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tv   Street Signs  CNBC  December 27, 2013 2:00pm-3:01pm EST

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also been going strongp. tyler $100 a barrel for oil. energies a bright spot. >> much more busy day than we thought. think about blackberry, how far it rose. >> what a year. >> how precipitous its declined. everybody have a great new year. taking the rest of the year off. i'll see you january 2nd. >> "street signs" begins right now. hello, everybody. happy friday. the stock market has been like a fortress this year, can it keep repelling arrows? some commodities were taken out the back to the slaughter house, will they make a comeback next year? december is the best time to buy a car, but which car will get you the best resale value? forget big brother it is bits brother. how your e-reader could be reading you. we welcome dominic chu back to the show. great to have you with us today. >> always a pleasure to be here,
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mandy. and in stock land we want to point out pretty flattish today, but you can't blame traders. after all it was six straight days of gains for the dow if we could be positive it would make it seven. we have 83 new 52-week highs in the s&p 500 and among the stocks making record highs, high-end jeweler tiffany and fedex and ups as they shrug off that christmas shipping snafu. let's get to our market reporter mary thompson at the nyse, and rick santelli at the cme group in chicago. mary you're up first. >> as you mentioned dominic, the market's record run at risk, traders say no surprise, little overbought coming into today's session given the runs, six straight records for the dow industrial which closed yesterday at its 50th record high of the year. today what we're seeing is a little rotation out of some of the year's best performers. consumer discretionary leading the decline in the s&p 500 and as you take a look at the leading decliners in the
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consumer discretionary group, it is netflix, also trip adviser. we're seeing best buy decline as well as game stop. and three out of the four, they've posted triple digit gains so far this year. so some investors locking in some of those gains in that session. we want to talk about crude oil because yesterday we were talking about the move to 3% on the ten year. that higher yield expected to disrupt the market's rally. today energy is playing the spoiler because crude oil climbed above $100 a barrel. may not be a concern immediately but taking the wind out of the sails of a couple sectors including the the airline stocks getting hit. keep in mind fuel is one of the biggest costs to airlines so that's putting pressure on that group in today's session. energy, of course, as you might imagine is responding favorably to the news that crude is at $100 a barrel. back to you. >> rick, that's the stock story. how about on your side of things? what's going on in bond land,
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currency land, fixed income. you're on it. >> always. always. if you look at a year to date chart of tens we're up 125 basis points from 175 to 3%. doesn't seem to have taken the steam out of stocks but we don't know where stocks would be if that wasn't the case. should be a big issue in 2014. foreign exchange look at the dollar index, closed below 80, end of last year little above 80. isn't qe supposed to be bad for the dollar? it is, i can prove it, the dollar yen, around 87 at the end of last year, it's 105 now. the dollar up 20% or the yen down 20% against the dollar. it's because their qe is bigger. it's all relative, dom back to you. >> everything is always relative. thank you very much. the stock market is right now kind of like a fortress, nothing seems to break through. we're near all-time highs despite as we've been talking about the higher rates. the fed starting to taper and a lot of other stuff thrown in as well like a struggling eu, grid
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lock in washington, tension in the middle east, we've seen it. joining us four star fund manager barry james and wells fargo scott rehn. great to have you with us. happy friday to you. barry what gives, and can we keep moving higher despite all these things going into next year? >> well, we certainly can. once you have momentum like this, you get a plethora of people jumping on board. we see that with the investor enthusiasm. there are four bulls for every one bear. and that's a very rare occurrence and until really it starts to reissers ha s ts to rn head higher. the last time we saw this many bulls was in 2007. and we all know what happened in 2007. >> so you think we're at an inflection point? >> we're very, very close. we're going to have a pretty sizable correction is what we believe because of this excess enthusiasm. margin debt is at an extremely
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high levels. you also see that valuations aren't at super low levels. it if you look at the typical stock in the s&p it has a price earnings of 34. not the 17 on the index itself. we've got some things in place in terms of the valuations and in terms of volatility being so very low. in fact, this year, we only had one decline that was even close to 6%. that only happens one in every ten years. we're going to have more volatility next year. we're close but we would say take a little off the table, not abandon your positions because it can still go higher. >> bah humbug barry, that's what i have to say. i'm not a cheerleader but it can't be all that negative, right, scott? >> dom, i tell you, i kind of like the valuations i also think you're starting to see people jump in. this whole 2013 people started to get more and more interested in the market but you really didn't see much chasing.
