tv Power Lunch CNBC May 7, 2013 1:00pm-2:01pm EDT
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>> cameron international. >> international paper has had about a 7% or 8% pullback after a nice run-up. buy it here. >> dd, dupont. i think she goes higher. >> not daisy duke. that does it for us. don't forget to catch two special editions from the conference in vegas. "power lunch" begins right now. the second half of the trading day starts right now. good afternoon, everybody. under attack, some of the most dreaded names in cyberattacks say they are launching a massive offensive. today eamon javers is in a secure location watching a team of internet sleuths, internet defenders, he's with us live. norwegian cruise lines launching a brand-new ship, and not a dingy, folks. it is docked in manhattan right now. simon hobbs is on boor, recording on the embattled industry, while showing us that
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the luxury that awaits the first passengers on this levi athan of the seas. plus a story the whole country is talking about. >> i've been missing for ten years, and i'm out here, i'm free now. >> i came home and i was in my living room eating my big mac, and we hear this girl going nuts on the door. a shocking, stunning, disturbing story. three young women kidnapped separately in cleveland, finally freed at a dramatic rescue and 911 call. we will have details coming up. a lot more on that story. it's stunning. we're going to start, though, tyler with what many fear could be a large-scale hacker attack. several experts in the field reporting the group anonymous and islamic hacker group are targeting u.s.-based sites in an
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offensive called, quote op usa, this as an 83-page report is issued to congress accusing the chinese military spying on the u.s. in order to steal technology. eamon javers is live in the town of rome, new york, with a special team protecting america's internet infrastructure from those hackers. over to you, eamon. >> reporter: hi, sue. take a look at some of these pictures. various web sites around the web have been assaulted by this team, which is apparently some combination of anonymous and islamic-based cyberattackers. they're putting up pictures defacing some of the web sites, causing problems basically, but nothing that seems too, too severe at least so far, but there's a lot of evidence these attackers have been very active today across the entire internet. this comes one day after the pentagon for the first time really called out chinese
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cyberhackers, and laid out in specific what they think the chinese military is doing. take a look at this report that the pentagon put out yesterday, saying china is using its computer net work exploitation, to support economic and defense industrial-based sectors that support u.s., national defense programs. and speaking of u.s. national defense programs, where i'm standing right here is the cyberincident response center, part of a compete calls excelus. as such they're on the receiving end of a lot of activity. what they're doing here is examining the inbound attacks, parsing them apart, figuring out what kind of malware is coming in and figuring out how to respond to all of that. the folks here say over the course of the years they've been doing this, they actually developed a grudging respect for the adversary. take a listen. >> i think what really surprises me about it is the creativity that they come at you with.
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i keep using that word, and i mean it. it's one of those things we will sometimes sit there and go, that's really cool. it's evil, but it's cool. >> reporter: so evil but cool is the way they look at it here. they're constantly watching these activities. but all of that is coming in in real time. they're working in this room here, in this office in rome new york, to trying to defend the company. bev breaking news from the bond market. the three-year note was up for auction. rick? >> welcome to the may refunding. 0.354, which is right in the middle of the w.i. market, toward the bid side, which was 35.5, offered at 35. the ten auction bid to cover, sue, is 3.57.
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this one 3.38. but all the other metrics were priced solid. we give this auction a b-minus. we're a little does you should that dealer took 54.7%. tomorrow 24 billion seven-year notes. back to you. >> thank you very much, ricky. new highs for the dow and s&p. with today's advance, the dow is up nearly 15%, twice what it gained last year. the s&p 500 has now exceeded last year's percentage gain of 13%. the nasdaq still has some catching up to do, but nothing to sneeze at. it's up 12.4% this year, about 3.5% less than what it gained last year. some pretty impressive percentage gains. >> absolutely the case, sue. thank you. two majors stories we need to tell you about. first off. some ongoing problems for microsoft, tracing right back to the big product launch windows 8. jon fortt has the story, but
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first what many are calling the great rotation into technology stocks, and seema mody is covers it live at the nasdaq. >> tyler, it's something we covered on "power lunch" just a month back. we're finally seeing this rotation of capital into tech, and here are a couple reasons why. analysts say the better than expected economic data is usually direct already correlated with i.t. spending, second, many of the defensive sectors like health care and consumer staples are trading at a premium to the yield seekers are finding dividend-paying tech stocks. much of that has to do with appear 8, though mark newton at gray wolf says apple is getting close to overbought levels. aside from many ale, it's the other tech giants that have defensive qualities, stable earnings growth that are leading this tech sector higher. microsoft, another name that has moved sharply to the up side, the 2.7% dividend yield. it beat on the earnings.
