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tv   Street Signs  CNBC  August 20, 2013 2:00pm-3:01pm EDT

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market update. >> a quick check on the dow. we're up 40 -- i like that. we're up 48 points. so far, united, bank of america, verizon, intel and cisco. that basically does it, tyler. >> that's right. >> for this edition of "power lunch." >> remember, simon, weed does no cure the common cold. that will do it for this edition of "power lunch." "street signs" starts now. >> well, apparently the death of the american consumer has once again been greatly exaggerated. retailers everywhere are soaring today. we've got your full roundup of the winners and even bigger winners ahead along with what's old that seems to be new again. we'll explain. so what is the safest place for your hard-earned cash right now? the ceo of one of wall street's biggest firms brings you actionable advice. plus, left for dead stocks. should you take names acting more like zombies than
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superstars? you won't believe the latest toy of the super rich. we're going to show you. it's very cool. "street signs" starts now. >> indeed it does. let's take a look at those markets. we may be higher right now for the stock markets. the dow is still on pace for its worst month since may of 2012. mind you this is not unseasonably surprising. in the last 20 years august has been the third worth month of the year for the dow. two of the last three augusts, the index was down by over 4%. those are the stats to mull over. let's get to the trading floors, find out what's going on exactly. bob pisani at the nyce. bob, finally, finally after the market's longest losing streak this year, a bit of relief out there today. >> yeah. i'm not sure if it's a flight to safety. i think that's a more accurate way to describe what's going on given the carnage we've seen in emerging markets. put up the full screen. i'll show you. believe it or not, with the modest gain in the s&p, it's the
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best day we've had since august 1st. that's how crummy the stock market has been. calmer in emerging markets. we're no getting dramatic drops in some of these stocks today. overall, sector is still down. stocks and bonds up in the united states. light volume and news flow. of course, remember, it's august. it's hard to make grandiose pronouncements about what's going on based on the light volume. nonetheless, though, tomorrow things should pick up a little bit. existing home sales and the fmoc minutes. there's a couple people out there, mandy, who seem to hope that, hoping the minutes might be a little less hawkish than people are fearing. that's wishful thinking. the bond funds are all up. i've been asked about them two days in a row. really the big thing here, watch this lqd at 4% yield now. people are starting to talk about that as a little bit attractive at this point. >> you know, bob, great point bringing ining up the minutes tomorrow. how are traders positioning themselves ahead of the fed minutes tomorrow? >> you know, the fed minutes, of course, are important.
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down here there's a little adage and it says anyone who has a balance sheet approaching $3.5 trillion is important. i would agree with that. but we still see a lot of momentum to the downside. i'll make this real easy. if you look the at a chart, june 30th. 5th of july. if we trade through there to the upside in yield, look for higher yields. second, if we look at a ten-year chart. same timeframe. look at the same area of the chart. that top on july 5th was there are 2.74. if we trade under there before the five-year trades above $1.61, look for rates to go lower. can it be easier than that? >> can it be any easier than that? i don't know. i don't know. that's a big question out there. but anyway, thanks very much, rick santelli. >> thank you. >> it can be if you use the easy button. that's a different retailer. there are huge headliners for three big retail names today. one jcpenney, the other home depot. the third, best buy. courtney reagan, retail maven
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here to run us through it all. let's begin with home depot. that's the headline? >> home depot is strong because consumers are buying and spending on home improvements in big ticket items. something they've seen for some time. they put off the big ticket item purchases for a while. we've seen strength in retailers like home depot and weaknesses in areas like consumer discretiona discretionaries. >> jcpenney is a stock we talk about pretty much every day as a new headline. what would the headline for today be? >> though the second quarter was not good, it was worse than expected if you look at the eps, revenue, the same-store sales. the commentary about the trend is what people like to see. improving sales both online and in stores. over the quarter. encouraging back to school cash actual, relatively stable right around where they said it was, despite analysts saying, no, no, no way -- >> okay. okay. as our viewers know, a guy named jan rogers, probably watching right now on his treadmill watching velvet pajamas. if you're out there, thank you. we had a bet.
