tv Power Lunch CNBC August 15, 2013 1:00pm-2:01pm EDT
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welcome back. >> the rest of "power lunch. [!ez speaker 01]: " starts now. >> welcome to thursday. it's a happy thursday you. the markets are plummetting across the board and we have full team coverage in this one hour on the east coast. it begins right now. susan has the day off. simon is in at the new york stock exchange with bob pisanti. welcome, guys. >> we're actually down 955 points on the dow. what you want to notice in the
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market is when you have a reflection point, when you're changing direction. in the high we have in august, we're now down about 3% from that high with the moving day average. this is the point that you have to sit up and take notice. is the market going to continue to move in a negative direction? that's the question for this hour on parliament. bob pisanti is with me on the moves we saw today. >> we've seen in the last several weeks the dow industrials when the market opened and essentially the dow moved straight to the down side. here we have a little stability on the day, and that's happened often as well. the decline is when you have two big places like cisco and wall mart. remember, the stock market we were promised better growth in the second half of the year. the initial indications we see with two big companies, that's not happening right now, and that's one of the things other than high interest rates that
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the market is grappling with. kohls is on the upside here. that happened, i think, because they are getting store guidance of the quarter for 0.2%. analysts think they're being a bit conservative and things could actually be a little bit better. a little wishful thinking going on here. interest rates are up for homebuilders. i just got off the phone with one of the biggest analysts out there. i want to put up a chart on gold and show you something here. gold just popped 20 points while you and i were standing here, and i'm going to make some phone calls. >> don't go far, simon, because we're going to bring you right back in. is this market selloff overblown or should investors be really
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concerned? joining me here at cnbc headquarters, chief market strategist with the lindsay group and a cnbc contributor. our friend kenny folkar, cnbc market analyst. i'm going to start with you, peter, and i'm going way out on a wild limb here. i remember an august, 27, 26 years ago, 1987. the markets had risen a great deal early in the year. interest rates were rising, the economy was lumpy. we had a new fed chief at that time, alan greenspan. do you remember what happened in october of 1987. do we need to worry that history might repeat itself this october? >> i'm not going that far in terms of the extent of the decli decline. investors need to pay attention to what got us here. low interest rates, artificially low interest rates, debt pumping
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and everything else didn't matter. earnings didn't matter. as long as the feds were printing money to the extent they were, the stocks went higher. that is now no longer the case, at least from the perspective of september/october tapering possibilities. they've also started the process of tapering and tightening. that's the only thing that matters right now. >> doour you think the worst ofe interest rate rises are behind us? and there you see 2.78%. they've been moving up in the past couple of days on the 10-year. do you think the rises are behind us or ahead of us? >> i think in the short term, most of it is behind us, but in the next couple years, it's only just begun. again, it was cheap money that got us here, both in asset prices, in stocks, but certainly also in bonds. so you get a reversal of that, it's going to be a major headwind for stocks. >> let me pick it up with kenny. cheap money saved the world.