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that stock is up about 16% over the past month. tyler? >> seema, thank you very much. now to a tech giant that seems so often sort of not to be able to get out of its own way. microsoft is the company. year to date though, up. problems with windows 8. jon fortt is on the case. hi, jon. >> hay, tyler. windows was about 28%, delivering 5.7 billion in revenue, flat with the years before. that brings us to today's news. microsoft saying in the plainest language yet that windows blue will be coming before the end of the year. what will be new? well, microsoft said during the earnings call that smaller tab letts are on the way. that's one change. microsoft chief marketing officer also hinted today at changes in response to customer feedback, which may mean the return of the start -- it
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certainly means more options for businesses. now, i sat down with microsoft's ceo steve balmer in the fall, and he talked about what he was trying to accomplish with the o.s. >> we're trying to evolve window in such a way that they can use windows devices pcs, tab letts, et cetera for play and for work, and not have to compromise between the two. >> one way to read window blue is that microsoft's no-compromise approach has resulted in some compromises, particularly pc users says it's to tab lett like. we'll see if microsoft strikes a better balance this time. >> the hedge fund manager said hi form has added to its position, calling it a more shareholders friendly outfit. after hitting an intraday low back on april 20th, the stock
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has surged just a bit, and you can see it is at 457.24, and that from the 22nd is a 17% gain. meanwhile, intel has unveiled a new chip that will reportedly make mobile devices operate three times faster the the chip called silvermont, not voldemort, may help battery life using one fifth the energy of existing chips. the chip is expected to hit the market later this year. shares of intel right now up 16 cents at 24.07. there you see that company up about 16% this year. sue? ty, there are two companies reporting blowout earnings, fossil, the fashion accessory maker saw the earnings rise 24% on strong sales of the watches and handbags, taking a look at super fossil stock is trading right now, it is on the up side by 9.3% by 108.19. directv, easily beat street
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expectations as well. revenue jumped 8% of 7.6 billion. the stock is responding, up about 7% to 61.99. norwegian cruise lines reporting better than expected earnings due to increased spending on board. despite 9 recent problems in the industry as a whole, the stock is up in 70% since being priced at $19 a share in january. simon hobbs is on board the company's brand-new cruiseship called "the breakaway" in new york city. simon, i passed it on the way down to the stokes. it's a beauty, that ship. >> reporter: it is a beauty, and it cost $900 million to build. welcome to what is the cutting edge of making profits in the cruise line industry at the moment. the norwegian cruise lines "breakaway" came into port for the first time. it would be the biggest to operate regularly on the new york's home port, as they called
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it. three times the length of an american football pitch. 4,000 guests on board, 1600 crew members. you mentioned how well norwegian's stock prices has done recently. since it ipo'd, there's the promise that it will take on the bigger rivals and do that through generating superior profits through the way it can innovate with ships like this, that it can drive the margins, 400, 500 basis points higher through the innovation. we have five water slides here, we've got a huge rope jungle up here which we better not really mention. cartoon characters, three broadway shows, and that is how you get people to book, guys, and tyler, to pay more for that booking. back to you. >> we want you on the water slide before the end of the day, simon. promise? >> reporter: dream on, tyler
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mathisen. dream on. >> see you later, simon. we change gears completely now. afternoon amassing story and it started with this disturbing 911 call. >> i've been missing for ten years, and i'm here, i'm free now. >> that is the voice of amanda berry. she vanished in 12003. she and two other women were being held in this home undetected for about ten years. it unravelled when a neighbor, charles ramsey heard berry screaming for help. listen. >> i was at mcdonald's. i cam home, in my living room eating my big mac, and we heard this girl going nuts on the door. >> brian shactman has been following the torrie that has the country talking. >> basically they escaped from captivity. not only do we hear and see things unfold.