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i said jcp would not have positive same-store sales for three quarters in a row. he sent a snarky e-mail basically saying the trends prove i will be wrong. in layman's terms, courtney, can we say jcpenney has gone from a d-minus to a d, to a d-plus, to a minus? they' >> exactly. they're still dropping. the same quarter last year, same-store sales were down. >> they're dropping less. >> they're down 11%. >> they're dropping less is what i'm saying. the numbers weren't good but the trends, the commentary about the sales trends seemed to be what's encouraging people. i mean, i don't know. this one is a tough one. if you've got a strong stomach and can sit in it for a while and you're patient, maybe we could -- >> mark down everything -- >> it's not happening fast. >> -- 100%, you'll move it out of the door quickly. >> although that hasn't been the case. >> they have to bring back those customers they kind of -- >> which by the way, jan, if you're watching is your word. thank you very much for that. >> get out of the velvet
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pajamas. >> what's with the velvet pajamas over there? this, which was your stock dropped picked last year, this year you would have won. >> i needed a few more months. feel good about the pick obviously. it looks good now. >> what i like about this is that the ceo laid out this plan, and the renewed blue campaign. nothing huge and grandiose, but really looking at what is best buy strong in? things like service. that's what you don't get at amazon when you want to compare prices. they said, let's build shops with products consumers might have questions about. they seem to be really happy about how that's going. beef up online sales if that's what consumers are looking for. they've done that. online sales up. 10.5%. we laid out a plan. they stuck to it. modest improvements but in right direction focusing on core strength. >> for those listening on the radio, because, of course, many people listen to cnbc on the radio and can't see the chart we put up for you. the charts for the viewers say
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best buy is up 185% this year. >> the question, too, is what we've been seeing is it priced in or not? is it smart now to get in or is all of this hopeful investment sort of what we're actually seeing paying off? >> you're throwing out a few questions there. let's try to get answers now. let's bring in a couple of guests. we have adam, chief strategist at ino. he's been covering the retail sector for decades. >> who's that on the right? >> and herb greenberg with the street. i'm sorry. i'm not used to saying our very own -- >> speaking of velvet pajamas. herb greenberg. >> below his waist where we can't see it. skyping in with his velvet pajam pajamas. adam, start with best buy. how is it a big old-fashioned bricks and mortar store like best buy has managed to beat a amazon in terms of performance this year? >> that's the big news of the day i think to me because who would have thought that this company, best buy, was almost left to die, beat amazon by 170%
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in stock appreciation for the year so far. they did it in two ways. they were creative and put stores inside of stores. they're almost making a little mini mall inside their stores which is very creative i think. >> they have big names like samsung and microsoft inside best buy. >> jcpenney did that, too. >> and they have apple which is a really -- you can go there. the one thing they provide that amazon does not provide is instant, instant, instant. i can get an iphone or galaxy 3 or windows tablet, maybe, right there in the store. and take it away with me. amazon can't do that. they really are competing with amazon oneone-on-one. this is an amazing story with a brick and mortar company to come around and be so powerful. >> i seem to remember, herb, when i chose this company as my stock strapped pick in april of last years you laughed at me, danced around the newsroom like the video from "men without hats" safety dance. what do you have to say now? >> i was wrong.
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i think it is all about right now. i think hubert jolie is doing a great job at least right now. the reality is the price match is currently working. can he keep the trend going? those are the questions. >> i also would like to point out what we just said that best buy is doing working is two stores within a store shops and bringing in new big brands. isn't that what jcpenney did on a bigger, grander scale? st? there's a lesson to be learned. >> courtney, did they actually add, though, meaningfully to the performance this quarter? >> when i actually spoke to him on the phone this morning, he said it's hard to measure what's going on with the microsoft windows stores. they're still being built out. what he said so far about the samsung stores, they're happy about the sales within. >> adam, first of all, two things. number one, because i'm america, we're going to call you hubert jolly from now on.
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to make it easier. are they competing with amazon well on price? that's always been the thing. right? are they doing well on price? >> their price match policy is pretty good. it takes away the amazon advantage in that sense. go in there, pay the price, match any price and walk out with the product you want. that's the american way, the way people like to shop in america. the chance are you're going to be at a shopping mall, or somewhat close to a best buy. i think they could do very well. i'm surprised, their challenge in 2014 is going to keep this momentum going. that's the big challenge they're going to have. >> he said to me on the phone that -- >> sorry. >> it's hubert jolly. >> i'm not going that. i'm not doing that. he said on the phone today when i spoke to him that amazon is certainly competitive in some of their categories. he actually said they are irrelevant in others. so when need to remember that walmart, target, costco, those are other big competitors. it's not just amazon. >> let's move on to jcpenney. a moment ago we had two competing views. you said, brian, if you cut
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things by 100% they're going to come back and going to buy. courtney was saying but they're not. you, adam, i believe the number one mistake at jcpenney was they decided their core customers were not good enough. if they discount, do everything they can, are they going to come back? >> well hell hath have no fury, and i think jcpenney has done everything the wrong way. let me just say start off with these. ron johnson, very talented, did a great job with apple but he came into a retail space and said we'll just bet the farm and change everything that wuonce. rather than test stores out, they did everything at once. i've been into the jcpenney stores. they're nice but no one comes in there. you have to have customers to go into the tent. they've gone back to their coupon policy. i got one in the mail the other day asking me to come back, discounts on back to school products. i think they're trying to get back to their core roots. is it too late? i think it is.
