tv Power Lunch CNBC March 7, 2013 1:00pm-2:00pm EST
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it's that time again. time for final trades. which pete, means you're on the hot seat. >> kriet now i will go with crocs. also trading extremely cheap valuation. i think this name will finally recover. >> stephanie in. >> i like s&p on pull back. i like the enterprise product and portfolio. have you a nun analyst meeting coming up. >> josh brown? >> i still think lowe's will take out the $40 and get going. hasn't happened yet. >> mike murphy? >> hertz, a great set up here. announcing selling 60 million shares from one of the firms that open the company. the stock opened lower. rallied off that news. and i think hertz is prime to move into the mid 20s here. can you own the name here.
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>> guy we guys, that does it fo. follow me on twitter. facebook headlines are coming momentarily. "power lunch" will have them, right now. and scott wapner will be delivering those headlines when they break. we had that breaking news, as facebook announces something. something. there are many reports it has do with a redesign of the program. to permit more advertising. mark zuckerberg, boy wonder there, may be speaking during the event. if he does, we will take it live. there is the stock at 28 .29, up 3% alone. another breaking story, another day, another record for the dow. sue is at nyse. hey, sue. >> indeed, ty, you're right. three days, three records. banks and financials big factor in the move today. stress tests are due out after the bell. and bob pisani is with me right here. i notice multiyear highs for j.p. morgan chase and citigroup
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and better than 20% move in the financials overall. >> so this is -- there is some anticipation they will do some good announcements for the market. capital increases, dividend, that's what the name is about. take a look at major bank stocks and bottom line is very simple. 19 banks that are in this, anticipating. all 19 will pass them. even more importantly, i put up a few where they are anticipating they will announce some kind ever dividend increases or buy backs. all of these banks you are looking at here have dividends, i mean like one sent most of them. there is anticipation they will start raising dividends and it is okay to do that. >> for those of you listening on satellite, that's bank of america up 2.5% aun and sun trust up 2% today. >> the etf in which you can buy the bank stocks and there are
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spdrs. and there is a new high for the index. so it anticipates this is happening. other than that you can see the financials are leading the market there. there is major sector financials. once again, risk on. helping. and of course helping with positive comments. keeping rates low. the lagger groups, those of course are the defense of names. this has been going on now for basically the whole week. >> right. kenny, come in. all right, now s&p dividend rate is moving to new highs basically about $300 million. significant, not significant, is that something you watch? >> i think it is significant. listen, the baby boomer generation, of which i am one, that's part of your portfolio now. certainly younger people are not but as you look and allocate stock, you get back into the equity market. that whole dividend play and back to businessic investing, we have been talking about that for a while. and we have news with the banks raising dividends, it may be
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priced into the stocks. we may actually see that, settle news reaction. which is what you intermated, that if you see them soft a little bit, no reason it panic at all. >> good news on the dividend story, and a great story, there is plenty of room for more. payout is 37%. company is paying out 36%. historically in 50% range. they could raise dividends out there and still be well below what i've been historically been playing out. >> we have highs in the dow jones industrial average. you made the point in your morning note to watch the s&p. >> he is still not there yet. we are still about a percent, maybe a percent and quarter away from the s&p. my sense is they want to push this market until the s&p breaks it too. >> then what do you do? >> then you get the sigh of relief and you see the market roll over a little bit and just kind of consolidate and rebalance. not an opportunity for anyone to panic at all but actually an
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opportunity for people that, you know, want cheaper prices. i think you will get it. but you're not going to get it until you force the s&p to that level. >> bernanke, both reiterating within a week. >> right. >> there is the bernanke -- >> showing some breath in the market today, ty. over to you. >> sue, thank you. seven weeks after national transportation safety board launching an investigation into the lithium ion batteries used in the boeing dream liners, the agency releasing an update about findings. on the roller coaster ride since the first fire problems with 787s reported. you see the stock at 81 .04 almost up two bucks. phil lebeau covering the story forness chicago. phil? >> tyler, here is the report from ntsb. basically a 5 factual update about the investigation and when we look into the fire back in january, in boston, here is the bottom line according to the
