all sporting losses. the industrials down by 32. the composite down about 27. sue? >> you know, ty, i was interested that oil is on the down side today by just under 2%, despite the fact that we still have the rising tensions in the middle east and the saber rattling that's been going on. i find it interesting we're holding at 9132. >> that will do it for "power lunch." >> "street signs" begins right now. ♪ the waiting is the hardest part ♪ >> really is the hardest part, right? welcome to essigns, everybody. we can forget about waiting, because everybody is waiting for the election to make their moves and why that may be the wrong strategy. and while you were sleeping google happened. shares keep growing quietly. we'll find out why. plus, the housing disconnect. new home sales are rocking while the rest seems to be stuck in

the middle, and what is wrong with the chevy volt? it's getting rave reviews. but consumers are just not convinced. we'll dig in and find out why, mandy. >> indeed we will. he wi hello, everybody. the world is dealing with another case of the mondays and if the dow stays in negative territory until the end of the session it will be the 15th time in 16 mondays that if has finished lower. the s&p 500 meantime, down for a third straight day and is on track for its biggest one-day also in two weeks and the nasdaq seeing its biggest loss in two weeks, and though it is still up for september, the gains for the month trail those for the other major averages. those are some of the stats we've been watching this monday. brian, over to you. >> all right, mandy, thank you very much. we say every day you get one more yarding right, from the song we just played. that has not been the case with new home sales. they are getting two, five, ten yards every day, but what the heck is up with houseing? new home sales. lennar, earnings crushed it. profits more than quadrupled on strong demand for their newly

built homes. stock down today a little bit on profit-taking but look at the s&p 500 home building index, down a little bit today, but look at the year-to-date change, folks. up 99%. it is essentially doubled jul th just this year. existing home sales, up one month, down the next and sure there are pockets of strength cue to seasonality but sales have by no means been september. is there a disconnect between the so-called used and new housing market? diana olick joins us on this. joins us now with more. is it reality or is it perception, diana? >> no, it's all about this very unique housing recovery we're in. there's just no historical comparison for this, and that's why you have to separate what's going on with the home builders from what's going on with the existing home sales or as you call them the used homes. new construction makes up 10% of

all home sales right now. historically it should be around 21%, but it played an outsized role in the housing boom with overbuilding and a whole lot of investor flipping, so it crashed much harder existing home markets. look at housing starts just for single families. averaging 1.3 million at beginning of the century, it hit a high of 1.71 million in 2005, and then crashed to a low of just 430,000 in 2011. we got the wrong chart up there. we're looking for our housing starts number. anyway, we're back up around 535,000 right now, but you can see you have a really long way to go. so, yes, it looks like the builders are jumping back up. 40%, 50% in new orders. can put the housing starts chart back up, but the real number of homes being built are still incredibly low. look at those housing starts, that low. that, of course, has a lot of analysts concerned about stock valuations, with the stock of many of the big builders up

200%, 300% just from a year ago. still, why would buyers be heading more towards new construction over existing homes? when the median price of an existing home is around $187,000, a new home is up around 224,000. the answer, one word, supply. you have a lot of action in the existing home sales which has been in foreclosures and short sales. investors paying all cash, and ey p out the other buyers, especially the first-time home buyers. they, of course, go to new construction, so now foreclosure supplies are very low. builders are offering down payment assistance to help buyers get in on those record low mortgage rates. why wouldn't you go to the builders, right? builders, of course, scrambling to get some supply. the trouble is they may have trouble when it comes to getting premium finished lots. that's going to be the next big story. more online at realitycheck.cnbc.com. >> let's bring in the professor

of real estate at wharton. to both of you, great to have you on the show. ladies first. let me ask you. we've thrown everything but the kitchen sink at the housing market. great afford ability. prices are down. record low interest rates. why isn't the housing market better? >> the housing market is coming back, as you noticed. coming back in not only existing sales, though slowly but booming in new sales and housing prices are up across the board over the year. >> what i kind of meant is -- yes, it has recovered to a certain extent, but why is it not better than it is? >> you know, this is a world where we overbuild hugely, not overbuild hugely but in fact prices are substantially down off their lows. that's a major reason why you can't pay for the cost of replacement, including the high-priced lots that mindy just spoke to. >> it's sad, too, because a lot of individual builders were simply put out of business. are the big capital-heavy companies, the public ones like

