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tv   Power Lunch  CNBC  December 20, 2013 1:00pm-2:01pm EST

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>> doc? >> sunpower. 35% short interest. they are clueless. they're going to get run over. it's a buy. >> jim? >> bp, formerly known as britis? >> i like goldman sachs here. you will see a lot of profit expansion. >> thanks for watching at home. have a great weekend. see you next week. "power lunch" starts right now. >> "halftime" is over and "power lunch" starts right now. >> indeed it does. and today on "power lunch" a real live shopping competition. how can you get it faster? jane wells and courtney reagan went shopping to find out where you can get whatever it is you want to get faster from click to your doorstep. plus, insider selling, buy backs and beyond. seema is on that feed for us today. seema? >> hi. that's really happening inside a company from buy back activity there is a way to profit and get away from the pack. that's coming up. and, oh, canada.
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the supreme court of the north making some big decisions. think looneys, tooneys and prostitu prostitutes. andrew? >> hey, sue. it is quadruple witching day on wall street and expiration date for stock, option, and futures. you've got to be watching for a lot of volatility today between now and the close. right now take a look at what is going on at the dow. up 9267. s&p up 1250. and nasdaq, a nice little run there. up over 1%. we have our good friend bob pisani right here who can take it away and tell us what's really going on. >> andrew, in terms of technical analysis, if you believe in technical analysis, it really doesn't get any better than this. put up the full screen. not only are we at historic highs. number one. very important technical indicator. number two, strong all week. 3-1, 5-1, advancing on declines.
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volume has been heavy. all factor into various components of technical analysis. what else can i say? in terms of what sectors are moving, high beta names moving. home building stocks, biotech, airlines. even the sop and that is oil and natural gas. all have been big movers throughout the year. they all swing more than the overall market. as far as fears out there, what fear? i've been saying all week the vix not only is not going up, it's going down and even if you look at future contracts in then march and april, there's no big jump up there. traders are not buying protection two or three months out. that's a very important development. the fed has taken away a lot of fear here. rebalancing at the close, guys, you're going to see action in a lot of stocks. seeing reductions in names like apple, pfizer, exxon, and there will additions. there will be more stock to add for general motors as well as facebook. if facebook, of course, going in, right? at the close.
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>> everybody is setting themselves up going into -- not just really a weekend but a week where i assume next week is not going to have a loot of buy-? >> no, but the technical indicators are so strong that the market has a lot of forward momentum. >> we're going to send it back to sue. >> the cold war is either not over or it's back on again. ayman jafers has the remarkable story of an air force general of a unique knowledge of missiles being set up in russia. sex, secret, and nukes. we'll get to in a moment. but first, the russian oil tie con mikhail just released from prison moments ago. held for ten years. slo vladimir putin released him. he landed in germany. we'll have the first picture of him landing in germany a short time ago greeted by a german politician. now, our chief international koerntd michelle caruso cabrera
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just scored an interview with the british hedge fund manager kicked out of rush b shah for disagreeing with the kremlin. and michelle joins us now. >> he is going to join us on the phone right now. bill broader, the founder of hermitage capital. mr. broader, thanks for joining us. you've been fighting a very long war with the russian government about the seizure of your assets. your attorney died in prison trying to we defend you. what do you say about this move from russia, from russia's president vladimir putin releezing mikhail today. why do you think he done it? >> it's terrible and a horrible tragedy that khodorkovsky put in jail. putin put him in jail. we're nine months away from when he was to be release and putin, after keeping him hostage for ten years, is saying look at me. i'm such a great guy. i'm pardoning him nine months
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early. what this is all about, it's all about pr before the olympics. putin is humiliated because obama is not coming, the german president is not coming, the belgium president is not coming. he wants good news about his human rights record. so he takes a guy who he's held hostage and releasing him. >> he said he's going to release the two band members of the band, as well. >> it must be a really aren't paying attention. it's kind of hard because so much bad stuff going on over there. they're passing laws right now outlawing home seks a ining hom. they're doing all sorts of crazy stuff. by doing a couple of symbolic moves. if you're completely not reading the papers you might be influence bd by that. most people i know are saying this is a cynical pr subject by
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putin before the olympics. >> would you ever invest in russia again? >> i'm not investing in russia. i was the largest investor in the country. they tried to seize all of my assets. i thankfully got it out of there. you shouldn't be investing in russia. >> thank you for joining us. we appreciate it. andrew, back to you. >> thank you. we're going to get over to ayman. he's got that story of an american general with unique knowledge of our weapons arsenal. he wound up drinking too much and talking too much to some young ladies. just happened to be very interested in nuclear weapons. what happened? what is this story? >> yeah, this is a weird one, andrew. it's embarrassing for the u.s. military. air force major general michael kerr prip he was carey. he is over a unit that overseas and deploys ballistic missiles as part of the u.s. force. he went on a trip in a story
