tv Power Lunch CNBC February 13, 2013 1:00pm-2:00pm EST
1:00 pm
serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet, or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. see your doctor, and for a 30-day free trial, go to axiron.com.
1:01 pm
in facebook and out of apple, take a look at how stocks have responded. facebook is higher. you can see the move of when we set it on the air, higher by nearly 3%. apple is lower. it was already having a tough session as it was. final trades, john? >> xlms. buying the calls. >> murphy? >> tyco, tyc, a lot of buyout coming. own tyc. >> dr. new world? >> time to take profits on 3m. >> already? josh? >> i would say hold off on new longs here. if you have something with an obscene long here to date. >> catch up with "power right now." >> halftime is over and the second half of the trading day starts right now. >> oh, how i wish i had obscene gains. i do not. dow is down but the dow member
1:02 pm
general electric is up better than 3% at 2333. more than four-year high. selling its universal stake to our know 100% parent, comcast. is it time to go in now on ge? we'll discuss. and america's cyber threat. it is a big one. but the president unveiling his plan to prevent hacking on american businesses. top cyber security firm will tell us what it means. condos and apartment values went way down during the housing recession. but that is changing. we will tell you who is making apartments, rentals, red-hot again. simon hobs in for sue at nyse. hi, simon. >> sitting down below just 14,000 on the dow but s&p is hanging in thereafter earlier we touched an intraday level we've not seen since november 2007. importantly, let's just recap on how we got here. in the last -- in the last ten months, the market has risen
1:03 pm
11%. what do you think were the top three sectors that drove us here? one, telecom. look at that gain. financials, you know about that, also done well. what do you think the third sector is to have driven us this high? in fact, it is healthcare. driven by the carriage of safety and stick of the feds with ultra low interest rates and what stock really stands out? home depot. doubling in value. more or less, over the last ten months. the chart doesn't give you the full flavor of it. but tyler, you see where i was heading, back to you. >> thank you so much. we will be back with you throughout the hour. ge, one of the big drivers. stock, four and a half year drive. selling its stake to this tv network's new 100% parent company. that, of course, is comcast. you see the shares of general
1:04 pm
electric up 3.5%. you see jeff's conference call. hey, mary. >> hi, tyler. timing a and price of the deal was right. selling nbc universal will allow ge to focus on growing core industrial businesses and te its over all strategy. >> just gives us the ability to reward investors, reposition ge capital, reposition industrial drive margins. lower cost to investment growth and you know, continue to keep focused on increasing the industrial mix. >> ge doesn't see the sale hurting earninges. there are stock buy backs and accelerated restructuring, reaping more than $2 billion in cost cuts that ge targeted before the deal. in fact, cfo keith sharon says cost cuts mean ge's growing industrial margins by 70 basis points will likely be increased. now with cash from the sale of
1:05 pm
ge -- from the sale, ge planes it buy back $10 billion in stock putting the goal of cutting shares outstanding to under $10 billion within reach bit end of 2013. aier ahead of schedule. its strategy will remain focused on smaller bolt-on acquisitiones with low execution risks. while ge capital can ramp up sales of the right price with. another added benefit says the sale releases the risk of entertainment industries, risks he said were not core to ge. back to you, simon. >> yes, indeed, mary. let's bring in steve woliker on the phone. he covers ge. they have access to $75 billion in cash over the next two years. that's almost half, more than half, of apple's cash pile. what do you think of the stock? >> by the way, more than some country's gdp as well. when you think about it, that
1:06 pm
amount of cash, a lot of that has to do with ge capital. what they are really creating here is something like 40 to 50 billion depending on how you count the cash on the industrial side. some of that is spoken for in debt pay down. some of it is spoken for in dividends. buy back mentioned. then that will leave 10 billion or more for m & a. i think the stock, when you think about it, they have replaced the earnings with other things and that's really the buy back and restructuring. they have become more dependent on the ge capital side of earnings until they execute that m & a. then you look at it and the stock at $23, you are paying more than 50% premium to tangible book on capital and something like 16 to 17 times this year's industrial earnings. that gets you to about 24. so something fairly priced at this level, albeit, a fairly strategic move. >> thank you, steve.