lennar, really the last game in town >> i think we have the whole range of the industry coming back, but as diana said, bouncing off a very low base. the main reason that it's not stronger, the housing market, credit is still very tight. hard to get a loan unless you can put down 20% and credit standards, average fica score has gone up dramatically. 40% of the people normally in the market cannot get in the market today, and the other component susan mentioned they don't have equity. prices dropped 25% so there's a lot less equity for the repeat buyer to leverage up, and we still have 15 million buyers under water who can't trade up yet, so there's a lot of headwinds, but would i say the market is back and the best time to be a buyer i think in 50 years from the point of view of affordability. >> i don't disagree, but there's one point. there's a lot of buyers out there who are saying maybe rent a little while to make sure that

this is a true recovery. >> oh, maybe, susan. >> but the word isn't out there yet. >> you know, we saw an interesting poll that came out the end of last week saying 25% of americans would like to know who the next president is before they commit their money to buying a new house. what are they waiting to hear? what would a new president do to change their decision about buying a house? >> well, remember, one of the key -- >> it all does depend on jobs, jobs and the overall economy so how this plays ow. if the job growth keeps ongoing and interest rates keep where they are, this recovery keeps on going, but there's a lot of uncertainty. the fiscal cliff is out there. that's uncertainty. >> you know, ken, a lot of our viewers and a lot of our guests talking about the stock market saying, it's fed-driven. in fact, we might hear that in a few minutes. how much of the housing recovery is fed-driven? >> i think there's no question that these low interest rates are really what has energized the market. we should in a much stronger position if it wasn't for the legacy problems and the tightening of credit, so when interest rates do normalize,

let's say we get back to a 6% mortgage rate. we're presently at 3.5%, that could well happen in the next two years. >> which, by the way, to jump in on you, susan and i have talked about this, terrifies the heck out of me. who is going to move into a mortgage 6%, lock nod a 3.5% mortgage or looking to build a bigger house, why would they move? >> no question. >> is the fed going to destroy the housing market in ten years? >> no. the fed will just normalize interest rates and we'll adjust, because, remember, a 6% interest rate is extremely attractive and a good place to be, but 3.5% -- >> brian has a great point there in terms of long run demand. >> ken. i also want to raise another issue and that's old versus young. to what extent do you feel through the various disruptions we've had in the economy and overall markets the last couple of years that young people have a very different attitude towards owning a home and probably feel if i want to keep flexible and get a job where

there is a job, i don't want to own, i want to rent. >> so, you're absolutely right. we've done some work on this, that the younger population today is much less likely to want to own at this point. they are delaying having kids, delaying marriage, and they want more flexibility and mobility, and they don't think prices rise. we've had five years now of price declines, so they are not thinking it's a great investment, so i think they are looking at it as a consumption item and are saying i'll be a renter until i possibly have a family and all these other things so there's a delay here, without question, especially the new urban renter. >> all right. >> that's the good news-bad news story because that delay means there's pent-up demand. focus has been on shatto supply but on the other side of the shadow supply there's pent-up demand. >> i'll leave it with this, need to start with a word that starts with "i." and it's not iphone but immigration that. can solve a lot of our problems. thank you very much. >> i've been doing my bit for

immigrati immigration. >> a market flash from jackie d'angelis. we're watching shares of deckers. concerns over ugg shoes. baird lowering its estimates for the rest of this year, also the rest of fiscal 2013, but take a look at the one-week chart. seen a steep decline in shares. more than 20% since the word came out that deckers was lowering prices on some of the key ugg styles so that's concerning to investors. >> thank you very much. as we said at the top of the show it's the waiting that is hardpart, and we're waiting for so much, the election, the fiscal cliff and more, but is waiting wrong? >> plus, an iphone sale every single nine seconds, is that disa disappointment? >> and barney frank once told me to stop obsessing. while were you sleeping, this mystery stock is on track for

its highest close stock ever. who is it? we'll show it to you coming up. ? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea.

