>> mike murphy. >> by under armor. >> ebay long. >> josh brown. >> jonathan brands breaking 50 hold on. >> i will see you tonight for more fast at 5:00. "power lunch" begins right now. >> "halftime" is over. >> and we start with breaking news right now and bob pisani has it. it concerns facebook and the nasdaq. >> remember that glitch with facebook ipo and nasdaq. nasdaq is about it to announce how much money they're going to pay out to member firms. they were -- a lot of litigation from member firms claiming they were damaged by the facebook ipo. they're going to pay out about $42 million. original assessment was about $62 million. i'm told it's less than expected because ubs which had a major involvement decided not to file a claim. they sued but a judge ruled against them. ongoing court case there. bottom line about $42 million, sue, the money is going to be paid through finra, regulatory organization that assessed all

of the claims. they decided it was going to be about $42 million so nasdaq's going to pay finra, finra will doll out in the uny. we don't have a timetable but i'm told it will be in the next couple weeks. >> we don't have a breakdown into what firms will get what amount. >> i don't have that yet. i think that will be available state of the union. we're working on it. >> bob pisani, thank you so much. ty, up to you. >> sue, the markets are roaring, soaring, anything but boring. we have found warning signs. we will show you what we're talking about and let you decide whether it is time to take some of the cash off the table or if you think the risk is worth the potential reward. transports are hitting a new high and there are reasons to be optimistic on certain stocks and sectors. we will talk about that. there are three good reasons why ups is on a roll hitting another all-time high today, $94.71 right now. we've got the cfo as the company reports solid numbers and indicates that the company is in for quite a nice holiday season.

plus, the nasdaq zeroing in on 4,000. we'll follow that march forward as well. also on our radar today, the fda may be able to get tougher on painkillers. first, though, back down to sue at the nyse. >> and ty, we're going to start with the warning signs and we pose a question, do you need to make some adjustments to your portfolio given how far this market has run? dominic chu has been taking a look at that and he has some answers for us. >> i wish i had a crystal ball to tell you what was going to happen with the market but the bulls have been right for the mashts for the past four years but investors are looking to some of the signs of caution in the marketplace. one of the things they're looking at is market sentiment. the american association of individual investors they do surveys on market sentiment and the latest reading most investors were the most bullish they've been in ten months. they're also the least bearish in at least 21 months. too much bullishness, not enough bearishness. that might be a warning sign.

now second, is the market too richly valued? many say no, but some of the more skittish investors say the s&p is trading with a price to earnings ratio that's above what it normally trades at over the longer term. in other words, stocks are more expensive than they typically have been on average. now the third one is momentum. market momentum. a lot of upside, obviously, in the stock market since we're at record highs. some of the high flying names like netflix and tesla have slowed down and that could be another warning sign coming up here in the markets. number four, we're seeing some of the big name stocks, outsized gains. think google, priceline, over $1,000 each. graybolt's execution chief analyst gets nervous whenever anyone talks about $1,000 stocks and when carl icahn starts tweeting about his stock holdings. number five, this is interesting, according to data from the nyse member firms there, investors are using a record amount of borrowed money

or margin debt to buy the stocks at these levels. so yes, they're borrowing money. the fed is in play here keeping interest rates low. these are a handful of the caution signals. a lot of others but they might be worth taking a look at if you've got some profits and might be able to take some of those off the table. sue, back over to to you. >> thank you very much. see you in a little bit. kenny is here. abigail is here as well. abigail, you have been looking for market correction for some time. the charts have been telling you that the market's going to turn. it sounds like that kind of fits in with what dom laid out for us. >> absolutely. the charts have been bearish in a very subtle way for, you know, the bulk of this year. clear signs of profit taking from the early smart money and speaking to those signs, it really makes a lot of sense. they fit perfectly with the end stages of a classic mania. euphoria and overtrading. we saw this in 2000 at the end of the it tech bubble, in 2007 at the end of the housing bubble. now i think we're looking