1:07 pm
steven winoker on ge. >> the demand wasn't good. i'll give you the grade in a moment. 24 billion. not 21 billion. this package is bigger than the normal 3, 10 and 30s. the wi was 2.04 over 2.05. the bid to cover, 2.96 auction average. th the directs were heavy at 24.2. i gave this one a c minus. i probably should have given it a d plus the way it tailed off but we a bid to cover this low in november. it is a wide spray of bid to covers over the last 15 auctions. a lot of val tilt there. c minus. back to you. >> could have been a d plus. thanks, rick. jack lou came out swinging at senate finance committee.
1:08 pm
eamon tehrik-e-jafriaeja eamon l hill. eamon? >> they are still going strong in the finance committee. some of the toughest questioning though on what's been a wide range in hearing has been focus owed not jack lew's invest many in the cayman islands. he said he had the opportunity to invest in this because he was an employee of citigroup at the time and take a listen to how he responded to kwet. >> i invested in the fund as an employee and i divested from the fund when i was considered for the office of the government ethics offered divestment. my investment was very small in the sense that i took a loss when i sold the investment. >> now, lew was also asked about the hot button topic of the day, that is cyber security. he said he favors the
1:09 pm
president's proposal and he would look forward to legislation on cyber security. that is a hot topic today. we have seen a wide range in reaction from different business groups in town. some oppose, some in favor, some have a middle ground approach as they debate the issue of whether the government should get into private sector security consulting in effect by advising them on just what the cyber threats are to their networks. tyler? >> thank you eamon. eamon javers reporting. let's talk about how vulnerable we are to cyber attacks. could t larry, what do you think? are these executive orders going to help in any meaningful way sni gather they are rather voluntary in some. >> they are not voluntary in the sense that government agencies are going to have a number of things that they have to do from
1:10 pm
the private sector side. they are largely voluntary -- >> the private sector side where an awful lot of the biggest risks are in financial services. power grid, water systems, so forth. >> absolutely. what this is going to do, however, is direct the national standards technology institute to develop a framework of minimum standards and then those will go to the regulators who will try to get the entities that you just mentioned. power grids, banks, et cetera, to come up to the new minimum standard. there may be a regulatory bite coming down the road. >> i will get some sense, i was at a panel discussion the other day where one of the top ceos in the electric utility business said that thing that he worries about the most of anything, is his company's vulnerability to cyber attack. i want to you pinpoint that and tell us, are companies doing enough to protect themselves
1:11 pm
today? >> a lot of companies are. but not every is and we are dealing with an interconnected system. even if i'm secure, if i'm interconnected to your system and i'm not, that makes our system less secure. so we need to develop a sustainably secure system, not just sustainably secure companies. that's more difficult. the big problem is not really technological, it is economic. we know a great deal about how to secure the systems and we are currently not doing it. those are mostly economic issues, not technical issues. >> some proposals i have seen would give a blanket immune it to liability lawsuits in the case of the company that had a breach of security and someone was injured as a result of that. how do you feel about that and doesn't the threat of being found negligent and therefore responsible for allowing a breach to occur, isn't that exactly the kind of penalty, the
1:12 pm