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>> we're normalizing here. this is a chic buying opportunity. >> peter makes a lot of good points, and i mentioned on the same side of this argument, i think we're here only because of the cheap money. but that being said, i do think if the economy turns around, it will abe buying opportunity. i think the buying opportunity is coming. i don't think we're there yet because i think the market is weaker. i think we're going to get a 10% drop in the market, but i think you'll turn right around to between 16 and 25. so yes, i think long term there's absolutely a buying opportunity. >> i hand it back to peter, and peter, does that make sense to you, that type of climbing? >> i think it's a little too early. 3% for all-time record highs. we've seen a smashing in the u.s. treasury market. a 3% decline in the s&ps, i
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don't think, is enough to match what we've seen in the u.s. bond market. >> so what do you think is going to happen when the fed meets in september, peter? do you think that that is when they begin to announce the tapering, or given some of the numbers that we've been seeing lately from some big companies that indicate their business isn't maybe as strong as they had hoped that they'll push that off until later in the year? >> i think the feds will taper in september, but yes in the context of a very overall, mediocre economy. >> can i just say one thing? i don't think it will be september at all. i don't see how they can do it. you're not getting that warm, fuzzy feeling. i don't think the fed is going to announce a tapering in september at all, i think it's going to be late 2013, early 2014, and the markets will continue to churn here and once again move higher. >> it will never be the right time for the feds to back off in
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the policy they have done. it will never be the right time. >> and therein is how a market is made. gentlemen, thank you very much. >> housing, of course, a big part of the economy and it's just as confusing as many of you think. we just talked about homebuilder confidence. homebuilder stocks while up today way off the highs, however. diana joins us from washington to sort it all out. hi, diana. >> hey, tyler. you're right, it does seem like a disconnect. first to the sentiment numbers, homebuilder sentiment index, up three points for august. that's the fourth straight month of gains despite rising interest rates. of the three index components, current sales up 3 points. future sales expectations up one point. only buyer traffic seems to be lagging here unchanged and still in the negative territory. this, as we heard, the homebuilder stocks up today but
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well off their highs. you can see the housing index is now in bare market territory over 20% from its high on may 20. d.r. horton is now at a one-year low. why the disconnect? they are rated much more to the private buildings. they're seeing big demand because of lack of existing supply and demand on the market. they say interest rates are not hitting them that high. of course, it's a huge run-up in the stocks before a recovery really took hold. some said they were, in fact, overheated before then, and now that you have rising interest rates in the mix, they may be paying for that. back to you. >> thank you very much, diana. in just 15 minutes, we'll have the ceo of coldwell banker to see what you get for your money in the big d, coming up. also, ebay reporting products that will rival paypal of ebay. the new service will let
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shoppers make purchases with their facebook log-in information. there's ebay down 1.80, as you see, at 54.23. at 36.26, down 1%. josh lipton with a market update. >> tyler, it's 13 at the season. money managers tell us what they've been buying and selling. two names where berkshire really slashed its exposure of kraft foods. also, mondelez where rates are cut for the snackmaker. dish network reported a new amount there of 550,000 shares. also like the look of general motors. increased by 64%. berkshire also increased and
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fargo by 1.1%. coca-cola unchanged. tyler, back to you. >> thanks, josh lipton. more markets after the break. this is a very busy, maybe pivotal day. what's behind the better stocks we've had in two months. could it be an opportunity to get behind the red arrows. plus a rash of burglaries at the apartment building that how'ses ma houses many of the rich and famous. michael buble lives there. we'll explain when we return.
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an increasingly down day for the market overall. the department stores post ag better than expected 18% rise in second quarter earnings as it continues to lift margins and expenses for the year. dillard's, what you could describe as a macy's for the northwest, is higher. a large bomb has ripped through south bay roueirut. this is a picture after that latest explosion.
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it was a car bomb. at least ten people were killed in the explosion and dozens injured. now, egypt's government saying just a few minutes ago it is giving authorities on the ground permission to use deadly force to protect police and key institutions from attack. just before that, reports came in of four egyptian troops had been shot to death in the sinai. president obama addressed the situation seemingly deteriorating in cairo and egypt from martha's vineyard earlier today. >> mohamed morsi was elected president in a democratic election. his government was not inclusive. we know that many egyptians, millions of egyptians, perhaps even a majority of egyptians, were calling for a change in course. let me say that the egyptian people deserve better than what we've seen over the last several days. >> cnbc is live in a very tense
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cairo. yusef? >> reporter: well, tyler, in the last few minutes we've got the report that the casualty toll in the sinai peninsula has risen after an attack on a checkpoint. we now understand that seven, not four, soldiers were killed in the attack. clashes are still under way across egypt. it's not just happening in sinai, it's happening in carroll and reports of attacks on churches, on police stations, on shops and even on banks. clearly the stakes are much, much higher and they will continue to fight. a spokesman saying they will not cower and they will rise again. now, a march is called for tomorrow on the other hand. you mentioned the minister of the interior using deadly force, and it shows you what's at stake here. the state of emergency remains
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in place. the curfew has been slightly amended from 7:00 p.m. to 9:00 p.m. and ending at 6:00 a.m. the next morning. of course, in all of this, the risk of a lot of uncertainty about how the security situation will come back under control. when it comes to political reconciliation, it is clear we're far from it. if you look at egyptian sovereignty, for five years that has risen 30 basis points, so 800 bps. remember, commercial banks are closed for security reasons, and as a result the exchange is closed as well. some companies also reconsidering their position. royal dutch shell and general motors temporarily suspending their work here until clarity is achieved. >> thank you very much, yusef. appreciate it very much. simon, back to you.
