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tv   Street Signs  CNBC  January 17, 2014 2:00pm-3:01pm EST

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they happen to be among the most expensive dow stocks, visa, exxon, chevron, goldman sachs and remember the dow is a price weighted index. when a big high price stock goes up, it has much more power to move the index. that will do it for "power lunch." >> have a great weekend. "street signs" begins now. hello, world. we have two words for you. jessica alba. yep, the star is on "street signs" today. she has got a big new business and she is here to talk about it. hello, everybody. welcome to "street signs." your other big stories on this friday, can the dow end today higher for the year? stocks holding up despite some monster blowups this week. the big mystery around online shopping that we're trying to understand. and it may be the year of google glass as mandy says but we will look even farther ahead
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on what is next after that. >> i had some of the most ironic stats i have had in a long while. if it were not for visa and american express, the dow would be negative right now. together they are adding about 70 points to the dow. the irony here so much for the recent retail credit card breach, we will offer you a whole pile more in just a second's time. but this week could be a first for something because as we sit right now, the dow, the s&p and nasdaq could all finish higher for the week which would be the first time in 2014 that all three have posted a weekly gain at the same time. >> but we will lead with more credit card security news, speaking of visa. cybersecurity firm intel crawler saying it has uncovered six ongoing attacks at merchants across the country whose credit card processing systems are infected with the same kind of virus that was used to steal data from all of target's customers. for more on this, let's bring in intel crawler president dan clements. he joins us by phone.
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we got a lot of worried viewers and listeners out there. how severe now is the threat? >> well, we are still monitoring the threat. we see merchants that are vulnerable to what we call these p.o.s. attacks and it's quite a little niche that's been burrowed out in the underground. >> how did you find out? >> we monitor the underground hundreds of forums as far as what's going on with cybercrime and we noticed this niche popped up about a year ago, and a lot of these youngsters have zeroed in on -- >> when you say youngster, dan, i notice some of your reports suggested a 17-year-old had not only developed this malware but also apparently is selling it. if you're a criminal underworld businessman, i guess, you can buy this software. >> well, yeah, we believe that a 17-year-old was the original author of the malware, but his deal was to allow you to
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download the software and then if you got any credit cards, he would share the profits with you. >> when did you first find out about this? you said a moment ago, a year ago. does that mean you knew about this a year ago but didn't flag it, or this has been going on since a year ago? >> well, we saw the vulnerability about a year ago and we have been tracking a lot of the bad actors that have been doing this particular cybercrime so we knew about it a year ago. we have alerted law enforcement and some of the card associations. but you know, there's a lot of bad actors out there trying to get credit cards. >> amazing that this hasn't come to light yet. who exactly when you say these six retailers, who are they? >> well, we don't know exactly who they are because we didn't drill down on them. we saw their ip address and so we took that and forwarded it on to the authorities. they could be small merchants you but you never know. it could be a large retailer as well. >> would you use your credit or
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debit card at a store in america right now? >> always. we love shopping online. it's not going to stop how we do business. we just have to get a little smarter on our security. we need better antivirus, i.t. security guys need bigger budgets. >> yes, but we have seen, dan, i hear your point and it's good news for visa, mastercard and others, especially banks and consumers, but why are you so confident in using your credit or debit card given what you have just said and what we have heard in the news recently? >> well, you know, the credit card associations are doing the best they can as far as helping retailers lock down their security. but some bad guys are always going to get in. we are a major target as we have high limits on our credit cards. it's just the nature of the game. >> do you think we will see more of this to come? is this something that is easily stoppable now that we have actually learned of the malware, or is there something you think is going to create problems for a lot more retailers down the road? >> well, there are definitely more retailers in the sights of
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the bad boys. we see that right now. >> dan clements, we do appreciate you joining us on cnbc and "street signs." thank you very much. please keep us informed of any new developments you find out. it's great stuff. thank you. >> my pleasure. thank you. >> thank you very much. we have news about g.m., about the compensation for the new ceo we have been reporting on. let's get straight to phil lebeau in chicago. >> reporter: we just received a s.e.c. filing received from general motors and in that filing, her cash compensation for this year will be $1.6 million. she is eligible under the company's short term incentive plan to earn an additional $2.8 million this year but again, her cash compensation, that's not total compensation, that's just the cash compensation, for this year, her first year at ceo, will be $1.6 million. guys, back to you. >> thank you very much. as we can see, g.m. stock is currently down by 1.4%. somebody call sherlock because we have a mystery on our