kind of free market penalty, that might force more companies and industries to do what they need to do preventatively? >> yeah. i think the difference that we might have on that is the fact that you have suffered a cyber attack and in fact have your system breached does not indicate you have been negligent. a lot 6 these really sophisticated cyber attacks are the nation states sorts of attacks. department of defense stated this very clearly. and the notion that any private company would be able to put up an adequate defense against a concerted nation state attack is not an indication of negligence. the attacks are so so fistcated that it goes well beyond the defense that a system would put in to take care of themselves economically. we need the new order which is what the executive order calls for the new system of incentives. perhaps a number of other streamlined regulation advance
1:13 pm
permitting better use for example to solve the economic problem so that we are investing more to upgrade cyber security beyond the commercial level to the national defense level which is what is required because as i said, we have an interconnected system. >> it is a national security issue. i take your point on the negligence liability thank. thank you, we will talk to you again, i'm sure. simon, we go down to you. >> let's remind everybody that cisco systems is off to the bell. the street is looking for 48 cent gain on revenues of $12 billion. networking giant had a good run over the past three months. up about 25%. currently trading, as you can see, unchanged on the session overall. and on a programming note, cisco's ceo, john chambers, will be on closing bell to discuss the earnings at 4:00 eastern tonight. that's first on cnbc interview. more immediately, let's get a
1:14 pm
market flash now with josh lipton. >> new position from well known investors, leon cooperman, filing a 13f. here is what we doesn't like. apple now completely out of that name. apple shares down on that news. although not clawing their way back. here is where he is, finding opportunity. new positions in facebook, some 3 million shares of the social network. that stop popping. three million shares and we don't know fe wears the footware but mr. cooperman does like the stock, crocks some 2 million shares there. tyler? >> josh, thank you very much. apartment rentals are one part of the housing sector that are truly red-hot. diana has more. diana? >> tyler, for a reason you may never guess, hint, there is a reason i'm doing this story around valentine's day. stay tuned to "power lunch."
1:17 pm
deer reporting better than expected earnings. biggest farm quick maker, farmers are gearing up to plant the biggest corn crop in u.s. history following the worst drought in the middle west in 56 years. but the stock of deere down at 91.12. simon? >> tyler, let's move over to housing. applications for mortages dropped. that's because interest rates are rising.
1:18 pm
rising for the fourth week in a row. despite one already hot part of the housing market just keeps gaining steam. an for reasons that you might not immediately guess, diana joins us for more on that in washington. diana? >> simon, as the housing market recovers, we should see more renters turn into buyers but that hasn't been the case and one major reason is women and a huge change in their relationships with men. what am i talking about? okay, listen, ten years ago, the number of men and women in college was about the same. today, there are 4 million more college educated women than men in college and in the work force and the disparity is just getting wider. >> now you've got this massive 4 million-person gap and what we find is, unfortunately, it is created the issue of lack of suitable partners. >> now that lack of partners has caused a huge drop in the birthrate. fertility down 8.5%, just since 2007, to the lowest level in recorded history. yes, it usually drops during
1:19 pm
recession but also usually turns around 18 months into recovery. we are now three years into recovery without that turn around. >> it is creating a situation where we are seeing continued delays in family formation rates. and one of the biggest drivers for why a household buy a single family house as opposed to staying in a rental apartment is, honey i'm pregnant factor. >> right now, just because of how demanding my job is, and because there are a if you things up in the air, it doesn't make sense for me to own a home. it seems like that would take up all of my spare time. >> now one more fun fact, 41% of births today are occurring to unmarried mothers. and by and large, unmarried mothers do not want the hassle of homeownership. they just don't buy. simon? >> diana, thank you.