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ntsb. they are unable to find a root cause behind the 787 dreamliner battery fire. no recommendation from ntsb at this point. investigation continues, by the way, ntsb holding a forum and hearing regarding lithium ion batteries and 787 certification process. that is happening next month. meanwhile, beauing is waiting for the faa to approve the suggested fixes that it presented to the faa last week. the faa, i'm told, is expected to approve a condition yl approval of the fixes perhaps as early as next week. might see the dreamliner groundings lifted by the end of april or beginning of may. and that's one reason why you look at shares of boeing up more than 2.5%, sue. we haven't seen shares of boeing trading at this level since may of 2011. sue, back to you. >> wow, phil, thank you very much. you know, four out of five dentist recommend it and now many analyst will probably as
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well. coal cobalt gate-palmolive splitti splitti splitting. up right now. >> the billionaire who accumulating a 6% stake in the company wants the pc maker to pay out nearly $16 billion in a special dividend, called leverage recapitalization. stock trading above the $13.60 buyout offer right now. jon fortt is in san francisco with more on the future of dell. jon? >> another billionaire battle with carl icahn battling, but this time taking on michael dell. under michael dell's plan it take the company private it would take on about $15 billion in debt. under icahn's plan --
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>> i have to interrupt you. sorry do it. but zuckerberg has come on stage. >> can you believe the best newspaper should have a broad diversity of content. high quality public content from world renowned sources and socially and relevant updates from family, friends and people around you. it should also enable you to drill into any topic you want it discuss, that you want to go over. it should have a front page or top news section of the most important things going on across all topics and should let you drill down into any individual topic that you want. we also believe that the best personalized newspaper should be visual and rich and engaging. the stories around you are intricate and detailed and they deserve to be displayed with more than just text. so today we're going to talk about a design we think reflects this evolving face in order to build a foundation for the best personalized newspaper.
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this is an early version of news feed. i think that this one is from 2007. and from the beginning, our goal with news feed was different from what any other social service was trying to provide. our view is that if you're going to contribute to this personalized newspaper, you need to be able to share any kind of content that you want. status updates. photos, videos, links, location, pins from pinterest if you want. not back then, but now. you also need to share with any audience you want. you should share publicly. share with anyone in the world. with your friends. a smaller group or a few friends with a message. types of stories that we tell when we're communicating with a photo instead of text are completely different. and you want to be able to tell both. the types of stories that you tell when you're communicating publicly as opposed to just with a few people are completely different and you want to be
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able to tell both of those as well. so we think that there's a really important place for a personalized newspaper that can bring all of these things together. now there's no other social service like this at scale. there are a lot of other great social apps that enable you to share one kind of content or with one audience. and i think these apps are great. but i think there's a special place in the world for this personalized newspaper, where it can really span the whole gamut and make it so you can see all of the types of content in one place. now because news feed supports such a broad range of content types, as the way that we all share changes, the composition of news feed naturally changes as well. so you know, back when we were first getting started, news feed was primarily made up of text. but now that we have these cameras in our pocks with the phones, we can upload photos, news feed has become primarily about visual content. as can you see, since the end of
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2011, now almost 50% of the content in the average news feed is photos and visual content. and similarly, a lot of us think about news feed as primarily about friends and what your friends are up to. but again, since the end of 2011, you can see the amount of content from pages and public figures who you are following publicly has increase sewed now in the average news feed it is more than 25, almost 30% of the content. so how we are all sharing is changing. the design of your news feed needs to reflect this evolving face of news feed. and who you are sharing with. of course we want to share with friend and get updates from friends but we also want updates from publications and businesses that we care about and artist and world leaders. so this is the evolving face of news feed and that the folks that you are sharing with and want to get updates from and that's what we want to talk about today. is the design that we think
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reflects this evolving face of news feed. so here is where we are today with news feed. on mobile and desktop. and here is the new design. this design reflects the evolving face of your news feed. it is designed for the way we are all sharing today and the trends that we see going forward. and now there are three things we will focus on today in this design. rich stories, visual and engaging. your choice of different feeds. dig into any topic that you want. aep a mobile inspired consistent ui. the same experience across your mobile devices and desktop as well.
