. but now, if a movie is bad if people don't like it, they can tweet immediately and within 24 hours, no one is going to go see a movie by sunday if it opened on friday. so i just think people, moviegoers have more power when

it comes to responding and rating the movies themselves. >> what about good movies? so what about rotten tomatoes checking out the indy film that's good and builds buzz quicker in a viral way. >> the same is true, but i finishing you are a big movo studio, chances are this could hurt you perhaps more than help you. >> do critics matter then anymore? you know, paid critics? >> i think it's possible that critics matter more in the aggregate. but marketing is harder. this goes to the issue with the 30-second spot in advertising in a digital age with facebook, twitter, et cetera. i do agree with julia it's harder to get there on just the big bang release. >> right. >> but i do think good movies will get found easier with the advent of the web. >> it's damned if you do, damned if you don't kind of thing with social media. coming up noox what the tooth fairy says about our economy. [ male announcer ] let's say you need to take care of legal matters.

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the economy needs manufacturing. machines, tools, people making stuff. companies have to invest in making things. infrastructure, construction, production. we need it now more than ever. chevron's putting more than $8 billion dollars back in the u.s. economy this year. in pipes, cement, steel, jobs, energy. we need to get the wheels turning. i'm proud of that. making real things... for real. ...that make a real difference. ♪ all right. there's your market. the dow still down 25 points, but we are well off our session lows. >> okay. moving on. the tooth fairy is turning bullish. a neursurvey by visa shows the tooth fairy is leaving an average of 3 bucks per tooth under kids' pillows. that's up 15% from a year ago and back to 2010 levels. 8% of kids are getting more than 5 bucks a tooth.