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>> we are apologizing in the markets. it's a rough day for the dow, as you can see. we continue to fall, as i speak. we're down to 237. we lost the 50-day moving average on the dow. i can tell you the s&p is now just four or five points above its 50-day moving average. dan greenhouse also joins us from btig. he is a chief global strategist. dan, what is your take? >> it's a tough day, that much is obvious here. and i think lost in all the hoopla on the down side here is the fact that overall the indices are down about 25% and change here. it's lasting a lot longer than a lot of people thought and has gone farther than a lot of people thought. so taking a step back here, it's really not that much of a surprise after such a run and in front of the turbulence in the
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fall to take a little bit of a breathe breather. >> i guess, stanley, a lot of people want to know do i buy or do i sell? >> it's never that easy, and it really depends on the type of investor we're talking about here, but to keep it as simple as we can, we think the equity remains higher. we're not scared of a spike in interest rates as some people are, we don't fear the reduction in fed asset purchases to the same degree other people do, and we think the path for earnings is going to be higher and with it, so should stock prices be. >> there are two markets right now. the market can't figure out what the right interest rate is right now because it doesn't know not only what the fed is going to do but the rapidity of the taper, and that's what's confusing people. the second issue is the whole growth issue. walmart, cisco, and places like kohl's are wondering about the second half of the year.
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what do we do from here? you have to be able to answer the following question. do you think the second half recovery is out the window for the economy and for earnings? if you do, by the dip is not going to work, and by the dip has worked all these years. however, if you believe, as many do, and the nasdaq is proof that we have a dip in pdg growth. >> i know because i'm old enough that the economy will come back. i know because i'm old enough and the consumer will start buying their own stock to flatter their own salaries and start investing in colonies. my question to you is, is there a gap? is it going to happen now in the second half of the year? can we support these markets if we pay for gold, or can there be a gap if we kind of hit a por pocket, if you like, a vacuum that hits lower.
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>> with respect to the taper, to repeat, i don't understand why buying 75 billion or 65 billion in bonds instead of 85 billion presents a meaningful challenge for the path of equities. they're up 100% off the low and stock prices are 100% off the low. yes, you brought up walmart appropriately so, and yes, you brought up cisco, but you didn't talk about trip adviser or michael kors, a number of people in a poor economic environment seem to be operating in a fairly stable fashion. and to the extent a majority of companies continue to do that, ultimately the paths of the stock market is higher. >> okay. thank you very much. dan greenhouse joining us with that topography. simon, an incredible story we're going to tell you about involving the super wealthy and the super powerful at a legendary apartment building, 740 park avenue.
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our senior analyst scott cohn has the story. scott? >> i guess this pales from the markets. the building is 17th and park avenue. the apartments go for as much as $60 million. these people often need high maintenance. they are investigating unidentified workers in a string of jewelry thefts in may and june. at least $100,000 value of watches and rings are missing. is it entirely possible, tyler, that more jewelry has been stolen but the victims haven't noticed yet? >> i'm not sure this is related to the ones over in europe and elsewhere, but boy, there's been a lot of jewelry stealing.
