tv Power Lunch CNBC December 13, 2013 1:00pm-2:01pm EST
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>> guys and gal, thanks for your playbooks. each trader has two more picks that are online right now. go to cnbc.com/2014-playbook. that does it for us. this game is over. we'll revisit the playbook soon enough. have a great weekend. we'll see you on the other side. "power lunch" starts right now. we got a big hour of power ahead. three keys to 2014, all in this one very massive epic hour of power lurch. topic number one, housing. one of the brightest minds says watch out it may be a very rough year ahead. topic number two, jobs. will we create more in the u.s. or are we about to hit a lull? the markets in 2014, do you need to start protecting yourself for a correction or will 2014 maybe be as good as 2013? i got my doubts there. doesn't get much better than
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20%, 25%. sue is at the new york stock exchange. >> we'll start out with housing. diana oleck speaking to one of the biggest and influential names in the business when it comes to the business of analyzing the price of your home. she was pretty optimistic but that has changed dramatically. what happened? >> it certainly has, sue. it's a big revision to the down side noted analyst zelman who said we're in housing nirvana. while says will rebound in 2014 not rebound nearly as high as she originally expected. she told me this morning that we lowered our 2014 numbers given the weakness of the second half of 2013. our models for individual companies reflect weakness so our macro changes. now here's zelman's rethink. new home sales estimates for 2014 now at 505,000 down from
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her prior estimate of 605,000, single family starts she's now estimating at 735,000 down from a prior read of 845,000. she's also putting existing home sales of 5.4 million down from 5.7 million. why the big revisions? a spike in mortgage rates and higher home prices and a weak consumer ffd and lack of urgency thus far during this lower fourth quarter period. new construction was hampered by a lack of land, labor and financing and she also says the home builders may have pushed home prices up too far too fast. there's, of course, policemen more online. realty check.cnbc. >> key number two to 2014 is jobs. what will the labor market look like? matt ferguson is ceo of career
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builder and author of the book "the talent equation." weigh in on this. are your seeing job growth in 2014? >> hi, tyler. we do see job growth in 2014. i think this budget deal if they get it passed will be a great signal for the future and provide more certainty where we can see over 200,000 jobs a month created. >> how would that compare with 2013? about the same? >> a little bit better. >> and in what sectors do you expect to see that job growth? this year it has largely been -- we've seen some in manufacturing and construction. but it's been health care, retail, restaurant, hotels and so forth. >> some of that will continue. what you'll see the best market information technology, hearth will continue. you mentioned that earlier. i think oil and gas boom is creating a lot of demand for jobs there. a strong one. sales and marketing you'll see strength there. >> what about incomes?
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>> incomes are going to rise but probably not as fast as what we would all hope. we'll see higher wage jobs grow quickly. that income gap will get wours in 2014. >> matt ferguson, we appreciate you being with us. sue? >> key number three in 2014, the markets. a rough week and a tough month for the dow, the nasdaq and s&p 500. that after hitting record highs. so as we enter into a new year do you need to watch out for a correction in 2014? here's seema mody. >> we can tell you which stocks have gotten hit the hardest when the market pull back. in may the dow fell more than 6% while utilities lost 7%, financials and storm staples were down each 5%. the second major selloff was a
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6% dip in august, financials and consumer staples as well as telecom stocks. the last big market move was from september 18th to october 9th when the dow lost 995 points just over 6% for the third time, financial, consumer staples were the key laggards. consumer staples and financial, two of the hardest hit sectors during selloffs. one of the reasons financial stocks underperform during selloffs is because bond yields flatten as investors rush into bonds and that's not good for banks. consumer staples experts say it's an economically sensitive sector. it the ends to push investors out of these consumer focused sectors. boston these sectors have rebounded. 28% for financials and 19% for consumer staples. so that gives you some perspective. >> okay. thank you.
