tv Power Lunch CNBC November 5, 2013 1:00pm-2:01pm EST
1:00 pm
groupon. >> overwhelmingly in a blowout. >> give us a final trade, dan. >> you know cisco into next week's report play it long into it. not there though. >> ecl i'm buying it going higher. >> steve weiss. >> stay short the bond market tbf long. >> joe. >> starbucks wants to go back up again. >> have a great day. "power" starts now. >> "halftime" is over and "power lunch" and the second half of the trading day starts right now. >> golly, that whistle was loud in my ear. going to turn it down a little bit. move over pimco total return, there is a new king in the world of mutual funds and this one may say a lot about how bullish america is on the stock market. we'll talk about that. hash "time" magazine probletag twitter ipo more reasons for anyone thinking of getting in to think twice. and beating the bully at work, maybe you've heard this story it stems from a series of incidents involving the miami dolphins. the lineman is not on the field
1:01 pm
and now may be out of a job because of bullying allegations. how do you manage a situation when it gets out of hand at work? first, though, let's go to sue at the new york stock exchange. big turnaround today, sue. >> absolutely. a huge turnaround. the day didn't start off well for the bulls. we were down triple digits. we have as you can see from the chart had quite a turnaround, now down 6 points on the trading session after a loss of 117 earlier on. one reason could be the oil market. take a look at brent crude, down 2.5%. just in the past week. gasoline prices are down. the thought is that is going to help the consumer. let's check the ten-year, what a lot of people are watching, we're at $2.6%. ash cashin' saying if we start to see that creep closer to 2.7% we might see fresh selling come into the market. stocks remain near record highs a new king in the mutual fund industry. pimco's bond fund no longer
1:02 pm
number one. dominic chu is back at hq with that. hi. >> hey, sue. it's been years in the making but bank art has unseated pimco at the top of the mutual fund heap. not just about vanguard versus pimco but stocks versus bonds. the vanguard index fund had more assets than the previous title holder, of course, pimco's total return bond fund. now vanguard's fund invests in stocks across all market caps and styles from value to growth. it's got over 3600 individual stocks in the portfolio. now the most heavily weighted sectors in the fund are technology, financials and industrials. that mirrors the way the s&p 500 is set up, although the fund favors industrials slightly more than the overall stock market. and as for the biggest holdings, perhaps no surprise here. the biggest holdings so far in the fund according to vanguard is apple, of course. that's followed by exxon mobil, then microsoft, johnson &
1:03 pm
johnson, and then general electric. now the top ten holdings of the fund make up 14% of the overall weighting. the stock market is near record highs and there appears to be more risk appetite returning to the markets, but that begs the question, sue, is that a possible contrarian indicator or perhaps a sign at least for a near term top for stocks. >> we will talk about that right now. bob and kenny are here with me and kenny, you know, is this the rotation that we've been waiting to see out of bonds into stocks? >> it certainly feels like it. look, the vanguard fund is up some 37% year to date and the pimco not so much. a negative number in front of it. considering when the broader market is up 24%, it's been a spectacular year it's almost hard to understand, right. so therefore, you've got these investors we've been talking about, recovering economy, talking about 2014, talking about getting back into equities and it's a perfect sign. >> what's amazing to me, why the
1:04 pm
rotation hasn't started earlier. i think it's been very sticky. i think the opposite is going on. why don't we see the great rotation. we're seeing modest outflows from bond funds but it's been modest. there is no avalanche. a lot of that money goes into -- >> which a lot worry -- >> sits? money funds before stocks. we've had inflows in stocks. given the outflows we had in the prior four years i don't think it's an avalanche. i would like a bigger rotation. who believes that treasures have a lot of room to move? look what happened in may and june. >> right. >> we dropped 4% and a lot of bond funds yielding 1% a year. who doesn't notice that? >> i think there's a sense of nervousness. the market has had this great move this year and people are saying, we're up 24%. what's going to happen? come in, go out. they're cautious, right? that's why they go from bonds to money market until they get the guts to say here i come. >> there are also a lot of people out there that i talked to just, you know, when i come down here to the stock exchange when we talk outside, they
1:05 pm
really feel as though the market is being supported primarily by the fed. >> right. >> and if we're at the latter end of that support. >> right. >> what's the point in getting in now? if you've missed that much of the move wait until the fed starts to taper. >> that's the argument. but the fed will tell you they're not going to pull away until they're sure the economy can handle it on its own so no one should worry. that's not what we're seeing. >> it's not what we're seeing. >> we are not seeing anybody who hangs out in bond funds right now, there is so little upside and so much downside, that people really need to look at it carefully and particularly older people who are 70% in bonds, 30% stock and 60, you're going to live another 25 years, that is not a good investment ideology for the next 25 years. 70% bonds, and 30% stocks. >> what he said. thank you very much. ty, up to you. >> all right. folks, senior economic reporter st. louis with boston's it fed president this morning and he
1:06 pm
says that rosengren still wants to see a jump in the job market but that he is optimistic about 2014. >> i expectation is the beginning next year we'll see better economic data, we'll start seeing growth closer to 3%. part of that is on the consumer side, the stock market's high, housing prices have continued to go up, employing more people so that should result in a better situation for consumption and also some of the head winds from fiscal policy, some of the head winds from europe and some of the lingering effects of the financial crisis should start abating. >> all right. cnbc.com's jeff cox also talking about fed matters, jobs and a possible target change. jed you were saying -- >> relax. >> i haven't done this very often, you know, sometimes i get a little carried away. >> i got you. >> so the fed has said they won't start ratcheting up interest rates until unemployment drops to 6.5%. >> right.