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>> i guess that's a hot commodity. >> thank you very much. simon, down to you. >> thank you very much. the health of housing ahead on the show. the ceo of coldwell banker on the impact of rising mortgage rates and where we are now in the housing recovery. also ahead on the program, the power house. today, dallas finds out how much home your money could buy in the big d. as we head out, a big down day in the market. look again at the percentage of losers in the nasdaq, led by cisco. john chambers reporting on that interview. instead we had someone go ahead of him and win fifty thousand dollars. congratulations you are our one millionth customer. nobody likes to miss out. that's why ally treats all their customers the same. whether you're the first or the millionth. if your bank doesn't think you're special anymore, you need an ally. ally bank. your money needs an ally.
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lower interest rate in the past 20 months. interest rates have ticked up, but let's face it, all of us who are too young to remember would look at them as being still at extremely attractive levels. >> how long are the houses staying on the market? >> inventory has kicked up in the last couple months, which is what we would expect as we reach equ equal equalibrium at this time. >> if inventory moves up, you might expect to see gains a little bit. >> you said it cannotexactly ri. we anticipate increases in prices, but sustainable at healthy levels.
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no one out there would suggest that a 26% annual increase in prices in phoenix would continue over the long run. >> it's a busy, busy news day. we'll have to leave it there and we'll have you back soon. budge huskey on "power lunch." how much house does your money buy you in dallas? i'm not going to trip, no, i'm not, i got that beautifully. laura barnett is a realtor with re/max, not with coldwell banker. she's with re/max, one of the top producers in all of dallas. laura, good to have you with us. let's look at some statistics for dallas county. average sale price about $300,000. that's up 25%. about 40 average days on the market. you have three months inventory. let's go to 524 east bethel
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school road. three beds, two and a half bath. >> three live-in areas. it's got an incredible pool in the backyard which is great for texas. two-car garage and a large driveway going into it. great for a first-time homebuyer or an empty nester who is downsizing. >> is it coppell, texas or coppell? >> coppell. >> coppell, texas. where is it in reference to, say, cowboy stadium? >> it's just north of cowboy stadium and it's right in between dallas and ft. worth. it's right in the center. >> very nice. second listing, 321 lyndsie drive. it sold for 420,000. five beds, three baths.
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3,421 square feet. >> we listed it at 429. we ended up getting 12 offers when we closed the bids, and the house ended up selling for 420,500. >> you love to see that if you're an agent or an owner. 12 bids on your property and a bidding war. look at the space and the furnishin furnishings. that's beautiful. let's step it up a little bit. power house of the week. 309 stratford lane. listed at 1 million 9. five beds, five baths, two half baths. almost 7,000 square feet. you would call this a mansion. >> it is a mansion, and it's a beautiful estate. it's got a billiard room, a wine cellular, a immediasel cellar, hardwood throughout.