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let's get the traders take on this. ben willis joins me here. so, sema s mmpseema set it up f. it's been a rough week. >> it's been a great year and the fact of the matter is while every professional investor you talk to or professional trader down here looking for that correction we just can't seem to get it. the fact of the matter is the money has gone to the sideline. we've seen record outflow from the bond funds but also the equity funds. that left us at a standstill and no motivation for the correction we're looking for. hopefully it happens. it's not a bad thing. i'm a bull. >> i know you are. longer term bull. absolutely. short term for the health of the market you need that pull back. the best case scenario the bulls taking a rest right now because there's nothing else going on. >> how much also is that the
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market is on hold. it could be as simple as that, right? >> it is. i think that's it. the fed's forward guidance turned into muck. they missed an opportunity. even if it was only a couple billion they should have done something because they led the market and left us out in the cold. not a fairway to trade. so now we'll wait to the 18th and wait until next week to get an indication on what to make. >> how much of a taper if indeed it happens next week the we get that language from ben bernanke. it's already in this market. >> unfortunately, i think a lot is in the market. again, i was hoping for more of an impact from the taper that we would have a selloff in the equities. what we're seeing is the money sitting on the sidelines. we may not get the pull back because there's so much waiting coming in when we get the forward guidance that the fed wants to call it. >> how much of this, very
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quickly, ben, could be some of the pro, you know, the hedge funds that had good years and they are close the books. they want to sit in cash, maintain the gains they put in for their investors. >> most of the pros you're looking at, you protect your position with derivatives. >> very good point. >> the point being the protection out there is being done on the vix, selling puts, buy it at a discount or sell the put or sell the calls what ever the derivative play is. >> ty, up to you. >> band new all american economic survey is out this courtney regan zeroing in on where the u.s. stands this shopping season. how we doing. >> appropriate time to do it. 12 days left until the big christmas day.
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strong moves in this year's economic survey. revealing look at where and when consumers are shopping. without further ado, big box stores reign supreme as the preferred format. the gap is narrowing between that format and online. 40% say the big box stores authors wall matters, the best buys of the world are where they shop most. 35% say they do most or a lot of their shopping online up from 28% last year, the biggest spike year-over-year in the history of our survey. many say retailers have seen some gain and then the survey seems to suggest online uptick comes at the expense of department stores. digital divide appears when digging deep near to the shopper profile. online shopping is the overwhelming favorite format for both those more highly educated and those with higher incomes. those making under 30,000 and those with a high school education favor big box stores than online at a rate of two to
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one. whether consumers shopping. expect those thanksgiving day hours to become a tradition. black friday shopping got a bump up in participation. up over seven percentage points. >> wow. >> it works. people like to shop. it's tradition. part of what they do. >> forget baseball as the pastime. let's bring in our senior economics. enter now. don't go running away here. come on in. we're all friends here. steve, what is your take on these numbers. >> don't touch the talent. >> be expectations for wages, horse housing gains and expectations for inflation are lower. so i think it may be that we're not going to get a great
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christmas but next year '14 is setting up as a better consumer year. what we need to see is these higher numbers in stocks and end up in higher numbers at the cash register. >> people say they won't spend as much as they did last year. do you believe them when they say that? >> well, here's the story. our survey over the past -- six of the seven years, we've been within $13 of the actual number. four of those six years. of the average expenditure. two years we were below by $100 one way and $100 the other way. >> what's the number this year? >> 681. >> identify already gone past it. i know somebody has on your behalf. >> so we don't know. two years are right in the middle of the recession. '09 and '10 we could be missing it again. >> people were out shopping over that holiday weekend. >> exactly. traffic was up. the overall sales down the
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flattish. remember we talked a lot about the promotion that retailers are running. that plays a part here when you look at the sales figure. items that weren't gifts. >> i like what courtney said about this thanksgiving day is here to stay. we went from 4% who said they shopped on thanksgiving day last year to 9% and last year they weren't even that negative on it when we asked people's opinion about it. no, it's fine. that maybe spread it all out over that weekend. maybe people are less in a rush to buy. >> seema, out to you for a market flash. >> i want to point your attention to shares of general electric. moving higher after announcing it was increasing its quarterly dwifd to 22 cents a share. that comes to an annual yield of 3.3%. the stock trading up by 1.2%. >> thank you very much. freezing weather could really hit much of the country quite hard and it already has been. it's not even officially winter yet.