1:07 pm
>> but you're reporting is indicating what? >> well, if this was a football field we'd call it moving the goal post. what i'm seeing, there are two papers that were filed this week that are going to be presented at imf conference that suggest the fed will not move now until the rate drops to 6%, maybe even 5.5%, which suggests now that we won't see rate increases out maybe until 2017. so you ask yourself, the market's been so dependent on the low interest rates so would this be normally bullish? you would think under normal circumstances to hear the fed is going to stay put the market would like that. however, i think the fed starts to run into maybe a little credibility issue here, and you wonder, is qe ever going to end? i mean is this really qe? >> a lot are skeptical whether we're going to live with quantitative easing and that monetary stimulus for decades. whose papers are these? fed economists? >> these are fed economists, basically what they did is applied some models to see what
1:08 pm
works best and they found really that there's not a lot of advantage at this point, seeing where inflation is so low. >> very low inflation. >> really no advantage here to being too aggressive as far as ragz interest rates go. you risk all kind of things but what these papers say from a half dozen fed economists collaborating here to come up and say that we should -- that there's really no advantage to the 6.5% target. john from goldman sachs analyzed these papers and believes that this will be adopted as official fed policy, probably not until the spring but it's coming. >> it will be very interesting next week, we get the first of the yellen hearings or maybe i guess it really is the yellen hearing. interesting to hear what she says, how she is questioned on this very point because she, in her statement when she was nominated, as i heard it, i heard that her principle focus was on unemployment and keeping
1:09 pm
employment up. >> yeah. and heres's the thing about the unemployment rate. it's become such an -- fairly unreliable indicator, at least as far as the headline rate goes, because we're at a 35-year low as far as labor force participation rate goes. as that rate is falling it's not really providing a good indicator without getting too jargony, they talk about structural versus cyclical unemployment and the level of structural unemployment, the kind of jobs that just don't come and go with ebb and flow of the economy might be higher than we think it is and the unemployment -- the depth of the unemployment problem is not reflect in the drop in the unemployment. >> thank you for your reporting. sue, back down to you. >> we'll talk a little bit about that and what jeff mentioned a second ago, the structural issues with employment something i want to talk to you about. there are economists who feel that technology has changed the way that jobs are done in such a dramatic way some of those jobs are never coming back.
1:10 pm
therefore, the unemployment rate is basically a false indicator and that we're not going to be able to create the kinds of jobs that would bring that unemployment rate down. >> listen, the financial services industry is a prime example of what technology has done to jobs, job losses, job creation or lack of job creation, so i think that's a solid argument. >> i was with one of the ceos of one of the s&p 500 big companies just a few days ago and said, how is your productivity growth this year. he said about 2%. i said that's good. are you going to hire anymore? no. i said why aren't you hiring any more? 2% productivity and don't have to hire. that's good. they're getting productivity growth and because of technology they're using, not a tech company, it's an old manufacturing company, they can get it now and that's a major problem. >> the economy is not what it used to be. >> and that's right. so therefore we're stuck in this quandary because they want it -- they have the target for
1:11 pm
unemployment or employment however you look at it, right, and not the able to hit it because technology has so changed the pace of what the world looks like. >> it's going to be very interesting to see what happens when miss yellen takes over. thanks, guys, very much. dom, back to you for a market flash. >> sue, how about two drugmakers heading in opposite directions. look at immuno again losing ground after the biotech stopped a trial of an experimental lung cancer drug because it wasn't working and they said there was a possibility that patients treated with the drug were more likely to suffer a possible infection. on the flip side karix moving higher after the pharmaceutical company said its kidney drug met some of the main goals of a mid stage study in patients with chronic kidney disease who were not on dialysis. it's a mouthful but a positive sign for keryx so that stock heading up in today's market. >> thank you very much. big news on home ownership in the usa and specifically on who's buying and who's pulling back a little bit.