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hands. despite online shopping continuing to gain share, even best buy's online sales are up more than 20%, the world's number one package delivery company, ups, issuing a profit warning for the last quarter. morgan brennan is here. it feels like we have two pieces of news and they do not seem to jibe. explain it to us. >> i prefer miss sherlock. two points here. first, shares are sliding after the shipping giant warned this morning that fourth quarter profit will be smaller than expected, just to put those numbers in focus, fourth quarter earnings per share up $1.25. we are also talking dropping full year 2013 adjusted earnings per share, that's $4.57, below the company's earlier guidance, putting all this in context, analysts have been calling for an eps of $1.43 in q-4, $4.76 for the full year. here's the reasons. we saw a shorter holiday season. we saw weather cutting in. one of the biggest issues, that onslaught of last minute orders
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tied to what ups calls quote, an unprecedented level of online shopping. so putting that number in perspective, biggest delivery day came six days later for ups than expected. and it was 13% higher than 2012's comparable busiest day. so they were caught somewhat unawares. also, it pushed up operating costs. they hired 30,000 more temporary workers last minute than planned, and when certain packages didn't get there on time, we saw refunded shipping costs. all of this weighing on q-4 results that will be coming out later this month. even so, i spoke to a couple analysts today. they think long term this is a blip on the longer term growth story for ups and ups is also confident that 2014 will be looking a lot better. >> morgan, thank you so much. quick note to ups' management. go to hallmark, buy a $4 calendar. get to figure out when thanksgiving and christmas are based. despite big brown's forecasting flop, your next guest remains bullish on the stock.
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jim, i'm poking fun a little at ups because we all know when the calendar is and when these holidays lay and where they are. are you buying ups' excuses here? >> yeah, i think it's an error of forecasting by the company. certainly a good problem to have when volumes and numbers come in higher than expected and you're not geared up for it but it is a problem. >> an error of forecasting? by a company this big? >> not a confidence boost. >> absolutely. absolutely. an error of a large magnitude. they disappointed a lot of customers, left a lot of money on the table as well. that's a disappointing to us as well as to shareholders but let's remember that trends are moving in the right direction. online sales are only going to keep moving up. i think the company will be better prepared next year to deal with the rush. >> not just an error of forecasting. just a complete error with regards to hiring and various other things. for example, they had to hire 30,000 more people than they originally planned. is there something going on with management that we should maybe be a little bit worried about here in terms of their credibility?
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>> well, i don't think so. i think that you compound the error of them not realizing when a rush is going to be because there are fewer days this year than last year, six fewer shopping days. customers reacted in a different way than they have in the past. instead of rushing to stores, they did more online shopping. online levels were more than triple what the company was expecting. and when that happens, you're left with poor staffing, trucks are not in the right places and it just compounds on itself. certainly it's an error. i think the company obviously is getting hit for it today. and i think they will be better geared for it for next holiday season. >> we see you are keeping a buy, price target ever $130 so you're not perturbed by this. we will see. thank you very much. one of our next guests says that ups would normally be a red flag but he's not worrying either. matt maily is joining us and fidelity investment's uri intemis. matt, tell us why you are not concerned. do you agree with what jim just
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said? >> yes. what brian said was so true. ridiculous they did know how many days were left to shop -- >> december 25th is what? >> it's absolutely crazy. but, however, the huge influx of online shopping, that is a problem. that is something that they obviously missed on. more understandable they missed that. the thing is, usually you would say boy, if ups is missing especially around the holidays, that's a major -- that means the shopping was way down and the consumers are retrenching but as they show from actual volume, it was better than expected. this seems to be more of a concern for ups than it is for the consumer overall. >> you're in good news and bad news, right? the good news is you're with us. thank you. the other good news is blended earnings growth, it's early, so far is about 7%. yay. the bad news is revenue growth, top line sales, actual cash, is only up about one half percent.