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broken by "the washington post" this morning to moscow and parts of russia in july. a four-day trip. apparently drank too much, embarrassed himself and his host. and at one point was talking with some young ladies at a bar into the wee hours of the morning, expressed some surprise later on when he was interviewed about this by military officials that they were so interested in talking about physics late in the evening, obviously this is a huge potential security breach. russians very very interested in u.s. nuclear forces and posture. you can expect they would use any tactics they could to pry secrets out of american generals. extremely embarrassing for a general to put himself in that kind of vulnerable situation in russia. >> wild story. in the meantime, we're going to get over to dominic chu right now. >> cvs care markets are moving higher. they lifted shank shun lifted s imposed earlier this.
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enrolling members in 2014. the band rose in january after cvs converted which led to service problems. the sanction cost cvs a billion dollars in sales. >> thank you very much. here on power lunch today we're keying in on the numb bur four. 4.1% gdp for the third quarter. surprise to most. strongest since the end of 2011. 4% plus mortgage rates. 4% dividend yielding stocks. and 4 sectors. so joining us, 4 is the name of the game, and the power rundown today, katie nixon which northern trust. we got the winter white memo. >> we did. >> terrific. ready to get started? >> ready. >> let's start with what 4.1% gdp means right now in terms of the growth and outlook for stocks. >> sure, sue. we were surprised at the 3.6 number that came out. the revision of 4.1 was a bigger surprise. really solidly good news and
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certainly supports bernanke's decision to taper earlier this week. tapering for the right reason. you can see the market reaction today, good news is good news. solid economic momentum. we'll have to see how the fourth quarter and certainly the first quarter of 2014 react. we could be borrowing some growth are high inventory build-up that we saw. >> does it get the individual investor who has been sitting on the sidelines not sure about this economic recovery to get into the stock market? is it a green light for them? >> i think so, sue. i mean, you know, we expect that next year we'll have a healthy year for equities based on solid fundament fundamentals. we know this year we got a lot of momentum in the market based on multiple expansion but next year it's back to basics and with do think on the heels of economic growth we'll have good corporate earnings. >> what about with mortgage rates. 4%. everybody is used to these unbelievably low interest rates. and parts of housing have been struggling. what does 4% mean to the housing sector and the economy?
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>> it's interesting because i think people have to recognize that these are still very low rates by historical -- >> absolutely. i had my first mortgage at 15 or something. >> they were up 17% 30 years ago. we've been in a solid decline in mortgage rates since then. 4% mortgage rates are sustainable with this improving economy. >> all right. let's go to the s&p companies that are paying dividends of 4% or more because that's the next step in our 4%. at the top of the list, a trkath 5.34% and altria at 5%. duke energy, 4 1/2%. philip morris at 4.4%. would you still go with dividend stocks in 2014 with interest rights on the move? >> you know, we like dividend paying stocks but we look at it in a nuanced way, sue, where we like to pair a nice high dividend and a sustainable dividend with quality. we have a propriety factor at northern trust where we review company's quality based on
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efficiency, can't 258, profitability and cash flow. investors that look at dividends in a vacuum can many times have a concentrated portfolio or to be taking more risks than think thigh they're taking. a lot of dividend paying stocks act like bonds. >> people are looking for income and it's hard to find it. you shouldn't just do it in a vacuum. equities. how do you play it? you were currently going in overweight with equities. that played out well. we had a stellar performance in the market this year. does that continue in 2014? >> again, much like i talked about gdp borrowing future gains, the dramatic increase this year could probably be borrowing a little bit from next year and the year after. we still have a positive point of view about next year. we have 1890 goal on the s&p 500. so gives us 3 hrs to 4% here. dividend yield. not a bad year. >> not at all. thank you very much. we'll coordinate outfits next
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time you're on. andrew, down to you. >> thank you, sue. company insiders start making moves, the board announced a buyback, how can you profit from it? that's a question. sheila darm what and seema are tackling this key question for investors. let's kick it over to seema. >> buying back stock this year. what's driving the boom? companies are sitting on a lot of cash and wary of capital expenditures. so they're using that cash to buy back their own shares. the big benefit for investors with fewer shares out there, earnings per shares go up. so here's how it works. pfizer is one example. pfizer's net income down in the third quarter. earnings per share went up thanks to 11.7% benefit from a buyback. it's sitting on a ton of cash. shares are up 20% year to date. now, contraction in merck, 6.9% in the third quarter but a 3.2% drop in earnings groetd. again, thanks to the buyback.
