>> drum roll. >> you did win the debate, weiss. >> oh! >> on coach. you were the bear. so let's do final trades. simon baker kick us off. >> simpson strong tie, buy it. >> john. >> anybody who voted with weiss don't buy this, cisco. >> steve weiss. >> qualcomm long. >> joe. >> stay long tj. >> "power lunch" starts now. scott thank you very much. we start with breaking news from san francisco, apple holding an event. we expect some big news throughout the hour mainly focused on a new tablet device. i'll be focused on the consumer side of the story. sue is following the stock side of the story. sue? >> good to see you, ty. apple shares are little lower. there was some computer based selling in the high flying names, apple one of them. there's a look at general electric as well, it got hit a little bit. down almost 1% on apple as we get ready to start that event. in the last year the stock is down 18%. it has recovered as i mentioned in the last few months. since july, it's up 30%.

but it if you have held the stock for five years, you are up a full 435%. so obviously that was a winning bet. josh lipton is angering our coverage from beautiful san francisco. over to you, josh. >> yeah, sue. we're here at the event just about to start as you said what we're expecting here apple to unveil some new ipads. the questions, though, the features, the price points. those are the kinds of details we're looking for. different speculation about what we might see for a full size ipad, will it be lighter, thinner? is it going to have the 64 bit a-7 chip that means it would run more data quickly. also, might it have that fingerprint sensor like the 5s that would mean no more passwords. for the ipad mini, is it going to have the outfitted with that high def in this retina display, everything would be sharper. the colors you might see for the ipad mini. some think maybe they'll come out with a gold iphone mini like

the gold 5s nicknamed the kardashian. on top of other mobile devices you will be looking for release dates, people think about the mac line, maybe release date for mavericks, the mac operating system. so all those questions, sue, we'll have the details for you as soon as this conference kicks off. >> terrific, josh. we look forward to it. we'll be checking in with josh throughout the hour. another shot was fired in the battle of the tablets today from microsoft, in abu dhabi. shares of microsoft last trade down two-thirds of a percent, up 30% in a year. before john fortt headed inside to apple's event he filed this report for us. >> reporter: yeah, another big tablet announcement today from nokia out of abu dhabi at nokia world. the 2520, new tablet from nokia launching in the u.s. and uk first. then coming to the rest of the world. $499, same price that apple has been with the ipad. initial sense from viewers it's pretty solidly built, looks like the rest of the phones in nokia's line.

we'll see how that does. microsoft looking to acquire nokia's devices and services business for $7.2 billion. we also see two large screen phones coming out of knee kia at this event and lower-end phones. we'll see if this tablet doesn't have to do better than the ipad, probably not going to happen, just add incrementally to what nokia has been able to do, gain some share in the mobile business. of course apple event is the big news today. i will be inside sending live updates on "power lunch." back to you. >> all right. john fortt reporting for us. seema also taking a look at microsoft from new york city. seema, are they buying what microsoft is selling or nokia more appropriately selling in abu dhabi? >> tyler, we're not seeing any long lines at this microsoft kiosk in new york city. we have seen more customers stopping by wanting to view the product and learn more about the microsoft 2 tablet. just in the last half hour, we have seen a gradual increase in foot traffic.

the customers that haveped purchased a microsoft 2 tablet customers are picking the surface pro 2 here, that seems to be the popular choice out of the two tablets microsoft is selling at this kiosk. to tell you more about the microsoft surface 2 it has 75% more battery life than the previous version does. the surface pro 2, dual screen functionality and more memory as well as $899 price tag. some of the customers that have played with the surface device but decided not to purchase the device said it was too vanilla, it did not have enough apps. some apple fans agree it was a quality device but they had already invested in the apple ecosystem and felt there were not enough. still a lot of customers stopping by, even if they're mot making a purchase, trying to learn and evaluate thing ones in the tablet space. tyler and sue. >> thank you very much, seema. apple's special event is now under way in cooper tino,

california. the main event has begun. joining me at cnbc headquarters is the independent tech reporter nat ta his morris. welcome back. >> thank you. >> at the nyse with sue is brian blair, principal with wedge partners. let me begin with you, natalie. what are the tablet wars if we can high per bowize a little bit, what are they boiling down to? what are the distinguishing characteristics these companies are trying to stake out about their products? >> it's really about price and it's about battery life. those are things people expect a lot of battery life. this is a foreign device. foreign factor, they care a little bit about that, speed, storage, but mostly again, it's about price and so that's why we've been so curious if apple can fit a retina display in something so tiny like this. >> a retina display means a clearer, brighter picture. >> super clear high definition picture and the other tablet makers now have that and so it's going to be kind of a feat of engineering if apple is able to do that in such a small device