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check out the extreme snowfall in rochester, new york and it's not over yet. looks like more snow is on the way for about a third of the country this weekend. here's the weather channel's alex wallace. >> no question the big system we're tracking will be moving its way from the middle of the nation to the east coast. here it is bringing moisture with cold air diving south. two meet up and that means wintry weather. starting out for our friday here with a bit of wintry mix throughout the midwest. it will include around st. louis. snow for the most port arthur. pittsburgh, new york city most of the day dealing with snow. boston late saturday into sunday where the snow will be occurring before you change over to more of a wintry mix by sunday afternoon. a lot of the interior portion of the northeast really getting slammed with some of the heavier totals. let's work our way back to the midwest to show you what we find. three to five inch, darker shade of the blue. that's south of the chicagoland
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area but it does include detroit in that three to five inch range but bigger totals here in the northeast through the interior, look at this dark shade of purple. eight to 12 inches of on interstate albany you're include in that north and west of boston you're in that five to eight inch zone as you work your way west of 495 dealing with heavier totals. new york city looks like you'll be in that three to five inch range around long island one to three inches anticipated there. decent snow is coming in for the weekend. hopefully you'll get some of that holiday shopping done. back to you. >> snowing in the middle east. this is video from jerusalem. snow was also reported in israel's north and south area, massive rain fell in other parts of the region. some parts of jerusalem received near record amounts of snow some 12 inches. secretary of state john kerry was in israel for this storm. his convoy was stuck and had to
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be plowed out by the israeli army. you don't often see that. >> wow. that's just amazing. what fun it must be for them. >> the kids are having so much fun. >> that's so cool. folks next up the biggest run ups for housing in the usa but diana oleck tells us about two cities that were rising but now are falling off a cliff. and phones on a plane. a reality check regarding what this could really look like when all is said and done. we'll talk about cell phone use on aircraft. more mine was earned orbiting the moon in 1971. afghanistan in 2009. on the u.s.s. saratoga in 1982. [ male announcer ] once it's earned, usaa auto insurance is often handed down from generation to generation because it offers a superior level of protection
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>> welcome back to "power lunch". check out mindray. it's already trading more than six times its normal daily volume take a look at the stock up about 6.8%. >> thank you very much. if you're planning to look for a house in 2014, you do not want to miss this next report. a new report out ranking america's healthiest housing markets. we'll show you the most unhealthy markets. diana oleck rejoins us now from washington with the details. hi, diana. >> reporter: tyler, hi.
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it's a bit of a switch. california now has some of the most healthy housing markets in the country. take a look, if you will. the top four are in california with san jose and san francisco leading the back. los angeles and san diego made the pick. zillow's chief economist said it's rapidly rising home prices outweighing everything else out west but that could lead to bigger affordability issues in the future and you don't need to look too far to see how that plays out. two of the least healthy markets right now are las vegas and phoenix. take a look at prices, first. up 27% in phoenix in october a year ago and 25% up in vegas.
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those are investor driven. now you are seeing sales down 20% in phoenix and down 18% in las vegas. you're also seeing supplies rise in phoenix up 40% from a year ago. investors are putting those homes back again noornon the ma. one analyst is using words for those markets like crash and crisis. wow, diana, thank you very much. some pretty dramatic language there. all right. cutting out the middle man, beyonce surprising everybody by releasing her latest album straight to itunes. amazon take on costco in the food business. and google may be thinking about making its own chips bypassing intel. what does all this mean for consumers. we'll talk about that plus making cell phone calls on planes. we're getting closer to making
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that a reality but the backlash is already growing. bill, tell us about it. >> sue, a lot of people don't like the idea and now there's some in washington who are saying you know what if the agencies won't ban cell phone calls on planes we'll do it. we'll talk about the latest of this controversy when "power lunch" returns. business overni? ♪ like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. hi honey, did you get the toaster cozy?
