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tv   Street Signs  CNBC  January 23, 2013 2:00pm-3:00pm EST

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among public sector workers. due to lack of cash along states and cities and towns across the country. the unionization rate fell from 11.8 to 11.7 percent to u.s. workers. that's the lowest level since the 1930s. unions hit their peak in the 50s when one in three american workers belonged to a union. sue wbt market is very close to all-time highs here. >> it sure is. they would like to see a little bit more breath in terms of participation in the dow in particular. because a lot of the gain we are seeing in the dow jones industrial average is ibm. we should note the likes of disney hitting all-time highs. stocks are performing well but everything points out to me ibm. they would like to see more participation from the other dow component and's are all waiting for apple this afternoon to get the results, ty. but the dow is up 70 point. s&p up 1 2/3 percent. >> nasdaq has a long way to go
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before it gets back to its tech bubble highs back there in 2000 era. thank very much for watching, everybody. that does it for a totally unlip synced version of "power lunch." >> indeed. have a great afternoon, everybody. ♪ ♪ that's right, america. the question is why it is not earnings. no easy outs today. we will ask our guest to lay it on the table and what investors really love about america right now. >> apple earnings out with about an hour. does anyone make the bear case? they do and they are here. plus, five biggest apple product flops of all time. nobody is perfect. and is facebook making you miserable? not the stock, the site. a new study says, it may be by
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the sea shore, mandy? >> let's look at the markets. dow now up 9 at last ten sessions. this has not happened in almost two years. set at an all-time high, take a look at the vix, a fear of volatility, everything is fine, as you say here on "street signs." brings us to our next segment. is everything fine in washington? the house passed that bill to permit the government to keep on borrowing for about four more months. eamon jafers, the idea is to buy more time to get a budget deal right. >> that's exactly right, mandy. in the end, the final vote was, 285 to 144 so the measure does pass and what it does is two things. you are right, it buys time, kicks the debt ceiling back into may 19. that point they could borrow as much money as they like up to that point. after that they will reimpose a debt ceiling, they say.
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and suspect the pay of members of congress if their chamber of commerce hasn't agreed. politically wloo what it does is puts the debt ceiling fight down the list of political fights that are upcoming and it brings up the fight over sequestering. remember from the fiscal cliff. pe just kicked the sequestering back to the giping of march and political battle over spending cuts is something the republicans would much rather have as opposed to a fight over potential default on u.s. obligations in which they can be po portrayed as reckless. republicans liked it and voted for it but in the end the wlous says, it will sign the bill of the white house press secretary jay carney said it is not entirely perfect. take a listen. >> ideally we would extend a
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raise the debt ceiling for a long period of time. so that this is not a question. so that uncertainty that surrounded this issue of late because of the political jat ji that house republicans have taken will be removed or would be removed. >> so guys, get ready for another political fight here in washington over spending and deficits. but it is not a fight over the debt ceiling, it is a fight over sequestering. back to you. >> all right, eamon, thank you very much. it is patriotic wednesday here on "street signs." why not? american stock market has been taking names, lately. in fact, look at the global market over the last two years. china market, hong kong market, anyway. down. germany, only up 9% over two years. but look at good old u.s. of a., folks. that's up 16%. but let's find out why.