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jcpenney has been around for 100 years. i thank brand is like the titanic, heading toward an iceberg and going to be done. if they don't survive this quarter and next quarter, i think 2014 we'll see something really bad happen to the company. >> adam, you know, listen, that's a powerful statement, right? we know there was an extended line of credit through goldman sachs, right? they could get more credit, don't you think? i understand the trend is not positive, but why be so strong in your statement there with jcp? if they're extending credit, they're going to be okay for a while. >> you had circuit city. they went out of business. the reality is it's a very competitive atmosphere out there. i think jcpenney has done everything incorrectly. a lot of bickering. a lot of bad press. a lot of nonfocussed interests on what they're doing. that's what's hurt them. they had a core customer and said, okay, you're not good enough anymore. you want you customers and threw everybody out. it's not the way to do business. and they're paying the price. their stock is down, what, 30%
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this year? that's hardly a winning solution. >> discounted both the baby and bath water. i'm looking on their website now, it's all discounts. free shipping and anything over 75 bucks. extra 20% off purchases over $200. 30% off that, 40% off that. they're cutting prices. >> by the way, on their conference call, they said they're restarting three credit cards which to me is a sign they're pulling out all stops to get anyone in, offer them perhaps discounts for getting the credit cards. you know, they're doing anything and everything they can do. >> herb greenberg. thank you very much. of course, adam and courtney. thank you to you as well. all right. on deck, comebacks and stocks. best buy not the only one that we're naming names on. plus, it's been a tough month for stocks overall. nothing compared to the mountdown in many of the emerging markets. does this make america the safest place for your money? we're going to ask the ceo of cantor fitzgerald. and later on we're leaving on a jet pack.
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let's take a quick look at netflix. the stock is up 4.5%. that's $11.50 a share. the stock at $271.29. netflix up 767%.
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it's a boeing jet, basically, over the last five years. >> the best performer in the s&p. guess who the second best performer is? best buy that we were just talking about. there you go. okay. you think august has been bad for u.s. equities? take a look at the carnage in emerging markets. let's bring in michelle caruso-cabrera for perspective on this. how much of this is due to the fed and the fear of tapering? >> a lot of it is the fed. when u.s. interest rates go up, everybody else's interest rates have to go up as well. we're considered the best credit risk in the world. if you're foreign country "a" and pay 2% more than the u.s. does, if you climb 2%, you're going up 2% as well. >> this is playing havoc with a lot of currencies in emerging markets. >> absolutely. we've seen massive selloffs especially in the frontier markets. right? remember the emerging markets we know a lot of them have lareall emerged a lot. the mind nearindonesias of the
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india, in particular. as a result, there's fwrgrowing concerns about what's known in the emerging market world as a sudden stock. new vocabulary. learned about this in latin america. this is when suddenly people two on a strike. there's a dollar strike. now hedge funds -- >> there's a rupee strike right now. >> they will not invest in india, will not invest here. what do you do? the central bank has to step in, have to start defending the currency, et cetera. >> i want to ask you, if you take the bricks, alone, right, there's a complete and utter disparity between russia and china which actually up this month and india and brazil which are down, i think year to date, over 20%. >> yes, big moves. >> why have we got this divergence? >> first of all, china is still this huge, huge economy. it's the second largest in the world and a very different story than what we've been seeing with brazil which has gone increasingly, et cetera, and gotten more and more int interventi interventionist. beyond that as well, the issue you have to face, yes, they're divergent, but ultimately a lot of times there's an asset
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allocation and it goes in a bucket. sometimes there's not a lot of distinction between these countries. >> i will point this out. confirming the data here looking down, argentina is the single best performing emerging market in the world over the last month. argentina. >> great. good for them. >> a piece of junk for a long time. i'm just saying not everybody is getting crushed. >> right. but you also have to worry about the value of the underlying currency. whatever country you go into, right? >> kerchner would like to seize assets. >> argentinian warships. >> if you want to invest in a country with a crazy leader, be my guest. >> michelle, thank you very much. >> you're welcome. cantor fitzgerald is putting its money where its corporate mouth is. not only to they like bonds, they liked them enough they're hiring new sales and trading people in fixed income. sean matthews, ceo of cantor fitzgerald. are you one of five people who
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like u.s. treasuries? or other types of bonds? >> i think it's a bet on the broad based fixed income marketplace. if you look, we've had a significant backup in a relatively short period of time. you still have the fed on hold. they're going to ease their tapering process. they're going to taper but not going to actually raise fed funds probably for another year and a half. when you look at the developments that are out there, i actually think fixed income is an interesting place to play. for the first time in a long time, people should be looking to sell and strengthen the equity market. >> let's narrow this down. fixed income is a fair ll lbask. give us how you would trade on the dips and fixed income? >> i think you look at the mortgage pace and it's gone through a very difficult two or three month time horizon. at least half the mortgages now are below par so you have a lot less selling going on in the marketplace right now. certainly from a spreads perspective, mortgages look the cheapest asset class right now, fixed income, in my opinion.