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yep. got all the cozies. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. so i knit until it was full. you'd be crazy not to. is that nana? [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. regulators voting to consider lifting the cell phone ban during flights but the backlash has already begun. with questions about passenger
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rights. our phil lebeau joins us from chicago. phil, it is a bit of a tangle right now. where do we stand. who said what and what's next. >> reporter: they are trying to figure it out in washington. the fcc which strictly is in charge of the technical aspect of communication from passengers to the ground on passengers, they are considering whether or not to lift the ban on cell calls. that would strictly be on a technical basis. the d.o.t. is also reviewing the policy. d.o.t. resultly who would make the ruling in terms of sure you can go ahead and make the call and yesterday the secretary of transportation made it very clear he's not in favor of that. meanwhile congress is considering a law to keep the ban in place. they are going to go around everybody. we don't think it should be allowed. public opinion is solidly against cell calls being allowed on planes. the airlines now allow expanded use of electronics in many cases from gate to gate. the fcc has approved a review of
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the electronics policy and this is the fcc yesterday. there's the head of the fcc looking at this from a technical standpoint they are only considering those technical issues while they consider lifting the ban. but here's one representative from oregon who told us earlier today on "squawk on the street" this is a bad idea. >> last thing that frequent travellers, business travellers who are the core profit folks for the industry want is to be sitting between two people yapping all the way across the country on their planes, keeping them up all night if it's an overnight flight. >> if you take a look at shares of global entertainment and gogo, they provide the technical entertainment for airlines. others on capitol hill say there's a safety issue involved. what if you have people get in arguments because somebody won't shut up on their phone or too
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loud. for the flight attendants who already deal with agitated passengers it adds another potential element of uneaseiness, if you will as they are going from one destination to another. ultimately we'll see it settled in congress or the d.o.t. will at some point step in and perhaps say we're keeping the ban in place. >> i don't concede this but my wife tells me i'm a little loud when i talk on my cell phone. >> you? never. >> i'm told this. i dispute it. i deny it. what are the odds that people are going to be able to make phone calls on planes faint happens how soon? >> i think it's really low. i think that the public opinion is so against this happening that both the d.o.t. as well as members of congress are going to step in and say you want to text, you want to e-mail, do it to your hearts content. but we don't think the mean should be a place where you're allowed to make phone calls. >> phil lebeau, thanks so much. >> ty, you're not loud at all.
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let's check on the big movers. hi, sheila. >> reporter: here at the nasdaq we are managing to stay above that 4000 level. we slipped blow it yesterday. we're seeing green right now and if we can hang on to the gains it's the 11th straight friday in a row where we're seeing gains nands. helping stocks to the up where side is adobe up 10%. after the company said that it is signing on line customers at a faster clip than expected. investors are getting conviction that the shift in their business model is work. momentum names we love to talk about. tesla, facebook and micron technologies are trading to the up where side. some strength in those momentum names. we're seeing some weakness when it comes to old technology. take a look at cisco. that's down for a second day in a row. after the company had disappointing growth outlooks.
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microsoft, an interesting story. whether they were weren't interested in hiring an executive from qualcomm. they can't any more. as that top spot is still open, microsoft shares trading to the down side. apple is in the red. this stock had a pretty good gain over the past couple of weeks. evercorp upping their price target to $700. saying look all of these ipod, ipad refreshes have rejuvenated momentum so maybe the stock taking a little bit of a breather today. everyone keeping their eyes on apple as we head into the end of the year and the all-important holiday shopping season. back to you. >> thanks. it's bean wild week in the bond market. we had a lot of supply to unload. we had action in the dollar and the yen. rick santelli is here to wrap it up for us. >> reporter: indeed from the treasury perspective it's not a difficult week to wrap up.