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joining us now is pimco head of corporate bonds, morningstar's 2012 bond fund manager of the year. he is man that when he bestrides the trading floor, they play america the beautiful, mark. we appreciate it. we know that stocks and bonds only go up for wrun one reason, right? so why have so many people around the world been interested in buying american lately? >> well, i think that's true of houses. you nailed it. basically the demand is sko exceeding the supply. inventory is a perfect forward looking indicator of where prices are headed. inventories and housing are collapsing. you only have 1.8 million homes for sale. in an existing inventory down 22%. we are at 11-year lows and basically what is happening is buyers are coming in. housing is a bright spot for america. what is the best way it invest in housing? the best way to invest in housing is actually to own the companies that will benefit from the rebuild cycle. these are lumber companies like
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weyerhauser. these are appliance manufacturers like whirl pool. home improvement companies like masco as well as building materials companies like usg. it is not that new homes will be built, it is also that they are hold. they will benefit from building new houses and refishish old inventory. >> the talk about the fed destroying the dollar and destroying the economy, people are still buying bonds. i know a lot of that is the fed. i get that. corporate bonds, a lot of demand there. we show viewers what u.s. stocks have been doing. what makes u.s. assets, housing, bonds, stocks, whatever, so attractive globally right now? >> well, i think it is just the need for income. investors are facing a world with where the fed is taking out a lot of the net issuance. and so as a consequence, investors that need stable high
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income are looking for had credit market. we see less value in the credit markets today. however we still see good value and he mention good housing. >> i'm going to follow up with another question like i did with housing. and how exactly do you invest in the energy market here in the united states? do you go forward, for example, as opposed to the commodity side, do you go for pipe lines, that kind of thing? >> yeah. great question, mandy. you don't want to take as much commodity risk. that why we do like pipe lines. the sector we like the best right now is called midstream master limited partnerships. these are the companies that gather a pros process and fraction. this is mark west energy. companies like plains, that is where the growth is. these companies are in the shell regions, mar shellis shale and permian basin. these will see double growth rates in the next few years. >> aren't public taxes supposed to destroy them? >> well, that is one risk on the
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equity side. we obviously are investing in the bond side and benefit on the bond side is that a lot of that free cash flow, we think is going to go towards organically delevering. many of the companies we are investing in, in fact mark west and targa are high yield. we see them going to investment grade and that the beautiful thing about bonds. those bond prices, believe it or not, can rise. even if rates were to rise. because of credit spread tightening. >> thank you very much for joining us. >> can i get one more question mark before you good? >> sure. >> since we are all jinglistic today. >> is there a country we are forgetting about? i point to my co-anchor. australia is doing well? is there a country doing well? >> we like the u.s. >> take that aussie. take it. >> okay. you like it a lot. but do you like it the best? back to brian's question. do you like it the best out of
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all of the -- >> vegamite or mayonnaise, lay it on the table. >> if you look at housing or energy companies, those companies see the fastest earnings growth of all of the company we follow around the globe. those are two sectors to invest in. >> got it, housing and energy here in the good u.s. of a. >> take that. >> take that. taken and beaten out back. good news on the boeing dreamliner investigation. phil lebeau is our man and i believe have you comment from the transportation secretary? >> ray lahood, along with the head of the faa, meeting in washington at arrow club luncheon. one of the questions to the second of transportation, the dreamliner is safe and later grounding tp listen to what secretary of transportation has to say. >> you know what? i'm not doing these hypothetical 2020 look backs. we did what we did and did the right thing. for the american people.
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and when we finish our review and figure out what happened, we will be happy to announce it. no postmortems. >> a few more questions. but basically what they had to say is this investigation is still ongoing. a couple of points, japan and since the battery is involved in that incident is not overcharged. flipping to what they say originally. they are testing lithium ion cells in washington and these investigators for the ntsb and boeing are running tests in multiple locations around the country. and it is clear from listening to comment guys in washington as you look at shares of boeing. it is clear from listening to the secretaries of transportation, they are that close to finding a definitive cause for what happened with the dream liner and clearing it, lifting the grounding from the faa. and time and again they said, when we have something to tell you, we will tell you. guys, we are going on one week now that faa has had a grounding in place for the dreamliner. >> right. and obviously ray loo hood is on
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the record saying he want to be a thousand percent, not just a hundred, but a thousand percent sure before anything takes off again. he sounded really angry, right? he really sounds annoyed. >> that's his blunt style, mandy. i don't think he want people coming back to him time and again. and he said, listen, when i said it was safe, i believed it was safe. then there was an ins den in the air and that incident in the air prompted the faa to say, ground them until we find out exactly what is going on. >> i think i know what keeps him up at night. thank you for the latest. we will keep watching that story. >> on deck, well lay out the bear case against apple. yes, we dare. three reasons why the bull run may be done. >> plus, the bad apples. for goat tforget the iphone and. we are going to see some of apple's biggest bombs. >> and why social media sites may be making so many of us miserable.