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>> we tend to look at tapering like a binary event, once they begin, it will ultimately end. some suggested it will not be. start tapering, realize the mistake and start to buy back more bonds. do you see -- with yields then falling again. do you see that as a possibility? >> i do see that as a possibility. i think we're range bound and certainly three and a quarter is is the high end for the ten year. but that leads for a tremendous am of carry, especially when the short end of the curb is actually at zero. i think people will be gravitating back into the marketplace once they feel there's some stability and the tenure has found a floor. >> bottom line, i want to ask you what would you think about u.s. versus europe? because there have been a lot of headlines recently suggesting europe has bottomed out or in the process of bottoming out. do you call that safe? is it a better bet in terms of performance going forward than the u.s. right now? >> i actually think the equity market is probably a better place to be in europe right now,
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certainly some of the financials look interesting. they've been beaten down. from the relative perspective of the fixed income markets, you want to be in the u.s. right now. >> got it. sean matthews. thank you very much for joining us. ceo of cantor fitzgerald. >> thank you. coming up next, french fries on demand. plus five being reasons tesla could be in the fast lane to the mainstream. later, can you guess -- this is cool -- the top two best performing stocks of the s&p both this month and over the last 30 days? here's a hint. what's old is new again. these names will amaze. i promise. this man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fifty thousand dollars.
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that's it. we are moving to belgium. this french fry vending machine was unveiled in brussels. foods and fries are dropped into oil and 90 seconds later you get a piping hot half cup of fries for $3.50. it doles out ketchup or mayonnaise. this one is being called the rolls-royce of vending machines because the oil is apparently animal fat and not cheap vegetable oil. i should say, by the way, thanks to said french fries i was in belgium for one year and put on
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20 pounds without even trying. >> wow. that's like a quarter of your body weight. >> it really is. like a whole other arm sticking out of my back or something. it was mainly -- >> got to do something about that arm. another big trophy headline for tesla. the national highway -- that camera. hi. traffic safety administration. gave the tesla model a full five-star crash test rating. folks, that is the highest rating possible. phil lebeau joining us now. phil, hey, another feather in tesla's cap. it's great. is it going to matter? >> it will matter long term in terms of the reputation they're trying to establish for being an established, reliable, safe vehicle. here's what nhtsa said during the crash tests. that did give tesla the model-s a five-star rating. tesla points out when you look at sub categories involved in the crash tests it's the best score ever given by nhtsa. 5.4 is what tesla comes up with. tesla says the test results show a low likelihood of injuries. keep in mind, there's no large block engine in the front of the
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model-s. that means a longer crumple zone and means there's more time to slow down those occupants in the front seat at a lower g-force. ultimately those all factored into the good test scores. what does this mean for tesla in the showroom? ultimately it helps people in terms of having a sense that this is a reliable and safe vehicle. now, that's not going to move sales immediately, but if you have this kind of a reputation, look at vol vorks over the heres. that's the kind of thing that brings people in, people on the fence make them, hey, listen, i want to buy this. other high end luxury sedans. i want to look at the first half sales. this who the model s is competing against. over 10,000 sold. it's well behind the e class as well as the 5 series. keep in mind when you look at these numbers here, this is just the first half of the year and you're looking at the high end luxury market, shares of tesla, we've talked about it for some time, up more than 300% in the last year. combine this with the consumer reports' glowing report, you
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have what you're establishing here for tesla an improved reputation or a stellar reputation at this point. >> it's a good package. sexy and safe. thank you very much, phil lebeau. coming up next, street talk. plus a full frontal fail for the aussie tourism board. later on, we're not dead yet. we're going to dig into stocks that were on life support and seem to be coming back to life. "street signs" back after the break. the cnbc realtime exchange market snapshot is sponsored by interactive brokers. i am today by luck. i put in the hours and built a strong reputation in the industry. i set goals and worked hard to meet them. i've made my success happen.