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are you concerned? >> basically the good news is the fundamentals have improved. the economy has ticked up. you look at the ism, it's up into the mid high 50s. global growth seems to be more synchronized. the fundamentals seem to be getting better and maybe the fed will get its much desired escape velocity. the issue is that the market was up 32% last year, earnings growth was up 5%. the forward quarters are always too high. 2014 earnings expectations are plus 10, we're coming into the earning season, only just started a few days ago. right now i think only 58% are beating but only 26 companies or so have reported. but you've seen of course the revenue numbers have been weaker than the bottom line for several quarters in a row. >> how much can companies keep cost cutting? at some point they won't be able to produce the kind of profitability they had in the past because there are no more costs to cut. >> they are buying back shares. they are shrinking the denominator in the formula, and
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boosting earnings growth in that way. some of it, the market is ahead of where earnings are and where the economy is. we need that escape velocity now to sort of justify where the market has gone and so far, we are waiting. >> i think those are the two words that define 2014, escape velocity. that's the phrase right now. matt, it's friday, we're heading into a three day weekend. let's end on a little good news. the nasdaq is positive for the year. it outperformed last year. do you expect technology to do well and outperform this year as well? >> well, i'm a little -- i agree, i'm a little cautious on the stock market overall. if the market's going to go down, i'm afraid that the technology stocks will go down as well. i would like to be more positive on the group. the key is going to be what happens to the semiconductor stocks going forward. intel had a bad quarter but this group has done very, very well. if they can bounce back, continue to bounce back nicely. it is still strongly correlated
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to the s&p, the semiconductor index. if they can continue to do better, that should be positive. >> intel is your litmus test right now? >> you know, it's funny. people would think what are you talking about, nobody buys pcs anymore. but you look at the data, you look at the way the stocks act, you look at the correlation between those, it is still very strong. it's still something i will look at very closely. >> matt, year-end calendars to both of you. thank you. have a great weekend. on deck, we are getting all googly-eyed over google's latest venture. this one a real head-scratcher. plus we bring you a double dose of nerd. later on, our can't-miss interview with the super megastar celebrity jessica alba. she's going to be joining "street signs" live. in today's market, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected.
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sort of. google is testing a smart contact lens that measures glucose levels in your tears that can be used by diabetics. let's bring in re/code health and science senior editor, john temple and also, john forte. this is an interesting story. we have been critical of google in many ways but this is their first foray into what can be considered the health industry. >> i think it's the first foray we have seen into medical devices that i know of on the part of google, not their first move into health in general. certainly the investment arm has quite a decent size life sciences portfolio. of course, most recently or at the end of last year, they invested in calico, this new venture which no one really knows too much about yet, but the general idea there is they are going to be trying to work on, for lack of a better term, curing aging or at least slowing the aging process.
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>> i know they will take a really long time to get fda approval, that always takes a number of years. nonetheless, google is saying it will be at least five years before consumers are able to wear this smart lens. there are other companies out there trying to beat google to the punch in this area and create glucose testing solutions that are not as painful as the current solutions. is it possible this will just be obsolete by the time they get it out there? >> well, it is always hard to say. as far as i know, google is the only company pursuing this particular avenue. even if some other companies are successful in bringing different sorts of products, for instance, there are some that are working on this infrared light that you can put on your earlobe and it shines through and can measure the amount of glucose in your blood based on how much light comes out the other side, so even if that is successful, if google's approach also works, people might decide that it's more convenient so it could be
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more successful in the market. >> it strikes me as a little odd. it's hard to criticize google's research efforts because it's always such great things that they're doing. there's a japanese research team that we know of that they put out press releases about, the japanese team working on a similar contact lens type glucose monitoring technology, they have been working on it for three years. a team that purdue has been working on. it seems odd to me that google saying they're spending research dollars on a project like this in the same week that they say they are spending $3.2 billion for a former apple executive's company. what if they spent their research dollars doing more of the sort of thing that they are acquiring for? would that be better for shareholders? >> well, i'm personally not a stock analyst so it's hard for me to make that judgment. i think that to some degree, what's interesting about google is that they do take these really big bets on really far-out things and some of them pay off and some of them don't.