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>> just beautiful. that's what a million buys you in dallas right now. laura, thanks for being with us. >> thanks for having me. >> back to you. >> 122.97 in stocks. dillard's seeing a lot of green. >> gold prices are up nearly $30 right now, and the fact that gold is going to close right here around this 13.6 ounces is significant. since we've seen this move in gold, we've been talking about perhaps it's safe in demand and bargain hunting going into the gold market. we've seen weakness in the stock market, the unrest in egypt, and you have to add the physical demand for gold has continued to be very strong. with the outpost we see in the etf market, there is still a lot of demand for jewelry, gold
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coins. 1400 the next psychological level for gold to get to. >> you might have hoped for a recovery on the stock market but it's still a triple-digit loss. >> and still sitting essentially on the lows for the day. take a look at the dow industrials and we started way situation where the market moved straight down at the open. that is a depressingly familiar sign in the last two weeks. we are sitting essentially near the lows for the day, and we have two problems. one is interest rates. two-year highs on the ten-year. that moved up continually as we got the 830 initial jobs claim report, although it comes down a little bit, as you can see, in the middle of the day. second problem is growth in earnings. we were promised a little better earning situation second half of the year, and cisco and walmart are not exactly giving it to us the way we wanted them to. so perhaps earning growth expectations might be a little too high. those are the major problems here. when you have cyclicals like financial stocks down 1.5% and
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consumers down 1.5%, the whole market is off. you're not going into one group over the other, you're just taking the money out of the market overall. that's it. >> thank you very much. fema is watching the action on the nasdaq. >> absolutely. cisco is the lowest performing stock on the nasdaq 100. it's often used on the street as a barometer of tech spending, so we've seen competitors in the networking, cloud space moved in the sympathy of sienna and negative territory. elsewhere they offer a dividend. you have traders watching that yield on the 10-year treasury note. more traders trying to assess where they want to get yield. simon, back over to you. >> thank you very much, seema. for many in the market, the eye of the storm is great unemployment data which sends the bond market reeling. details live in chicago.
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>> you know, tyler, there is very little doubt that the claims this morning gave us that rise up to a 282 spike. as you look at the two-day charts, you can see we've come off, but we have still opened the chart up to a couple years. we have a new high-yield close. maybe, maybe a more interesting story is the following. we've talked about the spiking. you see the big drop in the dollar index, you see the big spike up on the euro versus the dollar, and all of this is happening about the same time. i love market forensics better than anybody you'll ever meet, and in my opinion, this is somebody saying, gee, i think we need to buy gold. this is something big that maybe it was a big order to buy a boatload of gold, but to see the currencies in the gold have these very, very large spikes at the same time, this is something more than just people having a hunch in an aggregate, this is one issue, and we will get to
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the bottom of it. tyler, back to you. >> can i ask you a question, rick? what could that issue be? >> you know, either somebody bought a boatload of gold, or there was a transaction not only tied to gold but predicted at a certain currency. obviously they have relationships, but to see such a big spike in such a tight time frame might be something like big central bank or a very large customer. maybe that's something to do with the violence in the middle east. we will get to the bottom of this. >> that was my guess. i was wondering whether that could be one of the prec precipitators there. rick santelli, thank you very much. protecting sales and even making money in today's selloffs. here are some of the biggest losers in the s&p 500 today. you would expect to see a cisco report in the forecast last night. trip adviser down nearly 3.5%
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welcome back to "power lunch." i'm josh lipton. let's go with micron which is dropping. they cut that one to neutral, say, trips of asia suggest below seasonal outlook for the second half. reductions in pc orders and continued weakness in smartphones. also, ford dropping lower. a senior executive says europe's car market may have hit bottom, but also reports that pricing pressure will remain fierce until volumes pick up. onyx reporting its deal with amgen is being delayed by a drug trial dispute. he is ta estee lauder, growing in skin care products. maxim integrated saying it will buy volterra.
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that is a 15.5% premium. >> unemployment data today was very good. how concerned should you be at this stage? what do you do? we're joined from chicago by a director of tjm institutional. gentlemen, welcome both to the program. jeff, let me start off with you. within the last hour there was a major spike down in medulla which has sent gold and other base metals higher. are you able to tell us why you think that's happened? >> well, simon, last week i threw out the fact that we will see gold come back and reclaim the story. it's been shipped for quite some
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time. we're seeing a slight decline, simon, because a lot of people are fearful of buying treasury on this as well. >> you know what else is out there right now? gold. >> there's no doubt. i disagree with jeff a little bit just because there's not really panic in the bond market, there's not really panic in the stock market. >> let me slap you silly. it's down. what are you talking about? >> it's down 20 an naturnals in s&p. there's no doubt they're selling about this much in panic, and it didn't coincide with the spike in dollar. to me it seemed perhaps big orders, i'm not sure. i'm not saying you're definitely wrong, i'm just saying i don't think that's it. >> jeff, for people who are home now and they want a considered opinion, jeff, what do you say to them? >> well, we've been acclimated
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or forced by the fed for quite some time, every 2% dropoff. i think there is another 30 points lower in the s&p. don't buy yet, i think there is more room to run. >> it is not a huge deal considering the dramatic run we've had. i agree with jeff, i think we could have another about 15 handles. it's got to fit in an objective and then you buy it. remember if we start to really have a precipitous decline, then the feds will go away. >> have a great afternoon. thank you. >> simon, thank you. sinkholes and we're not talking about the markets now, we're talking about the real kind, and hurricane season. mother nature putting insurance companies on the defensive. many of them finding new ways to avoid big losses. what they're doing and the big stock change in the u.s. sector.