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everybody's looking for the pullback when you see that, typically the market trades higher. i think we're still really riding on that train. so i think we are going to have some type of correction. it's very hard to time. you know, last time i was on with mandy and brian, you know, i said i'm hoping for a correction because i am because i think it's a buying opportunity. but i think for right now, the momentum is up, people are starting to jump on the train, and usually when that happens, and valuations are reasonable, you have a little bit to go before you see that pullback. >> i see you've got for the end of 2014, you've got a target of like 1850 to 1900. if we take the 1850 number for a second that's only ten points higher than where we are now. >> that's right, mandy. when we set that target about four months ago, you know, we were looking for a reasonable year in 2014. we still are. i think for us, and usually we'll give ourself one adjustment. you know, we may be a little conservative. we have 113.50 number out there
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for the -- 113.50 for our earnings estimate for the s&p 500. that's way below the consensus which i think is way too high. so i think we may need to come up a lit bit on our number. the consensus needs to come down. that will maybe put us up a little higher. certainly this 2014 is going to be nothing like at least based on our analysis, what we've seen in 2013. but i still think you can see some reasonable gains and i would agree with barry, you're going to see some opportunities to buy stocks in 2014. >> so scott, that's the macro strategist take. barry, you're a stock picker and have to do it for a living. what is the play in 2014? what stocks are you looking to buy given your thesis? >> well, two things, two trends we think. energy prices will be coming down with the flow coming up in mexico and of course what's here and so we think that things that can play off of that, republic services, while it's a waste, noncyclical play, it has the things we like. it's cheap, good earnings and
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the price has been in a nice rising pattern. but the other thing they're doing converting to natural gas which could be a big money saver for them. another one we like that's kind of in the same field in the sense of making some changes from an energy component are deer. they're adding propane tanks to a lot of their equipment which could be very positive. the last one is excerin which they have come up with a way to save money making the conversion from gas to liquified natural gas and that's going to make them a major player in the field we think all three of those will hold up well in spite of any difficulties and make good money in 2014. >> okay. quickly recap those, extern holdings, deer and republic services because they will always, always be trash. barry and scott, thank you very much for joining us. have a great 2014. see you then. >> same to you guys. thanks. one stock that we're watching closely is target. target, whatever you want to call it, a little more than an
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hour ago the company released a statement confirming pin numbers were taken as part of the black friday security breach the stock you can see is down on the news on this particular bid here. target did stress that the numbers were safe because they remained encrypted when stolen. we checked with cyber security expert mark rash who tells "street signs" there are 10,000 possible combinations of four digit pin numbers but most can be guessed with 13 try. scary there. he says all it takes is one craft yey crook to get the seedy to compare encrypted pins with the stolen pins themselves. coming up think no one knows what you're reading on that kindle. guess why e-books may start reading you. plus, which commodities will crush it in 2014. cashing in on corn, crude, and cold hard gold. >> and the grinch did not steal christmas this year. delivery delayses did. should amazon cut out the middle
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man? "street signs" is back after the break with the debate. don't go away. every dollar america lent us. and gave america back a profit. we're here to keep our promises. to help you realize a better tomorrow. from the families of aig, happy holidays. [ male announcer ] this december, experience the gift of exacting precision and some of the best offers of the year
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welcome back to welcome back to "street signs." let's take a look around the globe at the emerging markets. no, not the brits. think mints. we're talking mexico, indonesia, nigeria and turkey. yeah, mint. these are some of the markets that economists are saying will break out next year. most of these stock markets are flat this year, but keep an eye
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on those mints going into 2014. the tea in mint is turkey, stocks have taken a nose dive in recent weeks. riot police fired water condition kan nons and plastic bull its to break up protests. one prosecutor said he was removed from investigating fraud and moments ago the turkish military said it doesn't want to get involved in this crisis. turkey's currency the lira has fallen to a new low against the dollar in the wake of this crisis. >> commodities and other markets that investors are keeping their radar on for next year because one big money manager is saying his favorite market going into 2014 is commodity. joining us to give us their 2014 predictions, jim euro, contributor and director of tj institutional services and jeff kilburg, the killer, cnbc contributor and kkm financial founder. bring the heat. let's take a look -- >> all right. >> we can't go through all the
