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tv   Power Lunch  CNBC  February 15, 2013 1:00pm-2:00pm EST

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herbalife. we will see where it all goes. carl icahn, thank. >> thanks. >> stock trading off as he started to speak. and i think you have to be rest assured that he is not doing this out of a vendetta against ackman. there is too much money on the table. he likes to make money. he can k get those jollies out somewhere else. i'm still going with him on this. i haven't heard from sullivan and cromwell. i went through the presentation but i like the chance with loeb and icahn. >> i like the fact that he talked about, this is not vindictive, this is about making money. >> come on, look -- >> that's what he is saying. >> i know it is what he is saying. and look, he wants it make money. >> yes. >> it is what he does. >> that is what he did. >> make no doubt about it, i've never seen somebody come out with 20% shortage in public company -- you just don't see that. he is right about the short.
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the short is quiet. it's a squeeze. >> what sticks out the most to me is that he mentioned the idea of this created an opportunity for me. and that's what he is pouncing on, is the opportunity. when ackman brought up his comments and stock was sold off -- >> it is the price like any investment you go with. >> speaking of a binary thing, you have two guys on either sides of the debate, on either sides of the ring. and it will come out one way or another. regulators will do something and bill ackman is probably going to win if that happens. or they're not and carl icahn will probably win in that outcome. how do you see it? >> i agree with you. i think eventually we will have a resolution and one side will be the clear winner. but the path to get there might take a little bit longer than people are expecting. i think regulators are very well aware at ftc how highly charged this debate it. so i think it may take time. >> icahn has his own money here.
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ackman has other people's money. if he loses, he has to pay that back. >> he has real money to play with, if he can say play, with the kind of money he plays with. >> he has 14 million shares, $36 a share. he talked about using options as leverage, put those in into a stock once he gets through filings. he has himself in the position he is very comfortable with and to steve's point, discipline. one thing you can say about carl icahn, there are price levels he wants it buy and price levels where he will likely sell. he is not toward sell. >> dr. j, can you put into some sort of perspective for people watching now, what the large position of options tells you, most people think of the investments made by the kind of people we often talk about and the ones we are talking about as taking large traditional stock positions, in this case, options are highly involved? what does it all mean?
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>> first of all, scott. bill ackman is a great investor. but he made a rookie mistake. you take money off the table when you get that $20 drop that he got. that was foolish not to do it. carl icahn took advantage of that, buying it near the low. hundreds of thousands of shares below $26 a share according to the filing and he bought it all the way up. to your point about the option, may 107b8g, scott. put that one on your calendar. that's when the first traunch of these options expire. these long calls, american exercise. meaning at any time, he can turn them into cash. then he is short puts. then another traunch going out to january 15. a total of 8 million of those options out there, scott. so this is a huge position, very smart investor, who knew he could get leverage by doing this. he is getting paid, of course, for selling the puts that finances the purchase of the calls. it is a brilliant trade. if he is -- if indeed it goes
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his way, he will make an unbelievable amount of money on this. ackman, on the other hand, has very limited amount he can make. >> somewhat lost, steven weiss, in this whole battle between these two gentlemen, is the battle over a company, right? at the end of the day, it is a battle over the company's future. if the company goes to zero, doesn't survive, what do you do then? >> that's ackman's call. >> what does the company need to do at this point, given what we have now? guy like icahn coming out publicly, so long and big in the position he has taken. >> i don't think there is anything the company needs to do. it is not in the company's hand. the fate is in the government's hand if they go after the company. either give them a clean bill of health or you won't hear anything or they will say, it is a 5 pyramid scheme. but this has been going on for years and years. this is not a new short story. but the important thing to me is staying power. short positions, when you're wrong, they get bigger an become a bigger part of the portfolio.