wall street with another case of the mondays, unfortunately. let's get down to courtney reagan to try to spice things up and then to rick selly in chicago. give it your best shot, court. today may be a little dull out this in equity land, but what do we need to know about in. >> what's important to know is as equities do continue to hold lower and continue that case of the monday patterns, we're seeing a risk off trade today. technology, a big drag on the

broader market, and we've talked a lot about apple. know it's heavily weighted. dragging the nasdaq lower on some of the iphone 5 sales, disappointments and the reported scuffles over at foxconn. pc-makers, waning demand weighing on the heavy hitters, dell multi-year lows, microsoft and hp really underperforming. the broader tech sector and google though is bucking the trend, hitting new highs. we could close at a new historic high if we close above 741 today. mandy? >> okay. courtney, thanks very much. rick santelli, what do we need to know about for the bond market this week? >> well, i think the big question everybody around here is asking is what are the areas that have had lasting impact in the new announced qe3? as i look at interest rates, ten-year is back down to about where it was before qe3. we see that the dollar index is trying to fight a little bit after coming off fresh form, and

the one area that is doing the best is the mortgage arena. if you look at some of the mortgage securities, the mbss that the fed is buying directly, they have benefited. dropping historic low yields, but as i look at the more affluent down here, they have refinanced for the 50th time at new historic low rates, but when i look at those that work for the more affluent down here, they can still not impact that benefit of lower interest rates, so the cost benefit analysis is what people are discussing, and you know who really seems to have made the most on the mbs rally, people that trade mbss. not exactly a middle class product. >> and the refi problem is exactly what we were talking about a moment ago in our housing discussion. rick, as always, you nailed it. thank you. unless you're coming out from under a large boulder stocks have been hot. dow 75% this quarter, and that's actually the worst performer of the three big indexes so why are money managers stiller in vows, still cautious?

let's ask the president of first trust financial resources and michael farr, a cnbc contributor. michael, you have been nervous telling people to go into big caps and more defensive names. you've missed some of the run in that situation. when do you stop being nervous? >> never if you're in my business. if you manage other people's money you're always nervous but we've participated in this run i think pretty nicely. not had the risk-on trade and the high beta stocks didn't hurt me this past quarter, but we've participated. i think with the fed behind us right now clearly, you know, you don't fight the fed. i think the trend is up. psychology is bullish, so i think this thing has higher to go. here's my one concern right now though. a lot of people think that you can't fight the fed, that you've got to own this market, and as you begin to see everybody agree, and everybody exit late, that's when i get kind of nervous. >> i'll put you on the spot

there. what kinds of numbers are we talking? where will markets be this time next year, do you think? >> let's go shorter for a second, if we can, mandy. i think between now and the end of the year the stock market could go another 5%, 10% higher between now and year end. the question is going to be what do the politicians do with the fiscal cliff? if they can push it off, i think maybe at the end of the first quarter, end of the second quarter, this kind of la-la land probably has a good chance of continuing. >> okay. i see, dave, that you've also been advocating a more defensive position as well. similar reasons to michael, or is there something else out there that is making you nervous? >> no. i would agree with mike. something that our viewers need to be cautious of is just what's around the next corner, so clearly we've all been great beneficiaries of where the market's been, but we still have europe which continues to be like a game of pop a mole. we do have the fiscal cliff issue, and we still have plenty of people just still on the

sidelines waiting to see how things are resolved. i mean in the end i would say there is no shame to taking profits and taking a few dollars off the table, for is there any shame of having a portion of a portfolio that's relatively boring as a defensive play, because if you've learned anything since the financial crisis, that is the actual pattern of our returns, meaning how we manage volatility, is often equally as important as the overall rate of return over longer periods. >> what specifically are your investment ideas that can retain that defensive posture but can also make you some money? dave? >> clearly the overall asset allocation being relatively balanced and perhaps 60/40. on the bond side we don't think there's much more upside so we're remaining relatively short to mid in duration in an effort to get yield. we do have portfolios of potentially 5% to maybe 10% of alternative investments using commercial reitz, non-traded public reits as well as senior

secured debt in alternative investments to enhance yield rather than going too long in the bond portfolio. >> the other part i would say like mike, larger dividend-paying stocks that would help generate cash flow and help us manage them to be able to play out the last three months. >> i worry about that. for three years that's what we've heard. you hear the valuation on quote, unquote, defensive newspapers. they are getting pretty stretched. >> depends on the defensive names, i think, brian. let's go to really boring for a minute. johnson & johnson. hard to get more boring than johnson & johnson and grown earnings 10% a year, each and every year for the last ten years, trading at around ten times next year's earnings with 3.6% dividend. i mean, it's boring, but boring and good. it's like volvos. >> trading -- >> j&j is trading at 22 times trailing earnings. it's actually trading -- it's actually trading at evaluation premium to apple. >> ten times next year's