1:20 pm
let's get another market flash with josh lipton. >> quick headline here on time warner. we want to bring you, fortune is reporting that time warner is in talks to sell time inc. publishing unit. there was activity this morning in time warner shares. stock up about a half percent. again, fortune reporting that time warner is in talks to sell time inc. publishing unit and we will bring you more news as we get more on that headline. back to you guys. >> possibly no more time in time warner, my old home. my goodness. >> stricken carnival cruise ship is being towed to port in alabama, and couldn't be fast enough for most passengers on board that craft. nbc's janet shamly, janet? >> still 24 hours away of reaching the port of mobile, where we are. there is an announce many about the future of this ship. well have more when "power
1:21 pm
lunch" continues. >> coming up, power pitch. start-ups that give us their 60-second pitch. >> hi, i'm ken griffey jr. munson, i'm owner of symcat. >> how do you acquire customers? >> do these found verse what it takes? >> are you in or out on symcat? >> stay tuned to find out. [ male announcer ] i've seen incredible things. otherworldly things. but there are some things i've never seen before. this ge jet engine can understand
1:22 pm
5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ ♪ [ 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. ♪ is moving backward. [ engine turns over, tires squeal ] and you'll find advanced safety technology
1:23 pm
like an available heads-up display on the 2013 lexus gs. there's no going back. on the 2013 lexus gs. today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers. after shedding jobs for more
1:24 pm
than ten years, our manufactures added about 500,000 jobs over the past three. caterpillar is bringing jobs back from japan. ford is bringing jobs back from plex co-. mexico. and this year apple will start making maces in america again. >> in fact, apple, ford and caterpillar that got a shout out from the president during his state of the union speech last night. no great shakes on stocks during the response of today's question. but the president making gun control one of his biggest priorities in that speech. as expected a very climactic emotional part to the speech. but in fact, the run up to this only increased gun sales and ham top pearson is at the blue ridge arsenal in virginia. hampton? >> simon, the morning after the president's emotional plea at the end of the state of the union message, the headline here is is that the spike in gun
1:25 pm
sales after the new town tragedy, it is frankly continuing. bottom line, people who already own guns are buying more guns out of concern that some weapons in the future might be banned. biggest demand for ar-14 rifle and glock 22 handgun. if they can get them at all. >> how big a backlog, how tough to get? >> we are usually we would get anywhere from 10 to maybe 20 guns a week, as far as ars. now we get about one or -- probably one a week if we are lucky. >> fbi background checks reach record levels in the last two months. december, topping 2.78 million, all time record. january, just under 2 million and one more than any other previous january, turning to the earnings for smith andes with w and going forward when they
1:26 pm
report in a few weeks, expectations of still more record profits going forward. tyler, back to you. >> hampton, thank you. an engine fire left a craft adrift in the gulf of mexico. carnival says the impact of this and other disruptions will shave 8 to 10 cents off earnings for the first half of this year. investors taking notice. carnival corp down a buck 30 at 37-72. janet shamably is in mobile awaiting the ship's arrival. janet? >> hi, tyler. carnival making an announcement about this particular ship, triumph. it originally cancelled the next two cruises after the fire
1:27 pm
sunday. now they have cancelled the next additional dozen cruises. that takes it out of the water until app april 15. 4200 passengers and crew in their fourth day without power, limited food and conditions. sanitary conditions said to be deteriorating. they are about 24 hours away from arriving here p at the port of mobile. carnival says they have 1500 hotel rooms between mobile and new orleans putting people up thursday night so they can shower and get rest. they have 20 charter flights leaving new orleans and mobile for houston where most people are from. if they have to go back to the cruise terminal at the port of galveston, they will bus them down there. for people who don't want it wait, and that's probably a lot of people. for people who want to get home immediately, they will have motor coaches leaving here at port of mobile, thursday night back to houston area. we are not hearing very much in the last 24 hours from people on
1:28 pm
board. conceivably that's because they have run out of juice on their smart phones. and there's only been cell service when another carnival vessel pulled up to deliver food or supplies and that has not happened within the past 24 hours, tyler. >> janet, you said they would be in mobile in about 20 hours. how is that boat getting there? is it towed by tug boats? push bid somebody? what? >> yeah. brought in by two tugs. and they are moving at a snail's pace, six knots. so we understand there are about 120 miles away right now. what will happen is when they are about -- before they come into the ship channel here, kind of a guide pote, a pilot will meet them at first light tomorrow. and guide them through the ship channel into the port of mobile. then it is a whole ordeal getting them out, processed, where are they going. have you 4200 people to move to either hotels or transportation. >> will they repair the ship there in mobile?