because you don't know -- you don't want to make it bigger because retina takes a lot of battery. do you sacrifice this thunderstorm factor? i don't think they're going to do that. >> do they have the retina display in their bigger non -- that's the ipad mini. >> in the bigger ones they have it. >> the bigger ones are retina disclay. >> if you want the chairty you go there. >> could they do that at this price? this is some $500 depending on what model you get. they want to keep it at that. they can't bring this above -- you saw the surface pro now is $800. that's still a lot for a tablet because this is something that consumers can go wet weather. >> -- go without. >> can you hold that up so they can get a look at that and the colors on the display. >> you will see my family photo. >> are you like world wide wrestling people. >> we're the justice league family. >> i like that.

>> that's a clear picture. >> no one warned me. i would have changed the screen shot. >> still a pretty good shot, right? you have my kids here. >> other competitors in this space for the small sized tablets are they ahead of apple on retina display. >> there are a few that have a retina display like the google next u. nextus. that's why this is a tablet warp. there are people saying engineering wise, they can't do it. it will make it too big, too expensive. so to distract from the fact that it won't have a retina display, then maybe they're going to do fun colors like the iphone 5c. if that happens we'll see what market thinks. i'm not sure. >> very quickly, what defiannes retina display? >> the megapixel per square inch. how many are really there. the naked eye can pick that up. if i were to take a retina display next to this ipad you can tell the difference. >> you can look at it. >> you can. >> sue, down to you and brian.

>> we're going to focus on the stock side of this equation, ty. brian joins me right now. good to have you back. >> thanks for having me. >> you heard what natalie thinks we'll see in terms of innovation from mr. cook who has taken the stage right now. is that enough for wall street? it may be enough for the consumer? is it enough to move the stock? >> i don't think it's enough to move the stock because people don't want to see features. investors want to see numbers, that ipad can still grow. they want to believe apple can still maintain its market share in spite of offerings of less expensive and comparable tablets. so i think that wall street is going to pay attention to this event, to see if they can gauge innovation. what they will pay attention to is whether or not the apple can maintain that share and continue its growth story which we won't know until we get through the december quarter. >> sounds as though you're saying wall street doesn't just want incremental innovation. >> that's right. >> they want a little more of the wow factor in terms of breaking the mold as apple used to do. >> that's right. they want some of that.

they would like to see a new products category we're not going to see today. people want to see -- investors want to see what is the next big thing. they want to feel confident apple can hold on to its share. a lot of other competitors throughout not just for ipad but iphone and apple's gloets has slowed a bit. as they look at this, they want to see it if there's a continued growth path or has apple lost it. >> it still has a very wide margin, though, even over samsung. >> right. >> i mean that's -- >> ipad yes. >> narrowed a little bit. >> on ipad they have over 30% market share. a bit less on the iphone show. >> josh lipton, back to you. >> yeah. the event just kicking off here. tim cook is on the stage teasing us saying he has some amazing products he is really excited to show us and also giving us new data points saying the ios 7 the new mobile operating system is running on 64% of ios devices as of today. so more headlines examining here. we'll stick on them and back to you, sue. >> what do you think?

>> you know what the 64 bit is critical but what i think is interesting the 200 million devices update is huge because there's a ton of versions of android out there and the fact is apple has one version of their ios and everybody is migrating to it. >> cap we put up a chart of apple seeing if the stock is moving on the announcement. a lot of headlines throughout the hour. it's improved its position from the far right-hand part of the chart. brian, you're going to be with us the rest of the hour. >> right. >> appreciate it very much. meantime another record high for the s&p right now. right now the s&p is basically up 22% for the year. the etf that tracks the s&p. bob pisani is on the floor. we're now up just under a half a percent but a gain is a gain. >> and the reason that's happening we're getting the moves up today because of sector rotation. this has been the story all year. put up the sectors for the s&p 500. today, for example, utilities are big because we've seen a