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now, over to home depot. home depot has consistently increased the amount it's bought back from 2009 to 2012. the latest quarter of home depot's net quarter drew but it crew 28%. shares are up 30% year to date. these buybacks may be good for shareholders in the short one but some analysts argue that companies who focus on buybacks to raise the stock price may be out of good ideas on how to invest their money to grow their businesses. andrew? >> thank you, seema. let's get over to sheila. try and find out which stocks are ripe for insider selling. >> we've been talking a lot about facebook and how mark zuckerberg has been cashing in on his shares. he is not alone. in fact, plenty of companies have been seeing insider selling. we screened the names of the companies who have had the top selling over the past 30 days. now, topping out the list is a apparel manufacturer pvh. $70 million worth sold by insiders. the bulk of that by ceo.
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he said it was related to estate planning purposes and t. number two on the list, starbucks. $60 million worth of shares sold by insiders in the past 30 days. 45 million of that coming from ceo how wards shultz alone. kimberly clark with insider transactions within the past month alone. here's the big picture. traders tell me you want to keep an eye on the companies that have a lot of insider selling, bottom line they are cashing in. oftentimes it's when the stock prices have been doing really well. case in point, starbucks, that stock is up over 40% this year. perhaps taking profits off the table. back to you. >> the adage on the commodity markets, only pigs gets slaughtered takes money off the table when you have profits. we have a big story today. banks are starting to unload some of that inventory they
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picked up on the cheap. diana olick is in washington with us. >> doing it more quickly. the steep jump in home prices may be pushing banks to sell foreclosed properties at a faster pace. sales of banked own homes accounted for 10% of all rest additional property sales in november according to realty track. up 9% in october. they're also may be a reviable among institutional investors who dropped off a little bit over the past six months because they weren't finding the big dig count deals. their purchases was 7.7% in november up from 3.6% a year ago. price gains are slowing and more inventory is coming on the market as those states that require a judge in the process, a really ramping things up. all that means more cash in the market while the realtors say 32% of sales are cash, realty trac put that share up 42%.
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the highest level of all cash sales since of 2011. more online as always, realtycheck.cnbc.com. we have two competitive ladies, two races. courtney and jane set to go at it. janie? >> we're shopping for gifts, shopping for food, sue. we all feel the need for -- the need for speed. i tested out oom zone. >> i used walmart and whole foods. get your stock watches and calculators ready to see who won. coming up next.
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lunch." carnival and royal caribbean are cruising along today. ubs is upgrading the stocks to buy and raising the price tarkt. ubs saying they are seeing signs of recovery at carnival and royiroy i royal caribbean will profit from carnival not slashing fares. back over to you. >> dom, thank you very much. tis the season, it's the season for speed. we all have so much to do in so little time, especially this year. we're short one week. courtney and jane, good to see you ladies. >> nice to see you. >> they decided to see who and what was the fastest when it comes to shopping. they had two competitions. the first shopping for gifts. the second shopping for food. for race number one, jane went with amazon. >> correct. >> and courtney went with walmart. >> yep. >> all right. ready, set, go.