1:29 pm
i guess they have to, if it has no power. >> they will put investigators on to look at it here. not certain what they will do with it. repair it here or move to one of their facility. >> that is a long time and big hit as we described in the intro into your piece. simon, down to you. >> extraordinary, tyler. the dow clearly hitting multiyear highs. have stocks moved too far too fast or should you double down? $200 billion in assets. that's next on "power lunch."
1:32 pm
welcome back. sharon epperson here. final trades coming in at the gold market. it's been a very tight range in this session. gold prices down about $5, right around 1644 an ounce. a lot of economic data pretty much as expected. not much in the gold mark wet china's market's closed as well. that impacts metals prices across the board. we are continuing to look at lower prices here. silver got perhaps a little bit of a boost or one would think it
1:33 pm
would from hsbc lifting its price craft from $20 to o 2013. only out performer is platinum. back to you. >> thank you, sharon. courtney reagan is here. how would you sum up today's equity session? >> kind of a push and pull. it is almost like it get there, but can't keep going. i'm starting to wonder if we are really going to hit those new peaks. if it is going to happen. so the sector break down shows healthcare lagging. if we dig deeper into the movers, you know ge. but it is worth mentioning because we are hitting four-year highs there. also other multiindustrial names hitting good new highs here. if you look at texture on 52-week highs. eaton, all-time highs. other movers in the multiindustrial space. and managed care company naming
1:34 pm
the new ceo of a company facing a new key year. shares are lower because the market and analysts were surprised about the announcement of this gentleman to be the new ceo. he certainly has experience but they just weren't expecting he would be the one with name shares. aetna lower in the health management care space. >> well will come back to you later, curt knee. now let's get over to rick santelli in chicago. with a ten-year below the 2% right rait. >> yes, it is. you can see what simon is talking about. we just had an auction button up about a half an hour ago. rates backed up just a bit. take the chart back to the 25th. you can clearly see this session is pornlt for a number of reasons. this could be the third close at or above 2% toil. a tight range. remember, intraday versus closing range.
1:35 pm
if we look at thechart, it is definitely higher today. this is the key, many traders think 134 will be the pivot for this week's close. are we done correcting? is that it? a lot of talk about the weakening of the yen had an impact. bit after positive impact on the euro. let's look at the yen. one-year chart. yen might be up against the dollar but this chart is compelling in how steep it is to the upside in favor of the dollar. tyler, back to you. >> rick, thank you very much. a breather after hitting multiyear highs. gaining about 7% year to date. have stocks come too far too fast? katie nixon, wealth management at northern trust where she oversees about 2 billion in assets. good to have you with us. >> thanks, tyler. good to be here. >> i think everyone wonders if this market, coming up high and fast, is right now for a correction. what do you see? >> well, tyler, we certainly
1:36 pm
have come a long way in a short amount of time here with great rerns for u.s. equities and in particular this year. but it is our point of view that we still have a ways to go. with our forecast for the s&p 500 around 105, 106 for 2013. with an average normal multiple of around 15 times earnings. you can get a couple percentage points more than what we have already. 3 or 4% more. that's not to say we couldn't have a normal consolidation after coming so quickly out of the gates. >> so you think that and the dow also trading below historic multiples. what about emerging markets? where are you on those? >> we are still very positive about emerging markets, tyler. you and i talked about this for quite a while now. overweighted merging markets. recognizing that the 1-2 punch will provide investors with wonderful opportunities. >> so you still think there's time to get in, if you've missed
1:37 pm