bond yield collapsing here. consumer staples, health care, days when consumer staples will be down and technology stocks up. today it's been down. my point is nothing goes down for very long. no sectors are down all year. that's why the s&p has been strong. meantime in the middle of the day we had some of the big heavy momentum stocks, high beta stocks move to the downside, netflix started up 9% and went straight down, dropped below its early price, closed yesterday. that's when things started moving south. high volume. we saw big beta names including apple, apple shed $15 in a matter of 15 minutes. linkedin, facebook, even some of the chinese internet like sina to the downside. momentum. high volume and high beta names. you get these momentum players in and when stocks move south they all kind of pile in to the same trait trade. that's the problem with way trading is. machines make it easy to pile on

on the upside and downside. >> thanks so much, bob. appreciate the. ty up to you. >> thanks very much. the gap between west texas oil widening to its biggest gap in six months. brent rising after reports of a rift between saudi arabia. the saudis upset with the inaction? the civil war and iran, but west texas crude fell below $99 a barrel on increasing supply in the u.s. gasoline contracts down 13% in a month. according to aaa, gas is below $3 a gallon in parts of 24 states. on the list, arizona, colorado, massachusetts, virginia, new jersey, just to name a few. the lowest prices were found at some missouri warehouse club outlets where gas is now going for $2.66 a gallon. there are some of the states where gas is below 3 bucks. sue?

>> road trip. let's get back to josh lipton at the apple event in san francisco continuing to monitor the headlines. josh? >> yeah. sue, headlines still coming across here. tim cook still on stage. interesting data points one about itunes radio, customers love it. more than 20 million listeners listened to one 1 billion songsp. beginning to talk about the mac. stable. you see cannibalization from the ipad. but apple say if it's going to see cannibalization they would rather see it from their products. live from san francisco with more headlines when "power lunch" returns. [ male announcer ] legalzoom has helped start over 1 million businesses.

if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom.

welcome back to "power lunch." as we get ready for what's expected to be a big product event coming from apple, we wanted to get a check on the big name suppliers linked to apple products. these are the guys who make components that go into the biggest products that apple puts out. keep an eye on names like wireless chip makers qualcomm and broadcom and other chip companies some of which make memory and really processor and flash memory chips as well, think about british company arm holdings, also micron, sandisk. they could show greater than volatility if the apple event yields a lot of buzz and excitement.

back to you guys. >> thank you very much. the s&p at record levels and so, too, is ceo pay. a new survey from gmi ratings shows that some top executives aren't just making millions, they are making billions. here's mary thompson with the details. mary? >> thank you, tyler. gmi ratings survey of over 2200 ceos show their median pay increase at 30% last year. among the highest paid ceos the top ten earnings more than $100 million each. for the first time ever two of them earned more than a billion dollars. keep in mind gmi ranks the ceo by total realized pay. this includes salary, bonus and perks given for 2012 plus any gains realized from options exercised stock sold and the increase in the value of their pensions and deferred compensation. let's count down the top five. number five apple's ceo tim cook, while he received a million restricted stock units when named to that post in 2011 most of the $143 million he earned last year from gains on

stock grants given in 2008 and 2010. liberty media's greg maffei topping cook as he pocketed more than $250 million after exercising 3.1 million options a little more than half of an option grant in 2009. now maffei appears twice. he earned $136 million from options linked to the other firm liberty interactive. that placing him number seven on the list. mel carmaskin, strike price of 43 cents a share, walked away with $255 million in profits placing him in the third spot. richard kinder one of the two billionaires on the list, only paid $1 last year but converting over 30 million shares into common stock netted $1.1 billion. he will say 10 million were bought by a limited partnership not by him personally and that would cut the value of the third and take him out of that spot. the highest paid ceo, facebook

ceo mark zuckerberg. his profit on 60 million options with a strike price of 6 cents a share, $2.7 billion, sold a billion dollars worth of stock in that ipo and along with $1.2 billion in perks, which includes the use of the company jet and security makes him gmi's rating highest paid ceo of 2012. back to you. >> thank you very much, mary. let's go back to dominic chu looking at the performance of those top five stocks that are boosting their ceo's pay. how are they doing? >> sue, let's take a look at those stock stories behind those highest paid ceos starting with number five, go back and rewind, when we take a look at some of the realized stock gains over the last few years through 2012, apple stock surged from $210 a share in the beginning of 2010 to the record high $700 last year, shares closed 2012 at $530. during that time tim cook took over as ceo of that company after the passing of former ceo