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here we sit at ten years. we're at 286 down two basis points from yesterday's 288 settlement but that's where the glitter is on the trade if you open the chart up. yesterday's 288 close was a three month high yield close and of course we know what's going on with the fed next week they are meeting. beyond that there's a lot of opinions. when it comes to foreign exchange there's very few opinions. everybody is in the same conventional wisdom. they like the pound pretty much versus all currencies but love the yen versus everything as well. look at intradition day chart on dollar/yen. settled at 103.40 yesterday. down a bit but almost touched 104. open the chart up to october of 2008 that's the last time we're at 104, 62 months by my count and many traders think we'll see much higher. this is a trade to watch for the rest of the year. back to you. >> you've been ahead of that
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trade for quite a while. after a brutal day yesterday the gold market steadying out a little bit today. perhaps not surprisingly we have a gain of nine bucks on trading day a little bit of a bounce. up less than a .percent. the silver market is up just under a percent, relatively strong today. copper slightly higher but platinum is down by .10%. an a-list of tech a star stud red carpet event last night in silicon valley and not just tech, call it the oscars for science. there were six winners of the so-called break through prize in the life sciences. our cameras were there and we caught up with the google founders. >> i do. this is one of them. and i think it's exciting. it's bold. it has the potential to be transformative over time. >> i think we have a balance in
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this world today that the best minds are not appreciated enough and i think they will recognize that there is public recognition and financial reward. >> very interesting. here are just some of the 2014 recipients of the break through prize. james allison of the cancer center for his work in cancer they pea. mahlon delong for work in parkinson's disease. michael hall for working on kroel growth control. qualcomm has named a new ceo perhaps a move to block microsoft's effort to tap its next ceo. the battle for america's top corporate chiefs. and cut ought the middle man. beyonce shaking up the music world releasing her latest work straight to itunes in a surprise move. amazon taking on costco. and who needs intel.
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google may be thinking about making its own chips. what it's all saying about the business climate and what it means for consumers and investors. (announcer) at scottrade, our clients trade and invest exactly how they want. with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade-proud to be ranked "best overall client experience." is caused by people looking fore traffic parking.y that's remarkable that so much energy is, is wasted.
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streetline has looked at the problem of parking, which has not been looked at for the last 30, 40 years, we wanted to rethink that whole industry, so we go and put out these sensors in each parking spot and then there's a mesh network that takes this information sends it over the internet so you can go find exactly where those open parking spots are. the collaboration with citi was important for providing us the necessary financing; allow this small start-up to go provide a service to municipalities. citi has been an incredible source of advice, how to engage with municipalities, how to structure deals, and as we think about internationally, citi is there every step of the way. so the end result is you reduce congestion, you reduce pollution and you provide a service to merchants, and that certainly is huge.
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. welcome back to "power lunch". mastercard and visa moving higher. a judge has approved their fee settlement with merchants. this from dow jones. mastercard shares up by 1%, visa up a little bit more than 1%. back to you. in a surprise move qualcomm taps steve mullencoff as their new ceo. he was rumored to be at or near the top of the list to replace balmer. our next guest says this is
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regular business when it comes to nabbing top ceos. bob, welcome back. nice to have you here. >> nice to be here. it does kind of seem to be a bidding war is out there. m alan mullaly isn't commenting. is this what it comes down to if companies want to keep good talent they have to elevate them? >> there's one thing about tlaents. the world is transparent. people know even across industries. there are rumors about people moving from one industry to another in order to be ceo. and maybe it's like to use another sports metaphor it's hard to make the super bowl without an elite quarterback. the role of the ceo today is
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really crucial. given all the pressure that the street basically puts on every company. >> yeah. if you were alan mullaly over at ford as we said he's been -- he's been very evasive, our phil lebeau has at the ride to pin him down. how would you advise him to play the situation that seems to be developing or could be developing between him and microsoft? >> well, you know, again, going back to the baseball metaphor. it depends on which team he wants to be on and what are the terms of the arrangement. he's got to, obviously, his first loyalty is to his current job. he's done a great job. a real renaissance at that company. the idea that maybe it switch industries, i don't think five years ago that would have been remotely thought about.
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well, today things are different. there really is a marketplace for talent. >> talk more about that issue, if you will, and the time we have remaining. four, five years ago, if you were in the auto industry you tended to stay in the auto industry. if you were in the airline industry you stayed with airlines pretty much as a career. what has changed in the economy that now allows kind of this cross pollination of ceos. >> i'm not sure it's a change in the economy. it's a change in the skill set that you need to be a ceo kpoup have been a great ceo and been internally oriented ten years ago let's say but today, you got to deal with shareholder interests u-got to deal with political interest, you got to deal with your own employees. it's really a role that requires a very external orientation, and not simply industry expertise. it's not to say it's by no means is it easy to go from one industry to another but demands on you are so much greater and you got to satisfy those demands
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or else thing you have an activist or issues with shareholders. >> especially these days the vutist investor is so active. very quickly, bob, if you're microsoft, you know, they've had some tough sledding, they missed a couple of key points in technology cycle. how much do they have to ante up to get the right ceo? >> well, it's a great company so there are a lot of people who will take this job in a heart beat. of course, if you look outside, there frequently are reasons to look outside, think about the tax base, aol and marissa mayer. she had a fabulous first part of her career there. you don't have to be home grown. going outside has its issues. for one thing it's very expensive. >> bob, thank you very much. ty, up to you. >> how do they do it? cut out the middle man.