estimates. 10, 11 times next year's estimates. that's what i've got on j&j. would i tend to own tech stocks in here. i would own consumer staples. i would stay away from the discretionaries and stay away from the basic materials and the commodity stocks and energy stocks because i think as soon us a get any kind of whiff of inflation and the economic slowdown, those names aren't going to do as well and there's still opportunity, so when you see pull barks in the tech sector today, you have your shopping list, i think there's money to be made. >> sure we need another step. dave, mike, thank you for joining us. >> thank you, thanks. just ahead on "street signs," the $700 stock that is beating apple by a mile lately. >> but first, smoke 'em if you've got 'em. how a small shop turned into one of the world's biggest cigar empires. "street signs" is back right after this break. [ male announcer ] when this hotel added aflac

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to reaching your goals. pnc bank. for er in you. welcome back to "street signs." i'm jackie dlang list with a market flash. we're backing peabody energy, bank of america turning on it citing weakness in the coal patch. they have taken the name from an

underperform to a buy, also slashing its price target from 22 bucks to 32 and also cutting eps estimates through 2014. take a look at peabody right now. down more than 4%. walter energy also taking a hit today, too. mandy and brian. >> okay. thanks very much, jackie. cigars, they have an image of luxury and wealth these days, but they didn't always. how one family-owned cigar store grew to a world class brand is one of the stories that tyler brings us tonight in "how i made my millions." tyler? >> you know, mandy, it is easy to think that it was always this way, that it always -- having a cigar signaled wealth. many investors know the name matt sherman that blankets practically the cigar world this way, and one of the ways it grew from the rather small and sometimes seedy connotations was to appeal to celebrities. ♪ >> nat sherman opened his small cigar store in new york city in

the 1930s at the depths of the great depression. when few customers walked through the door, sherman went out looking for them. he drew on a customer list from his first business, a speak easy popular with broadway stars, businessmen, fashion models and the occasional mobster. by the '40s and '0s, movie stars and entertainers like front sinatra and sammy davis jr. were happy customers, too, praising the quality and consistency of a nat sherman cigar. by 1960 even president john f. kennedy was getting cigars at nat sherman. and today you might find jay-z or former mayor giuliani or robert downey jr. visiting their private stashes at nat sherman. of course, one mayor you probably won't see there, folks, is the current mayor of new york city, mayor bloomberg, when has made his anti-smoking bona fides very well known.

full story tonight, "how i made my millions." please join us at 9:00 p.m. eastern and pacific. >> glad you brought up mayor bloomberg. going to be my question. if you ask a hard core cigarette smoker they lament the fact that they can't smoke anywhere except the privacy of their own home. has cigar smoking been impervious to that? >> cigar smoking rides the wave of the economy, mandy, up and down. when wealth is rising, is i gar sales generally rise, and when wealth kind of goes out of fashion or down, is i gar sales go down. i don't think the an move has particularly affected it, but the move against sort of the ostentatious display of wealth, maybe that has affected cigar sales a little bit more. >> indeed. recession chic is in. thank you very much for that, tyler. we'll be watching that tonight. coming up next, we are talking tivo and tires in street talk. >> and the chevy volt, one of the top-rated car, critics love it, owners rave about it, so why

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and we'll throw in up to $600 when you open an account. oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. now save 50% on banners.

it is time for your monday edition of "street talk."

let's cut straight to the chase and talk steel. a bit of a hit for the ego from citigroup. >> two citigroup downgrading ak steel to a sell. pricing continuing to drop in hot-rolled steel. they are slashing estimates on both of these names. by the way, remember last week we hadordon johnson who made the great call on first solar. his best idea is to short u.s. steel right now. so gordon, you got company with the citigroup analyst. >> quote, unquote, he said it would be an amazing trade to short that stock. >> is it time to tune into tivo? it is soaring today on sentiments of its litigation with verizon. >> a big deal for tivo and its investors. the spat was related to its dvr technology, recording great shows like "street signs" and watching them again and again and again. >> what's wrong with that? >> nothing. >> with the commercials, by the way. >> verizon is going to provide total compensation to tivo, about $250 million. they are going to dismiss all