much of the domestic stock rally, and the same holds true if you are a little underweight, even now, in emerging markets. but we're getting to the margin, aren't we, katie, where the risk reward equation might change just a little bit. not that stocks have to stop when they get to the historic model, they can go higher or never get there. >> i think you make a really good point in what i take from that is that you've got to know what your time horizon is. so short term trading versus long-term trading investing, for the long-term we see enormous value and in u.s. equities. just depend on the your timeframe. >> let's point board, as rick just pointed out, ten-year has gone back above 2%. and maybe that's a good thing. because it signals that the economy may be more stable than it was. but when investors start to reach for yield, as many have, i think going into high yield and so forth, it typically doesn't
1:38 pm
end well, katie. >> we have a very benign interest rate forecast, tyler. we recognize that ten years at or around 2%, we could see it going higher from here but certainly not to the extent that will present a problem for risk markets. we still see the economy here in the u.s. muddling through, growing very, very slowly. we have a few near term head winds to deal with as well. we don't think economic growth will per pell interest rates much higher from here. >> katie nixon, appreciate it. see you again next time. >> thanks, tyler. >> tyler, we are getting more news on time warner pl jua boorstin is live from l.a. julia? >> time warner is in talks to sell some of its time inc. assets. let's see what jeff lucas told us about time inc. >> it is not based on classified
1:39 pm
ads. there is tremendous resilience in the national publication magazine business. but advertising demand is secularly not so strong, down a bit. and the question of whether we ought to put that in a different frame is one we have been asking. we are not, at this point, have not decide said to do something like that but we will keep investigating that. >> they have not decided to do anything, but clearly, everything is for sale at the right plarice. so time warner's time inc. division has two basic groups. one is the fashion publications like people and in style. these are the most profitable magazines and there are some talks they could sell them and hold on to the news magazines, including "time" and "fortune" magazine. who is the buyer? news corps is looking to bolster publishing assets.
1:40 pm
another publishing buyer is herst, cosmopolitan and others in that group would be complimentary to the "in style" and "people "titles. they are clearly looking at the poe ten recall and options right now. simon? >> if you are just joining us, welcome to cnbc pch this is "power lunch." here are other big headlines driving the session today. dr. pepper, snap el group, moving lower after weaker than expected fourth quarter earnings. buffalo wild wings losing ground despite profits losing 22%. sales this year. and well care health plans, gaining ground as health insurer receives rate relief in the troubled medicaid market. guidance worse than the street expected. still topped low investor expectations. up next, we will take you
1:41 pm
inside the world that none of us very often it get to see until now. relationship between the ideal person and venture capitalist. that next on "power lunch." i have low testosterone. there, i said it. how did i know? well, i didn't really. see, i figured low testosterone would decrease my sex drive... but when i started losing energy and became moody... that's when i had an honest conversation with my doctor. we discussed all the symptoms... then he gave me some blood tests. showed it was low t.
1:42 pm
that's it. it was a number -- not just me. [ male announcer ] today, men with low t have androgel 1.62% (testosterone gel). the #1 prescribed topical testosterone replacement therapy, increases testosterone when used daily. women and children should avoid contact with application sites. discontinue androgel and call your doctor if you see unexpected signs of early puberty in a child, or signs in a woman, which may include changes in body hair or a large increase in acne, possibly due to accidental exposure. men with breast cancer or who have or might have prostate cancer, and women who are or may become pregnant or are breastfeeding, should not use androgel. serious side effects include worsening of an enlarged prostate, possible increased risk of prostate cancer, lower sperm count, swelling of ankles, feet, or body, enlarged or painful breasts, problems breathing during sleep, and blood clots in the legs. tell your doctor about your medical conditions and medications, especially insulin, corticosteroids, or medicines to decrease blood clotting. so...what do men do when a number's too low? turn it up!