and founder steve jobs. number four, liberty media, the diversified media entertainment company, has been in 2012 the company which owns really the atlanta braves baseball franchise, big interest in media companies like time warner and viacom, stock rose 50%. number 3, sirius xm, the satellite radio on fire, up 400%. liberty media a shareholder of sirius. kinder morgan, energy represented in the top five and, of course, who can forget about that number one like mary said, facebook, that hot ipo, that kind of flopped and found its groove again helped founder mark zuckerberg solidify his billionaire status. all about the stocks, not just their salary compensation. >> thank you very much. he's not ceo anymore but he's made a ton of money from his own stock. microsoft bound founder bill gates making another savvy play but not in tech. it will, we promise, surprise you. apple as you know unveiling new

ipads at a big event in san francisco right now. we are there with the latest headlines. we'll have them after this short break. stick with innovation. stick with power. stick with technology. get the flexcare platinum. new from philips sonicare.

tdd#: 1-800-345-2550 life inspires your trading. tdd#: 1-800-345-2550 where others see fads...

tdd#: 1-800-345-2550 ...you see opportunities. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 turn inspiration into action. tdd#: 1-800-345-2550 we have intuitive platforms tdd#: 1-800-345-2550 to help you discover what's trending. tdd#: 1-800-345-2550 and seasoned market experts to help sharpen your instincts. tdd#: 1-800-345-2550 so you can take charge tdd#: 1-800-345-2550 of your trading. ♪ [ male announcer ] laura's heart attack didn't come with a warning. today her doctor has her on a bayer aspirin regimen to help reduce the risk of another one. if you've had a heart attack, be sure to talk to your doctor before you begin an aspirin regimen. hello. i'm josh lipton here at the big apple event in san francisco.

ceo tim cook was on earlier. he was teasing us saying they had some amazing products. he was excited to show us. you have the software chief on stage, talking a lot about maveric mavericks, mac operating system saying it allows more apps without slowing down, better for imaging processing he's saying but we're all still waiting to hear about those updates on new ipads, the full size, the ipad mini, what will be the futures, what will be the pricing, we'll bring you those headlines as soon as we get them. over to dominic chu for a market flash. >> thanks so much, josh. we're watching shares of netflix tumble, reversing early gains that took the stock to all-time highs on the back of its quarterly earnings results. while those results were viewed as strong with faster profit and subscriber growth had been expected the movie renter was unable to continue its rise that has taken it up more than 260% just in 2013 alone. netflix is the biggest gainer in the s&p 500, tyler, so far this

year. >> dominic, thank you very much. microsoft's bill gates making a new investment but not in tech. he's betting, get this, on construction in spain. our chief international correspondent michele caruso cabre cabrera. >> bill gates, founder of microsoft, spent $155 million to purchase 6% of an infrastructure and energy company in spain. it goes by fcc for short. not to be confused with the federal communications commission. bill gates the second largest shareholder making a big bet on a coming potential recovery in the spanish recovery sector whiches has been decimated by the european financial crisis and a banking crisis in spain brought on by a real estate bubble. fcc could use the money, lost more than half a billion euros and trying to renegotiate 5 billion in euros they have to repay starting next year. this isn't the only high-profile

investme investment? spain. last month the equity firm cerbrerus which owns freedom group, they agreed to spend between $5 million and $123 million on a property management company in spain that was being unloaded by a troubled bank there. shelled don adelson's las vegas sands said they would build a new casino with 36,000 rooms on the outskirts of madrid. maybe, sue, this is a sign that things are turning there. back to you. >> it absolutely could be. thanks, michele. let's go back out to san francisco and more headlines from josh. >> yeah. hey, sue, the software chief was just on take stage and talking about the mac operating system and says the upgrade to mavericks is available for free starting today to mac users saying if you have mountain lion, snow leopard, single step update you can get to mavericks. available today for free.

guys, back to you. >> all right. josh, thank you so much. gold prices are closing right about now and as you know gold was actively traded today when we had the big move in interest rates. sharon epperson tracking the action for us at the nymex this hour. hi, sharon. >> hello. we are looking at near the close right now, for gold and gold prices right around 1342 an ounce, up nearly $30 here on the day and, of course, we have seen the biggest showing in terms of the highest price for the month of october for gold prices. the rally happened right after that jobs data came out. a lot of folks were caught off guard by that nonfarm payroll number. as the dollar dropped and gold rallied we are continuing to see strength in the gold market. now, traders are looking at key numbers here going forward and that is the 1350 level technically and to see whether or not gold will continue the trajectory we're seeing. others are saying perhaps now we are -- have seen a market bottom at least for the near term.