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>> are they spreading themselves too thin? they want to control our home, control our cars, control our medical needs. are they trying to just be too many things to too many people? >> again, it's maybe a better question for a stock analyst. you know, google has an enormous amount of resources. they hire a huge number of people, a huge number of ph.d.s and i think they lay a lot of bets, and you know, we don't know what's going to pay off and what won't in the end but there's nothing in their earnings to date that suggests that any of these measures have been a distraction from their core business of online search. >> we have been critical of google, i have been as tough as anybody out there, but a tip of the hat on this one. they are getting into something that will help a lot of people and that actually is a saleable product. a lot of what they do is just let's do this and we will give it away for free because they are looking for the back end marketing stuff. >> they say they're not going to el sell it now. >> they say that now. at least you're getting into
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stuff you can get money for versus let me read your e-mail and sell that. >> it's interesting, ibm has lots of research. there are other, bell labs over the years experimented with things. when your stock's at $1150 who will criticize you? one of the pieces of advice steve jobs gave to larry page was you got to focus, it's important what you don't do. when larry page first came in he pared down google's projects a whole bunch. you got to wonder if there's a little creep, little mission creep happening. got to watch that. >> very interesting. james, thank you for joining us. john, thanks for jumping in. nbc news group is a minority shareholder in re/code and have a content sharing partnership. want to get your take on this as well. sales of new video games fell 17% in the month of december, despite the relatively successful launches of both sony's play station 4 and microsoft's xbox 1. but it wasn't the same story for nintendo. they are slashing their sales
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estimates for the wii-u citing a lack of holiday demand. slashing by two-thirds. absolutely just like bang. >> what i always talk to nintendo about is are you guys sure you want this proprietary kind of model of it's your device and your games on it and you don't want to put games on smartphones and tablets because a lot of the world is moving that way. they insist that that's the right model for them. but with a report like this, you've got to wonder if they need to shift their definition of their company. maybe end to end doesn't work anymore after awhile. we have seen so many other business models be disrupted this way. maybe nintendo needs to take a step back and think about it. >> thank you very much. appreciate it. be sure to catch "mad money" tonight because jim will be speaking with the ceo of video game maker take 2 interactive. that's "mad money" 6:00 eastern right here on cnbc. still ahead, the nerds and jocks are colliding.
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a double dose of nerd alert coming your way. later on, we will tell you how that guy, justin bieber, is related to our stock disaster du jour of the day. ♪ [ cellphones beeping ] ♪ [ cellphone rings ] hello? [ male announcer ] over 12,000 financial advisors. good, good. good. over $700 billion dollars in assets under care. let me just put this away. [ male announcer ] how did edward jones get so big? could you teach our kids that trick? [ male announcer ] by not acting that way. ok, last quarter... [ male announcer ] it's how edward jones makes sense of investing. ♪ a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms. but if you have arthritis, staying active can be difficult. prescription celebrex can help relieve arthritis pain
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are you on the edge of your seats? i know i am. we have a double dose of nerd news for you. let's kick it off with steve liesman and the nerdiest report of them all. it is actually today not nerdy. >> it's the job opening and labor turnover survey. here's the deal. 46,000 americans quit their job in the month of november but before you begin to weep over this sad fact -- >> that's good. that's confidence. >> this is a good thing. it's something that economists watch. >> get off my lawn, liesman! job market's terrible! >> here's the level. it's up by about 46,000 americans quitting their job. what do you see there? when we have recessions, they don't quit their job, they hunker down, put on their seat belts and they don't leave.