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commodities, so many out there, hard, soft, you name it. look at corn, gold and crude and see how they perform this year. we have a little chart up there for you. corn, down 30%. gold, down 2%. oil, up by 9%. let's take a look at your numbers. jeff, you firstp. where do you see corn next year? >> corn next year, we really see a popular back above $5. this disparity, dislocation between commodity prices and equity prices. something has to give when you see commodities so hard, equities up so hard we are seeing movement. corn is underscored and you will see it move up due to the fact that there's global demand. people are getting hungrier and more people to feed. simple, simple as that. >> when you look at the corn story it's a two-year story. in 2012, it was all about massive drought and corn rallied hard. last year was a relatively good year for the growers so the markets swung unnaturally to the downside. markets tend to overreact. being down 30% is a heck of a
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pounding it took. i think it rallies off for the same reasons jeff does. nothing has change at all about the demand story. demand is increasing around the globe. >> jim, let's -- >> so 530ish. >> let's talk about this, from the soft to the hard. talking gold. i cannot find anybody who is bullish on gold. tell me one way or the other what's the call here, jim sp. >> and you know, dominic, i hate one someone says something like that when everybody is one side you're supposed to go the other way. i can't because the fundamental story is still the same and that's that we are beginning to taper, moving more towards tightening, while the boj and the ecb still remains so accommodative. i don't think that story has changed. gold trades lower. only thing to change that forget the whole taper thing. i don't see that happening. >> dom, saying you can't find bulls out there, killer you're a bit of a bull on gold. >> it's killer, does he count. >> i could be your guy here. let me give him a shakeup here.
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what has the fed done? added three strong strategy. wanted unemployment rate to come down, substantial job improvement and the day of dependency and the third thing they have not accomplished is inflation. what will they do? maybe stop paying money on excess reserves. gold is oversold there. has been crushed no doubt about it. i think you will see gold go back up to the 1525. that was that level in april where we broke hard from. technically we want to go back up there. i love being a lone wolf on this if iuro is bearish i'm bullish it's going up. >> last but not least is oil. what about you, killer, on crude? >> you know, crude is interesting. we have this geopolitical undercurrent, all year. it's been sensitive. we saw it spike. right now 3% gain due to the south sudan situation. i think it's all about the domestic supply. we have seen a surge in u.s. domestic crude oil production. the largest in two decades. the real wild card and why i see crude oil going lower is iran. iran has had the sanctions. now in the six months trial basis.
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they are going to adhere to those due to the fact it's the mighty dollar. and you will see that they own 10% of proven oil reserves in the world. when that comes to fruition, comes to the market you should see an $80 print in crude in 2014. >> to put a finer point on what jeff says, not just dough messic supply story. we're moving toward efficiency. the first real time we've done that in a long time. the fleet has been old as it turns over the vehicles are more efficient. i agree that story will outweigh the middle east premium. remember with crude, all the time it trades with a little bit of the potential for some, you know, something to go off in the middle east and all of a sudden scare you. you never want to be short crude and sleep too soundly at night. but i think first it goes to 102 on the sudan thing but then down to the low 90s. >> look at that we can agree, mandy. >> hug it out, boys. hug it out. >> we certainly will. we always do. >> all right. >> thanks, mandy, dom. >> all right. well, we've got our 2014 crystal ball so let's talk fuel on the lines of the oil discussion. how much should you expect to
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pay for gasoline next year. joining us is chief oil analyst at gas buddy.com tom cloza and i have to say i use your app, the gas buddy app, because i have this obsessive thing about trying to find the lowest gas possible. it's been nice, i've been spending more money paying less on gas. does it continue into next year? >> i think it does. i think gasoline weather will be violent next year. i agree with the two gentlemen there, as much as i hate to agree with wall streeters, we'll see a lot of variability. we'll start the year with exes sessive numbers above -- excessive numbers above $100 a barrel for crude and go lower. gasoline we'll started where we started last year. we'll have a spike. markets always overreact another way of saying they always get sloppy drunk, but we're not going to see the high highs we've seen in the last few years. and i think we'll see lower lows, particularly in the second half of the year. >> seeing more demand for motor fuel which is quite interesting because we were chatting during the break saying that youngsters