jim over at kiko metal saying it's important to look at key numbers, particularly the 1353 or so technical level the next one to watch. back to you. >> thank you, sharon. let's check in on interest rates because after we got that employment report out this morning which was weaker than expected, that had traders thinking that the fed will remain accommodative for perhaps longer than many people thought. n now the betting any taper might come as late as february, the ten-year note, the yield dropping, across the yield curve, a rally in terms of price so the yield is going down. you're up to date on the bond report. ty, back to you. >> thank you very much. i guess we're going to go back to josh lipton -- we're going to go to natalie, natalie let's get your reaction here to some of the things that you've seen coming out of this event out in san francisco. >> well, some of the things we knew such as the fact that there would be a lot of new features to the new operating system called mavericks. we didn't know it was going to

be free and that it will be available right now and that it's as far backwards compatible as though of you running snow leopard. that's a big deal. sometimes the big operating system upgrades are only for the previous generation because of the processor that's inside. that's not the case now. all can go and crash the servers right this minute and they're going to talk about hardware so we'll see how they can entice us to use this operating system not only on our existing macs but the macs available. we're expecting a brand new mac pro, mini, and this mac pro they talked about in san francisco. >> i know it might be easy for you to download a new operating system and have it compatible and let it run everything you've done in the past, but any time i've tried do it and i've tried to do it on mac computers, apple products and others, it's been an unmitigated disaster. >> you know, if you want to ask me for i.t. support you should

just ask me. don't have to put it that way. for the rest of you who don't have direct access it will be available in the apple mac store. >> forgive me for interrupting. to josh lipton out west. >> yeah, tyler. details here on the mac book pro. it's getting some major updates today. it's going to start shipping today and start at 1299. the previous generation was at 1499. some details tyler, it's going to be powered by the intel chip, faster, has nine hours of battery life. again, shipping today, the mac book pro and starts at 1299. guys, back to you. >> all right. brian blair is back with me and you just came up to the set to sit down with me and said $200 less is a big deal. >> it is a big deal. one of the main trends going on since the ipad was introduced was consumers have been buying tablets instead of notebooks and a big price differential. lowering the price of this by $200 is going to bring people

into the mac book a little more and maybe strengthen some of their unite volume in the mack line. this is a big deal. >> what else do you want to see from them? >> for me i want to see something -- i want to see the retina screen on the ipad mini. i don't own one and one of the reasons some have held off because the screen is lacking. something we don't all know about. that's been lost the last couple years. >> the innovation you referred to earlier. >> and we haven't been surprised by anything for a while by apple. we know what they're going to announce today for the most part. i want to see a surprise, something everybody doesn't know. >> i wanted to ask you about apple tv as well and i was thinking about it this morning. has apple basically ceded the position of infovater in computerized television to netflix? look at what netflix is doing. everybody thought that stock was dead last year and their move into cable and television, you know, they got the jump on apple. >> they did. i don't know if apple's given it up to them but net flicks has

power across mobile devices and different types of tvs, certainly shows their strength. apple's opportunity here is i think to do a large screen television? 2014 and integrate a lot of their streaming services and functions into the tell vig. that's one thing we could see today. we could see apple introduce the capability to download apps into apple tv in the box which could be a great predecessor -- >> enough of a surprise to you? >> that would be a surprise. >> ty, up to you. >> i want to pick up on what brian just said and ask natalie if she agrees with this? i agree with you, brian, that it seems to me that in these big product announcements apple has kind of lost the wow factor. >> right. >> do you agree with that. >> we hear that a lot and i know -- i feel a lot of wow around the new mac pro, the cylinder device we're waiting on a price and release date but i think you're right about the apple tv but we have to remember that now netflix is on the apple tv. apple tv just this year started to make big content deals like now disney, disney jr., disney

xd. i think they're still trying to innovate there, but i think you're right to see an actual screen from them, that then runs our ios apps would be amazing. it would merge those two worlds. i think we want really kind of a melding of our ios life. >> as we watch tim cook on stage moments ago. go ahead, brian. >> natalie makes a great point. you knee, they did show innovation in june when they showed the worldwide developer conference the mac pro. like nothing you've ever seen. it's a desk top but looks like a jet engine and designed to be the most powerful computer for the next ten years. they are showing some innovation, just not in any of the areas investors are focused on. >> in the mobile space. >> that's what we need to. >> and what wall street needs to see. >> this is a -- we don't have a release date or price on this but it's probably going to be around $3,000, so -- >> $2500 to $3,000 the right range. >> that's going to be a money maker in sort of the upper echelon of this marketplace.