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let's go back to the 911 called. >> help my. >> do you need police, fire or ambulance? >> i need police. >> okay. what's going on there? >> i've been kidnapped, and i've been missing for ten years, and i'm here. i'm free now. hello? >> yes, talk to the police when they get there. >> okay. right now -- >> we'll get there as soon as we get a car open. >> i need them now. >> she has three brothers are now in custody, one owned the home that's reportedly in foreclosure. there was also a 6-year-old girl in the home, we're not sure who knew about this, but clearly -- let's talk to the neighbor against. they had no clue. >> i'm telling you the truth, man, i was 59 mcdonald's. i cac home, eatic my big mac, and we hear this girl going nuts on the door. when i come out the house and look, i thought that doesn't look right, because my next-door
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neighborhood is an older dude. i handed him the mail. i saw him at 3:30 today. he looked the same -- you figure if you're doing what you're doing, you've got to give something away. he's cool as a cucumber. she said her last name was berry, help me, naturally it clicked in, you know what i mean? i took her, pried the door open so she could climb through there. how he has the dorell, he had it locked, and she said there's three more girls up there. i figured she meant children. that girl just walked out of there. they had them covered up in blank either, skinny, dehydrated or traumatized. >> you almost don't know what to say. the trauma that's potentially involved. they're at an undisclosed location. we'll know more as the case goes on. there was a case like this in california, where someone was in captivity. >> it's amazing that nobody around them saw or knew. i just can't fathom what was
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going on. >> brian, thank you very much. sue? gentlemen, thank you, michelle caruso-cabrera really going after attorney general eric snyderman this morning. did he know all the facts before taking one family's side against the banks? this isn't the first time a big politician possibly didn't back the right horse. that's coming up next. plus much more of simon hobbs on that new cries line ship. he's going to show us some of the fun stuff on board. looks like it's more scared than fun, but simon is a trooper. we're back in two. [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time.
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aig losing ground today. goldman sachs downgrading the insurer to neutral from buy, with the firm seeing limited up side for the stock. the stock is up more than 25% this year. it's down on today's trading session by about 2.5%. eric snyderman was on "squawk box" this morning talks about the office's suit on behalf of a home eastern. watch what happens when michelle caruso-cabrera starts asking some questions. >> they lived in their house for 35 years, right? >> i think it was 37. a long time. >> 37 years, so most mortgages are only 30 years long, right? when did they accumulate more debt? >> they were involved, as millions of new yorkers were, in getting induced into
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refinancing. to do that -- >> it couldn't have been a refinancing. the mortgage would have been almost over at that point? they took money out, probably? >> i don't know how much they took out. >> but shouldn't you know that since it's in your press release? that's 9 item you cite. >> no, we're actually not going after the harts. >> i notice, you use them as the example of why you need to take this action. >> we have 339 complaints like this family, a who will stack of complaints if you want to see them. >> let's say the banks bear a lot of blame, i'll give you that. do the hardens bear any responsibility for having taken on a lot of new debt for the home that was almost paid off. >> you can make whatever argument -- i don't know you know the facts -- >> and you don't either, apparently. >> diana olick covers house, you birr first back to michelle. michelle, he said you could have
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the documents. our investigative team put the request in. will we have them yet? >> no, they will not provide us. they said there are privacy issues. they gave you will a polyer point same, reiterating a lot of the points in original suit, which is more about the processing of foreclosure payments, which is a slightly different issue, but i brought up these questions, because he spends a lot of time in the press release presumably talking about the family, but on air didn't seem to know a whole lot about them. >> the questions you were asking i thought were very concise, very logical, and you would think he would have known a bit more about it if he's going to come on national area waves and talk about the situation. >> it's a pretty big pr mistake, quite frankly. >> i totally agree. diana? >> well, sue, this isn't the first time an official has used a questionable example. last summer president obama went to reno to talk about
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responsible underwater borrowers. we thought it was strange, because the couple had owned their house a long time. we fouled they did a cashout reify for almost $200,000. but let's not lose sight of the bigger picture much are the banks living up to what they're supposed to do? are they doing better customer service? they're supposed to be answering customers more quickly, not foreclosure on them they're supposed to have a sing the point of contact. the new york a.g. put in 339 violations, well, we looked at a report from the monitor of the settlement joseph a. smith, the former north carolina banking commissioner, he did a report in february, showing 5,700 consumer complaints about all the same issues that the new york a.g. is talking about. these banks will have a lot to answer for, joseph smith is putting out another report in june independen
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june. >> i think the -- the attorney general himself is known as a crusader. a lot of people are understandably critical. they wonder if he's gone to the elliott spits are school of advancement, and when he doesn't necessarily know the facts of the case, that he's presented in the press release, it makes you wonder if he's just using them as some kind of pawn in order to advance himself. >> yeah, i think that's exactly the point. michelle, diana, thank you very much. appreciate it. all right. let's send it over for josh. >> we are watching radia here, near the radian saying the inventory the mortgage delinquencies fell from article 85,000 to some 81,000. some analysts are still skeptical. they point out what they call the big inventory of 12-month late payments. it can be a bad signs, because many of those loans could go into foreclosure. they say the amount of claims paid in april is higher than guidance earlier in the year.