1:12 pm
diana olick from d.c. >> rising home prices, tight credit and waning consumer confidence are not helping household formation or home ownership. home ownership didn't budge in the third quarter of this year. it's down slightly from a year ago. now it's 65.1%. seasonally adjusted. it's down from a lie of 69% during the housing boom. and if you take out the millions of homes that have either delinquent mortgages or are in the foreclosure process your home ownership rate is closer to 61%. but, more dramatic than home ownership is overall household formation. that is, either people moving into rentals or buying homes that is creating a new household. in q3 it was 380,000 more than a year ago. but compare that to 2006 when 1.2 million new households were formed and 2002 when 1.8 million were formed, the average is around 1.1 million annually. younger americans are just not moving out of their parents'
1:13 pm
homes, not moving out from their roomma roommates. tight credit is the answer, especially for single and first-time buyers. single buyers fell from 32% of the market in 2010 to just 25% today according to a new report from the realtors. first time buyers made up 28% of purchases in september. that share historically should be around 40%. meanwhile, home prices are rising still, up 12% in september from a year ago according to core logic. that's slightly less than the 12.4% annual gain in august. some are saying that price gains are easing. we're seeing pending home sales easing but i spoke to the ceo of red fin who thought that for 2013, the sales were pretty much over but then sea his he saw a huge jump in buyer traffic in the last week as mortgage rates headed ever so slightly lower. so sue, this recovery is getting curiouser and curiouser. >> it sure is, diana. thank you very much. we've been talking fed and
1:14 pm
this video popped into the newsroom. senator john tester meeting with janet yellen on the hill. we're going to be watching all of these meetings as we run up to the vote on miss yellen's candidacy as fed chief which will take place next week. a number of the key senators will be vetting her in terms of what her interests are in terms of interest rates and the like and we are going to keep track of it for you. there's hash tag trouble before twitter goes public and you consider putting money in it, see kayla tausche's report. kayla? >> you've heard it for weeks on cnbc, there's a lot of potential upside for twitter's ipo. there's reasons to be concerned. high risk, high reward. that story straight ahead. >> and the video of the day, maybe the month, maybe the year, two sky diving planes colliding. everyone on board has to think fast, really fast. we'll show you more of this amazing video and hear from the people who lived to tell about it, that's coming up. wow.
1:15 pm
1:17 pm
welcome back to "power lunch." monster beverage is at session highs. wall street is optimistic about its earnings slatsds to come out on thursday. analysts are expecting a gain of 57 cents a share compared to 47 cents a year ago. sales expected to come in at $602 million. these energy drinks have been in the spotlight a lot. we'll see if these data points
1:18 pm
help out their cause. back to you. >> thank you very much. orbitz taking a hit in today's trading session. the on-line travel agency posting weaker than expected third quarter earnings due to rising costs and paired a prior revenue outlook for the year that's what really hit the stock, but nonetheless the stock is up 180% for the year. ty? >> i'd take that if i owned it. that's pretty good, 180%. two days until twitter goes public. people are all atwitter. it is in its ipo filing the social media giant laying out more than 30 pages of risks the business faces. kayla tausche has gone through it page by page. >> tyler, we should be enunci e enunciating our ts that well. i haven't gotten there. twitter oversubscribed, raising the ipo price and analysts say it will double but skeptics pointed to the 32 pages of risk. some common risks back to dotcom days like growth. twitter needs to make more money
1:19 pm
off international users but that's expensive because that comes this warning we may never be profitable. then the competitive risks, competition for ad dollars and users. namely against insti gram. the legal risks, lawsuits over privacy, consumer data and patents and gets sued when users tweet out copyrighted content. bad internet service could kick off users if not ranked high enough on apple's app store people won't download it and might interpret its metrics as eyeballs. companies have been creative and conservative and some of their risks in the ipo filings have become folklore. 1999 martha stewart living said damage to martha's reputation would hurt the stock. five years later convicted to lying to investigators about a stock sale. shares down 92% since the ipo. goldman sachs in 2010 update its filings to say bad press could hurt morale and performance at the bank after the financial crisis. pandora said if users choose not to be tracked on the internet the web radio advertising would