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>> so i have three items, the ipad mini. >> next is a vacuum cleaner to my mother. >> dirt devil. >> third item is a lego super hero set. >> i'm seeking speed and value. >> i'm going to have all of these products delivered to me here at work. ♪ >> if i pause to do anything, i lose that ipad mini when i try to check out. >> payment couldn't be processed. i wasn't charged but there was an error. so we're going to try this one more time. >> what if i wanted to put it in a locker. >> i can give you the order number? >> i'm going to place the order. >> here we go. going to be wrapping the presents. >> get the massage chair going and check my order. >> so here i am back at the 7-eleven. two presents were waited inside amazon lockers at. the dirt devil was wait for me at home. my walmart delivery is here. >> basically, in less than 36 hours after i ordered everything it's all here at the house and i've gift wrapped though i'm not
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a very good gift wrapper. maybe i should have ordered it gift wrapped. anyh anyhow, how did you do? >> 42 hours from order to delivery. we have our three boxes. see if it was enough to beat jane. >> apparently not, jane is the winner. >> yea! >> i like the massage chair aspect of things. >> it helped to pass time. the most interesting thing about it. it did take longer than i expected and i paid top dollar. amazon lockers at 7-eleven, one was right next to my office. it's cheaper to get them shipped there. you go right down and you pick it up. >> yeah. it was really interesting. >> courtney? >> i had the product shipped here to work because if i was doing this at real life, that's why would have to do. i thought i would get them faster because i have a walmart close and they ship to store. i paid 22 extra dollars to get them faster and still wasn't enough. >> the race isn't over yet. >> no. >> now we're on to food. >> rematch. >> rematch. the race for food. jane took amazon again. courtney went with whole foods. ready, set, here we go.
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>> so we sent in our order to the personal shopper at whole foods. we have a four-hour delivery window. the clock is ticking. >> so this race is all about convenience. so i'm going to go ahead and order from amazon fresh here at work and see how quickly i can get the food. >> i'm at the house and amazon said the groceries would be delivered between 3:00 and 6:00 p.m. they're just going to drop them off at the door. i'll be right back. >> let me see if we got everything. they certainly don't chints on packaging. >> as i suspect, i could note get a single large pie so we have four individual ones. >> six hours after we placed our order with the personal shopper at whole foods, we have our holiday dinner. voila. i didn't have to go to the store but i did have to pay $299 to
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join amazon fresh. so so hopefully $63, plus a $10 tip is enough to beat my colleague jane wells on the west coast. getting dinner ordered. and to the table. >> revenge is a dish best served cold, courtney. >> that's right. i win. i win. and we didn't -- it was -- we had no idea how this was going to work out. we really, okay, let's do this and also see what happens. >> i was telling jean yesterday i tried to order to maamales we $90, the shipping was $178 which i just don't get. i'm going to make them myself and it's going to be ugly. >> thanks. >> got it. >> you can vote for who you think you won each battle at holidaycentral.cnbc.com. andrew? >> thank you, sue. we got some headlines for you. 173 days before the world cup. another embarrassment for brazil. terrible mudslides forcing massive evacuations there.
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a family of six was buried and killed by the slide. so far there have been two other confirmed deaths as well. it happened after days of heavy rain. shelters have been set up. people in the area literally running away from the slides. and fairs from mexico city's metro jumping 70% yesterday. so mexico city subway riders are jumping ducking the turnstiles. thousands are saying it's their way to protest the fare hikes. officials are saying the hikes are needed to improve service and maintenance. also, another mexican protest. this one involving teachers versus parents. and it got ugly very, very quickly. teachers part of a union are fighting competency exams and merit-based promotions. the parents want them to take the test and give up some of their power. the results, voila, you're looking at it right there, violence. and after fighting it, the big question is, tesla finally
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coming around to the traditional dealership model? phil lebeau is in chicago. phil? >> andrew, they're not entirely coming around to the idea of dealerships but this new facility in hyland park looks a lot like a dealership, feels a a. lot like a dealership. this is the new wave of selling the model s when "power lunch" returns. farmers presents: fifteen seconds of smart. so you want to drive more safely? stop eating. take deep breaths.