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investors are cheering this name. up around 114% just so far this year. tyler, back to you. >> josh, thank you very much. jpmorgan chief jamie dimon under fire, new calls for his ceo and chairmanship roles to be split. will dimon give one or the other up? plus it is, as we manipulationed a moment ago, the biggest cruise ship ever to port in new york city. simon hobbs is there with a very special guest. >> reporter: you know, tyler, if you're going to make money in the cruise ship industry, you have to do the deal with nickelodeon to get spongebob on board for the kids and safe haven areas for those that want 24-hour consequence years of age. that and more with the "breakaway." the ceo is ahead on "power lunch."
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he's agreed to give it up. that's today? [ male announcer ] we'll be with him all day as he goes back to taking tylenol. that was okay, but after lunch my knee started to hurt again, and now i gotta take more pills. ♪ yup another pill stop. can i get my aleve back yet? ♪ for my pain, i want my aleve. ♪ [ male announcer ] this may, buy aleve and help those in need. it also recommended against reelecting six of the 11 board members. we'll have more on the story in the next half hour. and a 55% drop in the quarterly profits. europe's largest bank, hsbc saw its first-quarter profits nearly
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double as costs and bad debt both fell. ty, to you. shares of now weejen cruise lines hitting new highs, beating earnings estimate for the first calf. simon hobbs is on board. he's got a very, very interesting tour for us. hi, simon. >> i do. later in the program we'll have an exclusive interview with the ceo who's basically paid $900 million for shall ship. when you spend $900 million on a ship as norwegian has done here with the breakaway new york, you want to make sure it's impressive enough that people just don't want to come on and pay to be on it, but that they'll pay more to be on it. there can be up to 4,000 passengers on this ship, and 1600 decree, but for those that
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want exclusivity to be here in what they called the haven, which is air conditioned. there are only 42 cabins that have card access only to this area. this is what norwegian calls the deluxe owner suite. the out150id area here, totally private for you, the spouse or the family. the table for the meals that you won't be coolinging yourself, because you get 24-hour consequence years of age, and the sore of bedroom that will make the madisons or herreras feel like they're on their own private holiday. the biggestship will home port here in new york. a bathroom that would make any manhattan resident proud, complete, of course, with running jacuzzi. so that's what it looks like. the question is, can the company deliver on raising its profitability by 400 to 500 basis points when it's increasing capacity at 13% a year. that exclusive interview, guys
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coming up with the ceo of norwegian. back to you. can't way, simon. thanks so much. that suite suits you perfectly. see you in a few minutes. prices are closing right now. sharon emer -- hi, sharon. >> yeah, we're down $18 or so for gold. we're right around 14, $15 an ounce. we didn't -- last week's low of 14.40 an ounce. that was the low of the session, but we didn't get below that. that would have affected last week's low. we're continuing to watch what's happening action with a lot of rotation out of metals into equities with the strength there. the worst performing commodity today, palladium. back to you. we will, sharon. thank you very much. bob pisani joins me. we're on the up side, but the transports are confirming. >> four days in a row now the transports have been outperforming the dow industrials, and people trading
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in dow indices love to see that confirmation. take a look at the transports. another day, now very significant, for you days in a row, appeared of course we're at a historic high in both of them. sectors, we are seeing a bit of weakness in tech. that's been a juggernaut for the last few months action but remember it's been an interesting story. the bond funds, the important thing is bond funds are running out. the last four days or so the high-yield funds are to the up side. sue? >> let's bring in kenny polcari. pretty impressive. >> very impressive. one confirming the other, and certainly you want to see that happen. the other thing i'm feeling right now is the bad news isn't bad enough. it's bad enough that everyone knows the feds aren't going
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anywhere, but they still want exposure to equities, so they get it. >> we get these historic highs, still weak volume. in the old days, and i'm getting nostalgic, confirmation you would be looking technically for improvement in -- it's been the missing component. >> that's why you should by concerned. if it should start to turn, and all of a sudden people get concerned, it will go down just as fast. but there were consumers concerning iran earlier, and the market didn't sell off as dramatic. >> it doesn't seem to be affected at all. >> they were ability to confirm many of that, so a lot of the sources weren't particularly reliability. >> the market seems to be discounting everything. just not paying attention to anything that's happened. >> let's bring josh lipton into this, and we can talk more. hey, josh. >> hey, sue. the s&p 500, here's your headline. it's now an official bull market territory, up 20% from the low in november.