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i don't know what percentage hits portfolio is but that becomes a bigger position for it. icahn has nobody to answer to. he has deep pockets. he can wait out ackman. >> this will be our last point. certainly some people will get squeezed out. those with weaker hand. those with the most unsettled stomachs are going to perhaps be squeezed out today. but again, a guy like bill ackman seems as resolute as of in staying the course and what he believes. >> icahn, all his money, he can do what he wants, no one calls him and says, hey, what are you doing? herbalife. >> as carl was talking, we were down $40 a share, now we are up to 42. >> and last point right now, with the stock at 42, both sides
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are winners. icahn and ackman. >> all right, thanks very much. send it over to "power lunch" now, guys. >> halftime is over. "power lunch" and the second half of the trading day starts right now. >> thank you very much, scotty. you saw it, halftime bringing the heat. carl icahn turning it up big time in his battle against bill ackman in herbalife. the next round in the fight against two wall street titans. then how vulnerable is your smart phone? hackers. it's not pretty. we will bring up a new list of concerns and cautions that you need to take. then, nobody can protect themselves from this. take a look at this. this is russia today. and it is not a movie set. that's a real life meteor and hundreds of people have been hurt. we have that amazing story for you straight ahead on "power lunch." but my partner, bill griffith, is in for ty today. ty is under the weather so we
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sent bill down to the nyse. >> hi, sue. here on the floor of the new york stock exchange, every single television was tuned into cnbc in the laugh hour and the sound was turned way up. you could hear carl icahn's voice resonating against the walls of the new york stock exchange. as we all know, the fight started on cnbc on january 25. ackman versus icahn going at it. ackman announcing a short position, or discussing it. we already knew about it. icahn very very coy but we know it was clear that day. icahn is the winner, if it is the prize, and we know on wall street, it is the prize. herbalife opening sharper and moving since that time. still a healthy gain of 7.5%. on the halftime report, if you missed it a few minutes ago, carl icahn turning up the heat
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on bill ackman big time. listen. >> i bought things that i think were undervalued and i think herbalife is a very undervalued situation. and we've done a hell of a lot of research thon, since ackman has given me the opportunity by bashing it, i think has given me a great opportunity. from the way we look at it, we think, ackman -- well, i consider it to be a scheme and we will talk about it, is really unfair to shareholders and unfair to people working at herbalife. >> the ftc investigates fraud and puts people out of work, that's not what they want to do. especially to satisfy guys like ackman who say the least, i would say, sort of insults them. and tells them they are not
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doing their job. but they don't do this, especially when good products are being sold. >> you saw the interview with scott and carl icahn. very good interview, scott. >> thanks. >> a certainly a few things caught my ear but what do you think the point he was trying to make in the interview. >> i think mostly carl icahn is in it to make money but it is inescapable that it is personal as well. as i pointed out, the way some of the purchasing of the shares or options was done, immediately after that friday three weeks ago on monday and tuesday, there was a significant amount of activity. and i know he made other purchases certainly. and he's done quite well already in the investment that he's made. but part of of it is the battle for ten years, it has now festered to the surface and carl
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icahn i think deep down want to inflict some sort of financial pain. >> right. i talked it a couple of hedge fund guys while that interview was going on. they make the point, yes, he has deep pockets. yes, he is in it to make money. but he is making money already. so be quiet. be quiet and make the profits. it is much deeper than just herbalife. >> being quiet is not what this has been about be a right? ever since that friday we all remember three weeks ago, it hasn't been private. it hasn't been quiet. it's been in the public domain. no reaction thus far from bill ackman, who i know was watching the interview with carl icahn. and ultimately what his intentions are, whether it is strategic moves or as it relates it bill ackman directly. >> let's bring in herb greenburg. what was your take, first of all?
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and i heard his comments about ackman insulting ftc, they were kind of interesting. >> i don't think that's the issue. whether he is insulting or not. he could be prodding the ftc to make a look. you could assume that regulators do not want to be accused of having overlooked another one is there is another one to have overlooked. when i listened to the interview, great job, scott, things that struck me include et the way he danced around stot scott's questions on research. and how much he has done. have you done research. and he said, it is not that germane. i bought companies without doing research. having done research on the company and industry, i wrote a note to myself that he is missing key points here. this is a complicated issue. and as other people i know are thinking, maybe they will get a slap on the wrist. no. if there is a pyramid scheme issue here, a serious one, it is not just a lightly taken issue. and i will tell you, as i've said, best case scenario in that
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situation, hard reset to the industry because they have to change -- >> maybe it is 7b that complicated at the end of the day. >> oh, i think it is. >> if you look at 13d and things laid out here, persons concluded that the company has a legitimate business model. >> how often do you see that in a -- >> well, there is correspondent because the company has gone -- >> from the number's standpoint it looks like a great company. done very well. great cash flow. big esh issue here is the business model. >> that's to mr. eicahn's point. he want it see that. he has asked to see it and they have not come forth with that. i thought that was a great point. >> it was a great point. it will be interesting to see if if bill rolls that out next. if you've done that due diligence and that have that