1:20 pm
suffer. bear stearns assets pulled its ipo among the risks it didn't negotiate the loans it bought from the new defunct bear. this one is my favorite. the world wrestling federation in 1997 said one of its risks may not have enough insurance for the injuries. >> wow. >> and some of the graver outcomes of some of the matches. companies like to err on the safe side, but something you have to remember when thinking about jumping in. >> you had me at we may not ever be profitable. >> that was the one. >> and they're not. >> big revenue but have had a hard time making a profit. >> underwriters pointing 2015. >> they price tomorrow night. first day of trading thursday. >> i'm hearing from my sources it could be above the raised price range. a lot of high demand from wall street. retail will likely have to get in after it opens for trading. >> thanks very much. sue, down to you. >> we're going to have a bird's eyeview because twitter will trade right behind us here on post nine. election day in parts of the country. political parties facing their
1:21 pm
biggest tests since the government shutdown. an awful lot at stake. check out this video, these are two planes full of skydivers they crashed into each other. 12,000 feet in the air. unbelievably and fortunately everyone on board lived. we will hear from some very lucky survivors straight ahead on "power lunch." honestly, i'm a little old fashioned. i love chalk and erasers. but change is coming. all my students have the brand new surface.
1:22 pm
it has the new windows and comes with office, has a real keyboard, so they can do real work. they can use bing smartsearch to find anything in the world... or last night's assignment. and the battery lasts and lasts, so after school they can skype, play games, and my favorite...do homework. change is looking pretty good after all. ♪
1:24 pm
welcome back to "power lunch." for genron moving higher as adjusted third-quarter profits top wall street estimates as sales of its eye disease drug continue to climb. as a result the company raid its sales guidance for the full year. the company's ceo will be a guest on "mad money" tonight at 6:00 p.m. eastern and 11:00 p.m. eastern here on cnbc. you want to tune in for that. back over to you. >> thank you very much. democrats and republicans now facing the first big contests since the government shutdown as voters head to the polls today in several states. key gubernatorial races include the ones in new jersey and virginia. so will today's results set the scene for future elections and what the impact will be on business?
1:25 pm
we have ari melbur, co-host of msnbc's "the cycle as and a cnbc contributor and friend ben white. welcome to both of you. the easy one, the new jersey gubernatorial race. i guess what everybody is looking toward here is how big a victory chris christie is going to have and what it does to tee up his presidential aspirations. >> that's exactly right, tyler. christy is expected to win, hasn't had serious opposition, in part because of his strength. he largely cleared the field of top democrats who didn't want to take him on and he, of course, dispatched jon corzine years ago. if he builds a coalition here that has higher african-american, latino support than we typically see for republicans, say up over 15%, and includes self-identified independents that contributes to his argument that he can grow the map and build a larger coalition for republicans than many of their most famous figures right now. >> you know, ben, i was watching
1:26 pm
the nfl game last night, and there is shaquille o'neal doing an ad for chris christie. >> absolutely. ari is right in he's attempting to grow that coalition, show he can win in states fairly blue like new jersey. the question for chris christie will be, can he survive a republican nominating process in 2016? is he too moderate on social issues, too moderate on fiscal issues to get through that primary. >> when we think back to 2009, the first election after obviously the 2008 election, the first election during obama's term, it was new jersey and virginia that everybody looked at and said, two republicans won, christie in a blue state, let's turn to virginia now, that is a close contest, cuccinelli and terry mcauliffe the former fund-raiser democratic chairman und the clintons. >> typically republicans will hold virginia in an election where democrats are in the white house. it would be significant if that's not the case.