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now, we are really proud to show you this new design and we are excited to get it into all of your hands and into the hands of all of the people around the world who love facebook. and now, in order to get into more detail on this, i would like to hand it off to our director 6 design, julie zoo. >> let me bring in julia boorstin. she is at that big facebook event in menlo park, california. julia, first your reaction to this. we flew it would be something along those lines but what do you think of what mr. zuckerberg unveiled so far? >> well, sue, i think it is exciting. it is always nice to hear directly from ceo mark zuckerberg and what he unveiled in the new news feed is a much cleaner design that puts emphasis on photos and videos. as can you see in his demo there, the photos and videos are front and center. it is interesting that mobile experience looks almost identical to the the desktop
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experience. this comes as facebook puts more emphasis an mobile app as zuckerberg said, this is a mobile first design. a phrase he used, he said this is like a personal newspaper. a newspaper is not a term that you associate very much with facebook but he says this is like a personalized newspaper and people should be able to customize their news feed to get information from friends and also public figures and things happening around the world. >> i think this is particularly interesting because it shows in some ways facebook is going head to head with twitter. we think of facebook of interacting with friends by allowing you to access with leaders and people from around the world are thinking, it basically says they also want you to be able to sort of exist and interact with people in that sort of public bigger stage rather than just your friend group. this is, in a way, moving towards twitter and linkedin, that public conversation. but mobile first, very visual. i think the potential to insert video here should help grow
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facebook's revenue down the line. >> we are up 2% on the stock right now. you mentioned the fact that it looks like they are going after twitter. buff other publicly traded companies, which one gets hurt the most from what facebook has just announced? >> well look, facebook and google aren't competing because google has google plus but google plus isn't really sharing with friends and going publicly. but facebook is news can you get from the world, news from your friends, news from leaders you choose to follow the way you choose to follow people on twitter. i think this is a good thing. particularly from an advertising perspective. the reason this is boosting the stock because it means people will be more engaged and you can insert video ads which cost more to advertisers. >> julia, thank you so much. back it julia at various times throughout the facebook event. shares of face book as can you see, are moving today. they are up better than 2%.
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recovering quite a bit from their low. let's bring the chart back up to opening day and you can see that may 18th of 2012 was down 27%. right now, facebook is trading at 28.02, up better than 2%. if you go back six months to september, however, you have to benchmark the stock from that point, that would put it up 44%. ty? >> all right, sue, do business and friendship mix or is it a recipe for disaster? courtney reagan and kayl kayla tausche covering the j th penny martha saga. >> definitely disaster in this one. in the courtroom, no one is passing out friendship bracelets here. >> the question is, can ron johnson survive? >> not unless the numbers start going in the other direction. >> kayla and courtney, could be a sitcom.