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these days, tend to go more for things like technology and gadgets as opposed to wanting a car. >> the demographics are working against fuel demand in this country. the largest age group that's growing is 55 and over and younger people aren't necessarily that enthusiastic about getting their cars. we will have cafe standards later this decade 36.5 miles per gallon. as much as you see the add for the trucks and the guy delivering a calf in new jersey we deliver veal, that's about it, but as much as you see that we're going to have much more sensible cars and use less and produce more. that's a great recipe. >> that's not even factoring by the way the fact that we have electric cars constantly coming to market all the time. how much of that macro demand story will affect the secular growth of gasoline, oil, fossil fuels. can we expect them to start drifting lower in the coming five years, ten years from now? >> a little bit. gasoline will be the king. diesel will probably see double
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of the percentage but it's a small percentage now, probably about 2.7% of the vehicle fleet, the light vehicle fleet. electric it all comes down to coal. if you can be perceived as driving a cool car, lower end tesla if they get to those pricing points, electric could take off. without it there's probably just a little small niche this decade for that. >> got to leave it there. tom, thank you very much for joining us. >> take care. >> enjoy the holidays. still ahead, is twitter too hot to handle? the stock is on fire, but could it burn your portfolio? >> good question. also a tesla twosome talking about electric cars. buyers are digging a used set of wheels but could detroit be eyes an electric acquisition. approved to treat ed and symptoms of bph
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takeell, well, take a look at stocks right now because i've got to report that there's a whole lot of nothing going on right now. you can see the dow industrials down about a point. the nasdaq leading the declines if you will down about .2%. the s&p down again less than a point. so again, we're working on what could be seven straight days of gains for the dow, but right now, traders are perhaps just taking a break as we head towards the -- >> exhausted nearly 30% gain. >> nothing wrong with catching
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your breath. >> nasdaq up 30% this year. let's have a break before we keep on going. welcome back. let's take a look at shares of twitter taking a whack today to the tune of 7% but soaring since it began trading just last month. our own julia boorstin has been tracking the trades on twitter. is this a case of too far too fast, julia? >> that seems to be the story, mandy. twitter shares rallied about 40% in just two weeks before today on virtually no news. rising on momentum and aggressive bets that the company will grow far more quickly than expected. twitter shares have grown more than 150%. though many say with zero profits so far, twitter can't possibly justify its $40 billion valuation. its appeal to investors is the fact it's one of the few fast growing start-ups investors are scrambling for a piece of for exposure for significant growth. today investors are taking profits, the stock down over % on the heels of a mcqueary
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downgrade to underperform saying the stock has gone too far too fa and will take time in the hiring of a lot of a lot of people for the company to take advantage of its opportunities. it's worth noting that twitter shares are in quite low supply. ipo price just 70 million or 13% of its nearly 550 million shares outstanding. as of mid december, 24 million of those shares were held short. representing a significant bet against the stock continuing to move higher. we saw quadruple the average trading volume yesterday, double the average trading volume today, as shorts move to cover their position. meanwhile, since twitter's ipo facebook shares have rallied but far less, up about 18% since then. and facebook is also pulling back today in part on concerns raised by a uk quote global social media impact study saying for older teens in the uk, facebook is, quote, basically dead and buried. they're now looking at more to the twitter. this study says.
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so a lot will be revealed when we see both facebook and twitter's fourth-quarter results and when twitter's first period expires february 15th. dom? >> thanks very much. let's talk about this. what's behind twitter's rise and can it actually last? joining us is daniel, hudson square research principal and our own jon fortt to join the discussion. overall, jon, maybe start with you quickly, set it up for us. twitter is it worth the valuation at these levels? >> probably not. i think we can all see that. is it worth it to try to bet against twitter at these levels if because i mean you look at facebook, it was worth more than it was trading for several months but it took a long time for the stock to catch up with the reality there. the opposite could happen with twitter. dangerous territory especially because who's going up against twitter? maybe instagram, but they don't get the same kind of headlines twitter does. >> dan, you're not taking any chances. you say sell this baby?