probably at the end of a potential fed bubble. the federal reserve has pushed investors so far out into the risk assets, complacency, however again, if we look at the smart early money, the trail of profit taking, they want to take some off the table and put it in their pockets. not because they think a correction is coming or a crash, but just because they want to make sure they have something to show for it. i sense they're probably worried about the outlook. >> you've been saying take some profits if you've got them, right? >> i think you should. i think you maintain the core position and take some. i don't think by any stretch people should be bailing out completely. i don't think -- as an individual investor that's not a smart strategy unless you're so convinced you're getting another event like 2008 which i'm not saying we're getting at all, i would never take it out. take some of the high flyers out and take some of that money. >> the if fed is going to be there a while it looks like. >> another issue, of course. so issue one and issue five that dominic points out are the two that are complacency on the one

hand and mar gyp buying on the other. >> that speaks to the euphoria and overtrading. >> that screams market top, right. >> i agree. it's not a matter of taking everything off but in stages. look for the signs. the early technical signals of pullback are showing, smart early money is pocketing, taking chips off the table for sure. >> thank you very much. appreciate it. the nasdaq speaking of euphoria, hit another 13-year high today. it is about 50 points away from nasdaq 4,000. wow. that's up 31% this year. most people who play the nasdaq do it through the triple qs. they are up almost 27% in a year. sheila dharmarajan is in times square with some of the details on that. hi, sheila. >> hey there. there's no shortage of action today here at the nasdaq. as you said we opened at a 13-year high and, of course, we are all on nasdaq 4k watch. about 65 points away from that level. remember, 4k is not a level we have seen in about it ten years,

since september 2000. a lot of people looking at this. now today's pop is thanks to strong earnings from amazon and microsoft but if you take a look at what's been overall driving the nasdaq, it's the momentum stocks. yes, we are seeing them pull back a little bit this week, but take a look at tesla in the past one year. up over 500%. netflix, another big winner at the nasdaq up over 400%. biotech has been a real outperformer, really leading the index higher and got to mention facebook, up 50% in just the past three months alone. so certainly internet stocks helping lead the nasdaq higher. a lot of other activity happening at the nasdaq with ipos. three of them that were priced this morning, tallying to about 100 so far year to date. we haven't seen those kind of numbers since 2007. tyler? >> thanks very much. sheila reporting. so the nasdaq new 13-year high that could be a bullish or bearish sign, but here's some other signs for market detectives out there. the dow transports down today, but they are hovering at new

all-time highs nonetheless. they hit them earlier this week. then you got earnings from internet giant amazon and the biggest software maker microsoft both this week beating estimates both seeing sales soaring. and relief for consumers heading into the holiday shopping season. oil is below the key $100 a barrel mark. there it is, 97.77. the average price of a gallon of gas is now 3.20 or 3.37 on average. i got some the other day for 3.05, that's about a dollar lower than a year ago. that according to aaa. one company that watches these very things -- these three things very closely is ups, a transportation company. very sensitive, of course, to changes in oil and gas prices. and now, it is in the dow jones transports. ups beating estimates stock. new all-time high. curt is the cfo of ups. a member of cnbc's global cfo council and joins us now.

welcome. and you had a good quarter. what drove business this quarter? >> great. thanks. it was a good solid quarter. you know, continued gradual expansion and good operations in the u.s. and some stability outside the u.s. >> i'm curious, mr. kuhn. who is your single biggest customer? >> we have a lot of large customers, although not any one concentrated customer. our top 20 customers only represent about 10% of our total revenue. it's a pretty diverse group. this time of year clearly the e-commerce shippers become a bigger portion of that as we ramp up for the holidays. >> that's one thing i want to talk to you a little bit about. i can't imagine people are going to spend or shop less on e-commerce sites this season, but what we do have is the shortest time between thanksgiving and christmas we've had in about a dozen years. how does that change your business, if at all, it certainly makes it more

concentrated i would think? >> yeah. you're right. it's been since 2002 that thanksgiving was this light. so compared to last year, there's six less shopping days. big ib creases on a day-to-day bases. our peak day december 16th when we process 34 million packages and overall, we're expecting our volume on per day during that holiday season to be up about 8%. >> that's very interesting. let's talk about the international business which as i read your report, indicates that in some parts of the world, the business isn't growing as well as in the united states and that more and more shippers are choosing cheaper options, ground as opposed to air. do you see that turning in a different direction any time soon? >> yeah. the primary challenge has been exports out of asia and clearly