>> very low volume. >> i want a new toy. >> you want the watch, a hat. >> i don't think we're going to see anything in the wearable side. i think a tv -- tim cook talked about having a grand vision for television. >> that's the kind of toy i'm talking about. leave it there and come back after the short break. talk more about apple and -- we're going to sgo to josh now? we are just so full of news, josh, we're going to come to you right now. can't wait. josh? >> more headlines dropping about the mac book pro. a 15 inch mac book pro going to ship today at 1999, the 13 inch at 1299. more headlines, from the apple event here in san francisco when "power lunch" continues.

s&p 500 hitting new all-time highs for the fourth straight day. the index on pace for its best year since 2009. more of the trading action here, bob pisani on the floor of the nyse. >> helped by a disappointing september jobs report. 8:30 a.m., futures moved up

because the fed is going to keep on with its program. the important thing, take a look at the ten-year yields collapsed, sitting essentially at three-month lows and helped all of the interest rate sensitive stocks. utilities, housing stocks and consumer staple stocks are having a good day today. emerging markets when you see the dollar drop dramatically all the emerging markets do well. south africa, these are etfs you can buy, thailand, chile and peru. big earnings week overall. whirlpool biggest gainer on the s&p, strong earnings, upbeat outlook, tjx raised their numbers. that's a historic high. lexmark, strong earnings and revenue and delta, a new high, their earnings report pretty good as well. back to you. >> bob, we're going to go back out to josh lipton before we continue our market discussion. >> yeah, sue. more headlines here. now about the mac pro, a starting price here of $2,999.

it's going to be available in december. the mac pro high margin, high priced low volume product. starting at $2999. available in december. guys, back to you. >> right before christmas. how convenient. thank you, josh. back out in a second. so with the s&p hitting record highs, how do you invest right now? joining me, kenny, director of o'neill securities and cnbc market analyst and david bailen, global head of management investments at citi private back. >> kenny, haven't seen you in ages. great to see you again. we were both traveling. one thing that makes me nervous people on the street are saying how do i invest in this market right now? >> this is where i always wonder what people are doing, especially the retail investor because the retail investor should be somebody that has a plan. got it put together. invested across a range of different sectors and injuries based on his risk profile.

the retile guy shouldn't be someone trading in and out every day because that's a losing proposition, right? so i always like to say to people that if you've got the right plan in place, then certainly names that have performed super well, you take some money off the table and put that money back to work in other sectors you think need to catch up. that's how i would be playing it. i wouldn't be, you know, for retail investors, what should i do? not be trading like a day trader. >> right. i know david that you would agree with that, but what sectors are your clients telling you that they find attractive right now? >> take a look at equities in general, at a time when there's sort of a pe compression and all stocks whether high quality or low quality are trading at a narrow range of price earnings. find companies and areas that will grow in 20 and we think you're going to see them in energy and manufacturing and housing and other areas where the economy is going to do better as a result of lower interest rates and more accommodative fed. we think that next year will continue to be bullish because if you think about it you have a

7% earnings yield and a 2% dividend yield. 9 % expected return in the u.s. a time when we think people should be fully invested. over weight 7% in equities and fixed income and think people have to follow like kenny said a plan where they actually implement according to a strategy and then stick with that strategy. >> the other factor that you were talking about kenny is the fact that you hahave companies like amazon, that are growing their businesses but they are not yet making a profit. >> right. >> but their stocks are soaring. >> their stocks are soaring but there is a place for those kinds of names, those growth names in somebody's portfolio. you don't want to be so overweight because as fast as some of the stocks go up they can come down. some of the people that want the growth stocks where they take their money and plow it back to capital improvements and that's a good thing. that's a good thing, right? but the other part of the portfolio has to be in solid

americana safe names you know. >> dividends. >> names you know and feel comfortable with. so, you know, is it wrong to be in those? absolutely not. certain portion should be there, right? >> right. >> david, i saw that you liked some of the emerging markets in particular, or at least your clients do, in particular which ones look attractive? >> we like the emerging markets net exporters, talk about korea and north asia in particular, some of the mkets in latin america may be improving in 2014, so we think there are some markets that could be, you know, could be buys next year. but in general, what i would say is we're looking at a huge differentiation. what we want to see is the consumer in the emerging market in particular is driving that market. internally not externally. if that's the case we think they should be added. their valuations are fairly compelling right now, sue, and we think they should be a full weighting in portfolios. >> thank you both, david and kenny. thank you. ty, up to you. >> folks, thank you very much. consumer reports slamming two