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>> absolutely. i mean there's no possibility of justifying evaluation this high. there's no growth rate that can justify this. 930 times current, 350 times our number for next year's which is above the street but the reality is no one is looking at evaluation with twitter today. three other things people are looking at. one, short-term fundamentals should be strong. they have the seasonal momentum of the holidays which is their business and several tech related product launches in the quarter, like microsoft xbox which highly leveraged twitter to advertise that launch. and then you have sort of the longer term fundamentals which i personally think the jury is still out on. i think it will be easier for facebook to ad their next billion users, a mass market product -- >> dan -- >> for twitter to hit their first billion. >> how far would the stock have to fall before you think it's a compelling buy? >> a pretty long way. put it this way, facebook trades
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at 30 times, maybe 20 times next year. if twitter grew 3,100%, then their earnings multiple would be on par with facebook is today. by the way, google which is still the best internet advertising platform on the planet and growing only trades at a multiple of 14 times. these things converge and really our advice is sell the stock while you have the opportunity. if you bought the ipo shares, fantastic. you're up a lot. and now is a good time to sell before it happens. last thing i would point out is that momentum here is so strong, you have estimates so low. >> true, true, true. >> you have the amount of shares trading -- >> but -- >> so well, there's $700 billion -- >> dan, dan, dan. >> 70 million trading -- >> amazon and apple, people have been making the same argument against amazon for whats seems like years now. it hasn't come down. apple, a lot of people thought that it couldn't fall.
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it did. the fundamentals said that it shouldn't have fallen as far as it did. it did anyways coming back now. how do you know the same thing won't happen with twitter? >> i mean, it might fall or might not fall like amazon? point out amazon for a long time, amazon actually, you know, kind of was stagnant as a stock. even as they continued to grow. people doubted the ability to generate cash flow like today. amazon has a relatively lofty valuation at 30 times given how thin their overall margins are. that's still well off of where twitter is. so there's no obvious catalyst in the stock. like i say they'll likely beat very, very well banker estimates for the quarter but come next may and june when the other 90% of the stock comes up available to trade, you couple that with perhaps a bad day in the market, seasonal slowdown in advertising and eventual change in format
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that twitter will have to make to go more mass audience that change in their business will pull back and be a bad day. if you love twitter you'll get another chance to buy it. >> dan, thank you for joining us. jon do not go anywhere. coming up next, 3d going [ inaudible ]. the high -tech stock a high flyr this year. is the stock done? >> why amazon should take over planes, trains and automobiles. we're back in just two minutes. ♪ most of america's energy comes from right here at home. take the energy quiz. energy lives here.
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. >> welcome back, . welcome back, everybody. let's do street talk now starting with our first stock, disney trading at all-time highs. which goes all the way back to its history from where was it listed 1956. >> this is a big one because they're freshening up the board. the guy at twitter now an independent director at disney. this is again bringing expertise in new media to perhaps older media. >> and talking of that, cbs trading at all-time highs as well. slightly down as we speak right now. >> content is king. cbs has a lot of great content and the reason why investors like them. they're putting out new product. when it comes down to it people
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will pay for this whether through a hulu or cable channel, cable company so the cbs pretty good run for the this company. >> molly corp trading higher, positive comments out on this stock. >> saying they could be a prime candidate for a joe bidjanuary . all the selling in december could go to buying to what happens in january. up about 14% for the rare earths mineral. >> we were talking about tech strong. >> yeah. >> the maker of cessna. >> the possibility of a deal. >> it's official. >> $1.4 billion techstron will buy beechcraft take them out of bankruptcy. this stock up huge on the first day, techstrong the deal was rumored and reported on. >> a wild week for tech company 3d systems. shares were up about 5% on monday, down ons tuesday, up 7 % yesterday and down today. with shares up more than 150% so far this year, though, can this 3d printer mint money for your portfolio? let's start talking numbers.