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not normal turnover. here's the quit rate which is -- takes into factor the size of the labor force. you can see that is on the way up. actually, that's the level right there. it's now at a cyclical high. >> janet yellen loves it. >> what this is telling us is people are feeling more and more confident. i want to add one other piece of analysis to this news which is that when i look at where the quits are happening, leisure and hospitality. maybe lower workers who are earning less money are feeling a little more comfortable to leave those jobs, quit those jobs and perhaps find better paying jobs. that's still to come. that's a theory as -- you would expect to see that when people start moving up the wage and income ladder. here's the other important thing about this, which is that it's a firm labor report and it's another report that leans against the december payroll report. we've had the claims numbers,
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the housing starts were pretty good, so still, we are still talking about a fourth quarter growth report out at the end of this month that's going to be 3.5, maybe, could be as high as 4%, so that's one thing that's good. then we will see how much we want to take that down for the first quarter now which i'm seeing reports like 2% for gdp. >> you're a music guy. i will play chuck baker here for a second, toot our own horn. we have talked about the jolts a lot and it's a hard thing to do because people's eyes glaze over. we always hit jobs friday and business media, it's jobs friday. i think jolts really, maybe not important to trading, because the jobs market -- the jolts number may say more about the job situation than the non-farm payroll. >> except it's a month behind. they got to bring it up. >> but it goes to confidence, not seasonal things, like i got fired because it was snowing and i didn't -- >> let me build it up for one
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second. just for half a second here, the actual way we get to 100,000 jobs is there are three million people who leave their job and 3.1 million people who get a job. that's plus 100,000. this survey gives us much more of the quality of what's happening in the job market than the payroll survey does. >> all right. our second nerd alert, geeks and jocks colliding this weekend on the gridiron. two tech heavy cities, seattle and san francisco square off in the nfc championship game. 49ers will of course win. josh lipman is live just outside san francisco. >> reporter: only one team will emerge from this nfc championship on sunday with a ticket punched to the super bowl and data could actually play a really big role in the outcome. even before the kickoff on sunday, there is going to be a massive amount of video data being crunched and reviewed behind the scenes.
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coaches then use that data to map out game day strategies. so for example, they will use data to figure out how you pressure colin kaepernick, when is it most effective to bring four, five or six pass rushers. john power of chicago-based stats, the company providing all this data, says using technology and data doesn't guarantee a win, of course, but it can make a real difference come game time. >> we don't think that all of our information services and technology is necessarily a silver bullet but it's a critical ingredient now in the process of making more informed decisions and being more efficient as an organization. >> reporter: for every single play stats records, up to 115 different events on the field. that means missed tackles, yards after tackle, offensive formation, coaches can break down all that data to map out various playbooks. there is evidence all this data does actually make a difference. the niners, remember, are playing in their third straight nfc championship and the
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seahawks are 16-1 in their last 17 home games so yes, on sunday, it's going to come down to kaepernick and wilson but it will also come down to how effectively do these coaches use all the technology, the data, the analytics, at their disposal. back to you. >> hey, josh, do you believe my pick? 49ers 31, seahawks 28? i'm calling it. >> reporter: yeah, listen, born and raised in the bay area, niners for life. i'm with you all the way. >> there you go. josh, thank you very much. good luck this weekend. still ahead, a stock stud version of "street talk." five stocks in the green today. and later on, the one and only jessica alba live right here on "street signs." that is perfection in front of you, guys. she will be with us in just a few minutes' time. [ male announcer ] this is the story of the dusty basement at 1406 35th street the old dining table at 25th and hoffman. ...and the little room above the strip mall off roble avenue. ♪ this magic moment
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we're open to it. friday edition of "street talk" time. schlumberger's stock is up. >> 1.5% to $90.04. they are an oil services company. they raised their quarterly
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dividend by about 28% to $1.60 per share annually. that stock has outperformed the s&p in the past 30 days, up about 5% in that time. >> we have american express getting an upgrade to positive from neutral at susquehanna. as i said earlier o it is part of the reason why we have dow in the positive. >> up 4%, $91.50 for am-ex. in the research notes, susquehanna notes three things. an easy first half comp, two, upcoming catalyst for the s consolidation of its travel business and lower expenses. their target increased to $107 from $90, about 16% more than the stock is right now. >> close. close. lumina added to jpmorgan's focus list. >> the stock is up 11.4%, $14 a share to $139.59 right now. okay. the biotech yesterday highlighting a number of steps it's taking to address what it calls a $20 billion opportunity. all different kinds of
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marketplaces, lab sciences, whatever. here's the point. look at that chart. back in may of 2003, they were a $1 stock. >> incredible. >> $1. it's now a $139 stock. i would love to see the parking lot of that company. >> we also have expedia. estimates and target being raised. >> they note accelerating domestic hotel and air transaction growth. they raised estimates for bookings growth as well as revenue and their target raised 85 from 70. the stock already passed 70 to $71.29. earnings above expectations here. >> a gain to $30.64. the wireless semiconductor maker, fiscal first quarter earnings raise 52%. they are benefiting from increased demand across many markets, including more internet access in cars. they highlighted this deal they made, always on, connected, whatever. raising the target to $33. a few bucks more than the stock is right now. skws is skyworks.