asia was, you know, on a huge growth path and the last year or two it slowed a bit. what we've seen this quarter that's surprising we saw our shipments moving across borders within europe up 10%. so it's great to see the european economy recover a bit. >> wow. >> and also ups's business of being able to provide pan european coverage is really coming into vogue right now. >> very interesting. so across border business in europe up 10%. >> yeah. even more notably, two of the countries we've built broader capabilities in on the fringe, the poland and turkey, we saw volume growth up over 20%. we are seeing some, you know, some health in europe and i think ups is performing quite well there. >> kurt kuehn is the cfo of ups. have great weekend. >> thank you. >> sue, down to you. >> thank you. the fda may be about to make new rules regarding painkillers and this impacts a lot of people, a

lot of money and a lot of companies. that's coming up next. before the break, though, another reminder that we're all about the bulls and the bears here. this is a bull in romania on the loose. went after a traffic officers. wow. look at that. don't worry. the man is okay. the bull was captured. and this is just what an awful los angeles traffic did not need. a bear bringing cars in the pasadena area to a crawl on the 210. well, after -- look at that guy. after running through the traffic, he tore across a golf course. at last check he's still on the lam. there he goes. there he goes. more bulls and bears. poor guy, probably scared. more bulls and bears and "power lunch" in two minute's time. run. [ male announcer ] the founder of mercedes-benz

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procter & gamble under pressure today. a big move for the consumer products giant, managing to meet wall street's expectations, but revenue was slightly above estimates. the company, though, says it is on track to post previously announced goals for the fiscal year. the stock is up 17% this year, but it's down more than a percent today, ty. >> it's turned into the most widely prescribed drug in america, this was a big surprise to me but fact it is. the fda now proposing new rules to limit how it is prescribed.

bertha coombs covers health care for us and give us the details. >> widely prescribed and apparently widely abused as well. we're talking about popular painkillers containing hydrocodone. the food and drug administration recommending tighter prescription standards to curb abuse, some 12 million americans said they've abused them and to curb addiction to these painkillers. the fda is now recommending prescriptions on any drugs containing hydro codine like vicodin be classified as schedule 2 substances in the rules putting limits on how they're dispensed. prescriptions limited to a maximum 90 day supply from 180 days. hydrocodone drugs are dispensed more widely than cholesterol and blood pressure drugs but sold generally as generic drugs. as a result, she's from fpc consulting the new rulings may not have a big impact on the drugmakers. they're not big dollar makers per se. the news, in fact, today is not

hitting their shares. abvie which makes vicodin hitting a new high. the rules have to be approved by hhs but that does ato be a formally. something a lot of doctors have talked about, the dea pushed for this. a controversial thing. >> scary substance and people think, because it is, quote, a prescription drug, it is safer than some of the street drugs you can get. they're just as addictive if not more so. thank you very much. the fda also working on regulating pet food for the first time. this comes after six years after a major pet food recall involving a chinese pet food producer that was selling contaminated dog and cat meal containing plastics. several pets in this country died because of that food. sue? >> ty, brett favre admitting serious memory loss in a radio interview on thursday. the 20-year nfl veteran claiming

he has no desire to come out of retirement and fears he is now paying the price for all the hits he took over the course of his career. back in august the nfl reached a $765 million settlement with retired players who were significantly impacted by concussions. but is favre's concussion a game changer for the nfl because of his profile? has the nfl done enough for player safety or is it getting off easy? jack pressurer is founder and ceo of the brewer group and played with the nfl for five seasons. john najarian is with us and he played with the nfl in college. thank you both for being here. jack, i'm going to start with you. you played against brett favre. you know, perhaps because of his profile, this is once again reopening the conversation about whether what the nfl did was enough. what do you think? >> it is. it's a broad perspective now given the fact that brett favre is a favorite player of people like myself and the normal american now really sees the