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okay. slamming through five big stock stories of the day. first of all, let's kick it off with social media buzz with zynga. >> i don't know what that means, but it's initiated -- >> i do not appreciate that. >> she does not appreciate that. zynga is a stock that was down 16% over the past month already.
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anyway, the firm notes concerns for the stock for the next generation game cycle. noticing increased user fatigue. prior to the games, competition strengths, you name it. in other words, mandy, the games are not hot anymore. initiated a sell. >> mr. hubert joly would not appreciate that. this time, facebook, though, is headed in the opposite direction of zynga. >> yeah, that is right. there's been no controversy around facebook lately. your stock strapped pick from last year, initiated facebook this morning with a buy rating. the firm believes opportunity far outweigh the risk with drivers like the massive move to mobile ads and the consolidation of inventory around fewer publishers. you wonder, mandy, i said that, i threw it out there as a semi thing. you think they'll ever start charging users? >> it's absolutely possible. >> $5.99 a month or whatever to log in? no ads? >> if it's something thrown out there. by the way, we last week did a whole interview on social media and the fact the last earnings from facebook have helped to turn sentiment around to the positive for the social media space.
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let's take a look at light in the box. its recent ipo, oh, today it is absolutely tanking. >> stock is down 38% right now, folks. litb is the ticker. analysts upgrade, downgrade. worth mentioning. perhaps it's a total disaster today. i don't know what else to say about it, folks. a lot of concern about this company. chinese retailer put out a funny thing on the web about what they're selling. lower cost goods. i don't know if they want to be the amazon of china or what. >> their front page looks a little bit like amazon. >> today, the under the radar stock to watch, diana shipping. >> they own 33 different types of ships. it was upgraded by credit suisse from underperform to neutral. 10 bucks a share. stocks above that today. a lot of that came today, folks. stock upgraded about a week ago at jpmorgan chase. again, positive commentary. not a name we talk about much. that's what we like to do on "street talk." >> "street talk." >> couldn't remember the name of the segment. >> you've really been on --
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>> riddle time. can you name the two best performing stocks of the s&p 500 both over the past month? 30 days. and month to date? >> believe it or not, they are tyson foods and pittney, two old-school names. that got us thinking, why is what's old seemingly new again with all due respect to tyson and pittney? let's dig into both of those names. tys tyson, up 16% this past month. joining us, tom graves from standard&poors. how do you explain the bullish move in tyson? >> a as you point out, the stock has been on fire, up 65% year to date. more than that on a one-year basis. the stock is benefiting from an improving earnings outlook and people are also appreciating the way tyson improved its balance sheet. >> sounds good. >> and indicating more consistency of earnings. >> did they get a boost from the smithfield deal? >> i think there was probably
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some boost from that. i don't look at tyson being acquired the way i expect smithfield will be. tyson is a much larger company. i think tyson is also benefiting from its diversification in various forms of meat proteins. >> okay. would you recommend still buying -- i mean, hey, doubling, with all due respect to tyson, it is not exactly a fast growth company. so with this kind of move, tom, do you still recommend buying shares of tsn? bottom line. >> my recommendation is hold. we think it's fine to keep your shares of tyson, but we think the move in the stock adequately reflects the improved prospects that we see. as we noted, earnings outlook improved sharply year to date. and probably in the last year. and we think that's already adequately reflected in the stock. >> tom, thank you very much for that. let's talk pittney now. we're talking about a postage meter company. it's soaring up, let me see, 26% over the past month alone. why? joining us from piper jeffries, george, welcome, great to have
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you with us. >> great to be here. >> i understand you're impressed with the turnaround story of pitney bowes. you like the new ceo and what he's doing. why do you have a neutral rating on this stock? >> the neutral rating reflects a balance between the short-term negative revenue comps that i expect, the limited eps grout, and some of the secular headwinds that we're seeing in the business balanced by some of the positives i'm seeing in the turnaround stores. mark is a fantastic catalyst for pitney bowes. he's brought on over half of the corporate management team he's replaced. he's in the works. he's trying to restructure and pivot this business over the next several years to focus on digital solutions. these are adjacent growth opportunities. growing in the mid teens with attractive margin profiles and should help accelerate earnings growth over the long run as well as create multiple upside. it's a balance between the two been obviously shares have outperformed year to date. and partly that's driven by very
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successful traction of this restructuring process. the company recently sold a $1 billion management services business, and that was a margin dilutive business. capital intensive. very competitive. so fwhgetting out of that busin paves the way for focus on high growth digital solutions. >> let me just bring up the point about the mailing business. this is why we call it kind of like an old stock that's new again. let's be honest, okay? you say you're pleased by the fact there are moderating declines in the core mailing business but structurally going forward over the long term, this is a sector in decline, isn't it? >> that's exactly right. i don't expect mail volumes to ever increase going forward. i expect digital communication technologies to continue to disintermediate physical communication methods. so i expect global volumes, mail volumes to continue to decline. offsetting this is pitney bowes' growth in digital commerce solutions. digital commerce represents about 17% of the business.