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we're going to dive into it when "street signs" returns right after this. go, america! ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ [ male announcer ] when we built the cadillac ats from the ground up to be the world's best sport sedan... ♪ ...people noticed. ♪ the all-new cadillac ats -- 2013 north american car of the year. ♪ for a limited time, take advantage of this
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apple is trading higher ahead of its earnings but has had a rough start to the new year. it is down nearly 4%. and it is really got some of us rethinking the case against apple. john for te breaks it all down. give us the head winds. give us the tail winds, john. >> the argument goes something
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like this. smart phone penetration tapping 50%. growth prospects are weak. to compete at the low end and emerging markets, apple has it crank out cheaper iphones hurting margins. this quarter we will get a good look at how this three-part thesis holds up and so far there are cracks in at least parts of it. apple's android rival does not seem to add up. apple's old iphones, 4 and 4s outsold all of verizon's android phonee phones. the remaining questions from this thesis, can apple penetrate emerging markets with its current lineup and are developed markets saturated in the commentary from chienda's sales and march quarter guidance should go a long ways to putting those to rest.
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>> we will bring in paul hickey. co-founder of spoke investment group. all right, paul, i will ask you to do something that is probably danger us to your own personal safety, but that is anger much of the audience. how can you make a bear case against apple stock? >> well, what i was outlining is what the bear arguments are against apple. i think john just actually got into refuting some of them here. the samsung commercial for the galaxy is a great commercial. makes apple seem like a very uncool product. but the results and data that we do have from verizon shows that it is just the share, continuing to gain share and also the greatest share increases in the last quarter. more importantly, though, we performed a recent study of over a thousand smart phone users. and what we found was that there is still fierce brand loyalty towards apple. we look at the current period as well as looking ahead to future upgrade cycles. focusing on the here and now, apple share, very strong loyalty
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and you know, share continues to be strong. >> you can certainly see in the analyst community, right, in one of your fantastic stats, you note that average analyst price target has fallen about 4.6%, and the stock has fallen about 30% from its high last year. >> that may not be such a comforting factor. but within the s&p 500, apple has the largest gap between what analysts are currently forecasting and the current share price. but the stock here, you know, the maturity market saturated, like john was bringing up earlier, you have the whole world to look at. the hyper growth in the u.s. may not be that growth rate is slowing and may slow in quarters ahead. but apple still continues to gain share and maintain its share. and just as one item of its brand loyalty, regarding tvs, you know, there's no apple tv
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out yet but 25% of the people we surveyed would pay more for an apple tv than a comparable tv from another company site unseen. >> part of that is that apple is not that great at making money after the sale. so after i get an iphone or ipad or whatever, apple is not that great at selling me great services to keep me paying into the eco system. eventually they need to get better at that. we haven't seen it yet. >> john, is it me as a long time apple user, or are they stumbling lately? the new itunes is effectively unuseable. i can't find it, i finally find it, sync up and it crashes. i never add problem the last five years i used it. there is lightning charge offer, and people are ticked off about that. i'm pointing at smaller things but these are not stumbles we
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are used to seeing. >> you even left out maps. >> good point. >> my issue is with itunes is that it is for the pc era. built for the era where you plug your phone or ipad into the computer. you add hard drive to fit all your tunes. right now a lot of players, amazon google are moving toward cloud streaming of music on to devices. i use that on my phone because i don't have enough storage it hold my whole music collections. itunes match is not a good enough solution. we need apple to innovate on services like that moving forward. >> you bring up a great point. one thing in the survey is that itunes, of con susumerconsumers lice lose losing to sites like pandora. >> maybe i'm getting old.
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i can't go back to the old version now. >> yeah. it is very frustrating. >> i'm wondering as well, paul. this isn't scientific. is it purely anecdotal. it is suddenly cool to hate on apple. that what happens with gadgets. everybody i know has an iphone, ipad and various other i product, right? then once that happens, people move on to the next cool thing. do you think? >> true. but as john's previous report, the iphone 4s is outselling any android phone. so the old apple models are doing better than the android, says that the competition doesn't have anything much better at this point. >> there needs to be some good competition. >> i tell what you, i got a tester version of windows 8, that's the best phone i've ever used. i'm not in microsoft pocket, they sent it to me as a tefster. nobody buys it.