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remember, five of the sectors in the index already in bull market territory, financials, consumer discretionary, and industrials. sue, back to you. >> josh, thanks so much. well, you know, kenny, 20%? >> it's hard to argue. listen, i'm the first to say it's hard to argue. you can't fight the fed and can't get in the way. you have to go with the trend. >> if you look at the percentage gains in the dow, better than 15%, 13%, even the nasdaq up 12%, and it's only may. >> it's only may. >> from the greatest threat this market has is nobody believes in the rally. this is the most hated -- i've been with cnbc 20 years, you've been there as well. everyone hates this rally. there's so much kept stitch, that will be the biggest factors. gentlemen, thank you very much. don't look a gift horse in the mouth, i get. which industries are growing sales and profits at the fastest rate? a key indicator that you need to watch, and it's not earnings. we'll tell you what it is.
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welcome back to "power lunch." rick santelli here on the floor of the cme group. we are seeing some significant push-back on the yields post the labor report on friday. two-day chart of tens, you can see we're creeping up, getting very close at one point to the 180 level. we're still hovering at the highest yields on a closing basis since the 11th of august. look at a two-day chart. not only similar, but maybe more aggressive. record-setting low yields at 116. they touched 131 today, and the two-day of the dollar, yet another swing and a miss, getting close to 100, now backing of on the yen, rallying about ready to test 99. with all this risk on, we're seeing the southern european countries, their paper is rallying, pushing yields down. i guess there's no discriminating what you'll put your money into on a risk-on
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day. put aside the earnings reports, and check out how frequently the companies use corporate jets. c next's phil lebeau is live at chicago's executive airport. hey, phil. >> hey, tyler, this is a good case. it comes to us kurtly of folks at jssi. that firm services about 1800 corporate jets like this one around the world. take a look at what sectors they're noticing executives doing more flying and those where they're starting to cut back a bit. no surprise here if you listen to some reports, transportation, which has been booming over the last year, flight hour up 117% over the first quarter, automotive industry up 60%, compare that with consumers going down 33% and technology down 24%. jssi says overall, business jet hours, in terms of the number of
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hours executives are spending down 10%, but companies are using their business jets more to reach international marks. >> what we're seeing is people are flying internationally more, going in, opening new marks, emerging markets. however, is the industry as a whole is still somewhat down over 2012, tells me people are going more judicious with how and when they fly. you know, the guy that used to fly 600 hours a year is today flying 3400 or 500 hours a year. one other change corporations are moving away from smaller business jets, shifting to larger jets with greater range. no the a surprise if you're doing business in eastern europe or india or asia, you want to reach there as quickly as possible. by the way, don't forget, business jet deliveries have fallen to the lowest levels in 2004, tyler and sue. the stigma for business travel and the corporate jet is still
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will. companies are reluctant to talk about how much they're using their jets. back to you. >> understandably so. thank you very much, phil. appreciate it. norwegian cruise line shares up 70% since the ipo in january. the newest $900 million bet rolls right into new york city. norwegian's ceo joins us first on cnbc. plus with disney getting ready to record its earnings in just a few hours, what is the state of the theme parks business in america? jane wells is live at universal studios in los angeles. >> reporter: well, so far, sue, the roller coaster is going up. people are lining up where they it will cost you $80. which two parks' companies are being called frenemies? that's after the break. all business purchases.
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markets are at records. many individual names are at records. one of them is the stock behind mickey mouse. yeah, disney's earnings after the bell. we'll peel out the most important things you need to watch. how much is the rising stock market boosting housing prices. they know a thing or two about that. do you see a future where we put all this abundant natural gas to use, powering mainstream autos? yes, we'll talk to the ceo of clean energy fuels, a company that hopes to revolutionize the transport agency. all those and many more coming up. in the meantime, back to you on "power lunch." thank you, mandy. we'll be watching at the top of the hour. let's recatch. that means, since a low point back in november, the s&p 500 has now gained 20%.