japanese luxury brand vehicles with well established reputations, cars that consumer reports basically loved before. we'll tell you what sedan scored too low to be recommended and we're continuing to monitor the very latest from apple's big product event out west in san francisco. the american dream is of a better future,

a confident retirement. those dreams, there's just no way we're going to let them die. ♪ like they helped millions of others. by listening. planning. working one on one. that's what ameriprise financial does. that's what they can do with you. that's how ameriprise puts more within reach. ♪ to prove to you that aleve is the better choice for her, she's agreed to give it up. that's today? [ male announcer ] we'll be with her all day to see how it goes. [ claira ] after the deliveries, i was okay. now the ciabatta is done and the pain is starting again. more pills? seriously? seriously. [ groans ] all these stops to take more pills can be a pain. can i get my aleve back? ♪

for my pain, i want my aleve. [ male announcer ] look for the easy-open red arthritis cap. i'm josh lipton. welcome back to "power lunch." we're here live at the apple event in san francisco. eddie took the stage, the senior vice president of internet software and services. he's taking about apps and begins by talking about ilife, new versions of ilife. it's redesigned for the ios 7. also iphoto, imovies and garage band, all new versions. we'll keep monitoring headlines and bring them to you as they come. back to you. >> consumer reports issuing scathing reviews on two usually

dependable japanese luxury car makes, the lexus is 250 and infinity q 50. th here's what it says. the lexus is 250 is neither sporty nor luxurious. its acceleration is lacking in punch and handling is lack luster on finesse. q 50 from infinity, quote, this car seems to have lost it ways and isn't as much fun to drive as its predecessor i presume. let's see how the stocks of the parent companies are performing. toyota is up about 40%. nissan which owns infinity up a more modest 8.6%. more on this story, check out phil lebeau's behind the wheel block on cnbc.com.

sue? >> ty, time to talk about the new retirement. which could be no retirement. cnbc has the exclusive on a wells fargo survey. nearly 40% of the middle class say they expect to work until illness or death. many in the critical savings stage are unable to. and they have no plan. >> 37% this year said have to work until i'm 80, only 25% to years ago. so again those kind of mounting pressures of the day-to-day bills are overwhelming them. >> well, those in their 20s have some issues as well. 80% have little confidence in the stock market, preferring savings account which, of course, yields you no interest or close to no interest. facebook's mark zuckerberg donated $100 million to newark's school system and now putting $4 million in seed money into a company called panorama education. what is it? we'll ask the panorama ceo.

it's a "power lunch" exclusive coming up in 30 seconds. today's yahoo! finance question of the day. microsoft and apple unveiling new tablets are you in the market for one? 19% say yes, i'm excited to see the latest features. 34%, though, say no. my current tablet does more than enough. 47% say i don't have one nor do i need one. yikes. that's not a good latest

percentage. >> no, not at all. look at that chart of netflix on the screen. the shares hit hard. the stock, of course, soared after hours yesterday on the back of its strong earnings report but selling off today on a downgrade. sales in companies like netflix and amazon are huge, both putting a lot of money into their growing businesses but neither posting significant profits but both stocks are, of course, flying high so far this year. now check out dow members united technologies, dupont and travelers, all three beat profit estimates but missed on the sales number and wall street giving them sort of a mixed verdict. dupont a little higher but ut and travleers down a bit. when it comes to profit versus growth what's more important at smaller tech companies? build the business fast or watch the bottom line. one question the tech start-up panorama education will have to challenge after scoring some money this week.

co-founder aaron failure joi-- fleur joins us. what will you do with the money you raised? >> thank you. as many schools and as many students as we can in the country. >> tell us about the business concept for the people who are not familiar with it. what does the business do and how do you plan hope to make money at it. >> so we work with school districts and help them figure out what are the problems they're trying to solve and how can we help them use data tackle things like bullying or student safety or teacher training, basically using data to help kids get a better education. >> what kind of data and how do you apply it in a practical classroom or school system setting? >> sure. for example, many folks today are looking at bullying as an issue. we help our schools figure out,