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information, it would be interesting -- >> i'm sure would he do something like that. he has gone to great lengths to talk about sullivan and cromwell. but make no mistake, sullivan and cromwell may have done six months of legal work. icahn says they have done 18. he had enough conviction. maybe it was pushed over the goal line, if you will, by whatever sullivan and cromwell had to say. and i don't think this can be underestimated, number one, bill mang isn't stupid. and number two, he didn't take a position damaging to himself and his firm without having something. i've got to believe that there is something. he has spoken to someone. there is something, people maybe have come to him. there has got to be something that made this guy make this bet. >> when you do the research into this industry, what you walk away from be a went you talked to victims of some of the
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companies, you come away with, there is a big issue here. in an industry, like the wild west, no regulation. fz. >> bill griffith -- >> hey guys. >> yes. >> kudos to my guys, doing interviews with two very large personalities. one trader said to me on the floor, if nothing else, it is great theater. here is my question, we are talking about an ongoing company, publicly traded that has shareholders and employees. so where in the world is the sec in all of this? at what point -- somebody has to stand up and say, you've got two guys talking books publicly out there. when does this become stock manipulation, right? >> look, i know that herb greenburg may have a greater opinion or more poignant opinion perhaps or thought than i may on that. because herb, i know you've been thinking about that kind of issue. we talked about it at times.
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it is really interesting question when you have guys so public on the long or short side. and other areas of the way this is all done. some of it becomes a moral discussion more than a legal one. >> it was interesting on the past interview. so add madamantly. and so the question is, when you have, if it indeed is an orchestrated short squeeze, we will get that guy. when is it a legal manipulation. >> and the manipulation is the individual shareholders in this stock who may decide, you know what, my position is threatened by these two huge egos on wall street, so your point. and i think that's when government officials have to come in and take a look that. >> the sec, as we know, has been reported in the past. sec kicking tires here. that reported. company hasn't commented.
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but they are there. we just don't know how deeply they are there. >> i just wonder what the company does at this point. michael johnson, ceo, at times combative and public when he heard something on our air. something he hasn't liked or ackman or other folks have said, he has come out. i just wonder what is going on in the sea sweets of herbalife as they are caught in the middle of these two. battling it out. >> michael johnson, it is so close to him and going back and forth with him. his exasperation on the issue, i can only imagine. he just hate this battle. he is very passionate about it. >> can you blame him? lock at volatility and his stock. look at what happened on our air over the last half hour. >> again, as i say and as i said in the american dream, there are issues here that must be addressed. no bright line rules. that is something, not just for this country, this company, but for an entire industry. >> all right, gentlemen. thank you very much.
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next chapter to come. i'm sure. >> nice to be reunited with carl. >> yes and you seemed to be on better terms than the last time around. >> we do. >> hey, josh. >> hey, sue. now in the green, the news, dishing out more cash to its owners, the board claiming quarterly cash dividend of 14 cents a share, and mariott boosting its buy back program for a total of 34 million shares. that stock now up some 20% in just three months. back to you guys. >> thanks, josh, very much. another big story from the world of big money, more redemptions at sac capital. kate kelly broke the story and she is live for us with more details. hi, kate. >> hi, sue. sac is losing capital as a weight of issues worry investors. pulling money from sac this
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quarter along as others in every excise and scope. new measures were put in place yesterday to redeem money for quickly. players like black stone which pulled only about a $100 million or so if its money will take another three months to review the latest legal developments. then perhaps redeem in may or perhaps stick around. a central issue is whether steve cohen will be personally charged as part of the ongoing insider trading probe despite assertions he didn't break the law. by may there may be more clarity, partly because there is statute of limitations on cases that run in july. in the meantime, sac will fork over $660 million by march 30 and additional billion by year end. maybe more. on the good side though. great upside last year at sac brought total uam to $15 billion by the beginning of this year and 9 billion of that is steve cohen and colleagues and their personal investments who plan it add more in the near future.
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>> great story, kate, thanks very much. so who is listening, watching and hacking your smart phone? see how easy it is when we come back. can you imagine how frightening a display and just how powerful space can be? it's been a long time since fire rained down on earth. but it happened early this morning, scare rg thousands, injuring hundreds. an incredible display of nature coming up on "power lunch." s li. but they can also hold you back. unless you ask, what's next? [ zapping ] [ clang ] this is the next level of performance. the next level of innovation. the next rx. the f sport. this is the pursuit of perfection.