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no, you're not broke. more in a minute when we come back. ♪ no two people have the same financial goals. pnc works with you to understand yours and help plan for your retirement. visit a branch or call now for your personal retirement review. ♪ [ 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. ♪
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year. briefly halted after february sales figures were released prematurely. net sales rising to 966 million. store sales rose 3%. a bit off highs after trading resumed. right now trade up 3.5% though at 35 .67. ty? >> sue, power rundown, all about one topic. j jc penney. they really are not two broke girls. is it time for ron johnson to step down after just a year on the job? can he turn the company around? you spent time with him. he's had ambitious plans but a couple of missteps. >> true. at least from what ron johnson says, the board is still behind him. we know that can change quickly. we saw a lot of of the shares there. he is still a board member. i think we knew this would take
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some time. you can't shut the doors overnight and reinvent to the next day. at the same time these numbers are scary. >> what do you think? can they live it out? >> i think it was innovation and turn the company around and make it into something that it only had dreams of being. but the fact is, that he hasn't really delivered on that. numbers are going the wrong way and i this i a lot of investors fear he doesn't have any other arrows in his quiver if this one thesis didn't work. >> moving on to the next topic. let's take a closer look at shares of jc penney. down since ceo ron johnson took over. but stock seeing a pop today. up to 1477. there's got to be value in here somewhere, kayla. >> the numbers would make it look like there is. trading at about one times book, peers trading at 2 1/2 times. that multiple turns upside down quickly. >> there is a reason value stocks stay value stocks for a
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long time. >> i believe a 52-week low is about 14.20. we are close there. if you don't want to shop jc penney, but you want sales, maybe it is buying at the stock. i'm not sure yet. >> so you have a struggling can company, you talk about arrows in the quiver, guys not having more arrows to shoot, a wounded company, wounded stock price, is this company a take over target? >> i think i would have probably said yes about six months ago. but after last week, debt downgraded to triple c. private equity won invest in triple seat business that is performing the way it is because there's too much risk that it would go under. that more debt would be such a bad thing that it could crater the company. i'm not sure a strategic court, you know better than i would, but i don't know if strategic values the brand enough at this point either. >> i think that's the problem. from the start they would have gone private to change the name and turn the whole thing inside out. from the way it operates to finance. right now the market cap is 3.2
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billion. not huge as far as financing comes in. but richard schultz wasn't able to do it with best buy. >> no. i'm thinking of best buy, barnes & noble. a lot of the big old style retailers. >> the opportunity, i believe, is missed. >> maybe the right point there. sue? >> ty, if you yell barracuda, everybody says, what? but if you yell, shark, you may have panic on your hands. we will take to you a string of beaches here in the u.s. that are closed up tight because of all the sharks lurking just off-shore. so before you leave for that late winter vacation, you better watch our next story. don't become their lunch. instead, stick with us on "power lunch." zap technology.
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welcome back to "power lunch." one of the biggest percentage gains wbs the semi conductor upgraded by jm keys. market here is 70 bucks. stock up 7.5% right now. sue, back to you. >> josh, thanks so much. we know there is snow in the northeast and sunny and warm in south florida. but if you're planning on vis visiting the sunshine state, stay in the pool. beaches from jupiter to palm beach are closed. most of the sharks are spinner
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all right. take a look at facebook stock. up just under 2%. mark zuckerberg announcing and unveiling a new version of news feed. julia boorstin is monitoring that. the gold market is closing now. seems like platinum has the billinger gain. >> it does today. precious metals gold and silver have been stronger earlier on the comments that bushed the puro higher against the dollar. once again we see a fade into the close. traders kind of cautious, not much appetite for safe havens. but industrial metals like
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copper, platinum. platinum and palladium used in catalytic converters today. sue, people are thinking maybe we are a little more bullish about the economy. see you tomorrow. >> bertha thanks so much. trading action here on the floor of the dow is up. we talked about the financials earlier, which are higher and certainly led the rally. you are also looking at energy sectors too. natural gas. >> it is very important to watch how these stocks have been moving the lastast few days bece natural gas is moving a little bit. up dramatically. we are seeing the stocks, look at this, 8% on upl. apache, can k078 stock. look at this. 3, 4, 5% gains here. energy is a 5 hot sector right now. take a look at natural gas. what is that gas a year ago? in may, 1.90. now, look, up almost a hundred percent. an new high breakout from november highs but still doing well right now. noticeable. that's the hot sector for the
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moment here. take a look at xop, and again, i emphasize exchange traded funds. can you own these exploration and production stocks. here it is sitting at a new high. there is banks stocks, take a look in anticipation of major banks to pass the stress test out later tonight. >> banks of america hanging on to the 2% move of the day. >> 1% dividend, maybe. dividends hikes. >> maybe. >> woohoo. >> thanks, bob. over to the nasdaq and seema mody is there following big movers for us. hi, seem why. >> hey, sue. we are trading at fresh 12-year high. nasdaq on track for biggest weekly gain in nine weeks. cisco hitting fresh 52-week high on heavy volume. also big battle in tech continues between apple and google. google past app toll become the biggest stock by 50 of the biggest u.s. fund. even though google is trading at a higher valuation than apple,