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dean foods is falling. they said they would take a boost to up their share price. down today about 2.5% in a soggy market. simon? >> we have a finance question today. we asked, would the economy show signs of improvement retail? at least some retail appears to be struggling. question, have you cut back on your spending? now, this is fascinating. straight from the horse's mouth, as it were. 55% say yes, i'm shopping less. 7% say no, i'm shopping more. 38% haven't changed their habits. so you see very clearly there what is beginning to show up in various anecdotal rates. there is a problem with consumer spending in this country. now, let's see what's coming up on "street signs" on a busy afternoon. >> coming up on "street signs,"
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it's quite the perfect storm out there, right? you have stocks and bonds getting hit. we ask if this is more than just a lazy summer swoon. and it does seem to be affecting the housing sector, so we have a lo long-time housing baron to see if he is losing. a lot of people have lost a lot of money. his name is ted greenburg. you have to tune in. all those things and many more coming up on "street signs" at the top of the hour. >> mandy, thank you very much. two big storms developing as we roll into the peak of the hurricane season. carl parker is tracking growth. >> we look at one of the systems in the atlantic right now. one of them is way out in the atlantic. that is the new tropical storm
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aaron. the other area is in the northwest part of the caribbean. the hurricane center dropping the odds of this developing now to 60% within the next five days. it's probably actually a little bit lower than that, and it's not looking very healthy right now. what we expect is that tropical moisture is going to come and move up into the southeast and really inundate parts of the southeast that have had a lot of rain in recent weeks and months. so there is going to be a flood, but the odds of it developing into a significant system is very low at this point. here's aaron, which is again off theafrica. it's a 30-mile-per-hour storm. it's expected to strengthen but then weaken as it hits dryer air in the mid-atlantic. >> as those storms roll toward the u.s., we're talking with ted
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corliss. he's an insurance agent. first, ted, is the increase in hurricanes changing the insurance industry and how claims are dealt with? >> tyler, i fight insurance companies for a living and i meet with insureds every single day. they don't know anything about the crash of 2008, but they do know about sandy, they know about katrina, and they know about every storm that's hit the united states in the last ten years. insurance companies have become increasingly a gress ggressive has triggered an avalanche of claims. >> are they writing the policies in such a way that you really need to know exactly what your policy says because it may not cover what you think it covers? >> the difference is that insureds see insurance as an on or off situation, but insurance companies see it as, we cover the loss if it's one of these particular items. every time the insurance industry tries to change the
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policy or change the laws associated with these losses, all it does is create a whole bunch of rules that people like me have to go tear through. and they're doing that, obviously, to save themselves some money. >> what would your best two pieces of advice be to people, perhaps who live in the hurricane pathways on the east coast and in the gulf, what would your best advice to them be to protect themselves? >> the interesting thing is, and this may seem very simple, but get a copy of your insurance policy during hurricane season. up need you need to make sure you have the coverages to cover you during a catastrophic loss. the other thing you can do, very simply as well, is to track the position of the property. if it's a commercial building or you need someone to inspect it on a regular basis or you're a homeowner, take a video camera and go around the house and identify the condition prior to any of these catastrophic events. >> so document before the trouble hits. thank you very much, we appreciate it very much, ted. >> my pleasure. >> let me bring in lundy.