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it is big screen, tiles are cool, once you figure them out. >> we live in a bizarre world when it comes to phones. remember, ten, 15 years ago when apple had this great hardware but not the eco system, didn't have the software, so people didn't buy maces. i think it is reverse now. htc, samsung and nokia coming out with nice phone hardware. especially if you like good cameras. but they don't have the app eco system yes. the question is, can they figure out a way to break that jam. >> huge expectations built in. quick question here paul, you are great at doing stock price histories. they tend to low ball, right? it is possible they will do it this time around as well. what happens to the stock price of apple when they return? >> well, the stock, what will happen once they report, you know, the initial after hours reaction depends on the report. but if you're not in on the
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stock eenither way, if it gaps strong tomorrow and you want to play it, apple plays down to the next day whether it beats or close. it is one of those names, if you're in on it and it gaps up, great for you. but it is not a name you really want to chase. >> thank you. >> got it. >> speaking of hating on apple, giving enough money, i feel like can i do this. not every launch has been a hit. remember these? how about the apple gaming console from 1996? how about the apple quick take camera? holding eight photos. onor this, motorola rocker e1. yeah. 2005 hp held a hundred songs. sold about a hundred copies. and this. apple lisa. $10,000 computer that effectively did nothing. >> 1983, yeah. >> first gen apple tv. it was neat when it came out until you realized you had to
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wirelessly sync everything in your home. and to sync a two hour movie did -- >> how long would it take you? >> about eight hours. >> not really worth it. >> you want me to add to that list? >> i don't have anything to add. anyway, few more product -- >> let's not get into religion. >> devices put to very interesting usees. scared of dining alone? there is an anti-loneliness bowl. easy to surf twitter, facebook, see what you are missing out on while you slurp your soup. and this, a potty with a place for an ipod. not sure how this will toilet train your tot. but you can coax them along and say, you can do it now, they can at least watch the wiggles at the same time. >> technology and tablets are much better than parenting. you should never engage your
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child one on one. never actually talk to your remember. remember that, folks. >> the electronic baby-sitter. keep an eye on the s&p 500. next up, herb's red flag. under the radar earnings headlines of things he said you need to pay attention to, that slip through the cracks. >> will the competition derail its run? we will talk about the netflix threat coming up. >> and also be sure to check out our davos blog. our team giving you all kinds of behind the scenes access you won't find anywhere else. basically maria and andrew and the big crew out there doing what they do. check it out. davos.cnbc.com. [ wind howls ]
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welcome back. i'm bertha coombs. we are watching valero spike. it is boosting its dividend to 20 cents. guys, we had a very busy december with a lot of accelerated dividends. we are seeing companies starting to give money back it shareholders this month. >> thank you, bertha. did you know it is national pie
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day? with a pie council? yeah, there is such a thing. declaring this to be the day to celebrate all things pie. a million dollars in pies are sold in grocery stores every year. that does not include restaurants, food services or price clubs. only grocery stores. everyone has their favorite. mine is an aussie foreign 20-meat pie. the most popular is apple. and next is pumpkin. which dot us thinking, who ate the biggest piece of humble pie? lance armstrong or beyonce for lip syncing at the inauguration or manti teo? >> let's talk about david iron horn, one of the most successful hedge fund managers in the world. however, he did not have such a hot fourth quarter.
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the green light here at cnbc shows his investors add lost of about 5%. actual actually, the net loss was about 8%. dl was something inside that that got people confused. sort of made these puns on his investments, saying the coffee was too hot. he is talking about green mountain. he shorted that. he mentioned something about iron supplements, not performing, which because einhorn was on a herbalife call, what, three months ago, got us thinking. is this another clue? he is short herbalife? or iron ore, which he is apparently iron short. >> how come he can sea herbalife, and i can't. >> because he is here. >> at your age, i better give it back. >> are your supplements going down smoothly, herb? >> my supplements are going down
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smoothly. >> or is it just iron ore supplement you're taking. >> am i turning red? here is the deal, when this came out earlier today, this sh classic wall street. why david einhorn is the one we talk about on this is beyond me. we talked about rumors that maybe he was shorting soda stream but no one really knows. if you were here when they mentioned it on fast money halftime, i like stopped in the news room and said, no. because nobody can know exactly what he is doing. and as a turns out -- >> and does that on purpose, right? with this little cryptic, my apple is bruised. or iron ore supplement -- >> we know he is short green mountain because he made a presentation on it. but we don't know where he stands on herbalife. fourth quarter of last year, had he been short, he would have not lost money because during that quarter. so you go back and look and in october he made a big presentation on iron ore going straight up in his face.