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all right, blackberry, let's talk about them. big story today. well known short selling firm, sitron research, making a surprise bullish research call today and issuing a $15 target on bbry. that, my friends, 66% higher than blackberry shares are trading right now. we will break it down but we are only going to do the charts here because fundamentally, i think it's more important to go through what citron is saying and i will give basically the primary thesis to our viewers. here's what they're saying. basically, people are looking at blackberry as a device business, which is easy to make a fundamental mistake in because the device business is going down the drain. citron says the new strategy, eliminating device inventory risks, focusing more on the software side, has, according to citron, significantly de-risked blackberry's balance sheet. they think cash flow should stabilize. they are just saying listen, if you're shorting blackberry because of the device business, you're looking at the company
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incorrectly. they are getting away from that, focus on software, focus on enterprise. that call is moving blackberry stock today. today, i got to be the fundamental guy. >> you know what's really interesting, it's not just moving the stock today but if you take a look at the year-to-date performance, i know it's only a short amount of time because we're not far into 2014 but look at this. year-to-date, they're up about 19%. that, by the way, is the best performing north american tech company year-to-date. the second performing one is juniper networks. we mentioned that a couple days ago. steven, as i mentioned, best performing tech company in north america year-to-date but what is your view in the blackberry chart going forward into 2014? >> there's a couple things to note about the blackberry chart. i do have to say, they are very positive. you will note on the chart that's going to be shown on the screen, the first thing is that big circle on the left side, that's a big dislocation. everyone went to sell at the same time. everyone got out. there was bad news. then because everyone sold, the stock kind of drifted sideways.
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no one is willing to buy yet. no one is willing to step in. but there's no real sellers left. everyone has already sold. then on the right side, that second circle, you see a big shoot up. good news comes out, people are willing to test the water again. technically speaking, this is a very strong reversal pattern. the stock could certainly head higher. the projection we're looking at here, i don't know about '15 based on that chart but definitely about $11.50. >> citron more bullish. blackberry getting a lot of attention. john chen, if you're out there, come talk to us on "street signs." have a great weekend. thank you very much. everybody, be sure to check out the online edition. we do three to four different stocks or indecxes or commoditis a day. 20 years after the big one, is l.a. ready for another earthquake, a scary look at the hundreds of millions of dollars in new construction sitting right on top of newly discovered fault lines. then let me present to you
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jessica alba. she is here and is not just a drop-dead gorgeous actress. she is also a savvy businesswoman who is celebrating a milestone today. how she is changing the diaper changing game. that's all coming up. >> match that, "closing bell"! in your face! >> bill is getting in a car and heading straight back there. >> i have kelly. >> that's very kind. >> are you feeling a little hot over there? >> it is kind of warm in here. is it just me? moving on, struggling for direction this week. are we heading higher or lower from here? we have top money managers weighing in. >> also find out just how big of a problem the small island of puerto rico could be for the huge nearly $4 trillion muni bond market and your portfolio more broadly. >> and broncos star peyton manning shouted "omaha" more than 40 times during last weekend's playoff victory.
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just as fires rage out of control in southern california, a small earthquake struck two miles west of universal city. this comes 20 years to the day that a 6.7 magnitude earthquake devastated the area. two decades later, you would think southern california would learn more from the quake, but no. jane wells is in los angeles. why are people not learning more, jane? >> reporter: well, mandy, because you just hope it doesn't happen again. new construction here on reseda boulevard, this area was basically flattened 20 years ago in los angeles, was in chaos after the quake struck at 4:31 a.m. >> is anybody in there? >> reporter: 57 people died, 40,000 buildings damaged or destroyed, 125,000 people homeless. $49 billion damage and economic losses. everybody was dressing in the dark, those who were okay, including yours truly, who fell out of bed. brace yourself, i ended up reporting from one of the collapsed freeways.