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that stock continues to get a bid. and apple trading morning loss. and the big winner on tech earnings, we are seeing many computers in networking space. look at jds uniphase as well as juniper networks up on the day. now back to you. >> thank you. rick santelli is tracking reaction. ricky, did it move the interest rate sector? >> it did to some extent, but not really. and you'll see in a second. if you look at it 24-hour chart, two-day chart, excuse me, of ten-year note yield, you can see the ten-year yield moves higher. but the move started at adp yesterday and continued a bit. probably more due to stocks holding their gains. if you look at one-month chart you can see we are close to high yield closing a little above 2%. contrast that to the ten-year in
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their own backyard. closer than high yields than low yields. the chart says it all. there isn't a cut in rates coming any time soon. look at the pound versus the dollar, highly unchanged. nothing changed by the mpc at uk bank as well. tyler, it is all yours. >> mr. santelli, thanks. pushing the dow with highs today. are the average americans more wealthy today? steve liesman has a new fed report. steve? >> yeah, a long time coming folks and long time gone. the c o 0cosby, stills and nash song. all of the assets owned by americans minus liabilities. at the low we saw $16 trillion
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to 51.4 trillion. we've come back, taking it just about five years to get back what we lost in the financial crisis. that is just about a trillion and change, up below that. how did we get back? you can see, household wealth fell and it just is creeping back up in the last couple quarters. but the stock market has been the primary mover here coming off of the bottom, $8 trillion up now near $15 trillion. one of the things we are finding, leveraging on the part of americans has seem to come to a stop here. let's look at the next chart when it comes to the deleveraging. this is the change in consumer credit. green line is consumer credit and white line is home mortgage. finally hitting the zero line. falling for this entire time consumer credit just flipping up and a little bit above the zero line. so a little bit more willingness on the part of households to
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take on debt. finally our equity in our homes, this is what it was back in the 1980s up here near 65, 70%. comes steadily down until it dropped like a roller coaster right here and we've been inching our way back up, tyler. little more equity in our homes. little more stocks in our portfolio. it took us five years to get here. that's why crosby, stills and nash has the right -- >> you could be the weather man. >> with the right music, of course?two is the vocalist on the song, long time coming. >> i think david -- i don't think neil young was in there. >> i think you're right. either crosby -- >> the we have the coolest viewers that will tell us. >> tell us instantly. >> maybe you know the answer, sue. >> i think actually steve is right. but that neither here nor there. we've got breaking news at this hour. mark zuckerberg taking the stage
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at that facebook event, announcing a change to the facebook news feed. shares have been moving. now up 1.5%. at one point up 3% on that particular stock. julia boorstin is live in menlo park with more on what facebook has planned. so far, wall street likes what it has seen and you think that is linked to more advertising? >> that right. face book's new news feed has a richer story line. that means it is much, much bigger, photos, also much bigger emphasis on video. if you take a look on what it looks like, i hope we are playing video, photos are front and center and take up a bigger part of the page. whether your smart phone, tablet or pc. it is interesting, even though this is an announcement about ads, they're not ignoring ads, saying the idea of a richer story line goes across the board. everything, including ads, will
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get richer. zuckerberg used the term personalized newspaper, saying people can switch between news feeds and personalize the experience the one might go through the sports section after newspaper. let's take a listen to what zuckerberg had to say. >> how we are all sharing is changing. the design of your news feed news to reflect this evolving face of news feed and who you are sharing with. of course we all want it share with friend and get update to our friends but also updates from our publications and businesses that we care about and artist and world leaders. >> it is interesting here that zuckerberg is also sort of embracing a more public news feed persona. there was a lot of talk about pinterest, so they are less after competitor. this will start with the web experience then the mobile. but they will roll it out slowly because they want to make sure
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they get it right. guys, back over to you. >> thank you very much. now to josh lipton for a quick market flash. hey, josh. >> hi there. news on apple we want to bring you. new york times reporting that apple's efforts to create an internet radio service to compete with pandora is delayed. apple hoping to introduce the service early this year but now it is not likely to reach the market until the summer, if not lateer. pandora, by the way, nice intraday spike. up about 2 1/2 percent right now. sue, back to you. >> thanks, josh, very much. if you are looking for opportunity in the market, we have the next big sector to invest in and publicly traded companies benefitting from that. plus, top ranked housing analyst and she correctly called the top and bottom of the housing market. her next big call in two minutes time. [ man ] i've been out there most of my life.