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this is from wall street right now, go over it all the time. rumor services come out and try to interpret this and stocks move on it and it is just -- >> maybe much ado about nothing. >> i agree with you and i think is at iron ore reference. you say he was short iron ore. however i will say this. it is more than -- it is a little more than a rumor in the sense that he did get on the conference call at herbalife. we know it was him, right? it wasn't one of his junior analysts. sew was interested enough to ask some questions. >> right. but then after that, when we -- i think the conference he was making a presentation, everybody thought he was going to talk about herbalife. what does he do? he comes out and he talks about a symbol, mlm. as in multilevel market be. because he talked about martin marietta. the guy is extraordinarily cagey. big poker player. >> great poker player. >> where are we sitting with the
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herbalife back and forth with the battle of the hedge funds here, what's the next step? >> next step, we are waiting for, herbalife, do not pronounce the h -- >> why do you care how she pronounces it? >> i do care. >> she likes meat pies, leave her alone. >> the next thing we are waiting for is for bill ackman to come out with this list of questions because they like toe give questions. >> when is that going to be? >> we don't know when that will be and people are waiting for herbalife, too t.o., if they are going to do it, sue bill ackman. because that's what companies are hitting. that's where we go next. and where is -- >> and this is a great lesson. because we like it dive in to the quarterly filings for hedge funds and try to gauge with these guys and women are thinking. even the best investors in the world make mistakes. >> they get it wrong sometimes. >> ackman may be horribly strong -- he may be right, we don't know. david einhorn, famously destroyed the florida land
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company st. joe. came out, a couple years ago, and said, st. joe, showing pictures, empty houses, no one is buying it. the stock is above where it was in october 2010. even the best investors will make mistakes. >> which would would you back? >> based on everything i know about this company and this industry, herbalife and multilevel marketing industry, i would say the best research on it and best conclusions are by ackman. because i think he did the research and his think his research suggests there is st stigistig significant issues in the industry that must be suggest. >> you guys may have talked about it yesterday -- >> that's okay -- >> trying to get my finger stitched up. didn't work out. >> the issue is you wouldn't be short one and long the other. this is 7b a classic trade in an industry where one is better than the other.
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it just doesn't make sense. >> thanks, herb for talking on herbalife. it is near session highs and it is within striking distance of that 1500 mark. as i also mentioned at the beginning of our show. vix is low and a lot of calm and complacency. coming up next, herb, you are getting a victory lap. we will give you one, despite the fact you've been a little testy today. >> me, testy? >> we will talk something on street talk that we talked about yesterday. we will talk about it again. >> the cnbc realtime exchange market snapshot is sponsored by interactive brokers. tdd#: 1-800-345-2550 when i'm trading, i'm totally focused.
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okay. street talk time. we are getting some big stocks of the day. first of all, i would like to
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talk about google. >> yeah, stock up 6% here. by now, you know the numbers right, pretty good. i want to give you more of the analyst commentary. citigroup raising target to 830 from 800 so they see a bunch up side there. cantor fitzgerald trumping citi. they raise to 900. they see $854 upside left on google. however, one point to watch. oppenheimer says the upside largely driven by taxes and interest income. concern about nexus margins. >> okay. as we is can say, gain over 9%. coach is moving in the opposite direction and then some. disappointment here. >> tell me what you think is wrong, this is your kind of store. what's happening? >> you know, i was reading commentary and i think they were disappointed by the performance in mother america and european market.