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this guy walked away, the guy who was in this car behind that steering wheel when this came down on him. a freeway overpass. >> reporter: the quake was the most expensive natural disaster in u.s. history at the time. still remains number three. so are we any better prepared? many public buildings, hospitals and bridges have been retrofitted but not the private ones. according to the "l.a. times" they estimate conservatively 50 large concrete structures could collapse in a major quake and the city's made the unprecedented move of borrowing a seismologist from the usgs for a year to figure out better ways to get the private buildings stronger. >> the effort is who is going to fund retrofitting and replacing those, because a lot of places have rent control, so you know, it's a financial issue. >> reporter: listen to this. there is hundreds of millions of dollars of new construction going up in hollywood. the state now believes the
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building may be happening right on top of newly discovered fault lines. residents opposed to construction have filed a lawsuit to stop it. >> this is an arrow in the heart of the most ill-conceived, dangerous and reckless project in recent memory in the city of los angeles, probably in los angeles history. >> reporter: developers are telling us the geological tests they've done on those sites show no active earthquake fault activity. guys, back to you. >> thank you for that, jane wells. also to see jane back then as well. hasn't changed. >> well, she's even more attractive and beautiful and intelligent than back then. i will say this. my mother was six months pregnant with me in february of 1971, when they had a 6.6 quake. a lot of people died. it's scary out there. when it comes, it's fast and furious and scary. >> it is. coming up next, one stock that is really stinking up the joint. why you can maybe blame justin bieber. then we are live with
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jessica alba. she is not just beautiful, she is a bold businesswoman. the big milestone her and -- there you go, wave. we know you love "street signs." thank you very much. you're coming up in just a second. [ male announcer ] once, there was a man
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elizabeth arden down nearly 17% after a weaker than expected holiday season. among the reasons they gave, a fall in fragrance sales. they sell a wide says a wide range of perfumes including justin bieber's signature scent girlfriend. >> two years ago jessica alba launched the honest company. they sell things like body lotion, diaper wipes and more. now she's looking to expand. she and honest products ceo brian lee join julia boorstin at their showers in santa monica. >> thanks so much, brian. thanks so much for joining us today. i understand you're revealing $100 million annual run rate. on grcongratulations. what are your expansion plans? >> well, we are expanding into other categories like feeding and we're also expanding more
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traditional retail, so we're expanding offline because right now our business is primarily online at honest.com. >> just this year you announced some new partnerships with designers to sell things like cribs and strollers. why move away from your core of the lotions and the diapers into such a crowded space of these baby -- more expensive baby products? >> we don't really consider it that crowded of a space number one because what we're trying to do is address a problem, and that problem is that there are a lot of toxic chemicals in every day products used on children and used around your home and so we're trying to address it more of a wholistic approach, if you will. we started with cpg products with diapers and wipes and baby lotions and shampoos. but it extends way beyond that. that's why we started the collective which are baby strollers and a product that jessica is very happy with with our cribs. >> yeah. and we're also -- the thing about our crib is it's made out
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of a sustainable wood. it's a nontoxic finish paint. and it's a one for one. and it's a four-way crib that's under $400. which is pretty incredible. so we're competitive on price. it's very stylish. it's unisex and it's completely nontoxic and safe and we give back. >> you mentioned the move into retail. your products are available in costco, whole foods. this is relatively new just in the past six months. you're still just rolling out across those stores. how important will retail stores be for you as a company that started online and with a subscription mod snel. >> sure. so it is very important to us. it's important for one reason and that's really we want the products in the hands of families wherever they shop. whether that be online or offline. we want to be where that person shops. and to this day, yes, we are mainly e-commerce, however we are moving into offline commerce as well because 90% of america still shops at grocery stores
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and malls and that's where we want to be. >> brian? >> jessica, thank you very much. list listen, obviously a very successful actress and business person as well. thank you for coming on the show. just want to ask you, as a smart, rich, successful person, what do you think about the stock market? do you invest actively right now? >> i -- >> i want to ask you so much more other stuff besides this but this is what we do. >> i have some money in the market. i diversified though. i also have my money in -- some money in real estate as well. i'm pretty safe and conservative though so i don't have a lot of risky investments. >> that was the most boring question you've ever been asked, i'm sorry. >> you are an actress, you have a successful hollywood career. why did you decide to start honest and two years in, what is your vision for what it could become? >> i started it because i had to. i looked around at the marketplace and my needs just
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weren't being met. i wanted the safest, healthiest products available and i wanted them to be affordable and beautiful and so that's really what the honest company is all about. that's our philosophy. it's a lifestyle. it's more than just products. we have a lot of information we give for free online. i wrote a book about it. i really feel like if i had a calling in life, this is probably what it is. >> well, i am personally a customer, so i appreciate the products and i look forward to everything else you guys introduce. jessica alba, brian lee, thank you both so much for joining us. >> thank you. really appreciate it. >> back over to you in the studio. >> thank you very much. first of all, it was the cronut. now it is the cragel. this and other crazy headlines coming your way. [ male announcer ] we could say a lot about the most track-tested is ever... but the truth is... we don't have to. the experts have spoken. now it's your move.