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that means it qualifies officially. now nasdaq up a bit less in terms of percentage terms, but the dow industrials again today in very clearly in report territory, as is the s&p 500. shares of arena pharmaceutical gaining ground, as you see, by about 85 cents, the company getting closer to bringing the obiasity drug to market. the ruling has been held up for several months as drug regulators respond to public comments. the stock had fallen 12% since the beginning of the year, as investors became impatient with the delay and the drug meanwhile, was rye jected in europe. switching gears now, theme parks apparently making a big comeback. comcast, the parent company of nbc universal and hence cnbc, citing strength in its parks division, and hitting an all-time high today there.
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seaworld just went public a week or so ago. six flags has emerged very nicely from bankruptcy, and do not forget the biggest one there, disney, which reports earnings after the bell. it is trading at all-time record highs. jane wells now on theme parks. jane? >> reporter: hey, tyler, i'm at universal studios hollywood, owned by our parent company. revenues jumped 12% for comcast last quarter, for disney after the bell today, analysts are expecting 150% revenue growth, and nearly 40% growth in parks operating income. both stocks, as you had hitting all-time highs, theme parks, which can be expensive, may be one of the best measurements of competent. do feel mohr competent? >> yes, because the economy is good. very good.
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>> we are worried. we look for do you understand, coupons. we cannot -- analysts say for fares, six flags, seaworld, growth will come from investment in new attractions. cars land has helped, and the company is freshening up disney world. it's said that they are better positioned to leverage movies into attractions. he has noticed a change in orlando. it used to be that universal studios would disney's quote overflow, and now? >> and now this is really unique dynamic, where there's actually enough at universal particularly with harry potter, you know there's some backflow to disney world. i think it's created a virtuous circle down in orlando. >> reporter: he actually calls two of them frenemies. of course they see are much
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large erbil companies than just parks, he says on the parks side invests and the facelift will get a good return on investment. which, of course, will help universal studios. >> it will, janie. thank you so much. we're also watching the white house at this hour, the president meeting with south korea's leader to celebrated 60 anniversary of the alliance. they just started that news conference, but recent threats from nuclear-armed north korea also dominating those discussions. they're holding a joint news conference right now. we're monitoring it and will bring you any headlines that cross. speaking of getaway, sailing the high seas remains a popular vacation option, as evidenced by norwegian cruise lines better than expected first quarter profits. shares of the third largest cruise operator are up 70%. they're trading at about $32 a share. simon hobbs is back with us from aboard norwegian's newest ship the $900 million "breakaway"
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this time with the company's ceo. over to you, simon, $900 million. this is an expensive ship. the biggest ship that will home port in and out of manhattan. this is the guy signing the checks, the ceo joins us. one reasohy the stock has done so well, is this guy is promising superior profits moving forward because of what a ship like this offers. what do you offer that will drive those profits high are than your competitors? >> we are a very unique experience. we call it freestriae cruising, but it's really a resort experience. it's what the population at large wants, the freedom and flexibility to dine when they want, to -- we have 27 different dining venues, three broadway shows. >> reporter: five water slides. >> just so much to do, a quarter mile waterfront stroll, where you can shop for hot dogs or
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gelato or the bake shop, and on and on. we just came across the atlantic. you could see the pulse of the ship. people having a ball at 2:00 in the morning. i feel embarrassed going to bed. >> it's like a holiday. the question remains, though, you're promising 400 to 500 basis points profit. that's more than anybody else has made, even at peak times, and increasing capacity. what are you seeing with the bookings? how do you keep that profitability moving forward? >> these shins are built for success, the game changers for this industry. the norwegian "epic" was the first of this group, and now the "breakaway" and following in january "the getaway" year round out of miami are a completely different crew experience. >> reporter: i need to squeeze in a question you don't want me to ask, what mickey and carnival and all those -- have done for
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the industry. you helped fund telemundo, you helped avis go public. you are a businessman who didn't inherit a cruise line, does that mean you operate this differently? >> mickey is a very smart successful executive over very many years. we're running our business quite a bit different. the industry has grown up with a bench of the same people, and what i thought would be interesting would be bringing people from other disciplines in. this is another business, and digging in and understanding the metrics that make it work seamlessly simplifying proses, and dealing with the travel agents and the proposition. >> reporter: i want kevin, thank you very much. >> thanks so much. >> reporter: congratulations and good luck with the ship. a $900 million ship that you will hear a lot about if you live in manhattan and greater new york. guys, back to you. thank you, simon, so very much. appreciate it. well, you know, it's been disaster after disasters for new