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other than that, national sales are going quite well. i think the problem here is handbags. the handbag store, maybe around 300, $400 point range, but to try and retain that brand, they refuse to cut prices. and they've got a lot of competition. places like michael kors for places which are discounting, and they are not discounting because they do not want to hurt their brand. >> nobody goes there any more. too crowded. >> too crowded? >> yeah. that seems like what is happening it apple as well. by the way be analyst on squawk balk said buy coach. it is a buying opportunity. >> there you good. >> okay, let's talk about cree. >> okay. >> it is booming. 15 million above estimates. >> also, sales of 14% higher than prior yeaarte 304 million. very good gain for cree, on a
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spree. >> there you are in the wings, herb. why don't you come in. you said it has the potential to become a battle ground stock today. >> hold on, hold on tp. >> it is surging. >> this is -- >> up 9%. it keeps selling da vinci robotics, in europe, despite concerns about europe. and up. but i will give you props on this, herb. this is a name people have been betting against for four years. >> more than that because i was probably raising flags over it five or fix years ago. and what i didn't get right is they were selling so many of these molton dollar plus systems. hospitals today have them. lots of hospitals had to have them. i mentioned yesterday, battle ground stock, battle ground is not done yet. i would expect to see over the next quarter, two quarters, continued sort of like head butting. >> if you've been waiting for that, you've been burned.
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people have been waiting -- >> people bearish on this can be very early and get run over. but i can tell you the amount of research done. seen the number of bearish reports on it. are very interesting. worth watching. you want to pay attention. >> objection. potentially a battle ground stock. we also have joy global, i don't think they have too much joy in their stock today. it is moving to the down side. do we have the chart? >> this is an interesting story falling through cracks. i think you want it watch this because the company made an acquisition over the last year. the company called international mining machinery. this is a chinese mining company. the concern among those pointing this out on wall street is, the same people controlling this company are the people who controlled the caterpillar chinese mining company, era mining, which late friday caterpillar came out and said, i think they are writing off 83% of the company. the question is, and by the way, they said they were multiyear accounting misconduct was found
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there. so the question is since you have similar controlling people, is there an issue? and by the way, i want to point out, i did contact joy. i did not hear back. >> just a quick aside, the thing about china and our viewers know, i have been bearish on china for a long time. figures keep soaring. you talk about mining, folks, look at something like energy usage. look at other things that don't seem to mesh with the economic top line numbers that we're getting. right? car sales up but gas is up. >> it is that kind of stuff that drives people nuts, not only china but joy globe. >> and given you are talking about potential accounting issues. is there an issue here in i don't know. but pay attention. that's why the stock is moving up earlier today. >> next flix comes out after the bell today. and joining us now on netflix,
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since the last report, julia, the stock is up nearly 50%. there is a lot built into the stock and we are calling it the come back kid. but is it really? is it real, this come back? >> we will see what earnings yield. but there is a lot of focus on the screaming numbers. you mention heightened expectations and it all comes down to the hope that netflix's investment in original exclusive content they struck a huge deal with disney as well as another one with warner brothers television. there is this kpek expectations and international netflix will work it the expansion and well see how it plays out in terms of the streaming subscriber numbers. >> so, do you think that we've kind of reached the saturation point domestically in terms of the subscriber numbers? some feel if they want to expand or grow, it has to go international. >> well, there is a lot of talk about netflix internationally.
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but we have to remember that netflix is competing on the same plain as hbo or show time. they are competing for the same tv window. if they can get disney's movies in a window usually reserve ford starz or show time -- >> but that isn't until 2016, right? that deal with disney. >> it isn't until 2016, but they will get some disney content right away. and new warner brothers content. they just inked that deal a few weeks ago. so they are hoping that people. saying with do i want it pay for hbo or netflix? and the other thing to remember is that netflix is investing in owe ridge no original series. they have kevin spacies's series "house of cards" and they want it to work. >> they do want it to work. >> i'm glad they don't not want
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it to work. >> crude oil meantime, near the lows. sharon, what is happening? >> u.s. oil prices are $1.45. just above $95 a barrel. but we are seeing in even greater move in the spread between brent and twi. futures. blowing out about $2 or so just in the last hour or so. reports are that key pipeline that oil mark set focused on, that had raised its capacity, expanding capacity to 400,000 barrels a day on january 11, now there is a log jam where the oil is going to. it is going from oklahoma to texas. there a log jam. it is reducing deliveries as a result. with supplies at a record level, this is very bearish for the marketplace and we are seeing the results. >> thanks you. next up on "street signs,"