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take a look at this. it is not a movie. real life in russia this morning. 930 miles east of moscow. a meteor weighing ten tons streaking across the sky at supersonic speeds. the series of blasts that it caused hurt some 500 people in that area, most hurt by shattering glass. a meteor broke apart about 20 miles above the earth's surfaces and 23,000 miles per hour. witnesses say it caused mass panic on the ground because many people understandably thought the word might be ending. scientists say this, by the way, has nothing to do with an after the noid that is expected to fly by earth in about an hour. 17,000 miles above the earth's surface and in space terms that's pretty close. we will watch will telescope very closely in the next hour. bill, i know you are a space fan. it must have just been terrifying. >> i agree. that would be my first thought. the world coming to an end. >> henny penny was right, the
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sky was falling. >> yes it was. >> incredible video there. if meteors don't get you, maybe a hacker will. there is a 40% increase on mobile attacks. john is live with that, john? >> yeah, bill, a security firm looks at hundreds of attacks, lots of public data over 2012. one of the startling headlines is that mobile attacks were up 400%. mostly android phones. tricking users into downloading a fake version of an app that send text messages to a premium rate service. also others that suck the contact information out of a phone. little perspective here, pot of cold, what crooks are really after is credit card data. that why they like to hit retail stores because sometimes stores improperly keep that data. hack kers grab it, sell it on the black market. retail mac retail hacks were up 15%. hackers are mostly grabbing
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content information, personal details, things to use for identity theft, which isn't as lucrative as just stealing the credit card. but pcs that become mobile wallet, this is an area to watch, another area to watch, by the way, romana. one-third of hack attacks happened there. it is an eastern european hot bed of hacker thievery. they got 30,000 credit, made off with $25 million, bill. >> way too easy. they've got to do something about that. thanks very much. three big names, three big beats. we will show you how the stocks are doing and ask why the sec is to interested in ketchup right now. when we come back. h 4 wheels. it's a hawk with night vision goggles. it's marching to the beat of a different drum. and where beauty meets brains. it's big ideas with smaller footprints.
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corporate news for you now. burger king and campbell's soup and reporting better than expected earnings. burger king's net income almost doubled on increased sales in north america. 3g capital, private investment firm that owns the majority investment in the chain has been working to turn around burger king since 2010. you remember 3g is the company teaming up with warren buffett to buy hj heinz. boosted by sales of the most recent acquisition, that being bolt house farms. and vf corporation saw revenue
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rise to $3 billion on increased demand for flagship clothing brand like north face and vans. view? >> an insider trading inquiry into berkshire haur burr shir haberkshire hajj way. >> there are bets the stock will rise just ahead of the deal it take the food giant private. the trading giant in heinz calls is 80 contracts a day. monday and tuesday's volume was weak before spiking wednesday to 3400 contract or more than four times the daily average. a red flag to former sec lawyer robert heim. >> as a former sec prosecutor, i know when you see a spike in options trading like we saw before the heinz deal was announced, it is a very suspicious move.
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>> on those calls, over 2200 of them acquired in three block trades of june 65 calls. a good trade given thursday's news. warren buffett, berkshire hathaway. the 20% premium over wednesday's closing price and holders of june 65 calls a healthy profit. sec's case reportedly building on another insider probe following 3g's buyout of burger king. florida based investor settling charges he received information ahead deal from his former broker. heinz says it hasn't been contacted by sec and calls seeking comment from berk shire and sec have not been returned. >> thank you very much. gold falling below 1600 an ounce. its worst week in sometimes. and there is no love lost between costco and tiffany's.
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here is courtney reagan. >> that right, sue. little blue book # box takes on the big box retailer. i've got details in the battle over bling coming up. [ male announcer ] we began with the rx. ♪ then we turned the page, creating the rx hybrid. ♪ now we've turned the page again with the rx f sport. ♪ this is the next chapter for the rx and the next chapter for lexus. this is the pursuit of perfection. great, everybody made it.
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we all work remotely so this is a big deal, our first full team gathering! i wanted to call on a few people. ashley, ashley marshall... here. since we're often all on the move, ashley suggested we use fedex office to hold packages for us. great job. [ applause ] thank you. and on a protocol note, i'd like to talk to tim hill about his tendency to use all caps in emails. [ shouting ] oh i'm sorry guys. ah sometimes the caps lock gets stuck on my keyboard. hey do you wanna get a drink later? [ male announcer ] hold packages at any fedex office location.