sacrifice that athletes pay playing the game of football. it's a violent game. you get compensated a lot but at the same time you're sacrificing your future health. >> do you think this would force the nfl to take another look at that settlement or not? >> not really. i think the nfl, you know, pushed the settlement through. now it's time to move on. our firm focuses a lot on trying to find creative ways to find treatments, advance those treatments. i don't like to dwell in the past. it's time for us to look forward and find ways to help the guys that are suffering. >> jon, do you agree with that? is it time to move forward and perhaps use brett favre's profile in the game as a call to action on that? >> i think it will be a call to action because just as jack said, there's a lot of folks that can relate to brett favre being that he's a relatively young man too. we're not talking about old athletes. 44-year-old man that has this kind of memory loss, especially sue, so soon after his career is over, jim mcmahon was experiencing these same sort of

things right at the end of his career and my brother pete used to coach with him and some of these summertime coaching with kids and so forth, so i think, sue, you're going to see another settlement. i bet it will be a lot like jamie dimon and jpmorgan in you have this settlement for a particular segment of the players and you'll likely see another settlement with some of these players that are just retiring now because they weren't covered by that previous agreement. >> that's a very interesting perspective. i would assume that perhaps it might be a larger settlement, given the fact that these players are younger and they will have, hopefully, many years of life ahead of them? >> i believe so, sue. and, you know, again, back to that jpmorgan analogy. when you tap that piggy bank and know it's a big piggy bank the temptation is to go back to it. i will not be surprised if the

next settlement is as big or bigger and that it covers a wider range of players to jack's point, hopefully they can get the right treatment. but i'm happy that the nfl is addressing this. i think they're doing a lot to make players safer with the helmets and everything else the way that players are observed after they show some symptoms i think that's -- >> does it change the culture of the game to both of you? jack, you first. the culture of the game is violence. i mean, and i'm a huge football fan. i love football. i wouldn't let my kid play it, though, because of the culture in the game. jack? >> well, you know, the game is evolving. now you get fined if you hit helmet to helmet. it makes it difficult for a defensive player like myself. i don't know how some of the guys do it. at the same time the league can only go so far. people watch professional football because they want to see gladiators colliding against each other. now i think it's a different approach. players understand what they're getting themselves into. when i played the game, i thought the only time you could get a concussion is if you were

knocked completely out. that's not the case. mild concussions are a huge problem. they're an issue and tbi is something we have to deal with in the future. going forward, players that are entering the game, understand what they're getting into. >> that's an interesting point. john, it may be the culture of the game is changing but is the culture of coaching changing? that's another issue? >> oh, and yes, it is, sue. as jack would tell you, from little league basically pop warner football all the way through college and pro football, they're coaching it differently because they know they're going to take those p s penalties and the safety issues both. like i say i believe college and pro football are doing a lot of things right to address this issue and i think the equipment will evolve to help them as well. >> all right. gentlemen, thank you very much. i know this is a story we're going to follow as it continues to develop. thank you. >> thank you, sue. all right. it is the best retirement investment apparently you cannot have. that's coming up. and the dow and the s&p 500

sitting at record highs. the nasdaq at 13-year highs. is there still value out there. seema mody knows. >> there is it if you know where to look. hunting for the best cheap stocks for you after this quick break. "power lunch" is back in a flash. [ male announcer ] legalzoom has helped start over 1 million businesses. if you have a business idea,

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missesing sales estimates but wall street doesn't care. earnings at sherwin williams rising 12% beating top and bottom line estimates. however, the paint company is cutting its full year outlook nevertheless, the stock is up almost 3.70% in today's trading session. ty? >> the markets, of course, have been on a tear ver actually all year long -- virtually all year long. the s&p sitting at or near the nasdaq 13-year high, very close to 4,000. it's getting tougher and tougher, of course, to find value in this market. seema mody can, went hunting for deep values. >> we went bottom fishing. that's what we're calling it. we're highlighting a few stocks whose share prices have taken a beating but are still pumping out earnings. first up, joy global. shares down about 9% this year. it's trading at a discount to the s&p. and it has managed to deliver strong profit growth.