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on the technologies ryan with shavers investment research and fundamentals jeff with bell coin. ryan, what is your take on the 3d systems chart first up? >> sure. right here, mandy, i do have concerns near term. we know the stock has had a great run, good momentum name. look at a longer term chart here. the shares are up 100 percent from october. we like to look at the nice upward trending 200 day moving average. the support earliers this year, 75% above the 200 day moving average. a name i like longer term but near it term i would rather have a pullback consolidation. where do you want to buy now? look at the next chart, shorter term chart, 80 level is a big area. resistance last month and the breakout this month and a spike higher up to 95 or so today. now maybe a pullback, back to the 80 level which was resistance before, could be support now, more of a pullback
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of the moving averages. that's where i think a good entry could come from from a risk/reward point of view. >> in your experience what does it mean if a tech stock trades in such a volatile way as these 3d stocks have. >> i mean we've seen this before, right. we've seen it in so many stocks. they've moved tremendously. you have to make a decision, are you in this for the long haul. if you're in it for the long haul you have to stick with it. think about this industry. it is revolutionizing manufacturing businesses around the world. this is in a -- this market is under penetrated, it is in early phases of its growth stage. stick with the stocks. you also have to use really good risk management. >> okay. we've got to leave it there, boys. thank you for joining us and check out the on-line edition of talking numbers, and that's in partnership with yahoo! finance. >> well, on deck, delta deals, snap chat steal and the e-books have eyes. outrageous trifecta to close out your friday trade. >> and amazon shoppers got
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scrooged by the shippers this year. up next, our crazy idea for amazon to take the delivery wheel by itself. but first, big griffeth, what's coming up on "closing bell"? >> american express has contributed a lot to the dow's gains this year. the question is, can those shares keep charging higher? get that charging higher. >> what was i saying a moment ago? >> find out if the ipo market carries over into 2014 and which companies could rival the success of twitter. we'll discuss whether tomorrow's expiration of long-term jobless benefits could artificially lower the unemployment rate and give a false signal on the job market whether it's improving or not. all that and more, kelly and i look forward to seeing you at the top of the hour. the most important hour of the trading day is coming your way at the top of the hour on "closing bell." we'll see you then.
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oh... dear, i've dropped my tea into the boston harbor. huhh... i guess this party's over. geico. fifteen minutes could save you fifteen percent or more on car insurance. we're continuing to we're continuing to monitor the target story for you. as we have been reporting a little more than an hour ago the company released a statement confirming that pin numbers were taken as part of the black friday security breach. even though target stress the numbers are safe, target stock is down just slightly on the news. joining us on the cnbc news line is cyber security expert mark
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rash, part of the justice department. thank you very much for joining us today. you say that it is actually possible to decipher the stolen pins. how? >> well, that's right, mandy. if they've stolen the database of encrypted pin numbers these numbers are scrambled. what they do is get an entire data base of regular numbers, 0000 and they encrypt it and match the two encrypted numbers together and it's basically what's called a dictionary attack. encrypt every pin, run it against the pins you've stolen and tell you the real numbers. >> mark, basically we know that they've already stolen the numbers. we know they could figure out the pins. if you're not doing anything about it now you're betting they won't get to your card or decide they'll, you know, maybe use one of the other 40 million, right? >> they've broken into your house. it's a question of whether they're going to steal something or when? >> what makes this scary is, if you have the pin numbers, not only do you have the ability to make charges off of the card,
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but the ability to take money out of people's bank accounts. it's not as easy as i described it because you have to get the seed or encryption key used to encrypt the. i numbers there are ways to derive that as well. consumers worried should think about getting new debit cards if they've been informed by target they've been a victim. >> now, mark, another point you bring up here is difference between debit cards and credit cards. it's an important nuance here for a lot of our viewers, it really does speak to why credit card companies are advertising the way they do, right? because at least there, there's another layer of security just ins case of fraudulent charges, right? >> well, the big difference between debit and credit card numbers, one way debit card numbers are actually more secure because you have to have the card and the pin. buy gas at the gas station with a debit card you have to put a pin number in. if a pin number is compromised it lacks the security. the biggest difference if somebody steals your credit card