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welcome back to "power lunch." i'm sharon epperson. final trades in gold market. gold able to close it appears above the 1600 level after briefly dipping below that key mark earlier this morning. keep in mind, we are looking at gold prices that are down about $26 and at the lowest levels we've seen in about six months time. several factors contributing to the sell-off we have seen in the gold market breaking below the earlier year low, 1625 an ounce was a key technical level and that exacerbated the selling. we have that report yesterday showing the demand in 2012 was down 4% in the previous year and add to that sec filing showing in the fourth quart ear number of key health fund managers like george as well as tiger managements, also cutting their holdings in gold etfs. that also contributed to the selling we are seeing. selling is widespread and we are looking at platinum and palladium with gains we had earlier this week, silver at
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five-week low and key now is over the holiday weekend is whether or not gold prices remain above that 1600 level. back to you. >> sharon, thank you. just a personal plug, we have ceo of gold corps, a brave soul to come on when gold is flirting with 1600 dollars here. bob pisani. >> the lows in gold stocks and put them up right now and show you. because weak dollar -- >> that is kenny from securities sitting over there by you. >> we have heavy volume because of an exploration day. again, the strong dollar and you heard there from sharon, weak metals. we are looking at multiyear lows. near four-year lows for most of the big gold names and again here down about 4% today. how about energy stocks. the energy sector held up very, very well so far this year. we are near highs on most of these. today with the strong dollar, oil down and all of the big guys, apache and exploration
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production stocks and drillers like trans ocean and weather ford all on the down side. we did get a reversal yesterday with the airlines for a first time if a long time. all back up again today and we have regained losses we had yesterday. >> never behind, right? >> sort of just was a momentary blip here and people were thinking that now with all of the consolidation essentially over, allow the cost savings to realize how much more we are left in the airlines and dramatically raise the prices. >> two engines for the u.s. equity markets, lately. you're why as it went higher, so did our stock market and energy. >> both were going lower now and that served to stall our rally here. >> we have been stalled for a week and it has been churning and churning. unable it pierce the upper limit 55. every time we have the s & p, the market backs off. i'm not surprised with the market being consolidated. the market catching up to itself. what is that a signal of?
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is gold a signal of deflation ahead? >> i'm struck, it if you can show us a year to date of the do you, bumping up against 14,000 there, this is like a coiled spring but and you wonder which way it is going to break. is it higher or lower and what the catalyst going to be? >> the important thing is that the money is flowing into the u.s. stock market. we are up 1.5% in the month of september. we are the only major global index up. brazil is down. mexico is down. all of europe is down. most of asia is down. hong kong is down. we are the only ones -- >> we are hanging in there. >> we are doing well. i'm not trying to argue the u.s. economy is some great engine of growth. we just happen to be doing better than others. >> is that a good reason to buy stocks? >> maybe not. i've got no place else to put the money. >> not dramatically overvalued. stocks at 13 times. >> and most economist and strategists talk about 2013 being the come back year once again for equities and people
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move back and so it does make sense that we are seeing this but we are ahead of ourselves in terms of the market catching up to where we are. >> if you put gold at the bottom of the stock market, it is related. >> people are using gold as source of funds to buy into the stock market and there is your point. there is not a lot of other places. >> we have looked to the bond market for the potential source of money to go into the stock market. >> and that is not -- >> not yet, but -- when that kicks in and then you really -- >> i would say the market is -- it is still out. on the rush out of bounds, i still don't see it. there is still small amount of money going into bond in january. >> all right. bob, thank you. ken, nice tie, by the way. >> thank you very much. >> private joke we are having here. sue? >> always about the tie with kenny. or the food. you know, you mentioned the fact that money has been coming out of the bond market at a she rate. stronger than expected bond
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markets. pushing yields up a little bit. rick santelli's track in the action at cme. hi, rick. >> i'm in the home of the piggy bank that everybody want it break into. yes, fixed income market. it is still going in nonetheless. and it is one full parking lot, that's for sure? hey, auctions, remember, the issuer has a good grade when i grade it. that the treasury. but when it gets a bad grade the customer end up better. just think about that. look at 3s. currently trading levels. indeed the auction level means that people are losing a speck of money. if you look at 201. current rate on ten-year, 2.046. lower yield now means it's profitable. that was a dog auction but customers are at least a head on it. and last year, best of the auks went off at 318.