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i expect that to scale to about 22% to 25% by 2015. and by then, that part of the business should be large enough to offset the declines in the core business. >> we have to go, buddy. great stuff. we'll see you again on cnbc. >> thank you. a zombie apocalypse ahead on "street signs." back from the dead or nearly dead stocks. names you thought were -- but are still sticking around. why zombies won't buy any brains to feast on in the airport of tomorrow. first, let's get to bill griffeth of what's coming up on the "closing bell." >> we're wondering whether the government is trying to break up jp morgan and change its management. that's what denoted analyst says. all these investigations suddenly cropping up. we'll get dick's statement on all that coming up. also cme group executive chairman terry duffy with us today to tell us whether the recent market weakness is the start of a larger selloff. and colorful cypress
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semiconductor ceo t.j.rodgers, why the push on the rich will hurt middle income americans. we look forward to seeing you at the top of the hour on the "closing bell." stay tuned. what you wear to bed is your business.
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are we fast approaching humanless airports? machine replacing man. maybe not in the control tower, take it easy. but if you've been to one of those restaurants in the airports that uses ipads for ordering foods, chances are it's run by otg management. otg's founder and ceo is with us. rick, thanks for coming on. i've been noticing your shops. travel a lot. got one in terminal d going in to the delta terminal at lagarde wra. thanks for coming on. how many stores do you guys have? tell us about your growth. and the future of maybe a machine-run world. >> we have 180 locations in 10 airports and terminal d, delta terminal at laguardia, deploying between terminal d and terminal c 2,500 ipads that work in restaurants in the gate hold areas so you don't line up like you used to for the last 40 or so years.
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what we do is use our technology to enhance the customer experience. which allows our crew members to spend all their time on hospitality. >> so you say you're enhancing the customer experience by using the technology. i took a look at what you do. you can sit down essentially if you're a working person like brian is on the go. plug in, eat, and work on your computer at the same time and order from an ipad. does that technology make you leaner and meaner? i see you're actually adding head count. >> yes, we as a matter of fact in laguardia terminal d added 125%, minneapolis st. paul, added 160% of crew members in head count. >> shouldn't the technology mean that you can hire less people? >> well, we believe in a high touch business because restaurants, bars, et cetera, is very high touch. what technology has been able to do for us, even though we add head count, our overall percentage of our payroll has been reduced since we speed up time and enhance the customer
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interaction. >> because you can see that people will say, oh, rick, you know, we're already struggling with the job market here and you guys are putting people out of work because you're replacing man with machine. counter that. >> well, i can only counter it by the actual facts and we more than double the head count when we go into an airport. if you think about it, we're in all the gate hold areas. those areas where we used to sit, there wasn't any experience at all, are now full experiences. so there are crew members in all the gate hold areas. the footprint has been dramatically increased. the h head count has been dramatically increased and the hospitality and interaction of the experience has been traumaticalltram dramatically increased which helps everybody. >> robots not yet taking over the airport. thank you so much for joining us today, rick. still ahead on "street signs" a downright outrage down under. what the australian tourism board did to make some of my fellow countrymen hopping mad. plus this -- >> i'm not dead.