it's price to earnings ratio is 8.5 well below the average of the peers in the industrial sector and broke its 200 day moving average which market analyst says is a bullish sign. american eagles the stock down 25% in the last three months due to last quarter's disappointing earnings. add to that a colder and wetter spring, resulted in less demand for its summer wear. that brought the company's valuation down to an attractive level with a price to earnings ratio of 12.8, lower than the average of the retail sector. talk tech. ibm, yes, it's been a couple of tough quarters for the big blue, but it is trading at ten times its forward looking earnings which is lower than some of its peers like microsoft and apple, although it's average revenue growth, much less than some of the sexy new tech names like amazon and facebook. that will be the question for investors who like to play tag. do you stick to the old-school names that yield steady earnings growth or opt for the new age internet names delivering impressive top line numbers. tyler? >> found us nice bargains

selling below the market multile. thank you very much. >> let's check interest rates and take a look at where the ten-year is trading. the ten-year note yield right now is 2.51%. rick santelli take it away. >> you know, it's somewhat surprising, sue, that the weaker data didn't give us more of a downside in yields. it certainly didn't give us a big downside in equities. part of that is, of course, the fed. as you look a five-year going back it it june, it's going to be the first close looks to be under 130. probably since about the 19th of june. that part of the curve continues to be one of the big areas traders are reviewing. but if you move to the ten-year down two basis points on the day, down about five on the week. as we sit could be lowest close since about the third week in august. last chart the dollar index at the lowest levels since the first day of february. think qe and think how the data continues to both move the dollar lower, albeit in a slow fashion. back to you. >> thanks very much, rick.

welcome back. good to see you again. >> thank you. >> gold prices closing right now. sharon epperson tracking the action at the nymex. hi, sharon. >> hi, sue. looking on this friday at a lift in the gold market up about $2 or so above that 1350 level. key psychological level for gold. and gold has managed to eek out a gain for the week as well. in the last week and a half we've seen gold prices up more than $100. so we'll see if this 1350 level will hold in the week ahead. the fed will have a lot to do with that. back to you. >> all right. thank you so much. washington may be heading for another showdown. this time it's a fight involving rand paul. targeting president obama's nominee for fed chief. janet yellen, we're also getting big news on the obama care glitches this hour so you don't want to miss that. you'll remember those mortgage backed securities, right? one of the main financial products blamed for the financial crash. you won't believe what new housing investment wall street is flogging right now. back in two. [ male announcer ] once, there was a man

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welcome back to "power lunch." since the obama adviser

appointed to fix the healthcare.gov have identified the problems and pledging the site will be working by the end of november they've named one of the lead contractors on the sites as the new general contractor to oversee the fix from end to end, replacing the health department managers who had overseen the system integration. subsidiary of united health unit was the one that raised red flags in late september. late november is a critical time for enrollment for those who want to make sure their coverage starts on january 1st. >> thank you very much. new fight, of course, shaping -- when is there never a new shop? when is there not a new fight. big story on cnbc.com. steve liesman has it. >> thanks, tyler. senator rand paul, the kentucky republican, threatening to put the janet yellen nomination for federal reserve chairman on hold and what he wants is he wants consideration of his bill for -- to audit the fed for greater

federal reserve transparency. it's a story we broke in the 10:00 hour and now senator paul out with a statement saying, quote, as part of senate consideration of the janet yellen nomination, to be chair of the federal reserve, i would request a vote on my bipartisan federal reserve transparency act. the american people deserve transparency from the federal reserve and federal government as a whole. the bill which is one that his father introduced as well and did pass the house, calls for the fed to be audited but one sticking point for the federal reserve is it allows auditing of the fed's monetary policy. something that fed officials have opposed and have opposed publicly. a senate democratic aide telling cnbc this morning that this should not be overstated the power of senator paul to single handily put this nomination on hold. senator paul will need 40 other votes to help him sustain this nomination and get his way regarding the consideration of his bill, tyler. >> all right.

steve, thank you very much. talk a little bit more about that, the recent government shutdown, taking a bite out of consumer sentiment, fell to its lowest levels since december of last year. will that slide in sentiment and dismal poll numbers force congress to reach a bipartisan agreement before another debt debacle early next year. we've got josh boek, washington bureau chief at the fiscal times and andy friedman, principal at the washington update. let me get your reaction to the story steve reported. a possible hold on the nomination of janet yellen. is that -- do you see that as likely? >> none of this should be a surprise, right. i mean, when rand paul was asked what fed chairman he would like, he picked high yek. his opposition should not be surprising. the question is whether they get that 40 vote threshold. republicans don't necessarily want to be seen as fighting the first woman chairman of the federal reserve.