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currently at 319. losing a little money there. all about housing. everybody want to talk about housing. i'm not telling that you lumber will give you the answer but you can't have a good housing market not reflected in a positive way in number. though it is pretty darn positive. look at this chart. basically an eight-year high in lumber futures. sue, back to you. >> you're right. bodes well for housing longer term. thank you, rick, very much. you're up-to-date on the bond market. tiffany and costco. and a majorbling battle is brewing. tiffany says costco is selling tiffany knock-offs. courtney reagan is on the case and it is a battle over the beautiful little blue box, court. >> it sure is, sue. makes me smile just thinking about it. no retailer wants another to sell the imitation of its products. costco marketing diamond engagement rings with the tiffany name made it worse.
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tiffany a is alleging costco -- they are claiming trade mark infringement, unfair competition and false advertising. they are asking costco to forget profit and wants damages. costco says they were selling what they thought were actual tiffany product. . some locations have been advertising tiffany diamond engagement rings for years. tiffany only became aware of it after a consumener california alerted the company in frustration. not the first time costco has been involved in a battle like this. in 2010, costco and swatches omega brand went to federal court and it ended in a
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federally billed haealth exchane have to decide. >> here in vermont they have actually been all in the process of building their own exchange for long time and they are pretty far along. one of the interesting things
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though is that clinics like this one, the community health centers of burlington will pay a very big role in the outreach and key issue is to get young people to buy in. the so-called young invincibles, kids who feel like they can't afford insurance and don't think they need it because they won't get sick, insurers worried that they won't buy in once aca goes into effect in 2014. new rating bans will mean that things will get more expensive for them in terms of ensurance as it gets less expensive for older workers. when you tick a look and the limits right now more than 40 states are allowed to charge older folks five times more than younger folks. so an older person of 60 might pay about $6,000 versus 24-year-old paying 1200 a year. starting in 2014, that ban, that rating ban, goes down to 3-1. so what will happen is that the 6-year-old will pay less, 5400. but that means that likely the
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24-year-old will pay $600 more to offset that. a lot of folks worry that means the ip vincibles might opt to pay the fine rather than the increased amount. in massachusetts, one of the ways they got around it, was going after their parents and a lot of parent, bank of mom and dad helped pay the bill. >> yeah, that -- i'm learning that, a lot. >> thank you, bertha. see you later. we will take a break. when we come back, a senate banking hearing. you will see what the targets were. from fireworks to washington, to fireworks in the sky. more on the giant meteor exploding over the skies of russia. some amazing video after the break.
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best performers in the sa 500, the packaging company, huge move, 52-week high. big name as a a fan here. finance here, the fund reporting a new holding in the company. reporting 1.6 million shares with a value of $51 million. meadwest up. >> nice move, josh. with smart phones and tablets taking over the functions after computer, how concerned are you about mobile hacking. 47% of you say you are very
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concerned. 33% of you are very concerned. 17%, not concerned. but 3% of you, i've already been hacked. hope it doesn't happen to you. let's see what is coming up on "street signs," 2:00 p.m. eastern. hi, mandy. >> a very exciting hour because after certain astroid whizzing past earth in the middle of our show. we will take those pictures live. also, hope you caught carl icahn on herbalife with scott earlier. scott will be on our show as well. herb will be here as well. we will go over exactly what icahn said. and also, what is going on with gold? it is currently sitting at six-month lows. what is that telling us? all those things coming up, top of the hour, "street signs" is the show. back to you in the meantime with "power lunch." >> what is that meteor doing? >> it's shizzing or whizzing
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past. whatever. >> thank you, mandy. jackie to you. >> nasdaq right now, just under the flat line, this after we hit a new fresh 12-year high earlier this morning in the intraday. it will be interesting to see if the nasdaq is able to keep up its 2013 weekly win streak. take a look at. el reacting to the filings we saw yesterday. einhorn and teper are in. finally i want to bring you attention to dell up half a percent today. up 36% this year. brian marshall at isi point out dell is one of the best performers in the '90s. if you look at $10,000 in 1990 and returned in 19999 your investment would have been millions. as of yesterday 2.4 million. inflation adjusted about 1.4 million but something to consider as we wait to see what happens with dell in terms of it