1:27 pm
i think mcauliffe is favored like throw beat ken cuccinelli. does he have a big win? if he does everyone will say tea party is in retreat, all the government shutdown played terribly for republicans. rising tide of the republican party is more of this expand the map christie model versus the cuccinelli scorch the earth and shut down the government. >> you have two things cutting in this race, number one is the fact that there are a lot of federal workers in the, obviously, d.c. suburbs, most especially, but also down in the norfolk area, and that -- they may -- we'll see how angry they were over the government shutdown. i don't know why they would be so angry. they got a two-week paid vacation. then there's also the very proximate business of the health care websites i believe are likely to hurt the democratic side in this case. >> well, that's the question, right. i think that what you had there, tyler, was a big shakeout from not only the shutdown but a lot of the economic uncertainty that frustrated people in that area
1:28 pm
with the republicans. keep in mind the republican governor there won by 58% last time and now we're talking about republicans being the underdog in this race. i think for the market perspective the other reason why virginia really matters is, this is a state that has been a bellwether, 53% for obama last cycle, that perfectly matched the national lk tore rate, even if people are frustrated with aspects of obama care, the question here is can that help republicans win? if it doesn't help them win in a state as i mentioned has gone republican before and reflects the national electorate that may show the limits of only running against it. >> why is cuccinelli polling so much more weakly than mcdonald did for years ago? >> i think he's taken a harder right turn as we've seen many republicans. that works in house races. we know that. we're going to see a lot of house republicans get reelected no matter what. whether it works at a state level is going to be determined here and that goes i think to the point you raised earlier, does the tea party look like it's ascendent or running out of
1:29 pm
gas? if it's running out of gas at a minimum the markets will see that as a little more certainty and less hopefully less economic brinkmanship. >> we have to leave it there. virginia the ultimate purple state, little red, little blue. thanks. appreciate it very much. voters deciding on a slew of ballot issues today. colorado residents asked to approve a 25% tax on recreational marijuana to fund school construction. mean while, the mostly mormon city of hyde park, utah, considering the legalization of beer sales. and in massachusetts and new york, voters will decide on the development of new casinos. washington state and new jersey residents are going to be asked to raise the minimum wage ins those states. so lots of ballot initiatives to consider. >> absolutely, ty. it's going to be interesting to gauge the turnout on those -- some of those ballot questions as well. gold prices closing right now. it's been a little bit of a downside session. a lot of people are more focused on the oil market.
1:30 pm
sharon epperson tracking the action at the nymex. >> hey, there's a lot of focus on the oil market but traders are watching gold at the close and we are dipping a bit here as we go into the close and slightly lower by about $6 or so. the fact that u.s. dollar has gained some ground is one of the factors that's contributing to the slide in gold. some are saying they're looking at some of the positive economic data that we've gotten out as well as the retreat in the euro that's helped to lift the dollar. when you look at gold versus silver, we have seen, of course, them trending lower in light of where we've seen the dollar and trending lower than some of the platinum group metals as well performing very well with some supply concerns in south africa. back to you. >> sharon, thank you very much. pandora moving higher in today's trading session. the internet radio company said its share of the u.s. listening market rose in october. the stock is up almost 7%. delphi automotive moving lower after the auto parts maker narrowed its full year outlook below the street expectations, it's down better than 5%.
1:31 pm
red robin gaining some ground after the casual dining chain said its third quarter net income jumped 34%. more customers came through the door and when they came through they spent more. it easily topped wall street's views and the stock is up just under 9%. tesla's gearing up to report after the bell. the stock has been under pressure ahead of its results. but it's up more than 400% this year. three things you need to watch in tesla's results this afternoon. plus, forget supersonic. we're talking hypersonic. dominic chu is tracking inside lockheed's new spy plane for us. >> that's right, sue. it's "power lunch" and how is this for power, lockheed wants to unveil a plane that flies at six times the speed of sound, that's coming up next here on "power lunch." stay right here on cnbc. peace of mind is important when you're running a successful business. so we provide it services you can rely on. with centurylink as your trusted it partner,
1:32 pm
you'll experience reliable uptime for the network and services you depend on. multi-layered security solutions keep your information safe, and secure. and responsive dedicated support meets your needs, and eases your mind. centurylink. your link to what's next. americans take care of business. they always have. they always will. that's why you take charge of your future. your retirement. ♪
1:33 pm
1:35 pm
the beautiful city of chicago. look at an intraday chart of five-year note yields see they're up three, briefly up five, but the most notable feature is where they are now hovering at 138. remember some of my exchanges this is an important 38% retracement of the big move that started out in may, reached in the ten-year. look at that ten-year it was up 7, it's now up five bases points. both at the highest level, yields you see on the chart starting in mid-october. keep in mind, just one week ago the difference between our tens and boon's was 75 basis points. it is now 90 basis points. major widening last chart, if you have a good service sector pmi like the uk did here's what your currency does. pound versus dollar really doing much better today. sue, back to you. >> yeah. it sure is, rick. thank you very much. appreciate it. you're up to date on the bond front. let's go uptown where the nasdaq is and that's also where