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[ male announcer ] with nearly 7 million investors... oh hey, neill, how are you? [ male announcer ] ...you'd expect us to have a highly skilled call center. kevin, neill holley's on line one. ok, great. [ male announcer ] and we do. it's how edward jones makes sense of investing. we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours. over the pizza place on chestnut street the modest first floor bedroom in tallinn, estonia and the southbound bus barreling down i-95. ♪ this magic moment it is the story of where every great idea begins.
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and of those who believed they had the power to do more. dell is honored to be part of some of the world's great stories. that began much the same way ours did. in a little dorm room -- 2713. ♪ this magic moment ♪ time to take on the week's wildest headlines. cooper lawrence, welcome to "street signs." >> thank you. >> we're going to ask you to do business. >> i'm ready. >> big business story this week, yahoo! ceo marissa mayer reflecting on her firing of the coo but not taking any blame. >> how dare you? you're looking at this the wrong way. research recently said women do better at taking everybody's ideas into consideration. they're better than men are at that, which means -- >> down who found that out? women scientists. >> that's not true. it says that if it was a man, a man would have kept the wrong person in that position longer.
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so it's actually stronger of her to say, you know what? i made a mistake. we're going to move on from here because she had the vision to see that. >> do you think it's a little arrogant that she did not take any blame at all for hiring him in the first place and number two, didn't let the poor guy say i'm leaving. there was no grace in that whatsoever. >> yes, i will agree with you with that, but the thing is so she's not good at pr but she is good afterwards. she said i made a mistake and i'm willing to admit that. i man might not have done that. >> i'm going to read the next story. next up -- no. the color of money. the u.s. mint considering changing the color of nickel to a copper color. bizarre. >> like a penny. >> totally bizarre. what are they going to do next, the pantone color of the year? we don't have pretty money. maybe it's not a bad idea to spruce it up a little bit. >> it would just confuse things. i'm already confused between a
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dime and a nickel. now i'll be confused -- >> you're confused between a dime and a nickel? a nickel is five cents, slightly larger, a little thicker. >> they look the same to me. finally, america, we brought you, as in we, "street signs," brought you the cronut. now we present the cragel, a croissant and a bagel hybrid. what do you think? >> i want to know, was this somebody at a coffee shop going i have a bagel, i have a croissant, somebody has to put this together. >> make love, darn it! >> seriously, we need more food that is married to other food. we have done it with dogs if you think about it. we have puggles and labra doodles. >> that's not a real type of dog. it's just a merged of two kinds. >> onthey can't compete like re
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dogs. >> my dog speedy would own it. he's 13 but he would still own it. cooper lawrence a real pleasure. thanks for coming. everybody, thank you so much for watching "street signs." i hope you're weekend is filled with cragels and cronuts. have joo ha >> have a happy and safe one. "the closing bell" is next. welcome to "the closing bell." we've made it to friday. i'm kelly evans here at the new york stock exchange. >> how many people realize that monday is a holiday? martin luther king monday. >> i realize. >> but late, right? >> it's just a relief. >> you're doing such a good job, take monday off. the final hour of trading will determine whether we have a winning week or a losing week. the dow needs to hold onto an at least 20-point gain to be in the green for what has been a week of very big moves. big down daymond, two big up days tuesday and wednesday, a big down day yesterday, and through it all we've only been down 20 points for the

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