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>> he says he's not get. >> yes, he is. >> i'm not. >> he isn't? >> he will be soon. he's very ill. >> i'm getting better. >> stocks that are kind of like that "monty python" clip coming up. don't let your money take a vacation this summer. bring cramer to the cookout. tonight, there's a battle brewing for the best beer, and cramer's crowning the winner. cookouts with cramer continues tonight. clients are always learning more to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." the world is changing faster than ever,
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okay. see what you think. some of my fellow countrymen are hopping mad over this. it's a picture of a kangaroo posted on the facebook page. some people were not happy the animal's nether regions were blurred out. it was meant as a joke. who knew a kangaroo could cause such a fuss? personally i think it is pretty funny. >> describe the picture to the listeners on the radio. >> it's a male kangaroo reclining having fun there ins green and has his nether regions pixlated. in just three days that picture was liked by over 30,000 people and counting. >> and i just should say there is medicine for pixlated nether regions so people know.
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we're calling them walking dead stocks. names you thought were left for dead quietly coming back. dominic chu has a list of them and joins us now. who are they? >> let's talk about it. we talked about jcpenney, a stock that we're watching on earnings and talking about what's happening with best buy. having a great year so far. what are some of the other names we've seen over the course of the past year that have had big drops left for dead but with showing signs of life? we want to kick it off with hp. meg whitman, ceo at hp has a daunting task. she has to fight a secular decline in personal computer sales, to become business friendly and service oriented. the stock took a huge beating but up 128% from its low. the dip and a rise. the question, the challenge for meg whitman, can that momentum continue? they report earnings tomorrow after the closing bell. a stock to watch for sure. another one we're watching is also technology-ish.
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it's groupon. the co-founder of the company has now taken over as permanent ceo from andrew mason, and he's trying to get groupon to become relevant again after a big ipo. it fell sharply but is now up 267% off of its lows. it's more than doubled since the lows that we saw last year. so that's going to be big. of course, another big one that we're talking about here is the final one, and that is, of course, what's happening with blackberry. you can see those shares. here's the pitfall, guys. the shares can rise. but you can see there, they've fallen quite a bit off of the highs. brian, mandy, some stocks to watch, but certainly ones that are maybe like the walking dead. >> dom, thank you very much. and i know under the trousers you're wearing the skull and crossbones socks. okay. well, let's look back over the past 10 years. energy was the best sector over the past ten years, so what's the sector over the next ten years? we have mark here and robert of shorevest capital management.
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glad we get the titles over and done with. first of all to you, mark, what's the best sector over the next 10 years? >> we feel that the best performing secretaperform ing sector would be the biggest loser over the last 10 and that would be the financial sector. there's several reasons for that, one of which is valuation. the next of which is mean reversion, and then also the current state of interest rates. so starting off with the interest rates, we do expect over the next several years that interest rates will rise. the yield curve will steepen, and with a steepening yield curve, the financials stand to benefit from that. you look at mean reversion, it's not all that uncommon that the biggest loser from yesterday becomes the biggest winner tomorrow. and then, as far as the valuation goes, you know, you look at the p/e ratio, the financial sector versus the rest of the s&p 500, it's undervalued. and as far as corporate earnings growth goes, it looks like the prospects for the financial sector is really amongst the best of all of the sectors that are out there. >> what do you think, robert? >> well, you know, i think,
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mandy, if you want to look at what the next best sector will be, you have to look at what the environment will be for the next 10 years. i think we'll see rising interest rates, so you need companies that have strong balance sheets, aren't so dependent on the ability to borrow. i think it's going to be a slow-growth environment, so companies that could innovate. and i think you're going to need companies with the global outreach, as we're seeing our demographics here, the population's getting older. so what those three have in common is technology. you know, technology's taking over the role in our life. you know, used to be -- >> okay. well, i -- robert, i have to jump in a little bit for you. saying technology is like what are you having for dinner? food. all right? it's a gigantic space. can you be more specific for us? >> sure. i think you could play it with a barbell approach. go with a company like cisco, where you're getting the stability and the great balance sheet and you're getting a nice dividend yield right there. but i also think you need to look at things like 3d technology, and also social media, areas like facebook and linkedin. i think that's going to be the next big wave. and i think as, you know, investors will be hungry for growth over the next five, ten years, that's really the place
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that will dominate. >> you mentioned linkedin on the show before, but i understand not at these levels. you wouldn't buy it at these levels, is that right? >> well, you know, i've been waiting for a pullback on linkedin. it does not seem to come at this point. right around 200, 215, there's a gap on the charts, so technically we feel a little bit better if we can get into the stock at those levels. >> okay. we have to leave it there. guys, thank you so much for joining us today. mark and robert. >> thanks a lot. >> thank you. >> okay. all right. so next up, we'll learn how to fly. over water. kinda. it's a new toy for the rich. pretty awesome. right now, 7 years of music is being streamed.