pending litigation. sorry, lawyers. by the way, just the latest in a string of patent settlements for tivo. way off its highs, you know. we'll bring up a longer term chart. good news for tivo. we'll move faster. >> one you need to know. you never apologize to the lawyers. they are doing very fine. thank you very much. >> cooper tires get the vote of confidence from deutsche bank. this is an upgrade to a buy from a hold. >> this may be the first time we've ever talked about cooper tires on this show. deutsche bank saying it's finding that all the concern about potential tariffs. a lot of tariff issues around tires, were overdone. the stock took a hit, and now deutsche bank is coming out and saying, you know what? we don't think it's going to be quite as bad as we thought. it got whacked last week. key corp downgraded cooper tires, ctb. deutsche bank riding to the rescue. >> boom, boom. >> the tire pun. >> i'm getting tired of your jokes. >> i know. i keep retreading the same jokes over and over again.

>> moving on to questcor, losing more of its value. >> talking about them every single today. got crushed last week in aetna said they wouldn't cover their drug acfar. now the government say nounsing that it's investigating the marketractices of questcor. i don't know who makes p pepto-bismol, i don't know, but you need some. >> whenever you say that's a master of the uniiers. >> he-man. >> could not go without talking about apple. down today on the iphone sales supposed missed. >> like the daily apple conversation. wall street expected the iphone to sell as many as 8 million yunts on its opening weekend. apple saying it sold over 5 million phones.

apparently that doesn't include pre-orders. so maybe they did hit 8 million. >> either way we're like literally hung on every word. saying we sold 17.8 million adopters than was short so everybody panics, i don't know. >> and there was a major concern over supply to the companies. and riots broke out at the foxconn plan in china. police were called in to break up the fight. they are the largest suppliers to electronics companies like apple and firms are not concerned whether they made products for the iphone 5 specifically. aside from that, as we say, supposed 5 miss, could the iphone 5 be a red flag? joining us now, how dare you for

all the people who worship at feet of alter? >> i'll leave the building now, thank you very much. my theory is that as exciting as smartphones are, they are becoming a routine device, all doing pretty much the same thing. the real excitement now is in the tablet arena. there are 7-inch tablets that are doing quite well against the ipad and alp itself is supposedly coming out with an ipad mini. these will catch the thunder in the years ahead, and smartphones will be something had a we always carry, but may not have to be quite as smart. >> you know, john, they say there are second acts in american lives, and i think apple has disproven that because it's not only resurrected itself. why rsht you so convinced at the iphone 6, iphone 7, iphone 2017 won't be just as hot? >> might be just as hot among

the non-iphone owners. the gene poll of people who would be converts is much greater than it is among people who would be upgrading like myself. i have a friend who can get the 4s. missed out on sirie which i think is the biggest advancements to iphones ever. he's getting the 5 now and is missing a generation. my point is we'll always have a phone, but the phone is just an pp. what we need a portable, powerful, big-screen computer which you can put in your become room to room, office to office, and this is where the mahler 7-inch tablets are really going to come in a their own. >> an implication story but not just for apple but for various other smartphone makes. >> google will come out with a line from nfc powered phones. the smartphone business isn't going away. we are all going to be called --

what are going to be called smartphones for the next five or ten years. i just don't think that they will be the center of the universe in a very short amount of time. >> sounds like you're saying it's becoming a commoditized product. it really is. i mean, the smartphone market now eclipses all others. feature phones are -- >> we should just call them phones because they are now phones. they are what they are. it's a phone. >> we probably will. i fall into that habit all the time. sometimes you need to make a distinction. these things are going possible powerful, cheap and why not have it doing crazy things, but the idea is the go-to device will be a tablet. apple almost telegraphed this by being first but detoured into the phones. the apple model is the quote, unquote model of the future. i think apple will sell more of

the mini tablets than they sell ipads soon. >> do you think a s&l on the same page in terms of their thinking and future strategy with the idea that maybe the smartphone age is over or peaking, and they are going to put more resources into tablets instead, or do you think they are behind the game on this one? >> no, no. i doubt very much they are going to cut back. look, the ipad is still an enormously successful line. there's no reason to cut back. i mean, they have $1 million that they can spend on r & n, anything. i think the greater expanding market will be in tablets and that's the thing that really animates and excites people pretty soon. >> you're on to something. forget oil. peak smartphone. think we're running out until people find the smartphones buried undernet something. >> and all the people with the

earlier versions of iphone will be throwing them at us. >> if you're around then. and jackie, what's on your radar right now in. >> i'm watching citrix and it's because morgan stanley said they are losing some of the talewinds that kept the stock propped up last year. that says immigration to windows 7 offers later phases and seeing more slowness in the corporate market with virtual desk top adoptions so this stock is getting hit today. back over to you, guys. >> thank you very much. forget apple. while you were sitting, america. another techistic has been quietly killing it. hitting a new high today. it's our mystery stock. >> wouldn't be it made to get 175 miles per hour. well, you could, with an electric car so why isn't

everyone raising out to get one? stick around. we're sitting on a bunch of shale gas.