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number, you're not liable for any of the charges. you just say that's not me, and charge it back. on a debit card, you're also not liable, but during the interim, that money is gone from your account. so you may end up bouncing checks, you may end up incurring funds, incurring fees and the like, some of which can be recoverable but not necessarily all of them. >> regardless, it feels like if in doubt get a new card like you did, jon, about an hour ago. >> about an hour ago. it was a credit card. but, you know, they've got potentially the cvv there. they can do on-line buying. my wife and i share the same card number so i never know did she buy it, not buy it. i would be pulling my hair out if i had any over the next few months wondering -- >> better safe than sorry. >> extra vigilant. >> interesting concept. >> and there are problems there too because remember it's going to cost your bank 30 or $50 to reissue you that card and they had to have people working over christmas to reissue the cards. 40 million cards. that's a lot of money. and you have to remember that
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you have your bank card number, your credit card number, associated with your amazon account. >> right. >> paypal account and you have to go back and remember that and remember every account you have it associated with and reassociate it with your new number. >> we have to leave it there. security expert mark rash, thank you for joining us, the head of the justice department for cyber crime unit. ups and fedex say they're catching up to delivering the christmas gifts stranded in warehouses and trucks nationwide with amazon offering $20 gift cards as consolation it has some asking should amazon just control the distribution of its products from start to finish. what do you make of this? do you think they should take it over, cut out the middle man and do it themselves? >> amazon is like $180 billion company. >> yep. >> ups about $100 billion company. >> so -- >> fedex a $45 billion company. >> maybe they could buy fedex. >> fedex possibly. ups, the premium that they would have to pay would probably make it untenable. and maybe a smaller package
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delivery company, something regional they could take out. but i think what maybe you're seeing, bezos talking about drones might not want to take on old infrastructure, running on old fossil fuels he would have to revamp and then revolutionize. maybe looking to do this deal with the postal service or sunday delivery, pit some of the competitors against each other in that area and then think about the future. >> the drones aren't, according to bezos, going to be in mainstream use for another four or five years. >> right. >> testing phase, i think being dubbed at the moment, amazon prime air. >> they do this well. amazon has a history, a history of developing things products, new products, and launching them with some success. so if they want to vertically integrate, they may not look to go out and buy something. they may create it on their own is what you're saying? >> yeah. think about the age of the fleet that they'd be acquiring, maybe don't have the right number of people or trucks in the areas where they want to operate. maybe the labor contracts aren't
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what amazon would want. it could be tricky. so maybe what they do is they create some more competition among the existing players and then plan something for the future where they put their own stake in the game. >> we see. we will see. thank you very much for coming up. get in the car pool, because up next, an auto palooza. which hot wheels are your best buys for resale in 2014? >> we're taking on tesla. should just gm, tesla, ford, they all get together? we'll debate whether or not the big automakers should buy the company outright. that's up when we come back. and gave america back a profit. we're here to keep our promises. to help you realize a better tomorrow. from the families of aig, happy holidays.
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well, well, if you're in the market for a new set of wheels, now may be the time to buy. mandy, let's talk about the markets here. >> look at this, the dow, i know we're talking about just like a half point here, half point there, but it has popped its head back above water and i believe, dom, this would be its seventh straight day of gains. it's the best two-week gain for the dow since all the way back to june 2012, right? >> longest winning streak that the dow has had in terms of days in a row, is nine. so if we do get an up day today and op monday and tuesday we would tie the longest win streak for the dow so far this year.
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>> how about that. as you were saying december is historically the best month to buy a car because dealers are eager to make room for their new models to come in and fill up the showrooms before the end of the year. which 2014 cars have the best t resale value?rs have the best t kelly blue buck ranks fj cruiser and tacoma at the top, and jeep wrangler to the number three spot. >> joining us from kelly blue book is jack. i guess the reason we want to talk about in, why do toyota cars keep taking the top spot in the kbb resale value list? >> a couple of really good reasons. one is they build cars really well. they build their trucks really well and they last a long time. the other thing is, people understand that. they know about that. and their reputation for quality, their reputation for longevity helps them. >> what about tesla's resale
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value? >> it's an interesting case. all the electrics have a big challenge. the challenge is they have big, expensive batteries. when those batteries are done, they are done. they cost a lot to replace. we're still in a state of flux on electric cars. but their recent history in terms of residual value is not very strong. >> well, thank you very much for that, jack. again, toyota taking the top spots in their value list this time around. >> since we've been talking about tesla and resale value, there's a lot of buzz today about the possibility of either general motors or ford buying tesla next year. let's bring in charlie hughes from the cnbc news line, former ceo of mazda north america, jon fortt with us. charlie, do you think one of the big three buying tesla is a good buy? i've talked to some people and they've already said it's a crazy idea. >> when you said buzz, i'm thinking buzz bomb. i can't see how that could work