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boeing shares up, up, and away today. the world's biggest plane maker getting a $7 billion order from cafe pacific for 7 779x jets. first in asia to sign up for the fu planes. boeing shares have had a great run this year. you can see it, up more than 80 80% in 2013. >> that's a nice share. tesla shares driving higher. electric carmaker has been in a big battle with traditional dealerships. but now it may be taking a step closer towards that very model. cnbc's phil lebeau is outside that dealership, not a dealership, quasi dealership maybe, phil, in chicago? >> yes, it's a baby step, sue. at the end of the day, tesla will still do direct sales to customers. this center, we show some video here. this is really looks very much like a dealership. it's just down the road from dealership row here in hyland park.
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it has a service center. it has a delivery center. tesla has sold 14,500 model s cars in north america this year. it increasingly is opening up service centers/showrooms like this. i get this question all the time. where do they sell the most teslas? california. the biggest market in the u.s. illinois and florida, new jersey, those are the other big markets for sales of the model s. now they have service centers or galleries in the united states, there are only three states that have banned sales, "the call," arizona, maryland. we should point out the ohio dealers have sued them to stop direct sales in ohio and look at shares of tesla again. sue, you mentioned earlier, shares are moving higher, finally back up over that 140 market that a lot of people have been watching. that's the story from here in hyland park. back to you. >> 2% gain today alone. it's been a volatile one. right now gold trying to rebound
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from earlier this week when it really took a drubing. it's up $10.30. colmax silver is down on the trading session. copper just a fractional move there. platinum is down just a tad. to the bond market now. what a week for rick santelli tracking the action in the interest rate futures, and the currencies. you do it all for us, ricky, over to you. >> it's been a terrific week if you love volatility and surprises. one of the surprises today, b flattening. you know, right now, five-year yield is up one basis point. ten-year down five. 30-year down eight. two day's best. you can see we're back into yesterday's range. it's all about spreads. look at twos versus tens. even a two-year rate popping. you can see flattening there. look at 5s to 30s, humongous flattening. today along close to 30 basis points in the last month. but the chart is any chart that
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has to do at the end pop you see this dlash/yen chart. it would be the same if it was euro/yen or pound/yen. though the swiss frank in front of it, nothing year 116. i went back. we haven't been at a 116 handle since 1990. 23-year high. tyler, back to you. >> all right. i'll take you, ricky. well, that chart really tells the story butte eautifully. canada's supreme court making a big move when it comes to prostitution north of the border. will the neighbor to the north be the next amsterdam? and we haven't skated in bauer's new hockey gear but they say it will revolutionize your game, whether you're playing in the nhl, the olympics or in the over-40 league. this stuff will amaze you. the ceo joins us after a break. americans take care of business.
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welcome back to "power lunch." the company will buy beechcraft aircraft for nearly $1.4 billion. beechcraft is the company behind big brands like king air and beechcraft bonanza. also with regard to the company that's possibly buying them, textron. the owners of the cessna small aircraft brand. back over to you. >> 8% gain. thanks, dom. all week as you probably know we've counted down the top stories of year. so here on "power lunch" here's the number one story of the 2013. >> "power lunch top stories of twin 2013." number one, the store roift year, stocks, bonds, and ben bernanke. >> the dow has indeed hit a new all-time high mark. >> the animation says it all for the first time since 2007. we have a new s&p all-time high. >> and we pick it up right where scott and the giang left it.