for example, one school we work with we helped them figure out who is being bullied, why is that happening and how can the adults at school actually intervene to prevent bullying. we've told them teachers can help stop bullying among ninth grade boys at your school. >> so you look at data across a system and your customers are school system, school districts or individual schools and they pay you to license the consulting. >> exactly. >> what's zuckerberg like to deal with as a partner? >> really smart, really thoughtful. he cares deeply about education as a personal issue that matters to him. he's been so smart and supportive and just very kind to us. >> and he certainly has put his money where his heart is in your company and the newark system there. we appreciate your being with us. >> indeed, thank you so much. >> good luck to you. back to josh lipton at the apple event out in san francisco. josh? >> yeah, tyler. still getting some more color here on apps, talking about

ilife. it was new versions of that, redesigned for ios 7 and also all ilife apps are free with the purchase of a new mac or ios device all available today. more headlines when "power lunch" continues here from san francisco at the apple event. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ from td ameritrade. in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better

and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

back with natalie with more comments. what you're hearing here is free today. that seems to be the two themes at this event. >> apple driving hard those two points, everything free and available today. they haven't gotten to the portable devices. if those are free and available today, everyone ready set go. >> we're talking about software updates.

>> maverick, ilife. iwork will probably not be free. ilife is free with the purchase of all new macs. the new mavericks operating system is free for any mac user. so yeah, free and today that's a great way to kick off a conference. >> hard to make money with free and today. google has done pretty well with free. >> yeah. >> they've managed to mona tize free pretty well. >> a quick break as we wrap up this hour at about five minutes before 2:00 as we watch apple, its stock, product announcements, its big event in san francisco. twins. i didn't see them coming.

i have obligations. cute obligations, but obligations. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. but at xerox we've embraced a new role. working behind the scenes to provide companies with services... like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%... and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done. how's that for an encore?

with xerox, you're ready for real business. tdd#: 1-800-345-2550 life inspires your trading. how's that for an encore? tdd#: 1-800-345-2550 where others see fads... tdd#: 1-800-345-2550 ...you see opportunities. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 turn inspiration into action. tdd#: 1-800-345-2550 we have intuitive platforms tdd#: 1-800-345-2550 to help you discover what's trending. tdd#: 1-800-345-2550 and seasoned market experts to help sharpen your instincts. tdd#: 1-800-345-2550 so you can take charge tdd#: 1-800-345-2550 of your trading. at a ford dealer with a little q and a for fiona. tell me fiona, who's having a big tire event? your ford dealer. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee, affording peace of mind to anyone who might be in the market for a new set of tires? your ford dealer. i'm beginning to sense a pattern. get up to $140 in mail-in rebates when you buy four select tires with the ford service credit card. where'd you get that sweater vest? your ford dealer.

welcome back to "power lunch." check out some of the big momentum stocks that we've been talking about the past few weeks. we start with priceline, taking big dips, lower here on the heels of net flicks coming out with their earnings report and ceo reid hastings saying maybe the stocks had gotten a little high in such a short amount of time and check out what's happening with tesla, electric car maker, a lot of the momentum names have been hit hard. you can pretty much look at reid hastings, his comments about netflix and why some may want to take profits off the table. >> dom, thanks. appreciate it. brian is back with me.

you want to talk about 4 k tv which is what apple has been spending an enormous amount of time on. >> i think it's important. most people don't know what 4 k tvs are. new television technology getting twice the resolution of current high definition tvs, something that started last year but the tvs are still $3,000, $4,000, $5,000. apple is talking about it as they talk about the new mac pro, will support three 4 k monitors. this could be what apple does next year introduces their 4 k television. this felt like a hint. >> it did. that's good. so so far you've been pleased, the fact that you agree with natalie too, free and today is very important. >> it is. it's critical. not a lot of people have adopted their equivalent of the microsoft office suite. not a lot of people are using their particular products, numbers and the iworks suite. their logic is let's give it away. buy a new device, you will get it. maybe that can drive adoption and taking a page out of the

google model. if they can get users maybe there's a way to mon tize them. >> "street signs" begins right now. we begin this hour with breaking news. apple holding a big event today. tim cook talking about ipads on the stage. let's get to our josh lipton who's at the event. josh? >> yeah. tim cook was on the stage, he kicked off the conference and teased us and said they had some amazing products, very excited to show us. he's back on stage and just starting to talk about the ipad. we started this 3 1/2 years ago. some people didn't see the need for it. he had some fun, showed some derogatory comments and quotes about the first ipad and said they sold their 170 millionth ipad this month. this is what we're waiting for to get the updates about the ipad, features, price points. we'll bring it to you as the