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you are probably feel going if you are a facebook investor who bought over the last couple of weeks. but you are probably feeling down in the dumps if you are a facebook user. >> and later on, all out after twitter over justin bieber, lady gaga and botched frisco. find out why when "street signs" returns. ♪
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coming up on closing bhel, coach, by far were worst performing stock on the s&p 500 after disappointing earnings. ceo lou frankfurt will join us. sitting here at the big board. tell us exclusively what went wrong. also, don't miss marie yeah exclusive with jamie dimon. talking everything from the health of housing to financial regulations. and then all eyes on apple when it reports earnings after the bell tonight. full team coverage of the numbers and instant analysis coming up as only we can do it here on closing bell. michelle and i will see you at the top of the hour. >> we are looking forward to it. thanks, bill. masco and home depot are all riding the home improvement craze. i think one of the biggest vote
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to confidence for the housing recovery and home improvement boom is lowe's. they will hire 45,000 seasonal workers for the spring season. that really does it, doesn't it? >> it absolutely speaks to this semi boom we are seeing. scone tributing more than even no new home builders p. this remodeling become coming back just after the housing market recession. remodelers took a big hit. now seeing more people take advantage of the very low interest rates. refi boom we are always talking about, a lot of that money is going into houses like these and again part of it is what we are talking about yesterday in that there is very little supply of homes on the market to buy. a lot of these folks went up to do better and couldn't find anything so decided to sink the man into their own homes. >> we have to leave it there but thank you very much, diana. up next, on-line envy. how social media sites like facebook and twitter are apparently making us a bunch of miserable sobs. >> that is why i am not on
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shares of neighbabors after have upped their stake concerned
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about underperformance of the shares. this morning morgan stanley, they talked about nabors as a possible m & a partner. >> look at that pop. thank you very much. is social medium making you sad? a new study says users of facebook may have feelings of jealousy or envy after reading posts about their friends or the latest tropical getaway or whatever, but social media, as we know is here to stay. social media stocks have been on a tear but should we unplug to save ourselves? let's bring in dr. janet taylor, community psychiatrist and our own herb greenberg who probably needs a psychiatrist. >> he's been tweeting all the time you've been speaking. >> please, make me feel good about this tweet, america. >> dr. taylor, add some sanity to this. >> facebook and freud would be really proud. but the reality is that if you're jealous and it affects your mood, we have to
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distinguish between being depressed and if you have down feelings after seeing your friend's pictures, get a life. >> if you see your friends posting something sad or negative about their life, to what extent does it make people feel kind of like good about themselves, a little bit of schadenfreude? >> if they are your friends and they are sad, you'll pick up the phone to comfort them but to be envies or sad or depressed because their life seems so much bigger than yours really borders on really examining what's going on with yourself. >> what is the psychological reaction when someone likes a post? >> i've read that some people get addicted to it chemically. >> exactly. the brain likes reward so if someone likes your post and your picture, that's a signal for you to put on more posts and more pictures. >> do you actually have a physical chemical reaction? >> absolutely. that's how the brain works. i mean, the brain likes -- like you're tweeting. that's a reward to you. the brain drives us so if you
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get a like that encourages us to do the same behaviobehavior. most don't post when we're down. let me show this great picture, i'm on vacation. >> a lot of people create a fake impression of happiness, they don't want to create anything negative about them, life skiing, tropical holidays, hanging out with herb. >> you describe the things you do. >> i hang out with herb. you just got back from skiing, going to holiday. >> i think the biggest problem with social media that i find isn't -- isn't what you're talking about other than i will say it can become addictive and hits the addictive part of you, so, you know, you want to share and keep sharing things. you know when i feel worse? i feel horribly when i'm on facebook and one of my friends from san diego is -- it really makes me feel badly. they are posting the beautiful sunset or sunrise or something at one. beaches in san diego today when it's cold here. >> you have fear of missing out. >> what is this doing to our youth of today? >> even though you feel i wish i
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was there, but you move on to the rest of your life. >> maybe you do. >> maybe you don'ting right? but they stay so focused it interrupts their option is and that's the point. >> quickly, we're a stock market show so do we get to the tipping point where people get off these services because they are. >> our military serving overseas, facebook posts can upset them, as tough as they are and they get fatigued because they can't control it so in some cases do you have to mob tore yourself. >> get a life, as you say. by the way, if -- are you a belieber. justin bieber has overtaken lady gaga to have more followers on twitter. >> he must feel miserable. >> must be a real sad guy. does lady gaga feel worse that she has been surpassed? >> fear of missing out? >> coming up next, in honor of
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