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what is your take with investors? how can people make money with their money? >> sure, thank you. i assume the question is really how to make money on hurricane season as it relates to insurance stocks. >> absolutely. >> look at our allstate, travelers, aig stock would be most effective. in the landfall of one of these hurricanes, a lot of times these stocks will trade down and then they'll trade up in the aftermath after we get a handle on the losses. you definitely saw that with sandy. so we watch these storms very closely and look for opportunities to catch the tradeoff after landfall. >> everybody's premium is going up. are the insurance companies getting an edge? are there super enormous profits to be made if it's a quiet year?
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>> your profitability will definitely be above average. pricing is very firm especially in the new york metro area because of sandy. we anticipate losses every hurricane season. there hasn't been a lot of activity yet, as the person just mentioned before me on the segment. you're looking at much better profitability in those companies, allstate, aig and travelers, if there's not an event. >> everybody, let's hope there isn't. randy billen joining me. legalizing marijuana is one thing, regulating it is a whole different and tricky manner. isn't that right, jane wells? >> that's right, tyler. the market may be down but i could be standing in the middle of a growth industry. there are high hopes in colorado and washington as they regulate pot. will the cost be too high? report fing from the mile high city, next. to browse...
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eventually shape up? our more immediate concern is our reporter jane wells has been standing now in a greenhouse in denver surrounded by marijuana for seven hours. how do you feel? >> it's sticky. i may have to change my clothes before i head for the airport. but actually, washington and colorado are the only two states that have legalized recreational pot. this right now at the river raft wellness center is legal medical candidates. in five months it can be sold as legal recreation cannabis and cost more. things have gone quite smoothly since voters in colorado and washington have legalized this, allowing people at least 21 to smoke this. what could be gained? washington says it could raise up to $2 billion in pot taxes over 25 years. but there's 25% producer cost as
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well as 25% at retail. in colorado the taxes are too high and they defeat the purposes of legalization. however, on the medical side, pot is taxed at 7%. listen. >> if we can make a million in pot taxes, we could employ probably 20 or 30 by the end of the year. this is certainly a growth industry. we are taking this market away from organized crime and integrating it into the mainstream of american society. >> if the taxes on adult use marijuana are not done appropriately and they're too high, then yes, people will buy from the streets. we provide more to the consumer than ever before, including testing and a variety of other products such as topicals and edibles. >> reporter: the problem in washington state is that the medical marijuana industry there is completely unregulated and untaxed. >> the fact that we don't have a regulated medical marijuana marketplace may make it difficult to have two parallel
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marketplaces going at the same time, one that's unregulated and untaxed and one that's regulated and heavily taxed. >> another one is cordon. >> market tech james shively is not worried about competing with the cheap stuff. >> when prohibition ended, did gold end overnight? absolutely not. you have moonshiners in virginia, but how much market share do they have? it's absolutely miniscule. >> next you're going to meet him and other entrepreneurs with high hopes of cashing in on the green rush. tyler? >> jane wells, thank you very much. a big selloff today, but there are some winners if you know exactly where to look. but the dow, down 316 points right now, all 30 stuck in the red today. we'll be right back to wrap it
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this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ it will be fascinating to see where the markets take us in the last few hours of trade today. it is a major down day for the equities, as you can see. a spike higher on the ten-year
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to 3.77. you can see the volatility index is also higher. gold and silver are running. it looks like gold, tyler, rallied before we had the big moves on the dollar, so we're trying to figure out exactly what's happening there. >> very few stock winners today. that will do it for this hour of "power lunch." "street signs" begins right now. not weathering the day very well at all. you have cisco and walmart getting slammed. they're rising to the highest levels in two years, and the vix at its highest in two months. gold overall like a safe harbor in the storm. we will be heading to cairo for an
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