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the s&p hitting all-time highs today above 1600. >> and now we're on the other animation because the dow hitting a new all-time high today as well. crossing that 15,000 mark for the first time ever. >> yields back below the 3% mark as traders question whether the fed might indeed pair its bond purchases soon. >> i can't remember a more eagerly anticipated, maybe more important fed decision. >> we have a record-breaking day down here, ty. the dow and s&p both crossing big, big numbers. 16,000 for the dow. >> the federal reserve announcing a $10 billion taper. $5 million each a mortgage backed securities and treasuries. >> what a year. and it ain't over yet. we also have a 90-point gain in the dow jones industrial average. so what better transition to bob pisani, another run, another record for the dow today, bob. >> it's continuing, sue. new highs, strong breadth, heavy
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volume. great week. everything up. take a look t the major sectors. dow is leading it. everything the up 2.5% to 3%. seconders today, all of the biotech names, home building names, airlines are all moving, as well. even oil stocks. that's the xop down on the bottom. what's not working? well, emerging markets still can't get any energy. that's because of the fed and the coal miners. that's getting rea rebalanced today. you see that gdx. retail stocks today. zumiez upgraded to buy over at merrill lynch. let's get over to the nasdaq right now. sheila is following the biggest mo movers over there. sheila? >> we are up about a percent here on the tech heavy index. some of the big movers. blackber blackberry, of course, shares are continuing to soar after positive comments from john chen
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and apple. seeing a nice lift at the nasdaq. some positive comments coming up from research as raymond james on the state of ipads and tablets showing that ipad momentum is not going down. sea gate technology is getting a price target upgrade. back to you. >> thank you for that. we all know scott wapner is the host of "fast money halftime report" interviewing. before he took on that role though he was cnbc sports business reporter and he's always been a washington capitals fan. scott scored an interview with the ceo of bauer 48 days before the olympics begin. amazing new hockey system. the future of ice skates and it's all very light from what i am told. >> it is. and revolutionary at least they think and they hope it's going to be ground breaking as well. andrew, thanks. the new system is called od-1-n. skates like the one use see right there on your screen are now reportedly the lightest hockey skates ever made.
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then there's new body suit. it's designed to help a player get wherever he or she needs to go. step faster than they could before. then there is the new goalie pads. lighter than ever. that's new york rangers goalie henrik lundqvist trying them out. kevin davis is the ceo of bauer. he's with us today. kevin, good to talk with you. >> hey, scott, how are you? >> thanks. you call this game changing technology. i certainly hope it is for ovechkin and backstrom as i'm a fan of the capitals. what is it really going to do for these elite athletes? >> i tell you, historically when we brought out new gear, you know, you would be measuring changes in weight in terms of grams. you would be changes in performance, getting to the puck in terms of inches faster. this gear that we're bringing out now we're measuring differences in weight in pounds, we're measuring distances, blue line to blue line being able to get there a foot sooner than your competitor with our new body suit design. it's truly a game-changing pieces of technology.
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>> you've custom designed it thus far for a handful of the elite of the elite. alex ovechkin and backstrom of the capitals, jeru of the flyers and lundqvist for the hometown rangers here. is it going to be more widely available to all nhl players and for that matter the recreational kid or adult who plays at home? >> yeah, we certainly hope so. i mean, traditionally when we bring out technologies like this we start with the most elite athletes, as you mentioned. and we'll take that technology down to every price point, to every age level over time. oh we fully expect everyone to be able to experience this kind of fantastic performance improvement. >> you know,i'm wondering. as you sort of introduce new advancements, it makes me think back, especially around olympic time and we're all excited about the nbc family in sochi, the speedo swimsuit flap.
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there was a thought it was giving some athletes a competitive advantage over others. is there anything to worry about here is it's only going to be rolled out to a select few of these athletes? >> i don't think so. i mean, i think certainly it is our hope that that -- that every piece of equipment that we bring to the market brings a competitive advantage. and when you're doing ground-breaking things like this, it's hard -- and each of these products are truly custom made, especially the body suit, as an example that you saw, that's truly custom made for every single player, we just wouldn't have the time and the scale to be able to do this across teams. we certainly hope it's a competitive advantage for some and that's why these guys are choosing to wear it. >> i think we're watching nicholas backstrom skate right there. the skates are school. how much do they cost? >> they're not for retail sale. so this is technology again we sort of rolled out with an example in the auto industry
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like the concept car for hockey gear. difference here is that, you know, the best drivers in the world, hockey players in our case, are using the concept cars. >> sure. if they ever do come to market for retail, what are we talking? i don't know what a pair of these things go for now. $500 or upwards of that? >> our current top of the line skate retails for just about $900. >> wow. wow. all right. >> but you get two of them. >> that's true. good point. kevin, it's good to talk to you. thanks for spending time with us today. >> thank you very much. >> all right. good luck with the new project. kevin davis is the ceo of bauer. >> the answer to that question is expensive. that's a answer. >> yes. >> it is indeed. >> very expensive. >> very expensive. thanks. >> $900 now. >> can you imagine what they will be. from the ice to a hot story up in canada. the supreme court in ottawa striking down anti-prostitution laws.