>> so andy, let me ask you the same question. i don't know the parliamentary maneuvering that could go on here. he's saying i want a vote on a bill i've submitsed. why don't they give him the vote. the bill will lose. >> they might do that. that's possible. i agree with josh, he's not going to be able to stop this coming to the floor. i think the markets want yellen. i don't think anybody is going to object to that. what he might end up doing is some filibuster like on drones, maybe that's gets by and we go ahead with the vote. >> let's transition to a discussion josh and andy on the next deadlines that come up. what is your view about the likelihood that we are going to some time in january or february, repeat the exercise we just went through, maybe minus some of the discussion of obama care, because obama care seems to be taking care of itself very nicely by the way. >> right. good point. let's take it a step at a time. i think the committee is going to try to come up with a bipartisan solution. a small deal, a deal that tries

to restore faith in government. on balance can they do that? i think it's very hard unless the president says i'll give up any tax increases. they're going to try. if that doesn't happen january 15th congress can shut down the government or accept the next deal on sequestration, the next cuts. i believe they'll accept the sequestration cuts rather than shut down the government. one way or another we get the government open. we have february 7th when the debt ceiling will have to go up some time after that. that's where the real rubber hits the road. i could see later next year another fight over the debt ceiling. i think we're going to keep the government open one way or another but the debt ceiling is an issue. >> all right. josh, i turn to you and ask you the same question, what do you see playing out here over the next couple of months? >> the conference committee that has to figure out the budget has until december 13th. the idea being that then congress can pass appropriations and spending bills to actually meet the budget blueprint. the real problem here is that republicans have no incentive to budge on taxes or for that

matter to back down from the sequestration cuts. they do have an incentive to do is replace the sequestration cuts with different kinds of entitlement reform. but that's not necessarily what democrats want to sign up for. >> in other words, the republicans would say we will yield on sequestration, but maybe not on the overall numbers, so long as it's matched by commensurate cuts in entitlements, am i understanding? >> they want to lock in deficit savings. that's their big priority. and when it comes to the question of another shutdown or a possible default, remember, by the time we get to february, we start to bump into republican and democratic primary season. primary in kentucky is in may. same deal in ohio and pennsylvania. when you get into election season, the election takes precedent and you're most likely going to see some kind of continuing resolution to push this off until after november. >> final thought. >> i agree with that. that we're going to end up with

one way or another funding the government. i think there's a basis for compromise to bring up and to go to a slower rate of growth of consumer -- the consumer price index for social security, close some tax loopholes that both sides have accepted. they could do it but it's going to be hard. we're not going to shut down the government and not going to default on the debt but that will be the next issue later in the year. >> thanks very much. josh, great to see you as well. sue? >> thank you very much, ty. forget mortgage backed securities. that's so 2008. wall street's now rolling out a new housing play and it's raising an awful lot of eyebrows. what are they selling this time around? >> well, there's no official name yet, sue, but we're calling them rental backed securities. will it be deja vu all over again? we'll explain coming up next. a confident retirement. those dreams, there's just no way we're going to let them die. ♪ like they helped millions of others.

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all right. you're looking at the floor of the new york stock exchange where right behind our set at post 9 they are gathering at the

post of nq mobile the chinese mobile security software company labeled a massive fraud by muddy waters research group. the stock has been halted all day long. indications are it will open in the next seven to ten minutes. we don't have a price indication but as soon as we get it we will pass it along to you. the company has hit back releasing details of its bank accounts and threatening legal action against the muddy waters research group. an awful lot of activity at that post. as soon as we get an opening in the stock we'll bring the it to you. is it possible to nearly double the return in your 401(k)? well, it is. but you're unlikely to get it. private equity is outperforming every other asset class in the retirement investment world according to capital council. public pensions are one of the few with enough dollars to invest. the largest public pension fund has $34 billion invested. over the past decade private equity has delivered an

annualized return of 10%. the massachusetts pension fund tops the list. public pensions are upping their stake in the game, of course. good news for public workers certainly, but that leaves a lot of people who don't have the resources to get into private equity out in the cold. ty? >> sue, thanks very much. you've heard of mortgage backed securities, what about rental backed securities. diana olick looking at a new housing product for investors. sounds like deja vu all over again. i guess the lease is the security, really? >> yeah. it does. it is kind of like that. look, it worked like a mortgage backed security only instead of getting your yield from pools of monthly mortgage payments you get it from pools of rental payments from monthly rents on investor owned single-family homes. blackstone the largest player in this game, is set to offer these rental-backed bonds in a $500 million deal as early as next week and potential investors are watching this one very closely.