1:43 pm
[ male announcer ] in a clinical study, over 80% of treated men had their t levels restored to normal. talk to your doctor about all your symptoms. get the blood tests. change your number. turn it up. androgel 1.62%. coming up on "street signs." steady as she goes. creeping up on the heights, little by little. what happens now? and the shocking story of millions improperly claiming u.s. government formed subsidies. if you have a bunk of frequent flier point and what happens when us airways and american airlines finally merge, we will talk to the point man. the frequent flyer guru who
1:44 pm
tells us how to maximize the points before the frequent flier cliff. all those things coming up at the top of the hour. back to you on "power lunch." hel hello, everybody. i'm tyler mathisen. this is a new way for entrepreneurs to get the word out about their start-ups. we give them one minute, 60 seconds, not a second more, to make their pitch. then we get give them the insight on venture capital. craig monsen want to capitalize on what to do when you're feeling sick. here is his pitch. >> hi, my name is craig monsen. i'm a medical student johns hopkins, a web founder and owner
1:45 pm
of symcat. most of us go to google for health information but are led down an unfortunate path into thinking we have cancer or tb. it is up to decide which of the 135 specialists in the health system can best treat us. symcat solves the problem by starting with symptoms and demographics, guiding you down the pathway to the high relevant provider. this is not just good for you as a consumer but for your employer and health plan who has to share in the cost to go to a physician who can't treat you or go go to the emergency room unnecessarily. we are talking to national health plans and we have been granted a prize of $100,000. can you symcat.com. thanks. >> craig is on the right side of your screen. you will hear more from him in a moment. but for now, he can't react to the criticism or compliments he is about to receive until i say so. so let's huddle up.
1:46 pm
a venture capitalist at spark capital, focussing on early stage internet and mobile investment. you have probably heard of it, on-line seller of eyeware that overnight plays its way into this highly competitive market. john carnie, cnbc.com's senior editor. mo, you go first. what do you think? >> somewhat skeptical we wouldn't be better off actually getting doctors or some form of medical consultant connected to directly to a consumer, to a patient. >> john, you heard mo, sea skeptic, what do you say? >> how do they make money doing this? a lot of good ideas on the internet don't have any way of making money and i wonder about medical liability. >> absolutely. craig, come on into the hot seat. well ask you a few pointed questions. you ready for this? >> thanks a lot, i'm ready. >> okay, here we good. sit on down. >> mo, let's begin with you. you have a couple of questions i know you want it pose to craig. go ahead.
1:47 pm
>> definitely. my biggest question is at approach, right approach, and how do you think about that. >> i think that's our strength. we have seen a lot of failings from web md symptom trackers, other people have tried. and our approach is novel in that we incorporate data from the cdc. we worked with experts and we really believe that the algo rythmic approach will work. >> when do you do when someone is misdiagnosed on your site and they say, i'm going after those guys. i'm going to sue. >> our challenge is really communicating to them adequately, that what we are offering are data. it the second piece i would say, is that you know, to get a real diagnosis you need to go to a doctor. legally that's the only one who can offer a diagnosis. you will notice we avoid the term diagnosis at all in our tool. >> i still don't understand how you plan to acquire customers. are you going through the health plans to get to them or marketing direct to consumer? >> we do a little bit of both.
1:48 pm
but the obviously the health plan offeres a natural distribution channel, so we are looking forward to that. >> how do you make money at it? charge the health plan that supplies it to participants or charge individuals or what? >> we charge the health plan for on a per member per month basis, essentially. if we can get people to cost effective care rather than the emergency room, up to 40% emergency room visits are for minor conditions like cold and back pain. up to 70% of primary care visits, if we can have lower care visit then there is a cost -- >> all right, mo, john, are you in or out? mo, you first? >> unfortunately, i don't think i could get there on this even though i respect the pursuit. i'm skeptical on the ability for the product to deliver. but proof is in the pudding there. that can be easily figured out.
1:49 pm
my bigger issue is just a big market strategy and having to rely on insurance company for the liability issues mentioned. and also the pain it can be in dealing with that. >> how about you, john? >> providing better information to people about their symptoms is a great plan that we need in medicine. so i'm in. >> you're in. i'm in on it. thumb's up. i think it has a good concept and nice way of selling through the insurance company. >> all right, that will do it and that is the power pitch. then again, you put in your symptoms, i have a headache and red eyes. you either have a hang over or brain tumor. we want to hear from you. head over to cnbc.com and vote in our poll. simon? >> tough crowd. up next, president obama pushing for a higher minimum federal wage.