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truck and engine nava star has a new ceo. replacing lewis campbell who came out of retirement to lead the company through some rough patches. there was a narrowly quarterly loss and improved cash balance sheets. sue? >> could be the next red-hot sector, ty, to invest in. the big business of aging population. where are the opportunities in this industry and what public companies are in it? jane wells has been looking into that. she is in los angeles. hi, jane. >> hey, sue. more than 10 million americans are over the age of 85 and increasingly paem are aging at home, not in a facility. people like lorraine irvine who hired a care giver through alta
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home care, says they are hiring 15 to 20 people a week. >> i have so many friends that absolutely, you know, wish they could afford this. they wish they could. >> this year we will do about 15 million. we service currently between louisiana and california, about 600 clients everyday. >> are you hiring? >> we are hiring everyday. it is our biggest challenge. >> staff -- alta trains its own staff and says most are rejected. big public can companies are circling the players to get a piece of business be not subject to whims of medicare. medicare is seeing stocks rise at least 70% over the last year. a thousand new agency open netd u.s. last year, including ten knew franchising corporations. but this is not for everyone. >> some of them are a little bit
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surprised at just how much work it is. because it comes back to customer service. you've got to deal with not only the senior, but the senior's entire family. >> not only do business -- do people see this business growing as baby boomers live longer, more people are buying long-term care insurance. next, meet a high end granny nanny. back to you. >> i can't wait. great story, jane. thanks so much. one of the most respected analysts in the housing market speaking exclusively to cnbc. see where she stands on your house next. plus, powerhouse. we spot. top real estate markets. today it is atlanta. see why it is tough to buy there. after a quick 30-second break.
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coming up on "street signs," holler for a dollar. the case for going along the dollar whether the payroll is going on the streak. and the ceo on making dressing your little one with the click of a mouse a whole lot earlier. turning to millions each year and making money from wheat, corn and soy beans and the wonderful jane wells will be back on with the story about the granny nanny. top of the hour at 2:00, folks. >> see you at 2:00, mandy. the housing market, another
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big bold call today on fast money halftime report. >> i'm probably the most bullish i've ever been fundamentally and i'm dating myself. been around almost 20 years. think of sentiment like a battle ship. pointed downward for 7 years. or at least until last year. then inventory cleared. blight goes away. consumers feel better and now there is this urgency to go find a house. there are realtors blanketing neighborhoods asking people to sell their homes. i think it can go up the next four to six years. that battle ship pointing upward historically for several cycles, back to the 70s, it doesn't change direction very quickly. just like you couldn't convince someone to buy a house. they are a fool if they buy a husband. today, the residential imagery is back. >> top housing analyst is bullish in the yahoo! finance question. we ask you where you stand on that. 34% of you say yes. 25% are up in the air. and 41% say no. ty? >> all right, sue.
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today's powerhouse, we will take you down to atlanta. welcome to joe gibson, associate broker with in town real estate. first, let's give you stats on the market. 2400 and then some sales over the past year. a little over $380,000. average day on the market, about 74. three months of inventory in that town. joe, welcome. take us to the first house in town. let me ask first, how is the market? hot, cold, whatever? >> warm to hot. kind of crazy right now. a huge shift in the last year. right now, trying to find places for buyers in the challenge for an agent. i today reach out to agent to say, do you have anything you will put on the market? because it is not out there now. >> inventory is tight. let's go first to 11:01 juniper street. a couple are sales pending but it gives you a good idea of what your money buys in atlanta right
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now. tell me about this one. >> right. this is park central. built in the boom around the olympics. built two blocks from paid mopt park. so you have the amenity outside the community, restaurant, three blocks from the rail train to get you commuting into atlanta. within the park central itself, you've got fantastic amenities. you have rather concierge and things like that but then an indoor heated lap pool, outdoor pool, sauna, yoga studio. all that within the confines of the complex. on the eighth floor, sky deck with 200 degree views.