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bond demand still so strong? when meredith whitney speaks, people listen. she will be here for an exclusive interview. apple shares fall after disappointing sales. should you actually be buying on this mini dip and which defense stocks will get whacked if congress doesn't stop the automatic cuts? first we head up the street to brian schactman. >> oil prices across the world is down today. brent versus wti down a little more. more concerns about greece and spain perking up. not a great meeting between engineer any and france and german business sector was weaker. here in the u.s. we closed the open outcry section of the nymex, off their lows but around 90 cents, off 1% to the downside. rex of the complex was weak. i want to focus quickly on natural gas. when you look at retail gas, everybody wondering if the big

drop-off in oil will translate to the retail space. we've coined. it goes up like a rocket, steve liesman says and down like a feather. gas prices are coming down but slowly. >> brian, thank you. sometimes here on "street signs" we struggle to find a disaster du jour and today it was peregrin pharma after announcing it released bad data to investors. peregrin has now given back all of its summer gains that were droifn by optimism regarding that drumpingt yes, folks, it's down 76%. >> we need a little dose of sunshine. actually we need a big dose of sunshine to counter that one, and it is, by the way, you're mystery chart of the day. did you know who it was? it is google and it's hitting a new intraday high, up about 25% this quarter. today tacking on another 2%. joining us is anthony

declemente, internet and media analyst at barclays. got to put it to you. we've been talking apple and what could take the potential shine on this supposed ever shining stock. is google going to be the one? would you rather buy dwoogle? >> i would. i mean, google is very attra attractive on valuation. the thing i love about google is you can play offense an defense at the same time. playing offense which is playing a growth trend which is real and significant and mobile. with android and search interestsing, youtube, double click, double valuation is attractive enough to look at it as a value investment, trade despite the good growth, and this is a chance in the future, sometime down the line google might return them to shareholders, but i think that stock will it be to work for you. >> will be or at an all-time high.

and i think all those people who love apple will kill me over this one. as you've detailed, google has a very big range of products out there. if apple, one device, gets hammered on one bad device, is it game over for the stock? >> well, look, i'm not here to talk about apple. a lot of google versus apple rhetoric out there especially with the apple maps app replacing google app. google has a more broader commercial service with regards to advertising. we see that more occurring as an equipment sales model, but with that ecosystem building out, not so many opportunities, not just phone, but in tablets where there's the nexus, the kindle fire hd, the samsung tablet, and as that lower end of tablets,

gets built up, that opens up a whole new e-commerce opportunity for google. most people don't think of google as a way to play e-commerce. look what ebay has done this year and look at the cpcs on tablets which we know are much higher than they are on mobile. what's happening is people on tablets, the ipad included, buying products and searching products and when you have that you have businesses willing to give big dollars to business. >> what happened to the map in july, all over the chart and then in mid-july it takes off. what happened two months ago? what's the change? >> it is an enigma to those of us who follow the stock because it's been such an incredible ride up here. i think some of it is technical because you've got a use of funds for google coming from other stuff in internet that's blown up so you've got stuff like the groupons and singas of the world and heading into year

end folks want to rebound their poll with something that's quality, something that is growth at a reasonable price, if you will, and so you see other big names in the internet that i think have been sources of funds for google so part of that is just fund flow. >> let's put the google pom-poms away for a second. what's the big et risk for google and its stock? >> i think there are a few. regulatory is certainly one. acquisitions are another, and i think perhaps even law of large numbers, as you get a decelerating growth rate. when you them trading at a discount to the market on earnings and free cash flow and areas of upside not priced into the stock, such as higher mobile cpss or a friendly return of capital. we think this one can keep turning. been overweight on it and a clear holding, and just because

they have had a great run there's definitely room to improve. >> all right. overweight, price tag $150. thank you very much. >> thank you. america's favorite 84-year-old surprise winner. >> and the chevy volt, 185 miles per hour, but is it enough for some? stick around. [ male announcer ] let's say you need to take care of legal matters. wouldn't it be nice if there was an easier,