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a quarter million tweeters are tweeting. and 900 million dollars are changing hands online. that's why hp built a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. this&is gonna be big. hp moonshot. it's time to build a better enterprise. together. chalky... not chalky. temporary... 24 hour. lots of tablets... one pill. you decide. prevent acid with prevacid 24hr.
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[ 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. [ telephone ringing ] now a waiting room is just a room. [ static warbles ]
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♪ sailing yeah, watch this, folks, a couple days old, but team new zealand, the new catamarans, wow. we're showing it takes a nosedive into san francisco harbor in the defeat of italy, two grinders, two of the wenchmen knocked overboard, they were safe. the new catamarans, by the way, pioneered by larry ellison, because his team oracle won, you won the last one, a lot of the sailors, i know some guys that sail, they say they're terrified, wearing helmets. >> they're so fast. >> yeah, these are race cars now on the water. dramatic video. >> they are. well, talking of that, okay, let's look at this. this thing, they call it a water-propelled jetpack, i guess
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if you couldn't tell. the company's ceo joins us. it looks awesome, matt rosenblatt, thank you so much for joining us today. the price tag for one of these things is $68,500. right? for that, i could buy a tesla, i could buy midrange maserati. why would i spend that kind of money on something like that, even though it looks quite fun. >> at that price point, it allows you to fly, but we brought two products to the table for 6969 get a board, and 7979 get the -- >> okay, what's the demand like? >> we're just launching the product. we just launched it a week ago. we've had nice sales. we're looking for some distribution channels to some jet ski markets. for basically everybody -- giving everybody the ability to fly. >> this is not a personal question, matt, but what is that hose connected to? >> it's connected to a jet ski.
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you can't -- you can have it connected to a seadoo or kawasaki, and we made it a universal connection. you have your own throttle. you have a swivel hose so can you do turns, twists, do anything you like. >> we're showing a video -- for people on the radio, i don't know if that's you running across the water, not elevating. how much room to get away from the jet ski? how fast does this thing go? >> so that -- that r-200x, you're looking at, can go upwards of 30 miles an hour at 30 feet. the new product that we have, the aqua flyer and the aqua board will still go in the 20 to 30-mile-an-hour range, and it still puts you 30 feet up on a personal -- personal watercraft. like i said, on a seadoo, yamaha, kawasaki. >> what about disclaimers? do i have to sign my life away, say i take absolutely no responsibility for my life. >> not at all. >> what are the safety concerns? >> not at all. we don't have any.
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actually, we're happy to say that on thousands upon thousands of hours of flight time, we have zero incidents. and i can say that with a huge smile on my face. we have zero incidents. there is no fear. the greatest part about this is if you fall, you fall into water. and at 30 feet, there is nothing to worry about. it is actually extremely safe. and we're proud of that. we're proud to say that we have zero incidents. we're excited about this new product. it's fantastic. >> we need to do one of those on "street signs." except with the minor point of not having water here. >> hudson river. >> we'd love to you out -- >> matt, seriously, anytime, buddy, as long as cnbc approves it, i will ride. i have no problem with that. fantastic. >> listen, we have our own lake down here -- >> how much weight does it carry, that's the -- what's the load limit? >> no problem. we can get 350 pounds up -- >> oh, you're safe. >> i'm under there. >> yeah, you're extremely safe. >> all right. not as close as you think. matt, very cool stuff, man. love the innovation. thank you for joining us. >> thank you so much for having us. >> and it's all made here in the united states.
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>> cool. >> thank you so much for joining us today. the markets, well, you know, we're actually doing better considering we've had a bad streak recently. as you can see, we're moving up by 32 points on the dow, inching further away from the 15,000 mark. it was looking precarious there for a moment. >> take care, everybody. see you tomorrow. hi, everybody. we enter the final stretch. welcome to the "closing bell." i'm maria bartiromo with the new york stock exchange the market trying to break the losing streak. >> yes, looking good so far. a lot coming up over the next couple of hours, including more on what is going on with the government and jpmorgan chase and its ceo jamie dimon, yet another probe has been announced. i mean, i think there's, like, four of them out there in various parts of their business. >> four agencies. >> four agencies have announced probes into this bank, and now, noted

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