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beyonce surprising the music world and all the single ladies by releasing her latest album straight to itunes. amazon turning the heat up on costco and others. google may be thinking about making its own chips. i'm going make my own butter. special "power lunch" rundown is next. stick with innovation. stick with power. stick with technology. get the new flexcare platinum from philips sonicare and save now.
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when you open an account. the dow jones industrial average was up 42 points. joining me now post-nine is bob pisani making all sorts of circles on your notes. >> it's ipos and buy backs that are motivating things today. we had a fantastic week of ipos. you would think who cares. it's december. nobody does it. this is a huge week. nimble, flash technology. it ended up at 1820. priced it at 21.
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it's at $32. ipos today at 21 and now it's trading at 32. >> bought more shares? >> flash storage. they will replace all that traditional disk space storage with flash storage. we're talking a lot of power here. yesterday the largest ipo day of the year, we raised, i have the number here $3.85 billion. bigger than the twitter one together. tremendous. buy backs have been hot. mastercard announced a big buy back. honeywell announced one today. it moves the stock. when you have buy backs like this. $5 million. $67 billion market cap company. they talk about a buy back if they do the whole thing, 7% of the company, the shares, the value of the shares outstanding. that's a huge number. >> now, buy backs this year have been a lot. thank you. that's what i'm here for.
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$635 billion in buy backs this year. is that a lot? yes biggest year for buy backs since 2006. we're having an enormous year for ipos, enormous year for secondaries. a new supply coming on the market. enormous year for buy backs as well. that's a major factor. >> the other thing it's not just the home grown companies that have decided to go public and then list. it's also the private equity investors who are now in an environment where they feel they can take those companies public again. hilton is an interesting example of that because when it was taken private in 2007 a lot of people didn't think we would see this company come public. >> 2008 was a real monkey wrench. before we go, dow is down 1.3% this week but tint rate sensitive sector, is the one that's under a lot of pressure
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this week as we see the ten year moving towards 2.9%. emerging markets, telecoms, utilities, this is the groups under pressure. >> thanks, bob. have a great weekend. say hi to mom. hopefully she gets into town. power rundown time. it is maybe the death of the middleman. beyonce surprising the world with a new released self-titled album. she threw it up on itunes. is this the big of a major change for record companies? >> i think this is huge. she's still working with her record label. not like she worked without so any who works with columbia records. what's huge is there's no marketing. she has 8 million instagram fans. she has 53 million likes on facebook. she has 13 million twitter
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followers. she can do this because she has a direct relationship with her fans. >> that was channelling her inner miley cyrus with the tongue. >> no don't say beyonce and miley cyrus in the same sentence. >> the least you could say is some social media people have said this lady can keep a secret. >> she can. so few surprises these days. great to have one here. look, unless you're beyonce and maybe a couple of other people, prince, you can't do this. so, she doesn't have to do any marketing. the game is changing but not in the same way for every kind of artist. >> let's stick with the middle man theme. amazon take on another one or costco, or sam's club. amazon will unveil a program called pantry that let shoppers
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shop for goods in bulk for household stores. this seems a logical extension of what they do already. >> they already have programs that do this. you can subscribe and get above average of cereal at once. this is specifically for prime subscribers trying to get them to fit as much as possible in one box. i see the advantage for amazon. they can save on shipping costs. we'll have to see what kind of incentives they come up for the consumer. >> i've been using -- >> i don't need any incentives. no incentives necessary for me. i totally get it. this is the best thing ever. i already do this. i order shampoo and soap and toothpaste on amazon. i order crackers in bulk. once you figure out what you want if it's not perishable, if it's possible to order it online i would love to save the trip to the grocery store. i only want to go to the grocery store if i'm buying produce.