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♪ it's electric >> the chevy volt should be a hit, right? mostly rave reviews. pretty good looking car. look at this. this is a photo from one of our producer's friend's volts showing the gas mileage she is getting. 175 miles a gallon at that time. wow. the new reports show chevy is heavily discounted to get it off the lots. toyota says it will dramatically scale back its electric car program. so, is electric mostly kind of dead already? phil lebeau joining us now. it's not the kind of story that gm wants us to tell, but the reality is that americans don't

seem to be convinced about electric and/or severely hybrid electric/gas cars. >> i don't think it's just americans. i think worldwide people are looking at the electric vehicle and they're saying, is this really -- is it going to pay off for us? is it worth the investment and development or worth buying one of these vehicles? here's the news from toyota today. that gentleman right there, he was one of the gentlemen who helped develop the hybrid, prius hybrid. he came out today, next to the toyota eq and they're scaling back their plans for electric vehicles. they're only going to make a few hundred of those eq models. we have some videos. originally they were going to have thousands around the world. now they're saying, you know, we're going to scale that back and we're not going to develop a second electric vehicle. why? because there are difficulties and they still don't think that the market is there when it comes to electric vehicles. clearly this is not good news for general motors and for nissan, as they develop the volt and the leaf.

you look at the volt. they sold 21,500 over the last two years. well below what they originally planned. when you look at the leaf, the sales this year have just been really, really poor, to say the least. 4,200 being sold. take a look at shares of all of the companies that we mentioned when it comes to electric vehicles. this is their performance year to date. you see toyota at the top. >> 4,200 leafs. i live in a liberal town in the northeast filled with millionaires on trust funds who drive a prius to ease their guilt. i don't drive one. prius as far as i can see in my town. i've never seen a leaf? who's buying the leaf? who's buying the volt? >> the volt is more widespread than the leaf. the leaf is purely electric. they're confined to the area they're driving. people in an urban environment, san francisco, los angeles, manhattan. those people are not leaving a

wide area. they're not driving across the country, brian. for the volt, primarily most of the sales for the volt are out in california. that's where the early adopters have been for this vehicle. i think 1 in 4 have sold out in california. the sales are primarily located out there. it's a wider base for the volt than it is for the leaf. so far at least. still, the sales have not been anywhere close to what these two companies originally promised. >> let's bring in jessica caldwell of edmunds.com. listen, we're not picking on chevy or toyota here. the volt, when i look at it, 46,000 bucks. yeah, you got some credits there. it's expensive. is that the main reason people aren't buying it or is it something else? >> i think whenever you introduce something that's a little off the norm, not something people are used to, i think they're weary. the car hasn't been out for years and years so i think it takes time for the market to adapt. certainly when there was favorable financing for the car, which launched in march, you saw

people start to be more interested. the sales started going up. certainly, the hov lane credit helps in california. i think it's something that will take time for people to get used to it. >> i would love to see a future where we're all drivingric vehicles, possibly even bicycles. nonetheless, what is it going to take to bring bakt love or just bring the love for electric cars? >> well, you know, i think gas prices certainly have been fluctuating a little on the high side. i think that is going to play a big factor. also if you look at just internal combustion engines, the fuel economy on those cars has gotten so strong. there's been so marketing around those cars and numbers, that people don't feel the need to go to an electric car. or they choose something they know like a toyota prius, something more established. >> brian, i think it's on the pricing side. i think people would be more interested in electric vehicles if the price was competitive with the standard internal combustion vehicle. all these cars getting over 40

miles a gallon and you're paying $19,000, $20,000, $21,000. if you pay $20,000 more, it's not worth it. >> what does it charge to charge up the volt? >> it depends on your electricity rates. it's far lower in watts per kilowatt than if you're in an internal combustion engine. people aren't looking at that right now. it's the molly payment. that's what drives people in this country. how much am i paying per month. >> bottom line, jessica, do you think there will be a bright future for electric cars? how many years is it going to take? >> i think that's the thing everyone cares about. i think there will be eventually but i think it's quite aways off from today. >> phil, jessica, thank you for joining us. after this, we are going to reveal america's favorite snack. might even be possibly australia's favorite. >> it's a song by the one hit

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