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>> just like mannihattan. >> like manhattan. >> when people come to atlanta and have their wish list of what they want, this is penn avenue. a beautiful southern front porch. still walking distance it restaurant and shops. but they want a beautiful 1920s craftsman. that's penn. it was originally built as a duplex. it was enlarged years ago and refined in recent years. big open floor plan. lot of space. and you're two, three blocks from piedmont park and close to entertainment. it is great. >> we are tight on time. let's go to 445 harold avenue. just sold for $825,000. >> harold avenue, i've sold twice. sold it once this summer. those people were transferred. just sold it again. a beautiful community, two blocks to shops and things. but that gorgeous frank lloyd wright style.
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gorgeous outside and in. >> 5,000 square feet there for $825,000. looks like a very nice place. have a good selling season. >> thank you so much. i appreciate it. >> all right, sooe sue, down to you. >> ty, bill ackman is risky business these days, apparently. we will look at wins and losses with scott wapner. t the man who brought you the big fight between mr. ackman and mr. icahn. that's coming up. 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. ♪ after all, what's the point of talking if you don't have something important to say? ♪
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bold bets without blinking. you wouldn't be a billionaire, i wouldn't know, without being bold. some are questioning mr. ackman's strategy. case in point, brand new vanity fair profile which traces the simmering grudge match between ackman and fellow hedge fund rivals dan loeb and carl icahn. that is mr. loeb on the left and icahn on the right. how is ackman doing, really? >> depends on what you want it look at. he has a couple investments doing good. general growth properties has been a winner. but isn't it interesting that most people don't focus on those. they always point to the borders. big miss for ackman. they point to the target. >> target. >> even bigger miss or at least on the same level. now you've got jc penney out there, right? ackman made this tremendous long bet, betting not only on the
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company but on ron johnson and it's gone the other way. right? a lot of problems and sort of hanging out there now is what's going to work out with herbalife. that the one that we're not so sure as to how it's all going to play out. but the strategy that this guy has had throughout the years, it is to kind of stick his neck out. he is a risk taker. he says in the article, trying to lead the pack. a guy always trying to lead the pack. not afraid to take risks. in another article i read, my personality is to be a fixer. a guy who thinks he can go in and change a situation from where it currently sits. >> herbalife, it's short, correct? he has been short. >> a billion dollar short bet on herbalife. >> that's a short bet. and he made comments about herbalife, questioning the validity. my words, the legality, of their business model. >> right. >> as a multilevel -- >> he called it a pyramid
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scheme. >> yep. >> he was locked in this thing with carl icahn. that's what we exploded on television. then dan loeb got involved. that the crux of this article. this long relationship that started out pretty well. a bike ride that went awry thp p then dan loeb invested, with target, which didn't go well and certainly the vanity -- >> it can make you money and -- >> yes. >> ackman gets into messy situations that turn into quick stand, so my impression. >> because that's his personality. does he walk into most rooms thinking, i'm the smartest guy in the room? probably. does that rub some people the wrong way? probably. but he continues to do it because that's just his style. >> i i will wrap it up here. you compare him.
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he goes into messy companies, messy situations. compare, contrast with buffet who goes into great companies selling what he perceives to be a value and goes into where it ain't broken. >> a value investor versus activist. pure activist investor. a guy who want to be a rebel rouser in the show. whether icahn, ackman, einhorn. >> my neighbor, scott wapner, good to be with you, man. >> see you, man. >> we will hit the floor, next, at the nyse. zap technology. departure. hertz gold plus rewards also offers ereturn-- our fastest way to return your car. just note your mileage and zap ! you're outta there ! we'll e-mail your receipt in a flash, too. it's just another way you'll be traveling at the speed of hertz.
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