1:36 pm
we find seema moody, following the big movers there. >> good afternoon. if you were to look at the nasdaq you would think it's just a sleepy day on wall street. we're up about 7 points on the day. but not necessarily. if you take a step closer and look at some of the subsectors that make up the nasdaq you'll see we do have some big movers. one example, in the biotech space, take a look at endo health solutions up 28%. news that it's acquiring a canadian specialty drugmaker. analysts bullish on this acquisition on the structure of the steel as well as the increased international presence that endo would be able to get with this acquisition. regenron pharmaceuticals strong beat by 35 cents. something you don't see that often. within the tech space it's cognizant oracle, cisco and microsoft, these stocks leading the nasdaq 100 higher. sue, tyler, back to you. >> all right. seema, thank you very much. lockheed martin taking the global spy games to a whole new level. the defense contractor unveiling plans for a new spy plane that can travel at six times the
1:37 pm
speed of sound. lockheed shares with the defense sector have been on fire. the stock is up almost 50% so far this year. dominic chu here with incredible pictures of the new plane. they tell me i'm now to leave you. >> oh. >> that's okay. >> here's what we'll do. we'll not leave the viewers. here's what we'll tell you here. first a supersonic idea and then hypersonic. imagine a plane that can fly so fast it can reach any target on earth within about an hour or so. that's what the folks at lockheed martin are working on. they unveiled the first peek at this new concept aircraft which they've dubbed the sr-72 which could be operational by the year 2030. answering nears and researchers envision an unmanned aircraft, uav, that could fly at speeds up to mac 6, like you said, six times the speed of sound. now the highly secretive skunk works unit at lockheed martin is behind this cutting-edge development. that team has been around for 70
1:38 pm
years working on net generation plane technology. they're the ones behind the predecessor sr-71 blackburn, one of the most feared planes in aviation history and still the fastest plane to ever fly. the planes are no longer in service. the one can be seen on board the intrepid aircraft museum in new york city. lockheed is the world's biggest defense contractor and shares have gained 47% this year. they're sitting near record highs, but still, a very interesting concept, sue, in terms of aircraft, one that can fly really, really fast. back over to you. >> that is so incredibly cool. love that. dom, thank you so much. stock is up 20% just in the past quarter. up more than 400% this year. tesla gearing up to report earnings just a few hours from now. phil lebeau is behind the wheel in chicago for us. hey, phil. >> sue, you know with a stock like tesla and company like tesla a lot of people wait lot of crazy ideas about what's important behind the conference call. we've got the three numbers that
1:39 pm
you need to focus on and why they are the key to that conference call coming up on "power lunch." [ imitating car engine ] that's mine. ♪ that's mine. that's mine. ♪ come on, kyle. ♪ [ horn honks ] that's mine...kyle. [ male announcer ] revenge is best served with 272 horses. get the best offers of the season now.
1:40 pm
lease this 2014 ats for around $299 a month with premium care maintenance included. ♪ [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ]
1:41 pm
[ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade. the shares have been under a bit of pressure ahead of the latest numbers. we'll come out later today. the stock is having an incredible year nonetheless. up more than 410%. our phil lebeau is here with three things investors need to know ahead of those tesla numbers. hi, phil. >> yeah. tyler, it's going to be a lot of people chattering about these earnings but at the end of the day these are the three numbers you need to pay attention to when they report after the bell. let's start first off with the most important which is model s deliveries in the third quarter. most on wall street expected deliveries to come in around 5700. if it's well above that, say it's well above 6100 people will
1:42 pm
go crazy and think this is off to the races. well below 5700 you might have a few more questions coming up. next assembly, what's going on with the gross margins for tesla if most people the q3 margins in the range of 16 to 20%. that's the magic area. finally is tesla going to raise it's 2013 production target? right now it's at 21,000 model s vehicles but keep in mind they've been building at least 500 a week, since early summer, so they could be raising that production target closer to maybe 23 or 24,000. those are the things people will be focused on in addition to q3 earning per share estimate of 11 cents per year, revenue estimate $355 million. we're going to have the numbers for you right after the close of business today. tyler, back to you. >> all right. >> i'll take it over, phil. thanks. sorry, ty. >> that's okay. >> with the marks hitting new highs, you might be getting ready to play retirement saves
1:43 pm
catch-up, maxing out. last year participants ramped up contributions to nearly 7% of their pay. if you want to max out, though, next year, just keep in mind that the limits will remain unchanged. after two years of raises, the irs has decided to keep the 401(k) contribution limit at $17,500 and ira contributions remain unchanged at $5500, though more individuals will qualify for full tax deductions. the unchanged limits due to a minimal increase in the consumer price index which is used to determine those caps. did burger king just cross a line in the burger battles? that's coming up next. and the video you have to see to believe. those two skydiving planes crashing. everybody on board had to think fast at 12,000 feet. hear from them coming up next on power.