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york city as bike-sharing program. even citigroup has been caught up in it. will it finally take to the road? we'll have that. plus more calls for jpmorgan to split the chairman and ceo role, but will he give it up? all of that is straight ahead. [ male announcer ] at charles schwab, we've committed to setting the bar high
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welcome back, everybody. power rundown time. robert frank is with us, so is kayla tausche. she's in manhattan covering the bike share program. we'll talk about that in a moment. first, the ongoing saga of jamie dimon, section proxy for him now, wants to split the chairman and ceo position, so how much pressure, kayla, is dimon really facing? >> reporter: the pressure is mounting, tyler. that is no question about it. but it is interesting to look at these proxy firms, traditionally they do pit themselves against the company and against the incumbents. "new york times" found 73% of times iss, which is one of those firms, sides with the activist in a situation, so it's not exactly a proxy for how shareholders will vote and shareholders are undecided, but no doubt the public vendetta is
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building. >> robert, if i were in his shoes, a part of me would say, you don't like the job i'm doing? i get out of here. >> well, i think he should give up the chairman's role, which is largely symbolic. if i'm a shareholders, i would matter management spend time on managing the business than fighting what is largely a symbolic fight. >> robert, you're covering a story that tokyo has more million theirs than any other city in the world. uh, u., tokyo still? >> i was surprised. they ranked the top ten cities. tokyo number one at more than 461,000 millionaires. the reasons behind this, and there are a lot of rich people in japan. we talk about stagnation, but so much wealth was created in the 1980s. in the wu we kind of spread or wealth around. the jan, the population of
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millions nars to the population in general is concentrated in the big cities. very interesting the kayla, despite twists, delays, turns, the bike share program may finally be kicking off in new york. tell me about it, why is it ready to go now. >> reporter: that's at least the plan in theory. it's set set for a launch on memorial day. i'm told they're in the process of install some of the bike stations north of 45th street here in manhattan, but there have been issues ranging from learned sandy destroying some of the bikes to legal issues over some co-ops, suing the program because they didn't want the bike stands outside of their buildings, but all told, we are expected that the stations will be completed and it should be launched memorial day. but we will keep you posted on that story and whether that actually happens. >> you see the concessions in other cities, we saw a lot of people using it, but in new york, you have new york drivers,
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cabbies, not the friendliest types on the roads. let's move to governor chris christie. he's had lapband stomach surgery. he says he did it to improve his health. but robert, you cannot help be speculate he's doing it to improve hi presidential chances? >> no, look, i take it at his word, he's doing it for his family who wants him to live for a long time, as we all do, but to the extent that politicians are model citizens, i wish he had done it in a more inspirational way, so he could set a good example rather than the surgery, which is a $15,000 procedure, but i think it's great that he's taking action. a lot of people focus too much on the weight and not what a great politician he is. >> kayla, thoughts here? >> reporter: tyler, what it tells me is that christie doesn't believe his own claim. two weeks before he went into the surgery when he said, i'm the healthiest fat guy you'll ever meet.
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apparently not if he chose to go this route instead of just keep it going. >> have to leave it there, folks. thanks very much. we'll be right back to close it up in a minute. [ male announcer ] with free package pickup from the united states postal service a budding artist can ship like a big business. just go online to pay, print and have your packages picked up for free. we'll do the rest. ♪
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up 77 points, the s&p is up eight points, and the nasdaq composite is up four points. so there is some confirmation to this move. see you when you get back. that will do it for "power lunch." >> "streets signs" begins right now. "s signs" time, and the incredible run for the dow continues. it is now up. get this. 17 straight tuesdays. i think we speak for all america by asking why! microsoft's mea culpa, the company making a huge turn. why has the stock been on fire. is it possible housing is in a new bubble? out of all the retailers in the world, wells fargo loves five. mandy, i'm going to come to you with a trivia question.
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