>> i suspect in a world we live in today where interest rates are suppressed and manipulated very low but by the qe programs, that a new type of asset backed security coming to market that will -- should offer some incremental yield versus other asset backed alternatives is going to be very attractive to investors. >> now this new rental play is attractive but investors will be lee leery. the idea to be paid by the rental stream but they could also get a stake in the homes if they're sold. blackstone through its invitation homes has bought upwards of 40,000 homes for around $7 billion. investors want to know how they're managed, where they're located, their value, the local market dynamics, where home prices are going in those markets. it's a lot to learn here. deutsch bank, jpmorgan and credit suisse on board to start. at least one will be triple a rated. investors we spoke to say they're not relying on the ratings.

geb, they want to know all the details surrounding these properties. so far we don't know where the properties are located. but investors have bought mostly in southern california, arizona, nevada, and more recently in arizona. there's been a lot of controversial around the rental play. reo to rent when investors were putting so much money into the foreclosed homes and rehabbing them as home prices go up the market is really getting, you know, more difficult to play and obviously they're looking to get more cash from wall street to put into the market. so this is going to be interesting to watch going forward. more on-line, of course. realtycheck.cnbc.com. >> thank you so much. appreciate it. we told you nq mobile has been halted all day. we have an indication that they will open between 8.5 and 9.5 on that stock. still waiting for the open, though. amazon shares soaring on the back of its latest earnings. microsoft on the rise as well. it's new economy stocks versus traditional older economy stocks.

is more money and more interest going to companies like the netflix, the amazons and apple than the microsofts, home depots and exxons of the world? we'll talk about that when we come back.

check out shares of amazon and microsoft after their earnings beat. we have significant percentage gains in both today. amazon up 8.5%. microsoft up 6. over this year amazon up 40% microsoft 30%. on fuse of icahn, netflix and apple got us thinking is more money and interest going to the likes of netflix, amazon and apple versus microsoft, home depot and exxon mobil.

bob pisani joins me at the nyse with his perspective. >> i'll tell you why you're right. another way of saying old versus new is what we say in the stock market which is growth versus value. that's what we're talking about. show you a couple things. let me show you how they've been doing in the last three years. longer term time perspective. amazon, net flicks and apple she mentioned sort of the new ones. you notice they've been generally doing better than the bottom three, home depot all right but microsoft and exxon mobil those are considered to be value stocks largely. take a look at the ivw. you can buy growth versus value indexes out there. unof the ones in the s&p. the apple is the largest holding in this large cap growth index. growth companies have strong improvement an earnings in sales. that's what a growth company looks like. look at the ibe, the value index for the s&p 500. two of the biggest holdings are microsoft and exxon the two sue was talking about. values are cheap companies,

cheaper things like low price to book value, low price to sales. in this environment, sue, where growth is hard to examine by, the reason you get outperformance, is investors will pay top dollar for that growth when it's hard to come by. the problem with growth historically is they start overpaying. and the stocks get overbought. and they have to come down again. that's why historically, value over long periods of time outperform growth stocks. it doesn't look that way now. got to look at it a longer period. >> thanks, bob. ty, up to you. >> thank you. 75% tax on athletes. we will tell you about where it is and what they're doing about it. check out this new viral campaign to promote the horror movie "carrie." probably seen it. big hit on the viral area. look at that poor man. the movie was a flop. is social media just a crap shoot when it comes to advertising. ing... transit fares! as in the 37 billion transit fares

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the remake of the horror movie "carrie" making a measly $17 million at the box office on its opening weekend right around halloween time, despite some unique marketing campaigns, the makers of "carrie" set up a video to promote the movie and it got 45 million views. a brooklyn coffee shop gets transformed, actors brought in and watch the reactions and fear that ensues in the unsuspecting victim. >> oh, my god! >> that sucks. >> you know what, just get away from me. >> oh, my god. >> just get away from me.