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omar is with ctb in ottawa. omar, what's the bottom line? what can you tell us about what this decision actually means? >> the bottom line is that basically the court, the highest court in the land has sided with sex workers saying the laws are so restrictive they basically violate their charter rights to tree freeh come and to liberty and security. basically what the court has said that is that parliament has a year to we redraw the map, come up with new laws. if they can't do that, or if they don't want to do that, then basically those three provisionses that were in the criminal code will be struck down after a year. >> what is the likelihood that they would refuse to do that though? i mean, i would assume that they would try and restructure it in a way that would work. >> yeah, you know, to some degree it's a bit of a political mine field obviously. the legal machine is long. it's involved. it's arduous. to pick up on this is a major
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responsibility. it's a conservative government. the base tends to be more conservative. it would be political suicide to just step back from it and say we're not tumping it. the likelihood is that they will pick this up but it is a long process and, again, they have a year in which to do this. if they can't, then, of course, those laws are struck down. most people are saying, look, this is a government that will pick it up, will try to rewrite it. again, they're not obligated to, technically speaking. >> omar, thank you for much for explaining it to us. appreciate it. andrew, down to you in. >> okay. 2013 was the year of the activists. so what did boors learn this year? change the way they deal with outside next year? ackman, icahn, please, listen up. [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day.
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question of the day. 13% say yes, i think we are back for good. 50% say we're on the incline but we have a long way to go. 37% say i think it's going to get worse again. let's hope not, andrew, right? >> we can only hope. we can only hope. >> it has been quite a year for activist investors. today marks the one-year anniversary when hedge fund tight end bill ackman explained why he was short herba life and it set off a fire storm of news on that stock. forced more agitators next year. here for a long ahead is mary thompson and josh lipton. mary, what are we expecting in terms of how boards of directors are going to behave in 2014 in terms of either deciding to bring these folks under the tent earlier or to, say, talk to the hand? >> you know, andrew, i think what we're going to see next year is a trend, a continuation of the trend we saw next year. incleesingly boards are working with activists. first and foremost, the war chest that these investors have,
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second of all, there's an increase of, i guess, support from other institutional investor for the activists in large part because the other institutional investors say, you know what, you have a long-term interest in this company. they're not just looking for a quick gain. they do a lot of research. they're very thoughtful in their approach. lastly, board directors are more aptly to engage with them because they're more protected than they used to be. it probably behooves them to, again, engage with them as opposed to slamming the door in their face. >> josh, you're in the valley. a lot of companies have different classes of shares so they're a little more protected but there are some issues that people are focusing on there. >> yeah, i think, andrew, one issue that's brought up a lot here is the diversity of boardrooms in silicon valley. i think when you imagine silicon valley you think of the innovation, the dynamic thinking. there's a lot of people who work around live here. who define themselves as politically progressive.
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another issue here in silicon valley is when you look at the boards they often don't seem to reflect their kusz hers or country. you can look at apple or yahoo! for example. it's not to pick on those two. it's something you see across the valley. in their defense, listen, they do make steps to address the issue. apple, tim cook has talked a lot about equality and diversity. apple has a woman on its board of directors. there's a woman running the online retail stores. yahoo! as well. listen, they've taken steps. tell cnbc to address the size and composition of their board. that might happen next year. it's an issue here and the question is why do so many board in silicon valley look like that. i talked to jeff over at yale and he said it might be because so many people in the valley define themselves as politically progressive. they don't think of themselves having prinlg diss which, in fact, of course, they have devices just like all of us. >> go ahead, mary. >> i was at a forum that's looking to promote women on the boards of directors. a number of the executives there, including ceos like jeff
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imme immelt, they say have to look below that. typically board of directors are made up of former ceos. they say there aren't enough women who are ceos. increasingly companies are looking below that level to look at people who are probably board ready but have yet to attain that level. that should push more women on the board. >> it is a debate not going away. my thanks to mary and josh. sue, over to you. >> thanks, andrew. the administration is making a last-minute policy shift to obama care. it's a hard-ship exemption that will allow for catastrophic exemption plans to those with canceled plans. plus, the president is expected to hold a news conference at the top of the hour. that of course you will see in its entirety on "street signs" straight ahead 2:00 p.m. eastern time. tdd#: 1-800-345-2550 trading inspires your life.