1:44 pm
welcome back to "power lunch." apple opening a manufacturing facility in arizona to make sapphire materials for its electronic products and it's affecting several companies. partnering with mineral crystal specialist gt advanced technologies sending that stock shooting higher. sapphires rubicon technology up on speculation it could benefit
1:45 pm
from higher demand in the business and corning is lower as analysts wonder about the future of its famous gorilla glass product the scratch resistant sapphire material makes a potential choice to cover an entire smartphone or tablet screen which is the current sweet spot for that gorilla glass product. back over to you. >> all right. thank you very much. power rundown time. john fortt and kayla tausche. let's talk about the youtube music awards. the show was only viewed by 220,000 viewers at its peak. is this a sign that social media may be overpromising and underdelivering? >> i think it's a sign that youtube as an umbrella brand deserves a little bit more promotion from its parent google. these artists have been pumping up by their own agencies for years and years. they've had time to build that following not to mention 6:00 p.m. webcast. the millennials were just waking up. >> what does the fox say? >> come on, can't they get more of the normal. >> they should be able to.
1:46 pm
you hear the huge numbers out of google's earnings calls about how much traffic youtube gets. you know they want to pump this up as an ad platform. numbers that small don't look good. >> i love the "snl" skit on what does the fox say. what does your girlfriend say. >> i've been avoiding that whole -- >> it was very funny. awesome. black friday is it irrelevant? retail analysts reaching that conclusion increasingly between cyber monday and more and more retail chains opening on thanksgiving. the hype and excitement that typically ait tends black friday is quickly fading. i now think of it really as the weekend that counts, not black friday itself so much. >> yeah. it's interesting, adobe came out with data today about this. it turns out people are shopping on-line a lot more on thanksgiving. it's expected to be more than $1 billion this year for the first time. people shopping on-line more in the beginning of the week versus the end of the week. the whole season is getting extended. the challenge this year is going to be six days shorter than last year. >> yes. >> so there's going to be a big
1:47 pm
scramble for discounting and all that too. >> can you imagine going shopping on thanksgiving day? >> no, i can't and the christmas creep starts earlier every year and start seeing rollouts and promotions in october and september and the countdown begins as early as july. retailers can do themselves one favor, don't open on thanksgiving. that is a pr disaster. have as many deals on-line as you want, people will be eating their turkey, surfing their ipad and buy stuff on-line but i just don't think they can -- >> rumbled through here i'm not sure what it was. i want to eat, drink, sleep, watch football that day. >> you have your tablet and phone and sit back and order a few things. >> let's talk -- >> you wouldn't want to have to go to work at 8:00 p.m. on thanksgiving. >> i wouldn't. a lot of people in our business do. a lot of people work but that's the way et goes. that's what we're here, 24/7. burg he king unveiling a newburgher. we need a newburgher. no doubt about it. the big king and looks like mcdonald's big mac. so there -- do we need another
1:48 pm
burger like this? >> the big mac is an institution. i wasn't sure the burger with the middle bun was still a thing. >> you need more carbs, right. >> i don't know why that's -- burger king was supposed to get healthier with the fries that had less carbs, why this, why not? this popular? >> must be a sign the market is doing well. the unhealthy stuff comes out when people are starting to feel better. seems like when times are tough you get the mclettuce and the -- >> right. >> i think it's a sign that mayor bloomberg is leaving office, they're able to do this. >> extra bun. >> throw in the extra bun. one more here. look at this amazing footage, two skydiving planes crashing into each other at 12,000 piece feat. all the passengers on board professional sky divers and jump to safety and all survived. the survivors recounted their incredible escape on the "today" show this morning. just stunning. >>. >> it was so slow at the time.
1:49 pm
it seemed like it's getting closer, closer and it clicked like this is too close. >> i had no time to react. all i heard was trish scream horrifically and i just had enough time to look over my shoulder and see white which wasn't right and. >> one of the planes was able to land. the other with was abandoned and crashed in flames. >> is there anything we don't capture on camera nowadays with go pros plus the smartphone cameras? it's kind of reassuring from a security perspective and it's great entertainment, great footage but -- >> if there is one activity that's pretty much always recorded you go skydiving one thing you do forever. how miraculous is it that the two planes that collided both happened to be carrying skydivers who all had their parachutes who could all jump. >> including the pilot of the plane that had to be abandoned. >> i know what i'm putting in my carry-on that time. >> scratch that item off my bucket list. never done it.