>> this is repeated over and over and over again. power rundown time. sue is with us, robert frank with us. 45 million youtube clicks. clearly they're all laughing at carrie but maybe that's not the effect the movie marketers -- maybe she should have gone with what does the fox say, i don't know. >> i love the woman who -- >> kids love that song. >> i love the woman freaking out but doing a vine on her phone. she makes sure she gets it on to social media. >> the guy with the hard hat. like they're casting something from -- >> really are. >> come on, man. >> if you ever saw anything like that, i would be out of there in like a millisecond. >> yeah. >> why would anybody stay around. >> the bigger point i think, tyler, you asked the question why didn't this help the movie, maybe it did a little bit. but there was nothing to tie this to the movie, watching regular people get scared. >> number two, another embarrassing moment for the

national security agency, aboard a train yesterday former nasdaq director michael hayden was chatting on the phone and eavesdropper went wild tweeting. here's one of those tweets on a acela former nasdaq boss michael hayden bashing the administration. should these high level security people have known better? you know, sue, at the end mr. hayden sat down with the tweeter and took a picture with him. it doesn't sound like he was particularly alarmed by what he had said. >> i just find it amazing. first of all that picture is amazing he would do that. >> looks like he's about to take him to the back of the train. >> i just am amazed at what people will say in a public setting. and having done the acela a number of times, it's a public setting. you don't have conversations like that over a cell phone in a public setting. >> i have two words for mr. hayden, quiet car. >> yeah. >> and also spy chief. spy chief should not be doing that stuff. >> are you talking to me, china

some actor robert de niro signing a deal to develop an 850,000 square foot retail hotel and entertainment destination in shanghai's historic bund district. the project expected to open in 2016. robert, robert de niro has done well with real estate development in new york. >> but this could be the number one sign there's a property bubble in china, that there's den mere ro land now in shanghai. when de niro is developing large-scale properties you know there's a bubble in china. >> a raging bull in the real estate market in china. >> i would agree with it, especially given its in the bunds district the most expensive part of shanghai. >> french soccer club saying they will not play matches over the last weekend of november to protest the government's plan to implement a temporary 75% tax law on high earners. employees will have to pay on incomes above a million dollars per year. french president francois hollande says he's sticking with

the plan. soccer players be dammed, sue. >> i just think it's incredibly punitive and given the popularity of soccer over there, you know these players are making well north of a million u.s. dollars a year and it's going to be interesting to see what kind of chilling effect that has. >> here's what's hilarious about this. not the players that will pay it. it's actually the taxes on the teams. so the team owners, the team owners here are getting the players to strike on their behalf. they are the real sports team owners, not the u.s. guys. i mean they've got it right. >> leave it there. thanks very much. three of the biggest winners in today's trading and the one big loser that just began trading. we'll have that for you next.

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welcome back to "power lunch." check out shares of nq mobile. this is the chinese mobile internet stock that fell 47% yesterday on the heels of a strong sell rating by short seller carson block and muddy waters research. the stock is up and jumping around today. analysts at topeka have maintained their buy rating on this stock. the analysts there frederick ziegele saying they conducted a conference call, the management of nq with investors this morning and nq did a very

admirable job given the analyst concerns. >> as a matter of fact, they have vowed to fight back against the allegation by muddy waters they were a quote/unquote fraud. keep in mind muddy waters is an aggressive short sellings house. nq mobile is behind me right there and trading it. that does it for us on "power lunch." ty. >> have a great weekend, everybody. "street signs" begins right now. very special show ahead. ♪ come sail away come sail away come sail away with me ♪ >> the oil and gas boom in north dakota and texas not just benefiting the midwest. it's also adding jobs right here in philadelphia. and you will not believe where we are. we're in the philadelphia shipyard and we are right now on top of goliath. we are more than 200 feet, hello airplane, 200 feet in the air, get a shot of this. that is the liberty bay. we are high up here, folks. the reason that we're showing you this is that ship and t