1:50 pm
is that good or bad for the american's con economy. our soci. more "likes." more tweets. so, beginning today, my son brock and his whole team will be our new senior social media strategists. any questions? since we make radiator valves wouldn't it be better if we just let fedex help us to expand to new markets? hmm gotta admit that's better than a few "likes." i don't have the door code. who's that? he won a contest online to be ceo for the day. how am i supposed to run a business here without an office?! [ male announcer ] fast, reliable deliveries worldwide. fedex.
1:53 pm
here we go. jane wells and cindy. first up we ask, you, the viewers, do you think president obama's proposal to raise the minimum wage it $9 will boost the economy? almost a quarter said yes. it would give people more spending power. 14% said maybe. but two thirds who voted said no. new minimum wage would hurt small businesses trying to hire new yo new york workers. jane, you are coming to us at an ag expo. how would it go there? >> wages here are based on the product people pick. if you raise them too much, food becomes too expensive and americans might start to buy more cheaper food from abroad. so it hurts that way.
1:54 pm
but generally speaking, i think both sides in this argument are right. i know on cnbc, we are supposed to say, oh, no this is horrible and people will lose their jobs. and some might. but somehow the economy -- >> not at all, jane. on the new cnbc, you can say anything. >> not only is that help going to help the workers, it is going to make a huge difference for people in that income bracket. and you will get a better quality worker and more productivity if you pay them more. ultimately it is good. i can tell you, if cnbc paid more for this position, they could do better than me. >> oh, don't say that, don't say that. >> marco rubio, last night, taking a sip of water, fra spring, listen. >> nothing frustrated me more than false choices than the one the president laid out tonight.
1:55 pm
the choice isn't just become big business -- >> oh, jane you lived on prime time for years in l.a., do you feel his pain? >> well, here is the thing. that's the only part i have to admit in the whole state of the un con thing i tuned into. we have been obsessed with this homicidal cop killer we have been dealing with. so by the time that was over, i tune need that. i like the fact that afterwards we actually made fun of himself. he tweeted the shot of the bottle. spring is trying to maximize this moment. and you know who is most happy with governor gyndal, because of his odd walk to the podium is forgotten about. >> what do you think. >> oh, hold on, little parched. this guy will have to did a lot of long intensive things. a lot of decisions. i need him to handle 15 minutes. but my favorite part by far of
1:56 pm
all of this, was that he blamed god for it. he goes well, god has a funny way of reminding you you're human. >> that's the truth. >> i'm interested you chose to get a bigger bottle and sparkling. but we will leave that for now. >> wrestling will be dropped from the olympics to make way for a sport of chinese martial arts. jane, will you change your training regime in anticipation? >> well, now you have kung fu and tie kwan do and karate but no wrestling? if we do this for ratings, i would say, replace wrestling with mud wrestling. >> oh, really? cindy? >> nice moves, jane. i think people like hulk hogan have prove fed you make wrestling a television entertaining sport, it has to
1:57 pm
have sequins and capes. frankly, on a serious note, wushus is a good pitch ad to chinese consumers. not a bad idea. >> in consideration of how to get a rating, i'm sure you will do exceedingly on cnbc. meanwhile, at the corporate level, amazon.com making a big move. seema mody will tell you about that when we come back. this is "power lunch" on cnbc. [ kitt ] you know what's impressive? a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪
1:58 pm
after all, what's the point of talking if you don't have something important to say? ♪ executor of efficiency. you can spot an amateur from a mile away... while going shoeless and metal-free in seconds. and you...rent from national. because only national lets you choose any car in the aisle...and go. you can even take a full-size or above, and still pay the mid-size price. now this...will work. [ male announcer ] just like you, business pro. just like you. go national. go like a pro.
165 Views
IN COLLECTIONS
CNBC Television Archive Television Archive News Search ServiceUploaded by TV Archive on