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obama administration making a last-minute policy shift of the care act. kathleen sebelius saying, quote, there may be a small number of consumers who are having difficulty finding an acceptable replacement in the marketplace. these people will have the option to buy catastrophic
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insurance plans. bertha coombs joins us. it seems as though this whole system, we talked about the problems that the whole system has had. dan, even yesterday when they were trying to announce some of these changes, there were communications errors and issues on top of the fact that they couldn't execute. >> there was a big failure if you want to call that. yesterday there was a white house call that was delayed because they didn't schedule the number. they didn't reserve the number for the call at 2:00. that was delayed for 45 minutes. and then a big dog and pony show where they mentioned none of the big changes that were to come down the pike a couple hours later. then the news traveled out piecemeal. the news did break, it wasn't done in a coherent fashion. it wasn't the secretary coming in saying it was a big huge announcement. >> were you surprises? >> nothing surprises me anymore with these delays. one of my editors the other day saying do you expect something is going to be delayed? i said, i don't know. but nothing will surprise me. nothing surprises me now. nothing will surprise me this
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afternoon. >> all right. well, at 2:00 once again we have that news conference. bertha, we also got news that the healthcare.gov went down for a while today. you're in the cue, so to speak. tell us. >> this morning overnight they always do maintenance and apparently there was an error that triggered a problem this morning. people were starting to go on and it put you in that cueing system that basically reserves your spot in line and comes back and tells you, hey, come on back, you can come back in. they said that this was an error. obviously unscheduled for this to happen during the day. but it just tells you how difficult it is as you're getting this huge surge of volume right now likely with people who are deciding at the last minute that they do want to sign up for a plan for january 1st and they have until midnight on monday. i warn you if you want to sign up do not wait until the very last minute. you want to get in there and get that going. >> with the holidays, everybody is probably is waiting to the last minute or, dan, waking up and saying, you know, i didn't get that done yet and i need to do it now.
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and that may tax the system even more. >> definitely a problem with, you know, particularly the system is not running it's going to tax it. but i spoke to someone today, brian haley of jackson and hewitt and he said these delays announced last night are adding yet more stress, yet more confusion, at a time when people are extremely stressed by the holiday and when they have the lowest number -- smallest amount of money to spend. they might not be apt to sign up. >> thanks for keeping on top of it. we appreciate it. >> thank you. >> all right. that does it for us on "power lunch." have a wonderful holiday because i'm off next week. andrew, it was a pleasure. >> it was a pleasure. loved it. thank you, sue. stay tuned to cnbc. president obama is going to be holding a news conference from the white house in just a couple minutes. they're setting all of that up right now. it is all ahead on "street signs." (announcer) at scottrade, our clients trade and invest
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and you are looking at a li life shot of the white house press briefing room. the president will hold what is likely his final news conference of the entire year. i think it's fair to say that the president will have a little bit to tout. we have a record high stock market, right? we have at least some of the
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computer glitches from the afford anlable care act cleared up. strong gdp number. good strong creation. likely the tone of the news conference will be on the optimistic side. i think you're right. to talk about what is happening with his approval ratings and there are a couple of controversies that many do come to mind like the nsa and the health care problem and the glitches that are surrounding that. i do have the numbers here. nbc news and wall street journal poll in december said 43% of americans approve of the job that he is doing as president. 54% are disapproving. that is the highest approval rating of his presidency so far. no doubt those are going to be a couple topics. we will get some questioning today. >> given the low numbers because the stock market set a record high and we've been clear in saying we acknowledge the stock market as certainly not the overall american economy. but you've had an economy that has clearly gotten better. i wouldn't be surprised if the president, certainly i would if i was the president, tout the positives, right?

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