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going private. >> time for friday edition of the rundown. kay la joins us and welcome to you both. let's talk first of all about setting the cnbc alarm clock app a little earlier. because nasdaq, unbelievably here, will move up the premarket trading by three hours to 4:00 a.m. neil, do we need premarket trading at 4:00 a&m? >> i tell you, i don't think the people in los angeles will think so. that is 1:00 a.m. for them. but there are nickels and dimes that nasdaq can pick up here. apple and other big tech stocks trade overseaes a lot. there is 5% of the volume in the earlier day. it is nickel answers dimes. >> you agree with that kayla or not? >> well europe is such an integral part of the market moves, a lot of traders get up at 2:00 a.m. to watch europe
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like a hawk and asia too. if they could have captive audience if maybe for a very small few who unfortunately get up there. >> indeed. >> elizabeth warren doesn't appear to be softening attack on big banks. what is wall street reaction going to be to this? neil, why don't you start in this is your neck of the woods as well as kayla's. >> i think this is a bigger sort of trend going on here. i think both parties are seeing that there is some traction they can get. this is a populous view. an anger in the country that bankers have gotten off too easily. and also a real legitimate policy question when you look at the fact that very often these sort of agreements that bankers have had have allowed them to pay a relative small portion of what they have actually earned from doing things that it turns out are either illegal or are against rules and regulations. so the question is, are you in this way encouraging bad
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behavior and resit vows behavior? >> kayla, we shouldn't be surprised, she is playing to mainstream more than ever before. >> when she got elected last year, wall street knew she would come out guns blazing. yesterday was that materializing. in most case the federal government has five-year statute of limitations to bring a case to trial. the financial crisis was four years and six months ago. so a lot could still happen. >> all right. we can't believe this story. and we want to bring it to you once again. that meteor slamming into the skies above russia with the force of an atomic bomb. it blew out windows. flying glass all over the place. injured hundreds of people and by standers. and an astroid as mandy just mentioned a few minutes ago, is due not far from earth during "street signs." well watch for that certainly. kayla, it does seem like something out after science fiction movie, doesn't it? >> i'm not sure if god is a 49ers fan or what happened
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reisn'tly to deserve this vengeance with that happening last night and an astroid set to pass by today. whatever we have done, we are sorry. >> neil? >> my greatest fear is that washington will see this as a divine signal that the best way to spark the economy is to break windows and fix them. that the worry here. >> oh, silly. thank you, guys. the reason neil said that is the government put out a call that everyone who can repair windows should report to work, and they did. >> exactly. and viewer tweeted me and said, when the sky is falling, so is sky. but carol, whenever everybody else is selling, you should buy sky. just a refriendly reminder. >> what is small is big again. one of the largest micro car checks up for sale. robert frank will show you some of the coolest rides, robert? >> reporter: thanks, bill. check out this drag racer. one of four cars in the world modelled after a hot wheels car. this one can you drive. it will be sold today as part of
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the largest collection of micro cars ever assembled and you will not believe the prices. that coming up next.
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one of the world's largest collections of very little cars, very profitable cars, is going on the auction block this weekend. now with the micro cars, cnbc's robert frank. >> they are so darn cute and prices will wow you. it is amazing. micro cars have been the poor kuz cousin of auto collecting
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but not any more. the micro cars collect goes on sale today. sold by a candy mate. he collected 200 cars that could fetch in total more than $6 million. micro cars were built after world war ii when europe was short of money and materials but they are not cheap any more. here are some of my favorite. this 1958 fmr tiger, one of the fastest quote mezerschmidts in the world. not too fast but could sell for more than $150,000. next one up is mini drag racer. one of four cars modelled after hot wheels. this is real and could sell for more than $100,000. bruce weiner spent 60 years hunting down the next car. he tracked it down in bo vara. the slogan for the car when it was created was, quote, it is cheaper than walking. not any more. could sell for more than
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$50,000. >> what a fun honbby and profitable one. >> and good mileage too. >> indeed. >> an emotional day in court for oscar pistorius as charges are filed. we will have details as we come back to "power lunch." stay with us. how do you keep an older car running like new? you ask a ford customer. when they tell you that you need your oil changed you got to bring it in. if your tires need to be rotated, you have to get that done as well. jackie, tell me why somebody should bring they're car here to the ford dealership for service instead of any one of those other places out there. they are going to take care of my car because this is where it came from. price is right no problem, they make you feel like you're a family. get a synthetic blend oil change, tire rotation and much more, $29.95 after $10.00 rebate. if you take care of your car your car will take care of you. transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you're thinking of the 1.6 million
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