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out for any one of the three of them. >> well, what about the idea of elon musk as part of the package? the idea reminds me of steve jobs, pixar, disney taking that company out, they paid close to $8 billion for, which seemed very high at the time. but the innovation they've gotten out of it, the association with jobs was worth it. is there a price where it would be a good idea? >> well, i think if you look at elon musk, he's the reason why tesla exists and is a success at all. he does it because, i mean, is he driven. he's just like a missile. the way he does business, that doesn't meld very well with either the way ford or general motors does business. even though both of them have gone through huge overhauls of their cultures, they still tend to be hierarchical. i might add, a little bureaucratic. it would be like putting him in a straitjacket. >> here's the question then, if
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you look at gm, you look at ford, is this an acquisition they would want to make to help boost their innovation or their product offering, or should they just try to do it organically on their own? >> i think you have to take a step back and realize the companies that succeed in what we all admit is way -- overcompetitive, overserved market, i don't care if you're talking about cars or shaving cream, the ones that win have maniacal focus. that has to come from within, they believe in what they're doing. while it's okay to go out and examine other people's technology and if there's a technology play there, but in terms of building the company, you have to do it on your own these days. >> thank you for joining us. jon, you're joining us for "that's outrageous." while you were decking the hallings, you might have missed
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bringing the power of investments to people's lives. invested in the world. bny mellon. it's it's friday. that means another edition of "nae "that's outrageous." joining us is adam sank, welcome back to the show. and jon fortt is staying with us as well. first on the list is delta's steal of a deal. the booking website experienced, let's call it a glitch, and discounted, really discounted some round-trip tickets to
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nearly nothing. and thaey're honoring it as wel. >> they have to. i booked a trip to the mars recovery for $100. and knew they operated the mars rover. >> they're going to own up to it. you can fly to honolulu for that $85 ticket you bought. >> $200 to hawaii but $40 to l.a. >> they did have to honor them. i guess with all the 75% off e-mails floating around this time of year -- >> it was within the realm of reason. >> it's amazing how often it's happening. >> you wonder how often the opposite happens and they charge you 75% too much. >> it happens all the time but they don't say anything. >> the people that designed the obamacare website are now working for delta. >> oh, there you go. >> i can make that joke. >> next up, could e-books soon be reading us? apparently there are a few startup companies offering to collect data on how we actually read the content on our kindles and ipad.
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what really holds our attention the most. this is like spygate. do i flip to the end really quickly? do i read beginning to end? this is funny. >> they're spying on nerds now. i mean, who actually gets through a book anymore? >> i try to. >> one of these companies, i think it's called oyster, said they consider a book read if the reader reads 10%. which is like reading "gone with the wind" and putting it down before the war begins. >> people said people are most likely to read biographies instead of business titles, and erotica, the fastest of them all. >> 50 shades of grey". >> and authors will put all the sex at the end so people -- >> my concern, how much will that change the way writers write the book? do they write for the audience or they have their own personal mous musings? >> we had adventure books, turn
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to page 36. >> and yeah. >> finally, snapchat, slipping up. we should have seen this coming from a mile away because gibson security released a full scloegs you're note describing how easily private information, talking about phone numbers, et cetera, can be exploited from snapchat users. >> you mean it's not totally private after all? >> the interweb is not secure? >> breaking news. >> i've never heard of snapchat until today. sounds like a filthy website i shouldn't log onto at work. >> do you feel dirty right now? >> i always feel dirty. but what private information could they find out about us we're not volunteering sharing ourselves? my facebook friends know who i'm dating, what i've eaten today, my dog has eaten. what private facts are left? >> credit card numbers. >> i have no credit anyway -- >> just change your credit card. >> i should also say this, i believe, was before those multibillion offers came from facebook and reportedly google
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as well, so i wonder if they'll go differently about it. >> people have bugs here and there. >> jon and adam, thank you very much for joining us today. >> thanks for watching "street signs." >> have a great weekend, everybody. thank you for joining us, dom. >> always a pleasure. >> nice to have you in the chair. "closing bell" is next. welcome to the "closing bell." i'm kelly evans at the new york stock exchange. i can hard by believe i'm saying this, but stocks are down. >> it's a color with which we are not familiar with right now. some red out there. yes, the dow's six-day win streak is in jeopardy right now. but this last hour of trading has been volatile recently. so, you never know what's going to happen. art cashin was just telling me, it's a very slight bias to the upside, to the buy side right now. but

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