1:50 pm
wanted to. no longer. >> all right. folks, thanks very much. good to see you both. sue, down to you. >> ty, thanks. it's a big water cooler story today. they're talking about it all over down here on the floor. the miami dolphins under fire. older ball players are accused of bullying rookies. but bullying isn't just in the locker room and in school. it's in the work place too. so how do you fight back if you're a victim or snuff it out if you're the manager? that's coming up next.
1:53 pm
a star lineman for the miami dolphins suspended for bullying teammate jonathan martin. he sent angry text messages and accused of making life unbearable for the younger martin. the dolphins and the nfl are investigating. of course, most of us who are watching this don't play in the nfl. that's obvious. but this can be an issue for anyone at work. jay whitehead is ceo of charity partners and founder of several hr companies. welcome, jay. nice to have you here. >> thanks so much. >> you liken bullying to basically say equivalent to the new sexual harassment. >> bullying is the new sexual harassment and as a result, your only option as an employer is zero tolerance. why is that? because the stakes for employers are as high as for sexual has rasment. the downstroke, the verdict totals for a sexual harassment trial that goes to a jury, well over a million bucks.
1:54 pm
so think of that employers when you think of bullying. the third point is you have to as an employer keep your channels open. you have to keep the channels open, keep your employees able to report these things to you. obviously the dolphins had a channel clog with this jonathan martin situation and the fourth point is, that like cancer, bullying is best prevented and it's not well cured. so prevention is your first option. prevention for bullying. >> is putting out a zero tolerance policy enough prevention? i mean, i would assume that you need to follow up behind that policy? what else -- what concrete things can employers or managers do other than put out the zero tolerance policy? how do you keep those lines of communication open? >> well, in this case, you've got a team that clicks off into little squads, the offensive line is one squad, receivers are
1:55 pm
one squad. if you allow your teams to click off like that you potentially cut your channels of communication. so keep the channels of communication between your teams and management open all the time. that's the best thing you can do to prevent this channel clog, this hiving off of a potential bullying situation that ob obviously escalated and when it escalates to this point you're dead, you have cancer. >> what about the ability to report something anonymously? depending on how large or small your work force is or how tied in it is together, people may feel intimidated? they may not feel as though they can report something either that's happening to themselves or that they see happening to a co-worker? >> good point. this may be one of the unsung benefits of the sarbanes-oxley era. most companies of any size now have a whistleblower line, an 800 line, a confidential line, you can talk about these things
1:56 pm
with and not have -- not fear retribution. one of the unexpected benefits of sarbanes-oxley is this whistleblower regulation whistleblower capability that now most companies have. even if you're a small company you have it through your payroll provider, adp or paychecks or trinet or one of the big ones. they have whistleblower capabilities. you can report bullying in the work place. go to any junior high school, any high school in this country, bullying is topic one. >> yes, it is. >> employers, same thing. bullying topic one and you really have to make this a priority. just like in the '90s we made sexual harassment a priority. absolutely zero tolerance. >> jay, thank you very much. pleasure to speak with you. >> thank you. >> three big stock winners in today's trading coming up next on "power lunch." tdd#: 1-800-345-2550 trading inspires your life. 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.
1:57 pm
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. if hey breathing's hard.me, know the feeling? copd includes emphysema and chronic bronchitis. spiriva is a once-daily inhaled copd maintenance treatment that helps open my obstructed airways for a full 24 hours. spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells, you get hives,
1:58 pm
1:59 pm
2:00 pm
been a choppy trading session today. cisco systems up 2.5% on the trading session, cognizant technology up 3.3%, conagra foods up under 3%. >> we'll see you when you get back to inglewood cliffs. that's all for "power lunch." >> "street signs" begins right now. have a great afternoon, everybody. >> riddle us this, do stocks need to go lower in order to go higher. a debate on if a drop would be a good thing. earnings from the hottest company in the world come out tonight. what to expect froms tesla. what ebay is doing that literal may change retailing forever and the twit twitter ipo in perspective, how it stacks up to other companies it s size. >> the markets where the dow has been doing its darn december to come up for air. did wipe up
166 Views
IN COLLECTIONS
CNBCUploaded by TV Archive on
![](http://athena.archive.org/0.gif?kind=track_js&track_js_case=control&cache_bust=850195800)