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>> it's good for survivalists. i order all my pet food and cat litter and stuff like that from amazon or pet flow. so much morven. let's talk about google thinking about making its own chips effectively cutting out intel, what do you think here? >> they wouldn't be the first apple clearly does this with its mobile devices. qualcomm has an architectural license. since google make its own servers it's a logical extension. bad news for intel potentially they got a lot of business from people make being their own servers so intel may want to pivot and figure out how to capture this market. >> it's fascinating. outside of google's core business but they are big purchaser of these chips anything they can do to bring the costs down. it could be a really good thing
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for their business. >> sue? >> guys it didn't quite make the power rundown today but a close runner up. intel inked a deal with fc barcelona. the logos will be on the inside of the team's jerseys. why the inside? when the players store they lift the jerseys over their head and intel logo will show up. they are paying $25 million for the the rights that promotion. a wild week for the markets. the national average is down 1.5%. three biggest winners this week four. but first -- >> who wouldn't want to spend their days sipping wine. find out how this woman made it happen by trading in her wall street desk. escaping the cube next. there's a saying around here,
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the dow and s&p both down as bob just noted a moment ago, more than 1.5%. the nasdaq close to that on a weekly basis. but there have been some big winners this week. check out three of the biggest in the russell 1000. groupon up 13% this week. scripps is up 8%. on that word potentially that discovery might offer to buy some of the more valuable television programs. tesla up 10%. >> reporter: take a look at at&t because the company raising its quarterly dividend by a penny to 46 cents a share. the stock down about half a percent on the day. sue, over to you. >> what's a "power lunch" without a little wine? but forget the restaurant. it turns out americans like to drink more wine at home. in fact, in 2012 we spent nearly $13 billion on fruit of the vine at liquor stores and that's
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great news for susan who quit her job to open up a wine shop. >> my boss said you're out of your mind. he said you have a great investment banking career and you're going throw that away to open up a liquor store? you're nuts. hi, i'm sharon sevren. i used to be on wall street. i got out of business school, out of wharton, i got a job on wall street at merrill lynch. i spent my summer there's where i met my husband. i went back as a full time associate in 1999. my least favorite part was unpredictability of the hours,
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you were on call 24/7 even once you were at home you never knew when you were get that e-mail or phone call to come back immediately. 9/11 happened. there were lots of layoffs in the investment banks. i was one of those candidates. >> she took another job and continued to work in the industry but while she was working there she decided to take a wine class. she decided to create a consulting business around wine. >> i found more and more that i loved my night and weekend job wasn't loving my day job any more. >> a friend of a friend called up and said he heard a license might be available in montclare. >> i called my husband. that's great. honey i just bought a liquor license. we're doing it. in sat down in a weekend and built a financial model. i love to teach and i want to
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educate consumers as much as they want to be educated. >> remember to give it a good swirl. >> i want a store that's all about "food and wine" pairings because we have 50 byobs in town. >> a roast chicken with herbs under the skin would be really nice. i test everything before i bring it into the store. which sounds like an obvious thing but that's not what most stores do. the first several years even though the store was doing well i invested everything back into the store. so i definitely don't get paid as well but the quality of life is so much better. >> i wouldn't trade it for anything. i'm so glad she did it. >> well one of the tricks to her success is don't buy too much inventory. probably a lesson for a lot of businesses. a biggest winners in today's trading is next. change engineering in dubai,
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leidos holdings. so it's bean wild week but maybe we'll go out on the plus side today. >> thanks very much. congratulations to them, a lovely wine shop. it's in my town. >> looks like it. >> we'll take you, there sue. >> "street signs" begins right now. where should you put your money next year? a guy who has been more right than most is here with his outlook and advice you can't afford the miss. hi, everybody and happy friday. also ahead, watch out costco, amazon is coming right at you with a new business. netflix discovering something about us that's probably a reason why their stock has been on fire and one of the world's greatest chefs is here with how to build a brand, run a restaurant and how he's helping to fight hunger in new .
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